Commercial Credit and Security Agreement

     THIS COMMERCIAL CREDIT AND SECURITY AGREEMENT (the  "Agreement"),  dated as
of the 2nd of March,  1998,  is  entered  between  Evans &  Sutherland  Computer
Corporation (the "Borrower") and First Security Bank, N.A. ("Lender").

     Borrower  has  requested  Lender to extend  credit to Borrower  for certain
purposes,  and Lender is willing to make such a loan (hereinafter the "Loan") on
the terms and  conditions  of this  Agreement.  Therefore,  the parties agree as
follows:

     SECTION 1.   AMOUNT AND TERMS OF THE LOAN.

     1.1 The maximum  principal amount of the Loan shall be Five Million Dollars
($5,000,000.00).

     1.2 The Loan shall consist of two separate facilities:

         (a) A Standby Letter of Credit  Commitment  ("L/C Line"),  which may be
         used up to a maximum amount of Four Million Dollars ($4,000,000.00). So
         long as any amounts  remain  unutilized  under this L/C Line, or if any
         letter of credit  issued under the L/C Line expires  undrawn,  Borrower
         may have  issued and  reissued  letters of credit up to and the maximum
         amount listed above so long as no default exists under this  Agreement.
         Each letter of credit  issued under the L/C Line shall be charged a fee
         of 0.75%  of the  amount  of the  letter  of  credit  issued,  plus the
         standard per item charges assessed by First Security.

         (b) A Foreign Exchange Line of Credit (FX Line). From time to time from
         the date hereof  through and including the  Termination  Date, and upon
         request of Borrower Lender will enter into Foreign  Exchange  Contracts
         with  Borrower  of up to the  maximum  aggregate  amount,  at any  time
         subject to outstanding contracts (not yet settled), that will not cause
         the  FX  Line  amount   outstanding  to  exceed  One  Million   Dollars
         ($1,000,000.00),  provided that there is sufficient  availability under
         the FX Line.

     1.3 The Loan shall be evidenced by, or consist of the following:

         (a) In the case of the L/C Line, for each letter of credit  issued,  an
         Application,  Agreement and Note for Standby  Documentary  Credit which
         obligates  Borrower  to repay the Loan upon  Demand  should any draw be
         made on a letter of credit (collectively the "Note"). The Loan shall be
         repaid to Lender and shall accrue interest as set forth in the Note. In
         particular,  should an event of default  occur  under  this  Agreement,
         which may  include,  but not be limited  to,  failure to repay any draw
         upon a letter of credit upon Lender's demand,  or the occurrence of any
         event of default as outlined in Section 5.1 of this Agreement, Borrower
         shall then be assessed a default rate of interest  which shall be equal
         to  Lender's  Prime  Rate  of  interest  plus  two  percentage  points.
         Notwithstanding any contradiction which may exist in the Note, the rate
         herein stated to be assessed upon the occurrence of an event of default
         of Borrower shall take precedence.

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         (b) With respect to the FX Line,  the Foreign  Exchange  Contract which
         will be offered by Lender to Borrower shall be to fix, at the date that
         it enters into purchase contracts with various foreign  suppliers,  the
         dollar  cost  of  various  foreign  currencies.   Except  as  otherwise
         provided,  the  Foreign  Exchange  Contracts  which  will be offered by
         Lender  shall be either  spot or forward  contracts.  The terms of such
         spot and  forward  contracts  shall  be the  standard  spot or  forward
         contact  format  then  generally  offered  by Lender to its  customers,
         subject to the rights of Lender and Borrower to then negotiate  special
         terms and also to  provide  for the  length of the  forward  contracts.
         (Lender initially intends not to enter into Foreign Exchange  Contracts
         having  terms  longer than 12  months).  Lender  reserves  the right to
         require, in connection with such forward contracts or any other variety
         of Foreign Exchange Contract between Lender and Borrower, that delivery
         of foreign  currencies  to the party  specified by  Borrower,  shall be
         conditioned  upon prior  deposit of the dollar  purchase  price of said
         foreign  currencies with Lender immediately before the time that Lender
         must wire or otherwise give instruction for foreign currency  delivery.
         The submission of a request for a Foreign Exchange  Contract shall also
         be deemed to  constitute a  reaffirmation  of the  representations  and
         warranties which are set forth hereunder.

