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Exhibit 10.22.4  

        [*****] = Certain
confidential information contained in this document, marked with brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 
  AMENDMENT
  NO. 4    
    

        THIS AMENDMENT NO. 4 (this "Amendment"), dated April 24, 2003, is entered into by and between Displaytech, Inc., a corporation organized and
existing under the laws of the State of Colorado in the United States of America, with its principal place of business located at 2602 Clover Basin Drive, Longmont, CO 80503 U.S.A. ("DT"), and Miyota
Co., Ltd., established and existing under the laws of Japan, with its registered office located at 4107-5 Miyota-machi, Kitasaku-gun, Nagano-ken,
389-0294 Japan ("MYT" along with DT a "Party," and together the "Parties"). 

        This
Amendment amends that certain Manufacturing Agreement between the Parties dated December 10, 1998, as amended by Amendment No. 1 dated March 25, 1999, Amendment
No. 2 dated July 24, 2001, and Amendment No. 3 dated March 13, 2003 (the "Original Agreement"), as follows: 

        1.    Definitions.    

        (a)   The
following definitions shall be added to Section 1 of the Original Agreement: 

        "Competitive Products" means (i) any FLC based glass-on-silicon or glass-on-glass
device and (ii) any viewfinder which is manufactured using FOL or MOL processes. Notwithstanding the foregoing, certain FLC based glass-on-glass devices which are
manufactured not using FOL or MOL
may be excluded from the Competitive Products upon written consent of DT. Schedule 1.C, Competitive Products sets forth the Competitive Products identified as of the date of this Agreement. 

        "DT Intellectual Property" means all Intellectual Property, other than the Joint Intellectual Property, whether developed by or on behalf
of (including subcontractors) MYT and/or DT or licensed by DT: (1) related to the Products, or any portion thereof, (including without limitation the design, manufacture or operation of the
Products), the FLCs, the Line, FOL, MOL, IAL, IA, EAL, EA or EOL; (2) arising as a result of or in the course of this Agreement, (3) all Intellectual Property provided to MYT by DT, and
(4) all modifications, derivative works, bug fixes, updates, upgrades and other improvements thereto. 

        "EA" means the engine assembly, which is described as follows: the engine assembly mounts the output from the IAL in a housing that
includes imaging optics. 

        "EAL" means the manufacturing process used to assemble the EA. 

        "IA" means the illuminator assembly, which is attached to the output from the EOL (cell packaged on flex circuit or printed circuit
board). The illuminator assembly contains the LED and a front light. 

        "IAL" means the manufacturing process used to assemble the IA including the testing of the viewfinder module for quality. 

        "Intellectual Property" means: (1) all knowledge and information, in whatever form or medium that may or may not be generally
known, that gives to one the ability to produce or market something that one otherwise would not have known how to produce or market with the same accuracy or precision, including without limitation,
techniques, concepts, ideas, algorithms, processes, procedures, improvements, discoveries, inventions and invention disclosure (whether patentable, unpatentable or reduced to practice); business,
engineering and other plans; formulae, designs, masks, data, databases, writings and works of authorship regardless whether such is protected; all information in any form relating to the design,
manufacture, production, operation, maintenance and utilization of any product; computer programs, including object codes and source 

 

codes;
standard work procedures; bills of material; vendor information; parts, jig, fixture, tool and component lists; equipment information; test procedures; and operations, maintenance, user and
service manuals and catalog data; (2) original works of authorship in any tangible medium of expression; and (3) any and all intellectual property rights known or hereafter arising or
recognized in any jurisdiction in the world (regardless of whether such rights are registered or unregistered) relating the foregoing, including without limitation: (a) mask works rights
(including, not limited to any rights arising under the United States Semiconductor Protection Act); (b) rights associated with works of authorship throughout the universe, including, but not
limited to, copyrights and moral rights; (c) trademark, trade name or similar rights; (d) trade secret rights; (e) patent, invention, design, any other industrial rights;
(f) all other intellectual property rights (of every kind and nature throughout the universe and however designated) whether arising by operation of law, contract, license, or otherwise;
(g) all disclosures, applications, registrations, renewals, extensions, continuations, divisions, or reissues hereof now or hereafter in force (including any rights in any of the foregoing);
and (h) the right to bring suit (under any of the foregoing rights) for monetary, injunctive or other relief against any past, present or future infringer. 

        "Joint Intellectual Property" means all Intellectual Property developed solely by or on behalf of MYT relating solely to the Line, FOL,
MOL, IAL, IA, EAL, EA or EOL and/or the Products and all modifications, derivative works, bug fixes, updates, upgrades and other improvements thereto. 

        "MYT Intellectual Property" means any Intellectual Property: (1) developed by or for MYT prior to this Agreement or
(2) developed by or for MYT during the term of this Agreement that is not based on or related to the DT Intellectual Property. 

        "Restricted Patents" means all non-published information and Japanese patent rights relating to the following United States
patents and patent applications including any continuation, continuation-in-part, divisional, reissue and renewal: 

5,808,800

6,025,890

6,038,005

6,195,136

6,359,723

Serial No. 10/067516 

        (b)   The
definition of "Products" under Section 1.1 of the Original Agreement shall be deleted in its entirety and the following shall be inserted in lieu thereof: 

        "Products" shall mean all FLC micro-display glass-on-silicon and glass-on-glass devices
which are based on or incorporate or include DT Intellectual Property and all other products, if such products and devices are agreed to be incorporated
into this Agreement by MYT and DT, manufactured by or for MYT for or on behalf of DT, from time to time. For purposes of clarification, this Agreement shall not apply to any products or devices that
are not manufactured by or for MYT. 

        2.    Use of Manufacturing Facilities.    A new Section 2.7 shall be added to the Original Agreement as
follows: 

        2.7    Use of Manufacturing Facilities.    

        2.7.1    Use of Manufacturing Facilities.    

        (a)   Except
as expressly permitted in Sections 2.7.1(b) and 6.12, MYT agrees not to use the Line or any DT intellectual Property for any purpose except for the manufacture of
the Products and, subject to Sections 2.7.1(c) and 11.1.3, the PLPs. 

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        (b)   Subject
to the limitations set forth in Section 2.7.1(c) subject to Sections 3.4, 4.11, 6, 10 and 11, MYT may use the Line and its other manufacturing facilities
to manufacture products for or on behalf of third parties; provided that, MYT shall notify DT in writing of the names of such third parties and the types of products manufactured for or on behalf of
such third parties twice a year; by the end of June and December every year. 

        (c)   Unless
otherwise agreed to by the Parties and subject Section 11, during the term of this Agreement and for a period of two years thereafter, MYT agrees not to
use the Line, the DT Intellectual Property or its other manufacturing facilities to manufacture any Competitive Product nor shall MYT or any of its Affiliates participate, directly or indirectly, in
the design, manufacture or sale of any Competitive Product. In the event MYT is manufacturing a product or device designed to perform substantially similar function as, or be a substitute or
replacement for, the Products, DT and MYT shall discuss in good faith whether MYT should continue to manufacture and sell such product or device, provided however that, in any event, subject always to
Section 2.7.3, MYT may manufacture and sell such product unless and until DT and MYT reach an agreement that MYT cease to manufacture and sell such product or device (in which case MYT may
continue to manufacture and sell such product or device until the expiration of the then current term of the applicable manufacturing agreement, or as the Parties otherwise agree) or until the
expiration of the then current term of the applicable manufacturing agreement. MYT covenants and agrees not to enter into any agreement with a third party for the manufacture of any product or device
(regardless of whether it is a Competitive Product) requiring the use of the Line or any DT Intellectual Property for a term of more than three (3) years and covenants and agrees not to enter
into any contract or agreement in conflict with the provisions of this Agreement. The scope and effect of the covenants contained in this Section 2.7.1(c) shall be as
broad as may be permitted pursuant to the provisions of applicable law. To the extent that the language of this subsection may restrict competition to a greater extent than that permitted by
applicable law, it shall be effective only to the extent permitted by applicable law. 

        2.7.2    Royalty; Line Access Fee.    In return for the license granted in
Section 11.1, MYT shall pay to DT a royalty equal to two percent (2%) (payable in U.S. dollars) of all gross revenue (as determined in accordance with generally acceptable accounting principles
in the United States, consistently applied), recognized by MYT as a result of using FOL or MOL or any DT Intellectual Property in the manufacture or sales of non-FLC micro-display products
(except the Products), which are manufactured using FOL or MOL. In the event that MYT manufactures products or devices using FOL or MOL pursuant to an agreement, understanding or arrangement
("Arrangement") (such as, among other things an arrangement involving a division of profits or special rebates or allowances) with an Affiliate or with any third party with which MYT or any Affiliate
of MYT has such an Arrangement and which Arrangement results in extending to such Affiliate or third party lower prices, fees or rates than those charged to DT or other concerns buying similar
products in similar amounts and under similar conditions, then the royalties to be paid hereunder with respect to such products or devices shall be based on the gross sales price at which the
purchaser of such products or devices so resells such products or devices. 

        For
purposes of this Section 2.7.2, "gross revenue" shall not include the following: (i) sales, use and/or other taxes or duties actually paid, (ii) normal and
customary rebates, and cash and trade discounts, actually taken, (iii) cost of any shipping packages and packing, (iv) insurance costs and transportation charges, (v) import
and/or export duties actually paid, and (vi) amounts allowed credited due to return, all of such items set forth in subsections (i)- 

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(vi) shall
itemized, to the extent applicable, on MYT's written report to DT under Section 2.7.2(a). 

        (a)   Within
30 days of the end of each calendar quarter following any use of the Line or any DT Intellectual Property pursuant to the license in Section 11.1,
MYT shall furnish DT with a written report setting forth the revenue it recognized from the use of the Line or any DT Intellectual Property by third parties during the previous period and the
computation of the royalties payable with respect thereto. Each report shall be accompanied by the amount due (in U.S. dollars) for that period, if any. 

        (b)   MYT
shall keep accurate records in sufficient detail to enable royalties payable to DT hereunder to be determined and it shall permit such records to be inspected once
per calendar quarter upon written notice by DT, during reasonable business hours, by DT, a certified public accountant or firm of certified public accountants appointed by DT, or any other advisor of
DT, at DT's expense, to the extent necessary to verify the amount of royalties payable hereunder to DT. 

        (c)   All
royalties or other amounts called for by this Agreement shall be made without deduction for taxes, assessments, or other charges of any kind which may be imposed on
the Parties by the government of the Japan or any other government or political subdivision of any government, and such taxes, assessments, or other charges shall be the responsibility of and paid by
MYT. Notwithstanding the foregoing, any income or other tax that MYT is required to withhold on behalf of DT with respect to the royalties owed pursuant to this Agreement shall be deducted by MYT from
the royalties prior to remittance. Within 60 days after each payment of royalties to DT, MYT shall furnish to DT evidence of any such taxes withheld. 

        (d)   The
United States currency payments under this Agreement shall be determined on the basis of the Official Rate of Exchange, as quoted by the Wall
Street Journal, New York, New York, U.S.A., on the date (or closest preceding business day) that such payment is due; provided that, if such exchange rate is not quoted in the  Wall Street Journal,
 the closing transfer buying rates quoted by Citibank, N.A. in New York, New York, U.S.A., shall be employed in effecting such
conversion. 

        2.7.3    Capacity.    MYT acknowledges and agrees that its manufacturing activities on behalf
of third parties (other than on behalf of HP as provided under Section 6.12), shall not interrupt or in any way interfere with its capacity to manufacture Products to fulfill the requirements
of DT and HP as set forth herein. DT shall be entitled to priority for manufacturing capacity to manufacture Products, including Products for PLPs, to fulfill the requirements of DT and HP before MYT
or any other customer of MYT. In the event that MYT is unable to fulfill DT's and HP's requirements for the Products as set forth herein for any 60-day period, DT, at its option, may
require MYT to cease manufacturing operations on behalf of MYT or any of its other customers (including all manufacturing relating to the PLP) and DT may, at its option, secure other means to fulfill
its volume requirements. 

        3.    Access to Manufacturing Facilities.    A new Section 2.8 shall be added to the Original Agreement as
follows: 

        2.8    Access to Manufacturing Facilities.    

        2.8.1    DT's Access.    DT or any person designated by DT (other than direct competitors of
MYT) shall have the right to visit MYT's manufacturing facilities and the Line during normal business hours and to inspect MYT's operation relating to the performance of its obligations hereunder. DT
or its authorized representatives shall have the right to inspect all incoming materials, inventory, Finished Products for conformity to the Product specifications 

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and
quality standards provided that such inspection shall not unreasonably disrupt MYT's operations. Any such inspections and/or payments prior to delivery of any Finished Products shall not
constitute final acceptance by DT. MYT agrees to implement within a reasonable time all mutually agreed corrective action recommended by DT or its representative to MYT. In addition, MYT agrees to
grant DT reasonable access to the reports, records and other documents relating to the manufacture of the Products, including copies of all inspection and other reports by governmental regulatory
agencies. 

        2.8.2    Third Part Access.    During the term of this Agreement, MYT may grant access to the
Line to a third party for or on behalf of which MYT manufactures products using the Line, provided that the confidentiality obligations of MYT under Section 12 shall be in full force and effect
and provided further that, prior to such third party's access, MYT shall require that such third party execute a confidentiality agreement no less restrictive than the confidentiality obligations set
forth in Section 12. Notwithstanding the foregoing, MYT shall not permit any third party that sells, manufactures, distributes or otherwise markets any Competitive Product (as further detailed
on Schedule 1.C, Competitive Products) access to the Line and for all purposes of this Agreement
and any confidentiality agreement entered into with third parties, all information relating to the Line and the Products, whether disclosed orally or in writing, shall be deemed to be Confidential
Information. 

