Document:

Exhibit
4.3.1

 

CONVIO,
INC.

AMENDMENT NO. 1 TO 

FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT

 

THIS AMENDMENT NO. 1 TO
FIFTH AMENDED AND RESTATED INVESTORS’ RIGHTS AGREEMENT (this “Amendment”), which amends that
certain Fifth Amended and Restated Investors’ Rights Agreement, dated April 10,
2007 (the “Investor Rights Agreement”),
is made and entered into as of January     , 2008 by
and among Convio, Inc., a Delaware corporation (the “Company”),
each of those holders of the Company’s Series P Common Stock, Series Q
Common Stock, Series R Common Stock, and Series S Common Stock, each
with a par value $0.001 per share (collectively, the “Common Stock”),
identified on Schedule I to the Investor Rights Agreement (individually,
a “Common Holder,”
and collectively, the “Common
Holders “), each of the holders of the Company’s Series A
Convertible Preferred Stock, Series B Convertible Preferred Stock and Series C
Convertible Preferred Stock, each with a par value of $0.001 per share, or
shares of the Company’s capital stock issuable upon conversion thereof
(collectively, the “Preferred
Stock”), listed on Schedule II to the Investor Rights
Agreement (individually, a “Preferred Holder” and collectively, the “Preferred Holders”).

 

RECITALS

 

WHEREAS, Section 22
of the Investor Rights Agreement sets forth the rights of the Common Holders
and Preferred Holders with respect to the election of the members of the Board
of Directors of the Company (the “Board”);

 

WHEREAS, the Common
Holders and Preferred Holders desire to amend the Investor Rights Agreement to
increase the size of the Board from seven to nine members, and to add certain
provisions regarding the election of such new members of the Board;

 

WHEREAS, Section 29
of the Investor Rights Agreement provides that Section 22 thereof
may only be amended with the written consent of each party or group of parties
that such amendment would adversely affect;

 

WHEREAS, the Sixth
Amended and Restated Certificate of Incorporation of the Company requires that
the holders of at least two-thirds of the then outstanding shares of Preferred
Stock, together as a single class, consent to a change in the authorized size
of the Board to a number greater or less than seven;

 

WHEREAS,  the undersigned, holding the requisite amount of stock
necessary to amend the Investor Rights Agreement, desire to amend the Investor
Rights Agreement as provided herein; and

 

WHEREAS, the
undersigned Preferred Holders, holding the requisite amount of Preferred Stock
necessary to consent to the increase in the size of the Board from seven to
nine members, desire to consent to such increase.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing, the mutual
covenants herein contained and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereby
agree as follows:

 

 

1.             Amendments.

 

(a)           The Section 22(vi) of
the Investor Rights Agreement is hereby amended and restated to read as
follows:

 

“(vi)        two (2) persons who initially shall be
designated by the existing Board of Directors, and who, starting at the next
annual meeting of the stockholders of the Company, shall be elected in
accordance with the certificate of incorporation and bylaws of the Company; and”

 

(b)           A new Section 22(vii) is hereby added
to the Investor Rights Agreement to read as follows:

 

“(vii)       after the date hereof, the Board of Directors shall
undertake the process of identifying one (1) person approved by a majority
of the existing Board of Directors, including the approval of at least one of
the Series P Directors and the QRS Director, who shall have relevant
experience in the industry and have no affiliation with the Company and who
shall replace one (1) Series P Director (the “Industry Director”)
(and the entity previously entitled to designate such Series P Director
shall no longer retain such right. 
Thereafter, the Industry Director shall be designated by a majority of
the existing Board of Directors, including the approval of at least one of the Series P
Directors and the QRS Director, who shall have relevant experience in the
industry and have no affiliation with the Company.

 

Each
of the parties further covenants and agrees to vote, to the extent possible,
all Shares so that the authorized number of members of the Company’s Board of
Directors shall consist of nine (9) members.

 

In
the absence of any designation from the persons or groups so designating
directors as specified above, the director previously designated by them and
then serving shall be re-elected if still eligible to serve as provided herein.