     The availability of all Foreign  Exchange  Contracts will be subject to the
condition of payment by Borrower of the fees, charges and contract amounts which
are  required as a condition  precedent by Lender for such  contracts,  provided
that  Lender  agrees  that such  fees  charges  and  contract  amounts  shall be
reasonably  related to such fees generally charged by Lender or charged by other
offerors of such contracts.

     The obligations of Lender hereunder,  are specifically conditioned upon the
Lender having normal access to foreign  exchange  markets and to facilities  for
the purchase of foreign  currencies for its own account and the account of other
customers.

     1.4 Each facility shall be stated to mature on May 15, 1999.

     1.5 All payments  shall be made to Lender at the address  specified in this
         Agreement in lawful money of the United States of America. All payments
         received  by Lender  shall be applied  as  follows:  first,  toward the
         satisfaction of commitment fees,  origination fees, attorneys' fees and
         costs  incidental  thereto and to advances  made and costs and expenses
         incurred  by  Lender  or its agent to  enforce  Borrower's  Obligations
         hereunder  and  under  the  Loan  Documentation;   second,  toward  the
         reduction  of any  and  all  accrued  and  unpaid  interest,  including
         uncollected  late  charges;  third,  toward  the  reduction  of  unpaid
         principal;  and fourth,  to prepayment of  Obligations  which may arise
         from any outstanding letters of credit.

     1.6 To the extent of available credit under the L/C Facility, Lender hereby
         agrees to issue  letters of credit for the account of Borrower  payable
         to  parties  other than  Borrower  or its  affiliates,  upon such terms
         relating to draws and other  matters as are  consented to in writing by
         Lender.  The amount of all letters of credit  issued for the account of
         Borrower,  shall be deemed to be an advance under the Loan,  whether or
         not a draw on a letter of credit has been made.  Such letters of credit
         shall be issued only upon  proper  application  therefore,  in form and
         substance   satisfactory   to   Lender,    including   provisions   for
         reimbursement  of any draws on issued  letters of credit.  No letter of

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         credit shall be issued which has a termination date later than one year
         beyond the maturity date of the Loan.  Borrower  shall pay all normally
         charged application, origination and letter of credit fees with respect
         to each letter of credit,  in addition to the fees and interest charges
         otherwise   provided   under   this   Agreement   and  the  other  Loan
         Documentation.  Each application for a letter of credit shall be deemed
         to be a  reaffirmation  of all warranties and  representations  made in
         this  Agreement  and the other  Loan  Documentation  including  without
         limitation a warranty and  representation  that no event of default has
         occurred.

     Any  acceleration  of the Loan upon the  occurrence  of an event of default
shall be  treated  at  Lender's  option  as a draw of the  entire  amount of all
outstanding  letters  of  credit  so as  to  impose  an  immediate  and  present
obligation to pay over to Lender sums equal to all such amounts.  Thereafter, if
any outstanding  letter should expire undrawn,  Lender agrees,  to the extent of
actual prior payment not previously  paid out pursuant  hereto,  to pay the same
over the Borrower.

     1.7 In addition to this  Agreement,  the Notes and any  applicable  Foreign
         Exchange Contracts,  references to "Loan  Documentation"  shall include
         all  instruments,  trust deeds,  mortgages,  other  assignments,  other
         security  agreements,   other  pledge  agreements,   lien  instruments,
         guaranties,   subordinations,   financing  statements,   notices,  lien
         waivers,  certificates  (including  hazardous  waste  certificates  and
         indemnities),  certificates of title,  applications for certificates of
         title, environmental indemnities,  and all other documents set forth in
         or as otherwise  required by Lender as a condition to or in  connection
         with the Loan, whether now or hereafter executed.

     1.8 Any of the  following  persons is  authorized to make a written or oral
         request to Lender to advance funds under this Agreement:  Mark McBride,
         John Lamley, and Grant Schultz. Lender is under no obligation to verify
         the identify of an individual  representing  to be one of the foregoing
         persons.  Any advance made  pursuant to said written or oral request is
         irrebuttably  presumed to be made for Borrower's benefit.  Lender shall
         make  disbursements  on the  Loan to  Borrower  or for the  account  of
         Borrower unless Borrower directs otherwise in writing.

