{"id":43970,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/underwriting-agreement-pixelworks-inc.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"underwriting-agreement-pixelworks-inc","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/securities\/underwriting-agreement-pixelworks-inc.html","title":{"rendered":"Underwriting Agreement &#8211; Pixelworks Inc."},"content":{"rendered":"<p align=\"center\"><strong>3,650,000 Shares <\/strong><\/p>\n<p align=\"center\"><strong>PIXELWORKS, INC. <\/strong><\/p>\n<p align=\"center\"><strong>Common Stock <\/strong><\/p>\n<p align=\"center\"><strong>UNDERWRITING AGREEMENT <\/strong><\/p>\n<p align=\"right\">May 6, 2011<\/p>\n<p>Roth Capital Partners, LLC<\/p>\n<p>24 Corporate Plaza<\/p>\n<p>Newport Beach, CA 92660<\/p>\n<p>Ladies and Gentlemen:<\/p>\n<p>Pixelworks, Inc., an Oregon corporation (the &#8220;<u>Company<\/u>&#8220;), proposes,<br \/>\nsubject to the terms and conditions stated herein, to issue and sell to Roth<br \/>\nCapital Partners, LLC (the &#8220;<u>Underwriter<\/u>&#8220;) an aggregate of 3,650,000<br \/>\nauthorized but unissued shares (the &#8220;<u>Firm Shares<\/u>&#8220;) of Common Stock, par<br \/>\nvalue $0.001 per share (the &#8220;<u>Common Stock<\/u>&#8220;), of the Company. The Company<br \/>\nalso proposes, subject to the terms and conditions stated herein, to issue and<br \/>\nsell to the Underwriter an aggregate of up to 547,500 additional shares of<br \/>\nCommon Stock (the &#8220;<u>Additional Shares<\/u>&#8220;), if and to the extent that the<br \/>\nUnderwriter shall have determined to exercise the right to purchase such shares<br \/>\ngranted to the Underwriter in Section 4(b) hereof. The Firm Shares and<br \/>\nAdditional Shares are collectively referred to as the &#8220;<u>Shares<\/u>.&#8221;<\/p>\n<p>The Company and the Underwriter hereby agree as follows:<\/p>\n<p><strong><em>1. Registration Statement and Prospectus<\/em><\/strong>. The<br \/>\nCompany has prepared and filed with the Securities and Exchange Commission (the<br \/>\n&#8220;<u>Commission<\/u>&#8220;) a registration statement on Form S-3 (File No. 333-170768)<br \/>\nunder the Securities Act of 1933, as amended (the &#8220;<u>Securities Act<\/u>&#8220;) and<br \/>\nthe rules and regulations of the Commission thereunder (the &#8220;<u>Rules and<br \/>\nRegulations<\/u>&#8220;). Such registration statement has been declared effective by<br \/>\nthe Commission. Such registration statement, including any amendments thereto<br \/>\n(including post effective amendments thereto), the exhibits and any schedules<br \/>\nthereto, the documents incorporated by reference therein pursuant to Form S-3<br \/>\nunder the Securities Act and the Rules and Regulations, and the documents and<br \/>\ninformation otherwise deemed to be a part thereof or included therein by Rule<br \/>\n430B under the Securities Act or otherwise pursuant to the Rules and<br \/>\nRegulations, is herein called the &#8220;<u>Registration Statement<\/u>.&#8221; If the<br \/>\nCompany has filed or files an abbreviated registration statement pursuant to<br \/>\nRule 462(b) under the Securities Act (the &#8220;<u>Rule 462 Registration<br \/>\nStatement<\/u>&#8220;), then any reference herein to the term Registration Statement<br \/>\nshall include such Rule 462 Registration Statement. The prospectus included in<br \/>\nthe Registration Statement at the time it was declared effective by the<br \/>\nCommission is herein called the &#8220;<u>Base Prospectus<\/u>.&#8221;<\/p>\n<p align=\"center\">1<\/p>\n<hr>\n<p>The Company has filed or proposes to file with the Commission pursuant to<br \/>\nRule 424 under the Securities Act a preliminary prospectus supplement relating<br \/>\nto the Shares (the &#8220;<u>Preliminary Prospectus Supplement<\/u>&#8220;) and a final<br \/>\nprospectus supplement relating to the Shares (the &#8220;<u>Final Prospectus<br \/>\nSupplement<\/u>&#8220;). The Final Prospectus Supplement together with the Base<br \/>\nProspectus is hereinafter called the &#8220;<u>Final Prospectus<\/u>.&#8221; The Final<br \/>\nProspectus together with the Preliminary Prospectus Supplement is hereinafter<br \/>\ncalled the &#8220;<u>Prospectus<\/u>.&#8221; Any reference herein to the Base Prospectus, the<br \/>\nPreliminary Prospectus Supplement, the Final Prospectus Supplement, the Final<br \/>\nProspectus or a Prospectus shall be deemed to include the documents incorporated<br \/>\nby reference therein pursuant to the Rules and Regulations.<\/p>\n<p>For purposes of this Agreement, all references to the Registration Statement,<br \/>\nthe Base Prospectus, the Preliminary Prospectus Supplement, the Final Prospectus<br \/>\nSupplement, the Final Prospectus, the Prospectus or any amendment or supplement<br \/>\nto any of the foregoing shall be deemed to include the copy filed with the<br \/>\nCommission pursuant to its Electronic Data Gathering, Analysis and Retrieval<br \/>\nSystem (&#8220;<u>EDGAR<\/u>&#8220;). All references in this Agreement to financial<br \/>\nstatements and schedules and other information which is &#8220;described,&#8221;<br \/>\n&#8220;contained,&#8221; &#8220;included&#8221; or &#8220;stated&#8221; in the Registration Statement, the Base<br \/>\nProspectus, the Preliminary Prospectus Supplement, the Final Prospectus<br \/>\nSupplement, the Final Prospectus or the Prospectus (or other references of like<br \/>\nimport) shall be deemed to mean and include all such financial statements, pro<br \/>\nforma financial information and schedules and other information which is<br \/>\nincorporated by reference in or otherwise deemed by the Rules and Regulations to<br \/>\nbe a part of or included in the Registration Statement, the Base Prospectus, the<br \/>\nPreliminary Prospectus Supplement, the Final Prospectus Supplement, the Final<br \/>\nProspectus or the Prospectus, as the case may be; and all references in this<br \/>\nAgreement to amendments or supplements to the Registration Statement, the Base<br \/>\nProspectus, the Preliminary Prospectus Supplement, the Final Prospectus<br \/>\nSupplement, the Final Prospectus or the Prospectus shall be deemed to mean and<br \/>\ninclude the subsequent filing of any document under the Securities Exchange Act<br \/>\nof 1934, as amended (the &#8220;<u>Exchange Act<\/u>&#8220;), that is deemed to be<br \/>\nincorporated therein by reference therein or otherwise deemed by the Rules and<br \/>\nRegulations to be a part thereof.<\/p>\n<p><strong><em>2. Representations and Warranties of the Company Regarding the<br \/>\nOffering.<\/em><\/strong><\/p>\n<p>(a) The Company represents and warrants to, and agrees with, the Underwriter,<br \/>\nas of the date hereof and as of the Closing Date (as defined in Section 4(c)<br \/>\nbelow), except as otherwise indicated, as follows:<\/p>\n<p>(i) At the date hereof and at the Closing Date, the Registration Statement<br \/>\nand any post-effective amendment thereto conforms or will conform in all<br \/>\nmaterial respects with the requirements of the Securities Act and the Rules and<br \/>\nRegulations and did not or will not, as the case may be, contain any untrue<br \/>\nstatement of a material fact or omit to state a material fact required to be<br \/>\nstated therein or necessary to make the statements therein not misleading. The<br \/>\nTime of Sale Disclosure Package (as defined in Section 2(a)(iii) below) as of<br \/>\nthe date hereof, and the Final Prospectus, as amended or supplemented, at the<br \/>\ntime of filing pursuant to Rule 424(b) under the Securities Act and at the<br \/>\nClosing Date, did not and will not contain any untrue statement of a material<br \/>\nfact or omit to state a material fact required to be stated therein or necessary<br \/>\nto make the statements therein, in the light of the circumstances under which<br \/>\nthey were<\/p>\n<p align=\"center\">2<\/p>\n<hr>\n<p>made, not misleading. The representations and warranties set forth in the two<br \/>\nimmediately preceding sentences shall not apply to statements in or omissions<br \/>\nfrom the Registration Statement, the Base Prospectus, the Preliminary Prospectus<br \/>\nSupplement, the Final Prospectus Supplement, the Final Prospectus or the<br \/>\nProspectus in reliance upon, and in conformity with, written information<br \/>\nfurnished to the Company by the Underwriter specifically for use in the<br \/>\npreparation thereof. The Registration Statement contains all exhibits and<br \/>\nschedules required to be filed by the Securities Act or the Rules and<br \/>\nRegulations. No stop order preventing or suspending the effectiveness or use of<br \/>\nthe Registration Statement or any Prospectus is in effect and no proceedings for<br \/>\nsuch purpose have been instituted or are pending, or, to the knowledge of the<br \/>\nCompany, are contemplated or threatened by the Commission.<\/p>\n<p>(ii) The documents incorporated by reference in the Registration Statement,<br \/>\nthe Time of Sale Disclosure Package and any Prospectus, when they became<br \/>\neffective or were filed with the Commission, as the case may be, conformed in<br \/>\nall material respects to the requirements of the Securities Act or the Exchange<br \/>\nAct, as applicable, were filed on a timely basis with the Commission and none of<br \/>\nsuch documents, when they were filed (or, if amendments to such documents were<br \/>\nfiled, when such amendments were filed), contained an untrue statement of a<br \/>\nmaterial fact or omitted to state a material fact necessary to make the<br \/>\nstatements therein, in the light of the circumstances under which they were<br \/>\nmade, not misleading. Any further documents so filed and incorporated by<br \/>\nreference in the Registration Statement, the Time of Sale Disclosure Package or<br \/>\nthe Final Prospectus, when such documents are filed with the Commission, will<br \/>\nconform in all material respects to the requirements of the Exchange Act, and<br \/>\nwill not contain an untrue statement of a material fact or omit to state a<br \/>\nmaterial fact necessary to make the statements therein, in the light of the<br \/>\ncircumstances under which they were made, not misleading.