 

No
party hereto shall vote to remove any member of the Board of Directors
designated in accordance with the aforesaid procedure unless the persons or
groups so designating directors as specified above so vote, and, if such
persons or groups so vote then the non-designating party or parties shall
likewise so vote.  In the event that the
person serving as the director to be elected as the CEO Director ceases to
serve as the Chief Executive Officer of the Company, each of the parties hereto
agrees to vote all of its Shares for the removal of such director at the
request of a majority of the Board of Directors, excluding the director to be
removed.

 

The
rights set forth in this Section 22 shall expire upon the first
sale of Common Stock pursuant to a registration statement under the Securities
Act.”

 

2.             Consent.  Each Preferred Holder hereby consents to the
increase in the size of the Board from seven to nine members.

 

3.             Counterparts.  This Amendment may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

2

 

4.             Titles and Subtitles.  The titles and subtitles used in this Amendment
are used for convenience only and are not to be considered in construing or
interpreting this Amendment.

 

5.             Entire Agreement.  The Investor Rights Agreement, as modified by
this Amendment, and the documents referred to herein and therein constitute the
entire agreement among the parties in respect of the subject matter hereof and
thereof and no party shall be liable or bound to any other party in any manner
by any warranties, representations or covenants except as specifically set
forth herein or therein.

 

[Signature
Pages Follow]

 

3

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date set forth above.

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  CONVIO, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Gene Austin

  
	
   

  	
   

  	
  Gene Austin

  
	
   

  	
   

  	
  Chief Executive Officer

  

 

 

IN WITNESS WHEREOF, the
undersigned have executed this Amendment as of the date set forth above.

 

 

	
   

  	
  COMMON
  HOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Vinay
  Bhagat

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David
  Crooke

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/
  Gene Austin

  
	
   

  	
  Gene
  Austin

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jim Offerdahl

  
	
   

  	
  Jim
  Offerdahl

  

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
set forth above.

 

 

	
   

  	
  COMMON
  HOLDERS (continued):

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/Sheeraz
  Haji

  
	
   

  	
  Sheeraz
  Haji

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  William
  Pease

  

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of the date set forth above.

 

	
   

  	
  PREFERRED HOLDERS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ADAMS STREET V, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Adams Street Partners, LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Jeffrey T. Diehl

  
	
   

  	
   

  	
  Jeffrey T. Diehl

  
	
   

  	
   

  	
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EL DORADO VENTURES VI, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Irwin

  
	
   

  	
  Name:

  	
  Scott Irwin

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EL DORADO TECHNOLOGY ’01, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Irwin

  
	
   

  	
  Name:

  	
  Scott Irwrin

  
	
   

  	
  Title:

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  REMBRANDT VENTURES PARTNERS II,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  REMBRANDT VENTURES PARTNERS II,
  L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of the date set forth above.

 

	
   

  	
  PREFERRED HOLDERS (continued):

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GRANITE VENTURES, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Granite Management, L.L.C.,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jackie Berterretche

  
	
   

  	
  Name:

  	
  Jackie Berterretche

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ADOBE VENTURES IV, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Adobe Ventures Management IV, LLC

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jackie Berterretche

  
	
   

  	
  Name:

  	
  Jackie Berterretche

  
	
   

  	
  Title:

  	
  Attorney-in-Fact

  

 

 

IN WITNESS WHEREOF, the undersigned have executed this
Amendment as of the date set forth above.

 

	
   

  	
  PREFERRED HOLDERS (continued):

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AUSTIN VENTURES VI, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  AV Partners VI, LP,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ken DeAngelis

  
	
   

  	
  Name:

  	
  Ken DeAngelis

  
	
   

  	
  Title:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  AUSTIN VENTURES VI

  
	
   

  	
  AFFILIATES FUND, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  AV Partners VI, LP,

  
	
   

  	
   

  	
  Its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ken DeAngelis

  
	
   

  	
  Name:

  	
  Ken DeAngelis

  
	
   

  	
  Title:

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SILVERTON PARTNERS III, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William Wood

  
	
   

  	
   

  	
  William Wood

  
	
   

  	
   

  	
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LIBERTY MUTUAL INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Ronald D. Ulich

  
	
   

  	
   

  	
  Vice President

  

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
set forth above.

