Document:

exv10w14

 

EXHIBIT 10.14

FIFTH AMENDMENT TO CREDIT AGREEMENT

     THIS FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Fifth Amendment”), dated as of
October 5, 2006, by and among the lender listed on the signature pages hereof as Lender (the
“Lender”), DYNAMEX INC., a Delaware corporation (the “Borrower”), DYNAMEX
OPERATIONS EAST, INC., a Delaware corporation, DYNAMEX OPERATIONS WEST, INC., a Delaware
corporation, DYNAMEX CANADA HOLDINGS, INC., a Delaware corporation, DYNAMEX PROVINCIAL COURIERS,
INC., a Delaware corporation, DYNAMEX FRANCHISE HOLDINGS, INC., a Delaware corporation, DYNAMEX
DOMESTIC FRANCHISING, INC., a Delaware corporation, DYNAMEX FLEET SERVICES, INC., a Delaware
corporation, BANK OF AMERICA, N.A., in its capacity as a lender (the “Lender”), and BANK OF
AMERICA, N.A., as administrative agent for itself and the Lender (in such capacity, the
“Administrative Agent”).

BACKGROUND

The Borrower, the other Loan Parties (as defined in the Credit Agreement defined below), the
Lender and the Administrative Agent are parties to that certain Credit Agreement, dated as of March
2, 2004, as amended by that certain First Amendment to Credit Agreement, dated as of April 22,
2005, that certain Second Amendment to Credit Agreement, dated as of November 10, 2005, that
certain Third Amendment to Credit Agreement, dated as of December 23, 2005, and that certain Fourth
Amendment to Credit Agreement, dated as of July 21, 2006 (said Credit Agreement, as amended, the
“Credit Agreement”; the terms defined in the Credit Agreement and not otherwise defined herein
shall be used herein as defined in the Credit Agreement).

The Borrower has requested a waiver and an amendment to the Credit Agreement.
The Borrower, the Lender and the Administrative Agent hereby agree to such request, subject to
the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are all
hereby acknowledged, the parties hereto covenant and agree as follows:

WAIVER. The Lender hereby waives the Event of Default under the Credit Agreement which
occurred as a result of the issuance of Letter of Credit No. 3084187 in the amount of $898,228.00,
thereby causing the aggregate among Letters of Credit to exceed $5,500,000.
AMENDMENT. The dollar amount “$5,500,000” which is set forth on the fourth line of Section
2.13(a) of the Credit Agreement is hereby amended to be “$7,500,000”.
REPRESENTATIONS AND WARRANTIES TRUE; NO EVENT OF DEFAULT. By its execution and delivery
hereof, the Borrower represents and warrants that, as of the date hereof, after giving effect to
the waiver provided for in Section 1 of this Fifth Amendment:

the representations and warranties contained in the Credit Agreement and the other Loan Documents
are true and correct on and as of the date hereof as made on and as of such date;

no event has occurred and is continuing which constitutes a Default or an Event of Default;

(i) the Borrower has full power and authority to execute and deliver this Fifth Amendment, (ii)
this Fifth Amendment has been duly executed and delivered by the Borrower, and (iii) this Fifth
Amendment and the Credit Agreement, as amended hereby, constitute the legal, valid and binding
obligations of the Borrower, enforceable in accordance with their respective terms, except as
enforceability may be limited by applicable debtor relief laws and by general principles of equity

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(regardless of whether enforcement is sought in a proceeding in equity or at law) and except as
rights to indemnity may be limited by federal or state securities laws;

neither the execution, delivery and performance of this Fifth Amendment or the Credit Agreement, as
amended hereby, nor the consummation of any transactions contemplated herein or therein, will
violate any Law or conflict with any organizational documents of the Borrower, or any indenture,
agreement or other instrument to which the Borrower or any of its property is subject; and

no authorization, approval, consent, or other action by, notice to, or filing with, any
governmental authority or other Person (including the Board of Directors of the Borrower) not
previously obtained is required for the execution, delivery or performance by the Borrower of this
Fifth Amendment.