<\/p>\n<p>(iii) (A) The Company has provided a copy to the Underwriter of each Issuer<br \/>\nFree Writing Prospectus (as defined below) used in the sale of Shares. The<br \/>\nCompany has filed all Issuer Free Writing Prospectuses required to be so filed<br \/>\nwith the Commission, and no stop order preventing or suspending the<br \/>\neffectiveness or use of any Issuer Free Writing Prospectus is in effect and no<br \/>\nproceedings for such purpose have been instituted or are pending, or, to the<br \/>\nknowledge of the Company, are contemplated or threatened by the Commission. No<br \/>\nIssuer Free Writing Prospectus, as of its issue date and at all subsequent times<br \/>\nthrough the completion of the public offer and sale of the Shares, has, does or<br \/>\nwill include information that conflicted, conflicts or will conflict with the<br \/>\ninformation contained in the Registration Statement or the Final Prospectus. The<br \/>\nrepresentations and warranties set forth in the immediately preceding sentence<br \/>\nshall not apply to statements in or omissions from any Issuer Free Writing<br \/>\nProspectus in reliance upon, and in conformity with, written information<br \/>\nfurnished to the Company by the Underwriter specifically for use in the<br \/>\npreparation thereof. As used in this paragraph and elsewhere in this Agreement:\n<\/p>\n<p>(1) &#8220;<u>Time of Sale Disclosure Package<\/u>&#8221; means the Base Prospectus, the<br \/>\nPreliminary Prospectus Supplement, and the description of the transaction<br \/>\nprovided by the Underwriter included on <strong>Schedule I<\/strong>.<\/p>\n<p align=\"center\">3<\/p>\n<hr>\n<p>(2) &#8220;<u>Issuer Free Writing Prospectus<\/u>&#8221; means any &#8220;issuer free writing<br \/>\nprospectus,&#8221; as defined in Rule 433 under the Securities Act, relating to the<br \/>\nShares that (A) is required to be filed with the Commission by the Company, or<br \/>\n(B) is exempt from filing pursuant to Rule 433(d)(5)(i) or (d)(8) under the<br \/>\nSecurities Act, in each case in the form filed or required to be filed with the<br \/>\nCommission or, if not required to be filed, in the form retained in the<br \/>\nCompany153s records pursuant to Rule 433(g) under the Securities Act. For the<br \/>\navoidance of doubt, the term &#8220;Issuer Free Writing Prospectus&#8221; shall not include<br \/>\nany &#8220;free writing prospectus&#8221; (as defined in Rule 405 under the Securities Act)<br \/>\nthat was prepared by the Underwriter or provided to any person by the<br \/>\nUnderwriter without the knowledge and consent of the Company.<\/p>\n<p>(B) At the time of filing of the Registration Statement and at the date<br \/>\nhereof, the Company was not and is not an &#8220;ineligible issuer,&#8221; as defined in<br \/>\nRule 405 under the Securities Act or an &#8220;excluded issuer&#8221; as defined in Rule 164<br \/>\nunder the Securities Act.<\/p>\n<p>(C) Each Issuer Free Writing Prospectus satisfied, as of its issue date, all<br \/>\nother conditions as may be applicable to its use as set forth in Rules 164 and<br \/>\n433 under the Securities Act, including any legend, record-keeping or other<br \/>\nrequirements.<\/p>\n<p>(iv) The financial statements of the Company, together with the related<br \/>\nnotes, included or incorporated by reference in the Registration Statement, the<br \/>\nTime of Sale Disclosure Package and the Final Prospectus comply in all material<br \/>\nrespects with the applicable requirements of the Securities Act and the Exchange<br \/>\nAct and fairly present the financial condition of the Company as of the dates<br \/>\nindicated and the results of operations and changes in cash flows for the<br \/>\nperiods therein specified in conformity with generally accepted accounting<br \/>\nprinciples consistently applied throughout the periods involved; and the<br \/>\nsupporting schedules included in or incorporated by reference into the<br \/>\nRegistration Statement present fairly the information required to be stated<br \/>\ntherein. No other financial statements, pro forma financial information or<br \/>\nschedules are required under the Securities Act to be included or incorporated<br \/>\nby reference in the Registration Statement, the Time of Sale Disclosure Package<br \/>\nor the Final Prospectus. To the Company153s knowledge, KPMG LLP, which has<br \/>\nexpressed its opinion with respect to the audited financial statements and<br \/>\nschedules filed as a part of the Registration Statement and included in or<br \/>\nincorporated by reference into the Registration Statement, the Time of Sale<br \/>\nDisclosure Package and the Final Prospectus, is an independent public accounting<br \/>\nfirm with respect to the Company within the meaning of the Securities Act and<br \/>\nthe Rules and Regulations.<\/p>\n<p>(v) The Company had a reasonable basis for, and made in good faith, each<br \/>\n&#8220;forward-looking statement&#8221; (within the meaning of Section 27A of the Act or<br \/>\nSection 21E of the Exchange Act) contained or incorporated by reference in the<br \/>\nRegistration Statement, the Time of Sale Disclosure Package or the Final<br \/>\nProspectus.<\/p>\n<p align=\"center\">4<\/p>\n<hr>\n<p>(vi) Any statistical or market-related data included or incorporated by<br \/>\nreference in the Registration Statement, the Time of Sale Disclosure Package or<br \/>\nthe Final Prospectus are based on or derived from sources that the Company<br \/>\nreasonably believes to be reliable and accurate in all material respects, and<br \/>\nthe Company has obtained the written consent to the use of such data from such<br \/>\nsources, to the extent required.<\/p>\n<p>(vii) The Common Stock is registered pursuant to Section 12(b) of the<br \/>\nExchange Act and is listed or approved for listing on The NASDAQ Global Market<br \/>\n(&#8220;<u>NASDAQ<\/u>&#8220;). There is no action pending by the Company or, to the<br \/>\nCompany153s knowledge, NASDAQ to delist the Common Stock from NASDAQ, nor has the<br \/>\nCompany received any notification that NASDAQ is contemplating terminating such<br \/>\nlisting. As of the Closing Date, the Shares will have been duly authorized for<br \/>\nlisting on NASDAQ, subject to official notice of issuance.<\/p>\n<p>(viii) The Company has not taken, directly or indirectly, any action that is<br \/>\ndesigned to or that has constituted or that would reasonably be expected to<br \/>\ncause or result in the unlawful stabilization or manipulation of the price of<br \/>\nany security of the Company to facilitate the sale or resale of the Shares.<\/p>\n<p>(ix) [Intentionally omitted.]<\/p>\n<p>(x) The Company is not required to, and, after giving effect to the offering<br \/>\nand sale of the Shares, will not be required to, register as an &#8220;investment<br \/>\ncompany,&#8221; as such term is defined in the Investment Company Act of 1940, as<br \/>\namended.<\/p>\n<p>(xi) The Company was at the time of filing the Registration Statement, and at<br \/>\nthe date hereof, remains eligible to use Form S-3 under the Securities Act.<\/p>\n<p>(b) Any certificate that is, and is required by the terms of this Agreement<br \/>\nto be, signed by any officer of the Company and delivered to the Underwriter<br \/>\nshall be deemed a representation and warranty by the Company to the Underwriter<br \/>\nas to the matters covered thereby.<\/p>\n<p><strong><em>3. Representations and Warranties Regarding the<br \/>\nCompany.<\/em><\/strong><\/p>\n<p>(a) The Company represents and warrants to and agrees with, the Underwriter,<br \/>\nexcept as set forth in the Registration Statement, the Time of Sale Disclosure<br \/>\nPackage and the Prospectus, as follows:<\/p>\n<p>(i) Each of the Company and its subsidiaries has been duly organized and is<br \/>\nvalidly existing as a corporation in good standing under the laws of its<br \/>\njurisdiction of incorporation. Each of the Company and its subsidiaries has the<br \/>\ncorporate power and authority to own its properties and conduct its business as<br \/>\ncurrently being carried on and as described in the Registration Statement, the<br \/>\nTime of Sale Disclosure Package and the Prospectus, and is duly qualified to do<br \/>\nbusiness as a foreign corporation in good standing in each jurisdiction in which<br \/>\nit owns or leases real property or in which the conduct of its business makes<br \/>\nsuch qualification necessary, except in each case, where the failure to be so<br \/>\nqualified would not have or be reasonably likely to result in a material adverse<br \/>\neffect upon the business, financial condition or results of operations of the<br \/>\nCompany and its subsidiaries, taken as a whole, or in the Company153s ability to<br \/>\nperform its obligations under this Agreement (&#8220;<u>Material Adverse<br \/>\nEffect<\/u>&#8220;).<\/p>\n<p align=\"center\">5<\/p>\n<hr>\n<p>(ii) The Company has the corporate power and authority to enter into this<br \/>\nAgreement and to issue and sell the Shares as contemplated by this Agreement.<br \/>\nThis Agreement has been duly authorized, executed and delivered by the Company,<br \/>\nand constitutes a valid, legal and binding obligation of the Company,<br \/>\nenforceable in accordance with its terms, except as rights to indemnity and<br \/>\ncontribution hereunder may be limited by federal or state law and except as such<br \/>\nenforceability may be limited by bankruptcy, insolvency, reorganization or<br \/>\nsimilar laws affecting the rights of creditors generally and subject to general<br \/>\nprinciples of equity.<\/p>\n<p>(iii) The execution, delivery and performance of this Agreement and the<br \/>\nconsummation of the transactions herein contemplated will not (A) result in a<br \/>\nbreach or violation of any of the terms and provisions of, or constitute a<br \/>\ndefault under, any law, rule or regulation to which the Company or any<br \/>\nsubsidiary is subject, or by which any property or asset of the Company or any<br \/>\nsubsidiary is bound or affected, (B) conflict with, result in any violation or<br \/>\nbreach of, or constitute a default (or an event that with notice or lapse of<br \/>\ntime or both would become a default) under, or give to others any right of<br \/>\ntermination, amendment, acceleration or cancellation (with or without notice,<br \/>\nlapse of time or both) of, any agreement, lease, credit facility, debt, note,<br \/>\nbond, mortgage, indenture or other instrument (the &#8220;<u>Contracts<\/u>&#8220;) or<br \/>\nobligation or other understanding to which the Company or any subsidiary is a<br \/>\nparty of by which any property or asset of the Company or any subsidiary is<br \/>\nbound or affected, or (C) result in a breach or violation of any of the terms<br \/>\nand provisions of, or constitute a default under, the Company153s articles of<br \/>\nincorporation or by-laws, each as amended, except in the case of clauses (A) and<br \/>\n(B), to the extent not reasonably likely to result in a Material Adverse Effect.\n<\/p>\n<p>(iv) Neither the Company nor any of its subsidiaries is in violation, breach<br \/>\nor default under its articles of incorporation, by-laws or other equivalent<br \/>\norganizational or governing documents, each as amended, except, in the case of a<br \/>\nsubsidiary of the Company, to the extent the violation, breach or default is not<br \/>\nreasonably likely to result in a Material Adverse Effect.