 

	
   

  	
  LMIA
  COINVESTMENT L.P.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:
  :

  	
  /s/
  Ronald D. Ulich

  
	
   

  	
   

  	
  Ronald
  D. Ulich

  
	
   

  	
   

  	
  Vice
  President

  

 

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of
the date set forth above.

 

 

	
   

  	
  /s/
  Sheeraz Haji

  
	
   

  	
  Sheeraz
  Haji

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Pete
  Kirkwood

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Robert
  Epstein

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  James
  Pooley

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Samuel
  Kingsland

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lisa
  Gansky

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Cristina
  Morgan

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  David
  Golden

  
	
   

  	
  Wilner
  Trust

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Nicholas
  Allen

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Mary
  KrackelerExhibit
4.4

 

THIS WARRANT AND THE
SHARES ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED
WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE
144 OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE CORPORATION AND ITS
COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.

 

WARRANT TO
PURCHASE PREFERRED STOCK

 

	
  Issuer:

  	
  CONVIO, INC., a
  Delaware corporation

  
	
  Number of Shares:

  	
  up to 60,290 Shares (or
  as otherwise determined in Section 1 below)

  
	
  Class of Stock:

  	
  Series D
  Convertible Preferred Stock, $.001 par value

  
	
  Exercise Price:

  	
  $1.65865 per Share

  
	
  Issue Date:

  	
  March 31, 2006

  
	
  Expiration Date:

  	
  The earlier to occur of (i) the tenth
  anniversary of the Issue Date or (ii) the fifth anniversary of the
  closing of the first public offering of the Company’s Common Stock under
  terms and conditions that require automatic conversion of the Series D
  Preferred Stock into Common Stock.

  

 

THIS WARRANT CERTIFIES THAT,
for the agreed upon value of $1.00 and for other good and valuable
consideration, including the execution and delivery of that certain Master
Lease Agreement No. CONVX dated as of March 15, 2006 (the “Lease”),
this Warrant is issued to ATEL VENTURES, INC., as Trustee under a Trust
Agreement dated as of July 20, 2004 among Trustee and its affiliates, as
Trustors, with respect to the percentage and number of warrant shares held in
trust for the respective Trustor, as set forth on Exhibit A to the Trust Agreement,
(“Holder”) by CONVIO, INC., a Delaware corporation (the “Company”).

 

1.     ISSUANCE.

 

Subject to the
terms and conditions hereinafter set forth, the Holder is entitled upon
surrender of this Warrant and the duly executed Notice of Exercise annexed hereto
as Appendix 1, at the office of the Company, 11921 N. Mopac Expressway, Suite 200,
Austin, TX 78759, or such other office as the Company shall notify the Holder
of in writing, to purchase from the Company up to 60,290 shares of fully paid
and non-assessable shares (the “Shares”) of the Company’s Series D
Convertible Preferred Stock, $.001 par value per share (“Preferred Stock”), at
a purchase price per Share of $1.65865 (the “Exercise Price”); provided
however, if at any time the Company has received less than $2,000,000 in
Advances pursuant to the Lease and requests additional Advances thereunder, if
Holder does not make such additional Advances to Borrower for any reason, the
number of shares for which this Warrant shall be exercisable shall thereafter
be the number determined by multiplying 60,290 by a fraction, the numerator of
which shall be the total amount of Advances made to Borrower under the Lease
and the denominator of which shall be $2,000,000.  This Warrant may be exercised in whole or in part
at any time and from time to time until 5:00 PM, Pacific time, on the
Expiration Date set forth above, and shall be void thereafter.  Until such time as this Warrant is exercised
in full or expires, the Exercise Price and the Shares are subject to adjustment
from time to time as hereinafter provided.

 

1

 

2.     EXERCISE

 

(a)   Method of
Exercise.  Holder may exercise this
Warrant by delivering this Warrant together with a duly executed Notice of
Exercise in substantially the form attached as Appendix 1 hereto to
the principal office of the Company. 
Unless Holder is exercising the conversion right set forth in Section 2(b),
Holder shall also deliver to the Company a check for the aggregate Exercise
Price for the Shares being purchased.

