Exhibit 10.54
[ALLIANCE LOGO]
ALLIANCE SEMICONDUCTOR CORPORATION
1996 EMPLOYEE STOCK PURCHASE PLAN
(as amended)
The following constitute the provisions of the 1996 Employee Stock
Purchase Plan (the "Plan") of Alliance Semiconductor Corporation, a Delaware
corporation with its principal offices at 2575 Augustine Drive, Santa Clara,
California 95054 (the "Company").
1. PURPOSE. The purpose of the Plan is to provide employees of the Company
and its Designated Subsidiaries with an opportunity to purchase Common Stock of
the Company. It is the intention of the Company to have the Plan qualify as an
"Employee Stock Purchase Plan" under Section 423 of the Internal Revenue Code of
1986, as amended (the "Code"). The provisions of the Plan shall, accordingly, be
construed so as to extend and limit participation in a manner consistent with
the requirements of that section of the Code.
2. DEFINITIONS.
(a) "Board" shall mean the Board of Directors of the Company.
(b) "Code" shall mean the Internal Revenue Code of 1986, as amended.
(c) "Common Stock" shall mean the Common Stock of the Company.
(d) "Company" shall mean Alliance Semiconductor Corporation, a
Delaware corporation.
(e) "Compensation" shall mean all regular straight time gross earnings
and commissions, and shall not include payments for overtime, shift premium,
incentive compensation, incentive payments, bonuses and other compensation.
(f) "Continuous Status as an Employee" shall mean the absence of any
interruption or termination of service as an Employee. Continuous Status as an
Employee shall not be considered interrupted in the case of a leave of absence
agreed to in writing by the Company, provided that such leave is for a period of
not more than 90 days or reemployment upon the expiration of such leave is
guaranteed by contract or statute.
(g) "Contributions" shall mean all amounts credited to the account of\
a participant pursuant to the Plan.
(h) "Designated Subsidiaries" shall mean the Subsidiaries which have
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.
(i) "Employee" shall mean any person, including an Officer, who is
customarily employed for at least twenty (20) hours per week and more than five
(5) months in a calendar year by the Company or one of its Designated
Subsidiaries.
(j) "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended.
(k) "Purchase Date" shall mean the last business day of each Purchase
Period of the Plan.
(l) "Offering Date" shall mean the first business day of each
Offering Period of the Plan.
(m) "Offering Period" shall mean a period of twelve (12) months
commencing on February 16 and August 16 of each year, except for the first
Offering Period and except as may be adjusted by the Board pursuant to Section
4(a).
(n) "Officer" shall mean a person who is an officer of the Company
within the meaning of Section 16 of the Exchange Act and the rules and
regulations promulgated thereunder.
(o) "Plan" shall mean this Employee Stock Purchase Plan.
(p) "Purchase Period" shall mean a period of six (6) months within
an Offering Period, except for the first Purchase Period as set forth in Section
4(b) and except as may be adjusted by the Board pursuant to Section 4(b).
(q) "Subsidiary" shall mean a corporation, domestic or foreign, of
which not less than 50% of the voting shares are held by the Company or a
Subsidiary, whether or not such corporation now exists or is hereafter organized
or acquired by the Company or a Subsidiary.
3. ELIGIBILITY.
(a) Any person who is an Employee as of the Offering Date of a given
Offering Period shall be eligible to participate in such Offering Period under
the Plan, subject to the requirements of Section 5(a) and the limitations
imposed by Section 423(b) of the Code.
(b) Any provisions of the Plan to the contrary notwithstanding, no
Employee shall be granted an option under the Plan (i) if, immediately after the
grant, such Employee (or any other person whose stock would be attributed to
such Employee pursuant to Section 424(d) of the Code) would own stock and/or
hold outstanding options to purchase stock possessing five percent (5%) or more
of the total combined voting power or value of all classes of stock of the
Company or of any parent or Subsidiary of the Company, or (ii) if such option
would permit his or her rights to purchase stock under all employee stock
purchase plans (described in Section 423 of the Code) of the Company and its
Subsidiaries to accrue at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) of fair market value of such stock (determined at the time such option
is granted) for each calendar year in which such option is outstanding at any
time.
