Document:

Exhibit
10.2

 

CONFIDENTIAL

 

AMENDED AND RESTATED

 

INVESTOR RIGHTS AGREEMENT

 

This Amended and Restated Investor Rights Agreement
(this “Agreement”) is made and entered into as of December 15,
2003, by and among ViewSonic Corporation, a Delaware corporation (the “Company”),
Intel Corporation, a Delaware corporation (“Intel”), Intel Capital
Corporation, a Cayman Islands company (“Intel Capital” and together with
Intel, the “Investors”), Amtran Technology Co., Ltd., a Taiwan
corporation (“Amtran”), ProDisc Technology Inc., a Taiwan corporation (“ProDisc”),
Zinwell Corporation, a Taiwan corporation, (“Zinwell”), Lin Huang
Chiu-Ho, an individual (“Chiu-Ho”), Chu Chuan Hsieh, an individual (“Hsieh”),
Chi-Hsiang Huang , an individual, Chi-Nan Huang, an individual, and Chii-an
Hwang, an individual (“Hwang,” and collectively with Zinwell, Chiu-Ho,
Hsieh, Chi-Hsiang Huang, and Chi-Nan Huang, the “Zinwell Parties”), and
James Chu, an individual (the “Founder”), with reference to the
following facts:

 

RECITALS

 

WHEREAS, on August 18, 2003, the Company, the Founder
and Amtran entered into a Settlement and Release Agreement (the “Amtran
Settlement Agreement”).

 

WHEREAS, on August 18, 2003, the Company, the Founder,
and the Zinwell Parties entered into a Settlement and Release Agreement (the “Zinwell
Settlement Agreement”).

 

WHEREAS, on August 18, 2003, the Company, the Founder
and entered into a Settlement and Release Agreement (the “ProDisc Settlement
Agreement,” and collectively with the Amtran Settlement Agreement and the
Zinwell Settlement Agreement, the “Settlement Agreements”).

 

WHEREAS, pursuant to Section 1.3 of each of the
Settlement Agreements, the Company has agreed to negotiate in good faith to
provide Amtran, the Zinwell Parties and ProDisc with registration rights,
subject to certain terms and conditions, including the consent of the
Investors.

 

WHEREAS, in connection with certain transactions
described in that certain Series B Preferred Stock Exchange and Warrant
Purchase Agreement (the “Purchase Agreement”) dated January 10, 2002
between the Company and the Invstors, including, without limitation, (i) the
exchange of shares of the Company’s Series B Preferred Stock for outstanding
shares of Series A Preferred Stock, (ii) the purchase of additional shares of Series
B Preferred Stock by Intel Capital, and (iii) the issuance by the Company of
the Interest Warrants (as defined in the Purchase Agreement) and the Valuation
Warrant (as defined in the Purchase Agreement, and together with the Interest
Warrants, the “Warrants”) for the purchase of shares of the Company’s
Series C Preferred Stock to Intel Capital, the Company, the Founder, and the
Investors entered into an Amended and Restated Investor Rights Agreement, dated
January 10, 2002 (the “Prior Agreement”).

 

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WHEREAS, in light of Section 1.3 of the Settlement
Agreements, among other things, the Company, the Founder and the Investors now
wish to amend and restate in its entirety the Prior Agreement, all in accordance
with the terms and conditions set forth in this Agreement.

 

AGREEMENT

 

In consideration of the foregoing recitals, the mutual
promises in this Agreement, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree that the Prior Agreement is hereby amended and restated in its entirety
as follows:

 

1.                                      BOARD
MATTERS; INFORMATION RIGHTS.

 

1.1                                 Intel
Board Observer.

 

(a)                                  So
long as Investors, together with any of their respective Subsidiaries, hold at
least twenty-five percent (25%) of the outstanding Series B Preferred Stock or
Series C Preferred Stock (including Common Stock issued upon conversion
thereof), the Company will permit a representative of Intel (the “Observer”)
to attend all meetings of the Board and all committees thereof (whether in
person, telephonic or other) in a non-voting, observer capacity, and shall
provide to Intel, concurrently with the members of the Board, and in the same
manner, notice of such meeting and a copy of all materials provided to such
members; provided, however, that the Company reserves the right
to withhold any information or materials and to exclude the Observer from any
meeting or portion thereof if the Board reasonably believes in its sole discretion
that access to such information or attendance at such meeting would: (i)
involve a conflict of interest regarding a material issue for the Company, (ii)
be necessary in order to meet or protect any fiduciary obligations of the Board
or (iii) adversely effect attorney-client privilege between the Company and its
counsel (provided, that in each case, all other board observers similarly
affected are also excluded).

 

(b)                                 Exchanges
of confidential and proprietary information between the Company and the Observer
shall be governed solely and exclusively by the terms of the Corporate
Non-Disclosure Agreement No. 4238355, dated March 15, 1999, executed by the
Company and Intel.

 

(c)                                  The
Company acknowledges and agrees that Intel, Intel Capital and their Subsidiaries
and Affiliates shall have no duty to refrain from engaging in directly or
investing in other entities engaged in the same or similar activities or lines
of business as those in which the Company engages.  The Company further acknowledges that Intel will likely have,
from time to time, information that may be of interest to the Company regarding
a wide variety of matters (“Information”) including, by way of example
only, (i) Intel’s technologies, plans and services, and plans and strategies
relating thereto, (ii) current and future investments Intel has made, may make,
may consider or may become aware of with respect to other companies and other
technologies, products and services, including, without limitation,
technologies, products and services that may be competitive with the Company’s,
and (iii) developments with respect to the technologies, products and services,
and plans and strategies relating thereto, of other companies, including,
without limitation, companies that may be competitive with the Company.

 

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The Company recognizes that a portion of such Information may be of
interest to the Company.  Such
Information may or may not be known by the Observer.  The Company, as a material part of the consideration for this
Agreement, agrees that Intel, Intel Capital, and the Observer shall have no
duty to disclose any Information to the Company or to permit the Company to
participate in any projects or investments based on any Information, or to
otherwise take advantage of any opportunity that may be of interest to the
Company if it were aware of such Information, and hereby waives, to the extent
permitted by law, any claim based on the corporate opportunity doctrine or
otherwise that could limit Intel’s ability to pursue opportunities based on
such Information or that would require Intel, Intel Capital, or the Observer to
disclose any such Information to the Company or offer any opportunity relating
thereto to the Company.

 

1.2                                 Information
Rights.  The Company covenants and
agrees that:

 

(a)                                  Financial
and Other Information.  For so long
as the Investors (whether separately or in combination) holds at least
twenty-five percent (25%) of the outstanding Series B Preferred Stock or Series
C Preferred Stock (including Common Stock issued upon conversion thereof), the
Company will deliver to Investors:

 

(i)                                     Annual
Financial Statements:  Within ninety
(90) days following the end of the fiscal year, audited financial statements,
accompanied by an unqualified audit report from a nationally recognized audit
firm.

 

(ii)                                  Annual
Budget:  At least thirty (30) days
after the end of each fiscal year, an annual budget, including projected income
statement, cash flow and balance sheet, for the ensuing fiscal year but
prepared on a quarter-by-quarter basis, together with a brief qualitative
description of the Company’s plan by the Chief Financial Officer in support of
that budget.

 

(iii)                               Quarterly
Financial Statements:  Within
forty-five (45) days of the end of each fiscal quarter, unaudited financial
statements.

 

(iv)                              Other
Information.  Upon the written
request by the Investors, such other information as the Investors shall
reasonably request.

 

(b)                                 Inspection
Rights.  For so long as the
Investors (whether separately or in combination) holds at least twenty-five
percent (25%) of the outstanding Series B Preferred Stock or Series C Preferred
Stock (including Common Stock issued upon conversion thereof), the Company
shall permit and cause each of its subsidiaries to permit Intel and such
persons as it may designate, at the Investors’ expense, to visit and inspect
the properties of the Company and its subsidiaries, examine their books and
make copies and extracts therefrom, discuss the affairs, finances and business
of the Company and its subsidiaries with their officers, employees and public
accountants (and the Company hereby authorizes such accountants to discuss with
Intel such affairs, finances and business), all at reasonable times and upon
reasonable notice.

 

(c)                                  Post-IPO
Information.  Commencing on the
closing date of a Qualified IPO, for so long as the Investors (whether
separately or in combination) hold at least (i) twenty-five percent (25%) of
the outstanding Series B Preferred Stock or Series C Preferred Stock (including
Common Stock issued upon conversion thereof), the Company shall deliver to

 

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the Investors copies of the Company’s 10-Ks, 10-Qs, 8-Ks and Annual
Reports to Shareholders promptly after such documents are filed with the
Securities and Exchange Commission (the “SEC”).

 

1.3                                 Termination
of Rights.  The Investors’ rights
under the above Sections 1.1, 1.2(a) and 1.2(b) shall terminate upon the
closing of a Qualified IPO.

 

2.                                      REGISTRATION
RIGHTS.

 

2.1                                 Definitions.  For purposes of this Section 2:

 

(a)                                  Registration.  The terms “register,” “registered”
and “registration” refer to a registration effected by preparing and
filing a registration statement in compliance with the Securities Act of 1933,
as amended, (the “Securities Act”), and the declaration or ordering of
effectiveness of such registration statement.

 

(b)                                 Registrable
Securities.  The term “Registrable
Securities” shall mean, except where modified by Section 2.3(a) for the
purposes of Section 2.3 only: (i) any Common Stock of the Company issued or
issuable pursuant to conversion of any shares of Series B Preferred Stock or
Series C Preferred Stock issued (A) under the Purchase Agreement, (B) upon
exercise of the Interest Warrants or the Valuation Warrant (shares issuable
upon exercise of either the Interest Warrants or the Valuation Warrant are
referred to herein as the “Warrant  Shares”), and (C) pursuant to
the Right of Participation (defined in Section 3 hereof); (ii) any shares of
Common Stock of the Company issued as (or issuable upon the conversion or
exercise of any warrant, right or other security which is issued as) a dividend
or other distribution with respect to, or in exchange for or in replacement of,
any shares of Series B Preferred Stock or Series C Preferred Stock described in
clause (i) of this subsection (b); and (iii) for the purposes of Sections 2.1
through 2.10, 6.1(b) and 9.1 through 9.13 only, any shares of the Company’s
Common Stock held by Amtran, ProDisc or the Zinwell Parties as of the date
hereof; and.  Notwithstanding the
foregoing, “Registrable Securities” shall exclude any Registrable
Securities sold by a person in a transaction in which rights under this Section
2 are not assigned in accordance with this Agreement or any Registrable Securities
sold in a public offering, whether sold pursuant to Rule 144 promulgated under
the Securities Act, or in a registered offering, or otherwise.