 

(b)   Conversion
Right.  In lieu of exercising this
Warrant as specified in Section 2(a), Holder may from time to time convert
this Warrant, in whole or in part, into a number of Shares determined as
follows:

	
   

  	
  X = Y(A-B)

  	
   

  
	
   

  	
   

  	
  A

  	
   

  
				

 

	
  where:

  	
   

  
	
   

  	
  X = the number of
  Shares to be issued to the Holder.

  
	
   

  	
   

  
	
   

  	
  Y= the number of Shares
  with respect to which this Warrant is being exercised. 

  
	
   

  	
   

  
	
   

  	
  A=
  the Fair Market Value (as determined pursuant to Section 2 (c) below) of one
  Share. 

  
	
   

  	
   

  
	
   

  	
  B= the Exercise Price.

  

 

(c)   Fair Market Value.

 

(i)            If shares of Common Stock are traded
on a nationally recognized securities exchange or over the counter market, the
fair market value of one Share shall be the average closing price of a share of
Common Stock over the five day trading period immediately preceding the date of
Holder’s Notice of Exercise to the Company (or such lesser number of trading
days as the stock has been publicly traded). Notwithstanding the foregoing, in
the event the Warrant is exercised in connection with and not later than the
Company’s initial public offering of Common Stock, the fair market value per
share shall be the product of (i) the per share offering price to the
public of the Company’s initial public offering, and (ii) the number of
Shares of Common Stock into which each share of Preferred Stock is convertible
at the time of exercise.

 

(ii)           If shares of Common Stock are not
traded on a nationally recognized securities exchange or over the counter
market, the Board of Directors of the Company shall determine the fair market
value of a share of Common Stock in its reasonable good faith judgment. The
foregoing notwithstanding, if Holder advises the Board of Directors in writing
that Holder disagrees with such determination, then the Company and Holder
shall promptly agree upon a reputable investment banking firm to undertake such
valuation. If the valuation of such investment banking firm is greater than
that determined by the Board of Directors by five percent (5%) or more, then
all fees and expenses of such investment banking

 

2

 

firm shall be paid by
the Company. In all other circumstances, such fees and expenses shall be paid
by Holder. The determination of any such investment banking firm shall be
conclusive in any event.

 

(d)   Delivery of
Certificate and New Warrant. Promptly after Holder exercises or converts
this Warrant, the Company shall deliver to Holder certificates for the Shares
acquired and, if this Warrant has not been fully exercised or converted and has
not expired, a new Warrant representing the right to purchase the Shares not so
acquired.

 

(e)   Replacement
of Warrants. On receipt of evidence reasonably satisfactory to the Company
of the loss, theft, destruction or mutilation of this Warrant and, in the case
of loss, theft or destruction, on delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company or, in the case of mutilation,
on surrender and cancellation of this Warrant, the Company at its expense shall
execute and deliver, in lieu of this Warrant, a new warrant of like tenor.

 

(f)    Assumption
on Sale, Merger, or Consolidation of the Company.

 

(i)            “Acquisition”. For the
purpose of this Warrant, “Acquisition” means any sale, transfer, exclusive
license, or other disposition of all or substantially all of the assets of the
Company, or any acquisition, reorganization, consolidation or merger of the
Company where the holders of the Company’s outstanding voting equity securities
immediately prior to the transaction beneficially own voting equity securities
representing less than 50.01% of the voting power the surviving or successor
entity immediately following the transaction.

 

(ii)           Assumption of Warrant. Upon
the closing of any Acquisition, the successor or surviving entity shall assume
the obligations of this Warrant, and this Warrant shall be exercisable for the
same securities and property as would be payable for the Shares issuable upon
exercise of the unexercised portion of this Warrant as if such Shares were
outstanding on the record date for the Acquisition and subsequent closing. The
Exercise Price shall be adjusted accordingly, and the Exercise Price and number
and class of Shares shall continue to be subject to adjustment from time to time
in accordance with the provisions hereof.