<\/p>\n<p>(v) All consents, approvals, orders, authorizations and filings required on<br \/>\nthe part of the Company and its subsidiaries in connection with the execution,<br \/>\ndelivery or performance of this Agreement have been obtained or made, other than<br \/>\n(A) any such consents, approvals, orders, authorizations and filings to be<br \/>\nobtained or made after the date of this Agreement under the Securities Act, the<br \/>\nExchange Act, the Rules and Regulations and applicable state and foreign<br \/>\nsecurities laws in connection with the offer and sale of the Shares, (B) the<br \/>\nlisting of the Shares on NASDAQ, and (C) such consents, approvals, orders and<br \/>\nauthorizations the failure of which to make or obtain is not reasonably likely<br \/>\nto result in a Material Adverse Effect.<\/p>\n<p align=\"center\">6<\/p>\n<hr>\n<p>(vi) All of the issued and outstanding shares of capital stock of the Company<br \/>\nare duly authorized and validly issued, fully paid and nonassessable, and have<br \/>\nbeen issued in material compliance with all applicable securities laws, and<br \/>\nconform in all material respects to the description thereof in the Registration<br \/>\nStatement, the Time of Sale Disclosure Package and the Prospectus. Except for<br \/>\nthe issuances of options or restricted stock in the ordinary course of business,<br \/>\nsince the respective dates as of which information is provided in the<br \/>\nRegistration Statement, the Time of Sale Disclosure Package or the Prospectus,<br \/>\nthe Company has not entered into or granted any convertible or exchangeable<br \/>\nsecurities, options, warrants, agreements, contracts or other rights in<br \/>\nexistence to purchase or acquire from the Company any shares of the capital<br \/>\nstock of the Company. The Shares, when issued and duly paid for as provided<br \/>\nherein, will be duly authorized and validly issued, fully paid and<br \/>\nnonassessable, and will be free of preemptive, registration or similar rights.\n<\/p>\n<p>(vii) Each of the Company and its subsidiaries has (i) filed all returns (as<br \/>\nhereinafter defined) required to be filed with taxing authorities prior to the<br \/>\ndate hereof or has duly obtained extensions of time for the filing thereof, and<br \/>\n(ii) paid all taxes (as hereinafter defined) shown as due and payable on such<br \/>\nreturns that were filed, in each of cases (i) and (ii), except (A) with respect<br \/>\nto any taxes that are being contested in good faith and (B) to the extent not<br \/>\nreasonably likely to result in a Material Adverse Effect. Except as disclosed to<br \/>\nthe Underwriter or its legal counsel, (i) no material issues have been raised<br \/>\n(and are currently pending) by any taxing authority in connection with any of<br \/>\nthe returns or taxes asserted as due from the Company or its subsidiaries, and<br \/>\n(ii) no waivers of statutes of limitation with respect to the returns or<br \/>\ncollection of taxes have been given by or requested from the Company or its<br \/>\nsubsidiaries. The term &#8220;<u>taxes<\/u>&#8221; mean all federal, state, local, foreign,<br \/>\nand other net income, gross income, gross receipts, sales, use, ad valorem,<br \/>\ntransfer, franchise, profits, license, lease, service, service use, withholding,<br \/>\npayroll, employment, excise, severance, stamp, occupation, premium, property,<br \/>\nwindfall profits, customs, duties or other taxes, fees, assessments, or charges<br \/>\nof any kind whatever, together with any interest and any penalties, additions to<br \/>\ntax, or additional amounts with respect thereto. The term &#8220;<u>returns<\/u>&#8221; means<br \/>\nall returns, declarations, reports, statements, and other documents required to<br \/>\nbe filed in respect to taxes.<\/p>\n<p>(viii) Since the respective dates as of which information is given in the<br \/>\nRegistration Statement, the Time of Sale Disclosure Package or the Prospectus,<br \/>\n(a) neither the Company nor any of its subsidiaries has incurred any material<br \/>\nliabilities or obligations, direct or contingent, or entered into any material<br \/>\ntransactions other than in the ordinary course of business, (b) the Company has<br \/>\nnot declared or paid any dividends or made any distribution of any kind with<br \/>\nrespect to its capital stock; (c) there has not been any material change in the<br \/>\nnumber of outstanding shares of the capital stock of the Company or any of its<br \/>\nsubsidiaries (other than a change in the number of outstanding shares of Common<br \/>\nStock due to the issuance of shares upon the exercise of outstanding options or<br \/>\nwarrants or the issuance, repurchase or forfeiture of restricted stock awards or<br \/>\nrestricted stock units under the Company153s existing stock awards plans, or any<br \/>\nnew grants thereof in the ordinary course of business), (d) there has not been<br \/>\nany material change in the outstanding principal amount of the Company153s<br \/>\nlong-term or short-term debt (except for any changes that have resulted or may<br \/>\nresult from any repurchase made in connection with the Company153s offer to<br \/>\nrepurchase (the &#8220;<u>Tender Offer<\/u>&#8220;) its 1.75% Convertible Subordinated<br \/>\nDebentures due 2024 (the &#8220;<u>Convertible Debentures<\/u>&#8220;), which offer was<br \/>\ndisclosed by the Company on its Form TO, filed with the Commission on April 13,<br \/>\n2011), and (e) there has not been any Material Adverse Effect.<\/p>\n<p align=\"center\">7<\/p>\n<hr>\n<p>(ix) There is not pending or, to the knowledge of the Company, threatened,<br \/>\nany action, suit or proceeding to which the Company or any of its subsidiaries<br \/>\nis a party or of which any property or assets of the Company is the subject<br \/>\nbefore or by any court or governmental agency, authority or body, or any<br \/>\narbitrator or mediator, in each case, which is reasonably likely to result in a<br \/>\nMaterial Adverse Effect.<\/p>\n<p>(x) The Company and each of its subsidiaries holds, and is in compliance<br \/>\nwith, all franchises, grants, authorizations, licenses, permits, easements,<br \/>\nconsents, certificates and orders (&#8220;<u>Permits<\/u>&#8220;) of any governmental or<br \/>\nself-regulatory agency, authority or body required for the conduct of its<br \/>\nbusiness, and all such Permits are in full force and effect, in each case except<br \/>\nwhere the failure to hold, or comply with, any of them is not reasonably likely<br \/>\nto result in a Material Adverse Effect.<\/p>\n<p>(xi) The Company and its subsidiaries have good and marketable title to all<br \/>\nproperty (whether real or personal) described in the Registration Statement, the<br \/>\nTime of Sale Disclosure Package and the Prospectus as being owned by them that<br \/>\nare material to the business of the Company, in each case free and clear of all<br \/>\nliens, claims, security interests, other encumbrances or defects, except those<br \/>\nthat are not reasonably likely to result in a Material Adverse Effect. The<br \/>\nproperty held under lease by the Company and its subsidiaries is held by them<br \/>\nunder valid, subsisting and enforceable leases with only such exceptions with<br \/>\nrespect to any particular lease as do not interfere in any material respect with<br \/>\nthe conduct of the business of the Company and its subsidiaries.<\/p>\n<p>(xii) The Company and each of its subsidiaries owns or possesses or has valid<br \/>\nright to use all patents, patent applications, trademarks, service marks, trade<br \/>\nnames, trademark registrations, service mark registrations, copyrights,<br \/>\nlicenses, inventions, trade secrets and similar rights (&#8220;<u>Intellectual<br \/>\nProperty<\/u>&#8220;) that are material to the business of the Company and its<br \/>\nsubsidiaries as currently carried on and as described in the Registration<br \/>\nStatement, the Time of Sale Disclosure Package and the Prospectus. To the<br \/>\nknowledge of the Company, no action or use by the Company or any of its<br \/>\nsubsidiaries will involve or give rise to any infringement of, or license or<br \/>\nsimilar fees for, any Intellectual Property of others, except where such action,<br \/>\nuse, license or fee is not reasonably likely to result in a Material Adverse<br \/>\nEffect. Neither the Company nor any of its subsidiaries has received any notice<br \/>\nalleging any such infringement or fee.<\/p>\n<p>(xiii) The Company and each of its subsidiaries has complied with, is not in<br \/>\nviolation of, and has not received any notice of violation relating to any law,<br \/>\nrule or regulation relating to the conduct of its business, or the ownership or<br \/>\noperation of its property and assets, including, without limitation, (A) the<br \/>\nCurrency and Foreign Transactions Reporting Act of 1970, as amended, or any<br \/>\nmoney laundering laws, rules or regulations, (B) any laws, rules or regulations<br \/>\nrelated to health, safety or the environment, including those relating to the<br \/>\nregulation of hazardous substances, (C) the Sarbanes-Oxley Act and the rules and<br \/>\nregulations of the Commission thereunder, (D) the Foreign Corrupt Practices Act<br \/>\nof 1977 and the rules and regulations thereunder, and (E) the Employment<br \/>\nRetirement Income Security Act of 1974 and the rules and regulations thereunder,<br \/>\nin each case except where the failure to be in compliance is not reasonably<br \/>\nlikely to result in a Material Adverse Effect.<\/p>\n<p align=\"center\">8<\/p>\n<hr>\n<p>(xiv) Neither the Company nor any of its subsidiaries nor, to the knowledge<br \/>\nof the Company, any director, officer, employee, representative, agent or<br \/>\naffiliate of the Company or any of its subsidiaries is currently subject to any<br \/>\nU.S. sanctions administered by the Office of Foreign Assets Control of the U.S.<br \/>\nTreasury Department (&#8220;<u>OFAC<\/u>&#8220;); and the Company will not knowingly directly<br \/>\nor indirectly use the proceeds of the offering of the Shares contemplated<br \/>\nhereby, or lend, contribute or otherwise make available such proceeds to any<br \/>\nperson or entity, for the purpose of financing the activities of any person<br \/>\ncurrently subject to any U.S. sanctions administered by OFAC.<\/p>\n<p>(xv) The Company carries, or is covered by, insurance in such amounts and<br \/>\ncovering such risks as the Company believes is reasonable for the conduct of its<br \/>\nbusiness and the value of its properties.<\/p>\n<p>(xvi) No labor dispute with the employees of the Company or any of its<br \/>\nsubsidiaries exists or, to the knowledge of the Company, is imminent, except for<br \/>\nany such dispute that is not reasonably likely to result in a Material Adverse<br \/>\nEffect.<\/p>\n<p>(xvii) Neither the Company nor, to its knowledge, any other party is in<br \/>\nviolation, breach or default of any Contract that is reasonably likely to result<br \/>\nin a Material Adverse Effect.<\/p>\n<p>(xviii) No supplier, customer, distributor or sales agent of the Company has<br \/>\nnotified the Company that it intends to discontinue or decrease the rate of<br \/>\nbusiness done with the Company, except where such decrease is not reasonably<br \/>\nlikely to result in a Material Adverse Effect.