Document:

EXHIBIT
10.13

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is
made and entered into as of the 26th day of August, 2002, by and between EVANS
& SUTHERLAND COMPUTER CORPORATION, a Utah corporation (the “Company”)
and David H. Bateman (the “Executive”).

W I T N E S S E T H:

WHEREAS, the Executive has been providing services to
the Company in an executive capacity and desires to continue to provide such
services;

WHEREAS, the Company desires to have the benefit of
the Executive’s efforts and services;

WHEREAS, the Company and Executive desire to terminate
all prior employment agreements with the Company, if any; and

WHEREAS, the Company has determined that it is
appropriate and in the best interests of the Company to provide to the
Executive protection in the event of certain terminations of the Executive’s
employment relationship with the Company in accordance with the terms and
conditions contained herein and the Executive desires to have such protection.

NOW, THEREFORE, in consideration of the foregoing and
of the mutual covenants and agreements hereinafter set forth, the Company and
the Executive hereto mutually covenant and agree as follows:

1.             DEFINITIONS.

Whenever used in this Agreement, the following terms
shall have the meanings set forth below:

(a)           “Accrued Benefits”
shall mean the amount equal to the sum of the following to the extent not
previously paid:

(i)            All salary earned or
accrued through the Termination Date;

(ii)           Reimbursement pursuant
to Section 6(d) for any and all monies advanced in connection with the
Executive’s employment for reasonable and necessary expenses incurred by the
Executive through the Termination Date;

(iii)          Any and all other cash
benefits of deferred compensation plans previously earned through the Termination
Date unless deferred at the election of

the Executive for payment
at another time or the applicable deferred compensation plan provides for
payment at another time;

(iv)          The full amount of any
bonus earned in a prior period and payable to the Executive in accordance with
Section 6(b) herein, subject to the limitations in Section 10 and Section 12;
and

(v)           All
other payments and benefits to which the Executive may be entitled under the
terms of any benefit plan of the Company, which as of the Termination Date, is
applicable to all regular full-time employees of the Company generally.

(b)           “Act” shall mean
the Securities Exchange Act of 1934;

(c)           “Affiliate”
shall have the same meaning as given to that term in Rule 12b-2 of Regulation
12B promulgated under the Act;

(d)           “Base Period Income”
shall be an amount equal to the Executive’s “annualized includable compensation”
for the “base period” as defined in Sections 280G(d)(1) and (2) of the Code and
the regulations adopted thereunder;

(e)           “Beneficial Owner”
shall have the same meaning as given to that term in Rule 13d-3 of the Act,
provided that any pledgee of Company voting securities shall not be deemed to
be the Beneficial Owner thereof prior to its disposition of, or acquisition of
voting rights with respect to, such securities;

(f)            “Board” shall
mean the Board of Directors of the Company;

(g)           “Cause” shall
mean any of the following:

(i)            The engaging by the
Executive in fraudulent conduct, as evidenced by a determination in a binding
and final judgment, order or decree of a court or administrative agency of
competent jurisdiction, in effect after exhaustion or lapse of all rights of
appeal, in an action, suit or proceeding, whether civil, criminal,
administrative or investigative, which the Chief Executive Officer of the
Company determines, in his sole discretion, has a significant adverse impact on
the Company or on the performance of the Executive’s duties to the Company;

(ii)           Conviction of a felony,
as evidenced by a binding and final judgment, order or decree of a court of
competent jurisdiction, in effect after exhaustion or lapse of all rights of
appeal, which the Chief Executive Officer of the Company determines, in his
sole discretion, has a significant adverse impact on the Company or on the
performance of the Executive’s duties to the Company;

(iii)          Neglect or refusal by
the Executive to perform the Executive’s duties or responsibilities; or

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(iv)          A significant violation
by the Executive of the Company’s established policies and procedures;

Notwithstanding the foregoing, Cause shall not exist
under Sections 1(g)(iii) and (iv) herein unless the Company furnishes written
notice to the Executive of the specific offending conduct and the Executive
fails to correct such offending conduct within the thirty (30) day period
commencing on the receipt of such notice.

(h)           “Change of Control”
shall mean a change in ownership or managerial control of the stock, assets or
business of the Company resulting from one or more of the following
circumstances:

(i)            A change of control of
the Company, of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Act, or any
successor regulation of similar import, regardless of whether the Company is
subject to such reporting requirement;

(ii)           A change in ownership
of the Company through a transaction or series of transactions, such that any
Person or Persons (other than any current officer of the Company or member of
the Board) become(s), in the aggregate, the Beneficial Owner(s), directly or
indirectly, of securities of the Company representing thirty percent (30%) or
more of the Company’s then outstanding securities;

(iii)          Any consolidation or
merger of the Company in which the Company is not the continuing or surviving
corporation or pursuant to which shares of the common stock of the Company
would be converted into cash (other than cash attributable to dissenters’
rights), securities or other property provided by a Person or Persons other
than the Company, other than a consolidation or merger of the Company in which
the holders of the common stock of the Company immediately prior to the
consolidation or merger have approximately the same proportionate ownership of
common stock of the surviving corporation immediately after the consolidation
or merger;

(iv)          The shareholders of the
Company approve a sale, transfer, liquidation or other disposition of all or
substantially all of the assets of the Company to a Person or Persons;

(v)           During any period of
two (2) consecutive years, individuals who, at the beginning of such period,
constituted the Board of Directors of the Company cease, for any reason, to
constitute at least a majority thereof, unless the election or nomination for
election of each new director was approved by the vote of at least two-thirds
(2/3) of the directors then still in office who were directors at the beginning
of the period;

(vi)          The filing of a
proceeding under Chapter 7 of the Federal Bankruptcy Code (or any successor or
other statute of similar import) for liquidation with respect to the Company;
or

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(vii)         The filing of a
proceeding under Chapter 11 of the Federal Bankruptcy Code (or any successor or
other statute of similar import) for reorganization with respect to the Company
if in connection with any such proceeding, this Agreement is rejected, or a
plan of reorganization is approved an element of which plan entails the
liquidation of all or substantially all the assets of the Company.

A “Change of Control” shall be deemed to occur on the
actual date on which any of the foregoing circumstances shall occur; provided,
however, that in connection with a “Change of Control” specified in Section
1(h)(vii), a “Change of Control” shall be deemed to occur on the date of the
filing of the relevant proceeding under Chapter 11 of the Federal Bankruptcy
Code (or any successor or other statute of similar import).  Notwithstanding the foregoing, a “Change of
Control” shall not include any transaction that constitutes a “Rule 13e-3
transaction” under Rule 13e-3 of the Act or an “issuer tender offer” under Rule
13e-4 of the Act.

(i)            “Change of Control
Period” shall mean the period commencing 180 days immediately prior to the
date a Change of Control is deemed to occur pursuant to Section 1(h), herein,
and ending on the second anniversary of such date;

(j)            “Code” shall
mean the Internal Revenue Code of 1986, as amended from time to time;

(k)           “Disability”
shall mean a physical or mental condition whereby the Executive is unable to
perform on a full-time basis the customary duties of the Executive under this
Agreement;

(l)            “Federal Short
Term-Rate” shall mean the rate defined in Section 1274(d)(1)(C)(i) of the
Code;

(m)          “Good Reason”
shall mean any of the following:

(i)            The required
relocation of the Executive, without the Executive’s consent, to an employment
location which is more than seventy-five (75) miles from the Executive’s
employment location on the day preceding the date of this Agreement; or

(ii)           Breach or violation of
any material provision of this Agreement by the Company, which is not remedied
within five business days following notice to the Company by the Executive.

