Document:

Exhibit 4.2

 

ViewSonic Corporation 1999 Stock Plan

 

1.                                      Purpose.  The purpose of the ViewSonic Corporation
1999 Stock Plan (“Plan”) is to promote the interests of ViewSonic Corporation,
a Delaware corporation (“Company”) and its stockholders by enabling the Company
to offer an opportunity to acquire an equity interest in the Company so as to
better attract, retain, and reward employees, directors, and other persons
providing services to the Company (e.g., as consultants, advisors, and other
independent contractors) and, accordingly, to strengthen the mutuality of
interests between those persons and the Company’s stockholders by providing
those persons with a proprietary interest in pursuing the Company’s long-term
growth and financial success.

 

2.                                      Definitions.  For purposes of this Plan, the following
terms shall have the meanings set forth below.

 

(a)                                  “Board”
means the Board of Directors of ViewSonic Corporation.

 

(b)                                 “Code”
means the Internal Revenue Code of 1986. 
Reference to any specific section of the Code shall be deemed to be a
reference to any successor provision.

 

(c)                                  “Committee”
means the administrative committee of this Plan that is provided in
Section 3 of this Plan.

 

(d)                                 “Common
Stock” means the common stock of the Company or any security issued in
substitution, exchange, or in lieu thereof.

 

(e)                                  “Company”
means ViewSonic Corporation, a Delaware corporation, or any successor
corporation.  Except where the context
indicates otherwise, the term “Company” shall include its Parent and
Subsidiaries.

 

(f)                                    “Disabled”
means permanent and total disability, as defined in Code Section 22(e)(3).

 

(g)                                 “Exchange
Act” means the Securities Exchange Act of 1934.

 

(h)                                 “Fair
Market Value” of Common Stock for any day shall be determined in accordance
with the following rules.

 

(i)                                     If
the Common Stock is admitted to trading or listed on a national securities
exchange, the last reported sale price on that day regular way, or if no such
reported sale takes place on that day, the average of the last reported bid and
ask prices on that day regular way, in either case on the principal national
securities exchange on which the Common Stock is admitted to trading or listed.

 

(ii)                                  If
not listed or admitted to trading on any national securities

 

 

exchange, the last sale price regular way on that day
reported on the Nasdaq National Market (“Nasdaq National Market”) of the Nasdaq
Stock Market (“NSM”), or if no such reported sale takes place on that day, the
average of the closing bid and ask prices regular way on that day.

 

(iii)                               If
not traded or listed on a national securities exchange or included in the
Nasdaq National Market, the last reported sale price on that day regular way,
or if no such reported sale takes place on that day, the average of the closing
bid and ask prices regular way on that day reported by the NSM, or any
comparable system on that day.

 

(iv)                              If
the Common Stock is not included in (i), (ii) or (iii) above, the last reported
sale price on that day regular way, or if no such reported sale takes place on
that day, the average of the closing bid and ask prices regular way on that day
as furnished by any member of the National Association of Securities Dealers,
Inc. (“NASD”) selected from time to time by the Company for that purpose.

 

If the national securities exchange, Nasdaq National
Market, NSM, or NASD, whichever is applicable, are closed on such date, the
“Fair Market Value” shall be determined as of the last preceding day on which
the Common Stock was traded or for which bid and ask prices are available.  If the Common Stock is not publicly traded,
its Fair Market Value shall be determined by the Board of Directors.  In the case of an Incentive Stock Option,
“Fair Market Value” shall be determined without reference to any restriction
other than one that, by its terms, will never lapse.

 

(i)                                     “Incentive
Stock Option” means an option to purchase Common Stock that is intended to be
an incentive stock option under Section 422 of the Code.

 

(j)                                     “Insider”
means a person who is subject to Section 16 of the Exchange Act.

 

(k)                                  “Non-Qualified
Stock Option” means any option to purchase Common Stock that is not an
Incentive Stock Option.

 

(l)                                     “Option”
means an Incentive Stock Option or a Non-Qualified Stock Option.

 

(m)                               “Parent”
shall mean any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company if each of the corporations (other than
the Company) owns stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in the chain, as determined in accordance with the rules of Code
Section 424(e).

