Document:

exv4w16

 

EXHIBIT 4.16

PIGGYBACK REGISTRATION RIGHTS

AGREEMENT

     THIS PIGGYBACK REGISTRATION RIGHTS AGREEMENT (hereinafter referred to as this
“Agreement”), is entered into on this 20th day of July 2005, by and between
VISEON, INC. f/k/a RSI Systems, Inc., a corporation duly authorized and existing pursuant to the
laws of the state of Nevada (hereinafter the “Corporation”), and HENRY S. MELLON, an
individual (hereinafter the “Investor”).

W I T N E S S E T H:

     WHEREAS, on or about the 20th day of July, 2005, the Corporation and the
Investor entered into that certain Warrant Purchase Agreement which relates to an investment by the
Investor in shares of Common Stock of the Company by the purchase of a Warrant; and

     WHEREAS, Corporation and Investor desire to make conditional provisions for the registration
of the securities to be issued upon exercise of the Warrant as set forth herein, if the same be
necessary.

     NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants,
representations, warranties and agreements herein contained, the parties hereto agree as follows:

Section I

Definitions

     1.1 As used in this Agreement, the following capitalized terms shall have the following
meanings:

     “Exchange Act” means the Securities and Exchange Act of 1934, as amended.

     “GAAP” means generally accepted accounting principles, as in effect from time to time
in the United States, consistently applied

     “Holder” means the Investor, or any assignee of an Investor.

     “Common Stock” means shares of duly authorized, validly issued, fully paid and
nonassessable common stock of the Company, par value $0.01 per share, which is the common
equity of the Corporation.

     “Person” means a natural person, partnership, corporation, business trust, association,
joint venture or other entity or a government or agency or political subdivision thereof.

      

					
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     “Prospectus” means the prospectus included in any Registration Statement, as
supplemented by any and all prospectus supplements and as amended by any and all
post-effective amendments and including all material incorporated by reference in such
prospectus.

     “Registration” means the registration described in Section 2 hereof.

     “Registrable Securities” means the Warrant Shares, owned by the Holder, and any
securities issued or issuable with respect to such Warrant Shares by way of a stock dividend
or stock split or in connection with a combination of shares, recapitalization, merger,
consolidation or reorganization.

     “Registration Statement” means the registration statement which covers Registrable
Securities pursuant to the provisions of this Agreement, including the Prospectus included
in such registration statement, amendments (including post-effective amendments) and
supplements to such registration statement, and all exhibits to and all material
incorporated by reference in such registration statement.

     “Restricted Stock” means any shares of Common Stock of the Corporation issued to Holder
for which a Registration Statement has not become effective.

     “Securities Act” means the Securities Act of 1933, as from time to time amended.

     “Selling Holder” means any holder of Restricted Stock who exercises any Registration
Rights granted hereunder

     “Share” means the common stock in the Corporation and includes any options, warrants or
other rights to purchase Shares and securities of any type whatsoever that are, or may
become, convertible into Shares with the number of any Shares which is an option, warrant,
right or convertible security being the number of such Shares which would result upon the
immediate exercise of such option, warrant or right of conversion of such convertible
security, without regard as to when such option, warrant or right may in fact be exercised
or such convertible security may in fact be converted.

     “Warrant” means the Warrant or any warrant to purchase shares of Common Stock of the
Corporation issued to Holder in exchange therefor.

     “Warrant Shares” mean any and all shares of Common Stock issued or issuable upon
exercise of the Warrant.

      

					
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Section II

Piggyback Registration Rights

     2.1 If the Investor exercises any portion of the Warrant, and thereafter the Corporation
proposes to file a registration statement under the Securities Act with respect to an offering for
its own account of any class of its equity securities (other than a registration statement on Form
S-8 (or any successor form) or any other registration statement relating solely to employee benefit
plans or filed in connection with an exchange offer, a transaction to which Rule 145 (or any
successor provision) under the Securities Act applies or an offering of securities solely to the
Corporation’s existing shareholders), then the Corporation shall in each case give written notice
of such proposed filing to the Holder as soon as practicable (but no later than 20 business days)
before the anticipated filing date, and such notice shall offer each Holder the opportunity to
register such number of shares of Restricted Stock as such Holder may request. Each Holder desiring
to have Restricted Stock included in such registration statement shall so advise the Corporation in
writing within 10 business days after the date on which the Corporation’s notice is so given,
setting forth the number of shares of Restricted Stock for which registration is requested. If the
Corporation’s offering is to be an underwritten offering, the Corporation shall, subject to the
further provisions of this Agreement, use its reasonable best efforts to cause the managing
underwriter or underwriters to permit the Holders of the Restricted Stock requested to be included
in the registration for such offering to include such Restricted Stock in such offering on the same
terms and conditions as any similar securities of the Corporation included therein. The right of
each Holder to registration pursuant to this Section 4 in connection with an underwritten offering
by the Corporation shall, unless the Corporation otherwise assents, be conditioned upon such
Holder’s participation as a seller in such underwritten offering and its execution of an
underwriting agreement with the managing underwriter or underwriters selected by the Corporation.
Notwithstanding the foregoing, if the managing underwriter or underwriters of such offering deliver
a written opinion to the Corporation that either because of (a) the kind of securities that the
Corporation, the Holders and any other persons or entities intend to include in such offering or
(b) the size of the offering that the Corporation, the Holders and any other persons or entities
intend to make, the success of the offering would be materially and adversely affected by inclusion
of the Restricted Stock requested to be included, then (i) in the event that the size of the
offering is the basis of such managing underwriter’s opinion, the number of shares of Restricted
Stock to be registered and offered for the accounts of Holders shall be reduced pro rata on the
basis of the number of securities requested by such Holders to be registered and offered to the
extent necessary to reduce the total amount of securities to be included in such offering to the
amount recommended by such managing underwriter or underwriters (provided that if securities are
being registered and offered for the account of other persons or entities in addition to the
Corporation, such reduction shall not be proportionally greater than any similar reductions imposed
on such other persons or entities) and (ii) in the event that the combination of securities to be
offered is the basis of such managing underwriters opinion, (x) the Restricted Stock to be
included in such registration and offering shall be reduced as described in clause (i) above or (y)
if such actions would, in the reasonable judgment of the managing underwriter, be insufficient to
substantially eliminate the adverse effect that inclusion of the Restricted Stock requested to be
included would have on such offering, such Restricted Stock will be excluded entirely from such
registration and offering. Any Restricted Stock excluded from an underwriting shall, if
applicable, be withdrawn

      

					
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from registration and shall not, without the consent of the Corporation, be transferred in a public
distribution prior to the earlier of ninety (90) days (or such other shorter period of time as the
managing underwriter may require) after the effective date of the registration statement or ninety
(90) days after the date the Holders of such Restricted Stock are notified of such exclusion.