(n)           “Good Reason During
a Change of Control” shall mean any of the following events occurring
during a Change of Control Period:

(i)            The required
relocation of the Executive, without the Executive’s consent, to an employment
location which is more than seventy-five (75) miles from the Executive’s
employment location on the day preceding the date of this Agreement;

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(ii)           The removal of the
Executive from or any failure to reelect the Executive to any of the positions
held by the Executive during the 180-day period immediately preceding the
Change of Control Period, except in the event that such removal or failure to
reelect relates to the termination by the Company of the Executive’s employment
for Cause or by reason of death, Disability or voluntary retirement;

(iii)          A significant adverse
change, without the Executive’s written consent, in the nature or scope of the
Executive’s authority, powers, functions, duties or responsibilities that
existed during the 180-day period immediately preceding the Change of Control
Period, or a material reduction in the level of support services, staff,
secretarial and other assistance, office space and accoutrements available to a
level below that which was provided to the Executive during the 180-day period
immediately preceding the Change of Control Period, and that which is necessary
to perform any duties assigned to the Executive during the 180-day period
immediately preceding the Change of Control Period; or

(iv)          Breach or violation of
any material provision of this Agreement by the Company, which is not remedied
within five business days following notice to the Company by the Executive;

(o)           “Gross
Income” shall mean the Executive’s current calendar year targeted
compensation under Sections 6(a)-(b) of this Agreement;

(p)           “Notice of
Termination” shall mean the notice described in Section 14 herein;

(q)           “Person” shall
mean any individual, partnership, joint venture, association, trust,
corporation or other entity, other than an employee benefit plan of the Company
or an entity organized, appointed or established pursuant to the terms of any
such benefit plan;

(r)            “Termination Date”
shall mean, except as otherwise provided in Section 14 herein,

(i)            The Executive’s date
of death;

(ii)           Thirty (30) days after
the delivery of the Notice of Termination terminating the Executive’s
employment on account of Disability pursuant to Section 9 herein, unless the
Executive returns on a full-time basis to the performance of his or her duties
prior to the expiration of such period;

(iii)          Thirty (30) days after
the delivery of the Notice of Termination if the Executive’s employment is
terminated by the Executive voluntarily;

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(iv)          Thirty (30) days after
the delivery of the Notice of Termination if the Executive’s employment is
terminated by the Company for any reason other than death or Disability; or

(v)           The date the Executive
is terminated for Cause.

(s)           “Termination Payment”
shall mean the payment described in Section 13 herein;

(t)            “Total Payments”
shall mean the sum of the Termination Payment and any other “payments in the
nature of compensation” (as defined in Section 280G of the Code and the
regulations adopted thereunder) to or for the benefit of the Executive, the
receipt of which is contingent on a Change of Control and to which Section 280G
of the Code applies.

2.             EMPLOYMENT.

The Company hereby agrees to employ the Executive and
the Executive hereby agrees to serve the Company, on the terms and conditions
set forth herein.

3.             TERM.

The employment of the Executive by the Company
pursuant to the provisions of this Agreement shall commence on the date hereof
and end on that date employment of the Executive is terminated pursuant to the
terms and conditions of either Section 8, 9, 10, 11 or 12, herein.

4.             POSITIONS
AND DUTIES.

The Executive shall serve as Vice President, Business
Operations of the Company and in such additional capacities as set forth in
Section 7 herein.  In connection with the
foregoing positions, the Executive shall have such duties, responsibilities and
authority as may from time to time be assigned to the Executive by the Chief
Executive Officer.  The Executive shall
devote substantially all the Executive’s working time and efforts to the
business and affairs of the Company.  The
Chief Executive Officer, in his or her sole discretion, may alter, modify, or
change the Executive’s duties, offices, positions, responsibilities and
obligations set forth in this Agreement at any time, consistent with the status
of a senior executive of the Company.

5.             PLACE
OF PERFORMANCE.

In connection with the Executive’s employment by the
Company, the Executive shall be based at the principal executive offices of the
Company in Salt Lake City, Utah except for required travel on Company business.

6.             COMPENSATION
AND RELATED MATTERS.

(a)           Salary.  The Company shall pay to the Executive an
annualized base salary at a rate of $150,045.00 in equal installments as nearly
as practicable on the Company’s regular payroll dates, in arrears.  Such annualized base salary may be

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increased from time to
time in accordance with normal business practices of the Company.  The annualized base salary of the Executive
shall not be decreased below its then existing amount during the term of this
Agreement;

(b)           MIP and MIP-Q.  Subject to the Company’s right to terminate
or amend, at any time with or without notice to the Executive, the Evans &
Sutherland Management Incentive Plan (MIP) and the Evans & Sutherland
Quarterly Management Incentive Plan (MIP-Q), the Executive shall be entitled to
participate in the Evans & Sutherland MIP and MIP-Q as agreed in writing in
a MIP and a MIP-Q document;

(c)           Executive
Savings Plan.  Subject to the Company’s
right to terminate or amend, at any time with or without notice to the
Executive, the Company’s Executive Savings Plan, the Executive shall be
entitled to participate in the Executive Savings Plan according to the terms
and conditions of the Executive Savings Plan.

(d)           Expenses.  The Executive shall be entitled to receive
prompt reimbursement for all reasonable expenses incurred by the Executive in
performing services hereunder, including all expenses for travel and living
expenses while away from home on business or at the request of and in the
service of the Company, provided that such expenses are incurred and accounted
for in accordance with the policies and procedures established by the Company
at the time incurred;

(e)           Other Benefits.  The Company shall provide the Executive with
all other benefits normally provided to an employee of the Company similarly
situated to the Executive, including being added as a named officer on the
Company’s existing directors’ and officers’ liability insurance policy;

(f)            Vacations.  The Executive shall be entitled to the number
of vacation days in each calendar year, and to compensation in respect of
earned but unused vacation days, determined in accordance with the Company’s
vacation plan as in effect from time to time. 
The Executive shall also be entitled to all paid holidays given by the
Company to its executives; and

(g)           Services Furnished.  The Company shall furnish the Executive with
office space, and such other facilities and services as shall be suitable to
the Executive’s position and adequate for the performance of the Executive’s
duties as set forth in Section 4 hereof.

7.             OFFICES.

The Executive agrees to serve without additional
compensation, if elected or appointed thereto, in one or more executive offices
of the Company, or any affiliate or subsidiary of the Company, or as a member
of the board of directors of any subsidiary or affiliate of the Company;
provided, however, that the Executive is indemnified for serving in any and all
such capacities on a basis no less favorable than is currently provided in the
Company’s bylaws, or otherwise.

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8.             TERMINATION AS A RESULT OF DEATH.

If the Executive shall die during the term of this
Agreement, the Executive’s employment shall terminate on the Executive’s date
of death and the Executive’s surviving spouse, or the Executive’s estate if the
Executive dies without a surviving spouse, shall be entitled to the Executive’s
Accrued Benefits as of the Termination Date and the applicable Termination
Payment.

9.             TERMINATION
FOR DISABILITY.

If, as a result of the Executive’s Disability, the
Executive shall have been unable to perform the Executive’s duties hereunder on
a full-time basis for four (4) consecutive months and within thirty (30) days
after the Company provides the Executive with a Termination Notice, the
Executive shall not have returned to the performance of the Executive’s duties
on a full-time basis, the Company may terminate the Executive’s employment,
subject to Section 14 herein.  During the
term of the Executive’s Disability prior to termination, the Executive shall
continue to receive all salary and other benefits payable under Section 6
herein, including participation in all employee benefit plans, programs and
arrangements in which the Executive was entitled to participate immediately
prior to the Disability; provided, however, that the Executive’s continued
participation is permitted under the terms and provisions of such plans,
programs and arrangements.  In the event
that the Executive’s participation in any such plan, program or arrangement is
barred as the result of such Disability, the Executive shall be entitled to
receive an amount equal to the contributions, payments, credits or allocations
which would have been paid by the Company to the Executive, to the Executive’s
account or on the Executive’s behalf under such plans, programs and
arrangements.  In the event the Executive’s
employment is terminated on account of the Executive’s Disability in accordance
with this Section 9, the Executive shall receive the Executive’s Accrued
Benefits as of the Termination Date and shall remain eligible for all benefits
provided by any long-term disability programs of the Company in effect at
the time of such termination.  The
Executive shall also be entitled to the Termination Payment described in
Section 13(a).

10.           TERMINATION
FOR CAUSE.

If the Executive’s employment with the Company is
terminated by the Company for Cause, subject to the procedures set forth in
Section 14 herein, the Executive shall be entitled to receive the Executive’s
Accrued Benefits as of the Termination Date, however, the Executive’s Accrued
Benefits will not include any amount for bonus under Section 1(a)(iv).  The Executive shall not be entitled to
receipt of any Termination Payment.

11.           OTHER
TERMINATION BY COMPANY.

If the Executive’s employment with the Company is
terminated by the Company other than by reason of death, Disability or Cause,
subject to the procedures set forth in Section 14 herein, the Executive (or in
the event of the Executive’s death following the Termination Date, the
Executive’s surviving spouse or the Executive’s estate if the Executive dies
without a surviving spouse) shall receive the Executive’s Accrued Benefits and
the applicable Termination Payment.  The
Executive shall not, in connection with any consideration receivable in

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accordance with this
Section 11, be required to mitigate the amount of such consideration by
securing other employment or otherwise and such consideration shall not be
reduced by reason of the Executive securing other employment or for any other
reason.

