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PANSTERA, INC.
SHAREHOLDERS AGREEMENT

    This Shareholders Agreement (the "Agreement") is made and entered into as of
January 15, 2001, among Pixelworks, Inc., an Oregon corporation ("Acquiror"),
Panstera, Inc., a California corporation ("Target") and each of the shareholders
of Target signatories hereto (each a "Shareholder" and collectively, the
"Shareholders").

    This Agreement is entered into in connection with that certain Agreement and
Plan of Merger dated as of December 13, 2000 (as the same may be amended or
modified, the "Merger Agreement") by and among Acquiror, Panther
Acquisition Inc., Target and the Shareholders. The Merger Agreement provides for
the merger of Panther Acquisition Inc. with and into Target (the "Merger") in a
transaction in which the issued and outstanding shares of capital stock of
Target (the "Target Stock") will be converted into the right to receive shares
of Common Stock, par value $.001, of Acquiror (the "Acquiror Stock") as provided
by, and on the terms and conditions set forth in, the Merger Agreement.
Capitalized terms used herein but not defined herein shall have their defined
meanings as set forth in the Merger Agreement.

    1.  Reliance Upon Representations, Warranties and Covenants.  Each
Shareholder has been informed that the treatment of the Merger as a tax-free
reorganization for federal income tax purposes requires, among other factors,
the accuracy of the representations contained herein. Each Shareholder
understands that the representations and warranties and covenants of such
Shareholder set forth herein will be relied upon by Acquiror, Target, their
respective counsel and accounting firms and other shareholders of Target.

    2.  Representations, Warranties and Covenants of Each Shareholder.  Each
Shareholder represents, warrants and covenants as follows:

    (a) Each Shareholder has full power and authority to execute the Merger
Agreement, if applicable, and this Agreement, to make the representations and
warranties and covenants herein contained and to perform such Shareholder's
obligations hereunder.

    (b) Appendix A attached hereto sets forth all shares of Target Stock owned
by each Shareholder, including all Target Stock as to which such Shareholder has
sole or shared voting or investment power and all rights, options and warrants
to acquire Target Stock (provided, however, that if any Shareholder who hold
Series A Preferred Stock or Series B Preferred Stock of Target elects before the
Effective Time to convert the same into Common Stock of Target by delivery to
Target before the Effective Time of an executed Notice of Voluntary Conversion
and Waiver of Liquidation Preference and all certificates and documents required
in connection therewith, Appendix A shall be deemed to be modified to reflect
such Shareholder as the owner of an equal number of shares of Common Stock
issued to such Shareholder before the Effective Time in conversion of such
Shareholder's Preferred Stock). Except as contemplated by the Merger Agreement,
no other person or entity not a signatory to this Agreement has a beneficial
interest in or right to acquire all or any portion of the shares of Target Stock
set forth in Appendix A).

    (c) Each Shareholder is acquiring the Acquiror Stock solely for the
Shareholder's own account, for investment and not with a view to any resale or
other distribution thereof in violation of the Securities Act.

    (d) Each Shareholder acknowledges and understands that the terms of the
Merger have not been reviewed by the SEC or by any state securities authorities,
that the Acquiror Stock has not been registered under the Securities Act, any
state or foreign jurisdiction securities law or registered or qualified under
any other securities laws, based on, among other factors, that no distribution
or public offering has been effected and the Acquiror Stock will be issued by
Acquiror in connection with a transaction that does not involve any public
offering within the meaning of Section 4(2) of the Securities Act. Each
Shareholder understands that Acquiror is relying on such Shareholder's
representations as set forth herein for purposes of claiming such exemption,
including the bona fide nature of such Shareholder's investment intent as
expressed above. Each

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Shareholder acknowledges that, except as is set forth in Section 6 of this
Agreement, Acquiror is under no obligation to register the Acquiror Stock under
the Securities Act. As a result, unless an exemption from such registration is
then available, such Shareholder must hold the Acquiror Stock until such time as
Acquiror has registered the Acquiror Stock for resale under the Securities Act
and qualified the Acquiror Stock for resale under applicable state or foreign
jurisdiction securities laws.

    (e) Each Shareholder is familiar with Regulation D promulgated under the
Securities Act and is an "accredited investor" as defined in Rule 501(a) of such
Regulation D or such Shareholder, either alone or together with such
Shareholder's representative, has such knowledge and experience in financial,
investment and business matters that the Shareholder is capable of evaluating
the merits and risks of an investment in the Acquiror Stock. Each Shareholder
acknowledges that the Acquiror Stock are volatile securities that involve a high
degree of risk. Each Shareholder represents that it is capable of determining
what documents and information are necessary to evaluate the Merger and/or an
investment in the Acquiror Stock, and has the capacity to protect its own
interests in connection with the Merger and the acquisition of the Acquiror
Stock.