        4.    Finished Products.    The following shall be inserted after the last sentence in Section 6.5 of the
Original Agreement: 

MYT
will use its best efforts to manufacture and sell to DT all quantities of the Product ordered by DT and HP in accordance with the Product order schedule. If the requested quantities of the
Products are not met due to down time on the Line, use of the Line or other manufacturing facilities for third parties or itself or any failures under MYT's control and responsibility, MYT will take
measures, at its cost, to make up the shortages. If shortages are due in any way to conditions solely caused by DT, DT will provide direction on whether and how to make up the shortage and will be
responsible for any associated incremental cost. 

        5.    Price.    The following shall be inserted after the last sentence in Section 7.1 of the Original
Agreement: 

        MYT
agrees that overhead costs paid by DT shall not exceed overhead costs attributable to any products manufactured by MYT for or on behalf of third parties pursuant to
Section 2.7, as calculated using the lesser of a per unit basis or a percentage of revenue basis. MYT further agrees that
deductions shall be made to the cost of the Products for overhead, depreciation of equipment, building costs, and other costs attributable to any products manufactured by MYT for or on behalf of third
parties pursuant to Section 2.7. MYT covenants and agrees that the prices, rates, charges or fees used in the determination of its manufacturing costs for the price of the Products in
accordance with Section 7.1 are not less favorable than those currently and in the future extended to other customers, or to MYT's Affiliates, for similar manufacturing activities and
quantities. DT shall automatically have the benefit of any lower prices, rates, charges or fees provided to MYT's other customers, or to its Affiliates (based on sales volumes similar to or more than
that of MYT's other customers and Affiliates), using the Line and its manufacturing facilities in accordance with Section 2.7.1. MYT agrees to use best efforts to purchase materials from
vendors and suppliers who can supply materials for MYT's manufacturing activities on behalf of DT and on behalf of itself, its Affiliates or third parties, in order to provide additional cost savings
to DT as a result of higher volume discounts. The prices charged to DT by MYT for such materials shall be not less favorable than the prices charged by MYT to third parties or its Affiliates for such
materials where volumes are similar to MYT's customers' or its Affiliates' volumes. 

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        6.    Exclusive Agreement.    Section 10 of the Original Agreement shall be amended as follows: 

        (a)   Section 10.1
shall be deleted in its entirety and the following shall be inserted in lieu thereof: 

        10.1    DT.    Except as expressly permitted in Sections 2.7 and 3.1 and except for
manufacturing Products on its own manufacturing line in Longmont, Colorado, DT will not manufacture or have a third party manufacture Products during the term of this Agreement or any renewal thereof.
Notwithstanding the foregoing, in the event of a breach or default by MYT under this Agreement that remains uncured for a period of 60 days after notice thereof from DT or if DT elects to seek
a second source of supply or to find a new distributor under Sections 2.7 and 3.1, at DT's option, and in addition to all of DT's other rights and remedies hereunder, this Agreement shall become
non-exclusive with respect to DT's obligations to MYT only and DT may manufacture and sell any Products (including the PLPs) itself or through any third party (and all minimum purchase
requirements under Section 9 shall terminate) and DT may supply FLC materials to any third party to manufacture the Products; provided, however, MYT shall continue to be bound by all of the
terms and conditions of this Agreement. To the extent that DT elects to use a second source of supply under this Section 10.1 and so long as this Agreement has not expired or been terminated, if MYT
cures any breach or default after the 60 cure period set forth above (provided, however, this clause shall not create any additional cure rights for a breach or default by MYT) and MYT is able to
fulfill DT's pricing, capacity, quality and other requirements under the terms of this Agreement by the third anniversary date of DT's election to contract with a second source of supply and to
maintain a non-exclusive relationship with MYT, then DT shall agree to convert this Agreement back to an exclusive manufacturing relationship for the remainder of the term of this
Agreement. 

        (b)   Section
10.2 shall be deleted in its entirety and the following shall be inserted in lieu thereof: 

        10.2    MYT.    Except as expressly permitted in Section 2.7 and subject to the terms
and conditions of Section 2.7, MYT agrees that it will use the manufacturing equipment it installs in Nagano to manufacture Products in accordance with this Agreement only for the manufacture
of Products and Finished Products, and no others. 

        7.    Intellectual Property Rights.    Sections 11.1, 11.2, and 11.3 of the Original Agreement are hereby deleted in
their entirety and the following is hereby inserted in lieu thereof together with new Sections 11.5, 11.6, and 11.7: 

        11.1    DT Intellectual Property.    

        11.1.1    Ownership.    Except for the limited licenses explicitly granted in this
Section 11.1, DT retains all right, title and interest in and to the DT intellectual Property. To the extent MYT has or acquires any right, title or interest in or to the DT Intellectual
Property, MYT hereby irrevocably transfers and assigns all such right, title or interest to DT. To the extent MYT retains any rights in or to the DT Intellectual Property that, as a matter of law,
cannot be transferred or assigned to DT, including without limitation any moral rights (collectively, "DT Retained Rights"), MYT hereby unconditionally and irrevocably waives the enforcement of such
DT Retained Rights, and all claims and causes of action of any kind against DT with respect thereto, and agrees, at DT's request and expense, to consent to and join in any action to enforce such DT
Retained Rights on DT's behalf. MYT shall, during the term of this Agreement and at any time thereafter, execute any documents and take such other actions as deemed necessary (at DT's cost and
expense) by DT to protect and convey the rights of DT 

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in
and to the DT Intellectual Property. MYT shall not subject any DT Intellectual Property (or any portions thereof) to any security interest, lien or other encumbrance. 

        11.1.2    License to Manufacture on Behalf of DT.    DT hereby grants to MYT a limited,
non-transferable, royalty-free, non-exclusive license to use and modify (solely with respect to the DT Intellectual Property relating to manufacturing processes)
the DT Intellectual Property for the sole purpose of manufacturing the Products on behalf of DT or HP (as permitted under Section 6.12 only) using the Line only, subject to the terms and
conditions of this Agreement. MYT shall not have any right to sublicense its rights under this Section 11.1.2. 

        11.1.3    License to Use DT Intellectual Property for PLPs.    DT hereby grants to MYT a
limited, non-transferable, non-exclusive license to use the DT Intellectual Property to sell, offer to sell and import the PLPs under the terms of this Agreement. In addition,
DT hereby grants to MYT a limited, non-transferable, non-exclusive license to make PLPs under the Restricted Patents under the terms of this Agreement. MYT shall not have any right to
sublicense its rights under this Section 11.1.3. 

        11.1.4    License to Manufacture on Behalf of MYT or Third Parties.    Subject to the
limitations set forth in Section 2.7, DT hereby grants to MYT a limited, royalty-bearing (with respect to the use of the FOL and MOL only), non-transferable,
non-exclusive license to use the DT Intellectual Property, solely as the DT Intellectual Property relates to the operation of the Line and not with respect to any of the Products, to
manufacture products or other devices on behalf of itself and/or for third parties. MYT shall not have any right to sublicense its rights under this Section 11.1.4. 

        11.2    MYT Intellectual Property.    

        11.2.1    Ownership.    Except for the limited license explicitly granted in
Section 11.2.2, MYT retains all right, title and interest in and to the MYT Intellectual Property. To the extent DT has or acquires any right, title or interest in or to the MYT Intellectual
Property, DT hereby irrevocably transfers and assigns all such right, title or interest to MYT. To the extent DT retains any rights in or to the MYT Intellectual Property that, as a matter of law,
cannot be transferred or assigned to MYT, including without limitation any moral rights (collectively, "MYT Retained Rights"), DT hereby unconditionally and irrevocably waives the enforcement of such
MYT Retained Rights, and all claims and causes of action of any kind against MYT with respect thereto, and agrees, at MYT's request and expense, to consent to and join in any action to enforce such
MYT Retained Rights on MYT's behalf. DT shall, during the term of this Agreement and at any time thereafter, execute any documents and take such other actions as deemed necessary by MYT (at MYT's cost
and expense) to protect and convey the rights of MYT in and to the MYT Intellectual Property. 

        11.2.2    License.    To the extent MYT incorporates any MYT Intellectual Property into
(a) any manufacturing process for the Products (b) in the Products or (c) otherwise uses the MYT Intellectual Property in connection with this Agreement, MYT hereby grants DT and
its Affiliates a transferable, worldwide, irrevocable, perpetual, unlimited, royalty-free, fully-paid license, with the right to sublicense through multiple tiers of
sublicensees, to use the MYT Intellectual Property to use, modify, make, import, sell, and offer to sell any product or device that incorporates such MYT Intellectual Property or any improvements made
by DT thereto. 

        11.3    Restrictions.    

        11.3.1    DT Intellectual Property.    Except as permitted under Section 11.1, MYT and
its Affiliates shall not, and shall not permit or encourage any third party to: (a) modify, adapt, alter, translate, port or create derivative works of or from the DT Intellectual Property;
(b) sublicense, distribute, sell, lease, rent, loan, or otherwise transfer the DT Intellectual 

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Property;
(c) reverse engineer, decompile, disassemble, or otherwise attempt to derive the formula for or any other proprietary information or trade secrets from the DT Intellectual Property;
(d) remove, alter, or obscure any proprietary notices (including, without limitation, any copyright or trademark notices) of DT or its licensors and suppliers from the DT Intellectual Property;
or (e) otherwise use, reproduce, display or copy the DT Intellectual Property. Some of the foregoing restrictions may not apply to MYT under the particular laws of the jurisdiction which MYT
operates, in which case such restrictions shall not apply to the extent prohibited by or in conflict with such applicable law. Except as expressly provided in Section 11.1 or as otherwise
agreed to by the Parties, DT grants no rights or licenses to MYT, by implication, estoppel, or otherwise, in or to the DT Intellectual Property including, but not limited to, the right to make or sell
any Product outside of Japan or the right to have any Product or PLP made by a third party. All rights not expressly granted to MYT hereunder are reserved by DT. 

        11.3.2    MYT Intellectual Property.    Except as permitted under Section 11.2, DT and
its Affiliates shall not, and shall not permit or encourage any third party to: (a) modify, adapt, alter, translate, port or create derivative works of or from the MYT Intellectual Property;
(b) sublicense, distribute, sell, lease, rent, loan, or otherwise transfer the MYT Intellectual Property; (c) reverse engineer, decompile, disassemble, or otherwise attempt to derive the
source code for or any other proprietary information or trade secrets from the MYT Intellectual Property; (d) remove, alter, or obscure any proprietary notices (including, without limitation,
any copyright or trademark notices) of MYT or its licensors and suppliers from the MYT Intellectual Property; or (e) otherwise use, reproduce, display or copy the MYT Intellectual Property.
Some of the foregoing restrictions may not apply to DT under the particular laws of the jurisdiction which DT operates, in which case such restrictions shall not apply to the extent prohibited by or
in conflict with such applicable law. Except as provided in Section 11.2 above, MYT grants no rights or licenses to DT, by implication, estoppel, or otherwise, in or to the MYT Intellectual
Property. All rights not expressly granted to DT hereunder are reserved by MYT. 

        11.5    Joint Intellectual Property.    Any and all Joint Intellectual Property shall be
subject to the following provisions: 

        11.5.1    Ownership.    

        (a)   Subject
to the terms and conditions of this Agreement, all Joint Intellectual Property shall be owned jointly and equally by MYT and DT. Each Party hereby acknowledges
and agrees that, except as otherwise set forth expressly below, the Parties each own an equal undivided interest in and to any and all Joint Intellectual Property, subject to the rights and
obligations set forth herein. 

        (b)   To
the extent either Party has or acquires any greater right, title or interest in or to the Joint Intellectual Property than the other Party, the Party having such
greater interest hereby assigns, to the other Party, such rights as necessary to effectuate the joint ownership set forth in Section 11.5.1.(a). 

        (c)   Patent
applications covering Joint Intellectual Property and patents issuing thereon, applications for copyright registration for any Joint Intellectual Property, and
any and all extensions, divisions, renewals, reissues and continuations of any and each of the foregoing will be filed and prosecuted by counsel selected by DT and MYT and maintained jointly and
equally by DT and MYT, and both Parties will bear fifty percent (50%) of all costs and expenses of and shall cooperate with each other with respect to applying for, prosecuting, filing, obtaining,
maintaining, renewing and continuing such patents and copyrights for all Joint Intellectual Property. In the event one Party discontinues funding any of such costs or 

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expenses
with respect to Joint Intellectual Property, that Party shall lose the rights granted under this Section 11.5 for that portion of the Joint Intellectual Property until such time that
it reimburses the other Party for those costs the non-paying Party did not share equally. In such an event, the other Party may undertake to acquire such patent or copyright with respect
to the Joint Intellectual Property at its sole expense and shall have full control over the prosecution, registration and maintenance thereof (as the case may be), in which case the
non-paying Party will have no rights in such Joint Intellectual Property and shall not be entitled to any share of any profits, royalties or other amounts attributable to such Joint
Intellectual Property. In connection with obtaining and maintaining patent or copyright protection for any invention that may be related to Joint Intellectual Property, regardless of which Party has
ownership rights, the Parties shall cooperate with each other, during and subsequent to the term of this Agreement, by executing and delivering all documents reasonably necessary to carry out the
intent of this Section 11.5. 

        11.5.2    Use of Joint Intellectual Property.    Subject to and without limiting
Section 11.5.1, each of DT and MYT may make, use, sell, offer to sell, import, copy, modify, distribute, make a derivative work or otherwise practice or exploit any Joint Intellectual Property
without having any obligation to the other Party. DT and MYT each hereby waive all rights to an accounting for profits resulting from either Party's use of the Joint Intellectual Property. 