 

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(n)                                 “Participant”
means a person who has been granted an Option or Restricted Stock.

 

(o)                                 “Plan”
means this ViewSonic Corporation 1999 Stock Plan, as it may be amended from
time to time.

 

(p)                                 “Restricted
Stock” means shares of Common Stock issued under Section 9 of this Plan
that are subject to restrictions on ownership.

 

(q)                                 “Rule
16b-3” means Rule 16b-3 promulgated by the Securities and Exchange Commission
under the Exchange Act.

 

(r)                                    “Severance”
means, with respect to a Participant, the termination of the Participant’s
provision of services to the Company as an employee, director, or independent
contractor, whether by reason of death, disability, or any other reason.

 

(i)                                     For
purposes of determining the exercisability of an Incentive Stock Option, a
Participant who is on a leave of absence that exceeds ninety (90) days will be
considered to have incurred a Severance on the ninety-first (91st) day of the
leave of absence, unless the Participant’s rights to reemployment are
guaranteed by statute or contract.

 

(ii)                                  A
Participant will not be considered to have incurred a Severance because of a
transfer of employment between the Company, Subsidiary, or Parent.

 

(s)                                  “Subsidiary”
shall mean any corporation (other than the Company) in an unbroken chain of
corporations beginning with the Company if each of the corporations (other than
the last corporation in the unbroken chain) owns stock possessing fifty percent
(50%) or more of the total combined voting power of all classes of stock in one
of the other corporations in the chain, as determined in accordance with the
rules of Code Section 424(f).

 

(t)                                    “Substitute
Options” shall mean options that are issued to the individuals (or entities)
who had performed services for an entity that is acquired by the Company in
substitution of stock options previously granted to those individuals (or
entities) in connection with their performance of services for the acquired
entity.

 

(u)                                 “Ten
Percent Stockholder” means any person who owns (after taking into account the
constructive ownership rules of Section 424(d) of the Code) more than ten
percent (10%) of the combined voting power of all classes of stock of ViewSonic
Corporation or of any of its Parents or Subsidiaries.

 

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3.                                      Administration.

 

(a)                                  This
Plan shall be administered by a Committee appointed by the Board.  The Board may remove members from, or add
members to, the Committee at any time. 
To the extent possible and advisable, the Committee shall be composed of
individuals who satisfy the requirements of Rule 16b-3 and of Code
Section 162(m).

 

(b)                                 The
Committee may conduct its meetings in person or by telephone.  A majority of the members of the Committee
shall constitute a quorum, and any action shall constitute the action of the
Committee if it is authorized by:

 

(i)                                     A
majority of the members present at any meeting; or

 

(ii)                                  All
of the members in writing without a meeting.

 

(c)                                  The
Committee is authorized to interpret this Plan and to adopt rules and
procedures relating to the administration of this Plan.  All actions of the Committee in connection
with the interpretation and administration of this Plan shall be binding upon
all parties.

 

(d)                                 Subject
to the limitations of Sections 12 and 18 of this Plan, the Committee is
expressly authorized to make such modifications to this Plan and to grants of
Restricted Stock and Options under this Plan, as are necessary to effectuate
the intent of this Plan as a result of any changes in the tax, accounting, or
securities laws treatment of Participants and of the Plan.

 

(e)                                  The
Committee may delegate its responsibilities to others under such conditions and
limitations as it may prescribe, except that the Committee may not delegate its
authority with regard to the granting of Options to Insiders.  However, if the grant to an Insider would
not be exempt under Rule 16b-3 if made by the Committee, such grant may be made
by the Board.  On the other hand, if the
grant of an Option to a Participant who is subject to Code Section 162(m) is
not made by a committee composed exclusively of “Outside Directors” (as that
term is defined in Section 162(m) of the Code), then the compensation (if any)
that the Participant recognizes as a result of the exercise of that Option will
be subject to the million dollar compensation deduction limitation of Code
Section 162(m).