4. OFFERING PERIODS AND PURCHASE PERIODS.
(a) OFFERING PERIODS. The Plan shall be implemented by a series of
Offering Periods of twelve (12) months' duration, with new Offering Periods
commencing on or about February 16 and August 16 of each year (or at such other
time or times as may be determined by the Board). The first Offering Period
shall commence on October 1, 1996 and continue until August 15, 1997. The Plan
shall continue until terminated in accordance with Section 20 hereof. The Board
shall have the power to change the duration and/or the frequency of Offering
Periods with respect to future offerings provided that it shall to the extent
practicable announce any such change at least fifteen (15) days prior to the
scheduled beginning of the first Offering Period to be affected.
(b) PURCHASE PERIODS. Each Offering Period shall consist of two (2)
consecutive purchase periods of six (6) months duration. The last business day
of each Purchase Period shall be the "Purchase Date" for such Purchase Period. A
Purchase Period commencing on February 16 shall end on the next August 15. A
Purchase Period commencing on August 16 shall end on the next February 15. The
first Purchase Period shall commence on October 1, 1996 and shall end on
February 15, 1997. The Board of Directors of the Company shall have the power
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to change the duration and/or frequency of Purchase Periods with respect to
future Offering Periods provided that it shall to the extent practicable
announce any such change at least fifteen (15) days prior to the scheduled
beginning of the first Offering Period to be affected.
5. PARTICIPATION.
(a) An eligible Employee may become a participant in the Plan by
completing a subscription agreement on the form provided by the Company and
filing it with the Company's payroll office (or following such other procedures
(including electronic procedures) as the Company may from time to time
establish) at least five (5) business days prior to the first business day of
the applicable Offering Date, unless a later time for filing the subscription
agreement is set by the Board (or its designated committee pursuant to Section
14) for all eligible Employees with respect to a given offering. The
subscription agreement shall set forth the percentage of the participant's
Compensation (which shall be not less than one percent (1%) and not more than
ten percent (10%)) to be paid as Contributions pursuant to the Plan.
(b) Payroll deductions shall commence on the first payroll following
the Offering Date and shall end on the last payroll paid on or prior to the last
Purchase Period of the Offering Period to which the subscription agreement is
applicable, unless sooner terminated by the participant as provided in Section
10.
6. METHOD OF PAYMENT OF CONTRIBUTIONS.
(a) The participant shall elect to have payroll deductions made on
each payday during the Offering Period in an amount not less than one percent
(1%) and not more than ten percent (10%) of such participant's Compensation on
each such payday. All payroll deductions made by a participant shall be credited
to his or her account under the Plan. A participant may not make any additional
payments into such account.
(b) A participant may discontinue his or her participation in the Plan
as provided in Section 10, or, on one occasion only during the Offering Period,
may decrease the rate of his or her Contributions during the Offering Period by
completing and filing with the Company a new subscription agreement (or
otherwise complying with procedures (including electronic procedures)
established by the Company from time to time). The change in rate shall be
effective as of the beginning of the next calendar month following the date of
filing of the new subscription agreement, if the agreement is filed at least ten
(10) business days prior to such date and, if not, as of the beginning of the
next succeeding calendar month.
(c) Notwithstanding the foregoing, to the extent necessary to comply
with Section 423(b)(8) of the Code and Section 3(b) herein, a participant's
payroll deductions may be decreased to 0% at such time during any Offering
Period which is scheduled to end during the current calendar year that the
aggregate of all payroll deductions accumulated with respect to such Offering
Period and any other Offering Period ending within the same calendar year equal
$21,250. Payroll deductions shall re-commence at the rate provided in such
participant's subscription agreement at the beginning of the first Offering
Period which is scheduled to end in the following calendar year, unless
terminated by the participant as provided in Section 10.
7. GRANT OF OPTION.
(a) On the Offering Date of each Offering Period, each eligible
Employee participating in such Offering Period shall be granted an option to
purchase on each Purchase Date a number of shares of the Company's Common Stock
determined by dividing such Employee's Contributions accumulated prior to such
Purchase Date and retained in the participant's account as of the Purchase Date
by the lower of (i) eighty-five percent (85%) of the fair market value of a
share of the Company's Common Stock on the Offering Date, or (ii) eighty-five
percent (85%) of the fair market value of a share of the Company's Common Stock
on the Purchase Date; provided, however, that the maximum number of shares an
Employee may purchase during each Offering Period shall be determined at the
Offering Date by dividing $25,000 by the fair market value of a share of the
Company's Common Stock on the Offering Date, and provided further that such
purchase shall be subject to the
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limitations set forth in Sections 3(b) and 13. The fair market value of a share
of the Company's Common Stock shall be determined as provided in Section 7(b).