Section III

Registration Procedures

     3.1 Whenever Holders of Restricted Stock have requested pursuant to Section 2.1 that any
Restricted Stock be registered, the Corporation shall, subject to the provisions of Section 4.3
hereof, use its reasonable best efforts to effect the registration and the sale or distribution of
such Restricted Stock in accordance with the intended method of disposition thereof as promptly as
practicable, and in connection with any such request, the Corporation shall:

(a) prepare and file with the Securities and Exchange Commission, a registration
statement on any form for which the Corporation then qualifies and which counsel for the
Corporation shall deem appropriate and which form shall be available for the sale or
distribution of such Restricted Stock in accordance with the intended method of distribution
thereof, and use its reasonable best efforts to cause such registration statement to become
effective; provided that, (i) before filing a registration statement or prospectus or any
amendments or supplements thereto, the Corporation will furnish to one counsel selected by
the Holders of a majority of the shares of Restricted Stock covered by such registration
statement copies of all such documents proposed to be filed, which documents will be subject
to the review and comment of such counsel and (ii) after the filing of the registration
statement, the Corporation shall promptly notify each Selling Holder of Restricted Stock of
any stop order issued or, to the knowledge of the Corporation, threatened by the Securities
and Exchange Commission and take all reasonable actions to prevent the entry of such stop
order or to remove it if entered;

(b) prepare and file with the Securities and Exchange Commission such amendments and
supplements to such registration statement and the prospectus used in connection therewith
as may be necessary to keep such registration statement effective for a period of not less
than ninety (90) days or such shorter period as shall terminate when the distribution of all
Restricted Stock covered by such registration statement shall have terminated (but not
before the expiration of the ninety day (90) period referred to in Section 4(3) of the
Securities Act and Rule 174 thereunder, if applicable) and comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement during such period in accordance with the intended methods of
disposition by the Selling Holders thereof set forth in such registration statement;

(c) as soon as reasonably practicable, furnish to each Selling Holder, prior to filing
a registration statement, copies of such registration statement as proposed to be filed and
thereafter furnish to such Selling Holder such number of copies of such registration
statement, each amendment and supplement thereto, the prospectus included in such
registration Statement (including each preliminary prospectus) and such other

      

					
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documents as such Selling Holder may reasonably request in order to facilitate the
disposition of the Restricted Stock owned by such Selling Holder;

     (d) use its best efforts to register or qualify such Restricted Stock under such other
securities or blue sky laws of such jurisdictions within the United States and Canada as any
Selling Holder reasonably (in light of such Selling Holder’s intended plan of distribution)
requests and do any and all other acts and things which may be reasonably necessary or
advisable to enable such Selling Holder to consummate the disposition in such jurisdictions
of the Restricted Stock owned by such Selling Holder; provided that the Corporation shall
not be required to (i) qualify generally to do business or file a general consent to service
of process in any jurisdiction or (ii) take any action that would subject itself to taxation
in any such jurisdiction;

     (e) promptly notify each Selling Holder of such Restricted Stock, at any time when a
prospectus relating thereto is required to be delivered under the Securities Act, of the
occurrence of any event known to the Corporation requiring the preparation of a supplement
or amendment to such prospectus so that, as thereafter delivered to the purchasers or
recipients of such Restricted Stock, such prospectus will not contain an untrue statement of
a material fact or omit to state any material fact required to be stated therein or
necessary to make the statements therein not misleading and promptly make available to each
Selling Holder any such supplement or amendment;

     (f) enter into an underwriting agreement in customary form, the form and substance of
such underwriting agreement being subject to the reasonable satisfaction of the Corporation
and a majority in interest of the Selling Holders;

     (g) make available for inspection by any Selling Holder, any underwriter participating
in any sale or distribution pursuant to such registration statement and any attorney,
accountant or other agent retained by any such Selling Holder or underwriter (collectively,
the “Inspectors”) all financial and other records, pertinent corporate documents and
properties of the Corporation (collectively, the “Records”) as shall be reasonably necessary
to enable them to exercise their due diligence responsibility, and cause the Corporation’s
officers and employees to supply all information reasonably requested for such purpose by
any such Inspector in connection with such registration statement; provided that the
Corporation shall have no obligation to permit such access to the Records or its officers or
employees in a manner that would unreasonably disrupt the normal conduct of its business
operations. Each such Selling Holder and Inspector that actually reviews Records supplied by
the Corporation that include information that the Corporation identifies, in good faith, as
being confidential or proprietary (“Confidential Information”) shall be required at the
Corporation’s option, prior to any such review, to execute an agreement with the Corporation
providing that such Inspector shall not publicly disclose any Confidential Information
unless such disclosure is required by applicable law or legal process and shall not use
such information for any purpose other than the limited purpose contemplated by this
subsection (g). Each such Selling Holder and Inspector shall be required further to agree
that it shall, upon learning that disclosure of Confidential Information is sought in a
court of competent jurisdiction, give notice to

      

					
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the Corporation and allow the Corporation, at its expense, to undertake appropriate
action to prevent disclosure of the Confidential Information;

     (h) in the event such sale is pursuant to an underwritten offering, use its reasonable
best efforts to obtain a comfort letter or letters from the Corporation’s independent public
accountants in customary form and covering such matters of the type customarily covered by
comfort letters as the managing underwriter reasonably requests; and

     (i) otherwise use its reasonable efforts to comply with all applicable rules and
regulations of the Securities and Exchange Commission and make available to its security
holders, as soon as reasonably practicable, an earnings statement complying with the
provisions of Section 11(a) of the Securities Act (including, at the option of the
Corporation, pursuant to Rule 158 (or any successor provision) under the Securities Act).

Upon receipt of any notice from the Corporation of the occurrence of any event of the kind
described in subsection (e) hereof, such Selling Holder shall forthwith discontinue all offerings,
sales and other dispositions of Restricted Stock pursuant to the registration statement covering
such Restricted Stock until such Selling Holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by subsection (e) hereof. In the event the Corporation shall give
any such notice, the Corporation shall extend the period during which such registration statement
shall be maintained effective pursuant to this Agreement (including the period referred to in
subsection (b) hereof) by the number of days during the period from and including the date of the
giving of such notice pursuant to subsection (b) hereof to and including the first date on which
each Selling Holder of Restricted Stock covered by such registration statement shall have received
the copies of the supplemented or amended prospectus contemplated by subsection (e) hereof. Each
Selling Holder shall notify the Corporation if any event relating to such Selling Holder occurs
which would require the preparation of a supplement or amendment to the prospectus so that such
prospectus will not contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading.

Section IV

Conditions and Limitations.

     4.1 The Corporation’s obligations under this Section 3 shall be subject to the Corporation
having received the information and documents specified in Section 5 hereof and each Selling Holder
shall have observed or performed its other covenants contained in Sections 5 and 7 hereof.

     4.2 The Corporation’s obligation under Section 4 hereof shall be subject to the limitations
and conditions specified in such section, and to the condition that the Corporation may at any time
terminate its proposal to register equity securities for its own account and discontinue its
efforts to cause a registration statement to become or remain effective as to any and all shares of
Restricted Stock that would otherwise have been eligible for inclusion in such registration.