CONDITIONS OF EFFECTIVENESS. This Fifth Amendment shall be effective as of October 5, 2006,
upon satisfaction of the following conditions:

the representations and warranties set forth in Section 3 of this Fifth Amendment shall be true and
correct;

the Administrative Agent shall have received counterparts of this Fifth Amendment executed by the
Lender;

the Administrative Agent shall have received counterparts of this Fifth Amendment executed by the
Borrower and acknowledged by each other Loan Party; and

the Administrative Agent shall have received in form and substance satisfactory to the
Administrative Agent, such other documents, certificates and instruments as the Lenders shall
require.

LOAN PARTY’S ACKNOWLEDGMENT. By signing below, each Loan Party (i) acknowledges, consents and
agrees to the execution, delivery and performance by the Borrower of this Fifth Amendment, (ii)
acknowledges and agrees that its obligations in respect of the Loan Documents to which it is a
party are not released, diminished, waived, modified, impaired or affected in any manner by this
Fifth Amendment, or any of the provisions contemplated herein, (iii) ratifies and confirms its
obligations under the Loan Documents to which it is a party, and (iv) acknowledges and agrees that
it has no claim or offsets against, or defenses or counterclaims to, its obligations under the Loan
Documents to which it is a party.

RELEASE. IN CONSIDERATION OF THE LENDER’S EXECUTION OF THIS FIFTH AMENDMENT, EACH OF THE LOAN
PARTIES, IN EACH CASE ON BEHALF OF ITSELF AND EACH OF THEIR SUCCESSORS AND ASSIGNS (COLLECTIVELY,
THE “RELEASORS”), DOES VOLUNTARILY AND KNOWINGLY RELEASE AND FOREVER DISCHARGE EACH LENDER, EACH
EXITING LENDER AND ADMINISTRATIVE AGENT AND THEIR RESPECTIVE PREDECESSORS, OFFICERS, DIRECTORS,
EMPLOYEES, AGENTS, SUCCESSORS AND ASSIGNS (EACH, A “RELEASED PARTY”) FROM ALL POSSIBLE CLAIMS,
DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR
UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL,
AT LAW OR IN EQUITY, ARISING ON OR BEFORE THE DATE THIS FIFTH AMENDMENT IS EXECUTED, WHICH BORROWER
OR ANY LOAN PARTY MAY NOW HAVE AGAINST ANY RELEASED PARTY, IF ANY, AND IRRESPECTIVE OF WHETHER ANY
SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING
FROM ANY “OBLIGATIONS”, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING,
RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE
EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS, AND
NEGOTIATION FOR AND EXECUTION OF THIS FIFTH AMENDMENT.

REFERENCE TO THE CREDIT AGREEMENT.

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Upon and during the effectiveness of this Fifth Amendment, each reference in the Credit Agreement
to “this Agreement”, “hereunder”, or words of like import shall mean and be a reference to the
Credit Agreement, as affected by this Fifth Amendment.

Except as expressly set forth herein, this Fifth Amendment shall not by implication or otherwise
limit, impair, constitute a waiver of, or otherwise affect the rights or remedies of the
Administrative Agent or the Lenders under the Credit Agreement or any of the other Loan Documents,
and shall not alter, modify, amend, or in any way affect the terms, conditions, obligations,
covenants, or agreements contained in the Credit Agreement or the other Loan Documents, all of
which are hereby ratified and affirmed in all respects and shall continue in full force and effect.

COSTS AND EXPENSES. The Borrower shall be obligated to pay the costs and expenses of the
Administrative Agent in connection with the preparation, reproduction, execution and delivery of
this Fifth Amendment and the other instruments and documents to be delivered hereunder.
EXECUTION IN COUNTERPARTS. This Fifth Amendment may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed to be an original and all of which when taken together shall constitute
but one and the same instrument. For purposes of this Fifth Amendment, a counterpart hereof (or
signature page thereto) signed and transmitted by any Person party hereto to the Administrative
Agent (or its counsel) by facsimile machine, telecopier or electronic mail is to be treated as an
original. The signature of such Person thereon, for purposes hereof, is to be considered as an
original signature, and the counterpart (or signature page thereto) so transmitted is to be
considered to have the same binding effect as an original signature on an original document.
GOVERNING LAW; BINDING EFFECT. This Fifth Amendment shall be governed by and construed in
accordance with the laws of the State of Texas (without giving effect to conflict of laws) and the
United States of America, and shall be binding upon the Borrower and each Lender and their
respective successors and assigns.