 

(c)                                  Registrable
Securities Then Outstanding.  The
number of shares of “Registrable Securities Then Outstanding” shall mean
the number of shares of Registrable Securities that (i) are then issued and
outstanding or (ii) are then issuable pursuant to an exercise of the Warrants
or pursuant to conversion of securities issuable pursuant to an exercise of the
Warrants.

 

(d)                                 Holder.  For purposes of this Section 2, the term “Holder”
shall mean any person owning of record Registrable Securities that have not
been sold to the public or pursuant to Rule 144 promulgated under the
Securities Act or any permitted assignee of record of such Registrable
Securities to whom rights under this Section 2 have been duly assigned in
accordance with this Agreement.

 

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(e)                                  Form
S-3.  The term “Form S-3”
shall mean such form under the Securities Act as is in effect on the date
hereof or any successor registration form under the Securities Act subsequently
adopted by the SEC which permits inclusion or incorporation of substantial
information by reference to other documents filed by the Company with the SEC.

 

2.2                                 Demand
Registration.

 

(a)                                  Request
by Holders.  If, at any time
commencing one hundred eighty-one (181) days after the closing of a Qualified
IPO, the Company shall receive a written request from the Holders of at least
twenty-five percent (25%) of the Registrable Securities  Then Outstanding (the “Initiating
Holders”)that the Company file a registration statement under the Securities
Act covering the registration of Registrable Securities pursuant to this
Section 2.2, then the Company shall, within ten (10) business days of the
receipt of such written request, give written notice of such request (“Request
Notice”) to all Holders, and use its best efforts to effect, as soon as
practicable, the registration under the Securities Act of all Registrable
Securities that Holders request to be registered and included in such
registration by written notice given such Holders to the Company within twenty
(20) days after receipt of the Request Notice, subject only to the limitations
of this Section 2.2; provided that the Registrable Securities requested
by all Holders to be registered pursuant to such request must be at least
twenty-five percent (25%) of all Registrable Securities Then Outstanding; and provided
further that the Company shall not be obligated to effect any such
registration pursuant to this Section 2.2:

 

(i)                                     In
any particular jurisdiction in which the Company would be required to execute a
general consent to service of process in effecting such registration,
qualification or compliance unless the Company is already subject to service in
such jurisdiction and except as may be required by the Securities Act;

 

(ii)                                  If
the Initiating Holders do not request that such offering be firmly underwritten
by underwriters selected by the Initiating Holders (subject to the consent of
the Company, which consent shall not be unreasonably withhold); provided,
however, that the Company is eligible to use Form S-3;

 

(iii)                               If
the Company and the Initiating Holders are unable to obtain the commitment of
the underwriter described in clause (ii) above to firmly underwrite the
offering; provided, however, that the Company is eligible to use Form S-3;

 

(iv)                              During
a period of not longer than one hundred eighty (180) days following the
effective date of a registration statement filed by the Company (other than a
registration statement covering sales by security holders other than the
Company or by the Company in a Rule 145 transaction or with respect to an
employee benefit plan;

 

Subject to the foregoing clauses (i) through (iii),
the Company shall file a registration statement covering the Registrable
Securities so requested to be registered as soon as practicable, after receipt
of the request or requests of the Initiating Holders.  The registration statement filed pursuant to the request of the
Initiating Holders may, subject to the allocation provisions of Section 2.2(b)
hereof, include other securities of the Company with respect to which
registration rights have been granted, and may include securities being sold
for the account of the Company.

 

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(b)                                 Underwriting.  The right of any Holder to include its
Registrable Securities in any registration pursuant to this Section 2.2 shall
be conditioned upon such Holder’s participation in the underwriting and the
inclusion of such Holder’s Registrable Securities in such underwriting to the
extent provided herein.  All Holders
proposing to distribute their securities through such underwriting shall enter
into an underwriting agreement in customary form with the managing underwriter
or underwriters selected for such underwriting (including a market stand-off
agreement of up to ninety (90) days if required by such underwriters and if the
Company’s officers and key employees enter into similar agreements).  Notwithstanding any other provision of this
Section 2.2, if the managing underwriter advises the Company in writing that
marketing factors require a limitation of the number of securities to be
underwritten, then the Company shall so advise all Holders of Registrable
Securities which would otherwise be registered and underwritten pursuant
hereto, and the number of Registrable Securities and other securities that may
be included in the underwriting shall be reduced as required by the underwriter
and allocated first among the Holders of Registrable Securities on a pro
rata basis according to the number of Registrable Securities Then Outstanding
held by each Holder requesting registration (including the Initiating Holders);
second, to the Company, and third among all other holders of
securities of the Company requesting inclusion in such registration on a pro
rata basis.  Any Registrable Securities
excluded and withdrawn from such underwriting shall be withdrawn from the registration.

 

(c)                                  Maximum
Number of Demand Registrations.  The
Company shall be obligated to effect only two (2) such registrations pursuant
to this Section 2.2.

 

(d)                                 Expenses.  All expenses incurred in connection with any
registration pursuant to this Section 2.2, including without limitation all
federal and “blue sky” registration, filing and qualification fees, printer’s
and accounting fees, and fees and disbursements of counsel for the Company (but
excluding underwriters’ discounts and commissions relating to shares sold by
the Holders and legal fees of counsel for the Holders), shall be borne by the
Company.  Each Holder participating in a
registration pursuant to this Section 2.2 shall bear such Holder’s proportionate
share (based on the total number of shares sold in such registration other than
for the account of the Company) of all discounts, commissions or other amounts
payable to underwriters or brokers, and the Holders’ legal fees, in connection
with such offering by the Holders. 
Notwithstanding the foregoing, the Company shall not be required to pay
for any expenses of any registration proceeding begun pursuant to this Section
2.2 if the registration request is subsequently withdrawn at the request of the
Holders of a majority of the Registrable Securities to be registered, unless
the Holders of a majority of the Registrable Securities Then Outstanding agree
that such registration constitutes the use by the Holders of one (1) demand
registration pursuant to this Section 2.2 (in which case such registration
shall also constitute the use by all Holders of Registrable Securities of one
(1) such demand registration); provided, further, however,
that if at the time of such withdrawal, the Holders have learned of a material
adverse change in the condition or business, either present or future, of the
Company not known to the Holders at the time of their request for such
registration and have withdrawn their request for registration with reasonable
promptness after learning of such material adverse change, then the Holders
shall not be required to pay any of such expenses and such registration shall
not constitute the use of a demand registration pursuant to this Section 2.2.

 

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2.3                                 Piggyback
Registrations.

 

(a)                                  Additional
Definition.  For purposes of this
Section 2.3 only, “Registrable Securities” shall mean, in addition to those
securities listed in Section 2.1(b) of this Agreement, the then-issued and
outstanding Common Stock held by the Founder.

 

(b)                                 Piggyback
Registrations.  The Company shall
notify all Holders of Registrable Securities in writing at least thirty (30)
days prior to filing any registration statement under the Securities Act for
purposes of effecting a public offering of securities of the Company
(including, but not limited to, registration statements relating to secondary
offerings of securities of the Company, but excluding registration statements
relating to any registration under Section 2.2 or Section 2.4 of this Agreement
or in connection with any employee benefit plan or merger, tender offer, or
other corporate transaction or reorganization) and will afford each such Holder
an opportunity to include in such registration statement all or any part of the
Registrable Securities then held by such Holder.  Each Holder desiring to include in any such registration
statement all or any part of the Registrable Securities held by such Holder
shall within twenty (20) days after receipt of the above-described notice from
the Company, so notify the Company in writing, and in such notice shall inform
the Company of the number of Registrable Securities such Holder wishes to
include in such registration statement. 
If a Holder decides not to include all of its Registrable Securities in
any registration statement thereafter filed by the Company, such Holder shall
nevertheless continue to have the right to include any Registrable Securities
in any subsequent registration statement or registration statements as may be
filed by the Company with respect to offerings of its securities, all upon the
terms and conditions set forth herein.

 

(c)                                  Underwriting.  If a registration statement under which the
Company gives notice under this Section 2.3 is for an underwritten offering,
then the Company shall so advise the Holders of Registrable Securities.  In such event, the right of any such
Holder’s Registrable Securities to be included in a registration pursuant to
this Section 2.3 shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the
underwriting to the extent provided herein. 
All Holders proposing to distribute their Registrable Securities through
such underwriting shall enter into an underwriting agreement in customary form
with the managing underwriter or underwriters selected for such underwriting,
including a market stand-off agreement, if required by the underwriters, of up
to one hundred eighty (180) days in the case of a Qualified IPO and up to
ninety (90) days in connection with a secondary offering in which the Holder
has exercised its rights hereunder without reduction.  Notwithstanding any other provision of this Agreement, if the
managing underwriter determines in good faith that marketing factors require a
limitation of the number of shares to be underwritten, then the managing
underwriter may exclude shares from the registration and the underwriting, and
the number of shares that may be included in the registration and the
underwriting shall be allocated, first to the Company, second, to
the Holders and the Founder, in each case, to the extent such parties have
requesting inclusion of their Registrable Securities in such registration such
that the aggregate number of shares held by the Holders to be included in the
registration and underwriting shall equal the lesser of (1) the aggregate
number of shares requested by the Holders to be included in the registration
and underwriting, and (2) ninety percent (90%) of the aggregate number of
shares held by the Holders and the  Founder
which may be included in the registration and the underwriting as determined by
the managing underwriter (allocated pro rata by the aggregate number of shares

 

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requested by the Holders to be included in the underwriting), with the
remaining ten percent (10%) of such shares being allocated to the Founder (or
such lesser amount as is requested by the Founder to be included in the
registration and underwriting), and third among all other holders of
securities of the Company requesting inclusion in such registration on a pro
rata basis; provided, however, that the right of the managing underwriter to
exclude shares (including Registrable Securities) from the registration and
underwriting as described above shall be restricted so that all shares that are
not Registrable Securities and are held by any other person, including, without
limitation, any person who is an employee, officer or director of the Company
(or any subsidiary of the Company) other than the Founder shall first be
excluded from such registration and underwriting before any Registrable
Securities are so excluded.  If any
Holder disapproves of the terms of any such underwriting, such Holder may elect
to withdraw therefrom by written notice to the Company and the underwriter(s),
delivered at least ten (10) business days prior to the effective date of the
registration statement.  Any Registrable
Securities excluded or withdrawn from such underwriting shall be excluded and
withdrawn from the registration.  For
any Holder that is a partnership or limited liability company, the Holder and
the partners or members and retired partners or members of such Holder, or the
estates and family members of any such partners or members and retired partners
or members and any trusts for the benefit of any of the foregoing persons, and
for any Holder that is a corporation, the Holder and all corporations that are
affiliates of such Holder shall be deemed to be a single “Holder,” and any pro
rata reduction with respect to such “Holder” shall be based upon the aggregate
amount of shares carrying registration rights owned by all entities and
individuals included in such “Holder,” as defined in this sentence.