<\/p>\n<p>(xix) Except for this Agreement and the engagement letter, dated March 28,<br \/>\n2011, neither the Company nor any of its subsidiaries is party to any<br \/>\narrangements or understandings for services in the nature of a finder153s,<br \/>\nconsulting, underwriting or origination fee for the offer and sale of the Shares<br \/>\nhereunder, and neither the Company nor any of its subsidiaries has paid any such<br \/>\nfee with respect to the introduction of the Company to the Underwriter or for<br \/>\nthe offer and sale of the Shares hereunder.<\/p>\n<p>(xx) [Intentionally omitted.]<\/p>\n<p>(xxi) To the knowledge of the Company, based on the Company153s review of<br \/>\nSchedules 13D and 13G filed with the Commission with respect to the outstanding<br \/>\nCommon Stock of the Company, there are no beneficial owners of 5% or more of the<br \/>\nCompany153s Common Stock, except for Renaissance Technologies LLC; provided,<br \/>\nhowever, that the Company hereby informs the Underwriter that on February 14,<br \/>\n2011 Shannon River Fund Management Co., LLC filed with the Commission a Form<br \/>\n13-F with respect to 844,383 shares of Common Stock. The Company will advise the<br \/>\nUnderwriter and its counsel if it becomes aware, prior to the Closing Date, that<br \/>\nany beneficial owner of 5% or more of the Company153s Common Stock (other than<br \/>\nRenaissance Technologies LLC) is or becomes a member of FINRA or an affiliate or<br \/>\nassociated person of a FINRA member.<\/p>\n<p align=\"center\">9<\/p>\n<hr>\n<p>(xxii) The Company has not issued any unregistered equity securities to any<br \/>\nperson during the 180-day period immediately preceding the date that the Company<br \/>\nfiled the Registration Statement with the Commission.<\/p>\n<p>(xxiii) The Company does not have any current intention to direct any<br \/>\nproceeds of the offering and sale of the Shares to a member of FINRA, except as<br \/>\nprovided herein.<\/p>\n<p>(xxiv) Other than the Underwriter, the Company has not appointed or granted<br \/>\nany right to any person to act as an underwriter or financial advisor to the<br \/>\nCompany with respect to the offer and sale of the Shares.<\/p>\n<p><strong><em>4. Purchase, Sale and Delivery of Shares.<\/em><\/strong><\/p>\n<p>(a) On the basis of the representations, warranties and agreements herein<br \/>\ncontained, but subject to the terms and conditions herein set forth, the Company<br \/>\nagrees to issue and sell the Firm Shares to the Underwriter, and the Underwriter<br \/>\nagrees to purchase the Firm Shares. The purchase price to be paid by the<br \/>\nUnderwriter to the Company for the Firm Shares shall be $2.1112 per share (the<br \/>\n&#8220;<u>Per Share Price<\/u>&#8220;).<\/p>\n<p>(b) On the basis of the representations, warranties and agreements herein<br \/>\ncontained, but subject to the terms and conditions herein set forth, the Company<br \/>\nhereby grants to the Underwriter an option to purchase some or all of the<br \/>\nAdditional Shares, and the Underwriter shall have the right to purchase all or<br \/>\nany portion of the Additional Shares at the price per share equal to the Per<br \/>\nShare Price, as may be necessary to cover over-allotments made in connection<br \/>\nwith the transactions contemplated hereby. This option may be exercised by the<br \/>\nUnderwriter at any time (but not more than once) on or before the thirtieth<br \/>\n(30th) day following the date hereof, upon one (1) day written notice to the<br \/>\nCompany (the &#8220;<u>Option Notice<\/u>&#8220;). The Option Notice shall set forth the<br \/>\naggregate number of Additional Shares as to which the option is being exercised,<br \/>\nand the date and time when the Additional Shares are to be delivered (such date<br \/>\nand time being herein referred to as the &#8220;<u>Option Closing Date<\/u>&#8220;);<br \/>\n<em>provided<\/em>, <em>however<\/em>, that, unless the Company and the<br \/>\nUnderwriter otherwise agree, the Option Closing Date shall not be earlier than<br \/>\nthe Closing Date (as defined below) with respect to the Firm Shares, nor earlier<br \/>\nthan the third business day after the date on which the option shall have been<br \/>\nexercised, nor later than the fifth business day after the date on which the<br \/>\noption shall have been exercised.<\/p>\n<p>Payment of the purchase price for and delivery of the Additional Shares shall<br \/>\nbe made on the Option Closing Date in the same manner and at the same office as<br \/>\nthe payment for the Firm Shares as set forth in subparagraph (c) below.<\/p>\n<p>(c) The Firm Shares will be delivered by the Company to the Underwriter<br \/>\nagainst payment of the purchase price therefor by wire transfer of immediately<br \/>\navailable funds payable to the order of the Company, at 7:00 a.m. PDT on<br \/>\nWednesday, May 11, 2011, or at such other time and date as the Underwriter and<br \/>\nthe Company may agree in writing, or, in the case of<\/p>\n<p align=\"center\">10<\/p>\n<hr>\n<p>the Additional Shares, at such date and time set forth in the Option Notice.<br \/>\nThe time and date of delivery of the Firm Shares or the Additional Shares, as<br \/>\napplicable, is referred to herein as the &#8220;<u>Closing Date<\/u>.&#8221; Delivery of the<br \/>\nFirm Shares and Additional Shares shall be made in book-entry form through the<br \/>\nfacilities of The Depository Trust Company to the account of the Underwriter<br \/>\ndesignated by the Underwriter.<\/p>\n<p><strong><em>5. Covenants and Other Agreements.<\/em><\/strong><\/p>\n<p>(a) The Company covenants and agrees with the Underwriter as follows:<\/p>\n<p>(i) During the period beginning on the date hereof and ending on the later of<br \/>\nthe Closing Date or such date, as reasonably determined by the Underwriter, the<br \/>\nProspectus is no longer required by law to be delivered in connection with sales<br \/>\nby an underwriter or dealer (the &#8220;<u>Prospectus Delivery Period<\/u>&#8220;), prior to<br \/>\namending or supplementing the Registration Statement, the Time of Sale<br \/>\nDisclosure Package or the Prospectus, the Company shall furnish to the<br \/>\nUnderwriter for review and comment a copy of each such proposed amendment or<br \/>\nsupplement, and the Company shall not file any such proposed amendment or<br \/>\nsupplement to which the Underwriter reasonably objects; provided that no report<br \/>\nor other document reasonably determined by the Company or its counsel to be<br \/>\nrequired to be filed or furnished by the Company under the Exchange Act after<br \/>\nthe date of this Agreement shall be considered an amendment or supplement to the<br \/>\nRegistration Statement, Time of Sale Disclosure Package or the Prospectus for<br \/>\npurposes of this subsection (i).<\/p>\n<p>(ii) From the date of this Agreement until the end of the Prospectus Delivery<br \/>\nPeriod, the Company shall promptly advise the Underwriter in writing (A) of the<br \/>\nreceipt of any comments of, or requests for additional or supplemental<br \/>\ninformation from, the Commission, (B) of the time and date of any filing of any<br \/>\npost-effective amendment to the Registration Statement or any amendment or<br \/>\nsupplement to the Time of Sale Disclosure Package, the Prospectus or any Issuer<br \/>\nFree Writing Prospectus, (C) of the time and date that any post-effective<br \/>\namendment to the Registration Statement becomes effective and (D) of the<br \/>\nissuance by the Commission of any stop order suspending the effectiveness of the<br \/>\nRegistration Statement or of any order preventing or suspending its use or the<br \/>\nuse of the Time of Sale Disclosure Package, the Prospectus or any Issuer Free<br \/>\nWriting Prospectus, or of any proceedings to remove, suspend or terminate from<br \/>\nlisting or quotation the Common Stock from any securities exchange upon which it<br \/>\nis listed for trading or included or designated for quotation, or of the<br \/>\nthreatening or initiation of any proceedings for any of such purposes. If the<br \/>\nCommission shall enter any such stop order at any time during the Prospectus<br \/>\nDelivery Period, the Company will use its reasonable efforts to obtain the<br \/>\nlifting of such order at the earliest possible moment. Additionally, the Company<br \/>\nagrees that it shall comply with the provisions of Rules 424(b), 430A and 430B,<br \/>\nas applicable, under the Securities Act and will use its reasonable efforts to<br \/>\nconfirm that any filings made by the Company under Rule 424(b) or Rule 433 were<br \/>\nreceived in a timely manner by the Commission (without reliance on Rule<br \/>\n424(b)(8) or 164(b) of the Securities Act).<\/p>\n<p align=\"center\">11<\/p>\n<hr>\n<p>(iii) (A) During the Prospectus Delivery Period, the Company will comply with<br \/>\nall requirements imposed upon it by the Securities Act, as now and hereafter<br \/>\namended, and by the Rules and Regulations, as from time to time in force, and by<br \/>\nthe Exchange Act, as now and hereafter amended, so far as necessary to permit<br \/>\nthe continuance of sales of the Shares as contemplated by the provisions hereof,<br \/>\nthe Time of Sale Disclosure Package, the Registration Statement and the<br \/>\nProspectus. If during such period any event occurs as a result of which the<br \/>\nProspectus (or if the Prospectus is not yet available to prospective purchasers,<br \/>\nthe Time of Sale Disclosure Package) includes an untrue statement of a material<br \/>\nfact or omits to state a material fact necessary to make the statements therein,<br \/>\nin the light of the circumstances then existing, not misleading, or if during<br \/>\nsuch period it is necessary or appropriate in the opinion of the Company or its<br \/>\ncounsel or the Underwriter or its counsel to amend the Registration Statement or<br \/>\nsupplement the Prospectus (or if the Prospectus is not yet available to<br \/>\nprospective purchasers, the Time of Sale Disclosure Package) to comply with the<br \/>\nSecurities Act or to file under the Exchange Act any document that would be<br \/>\ndeemed to be incorporated by reference in the Prospectus in order to comply with<br \/>\nthe Securities Act or the Exchange Act, the Company will, promptly following the<br \/>\ntime it becomes aware of such opinion, notify the Underwriter and amend the<br \/>\nRegistration Statement or supplement the Prospectus (or if the Prospectus is not<br \/>\nyet available to prospective purchasers, the Time of Sale Disclosure Package) or<br \/>\nfile such document (at the expense of the Company) so as to correct such<br \/>\nstatement or omission or effect such compliance.