        11.5.3    Enforcement.    Prior to commencing any action or placing in issue in a legal
proceeding against a third party concerning the validity, scope, infringement or enforceability of any Joint Intellectual Property, DT or MYT, as the case may be, shall notify the other Party of the
matter. Consent by the other Party to proceed with the action shall not be required, provided that the Party taking the action shall not unnecessarily compromise the other Party's interest in the
Joint Intellectual Property, and shall permit the other Party at its election and expense to join the action if permitted by law. All amounts obtained during such enforcement of any Joint Intellectual
Property shall belong to the Party initiating such enforcement action, provided that the enforcing Party shall deliver the other Party a pro-rata share of such amounts in proportion to the
extent (if any) the other Party shared in the costs of such enforcement action. 

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        11.5.4    Employees and Consultants.    Each Party shall maintain agreements with its
employees and consultants sufficient to enable such Party to comply with its obligations under this Section 11.5. 

        11.6    Indemnification.    

        11.6.1    MYT Indemnification.    MYT shall pay all costs relating to any claim that any
Permitted Use (as defined below) of the Joint intellectual Property infringes the right of any third party and MYT shall indemnify, defend and hold DT and its shareholders, Affiliates, employees,
officers, directors and contractors harmless from and against any and all losses, liabilities, judgments, awards, damages and costs (including attorneys' fees, experts' fees and expenses) in any claim
or suit arising out of an allegation that the Joint Intellectual Property (or any Permitted Use thereof, including, without limitation, incorporating such Joint Intellectual Property into a Product or
manufacturing process, or the sale, offer for sale or importation of such Product) infringes any third party's rights including, without limitation, any Intellectual Property rights, or violates any
applicable law, rule or regulation of any governmental authority or agency. 

        For
purposes of this Agreement, "Permitted Use" shall mean any use of the Joint Intellectual Property (i) in any application currently used by MYT or DT at the time such Joint
Intellectual Property was developed (including, without limitation, incorporating such Joint Intellectual Property into any Product or manufacturing process, or the sale, offer for sale or importation
of such Product) or any other uses that are not materially different from such applications, or (ii) any other use of the Joint Intellectual Property after notification to MYT of such use if
MYT confirms that such use does not infringe any third party's Intellectual Property rights, or violate any applicable law, rule or regulation of any governmental authority or agency. 

        11.6.2    DT Indemnification.    DT shall pay all costs relating to any claim that the DT
intellectual Property infringes the right of any third party and DT shall indemnify, defend, and hold MYT and its shareholders, Affiliates, employees, officers, directors and contractors harmless from
and against any and all losses, liabilities, judgments, awards, damages and costs (including attorneys' fees, experts' fees and expenses) in any claim or suit arising out of an allegation that the DT
Intellectual Property used pursuant to Sections 11.1.2 and 11.1.3 infringes any third party's rights including, without limitation, any Intellectual Property rights or violates any applicable law,
rule or regulation of any governmental authority or agency. 

        11.7    Bankruptcy.    All rights and licenses granted under or pursuant to this Agreement by
one Party to the other are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States
Bankruptcy Code, licenses of rights to "intellectual property" as defined under Section 101 of the United States Bankruptcy Code. Subject to all of the terms, conditions and obligations of this
Agreement, the Parties agree that the licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the United States Bankruptcy Code. 

        8.    Termination.    Section 16 is hereby amended as follows: 

        (a)   The
following shall be added at the end of Section 16.1.: 

        In
the event of any termination of this Agreement under Section 16.2, this Section 16.1 shall have no further force and effect. 

10

 

        (b)   Section 16.2
shall be deleted in its entirety and the following is hereby inserted in lieu thereof: 

        16.2    Termination for Breach of Intellectual Property Rights.    Each Party acknowledges
that (i) any misuse of any of the other Party's Intellectual Property, (ii) any violation of the licenses granted under this Agreement, or (iii) any disclosure of the other
Party's Confidential Information is likely to cause serious and irreparable harm, the amount of which may be difficult to estimate, thus making any remedy at law or in damages inadequate. Each Party
therefore agrees that if the other Party breaches any provision of this Agreement relating to the other Party's Intellectual Property, the licenses granted hereunder, or Confidential Information or if
such Party has cause to believe that the other Party intends to or is about to breach the same, then such Party shall be entitled to, and the other Party hereby consents to, injunctive relief (without
having to post a bond), restraining or enjoining the act (or failure to act) constituting the breach or threatened breach, or such other equitable and legal remedies as may be available in the
circumstances. In addition, if any such breach remains uncured for 10 days after receiving written notice thereof, the non-breaching Party may terminate this Agreement without
mediation or arbitration under Section 16.1. The Parties agree that the exclusive venue and place of jurisdiction for any proceeding brought under this Section 16.2 shall be the State of
Colorado, City and County of Denver, including the United States District Court for the District of Colorado in Denver, and each Party hereby waives any objection relating to the basis for personal or  in rem jurisdiction or to venue which it may now or hereafter have in any such suit, action or proceeding. 

        (c)   The
following shall be inserted after the last sentence of Section 16.3: 

        Upon
the termination or expiration of this Agreement for any reason, unless the Parties mutually agree in writing to the contrary and as is necessary for MYT to complete its obligations
under the current term (without any opportunity for renewal) of any agreement with any third party or an Affiliate for the manufacture of products on the Line under Section 2.7 (except in the
case where such use of the Line caused the termination of this Agreement), the licenses set forth in Section 11.1 shall terminate and MYT shall immediately stop the production of any Products
then in process; except that in the case of the expiration of this Agreement or a termination of this Agreement by DT, at DT's option, MYT shall continue production of the Products to the extent
necessary to meet any orders of Products which were accepted by MYT prior to the expiration or termination of the Agreement. In addition, MYT shall immediately cease using all of the DT Intellectual
Property relating to the Products and shall promptly deliver to DT all Finished Product manufactured hereunder along with all copies or tangible forms of the DT Intellectual Property and Joint
Intellectual Property used in the Line or in any other manufacturing process used to produce the Products together with all FLC materials, equipment and other tangible property supplied by or for DT.
Sections 2.7, 6, 8, 9, 11.1.1, 11.2, 11.3, 11.4, 11.5, 11.6, 12, 14, 16 and 17 shall survive the expiration or termination of this Agreement for any reason. 

        9.    General Terms.    Section 17 of the Original Agreement shall be amended as follows: 

        (a)   The
following shall be inserted after the last sentence of Section 17.3: 

        Upon
such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties agree to negotiate in good faith to modify this Agreement so as
to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the obligations contemplated hereunder are fulfilled to the maximum extent possible. 

11

 

        (b)   Section 17.5
shall be deleted in its entirety and the following is inserted in lieu thereof: 

        All
notices hereunder, other than day-to-day communications, shall be in writing and delivered (i) personally, (ii) by registered or certified mail,
postage prepaid; (iii) by overnight courier service, or (iv) by facsimile, confirmed promptly by one of the foregoing delivery methods, to the following addresses of the respective
Parties: 

	If to DT, individual copies to:	 	With a copy to:
	

Displaytech, Inc.

Attn:

Chief Executive Officer or President

2602 Clover Basin Drive

Longmont, CO 80503-7603

Phone: (303) 772-2191

Fax: (303) 772-2193	
 	

Displaytech, Inc.

Attn: General Counsel

 

2602 Clover Basin Drive

Longmont, CO 80503-7603

Phone: (303) 772-2191

Fax: (303) 772-2193
	

If to MYT, individual copies to:	
 	

With a copy to:
	

Miyota Co., Ltd.

Attn: President

4107-5 Miyota-machi

Kitasaku-gun

Nagano-ken

389-0294 Japan

Phone: 81 0267 (32) 3331

Fax: 81 0267 (32) 6327	
 	

Toshihiko Ide

353 Yaehara Kitamimaki-mura

Kitasaku-gun

Nagano-ken

389-0406 Japan

81 0268 (67) 1911

81 0268 (67) 1913

        Notices
shall be effective: (a) upon receipt if personally delivered or delivered by confirmed facsimile; (b) on the fifth business day following the date of mailing, if
mailed; and (c) upon receipt, if sent by overnight courier service. A Party may change its address listed above by notice to the other Party. 

        (c)   A
new Section 17.11 shall be added as follows: 

        17.11    Export Controls.    It is understood and acknowledged that the DT Intellectual
Property and Products are subject to export control laws, trade embargoes, regulations, orders and other restrictions of any country governing the export of the DT Intellectual Property and the
Products, and each Party agrees that it shall comply with such laws, trade embargoes, regulations, orders and other restrictions. Without limiting the generality of the foregoing, MYT shall comply at
all times with all restrictions imposed by the U.S. Government under the U.S. Export Administration Act of 1979, as amended, and regulations issued under such Act and trade sanctions programs
administered by the U.S. Department of Treasury. MYT acknowledges that currently such trade sanction programs prohibit DT from engaging in transactions with certain countries and parties including,
the Balkans, Burma, Cuba, Iran, Iraq, Liberia, Libya, North Korea, Sierra Leone, Sudan, the Taliban, UNITA (Angola) and Yugoslavia among others. The obligation of each Party under this Section shall
survive the termination of this Agreement. 

        (d)   A
new Section 17.12 shall be added as follows: 

        17.12    Foreign Corrupt Practices Act.    MYT acknowledges that it is familiar with and
understands the prohibitions of U.S. Foreign Corrupt Practices Act 1977, as amended (the "FCPA"), and that it has not engaged and shall not engage, and has not caused or permitted and shall not cause
or permit any of its shareholders, directors, officers, employees or agents 

12

 

or
any of its Affiliates or their shareholders, directors, officers, employees or agents to engage, in any act that would involve a violation of the FCPA. MYT agrees that it shall immediately notify
DT if MYT receives or acquires knowledge of, directly or indirectly, any request or action which MYT believes will or may be a violation of the FCPA. MYT further agrees to indemnify DT against any and
all costs, fines and other liabilities imposed on DT as a result of any such actions by MYT or its Affiliates or its or their respective shareholders, directors, officers, employees or agents. 

        (e)   A
new Section 17.13 shall be added as follows: 

        17.13    Independent Contractor Relationship.    The relationship between the Parties under
this Agreement is that of independent contractors, and this Agreement does not constitute, and shall not be deemed to constitute a joint venture or partnership between the Parties hereto, and neither
Party shall be deemed to be an agent of the other, or have authority to bind, obligate or make an agreement for the other Party. 

        (f)    A
new Section 17.14 shall be added as follows: 

        17.14    Affiliates and Subcontractors.    Neither Party shall subcontract any of is
obligations hereunder without the written consent of the other Party. Each Party shall exercise sole control of its Affiliates, permitted subcontractors and consultants, shall ensure that they comply
with all of the terms and conditions of this Agreement and shall be solely responsible for their actions and omissions. Any breach of the terms of this Agreement by a Party's Affiliates,
subcontractors or consultants shall constitute a breach by such Party, entitling the non-breaching Party to pursue against it all rights and remedies under this Agreement or applicable law
that such other Party would have been entitled to assert against the Party had the Party directly breached this Agreement. In furtherance of the foregoing, to the extent that any obligations of either
Party are subcontracted hereunder, such subcontractor must agree in writing to be bound by the terms of this Agreement or, in the case of the confidentiality obligations under Section 12, an
agreement no less restrictive than the provisions of Section I2 and either Party may review such writings and agreements upon reasonable notice to the other Party. 

        10.    Schedules.    The following Schedules attached to the Original Agreement are hereby deleted in their entirety
and replaced with the Schedules attached hereto (together with all schedules contemplated hereunder): 

 Schedule 1.C, Competitive Products  

 Schedule 2.3, Product Description  

 Schedule 2.4, Process Procedure Documentation (QC Process Charts)  

 Schedule 3.1, Minimum Annual Volume Requirements for PLP Exclusivity  

 Schedule 3.2, Pricing Formula for Finished Products for Private Label Products  

 Schedule 7.1, Price  

        11.    Termination.    That certain Letter Agreement by and between DT and MYT, dated March 20, 1999, relating
to the Confidential Information of DT, is hereby terminated and shall have no further force and effect. 

        12.    Conflict.    If any conflict should arise between the terms and provisions of this Amendment and the Original
Agreement, this Amendment shall govern. In the event of any conflict between the Original Agreement (as amended by this Amendment) and that certain Private Label Product Supply 

13

 

Agreement,
dated January 19, 2001, between the Parties (the "Supply Agreement"), the terms and conditions of the Supply Agreement shall govern in all respects except for any conflict with
Section 3.1, in which case, this Amendment shall govern. 

        13.    Amendment No. 5.    The Parties hereby agree to use best efforts to negotiate a definitive Amendment
No. 5 to the Original Agreement by June 30, 2003 ("Amendment No. 5"). Amendment No. 5 will address the following: (i) volume and other obligations relating to PLPs,
(ii) warranty, shipment and forecasting provisions, (iii) product recalls, (iv) pricing based on the volume of the Products purchased by DT and based on a cost model, and
(v) additional amendments that are necessary to clarify the Original Agreement and to update the Schedules. 

        14.    No Other Amendments.    Except as amended hereby, the Original Agreement shall remain in full force and effect
in accordance with its original terms. 

        15.    Counterparts.    This Amendment may be executed in counterparts, each of which shall constitute an original and
all of which, when taken together, shall constitute one and the same document. Executed counterparts sent by facsimile or by other means of transmission shall be effective as originals. 