HEADINGS. Section headings in this Fifth Amendment are included herein for convenience of
reference only and shall not constitute a part of this Fifth Amendment for any other purpose.
ENTIRE AGREEMENT. THE CREDIT AGREEMENT, AS AMENDED BY THIS FIFTH AMENDMENT, AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AS TO THE SUBJECT MATTER THEREIN AND
HEREIN AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS BETWEEN THE PARTIES.

REMAINDER OF PAGE LEFT INTENTIONALLY BLANK

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     IN WITNESS WHEREOF, the parties hereto have executed this Fifth Amendment as of the date first
above written.

	 	 	 	 	 	 	 
	 	 	DYNAMEX INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	DYNAMEX OPERATIONS EAST, INC.
	 	 	DYNAMEX OPERATIONS WEST, INC.
	 	 	DYNAMEX CANADA HOLDINGS, INC.
	 	 	DYNAMEX PROVINCIAL COURIERS, INC.
	 	 	DYNAMEX FRANCHISE HOLDINGS, INC.
	 	 	DYNAMEX DOMESTIC FRANCHISING, INC.
	 	 	DYNAMEX FLEET SERVICES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ADMINISTRATIVE AGENT:
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.,

as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

E - 5exv10w1

 

Exhibit 10.1

PARTNERSHIP INTERESTS PURCHASE AGREEMENT

Between

ALLIANCE SEMICONDUCTOR CORPORATION,

and

ALLIANCE VENTURE MANAGEMENT, LLC.

Dated:
December 1, 2006

 

 

TABLE
OF CONTENTS

	 	 	 	 	 
	 	 	 	Page
	 
	ARTICLE 1 SALE OF PARTNERSHIP INTERESTS
	 	 	1	 
	1.1 Sale of Partnership Interests
	 	 	1	 
	1.2 Purchase Price
	 	 	1	 
	1.3 Payment and Calculation of Two Percent of Gross Sale Proceeds
	 	 	1	 
	1.4 Deliveries by Seller On the Closing Date, Seller will deliver to Buyer:
	 	 	2	 
	1.5 Section 754 Election
	 	 	3	 
	1.6 Allocation of Consideration
	 	 	3	 
	1.7 Interim Closing of the Books
	 	 	3	 
	1.8 Pre-Closing Periods
	 	 	3	 
	ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	3	 
	2.1 Ownership of Partnership Interests
	 	 	3	 
	2.2 Authority
	 	 	4	 
	2.3 No Violation
	 	 	4	 
	2.4 No Brokers
	 	 	4	 
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES OF BUYER
	 	 	4	 
	3.1 Authority
	 	 	4	 
	3.2 No Violation
	 	 	4	 
	3.3 No Brokers
	 	 	4	 
	3.4 Operation of Partnerships
	 	 	5	 
	ARTICLE 4 MISCELLANEOUS
	 	 	5	 
	4.1 Notices
	 	 	5	 
	4.2 Assignment
	 	 	5	 
	4.3 Effect of Headings
	 	 	5	 
	4.4 Expenses
	 	 	5	 
	4.5 Public Announcements
	 	 	6	 
	4.6 Governing Law
	 	 	6	 
	4.7 Waiver; Severability
	 	 	6	 
	4.8 No Third Party Rights
	 	 	6	 
	4.9 Counterparts
	 	 	6	 
	4.10 Entire Agreement; Amendments
	 	 	6	 

i

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	 	Page
	 
	4.11 Waiver of Rescission
	 	 	6	 
	 
	 	 	 	 
	Exhibit A            Receipt
	 	 	 	 

ii

 

PARTNERSHIP INTERESTS PURCHASE AGREEMENT

     This Partnership Interests Purchase Agreement (this “Agreement”) is entered into as of this
1st day of December, 2006 (the “Closing Date”) by and between Alliance Semiconductor Corporation,
a Delaware corporation (“Buyer”) and Alliance Venture Management, LLC, a California limited
liability company (“Seller”).

