Computervision International Corp. - Page 21

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          "The Joint Development Agreement shall prevail over this                    
          Agreement."  The purchase agreement also stated that                        
                    [CV] shall get the benefit of lower prices that                   
               are given to other customers of * * * [Sun] for current                
               and future products that are sold on terms and                         
               conditions that are the same as the terms and                          
               conditions offered to * * * [CV].  If * * * [Sun] does                 
               not offer * * * [CV] a price equal to the lowest price                 
               being offered to such other customer of * * * [Sun]                    
               because the terms and conditions being offered to that                 
               customer are different from those offered to * * *                     
               [CV], * * * [CV] shall have the option to accept the                   
               lower price on the same terms and conditions as are                    
               being offered to the other customer.  Terms and                        
               conditions shall include, but not be limited to, such                  
               items as payment terms, manufacturing rights,                          
               quantities, technology exchanges, warranties and up-                   
               front investment by a purchaser.                                       
               Pursuant to the investment agreement, Sun agreed to issue              
          two stock warrants to CV to provide a further "incentive for an             
          ongoing business relationship."  The exercise of the first stock            
          warrant was contingent upon CV’s purchase of $20 million of                 
          products (including royalties paid by CV to Sun pursuant to the             
          joint development agreement) within 36 months of the first                  
          shipment by Sun to CV; the exercise of the second warrant                   
          required $30 million of purchases within the same 36-month                  
          period.  The stock warrants were exercisable in whole or in part            
          at any time within 5 years after they first became exercisable.             
               The investment agreement provided in relevant part:                    
                    Sun and CV have entered into a Joint Development                  
               Agreement of even date * * * providing for the sharing                 
               by the parties of certain technologies, for the                        
               manufacture by CV of certain reasonable workstation                    






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Last modified: May 25, 2011