 

4.                                      Duration
of Plan.

 

(a)                                  This
Plan shall be effective as of April 21, 1999, the date of its adoption by the
Board, provided this Plan is approved by the holders of a majority of the
Company’s shares of voting stock, in accordance with the provisions of Code
Section 422, within twelve (12) months before or after its adoption by the
Board.  If the Plan is not approved by
the stockholders within that time period, the Plan and all Options issued under
the Plan will terminate.  The approval
by the stockholders must relate to:

 

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(i)                                     The
class of individuals who are entitled to receive Incentive Stock Options; and

 

(ii)                                  The
maximum number of shares of Common Stock that may be issued under the Plan,
except as adjusted pursuant to Section 16 of this Plan.

 

If either of those items is changed, the approval of
the stockholders must again be obtained.

 

(b)                                 In
the event that this Plan is not so approved, this Plan shall terminate and any
Options previously granted under this Plan shall be void.

 

(c)                                  This
Plan shall terminate on April 20, 2009, except with respect to Options then
outstanding.

 

5.                                      Number
of Shares.

 

(a)                                  The
maximum number of shares of Common Stock which may be issued pursuant to this
Plan shall be 43.2 million and the maximum number of shares that may be issued
to a single Participant is 4.32 million. 
These numbers may be adjusted as set forth in Section 16 of this
Plan.  For purposes of determining the
maximum number of shares that may be issued to a single Participant, (i) shares
subject to a terminated Option shall be considered outstanding and (ii) the
repricing of an Option shall be treated as the grant of a new Option.

 

(b)                                 Upon
the expiration or termination of an Option which shall not have been exercised
in full, the shares of Common Stock remaining unissued under the Option shall
again become available for use under the Plan.

 

(c)                                  Upon
the forfeiture of shares of Restricted Stock, the forfeited shares of Common
Stock shall again become available for use under the Plan.

 

(d)                                 In
the event a Participant pays part or all of the exercise price of an Option by
surrendering shares of Common Stock that the Participant had previously
acquired, only the number of shares issuable to the Participant in excess of
those surrendered shall be taken into account for purposes of determining the
maximum number of shares that may be issued under the Plan, both to that
Participant and to all Participants.

 

6.                                      Eligibility.

 

(a)                                  Persons
eligible to receive grants of Non-Qualified Stock Options and/or Restricted
Stock under this Plan shall consist of employees, directors, and other persons
providing services to the Company (e.g., consultants, advisors, and other
independent contractors).  However,
Incentive Stock Options may only be granted to employees.

 

(b)                                 The
Committee may issue Substitute Options upon such terms and

 

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conditions as the Committee shall determine, taking
into account the limitations of Code Section 424(a) in the case of a
Substitute Option that is intended to be an Incentive Stock Option.

 

7.                                      Form
of Options.  Options shall be
granted under this Plan in such amounts, at such times, to such persons, on
such terms and in such form as the Committee may approve, which shall not be
inconsistent with the provisions of this Plan, but which need not be identical
from grant to grant.

 

(a)                                  The
exercise price per share of Common Stock purchasable under an Option shall be
set forth in the Option.  However,
except in the case of Substitute Options, the exercise price of an Incentive
Stock Option, determined on the date of the grant, shall be no less than:

 

(i)                                     One
hundred ten percent (110%) of the Fair Market Value of the Common Stock in the
case of a Ten Percent Stockholder; or

 

(ii)                                  One
hundred percent (100%) of the Fair Market Value of the Common Stock in the case
of any other employee.

 

(b)                                 The
exercise price of Stock Options that are intended to qualify for the exemption
from Code Section 162(m) shall be at least equal to the Fair Market Value on
the date of grant.

 

8.                                      Exercise
of Options.

 

(a)                                  An
Option shall be exercisable at such time or times and be subject to such terms
and conditions as may be set forth in the Option.  However, no Option shall be exercisable prior to the date this
Plan is approved by the Company’s stockholders, as required by Section 4
of this Plan.  Also, the Participant may
exercise an Option following Severance only to the extent that the Option could
have been exercised on the date of Severance. 
Thus, no events (including the passage of time) that occur following
Severance will increase the vested portion of the Option.

 

(b)                                 Except
in the case of Substitute Options, the aggregate Fair Market Value (determined
as of the date of grant) of the number of shares of Common Stock with respect
to which Incentive Stock Options are exercisable for the first time by a
Participant during any calendar year shall not exceed one hundred thousand
dollars ($100,000) or such other limit as may be required by Code
Section 422.  To the extent that a
Participant’s Options exceed that limit, they will be treated as Non-Qualified
Stock Options (but all of the other provisions of the Option shall remain
applicable), with the first Options that were granted to the Participant to be
treated as Incentive Stock Options.