      

					
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Section V

Certain Covenants of Holders of Restricted Stock

     5.1 Notices and requests delivered to the Corporation by Holders for whom Restricted Stock is
to be registered pursuant to this Agreement shall contain such information regarding the Restricted
Stock to be so registered, the Holder and the intended method of disposition of such Restricted
Stock as shall reasonably be required in connection with the actions contemplated to be taken
pursuant to this Agreement. Any Holder whose Restricted Stock is included in a registration
statement pursuant to this Agreement shall execute all consents, powers of attorney, registration
statements and other documents reasonably required to be executed by it in order to cause such
registration statement to became effective. Each Selling Holder covenants that, in disposing of
such Holder’s shares, such Holder will comply with Rules 10b-2, 10b-5, 10b-6 and 10b-7 (or any
successor provisions) under the Exchange Act and all other requirements of applicable law.

Section VI

Registration Expenses

     6.1 All Registration Expenses (as defined herein) will be borne by the Corporation.
Underwriting discounts and commissions applicable to the sale of Restricted Stock shall be borne by
the Holder of the Restricted Stock to which such discount or commission relates, and each Selling
Holder shall be responsible for the fees and expenses of any legal counsel, accountants or other
agents retained by such Selling Holder and all other out-of-pocket expenses incurred by such
Selling Holder in connection with any registration under this Agreement.

     6.2 As used herein, the term Registration Expenses means all expenses incident to the
Corporation’s performance of or compliance with this Agreement (whether or not the registration in
connection with which such expenses are incurred ultimately becomes effective), including without
limitation all registration and filing fees, fees and expenses of compliance with securities or
blue sky laws (including reasonable fees and disbursements of counsel in connection with blue sky
qualifications of the Restricted Stock), rating agency fees, printing expenses, the fees and
expenses incurred in connection with the listing or admission for quotation of the securities to be
registered an any securities exchange or quotation system and fees and disbursements of counsel for
the Corporation and its independent certified public accountants (including the expenses of any
special audit or comfort letters required by or incident to such performance), securities act
liability insurance (if the Corporation elects to obtain such insurance), the reasonable fees and
expenses of any special expert retained by the Corporation in connection with such registration and
the fees and expenses of other persons retained by the Corporation.

Section VII

Indemnification; Contribution

     7.1 Indemnification by the Corporation. In connection with any offering of Restricted
Stock pursuant to this Agreement, the Corporation shall indemnify and hold harmless each Selling
Holder, its officers, directors and agents and each person, if any, who controls such

      

					
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Selling Holder within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act from and against any and all losses, claims, damages, liabilities and expenses
(including reasonable fees and disbursements of counsel) arising out of or based upon any untrue
statement or alleged untrue statement of a material fact contained in any registration statement or
prospectus relating to Restricted Stock or in any amendment or supplement thereto or in any
preliminary prospectus relating to Restricted Stock or arising out of or based upon any omission
or alleged omission to state therein a material fact required to be stated therein or necessary to
make the statements therein not misleading in light of the circumstances under which they were
made, except insofar as such losses, claims, damages, liabilities or expenses arise out of, or are
based upon, any such untrue statement or alleged untrue statement or omission or alleged omission
based upon information furnished in writing to the Corporation by such Selling Holder or on such
Selling Holder’s behalf expressly for use therein. In connection with any underwritten offering of
Restricted Stock registered pursuant to this Agreement, the Corporation shall cause to be included
in any underwriting agreement with the underwriters of such offering provisions indemnifying and
providing for contribution to such underwriters and their officers and directors and each person
who controls such underwriters on substantially the same basis as the provisions of this Section
7.1 indemnifying and providing for contribution to the Selling Holders.

     7.2 Indemnification by Holders of Restricted Stock. In connection with any offering
of Restricted Stock pursuant to this Agreement, each Selling Holder, severally and not jointly,
shall indemnify and hold harmless the Corporation, its officers, directors and agents and each
person, if any, who controls the Corporation within the meaning of either Section 15 of the
Securities Act or Section 20 of the Exchange Act, and, in accordance with industry practice, in the
case of an offering of Restricted Stock pursuant to this Agreement, each underwriter of such
Restricted Stock if requested by such underwriter, from and against any and all losses, claims,
damages, liabilities and expenses (including reasonable fees and disbursements of counsel) arising
out of or based upon any untrue statement or alleged untrue statement of a material fact contained
in any registration statement or prospectus relating to Restricted Stock or in any amendment or
supplement thereto or in any preliminary prospectus relating to Restricted Stock, or arising out of
or based upon any omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading in light of the
circumstances under which they were made, provided that (i) such losses, claims, damages,
liabilities or expenses arise out of, or are based upon, any such untrue statement or alleged
untrue statement or omission or alleged omission based upon information furnished in writing to the
Corporation by such Selling Holder or on such Selling Holder’s behalf expressly for use therein and
(ii) no Selling Holder shall be liable for any indemnification under this Section 7.2 in an
aggregate amount which exceeds the total net proceeds received by such Selling Holder from such
offering. In connection with any underwritten offering of Restricted Stock registered pursuant to
this Agreement, each Selling Holder shall cause to be included in any underwriting agreement with
the underwriters of such offering provisions indemnifying and providing for contribution to such
underwriters, their officers and directors and each person who controls such underwriters on
substantially the same basis as the provisions of this Section 4.6(b) indemnifying and providing
for contribution to the Corporation.

      

					
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     7.3 Conduct of Indemnification Proceedings. If any action or proceeding (including
any governmental investigation) shall be brought or asserted against any indemnified party
hereunder in respect of which indemnity may be sought from an indemnifying party hereunder, such
indemnifying party shall assume the defense thereof, including the employment of counsel reasonably
satisfactory to such indemnified party, and shall assume the payment of all expenses. Such
indemnified party shall have the right to employ separate counsel in any such action and to
participate in the defense thereof, but the fees and expenses of such counsel shall be at the
expenses of such indemnified party unless (i) the indemnifying party has agreed to pay such fees
and expenses, (ii) the indemnifying party shall have failed to assume the defense of such action or
proceeding and employ counsel reasonably satisfactory to such indemnified party, or (iii) the named
parties to any such action or proceeding (including any impleaded parties) include both such
indemnified party and such indemnifying party, and such indemnified party shall have been advised
by counsel that there may be one or more legal defenses available to such indemnified party which
are different from or additional to those available to the indemnifying party (in which case, if
such indemnified party notifies the indemnifying party in writing that it elects to employ separate
counsel at the expense of the indemnifying party, the indemnifying party shall not have the right
to assume the defense of such action or proceeding on behalf of such indemnified party; it being
understood, however, that the indemnifying party shall not, in connection with any one such action
or proceeding or separate but substantially similar or related actions or proceedings in the same
jurisdiction arising out of the same general allegations or circumstances, be liable for the fees
and expenses of more than one separate firm of attorneys (together with appropriate local counsel)
at any time for such indemnified party, which firm shall be designated in writing by such
indemnified party and reasonably satisfactory to the indemnifying party). The indemnifying party
shall not be liable for any settlement of any such action or proceeding erected without its written
consent, but if settled with its written consent, or if there is a final judgment for the plaintiff
in any such action or proceeding, the indemnifying party shall indemnify and hold harmless the
indemnified party from and against any loss or liability (to the extent stated above) by reason of
such settlement or judgment.