    (f)  Each Shareholder represents that its financial condition is such that
the Shareholder is able to bear any and all economic risks associated with
investment in the Acquiror Stock, including the risk of holding the Acquiror
Stock for an indefinite period of time. Each Shareholder represents that it can
also afford a complete loss of its investment in the Acquiror Stock, and has
adequate means of providing for the Shareholder's current needs and possible
personal contingencies; provided, however, that nothing contained herein shall
relieve Acquiror from strict adherence to the terms of Section 6.

    (g) Until such time as the Acquiror Stock has been registered for resale,
each Shareholder understands and acknowledges that each stock certificate
representing the Acquiror Stock shall bear a legend in, or substantially in, the
following form:

"THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE RESTRICTIONS
CONTAINED IN A SHAREHOLDERS AGREEMENT AND HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY STATE SECURITIES LAWS. NEITHER
SUCH SHARES NOR ANY PORTION THEREOF OR INTEREST THEREIN MAY BE SOLD, ASSIGNED,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF (I) EXCEPT AS SET FORTH IN THE
SHAREHOLDERS AGREEMENT AND (II) UNLESS THE SAME ARE REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND APPLICABLE STATE SECURITIES LAWS OR UNLESS AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND THE CORPORATION SHALL HAVE
RECEIVED EVIDENCE OF SUCH EXEMPTION REASONABLY SATISFACTORY TO THE CORPORATION
(WHICH MAY INCLUDE, AMONG OTHER THINGS, AN OPINION OF COUNSEL SATISFACTORY TO
THE CORPORATION)."

    (h) Each Shareholder understands that Acquiror may maintain a "stop transfer
order" against the Acquiror Stock for the purpose of ensuring compliance with
applicable securities laws. Acquiror shall not be required (a) to transfer or
have transferred on its books any Acquiror Stock that has been sold or otherwise
transferred in violation of any of the provisions of this Agreement or (b) to
treat as an owner of such Acquiror Stock or to accord the right to vote or pay
dividends to any purchaser or other transferee to whom such Acquiror Stock shall
have been so transferred in violation of any provision of this Agreement.
Acquiror agrees that such stop transfer instructions and legends will be
promptly removed and transfers of Acquiror Common Stock will be processed if the
provisions of this Agreement and the Securities Act are complied with.

    (i)  Each Shareholder has received a copy of the Panstera, Inc. Information
Statement dated January  , 2001, including copies of Acquiror's Registration
Statement on Form S-1 with filing

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date of February 25, 2000, Acquiror's Prospectus on Form 424B4 filed on May 19,
2000 and Acquiror's Quarterly Reports on Form 10-Q for the quarters ending
June 30, 2000 and September 30, 2000 (collectively, the "Disclosure Materials").
Each Shareholder acknowledges receipt of the Notice of Special Meeting of
Shareholders of Target and waives any other right to notice in connection with
the proposed Merger or the other transactions contemplated by the Merger
Agreement. The Shareholder, either alone or together with the Shareholder's
representative, has made such further investigation as the Shareholder deems
appropriate as to, and is fully familiar with, and knowledgeable regarding, the
financial condition, business affairs and prospects of Acquiror. The Shareholder
has been given the opportunity to ask questions of, and receive answers from,
the principal officers of Acquiror concerning the business and financial affairs
of Acquiror, and has had further opportunity to obtain any additional
information necessary to verify the accuracy of the foregoing information. To
the extent any Shareholder has not sought information regarding any particular
matter, the Shareholder represents that Shareholder had no interest in doing so
and that such matters are not material to the Shareholder in connection with
this investment.

