Document:

exv10w2

 

Exhibit 10.2

MUTUAL RELEASE

     THIS
MUTUAL RELEASE (“Agreement”) is made and entered into as of
this 1st day of
December, 2006, by and between Alliance Semiconductor Corporation, a Delaware corporation
(“ALSC”), for itself and its capacity as sole limited 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. (collectively the “Partnerships”) each of the Partnerships, and ALSC Venture
Management, LLC, a California limited liability company (“ALSC Venture”) on one hand, and Alliance
Venture Management, LLC, a California limited liability company (“AVM”) for itself and in its
capacity as the former sole general partner and special limited partner of each of the
Partnerships, on the other hand.

RECITALS:

          A. On May 3, 2006, Alliance Semiconductor Corporation removed Alliance Venture
Management, LLC as general partner and named ALSC Venture Management as a new general partner.
Alliance Venture Management LLC now holds a limited partner interest in each partnership pursuant
to the provisions of California law and will retain its capital account as computed through May 3,
2006 but will not accrue further increases, or decreases for loss allocations, in its capital
account.

          B. Pursuant to a Memorandum of Understanding dated as of May 17, 2006 (“MOU”) the parties have
agreed that the agreement of limited partnership for each of the Partnerships shall be amended to
remove from each such partnership agreement the provisions for allocating 15% of net profits from
portfolio investments to the general partner and to remove the existing provisions in paragraph 4.2
regarding payment of a management fee, and that there will be no further payments of compensation
to AVM for past or future services as general partner of the Partnerships.

          C. The parties have agreed that Alliance Venture Management, LLC will sell its partnership
interests to ALSC for $400,000 (from all Partnerships in the aggregate), and for the allocation to
ALSC Venture of 2% (two percent) of the gross sales proceeds from the investments in any
partnership’s portfolio, including proceeds from a liquidity event such as an IPO or a sale of the
portfolio company (which payments may be made in kind at the applicable Partnership’s option).

          D. The parties have agreed that V.R. Ranganath will be employed or will consult with ALSC
Venture for compensation of $300,000 per year plus payment of reasonable and defined expenses.

          E. AVM, ALSC, ALSC Venture and each of the Partnerships have agreed to enter into a complete
release of all claims, known and unknown, with respect to rights and claims concerning the
Partnerships, except for obligations created by the MOU as described in the preceding recitals (the
“MOU Agreements”), and provided that the indemnification provisions contained in section 5.7 of
each of the partnership agreements shall survive.

     NOW THEREFORE, for good and valuable consideration (including the execution and delivery of
the releases set forth in this Agreement), the receipt and sufficiency of which is hereby
acknowledged, ALSC, the Partnerships and AVM hereby agree as follows:

 

 

1. Releases.

          (a) ALSC, ALSC Venture and each of the Partnerships hereby releases and forever discharges AVM
and all of its respective successors, assigns, managers, officers, agents, employees and members,
and each of them (collectively, the “AVM Released Parties”), of and from any and all claims,
damages, demands, debts, liabilities, losses, obligations, suits, actions and causes of action, of
every kind and character whatsoever, at law or in equity, whether known or unknown, which ALSC or
any of the Partnership ever had, now has or hereafter may have against any of the AVM Released
Parties, arising out of or in any way relating to the Partnerships, all activities of the
Partnership and the acts or omissions of AVM in connection with the Partnerships since the
beginning of time through the date of this Agreement (the “Released Matters”).

          (b) AVM hereby releases and forever discharges ALSC, ALSC Venture, each of the Partnerships
and their respective successors, assigns, directors, officers, agents, and employees, and each of
them (collectively, the “ALSC Released Parties”), of and from any and all claims, damages, demands,
debts, liabilities, losses, obligations, suits, actions and causes of action, of every kind and
character whatsoever, at law or in equity, whether known or unknown, which AVM ever had, now has,
or hereafter may have against any of the ALSC Released Parties, arising out of or in any way
relating to the Released Matters.

          (c) The parties acknowledge the provisions of Section 1542 of the Civil Code of the State of
California, which provides as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR

DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF

EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY

AFFECTED HIS SETTLEMENT WITH THE DEBTOR.

          (d) For the purposes of implementing the full and complete release and discharge of the
AVM Released Parties against ALSC, ALSC Venture or any of the Partnerships, and of the ALSC
Released Parties against AVM described under Paragraphs 1(a) and (b), the parties expressly waive,
relinquish and forfeit all rights and benefits afforded by Section 1542 of the Civil Code of the
State of California .

