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EXHIBIT 10.5

AFFILIATION AGREEMENT

THIS AGREEMENT (the “Agreement”) is made as of October 3, 2007 between Allegro MicroSystems, Inc.,
a Delaware corporation with its principal offices at 115 Northeast Cutoff, Worcester, Massachusetts
01615 (“Allegro”); and Sanken Electric Co., Ltd., a Japanese corporation with its principal offices
at 3-6-3 Kitano, Niiza-shi, Saitama, Japan (“Sanken”).

WHEREAS, Allegro anticipates an initial public offering (“IPO”) of its common stock, after which
Allegro will become a public company; and

WHEREAS, the parties wish to clarify the contractual relationships between Allegro and Sanken and
between Allegro and Polar Semiconductor, Inc. (“PSI”), a wholly-owned subsidiary of Sanken located
in Bloomington, Minnesota; and

WHEREAS, the parties wish to anticipate their communications and exchanges of information after the
IPO, and provide for appropriate treatment of information that is confidential or non-public.

NOW, THEREFORE, the parties hereby agree as follows:

1.      Formal Agreements.

Allegro and Sanken (collectively referred to as “Parties” and singularly as “Party”) acknowledge
that Allegro is a party to those written agreements with Sanken and/or PSI that are set forth on
Exhibit A to this Agreement.

2.      Terminated Agreements.

The Parties acknowledge that those written agreements between Sanken and Allegro that are set forth
on Exhibit B have terminated or expired, and if not terminated or expired as of the date of this
Agreement, such agreements are hereby terminated pursuant to this Agreement.

3.      Confidentiality.

Without limiting any rights or obligations under any existing or future agreement between the
Parties concerning confidentiality, the Parties agree not to disclose to any third party without
written authorization of the disclosing Party any Confidential Information received from the
disclosing Party, and further, to use the same standard of care it employs for the protection of
its own confidential information to prevent

 

 

Confidential Information originating with the disclosing Party from being disclosed to any third
party outside its employ for a term of five (5) years from the date of the respective disclosure
and to disclose such information to its employees only on a need-to-know basis. As used in this
Agreement “Confidential Information” shall include but not be limited to all information regarding
patents, products, designs, marketing plans, processes, inventions, formulae, pricing and cost
information, specifications, drawings, samples or other confidential or proprietary information or
data furnished by one Party to the other.

For purposes of this Agreement, all Confidential Information disclosed either orally or in writing,
whether identified as confidential or not, will be considered by the Parties to be “Confidential
Information” unless the disclosed information (a) was in the receiving Party’s possession before
receipt from the disclosing Party; (b) is or becomes a matter of public knowledge through no fault
of the Receiving party; (c) is rightfully received by the receiving Party from a rightfully
possessing third party without a duty of confidentiality; (d) is required to be disclosed by court
order or other lawful governmental actions, but only to the extent so ordered, and provided that
the Party so ordered shall notify the disclosing Party so that the disclosing Party may attempt to
obtain a protective order; or (e) is independently developed by an employee of the receiving Party
who has not had access to any Confidential Information of the disclosing Party. A Party may
disclose Confidential Information to the Party’s employees, agents or subcontractors as reasonably
necessary or appropriate, provided that before disclosure such recipients are informed of the
confidential nature of the Confidential Information and the disclosing Party shall ensure
compliance by its employees, agents or subcontractors with the confidentiality provisions of this
Agreement.

No license to the receiving Party under any patent or other property of the disclosing Party is
granted or implied by disclosing Confidential Information or any other information to the receiving
Party. None of such disclosed information which may be transmitted or exchanged by the respective
Parties shall constitute any representation, warranty, assurance, guaranty, or inducement by either
Party to the other with respect to the Confidential Information, including but not limited to
non-infringement of patents or other proprietary rights of any third party.

4.      Non-Public Information.

The Parties agree that for so long as a Party is in possession of any material non-public
information regarding the other Party or any securities issued by the other Party, as the term
“material non-public information” is used in Regulation FD promulgated by the U.S. Securities and
Exchange Commission, such Party (a) will maintain such material non-public information in
confidence; and (b) will not purchase, sell, or otherwise engage in any similar transaction
relating to, the securities of the other Party.

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5.      Exchange of Business Information.

The Parties maintain a strategic business relationship and engage in substantial transactions on an
ongoing basis, including without limitation purchase and sale of products, joint technology
development and loan transactions. Allegro is a major customer of PSI and has other substantial
business relationships with PSI. The financial results of Allegro must be consolidated into
Sanken’s financial statements. Accordingly, the Parties recognize that communication between
Sanken and Allegro is constant and will be far more extensive than communications that Allegro may
have with other shareholders.