[The remainder of this page is intentionally left blank.]

14

        IN WITNESS WHEREOF, the Parties have executed this Amendment as of the date first written above. 

	MIYOTA CO., LTD.	 	DISPLAYTECH, INC.
	

 	

 	
 	

 	

 
	By:	/s/  YUZO MAEKAWA      
	 	By:	/s/  RICHARD BARTON      

	 	Name: Yuzo Maekawa	 	 	Name: Richard Barton
	 	Title: President	 	 	Title: CEO

Schedule 1.C  

April 2,
2003 

Competitive Products  

[*****]

[*****]

[*****] 

	 
	 	 
	 	[*****]
	 	[*****]
	 	[*****]
	 	[*****]
	 	[*****]

	Glass on Silicon	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	 	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	Glass on Glass	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	 	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	Any Viewfinders	 	 	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]

	*
	Unless approved by DT

	no
	[*****]

	yes
	[*****]

	royalty
	[*****]

	

	Royalty
2% 

Chart
agreed on DT & MYT conference call April 2, 2003 

Schedule 2.3  

         

  

Data Sheet  

LightViewTM QVGA

Display Module
  Model QDM-0076-MV5 

        

  

Features  

	•
	Extended temperature range of-30°C to 80°C (storage)

 
	•
	 Programmability supports multiple brightness settings

 
	•
	 QVGA format with 320 × 240 pixels; 24-bit color capability on every pixel

 
	•
	 Flexible device design made possible through an easy-to-use electrical interface

 
	•
	 Performance adjustments of display can be passed on to end-user

 
	•
	 Less than 135 mW typical display module power consumption (at 16 MHz) including LED illumination

 
	•
	 4.8 mm (0.19") active display panel diagonal

 
	•
	 Display panel fill factor greater than 88%

 
	•
	 Low voltage operation:  

Display panel: 3.3 ± 0.3 V  

LED illumination: 5.0 ± 0.5 V  

	•
	 Fast switching Ferroelectric Liquid Crystal (FLC) materials and technology

 
	•
	 Adjustable frame rate—up to 100 color frames per second

 
	•
	 Independent color LED brightness control; programmable gamma control; power saving mode

 
	•
	 Simple, 8-bit digital interface, with data rates up to 24 Mbytes/second

 
	•
	 Two-wire control interface (TWIN)

 
	•
	 Color sequential mode of operation

 
	•
	 High brightness display module for indoor and outdoor use; greater than 340 cd/m2 typical luminance

 
	•
	 Contrast ratio greater than 100:1

 
	•
	 White point calibrated to 6500 ± 500 K

 
	•
	 Flexible image orientation supports multiple mounting designs  

	•
	 Improved mounting flexibility allows fewer constraints, wider variety of mounting options  

Applications  

	•
	Digital still camera viewfinders

 
	•
	 Video camcorder viewfinders

 
	•
	 Wireless communication devices

 
	•
	 Portable DVD players

 
	•
	 Battery-powered games

 
	•
	 Ultra-portable display applications  

Description  

        The QVGA Display Module Model QDM-0076-MV5 is a high resolution, self-illuminated display solution with an extended
temperature range, capable of operating between -10°C and 60°C, and of being stored between -30°C and 80°C. Compact and
lightweight, this Display Module is designed for portable, battery-powered devices. The display includes a power saving mode, reducing power consumption to less than 5 mW. QVGA Display Module
applications include
high resolution color viewfinders for both digital still and video cameras, wireless communication devices, portable DVD viewers, battery-powered games, and ultra-portable display applications. 

        A
drop-in replacement for Model QDM-0076-MV1, the MV5 Display Module offers improved mounting flexibility and requires less handling prior to
mounting. 

        With
320 × 240 full-color pixels, the QVGA Display Module Model QDM-0076-MV5 provides an integrated display solution,
incorporating the display panel, polarization optics, illumination, and control circuitry in a compact optical-mechanical package. Like all Displaytech products, the module takes advantage of the fast
switching speeds and superior optical qualities of our patented Ferroelectric Liquid Crystal (FLC) materials and technology. The FLC enables bright, full-color graphics and crisp text at
frame rates up to 100 Hz over a broad temperature range. 

        This
high brightness Display Module delivers over 340 cd/m2 for indoor and outdoor use. It also supports programmable brightness settings that may be passed on to the end
user. Display Module power consumption is less than 135 mW at 60 Hz frame rates. Designed specifically for portable display applications, the Display Module minimizes power consumption by efficient
and effective utilization of field sequential color operation. The display also includes a power saving mode that dramatically reduces typical power consumption to less than 5 mW. Excellent optical
efficiency is provided with both an aperture ratio greater than 88% and a top metal reflectance greater than 85%. 

        The
QVGA Display Module features a programmable response curve, allowing for gamma response values from 1.0 to approximately 3.0. Specifically, manufacturers can control brightness and
color or can pass control of these parameters on to the end-user using device interfaces. This gives manufacturers the freedom to design application devices with customer satisfaction, and
not display limitations, as their primary focus. Available control registers provide additional optimization for specific customer applications through the TWIN interface. Data interfacing to Model
QDM-0076-MV5 consists of an 8-bit digital data bus operating at up to 24 MHz. 

Illumination System  

        The QVGA Display Module Model QDM-0076-MV5 is designed to allow the variables of image size and location, field of view, and eye relief to
be addressed with maximum flexibility. This allows manufacturers the freedom to approach optical eyepiece design in the way that best fits their specific application. 

        Color
is achieved by sequentially illuminating the QVGA display panel with red, green, and blue light-emitting diodes (LEDs). This LED system provides very efficient, independently
controlled emitters for each primary color, with excellent color saturation and one of the broadest color gamuts in the display industry. Fast FLC switching speeds enable rich full color by
synchronously displaying individual red-green-blue (RGB) fields in rapid succession. Each pixel produces an individual pure color—there are no color triads to
reduce resolution or spatial clarity. The module uses a proprietary illuminator design optimized for uniform brightness and minimum form factor. The end result is the ability to show colors that are
unattainable on standard monitors or laptop screens. 

        These
additional colors are shown in Figure 1 as the area outside of the CRT gamut and inside of the labeled LED sources. 

  

Figure 1: QVGA Display Module Color Gamut Overlaid on 1931 CIE Color Chart  

 Package Description  

        The display panel is packaged on a ceramic substrate that provides both strength and stability and is attached to a flex circuit that allows for design and
mounting creativity. The integrated illuminator
consists of a plastic housing containing the full-color LED and optical films. The Display Module is designed to accommodate manufacturer preferences in system mounting, allowing for
extreme flexibility in application packaging design. Figure 2 shows MV5 model packaging to scale. 

  

Figure 2: QDM-0076-MV5 Package  

 Interface  

        Data interfacing to the QVGA MV5 model consists of an 8-bit digital data bus operating at up to 24 MHz. The digital video interface consists of an
8-bit data bus (VIDEO_IN [7:0]), FRAME_START, DATA_VALID, CLK (data clock), DISP_CLK (display clock) input signals, and the FULL output signal. Figure 3 shows the
pin configuration of the display module interface (not to scale). 

        The
MV5 model is controlled by the TWIN serial interface to program internal registers. User-programmable register values control image orientation, brightness, and color
balance (or white point). The MV5 model contains a set of registers that also control operation and report the status of the display. These control registers allow manufacturers to control several
important parameters: brightness and color control through LED registers, and display response through the gamma table register. Control of these parameters may also be passed on to the
end-user via device interfaces. This flexibility allows for both freedom in designing applications and enhanced satisfaction of end-user preferences. 

  

Figure 3: Model QDM-0076-MV5 Connection Diagram  

 Product Specifications

QVGA Display Module Model QDM-0076-MV5  

	General	 	 
	Format	 	QVGA (320 × 240 full color pixels)
	Viewing area	 	3.84 × 2.88 mm
	Array diagonal	 	4.83 mm (0.19")
	Pixel pitch	 	12.0 mm
	Fill factor	 	88.7%
	Color depth	 	24 bit color operation (16.7 million colors)
	Frame rate (full color)	 	100 Hz (maximum)

75 Hz (nominal)
	
Optical(1)	
 	

 
	Brightness	 	340 cd/m2 nominal
	Contrast ratio	 	100:1
	White color temperature	 	6500±500 K
	
Electrical	
 	

 
	Interface	 	8 bit digital data bus at up to 24 MHz
	 	Display panel	 	3.3 V CMOS (digital)
	 	LED illuminator	 	5.0 V
	

Power consumption (Display panel + LED illuminator) at 16 MHz	
 	

 
	 	Total module	 	<135 mW
	 	Low power mode	 	approximately 5 mW
	
Physical	
 	

 
	Dimensions (L × W × H)

(excludes flex circuit)	 	14.1 × 15.8 × 7.3 mm
	Weight	 	1.7 g
	
Thermal	
 	

 
	Operating temperature	 	-10° C to 60° C
	Storage temperature	 	-30° C to 80° C

QDM-0076-MV5
specifications are subject to change 

	(1)
	Quantities
apply to product performance at standard operating temperature, 25° C. 

Corporate Profile  

        Longmont, Colo.-Displaytech, Inc. makes and sells microdisplays with superior image quality to performance-driven consumer electronics
companies, providing sustainable competitive advantages to their digital still cameras, camcorders, and mobile communication device customers. Displaytech offers high-quality, patented
Ferroelectric Liquid Crystal (FLC) display products through its LightViewTM product lines, which use less power and with smaller form factors allowing for product design innovation and
meeting tough manufacturing demands.
Established partnerships with industry-leading manufacturers also position Displaytech to keep pace with the challenges of the high volume consumer electronics market. For more information visit
www.displaytech.com 

	Displaytech, Inc.	 	Telephone	 	303-772-2191
	2602 Clover Basin Drive	 	Toll free (USA)	 	800-397-8124
	Longmont, Colorado 80503-7604	 	Fax	 	303-772-2193
	USA	 	Email	 	QVGAsupport@displaytech.com
	 	 	Website	 	www.displaytech.com

  

  

Preliminary Data Sheet  

Light ViewTM 311k Analog Display Module  

        [GRAPHIC] 

Summary  

        The Displaytech LightViewTM 311k Display Module is a high resolution, low power offering specifically designed for color digital still camera and video
camcorder electronic viewfinder applications. The module provides an integrated display solution, incorporating the display panel, polarization optics, illumination, and control circuitry in a compact
opto-mechanical package. This product takes advantage of the fast switching speeds and superior optical qualities of our patented Ferroelectric Liquid Crystal (FLC) materials, delivering
images free of motion smearing or color breakup. This high brightness display module delivers 250 cd/m2 while consuming less than 225 mW at 120 Hz frame rate. The display also includes a
sleep mode that dramatically reduces power consumption to less than 5 mW. Industry standard analog interfaces are supported for easy product integration. 

Features  

	•
	High
resolution format with 432 x 240 full color pixels (311,000 effective dots)

	•
	Fast
switching Ferroelectric Liquid Crystal (FLC) material eliminates motion smearing

	•
	Supports
consumer product temperature ranges

	•
	Low
power: Less than 225 mW including LED illumination and display driver

	•
	120
Hz frame rate (360 Hz RGB field rate)

	•
	Performance
adjustments of the display including brightness and gamma can be passed on to end-user

	•
	All
digital display with superior image quality

	•
	Color
sequential mode of operation 

Applications  

	•
	Digital
still camera viewfinders

	•
	Video
camcorder viewfinders

	•
	Wireless
communication devices

	•
	Head
mounted displays

	•
	Ultra-portable
display applications 

Availability  

	

• Engineering Samples:	
 	

June 2003	
 	

 
	

• Pre-production Prototypes:	
 	

September 2003	
 	

 
	

• Volume Production:	
 	

Q4 2003	
 	

 

Supported Interfaces  

	•
	Analog
YUV

	•
	Analog
RGB 

Block Diagram  

Preliminary Product Specifications

LightViewTM 311k Analog Display Module  

	General	 	 
	Format:	 	432 × 240
	Array diagonal:	 	0.255"
	Pixel Pitch:	 	12 mm × 16.2 mm
	Fill Factor:	 	> 90%
	Color depth:	 	24 bit
	Frame Rate:	 	120 Hz (360 Hz RGB field rate) for NTSC

100 Hz (300 Hz RGB field rate) for PAL
	
Optical(1)	
 	

 
	Brightness:	 	250 cd/m2 Nominal
	Contrast Ratio:	 	> 100:1 @ room temperature
	White Color Temperature:	 	6,500 ± 500 K Adjustable
	
Electrical	
 	

 
	Supported Interfaces:	 	Analog RGB or Analog YUV with Hd, Vd
	Power Consumption:	 	Total Module:                < 175 mW @

(Display panel + LED Illuminator + Controller)
	Required Supply Voltages:	 	2.5V (Core)

3.3V (I/O)

5V (LED)
	
Packaging Dimensions:	
 	

20.20 × 19.20 × 13.5 mm (TBD)
	
Thermal	
 	

 
	Operating temperature:	 	-10 °C to 70 °C
	Storage temperature:	 	-30 °C to 83 °C

LDM-0311-A
specifications are subject to change 

	(1)
	Quantities
apply to product performance at standard operating conditions 

Corporate Profile  

        Longmont, Colo.-based Displaytech, Inc. makes and sells microdisplays with superior image quality to performance-driven consumer electronics companies,
providing sustainable competitive advantages to their digital still cameras, camcorders, and mobile communication device customers. Displaytech offers high-quality, patented Ferroelectric
Liquid Crystal (FLC) display products through its
LightViewTM product lines, which use less power and with smaller form factors allowing for product design innovation and meeting tough manufacturing demands. Established partnerships with
industry-leading manufacturers also position Displaytech to keep pace with the challenges of the high-volume consumer electronics market. 