 

(c)                                  Options
shall only be exercisable for whole numbers of shares.

 

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(d)                                 Options
are exercised by payment of the full amount of the purchase price to the
Company as follows:

 

(i)                                     The
payment shall be in cash or such other form or forms of consideration as the
Committee shall deem acceptable, such as the surrender of outstanding shares of
Common Stock owned by the Participant for the minimum period of time necessary
to avoid adverse accounting treatment (if applicable).

 

(ii)                                  If
the payment is made by means of the surrender of shares of Restricted Stock, a
number of shares issued upon the exercise of the Option equal to the number of
shares of Restricted Stock surrendered shall be subject to the same restrictions
as the Restricted Stock that was surrendered.

 

(iii)                               After
giving due consideration to the consequences under Rule 16b-3 and under
the Code, the Committee may also authorize the exercise of Options by the
delivery to the Company or its designated agent of an irrevocable written
notice of exercise form together with irrevocable instructions to a
broker-dealer to sell or margin a sufficient portion of the shares of Common
Stock and to deliver the sale or margin loan proceeds directly to the Company
to pay all or a portion of the exercise price of the Option.

 

9.                                      Restricted
Stock.

 

(a)                                  The
Committee may issue grants of Restricted Stock upon such terms and conditions
as it may deem appropriate, which need not be the same for each such
grant.  In particular, the Committee may
require that the Participant deliver a stock power to the Company relating to
the Restricted Stock that is endorsed in blank, to be used if the Participant
fails to earn a vested right to the Restricted Stock.

 

(b)                                 Restricted
Stock may be sold to Participants, or it may be issued to Participants without
the receipt of any consideration. 
However, if the Restricted Stock is sold at less than its Fair Market
Value, it will not qualify for the exemption from the million dollar
compensation deduction limitation of Code Section 162(m).

 

(c)                                  A
Participant shall not have a vested right to the shares subject to the grant of
Restricted Stock until the satisfaction of the vesting requirements specified
in the grant.

 

(d)                                 A
Participant who receives a grant of Restricted Stock may elect, pursuant to
Code Section 83(b), to have income recognized and measured at the date of the
grant and to have the applicable capital gain holding period commence as of
that date.

 

(e)                                  The
Participant may not assign or alienate the Participant’s interest in the

 

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shares of Restricted Stock prior to vesting.  Otherwise, the Participant shall have all of
the rights of a stockholder of the Company with respect to the Restricted
Stock, including the right to vote the shares and to receive any dividends.

 

(f)                                    The
following rules apply with respect to events that occur prior to the date on
which the Participant obtains a vested right to the Restricted Stock.

 

(i)                                     Stock
dividends, shares resulting from stock splits, etc. that are issued with
respect to the shares covered by a grant of Restricted Stock shall be treated
as additional shares received under the grant of Restricted Stock.

 

(ii)                                  Cash
dividends constitute taxable compensation to the Participant that is deductible
by the Company.

 

10.                               California
Law.  The following provisions
of this Section 10 only apply to the extent that it is necessary to comply
with California General Corporation Law Section 25102(o), which also requires
compliance with SEC Rule 701 (see Section 11 of this Plan).

 

(a)                                  The
Plan must be approved by shareholders within twelve (12) months after its
adoption.

 

(b)                                 The
exercise price of an Option granted to a Ten Percent Shareholder shall be at
least one hundred ten percent (110%) of the Fair Market Value of the Stock on
the date of the grant, and at least eighty-five percent (85%) in all other
cases.

 

(c)                                  The
purchase price of Restricted Stock issued to a Ten Percent Shareholder shall be
at least one hundred percent (100%) of the Fair Market Value of the Stock on
the date of the grant, and at least eighty-five percent (85%) in all other
cases.

 

(d)                                 Except
with respect to grants to officers, directors, and consultants, the vesting of
each Option shall be at least twenty percent (20%) per year after the date of
the grant.