     7.4 Contribution. If the indemnification provided for in this Section 4 is
unavailable to the Corporation or the Selling Holders in respect of any losses, claims, damages,
liabilities or judgments referred to herein, then each such indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages, liabilities and judgments in such
proportion as is appropriate to reflect the relative fault of each such party in connection with
such statements or omissions or alleged statements or omissions, as well as any other relevant
equitable considerations. The relative fault of each such 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 such
party, and the parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such statement or omission. The Corporation and the Selling Holders agree that
it would not be just and equitable if contribution pursuant to this Section 4(d) were determined by
pro rata allocation or by any other method of allocation which does not take account of the
equitable considerations referred to in the immediately preceding sentences. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages, liabilities or
judgments referred to in the immediately preceding sentences shall be deemed to include, subject to
the

      

					
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limitations set forth above, any legal or other expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action or claims.
Notwithstanding the provisions of this Section 4(d), no Selling Holder shall be required to
contribute an amount in excess of the amount by which the total price at which the Restricted Stock
of such Selling Holder was offered to the public exceeds the amount of any fee which such Selling
Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or
omission or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning
of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who is
not guilty of such fraudulent misrepresentation.

Section VIII

Representations and Warranties

     The Corporation represents and warrants that:

     8.1 Existence and Rights. The Corporation is a corporation duly organized, validly
existing and in good standing under the laws of the state of Nevada. The Corporation has all
requisite corporate power and authority, to carry on its business and to own and use the properties
owned and used by it. True and correct copies of the Corporation’s Articles of Incorporation and
Bylaws, as amended to date, have been delivered to Holder. The Corporation is qualified to conduct
business and is in good standing under the laws of each jurisdiction wherein the nature of its
business or its ownership of property requires it to be so qualified, except where the failure to
be so qualified, would not individually or in the aggregate, have a material adverse effect on the
assets or business of the Corporation. The Corporation has no Subsidiaries.

     8.2 Corporate Authorization. The Corporation has all necessary power and authority to
enter into this Agreement and has taken all action, specifically including, without limitation, all
corporate action, necessary to execute, deliver and perform this Agreement. This Agreement has
been duly authorized, executed and delivered by the Corporation and is a legally valid and binding
obligation of the Corporation enforceable against the Corporation in accordance with its terms.

     8.3 No Conflict. The execution, delivery and performance of this Agreement and of the
related documents by the Corporation will not violate any provision of the Corporation’s Articles
of Incorporation or the Bylaws; or violate any law or rule or regulation of any administrative
agency or governmental body; or any order, writ, injunction or decree of any court, arbiter,
administrative agency or governmental authority having jurisdiction over the Corporation; or
violate any indenture, mortgage, contract, will, agreement or other undertaking to which the
Corporation is a party or is subject, or result in the creation or imposition of any lien or
encumbrance on any of the properties of the Corporation under any of the foregoing.

     8.4 Litigation. There is no litigation, proceeding, dispute, tax audit or other
governmental investigation pending, or to the best of the Corporation’s knowledge, threatened
against, or affecting the Corporation’s business or its assets before any court or governmental
agency or other body, which would adversely affect the financial condition of The Corporation, its
assets, or the conduct of the Corporation’s business, or which may impede the transaction

      

					
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contemplated herein. There are no outstanding and unpaid judgments, tax deficiencies, statements,
or notices of assessments or other demands for payment of taxes served on or filed against the
Corporation. The Corporation is not in default with respect to an order, writ, injunction, decree
or demand of any court or other governmental or regulatory authority.

Section IX

Miscellaneous

     9.1 Notices. Any notice or other communication required or permitted hereunder shall
be deemed given if in writing and delivered personally, telegraphed, telexed, sent by facsimile
transmission or sent by certified, registered or express mail, postage prepaid. Any such notice
shall be deemed given when so delivered personally or sent by overnight air courier or facsimile
transmission or, if mailed, two days after the date of deposit in the United States mails, as
follows:

If to Investor:

Henry S. Mellon

4 Driftwood Landing

Gulfstream, Florida 33483

If to Viseon, Inc.:

Viseon, Inc.

Attn: President

8445 Freeport Parkway

Suite 245

Dallas, TX 75063

With a copy to:

Albert B. Greco, Jr.

Law Offices of Albert B. Greco, Jr.

16901 N. Dallas Parkway, Suite 230

Addison, Texas 75001]

Facsimile: 972-818-7343

Any party may require any other party to serve notices in accordance with this Section at a
different address or directed to another person for receipt of notices, if such party so designates
such other person or address in writing delivered to every other party in accordance with this
Section 9, paragraph 9.1.

     9.2 Partial Invalidity. Each part of this Agreement is intended to be separate. If
any term, covenant, condition or provision hereof is illegal or invalid or unenforceable for any
reason whatsoever, such illegality, invalidity or unenforceability shall not affect the legality,
validity or enforceability of the remaining parts of this Agreement and all such remaining parts
hereto shall

      

					
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not be impaired or invalidated in any way, but shall be legal, valid and enforceable and have
full force and effect as if the illegal, invalid, unenforceable part has not been included.

     9.3 Law Governing Agreement. This Agreement is made and entered into and is to be at
least partially performed in Clark County, Nevada. It shall be interpreted, construed and enforced
and its construction and performance shall be governed by the laws of the State of Nevada
applicable to Agreements made and to be performed entirely within such State without regard to
principles of conflicts of laws, except to the extent that Federal law may apply.

     9.4 Entire Agreement. This Agreement constitutes the entire understanding and
Agreement of the parties hereto, and supersedes any and all prior understandings or other
Agreements, either oral or in writing, if any, among such parties with respect to the subject
matter hereof and contains all of the covenants and Agreements between the parties with respect
thereto. Each party to this Agreement acknowledges that no representations, inducements, or
Agreements, oral or otherwise, have been made by such party, or anyone acting on behalf of such
party, which are not embodied herein, and no other Agreement, statement or promise not contained in
this Agreement shall be valid or binding. The parties hereto have had an opportunity to consult
with their respective attorneys concerning the meaning and the import of this Agreement and each
has read this Agreement, as signified by their signatures below, and is executing the same for the
purposes and consideration herein expressed.

     9.5 Waivers. No delay on the part of any party in exercising any right, power, or
privilege hereunder shall operate as a waiver thereof. Nor shall any waiver on the part of any
party of any such right, power or privilege, nor any single or partial exercise of any such right,
power or privilege, preclude any further exercise thereof or the exercise of any other such right,
power or privilege. The rights and remedies of any party based upon, arising out of or otherwise
in respect of any inaccuracy in or breach by any other party of any representation, warranty,
covenant or Agreement contained in this Agreement shall in no way be limited by the fact that the
act, omission, occurrence or other state of facts upon which any claim of any such inaccuracy or
breach is based may also be the subject matter of any other representation, warranty, covenant or
Agreement contained in this Agreement (or in any other Agreement between the parties) as to which
there is no inaccuracy or breach.