For
more information visit www.displaytech.com 

	Telephone:	 	303-772-2191
	Toll free (USA):	 	800-397-8124

  

Data Sheet  

LightViewTM QVGA

Display Engine
  Model QDE-0076-SE1 

        [GRAPHIC] 

Features  

	•
	Fast switching Ferroelectric Liquid Crystal (FLC) materials and technology

 
	•
	 QVGA format with 320 × 240 pixels; 24-bit color capability on every pixel

 
	•
	 Virtual image size of 22.4" as viewed from 2m

 
	•
	 Focus adjustment from -3D to +1D

 
	•
	 Supports consumer product temperature ranges

 
	•
	 Programmability supports multiple brightness settings

 
	•
	 Flexible device design made possible through an easy-to-use electrical inter/ace

 
	•
	 Performance adjustments of display can be passed on to end-user

 
	•
	 Less than 135 mW typical display module power consumption (at 60Hz frame rates) including LED illumination

 
	•
	 Low voltage operation:  

Display panel: 3.3 ± 0.3V  

LED illumination: 5.0 ± 0.5V  

	•
	 Adjustable frame rate—up to 100 color frames per second

 
	•
	 Independent color LED brightness control; programmable gamma control; power saving mode

 
	•
	 Simple, 8-bit digital interface, with data rates up to 24 Mbytes/second

 
	•
	 Two-wire control interface (TWIN)

 
	•
	 Color sequential mode of operation

 
	•
	 High brightness display module for indoor and outdoor use; 343 cd/m2 nominal luminance

 
	•
	 Contrast ratio greater than 100:1

 
	•
	 White point calibrated to 6500 ± 500 K  

Applications  

	•
	Digital still camera viewfinders

 
	•
	 Video camcorder viewfinders

 
	•
	 Wireless communication devices

 
	•
	 Ultra-portable display applications  

Value Proposition  

	•
	Display Engine Module provides seamless integration into end-user applications, significantly reducing engineering design and development
time

 
	•
	 Reduces risk associated with new optics development, and offers a proven, high quality, low-cost microdisplay/optics combination

	•
	Reduces manufacturing labor time during camera/device assembly

	•
	Eliminates clean room requirement for microdisplay integration

	•
	Eases supply chain management requirements for the Electronic Viewfinder Assembly

Description  

        The QVGA Display Engine is a high resolution, self-illuminated display solution with an extended temperature range, capable of operating between
-10°C and 50°C, and of being stored between -30°C and 80°C. The Engine features a virtual image size of 22.4" as viewed from 2
meters and includes focus adjustment from -3D to +1D. Compact and lightweight, the Display Engine is optimized for use in Digital Still Cameras, but is equally effective in Video
Camcorders, Wireless Communication Devices, and Ultra-portable display applications. 

        With
320 × 240 full-color pixels, the QVGA Display Engine provides an integrated display/optics solution, incorporating the Displaytech QVGA Display
Module QDM-0076-MV5, magnification and focusing optics, and mechanical housing. Like all Displaytech products, the module takes advantage of the fast switching speeds and
superior optical qualities of our patented Ferroelectric Liquid Crystal (FLC) materials and technology. The FLC enables bright, full-color graphics and crisp text at frame rates up to 100
Hz over a broad temperature range. 

        This
high brightness Display Engine delivers a nominal 340 cd/m2 for indoor and outdoor use. It also supports programmable brightness settings that may be passed on to the
end user. The Display Module minimizes power consumption by efficient utilization of field sequential color operation. Typical Display Module power consumption is less than 135 mW at 60 Hz frame rates
and also includes a power saving mode that dramatically reduces power consumption to less than 5 mW. Excellent optical efficiency is provided with both an aperture ratio greater than 88% and a top
metal reflectance greater than 85%. 

        The
incorporated QVGA Display Module features a programmable response curve, allowing for gamma response values from 1.0 to approximately 3.0. Specifically, manufacturers can control
brightness and color or can pass control of these parameters on to the end-user using device interfaces. This gives manufacturers the freedom to design application devices with customer
satisfaction, and not display limitations, as their primary focus. Available control registers provide additional optimization for specific customer applications through the TWIN interface. Data
interfacing to the module consists of an 8-bit digital data bus operating at up to 24 MHz. 

Product Specifications

LightView QVGA Display Engine—Model QDE-0076-SE1  

	Engine Specifications	 	QVGA (320 × 240 full color pixels)
	Format:	 	15X
	Magnification:	 	-3D to + 1D
	Adjustment Range:	 	16.1 degrees
	Field of View:	 	22.4" at 2 meters
	Virtual Image Size:	 	24 bits
	Color depth:	 	100 Hz (maximum)
	Frame rate (full color):	 	75 Hz (nominal)
	
Brightness	
 	

340 cd/m2 (nominal)
	Contrast Ratio:	 	100:1
	White Color Temperature:	 	6500 +/- 500 K
	
Electrical	
 	

 
	Interface	 	8 bit digital data bus
	Display panel	 	3.3 V CMOS
	 	LED Illuminator	 	5.0 V
	
Power Consumption (Display panel + LED Illuminator)	
 	

 
	Total Module:	 	< 135 mW @ 60 Hz frame rates
	Low Power Mode:	 	5 mW
	
Physical (Engine Assembly)	
 	

 
	Dimensions (L × W × H):	 	48.65 × 23.56 × 29.23 mm [Length is measured at +1D]
	
Thermal	
 	

 
	Operating temperature:	 	-10° C to 50° C
	Storage temperature:	 	-30° C to 80° C

Corporate Profile  

        Longmont, Colo.-based Displaytech, Inc. makes and sells microdisplays with superior image quality to performance-driven consumer electronics companies,
providing sustainable competitive advantages to their digital still cameras, camcorders, and mobile communication device customers, Displaytech offers high-quality, patented Ferroelectric
Liquid Crystal (FLC) display products through its LightViewTM product lines, which use less power and with smaller form factors allowing for product design innovation and meeting tough
manufacturing demands. Established partnerships with industry-leading manufacturers also position Displaytech to keep pace with the challenges of the high volume consumer electronics market. 

For more information visit www.displaytech.com  

	Displaytech, Inc.	 	Telephone	 	303-772-2191
	2602 Clover Basin Drive	 	Toll free (USA)	 	800-397-8124
	Longmont, Colorado 80503-7604	 	Fax	 	303-772-2193
	USA	 	Email	 	QVGAsupport@displaytech.com
	 	 	Website	 	www.displaytech.com

  

Data Sheet  

LightViewTM QVGA

Display Engine
  Model QDE-0076-SE2 

        [GRAPHIC] 

Features  

	•
	Fast switching Ferroelectric Liquid Crystal (FLC) materials and technology

 
	•
	 QVGA format with 320 x 240 pixels; 24-bit color capability on every pixel

 
	•
	 Focus adjustment from -3D to +ID

 
	•
	 Supports consumer product temperature ranges

 
	•
	 Programmability supports multiple brightness settings

 
	•
	 Flexible device design made possible through an easy-to-use electrical interface

 
	•
	 Performance adjustments of display can be passed on to end-user

 
	•
	 Less than 135 mW typical display module power consumption (at 60Hz frame rates) including LED illumination

 
	•
	 Low voltage operation:  

Display panel: 3.3 ± 0.3 V  

LED illumination: 5.0 ± 0.5 V  

	•
	 Adjustable frame rate—up to 100 color frames per second

 
	•
	 Independent color LED brightness control; programmable gamma control; power saving mode

 
	•
	 Simple, 8-bit digital interface, with data rates up to 24 Mbytes/second

 
	•
	 Two-wire control interface (TWIN)

 
	•
	 Color sequential mode of operation

 
	•
	 High brightness display module for indoor and outdoor use; 343 cd/m2 nominal luminance

 
	•
	 Contrast ratio greater than 100:1

 
	•
	 White point calibrated to 6500 ± 500 K  

Applications  

	•
	Digital still camera viewfinders

 
	•
	 Video camcorder viewfinders

 
	•
	 Wireless communication devices

 
	•
	 Ultra-portable display applications  

Value Proposition  

	•
	Display Engine Module provides seamless integration into end-user applications, significantly reducing engineering design and development
time

 
	•
	 Reduces risk associated with new optics development, and offers a proven, high quality, low-cost microdisplay/optics combination

	•
	Reduces manufacturing labor time during camera/device assembly

	•
	Eliminates clean room requirement for microdisplay integration

	•
	Eases supply chain management requirements for the Electronic Viewfinder Assembly

Description  

        With 320 × 240 full-color pixels, the QVGA Display Engine provides a high resolution, integrated display/optics solution,
incorporating the Displaytech QVGA Display Module QDM-0076-MV5, magnification and focusing optics, and mechanical housing. Like all Displaytech products, the module takes
advantage of the fast switching speeds and superior optical qualities of our patented Ferroelectric Liquid Crystal (FLC) materials and technology. The FLC enables bright, full-color
graphics and crisp text at frame rates up to 100 Hz over a broad temperature range. Compact and lightweight, the Display Engine is optimized for use in Digital Still Cameras, Video Camcorders,
Wireless Communication Devices, and Ultra-portable display applications. 

        This
high brightness Display Engine delivers a nominal 340 cd/m2 for indoor and outdoor use. It also supports programmable brightness settings that may be passed on to the
end user. The Display Module minimizes power consumption by efficient utilization of field sequential color operation. Typical Display Module power consumption is less than 135 mW at 60 Hz frame rates
and also includes a power saving mode that dramatically reduces power consumption to less than 5 mW. Excellent optical efficiency is provided with both an aperture ratio greater than 88% and a top
metal reflectance greater than 85%. 

        The
incorporated QVGA Display Module features a programmable response curve, allowing for gamma response values from 1.0 to approximately 3.0. Specifically, manufacturers can control
brightness and color or can pass control of these parameters on to the end-user using device interfaces. This gives manufacturers the freedom to design application devices with customer
satisfaction, and not display limitations, as their primary focus. Available control registers provide additional optimization for specific customer applications through the TWIN interface. Data
interfacing to the module consists of an 8-bit digital data bus operating at up to 24 MHz. 

Product Specifications

LightView QVGA Display Engine—Model QDE-0076-SE2  

	Engine Specifications	 	 
	Format:	 	QVGA (320 × 240 full color pixels)
	Magnification:	 	20x
	Adjustment Range:	 	-3D to +1D
	Field of View:	 	21.6 degrees
	Color depth:	 	24 bits
	Frame rate (full color):	 	100 Hz (maximum)

75 Hz (nominal)
	
Module Specifications	
 	

 
	Brightness	 	340 cd/m2 (nominal)
	Contrast Ratio:	 	100:1
	White Color Temperature:	 	6500 ± 500 K
	
Electrical	
 	

 
	Interface	 	8 bit digital data bus
	Display panel	 	3.3 V CMOS
	 	LED Illuminator	 	5.0 V
	
Power Consumption (Display panel + LED Illuminator)	
 	

 
	Total Module:	 	< 135 mW @ 60 Hz frame rates
	Low Power Mode:	 	5 mW
	
Physical (Engine Assembly)	
 	

 
	Dimensions (L × W × H):	 	[Length is measured at +1D]
	With Flex	 	27 × 24 × 47mm
	Without Flex	 	27 × 24 × 26 mm
	
Thermal	
 	

 
	Operating temperature:	 	-10° C to 50° C
	Storage temperature:	 	-30° C to 80° C

Corporate Profile  

        Longmont, Colo.-based Displaytech, Inc. makes and sells microdisplays with superior image quality to performance-driven consumer electronics companies,
providing sustainable competitive advantages to their digital still cameras, camcorders, and mobile communication device customers. Displaytech offers high-quality, patented Ferroelectric
Liquid Crystal (FLC) display products through its LightViewTM product lines, which use less power and with smaller form factors allowing for product design innovation and meeting tough
manufacturing demands. Established partnerships with industry-leading manufacturers also position Displaytech to keep pace with the challenges of the high volume consumer electronics market. 

For more information visit www.displaytech.com  

	Displaytech, Inc.	 	Telephone	 	303-772-2191
	2602 Clover Basin Drive	 	Toll free (USA)	 	800-397-8124
	Longmont, Colorado 80503-7604	 	Fax	 	303-772-2193
	USA	 	Email	 	QVGAsupport@displaytech.com
	 	 	Website	 	www.displaytech.com

  

Preliminary Data Sheet  

Light ViewTM 311k Digital Display Module  

        [GRAPHIC] 

Summary  

        The Displaytech LightViewTM 311k Display Module is a high resolution, low power offering specifically designed for color digital still camera and video
camcorder electronic viewfinder applications. The module provides an integrated display solution, incorporating the display panel, polarization optics, illumination, and control circuitry in a compact
opto-mechanical package. This product takes advantage of the fast switching speeds and superior optical qualities of our patented Ferroelectric Liquid Crystal (FLC) materials, delivering images free
of motion smearing or color breakup. This high brightness display module delivers 250 cd/m2 while consuming less than 175 mW at 120 Hz frame rate. The display also includes a sleep mode
that dramatically reduces power consumption to less than 5 mW. Industry standard digital interfaces are supported for easy product integration. 