     WHEREAS, Seller and Buyer
have entered into a Mutual Release dated as of December 1, 2006
and Buyer has removed Seller as general partner of Alliance Ventures I, L.P., Alliance Ventures II,
L.P., Alliance Ventures III, L.P., Alliance Ventures IV, L.P., and Alliance Ventures V, L.P. (each
such partnership being referred individually as a “Partnership” and collectively as the
“Partnerships”) and named ALSC Venture Management, LLC (the “General Partner”) as new general
partner of the Partnerships; and

     WHEREAS, Seller owns a fifteen percent (15%) special limited partnership interest in the
capital, profits and losses in each of the Partnerships (the “Partnership Interests”) pursuant to
the limited partnership agreements for each of the Partnerships entered into in connection with the
formation of each Partnership (the “Partnership Agreements”), and Seller desires to sell the
Partnership Interests to Buyer and Buyer desires to purchase the Partnership Interests from Seller
in accordance with this Agreement.

     NOW, THEREFORE, in consideration of the mutual promises herein contained and for other good
and valuable consideration the receipt and sufficiency of which are hereby acknowledged, the
parties, intending to be legally bound, agree as follows.

ARTICLE 1

SALE OF PARTNERSHIP INTERESTS

     1.1 Sale of Partnership Interests. Seller hereby sells, transfers and assigns the
Partnership Interests to Buyer free and clear of all liens, claims, pledges, options, rights of
first refusal and other encumbrances or restrictions of any nature whatsoever, other than any
restrictions on transfer under the Partnership Agreements (“Liens”), and Buyer hereby purchases
from Seller all of Seller’s right, title and interest in the Partnership Interests for the Purchase
Price, as defined below.

     1.2 Purchase Price. The consideration for the sale of the Partnership Interests is
(i) Four Hundred Thousand Dollars ($400,000) which will be paid on the date hereof by wire transfer
to an account designated by Seller, plus (ii) two percent (2%) of the gross sale proceeds received
after May 17, 2006 from investments in any Partnership’s portfolio, which amount shall be
calculated as set forth below in Section 1.3 (“Purchase Price”) and will be paid by wire transfer
to an account designated by Seller upon receipt by the Buyer or any affiliate of Buyer. Buyer has
advised Seller it intends to sell the Partnerships and payment to Seller of the percentage due
Seller under the Agreement when such sale is accomplished shall satisfy by Buyer’s duties under
this Section 1.2.

 

 

     1.3 Payment and Calculation of Two Percent of Gross Sale Proceeds.

          (a) Gross sale proceeds from the sale of a Partnership interest in a portfolio company shall
be the aggregate purchase price received for the sale, exchange or other disposition of such
interest, whether in the form of cash or securities, and shall include any and all disbursements
from escrow accounts established in connection with such sale, exchange or other disposition,
including all interest and other income earned from such escrow accounts. For this purpose,
securities received by a Partnership as part of the consideration for an interest in a portfolio
company shall be valued at their fair market value on the date of receipt, which shall be
determined by reference to closing value on the exchange on which securities are traded, if such
securities are valued on an exchange and otherwise shall be reasonably determined in good faith by
the General Partner using the value for such Securities in the transaction in which such securities
were received and, if applicable, the value at which such securities are traded by other parties to
the transaction.

          (b) If a portfolio investment is not sold to a third party but instead becomes freely tradable
based upon an initial public offering or similar event, proceeds shall be deemed received at the
time when the securities held by or received by the Partnership from such liquidity event first
become freely tradable without restriction (other than a volume restriction under Rule 144(e))
under the Securities Act of 1933 (the “Securities Act”) or any equivalent legislation (which in the
case of securities received in a non-public offering shall mean the date at which all waiting
periods imposed under Rule 144 or Rule 145 under the Securities Act have expired).

          (c) If in lieu of selling all investments of a Partnership, Buyer or its successor determines
to sell the Partnership interests, the proceeds of such sale shall be treated as if they were
proceeds of the sale of all portfolio assets of the Partnership and Buyer shall be responsible to
pay the compensation due the General Partner, as contemplated by Section 1.3(a).