     9.6 Tax Consultation. Each Party acknowledges that it has had the opportunity to and
has consulted with their own separate independent accounting and tax advisors in connection with
the accounting and tax treatment for the transactions contemplated hereby and the tax ramifications
thereof. Each Party shall bear all risk in connection with the accounting and tax treatment of the
transactions contemplated by this Agreement and no Party is relying on the other Party in
connection with the same.

     9.7 Variations in Pronouns. Wherever the context shall so require, all words herein
in the male gender shall be deemed to include the female or neuter gender and vice versa, all
singular words shall include the plural, and all plural words shall include the singular. All
pronouns and any variations thereof refer to the masculine, feminine or neuter, singular or plural,
as the context may require.

      

					
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     9.8 Headings. The headings used in this Agreement are for administrative purposes
only and do not constitute substantive matter to be considered in construing the terms and shall
not affect the interpretation of this Agreement. All references herein to Sections, subsections,
and clauses, shall be deemed references to such parts of this Agreement, unless the context shall
otherwise require. A reference to an article or section will mean an article or section in this
Agreement, unless otherwise explicitly set forth. The titles and headings in this Agreement are
for reference purposes only and will not in any manner limit the construction of this Agreement.
For the purposes of such construction, this Agreement will be considered as a whole. The terms
“including” and “include” as used in this Agreement will be deemed to include the phrase “without
limitation.”

     9.9 Attorney’s Fees and Costs. If any action at law or in equity is necessary to
enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to
reasonable attorneys’ fees, costs, and necessary disbursements, but only from the offending party,
in addition to any other relief to which it may be entitled.

     9.10 Representation by Counsel. Each party acknowledges that it has had the
opportunity to be represented by separate independent counsel in the negotiation of this Agreement,
that any such respective attorneys were of its own choosing, that each authorized representative
has read this Agreement and that he understands its meaning and legal consequences to each party.
Each Party warrants and represents that he has consulted with his attorney of choice, or
voluntarily chose not to do so, concerning the execution, the meaning and the import of this
Agreement, and has read this Agreement and fully understands the terms hereof as signified by his
signature below, and is executing the same of his own free will for the purposes and consideration
herein expressed. Each Party warrants and represents that he has had sufficient time to consider
whether to enter into this Agreement and that he is relying solely on his own judgment and the
advice of his own counsel, if any, in deciding to execute this Agreement. Each Party warrants and
represents that he has read this Agreement in its entirety and has consulted with his attorney, if
any concerning the execution of this Agreement. If any or all Parties have chosen not to seek
counsel, said party or parties hereby acknowledge that he or they refrained from seeking counsel
entirely of his or their own volition and with full knowledge of the consequences of such a
decision.

     9.11 Presumption Against Scrivener. Each party waives the presumption that this
Agreement is presumed to be in favor of the party which did not prepare it, in case of a dispute as
to interpretation.

     9.12 Capacity. Each party represents and warrants that he has the authority to enter
into this Agreement either on his own behalf or in an official capacity on behalf of a corporate
party.

     9.13 Further Assurances. At any time and from time to time after the date hereof, at
the request of any Party, and without further consideration, every other party will execute and
deliver such other and further instruments and documents, and take such other action as the other
Party may reasonably deem necessary, convenient or desirable in order to more effectively assist

      

					
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any Party in exercising all rights with respect thereto, and carrying out the business,
duties, and obligations created by this Agreement.

     9.14 Amendments. This Agreement may not be modified, amended, superceded, cancelled,
renewed or extended, except in writing, signed by the party or parties to be bound thereby or
signed by their respective attorneys.

     9.15 Binding Effect and Assignment. This Agreement and the terms, covenants,
conditions, provisions, obligations, undertakings, rights and benefits hereof, shall be binding
upon, and shall inure to the benefit of, the undersigned parties and their respective heirs,
executors, administrators, representatives, officers, directors, Corporation, successors, agents,
servants, employees, attorneys, and assigns. This Agreement and any rights hereunder are freely
assignable by Investor to the extent that Investor has assigned or sold any Warrant or portion
thereof. This Agreement shall inure to the benefit of and bind the Parties hereto and their
respective legal representatives, successors, and permitted assigns.

     9.16 Counterparts. This Agreement may be executed in several counterparts by one or
more of the undersigned and all such counterparts so executed shall together be deemed and
constitute one final Agreement, as if one document had been signed by all parties hereto; and each
such counterpart shall be deemed an original, binding the parties subscribed hereto and multiple
signature pages affixed to a single copy of this Agreement shall be deemed to be a fully executed
original Agreement. Several counterparts consisting of multiple copies hereof each signed by less
than all parties, but together signed by all parties shall constitute and be deemed a fully
executed original Agreement.

     9.17 Corporate Authority. The Corporation represents and warrants to the Investor
other that it has previously taken the necessary corporate action authorizing the execution of this
Agreement and the undertakings to be accomplished hereunder by its officer recited below.

     IN WITNESS WHEREOF, the undersigned have duly executed this Agreement effective as
of the date first written hereinabove, as evidenced by their respective signatures below.

	 	 	 
	VISEON, INC.

	 	INVESTOR:
	 
	 	 
	/s/ JOHN HARRIS
	 	/s/ HENRY S. MELLON
	 
	 	 
	By: John Harris

	 	Henry S. Mellon
	Its: President
	 	 

      

					
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Exhibit 4.18

SETTLEMENT and RELEASE AGREEMENT

     This Settlement and Release Agreement (this “Agreement”) effective as of March
31, 2005 (the “Effective Date”) is executed and entered into by and between Viseon, Inc.,
f/k/a RSI Systems, Inc., a corporation duly organized and existing pursuant to the laws of the
state of Nevada, including each and all of its previous, current and future subsidiaries, parent
and sister corporations (hereinafter collectively “Viseon”) and Altron, Inc. a corporation duly
organized and existing in good standing pursuant to the laws of the state of Minnesota, including
each and all of its previous, current and future subsidiaries, parent and sister corporations
(hereinafter collectively “Altron”) (hereinafter independently a “Party” and collectively
the “Parties”) for the mutual considerations and purposes herein expressed.

FACTUAL RECITATIONS

     WHEREAS, the Parties entered into that certain written agreement dated on or about the
___day of ___1996, regarding the purchase and delivery of component parts related to the
Videoflyer product previously manufactured by RSI Systems, Inc. (the “Contract”); and

     WHEREAS, In 2001, Altron invoiced RSI Systems, Inc. for amounts totaling
$1,150,000, which included, in addition to charges for components and raw parts, certain “carrying
charges” which were not expressly authorized by the Contract (the “Alleged Account Receivable”);
and

     WHEREAS, Viseon disputed the validity of the Alleged Account Receivable and the amounts of the
invoices of which it was comprised, acknowledging an account payable to Altron of only $575,000,
being the amount of the total liability that Viseon believed it owed to Altron for goods received
in accordance with the Contract; and

     WHEREAS, A justiciable controversy exists with regard to the actual dollar amount of the
liability owed by Viseon to Altron; and

					
	 	 	 	 	 
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     WHEREAS, The parties have not transacted business, pursuant to the Contract or otherwise,
since such time; and

     WHEREAS, Viseon and Altron have agreed to settle this matter in its entirety whereby in
consideration of the extinguishment of the entire Alleged Account Receivable, the termination of
the Contract and a full and final release of all liabilities heretofore and hereafter arising
thereunder, Viseon will issue to Altron 350,000 shares of its common stock and a four-year warrant
to purchase an additional 600,000 shares of its common stock at an exercise price of $1.26 per
share; and

     WHEREAS, Viseon and Altron desire to fully and finally compromise and settle all remaining
obligations owed by each Party to the other Party pursuant to the Contract and all prior business
dealings by entering into this Agreement and granting the releases herein contained.