 

(iii)          Purchase Right. Notwithstanding
the foregoing, upon the closing of any Acquisition, in connection with and
effective upon the closing of any Acquisition, the Company shall have the right
to purchase the unexercised portion of this Warrant for cash for an amount
equal to (a) three (3) times the aggregate Exercise Price of the
Shares, less (b) the aggregate Exercise Price of the Shares.

 

(g)   Conversion or
Redemption of Series D Preferred Stock. Should all of the Company’s Series D
Preferred Stock be, or if outstanding would be, at any time prior to the
expiration of the Warrant or any portion thereof, redeemed or converted into
shares of the Company’s Common Stock in accordance with Section 3 of the
Charter, as hereinafter defined, then this Warrant shall become exercisable
following such event for that number of shares of the Common Stock that would
have been received if this Warrant had been exercised in full and the Series D
Preferred Stock received thereupon had been simultaneously converted
immediately prior

 

3

 

to
such event, and the Exercise Price shall immediately be adjusted to equal the
quotient obtained by dividing (x) the aggregate Exercise Price of the
maximum number of shares of Series D Preferred Stock for which this
Warrant was exercisable immediately prior to such conversion or redemption, by (y) the
number of shares of Common Stock for which this Warrant is exercisable
immediately after such conversion or redemption. For purposes of the forgoing,
the “Charter” shall mean the Fourth Amended and Restated Certificate of
Incorporation of Convio, Inc. as amended and /or restated and effective
immediately prior to the redemption or conversion of all of the Company’s Series D
Preferred Stock.

 

3.     ADJUSTMENTS.

 

(a)   Stock
Dividends, Splits, Etc. If the Company declares or pays a dividend on the
outstanding shares of Preferred Stock, payable in Common Stock or other
securities, or subdivides the outstanding Preferred Stock into a greater amount
of Preferred Stock, then upon exercise of this Warrant, for each Share
acquired, Holder shall receive, without additional cost to Holder, the total
number and kind of securities to which Holder would have been entitled had
Holder owned the Shares of record as of the date the dividend or subdivision
occurred. If the outstanding Preferred Stock is subdivided into a greater
number of shares, the Exercise Price shall be proportionately decreased and the
number of Shares shall be proportionately increased.

 

(b)   Reclassification,
Exchange or Substitution. Upon any reclassification, exchange,
substitution, or other event that results in a change of the number and/or
class of the securities issuable upon exercise or conversion of this Warrant,
Holder shall be entitled to receive, upon exercise or conversion of this
Warrant, the number and kind of securities and property that Holder would have
received for the Shares if this Warrant had been exercised immediately before
such reclassification, exchange, substitution, or other event. The Company or
its successor shall promptly issue to Holder a new Warrant for such new
securities or other property. The new Warrant shall provide for adjustments
which shall be as nearly equivalent as may be practicable to the adjustments
provided for in this Section 3 including, without limitation, proportional
adjustments to the Exercise Price and to the number of securities or property
issuable upon exercise of the new Warrant. The provisions of this Section 3(b) shall
similarly apply to successive reclassifications, exchanges, substitutions, or
other events.

 

(c)   Adjustments
for Combinations, Etc. If the outstanding shares of Common Stock are
combined or consolidated, by reclassification or otherwise, into a lesser
number of shares, the Exercise Price shall be proportionately increased and the
number of Shares shall be proportionately decreased.

 

(d)   No Impairment.
The Company shall not, by amendment of its Certificate of Incorporation or
by-laws, or through a reorganization, transfer of assets, consolidation,
merger, dissolution, issue, or sale of securities or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed under this Warrant by the Company, but shall
at all times in good faith assist in carrying out of all the provisions of this
Section 3 and in taking all such action as may be necessary or appropriate
to protect Holder’s rights under this Article against impairment.

 

(e)   Fractional
Shares. No fractional Shares shall be issuable upon exercise or conversion
of the Warrant and the number of Shares to be issued shall be rounded down to
the

 

4

 

nearest
whole Share. If a fractional Share interest arises upon any exercise or
conversion of this Warrant, the Company shall eliminate such fractional Share
interest by paying Holder an amount computed by multiplying such fractional
interest by the Fair Market Value (determined in accordance with Section 2(c) above)
of one Share.