     1.9 The obligations,  indebtedness,  covenants and liabilities of Borrower,
         set forth or contemplated in the Loan  Documentation  shall be referred
         to as the "Obligations,"  including without limitation any indebtedness
         resulting from any overdraft on any account with Lender  (provided that
         nothing herein shall be a commitment by Lender to honor overdrafts).

     1.10Any and all fees,  costs and  expenses,  of  whatever  kind or  nature,
         including  but not limited to  attorneys'  fees,  incurred by Lender in
         connection  with this  Agreement  (whether or not a letter of credit is
         issued for the  Borrower  or a Foreign  Exchange  Contract  is written)
         shall be borne and paid by  Borrower  on demand by Lender  and until so
         paid  constitute  part of the  Obligations of Borrower and shall accrue
         interest at the Note rate or, if applicable at the default rate.

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<PAGE>

     SECTION 2.       CONDITIONS.

     2.1 Lender  shall not be  required  to issue  letters  of credit or foreign
         exchange  contracts  under  this  Agreement  unless  Lender  shall have
         received from Borrower the following:

         (a)  Current financial statements in such form as Lender may require;

         (b)  The fully executed Loan Documentation;

         (c) Corporate resolutions and documents evidencing the good standing of
         Borrower and the due and proper execution of the Loan  Documentation by
         authorized representatives; and

         (d) Such other  documentation and information that Lender or it counsel
         may request given the circumstances and terms of the Loan.


     2.2 Lender  shall  not be  required  to make any  advance  under  the Loan,
         including the issuance of any additional letters of credit or provide a
         foreign exchange contract if a default or an event of default under the
         Loan  Documentation  exists or if an event has  occurred  that with the
         passage of time would constitute such a default or event of default.

     3.   REPRESENTATIONS AND WARRANTIES OF BORROWER.

     To induce  Lender to make the Loan,  Borrower  warrants and  represents  as
follows:

         (1) Borrower is in good standing under,  and in full  compliance  with,
         all applicable laws, codes, rules and regulations under federal,  state
         and municipal  authority,  including without limitation the proper use,
         storage registration and disposal of any hazardous materials.

         (2)  Borrower  has full  power,  authority  and  capacity  to incur the
         indebtedness  described  herein and to execute the Loan  Documentation.
         The  person or  persons  executing  this  Agreement  and the other Loan
         Documentation on behalf of Borrower are a duly authorized to do so.

         (3) The Loan Documentation is in all respects legal, valid, and binding
         according  to its terms.  The  execution  and  performance  of the Loan
         Documentation will not violate any applicable law,  regulation,  order,
         judgment or decree,  partnership  agreement,  article of incorporation,
         bylaw,  article  of  organization,   operating  agreement,   indenture,
         contract or  agreement  that  purports to be binding on the Borrower or
         its assets,  and will not result in the creation of any  encumbrance on
         the   assets  of   Borrower   except  as   contemplated   by  the  Loan
         Documentation.

         (4) Any financial statements of Borrower heretofore delivered to Lender
         are true and correct in all respects.  The most recent statements given

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<PAGE>

         to Lender  accurately  represent  the current  financial  condition  of
         Borrower,  and,  since  the  date of  such  statements,  the  business,
         properties, assets, and liabilities of Borrower have not been adversely
         affected or changed in any material way.

         (5)  All  written  representations   previously  made  and  information
         previously  given by  Borrower  or  Borrower's  agents to Lender or its
         agents remain true and correct.

         (6) Borrower is not in default under any indebtedness, lease, contract,
         license,  undertaking, or other agreement which will affect the ability
         of Borrower to perform under any of the Loan Documentation.

         (7) There are no existing  actions,  suits,  or proceedings  pending or
         threatened  against  Borrower or relating to the business,  properties,
         and  assets  of  Borrower  that may  have an  adverse  effect  upon the
         financial  condition,  the business or the assets of  Borrower,  and no
         judgment,  order,  or  decree  has  been  rendered  which  has not been
         discharged,  satisfied,  or complied with other than those disclosed to
         lender in writing.