     NOW, THEREFORE, for and in consideration of valuable consideration heretofore paid, the
consideration set forth herein, the agreements herein contained and the mutual premises hereof, the
receipt and sufficiency of all of which the Parties hereby acknowledge, the Parties agree to the
terms and conditions hereof as more particularly set forth below.

OPERATIVE PROVISIONS

1. Factual Recitations. The Parties acknowledge and agree that statements of fact
contained in the Factual Recitations set forth hereinabove are not mere recitals and that such
statements constitute terms and conditions hereof, the veracity of which the Parties are relying
upon in entering into this Agreement.

2. Intent and Purpose. The Parties are entering into this Agreement for the
purposes of (a) fully settling and resolving all claims that Viseon currently has, has had, or may
have against Altron with respect to all prior dealings between them; (b) fully settling and
resolving all claims that Altron currently has, has had, or may have against Viseon with
respect to all prior dealings between them, (c) terminating the Contract and relieving all

					
	 	 	 	 	 
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parties
of any further obligations with respect thereto, (d) fully and finally satisfying all monetary
obligations Viseon may owe to Altron for the Alleged Account Receivable or otherwise and (e)
confirming that no Party, after further consideration, is desirous of initiating or pursuing any
claims – civil, criminal or regulatory – against any other Party in any forum based upon or
occasioned by any act or omission of any Party occurring on or before the Effective Date.

3. Finality. The Parties have negotiated a full and final compromise and settlement of all
matters and issues now in dispute or which may give rise to any future dispute between them, and
they desire to enter into this Agreement to avoid litigation and to buy peace. By entering into
this Agreement, however, the Parties expressly state that they are not admitting any liability or
fault of any kind to any other Party. This Agreement contains the entire and complete agreement
between the Parties, which shall go into operation upon the delivery to Viseon of an original
counterpart of this Agreement, duly executed by Altron (the “Triggering Event”), but nevertheless
effective as of the Effective Date.

4. Consideration for Altron Release. In consideration of Altron’s full and final release of
Viseon for the Alleged Account Receivable and the general release given by Altron herein, Viseon
shall deliver to Altron the following:

A. VISEON COMMON STOCK

On the Effective Date Viseon agrees to, and hereby does concurrent with the Triggering
Event, sell, transfer and convey to Altron Three Hundred Fifty Thousand (350,000) shares
of duly authorized, validly issued, fully paid and nonassessable Common Stock of Viseon,
par value $0.01 per share, (the “Common Stock”). Viseon shall direct its transfer agent
to issue all such shares in one or more paper share certificates registered in the
following name: “ALAN C. PHILLIPS AND DELORES V. PHILLIPS, TRUSTEES, AND ANY SUCCESSOR
TRUSTEE (S}, OF THE ALAN C. PHILLIPS REVOCABLE TRUST U/A DTD 10-22-93” and to deliver
the same to Altron at the following address: Altron Inc., c/o ALAN C. PHILLIPS, PO BOX
246, ANOKA, MN 55303.

					
	 	 	 	 	 
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B. WARRANTS TO PURCHASE VISEON COMMON STOCK

On the Effective Date Viseon agrees to, and hereby does concurrent with the Triggering
Event, sell, transfer and convey to Altron a warrant entitling Altron to purchase from
the Company up to Six Hundred Thousand (600,000) shares of duly authorized, validly
issued, fully paid and nonassessable Common Stock of the Company, par value $0.01 per
share, at any time for a period of four years, all subject to the terms, conditions and
adjustments as set forth therein (the “Warrant”). Viseon shall issue all such warrants
registered in the following name: “ALAN C. PHILLIPS AND DELORES V. PHILLIPS, TRUSTEES,
AND ANY SUCCESSOR TRUSTEE (S}, OF THE ALAN C. PHILLIPS REVOCABLE TRUST U/A DTD 10-22-93”
and to deliver the same to Altron at the following address: Altron
Inc., c/o ALAN C.
PHILLIPS, PO BOX 246, ANOKA, MN 55303.

5. Consideration for Viseon Release. In consideration of the general release given by
Viseon, Altron shall deliver to Viseon the following:

A. DISCHARGE OF THE ALLEGED ACCOUNT RECEIVABLE.

On the Effective Date Altron agrees to, and hereby does, concurrent with the Triggering
Event, forgive, irrevocably release and forever discharge Viseon of and from any and all
liability and payment obligations on the entire remaining balance of the Alleged Account
Receivable and all obligations arising pursuant to the Contract. As evidence thereof,
Altron shall deliver to Viseon any and all documents and to take all additional actions,
which may be necessary or appropriate to give full force and effect to the discharge of
such indebtedness and the intent of this Agreement.

6. Altron Release. With the exception of the duties and obligations that are set
forth and assumed in this Agreement, each of Altron, and anyone claiming by, through or under him,
fully, irrevocably, and unconditionally releases, acquits, and forever discharges Viseon and its
respective officers, directors, shareholders, employees, agents, attorneys, representatives,
successors, assigns or heirs, servants, insurers, affiliates, subsidiaries and parent companies, of
and from any and all costs, expenses, damages, claims, rights, obligations and causes of action of
any kind whatsoever, of every kind or character, known or unknown, which each of Altron now has,
has had or may have against Viseon
or any such released party, based upon, relating to or arising from any act or failure to

					
	 	 	 	 	 
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act
occurring before the Effective Date, including, without limitation, any and all claims, causes of
action, matters, transactions and demands that could be asserted as a result of, relating to or
arising from the Agreement and all facts and circumstances of the negotiation, execution or
performance thereof and thereunder, (hereinafter collectively referred to as the “Claims”). The
Claims include any and all claims, obligations and theories of recovery of all types and kinds,
whether known or unknown, past, present or future, and which are based solely on facts, actions or
omissions that existed as of the execution of this Agreement, whether contingent, prospective or
matured, whether arising in equity or in law, whether arising under the common law, any contract,
statute or otherwise, recognized by the law of any jurisdiction and shall include, but not be
limited to, causes of action, claims, debts, obligations, actions, demands, liabilities, suits, and
judgments. The aforementioned damages shall be defined as any and all elements of relief or
recovery of whatsoever nature, whether known or unknown, recognized by the law of any jurisdiction
and shall include, but not be limited to, (i) actual damages (whether direct, consequential,
coincidental or otherwise) of every description, such as personal injury, mental anguish, emotional
distress, reputational loss (i.e., libel and slander) and economic loss; (ii) any other item of
loss or injury; (iii) specific performance, (iv) statutory, treble, additional, multiple, penal,
exemplary and/or punitive damages; (v) attorneys’ fees; (vi) pre-judgment or post-judgment or other
interest; (vii) declaratory, injunctive and equitable relief; (viii) expenses; (ix) expert witness
fees; and (x) costs of court (“Damages”). Altron acknowledges and agrees that this release is a
broad, general and unconditional release that should be liberally construed and, by reason of this
release, Altron intends to and does release Viseon from any and all Claims, Damages, obligations,
costs, rights or remedies whatsoever that Altron may have against Viseon.