    3.  Negative Covenants of Shareholder.  

    (a) Each Shareholder covenants and agrees that it will not sell, transfer,
exchange, pledge, or otherwise dispose of, or make any offer or agreement
relating to any of the foregoing with respect to, any and all shares and other
securities of Acquiror (collectively referred to as "Restricted Securities"), or
any option, right or other interest with respect to any Restricted Securities,
unless (i) such transaction is permitted pursuant to Rule 144 under the
Securities Act, (ii) counsel representing such Shareholder, which counsel is
reasonably satisfactory to Acquiror, shall have advised Acquiror in a written
opinion letter satisfactory to Acquiror and Acquiror's legal counsel, and upon
which Acquiror and its legal counsel may rely, that no registration under the
Securities Act would be required in connection with the proposed sale, transfer
or other disposition, (iii) a registration statement under the Securities Act
covering the Acquiror Stock proposed to be sold, transferred or otherwise
disposed of, describing the manner and terms of the proposed sale, transfer or
other disposition, and containing a current prospectus, shall have been filed
with the SEC and made effective under the Securities Act, or (iv) an authorized
representative of the SEC shall have rendered written advice to such Shareholder
(sought by such Shareholder or counsel to such Shareholder, with a copy thereof
and all other related communications delivered to Acquiror) to the effect that
the SEC would take no action, or that the staff of the SEC would not recommend
that the SEC take action, with respect to the proposed disposition if
consummated. In addition to, and without limiting the foregoing, each
Shareholder covenants and agrees that it shall not, directly or indirectly,
offer, pledge, sell, contract to sell, sell any option or contract to purchase,
grant any option, right, or warrant to purchase, lend, or otherwise transfer or
dispose of, any Restricted Securities or enter into any swap or other
arrangement that transfers to any other person, in whole or in part, any of the
economic consequences of ownership of such Restricted Securities; provided,
however, that such holders of Restricted Securities may (i) from and after the
Registration Effective Date (defined below), transfer, sell, or otherwise
dispose of up to 25% of the Restricted Securities received pursuant to the terms
of the Merger Agreement; (ii) from and after the 60th day after the Registration
Effective Date, transfer, sell, or otherwise dispose of up to 50% of the
Restricted Securities received pursuant to the terms of the Merger Agreement;
(iii) from and after the 120th day after the Registration Effective Date,
transfer, sell or otherwise dispose of up to 75% of the Restricted Securities
received pursuant to the terms of the Merger Agreement; and (iv) from and after
the 180th day after the Registration Effective Date, transfer, sell, or
otherwise dispose of all the Restricted Securities received pursuant to the
terms of the Merger Agreement.

    (b) Each Shareholder represents and warrants that it has no plan or
intention to sell, exchange or otherwise dispose of shares of Acquiror Stock
received in connection with the Merger.

    4.  Rule 144.  From and after the Effective Time of the Merger and for so
long as is necessary in order to permit each Shareholder to sell the Acquiror
Stock held by it pursuant to Rule 144 under the

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Securities Act, Acquiror will file on a timely basis all reports required to be
filed by it pursuant to Section 13 of the Exchange Act referred to in
Paragraph (c)(1) of Rule 144 under the Securities Act, in order to permit each
Shareholder to sell the Acquiror Stock held by it pursuant to the terms and
conditions of Rule 144. Each Shareholder understands that, except as provided in
this Section 4 and in Section 6 of this Agreement, Acquiror is under no
obligation to register the sale, transfer or other disposition of any Restricted
Securities by or on behalf of any Shareholder or to take any other action
necessary in order to make compliance with an exemption from registration
available.

    5.  Restrictions on Resales.  Each Shareholder agrees and acknowledges that,
in addition to the restrictions imposed under Sections 3 and 6(d) of this
Agreement, the provisions of the Securities Act prohibit the public resale of
Restricted Securities (except in a transaction registered under the Securities
Act) until such time as such Shareholder has beneficially owned, within the
meaning of SEC Rule 144(d), the Restricted Securities for a period of at least
one (1) year after the date of the Merger. Each Shareholder acknowledges that
such Shareholder is familiar with Rule 144 and agrees to comply with the
provisions of such rule as applicable to the Restricted Securities.

    6.  Registration of Shares Issued in the Merger.  

    (j)  Registrable Shares.  For purposes of this Agreement, "REGISTRABLE
SHARES" shall mean the shares of Acquiror Common Stock issued in the Merger to
shareholders of Target (collectively, the "HOLDERS"); provided, however, that
Registrable Shares shall not include shares of Acquiror Common Stock issuable
upon exercise of Target Options. Notwithstanding the foregoing, a distribution
of shares of Acquiror Common Stock issued in the Merger without additional
consideration, to underlying beneficial owners (such as the general and limited
partners, shareholders or trust beneficiaries of a Holder) shall not be deemed
such a sale or transfer for purposes of this Section 6 and such underlying
beneficial owners shall be entitled to the same rights under this Section 6 as
the initial Holder from which the Registrable Shares were received and shall be
deemed a Holder for the purposes of this Section 6.

    (k)  Required Registration.  Acquiror shall prepare and file with the
Commission a shelf registration statement on Form S-3 (or such successor or
other appropriate form) under the Securities Act with respect to the Registrable
Shares (the "REGISTRATION STATEMENT") and will effect all such registrations,
qualifications and compliances (including, without limitation, obtaining
appropriate qualifications under applicable state securities or "blue sky" laws
and compliance with any other applicable governmental requirements or
regulations) as any selling Holder may reasonably request and that would permit
or facilitate the sale of Registrable Shares (provided however that Acquiror
shall not be required in connection therewith to qualify to do business or to
file a general consent to service of process in any such state or jurisdiction).
The Registration Statement shall be filed with the Commission not later than
ninety (90) days following the date the Acquiror becomes eligible to file a
registration statement on Form S-3 with the Commission. Acquiror will maintain
the effectiveness of the Registration Statement and other applicable
registrations, qualifications and compliances up to one year from the Effective
Date (the "REGISTRATION EFFECTIVE PERIOD"). Following the date the Registration
Statement is first declared effective (the "Registration Effective Date"), the
Holders will be permitted (subject in all cases to the provisions of paragraphs
(c) and (d) of this Section 6) to offer and sell Registrable Shares during the
Registration Effective Period in the manner described in the Registration
Statement provided that the Registration Statement remains effective and has not
been suspended.