         (8) Borrower  has filed all federal and state income tax returns  which
         are required to be filed (except returns for which extensions have been
         properly filed) and has paid all taxes,  assessments  and  governmental
         charges or levies  imposed upon Borrower or upon  Borrower's  income or
         profits, or upon any property belonging to Borrower, to the extent that
         such  taxes and  assessments  have  become due  (except  such taxes and
         assessments  that are  being  contested  in good  faith by  appropriate
         proceedings  diligently  prosecuted  and that  have been  disclosed  to
         Lender in writing).

         (9) Borrower has good title to its assets, and including the properties
         and assets reflected in he most recent statements given to Lender.

     SECTION 4.       COVENANTS OF BORROWER.

     4.1 Borrower shall promptly  furnish  Lender,  during the term of the Loan,
         copies of such tax returns and  financial  reports  and  statements  as
         requested  by  Lender,  all  prepared  in a manner and form and at such
         times as are acceptable to Lender.  At a minimum Borrower shall provide
         to lender a CPA audited  annually  within one hundred twenty (120) days
         after the end of each fiscal year. Interim statements shall be provided
         quarterly,  forty-five  (45) days  after  the end of each such  interim
         period.  Upon  request,  Borrower  shall  provide to Lender a quarterly
         report  summarizing  the  Borrower's  activities  of that quarter and a
         certification that Borrower is in compliance with this Agreement.

     4.2 Borrower  shall promptly give notice to Lender of (a) the occurrence of
         any  default or event of default  under any of the Loan  Documentation;
         (b) any  litigation,  proceedings  or event  that  may have an  adverse
         effect  upon the  financial  condition,  the  business or the assets of
         Borrower;  (c)  any  dispute  between  Borrower  and  any  governmental
         regulatory  body or other  party  that may  interfere  with the  normal
         business  operation  of  Borrower  or  adversely  affect  the assets of
         Borrower;  and (d) any adverse  change in the  financial  condition  of
         Borrower.

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<PAGE>

     4.3  Borrower will:

         (a) duly observe and conform to all  requirements  of any  governmental
         authorities  relative  to the  conduct  of  Borrower's  business  or to
         Borrower's  properties  or assets,  including  without  limitation  the
         proper  use,  storage,  registration  and  disposal  of  any  hazardous
         materials;

         (b) maintain and keep in full force and effect all licenses and permits
         necessary to the property conduct of Borrower's business, including the
         continuance of Borrower's good standing; and

         (c) pay all  obligations and liabilities  when due,  including  without
         limitation all taxes,  assessments and  governmental  charges or levies
         imposed upon Borrower or upon Borrower's income or profits, or upon any
         property belonging to Borrower,  and maintain  appropriate reserves for
         the  accrual  of  the  same  in  accordance  with  generally   accepted
         accounting principles.

     4.4 Borrower  will keep proper books and records in which  fully,  true and
         correct entries (and in a manner  acceptable to Lender) will be made of
         all dealings or transactions relating to its business activities.

     4.5 Borrower  will  maintain,   with  financially   sound  and  responsible
         companies,  hazard  and  liability  insurance  in such form and in such
         amounts and against such risks as is  customarily  carried by companies
         engaged  in  the  assume  or  similar   business  and  operating   like
         properties.

     4.6 Borrower  will  permit  Lender or its agents to inspect  the  corporate
         books and  financial  records of Borrower  an to discuss  the  affairs,
         finances and assets of Borrower with Borrower,  all at such  reasonable
         items and as often as Lender may reasonably request.

     4.7 Borrower will not create or suffer to exist any lien or  encumbrance on
         any of the assets of  Borrower  except (1)  clients in favor of Lender;
         (2) liens for taxes or assessments  not yet payable;  (3) mechanic's or
         materialman's liens arising in the ordinary course of business that are
         not overdue;  (4) deposits or pledges to secure the payment of worker's
         compensation,  unemployment  or other social security  benefits,  or to
         secure the  performance  of bids,  tenders,  contracts  (other than for
         borrowed money), leases, public or statutory  obligations,  security or
         appeal bonds or other  obligations of a similar nature  incurred in the
         ordinary  course  of  business;  or  (5)  liens  to  which  Lender  has
         previously  consented  in  writing.  Borrower  shall  notify  Lender in
         writing  immediately  upon receipt of notice of the  imposition  of any
         lien,  levy,  attachment  or  execution  on the  business  or assets of
         Borrower.  Borrower  shall  cause  such  liens  or  other  process  not
         permitted  by this  Section  to be  satisfied  immediately.  Lender may
         discharge such unpermitted liens and encumbrances, and any such amounts
         shall  become  part of the  Obligations,  shall be  repaid to Lender on
         demand,  and shall accrue  interest as set forth as the default rate of
         interests hereinabove.