 

(e)                                  Unless
the Participant’s employment is terminated for cause, a Participant shall be
entitled to exercise an Option following termination of employment (that was
exercisable at that time) for the time period specified below:

 

(i)                                     Six
(6) months in the case of termination caused by death or disability; and

 

(ii)                                  Thirty
(30) days in all other cases.

 

However, in no event
shall an Option be exercisable after the expiration of its term.

 

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(f)                                    The
Company shall provide a copy of its financial statements to each Participant no
less frequently than annually.  This
requirement does not apply to key employees whose duties for the Company assure
them access to equivalent information.

 

(g)                                 The
maximum number of shares that may be issued under the Plan will not exceed
thirty percent (30%) of the outstanding shares of the Company or such other
limitation as may apply under Section 260.140.45 of Title 10, Chapter 3 of the
California Code of Regulations.

 

(h)                                 To
the extent specified in the Option Agreement, the Company and/or its other
shareholders shall have the right to purchase any or all of the shares of
Common Stock acquired by the Participant upon the exercise of an Option.  However, except with respect to grants to
officers, directors, and consultants, the repurchase right must satisfy the
conditions of either Subparagraph (i) or (ii) below.

 

(i)                                     The
requirements of this Subparagraph (i) are:

 

(A)                              The
repurchase price is not less than the Fair Market Value on the date of
Participant’s Severance;

 

(B)                                The
Company’s right to repurchase the shares must be exercised within ninety (90)
days of the Participant’s Severance (or the date of the exercise of the Option,
if later);

 

(C)                                The
Company must pay the purchase price in cash or cancellation of the purchase
money indebtedness for the shares; and

 

(D)                               The
Company’s purchase right terminates if and when its Common Stock becomes
publicly traded.

 

(ii)                                  The
requirements of this Subparagraph (ii) are:

 

(A)                              The
repurchase price is the exercise price;

 

(B)                                The
Company’s right to repurchase at the original purchase price lapses at the rate
of at least twenty percent (20%) per year over five (5) years from the date the
Option was granted;

 

(C)                                The
repurchase right must be exercised within ninety (90) days of the Participant’s
Severance (or the date of the exercise of the Option, if later); and

 

(D)                               The
purchase price must be paid in the form of cash or

 

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cancellation of the
purchase money indebtedness for the shares.

 

(i)                                     The
Company must file the notice of transaction and pay the filing fee computed
under Section 25608(y) of the California General Corporation Law within thirty
(30) days after the initial issuance of any security under the Plan.

 

11.                               Rule
701.  The following provisions
of this Section 11 only apply to the extent that it is necessary to comply
with SEC Rule 701.

 

(a)                                  Grants
may be made to consultants and advisors only if (i) they are natural persons,
(ii) they provide bona fide services to the Company, and (iii) the services are
not in connection with the offer or sale of securities in a capital-raising
transaction and do not directly or indirectly promote or maintain a market for
the Common Stock.

 

(b)                                 The
aggregate sales price or amount of securities sold in reliance on Rule 701
during any consecutive 12-month period must not exceed the greatest of (i) $1,000,000,
(ii) fifteen percent (15%) of the total assets of the Company; or (iii)
fifteen percent (15%) of the outstanding amount of the Company’s Common Stock
(measured at the Company’s most recent balance sheet date).  For this purpose, the shares underlying
Options are treated as sold on the date of the grant of the Option and Options
are valued based on the exercise price.

 

(c)                                  The
Company must deliver to the Participant a copy of the Plan.  If the aggregate sales price or amount of
securities sold during any consecutive 12-month period exceeds $5 million, the
Company must deliver to each Participant within a reasonable period of time
before the date of exercise, (i) a summary of the material terms of the plan,
(ii) information about the risks associated with investments in Common Stock,
and (iv) financial statements required to be furnished by Part F/S of Form
1-A.

 

12.                               Modification
of Options.

 

(a)                                  After
due consideration of the accounting implications, the Committee may modify an
existing Option, including the right to:

 

(i)                                     Change
the exercise price;

 

(ii)                                  Accelerate
the right to exercise it;

 

(iii)                               Extend
or renew it; or

 

(iv)                              Cancel
it and issue a new Option.