          (d) Gross sale proceeds also include investment proceeds. Investment proceeds shall consist
of all cash and other property received by a Partnership with respect to its interest in a
portfolio company other than upon a sale, exchange of other disposition of such interest, and shall
include, any and all payments, distributions or other consideration attributable to any dividend or
other distribution of stock, any conversion, stock split, capitalization, or redemption of or with
respect to such interest, and all proceeds from any liquidation, dissolution or winding up of the
portfolio company.

          (e) Buyer shall notify Seller in writing of the calculation of the gross sales proceeds within
120 days after receipt by a Partnership. Seller shall be deemed to have accepted such
determination unless Seller notifies Buyer in writing of Seller’s proposed calculation within 30
days after receipt of Buyer’s proposed calculation. If Seller provides such notice to Buyer, the
parties shall proceed in good faith to determine mutually the matters in dispute. If they are
unable to do so within 30 days, the matter shall be referred to an appraisal firm chosen by and
mutually acceptable to both Buyer and Seller (the “Appraiser”). The decision of the Appraiser
shall be binding on the parties. The Appraiser’s fees shall be shared equally by Buyer and Seller.

2

 

     1.4 Deliveries by Seller On the Closing Date, Seller will deliver to Buyer:

          (a) Any and all instruments and documents, required to transfer the Partnership Interests to
Buyer as are mutually agreed upon by the parties; and

          (b) A receipt for the initial portion of the Purchase Price, in the form attached hereto as
Exhibit A.

     1.5 Section 754 Election. Buyer may cause the Partnerships to make an election under
Section 754 of the Internal Revenue Code of 1986, as amended (the “Code”), for the taxable year
that includes the Closing Date, and Buyer shall be authorized to prepare and file all papers,
schedules and tax returns necessary to effectuate such election. Seller consents to such election
and such authority extended to Buyer. Any costs incurred in connection with the election under
Section 754 of the Code shall be borne by Buyer.

     1.6 Allocation of Consideration. The parties shall cooperate as provided herein in
determining the allocation of the Purchase Price and other applicable items among the Partnerships’
assets in accordance with Code and the treasury regulations promulgated thereunder (and any similar
provisions of state or local law, as appropriate), provided that they agree that as of the date of
this Agreement none of the Partnerships has any assets subject to Section 751(a) of the Code.
Buyer shall initially determine such allocation and shall notify Seller in writing of the
allocation so determined within 120 days after the Closing Date. Seller shall be deemed to have
accepted such determination unless Seller notifies Buyer in writing of Seller’s proposed allocation
within 30 days after receipt of Buyer’s proposed allocation. If Seller provides such notice to
Buyer, the Parties shall proceed in good faith to determine mutually the matters in dispute. If
they are unable to do so within 30 days, the matter shall be referred to the Appraiser. The
decision of the Appraiser shall be binding on the parties. The Appraiser’s fees shall be shared
equally by Buyer and Seller. Neither Buyer Seller nor Seller shall take any position for tax
purposes that is inconsistent with the final allocation determined hereunder unless such position
would be inconsistent with a final non-appealable (except to the United States Supreme Court)
judgment which has been rendered in any judicial proceeding governing such position.

     1.7 Interim Closing of the Books. With respect to the Partnership Interests that are
being purchased and sold pursuant to this Agreement, Seller’s distributive share of the
Partnerships’ income, gain, loss and deduction for the taxable year of the Partnerships that
includes the Closing Date shall be determined on the basis of an interim closing of the books of
the Partnerships as of the close of business on the Closing Date under this Agreement and shall not
be based upon a proration of such items for the entire taxable year.

     1.8 Pre-Closing Periods. The sale of the Partnership Interests pursuant to this
Agreement shall not affect Seller’s rights with respect to the Partnerships’ tax filings and tax
proceedings with respect to periods or portions thereof ending on or before the Closing Date,
including without limitation Seller’s rights pursuant to the Partnership Agreements.

3

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF SELLER

     In order to induce Buyer to enter into this Agreement, Seller makes the following
representations and warranties to Buyer.