 

(d)                                 Expenses.  All expenses incurred in connection with a
registration pursuant to this Section 2.3 (excluding underwriters’ and brokers’
discounts and commissions relating to shares sold by the Holders and legal fees
of counsel for the Holders), including, without limitation all federal and
“blue sky” registration, filing and qualification fees, printers’ and
accounting fees, and fees and disbursements of counsel for the Company, shall
be borne by the Company.

 

(e)                                  Not
Demand Registration.  Registration
pursuant to this Section 2.3 shall not be deemed to be a demand registration as
described in Section 2.2 above.  Except
as otherwise provided herein, there shall be no limit on the number of times
the Holders may request registration of Registrable Securities under this
Section 2.3.

 

2.4                                 Form
S-3 Registration.  In case the
Company shall at any time commencing one hundred eighty-one (181) days after
closing of a Qualified IPO receive from any Holder or Holders of a majority of
all Registrable Securities Then Outstanding a written request or requests that
the Company effect a registration on Form S-3 and any related qualification or
compliance with respect to all or a part of the Registrable Securities owned by
such Holder or Holders, then the Company will:

 

(a)                                  Notice.  Promptly give written notice of the proposed
registration and the Holder’s or Holders’ request therefore, and any related
qualification or compliance, to all other Holders of Registrable Securities;
and

 

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(b)                                 Registration.  As soon as practicable, effect such
registration and all such qualifications and compliance as may be so requested
and as would permit or facilitate the sale and distribution of all or such
portion of such Holders or Holders’ Registrable Securities as are specified in
such request, together with all or such portion of the Registrable Securities
of any other Holder or Holders joining in such request as are specified in a
written request given within twenty (20) days after the Company provides the
notice contemplated by Section 2.4(a); provided, however, that
the Company shall not be obligated to effect any such registration,
qualification or compliance pursuant to this Section 2.4:

 

(i)                                     if
Form S-3 is not available for such offering by the Holders:

 

(ii)                                  if
the Company has, within the twelve (12) month period preceding the date of such
request, already effected a registration on Form S-3 pursuant to this Section
2.4; or

 

(iii)                               in
any particular jurisdiction in which the Company would be required to qualify
to do business or to execute a general consent to service of process in
effecting such registration, qualification or compliance.

 

(c)                                  Expenses.  The Company shall pay all expenses incurred
in connection with each registration requested pursuant to this Section 2.4,
(excluding underwriters’ or brokers’ discounts and commissions relating to
shares sold by the Holders and legal fees of counsel for the Holders),
including without limitation federal and “blue sky” registration, filing and
qualification fees, printers’ and accounting fees, and fees and disbursements
of counsel.

 

(d)                                 Not
Demand Registration.  Form S-3
registrations shall not be deemed to be demand registrations as described in
Section 2.2 above.  Except as otherwise
provided herein, there shall be no limit on the number of times the Holders may
request registration of Registrable Securities under this Section 2.4.

 

2.5                                 Obligations
of the Company.  Whenever required
to effect the registration of any Registrable Securities under this Agreement
the Company shall, as expeditiously as reasonably possible:

 

(a)                                  Registration
Statement.  Prepare and file with
the SEC a registration statement with respect to such Registrable Securities
and use its best efforts to cause such registration statement to become
effective, provided, however, that the Company shall not be
required to keep any such registration statement effective for more than one
hundred eighty (180) days or, if earlier, until the Holders have completed the
distribution related thereto.

 

(b)                                 Amendments
and Supplements.  Prepare and file
with the SEC such amendments and supplements to such registration statement and
the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to
the disposition of all securities covered by such registration statement.

 

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(c)                                  Prospectuses.  Furnish to the Holders such number of copies
of a prospectus, including a preliminary prospectus, in conformity with the
requirements of the Securities Act, and such other documents incident thereto
as they may reasonably request in order to facilitate the disposition of the
Registrable Securities owned by them that are included in such registration.

 

(d)                                 Blue
Sky.  Use its best efforts to
register and qualify the securities covered by such registration statement
under such other securities or Blue Sky laws of such jurisdictions as shall be
reasonably requested by the Holders, provided that the Company shall not be
required in connection therewith or as a condition thereto to qualify to do
business or to file a general consent to service of process in any such states
or jurisdictions.

 

(e)                                  Underwriting.  In the event of any underwritten public
offering, enter into and perform its obligations under an underwriting
agreement in usual and customary form, with the managing underwriter(s) of such
offering.  Each Holder participating in
such underwriting shall also enter into and perform its obligations under such
an agreement.

 

(f)                                    Notification.  Notify each Holder of Registrable Securities
covered by such registration statement at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening
of any event as a result of which the prospectus included in such registration
statement, as then in effect, includes an untrue statement of a material fact
or omits to state a material fact required to be stated therein or necessary to
make the statements therein not misleading in the light of the circumstances
then existing.  In such event, the
Company shall prepare a supplement or post-effective amendment to such
registration statement or related prospectus or file any other required
document so that, as thereafter delivered to the purchasers of Registrable
Securities sold thereunder, the prospectus will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.

 

(g)                                 Opinion
and Comfort Letter.  Furnish, at the
request of any Holder requesting registration of Registrable Securities, on the
date that such Registrable Securities are delivered to the underwriters for
sale, if such securities are being sold through underwriters, or, if such
securities are not being sold through underwriters, on the date that the
registration statement with respect to such securities becomes effective, (i)
an opinion, dated as of such date, of the counsel representing the Company for
the purposes of such registration, in form and substance as is customarily
given to underwriters in an underwritten public offering and reasonably
satisfactory to a majority in interest of the Holders requesting registration,
addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities and (ii) a “comfort” letter dated as of
such date, from the independent certified public accountants of the Company, in
form and substance as is customarily given by independent certified public
accountants to underwriters in an underwritten public offering and reasonably
satisfactory to a majority in interest of the Holders requesting registration,
addressed to the underwriters, if any, and to the Holders requesting
registration of Registrable Securities.

 

(h)                                 Suspension
Provisions.  Notwithstanding the
foregoing subsections of this Section 2, the Company shall not be required to
take any action with respect to the

 

10

 

registration or the declaration of effectiveness of the registration
statement following written notice to the Holders from the Company (a “Suspension
Notice”) of the existence of any state of facts or the happening of any
event (including pending negotiations relating to, or the consummation of, a
transaction, or the occurrence of any event that the Company believes, in good
faith, requires additional disclosure of material, non-public information by
the Company in the registration statement that the Company believes it has a
bona fide business purpose for preserving confidentiality or that renders the
Company unable to comply with the published rules and regulations of the SEC
promulgated under the Securities Act or the Exchange Act, as in effect at any
relevant time (the “Rules and Regulations”)) that would result in (1)
the registration statement, any amendment or post-effective amendment thereto,
or any document incorporated therein by reference containing an untrue
statement of a material fact or omitting to state a material fact required to
be stated therein or necessary to make the statements therein not misleading,
or (2) the prospectus issued under the registration statement, any prospectus
supplement, or any document incorporated therein by reference including an
untrue statement of material fact or omitting to state a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, provided that
the Company (1) shall not issue a Suspension Notice more than once in any
twelve (12) month period, (2) shall use reasonable efforts to remedy, as
promptly as practicable, but in any event within ninety (90) days of the date
on which the Suspension Notice was delivered, the circumstances that gave rise
to the Suspension Notice and deliver to the Holders notification that the
Suspension Notice is no longer in effect and (3) shall not issue a Suspension
Notice for any period during which the Company’s executive officers are not
similarly restrained from disposing shares of the Company’s Common Stock.  Upon receipt of a Suspension Notice from the
Company, all time limits applicable to the Holders under this Section 2 shall
automatically be extended by an amount of time equal to the amount of time the
Suspension Notice is in effect, the Holders will forthwith discontinue
disposition of all such shares pursuant to the registration statement until
receipt from the Company of copies of prospectus supplements or amendments prepared
by or on behalf of the Company (which the Company shall prepare promptly),
together with a notification that the Suspension Notice is no longer in effect,
and if so directed by the Company, the Holders will deliver to the Company all
copies in their possession of the prospectus covering such shares current at
the time of receipt of any Suspension Notice.

 

2.6                                 Furnish
Information.  It shall be a
condition precedent to the obligations of the Company to take any action
pursuant to Sections 2.2, 2.3 or 2.4 that the selling Holders shall furnish to
the Company such information regarding themselves, the Registrable Securities
held by them, and the intended method of disposition of such securities as
shall be required to timely effect the Registration of their Registrable
Securities.