    (l)  Suspension Right.  Notwithstanding any other provision of this
Section 6, Acquiror shall have the right at any time to require that all Holders
suspend further open market offers and sales of Registrable Shares whenever, and
for so long as, in the reasonable judgment of Acquiror after consultation with
counsel, the use of the Registration Statement and the prospectus related
thereto must be suspended due to the happening of any event as a result of which
the prospectus included in the Registration Statement, as then in effect,
includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements

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therein not misleading in the light of the circumstances then existing (the
"SUSPENSION RIGHT"). In the event Acquiror exercises the Suspension Right, such
suspension will continue for the period of time reasonably necessary for
disclosure to occur at a time that is not detrimental to Acquiror and its
shareholders or, if earlier, until such time as the information or event is no
longer material, each as determined in good faith by Acquiror after consultation
with counsel. Notwithstanding the foregoing, Acquiror shall not impose the
Suspension Right at any time for more than thirty (30) consecutive days.
Acquiror will promptly give the Holders written notice of any such suspension
and will use all reasonable efforts to minimize the length of the suspension.
The Registration Effective Period shall be extended by a period of time equal to
the duration of any period during which the Suspension Right is imposed.

    (d)  Resale Restriction.  No holder of Registrable Shares shall, directly or
indirectly, offer, pledge, sell, contract to sell, sell any option or contract
to purchase, grant any option, right, or warrant to purchase, lend, or otherwise
transfer or dispose of, any Registrable Shares or enter into any swap or other
arrangement that transfers to any other person, in whole or in part, any of the
economic consequences of ownership of such Registrable Shares; provided,
however, that such holders of Registrable Shares may (i) from and after the date
such Registration Statement becomes effective (the "Registration Effective
Date"), transfer, sell, or otherwise dispose of up to 25% of the Registrable
Shares received pursuant to the terms of the Merger Agreement; (ii) from and
after the 60th day after the Registration Effective Date, transfer, sell, or
otherwise dispose of up to 50% of the Registrable Shares received pursuant to
the terms of the Merger Agreement; (iii) from and after the 120th day after the
Registration Effective Date, transfer, sell or otherwise dispose of up to 75% of
the Registrable Shares received pursuant to the terms of the Merger Agreement;
and (iv) from and after the 180th day after the Registration Effective Date,
transfer, sell, or otherwise dispose of all the Registrable Shares received
pursuant to the terms of the Merger Agreement

    (e)  Further Obligations of Acquiror.  

     (i) Acquiror shall furnish to the Holders such reasonable number of copies
of the Registration Statement, each amendment and supplement thereto, the
prospectus included in the Registration Statement (including each preliminary
prospectus), any documents incorporated by reference into the Registration
Statement and such other documents as they may reasonably request in order to
facilitate the disposition of Registrable Shares owned by them.

    (ii) Acquiror will use its best efforts to diligently prepare and file with
the SEC such amendments and supplements to the Registration Statement and the
prospectus used in connection with the Registration Statement as may be
necessary to comply with the provisions of the Securities Act with respect to
the disposition of all securities covered by the Registration Statement.

    (iii) Acquiror shall file on a timely basis with the SEC all information
that the SEC may require under either of Section 13 or Section 15(d) of the
Exchange Act and, so long as it is required to file such information, shall take
all action that may be required as a condition to the availability of Rule 144
under the Securities Act (or any successor exemptive rule hereinafter in effect)
with respect to Acquiror Stock. Acquiror shall furnish to any Holder forthwith
upon request (i) a written statement by Acquiror as to its compliance with the
reporting requirements of Rule 144, (ii) a copy of the most recent annual or
quarterly report of Acquiror as filed with the SEC, and (iii) any other reports
and documents that a Holder may reasonably request in availing itself of any
rule or regulation of the SEC allowing a Holder to sell any such Registrable
Shares without registration.

    (iv) Acquiror shall notify the Holders promptly (i) when a prospectus or any
prospectus supplement or post-effective amendment has been filed, and with
respect to the Registration Statement or post-effective amendment, when the same
has become effective, (ii) of any request by the SEC or any other federal or
state governmental authority for amendments or

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supplements to the Registration Statement or prospectus or for additional
information, (iii) of the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of the
Registration Statement or the initiation of any proceeding for that purpose, and
(iv) of the receipt by Acquiror of any notification with respect to the
suspension of the qualification of any of the Registrable Securities for sale in
any jurisdiction or the initiation of any proceeding for that purpose.