7. Viseon Release.  With the exception of the duties and obligations set forth
and assumed in this Agreement, each of Viseon, and anyone claiming by, through or under it, hereby
fully, irrevocably and unconditionally releases, acquits, and forever discharges Altron and

					
	 	 	 	 	 
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any of
his respective employees, agents, attorneys, representatives, successors, assigns, heirs, servants,
insurers and affiliates of and from any and all costs, expenses, claims, rights, obligations and
causes of action of any kind whatsoever, of every kind or character, known or unknown, which Viseon
now has, has had or may have against Altron or any such released party based upon, relating to or
arising from any act or failure to act occurring before the Effective Date, including, without
limitation any and all claims, causes of action, matters, transactions and demands that could be
asserted as a result of, relating to or arising from the Agreement and all facts and circumstances
of the negotiation, execution or performance thereof and thereunder, (hereinafter collectively
referred to as the “Claims”). The Claims include any and all claims, obligations and theories of
recovery of all types and kinds, whether known or unknown, past, present or future, and which are
based solely on facts, actions or omissions that existed as of the execution of this Agreement,
whether contingent, prospective or matured, whether arising in equity or in law, whether arising
under the common law, any contract, statute or otherwise, recognized by the law of any jurisdiction
and shall include, but not be limited to, causes of action, claims, debts, obligations, actions,
demands, liabilities, suits, and judgments. The aforementioned damages shall be defined as any and
all elements of relief or recovery of whatsoever nature, whether known or unknown, recognized by
the law of any jurisdiction and shall include, but not be limited to, (i) actual damages (whether
direct, consequential, coincidental or otherwise) of every description, such as personal injury,
mental anguish, emotional distress, reputational loss (i.e., libel and slander) and economic loss;
(ii) any other item of loss or injury; (iii) specific performance, (iv) statutory, treble,
additional, multiple, penal, exemplary and/or punitive damages; (v) attorneys’ fees; (vi)
pre-judgment or post-judgment or other interest; (vii) declaratory, injunctive and equitable
relief; (viii) expenses; (ix) expert witness fees; and (x) costs of court (“Damages”). Viseon
acknowledges and agrees that this release is a broad, general and unconditional release that should
be liberally construed and, by reason of this release, Viseon intends to and does hereby release Altron from any and all Claims,
Damages, obligations, costs, rights or remedies that Viseon may have against Altron.

					
	 	 	 	 	 
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8. Covenants Not to Sue. With the exception of the duties and obligations that
are set forth herein, or imposed by any statute, code, rule, court order, compulsory process or
law, the parties agree and covenant not to sue, prosecute or assist, directly or indirectly, in
suing or prosecuting any claims or seeking recovery of any damages against any other party for any
claims that are released in this Agreement. Altron and Viseon each acknowledge and agree that
pursuant to the terms of this Agreement, any and all claims that either Party could have made
against the other Party have been in all things satisfied and resolved.

9. Acknowledgement of Discharge of the Alleged Account Receivable. Upon receipt of
this Agreement duly executed by Viseon, the Warrant and reasonably satisfactory evidence of
Viseon’s request to its transfer agent that the Common Stock be issued and delivered,
Altron shall, and hereby does, forgive, irrevocably release and forever discharge Viseon of and
from any and all liability and payment obligations on the entire remaining balance outstanding on
the Alleged Account Receivable.

10. Representations. Each party to this Agreement warrants, represents and agrees that it
is fully authorized to enter into this Agreement without the consent of any third party. Each
person signing this Agreement represents and warrants that they have been duly authorized and
empowered to sign this Agreement on behalf of the party which such person purports to represent and
that this Agreement is a lawful and binding obligation of such party.

11. Further Instruments. Each party agrees to execute and deliver such other and further
instruments and will do such other and further acts as may be necessary to carry out more
effectively the provisions and purposes of this Agreement.

					
	 	 	 	 	 
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12. No Extraneous Promises. Each party to this Agreement acknowledges that no
representation, promise, or inducement not herein expressed has been made to it in connection with
this Agreement and that it is not relying upon any representation, promise, or inducement that is
not contained in this Agreement. Each party to this Agreement has been represented by counsel in
connection with the negotiation of this Agreement. Moreover, each party has made its own
investigation of the matters covered by this Agreement to the extent it deemed necessary; no party
will seek to set aside this Agreement on the grounds of fraud or mistake.

13. Presumption against Scrivener. No provision of this Agreement shall be construed
against or interpreted to the disadvantage of any Party hereto by any court or other governmental
or judicial authority by reason of such Party’s having or being deemed to have structured, drafted
or dictated such provision. Each Party to this Agreement acknowledges, recognizes and agrees that
it has had a full and fair opportunity to review and comment on this Agreement, with counsel of its
choice, and to suggest or demand any changes. Accordingly, should any court ever conclude that
there is any ambiguity in this Agreement which the Parties hereto do not foresee but wish to
address, no Party to this Agreement will assert that the ambiguity should be construed against the
other Party because the other Party drafted any such provision in question.

14. Invalid Provisions. Each provision and term of this Agreement is intended to be
separate. If any term, covenant, condition or provision hereof is illegal, invalid or
unenforceable for any reason whatsoever, such illegality, invalidity or unenforceability shall not
affect the legality, validity or enforceability of the remaining parts of this Agreement and all
such remaining parts hereof shall not be impaired or invalidated in any way, but shall be legal,
valid and enforceable and have full force and effect as if the illegal, invalid, unenforceable part
had not been included.

					
	 	 	 	 	 
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15. Entire Agreement. This Agreement, constitutes the complete agreement between the
parties with respect to the subject matter hereof and supersedes all prior agreements, commitments,
understandings, or inducements (either oral or written, expressed or implied) and may not be
modified, altered, or amended except by a written agreement signed by Altron or Viseon, as
applicable. Each party to this Agreement acknowledges that no representations, inducements, or
agreements, oral or otherwise, have been made by any party, or anyone acting on behalf of such
party, which are not embodied herein, and no other agreement, statement or promise not herein
contained shall be valid or binding. The parties hereto have had an opportunity, if so desired, to
consult with their respective attorneys concerning the meaning and the import of this Agreement and
each has read this Agreement, as signified by their signatures below, and is executing the same for
the purposes and consideration herein expressed.