Features  

	•
	High
resolution format with 432 x 240 full color pixels (311,000 effective dots)

	•
	Fast
switching Ferroelectric Liquid Crystal (FLC) material eliminates motion smearing

	•
	Supports
consumer product temperature ranges

	•
	Low
power: Less than 175 mW including LED illumination and display driver

	•
	120
Hz frame rate (360 Hz RGB field rate)

	•
	Performance
adjustments of the display including brightness and gamma can be passed on to end-user

	•
	All
digital display with superior image quality

	•
	Color
sequential mode of operation 

Applications  

	•
	Digital
still camera viewfinders

	•
	Video
camcorder viewfinders

	•
	Wireless
communication devices

	•
	Head
mounted displays

	•
	Ultra-portable
display applications 

Availability  

	

• Engineering Samples:	
 	

June 2003	
 	

 
	

• Pre-production Prototypes:	
 	

September 2003	
 	

 
	

• Volume Production:	
 	

Q4 2003	
 	

 

Supported Interfaces  

	•
	8-bit
RGB-serial data, Hd, Vd, Valid, Clock

	•
	CCIR
601

	•
	CCIR
656 

Block Diagram  

Preliminary Product Specifications

LightViewTM 311k Display Module  

	General	 	 
	Format:	 	432 × 240
	Array diagonal:	 	0.255"
	Pixel Pitch:	 	12 mm × 16.2 mm
	Fill Factor:	 	> 90%
	Color depth:	 	24 bit
	Frame Rate:	 	120 Hz (360 Hz RGB field rate)
	
Optical(1)	
 	

 
	Brightness:	 	250 cd/m2 Nominal
	Contrast Ratio:	 	> 100:1 @ room temperature
	White Color Temperature:	 	6,500 ± 500 K Adjustable
	
Electrical	
 	

 
	Supported Interfaces:	 	8-bit RGB-serial data, Hd, Vd, Valid, Clock

CCIR 601

CCIR 656
	Power Consumption:	 	Total Module:                < 175 mW

(Display panel + LED Illuminator + Controller)
	Required Supply Voltages:	 	2.5V (Core)

3.3V (I/O)

5V (LED)
	
Packaging Dimensions:	
 	

20.20 × 19.20 × 13.5 mm (TBD)
	
Thermal	
 	

 
	Operating temperature:	 	-10 °C to 70 °C
	Storage temperature:	 	-30 °C to 83 °C

LDM-0311-A
specifications are subject to change 

	(1)
	Quantities
apply to product performance at standard operating conditions 

Corporate Profile  

        Longmont, Colo.-based Displaytech, Inc. makes and sells microdisplays with superior image quality to performance-driven consumer electronics companies, providing
sustainable competitive advantages to their digital still cameras, camcorders, and mobile communication device customers. Displaytech offers high-quality, patented Ferroelectric Liquid Crystal (FLC)
display products through its LightViewTM product lines, which use less power and with smaller form factors allowing for product design innovation and meeting tough manufacturing demands.
Established partnerships with industry-leading manufacturers also position Displaytech to keep pace with the challenges of the high-volume consumer electronics market. 

For
more information visit www.displaytech.com 

	Telephone:	 	303-772-2191
	Toll free (USA):	 	800-397-8124

Schedule 2.4 

Process
Procedure Documentation (QC Process Charts) 

[*****]

SCHEDULE 3.1  

Date
of Update 14-Mar-03 

PLP Minimum Annual Volume  

	Product
 
	 	Q1 2003
	 	Q2 2003
	 	Q3 2003
	 	Q4 2003
	 	Q1 2004
	 	Q2 2004
	 	Notes

	B/W ORCA	 	420k	 	420k	 	400k	 	390k	 	 	 	 	 	Agreed
	LV311	 	 	 	Product Release	 	 	 	 	 	 	 	 	 	 

 Process  

	1
	Miyota
Involvement in Development Process of new product

	3
	Miyota
provides sales plan and volume forecast

	4
	Displaytech
and Miyota discuss forecast

	5
	DT
& Miyota agree to plan - PLP exclusivity per the contract remains in force contract is amendmended 30 days after product release (number 3) with agreed plan

	6
	DT
and Miyota cannot agree to sales plan and exclusivity is not in place for product 30 days after product release (number 3) 

SCHEDULE 3.2  

ORCA  

	 
	 	2003
	 	2004

	 
	 	Q1 03
	 	Q2 03
	 	Q3 03
	 	Q4 03
	 	Q1 04
	 	Q2 04
	 	Q3 04
	 	Q4 04

	SELLING PRICE TO MIYOTA FROM DT	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	

SELLING PRICE TO DT FROM MIYOTA	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]
	

MARGIN TO DISPLAYTECH PER UNIT	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]
	

EXPECTED SONY SELL PRICE

Miyota will look for areas to increase value-add such as lens and housing	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

[*****]

	
 
	
 	

 
	
 	

<1Kp
	
 	

1Kp-5Kp
	
 	

5Kp-10Kp
	
 	

10Kp-100Kp

	ORCA SELLING PRICE TO DISPLAYTECH

(same spec as current PLP customer)

(less than 10k per month is special price for

[*****])	 	non PLP	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	

Future Products	
 	

Price = [*****]
	 	 	Price - price paid by Miyota sales to DT

Manufacturing Cost - price paid by DT to MYT production

SCHEDULE 7.1  

TABLE OF CONTENTS  

	1
	QVGA
PRICING

	2
	LV311
PRICING

	3
	NRE

	4
	INVOICES

QVGA SE2  

	 
	 	 
	 	Q1 03
	 	Q2 03
	 	Q3 03
	 	Q4 03
	 	Q1 04

	SE2 SELLING PRICE TO DISPLAYTECH	 	 	 	[*****]	 	[*****]	 	[*****]	 	[*****]	 	[*****]
	

Beginning Q2 03, $.30 rebate per part to be accrued and paid to Miyota by Displaytech when Displaytech reaches cashflow positive	
 	

 	
 	

 	
 	

*	
 	

*	
 	

*	
 	

 
	
SE1 SELLING PRICE TO DISPLAYTECH	
 	

HP	
 	

[*****]	
 	

[*****]	
 	

 	
 	

 	
 	

 
	
 
	
 	

 
	
 	

5Kp-20Kp
	
 	

20Kp-50Kp
	
 	

50Kp-100Kp
	
 	
 
	
 	

 

	
SE1 SELLING PRICE TO DISPLAYTECH	
 	

Taiwan	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

 	
 	

 
	
MV5 SELLING PRICE TO DISPLAYTECH	
 	

Taiwan	
 	

[*****]	
 	

[*****]	
 	

[*****]	
 	

 	
 	

 

LV311 NRE FROM MIYOTA TO DT  

	 
	 	Mar-03
	 	Jun-03

	AMOUNT	 	$	400,000	 	$	300,000

OPEN INVOICE  

	 
	 	INVOICE
	 	DT PLAN
	 	COMMENTS

	MINOLTA REPLACEMENTS	 	$	268,208	 	$25,000	 	PAYMENT PER MONTH STARTING JULY 1 2003 UNTIL PAID IN FULL
	

CONCORD INVENTORY	
 	
$	

342,734	
 	

PAY FULL PER UNIT PRICE AS UNITS ARE SOLD	
 	

IF PRODUCT NOT SOLD BY SEPTEMBER 2003 A PAYMENT PLAN WILL BE ESTABLISHED TO PAY THE INVOICE IN FULL FOR THE 21872 UNITS IN FINISHED GOODS AT A PRICE OF $15.67

QuickLinks

AMENDMENT NO. 4QuickLinks
 -- Click here to rapidly navigate through this document
  

EXHIBIT 10.23  

        [*****] = Certain
confidential information contained in this document, marked with brackets, has been omitted and filed separately with the
Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 

 
 

EXCLUSIVE DISTRIBUTOR AGREEMENT    
    

        This Distributor Agreement (this "Agreement") is made and entered into as of April 1st, 2004 by and between Displaytech Inc., a Colorado corporation
(hereinafter called "Displaytech"), 2602 Clover Basin Drive, Longmont, Colorado 80503-7603, and Nissho Electronics Corporation (hereinafter called "Nissho"), a Japanese corporation,
7-3-1 Tsukiji Chuo-ku, Tokyo 104, Japan, for marketing and sales by Nissho of Displaytech products described in  Exhibit A attached hereto (hereinafter called "Products"). 

        In
consideration of the promises and mutual covenants and agreements contained herein, it is agreed by and between the parties hereto as follows: 

 1. Appointment  

        Subject to the terms and conditions hereunder, and the Private Label Product ("PLP") rights of Miyota, Co., Ltd. described below, Displaytech hereby
appoints Nissho as an exclusive distributor of Products in the territory described in Exhibit B (hereinafter called "Territory") and Nissho
hereby accepts such appointment. The parties acknowledge that Nissho Electronics (U.S.A.) Corporation, Santa Clara, California, a wholly owned subsidiary of Nissho (hereinafter called "Agent"), is an
authorized agent of Nissho for placing purchase orders and making payments for Products. 

 2. Performance of Agreement  

        Both parties agree they will use commercially reasonable efforts to perform to the Agreement. Displaytech agrees to develop its Products and a Product plan, and
to make Nissho aware of its Product plan. Nissho agrees to use its best efforts to promote and sell Displaytech Products in all commercially feasible markets in their Territory. Nissho shall not
solicit sales outside of the Territory absent the written consent of Displaytech, and Displaytech shall have no liability for unauthorized shipments into the Territory by third parties. 

 3. New Products  

        In the event Displaytech develops or handles any new products in the future which are related to, similar to, or competitive with Products, subject to the terms
and conditions hereunder, and except for Miyota PLP, Displaytech agrees to grant Nissho the first right of refusal to exclusively distribute such new products in the Territory under the same terms and
conditions of this Agreement. 

 4. Nissho Obligations and Responsibility  

        (a)    Sales Reports.    Nissho shall provide monthly to Displaytech a Sales report on 25th of each month, (within
written or electronic report by the format in Exhibit C, Part 2) regarding market conditions for the products in the Territory. This
report includes the identities and status of the customers and prospects of Nissho, and shall also provide Displaytech with information regarding customer demand for new product ideas. Upon request,
Nissho agrees to furnish Displaytech information regarding the Nissho's efforts to advertise, market, and promote the sale of the Products in the Territory. 

        (b)    Sales Forecasts.    Nissho shall provide monthly to Displaytech a forecast on 25th of each month, (within
written or electronic report by the format in Exhibit C, Part 1) which covers a twelve 

1

 

(12) month
rolling forecast to Displaytech Sales. Such forecast should also define anticipated promotional programs. 

        (c)    New or Modified Products.    Nissho shall document and present in writing all requests for current product
modification requests, new product requests. Modified products must go through the Displaytech Product Change Notification form and process to evaluate technical feasibility, schedules, cost, and ROI. 

        (d)    Competitive Products.    During the term of this Agreement and for a period of one year thereafter, Nissho
agrees not to purchase, import, sell, lease, develop, manufacture, or otherwise deal in, directly or indirectly, any products that are considered to be competitive with Products without the prior
written consent of Displaytech. Nissho shall document and present competition status during each quarterly Sales Conference. 

        (e)    Suggested Prices.    Displaytech may give Nissho the suggested price for the Products for the purpose of its
reference; however, such suggested price will not bind Nissho to establish its selling price of the Products. 

        (f)    Importation of Products into Territory.    Nissho will be responsible for importing Products into the
Territory, including obtaining all documents required, and paying all duties and other charges levied, by the Government of Japan and any other country, if applicable. 

 5. Quarterly Sales Conferences  

        The parties agree to hold discussions at three (3) month intervals, to discuss their mutual performance under the Agreement during the preceding three
months, and Sales plans for the next three (3) month period as well as strategy for following twelve (12) months. Displaytech shall provide to Nissho an update of its Product plans, and
Nissho shall provide to Displaytech an update of its sales and marketing plan for the Products. Based upon these discussions, the parties arrive at mutually agreeable sales and marketing plans for the
Products in the Territory for the following twelve months. Nissho will provide Displaytech quarterly written reports regarding its performance in achieving the sales and marketing plan. 

(a)
Nissho shall identify in writing during Quarterly Sales Conferences by market segment (DSC, Emerging Markets, etc....) all potential customers as noted in Exhibit
C with each customer rated: 

        (1)    Established    (provision of R&D contacts, QA contacts, Procurement contacts, specific
market plans and direction for Sales activity, and identification and agreement upon "Strategic" accounts). 

        (2)    Investigation    (disclosure of investigated company market and potential for Sales) 

        (3)    New    (disclosure of new targets potential and Sales approach plans) 

        (4)    Non-targeted    (any customer considered by Displaytech as a potential customer, and
not targeted by Nissho must be documented why they are not targeted) 

        (b)    Nissho Performance Guarantee.    

        (1)
Displaytech and Nissho executive management must have a semi-annual review where performance against goals in  Exhibit D is evaluated by individual customer and compared with information from
 Exhibit C. Nissho's goals set in Exhibit D for both design wins and monthly sales volumes
will be evaluated in detail. 

        (2)
Performance metrics, set as Nissho performance goals, shall be included as an update to Exhibit D on the
semi-annual basis by Displaytech and Nissho executive management. A review of the performance matrices will be done at each Quarterly Sales Meeting to track performance using 

2

 

the
document in Exhibit D. Exhibit D will represent Nissho's guarantee of performance. Goals as defined in the  Exhibit D are to be maintained as
a matter of record. Exhibit D will be updated on an annual basis. 

        (c)    Displaytech Responsibility.    

        Displaytech
has responsibility to set goals (as defined in Exhibit D) that are in line with the Territory, Whole Target Market,
Corporate Targets and the Product Roadmap presented by Displaytech. The goals must be reviewed and agreed upon by Nissho in writing at each semiannual executive management meeting. Goals may also be
reviewed during Quarterly Sales Conferences. 