    (v) Acquiror shall use commercially reasonable efforts to prevent the
issuance of any stop order suspending the effectiveness of the Registration
Statement, and if one is issued, will use commercially reasonable efforts to
obtain the withdrawal of any stop order suspending the effectiveness of the
Registration Statement, or the lifting of any suspension of the qualification
(or exemption from qualification) of any Registrable Securities for sale in any
jurisdiction at the earliest possible time.

    (f)  Obligations of Holders.  

     (i) Each Holder covenants and agrees that it shall promptly furnish to
Acquiror such information regarding themselves or the Registrable Securities
held by them, and the intended method of disposition of such securities, as
shall be reasonably requested by Acquiror in order to effect the registration of
its Registrable Securities. Each Holder agrees that it will not effect any
disposition of its Registrable Securities that would constitute a sale within
the meaning of the Securities Act (including a disposition which qualifies for
an exemption from registration thereunder) except in compliance with the
Securities Act and the regulations thereunder, including all applicable
prospectus delivery requirements.

    (ii) Each Holder covenants and agrees that it will promptly advise the
Company of any changes in the information concerning each Holder contained in
the Registration Statement and that such Holder will not make any sale of
Registrable Securities pursuant to the Registration Statement without complying
with the prospectus delivery requirements of the Securities Act.

    (iii) Each Holder acknowledges that occasionally there may be times (as
described in paragraph (c) of this Section 6) when Acquiror must temporarily
suspend the use of the prospectus forming a part of the Registration Statement
until such time as an amendment to the Registration Statement has been filed by
Acquiror and declared effective by the SEC, the relevant prospectus supplemented
by Acquiror or until such time as Acquiror has filed an appropriate report with
the SEC pursuant to the 1934 Act. During any period in which sales are
suspended, each Holder covenants and agrees that it will not offer or sell any
such Registrable Securities pursuant to the Registration Statement or any such
prospectus.

    (iv) Each Holder acknowledges and agrees to be bound by the terms set forth
in Section 7.2(q) of the Merger Agreement, including the release of any and all
claims to Intellectual Property rights, and the indemnification of the Target
and the Acquiror for any losses suffered or incurred by the Target or the
Acquiror with respect to any matters involving Intellectual Property rights of
the Target or any of the Target's technology, and will execute any documents
necessary to effect the same.

    (v) Each Holder acknowledges and agrees to be bound by the terms set forth
in Article 9 of the Merger Agreement, including the appointment of a Shareholder
Agent, and the authority granted to such Shareholder Agent.

    (g)  Expenses.  Acquiror agrees to bear the costs and expenses for any
registration pursuant to this Section 6. The costs and expenses to be borne by
Acquiror for purposes of this Section 6 shall include, without limitation,
printing expenses (including a reasonable number of prospectuses for circulation
by the selling Holders), legal fees and disbursements of counsel for Acquiror,
legal fees and disbursements of one counsel for the Holders in an amount not to
exceed $25,000, "blue sky" expenses, accounting fees and filing fees, but shall
not include underwriting commissions or similar charges.

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    (h)  Indemnification.  

     (i) Acquiror will indemnify and hold harmless each Holder, its officers,
directors, shareholders or partners and each person, if any, who controls such
Holder within the meaning of the Securities Act or the Exchange Act, against any
losses, claims, damages, or liabilities (joint or several) to which they may
become subject under the Securities Act, the Exchange Act or other federal or
state law, insofar as such losses, claims, damages, or liabilities (or actions
in respect thereof) arise out of or are based upon any of the following
statements, omissions or violations (collectively a "VIOLATION"): (A) any untrue
statement or alleged untrue statement of a material fact contained in the
Registration Statement, including any preliminary prospectus or final prospectus
contained therein or any amendments or supplements thereto, (B) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (C) any violation
or alleged violation by Acquiror of the Securities Act, the Exchange Act, any
state securities law or any rule or regulation promulgated under the Securities
Act, the Exchange Act or any state securities law; and Acquiror will pay to each
such Holder (and its officers, directors, employees, shareholders or partners),
or controlling person, any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained
in this paragraph (h)(1) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability, or action if such settlement is effected
without the consent of Acquiror; nor shall Acquiror be liable in any such case
for any such loss, claim, damage, liability, or action to the extent that it
arises out of or is based upon (a) a Violation which occurs in reliance upon and
in conformity with written information furnished expressly for use in the
Registration Statement by any such Holder, or (b) a Violation that would not
have occurred if such Holder had delivered to the purchaser the version of the
Prospectus most recently provided by Acquiror to the Holder prior to the date of
such sale.