Allegro agrees to provide Sanken with substantially comparable information as Allegro provided to
Sanken prior to the IPO, including without limitation quarterly update information, subject to
compliance with applicable securities laws and the undertakings set forth in Sections 3 and 4 of
this Agreement. The Parties agree to conduct their strategic and business communications pursuant
to practices developed in the ordinary course of business that are consistent with Allegro’s
corporate governance procedures and the overall interests of Allegro and its shareholders.

6.      Financial Statement Coordination.

Allegro agrees to provide Sanken with sufficient and timely financial information as may be
necessary to enable Sanken to prepare its consolidated financial statements on a timely basis. The
parties recognize that after the IPO Allegro will have its own public reporting obligations. This
may impact Allegro’s ability to provide financial information as early as it was provided to Sanken
prior to the IPO. Nevertheless, Allegro will exert its best efforts to supply information
sufficiently in advance to Sanken, while Sanken will seek to minimize the burden of such requests
upon Allegro.

Allegro will keep Sanken advised of any changes in financial projections that may impact Sanken’s
own financial projections. Allegro agrees not to change its independent certified public
accountants or its fiscal year without Sanken’s prior written consent (which consent will not be
unreasonably withheld). Allegro agrees not to initiate any major change of accounting policy
without consultation with Sanken unless such change is required by law or governing accounting
principles.

7.      Press Releases; Required Disclosure.

The Parties agree to consult with each other as to the timing of annual and quarterly earnings
releases and any financial guidance that is publicly provided. The Parties will strive to issue
their annual and quarterly earnings releases at approximately the same time on the same date.
Neither Party will issue any press release that may have a material impact on the public trading
price of its common stock (or the common stock

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of the other Party) without prior consultation with the other Party, except to the extent required
by law.

The Parties are subject to the laws of different countries and the regulations of different stock
exchanges. The Parties recognize that one Party may be compelled to make a public disclosure due
to applicable law or regulations, or to ensure consistency with past disclosures, that would not
otherwise be made by the other Party. It is further recognized that such a public disclosure by
one Party may trigger public disclosure by the other Party. Nothing in this Agreement shall
prevent a Party from making any public disclosure that it believes in good faith is required under
applicable law or regulations. Notwithstanding the foregoing, in any such cases a Party shall
exert its best efforts to consult with the other Party with as much advance notice as is reasonable
under the circumstances, and to consider proposals from such other Party concerning the
coordination of public disclosure or press releases.

8.      Further Assurances.

The Parties agree to execute, or cause to be executed, any and all documents or agreements as shall
be necessary or appropriate in order to effectuate the matters described in this Agreement.

9.      Governmental Filings.

Each Party shall determine in its sole discretion whether such Party is required to file or
otherwise submit this Agreement and/or any description hereof with or to any governmental
authorities or securities exchanges, including, without limitation, the U.S. Securities and
Exchange Commission, NASDAQ, the Japanese Securities and Exchange Surveillance Commission or the
Tokyo Stock Exchange. If a Party (as the Submitting Party) determines that it is required to file
or otherwise submit this Agreement and/or any description hereof with or to any such governmental
authority or securities exchange, as applicable, then such Submitting Party shall with respect to
such proposed filing or submission: (i) provide a copy of such filing or submission to the other
party (as the Non-Submitting Party) reasonably prior to its filing or submission, and (ii) to the
extent that the Submitting Party intends to request confidential treatment for any portion or
portions of this Agreement, the Submitting Party will (A) provide a reasonable amount of time for
the Non-Submitting Party’s review of such confidentiality request and any redactions comprising
such intended request and (B) give good faith consideration to the Non-Submitting Party’s comments
and requests for any additional or different redactions.

10.    Miscellaneous Provisions.

          10.1    Entire Agreement. This Agreement constitute the entire understanding between the
Parties with respect to the matters described herein, superseding all prior

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agreements, negotiations or discussions between the Parties regarding such subject matter. This
Agreement shall not impact any agreement between the Parties that does not address the specific
subject matter of this Agreement, including without limitation those agreements described in
Sections 1 and 2 hereof.

          10.2    Amendments. No amendment or modification of this Agreement shall be effective
unless set forth in writing and signed by a duly authorized representative of each Party.

          10.3    Assignment. Neither Party shall assign any or all of its rights and obligations
under this Agreement without the prior written consent of the other Party.