12.           VOLUNTARY
TERMINATION BY EXECUTIVE.

From and after the date of this Agreement, provided
that the Executive furnishes thirty (30) days prior written notice to the
Company, the Executive shall have the right to voluntarily terminate this
Agreement at any time.  If the Executive’s
voluntary termination is without Good Reason or without Good Reason During a
Change of Control, the Executive shall receive the Executive’s Accrued Benefits
as of the Termination Date and shall not be entitled to any Termination
Payment, however, the Executive’s Accrued Benefits will not include any amount
for bonus under Section 1(a)(iv).  If the
Executive’s voluntary termination is for Good Reason or Good Reason During a
Change of Control, the Executive (or in the event of the Executive’s death
following the Termination Date, the Executive’s surviving spouse or the
Executive’s estate if the Executive dies without a surviving spouse) shall
receive the Executive’s Accrued Benefits and the applicable Termination
Payment.  The Executive shall not, in
connection with any consideration receivable in accordance with this Section
12, be required to mitigate the amount of such consideration by securing other
employment or otherwise and such consideration shall not be reduced by reason
of the Executive securing other employment or for any other reason.

13.           TERMINATION
PAYMENT.

(a)           If the Executive’s
employment is terminated as a result of death or Disability, the Executive
shall receive a Termination Payment equal to one (1.0) times the Executive’s
Gross Income.  The Company will also pay
the full medical, dental and vision premiums for continuation coverage under
COBRA for the Executive and dependents who qualify for continuation coverage
under COBRA for one year following Termination Date.

(b)           If, prior to a Change
of Control Period, the Executive’s employment is terminated by the Executive
for Good Reason or by the Company for any reason other than death, Disability
or Cause, the Termination Payment payable to the Executive by the Company or an
affiliate of the Company shall be equal to one (1.0) times the Executive’s
Gross Income.  The Company will pay the
full medical, dental and vision premiums for continuation coverage under COBRA
for the Executive and dependents who qualify for continuation coverage under
COBRA for one year following the Termination Date.

(c)           If, during a Change of
Control Period, the Executive’s employment is terminated by the Executive for
Good Reason During a Change of Control or by the Company for any reason other
than death, Disability, or Cause, the Termination Payment payable to the
Executive by the Company or an affiliate of the Company shall be one (1.0)
times the Executive’s Gross Income.  The
Company will pay the full medical, dental and vision premiums for continuation
coverage under COBRA for the Executive and dependents who qualify for
continuation coverage under COBRA for one (1) year following the Termination
Date.

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(d)           It is the intention of
the Company and the Executive that the benefits under this Agreement shall be
capped such that no portion of the Termination Payment and any other “payments
in the nature of compensation” (as defined in Section 280G of the Code and the
regulations adopted thereunder) to or for the benefit of the Executive under
this Agreement, or under any other agreement, plan or arrangement, shall be
deemed to be an “excess parachute payment” as defined in Section 280G of the
Code.  It is agreed that the present
value of the Total Payments shall not exceed an amount equal to two and
ninety-nine hundredths (2.99) times the Executive’s Base Period Income, which
is the maximum amount which the Executive may receive without becoming subject
to the tax imposed by Section 4999 of the Code or which the Company may pay
without loss of deduction under Section 280G(a) of the Code.  Present value for purposes of this Agreement
shall be calculated in accordance with the regulations issued under Section
280G of the Code.  Within sixty (60) days
following delivery of the Notice of Termination or notice by the Company to the
Executive of its belief that there is a payment or benefit due the Executive
which will result in an excess parachute payment as defined in Section 280G of
the Code, the Executive and the Company shall, at the Company’s expense, obtain
such opinions as more fully described hereafter, which need not be unqualified,
of legal counsel and certified public accountants or a firm of recognized
executive compensation consultants.  The
Executive shall select said legal counsel, certified public accountants and
executive compensation consultants; provided, however, that if the Company does
not accept one (1) or more of the parties selected by the Executive, the
Company shall provide the Executive with the names of such legal counsel,
certified public accountants and/or executive compensation consultants as the
Company may select; provided, further, however, that if the Executive does not
accept the party or parties selected by the Company, the legal counsel,
certified public accountants and/or executive compensation consultants selected
by the Executive and the Company, respectively, shall select the legal counsel,
certified public accountants and/or executive compensation consultants, whichever
is applicable, who shall provide the opinions required by this Section
13(d).  The opinions required hereunder
shall set forth (a) the amount of the Base Period Income of the Executive, (b)
the present value of Total Payments and (c) the amount and present value of any
excess parachute payments.  In the event
that such opinions determine that there would be an excess parachute payment,
the Termination Payment or any other payment determined by such counsel to be
includable in Total Payments shall be reduced or eliminated as specified by the
Executive in writing delivered to the Company within thirty (30) days of his or
her receipt of such opinions or, if the Executive fails to so notify the
Company, then as the Company shall reasonably determine, so that under the
bases of calculation set forth in such opinions there will be no excess
parachute payment.  The provisions of
this Section 13(d), including the calculations, notices and opinions provided
for herein shall be based upon the conclusive presumption that the compensation
and other benefits, including but not limited to the Gross Income, earned on or
after the date of a Change of Control by the Executive pursuant to the Company’s
compensation programs if such payments would have been made in the future in
any event, even though the timing of such payment is triggered by the Change of
Control, are reasonable compensation for services rendered prior to the Change
of Control; provided, however, that in the event legal counsel so requests in
connection with the opinion required by this Section 13(d), a firm of
recognized

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executive compensation
consultants, selected by the Executive and the Company pursuant to the
procedures set forth above, shall provide an opinion, upon which such legal
counsel may rely, as to the reasonableness of any item of compensation as
reasonable compensation for services rendered prior to the Change of Control by
the Executive.  In the event that the
provisions of Sections 280G and 4999 of the Code are repealed without
succession, this Section 13(d) shall be of no further force or effect.

(e)           The Termination Payment
shall be payable as follows:

(i)            In the event the
Executive’s Termination Date is during a Change of Control Period, any
Termination Payment shall be paid to the Executive in a lump sum not later than
ten (10) days following the Executive’s Termination Date.  Such lump sum payment shall not be reduced by
any present value, interest rate, or similar factor.  Further, the Executive shall not be required
to mitigate the amount of such payment by securing other employment or
otherwise and such payment shall not be reduced by reason of the Executive
securing other employment or for any other reason.

(ii)           In the event the
Executive’s Termination Date is prior to or after a Change of Control Period,
any Termination Payment shall be paid to the Executive in equal installments on
the Company’s twenty-six (26) regular bi-weekly paydays over the twelve-month
period following the Termination Date. 
Such payments shall not be reduced or increased by any present value,
interest rate, or similar factor. 
Further, the Executive shall not be required to mitigate the amount of
such payment by securing other employment or otherwise and such payment shall not
be reduced by reason of the Executive securing other employment or for any
other reason.

(f)            Notwithstanding
anything to the contrary herein, in no event will a termination of Executive’s
employment with the Company be deemed to trigger a right to receive a
Termination Payment if the termination is effected by the mutual agreement of
the Company and Executive to accommodate a reassignment of Executive to an
entity created or acquired by the Company, or to which the Company has
contributed rights to technology, assets or business plans, if at the time of
such termination the Company owns or is acquiring a minimum of a 19% equity
interest in such entity.  In the event of
any such termination, the Executive shall only be entitled to receive the
Executive’s Accrued Benefits as of the Termination Date.

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14.           TERMINATION
NOTICE AND PROCEDURE.