 

2.7                                 Indemnification.  In the event any Registrable Securities are
included in a registration statement under Sections 2.2, 2.3 or 2.4:

 

(a)                                  By
the Company.  To the extent
permitted by law, the Company will indemnify and hold harmless each Holder, the
partners, officers and directors of each Holder, any underwriter (as determined
in the Securities Act) for such Holder and each person, if any, who controls
such Holder or underwriter within the meaning of the Securities Act or the
Exchange Act, against any losses, claims, damages, or Liabilities (joint or
several) to which they may become subject under the Securities Act, the
Exchange Act or other federal or state

 

11

 

securities law, insofar as such losses, claims, damages, or liabilities
(or actions in respect thereof) arise out of or are based upon any of the
following statements, omissions or violations (collectively a “Violation”):

 

(i)                                     any
untrue statement or alleged untrue statement of a material fact contained in
such registration statement, including any preliminary prospectus or final
prospectus contained therein or any amendments or supplements thereto;

 

(ii)                                  the
omission or alleged omission to state therein a material fact required to be
stated therein, or necessary to make the statements therein not misleading, or

 

(iii)                               any
violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any federal or state securities law or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any federal or state securities
law in connection with the offering covered by such registration statement;

 

and the Company will reimburse each such Holder,
partner, officer or director, underwriter or controlling person for any legal
or other expenses reasonably incurred by them, as incurred, in connection with
investigating or defending any such loss, claim, damage, liability or action; provided,
however, that the indemnity agreement contained in this subsection
2.7(a) shall not apply to amounts paid in settlement of any such loss, claim,
damage, liability or action if such settlement is effected without the consent
of the Company (which consent shall not be unreasonably withheld), nor shall
the Company be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon a
Violation which occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration by
such Holder, partner, officer, director, underwriter or controlling person of
such Holder.

 

(b)                                 By
Selling Holders.  To the extent
permitted by law, each selling Holder will indemnify and hold harmless the
Company, its directors, officers, each person, if any, who controls the Company
within the meaning of the Securities Act,’ any underwriter and any other Holder
selling securities under such registration statement or any of such other
Holder’s partners, directors or officers or any person who controls such Holder
within the meaning of the Securities Act or the Exchange Act, against any
losses, claims, damages or liabilities (joint or several) to which the Company
or any such director, officer, controlling person, underwriter or other such
Holder, partner or director, officer or controlling person of such other Holder
may become subject under the Securities Act, the Exchange Act or other federal
or state securities law, insofar as such losses, claims, damages or liabilities
(or actions in respect thereto) arise out of or are based upon any Violation,
in each case to the extent (and only to the extent) that such Violation occurs
in reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will reimburse any legal or other expenses reasonably incurred by the
Company or any such director, officer, controlling person, underwriter or other
Holder, partner, officer, director or controlling person of such other Holder
in connection with investigating or defending any such loss, claim, damage,
liability or action; provided, however, that the indemnity
agreement contained in this subsection 2.7(b) shall not apply to amounts paid
in settlement of any such loss, claim, damage, liability or action if such
settlement is effected

 

12

 

without the consent of the indemnifying Holder, which consent shall not
be unreasonably withheld; and provided, further, that the total
amounts payable in indemnity by a Holder under this Section 2.7(b) in respect
of any Violation shall not exceed the net proceeds received by such Holder in
the registered offering out of which such Violation arises.

 

(c)                                  Notice.  Promptly after receipt by an indemnified
party under this Section 2.7 of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this Section
2.7, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume the defense thereof with
counsel mutually satisfactory to the parties; provided, however, that an
indemnified party shall have the right to retain its own counsel, with the fees
and expenses to be paid by the indemnifying party, if representation of such
indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential conflict of interests between such
indemnified party and any other party represented by such counsel in such
proceeding.  The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall relieve such indemnifying party of
liability to the indemnified party under this Section 2.7 to the extent the
indemnifying party is prejudiced as a result thereof, but the failure to
deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under this
Section 2.7.

 

(d)                                 Defect
Eliminated in Final Prospectus.  The
foregoing indemnity agreements of the Company and Holders are subject to the
condition that, insofar as they relate to any Violation made in a preliminary
prospectus but eliminated or remedied in the amended prospectus on file with
the SEC at the time the registration statement in question becomes effective or
the amended prospectus filed with the SEC pursuant to SEC Rule 424(b) (the “Final
Prospectus”), such indemnity agreement shall not inure to the benefit of
any person if a copy of the Final Prospectus was timely furnished to the
indemnified party and was not furnished to the person asserting the loss,
liability, claim or damage at or prior to the time such action is required by
the Securities Act.

 

(e)                                  Contribution.  In order to provide for just and equitable
contribution to joint liability under the Securities Act in any case in which
either (i) any Holder exercising rights under this Agreement, or any
controlling person of any such Holder, makes a claim for indemnification
pursuant to this Section 2.7 but it is judicially determined (by the entry of a
final judgment or decree by a court of competent jurisdiction and the
expiration of time to appeal or the denial of the last right of appeal) that
such indemnification may not be enforced in such case notwithstanding the fact
that this Section 2.7 provides for indemnification in such case, or (ii)
contribution under the Securities Act may be required on the part of any such
selling Holder or any such controlling person in circumstances for which
indemnification is provided under this Section 2.7; then, and in each such
case, the Company and such Holder will contribute to the aggregate losses,
claims, damages or liabilities to which they may be subject (after contribution
from others) in such proportion as shall be appropriate to reflect the relative
fault of such party with respect to the statements or omissions that resulted
in the loss, claim, damage or liability, or action in respect thereof, as well
as any other relevant equitable considerations, and

 

13

 

the other selling Holders shall be responsible for the remaining
portion.  The relative fault shall be
determined by reference to whether the untrue or alleged untrue statement of a
material fact or omission or alleged omission to state a material fact relates
to information supplied specifically for use in any registration statement,
prospectus, offering circular or other similar document, the intent of the
parties and their relative knowledge, access to information and opportunity to
correct or prevent such statement or omission, but not by reference to any such
Holder’s stock ownership in the Company; provided, however, that,
in any such case: (A) no such Holder will be required to contribute any amount
in excess of the public offering price of all such Registrable Securities
offered and sold by such Holder pursuant to such registration statement; and
(B) no person or entity guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) will be entitled to
contribution from any person or entity who was not guilty of such fraudulent
misrepresentation.

 

(f)                                    Survival.  The obligations of the Company and Holders
under this Section 2.7 shall survive until the third anniversary of the
completion of any offering of Registrable Securities in a registration
statement, regardless of the expiration of any statutes of limitation or
extensions of such statutes.

 

2.8                                 Market
Stand-off Agreement.  Each Holder
hereby agrees that such Holder shall not sell, transfer, make any short sale
of, grant any option for the purchase of, or enter into any hedging or similar
transaction with the same economic effect as a sale, any Common Stock (or other
securities) of the Company held by such Holder (other than those included in
the registration) for a period specified by the representative of the
underwriters of Common Stock (or other securities) of the Company not to exceed
one hundred eighty (180) days following the effective date of a registration
statement of the Company filed under the Securities Act; provided that:

 

(a)                                  such
agreement shall apply only to the Company’s Initial Public Offering; and

 

(b)                                 all
officers and directors of the Company enter
into similar agreements;

 

provided further,
that this Section 2.8 shall be null and void with respect to a Holder, upon the
execution and delivery by such Holder of a market stand-off agreement of
customary form and period of length with the representative of the underwriters
of Common Stock (or other securities) in the Company’s Initial Public Offering.

 

2.9                                 Termination
of the Company’s Obligations.  The
Company shall have no obligations pursuant to Sections 2.2 through 2.4 with
respect to any Registrable Securities proposed to be sold by a Holder in a
registration pursuant to Section 2.2, 2.3 or 2.4 (i) after January 10, 2007 or
(ii), if, in the opinion of counsel to the Company, all such Registrable
Securities proposed to be sold by a Holder may then be sold under Rule 144 in
one transaction without exceeding the volume limitations thereunder.

 

2.10                           No
Registration Rights to Third Parties. 
Without the prior written consent of the holders of a majority in
interest of the Registrable Securities Then Outstanding held by the

 

14

 

Investors, the Company covenants and agrees that it shall not grant, or
cause or permit to be created, for the benefit of any person or entity any
registration rights of any kind (whether similar to the demand, “piggyback” or
Form S-3 registration rights described in this Article 2, or otherwise)
relating to shares of the Company’s Series B Preferred Stock, Series C
Preferred Stock, or any securities of the Company, other than rights that are on
a parity with or subordinate in right to the rights provided herein.

 

3.                                      RIGHT
OF PARTICIPATION.

 

3.1                                 General.  Investors and any assignee to which rights
under this Section 3 have been duly assigned in accordance with Section 6 (a “Participation
Rights Holder”) shall have the right of first refusal to purchase up to
such Participation Rights Holder’s Pro Rata Share, of all (or any part) of any
New Securities that the Company may from time to time issue after the date of
this Agreement (the “Right of Participation”).

 

3.2                                 Pro
Rata Share.  A Participation Rights
Holder’s “Pro Rata Share” for purposes of the Right of Participation is
the ratio of (a) the number of Registrable Securities held by such
Participation Rights Holder to (b) the total number of shares of Common Stock
outstanding immediately prior to the issuance of New Securities, assuming full
conversion of all Series B Preferred Stock and Series C Preferred Stock and
exercise of all outstanding rights, options and warrants to acquire Series B
Preferred Stock, Series C Preferred Stock, and Common Stock of the Company.