 

(f)    Certificate
as to Adjustments. Upon each adjustment of the Exercise Price, number of
Shares or class of security for which this Warrant is exercisable, the Company
at its expense shall promptly compute such adjustment, and furnish Holder with
a certificate of its chief financial officer setting forth such adjustment and
the facts upon which such adjustment is based. The Company shall, upon written
request, furnish Holder a certificate setting forth the Exercise Price, number
of Shares class of security for which this Warrant is exercisable in effect
upon the date thereof and the series of adjustments leading to such Exercise
Price, number of Shares and class of security.

 

(g)   Issuance of
Additional Shares. In the event that the Company shall issue shares of its
capital stock at a price less than the Exercise Price after the date hereof,
the price at which the Shares may be converted into the Company’s Common Stock
shall be subject to the same adjustment, if any, to the price at which the
Company’s Series D Preferred Stock may be converted into the Company’s
Common Stock provided in the Company’s Charter. The Company shall give Holder
prior written notice of the issuance of stock occurring after the Issue Date,
including the price at which the stock is to be sold the number of shares to be
issued.

 

4.     REPRESENTATIONS AND COVENANTS OF THE
COMPANY.

 

(a)   Representations
and Warranties. The Company hereby represents and warrants to Holder as
follows:

 

(i)            All Shares which may be issued upon
the due exercise of this Warrant shall, upon issuance and payment of the
Exercise Price, be duly authorized, validly issued, fully paid and
non-assessable, and free of any liens and encumbrances except for restrictions
on transfer provided for herein or under applicable federal and state
securities laws.

 

(ii)           Appendix 2 sets forth all of
the outstanding shares of common stock and preferred stock and outstanding
options, warrants, convertible securities, convertible debentures, and rights
to acquire, subscribe for, and/or purchase any Common Stock, preferred stock
and/or other capital stock of the Company or any securities or debentures
convertible into or exchangeable for Common Stock, preferred stock and/or other
capital stock of the Company (other than preemptive rights afforded the holders
of capital stock as set forth in the Company’s Third Amended and Restated
Investors’ Rights Agreement dated July 2, 2004 (as amended and restated
from time to time, the “Rights Agreement”)).

 

(iii)          The Company covenants that it shall at
all times cause to be reserved and kept available out of its authorized and
unissued shares such number of shares of its Preferred Stock and other
securities as will be sufficient to permit the exercise in full of this Warrant
and the conversion or exchange of such Preferred Stock into or for such other
securities.

 

(iv)          The execution and delivery by the
Company of this Warrant and the performance of all obligations of the Company
hereunder, including the issuance to Holder of the right to acquire the shares
of Preferred Stock, have been duly authorized by all necessary corporate action
on the part of the Company, and the Lease and this

 

5

 

Warrant are not
inconsistent with the Company’s Charter or By-laws, do not contravene any law
or governmental rule, regulation or order applicable to it, do not and will not
contravene any provision of, or constitute a default under, any indenture,
mortgage, contract or other instrument to which it is a party or by which it is
bound, and the Lease and this Warrant Agreement constitute legal, valid and
binding agreements of the Company, enforceable in accordance with their
respective terms.

 

(v)           No consent or approval of, giving of
notice to, registration with, or taking of any other action in respect of any
state, Federal or other governmental authority or agency is required with
respect to the execution, delivery and performance by the Company of its
obligations under this Warrant, except for the filing of notices pursuant to
Regulation D under the 1933 Act and any filing required by applicable state
securities law, which filings will be effective by the time required thereby.

 