          (e) The parties have each carefully read and fully understand all of the provisions of this
Release which sets forth the entire agreement, and each acknowledge that they have not relied upon
any representation or statement, written or oral, not otherwise set forth within this document.

     2. Representations and Warranties. Each of ALSC, ALSC Venture, the Partnerships and
AVM represents and warrants:

          (a) that such party has not assigned, transferred, encumbered or conveyed in any other way,
all or any portion of the claims or rights covered by this Agreement;

          (b) that such party has executed this Agreement voluntarily, with full knowledge of its import
and significance; that this Agreement is fair and reasonable and is not the result of any

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duress, overreaching, coercion, pressure or undue influence exercised by any other party upon
such party; and that the parties have been awarded the opportunity and have obtain independent
legal advice from counsel of their own selection with respect to this Agreement and their rights
and obligations under this Agreement; and

          (c) that such party has full corporate or limited liability company, as applicable, power and
authority to execute and deliver this Agreement to the other party.

     3. Limitations of Agreement. The releases under this Agreement relate only to the
Released Matters. ALSC, ALSC Venture, each of the Partnerships and AVM agree that the releases set
forth in this Agreement shall be and remain in effect in all respects as a complete general release
as to the matters released; provided however that this release does not extend to any obligations
incurred under this Agreement or any of the MOU Agreements; notwithstanding the releases
contemplated hereunder, ALSC, ALSC Venture and each of the Partnerships acknowledges that each of
the AVM Released Parties is entitled to continuing enforcement of Section 5.7 of each agreement of
limited partnership for each of the Partnerships.

     4. Confidentiality. The parties hereto each agree to use their best efforts to
maintain in confidence the existence of this Agreement, the contents and terms of this Agreement,
and the consideration for this Agreement (hereinafter collectively referred to as “Settlement
Information”). Each party hereto agrees to take every reasonable precaution to prevent disclosure
of any Settlement Information to third parties, with the exception that the terms of this Agreement
may be disclosed to and discussed with agent, those employees, officers, directors, attorneys,
accountants, governmental agencies, and family members who have a reasonable need to know of such
Settlement Information. In addition, the Settlement Information may be disclosed to the extent
required under applicable securities laws or to enforce this Agreement.

     5. No Admission of Liability. The parties understand and acknowledge that this
Agreement constitutes a compromise and settlement of disputed claims. No action taken by the
parties hereto, or either of them, either previously or in connection with this Agreement shall be
deemed or construed to be (a) an admission of the truth or falsity of any claims heretofore made or
(b) an acknowledgement or admission by either party or any fault or liability whatsoever to the
other party or to any third party.

     6. Costs. The parties shall each bear their own costs, expenses, attorneys’ and other
fees incurred in connection with this Agreement. The prevailing party in any action to enforce
this Agreement will be entitled to its attorneys’ fees, costs and expenses.

     7. Governing Law. This Agreement shall be governed by, and construed in accordance
with, the laws of California.

     8. Severability. If any term or provision of this Agreement shall for any reason be
determined to be invalid, illegal and/or enforceable, the remaining provisions of this Agreement
shall nonetheless continue in full force and effect.

          IN WITNESS WHEREOF, ALSC, ALSC Venture, each of the Partnerships and AVM have executed this
Agreement as of the day and year first written above.

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	 	 	ALLIANCE SEMICONDUCTOR CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 
	 	 	 	 	 
	 	 	 	 	Melvin L. Keating, President
	 
	 	 	 	 	 	 
	 	 	ALSC VENTURE MANAGEMENT, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 
	 	 	 	 	 
	 	 	 	 	Melvin L. Keating, Manager
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES I, L.P.
	 
	 	 	 	 	 	 
	 	 	By: ALSC VENTURE MANAGEMENT, LLC
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Melvin L. Keating 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Melvin L. Keating, Manager
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES II, L.P.
	 
	 	 	 	 	 	 
	 	 	By: ALSC VENTURE MANAGEMENT, LLC
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Melvin L. Keating 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Melvin L. Keating, Manager
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES III, L.P.
	 
	 	 	 	 	 	 
	 	 	By: ALSC VENTURE MANAGEMENT, LLC
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Melvin L. Keating 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Melvin L. Keating, Manager
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES IV, L.P.
	 
	 	 	 	 	 	 
	 	 	By: ALSC VENTURE MANAGEMENT, LLC
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Melvin L. Keating 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Melvin L. Keating, Manager

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	 	 	ALLIANCE VENTURES V, L.P.
	 