Any termination by the Company or the Executive of the
Executive’s employment during the employment period shall be communicated by
written Notice of Termination (“Notice of Termination”) to the Executive, if
such Notice of Termination is delivered by the Company, and to the Company, if
such Notice of Termination is delivered by the Executive, all in accordance
with the following procedures:

(a)           The Notice of
Termination shall indicate the specific termination provision in this Agreement
relied upon and shall set forth in reasonable detail the facts and
circumstances alleged to provide a basis for termination;

(b)           Any Notice of
Termination by the Company shall be approved by a resolution duly adopted by a
majority of the Board, or a majority of the Board may delegate such authority
to approve any Notice of Termination to the Chief Executive Officer of the
Company;

(c)           If the Executive shall
in good faith furnish a Notice of Termination for Good Reason or for Good Reason
During a Change of Control and the Company notifies the Executive that a
dispute exists concerning the existence of Good Reason or Good Reason During a
Change of Control, within the fifteen (15) day period following the Company’s
receipt of such notice, the Executive shall continue the Executive’s employment
during such dispute.  If it is thereafter
determined that (i) Good Reason or Good Reason During a Change of Control did
exist, the Executive’s Termination Date shall be the earlier of (A) the date on
which the dispute is finally determined, either by mutual written agreement of
the parties or pursuant to Section 16, (B) the date of the Executive’s death or
(C) one day prior to the second (2nd) anniversary of a Change of Control, if
any, and the Executive’s Termination Payment, if applicable, shall reflect
events occurring after the Executive delivered the Executive’s Notice of
Termination; or (ii) Good Reason or Good Reason During a Change of Control
did not exist, the employment of the Executive shall continue after such
determination as if the Executive had not delivered the Notice of Termination
asserting Good Reason or Good Reason During a Change of Control; and

(d)           If the Executive gives
Notice of Termination of his or her employment for Good Reason or Good Reason
During a Change of Control and a dispute arises as to the existence of Good
Reason or Good Reason During a Change of Control, and the Executive does not
continue his employment during such dispute, and it is finally determined that
the reason for termination set forth in such Notice of Termination did not
exist, if such notice was delivered by the Executive, the Executive shall be
deemed to have voluntarily terminated the Executive’s employment other than for
Good Reason or Good Reason During a Change of Control.

15.           NON-COMPETE.

The Executive hereby agrees that during the term of
this Agreement and for the period of one year  from
the termination hereof, that the Executive will not:

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(a)           Within any jurisdiction
or marketing area in the United States in which the Company or any subsidiary
thereof is doing business, own, manage, operate or control any business of the
type and character engaged in and competitive with the Company or any
subsidiary thereof.  For purposes of this
Section 15, ownership of securities of not in excess of five percent (5%) of
any class of securities of a public company shall not be considered to be
competition with the Company or any subsidiary thereof; or

(b)           Within any jurisdiction
or marketing area in the United States in which the Company or any subsidiary
thereof is doing business, act as, or become employed as, an officer, director,
employee, consultant or agent of any business of the type and character engaged
in and competitive with the Company or any of its subsidiaries; or

(c)           Solicit any similar
business to that of the Company’s for, or sell any products that are in
competition with the Company’s products to, any company in the United States,
which is, as of the date hereof or through the Termination Date, a customer or
client of the Company or any of its subsidiaries, or was such a customer or
client thereof within two years prior to the Termination Date; or

(d)           Solicit the employment
of (i) any employee of the Company or its subsidiaries that is an employee at
anytime during this term of this Agreement or during the one year period
following the termination of this Agreement, or (ii) any former employee of the
Company or its subsidiaries who was employed by the Company or its subsidiaries
during the one (1) year period preceding the Termination Date.

For purposes of this Section 15, any business in the
3D visualization simulation market shall be deemed to be competitive with the
Company.

16.           REMEDIES
AND JURISDICTION.

(a)           The Executive hereby
acknowledges and agrees that a breach of the agreements contained in this
Agreement will cause irreparable harm and damage to the Company, that the
remedy at law for the breach or threatened breach of the agreements set forth
in this Agreement will be inadequate, and that, in addition to all other
remedies available to the Company for such breach or threatened breach
(including, without limitation, the right to recover damages), the Company
shall be entitled to injunctive relief for any breach or threatened breach of
the agreements contained in this Agreement. 
To enforce the provisions of this Section 16(a), the Company may seek
relief from any court with proper jurisdiction and the provisions of Section
16(b)-(d) shall not be applicable for purposes of this Section 16(a).

(b)           All claims, disputes
and other matters in question between the parties arising under this Agreement,
shall, unless otherwise provided herein, be decided by binding arbitration
before a single independent arbitrator selected pursuant to Section 16(d).  TO THE EXTENT ALLOWABLE UNDER APPLICABLE LAW,
ALL DISPUTES INVOLVING ALLEGED UNLAWFUL EMPLOYMENT DISCRIMINATION, BREACH OF
CONTRACT OR POLICY, OR EMPLOYMENT TORT COMMITTED BY THE COMPANY OR A
REPRESENTATIVE OF THE

 13
 

COMPANY, INCLUDING CLAIMS
OF VIOLATIONS OF FEDERAL OR STATE DISCRIMINATION STATUTES OR PUBLIC POLICY,
SHALL BE RESOLVED PURSUANT TO THIS POLICY AND THERE SHALL BE NO RECOURSE TO
COURT, WITH OR WITHOUT A JURY TRIAL.  The
arbitration hearing shall occur at a time and place convenient to the parties
in Salt Lake County, Utah, within thirty (30) days of selection or appointment
of the arbitrator.  If the Company has
adopted a policy that is applicable to arbitration with employees, the
arbitration shall be conducted in accordance with said policy to the extent
that the policy is consistent with this Agreement and the Federal Arbitration
Act, 9 U.S.C. §§ 1-16.  If no such
policy has been adopted, the arbitration shall be governed by the National
Rules for the Resolution of Employment Disputes of AAA in effect on the date of
the first notice of demand for arbitration. 
The arbitrator shall issue written findings of fact and conclusions of
law, and an award, within fifteen (15) days of the date of the hearing unless
the parties otherwise agree.

(c)           In cases of breach of
contract or policy, damages shall be limited to contract damages.  In cases of discrimination claims prohibited
by statute, the arbitrator may direct payment consistent with the applicable
statute.  Issues of procedure,
arbitrability, or confirmation of award shall be governed by the Federal
Arbitration Act, 9 U.S.C. §§ 1-16, except that court review of the
arbitrator’s award shall be that of an appellate court reviewing a decision of
a trial judge sitting without a jury.

(d)           The parties shall
select the arbitrator from a panel list made available by the AAA.  If the parties are unable to agree to an
arbitrator within ten (10) days of receipt of a demand for arbitration, the
arbitrator will be chosen by alternatively striking from a list of five (5)
arbitrators obtained by the Company from AAA. 
The Executive shall have the first strike.

17.           ATTORNEYS’ FEES.

In the event that either party hereunder institutes
any legal proceedings in connection with its rights or obligations under this
Agreement, each party in such proceeding shall be responsible for all of its
own costs incurred in connection with such proceeding, including attorneys’
fees and any other fees, expenses, or costs.

18.           SUCCESSORS.

This Agreement and all rights of the Executive shall
inure to the benefit of and be enforceable by the Executive’s personal or legal
representatives, estates, executors, administrators, heirs and
beneficiaries.  In the event of the
Executive’s death, all amounts payable to the Executive under this Agreement
shall be paid to the Executive’s surviving spouse, or the Executive’s estate if
the Executive dies without a surviving spouse. 
This Agreement shall inure to the benefit of, be binding upon and be
enforceable by, any successor, surviving or resulting corporation or other
entity to which all or substantially all of the business and assets of the
Company shall be transferred whether by merger, consolidation, transfer or
sale.

 14
 

19.           ENFORCEMENT.

The provisions of this Agreement shall be regarded as
divisible, and if any of said provisions or any part hereof are declared
invalid or unenforceable by a court of competent jurisdiction, the validity and
enforceability of the remainder of such provisions or parts hereof and the
applicability thereof shall not be affected thereby.

20.           AMENDMENT
OR TERMINATION.

This Agreement may not be amended or terminated during
its term, except by written instrument executed by the Company and the
Executive.

21.           SURVIVABILITY.

The provisions of Sections 15, 16, 17, 18 and 19 shall
survive termination of this Agreement.

22.           ENTIRE
AGREEMENT.

Except for the Confidentiality, Proprietary
Information, and Inventions Agreement between the Executive and the Company,
this Agreement sets forth the entire agreement between the Executive and the
Company with respect to the subject matter hereof, and supersedes all prior
oral or written agreements, negotiations, commitments and understandings with
respect thereto.  Prior
Employment Agreements between the Executive and the Company are hereby terminated
in their entirety and superceded by this Agreement.

23.           VENUE;
GOVERNING LAW.

This Agreement and the Executive’s and Company’s
respective rights and obligations hereunder shall be governed by and construed
in accordance with the laws of the State of Utah without giving effect to the
provisions, principles, or policies thereof relating to choice or conflicts of
laws.