(b)   Notice of Certain Events. If the
Company proposes at any time (a) to declare any dividend or distribution
upon its Common Stock, whether in cash, property, stock, or other securities
and whether or not a regular cash dividend; (b) to offer for subscription
pro rata to the holders of Common Stock any additional shares of stock of any
class or series or other rights; (c) to effect any reclassification or
recapitalization of its Common Stock; (d) to merge or consolidate with or
into any other corporation, or sell, lease, license, or convey all or
substantially all of its assets, or to liquidate, dissolve or wind up; or (e) offer
holders of registration rights the opportunity to participate in an
underwritten public offering of the company’s securities for cash, then, in
connection with each such event, the Company shall give Holder (1) at
least 20 days prior written notice of the date on which a record will be
taken for such dividend, distribution, or subscription rights (and specifying
the date on which the holders of securities of the Company shall be entitled to
receive such dividend, distribution or rights) or for determining rights to
vote, if any, in respect of the matters referred to in (c) and (d) above;
(2) in the case of the matters referred to in (c) and (d) above
at least 20 days prior written notice of the date when the same will take
place (and specifying the date on which the holders of securities of the
Company will be entitled to exchange their securities of the Company for
securities or other property deliverable upon the occurrence of such event); and
(3) in the case of the matter referred to in (e) above, the same
notice as is given to the holders of such registration rights.

 

(c)   Information
Rights. So long as the Holder holds this Warrant and/or any of the Shares,
the Company shall deliver to the Holder (a) promptly after mailing, copies
of all notices or other written communications to the shareholders of the
Company, (b) within one-hundred and twenty (120) days after the end of
each fiscal year of the Company, the annual audited financial statements of the
Company certified by independent public accountants of recognized standing and (c) such
other financial statements required under and in accordance with any loan
documents between Holder and the Company or if there are no such requirements
(or if the subject loan(s) no longer are outstanding), then within
forty-five (45) days after the end of each of the first three quarters of each
fiscal year, the Company’s quarterly, unaudited financial statements.

 

(d)           Registration Under Securities Act
of 1933, as amended. Upon exercise of the Warrant, the holder of the Shares
shall have certain registration rights as set forth in the Rights Agreement. The
Company agrees to amend the Rights Agreement to make Holder a party thereto
solely with respect to such registration rights. The Company represents and
warrants

 

6

 

to Holder that the Company’s execution, delivery and
performance of such Rights Agreement (a) has been duly authorized by all
necessary corporate action of the Company’s Board of Directors and
shareholders, (b) does not and will not violate the Company’s Certificate
of Incorporation or By-laws, each as amended, (c) does not and will not
violate or cause a breach or default (or an event which with the passage of
time or the giving of notice or both, would constitute a breach or default)
under any agreement, instrument, mortgage, deed of trust or other arrangement
to which the Company is a party or to or by which it or any of its assets is
subject or bound, and (d) does not require the approval, consent or waiver
of or by any shareholder, registration rights holder or other third party which
approval, consent or waiver has not been obtained as of the date of issuance of
this Warrant.]

 

5.     MISCELLANEOUS.

 

(a)   Automatic Conversion upon Expiration. In
the event that, upon the Expiration Date, the Fair Market Value of one Share
(or other security issuable upon the exercise hereof) as determined in
accordance with Section 2(c) above is greater than the Exercise Price
in effect on such date, then this Warrant shall automatically be deemed on and
as of such date to be converted pursuant to Section 2(b) above as to
all Shares (or such other securities) for which it shall not previously have
been exercised or converted, and the Company shall promptly deliver a
certificate representing the Shares (or such other securities) issued upon such
conversion to the Holder.

 

(b)   Legends. This
Warrant and the Shares (and the securities issuable, directly or indirectly,
upon conversion of the Shares, if any) shall be imprinted with a legend in
substantially the following form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE
REGISTRATION THEREOF UNDER SUCH ACT OR PURSUANT TO RULE 144 OR AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL THAT SUCH
REGISTRATION IS NOT REQUIRED.

 

(c)   Compliance
with Securities Laws on Transfer. This Warrant and the Shares (and the
securities issuable, directly or indirectly, upon conversion of the Shares, if
any) may not be transferred or assigned in whole or in part without compliance
with applicable federal and state securities laws by the transferor and the
transferee (including, without limitation, the delivery of investment
representation letters). The Company shall not require Holder to provide an
opinion of counsel if the transfer is to an affiliate of Holder or if (a) there
is no material question as to the availability of current information as
referenced in Rule 144(c), (b) Holder represents that it has complied
with Rule 144(d) and (e) in reasonable detail, (c) the
selling broker represents that it has complied with Rule 144(f), and (d) the
Company is provided with a copy of Holder’s notice of proposed sale.