(b) The option price per share of the shares offered in a given
Offering Period shall be the lower of: (i) 85% of the fair market value of a
share of the Common Stock of the Company on the Offering Date; or (ii) 85% of
the fair market value of a share of the Common Stock of the Company on the
Purchase Date. The fair market value of the Company's Common Stock on a given
date shall be determined by the Board (or its designated committee pursuant to
Section 14) in its discretion based on the closing price of the Common Stock for
such date (or, in the event that the Common Stock is not traded on such date, on
the immediately preceding trading date), as reported by the National Association
of Securities Dealers Automated Quotation (Nasdaq) National Market.
8. EXERCISE OF OPTION. Unless a participant withdraws from the Plan as
provided in Section 10, his or her option for the purchase of shares will be
exercised automatically on each Purchase Date of an Offering Period, and the
maximum number of full shares subject to the option will be purchased at the
applicable option price with the accumulated Contributions in his or her
account. The shares purchased upon exercise of an option hereunder shall be
deemed to be transferred to the participant on the Purchase Date. During his or
her lifetime, a participant's option to purchase shares hereunder is exercisable
only by him or her.
9. DELIVERY. As promptly as practicable after each Purchase Date of each
Offering Period, the Company shall arrange the delivery to each participant, as
appropriate, of a certificate representing the shares purchased upon exercise of
his or her option. Any payroll deductions accumulated in a participant's account
which are not sufficient to purchase a full share shall be retained in the
participant's account for the subsequent Offering Period, subject to earlier
withdrawal by the participant as provided in Section 10 below. Any other amounts
left over in a participant's account after a Purchase Date shall be returned to
the participant.
10. VOLUNTARY WITHDRAWAL; TERMINATION OF EMPLOYMENT.
(a) A participant may withdraw all but not less than all the
Contributions credited to his or her account under the Plan (and not previously
used for the exercise of options pursuant to Section 8) at any time prior to
each Purchase Date by giving written notice to the Company. All of the
participant's Contributions credited to his or her account under the Plan (and
not previously used for the exercise of options pursuant to Section 8) will be
paid to him or her promptly after receipt of his or her notice of withdrawal and
his or her option for the current period will be automatically terminated, and
no further Contributions for the purchase of shares will be made during the
Offering Period.
(b) Upon termination of the participant's Continuous Status as
an Employee prior to the Purchase Date of an Offering Period for any reason,
including retirement or death, the Contributions credited to his or her account
under the Plan (and not previously used for the exercise of options pursuant to
Section 8) will be returned to him or her or, in the case of his or her death,
to the person or persons entitled thereto under Section 15, and his or her
option will be automatically terminated.
(c) In the event an Employee fails to remain in Continuous Status as
an Employee of the Company for at least twenty (20) hours per week during the
Offering Period in which the employee is a participant, he or she will be deemed
to have elected to withdraw from the Plan and the Contributions credited to his
or her account will be returned to him or her and his or her option will be
automatically terminated.
(d) A participant's withdrawal from an Offering Period will not have
any effect upon his or her eligibility to participate in a succeeding offering
or in any similar plan which may hereafter be adopted by the Company.
11. AUTOMATIC WITHDRAWAL. If the fair market value of the shares on the
first Purchase Date of an Offering Period is less than the fair market value of
the shares on the Offering Date for such Offering Period, then every participant
shall automatically (i) be withdrawn from such Offering Period at the close of
such Purchase Date
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and after the acquisition of shares for such Purchase Period, and (ii) be
enrolled in the Offering Period commencing on the first business day subsequent
to such Purchase Period.
12. INTEREST. No interest shall accrue on the Contributions of a
participant in the Plan.
13. STOCK.
(a) The maximum number of shares of the Company's Common Stock which
shall be made available for sale under the Plan shall be one million (1,000,000)
shares, subject to adjustment upon changes in capitalization of the Company as
provided in Section 19. If the total number of shares which would otherwise be
subject to options granted pursuant to Section 7(a) on the Offering Date of an
Offering Period exceeds the number of shares then available under the Plan
(after deduction of all shares for which options have been exercised or are then
outstanding), the Company shall make a pro rata allocation of the shares
remaining available for option grant in as uniform a manner as shall be
practicable and as it shall determine to be equitable. In such event, the
Company shall give written notice of such reduction of the number of shares
subject to the option to each Employee affected thereby and shall similarly
reduce the rate of Contributions, if necessary.