	 	 	 	 	 	 
	 	 	By: ALSC VENTURE MANAGEMENT, LLC
	 	 	Its: General Partner
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Melvin L. Keating 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Melvin L. Keating, Manager
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURE MANAGEMENT, LLC
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ V.R. Ranganath 
	 	 	 	 	 
	 	 	 	 	V.R. Ranganath, Manager

5exv10w3

 

Exhibit 10.3

MANAGEMENT AGREEMENT

     This
Management Agreement (this “Management Agreement”)
is made as of the 1st day of
December, 2006, by and between ALSC VENTURE MANAGEMENT, LLC, a California limited liability
company and each of the following partnerships: 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 a
California limited partnership (each such partnership being referred individually as a
“Partnership” and collectively as the “Partnerships”).

     The Partnerships acknowledge that each of them was formed pursuant to an Agreement of Limited
Partnership dated the date set forth on Schedule 1 to this Agreement. Each Partnership
acknowledges that ALSC Venture Management, LLC has been named as the new General Partner of each
Partnership and that pursuant to agreements amending each limited partnership, this Management
Agreement has been executed.

     1. Designation of Manager. Each Partnership hereby confirms that ALSC Venture
Management, LLC has been designated as the Management Agent, as defined in the respective
Partnership Agreements of the Partnership.

     2. Compensation of Management Agent. The Management Agent shall receive an annual
management fee of $300,000 per year (pro rated for any partial year) commencing May 17, 2006 and
paid in monthly installments.

     3. Payment of Management Compensation. All Partnerships shall be jointly and
severally liable for the payment of the management compensation provided in this Management
Agreement. For administrative purposes, the Partnerships agree that unless another method of
allocation is agreed upon, management compensation shall be allocated among the Partnerships and
charged to each Partnership according to the aggregate value of the capital accounts of the limited
partners in such Partnership as of the end of the most recent fiscal quarter. If any Partnership
pays a greater proportion or share of such management fees, it shall be entitled to recover such
excess portion from the Partnerships contributing less than their portion is determined under this
paragraph.

     4. Employment of V.R. Ranganath. Provided he is willing to serve in such capacity,
and subject to his dismissal for cause, the Management Agent shall employ V. R. Ranganath to
perform the functions of administering the portfolio securities, keeping records, assisting in
valuation and preparing financial statements, reports and tax returns, and shall pay V.R. Ranganath
compensation equal to the compensation stated in Section 2 of this Agreement, subject to all
legally-required withholdings and pursuant to the form of Employment Agreement attached as Exhibit
A. If ALSC Venture Management is sold to a non-affiliate of Alliance Semiconductor Corporation and
compensation is paid to Alliance Ventures Management LLC in connection with the sale, this
paragraph 4 may be renegotiated after six months.

     5. Miscellaneous.

 

 

          (a) Amendments. This Agreement may be amended by the General Partner and the Manager
in any manner that does not adversely affect the rights of any Limited Partner by an instrument in
writing and may not be amended orally.

          (b) Notices. All notices provided for under this Agreement shall be in writing and
shall be sufficient if sent by first-class mail to the address set forth in the schedule in the
files of the Partnership as of the date of such notice for the party to whom such notice is to be
given.

          (c) Binding Effect of Agreement. This Agreement, shall be binding on the successors,
assigns and the legal representatives of each of the Partners.

          (d) Counterparts. This Agreement may be executed in more than one counterpart with
the same effect as if the parties executing the several counterparts had all executed one document.

          (e) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of California, without regard to the principles of conflicts of law
thereof.

     IN
WITNESS WHEREOF, the parties have executed this Amendment this
1st day of December, 2006.

	 	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES I, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

ALSC Venture Management, LLC, General Partner
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

Melvin L. Keating, Manager
	 	 
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES II, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

ALSC Venture Management, LLC, General Partner
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

Melvin L. Keating, Manager
	 	 

-2-

 

	 	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES III, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

ALSC Venture Management, LLC, General Partner
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

Melvin L. Keating, Manager
	 	 
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES IV, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

ALSC Venture Management, LLC, General Partner
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

Melvin L. Keating, Manager
	 	 
	 
	 	 	 	 	 	 
	 	 	ALLIANCE VENTURES V, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

ALSC Venture Management, LLC, General Partner
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

Melvin L. Keating, Manager
	 	 
	 
	 	 	 	 	 	 
	 	 	ALSC VENTURE MANAGEMENT, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Melvin L. Keating 	 	 
	 

	 	 	 	 

Melvin L. Keating, Manager
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ V.R. Ranganath 	 	 
	 

	 	 	 	 

V.R. Ranganath, Manager
	 	 

-3-

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