 

However, no modification may be made to an Option that
would impair the rights of the

 

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Participant holding the Option without the
Participant’s consent.  The Committee
may make modifications to grants of Restricted Stock under similar conditions.

 

(b)                                 In
the event that the Board amends the terms of an Option so that it no longer
qualifies as an Incentive Stock Option, the limitations imposed upon the Option
under the Code and the Plan solely by virtue of its (formerly) qualifying as an
Incentive Stock Option shall no longer apply, to the extent specified in the
amendment.

 

(c)                                  Whether
a modification of an existing Incentive Stock Option will be treated as the
issuance of a new Incentive Stock Option will be determined in accordance with
the rules of Code Section 424(h).

 

(d)                                 Whether
a modification of an existing Option previously granted to an Insider will be
treated as a new grant for purposes of Section 16 of the Exchange Act will be
determined in accordance with Rule 16b-3.

 

13.                               Termination
of Options.

 

(a)                                  Except
to the extent the terms of the Option provide otherwise, each Option shall
terminate on the earliest of the following dates:

 

(i)                                     The
date that is ten (10) years from the date on which the Option is granted or
five (5) years in the case of an Incentive Stock Option granted to a Ten
Percent Stockholder.

 

(ii)                                  The
date that is one (1) year from the date of the Severance of the Participant, if
the Participant was Disabled at the time of Severance.

 

(iii)                               The
date that is one (1) year from the date of the Severance of the Participant, if
the Participant’s death occurs:

 

(A)                              While
the Participant is employed by the Company; or

 

(B)                                Within
three (3) months following the Participant’s Severance.

 

(iv)                              In
the case of any Severance other than one described in Subparagraphs (ii) or
(iii) above, the date that is three (3) months from the date of the Participant’s
Severance.

 

However, in no event shall an Option be exercisable
after the expiration of its term.

 

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(b)                               The
Participant may exercise the Option following his or her Severance only to the
extent that the Option could have been exercised on the date of the
Severance.  Thus, no events (including
the passage of time) that occur following Severance will increase the vested
portion of the Option.

 

14.                               Change
in Control.

 

(a)                                  Except
as otherwise provided in the grant of an Option or of Restricted Stock
(whichever is applicable), as a result of a Change in Control (i) the Option
shall become fully exercisable and (ii) all restrictions on the Restricted
Stock shall immediately lapse.  Any such
acceleration, though, shall be contingent upon the Change in Control actually
being consummated.

 

(b)                                 In
the event of a Change in Control, each Participant:

 

(i)                                     Who
is not tendered an option by the surviving corporation which substantially
preserves the economic rights and benefits of the Options then held by the
Participant; or

 

(ii)                                  Who
does not accept any such substituted option that is so tendered;

 

shall have the right
until seven (7) days before the effective date of the Change in Control to
exercise, in whole or in part, any outstanding Option or Options that had been
issued to the Participant under this Plan.

 

(c)                                  “Change
in Control” shall mean the occurrence of any of the following:

 

(i)                                     Any
acquisition of fifty percent (50%) or more of the outstanding shares of Common
Stock of the Company;

 

(ii)                                  A
sale or other disposition of all or substantially all of the assets of the
Company; or

 

(iii)                               A
merger or consolidation of the Company with any other entity in which the
stockholders of the Company immediately preceding such merger or consolidation
will not hold a majority of the outstanding capital stock or equity interests
of the surviving entity (whether or not the Company is the surviving entity)
immediately after such merger or consolidation.

 

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15.                               Non-transferability
of Grants.

 

(a)                                  During
the lifetime of the Participant, Options are exercisable only by the
Participant.  Options are not assignable
or transferable except by will or the laws of descent and distribution.

 

(b)                                 Grants
of Restricted Stock shall be subject to such restriction on transferability as
may be imposed in the grants.

 

16.                               Adjustments.

 

(a)                                  In
the event of any change in the capitalization of the Company affecting its
Common Stock (e.g., a stock split, reverse stock split, stock dividend,
recapitalization, combination, or reclassification), there shall be an
adjustment to:

 

(i)                                     The
number and/or kind of shares covered by each outstanding Option;

 

(ii)                                  The
maximum number and/or kind of shares that may be granted under this Plan; and

 

(iii)                               The
exercise price per share in respect of each outstanding Option.