          10.4    Waiver. Any failure by a Party to exercise or enforce any right under this
Agreement shall not be deemed a waiver of such Party’s right thereafter to enforce each and every
term and condition of this Agreement.

          10.5    Language. This Agreement was drafted and executed in the English language.

          10.6    Notices. Notices under this Agreement may be sent by e-mail or courier service.
Notice shall be sent to the address set forth on the first page of this Agreement or to such other
address and contact person as a Party may designate, or to the email address of any such designated
contact person.

          10.7    Severability. The invalidity or unenforceability of any portion of this
Agreement shall not affect the validity or enforceability of the remainder of this Agreement.

          10.8    Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware.

          10.9    Dispute Resolution. The Parties shall make best efforts to try to resolve any
and all claims, controversies or difficulties between the parties (“Claims”) by mutual discussions
in good faith. Should the Parties be unable to reach resolution themselves, Claims shall be
finally settled by arbitration as follows: if Allegro initiates the arbitration proceeding,
arbitration will be held in Tokyo, Japan in accordance with the Commercial Arbitration Rules of the
Japan Commercial Arbitration Association; and if Sanken initiates the arbitration proceeding,
arbitration will be held in the State of Massachusetts in accordance with the Commercial
Arbitration Rules of the American Arbitration Association.

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

	 	 	 
	ALLEGRO MICROSYSTEMS, INC.

	 	SANKEN ELECTRIC CO., LTD.
	 
	 	 
	 
	 	 
	/s/ Dennis H. Fitzgerald

	 	/s/ Sadatoshi Iijima
	 

	 	 
	Dennis H. Fitzgerald

	 	Sadatoshi Iijima
	President and Chief Executive Officer

	 	President

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EXHIBIT A

Formal Agreements

	1.	 	Distribution Agreement Japan between Allegro and Sanken dated July 5, 2007, pursuant to which
Sanken acts as exclusive distributor of Allegro products in Japan.
	 
	2.	 	Distribution Agreement between Sanken and Allegro dated July 5, 2007, pursuant to which
Allegro acts as exclusive distributor (with limited exceptions) of Sanken semiconductor
products in North and South America.
	 
	3.	 	Sales Representative Agreement between Sanken and Allegro dated July 5, 2007, pursuant to
which Allegro acts as a sales representative for certain Sanken products in North and South
America.
	 
	4.	 	Wafer Foundry Agreement between PSI and Allegro dated August 1, 2007, pursuant to which PSI
supplies wafer products to Allegro.
	 
	5.	 	Joint Technology Development Agreement among PSI, Sanken and Allegro effective as of
September 13, 2007, being an amendment and restatement of an agreement originally dated
February 15, 2006, providing for the development of SG5 technology by PSI for the benefit of
Sanken and Allegro.
	 
	6.	 	Purchasing Agreement between Allegro and Sanken dated October 1, 1997, providing compensation
for purchasing activities conducted by one party on behalf of the other party.
	 
	7.	 	Patent License Agreement between Sanken and Allegro dated May 13, 2004, granting Allegro a
non-exclusive license under specified Sanken patents.
	 
	8.	 	Agreement as to Sanken Employees on loan to Allegro MicroSystems, Inc. dated April 1, 1997,
addressing Sanken employees an assignment to Allegro.
	 
	9.	 	Loan Agreements between Sanken and Allegro, as follows:

	 	(a)	 	Agreement dated April 18, 2003.
	 
	 	(b)	 	Agreement dated April 12, 2004.
	 
	 	(c)	 	Agreement dated July 13, 2005.
	 
	 	(d)	 	Agreement dated January 26, 2007.

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	10.	 	Technology Transfer Agreement between Sanken and Allegro dated November 30, 2002, pursuant to
which certain technology was transferred from Allegro to Sanken.
	 
	11.	 	Sanken and Allegro are joint parties to a License Agreement with Sharp Corporation dated
December 28, 2006 pursuant to which Sanken and Allegro are entitled to use the tradename
“Allegro” in Japan.

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EXHIBIT B

Terminated Agreements

	1.	 	Purchase and Sale Agreement between Sanken and Allegro dated October 1, 1994, superseded by
the Distribution Agreement Japan described in Item 1 of Exhibit A.
	 
	2.	 	Purchase and Sale Agreement between Sanken and Allegro dated September 1, 1994, superseded by
the Distribution Agreement described in Item 2 of Exhibit A.
	 
	3.	 	Representative Agreement between Sanken and Allegro dated October 1, 1997, superseded by the
Sales Representative Agreement described in Item 3 of Exhibit A.
	 