<\/p>\n<p>(B) If at any time following the issuance of an Issuer Free Writing<br \/>\nProspectus there occurs an event or development as a result of which such Issuer<br \/>\nFree Writing Prospectus conflicts with the information contained in the<br \/>\nRegistration Statement or any Prospectus, the Company will promptly notify the<br \/>\nUnderwriter and will promptly amend or supplement, at its own expense, such<br \/>\nIssuer Free Writing Prospectus to eliminate or correct such conflict.<\/p>\n<p>(iv) The Company shall use reasonable efforts to qualify the Shares for sale<br \/>\nunder the securities laws of such jurisdictions as the Underwriter reasonably<br \/>\nrequests and to continue such qualifications in effect so long as required for<br \/>\nthe distribution of the Shares, except that the Company shall not be required in<br \/>\nconnection therewith to (A) qualify in any such jurisdiction as a foreign<br \/>\ncorporation or as a dealer in securities in any jurisdiction in which it is not<br \/>\nso qualified, (B) to execute a general consent to service of process in any<br \/>\njurisdiction, (C) to subject itself to taxation in respect of doing business in<br \/>\nany jurisdiction in which it is not otherwise subject or (D) qualify the Shares<br \/>\nfor sale under the laws of any non-U.S. jurisdictions.<\/p>\n<p>(v) The Company will furnish to the Underwriter and counsel for the<br \/>\nUnderwriter copies of the Registration Statement, each Prospectus, any Issuer<br \/>\nFree Writing Prospectus, and all amendments and supplements to such documents,<br \/>\nin each case promptly after they become available and in such quantities as the<br \/>\nUnderwriter may from time to time reasonably request.<\/p>\n<p>(vi) The Company will make generally available to its security holders as<br \/>\nsoon as practicable, but in any event not later than 15 months after the end of<br \/>\nthe Company153s current fiscal quarter, an earnings statement (which need not be<br \/>\naudited) covering a 12-month period that shall satisfy the provisions of Section<br \/>\n11(a) of the Securities Act and Rule 158 of the Rules and Regulations.<\/p>\n<p align=\"center\">12<\/p>\n<hr>\n<p>(vii) The Company will pay or cause to be paid: (A) all expenses (including<br \/>\ntransfer taxes allocated to the respective transferees) incurred in connection<br \/>\nwith the delivery to the Underwriter of the Shares, (B) all expenses and fees<br \/>\nincurred by the Company (including, without limitation, fees and expenses of the<br \/>\nCompany153s counsel) in connection with the preparation, printing, filing,<br \/>\ndelivery, and shipping of the Registration Statement (including the financial<br \/>\nstatements therein and all amendments, schedules, and exhibits thereto), the<br \/>\nShares, the Time of Sale Disclosure Package, the Prospectus, any Issuer Free<br \/>\nWriting Prospectus and any amendment thereof or supplement thereto, (C) all<br \/>\nreasonable filing fees and reasonable fees and disbursements of the<br \/>\nUnderwriter153s counsel incurred in connection with the qualification of the<br \/>\nShares for offering and sale by the Underwriter or by dealers under the<br \/>\nsecurities or blue sky laws of the states and other jurisdictions that the<br \/>\nUnderwriter shall reasonably request, (D) the fees and expenses of any transfer<br \/>\nagent or registrar of the Shares, (E) NASDAQ listing fees, if any, and (F) all<br \/>\nother costs and expenses incident to the performance of its obligations<br \/>\nhereunder that are not otherwise specifically provided for herein. In addition<br \/>\nto the foregoing, the Company will pay the Underwriter, on the Closing Date, an<br \/>\namount equal to 1.25% of the gross proceeds received by the Company from the<br \/>\nsale of the Firm Shares and the Additional Shares, as applicable, as a<br \/>\nnon-accountable reimbursement of the Underwriter153s other expenses (the<br \/>\n&#8220;<u>Non-Accountable Underwriter153s Expenses<\/u>&#8220;). If this Agreement is<br \/>\nterminated by the Underwriter in accordance with the provisions of Section 6 or<br \/>\nSection 9, the Company will reimburse the Underwriter for all out-of-pocket<br \/>\ndisbursements (including, but not limited to, reasonable fees and disbursements<br \/>\nof counsel, travel expenses, postage, facsimile and telephone charges) incurred<br \/>\nby the Underwriter in connection with its investigation, preparing to market and<br \/>\nmarketing the Shares or in contemplation of performing its obligations<br \/>\nhereunder. Notwithstanding anything contained herein, the maximum amount payable<br \/>\nby the Company for all fees, expenses, costs, disbursements and out-of-pocket<br \/>\nexpenses of the Underwriter (excluding the Non-Accountable Underwriter153s<br \/>\nExpenses, but including, without limitation, any such other fees, expenses,<br \/>\ncosts, disbursements and out-of-pocket expenses listed above and any fees and<br \/>\ndisbursements of Underwriter153s counsel pursuant to this Section 5(a)(vii)) shall<br \/>\nbe $30,000.<\/p>\n<p>(viii) [Intentionally omitted.]<\/p>\n<p>(ix) The Company has not taken and will not take, directly or indirectly,<br \/>\nduring the Prospectus Delivery Period, any action designed to or which might<br \/>\nreasonably be expected to cause or result in, or that has constituted, the<br \/>\nunlawful stabilization or manipulation of the price of any security of the<br \/>\nCompany to facilitate the sale or resale of the Shares.<\/p>\n<p>(x) [Intentionally omitted.]<\/p>\n<p align=\"center\">13<\/p>\n<hr>\n<p>(xi) The Company hereby agrees that, without the prior written consent of the<br \/>\nUnderwriter, it will not, during the period ending ninety (90) days after the<br \/>\ndate hereof (&#8220;<u>Lock-Up Period<\/u>&#8220;), (i) offer, pledge, issue, sell, contract<br \/>\nto sell, lend, or otherwise transfer or dispose of, directly or indirectly, any<br \/>\nshares of Common Stock or any securities convertible into or exercisable or<br \/>\nexchangeable for Common Stock; or (ii) enter into any swap or other arrangement<br \/>\nthat transfers to another, in whole or in part, any of the economic consequences<br \/>\nof ownership of the Common Stock, whether any such transaction described in<br \/>\nclause (i) or (ii) above is to be settled by delivery of Common Stock or such<br \/>\nother securities, in cash or otherwise; or (iii) file any registration statement<br \/>\nwith the Commission relating to the offering of any shares of Common Stock or<br \/>\nany securities convertible into or exercisable or exchangeable for Common Stock.<br \/>\nThe restrictions contained in the preceding sentence shall not apply to (1) the<br \/>\nShares to be sold hereunder, (2) the issuance of Common Stock upon the exercise<br \/>\nof options or warrants and the vesting of restricted stock awards or units, (3)<br \/>\nthe issuance of employee stock options and the grant, redemption or forfeiture<br \/>\nof restricted stock awards or restricted stock units pursuant to equity<br \/>\nincentive plans described in the Registration Statement and the Prospectus and<br \/>\n(4) the issuance of Common Stock pursuant to an employee stock purchase plan of<br \/>\nthe Company. Notwithstanding the foregoing, if (x) the Company issues an<br \/>\nearnings release or material news, or a material event relating to the Company<br \/>\noccurs, during the last 17 days of the Lock-Up Period, or (y) prior to the<br \/>\nexpiration of the Lock-Up Period, the Company announces that it will release<br \/>\nearnings results during the 16-day period beginning on the last day of the<br \/>\nLock-Up Period, the restrictions imposed by this clause shall continue to apply<br \/>\nuntil the expiration of the 18-day period beginning on the issuance of the<br \/>\nearnings release or the occurrence of the material news or material event,<br \/>\nunless the Underwriter waives such extension in writing.<\/p>\n<p>(b) The Underwriter represents, warrants and agrees with the Company that:\n<\/p>\n<p>(i) the Underwriter has complied with all of its obligations under that<br \/>\ncertain letter agreement, dated April 25, 2011, by and between the Company and<br \/>\nthe Underwriter and that it will continue to so comply with each such obligation<br \/>\nfor as long as such obligation is applicable to it; and<\/p>\n<p>(ii) with respect to any offers and sales of Shares in the United Kingdom and<br \/>\nthe European Economic Area, the Underwriter will comply with the offering and<br \/>\nselling restrictions set forth in the Time of Sale Disclosure Package under the<br \/>\ncaptions &#8220;Underwriting:United Kingdom&#8221; and &#8220;Underwriting:European Economic Area&#8221;<br \/>\nand the Underwriter hereby makes the representations, warranties and agreements<br \/>\ndescribed thereunder as being made by it.<\/p>\n<p>(c) The Company represents and agrees that, unless it obtains the prior<br \/>\nwritten consent of the Underwriter, and the Underwriter represents and agrees<br \/>\nthat, unless it obtains the prior written consent of the Company, it has not<br \/>\nmade and will not make any offer relating to the Shares that would constitute an<br \/>\nIssuer Free Writing Prospectus; provided that the prior written consent of the<br \/>\nparties hereto shall be deemed to have been given in respect of the free writing<br \/>\nprospectus included in <strong>Schedule I<\/strong>. Any such free writing<br \/>\nprospectus consented to by the Company and the Underwriter is hereinafter<br \/>\nreferred to as a &#8220;<u>Permitted Free Writing<\/u><\/p>\n<p align=\"center\">14<\/p>\n<hr>\n<p><u>Prospectus<\/u>.&#8221; The Company represents that it has treated or agrees that<br \/>\nit will treat each Permitted Free Writing Prospectus as an &#8220;issuer free writing<br \/>\nprospectus,&#8221; as defined in Rule 433, and has complied or will comply with the<br \/>\nrequirements of Rule 433 applicable to any Permitted Free Writing Prospectus,<br \/>\nincluding timely Commission filing where required, legending and record-keeping.\n<\/p>\n<p><strong><em>6. Conditions of the Underwriter153s Obligations<\/em><\/strong>. The<br \/>\nobligations of the Underwriter hereunder to purchase the Shares are subject to<br \/>\nthe accuracy, as of the date hereof and at the Closing Date (as if made at the<br \/>\nClosing Date), of and compliance with all representations, warranties and<br \/>\nagreements of the Company contained herein, the performance by the Company of<br \/>\nits obligations hereunder and the following additional conditions:<\/p>\n<p>(a) If filing of the Prospectus, or any amendment or supplement thereto, or<br \/>\nany Issuer Free Writing Prospectus, is required under the Securities Act or the<br \/>\nRules and Regulations, the Company shall have filed the Prospectus (or such<br \/>\namendment or supplement) or such Issuer Free Writing Prospectus with the<br \/>\nCommission in the manner and within the time period so required (without<br \/>\nreliance on Rule 424(b)(8) or 164(b) under the Securities Act); the Registration<br \/>\nStatement shall remain effective; no stop order suspending the effectiveness of<br \/>\nthe Registration Statement or any part thereof, nor suspending or preventing the<br \/>\nuse of the Time of Sale Disclosure Package, the Final Prospectus or any Issuer<br \/>\nFree Writing Prospectus shall have been issued; and no proceedings for the<br \/>\nissuance of such an order shall have been initiated or threatened by the<br \/>\nCommission.