24.           NOTICE.

All notices, requests, instructions or other documents to be given
under this Agreement shall be in writing and shall be deemed given (i) three
business days following sending by registered or certified mail, postage
prepaid, (ii) when sent if sent by facsimile; provided, however, that the
facsimile is promptly confirmed by telephone confirmation thereof, (iii) when
delivered, if delivered personally to the intended recipient, and (iv) one
business day following sending by overnight delivery via a national courier
service, and in each case, addressed to a party at the following address for
such party:

 15
 

 

	
   

  	
  Company:

  	
  Evans & Sutherland Computer Corporation

  
	
   

  	
   

  	
  600 Komas Drive

  
	
   

  	
   

  	
  Salt Lake City,
  Utah 84108

  
	
   

  	
   

  	
  Attn:  Vice President of Human Resources

  
	
   

  	
   

  	
  Fax:  (801) 588-4517

  
	
   

  	
   

  	
  Tel:  (801) 588-1609

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Executive:

  	
  David H. Bateman

  
	
   

  	
   

  	
  3404 W. Cedar
  Drive

  
	
   

  	
   

  	
  Park City, Utah
  84098

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Fax:  (      )
        -      

  
	
   

  	
   

  	
  Tel:  (435) 615-7324

  

 

or to such other address as the Company shall have
given to the Executive or, if to the Executive, to such address as the
Executive shall have given to the Company or facsimile number as the party to
whom notice is given may have previously furnished to the other in writing in
the manner set forth above.

25.           NO
WAIVER.

No waiver by either party at any time of any breach by
the other party of, or compliance with, any condition or provision of this
Agreement to be performed by the other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same time or any prior or
subsequent time.

26.           HEADINGS.

The headings herein contained are for reference only
and shall not affect the meaning or interpretation of any provision of this
Agreement.

27.           COUNTERPARTS.

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

 16
 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by its duly authorized officer, and the Executive has
executed this Agreement, on the date and year first above written.

	
   

  	
  “COMPANY”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EVANS &
  SUTHERLAND COMPUTER

  
	
   

  	
  CORPORATION, a Utah Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ James R.
  Oyler

  
	
   

  	
   

  	
   

  	
       James
  R. Oyler

  
	
   

  	
   

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “EXECUTIVE”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  /s/ David H. Bateman

  
	
   

  	
   

  	
   

  	
       David
  H. Bateman

  

 

 17Exhibit 10.24

CREDIT
AGREEMENT

THIS
CREDIT AGREEMENT (this “Agreement”) is entered into as of December 1, 2006 by
and between EVANS & SUTHERLAND COMPUTER CORPORATION, a Utah corporation (“Borrower”),
and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).

RECITALS

Borrower
has requested that Bank extend or continue credit to Borrower as described
below, and Bank has agreed to provide such credit to Borrower on the terms and
conditions contained herein.

NOW,
THEREFORE, for valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Bank and Borrower hereby agree as follows:

ARTICLE
I

CREDIT
TERMS

SECTION
1.1.        STANDBY
LETTER OF CREDIT A.

(a)           Standby
Letter of Credit A.  Bank has made or
cause an affiliate to issue a standby letter of credit for the account of
Borrower and for the benefit of Guangdong Provincial Machinery and Electric
Equipment Tendering Co. Guangzhou, China to finance a planetarium playback
system (the “Standby Letter of Credit A”) in the principal amount of Three
Hundred Twenty Eight Thousand Seven Hundred Fifty Dollars ($328,750.00).  The Standby Letter of Credit A has an
expiration date of March 31, 2007 and is subject to the additional terms of the
Letter of Credit agreement, application and any related documents required by
Bank in connection with the issuance thereof (the “Letter of Credit Agreement”).

(b)           Repayment of
Drafts.  Each drawing paid under the
Standby Letter of Credit A shall be repaid by Borrower in accordance with the
provisions of the Letter of Credit Agreement.

SECTION
1.2.        STANDBY
LETTER OF CREDIT B

(a)           Standby
Letter of Credit B.  Bank has made or
cause an affiliate to issue a standby letter of credit for the account of
Borrower and for the benefit of Nashik Municipal Corporation, Nashik, India to
finance the installation and commissioning of a multi channel digital
planetarium system with science center (the “Standby Letter of Credit B”) in
the principal amount of Twenty Thousand One Hundred Sixty Seven Dollars and
Seventy Five Cents ($20,167.75). The Standby Letter of Credit B has an
expiration date of September 30, 2007 and is subject to the additional terms of
the Letter of Credit agreement, application and any related documents required
by Bank in connection with the issuance thereof (the “Letter of Credit
Agreement”).

(b)           Repayment of
Drafts.  Each drawing paid under the
Standby Letter of Credit B shall be repaid by Borrower in accordance with the
provisions of the Letter of Credit Agreement.

SECTION
1.3.        STANDBY
LETTER OF CREDIT C.

(a)           Standby Letter
of Credit C.  Bank has made or cause an
affiliate to issue a standby letter of credit for the account of Borrower and
for the benefit

of
Gorakhpur Development Authority Uttah Praadesh, India to finance a contract
between Gorakhpur and Evans & Sutherland Computer Corporation (the “Standby
Letter of Credit C”) in the principal amount of One Hundred Fifty Thousand Five
Hundred Seventy Five Dollars ($150,575.00). The Standby Letter of Credit C has
an expiration date of December 1, 2007 and is subject to the additional terms
of the Letter of Credit agreement, application and any related documents
required by Bank in connection with the issuance thereof (the “Letter of Credit
Agreement”).

(b)           Repayment of
Drafts.  Each drawing paid under the
Standby Letter of Credit C shall be repaid by Borrower in accordance with the
provisions of the Letter of Credit Agreement.

SECTION
1.4.        FOREIGN
EXCHANGE FACILITY.

(a)           Foreign
Exchange Facility.  Subject to the terms
and conditions of this Agreement, Bank hereby agrees to make available to
Borrower a facility (the “Foreign Exchange Facility”) under which Bank, from
time to time up to and including December 1, 2007, will enter into foreign
exchange contracts for the account of Borrower for the purchase and/or sale by
Borrower in United States dollars of foreign currencies designated by Borrower;
provided however, that the maximum amount of all outstanding foreign exchange
contracts shall not at any time exceed an aggregate of Two Hundred Thousand
United States Dollars (US$200,000.00). 
No foreign exchange contract shall be executed for a term which extends
beyond December 1, 2007.  Borrower shall
have a “Delivery Limit” under the Foreign Exchange Facility not to exceed at
any time the aggregate principal amount of Six Thousand United States Dollars
(US$6,000.00), which Delivery Limit reflects the maximum principal amount of
Borrower’s foreign exchange contracts which may mature during any two (2) day
period.  All foreign exchange
transactions shall be subject to the additional terms of a Foreign Exchange
Agreement dated as of December 1, 2004  (“Foreign
Exchange Agreement”), all terms of which are incorporated herein by this
reference.

(b)           Settlement.  Each foreign exchange contract under the
Foreign Exchange Facility shall be settled on its maturity date by Bank’s debit
to any deposit account maintained by Borrower with Bank.”

SECTION
1.5.        INTEREST/FEES.

(a)           Interest. The
outstanding principal balance of each credit subject hereto shall bear
interest, and the amount of each drawing paid under the Standby Letter of
Credit shall bear interest from the date such drawing is paid to the date such
amount is fully repaid by Borrower, at the rate of interest set forth in each
promissory note or other instrument or document executed in connection
therewith.

(b)           Letter of
Credit Fees.  Borrower shall pay to Bank
(i) fees upon the issuance of each Performance Letter of Credit, as
determined by Bank, equal to one percent (1%) per annum (computed on the basis
of a 360-day year, actual days elapsed) of the face amount thereof, and
(ii) fees upon the issuance of each Financial Letter of Credit, as
determined by Bank, equal to one percent (1.5%) per annum (computed on the
basis of a 360-day year, actual days elapsed) of the face amount thereof, and
(iii) fees upon the payment or negotiation of each drawing under any
Letter of Credit and fees upon the occurrence of any other activity with
respect to any Letter of Credit (including without limitation, the transfer,
amendment or cancellation of any Letter of Credit) determined in

accordance
with Bank’s standard fees and charges then in effect for such activity.

SECTION
1.6.        COLLATERAL.

As
security for all indebtedness of Borrower to Bank subject hereto and arising
pursuant to any deposit or treasury management services provided by Bank to
Borrower, Borrower hereby grants to Bank security interests of first priority
in all Borrower’s interest in that certain money market savings account
#3801563101, over which Borrower shall have no control (the “Cash Collateral
Account”).  All of the foregoing shall be
evidenced by and subject to the terms of such security agreements, financing
statements, and other documents as Bank shall reasonably require, all in form
and substance satisfactory to Bank. 
Borrower shall reimburse Bank immediately upon demand for all costs and
expenses incurred by Bank in connection with any of the foregoing security.