     2.1 Ownership of Partnership Interests. (a) Seller is the legal and beneficial owner
of the Partnership Interests free and clear of any and all Liens; (b) Seller is not subject to any
contracts or arrangements restricting the sale and transferability of the Partnership Interests
other than any restrictions on transfer under the Partnership Agreements; (c) Seller has good title
to the Partnership Interests and right to transfer title to the Partnership Interests to Buyer,
subject to any restrictions on transfer under the Partnership Agreements; and (d) the transfer of
the Partnership Interests to Buyer pursuant to this Agreement will pass good title thereto to Buyer
free and clear of any and all Liens, subject to any restrictions on transfer under the Partnership
Agreements.

     2.2 Authority. Seller has the full legal power and authority under applicable
corporate law to execute and deliver this Agreement and to consummate the transactions contemplated
hereby. This Agreement has been duly and validly executed and delivered by Seller and constitutes
the valid and binding obligation of Seller, enforceable against Seller in accordance with its
terms.

     2.3 No Violation. This Agreement and the transfer of the Partnership Interests will
not result in any violation of or conflict with, or constitute a default under any contract,
agreement, arrangement or commitment, written or oral, absolute or contingent, applicable to Seller
(and excluding any applicable to the Partnerships), and no consent, approval, authorization of or
designation, declaration or filing with any governmental authority on the part of Seller (and
excluding any on the part of the Partnerships) is required in connection with this Agreement and
the valid sale and transfer of the Partnership Interests.

     2.4 No Brokers. No act of Seller has given or will give rise to any claim against
either of the parties hereto for a brokerage commission, finder’s fee or other like payment in
connection with the transactions contemplated herein.

ARTICLE 3

REPRESENTATIONS AND WARRANTIES OF BUYER

     In order to induce Seller to enter into this Agreement, Buyer makes the following
representations and warranties to Seller.

     3.1 Authority. Buyer has the full power and authority under applicable corporate law
to execute and deliver this Agreement and to consummate the transactions contemplated hereby. This
Agreement has been duly and validly executed and delivered by Buyer and constitutes the valid and
binding obligation of each, enforceable against each in accordance with its terms.

     3.2 No Violation. This Agreement and the purchase of the Partnership Interests will
not result in any violation of or conflict with, or constitute a default under any contract,

4

 

agreement, arrangement or commitment, written or oral, absolute or contingent, applicable to
Buyer, and no consent, approval, authorization of or designation, declaration or filing with any
governmental authority on the part of Buyer (and excluding any on the part of the Partnerships) is
required in connection with this Agreement and the purchase of the Partnership Interests.

     3.3 No Brokers. No act of Buyer has given or will give rise to any claim against any
of the parties hereto for a brokerage commission, finder’s fee or other like payment in connection
with the transactions contemplated herein.

     3.4 Operation of Partnerships. Prior to the Closing Date, Buyer has operated the
Partnerships solely in the ordinary course of business.

ARTICLE 4

MISCELLANEOUS

     4.1 Notices. All notices, offers, requests or other communications from either of the
parties hereto to the other shall be in writing and shall be considered to have been duly delivered
or served on the date of meeting if sent by first class certified mail, return receipt requested,
postage prepaid, to the party at its address as set forth below or to such other address as such
party may hereafter designate by written notice to the other party:

If to Seller:

Alliance Venture Management, LLC

c/o V. R. Ranganath

Fax number:                                         

If to Buyer:

Alliance Semiconductor Corporation

2900 Lakeside Drive

Santa Clara, California 95054

Attention:     Melvin L. Keating

Fax number:     (408) 855-4999

     4.2 Assignment. Neither party may assign or transfer this Agreement, either directly
or indirectly, without the prior written consent of the other party. This Agreement shall be
binding upon, inure to the benefit of and may be enforced by and against the respective successors
and permitted assigns of the parties to this Agreement.

     4.3 Effect of Headings. The article and section headings in this Agreement are for
convenient reference only and shall not affect the construction hereof.

     4.4 Expenses. The parties shall bear and pay all of their own fees, costs and
expenses relating to the transactions contemplated by this Agreement, including, without
limitation, the

5

 

fees and expenses of their respective counsel, accountants, brokers and financial advisors.
Seller and Buyer shall share equally any transfer taxes or fees required to be paid in connection
with the transfers contemplated by this Agreement, including, without limitation, stamp taxes,
document taxes, sales taxes, or any other payments in the nature of or in lieu thereof, if
applicable.