<\/p>\n<p>(b) On or after the date hereof (i) no downgrading shall have occurred in the<br \/>\nrating accorded any of the Company153s securities by any &#8220;nationally recognized<br \/>\nstatistical organization,&#8221; as that term is defined by the Commission for<br \/>\npurposes of Rule 436(g)(2) under the Securities Act, and (ii) no such<br \/>\norganization shall have publicly announced that it has under surveillance or<br \/>\nreview, with possible negative implications, its rating of any of the Company153s<br \/>\nsecurities.<\/p>\n<p>(c) On the Closing Date, there shall have been furnished to the Underwriter<br \/>\n(i) an opinion of Ater Wynne LLP, dated the Closing Date, addressed to the<br \/>\nUnderwriter, in substantially the form attached hereto as <strong>Exhibit<br \/>\nA<\/strong>, (ii) a disclosure letter of Gibson, Dunn &amp; Crutcher LLP, dated<br \/>\nthe Closing Date, addressed to the Underwriter, in substantially the form<br \/>\nattached hereto as <strong>Exhibit B<\/strong> and (iii) a disclosure letter of<br \/>\nK&amp;L Gates LLP, dated the Closing Date, addressed to the Underwriter, in form<br \/>\nand substance reasonably satisfactory to the Underwriter, provided that, with<br \/>\nrespect to any Closing Date for any Additional Shares occurring following the<br \/>\nClosing Date for the Firm Shares, each of Gibson, Dunn &amp; Crutcher LLP and<br \/>\nK&amp;L Gates LLP, at its election, may instead deliver a bring down letter<br \/>\nre-affirming, as of such Closing Date for the Additional Shares, the statements<br \/>\nin its disclosure letter delivered on the Closing Date for the Firm Shares, and<br \/>\nthe delivery of such bring down letter shall be deemed to satisfy the conditions<br \/>\nset forth in clause (ii) or clause (iii) above, as the case may be.<\/p>\n<p>(d) On the Closing Date, the Underwriter shall have received a letter of KPMG<br \/>\nLLP, dated the Closing Date and addressed to the Underwriter, confirming that<br \/>\nthey are independent public accountants within the meaning of the Securities Act<br \/>\nand are in compliance with the applicable requirements relating to the<br \/>\nqualifications of accountants under Rule 2-01 of<\/p>\n<p align=\"center\">15<\/p>\n<hr>\n<p>Regulation S-X of the Commission, and confirming, as of the date of such<br \/>\nletter (or, with respect to matters involving changes or developments since the<br \/>\nrespective dates as of which specified financial information is given in the<br \/>\nTime of Sale Disclosure Package, as of a date not prior to the date hereof or<br \/>\nmore than five days prior to the date of such letter), the conclusions and<br \/>\nfindings of said firm with respect to the financial information and other<br \/>\nmatters covered by its letter delivered to the Underwriter concurrently with the<br \/>\nexecution of this Agreement.<\/p>\n<p>(e) On the Closing Date, there shall have been furnished to the Underwriter a<br \/>\ncertificate, dated the Closing Date and addressed to the Underwriter, signed by<br \/>\neither the chief executive officer or the chief financial officer of the<br \/>\nCompany, in their capacity as such on behalf of the Company, to the effect that:<br \/>\n(i) the representations and warranties of the Company in this Agreement are true<br \/>\nand correct, in all material respects, as if made at and as of the Closing Date,<br \/>\nand (ii) the Company has complied in all material respects with all the<br \/>\nagreements and satisfied all the conditions on its part required to be performed<br \/>\nor satisfied at or prior to the Closing Date.<\/p>\n<p>(f) On the Closing Date, or the Option Closing Date, as applicable, the<br \/>\nCompany shall have furnished to the Underwriter a certificate signed by the<br \/>\nCompany153s secretary including copies of (i) all resolutions of the Company153s<br \/>\nBoard of Directors or committees thereof relating to the Registration Statement<br \/>\nand the offer and sale of the Shares and (ii) the Company153s articles of<br \/>\nincorporation and bylaws, each as amended and in effect on the Closing Date.\n<\/p>\n<p>(g) The Company shall have prepared and filed with the Commission a Current<br \/>\nReport on Form 8-K with respect to the offer and sale of the Shares, including<br \/>\nas an exhibit thereto this Agreement.<\/p>\n<p>(h) Each of the Company153s executive officers and directors shall have<br \/>\nexecuted and delivered to the Underwriter a Lock-up Agreement, substantially in<br \/>\nthe form attached hereto as <strong>Exhibit C<\/strong>.<\/p>\n<p>If any condition specified in this Section 6 shall not have been fulfilled in<br \/>\nall material respects as of the Closing Date, this Agreement may be terminated<br \/>\nby the Underwriter by written notice to the Company specifying in reasonable<br \/>\ndetail the reason for such termination, and such termination shall be without<br \/>\nliability of any party to any other party, except that Section 5(a)(vii),<br \/>\nSection 7 and Section 8 shall survive any such termination and remain in full<br \/>\nforce and effect.<\/p>\n<p><strong><em>7. Indemnification and Contribution.<\/em><\/strong><\/p>\n<p>(a) The Company agrees to indemnify, defend and hold harmless the<br \/>\nUnderwriter, its affiliates, directors and officers and each person, if any, who<br \/>\ncontrols the Underwriter within the meaning of Section 15 of the Securities Act<br \/>\nor Section 20 of the Exchange Act, from and against any losses, claims, damages<br \/>\nor liabilities to which the Underwriter or such person may become subject, under<br \/>\nthe Securities Act or otherwise (including in settlement of any litigation if<br \/>\nsuch settlement is effected with the written consent of the Company), insofar as<br \/>\nsuch losses, claims, damages or liabilities (or actions in respect thereof)<br \/>\narise out of or are based upon an untrue statement or alleged untrue statement<br \/>\nof a material fact<\/p>\n<p align=\"center\">16<\/p>\n<hr>\n<p>contained in the Registration Statement, the Time of Sale Disclosure Package,<br \/>\nthe Final Prospectus, or any Issuer Free Writing Prospectus, or arise out of or<br \/>\nare based upon the omission or alleged omission to state therein a material fact<br \/>\nrequired to be stated therein or necessary to make the statements therein, in<br \/>\nlight of the circumstances under which they were made, not misleading, and will<br \/>\nreimburse the Underwriter for any legal or other expenses reasonably incurred by<br \/>\nit in connection with evaluating, investigating or defending against such loss,<br \/>\nclaim, damage, liability or action; <em>provided, however<\/em>, that the Company<br \/>\nshall not be liable in any such case to the extent that any such loss, claim,<br \/>\ndamage, liability or action (or any legal or other expense reasonably incurred<br \/>\nin connection with the evaluation, investigation or defense thereof) arises out<br \/>\nof or is based upon an untrue statement or alleged untrue statement or omission<br \/>\nor alleged omission made in the Registration Statement, the Time of Sale<br \/>\nDisclosure Package, the Final Prospectus, or any Issuer Free Writing Prospectus,<br \/>\nin reliance upon and in conformity with written information furnished to the<br \/>\nCompany by the Underwriter specifically for use in the preparation thereof.<\/p>\n<p>(b) The Underwriter will indemnify and hold harmless the Company, its<br \/>\naffiliates, directors and officers and each person, if any, who controls the<br \/>\nCompany within the meaning of Section 15 of the Securities Act or Section 20 of<br \/>\nthe Exchange Act, from and against any losses, claims, damages or liabilities to<br \/>\nwhich the Company or such person may become subject, under the Securities Act or<br \/>\notherwise (including in settlement of any litigation, if such settlement is<br \/>\neffected with the written consent of such Underwriter), insofar as such losses,<br \/>\nclaims, damages or liabilities (or actions in respect thereof) arise out of or<br \/>\nare based upon an untrue statement or alleged untrue statement of a material<br \/>\nfact contained in the Registration Statement, the Time of Sale Disclosure<br \/>\nPackage, the Final Prospectus, or any Issuer Free Writing Prospectus, or arise<br \/>\nout of or are based upon the omission or alleged omission to state therein a<br \/>\nmaterial fact required to be stated therein or necessary to make the statements<br \/>\ntherein not misleading, in each case to the extent, but only to the extent, that<br \/>\nsuch untrue statement or alleged untrue statement or omission or alleged<br \/>\nomission was made in the Registration Statement, the Time of Sale Disclosure<br \/>\nPackage, the Final Prospectus, or any Issuer Free Writing Prospectus in reliance<br \/>\nupon and in conformity with written information furnished to the Company by the<br \/>\nUnderwriter specifically for use in the preparation thereof, and will reimburse<br \/>\nthe Company for any legal or other expenses reasonably incurred by the Company<br \/>\nin connection with evaluating, investigating or defending against any such loss,<br \/>\nclaim, damage, liability or action.