	4.	 	Contract Manufacturing Agreement between Allegro and Sanken dated October 1, 1997, which
agreement is hereby terminated by the parties effective as of the date of this Agreement.
	 
	5.	 	Purchase and Sale Agreement between Sanken and Allegro dated April 1, 1991.
	 
	6.	 	Subcontract Assembly Agreement between Sanken and Allegro dated January 1, 1994.
	 
	7.	 	Representative Agreement between Sanken and Allegro commencing on April 1, 1997.
	 
	8.	 	Representative Agreement between P. T. Sanken Indonesia and Allegro dated April 1, 1998.
	 
	9.	 	Agreement between Sanken and Allegro dated August 30, 1994 regarding commission splits.

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EXHIBIT 10.26

SEVERANCE AGREEMENT

THIS AGREEMENT (the “Agreement”) is entered into as of October 3, 2007 between Allegro
MicroSystems, Inc., a Delaware corporation having its principal place of business at 115 Northeast
Cutoff, Worcester, Massachusetts 01615 (“Allegro”), and Dennis H. Fitzgerald, a resident of the
State of Massachusetts (“Executive”).

WHEREAS, Executive is the President and Chief Executive Officer of Allegro, and Allegro wishes to
provide certain assurances to Executive concerning the effect of any discontinuance of his service
to Allegro.

NOW, THEREFORE, the parties hereby agree as follows:

1. Severance Benefits.

In the event that Allegro terminates Executive’s employment at any time without “good cause” (as
defined in Section 2.1 of this Agreement), Executive shall be entitled, subject to Section 4 of
this Agreement, to the following:

	1.1	 	A “Severance Benefit” equal to two hundred percent (200%) of (a) Executive’s base salary on
the date that notice of termination is given to Executive (the “Notice Date”); plus (b) the
average annual bonus compensation paid to Executive during the two year period preceding the
Notice Date. The Severance Benefit shall be paid as follows: one year of base salary shall
be paid pursuant to Section 1.2, and the balance of the Severance Benefit shall be paid in a
lump sum within (15) fifteen days following the Notice Date.

	1.2	 	For one year following the Notice Date, Allegro will continue to pay Executive his base
salary in accordance with its customary payroll procedures. During such one year period,
Allegro will continue to pay Executive any automobile allowance in effect on the Notice Date,
and will continue to pay the premiums on any supplemental life insurance that Allegro provides
to Executive as of the Notice Date.

	1.3	 	During the one year period referenced in Section 1.2, Executive shall be entitled to (a)
continued participation at no cost in the medical benefits program of Allegro, provided that
such participation shall earlier terminate if Executive

 

 

	 	 	becomes eligible for coverage under the medical benefits program of a new employer; and (b)
participation in any other benefit programs for which Executive qualifies based on the
continuation of salary and the providing of services to Allegro hereunder.

	1.4	 	Executive shall be entitled to receive base salary and vacation pay that is accrued but
unpaid as of the Notice Date. Payment shall be made in accordance with Allegro’s customary
payroll procedures.

	1.5	 	All payments made pursuant to Sections 1.1 through 1.4 shall be net of any applicable
withholding taxes.

	1.6	 	All stock options or restricted stock awards or any other benefit or award held by Executive
on the Notice Date pursuant to any stock option or equity compensation plan of Allegro
(including without limitation the 2001 Stock Option Plan and the 2007 Long-Term Incentive
Plan) shall become 100% vested on the Notice Date. Without limitation, all outstanding stock
options or any other benefit or award shall become immediately exercisable and the restriction
period applicable to any restricted stock awards shall lapse.

2. Certain Definitions.

For purposes of this Agreement, certain terms shall have the meaning set forth below:

	2.1	 	The term “good cause” means: (a) continued or repeated failure, refusal or inability (after
prior written notice from Allegro) to substantially perform the duties required by Executive’s
position or to comply with reasonable directives of Allegro’s board of directors; (b) a
willful or intentional act or omission in breach of Executive’s fiduciary duty to Allegro
which results in a substantial disadvantage to Allegro; (c) knowingly aiding a competitor of
Allegro to the detriment of Allegro; (d) knowingly making unauthorized disclosures to third
parties of material confidential or proprietary information of Allegro; (e) inability to
perform Executive’s duties for more than three months in the aggregate during any twelve month
period due to illness, chemical dependency or other incapacity; or (f) conviction (by a court
of competent jurisdiction, not subject to further appeal) of, or pleading guilty to, a felony.