(b) The participant will have no interest or voting right in shares
covered by his or her option until such option has been exercised.
(c) Shares to be delivered to a participant under the Plan will be
registered in the name of the participant or, if requested by the participant,
in the name of the participant and his or her spouse.
14. ADMINISTRATION. The Board, or a committee named by the Board, shall
supervise and administer the Plan and shall have full power to adopt, amend and
rescind any rules deemed desirable and appropriate for the administration of the
Plan and not inconsistent with the Plan, to construe and interpret the Plan, and
to make all other determinations necessary or advisable for the administration
of the Plan. The composition of the committee shall be in accordance with
applicable laws and any applicable requirements of Nasdaq or any stock exchange
upon which the Company's Common Stock is listed or approved for listing. The
Board's (or its committee's) decisions, interpretations, findings and
determinations shall be final, binding and conclusive on all participants.
15. DESIGNATION OF BENEFICIARY(IES).
(a) A participant may file a written designation of a beneficiary or
beneficiaries who is/are to receive any shares and cash, if any, from the
participant's account under the Plan in the event of such participant's death
subsequent to the end of a Purchase Period but prior to delivery to him or her
of such shares and cash. In addition, a participant may file a written
designation of a beneficiary or beneficiaries who is/are to receive any cash
from the participant's account under the Plan in the event of such participant's
death prior to the Purchase Date of an Offering Period. If a participant is
married and the designated beneficiary(ies) is/are not the spouse, written
consent from the spouse shall be required for such designation to be effective.
(b) Such designation of beneficiary(ies) may be changed by the
participant (together with his or her spouse, if required above) at any time by
written notice. In the event of the death of a participant and in the absence of
a beneficiary or beneficiaries validly designated under the Plan who is living
at the time of such participant's death, the Company shall deliver such shares
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such shares and/or
cash to the spouse or to any one or more dependents or relatives of the
participant, or if no spouse, dependent or relative is known to the Company,
then to such other person as the Company may designate.
16. TRANSFERABILITY. Neither Contributions credited to a participant's
account nor any rights with regard to the exercise of an option or to receive
shares under the Plan may be assigned, transferred, pledged or otherwise
disposed of in any way (other than by will, the laws of descent and
distribution, or as provided in
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Section 15) by the participant. Any such attempt at assignment, transfer, pledge
or other disposition shall be without effect, except that the Company may treat
such act as an election to withdraw funds in accordance with Section 10.
17. USE OF FUNDS. All Contributions received or held by the Company under
the Plan may be used by the Company for any corporate purpose, and the Company
shall not be obligated to segregate such Contributions.
18. REPORTS. Individual accounts will be maintained for each participant
in the Plan. Statements of account will be given to participating Employees
promptly following the Purchase Date, which statements will set forth the
amounts of Contributions, the per share purchase price, the number of shares
purchased and the remaining cash balance, if any.
19. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION; CORPORATE TRANSACTIONS.
(a) ADJUSTMENT. Subject to any required action by the stockholders
of the Company, (1) the number of shares of Common Stock covered by each option
under the Plan which has not yet been exercised, (2) the price per share of
Common Stock covered by each option under the Plan which has not yet been
exercised, and (3) the number of shares of Common Stock which have been
authorized for issuance under the Plan but have not yet been placed under option
(collectively, the "Reserves"), each shall be proportionately adjusted for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Common Stock, or any other increase or decrease in the
number of shares of Common Stock effected without receipt of consideration by
the Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issue by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to (x) the number of
shares of Common Stock covered by each option under the Plan which has not yet
been exercised, (y) the price per share of Common Stock covered by each option
under the Plan which has not yet been exercised, or (z) the Reserves.