    (ii) Each selling Holder will indemnify and hold harmless Acquiror, each of
its directors, each of its officers who has signed the Registration Statement,
each person, if any, who controls Acquiror within the meaning of the Securities
Act, any other Holder selling securities pursuant to the Registration Statement
and any controlling person of any such other Holder, against any losses, claims,
damages, or liabilities (joint or several) to which any of the foregoing persons
may become subject, under the Securities Act, the Exchange Act or other federal
or state law, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation (which
includes without limitation the failure of the Holder to comply with the
prospectus delivery requirements under the Securities Act, and the failure of
the Holder to deliver the most current prospectus provided by Acquiror prior to
such sale), in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished by such Holder expressly for use in the Registration Statement or such
Violation is caused by the Holder's failure to deliver to the purchaser of the
Holder's Registrable Shares a prospectus (or amendment or supplement thereto)
that had been made available to the Holder by Acquiror prior to such sale; and
each such Holder will pay any legal or other expenses reasonably incurred by any
person intended to be indemnified pursuant to this paragraph (h)(2) in
connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained
in this paragraph (h)(2) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder.

    (iii) Each person entitled to indemnification under this paragraph (h) (the
"INDEMNIFIED PARTY") shall give notice to the party required to provide
indemnification (the "INDEMNIFYING PARTY") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought and shall
permit the Indemnifying Party to assume the defense of any such claim and any
litigation resulting

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therefrom, provided that counsel for the Indemnifying Party who conducts the
defense of such claim or any litigation resulting therefrom shall be approved by
the Indemnified Party (whose approval shall not unreasonably be withheld), and
the Indemnified Party may participate in such defense at such party's expense,
and provided further that the failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations
under this paragraph (h) unless the Indemnifying Party is materially prejudiced
thereby. No Indemnifying Party, in the defense of any such claim or litigation,
shall (except with the consent of each Indemnified Party) consent to entry of
any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation. Each Indemnified Party shall furnish such information regarding
itself or the claim in question as an Indemnifying Party may reasonably request
in writing and as shall be reasonably required in connection with the defense of
such claim and litigation resulting therefrom.

    (iv) To the extent that the indemnification provided for in this
paragraph (h) is held by a court of competent jurisdiction to be unavailable to
an Indemnified Party with respect to any loss, liability, claim, damage or
expense referred to herein, then the Indemnifying Party, in lieu of indemnifying
such Indemnified Party hereunder, shall contribute to the amount paid or payable
by such Indemnified Party as a result of such loss, liability, claim, damage or
expense in such proportion as is appropriate to reflect the relative fault of
the Indemnifying Party on the one hand and of the Indemnified Party on the other
in connection with the statements or omissions which resulted in such loss,
liability, claim, damage or expense, as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Indemnifying Party or by the Indemnified Party and the parties'
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement or omission.

    7.  Termination of Prior Agreements.  Each party hereto agrees and consents
to the termination of certain agreements and rights as set forth in
Section 7.2(p) of the Merger Agreement, and will execute any documents necessary
to effect the same.

    8.  Notices.  All notices, requests, demands or other communications which
are required or may be given pursuant to the terms of this Agreement shall be in
writing and shall be deemed to have been duly given (i) upon receipt, if
delivered by hand, (ii) one (1) business day after deposit with a
nationally-recognized overnight courier service, with delivery charges prepaid
or otherwise satisfied, or (iii) three (3) days after deposit in the United
States mail, postage prepaid, certified or registered mail, addressed to a party
as follows:

if to Acquiror or Sub:

Pixelworks, Inc.
7700 SW Mohawk Street
Tualatin, OR 97062
Facsimile No.: (503) 612-6713
Attention: Chief Financial Officer

with a copy to:

Ater Wynne LLP
222 S.W. Columbia, Suite 1800
Portland, OR 97201
Attention: William C. Campbell, Esq.
Fax No: 503-226-0079

--------------------------------------------------------------------------------

if to Target, to:

Panstera, Inc.
2360 Qume Drive, Suite A
San Jose, CA 95131
Attention: President
Fax No: 408-456-0811

with a copy to:

Law & Partner

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

Attention: Charles Law, Esq.
Fax No: [            ]

if to Shareholders:

    At the address set forth beneath each Shareholders' signature below or to
such other address as any part may designate for itself by notice given as
provided in this Agreement, except that notices of change of address shall only
be effective upon receipt.

    9.  Termination.  This Agreement shall terminate and shall be of no further
force and effect upon the termination of the Merger Agreement.

    10.  Counterparts.  This Agreement shall be executed in one or more
counterparts, any of which may be a facsimile copy, each of which shall be
deemed an original, and all of which together shall constitute one instrument.

    11.  Binding Agreement.  This Agreement will inure to the benefit of and be
binding upon and enforceable against the parties and their successors and
assigns, including administrators, executors, representatives, heirs, legatees
and devisees of each Shareholder and any pledgee holding Restricted Securities
as collateral.