        (1)
The first Submission to Exhibit D will occur upon agreement and signing into acceptance of this document 

 6. Changes to and Discontinuance of Products  

        Upon ninety (90) days' prior written notice to Nissho, Displaytech shall have the right, without liability, to change the design and/or specification of
Products, or to discontinue the availability of Products. Such changes or discontinuance shall not apply to any orders from Nissho which have been accepted by Displaytech. Displaytech shall continue
to supply the spare and replacement parts for such discontinued Products for twelve (12) months after such discontinuance. The inventory that will be maintained by Displaytech will match the
percentage of returns (RMA) of the discontinued product for the previous three (3) months' shipments. 

 7. Pricing  

        Product pricing is set annually and reviewed quarterly, and published as Displaytech's Japanese Distribution Product Price List. Japanese distribution pricing
will be set by Displaytech based on market conditions, considering the product sales volume and value added provided by Nissho as the exclusive Japanese distributor for Displaytech products, excluding
PLP products 

        If
any pricing is changed as a function of market conditions, the changes will be reflected in this document (see Exhibit F) no more
frequent than quarterly. Prices set within Exhibit F are a function of average monthly volume sold to Nissho, and assumes that groupings will
include the same or nearly the same product (Standard Product) for ease of manufacturing and selling process. Selling price to Nissho will be fixed as a function of actual average monthly volume at
the time the purchase order is issued and not changed until volume price breaks are met as set in Exhibit F. Average monthly volumes will be
calculated using a previous three-month moving window. Note that current design wins for Kyocera and Kodak are currently priced in dollars. 

        Displaytech
will consider special pricing proposals made by Nissho on a case by case basis after Nissho submits to Displaytech a Request
for Special Quotation (see Exhibit E). This form once mutually agreed upon must be attached to all subsequent purchase orders. If the parties are
unable to agree on pricing pursuant to a special pricing proposal, Nissho may, at its option, elect not to provide a quotation to the customer. In the event Nissho elects not to provide a bid to a
customer, Displaytech may provide a quotation to the customer directly at a price higher than that quoted to Nissho. Pricing for changes to Standard Products, such as for unique quality levels, must
be considered carefully by Displaytech and weighed on an individual basis. A Request for Special Quotation (see Exhibit E) will be submitted to Displaytech for any requested variation to a
standard product. 

3

 

 8. Order Placement and Fulfillment  

        (a)    Orders.    

        (1)
All orders for Products submitted by Nissho shall be initiated by placing an order by facsimile provided that Nissho shall promptly send a confirming written order (hereinafter
called a "Purchase Order") to Displaytech after placing such order. Displaytech agrees that Agent may place an order for Nissho in accordance with the ordering procedure specified in this Article. Any
term or condition in a Purchase Order, or any other purchasing document from Nissho or Agent, which is inconsistent with the terms and conditions of this agreement, or which would have the effect of
imposing any additional obligation on Displaytech, shall be null and void. 

        (2)
All orders are subject to acceptance by Displaytech provided that such acceptance shall not be unreasonably withheld. In the event Displaytech accepts the order, Displaytech shall
promptly provide an order acknowledgement and return it to Nissho or Agent upon receipt of the Purchase Order from Nissho or Agent within ten (10) days of initial receipt. Displaytech may condition
acceptance of a Purchase Order on Nissho's acceptance of changes thereto requested by Displaytech. In the event Displaytech rejects the order, Displaytech shall notify Nissho or Agent of such
rejection and specify the reason for the rejection by facsimile. For any purchase order that has been accepted as a condition of a Special Quotation, that accepted form must accompany the order
submission. 

        (b)    Shipment.    

        Upon
acceptance by Displaytech of an order, Displaytech shall use its best effort to ship Products to Nissho consistent with its then current lead times. Unless otherwise agreed, all
shipments will be FOB Displaytech's contract manufacturer. 

        (c)    Taxes and Duties.    

        Nissho
shall bear and pay all taxes (including, but not limited to sales, use, value added, registration, ad valorem, excise, employment, consumption, and documentary taxes), custom
duties, import surcharges or other governmental charges to be imposed or charged in Territory in connection with the sale of Products hereunder. 

        (d)    Bill of Exchange/Payment.    

        Nissho
agrees that its Agent will enter into Bills of Exchange within three (3) days of product shipment with Displaytech's Bill of Exchange bank. Payment in U.S. dollars or yen,
as agreed to by the parties and using exchange rates as agreed to by the parties, shall be made thirty (30) days after the date of shipment, to Displaytech's Bill of Exchange bank. Such payment
shall be made through Agent. All current Products offered for sale to Nissho will be under this program under this Agreement. 

        (e)    Representative Service Fee.    

        Displaytech
agrees that there are no fees for the Products. 

 9. Relationship of the Parties, Warranties and indemnities  

        Nissho is an independent contractor and in no way a partner, agent, or employee of Displaytech. Nissho agrees not to make any representation, promise, guarantee,
or warranty on Displaytech's behalf. Nissho further agrees that it will not assume or create any obligation on Displaytech's behalf expressed or implied regarding the Products or otherwise.
Displaytech's only warranty obligation covering the Products sold by it to Nissho shall be as set forth in Displaytech's standard printed warranty as applicable to the particular product and attached
hereto as Exhibit G (as amended from time to time). NO OTHER WARRANTY EXPRESSED, STATUTORY, OR IMPLIED SHALL APPLY TO THE PRODUCTS, INCLUDING,
BUT NOT LIMITED TO, THE WARRANTIES OF 

4

 

MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT. IN NO EVENT SHALL DISPLAYTECH BE LIABLE TO NlSSHO, OR ANY CUSTOMER OF NISSHO, UNDER ANY LEGAL OR EQUITABLE
THEORY, WHETHER CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY, PRODUCT LIABILITY OR OTHERWISE, FOR INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES, INCLUDING LOST PROFITS, LOST BUSINESS, LOST REVENUE,
OR COSTS AND EXPENSES FOR PROCUREMENT OF SUBSTITUTE GOODS, OR FOR PRODUCT RECALL. 

        Displaytech
shall hold Nissho harmless from damages awarded to a third party by a final, unappeased U.S. or Japanese court judgment (and, if Displaytech has not assumed control of
defense and settlement, reasonable attorney fees and costs incurred by Nissho) holding Nissho liable for the payment of damages resulting from injury or death to any person, or loss of property
(excluding any product which uses or incorporates Displaytech's Product) where such injury or death or loss is proximately caused by a defective Displaytech Product, such defect being caused solely by
Displaytech, provided Displaytech is promptly notified of any and all threats, claims and proceedings related thereto and given reasonable assistance by Nissho and the opportunity to assume complete
control over the defense and all negotiations for settlement or compromise. In defending any claim, Displaytech may settle on any terms it may wish. Displaytech will not be responsible for any
settlement or compromise it has not approved in writing. The foregoing states the entire liability of Displaytech, and constitutes Nissho's sole and exclusive remedy for product liability related to
its Products furnished hereunder. 

        Displaytech's
Products are not intended for sale as parts used in the operation of nuclear facilities, the flight, navigation, or communication of aircraft or ground support equipment,
the control of hazardous materials, or other ultra-hazardous activities. Nissho on behalf of itself and any direct or indirect end-user using the Products for these applications agrees
that Displaytech is not liable, in whole or in part, for any claims or damages arising from such use. Nissho further agrees to indemnify Displaytech against any claims, damages, expense or liability
arising out of the use of Products for such applications. 

 10. Proprietary Rights  

        (a) Displaytech shall at all times own all patent, copyrights, trademarks, or trade secrets or other intellectual property rights to in and related to the
Products and the manufacture thereof and all improvements and modifications thereto and does not grant any rights of any kind in or to such intellectual property other than as are necessary to perform
the sales and marketing activities contemplated hereunder and subject to the terms of this Agreement. During the term of this Agreement, Nissho shall be authorized to use Displaytech's trademarks and
trade names only in connection with the sale, advertisement, and promotion of Products, not in connection with any other aspect of its business. Nissho specifically agrees to refrain from using such
trademarks or trade names as a part of Nissho's name or mark in any other manner which would cause a reasonable person to infer that such trademarks or trade names belong to Nissho. Nissho further
agrees that it will not affix any Displaytech's trademarks or trade names to any products which are not supplied by Displaytech. Any use by Nissho of Displaytech's trade name and/or trademarks or any
other trade names or trademarks associated with the Products must be approved in writing by a duly authorized officer of Displaytech or any other trade names or trademarks associated with the
Products. 

        (b)    Patent Indemnification.    

        (1)
Displaytech shall hold Nissho harmless from damages awarded to a third party by a final, non-appeasable judgment of any U.S. or Japanese court (and, if Displaytech has
not assumed control of defense and settlement, reasonable attorney fees and court costs incurred by Nissho) holding that Nissho's use or sale of the Products infringed a valid United States or
Japanese patent issued not later than the date the Products were first shipped to Nissho, provided Displaytech is 

5

 

promptly
notified of any and all threats, claims and proceedings related thereto and given the opportunity to assume complete control over the defense and all negotiations for settlement or
compromise, and Nissho provides Displaytech with reasonable cooperation, assistance and information in connection with the investigation, settlement negotiations, and defense of the claims. In
defending any claim, Displaytech may settle on any terms it may wish. Displaytech will not be responsible for any settlement or compromise it has not approved in writing. 

        (2)
Should any Products delivered hereunder become, or in Displaytech's opinion be likely to become, the subject of such a claim, Displaytech may, at its election, either
(1) procure for Nissho the right to continue to use the Products, (2) replace or modify the Products so that they become non-infringing, or (3) grant Nissho a credit
for the price paid for the units of Products involved in the claim for the preceding 12 months, less a prorated amount for depreciation. Displaytech may withhold further shipment of the
Products subject to the claim, without liability to Nissho. 

        (3)
The foregoing obligation of Displaytech does not apply with respect to Products or portions or components thereof (1) that are not supplied by Displaytech, (2) that are
made in whole or part in accordance with specifications established solely by Nissho, (3) that are modified by Nissho or any third party, (4) that are combined with
non-Displaytech Products, processes, or materials, where the infringement relates to such combination, (5) that are claimed to infringe any patent in which Nissho or any affiliate
or customer of Nissho has an interest or license, or (6) where Nissho continues allegedly infringing activity after being notified thereof or after being informed of modifications that would
have avoided the alleged infringement. 

        (c)
The foregoing states the entire liability of Displaytech (and Nissho's sole and exclusive remedy hereunder) for infringement of intellectual property rights or other proprietary
rights by the Products furnished hereunder. Notwithstanding the foregoing, Displaytech's aggregate liability under this warranty shall not exceed the total amount paid to Displaytech for any
infringing Products sold hereunder for the 12-month period preceding any claim for infringement. 

 11. Confidentiality  

        Each party shall not disclose any confidential information of the other party to any third party. The disclosing party shall mark such confidential information as
"Confidential," if such information is in writing, and confirm in writing that such information is confidential within ten (10) days after such disclosure, if it is disclosed orally or visually
by the disclosing party to the receiving party. Such confidential information does not include information which: (a) is or becomes publicly available without breach of this Agreement by the
receiving party; (b) is released for disclosure by the disclosing party with its written consent; (c) is known by the receiving party prior to the disclosure; (d) is rightly
received by the receiving party from a third party without confidential limitations; (e) is hereafter disclosed by the disclosing party to a third party without restriction on disclosure; or
(f) is independently developed by the receiving party's employees not having access to such confidential information. 

 12. Term and Termination  

        (a) Subject to earlier termination, as provided herein, this Agreement shall become effective on the date first above written, and shall be effective for an
initial term of one (1) year. Thereafter this Agreement shall be renewed automatically under the same terms and conditions for one (1) year periods, unless either party gives the other
party written notice of its intent not to renew at least sixty (60) days prior to the end of each term. 

        (b)
In the event either party breaches any provision of this Agreement or fails to perform its obligations hereunder, the other party shall notify in writing such default to the
defaulting party. The parties shall then meet and attempt to resolve such default. If the parties are unable to resolve the 

6

 

default
within thirty (30) days of the date of the written notice, then the non-defaulting party may terminate the Agreement upon giving the other party two (2) weeks written
notice. In the event such default is not cured within such two (2) week period, then this Agreement shall automatically terminate. 

        (c)
A party may terminate this Agreement immediately upon giving written notice the other party (i) voluntarily seeks protection under any bankruptcy, receivership, trust deed,
creditors arrangement, composition or comparable proceeding, or (ii) if any such proceeding instituted against the other party and is not dismissed within ninety (90) days, AND such
action by or against the other party causes that party to breach a material term or condition of this Agreement. 

        (d)
Notwithstanding the above, the provisions of articles herein which are titled, "Warranty," "Proprietary Rights," "Confidentiality," and "Arbitration," shall survive the termination. 

        (e)
Upon termination of this Agreement, Nissho will provide Displaytech with a list of potential customers with whom Nissho has corresponded, the details of the potential sales, and the
name of the contact person within the potential customer's organization. 

 13. Force Majeure  

        Neither party shall be responsible for delays in delivery or performance because of intervention of a Force Majeure, which term shall include strikes, lockouts,
riots, epidemics, war, governmental regulations, fire, explosion, acts of God or nature, or any other cause beyond the control of a party affected. In no event shall lack of finances be considered a
cause beyond the control of a party, and a failure to pay any amount due hereunder shall not be excused. The party affected by the Force Majeure shall give prompt notice thereof, and upon cessation of
the Force Majeure, take all reasonable steps to resume compliance with its obligations. 