(b) CORPORATE TRANSACTIONS. In the event of the proposed dissolution
or liquidation of the Company, the Offering Period will terminate immediately
prior to the consummation of such proposed action, unless otherwise provided by
the Board. In the event of a proposed sale of all or substantially all of the
assets of the Company, or the merger of the Company with or into another
corporation, each option under the Plan shall be assumed or an equivalent option
shall be substituted by such successor corporation or a parent or subsidiary of
such successor corporation, unless the Board determines, in the exercise of its
sole discretion and in lieu of such assumption or substitution, to shorten the
Offering Period then in progress by setting a new Purchase Date (the "New
Purchase Date"). If the Board shortens the Offering Period then in progress in
lieu of assumption or substitution in the event of a merger or sale of assets,
the Board shall notify each participant in writing, at least ten (10) days prior
to the New Purchase Date, that the Purchase Date for his or her option has been
changed to the New Purchase Date and that his or her option will be exercised
automatically on the New Purchase Date, unless prior to such date he or she has
withdrawn from the Offering Period as provided in Section 10. For purposes of
this paragraph, an option granted under the Plan shall be deemed to be assumed
if, following the sale of assets or merger, the option confers the right to
purchase, for each share of option stock subject to the option immediately prior
to the sale of assets or merger, the consideration (whether stock, cash or other
securities or property) received in the sale of assets or merger by holders of
Common Stock for each share of Common Stock held on the effective date of the
transaction (and if such holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding
shares of Common Stock); provided, however, that if such consideration received
in the sale of assets or merger was not solely common stock of the successor
corporation or its parent (as defined in Section 424(e) of the Code), the Board
may, with the consent of the successor corporation and the participant, provide
for the consideration to be received upon exercise of the option to be solely
common stock of the successor corporation or its parent equal in fair market
value to the per share consideration received by holders of Common Stock in the
sale of assets or merger.
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The Board may, if it so determines in the exercise of its sole discretion,
also make provision for adjusting the Reserves, as well as the number of shares
of Common Stock covered by each option under the Plan which has not yet been
exercised and the price per share of Common Stock covered by each option under
the Plan which has not yet been exercised, in the event that the Company effects
one or more reorganizations, recapitalizations, rights offerings or other
increases or reductions of shares of its outstanding Common Stock, and in the
event of the Company being consolidated with or merged into any other
corporation.
20. AMENDMENT OR TERMINATION.
(a) The Board may at any time and for any reason terminate or amend
the Plan. Except as provided in Section 19 and this Section 20, no such
termination or amendment of the Plan may affect options previously granted,
provided that the Plan or an Offering Period may be terminated by the Board on a
Purchase Date or by the Board's setting a new Purchase Date with respect to an
Offering Period then in progress if the Board determines that termination of the
Plan and/or the Offering Period is in the best interests of the Company and its
stockholders, or if continuation of the Plan and/or the Offering Period would
cause the Company to incur adverse accounting charges as a result of a change
after the effective date of the Plan in the generally accepted accounting rules
applicable to the Plan. In addition, to the extent necessary to comply with the
Code, any applicable rules of Nasdaq or any stock exchange upon which the
Company's Common Stock may be listed or approved for listing, or any other
applicable law, rule or regulation, the Company shall obtain stockholder
approval in such a manner and to such a degree as so required.
(b) Without stockholder consent and without regard to whether any
participant rights may be considered to have been adversely affected, the Board
(or its committee) shall be entitled to change the Offering Periods and Purchase
Periods, limit the frequency and/or number of changes in the amount withheld
during an Offering Period, establish the exchange ratio applicable to amounts
withheld in a currency other than U.S. dollars, permit payroll withholding in
excess of the amount designated by a participant in order to adjust for delays
or mistakes in the Company's processing of properly completed withholding
elections, establish reasonable waiting and adjustment periods and/or accounting
and crediting procedures to ensure that amounts applied toward the purchase of
Common Stock for each participant properly correspond with amounts withheld from
the participant's Compensation, and establish such other limitations or
procedures as the Board (or its committee) determines in its sole discretion
advisable which are consistent with the Plan.
21. NOTICES. All notices or other communications by a participant or by
his or her spouse to the Company under or in connection with the Plan shall be
deemed to have been duly given when received in the form specified by the
Company at the location, or by the person, designated by the Company for the
receipt thereof.
22. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be issued with
respect to an option unless the exercise of such option and the issuance and
delivery of such shares pursuant thereto shall comply with all applicable
provisions of law, domestic or foreign, including, without limitation, the
Securities Act of 1933, as amended, the Exchange Act, the rules and regulations
promulgated under each of the foregoing, and the requirements of any stock
exchange upon which the shares may then be listed, and shall be further subject
to the approval of counsel for the Company with respect to such compliance.
As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such
exercise that the shares are being purchased only for investment and without any
present intention to sell or distribute such shares if, in the opinion of
counsel for the Company, such a representation is required by any of the
aforementioned applicable provisions of law.