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<PAGE>

     4.8 Borrower will not guarantee, endorse or otherwise become surety for the
         obligations  of any other  person or entity  without the prior  written
         consent of Lender, except with respect to consumer-related  obligations
         and with respect to checks,  drafts and similar instruments for deposit
         or collection in the ordinary  course of Borrower's  business.  Without
         prior written consent of Lender,  Borrower agrees that it will not loan
         to or  provide  credit  accommodations  to  third  parties,  except  as
         associated with transactions in the ordinary course of business.

     4.9 Borrower  shall  immediately  notify Lender in writing of any change in
         the location of Borrower's  business or any change in Borrower's  name,
         any change in the key management or ownership of Borrower or any change
         in the agreements  affecting the structure of Borrower or the operation
         of its business.  Without the prior written consent of Lender, Borrower
         will not become  party to or involved in any merger,  consolidation  or
         change  of form or  structure  or other  like  change  or  acquisition.
         Borrower  shall not  redeem or  purchase  its own  stock.  Furthermore,
         Borrower shall not commingle its funds with any other entity.

     SECTION 5.   DEFAULT AND REMEDIES.

     5.1 The  occurrence  of any of the following  shall  constitute an event of
         default under this Agreement  (references to "Borrower" in this Section
         5.1 shall include each other party to the Loan Documentation):

         (a)  Failure to pay when due any principal or interest or other
         monetary indebtedness under the Obligations;

         (b) Any  representation  or  warranty  made  by  Borrower  in the  Loan
         Documentation or in connection with any borrowing hereunder,  or in any
         certificate,  financial  statement  or  other  statement  furnished  by
         Borrower  pursuant  hereto is untrue  in any  respect  at the time when
         made;

         (c) Failure of Borrower to observe or perform any of the  covenants  or
         agreements contained in the Loan Documentation;

         (d) Any material  provisions  of the Loan  Documentation  shall for any
         reason cease to be in full force and effect;

         (e) Borrower  shall default on any other  obligation  owed to Lender or
other Lender;

         (f) Filing by or against  Borrower of a petition in  bankruptcy  or for
         any other relief under the  Bankruptcy  Code, as amended,  or under any
         other  insolvency  act or  law,  state  or  federal,  now or  hereafter
         existing,  or any action by Borrower indicating  Borrower's consent to,
         approval of, or acquiescence  in, any such petition or proceeding;  the
         application by Borrower,  or the consent or acquiescence of Borrower to
         the  appointment  of a receiver or trustee for Borrower or for all or a

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<PAGE>

         substantial part of Borrower's  property;  the making by Borrower of an
         assignment  for the  benefit  of  creditors  under  state  law;  or the
         admission  of  Borrower  in  writing  of  Borrower's  inability  to pay
         Borrower's debts as they mature;

         (g) The  involuntary  appointment of a receiver or trustee for Borrower
         or  for  all or a  substantial  part  of  Borrower's  property;  or the
         issuance  of a warrant of  attachment,  execution  or  similar  process
         against any substantial part of the property of Borrower;

         (h) All of any  substantial  part of the property of Borrower  shall be
         sold, assigned, transferred, or shall be condemned, seized or otherwise
         appropriated,  or custody or control of such property  shall be assumed
         by any  governmental  agency or any court of competent  jurisdiction at
         the instance of any governmental agency;

         (i) The occurrence of any adverse change in the financial  condition of
         Borrower or the status of the Collateral deemed material by Lender;

         (j) Lender deems itself insecure.