The
balance in the Cash Collateral Account shall at all times be equal to or
greater than one hundred percent (100%) of the aggregate of (i) all issued and
outstanding, unpaid and unreimbursed Letters of Credit, plus (ii) such amounts
as Bank may determine, in its sole discretion, are required to adequately
secure Borrower’s liability and performance of any foreign exchange spot
contracts under the Foreign Exchange Facility and deposit and treasury
management services provided to Borrower by Bank.  In the event that the balance of the Cash
Collateral Account, for any reason and at any time, is less than the required
amount, Debtor shall, within five (5) Business Days after Bank gives Borrower
verbal or written notice of such deficiency, deposit additional monies into the
Cash Collateral Account in amounts sufficient to achieve the required amount.  As used herein, “Business Day” means any day
except a Saturday, Sunday or any other day on which commercial banks in Utah
are authorized or required by law to close.

All
of the foregoing shall be evidenced by and subject to the terms of such
security agreements, financing statements, deeds or mortgages, and other
documents as Bank shall reasonably require, all in form and substance
satisfactory to Bank.  Borrower shall pay
to Bank immediately upon demand the full amount of all charges, costs and
expenses (to include fees paid to third parties and all allocated costs of Bank
personnel), expended or incurred by Bank in connection with any of the
foregoing security, including without limitation, filing and recording fees and
costs of appraisals, audits and title insurance.

ARTICLE
II

REPRESENTATIONS
AND WARRANTIES

Borrower
makes the following representations and warranties to Bank, which
representations and warranties shall survive the execution of this Agreement
and shall continue in full force and effect until the full and final payment,
and satisfaction and discharge, of all obligations of Borrower to Bank subject
to this Agreement.

SECTION
2.1.        LEGAL
STATUS.  Borrower is a corporation duly
organized and existing and in good standing under the laws of Utah, and is
qualified or licensed to do business (and is in good standing as a foreign
corporation, if applicable) in all jurisdictions in which such qualification or
licensing is required or in which the failure to so qualify or to be so
licensed could have a material adverse effect on Borrower.

SECTION
2.2.        AUTHORIZATION
AND VALIDITY.  This Agreement and each
promissory note, contract, instrument and other document required hereby or at
any time hereafter delivered to Bank in connection herewith (collectively, the “Loan
Documents”) have been duly authorized, and upon their execution and delivery in
accordance with the provisions hereof will constitute legal, valid and binding
agreements and obligations of Borrower or the party which executes the same,
enforceable in accordance with their respective terms.

SECTION
2.3.        NO
VIOLATION.  The execution, delivery and
performance by Borrower of each of the Loan Documents do not violate any
provision of any law or regulation, or contravene any provision of the Articles
of Incorporation or By-Laws of Borrower, or result in any breach of or default
under any contract, obligation, indenture or other instrument to which Borrower
is a party or by which Borrower may be bound.

SECTION
2.4.        LITIGATION.  There are no pending, or to the best of
Borrower’s knowledge threatened, actions, claims, investigations, suits or
proceedings by or before any governmental authority, arbitrator, court or
administrative agency which could have a material adverse effect on the
financial condition or operation of Borrower other than those disclosed by
Borrower to Bank in writing prior to the date hereof.

SECTION
2.5.        CORRECTNESS
OF FINANCIAL STATEMENT.  The annual
financial statement of Borrower dated December 31, 2005, and all interim
financial statements delivered to Bank since said date, true copies of which
have been delivered by Borrower to Bank prior to the date hereof, (a) are
complete and correct and present fairly the financial condition of Borrower,
(b) disclose all liabilities of Borrower that are required to be reflected or
reserved against under generally accepted accounting principles, whether
liquidated or unliquidated, fixed or contingent, and (c) have been prepared in
accordance with generally accepted accounting principles consistently applied.  Since the dates of such financial statements
there has been no material adverse change in the financial condition of
Borrower, nor has Borrower mortgaged, pledged, granted a security interest in
or otherwise encumbered any of its assets or properties except in favor of Bank
or as otherwise permitted by Bank in writing.

SECTION
2.6.        INCOME TAX
RETURNS.  Borrower has no knowledge of
any pending assessments or adjustments of its income tax payable with respect
to any year.

SECTION
2.7.        NO
SUBORDINATION.  There is no agreement,
indenture, contract or instrument to which Borrower is a party or by which
Borrower may be bound that requires the subordination in right of payment of
any of Borrower’s obligations subject to this Agreement to any other obligation
of Borrower.

SECTION
2.8.        PERMITS,
FRANCHISES.  Borrower possesses, and will
hereafter possess, all permits, consents, approvals, franchises and licenses
required and rights to all trademarks, trade names, patents, and fictitious
names, if any, necessary to enable it to conduct the business in which it is
now engaged in compliance with applicable law.

SECTION
2.9.        ERISA.  Borrower is in compliance in all material
respects with all applicable provisions of the Employee Retirement Income
Security Act of 1974, as amended or recodified from time to time (“ERISA”);
Borrower has not violated any provision of any defined employee pension benefit
plan (as defined in ERISA) maintained or contributed to by Borrower (each, a

“Plan”);
no Reportable Event as defined in ERISA has occurred and is continuing with
respect to any Plan initiated by Borrower; Borrower has met its minimum funding
requirements under ERISA with respect to each Plan; and each Plan will be able
to fulfill its benefit obligations as they come due in accordance with the Plan
documents and under generally accepted accounting principles.

SECTION
2.10.      OTHER OBLIGATIONS.  Borrower is not in default on any obligation
for borrowed money, any purchase money obligation or any other material lease,
commitment, contract, instrument or obligation.

SECTION
2.11.      ENVIRONMENTAL MATTERS.  Except as disclosed by Borrower to Bank in
writing prior to the date hereof, Borrower is in compliance in all material
respects with all applicable federal or state environmental, hazardous waste,
health and safety statutes, and any rules or regulations adopted pursuant
thereto, which govern or affect any of Borrower’s operations and/or properties,
including without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, the Superfund Amendments and
Reauthorization Act of 1986, the Federal Resource Conservation and Recovery Act
of 1976, and the Federal Toxic Substances Control Act, as any of the same may
be amended, modified or supplemented from time to time.  None of the operations of Borrower is the
subject of any federal or state investigation evaluating whether any remedial
action involving a material expenditure is needed to respond to a release of
any toxic or hazardous waste or substance into the environment.  Borrower has no material contingent liability
in connection with any release of any toxic or hazardous waste or substance
into the environment.

ARTICLE
III

CONDITIONS

SECTION
3.1.        CONDITIONS
OF INITIAL EXTENSION OF CREDIT.  The
obligation of Bank to extend any credit contemplated by this Agreement is
subject to the fulfillment to Bank’s satisfaction of all of the following
conditions:

(a)           Approval of
Bank Counsel.  All legal matters
incidental to the extension of credit by Bank shall be satisfactory to Bank’s
counsel.

(b)           Documentation.  Bank shall have received, in form and
substance satisfactory to Bank, each of the following, duly executed:

(i) This Agreement and
each promissory note or other instrument or document required hereby.

(ii) Certificate of
Incumbency.

(iii) Corporate
Resolution: Borrowing.

(iv) S/A; Borrower:
Specific Rights to Payment.

(v)
Foreign Exchange Agreement.

(vi)          Such other
documents as Bank may require under any other Section of this Agreement.

(c)           Financial
Condition.  There shall have been no
material adverse change, as determined by Bank, in the financial condition or
business of Borrower, nor any material decline, as determined by Bank, in the
market value of any collateral required hereunder or a substantial or material
portion of the assets of Borrower.

(d)           Insurance.  Borrower shall have delivered to Bank
evidence of insurance coverage on all Borrower’s property, in form, substance,
amounts, covering risks and issued by companies satisfactory to Bank, and where
required by Bank, with loss payable endorsements in favor of Bank.

SECTION
3.2.        CONDITIONS
OF EACH EXTENSION OF CREDIT.  The
obligation of Bank to make each extension of credit requested by Borrower
hereunder shall be subject to the fulfillment to Bank’s satisfaction of each of
the following conditions:

(a)           Compliance.  The representations and warranties contained
herein and in each of the other Loan Documents shall be true on and as of the
date of the signing of this Agreement and on the date of each extension of
credit by Bank pursuant hereto, with the same effect as though such
representations and warranties had been made on and as of each such date, and
on each such date, no Event of Default as defined herein, and no condition,
event or act which with the giving of notice or the passage of time or both
would constitute such an Event of Default, shall have occurred and be
continuing or shall exist.

(b)           Documentation.  Bank shall have received all additional
documents which may be required in connection with such extension of credit.