 14. Waiver  

        No waiver of any provision of this Agreement shall be effective unless in writing and signed by the party against whom the waiver is sought to be enforced. No
failure or delay by either party in exercising any right, power, or remedy under this Agreement shall operate as a waiver of the right, power, or remedy. No waiver of any term, condition, or default
of this Agreement shall be construed as a waiver of any other term, condition, or default of this Agreement. 

 15. Assignment  

        Nissho shall not assign, transfer, or otherwise dispose of this Agreement or any of its rights, interest, or obligations hereunder without the prior written
consent of Displaytech, which consent shall not be unreasonably withheld. 

 16. Relationship  

        Both parties are independent contractors under this Agreement. Nothing in this Agreement is intended to create, or shall be construed as creating a joint venture,
partnership, agency, or employment relationship. Neither party shall have any express or implied right to assume or create any obligations on behalf of or in the name of the other party or to bind the
other party to any other contract, agreement, or undertaking with any third party. 

 17. Law and Trade Terms  

        The formation, validity, construction, and performance of this Agreement shall be governed by the laws of the State of Colorado without regard to the conflict of
laws provisions thereof, and without regard to the United Nations Convention on Contracts for the International Sale of Goods. 

7

 

 18. Arbitration  

        Any dispute, controversy, or claim arising out of or relating to this Agreement, or the breach, termination, or invalidity thereof, shall be settled by binding
arbitration conducted in accordance with the rules of the American Arbitration Association (hereinafter called "AAA"), a single arbitrator at offices located in the State of Colorado selected by AAA.
The award thereof shall be final and binding upon the parties hereto. 

 19. Notices  

        All notices, demands, or consents required or permitted under this Agreement shall be in writing and delivered personally, by certified or registered mail,
postage prepaid, or by facsimile to other party at the address first above written, subject to the right of either party to change its address by delivering prior notice pursuant to this Article. The
effective date of any such notice, demand, or consent shall be deemed to be seven (7) days after the postmarked mailing date, if delivered by certified or registered mail, or upon receipt, if
delivered personally or by facsimile. 

 20. Severability  

        If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not be affected or impaired thereby. 

 21. Entire Agreement  

        This Agreement constitutes the entire and only agreement between the parties with respect to the subject matter hereof and supersedes, cancels and annuls all
prior or contemporaneous negotiations or communications. 

 22. Export Administration Regulations  

        Nissho agrees to comply with the export laws and restrictions and regulations of the Department of Commerce or other United States or foreign agency or authority,
and not to export, or allow the export or re-export of any product in violation of any such restrictions, laws or regulations. 

 23. Foreign Corrupt Practices Act  

        Nissho acknowledges that it is familiar with and understands the prohibitions of U.S. Foreign Corrupt Practices Act 1977, as amended (the "FCPA"), and that it has
not engaged and shall not engage, and has not caused or permitted and shall not cause or permit any of its shareholders, directors, officers, employees, or agents or any of its Affiliates or their
shareholders, directors, officers, employees, or agents to engage, in any act that would involve a violation of the FCPA. Nissho agrees that it shall immediately notify Displaytech if Nissho receives
or acquires knowledge of, directly or indirectly, any request or action which Nissho believes will or may be a violation of the FCPA. Nissho further agrees to indemnify Displaytech against any and all
costs, fines, and other liabilities imposed on Displaytech as a result of any such actions by Nissho or its Affiliates or its or their respective shareholders, directors, officers, employees, or
agents. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date and year first above written. 

	DISPLAYTECH, INC.	 	NISSHO ELECTRONICS CORPORATION
	

By:	
 	

/s/  RICHARD D. BARTON      
	
 	

By:	
 	

/s/  TOSHIHIKO YAMAGUCHI      

	Name:	 	Richard D. Barton
	 	Name:	 	Toshihiko Yamaguchi

	Title:	 	CEO
	 	Title:	 	General Manager
 Innovative Devices Division

8

EXHIBIT—A Products  

        The
Products covered by this Agreement are: 

	1)
	QDM-0076-MVx
family of displays

	2)
	QDE-0076-SEx
family of engines

	3)
	QDM-0076-DKx
family of developer's kits

	4)
	LV31lx
family of next generation display, engine, and derivative demos or kits.

	5)
	Photonics
Standard and Customized Products, Drivers, Kits, and Samples

	6)
	New
Products derived from FLC as a request of Nissho only if accepted and fulfilled by Displaytech.

	7)
	**
Product exemption is "Private Label Products" sold within the Japan camcorder viewfinder market 

EXHIBIT—B Territory  

        The
Territory covered by this Agreement are: 

	1)
	Japan
(except as noted in number 3)

	2)
	**
exclusion of ownership of design win and volume purchases for those customers outside of Japan that will be routed through Nissho per corporate agreements separate from this
document.

	3)
	For
purposes of sales to Sony Digital Still Camera division and Sony Camcorder divisions, Nissho will sell to Miyota. Miyota will then sell and service the customer (Sony). 

EXHIBIT—C Monthly report format  

        Part 1: Monthly Forecast (example provided) 

	Displaytech Sales Forecast CY2003	 	Distributor /Representative

Name:    [Nissho Electronics]	 	A: Based on Customer's PO	 	C: Disti's Prospect
	As of 25th of mm/dd/yyy	 	 	 	B: Based on Customer's Forecast	 	D: Others (Need Clarification by Disti)

	

Customer Name	
 	

Application	
 	

DT Product#	
 	

Unit Price($)	
 	

Backlog Qty	
 	

90 days PO status	
 	

ShipT TL	
 	

Jan	
 	

a	
 	

Feb	
 	

a	
 	

Mar	
 	

a	
 	

Apr	
 	

b	
 	

May	
 	

B	
 	

Jun	
 	

b

        Part 2: Customer Tracking Database  

	Target Customer
 
	 	Priority / Pipeline
 
	 	Customer Product Definition and Specific Information
 

	Area	 	Customer	 	DT Priority Rank	 	Pipeline stage (1-6)	 	DT Display Solution	 	Customer product(s) description	 	Product est. price range	 	expected monthly volume per model	 	decision dates	 	starting when	 	current DT ASP bid	 	Current EVF/Cost ?	 	self brand, OEM/ODM both	 	OEM/ODM affiliation(s)

	Integration
 
	 	Sales Process Activity
 

	Driver notes	 	Optical engine	 	issues or hurdles	 	Contact: Management	 	Contact: Engineering	 	Contact: Procurement	 	Contact: Quality	 	Previous visits	 	Next Visit Planned	 	Actions Due	 	Sample or Hardware Sales	 	Documentation provided	 	PO Placement	 	RMA Activity

        Pipeline reporting:

	0:
	No
interaction started

	1:
	Initial
Qualification: sales visit, product inquiry

	2:
	Information
Fulfillment: Initial product discussion, schedules discussed, specifications provided and evaluated; kits/samples are purchased

	3:
	Quotation:
Interest level at a point where schedules matched to production quotation

	4:
	Commitment:
Confirmation of design win, technical support starts, manufacturing support starts

	5:
	Production:
Starts with first PO through mass production ramp and support

	6:
	Phase
out: Production is due to stop, EOL buy starts 

EXHIBIT—D Annual Sales Targets  

Entry
1, February 1st, 2003 

Effective
from (dd/mm/yyyy)                          ending (dd/mm/yyyy)
                         

Signed:
Displaytech Sales Director
                                        

Nissho
Sales Director
                                        

        Item
of note, the current viewfinder market is held at a greater than 80% market share by Japan based companies. It is expected that Nissho will penetrate and capture
[*****] of this market in 2004. As well as the existing viewfinder market, an additional and separate revenue target will be set for Photonics and Emerging Markets (including
all kits and samples, as well as low volume sales targets for non-DSC viewfinder applications: HMD, IR cameras, instrumentation, SLM, accessories for PDA/games/cameras, etc...). 

        Targets
are set for 12 months production, however it should be noted that volumes are averaged for a typical 9-month production cycle per model.  Design Win, means commitment to our product via advanced
forecast and price agreement. Revenue Target is
as a TOTAL for those models won in Design Win. PRODUCTION is that time that a volume ramp starts based
upon production PO's covering 90-day forecasts submitted by Nissho. 

	Timeframe
 
	 	Design wins
	 	Volume Target
	 	Revenue Target (as realized from quarter's sales efforts)

	Q4—2003	 	1 LV311	 	25k/month each	 	$4.0MM over 10 months starting in Q1-04 production
	Q1—2004	 	3 LV311	 	50k/month each	 	$20.0MM over 10 months starting in Q3-04 production
	Q2—2004	 	2 LV311	 	25k/month each	 	$8.0MM over 10 months starting in Q4-04 production
	Q3—2004	 	2 LV201	 	30k/month each	 	$5.0MM over 10 months starting in Q1-05 production

2003
Photonics and Emerging Markets: Quarterly Goal $30,000; 2003 Annual $120,000 

EXHIBIT—E Request for Special Quotation form  

Displaytech RFSQ (Request for Special Quote) Format

	Date of Request	 	 	 	 	 	 
	

	
 	

	
 	

	
 	

	

Distributor Name	
 	

 	
 	

Sales Person	
 	

 
	

	
 	

	
 	

	
 	

	

Customer	
 	

 	
 	

 	
 	

 
	

	
 	

	
 	

	
 	

	

Customer Application; Project Name, Model #	
 	

 	
 	

 	
 	

 
	

	
 	

	
 	

	
 	

	

ES Schedule	
 	

 	
 	

MP Schedule	
 	

 
	

	
 	

	
 	

	
 	

	

Volume Description	
 	

 	
 	

 	
 	

 
	

	
 	

	
 	

	
 	

	

Requested Price to Customer	
 	

@USD	
 	

@USD	
 	

@USD
	

	
 	

	
 	

	
 	

	

Requested Disti. Price	
 	

@USD	
 	

@USD	
 	

@USD
	

	
 	

	
 	

	
 	

---------------------------Displaytech
Use Only--------------------------- 

	

RFSQ #	
 	

 	
 	

Date of Issue	
 	

 
	

	
 	

	
 	

	
 	

	

Disti. Price	
 	

@JPN Volume	
 	

@JPN Volume	
 	

@JPN Volume
	

	
 	

	
 	

	
 	

	

Suggested Price to Customer	
 	

@JPN Volume	
 	

@JPN Volume	
 	

@JPN Volume
	

	
 	

	
 	

	
 	

	

Other Quote Conditions

i.e. Schedule	
 	

 	
 	

 	
 	

 
	

	
 	

	
 	

	
 	

	

Displaytech Authorized Person

Name and Title	
 	

 	
 	

 	
 	

 
	

	
 	

	
 	

	
 	

	

Authorized Signature	
 	

 	
 	

 	
 	

 
	

	
 	

	
 	

	
 	

EXHIBIT—F Pricing Declaration  

Entry
1, Feb 15th, 2003 

Entry
Status: Pricing Estimates (specific to LDM-031 l-D), finalization will occur prior to end of Q2-2003

Effective
from (dd/mm/yyyy)                          ending (dd/mm/yyyy)
                        
 

Signed:
Displaytech Sales Director
                                        

Nissho
Sales Director
                                        

 LV311 Family of Products:  

        (Displaytech's core costs and therefore pricing are based on Yen, pricing in $ will fluctuate with currency conversion rates and must
follow the special pricing process to be obtained.)  

	
Product Family
 
	
 	

Quantity
	
 	

Frequency

of Purchase
	
 	

Nissho

Purchase (yen)

	
LDM-0311-D	
 	

0 - 1000	
 	

1 time/monthly	
 	

[*****]
	

LDM-0311-D	

 	

1k - 5k	

 	

monthly	

 	

[*****]
	

LDM-0311-D	
 	

5k - 25k	
 	

monthly	
 	

[*****]
	

LDM-0311-D	
 	

25k - 50k	
 	

monthly	
 	

[*****]
	

LDM-0311-D	
 	

50k - 100k	
 	

monthly	
 	

[*****]
	

LDM-0311-D	
 	

100k - 200k	
 	

monthly	
 	

[*****]
	

LDM-0311-D	
 	

>200k	
 	

monthly	
 	

[*****]
	

LDE-0311-SE3	
 	

same as above	
 	

same as above	
 	

TBD (Q3-2003)
	

LDM-0311-A (analog)	
 	

same as above	
 	

same as above	
 	

115 yen added to -D version

EXHIBIT—G Displaytech's Standard Printed Warranty  

	a)
	DT
warrants DT hardware Products against defects in materials and workmanship for period of one year from the date of shipment. This warranty extends only to Customer and not to
indirect purchasers or users. If DT receives notice of any defects during the warranty period, DT will, at its option, repair or replace the affected Products. If DT is unable, within a reasonable
time, to repair, replace or correct a defect or non-conformance in a Product to a condition as warranted, Customer will be entitled to a refund of the purchase price upon prompt return of
the Product to DT.

	b)
	Customer
will prepay shipping charges (and will pay all duties and taxes) for Products returned to DT for warranty service. For valid warranty claims, DT will reimburse Customer for
prepaid freight charges and return Products to Customer at DT's expense.

	c)
	The
above warranties do not apply to defects resulting from improper or inadequate maintenance; Customer or third party supplied software, interfacing or supplies; unauthorized
modification; improper use or operation outside of the environmental specifications for the Product; abuse, negligence, accident, loss or damage in transit; improper site preparation; or unauthorized
maintenance or repair.

	d)
	THE
ABOVE WARRANTIES ARE EXCLUSIVE AND NO OTHER WARRANTY, WHETHER WRITTEN OR ORAL, IS EXPRESSED OR IMPLIED. DT SPECIFICALLY DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE. 

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