 

(b)                                 The
Committee may also make such adjustments in the event of a spin-off or other
distribution of Company assets to stockholders (other than normal cash
dividends).

 

17.                               Notice
of Disqualifying Disposition.  A
Participant must notify the Company if the Participant disposes of stock
acquired pursuant to the exercise of an Incentive Stock Option issued under the
Plan prior to the expiration of the holding periods required to qualify for
long-term capital gains treatment on the sale.

 

18.                               Amendments
and Termination.  Subject to the
limitations of Section 4 of this Plan, the Board may at any time amend or
terminate this Plan.  However, no
amendment or termination of this Plan may impair the rights of a Participant
holding an Option or Restricted Stock without the Participant’s consent.

 

19.                               Tax
Withholding.

 

(a)                                  The
Company shall have the right to take such actions as may be necessary to
satisfy its tax withholding obligations relating to the operation of this Plan.

 

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(b)                                 To
the extent authorized by the Committee, Participants may surrender previously
acquired shares of Common Stock or have shares withheld in satisfaction of the
tax withholding obligations.  However,
the number of shares that may be withheld for this purpose shall not exceed the
minimum number needed to satisfy the applicable income tax withholding rules.

 

(c)                                  If
Common Stock is used to satisfy the Company’s tax withholding obligations, the
stock shall be valued at its Fair Market Value when the tax withholding is
required to be made.

 

20.                               No
Additional Rights.

 

(a)                                  Neither
the adoption of this Plan nor the granting of any Option or Restricted Stock
shall:

 

(i)                                     Affect
or restrict in any way the power of the Company to undertake any corporate
action otherwise permitted under applicable law; or

 

(ii)                                  Confer
upon any Participant the right to continue performing services for the Company,
nor shall it interfere in any way with the right of the Company to terminate
the services of any Participant at any time, with or without cause.

 

(b)                                 No
Participant shall have any rights as a stockholder with respect to any shares
granted to the Participant under this Plan until the date a certificate for
such shares has been issued to the Participant.

 

21.                               Securities
Law Restrictions.

 

(a)                                  No
shares of Common Stock shall be issued under this Plan unless the Committee
shall be satisfied that the issuance will be in compliance with applicable
federal and state securities laws and the requirements of any stock exchange or
quotation system upon which the Common Stock is listed or quoted.

 

(b)                                 The
Committee may require certain investment (or other) representations and
undertakings by the person exercising an Option or purchasing Restricted Stock
in order to comply with applicable law.

 

(c)                                  Certificates
for shares of Common Stock delivered under this Plan may be subject to such
restrictions as the Committee may deem advisable.  The Committee may cause a legend to be placed on the certificates
to refer to these restrictions.

 

14

 

(d)                                 The
inability of the Company to obtain registration, qualification, or other
necessary authorization, or the unavailability of an exemption from any
registration or qualification obligation deemed by the Company’s counsel to be
necessary for the lawful issuance and sale of any shares of its Common Stock
under this Plan shall suspend the Company’s obligation to permit the exercise
of any Option or to issue any shares under this Plan and shall relieve the
Company of any liability in respect of the nonissuance or sale of the shares as
to which the requisite authority or exemption shall not have been obtained.

 

22.                               Repurchase
of Shares.  To the extent
specified in the Option Agreement or in the grant of Restricted Stock, the
Company and/or its other stockholders shall have the right to purchase any or
all of the shares of Common Stock acquired by the Participant upon the exercise
of an Option or the purchase of Restricted Stock.

 

23.                               Indemnification.

 

(a)                                  To
the maximum extent permitted by law, the Company shall indemnify each member of
the Committee and of the Board, as well as any other employee of the Company
with duties under this Plan, against expenses and liabilities (including any
amount paid in settlement) reasonably incurred by the individual in connection
with any claims against the individual by reason of the performance of the
individual’s duties under this Plan, unless the losses are due to the
individual’s gross negligence or lack of good faith.

 

(b)                                 The
Company will have the right to select counsel and to control the prosecution or
defense of the suit.

 

(c)                                  In
the event that more than one person who is entitled to indemnification is
subject to the same claim, all such persons shall be represented by a single
counsel, unless such counsel advises the Company in writing that he or she
cannot represent all such persons under applicable rules of professional
responsibility.