(c)           Additional
Letter of Credit Documentation.  Prior to
the issuance of each Letter of Credit, Bank shall  have received a Letter of Credit Agreement,
properly completed and duly executed by Borrower.

ARTICLE
IV

AFFIRMATIVE
COVENANTS

Borrower
covenants that so long as Bank remains committed to extend credit to Borrower
pursuant hereto, or any liabilities (whether direct or contingent, liquidated
or unliquidated) of Borrower to Bank under any of the Loan Documents remain
outstanding, and until payment in full of all obligations of Borrower subject
hereto, Borrower shall, unless Bank otherwise consents in writing:

SECTION
4.1.        PUNCTUAL
PAYMENTS.  Punctually pay all principal,
interest, fees or other liabilities due under any of the Loan Documents at the
times and place and in the manner specified therein.

SECTION
4.2.        ACCOUNTING
RECORDS.  Maintain adequate books and
records in accordance with generally accepted accounting principles
consistently applied, and permit any representative of Bank, at any reasonable
time, to inspect, audit and examine such books and records, to make copies of
the same, and to inspect the properties of Borrower.

SECTION
4.3.        FINANCIAL
STATEMENTS.  Provide to Bank all of the
following, in form and detail satisfactory to Bank:

(a)           not later
than 120 days after and as of the end of each fiscal year, an audited financial
statement of Borrower, prepared by a certified public accountant acceptable to
Bank, to include balance sheet, income statement and statement of cash flows;

(b)           not later
than 45 days after and as of the end of each quarter, a financial statement of
Borrower, prepared by Borrower, to include balance sheet and income statement;

(c)           from time to
time such other information as Bank may reasonably request.

SECTION
4.4.        COMPLIANCE.  Preserve and maintain all licenses, permits,
governmental approvals, rights, privileges and franchises necessary for the
conduct of its business; and comply with the provisions of all documents
pursuant to which Borrower is organized and/or which govern Borrower’s
continued existence and with the requirements of all laws, rules, regulations
and orders of any governmental authority applicable to Borrower and/or its
business.

SECTION
4.5.        INSURANCE.  Maintain and keep in force, for each business
in which Borrower is engaged, insurance of the types and in amounts customarily
carried in similar lines of business, including but not limited to fire,
extended coverage, public liability, flood, property damage and workers’
compensation, with all such insurance carried with companies and in amounts
satisfactory to Bank, and deliver to Bank from time to time at Bank’s request
schedules setting forth all insurance then in effect.

SECTION
4.6.        FACILITIES.  Keep all properties useful or necessary to
Borrower’s business in good repair and condition, and from time to time make
necessary repairs, renewals and replacements thereto so that such properties
shall be fully and efficiently preserved and maintained.

SECTION
4.7.        TAXES AND
OTHER LIABILITIES.  Pay and discharge
when due any and all indebtedness, obligations, assessments and taxes, both
real or personal, including without limitation federal and state income taxes
and state and local property taxes and assessments, except (a) such as Borrower
may in good faith contest or as to which a bona fide dispute may arise, and (b)
for which Borrower has made provision, to Bank’s satisfaction, for eventual
payment thereof in the event Borrower is obligated to make such payment.

SECTION
4.8.        LITIGATION.  Promptly give notice in writing to Bank of
any litigation pending or threatened against Borrower.

SECTION
4.9.        NOTICE TO
BANK.  Promptly (but in no event more
than five (5) days after the occurrence of each such event or matter) give
written notice to Bank in reasonable detail of: 
(a) the occurrence of any Event of Default, or any condition, event
or act which with the giving of notice or the passage of time or both would
constitute an Event of Default; (b) any change in the name or the
organizational structure of Borrower; (c) the occurrence and nature of any
Reportable Event or Prohibited Transaction, each as defined in ERISA, or any
funding deficiency with respect to any Plan; or (d) any termination or
cancellation of any insurance policy which Borrower is required to maintain, or
any uninsured or partially uninsured loss through liability or property damage,
or through fire, theft or any other cause affecting Borrower’s property.

ARTICLE
V

NEGATIVE
COVENANTS

Borrower
further covenants that so long as Bank remains committed to extend credit to
Borrower pursuant hereto, or any liabilities (whether direct or contingent,
liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents
remain outstanding, and until payment in full of all obligations of Borrower
subject hereto, Borrower will not without Bank’s prior written consent:

SECTION
5.1.        USE OF
FUNDS.  Use any of the proceeds of any
credit extended hereunder except for the purposes stated in Article I hereof.

SECTION
5.2.        OTHER
INDEBTEDNESS.  Create, incur, assume or
permit to exist any indebtedness or liabilities resulting from borrowings,
loans or advances, whether secured or unsecured, matured or unmatured,
liquidated or unliquidated, joint or several, except (a) the liabilities of
Borrower to Bank, and (b) any other liabilities of Borrower existing as
of, and disclosed to Bank prior to, the date hereof.

SECTION
5.3.        MERGER,
CONSOLIDATION, TRANSFER OF ASSETS.  Merge
into or consolidate with any other entity; make any substantial change in the
nature of Borrower’s business as conducted as of the date hereof; acquire all
or substantially all of the assets of any other entity; nor sell, lease,
transfer or otherwise dispose of all or a substantial or material portion of
Borrower’s assets except in the ordinary course of its business.

SECTION
5.4.        LOANS,
ADVANCES, INVESTMENTS.  Make any loans or
advances to or investments in any person or entity, except any of the foregoing
existing as of, and disclosed to Bank prior to, the date hereof.

ARTICLE
VI

EVENTS
OF DEFAULT

SECTION
6.1.        The
occurrence of any of the following shall constitute an “Event of Default” under
this Agreement:

(a)           Borrower
shall fail to pay when due any principal, interest, fees or other amounts
payable under any of the Loan Documents.

(b)           Any
financial statement or certificate furnished to Bank in connection with, or any
representation or warranty made by Borrower or any other party under this
Agreement or any other Loan Document shall prove to be incorrect, false or
misleading in any material respect when furnished or made.

(c)           Any default
in the performance of or compliance with any obligation, agreement or other
provision contained herein or in any other Loan Document (other than those
referred to in subsections (a) and (b) above), and with respect to any such
default which by its nature can be cured, such default shall continue for a
period of twenty (20) days from its occurrence.

(d)           Any default
in the payment or performance of any obligation, or any defined event of
default, under the terms of any contract or instrument (other than any of the
Loan Documents) pursuant to which Borrower, any guarantor hereunder or any
general partner or joint venturer in Borrower if a partnership or joint venture
(with each such guarantor, general partner and/or joint venturer referred to
herein as a “Third Party Obligor”) has incurred any debt or other liability to
any person or entity, including Bank.

(e)           The filing
of a notice of judgment lien against Borrower or any Third Party Obligor; or
the recording of any abstract of judgment against Borrower or any Third Party
Obligor in any county in which Borrower or such Third Party Obligor has an
interest in real property; or the service of a notice of levy and/or of a writ
of attachment or execution, or other like process,

against
the assets of Borrower or any Third Party Obligor; or the entry of a judgment
against Borrower or any Third Party Obligor.

(f)            Borrower or
any Third Party Obligor shall become insolvent, or shall suffer or consent to
or apply for the appointment of a receiver, trustee, custodian or liquidator of
itself or any of its property, or shall generally fail to pay its debts as they
become due, or shall make a general assignment for the benefit of creditors;
Borrower or any Third Party Obligor shall file a voluntary petition in
bankruptcy, or seeking reorganization, in order to effect a plan or other
arrangement with creditors or any other relief under the Bankruptcy Reform Act,
Title 11 of the United States Code, as amended or recodified from time to time
(“Bankruptcy Code”), or under any state or federal law granting relief to
debtors, whether now or hereafter in effect; or any involuntary petition or
proceeding pursuant to the Bankruptcy Code or any other applicable state or
federal law relating to bankruptcy, reorganization or other relief for debtors
is filed or commenced against Borrower or any Third Party Obligor, or Borrower
or any Third Party Obligor shall file an answer admitting the jurisdiction of
the court and the material allegations of any involuntary petition; or Borrower
or any Third Party Obligor shall be adjudicated a bankrupt, or an order for
relief shall be entered against Borrower or any Third Party Obligor by any
court of competent jurisdiction under the Bankruptcy Code or any other
applicable state or federal law relating to bankruptcy, reorganization or other
relief for debtors.

(g)           There shall
exist or occur any event or condition which Bank in good faith believes
impairs, or is substantially likely to impair, the prospect of payment or
performance by Borrower of its obligations under any of the Loan Documents.