 

3.3                                 New
Securities.  “New Securities”
shall mean any Series B Preferred Stock, Series C Preferred Stock, Preferred
Stock, Common Stock or other voting capital stock of the Company, whether now
authorized or not, and rights, options or warrants to purchase such Series B
Preferred Stock, Series C Preferred Stock, Common Stock and securities of any
type whatsoever that are, or may become, convertible or exchangeable into such
Series B Preferred Stock, Series C Preferred Stock, Common Stock or other
capital stock, provided, however, that the term “New Securities”
shall not include:

 

(a)                                  shares
of Series B Preferred Stock or Series C Preferred Stock issued pursuant to the
Purchase Agreement and Common Stock issued upon conversion of Series B
Preferred Stock or Series C Preferred Stock to Common Stock;

 

(b)                                 up
to 43,033,892 (as adjusted for any stock splits, stock dividends,
recapitalizations and similar transactions) shares of Common Stock or options
therefor issued to officers, directors, employees and consultants of the
Company pursuant to stock option or purchase plans or other incentive stock
arrangements approved by a majority of the members of the Board (including (i)
all currently issued and outstanding shares or options, (ii) all shares or
options that are available for future grant and (iii) all options that have
been granted and exercised previously for shares of the Company’s Common Stock,
in each case, under any such plan or arrangement) and any other shares of
Common Stock purchased at no more than cost from and reissued to officers,
directors, employees, and consultants subsequent to the Original Issue Date (as
that term is defined in the Company’s Amended and Restated Certificate of Incorporation);

 

15

 

(c)                                  shares
of Common Stock or warrants therefore issued to equipment lessors, secured
lenders or strategic partners, provided, however, that such
shares, warrants or shares issuable upon exercise of such warrant shall not, at
any time, exceed one percent (1%]) of the outstanding shares of Common Stock
and Preferred Stock;

 

(d)                                 shares
of Common Stock issued in a Qualified IPO;

 

(e)                                  shares
of Common Stock issued as a dividend or distribution on Series B Preferred
Stock or Series C Preferred Stock or other event for which adjustment is made
pursuant to the Company’s Amended and Restated Certificate of Incorporation;

 

(f)                                    shares
of Series C Preferred Stock or Common Stock issued pursuant to the Interest
Warrants and the Valuation Warrant; and

 

(g)                                 shares
of Common Stock or other securities convertible into, exchangeable for or
exercisable for Common Stock, not to exceed 20,000 shares in the aggregate (as
adjusted for any stock splits, stock dividends, recapitalizations and similar
transactions); provided, that in order for such shares to not constitute New
Securities, the Company shall, on or prior to the earlier of (i) the date on
which the Company has knowledge of such any such issuance and (ii) the date on
which the Company is required to deliver financial statements pursuant to the
terms of this Agreement covering the period during which any such issuance
occurred, promptly deliver a certificate signed by an authorized officer of the
Company to each Investor indicating the amount of such issuance, the price per
share and stating (i) that the Company has irrevocably elected to avail itself
of this Section 3.3(g)) with respect to such issuance and (ii) the number of
shares following such election available under this exception.

 

3.4                                 Procedures.  In the event that the Company proposes to
undertake an issuance of New Securities (in a single transaction or a series of
related transactions), it shall give to each Participation Rights Holder
written notice of its intention to issue New Securities (the “Participation
Notice”), describing the amount and the type of New Securities, the price
and the general terms upon which the Company proposes to issue such New
Securities and such Participation Rights Holder’s Pro Rata Share of such New
Securities.  Each Participation Rights
Holder shall have ten (10) business days from the date of receipt of any such
Participation Notice to agree in writing to purchase (i) up to such
Participation Rights Holder’s Pro Rata Share of such New Securities, (ii) the
shares of Participation Rights Holders who elect not to purchase their Pro Rata
Share (“Oversubscription Shares”) or (iii) any amounts thereof, for the
price and upon the terms and conditions specified in the Participation
Notice.  Such notice shall be given to
the Company and state the quantity of New Securities to be purchased.  If any Participation Rights Holder fails to
so agree in writing within such ten (10) business day period to purchase such
Participation Rights Holder’s full Pro Rata Share of an offering of New
Securities, then such Participation Rights Holder shall forfeit the right
hereunder to purchase that part of its Pro Rata Share of such New Securities
that it did not so agree to purchase. 
Such Participation Rights Holder shall purchase the portion elected by
such Participation Rights Holder, if any, concurrently with the closing of the
transaction triggering the Right of Participation.  If, in the aggregate, Participation Rights Holders desire to purchase
more Oversubscription Shares than are available, such shares shall be allocated
to the Participation Rights Holders in proportion to the number of Registrable
Securities held by such Participation Rights Holders.

 

16

 

3.5                                 Failure
to Exercise.  Upon the expiration of
the ten (10) day period referred to in Section 3.4, the Company shall have one
hundred twenty (120) days thereafter to sell the New Securities described in
the Participation Notice (with respect to which the Participation Rights
Holders’ rights of first refusal hereunder were not exercised) at the same or
higher price and upon non-price terms not materially more favorable to the
purchasers thereof than specified in the Participation Notice.  In the event that the Company has not issued
and sold such New Securities within such one hundred twenty (120) day period,
then the Company shall not thereafter issue or sell any New Securities without
again first offering such New Securities to the Participation Rights Holders
pursuant to this Section 3.

 

4.                                      NOTICE
OF CORPORATE EVENTS.

 

4.1                                 Corporate
Event.  A “Corporate Event”
shall mean any of the following, whether accomplished through one or a series
of related transactions: (a) the sale of all or substantially all of the assets
of the Company or (b) an acquisition of the Company by consolidation, merger,
share purchase or exchange, or other reorganization or transaction in which the
holders of the Company’s outstanding voting stock immediately prior to such
transaction own, immediately after such transaction, securities representing
less than a majority of the voting power of the corporation or other entity
surviving such transaction.  The Company
agrees that it will provide Investors with detailed written notice of any offer
from a third party for a proposed Corporate Event within three (3) business
days of the date the Company first becomes aware of such offer or proposed
Corporate Event.

 

4.2                                 Notice
of Corporate Events.

 

(a)                                  The
Company shall provide notice of each Corporate Event at least 30 days prior to
the anticipated consummation, if any, thereof, specifying the terms and
conditions of the Corporate Event, including the proposed selling price for the
Company or the assets, the proposed structure of the transaction, a list of the
persons who propose to acquire the Company or the assets (each an “Acquirer”),
when the Corporate Event involves an acquisition of assets, a description of
the assets to be sold, and the other material terms and conditions of the
Corporate Event.

 

(b)                                 The
Company shall not consummate a Corporate Event unless the surviving entity
agrees in writing to be bound by the terms of the Amended and Restated
Development Agreement if such Amended and Restated Development Agreement is still
in effect.

 

5.                                      CO-SALE
AGREEMENT.

 

5.1                                 Co-Sale
Right.

 

(a)                                  If
the Founder proposes to sell or transfer any shares of Common Stock held by the
Founder, then the Founder shall promptly give written notice (the “Co-Sale
Notice”) to the Investors and the Company at least twenty (20) business days
prior to the closing of such sale or transfer. 
The Notice shall describe in reasonable detail the proposed sale or
transfer including, without limitation, the number of shares to be sold or
transferred, the consideration to be paid, and the name of each prospective
purchaser or transferee.

 

17

 

(b)                                 So
long as the Investors (whether separately or in combination) hold at least
twenty five percent (25%) of the shares of Series B Preferred Stock or Series C
Preferred Stock (including Common Stock issued upon conversion thereof),
Investors shall have the right, exercisable upon written notice to the Founder
to participate in such sale by the Founder on the same terms and conditions.  If either Investor exercises such right of
participation in accordance with the terms and conditions set forth below, the
number of shares that the Founder may sell in the transaction shall be
correspondingly reduced.  The co-sale
right shall be subject to the following terms and conditions:

 

(i)                                     Investors
may sell, in the aggregate, all or any part of that number of shares of Series
B Preferred Stock, Series C Preferred Stock, or Common Stock issued upon
conversion thereof that is not in excess of the product obtained by multiplying
(y) the aggregate number of shares covered by the Co-Sale Notice by (z) a
fraction, the numerator of which is the number of shares of Series B Preferred
Stock, Series C Preferred Stock and Common Stock owned by Investors and their
affiliates at the time of the sale or transfer and the denominator of which is
the number of shares of Series B Preferred Stock, Series C Preferred Stock and
Common Stock at the time owned by the Founder, Investors, and affiliates of
Investors.

 

(ii)                                  Each
Investor shall effect its participation in the sale by delivering to the
Company, within fifteen (15) business days after the date the Co-Sale Notice is
effective, a written election to participate in the proposed transfer, along
with one or more certificates, properly endorsed for transfer, which represent:

 

(A)                              the
type and number of shares which such Investor elects to sell; or

 

(B)                                that
number of shares of Series B Preferred Stock or Series C Preferred Stock which
is at such time convertible into the number of shares of Common Stock that such
Investor elects to sell; provided, however, that if the prospective purchaser
objects to the delivery of Series B Preferred Stock or Series C Preferred Stock
in lieu of Common Stock, such Investor shall convert such Series B Preferred
Stock or Series C Preferred Stock into Common Stock and deliver Common Stock as
provided in subparagraph 5.1(ii)(A) above. 
The Company agrees to make any such conversion concurrent with the
actual transfer of such shares to the purchaser.

 

(iii)                               The
certificates, if any, that an Investor delivers to the Company pursuant to
Section 5.1 (ii) shall be transferred to the prospective purchaser in
consummation of the sale of shares pursuant to the terms and conditions
specified in the Co-Sale Notice, and the Founder shall concurrently therewith
remit to such Investor that portion of the sale proceeds to which such Investor
is entitled by reason of its participation in such sale.  To the extent that any prospective purchaser
or purchasers prohibits such assignment or otherwise refuses to purchase
securities from an Investor exercising its rights of co-sale hereunder, the
Founder shall not sell to such prospective purchaser or purchasers any shares
unless and until, simultaneously with such sale, the Founder shall purchase
such shares or other securities from such Investor.

 

18

 

(c)                                  To
the extent Investors do not elect to participate in the sale of shares covered
by a Co-Sale Notice, the Founder may, not later than ninety (90) days following
delivery to the Company and Investors of the Co-Sale Notice, conclude a
transfer of the shares covered by the Co-Sale Notice on terms and conditions
not more favorable to the transferor than those described in the Co-Sale
Notice.  Any proposed transfer on terms
and conditions more favorable than those described in the Co-Sale Notice, as
well as any subsequent proposed transfer of any shares by the Founder, shall
again be subject to the rights of co-sale of Investors and shall require
compliance by the Founder with the procedures described in this Section 5.

 

5.2                                 Exempt
Transfers.  Notwithstanding the
foregoing, and subject to a limit of no more than ten percent (10%) of the
shares owned by the Founder as of the date hereof, the co-sale rights of the
Investors shall not apply to: (a) any pledge of shares made pursuant to a bona
fide loan transaction that creates a mere security interest; (b) any transfer
to the ancestors, descendants or spouse or to trusts for the benefit of the
Founder; or (c) any bona fide gift; provided that (i) the transferring Founder
shall inform Investors of such pledge, transfer or gift prior to effecting it
and (ii) the pledgee, transferee or donee shall furnish Investors and the
Company with a written agreement to be bound by and comply with all provisions
of Section 5 this Agreement.  Such
transferred shares shall remain subject to this Section 5, and such transferee
or donee shall be treated as a “Founder” for purposes of Section 5 of this
Agreement.