16. Successors and Assigns. This Agreement and the covenants, obligations, undertakings,
rights and benefits hereof shall be binding upon, and shall inure to the benefit of, the Parties
hereto and their respective successors and assigns.

17. Confidentiality. The Parties hereby agree to keep the terms and provisions of this
Agreement confidential; provided, however, that each Party may disclose the terms and provisions of
this Agreement, as may be necessary, to their auditors, bankers and attorneys and in any judicial
proceeding brought by such Party to enforce this Agreement or which involves issues to which this
Agreement is relevant or required by law.

18. Counterparts. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be deemed to be an original, and all of which taken
together shall constitute one final agreement as if signed by all Parties. In making proof of this
Agreement, it shall not be necessary to produce or account for more than one counterpart. A
facsimile or photocopy of an executed counterpart of this

					
	 	 	 	 	 
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Agreement shall be sufficient to bind any Party or Parties whose signature appears thereon and
delivery of an executed counterpart of a signature page to this Agreement by facsimile transmission
shall be effective as delivery of a manually executed counterpart thereof.

19. Headings. The headings used in this Agreement are for administrative purposes only and
do not constitute substantive matter to be considered in construing the terms and shall not affect
the interpretation of this Agreement. The titles and headings in this Agreement are for reference
purposes only and will not in any manner limit the construction of this Agreement. For the
purposes of such construction, this Agreement will be considered as a whole. The terms “including”
and “include” as used in this Agreement will be deemed to include the phrase “without limitation”.

20. Attorney’s Fees and Costs. If any action at law or in equity is necessary to enforce
or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs, and necessary disbursements from the offending party, in addition to any
other relief to which it may be entitled.

21. Notices. All notices, requests, demands, waivers, consents and other
communications required or permitted to be given hereunder shall be (a) in writing; (b) delivered
either in person, by facsimile transmission, by telegraphic or other electronic means, by overnight
air courier guaranteeing next day delivery or by certified, registered or express mail, in each
such case with all costs, fees, charges and/or postage prepaid and (c) directed to each respective
party at the following addresses (or at such other address as shall have been previously given in
writing in accordance with the terms hereof by any party hereto):

If to Viseon:

Viseon, Inc.

Attention: President

545 E. John Carpenter Freeway, Suite 1430

Irving, Texas 75062

					
	 	 	 	 	 
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If to Altron:

Altron, Inc.

Attention: President

6700 Bunker Lake Blvd. NW

Anoka, MN 55303-4595

Any party may be given notice in accordance with this Section by any other party at another address
or by delivery to another person designated for receipt of notices, if such party so designates
such other person or address in writing in accordance with this Section 21. All notices shall be
deemed to have been served, duly given and become effective: (a) immediately upon receipt if
delivered by hand, ground courier or personal delivery on any business day prior to 5:00 p.m.,
local time or on the next succeeding Business Day if delivered on a non-business day or after 5:00
p.m., local time; (b) four (4) hours from the time of transmission with confirmed receipt at its
destination on any business day prior to 5:00 p.m., local time if delivered by facsimile, telex,
telecopy or other telegraphic or electronic means or on the next succeeding Business Day if receipt
at its destination is on a non-business day or after 5:00 p.m., local time subject to verification
by the sender of the transmission report confirming receipt; (c) one Business Day after having been
timely delivered to an air courier for guaranteed overnight delivery or (d) five Business Days
after having been deposited with the United States Postal Service as certified or registered mail,
return receipt requested.

22. Governing Law. IT IS UNDERSTOOD AND AGREED THAT THIS AGREEMENT SHALL BE GOVERNED BY,
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND SUBJECT TO, THE LAWS OF THE STATE OF TEXAS WITHOUT
GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD RESULT IN THE
APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN TEXAS. THE PARTIES STIPULATE THAT VENUE FOR
ANY

					
	 	 	 	 	 
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ACTION, SUIT OR OTHER PROCEEDING SHALL BE MANDATORY IN DALLAS COUNTY TEXAS AND THAT THE DISTRICT
COURTS OF DALLAS COUNTY TEXAS SHALL HAVE EXCLUSIVE JURISDICTION OF ANY SUCH ACTION, SUIT OR OTHER
PROCEEDING.

23. Waiver of Jury Trial. EACH PARTY HEREBY KNOWINGLY, INTENTIONALLY AND VOLUNTARILY
WAIVES, RELINQUISHES AND FOREVER FORGOES THE RIGHT TO A TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER
PROCEEDING BASED UPON, ARISING OUT OF OR IN ANY WAY RELATING TO THIS AGREEMENT INCLUDING ANY
AMENDMENTS HEREOF, OR ANY OF THE TRANSACTIONS CONTEMPLATED BY OR RELATED TO THIS AGREEMENT OR ANY
CONDUCT, ACT OR OMISSION OF THE PARTIES OR THEIR AFFILIATES (OR ANY OF THEM) WITH RESPECT TO THIS
AGREEMENT, INCLUDING ANY AMENDMENTS, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, REGARDLESS OF
WHICH PARTY INITIATES SUCH ACTION, SUIT OR OTHER PROCEEDING; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH ACTION, SUIT OR OTHER PROCEEDING SHALL BE DECIDED BY A COURT TRIAL WITHOUT A
JURY, AND THAT EITHER PARTY MAY FILE A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF
THE CONSENT OF THE OTHER TO THE WAIVER OF ANY RIGHT IT OR THEY MIGHT OTHERWISE HAVE TO A TRIAL BY
JURY.

					
	 	 	 	 	 
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IN
WITNESS WHEREOF, the parties hereto have signed this Agreement effective as of the day and year
set forth above.

	 	 	 
	Viseon, Inc.

	 	Altron, Inc
	 

	 	 
	 

	 	 
	/s/ JOHN HARRIS
	 	/s/ ALAN C. PHILLIPS
	 
	 	 
	By: John Harris

	 	By: Alan C. Phillips
	President and Chief Executive Officer

	 	President and Chief Financial Officer

					
	 	 	 	 	 
	settlement and release agreement
	 	Page 13
	 	 

 

 

ACKNOWLEDGEMENT

	 	 	 	 	 
	STATE OF MINNESOTA

	 	§
	 	 
	 

	 	§	 	 
	COUNTY OF                                         

	 	§	 	 

BEFORE ME,
the undersigned authority, on this day personally appeared ALAN C. PHILLIPS
known to me to be the person whose name is subscribed to the foregoing instrument and acknowledged
to me that he is the President, Chief Financial Officer and Chief Executive Officer of Altron,
Inc., that he is authorized to execute the foregoing instrument on behalf of Altron, Inc., and that
he executed the foregoing instrument for the purposes and consideration and in the capacity therein
stated.

GIVEN UNDER MY HAND AND SEAL OF OFFICE, this ___day of June 2005.

	 	 	 	 	 
	 	 	 
	 	
 	 
	 	Notary Public, State of Minnesota 	 
	 	 	 
	 

					
	 	 	 	 	 
	settlement and release agreement
	 	Page 14

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