<\/p>\n<p>(c) Promptly after receipt by an indemnified party under subsection (a) or<br \/>\n(b) above of notice of the commencement of any action, such indemnified party<br \/>\nshall, if a claim in respect thereof is to be made against the indemnifying<br \/>\nparty under such subsection, notify the indemnifying party in writing of the<br \/>\ncommencement thereof; but the failure to notify the indemnifying party shall not<br \/>\nrelieve the indemnifying party from any liability that it may have to any<br \/>\nindemnified party except to the extent such indemnifying party has been<br \/>\nprejudiced by such failure. In case any such action shall be brought against any<br \/>\nindemnified party, and it shall notify the indemnifying party of the<br \/>\ncommencement thereof, the indemnifying party shall be entitled to participate<br \/>\nin, and, to the extent that it shall wish, jointly with any other indemnifying<br \/>\nparty similarly notified, to assume the defense thereof, with counsel reasonably<br \/>\nsatisfactory to such indemnified party, and after notice from the indemnifying<br \/>\nparty to such indemnified party of the indemnifying party153s election so to<br \/>\nassume the defense thereof, the indemnifying party<\/p>\n<p align=\"center\">17<\/p>\n<hr>\n<p>shall not be liable to such indemnified party for any legal or other expenses<br \/>\nsubsequently incurred by such indemnified party in connection with the defense<br \/>\nthereof; <em>provided<\/em>, <em>however<\/em>, that if (i) the indemnified party<br \/>\nhas reasonably concluded (based on advice of counsel) that a conflict or<br \/>\npotential conflict exists (based on advice of counsel to the indemnified party)<br \/>\nbetween the indemnified party and the indemnifying party (in which case the<br \/>\nindemnifying party will not have the right to direct the defense of such action<br \/>\non behalf of the indemnified party), or (ii) the indemnifying party has not in<br \/>\nfact employed counsel reasonably satisfactory to the indemnified party to assume<br \/>\nthe defense of such action within a reasonable time after receiving notice of<br \/>\nthe commencement of the action, the indemnified party or parties shall have the<br \/>\nright to employ a single counsel to represent it in any claim in respect of<br \/>\nwhich indemnity may be sought under subsection (a) or (b) of this Section 7, in<br \/>\nwhich event the reasonable fees and expenses of such separate counsel shall be<br \/>\nborne by the indemnifying party and reimbursed to the indemnified party or<br \/>\nparties as incurred; it being understood, however, that the indemnifying party<br \/>\nshall not be liable for the expenses of more than one separate counsel (plus<br \/>\nlocal counsel).<\/p>\n<p>The indemnifying party under this Section 7 shall not be liable for any<br \/>\nsettlement of any proceeding effected without its written consent, but if<br \/>\nsettled with such consent or if there be a final judgment for the plaintiff, the<br \/>\nindemnifying party agrees to indemnify the indemnified party against any loss,<br \/>\nclaim, damage, liability or expense by reason of such settlement or judgment. No<br \/>\nindemnifying party shall, without the prior written consent of the indemnified<br \/>\nparty, effect any settlement, compromise or consent to the entry of judgment in<br \/>\nany pending or threatened action, suit or proceeding in respect of which any<br \/>\nindemnified party is a party or could be named and indemnity was or would be<br \/>\nsought hereunder by such indemnified party, unless such settlement, compromise<br \/>\nor consent (a) includes an unconditional release of such indemnified party from<br \/>\nall liability for claims that are the subject matter of such action, suit or<br \/>\nproceeding and (b) does not include a statement as to or an admission of fault,<br \/>\nculpability or a failure to act by or on behalf of any indemnified party.<\/p>\n<p>(d) If the indemnification provided for in this Section 7 is unavailable or<br \/>\ninsufficient to hold harmless an indemnified party under subsection (a) or (b)<br \/>\nabove, then the indemnifying party shall contribute to the amount paid or<br \/>\npayable by such indemnified party as a result of the losses, claims, damages or<br \/>\nliabilities referred to in subsection (a) or (b) above, (i) in such proportion<br \/>\nas is appropriate to reflect the relative benefits received by the Company on<br \/>\nthe one hand and the Underwriter on the other from the offering and sale of the<br \/>\nShares or (ii) if the allocation provided by clause (i) above is not permitted<br \/>\nby applicable law, in such proportion as is appropriate to reflect not only the<br \/>\nrelative benefits referred to in clause (i) above but also the relative fault of<br \/>\nthe Company on the one hand and the Underwriter on the other in connection with<br \/>\nthe statements or omissions that resulted in such losses, claims, damages or<br \/>\nliabilities, as well as any other relevant equitable considerations. The<br \/>\nrelative benefits received by the Company on the one hand and the Underwriter on<br \/>\nthe other shall be deemed to be in the same proportion as the total net proceeds<br \/>\nfrom the offering (before deducting expenses) received by the Company bear to<br \/>\nthe total underwriting discounts and commissions and non-accountable expense<br \/>\nreimbursement received by the Underwriter, in each case as set forth in the<br \/>\ntable on the cover page of the Final Prospectus. The relative fault shall be<br \/>\ndetermined by reference to, among other things, whether the untrue or alleged<br \/>\nuntrue statement of a material fact or the omission or alleged omission to state<br \/>\na material fact relates to information supplied by the Company or the<br \/>\nUnderwriter and the parties153 relevant intent, knowledge, access to information<br \/>\nand opportunity to<\/p>\n<p align=\"center\">18<\/p>\n<hr>\n<p>correct or prevent such untrue statement or omission. The Company and the<br \/>\nUnderwriter agree that it would not be just and equitable if contributions<br \/>\npursuant to this subsection (d) were to be determined by pro rata allocation or<br \/>\nby any other method of allocation that does not take account of the equitable<br \/>\nconsiderations referred to in the first sentence of this subsection (d). The<br \/>\namount paid by an indemnified party as a result of the losses, claims, damages<br \/>\nor liabilities referred to in the first sentence of this subsection (d) shall be<br \/>\ndeemed to include any legal or other expenses reasonably incurred by such<br \/>\nindemnified party in connection with investigating or defending against any<br \/>\naction or claim that is the subject of this subsection (d). Notwithstanding the<br \/>\nprovisions of this subsection (d), the Underwriter shall not be required to<br \/>\ncontribute any amount in excess of the amount of the Underwriter153s discounts and<br \/>\ncommissions and non-accountable expense reimbursement actually received by the<br \/>\nUnderwriter pursuant to this Agreement. No person guilty of fraudulent<br \/>\nmisrepresentation (within the meaning of Section 11(f) of the Securities Act)<br \/>\nshall be entitled to contribution from any person who was not guilty of such<br \/>\nfraudulent misrepresentation.<\/p>\n<p>(e) The obligations of the Company under this Section 7 shall be in addition<br \/>\nto any liability that the Company may otherwise have and the benefits of such<br \/>\nobligations shall extend, upon the same terms and conditions, to each person, if<br \/>\nany, who controls the Underwriter within the meaning of Section 15 of the<br \/>\nSecurities Act or Section 20 of the Exchange Act; and the obligations of the<br \/>\nUnderwriter under this Section 7 shall be in addition to any liability that the<br \/>\nUnderwriter may otherwise have and the benefits of such obligations shall<br \/>\nextend, upon the same terms and conditions, to the Company, and officers,<br \/>\ndirectors and each person who controls the Company within the meaning of Section<br \/>\n15 of the Securities Act or Section 20 of the Exchange Act.<\/p>\n<p>(f) For purposes of this Agreement, the Underwriter confirms, and the Company<br \/>\nacknowledges, that there is no information concerning the Underwriter furnished<br \/>\nin writing to the Company by the Underwriter specifically for preparation of or<br \/>\ninclusion in the Registration Statement, the Time of Sale Disclosure Package,<br \/>\nthe Final Prospectus or any Issuer Free Writing Prospectus, other than the<br \/>\nstatements set forth in the last paragraph on the cover page of the Prospectus,<br \/>\nthe marketing and legal names of the Underwriter, and the statements set forth<br \/>\nin the &#8220;Underwriting&#8221; section of the Final Prospectus and Time of Sale<br \/>\nDisclosure Package, only insofar as such statements relate to the amount of<br \/>\nselling concession and re-allowance or to over-allotment, stabilization and<br \/>\nrelated activities that may be undertaken by the Underwriter.<\/p>\n<p><strong><em>8. Representations and Agreements to Survive<br \/>\nDelivery<\/em><\/strong>. All representations, warranties, and agreements<br \/>\ncontained herein or in certificates delivered pursuant hereto, including, but<br \/>\nnot limited to, the agreements of the Underwriter and the Company contained in<br \/>\nSection 5(a)(vii), Section 5(b), Section 5(c) and Section 7 hereof, shall remain<br \/>\noperative and in full force and effect regardless of any investigation made by<br \/>\nor on behalf of the Underwriter or any controlling person thereof, or the<br \/>\nCompany or any of its officers, directors, or controlling persons, and shall<br \/>\nsurvive delivery of, and payment for, the Shares to and by the Underwriter<br \/>\nhereunder.<\/p>\n<p align=\"center\">19<\/p>\n<hr>\n<p><strong><em>9. Termination of this Agreement<\/em><\/strong>.<\/p>\n<p>(a) The Underwriter shall have the right to terminate this Agreement by<br \/>\ngiving notice to the Company as hereinafter specified at any time at or prior to<br \/>\nthe Closing Date, if (i) trading in the Company153s Common Stock shall have been<br \/>\nsuspended by the Commission or NASDAQ or trading in securities generally on<br \/>\nNASDAQ shall have been suspended, (ii) minimum or maximum prices for trading<br \/>\nshall have been fixed, or maximum ranges for prices for securities shall have<br \/>\nbeen required, on NASDAQ, by such exchange or by order of the Commission or any<br \/>\nother governmental authority having jurisdiction, (iii) a general banking<br \/>\nmoratorium shall have been declared by federal, New York or California state<br \/>\nauthorities, or (iv) there shall have occurred any material outbreak or material<br \/>\nescalation of hostilities involving the United States, any declaration by the<br \/>\nUnited States of a national emergency or war, any material adverse change in<br \/>\nfinancial markets, any material adverse change in United States or international<br \/>\npolitical, financial or economic conditions or any other material calamity or<br \/>\nmaterial crisis, including an act of terrorism, the effect of any of which, in<br \/>\neach case described in this subsection (a), is such as to make it, in the<br \/>\nreasonable judgment of the Underwriters, impracticable or inadvisable to proceed<br \/>\nwith the offering, sale or delivery of the Shares on the terms and in the manner<br \/>\ncontemplated by the Prospectus, the Time of Sale Disclosure Package and this<br \/>\nAgreement. Any such termination shall be without liability of any party to any<br \/>\nother party except that the provisions of Section 5(a)(vii), Section 5(b)(i) and<br \/>\nSection 7 hereof shall at all times be effective and shall survive such<br \/>\ntermination.<\/p>\n<p>(b) If the Underwriter elects to terminate this Agreement as provided in this<br \/>\nSection, the Company shall be notified promptly by the Underwriter by telephone,<br \/>\nconfirmed promptly thereafter by letter.