23. TERM OF PLAN; EFFECTIVE DATE. The Plan shall become effective upon the
earlier to occur of its adoption by the Board of Directors or its approval by
the stockholders of the Company. It shall continue in effect for a term of
twenty (20) years unless sooner terminated under Section 20.
24. ADDITIONAL RESTRICTIONS OF RULE 16B-3. The terms and conditions of
options granted hereunder to, and the purchase of shares by, persons subject to
Section 16 of the Exchange Act shall comply with the applicable
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provisions of Rule 16b-3 promulgated thereunder (or any successor provision
thereto). This Plan shall be deemed to contain, and such options shall contain,
and the shares issued upon exercise thereof shall be subject to, such additional
conditions and restrictions as may be required by Rule 16b-3 to qualify for the
maximum exemption from Section 16 of the Exchange Act with respect to Plan
transactions.
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[ALLIANCE LOGO]
ALLIANCE SEMICONDUCTOR CORPORATION
1996 EMPLOYEE STOCK PURCHASE PLAN
SUBSCRIPTION AGREEMENT
New Election ______
Change of Election ______
1. I, ________________________, hereby elect to participate in the 1996
Employee Stock Purchase Plan (the "Plan") of Alliance Semiconductor Corporation
(the "Company") for the Offering Period ______________, 20__ to _______________,
20__, and subscribe to purchase shares of the Company's Common Stock in
accordance with this Subscription Agreement and the Plan.
2. I elect to have Contributions in the amount of ____% of my
Compensation, as those terms are defined in the Plan, applied to this purchase.
I understand that this amount must not be less than one per cent (1% ) and not
more than ten per cent (10%) of my Compensation during the Offering Period.
(Please note that no fractional percentages are permitted).
3. I hereby authorize payroll deductions from each paycheck during the
Offering Period at the rate stated in Paragraph 2 of this Subscription
Agreement. I understand that all payroll deductions made by me shall be credited
to my account under the Plan and that I may not make any additional payments
into such account. I understand that all payments made by me shall be
accumulated for the purchase of shares of Common Stock at the applicable
purchase price determined in accordance with the Plan. I further understand
that, except as otherwise set forth in the Plan, shares will be purchased for me
automatically on the Purchase Date of each Offering Period unless I otherwise
withdraw from the Plan by giving written notice to the Company for such purpose.
I further understand that no interest shall accrue or be paid on the amounts in
my account under the Plan.
4. I understand that I may discontinue at any time prior to a Purchase
Date my participation in the Plan as provided in Section 10 of the Plan. I also
understand that I can decrease the rate of my Contributions on one occasion only
during any Offering Period by completing and filing a new Subscription Agreement
with such decrease taking effect as of the beginning of the calendar month
following the date of filing of the new Subscription Agreement, if filed at
least ten (10) business days prior to the beginning of such month. Further, I
may change the rate of deductions for future Offering Periods by filing a new
Subscription Agreement, and any such change will be effective as of the
beginning of the next Offering Period. In addition, I acknowledge that, unless I
discontinue my participation in the Plan as provided in Section 10 of the Plan,
my election will continue to be effective for each successive Offering Period.
5. I have received a copy of the Company's most recent description of the
Plan and a copy of the complete "Alliance Semiconductor Corporation 1996
Employee Stock Purchase Plan." I understand that my participation in the Plan is
in all respects subject to the terms of the Plan.
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6. Shares purchased for me under the Plan should be issued in the name(s)
of (name of employee or employee and spouse only):
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7. In the event of my death, I hereby designate the following as my
beneficiary(ies) to receive all payments and shares due to me under the Plan:
NAME: (Please print) ------------------------------------
(First) (Middle) (Last)
- -------------------- -------------------------------------
(Relationship) (Address)
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8. I understand that if I dispose of any shares received by me pursuant to
the Plan within two (2) years after the Offering Date (the first day of the
Offering Period during which I purchased such shares) or within one (1) year
after the Purchase Date, I will be treated for federal income tax purposes as
having received ordinary compensation income at the time of such disposition in
an amount equal to the excess of the fair market value of the shares on the
Purchase Date over the price which I paid for the shares, regardless of whether
I disposed of the shares at a price less than their fair market value at the
Purchase Date. The remainder of the gain or loss, if any, recognized on such
disposition will be treated as capital gain or loss.