         5.2  If any of the events set forth in Section 5.1 occurs:

         (a) Lender may (i) terminate any obligation to issue further letters of
         credit or  further  Foreign  Exchange  Contracts  under the Loan;  (ii)
         declare the entire Obligations  outstanding hereunder to be immediately
         due and  payable,  whereupon  the amount of any  outstanding  letter of
         credit, or the principal amount of any draw under any letter of credit,
         together with accrued interest  thereon,  shall become  immediately due
         and payable without presentment, demand, protest or other notice of any
         kind,  all of which are hereby  expressly  waived,  anything  contained
         herein or in the Note to the  contrary  notwithstanding;  and/or  (iii)
         proceed to enforce any of its  remedies  under the Loan  Documentation,
         including this Agreement.

         (b) All demands and  presentments  of any kind or nature are  expressly
         waived by  Borrower.  Borrower  waives the right to  require  Lender to
         pursue any other  remedy for the  benefit of  Borrower  and agrees that
         Lender may proceed  against  Borrower for the amount of the Obligations
         owed by Borrower to Lender  without taking any action against any other
         party.  Borrower  authorizes Lender, at its option, to apply toward the
         payment of the  obligations  all balances of any deposit account in the
         name of Borrower held by Lender.

         (c) Lender may  proceed to enforce any of its  remedies  under the Loan
         Documentation, including this Agreement, or provided by law.

No remedy given to Lender in the Loan  Documentation is intended to be exclusive
of any other available remedy or remedies,  but each and every such remedy shall
be cumulative  and shall be in addition to any other remedy given under the Loan
Documentation or now or hereafter existing at law or in equity or by statutes.

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<PAGE>

     5.3 The Borrower agrees to cooperate with Lender in  effectuating  Lender's
right notwithstanding any unanticipated inability of Borrower to pay the Loan or
otherwise perform the Obligations.

     SECTION 6.   MISCELLANEOUS.

     6.1 Time is of the  essence of this  Agreement.  No issuance of a letter of
         credit or a Foreign Exchange Contract under the Loan shall constitute a
         waiver of any of the conditions to Lender's  obligation to make further
         advances,  nor,  in the event  Borrower  is unable to satisfy  any such
         condition,  shall any failure on Lender's part to  immediately  enforce
         its  remedies  have the effect of  precluding  Lender  from  thereafter
         declaring  such  inability  to  be  an  event  of  default  under  this
         Agreement.  No failure or delay on the part of Lender in exercising any
         right,  power or privilege  hereunder  or under the Loan  Documentation
         shall  operate  as a waiver  thereof,  nor shall any  single or partial
         exercise  of any right,  power or  privilege  hereunder  or  thereunder
         preclude any other or further  exercise  thereof or the exercise of any
         other right,  power or privilege.  The consent or approval by Lender to
         or of any act by Borrower  requiring  further consent or approval shall
         not be deemed to waive or render unnecessary the consent or approval to
         or of any subsequent  act. The rights and remedies  herein provided are
         cumulative and not exclusive of any rights or remedies provided by law.

     6.2 Borrower  shall  pay  all  attorneys'  fees,   paralegal  fees,  costs,
         including  without  limitation costs and expenses incurred by Lender in
         the   enforcement   of  its  rights   hereunder   and  the  other  Loan
         Documentation,  whether  any default is  ultimately  cured or Lender is
         obligated to pursue its remedies  hereunder,  including  such  expenses
         incurred  before  legal  action,  during the pendency of any such legal
         action,  during the enforcement of Lender's rights in any bankruptcy or
         insolvency  proceedings,   and  continuing  to  all  such  expenses  in
         connection  with any  appeal to higher  courts  arising  out of matters
         associated herewith.  Until so paid, all such fees, costs, and expenses
         shall  constitute  part of the obligations of Borrower and shall accrue
         interest at the default rate.

     6.3 Borrower  hereby  agrees to indemnify  and hold  harmless  Lender,  its
         directors,  officers and employees from any and all liability, expense,
         costs, charges or assessments,  including attorneys' fees and expenses,
         whether  incurred or imposed  pursuant to local,  state or federal law.
         Borrower  also  agrees  to  indemnify  and hold  harmless  Lender,  its
         directors,  officers  and  employees  from  and  against  any  and  all
         liability,  expense,  damage, demands,  claims and lawsuits,  including
         attorneys'  fees and  expenses,  arising out of this  Agreement  or the
         other Loan  Documentation  or in connection  therewith,  unless arising
         from Lender's willful misconduct.