 

5.3                                 Prohibited
Transfers.  In the event the Founder
should sell any shares in contravention of this Agreement (a “Prohibited
Transfer”), Investors, in addition to such other remedies as may be
available at law, in equity or hereunder, shall have the put option provided
below, and the Founder shall be bound by the applicable provisions of such put
option.  In the event of a Prohibited
Transfer, Investors shall have the right to sell to the Founder the type and
number of shares equal to the number of shares Investors would have been
entitled to transfer to the purchaser under Section 5.1 had the Prohibited
Transfer been effected pursuant to and in compliance with the terms
hereof.  Such sale shall be made on the
following terms and conditions:

 

(a)                                  The
price per share at which the shares are to be sold to the Founder shall be
equal to the price per share paid by the purchaser to the Founder in the
Prohibited Transfer.  The Founder shall
also reimburse Investors for any and all fees and expenses, including legal
fees and expenses, incurred pursuant to the exercise or the attempted exercise
of the Investors’ rights under this Section 5.

 

(b)                                 Within
ninety (90) days after the later of the dates on which Investors (i) received
notice of the Prohibited Transfer or (ii) otherwise become aware of the
Prohibited Transfer, an Investor shall, if exercising the option created
hereby, deliver to the Founder the certificate or certificates representing the
shares to be sold, each certificate to be properly endorsed for transfer.

 

(c)                                  The
Founder shall, upon receipt of the certificate or certificates for the shares
to be sold by an Investor, pursuant to Section 5.3, pay the aggregate purchase
price therefore and the amount of reimbursable fees and expenses, as specified
in Section 5.3(a)(i) in cash or by other means acceptable to such Investor.

 

19

 

(d)                                 Notwithstanding
the foregoing, any attempt by the Founder to transfer shares in violation of
this Agreement shall be void, and the Company agrees it will not effect such a
transfer nor will it treat any alleged transferee as the holder of such units
without the written consent of Investors.

 

5.4                                 Legends.

 

(a)                                  Each
certificate representing shares now or hereafter owned by the Founder or issued
to any person in connection with a transfer pursuant to Section 5.3 shall be
endorsed with the following legend:

 

THE
SALE, PLEDGE, HYPOTHECATION OR TRANSFER OF THE SECURITIES REPRESENTED BY THIS
CERTIFICATE IS SUBJECT TO THE TERMS AND CONDITIONS OF A CERTAIN CO-SALE
AGREEMENT BY AND AMONG THE CORPORATION, CERTAIN INVESTORS AND THE FOUNDER.  COPIES OF SUCH AGREEMENT MAY BE OBTAINED
UPON WRITTEN REQUEST TO THE SECRETARY OF THE CORPORATION.

 

(b)                                 The
Founder agrees that the Company may instruct its transfer agent to impose
transfer restrictions on the units represented by certificates bearing the
legend referred to in Section 5.4 to enforce the provisions of this Agreement,
and the Company agrees to promptly do so. 
The legend shall be removed upon termination of this Agreement.

 

5.5                                 Termination
of Rights.  The rights of Investors
under this Section 5 shall terminate and be of no further force and effect upon
the closing of a Qualified IPO.

 

5.6                                 Founder.  For purposes of this Section 5, Founder
shall include any entity that is an Affiliate of James Chu and that owns more
than ten percent (10%) of the outstanding stock of the Company on the date of
this Agreement.

 

6.                                      ASSIGNMENT
AND AMENDMENT.

 

6.1                                 Assignment.  Notwithstanding anything herein to the
contrary:

 

(a)                                  Information
Rights.  The rights of Investors
under Section 1.1 may not be assigned. 
The rights of Investors under Section 1.2 are transferable to (i) any of
such Investor’s Affiliates (as defined in the Purchase Agreement) or (ii) any
person who acquires at least ten percent (10%) of the outstanding Series B
Preferred Stock or Series C Preferred Stock (including Common Stock issued upon
conversion thereof) or all of such Investor’s Series B Preferred Stock and Series
C Preferred Stock, if less (in each case, including Common Stock issued upon
conversion thereof); provided, however, that no party may be
assigned any of the foregoing rights unless the Company is given written notice
by the assigning party at the time of such assignment stating the name and
address of the assignee and identifying the securities of the Company as to
which the rights in question are being assigned; and provided  further
that any such assignee shall receive such assigned rights subject to all the
terms and conditions of this Agreement, including without limitation the
provisions of this Section 6.

 

20

 

(b)                                 Registration
Rights.  The registration rights of
Holders under Section 2 hereof may be assigned to (i) any of such Holder’s
Affiliates (as defined in the Purchase Agreement) or (ii) any person who
acquires at least ten percent (10%) of the outstanding Series B Preferred Stock
or Series C Preferred Stock or all of such Holder’s Series B Preferred Stock
and Series C Preferred Stock, if less (in each case, including Common Stock
issued upon conversion thereof); provided, however, that no party
may be assigned any of the foregoing rights unless the Company is given written
notice by the assigning party at the time of such assignment stating the name
and address of the assignee and identifying the securities of the Company as to
which the rights in question are being assigned; and provided  further
that any such assignee that receives such assigned rights shall agree in
writing to be bound by all the terms and conditions of this Agreement,
including without limitation the provisions of this Section 6.

 

(c)                                  Rights
of Participation.  The rights of
Investors under Section 3 hereof may be assigned to any person who acquires at
least ten percent (10%) of the outstanding Series B Preferred Stock or Series C
Preferred Stock or all of such Holder’s Series B Preferred Stock and Series C
Preferred Stock, if less (in each case, including Common Stock issued upon conversion
thereof); provided, however, that no party may be assigned any of
the foregoing rights unless the Company is given written notice by such
investor at the time of such assignment stating the name and address of the
assignee and identifying the securities of the Company as to which the rights
in question are being assigned; and provided  further that any
such assignee shall receive such assigned rights subject to all the terms and
conditions of this Agreement.

 

(d)                                 Rights
On Corporate Events.  The rights of
Investors under Section 4 hereof may be assigned only in whole, and not in
part, and only to a Affiliate that acquires all of the Series B Preferred Stock
and Series C Preferred Stock then held by Investors; provided, however, that no
party may be assigned any of the foregoing rights unless the Company is given
written notice by Investors at the time of such assignment stating the name and
address of the assignee; and provided  further that any such
assignee shall receive such assigned rights subject to all the terms and
conditions of this Agreement.

 

7.                                      CONFIDENTIALITY
AND NON-DISCLOSURE.

 

7.1                                 Disclosure
of Terms.  The terms and conditions
of this Agreement, the Purchase Agreement, the Interest Warrants, the Valuation
Warrant, and the Amended and Restated Development Agreement (collectively, the
“Financing Terms”), including their existence, shall be considered
confidential information and shall not be disclosed by any party hereto to any
third party except in accordance with the provisions set forth below.

 

7.2                                 Press
Releases, Etc.  No announcement
regarding the Financing Terms or Investors in a press release, conference,
advertisement, announcement, professional or trade publication, mass marketing
materials or otherwise to the general public may be made without the prior
written consent of Investors.  At such
time as the Company and Investors mutually agree, the Company would be able to
issue a press release in the form provided by Investors disclosing that Investors
have invested in the Company; provided that the release does not disclose the
amount or other specific terms of the investment and the final form of the
press release is approved in advance in writing by Investors.

 

21

 

7.3                                 Permitted
Disclosures.  Notwithstanding the
foregoing, (a) any party may disclose any of the Financing Terms to its current
or bona fide prospective investors, employees, investment bankers, lenders,
accountants and attorneys, in each case only where such persons or entities are
subject to appropriate nondisclosure obligations; and (b) each Investor may
disclose its investment in the Company and the Financing Terms to third parties
or to the public at its sole discretion and, if it does so, the other parties
hereto shall have the right to disclose to third parties any such information
disclosed in a press release or other public announcement by an Investor.  To the extent required by the rules and
regulations of the SEC, upon the advice of counsel the Company may file this Agreement,
the Purchase Agreement and the Warrants as exhibits to a registration statement
on Form S-1; provided, however, that the Company agrees to seek confidential
treatment of any portions of those documents requested by Investors, and provided
further that the Company provide Investors with drafts of confidential
treatment requests and redacted copies of the agreements at least three (3)
business days prior to the filing thereof.

 

7.4                                 Legally
Compelled Disclosure.  In the event
that any party is requested or becomes legally compelled (including, without
limitation, pursuant to securities laws and regulations) to disclose the
existence of this Agreement, the Purchase Agreement, the Warrants, or the
Development Agreement or any of the terms hereof or thereof in contravention of
the provisions of this Section 7, such party (the “Disclosing Party”)
shall provide the other parties (the “Non-Disclosing Parties”) with
prompt written notice of that fact so that the appropriate party may seek (with
the cooperation and reasonable efforts of the other parties) a protective
order, confidential treatment or other appropriate remedy.  The Company may disclose in a registration
on Form S-1 that Investors are investors in the Company, provided that the
final form of the disclosure is approved in advance in writing by
Investors.  In such event, the
Disclosing Party shall furnish only that portion of the information which is
legally required and shall exercise reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded such information to the
extent reasonably requested by any Non-Disclosing Party.

 

7.5                                 Other
Information.  The provisions of this
Section 7 shall be in addition to, and not in substitution for, the provisions
of any separate nondisclosure agreement executed by any of the parties hereto
with respect to the transactions contemplated hereby.  Additional disclosures and exchange of confidential information
between the Company and Investors (including without limitation, any exchanges
of information with any Observer) shall be governed by the terms of the
Corporate Non-Disclosure Agreement No. 
4238355, dated March 15, 1999, executed by the Company and Intel.

 

8.                                      COVENANTS
REGARDING POSSIBLE CORPORATE RESTRUCTURING.

 

8.1                                 Basic
Restructuring.  Investors
acknowledge that the Company is considering a corporate restructuring that
could result in the Company becoming a holding company with two or more
wholly-owned operating subsidiaries. 
The restructuring would allow the Company to seek separate funding for
distinct lines of business or products and may facilitate a public offering or
sale of one or more of the operating subsidiaries.  The Company acknowledges that a material factor in Investors’
decision to make an investment in the Company is the ability to obtain
liquidity of their investment.  The
Company agrees that, in connection with any restructuring of the nature
contemplated above, if the holding company transfers all of

 

22

 

its operating assets to subsidiaries, such that following completion of
the restructuring it will own only financial assets and the stock of the
subsidiaries, then: (i) immediately prior to the closing of a public offering
or change of control of a subsidiary, it will cause each of the subsidiaries to
provide Investors with an equivalent ownership interest in the entities created
in such restructuring by issuing to Investors securities of each subsidiary
having substantially similar rights, preferences and privileges as the Series B
Preferred Stock in exchange for Investors’ equity interest in the holding
company; (ii) the holding company will cause the subsidiary into which the
Company’s p/c monitor business is transferred to assume the Interest Warrants
and the Valuation Warrant on substantially the same terms as the Interest
Warrants and the Valuation Warrant, respectively; and (iii) the holding company
will cause each of the subsidiaries to assume the obligations of the Company
under this Agreement.