    12.  Waiver.  No waiver by any part hereto of any condition or of any breach
of any provision of this Agreement shall be effective unless in writing and
signed by each party hereto.

    13.  Governing Law.  This Agreement shall be governed by and construed,
interpreted and enforced in accordance with the laws of the State of Oregon.
Each Shareholder hereby irrevocably submits to the exclusive personal
jurisdiction of either (i) the Circuit Court of Multnomah County of the State of
Oregon or (ii) the United States District Court in Portland, Oregon, and all
courts from which an appeal may be taken, solely for the purpose of any suit,
action, or other proceeding arising out of or based upon this Agreement, or any
document, instrument, agreement or matter related thereto, and hereby waives to
the extent not prohibited by law, and agrees not to assert, by way of motion, as
a defense, or otherwise, in any such proceeding, any claim that he, she or it is
not subject personally to the jurisdiction of the above-named courts for such
proceedings. Process in any suit, action or other proceeding referred to in this
section may be served on any Shareholder through the procedures for notice under
Section 8.

    14.  Integration.  This Agreement constitutes the entire understanding of
the parties hereto with respect to the subject matter of the Agreement.

    15.  Attorneys' Fees.  In the event of any legal action or proceeding to
enforce or interpret the provisions hereof, the prevailing party shall be
entitled to reasonable attorneys' fees, and disbursements whether or not the
proceeding results in a final judgment.

    16.  Effect of Headings.  The section headings herein are for convenience
only and shall not affect the construction or interpretation of this Agreement.

    17.  Third-Party Reliance.  Counsel to and accountants for the parties shall
be entitled to rely upon this Agreement.

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    18.  Representations and Warranties.  The representations and warranties by
Shareholders made in this Agreement shall be deemed to have been made as of the
date hereof and as of immediately prior to the Effective Time of Merger.

    IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed on the day and year first written above.

PANSTERA, INC.   PIXELWORKS, INC.
By:
 
/s/ Yukuang Wang

--------------------------------------------------------------------------------

Yukuang Wang
President
 
By:
 
/s/ Allen H. Alley

--------------------------------------------------------------------------------

Allen Alley
President and Chief Executive Officer
PANTHER ACQUISITION INC.
 
 
 
 
By:
 
/s/ Allen H. Alley

--------------------------------------------------------------------------------

Allen Alley
President and Chief Executive Officer
 
 
 
 
SHAREHOLDERS
 
 
 
 
/s/ Yukuang Wang

--------------------------------------------------------------------------------

Yukuang Wang
2017 Skyline Drive
Milpitas, CA 95035
 
/s/ Guojin Liang

--------------------------------------------------------------------------------

Guojin Liang
529 Bayview Park Drive
Milpitas, CA 95035
/s/ Wade Chang

--------------------------------------------------------------------------------

Wade Chang
No. 11, Li Hsing Road
Science-Based Industrial Park
HsinChu, Taiwan R.O.C.
 
 
 
 
OPTOMA CORP.
 
CHAILEASE FINANCE CO.
By:
 
/s/ Wade Chang

--------------------------------------------------------------------------------

 
By:
 
/s/ Mona Chien

--------------------------------------------------------------------------------

    Wade Chang   Name:   Mona Chien

--------------------------------------------------------------------------------

    Chairman, President and CEO   Title:   Chairman

--------------------------------------------------------------------------------

No. 11, Li Hsing Rd
Science-Based Industrial Park
Hsinchu, Taiwan, R.O.C.   4F., 56, Tun-Hwa N. Road
Taipei, Taiwan

--------------------------------------------------------------------------------

SHENG YANG CONSTRUCTION CO., LTD.
 
YUAN SUN INVESTMENT CO., LTD.
By:
 
/s/ Jackson Mai

--------------------------------------------------------------------------------

 
By:
 
/s/ Jackson Mai

--------------------------------------------------------------------------------

Name:   Jackson Mai

--------------------------------------------------------------------------------

  Name:   Jackson Mai

--------------------------------------------------------------------------------

Title:   Chairman

--------------------------------------------------------------------------------

  Title:   Chairman

--------------------------------------------------------------------------------

9th Floor, No. 289 Chung-Hsiao E. Rd., Sec. 4
Taipei, Taiwan, R.O.C.   12th Floor, No. 289 Chung-Hsiao E. Rd., Sec. 4
Taipei, Taiwan, R.O.C.

 
 
 
 
SUNSINO INTERNATIONAL INC.
[Sunsino International Development Associate Inc.]
/s/ Wu Min Hsien

--------------------------------------------------------------------------------

 
By:
 
/s/ Cheng Sang Huang

--------------------------------------------------------------------------------

Wu Min-Hsien   Name:   Cheng Sang Huang

--------------------------------------------------------------------------------

9th Floor, No. 289 Chung-Hsiao E. Rd., Sec. 4   Title:   President

--------------------------------------------------------------------------------

Taipei, Taiwan, R.O.C.   6F, No. 184, Sec. 4, Hsin-Yi Road
Taipei, Taiwan
HWA NAN VENTURE CAPITAL CO., LTD.
 