 

(d)                                 The
Company will not be required to indemnify any person for any amount incurred
through any settlement unless the Company consents in writing to the
settlement.

 

24.                               Governing
Law.  This Plan and all actions
taken thereunder shall be governed by and construed in accordance with the laws
of the State of Delaware without regard to its conflicts of laws provisions.

 

15Exhibit
4.3

 

Nonqualified Stock Option Agreement under

the ViewSonic Corporation 1999 Stock Plan

(Revised as of May 1,
2002)

 

The person listed below is granted an option to
purchase shares of Common Stock of ViewSonic Corporation pursuant to its 1999
Stock Plan as set forth in this Agreement.

 

	
  Optionee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date
  of Grant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Number
  of Shares:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exercise
  Price:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  When
  Option  becomes
  Exercisable:

  	
   

  	
  25% on date of
  grant,  Additional 25% on each
  succeeding one year anniversary 
  Option becomes fully vested on 3rd anniversary of grant

  
	
   

  	
   

  	
   

  
	
  Effect
  of  Change of
  Control

  	
   

  	
  Option becomes
  immediately exercisable with respect to all shares

  
	
   

  	
   

  	
   

  
	
  Expiration
  Date:

  	
   

  	
   

  

 

	
   

  	
   

  	
  Cause of
  Termination

  	
   

  	
  Exercisability
  Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exercise
  Period

  following Termination

  of Employment

  	
   

  	
  Death or Disability

  	
   

  	
  1 Year

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Any other reason

  	
   

  	
  3 Months

  

 

I
understand that this Option Agreement is subject to the supplementary
information set forth on the subsequent page of this Agreement, as well as the
terms of the ViewSonic Corporation 1999 Stock Plan (Available on VSN or in
Human Resources).  I acknowledge that I
have also received the Informational Memorandum relating to the plan.

 

	
  ViewSonic
  Corporation

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature
  of person receiving grant

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

1

 

Supplementary Information to

Nonqualified Stock Option Agreement

(Revised as of May 1,
2002)

 

1.             Grant
of Option.  This Option is not an incentive stock
option.

 

2.             Exercisability.   The
Option becomes exercisable in cumulative installments, so that the vested
portion of the Option may be exercised as to any or all of the Shares covered
by an installment at any time or times after the installment vests and until
this Option terminates.  Termination of
employment (whether by reason of death or otherwise) does not cause the vesting
of any additional shares.  Similarly, no
event that occurs following the Optionee’s termination of employment shall cause
the vesting of additional shares.

 

3.             Method
of Exercising.  Some or all of the vested portion of this
Option (but
not less than 50 shares) may be exercised by Optionee upon delivery
of the following documents to the Company:

 

(a)           Written notice specifying the number
of whole Shares to be purchased;

 

(b)           Payment of the entire purchase price
therefor in cash, by check, or in such other form of lawful consideration as
the Committee may approve from time to time;

 

(c)           Such agreements or undertakings that
are required by the Committee; and

 

(d)           Payment of any taxes (including
withholding taxes) which may be required by the Committee.

 

4.             Assignments. 
This Option shall be exercisable only by Optionee during Optionee’s
lifetime.  The rights of Optionee under
this Option may not be assigned or transferred except by will or by the laws of
descent and distribution.

 

5.             No
Rights as a Stockholder.  Optionee shall have no rights
as a stockholder of any Shares covered by this Option until the date a
certificate for the Shares has been issued to him or her following the exercise
of the Option.

 

6.             Plan
Provisions Govern.  This Option is made under the provisions of
the Plan and shall be interpreted in a manner consistent with it.  Any provision in this Option that is
inconsistent with the Plan shall be superseded and governed by the Plan.  A copy of the Plan is attached as
Exhibit A.

 

7.             Legends
on Certificates.  Optionee acknowledges that the certificates
representing the Shares issued upon exercise of this Option may bear such
legends and be subject to such restrictions on transfer as the Company may deem
necessary to comply with all applicable state and federal securities laws and
regulations.  Also, no shares may be
issued if the issuance would not be in compliance with federal and state
securities laws.

 

2

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