 

8.2                                 Alternate
Restructuring.  The Company agrees
that, in connection with any restructuring of the nature contemplated above, if
the holding company does not transfer all of its operating assets to
subsidiaries, ‘such that following completion of the restructuring it will own
only financial assets and the stock of the subsidiaries, then: (i) immediately
prior to the closing of a public offering or change of control of a subsidiary,
it will cause each of the subsidiaries to provide Investors with an equivalent
ownership interest in the entities created in such restructuring by issuing to
Investors securities of each subsidiary having substantially similar rights,
preferences and privileges as the Series B Preferred Stock in exchange for a
portion of Investors’ equity interest in the holding company based on the
proportion that the fair market value of the subsidiaries created represents of
the fair market value of the Company as a whole; (ii) the holding company will
cause the subsidiary into which the Company’s p/c monitor business is
transferred to assume the Interest Warrants and the Valuation Warrant on
substantially the same terms as the Interest Warrants and the Valuation
Warrant, respectively; and (iii) the holding company will cause each of the
subsidiaries to assume the obligations of the Company under this Agreement.

 

8.3                                 Subsidiary
Restructuring.  In the event of a
further restructuring at the subsidiary level, the Company, the holding company
or the subsidiary (the “Old Subsidiary”), as the case may be, shall cause
the Old Subsidiary to negotiate in good faith with Investors in order to
provide Investors with an equivalent ownership interest in the additional
subsidiaries creating by such restructuring so as to preserve the economic
value of Investors’ investment and Investors’ opportunity to obtain liquidity
in its investment by issuing to Investors securities of the new subsidiaries
having substantially similar rights, preferences and privileges as the Series B
Preferred Stock in exchange for a portion of Investors’ equity interest in the
Old Subsidiary based on the proportion that the fair market value of the new
subsidiaries created represents of the fair market value of the Old Subsidiary.

 

8.4                                 Termination
of Redemption Rights. 
Notwithstanding the foregoing, upon a Qualified IPO of the p/c monitor
subsidiary, the redemption rights of all Series B Preferred Stock or equivalent
securities in the other subsidiaries shall terminate.

 

8.5                                 Fair
Market Value.  Fair market value
shall be determined by good faith negotiations between Investors and the
Company or the Old Subsidiary, as the case may be.  If no agreement is reached within thirty (30) days following
commencement of negotiations, then Investors (jointly) and the applicable
subsidiary shall each select an Investment Banking Firm (as

 

23

 

defined below) that in turn will select a third Investment Banking Firm
that will determine fair market value of the subsidiary.  Each party’s Investment Banking Firm may
specify reasonable criteria for the selection of the third Investment Banking
Firm, which may, at its sole option, include reasonable criteria to reduce the
possibility of conflicts of interest, and as relevant, to which the third
Investment Banking Firm must agree to be bound.  The third Investment Banking Firm shall make its determination
based on criteria agreed upon by Investors and the subsidiary, or if no such
agreement is reached within ten (10) business days following the selection of
the third Investment Banking Firm, the determination of fair market value shall
be based on criteria deemed relevant by such third Investment Banking
Firm.  If a party fails to select an
Investment Banking Firm within ten (10) business days after written notice by
the other party of its selection of an Investment Banking Firm (which notice
shall identify such firm), then fair market value shall be determined by the
sole Investment Banking Firm so selected. 
The third Investment Banking Firm shall submit its determination of fair
market value within thirty (30) business days following its selection, and its
determination shall be final and binding upon Investors, the Company, the
holding company and such subsidiary. 
For purposes of this Section 8, the term “Investment Banking Firm”
shall mean a nationally recognized investment banking firm or appraisal firm
which shall not have been the principal investment banker for either the
Company, the applicable subsidiary or Investors within the twenty-four (24)
months prior to the date of the proposed reorganization.

 

8.6                                 Certain
Definitions.  For purposes of this
Section 8, a “change of control” shall mean any of the following whether
accomplished through one or a series of related transactions: (a) the sale of
all or substantially all of the assets of the applicable subsidiary or (b) an
acquisition of the subsidiary by consolidation, merger, share purchase or
exchange, or other reorganization or transaction in which the holders of the
subsidiary’s outstanding voting stock immediately prior to such transaction
own, immediately after such transaction, securities representing less than a
majority of the voting power of the corporation or other entity surviving such
transaction.

 

9.                                      GENERAL
PROVISIONS.

 

9.1                                 Notices.  Except as may be otherwise provided herein,
all notices, requests, waivers and other communications made pursuant to this
Agreement shall be in writing and shall be conclusively deemed to have been
duly given: (a) when hand delivered to the other party; (b) when received when
sent by facsimile at the address set forth below or on the signature page
hereto; (c) three business days after deposit in the U.S.  mail with first class or certified mail
receipt requested postage prepaid and addressed to the other party as set forth
below or on the signature page hereto; or (d) the next business day after
deposit with a national overnight delivery service, postage prepaid, addressed
to the parties as set forth below or on the signature page hereto with
next-business-day delivery guaranteed, provided that the sending party receives
a confirmation of delivery from the delivery service provider.

 

To the Company:

 

ViewSonic Corporation

381 Brea Canyon Road

Walnut, California

 

24

 

Attention: 
James Chu

Fax:  (909) 468-0300

 

With copies to:

 

Cooley Godward LLP

Five Palo Alto Square

3000 El Camino Real

Palo Alto, CA 94306

Attention:  Eric C. Jensen, Esq.

Fax:  (650) 849-7400

 

Each person making a communication hereunder by
facsimile shall promptly confirm by telephone to the person to whom such
communication was addressed each communication made by it by facsimile pursuant
hereto but the absence of such confirmation shall not affect the validity of
any such communication.  A party may
change or supplement the addresses given above or on the signature page hereto,
or designate additional addresses, for purposes of this Section 9.1 by giving
the other party written notice of the new address in the manner set forth
above.

 

9.2                                 Entire
Agreement.  This Agreement, together
with all the schedules and exhibits hereto, constitutes and contains the entire
agreement and understanding of the parties with respect to the subject matter
hereof and supersedes any and all prior negotiations, correspondence,
agreements, understandings, duties or obligations between the parties
respecting the subject matter hereof.

 

9.3                                 Governing
Law.  This Agreement shall be
governed in all respects by the laws of the State of Delaware without regard to
provisions regarding choice of laws.

 

9.4                                 Severability.  If one or more provisions of this Agreement
are held to be unenforceable under applicable law, then such provision(s) shall
be excluded from this Agreement, and the parties shall negotiate, in good
faith, a legal, valid and enforceable substitute provision which most nearly
effects the intent of the parties in entering into this Agreement.

 

9.5                                 Third
Parties.  Nothing in this Agreement,
express or implied, is intended to confer upon any person, other than the
parties hereto and their permitted successors and assigns, any rights or
remedies under or by reason of this Agreement.

 

9.6                                 Successors
and Assigns.  Subject to the
provisions of Section 6.1, the provisions of this Agreement shall inure to the
benefit of, and shall be binding upon, the successors and permitted assigns of
the parties hereto.

 

9.7                                 Captions.  The captions to sections of this Agreement
have been inserted for identification and reference purposes only and shall not
be used to construe or interpret this Agreement.

 

25

 

9.8                                 Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

9.9                                 Adjustments
for Stock Splits, Etc.  Wherever in
this Agreement there is a reference to a specific number of shares of Series B
Preferred Stock, Series C Preferred Stock, Common Stock, or Warrants or shares
of Common Stock, Series B Preferred Stock, or Series C Preferred Stock issuable
upon the conversion, exchange or exercise thereof, then, upon the occurrence of
any subdivision, combination or stock dividend of Series B Preferred Stock or
Series C Preferred Stock, the specific number of shares so referenced in this
Agreement shall automatically be proportionally adjusted to reflect the affect
on the outstanding shares of such class or series of stock by such subdivision,
combination or stock dividend.

 

9.10                           Certain
Definitions.  Capitalized terms used
but not defined in this Agreement shall have the meanings ascribed to such
terms in the Purchase Agreement.  For
purposes of this Agreement, a “Qualified IPO” shall have the meaning
ascribed to it in the Company’s Amended and Restated Certificate of
Incorporation, as such may be further amended and restated.

 

9.11                           Amendments
and Waivers.  This Agreement may be
amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or
prospectively) only with the written consent of (a) the Company, (b) the
Founder, and (c) the Investors, and except as hereafter provided.  No consent of Amtran, ProDisc or the Zinwell
Parties shall be required for any amendment of this Agreement or the waiver of
the observance of any term of this Agreement unless such amendment or waiver
adversely affects the rights of Amtran, ProDisc or the Zinwell Parties under
this Agreement and in a manner different from the effect of such amendment or
waiver on the Investors, in which case such amendment or waiver shall require
the written consent of (a) the Company, (b) the Founder, and (c) the holders of
a majority of the Registrable Securities Then Outstanding. Any amendment or
waiver effected in accordance with this Section 9.11 shall be binding upon
Investors, the Company, the Founder, Amtran, ProDisc, the Zinwell Parties and
their respective successors and assigns.

 

9.12                           Aggregation
of Stock.  All shares of Registrable
Securities held or acquired by affiliated entities or persons shall be aggregated
together for the purpose of determining the availability of any rights under
this Agreement.  Where appropriate, each
Investor shall be entitled to apportion the rights granted under this Agreement
among itself and its affiliates in such proportions as it deems appropriate.