HWA CHUNG VENTURE CAPITAL CO., LTD.
By:
 
/s/ Cheng Sang Huang

--------------------------------------------------------------------------------

 
By:
 
/s/ Cheng Sang Huang

--------------------------------------------------------------------------------

Name:   Cheng Sang Huang

--------------------------------------------------------------------------------

  Name:   Cheng Sang Huang

--------------------------------------------------------------------------------

Title:   President

--------------------------------------------------------------------------------

  Title:   President

--------------------------------------------------------------------------------

6F, No. 184, Sec. 4, Hsin-Yi Road
Taipei, Taiwan   6F, No. 184, Sec. 4, Hsin-Yi Road
Taipei, Taiwan
HWA YI VENTURE CAPITAL CO., LTD.
 
HWA HSIN VENTURE CAPITAL CO., LTD.
By:
 
/s/ Cheng Sang Huang

--------------------------------------------------------------------------------

 
By:
 
/s/ Cheng Sang Huang

--------------------------------------------------------------------------------

Name:   Cheng Sang Huang

--------------------------------------------------------------------------------

  Name:   Cheng Sang Huang

--------------------------------------------------------------------------------

Title: 6F, No. 184, Sec. 4, Hsin-Yi Road
Taipei, Taiwan   Title: 6F, No. 184, Sec. 4, Hsin-Yi Road
Taipei, Taiwan
/s/ Wei-Jung Chang

--------------------------------------------------------------------------------

Wei-Jung Chang
6F, No. 184, Sec. 4, Hsin-Yi Road
Taipei, Taiwan
 
/s/ Dieter Tien

--------------------------------------------------------------------------------

Dieter Tien
5th Floor, No. 9, Chi-Nan Road, Sec. 3
Taipei, Taiwan

--------------------------------------------------------------------------------

WELL UNITED TECHNOLGY COMPANY
 
 
 
 
By:
 
/s/ Eric Wu

--------------------------------------------------------------------------------

 
/s/ Tsai Eng Rung

--------------------------------------------------------------------------------

Name:   Eric Wu

--------------------------------------------------------------------------------

  Eng Rung Tsai Title:   General Partner

--------------------------------------------------------------------------------

  No. 72, Sec. 1, Chen-The Road
Taipei, Taiwan 19433 East Walnut Drive South
City of Industry, CA 91748        
 
 
 
 
POWERWORLD FUND, INC.
/s/ Wendy Lee

--------------------------------------------------------------------------------

 
By:
 
/s/ Frank C. Huang

--------------------------------------------------------------------------------

Wendy W. Lee   Name:   Frank C. Huang

--------------------------------------------------------------------------------

4012 Island Crest Way
Mercer Island, WA 98040   Title:   President

--------------------------------------------------------------------------------

        8F, 70, Sec. 3, Nanking E. Road
Taipei, Taiwan R.O.C.
UNIVERSAL VENTURE FUND, INC.
 
 
 
 
By:
 
/s/ Frank C. Huang

--------------------------------------------------------------------------------

 
 
 
  Name:   Frank C. Huang

--------------------------------------------------------------------------------

        Title:   President

--------------------------------------------------------------------------------

        8F, 70, Sec. 3, Nanking E. Road
Taipei, Taiwan R.O.C.        

--------------------------------------------------------------------------------

APPENDIX A

Common Shareholders     Wang, Yukuang   1,220,000 Liang, Guojin   1,220,000
Chang, Wade   360,000    

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    2,800,000 Preferred Series A Shareholders     Optoma Corp.*   1,800,000
Preferred Series B Shareholders     Chailease Finance Co., Ltd.   700,000 Sheng
Yang Construction Co., Ltd.   500,000 Yuan Sun Investment Co., Ltd.   500,000
WU, MIN HSIEN   100,000 SUNSINO International Inc.   125,000 Hwa Nan Venture
Capital Co., Ltd.   100,000 Hwa Chung Venture Capital Co., Ltd.   100,000 Hwa Yi
Venture Capital Co., Ltd.   125,000 Hwa Hsin Venture Capital Co., Ltd.   125,000
WEI-JUNG CHANG   90,000 DIETER TIEN   135,000 Well United Technology Company  
100,000 TSAI, ENG RUNG   100,000 WENDY W. LEE   100,000 PowerWorld Fund, Inc.  
100,000 Universal Venture Fund, Inc.   200,000    

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    3,200,000

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QuickLinks

PANSTERA, INC. SHAREHOLDERS AGREEMENT
APPENDIX A