<\/p>\n<p><strong><em>10. Notices<\/em><\/strong>. Except as otherwise provided herein,<br \/>\nall communications hereunder shall be in writing and, if to Roth, shall be<br \/>\nmailed, delivered or telecopied to Roth Capital Partners, LLC, 24 Corporate<br \/>\nPlaza, Newport Beach, CA 92660, telecopy number: (949) 720-7227, Attention:<br \/>\nManaging Director; and if to the Company, shall be mailed, delivered or<br \/>\ntelecopied to it at Pixelworks, Inc., 224 Airport Parkway, Suite 400, San Jose,<br \/>\nCA 95110, telecopy number: (408) 200-9299, Attention: Steven Moore, with a copy<br \/>\n(which shall not constitute notice) to Gibson, Dunn &amp; Crutcher LLP, 555<br \/>\nMission Street, San Francisco, CA 94105, telecopy number: (415) 374-8459,<br \/>\nAttention: Michael L. Reed; or in each case to such other address as the person<br \/>\nto be notified may have requested in writing. Any party to this Agreement may<br \/>\nchange such address for notices by sending to the parties to this Agreement<br \/>\nwritten notice of a new address for such purpose.<\/p>\n<p><strong><em>11. Persons Entitled to Benefit of Agreement<\/em><\/strong>. This<br \/>\nAgreement shall inure to the benefit of and be binding upon the parties hereto<br \/>\nand their respective successors and assigns and, with respect to Section 7, the<br \/>\ncontrolling persons referred to in Section 7. Nothing in this Agreement is<br \/>\nintended or shall be construed to give to any other person, firm or corporation<br \/>\nany legal or equitable remedy or claim under or in respect of this Agreement or<br \/>\nany provision herein contained. The term &#8220;successors and assigns&#8221; as herein used<br \/>\nshall not include any purchaser, as such purchaser, of any of the Shares from<br \/>\nthe Underwriter.<\/p>\n<p align=\"center\">20<\/p>\n<hr>\n<p><strong><em>12. Absence of Fiduciary Relationship<\/em><\/strong>. The Company<br \/>\nacknowledges and agrees that: (a) the Underwriter has been retained solely to<br \/>\nact as underwriter in connection with the sale of the Shares and that no<br \/>\nfiduciary, advisory or agency relationship between the Company and the<br \/>\nUnderwriter has been created in respect of any of the transactions contemplated<br \/>\nby this Agreement, irrespective of whether the Underwriter has advised or is<br \/>\nadvising the Company on other matters; (b) the price and other terms of the<br \/>\nShares set forth in this Agreement were established by the Company following<br \/>\ndiscussions and arms-length negotiations with the Underwriter and the Company is<br \/>\ncapable of evaluating and understanding and understands and accepts the terms,<br \/>\nrisks and conditions of the transactions contemplated by this Agreement; (c) it<br \/>\nhas been advised that the Underwriter and its affiliates are engaged in a broad<br \/>\nrange of transactions that may involve interests that differ from those of the<br \/>\nCompany and that the Underwriter has no obligation to disclose such interest and<br \/>\ntransactions to the Company by virtue of any fiduciary, advisory or agency<br \/>\nrelationship; (d) it has been advised that the Underwriter is acting, in respect<br \/>\nof the transactions contemplated by this Agreement, solely for the benefit of<br \/>\nthe Underwriter, and not on behalf of the Company.<\/p>\n<p><strong><em>13. Amendments and Waivers<\/em><\/strong>. No supplement,<br \/>\nmodification or waiver of this Agreement shall be binding unless executed in<br \/>\nwriting by the party to be bound thereby. The failure of a party to exercise any<br \/>\nright or remedy shall not be deemed or constitute a waiver of such right or<br \/>\nremedy in the future. No waiver of any of the provisions of this Agreement shall<br \/>\nbe deemed or shall constitute a waiver of any other provision hereof (regardless<br \/>\nof whether similar), nor shall any such waiver be deemed or constitute a<br \/>\ncontinuing waiver unless otherwise expressly provided.<\/p>\n<p><strong><em>14. Partial Unenforceability<\/em><\/strong>. The invalidity or<br \/>\nunenforceability of any section, paragraph, clause or provision of this<br \/>\nAgreement shall not affect the validity or enforceability of any other section,<br \/>\nparagraph, clause or provision.<\/p>\n<p><strong><em>15. Governing Law<\/em><\/strong>. This Agreement shall be governed<br \/>\nby and construed in accordance with the laws of the State of California.<\/p>\n<p><strong><em>16. Counterparts<\/em><\/strong>. This Agreement may be executed in<br \/>\none or more counterparts and, if executed in more than one counterpart, the<br \/>\nexecuted counterparts shall each be deemed to be an original and all such<br \/>\ncounterparts shall together constitute one and the same instrument.<\/p>\n<p align=\"center\">21<\/p>\n<hr>\n<p>Please sign and return to the Company the enclosed duplicates of this letter<br \/>\nwhereupon this letter will become a binding agreement between the Company and<br \/>\nthe Underwriter in accordance with its terms.<\/p>\n<table style=\"width: 40%;\" width=\"40%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"12%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"87%\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" valign=\"top\">\n<p>Very truly yours,<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" valign=\"top\">\n<p>PIXELWORKS, INC.<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>By:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>\/s\/ Bruce A. Walicek<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Name:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Bruce A. Walicek<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Title:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>President and CEO<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Confirmed as of the date first above-<\/p>\n<p>mentioned by the Underwriter.<\/p>\n<table style=\"width: 40%;\" width=\"40%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"13%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"86%\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" valign=\"top\">\n<p>ROTH CAPITAL PARTNERS, LLC<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>By:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>\/s\/ Aaron M. Gurewitz<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Name:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Aaron M. Gurewitz<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Title:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Head of Equity Capital Markets<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p align=\"center\">[Signature page to Underwriting Agreement]<\/p>\n<hr>\n<p align=\"center\"><strong>SCHEDULE I <\/strong><\/p>\n<p align=\"right\"><strong>ISSUER FREE WRITING PROSPECTUS <\/strong><\/p>\n<p align=\"right\">Filed Pursuant to Rule 433<\/p>\n<p align=\"right\">Registration No. 333-170768<\/p>\n<p align=\"right\">Dated May 6, 2011<\/p>\n<p align=\"center\"><strong>PIXELWORKS, INC. <\/strong><\/p>\n<p align=\"center\"><strong>3,650,000 Shares of Common Stock <\/strong><\/p>\n<p align=\"center\"><strong>Final Term Sheet <\/strong><\/p>\n<table style=\"width: 100%;\" width=\"100%\" cellpadding=\"0\" class=\" \" border=\"0\" cellspacing=\"0\">\n<tbody>\n<tr>\n<td width=\"37%\"><\/td>\n<td width=\"1%\" valign=\"bottom\"><\/td>\n<td width=\"62%\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Issuer:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Pixelworks, Inc. (the &#8220;Company&#8221;)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Symbol:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>PXLW<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Security:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Common stock, par value $0.001 per share<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Size:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>3,650,000 shares of common stock<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Over-allotment option:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>547,500 additional shares of common stock<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Public offering price:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>$2.24 per share<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Underwriting discounts and commissions:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>$0.1288 per share<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Non-accountable expense reimbursement:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>$0.028 per share<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Net proceeds (excluding the over-allotment):<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>$7,287,680 (after deducting the underwriter153s discounts and commissions, the<br \/>\nnon-accountable expense reimbursement and estimated offering expenses payable by<br \/>\nthe Company)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Trade date:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>May 6, 2011<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Settlement date:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>May 11, 2011<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>CUSIP:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>72581M305<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td><\/td>\n<td colspan=\"2\"><\/td>\n<\/tr>\n<tr>\n<td valign=\"top\">\n<p>Underwriter:<\/p>\n<\/td>\n<td valign=\"bottom\"><\/td>\n<td valign=\"bottom\">\n<p>Roth Capital Partners, LLC<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The issuer has filed a registration statement (including a prospectus) with<br \/>\nthe SEC for the offering to which this communication relates. Before you invest,<br \/>\nyou should read the prospectus in that registration statement and other<br \/>\ndocuments the issuer has filed with the SEC for more complete information about<br \/>\nthe issuer and this offering. You may get these documents for free by visiting<br \/>\nEDGAR on the SEC Web site at <em>www.sec.gov<\/em>. Alternatively, the issuer,<br \/>\nany underwriter or any dealer participating in the offering will arrange to send<br \/>\nyou the prospectus if you request it from Roth Capital Partners, LLC, Attention:<br \/>\nEquity Capital Markets, 24 Corporate Plaza Drive, Newport Beach, CA, 92660, by<br \/>\ntelephone at 1-800-678-9147, by e-mail to rothecm@roth.com, or by fax to (949)<br \/>\n720-7227.<\/p><\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8533],"corporate_contracts_industries":[9512],"corporate_contracts_types":[9629,9634],"class_list":["post-43970","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-pixelworks-inc","corporate_contracts_industries-technology__semiconductors","corporate_contracts_types-securities","corporate_contracts_types-securities__underwriting"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/43970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=43970"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=43970"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=43970"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=43970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}