     6.4 In addition to this  Agreement and the other Loan  Documentation,  this
         finance   transaction  may  include  closing   documentation   such  as
         resolutions, waivers, notices, acknowledgments,  statements, closing or
         escrow instructions,  loan purpose statements, and other documents that
         Lender  may  customarily  use  in  closing  such   transactions.   Such
         additional  documents are  incorporated  herein by this reference.  The
         Loan  Documentation  and the closing  documents  to which this  Section
         refers,  as  applicable,  express,  embody and  supersede  any previous

                                       9
<PAGE>

         understandings,  agreements or promises  (whether oral or written) with
         respect to this finance  transaction,  and said documents represent the
         final  expression of the  agreement  between  Lender and Borrower,  the
         terms and conditions of which cannot  hereafter be  contradicted by any
         oral  understanding  not reduced to writing and identified  above. This
         Section shall govern in the event it is  inconsistent  with any similar
         provision in any other Loan Documentation.

     6.5 Any notice required by any Loan  Documentation will be deemed effective
         if  personally  delivered  to the party to which notice is being given,
         or, in the alternative,  on the date such notice is placed, first-class
         mail, in the U.S. Mail  addressed to the party to which notice is being
         given,  at such  address as is set forth  below.  In the event  another
         agreement  constituting  part of the Loan  Documentation  sets  forth a
         notice  procedure,  such  procedure  shall  govern for purposes of that
         document and thus supersede the terms of this Section if inconsistent.

     6.6 All  representations and warranties made in this Agreement and the Note
         and in any  certificates  delivered  pursuant  hereto and thereto shall
         survive the execution and delivery of this  Agreement and the making of
         the  Loan  hereunder  and  shall  survive  payment  of the  Loan.  This
         Agreement  shall be binding  upon and inure to the  benefit of Borrower
         and Lender and their respective successors and assigns, except that the
         Borrower  may not assign or transfer  its right  hereunder  without the
         written  consent of Lender.  It is understood  that Lender may sell the
         Loan and its interests  under the Loan  Documentation  without the need
         for Borrower's  consent and may procure other Lenders to participate in
         the Loan, and Lender may issue participation certificates to such other
         Lenders.

     6.7 Borrower  agrees to execute any other  documentation  and provide  such
         other information and  documentation as Lender may reasonably  require.
         Any provision of this Agreement or any other  constituents  of the Loan
         Documentation,  which  may be found  to be  invalid,  shall  be  deemed
         separable and shall not invalidate the remainder of the provisions.  No
         third  party  shall,  under  any  circumstances,  be  deemed  to  be  a
         beneficiary  under the Loan  Documentation  or any  condition set forth
         therein.  Nothing in the Loan Documentation  shall create a partnership
         or joint venture between Lender and Borrower.

     6.8 This  Agreement  may be signed in any number of  counterparts,  each of
         which shall be deemed an original, and such counterparts together shall
         constitute  one and the same  instrument.  This Agreement and the other
         Loan Documentation  shall be governed by, and construed and interpreted
         in accordance with, the laws of the State of Utah. If Borrower is not a
         resident  of  the  State  of  Utah,  Borrower  hereby  consents  to the
         jurisdiction  of the  courts  of the  State  of  Utah to  enforce  this
         Agreement and the other Loan Documentation.

     6.9 The  obligations of Borrower (if there is more than one Borrower) under
         the Loan Documentation, including warranties and representations, shall
         be joint and several.

                                       10
<PAGE>

          DATED this 9th day of March, 1998.

                                    BORROWER:

                     Evans & Sutherland Computer Corporation

                                    By:/S/ JOHN LEMLEY
                                    Its:CHIEF FINANCIAL OFFICER
                                    Address:600 Komas Drive
                                            P.O. Box 58700
                                            Salt Lake City, Utah  84158

                                    LENDER:

                                    First Security Bank, N.A.

                                    By:/S/ TROY AKAGI
                                    Its:VICE PRESIDENT
                                    Address:15 East 100 South, 2nd Floor
                                            Salt Lake City, Utah  84111