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	2.2	 	The following events may, at Executive’s option elected by notice within 15 days after the
occurrence thereof, be deemed a termination of employment by Allegro without good cause within
the meaning of Section 1 of this Agreement: (a) change of position or responsibilities below
the level of President and Chief Executive Officer as the same exist on the date of this
Agreement; (b) reduction in base salary of more than 10%; or (c) relocation to another office
of Allegro that is more than 35 miles distant from Worcester, Massachusetts without
Executive’s consent, unless such relocation is part of a general relocation of Allegro’s
headquarters and the current relocation package is provided.

3. Advisory Services.

For one year following the Notice Date, Executive will make himself available for consultation with
management of Allegro at mutually agreed times. Such consultation will be arranged so as not to
unduly interfere with Executive’s duties to a successor employer. Executive will not be obligated
to render more than ten hours of consulting services in any month.

4. Indemnification.

In the event that the indemnification provisions of Article Six of the Restated Certificate of
Incorporation or Article Seven of the Bylaws are changed after the date of this Agreement,
Executive will have the same rights and protections contained in those provisions as the same
existed on the effective date of this agreement.

5. Exclusive Remedy.

The benefits described in Section 1 constitute Executive’s exclusive remedy with respect to any and
all claims or causes of action arising out of Executive’s employment or termination of employment
by Allegro. Such benefits are in lieu of payments under any severance pay policy or program that
may be maintained by Allegro. Allegro may require, as a pre-condition to payment of the Severance
Benefit described in Sections 1.1 and 1.2 and extension of the rights described in Sections 1.3 and
1.6, that Executive sign a written release of any and all claims against Allegro and its parent
company, Sanken Electric Co., Ltd., and their subsidiaries, affiliates, officers, directors and
agents, arising out of Executive’s employment or the termination thereof. However, no such release

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shall deprive Executive of his right to reimbursement for business expenses or his vested rights
under any Allegro benefit plan or compensation program.

6. Employment Status.

This Agreement is not intended as an employment agreement. Executive’s status as an employee,
officer and director of Allegro will be determined in the ordinary course of business pursuant to
Allegro’s internal operating procedures and the governance of Allegro’s board of directors.

7. Authority for Agreement.

This Agreement has been approved by the board of directors of Allegro upon the recommendation of
its Compensation Committee. The board of directors has authorized the Chairman of the Board of
Allegro to execute this Agreement on behalf of Allegro.

8. Miscellaneous.

	8.1	 	Section 409A Compliance. Any payments or benefits provided under this Agreement
shall commence within fifteen days after Executive’s “separation from service” with Allegro
(as defined under Section 409A of the Internal Revenue Code). In the event that Executive is
deemed to be a “specified employee” under Section 409A of the Internal Revenue Code at the
time of his “separation from service,” the commencement of any payments or benefits that shall
be properly treated as deferred compensation under Section 409A (after taking into account all
applicable exclusions) shall be delayed until the date that is six months after the date
Executive has a “separation from service” (or the date of Executive’s death, if earlier). The
first payment of any installment payments so delayed shall include any installments payments
that otherwise would have been paid during such six-month delay.

	8.2	 	Entire Agreement. This Agreement constitutes the entire agreement and understanding
between Executive and Allegro concerning the subject matter hereof, and supersedes all prior
negotiations or understandings between the parties, whether written or oral, concerning such
matter, including without limitation that certain Employment Agreement dated May 31, 2001 and
a letter agreement between Allegro and Executive dated May 24, 2003.

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	8.3	 	Waiver; Amendment. No waiver of any breach of this Agreement shall be construed to
be a waiver of any other breach of this Agreement. No waiver or amendment of this Agreement
shall be effective unless set forth in a written document signed by Executive and the Chairman
of the Board of Allegro.

	8.4	 	Notices. Any notices required or permitted by this Agreement shall be in writing,
and may be transmitted by personal delivery, by courier service or by e-mail if receipt of
such e-mail is acknowledged by the receiving party. Notice to Allegro shall be addressed to
the Chairman of the Board with a copy to the Secretary. Notices shall be addressed to the
recipient’s principal business office.

	8.5	 	Choice of Law. This Agreement shall be construed in accordance with and governed by
the laws of the State of Massachusetts.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY BLANK]

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

	 	 	 	 	 
	 

	 	 	 	ALLEGRO MICROSYSTEMS, INC.
	 
	 	 	 	 
	/s/ Dennis H. Fitzgerald

	 	 	 	/s/ Sadatoshi Iijima
	 

	 	 	 	 
	Dennis H. Fitzgerald

	 	 	 	Sadatoshi Iijima
	 

	 	 	 	Chairman of the Board of Directors

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