9. If I dispose of such shares at any time after expiration of both the
2-year and 1-year holding periods referenced in Paragraph 8 above, I understand
that I will be treated for federal income tax purposes as having received
compensation income only to the extent of an amount equal to the lesser of (a)
the excess of the fair market value of the shares at the time of such
disposition over the purchase price which I paid for the shares under the
option, or (b) 15% of the fair market value of the shares on the Offering Date.
The remainder of the gain or loss, if any, recognized on such disposition will
be treated as capital gain or loss.
10. I understand that if I am subject to Section 16(b) of the Exchange
Act, the Purchase Date for purpose of calculating my compensation income and
beginning of capital gain holding period may be deferred for up to six months
under certain circumstances. I understand that I should consult with my personal
legal and tax advisors prior to buying or selling shares under the Plan.
11. I hereby agree to notify the Company in writing within thirty (30)
days after the date of any disposition of Common Stock I receive pursuant to the
Plan, and I will make adequate provision for federal, state or other tax
withholding obligations, if any, which arise upon my purchase or disposition of
the Common Stock. The Company may, but will not be obligated to, withhold from
my compensation the amount necessary to meet any applicable withholding
obligation including any withholding necessary to make available to the Company
any tax deductions or benefits attributable to the sale or early disposition of
Common Stock by me.
12. I understand that the above tax summary is only a summary and is
subject to change. I further understand that I should consult a tax advisor
concerning the tax implications of the purchase and sale of stock under the
Plan.
13. I hereby agree to be bound by the terms of the Plan. The effectiveness
of this Subscription Agreement is dependent upon my eligibility to participate
in the Plan.
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14. Restriction on Exercise. This option to purchase Common Stock pursuant
to the Plan may not be exercised unless such exercise is in compliance with the
Securities Act of 1933 and all applicable state securities laws as they are in
effect on the date of exercise, and the requirements of any stock exchange or
national market system on which the Company's Common Stock may be listed at the
time of exercise. I understand that the Company is under no obligation to
register, qualify or list the Common Stock reserved for issuance under the Plan
with the Securities and Exchange Commission ("SEC"), any state securities
commission or any stock exchange to effect such compliance and that the Company
will have no liability or obligation arising as a result of its failure to issue
shares of Common Stock under the Plan unless it can do so in a manner that
complies with applicable laws, rules and regulations.
15. No Right to Employment. Nothing in the Plan or in this Subscription
Agreement shall confer on me any right to continue in the employ of, or other
relationship with, the Company or with any parent, subsidiary or affiliate of
the Company or limit in any way the right of the Company or of any parent,
subsidiary or affiliate of the Company to terminate my employment or other
relationship at any time, with or without cause.
16. Interpretation. Any dispute regarding the interpretation of this
Subscription Agreement shall be submitted by me or the Company to the Company's
Board of Directors (or the committee named by the board to administer the Plan)
(the "Committee") for review. The resolution of such a dispute by the Board or
Committee shall be final and binding on the Company and on me.
17. Privileges of Stock Ownership. I understand that I shall not have any
of the rights of a stockholder with respect to any Common Stock pursuant to the
Plan until I exercise the option pursuant to Section 8 of the Plan and pay the
exercise price thereof.
18. Successors and Assigns. The Company may assign any of its rights under
this Subscription Agreement. This Subscription Agreement shall be binding upon
and inure to the benefit of the successors and assigns of the Company. Subject
to the restrictions on transfer set forth herein and in the Plan, this
Subscription Agreement shall be binding upon me and my heirs, executors,
administrators, legal representatives, successors and assigns.
19. Entire Agreement. The Plan is incorporated herein by this reference.
This Subscription Agreement and the Plan (the "Agreements") constitute the
entire agreement of the Company and myself and supersede all prior undertakings
and agreements, oral or written, with respect to the subject matter hereof. The
Agreements may not be contradicted by evidence of any prior or contemporaneous
agreement. To the extent that the policies and procedures of the Company apply
to me and are inconsistent with the terms of the Agreements, the provisions of
the Agreements shall control.
20. Amendments; Waivers. This Subscription Agreement may not be modified,
amended, or terminated except by an instrument in writing, signed by the Company
and myself. No failure to exercise and no delay in exercising any right, remedy,
or power under this Subscription Agreement shall operate as a waiver thereof,
nor shall any single or partial exercise of any right, remedy, or power under
this Subscription Agreement preclude any other or further exercise thereof, or
the exercise of any other right, remedy, or power provided herein or by law or
in equity.