 

9.13                           Authorized
Preferred Stock.  The Company and
the Founder agree as follows:

 

(a)                                  If
the Second Closing (as defined in the Purchase Agreement) has not occurred on
or prior to March 31, 2002 and upon the request of Intel Capital, the Company
and the Founder agree to amend the Company’s Certificate of Incorporation to
reduce the authorized number of shares of Series B Preferred Stock to the
number of then-outstanding shares of Series B Preferred Stock.

 

26

 

(b)                                 Upon
the expiration, early termination or failure to satisfy a contingency necessary
for the partial or full exercise of any of the Tranche 1 Interest Warrant,
Tranche 2 Interest Warrant or Valuation Warrant (as such terms are defined in
the Purchase Agreement), the Company and the Founder agree to amend the
Company’s Certificate of Incorporation to reduce the corresponding number of
authorized shares of Series C Preferred Stock.

 

[SIGNATURES ON NEXT PAGE]

 

27

 

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

 

	
  THE COMPANY:

  	
  VIEWSONIC CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  James A. Morlan

  
	
   

  	
  Name:

  	
  James A. Morlan

  
	
   

  	
  Title:

  	
  CFO

  
	
   

  	
   

  
	
  INVESTORS:

  	
  INTEL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Ravi Jacob

  
	
   

  	
  Name:

  	
  Ravi Jacob

  
	
   

  	
  Title:

  	
  Assistant Treasurer

  
	
   

  	
   

  
	
   

  	
  INTEL CAPITAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Ravi Jacob

  
	
   

  	
  Name:

  	
  Ravi Jacob

  
	
   

  	
  Title:

  	
  Assistant Treasurer

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
  2200 Mission College
  Boulevard

  M/S RN6-46

  Santa Clara, California 95052

  Attn:  Intel Capital Portfolio Manager

  Facsimile No.: (408) 765-6038

  
	
   

  	
   

  
	
   

  	
  with copy by e-mail to:
  

  
	
   

  	
  portfolio.manager@intel.com

  
	
   

  	
   

  
	
  FOUNDER:

  	
  /s/ James Chu

  
	
   

  	
  James Chu  

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
				

 

 

[SIGNATURE PAGE TO
VIEWSONIC CORPORATION

INVESTOR RIGHTS AGREEMENT]

 

 

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

 

	
  AMTRAN:

  	
  AMTRAN TECHNOLOGY CO.,
  LTD.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Alpha Wu

  
	
   

  	
  Name:

  	
  Alpha Wu

  
	
   

  	
  Title:

  	
  President

  
				

 

 

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

 

 

	
  ZINWELL PARTIES:

  	
  ZINWELL CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Huang Chi Jui

  
	
   

  	
  Name:

  	
  Huang Chi Jui

  
	
   

  	
  Title:

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Lin Huang Chiu-Ho

  
	
   

  	
  Lin Huang Chiu-Ho

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
  /s/ Chu Chuan Hsieh

  
	
   

  	
  Chu Chuan Hsieh

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Chi-Hsiang Huang

  
	
   

  	
  Chi-Hsiang Huang

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Chi-Nan Huang

  
	
   

  	
  Chi-Nan Huang

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Chii-An Hwang

  
	
   

  	
  Chii-An Hwang

  
	
   

  	
   

  
	
   

  	
  Address:

  
					

 

 

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

 

 

	
  PRODISC:

  	
  PRODISC TECHNOLOGY INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/  Lin Ming Fa

  
	
   

  	
  Name:

  	
  Lin Ming Fa

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  Address:Exhibit 10.3

 

THIS INSTRUMENT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 OR ANY APPLICABLE STATE SECURITIES LAWS (COLLECTIVELY, THE “ACTS”) AND MAY
NOT BE OFFERED FOR SALE OR SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT OR QUALLFICATION UNDER THE ACTS OR AN OPINION OF COUNSEL ACCEPTABLE
TO ISSUER THAT SUCH REGISTRATION OR QUALIFICATION IS NOT REQUIRED.

 

SUBORDINATED
PROMISSORY NOTE NO. 9

 

	
  $13,000,000.00

  	
   

  	
  December 1, 2001

  

 

VIEWSONIC
CORPORATION, a Delaware corporation (“Issuer”), hereby
absolutely and unconditionally promises to pay to JAMES CHU or order (“Holder”), the sum of Thirteen Million
Dollars ($13,000,000) under the following terms and conditions:

 

1.             Payments of Interest.  Issuer shall pay interest on the unpaid principal balance of this
Note (i) from April 12, 1999 until November 30, 2001 computed for the actual
number of days elapsed on the basis of a 365/366 day year, at a rate per annum
equal to six and twenty-five hundredths percent (6.25%) and (ii) from December
1, 2001 until fully paid computed for the actual number of days elapsed on the
basis of a 365/366 day year, at a rate per annum equal to three and
ninety-seven hundredths percent (3.97%). Accrued interest from the date hereof
shall be due and payable quarterly on the last day of each calendar quarter
until the Note is paid in full, or on such earlier date that this Note is paid
in full.

 

2.             Payments of Principal.  Issuer shall pay the principal amount of this Note, and all
accrued and unpaid interest on, this Note on April 12, 2008 (the “Due Date”).
In addition, Issuer may prepay all or any portion of the principal balance of
this Note, and accrued and unpaid interest thereon, at any time or from time to
time, without penalty. Any such repayment shall be first applied to the payment
of any accrued and unpaid interest and then to the unpaid balance of the
principal amount.

 

3.             Acceleration. 
The whole sum of the outstanding balance of the Note shall become
immediately due and payable at the option of Holder, without notice upon the
occurrence of any of the following events:

 

(a)           Issuer fails to
make any payment required under the terms of this Note within ten days after
Issuer receives notice of such failure;

 

(b)           Issuer fails to
perform or observe any term, covenant, condition, agreement or prohibition
contained in this Note, other than those described in subsection 3(a) hereof,
within 30 days after written notice of such failure; provided, however, that
Issuer shall not be in default of any such obligation if: (i) such default is
curable but cannot reasonably be cured within said 30-day period; and (ii)
within said 30-day period Issuer promptly and in good faith undertakes to cure
such default and thereafter diligently and continuously prosecutes such cure to
completion; or

 

 

(c)           (i) Issuer makes
any general arrangement or assignment for the benefit of creditors; or (ii)
Issuer becomes a “debtor” as defined in 11 U.S.C. Section 101 or any successor
statute thereto (unless, in the case of a petition filed against Issuer, the
same is dismissed within 90 days); or (iii) a trustee or receiver is
appointed to take possession of Issuer’s right, title and interest in
substantially all of Issuer assets, where possession is not restored to Issuer
within 90 days, regardless of whether or not such appointment is applied
for or consented to by Issuer; or (iv) substantially all of Issuer’s assets are
subject to attachment, sequestration, execution or other judicial seizure;
provided, however, that if any provision of this subsection 3(c) is contrary to
any applicable law, then such provision shall be of no force or effect.

 

The failure of
Holder to accelerate this Note shall not constitute a waiver of any of Holder’s
rights under this Note as long as Issuer’s default under this Note continues.

 

4.             Manner of Payment.  Payments of principal and interest shall be paid by check payable
in lawful money of the United States of America and shall be made at such place
as Holder shall have designated to Issuer. Any payments due hereunder which are
due on a day which is not a business day shall be payable on the first
succeeding business day and such extension of time shall be included in the
computation of interest due hereunder.

 

5.             Subordination. 
This Note is subordinated to that certain Second Amended and Restated
Business Loan Agreement (Receivables and Inventory), as amended from time to
time, dated December 15, 1998, by and between the Bank of America National
Trust and Savings Association (the “Bank”) and Issuer, pursuant to a Subordination
Agreement entered into by and among the Bank, Holder and Issuer. A copy of the
Subordination Agreement is on file at the principal office of Issuer.

 

6.             Waiver. 
In consideration for the reduction of the interest rate described in
Section 1, Issuer hereby waives any offsets or defenses against the payment of
this Note or claims against Holder in connection with this Note existing as of
the date hereof.

 

7.             Notices. 
Notices of this Note shall be in writing and delivered in person or sent
by certified mail, return receipt requested, by overnight express service, or
by telecopier addressed to the Issuer at 381 Brea Canyon Road, Walnut,
California 91789 and to Holder at 381 Brea Canyon Road, Walnut, California
91789. Addresses for the giving of notices may be changed in the same manner.
Notice given by mailing shall be deemed effective five days after posting.
Notice given by overnight express services shall be deemed effective on the
first business day after delivery to the overnight express service during
normal business hours. Notice given by telecopier shall be deemed effective on
the day of transmittal if transmitted during the recipient’s normal business
hours; otherwise, it shall be deemed effective on the first business day after
transmittal.

 

8.             Governing Law. 
In all respects, including all matters of construction, validity and
performance, this Note and the rights and obligations arising hereunder shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Delaware applicable to contracts made and performed in such state,
without regard to principles thereof regarding conflicts of laws that would
require the application of the laws of a jurisdiction other than such state.

 

2

 

9.             General Conditions.

 

(a)           The terms of this
Note apply to, inure to the benefit of and bind all parties hereto, their
respective heirs, legatees, devisees, administrators, executors, successors and
assigns.

 

(b)           Time is of the
essence of each obligation of Issuer hereunder.

 

(c)           Notwithstanding any
provision hereof, the total liability for payments in the nature of interest
shall not exceed the applicable limits now imposed by any applicable state or
federal interest rate laws. If any payments in the nature of interest and other
charges made hereunder are held to be in excess of the applicable limits
imposed by any applicable state or federal interest rate laws, it is agreed
that any such amount held to be in excess shall be considered payments of
principal hereunder and the indebtedness evidenced hereby shall be reduced by
such amount in the inverse order of maturity so that the total liability for
payments in the nature of interest and other charges shall not exceed the
applicable limits imposed by any applicable state or federal interest rate laws
in compliance with the desires of Holder and Issuer.

 

(d)           The captions or
headings at the beginning of each section or subsection hereof are for the
convenience of the parties only and are not to be construed as defining,
limiting or expanding, in any way, the scope or intent of the provisions
hereof.

 

3

 

IN WITNESS WHEREOF,
Issuer has caused this Note to be executed and delivered by its duly authorized
representative on the date first above written.

 

	
   

  	
  VIEWSONIC
  CORPORATION,

  
	
   

  	
  a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James A.
  Morlan

  
	
   

  	
   

  	
  James Morlan,
  Chief Financial Officer

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