     4.5 Public Announcements. Unless required by law, rule or regulation, no public
announcement (including an announcement to employees) or press release concerning the transactions
provided for herein shall be made by either party without the prior written approval of the other
party. With respect to any disclosures required by applicable law, rule or regulation, including
disclosure requirements under applicable securities acts, each party will consult with the other
party and allow the other party to review the proposed disclosure prior to making any such
disclosures.

     4.6 Governing Law. This Agreement will be governed by, and construed and enforced in
accordance with, the laws of the state of California, without regard to its conflicts of laws
principles.

     4.7 Waiver; Severability. The waiver or breach of any provision of this Agreement
shall not operate or be construed as a waiver of any other breach of the same or any other term or
condition. If any provision of this Agreement is found to be unenforceable, the remainder shall be
enforced as fully as possible and the unenforceable provision shall be deemed modified to the
limited extent required to permit its enforcement in a manner most closely approximating the
intention of the parties as expressed herein.

     4.8 No Third Party Rights. Nothing in this Agreement shall be deemed to create any
right on the part of any person or entity not a party to this Agreement. The provisions of this
Agreement are solely for the benefit of the parties to the Agreement[, and no employee or former
employee of the Partnerships or the Seller or any other individual associated herewith or any other
party shall be regarded for any purpose as a third-party beneficiary of the Agreement as a result
of this Agreement. Nothing contained in this Agreement will be deemed to cause any employee’s
employment on or after the Closing to be other than on an “at will” basis].

     4.9 Counterparts. This Agreement may be executed in counterparts, each of which shall
constitute one agreement, and all of which when taken together, shall constitute one agreement.
This Agreement shall become effective when counterparts of this Agreement have been executed by and
delivered to both parties.

     4.10 Entire Agreement; Amendments. This Agreement, including the Exhibit hereto and
the documents delivered hereunder, contains the entire agreement and understanding of the parties
in respect of the subject matter hereof, and supersedes all prior agreements and understandings
between the parties. Except for the express representations and warranties set forth in this
Agreement, there are no representations or warranties of any kind, including without limitation any
representations or warranties as to the business, assets, properties, liabilities or obligations of
the Partnerships. Buyer acknowledges and agrees that Seller and any affiliate of Seller has no
obligation, responsibility or duty to inform Buyer of any information concerning the Partnerships
or their business, assets, properties, liabilities or obligations, even if such

6

 

information is material and is known to Seller or such affiliate. This Agreement may not be
amended except in a writing signed by each of the parties.

     4.11 Waiver of Rescission. Each party hereby irrevocably waives any right of
rescission with respect to this Agreement and the transactions contemplated hereby and agrees that
it will not, directly or indirectly, initiate or pursue any proceeding or take any other action
that may result in such rescission.

[SIGNATURE PAGE FOLLOWS]

7

 

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	 	ALLIANCE SEMICONDUCTOR CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 
	 

	 	 	 	 
	 

	 	Name:	 	Melvin L. Keating 
	 

	 	Title:	 	President and CEO 
	 
	 	 	 	 
	 	 	ALLIANCE VENTURE MANAGEMENT, LLC
	 

	 	By:	 	/s/ V. R. Ranganath 
	 

	 	 	 	 
	 

	 	Name:	 	V. R. Ranganath 
	 

	 	 	 	 
	 

	 	Title:	 	President 
	 

	 	 	 	 

[Signature Page to the Partnership Interests Purchase Agreement]

8

 

EXHIBIT A

RECEIPT

     Reference is made to the Partnership Interests Purchase Agreement (the “Agreement”) dated as
of                      ___, 2006 by and between Alliance Semiconductor Corporation, a Delaware corporation
(“Buyer”) and Alliance Venture Management, LLC, a California limited liability company (“Seller”).

     Seller hereby acknowledges receipt from Buyer pursuant to Section 1.4 of the Agreement of the
amount set forth below.

Dated:                     ___, 2006

	 	 	 	 	 	 	 	 	 
	ALLIANCE VENTURE MANAGEMENT, LLC	 	 	AMOUNT RECEIVED
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	$

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