 

(d)   Transfer
Procedure. Subject to the provisions of Section 5(c), Holder may
transfer all or part of this Warrant and/or the Shares issuable upon exercise
of this Warrant (or the securities issuable, directly or indirectly, upon
conversion of the Shares, if any) at any time to

 

7

 

ATEL Venture Fund, LLC, or to any other affiliate of Holder by giving the Company
notice of the portion of the Warrant being transferred setting forth the name,
address and taxpayer identification number of the transferee and surrendering
this Warrant to the Company for reissuance to the transferee(s) (and
Holder if applicable).

 

(e)   Notices. All
notices and other communications from the Company to the Holder, or vice versa,
shall be deemed delivered and effective when given personally or sent by
electronic facsimile transmission, express overnight courier service, or mailed
by first-class registered or certified mail, postage prepaid, at such address
as may have been furnished to the Company or the Holder, as the case may be, in
writing by the Company or such holder from time to time, but in all cases,
unless instructed in writing otherwise, the Company shall deliver a copy of all
notices to Holder at  600
California Street, 6th Floor, San Francisco
CA 94108, Attention: General Counsel.

 

(f)    Waiver. This
Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement
of such change, waiver, discharge or termination is sought.

 

(h)   Remedies.
In the event of any default hereunder, the non-defaulting party may proceed to
protect and enforce its rights either by suit in equity and/or by action at law,
including but not limited to an action for damages as a result of any such
default, and/or an action for specific performance for any default where Holder
will not have an adequate remedy at law and where damages will not be readily
ascertainable. The Company expressly agrees that it shall not oppose an
application by the Holder or any other person entitled to the benefit of this
Warrant requiring specific performance of any or all provisions hereof or
enjoining the Company from continuing to commit any such breach of this
Warrant.

 

(i)    Attorneys Fees. In the event of any
dispute between the parties concerning the terms and provisions of this
Warrant, the party prevailing in such dispute shall be entitled to collect from
the other party all costs incurred in such dispute, including reasonable
attorneys’ fees.

 

(j)    Governing Law. This Warrant shall be
governed by and construed in accordance with the laws of the State of
California, without giving effect to its principles regarding conflicts of law.

 

8

 

IN WITNESS WHEREOF, the Company has caused this
Warrant to Purchase Preferred Stock to be executed by its duly authorized
representative as of the date first above written.

 

	
   

  	
  COMPANY

  
	
   

  	
  CONVIO, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JR Offerdahl

  
	
   

  	
  Name: 

  	
  JR Offerdahl

  
	
   

  	
  Title:

  	
   CFO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HOLDER

  
	
   

  	
  ATEL VENTURES, INC., as
  Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

9

APPENDIX 1

 

NOTICE OF EXERCISE

 

1.             The undersigned hereby elects to purchase   shares of the                         
stock of                                     
pursuant to Section 2(a) of the attached Warrant, and tenders
herewith payment of the Exercise Price of such shares in full.

 

1.             The undersigned hereby elects to convert the attached
Warrant into Shares in the manner specified in Section 2(b) of the
attached Warrant. This conversion is exercised with respect to                         
of shares of the                                                 
Stock of                                       .

 

[Strike paragraph that
does not apply.]

 

2.             Please issue a certificate or certificates representing
said shares in the name of the undersigned or in such other name as is
specified below:

 

	
   

  	
   

  	
   

  
	
   

  	
  (Name)

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Address)

  	
   

  

 

3.             The undersigned represents it is
acquiring the shares solely for its own account and not as a nominee for any
other party and not with a view toward the resale or distribution thereof
except in compliance with applicable securities laws.

 

	
   

  	
   

  	
   

  
	
  (Date)

  	
   

  	
  (Signature)

  

 

10

 

APPENDIX 2

 

CAPITALIZATION

 

Outstanding
Capital Stock:

 

Outstanding
options, warrants, convertible securities, convertible debentures, and rights
to acquire, subscribe for, and/or purchase any Common Stock, preferred stock
and/or other capital stock of the Company or any securities or debentures
convertible into or exchangeable for Common Stock, preferred stock and/or other
capital stock of the Company:

 

11

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