21. Severability; Enforcement. If any provision of this Subscription
Agreement is held invalid, illegal or unenforceable in any respect, (a) such
provision shall be interpreted in such a manner as to preserve, to the maximum
extent possible, the intent of the parties, (b) the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or
impaired hereby, and (c) such decision shall not affect the validity, legality
or enforceability of such provision under other circumstances.
22. Attorneys' Fees and Costs. In any legal action, arbitration, or other
proceeding brought to enforce or interpret the terms of this Subscription
Agreement, the prevailing party shall be entitled to recover reasonable
attorneys' fees and costs.
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23. Governing Law. This Subscription Agreement shall be governed by and
construed in accordance with the law of the State of California, without
reference to that body of law concerning choice of law or conflicts of law,
except that the General Corporation Law of Delaware ("GCLD") shall apply to all
matters governed by the GCLD, including without limitation matters concerning
the validity of grants of stock options, issuances of shares of Common Stock and
actions of the Company's board of directors or any committee thereof.
24. Action by the Company. All actions required or permitted to be taken
under this Subscription Agreement by the Company, including without limitation,
exercise of discretion, consents, waivers, and amendments to this Subscription
Agreement, shall be made and authorized only by the President or by his or her
representative specifically authorized to fulfill these obligations under this
Subscription Agreement.
25. Notices. All notices required or permitted by this Subscription
Agreement must be in writing and shall be deemed to have been duly given if
delivered by hand; mailed, postage prepaid, by certified or registered mail,
return receipt requested; or deposited with any return receipt express courier,
prepaid; and addressed to me at the address listed above or to the Company at:
Alliance Semiconductor Corporation, 2575 Augustine, Santa Clara, California
95054, Attn: General Counsel. I shall timely notify the Company in writing of
any change in my address. Notice of change of address shall be effective only
when done in accordance with this Paragraph 25. All notices shall be deemed to
have been given or delivered upon: personal
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delivery; three days after deposit in the United States mail by certified or
registered mail, return receipt requested; or one business day after deposit
with any return receipt express courier (prepaid).
ACCEPTANCE
I hereby acknowledge: I have received a copy of the Plan and Subscription
Agreement; I have had the opportunity to consult legal counsel in regard
to the Plan and Subscription Agreement, and have availed myself of that
opportunity to the extent I wish to do so; I have read and understand the
Plan and Subscription Agreement, and am fully aware of the legal effect of
each; I have entered into this Subscription Agreement freely and
voluntarily and based on my own judgment and not on any representations or
promises other than those contained in the Plan and Subscription
Agreement; and I have entered into this Subscription Agreement subject to
all the terms and conditions of the Plan and this Subscription Agreement.
I acknowledge that there may be adverse tax consequences upon exercise of
any option exercised pursuant to the Plan and Subscription Agreement, or
pursuant to the disposition of any shares acquired thereby, and that I
should consult a tax adviser prior to any such exercise or disposition.
SIGNATURE:
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SOCIAL SECURITY #:
------------------------------------------
DATE:
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SPOUSE'S SIGNATURE (necessary
if beneficiary is not spouse):
- --------------------------------------------------------------
(Signature)
- --------------------------------------------------------------
(Print name)
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[ALLIANCE LOGO]
ALLIANCE SEMICONDUCTOR CORPORATION
1996 EMPLOYEE STOCK PURCHASE PLAN
NOTICE OF WITHDRAWAL
I, __________________________, hereby elect to withdraw my participation
in the 1996 Employee Stock Purchase Plan (the "Plan") of Alliance Semiconductor
Corporation (the "Company") for the Offering Period commencing
______________________. This withdrawal covers all Contributions credited to my
account (and not already used for the purchase of options pursuant to the Plan)
and is effective on the date designated below.
I understand that all Contributions credited to my account (and not
already used for the purchase of options pursuant to the Plan) will be paid to
me within ten (10) business days of receipt by the Company of this Notice of
Withdrawal and that my option for the current period will automatically
terminate, and that no further Contributions for the purchase of shares can be
made by me during the Offering Period.
I further understand and agree that I shall be eligible to participate in
succeeding offering periods only by delivering to the Company a new Subscription
Agreement.
Dated:__________________ ___________________________________
Signature of Employee
___________________________________
Social Security Number