(h)           The death or
incapacity of Borrower or any Third Party Obligor if an individual.  The dissolution or liquidation of Borrower or
any Third Party Obligor if a corporation, partnership, joint venture or other
type of entity; or Borrower or any such Third Party Obligor, or any of its
directors, stockholders or members, shall take action seeking to effect the
dissolution or liquidation of Borrower or such Third Party Obligor.

(i)            Any change
in ownership of an aggregate of twenty-five percent (25%) or more of the common
stock of Borrower.

SECTION
6.2.        REMEDIES.  Upon the occurrence of any Event of
Default:  (a) all indebtedness of
Borrower under each of the Loan Documents, any term thereof to the contrary
notwithstanding, shall at Bank’s option and without notice become immediately
due and payable without presentment, demand, protest or notice of dishonor, all
of which are hereby expressly waived by Borrower; (b) the obligation, if
any, of Bank to extend any further credit under any of the Loan Documents shall
immediately cease and terminate; and (c) Bank shall have all rights,
powers and remedies available under each of the Loan Documents, or accorded by
law, including without limitation the right to resort to any or all security
for any credit subject hereto and to exercise any or all of the rights of a
beneficiary or secured party pursuant to applicable law.  All rights, powers and remedies of Bank may
be exercised at any time by Bank and from time to time after the occurrence of
an Event of Default, are cumulative and not exclusive, and shall be in addition
to any other rights, powers or remedies provided by law or equity.

ARTICLE
VII

MISCELLANEOUS

SECTION
7.1.        NO WAIVER.  No delay, failure or discontinuance of Bank
in exercising any right, power or remedy under any of the Loan Documents shall
affect or operate as a waiver of such right, power or remedy; nor shall any
single or partial exercise of any such right, power or remedy preclude, waive
or otherwise affect any other or further exercise thereof or the exercise of
any other right, power or remedy.  Any
waiver, permit, consent or approval of any kind by Bank of any breach of or
default under any of the Loan Documents must be in writing and shall be
effective only to the extent set forth in such writing.

SECTION
7.2.        NOTICES.  All notices, requests and demands which any
party is required or may desire to give to any other party under any provision
of this Agreement must be in writing delivered to each party at the following
address:

BORROWER:        EVANS &
SUTHERLAND COMPUTER CORPORATION

600
Komas Drive, P.O. Box 58700

Salt
Lake City, Utah 84108

BANK:   WELLS FARGO
BANK, NATIONAL ASSOCIATION

Utah
RCBO

299
South Main, 9th Floor

Salt
Lake City, Utah 84111

or
to such other address as any party may designate by written notice to all other
parties.  Each such notice, request and
demand shall be deemed given or made as follows:  (a) if sent by hand delivery, upon
delivery; (b) if sent by mail, upon the earlier of the date of receipt or
three (3) days after deposit in the U.S. mail, first class and postage prepaid;
and (c) if sent by telecopy, upon receipt.

SECTION
7.3.        COSTS,
EXPENSES AND ATTORNEYS’ FEES.  Borrower
shall pay to Bank immediately upon demand the full amount of all payments,
advances, charges, costs and expenses, including reasonable attorneys’ fees (to
include outside counsel fees and all allocated costs of Bank’s in-house
counsel), expended or incurred by Bank in connection with (a) the
negotiation and preparation of this Agreement and the other Loan Documents,
Bank’s continued administration hereof and thereof, and the preparation of any
amendments and waivers hereto and thereto, (b) the enforcement of Bank’s
rights and/or the collection of any amounts which become due to Bank under any
of the Loan Documents, and (c) the prosecution or defense of any action in
any way related to any of the Loan Documents, including without limitation, any
action for declaratory relief, whether incurred at the trial or appellate
level, in an arbitration proceeding or otherwise, and including any of the
foregoing incurred in connection with any bankruptcy proceeding (including
without limitation, any adversary proceeding, contested matter or motion
brought by Bank or any other person) relating to Borrower or any other person
or entity.

SECTION
7.4.        SUCCESSORS,
ASSIGNMENT.  This Agreement shall be
binding upon and inure to the benefit of the heirs, executors, administrators,
legal representatives, successors and assigns of the parties; provided however,
that Borrower may not assign or transfer its interests or rights hereunder
without Bank’s prior written consent. 
Bank reserves the right to sell, assign, transfer, negotiate or grant
participations in all or any part of, or any interest in, Bank’s rights and
benefits under each of the Loan Documents. 
In connection therewith, Bank may disclose all documents and information
which Bank

now
has or may hereafter acquire relating to any credit subject hereto, Borrower or
its business, or any collateral required hereunder.

SECTION
7.5.        ENTIRE
AGREEMENT; AMENDMENT.  This Agreement and
the other Loan Documents constitute the entire agreement between Borrower and
Bank with respect to each credit subject hereto and supersede all prior
negotiations, communications, discussions and correspondence concerning the
subject matter hereof.  This Agreement
may be amended or modified only in writing signed by each party hereto.

SECTION
7.6.        NO THIRD
PARTY BENEFICIARIES.  This Agreement is
made and entered into for the sole protection and benefit of the parties hereto
and their respective permitted successors and assigns, and no other person or
entity shall be a third party beneficiary of, or have any direct or indirect
cause of action or claim in connection with, this Agreement or any other of the
Loan Documents to which it is not a party.

SECTION
7.7.        TIME.  Time is of the essence of each and every
provision of this Agreement and each other of the Loan Documents.

SECTION
7.8.        SEVERABILITY
OF PROVISIONS.  If any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity without invalidating the remainder of such provision or any
remaining provisions of this Agreement.

SECTION
7.9.        COUNTERPARTS.  This Agreement may be executed in any number
of counterparts, each of which when executed and delivered shall be deemed to
be an original, and all of which when taken together shall constitute one and
the same Agreement.

SECTION
7.10.      GOVERNING LAW.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Utah.

SECTION
7.11.      ARBITRATION.

(a)           Arbitration.  The parties hereto agree, upon demand by any
party, to submit to binding arbitration all claims, disputes and controversies
between or among them (and their respective employees, officers, directors,
attorneys, and other agents), whether in tort, contract or otherwise in any way
arising out of or relating to (i) any credit subject hereto, or any of the Loan
Documents, and their negotiation, execution, collateralization, administration,
repayment, modification, extension, substitution, formation, inducement,
enforcement, default or termination; or (ii) requests for additional credit.

(b)           Governing
Rules.  Any arbitration proceeding will
(i) proceed in a location in Utah selected by the American Arbitration
Association (“AAA”); (ii) be governed by the Federal Arbitration Act (Title 9 of
the United States Code), notwithstanding any conflicting choice of law
provision in any of the documents between the parties; and (iii) be conducted
by the AAA, or such other administrator as the parties shall mutually agree
upon, in accordance with the AAA’s commercial dispute resolution procedures,
unless the claim or counterclaim is at least $1,000,000.00 exclusive of claimed
interest, arbitration fees and costs in which case the arbitration shall be
conducted in accordance with the AAA’s optional procedures for large, complex
commercial disputes (the commercial dispute resolution procedures or the
optional procedures for large, complex commercial disputes to be referred to
herein, as applicable, as the “Rules”).

If
there is any inconsistency between the terms hereof and the Rules, the terms
and procedures set forth herein shall control. 
Any party who fails or refuses to submit to arbitration following a
demand by any other party shall bear all costs and expenses incurred by such
other party in compelling arbitration of any dispute.  Nothing contained herein shall be deemed to
be a waiver by any party that is a bank of the protections afforded to it under
12 U.S.C. §91 or any similar applicable state law.

(c)           No Waiver of
Provisional Remedies, Self-Help and Foreclosure.  The arbitration requirement does not limit
the right of any party to (i) foreclose against real or personal property
collateral; (ii) exercise self-help remedies relating to collateral or proceeds
of collateral such as setoff or repossession; or (iii) obtain provisional or
ancillary remedies such as replevin, injunctive relief, attachment or the
appointment of a receiver, before during or after the pendency of any
arbitration proceeding.  This exclusion
does not constitute a waiver of the right or obligation of any party to submit
any dispute to arbitration or reference hereunder, including those arising from
the exercise of the actions detailed in sections (i), (ii) and (iii) of this
paragraph.

(d)           Arbitrator
Qualifications and Powers.  Any
arbitration proceeding in which the amount in controversy is $5,000,000.00 or
less will be decided by a single arbitrator selected according to the Rules,
and who shall not render an award of greater than $5,000,000.00.  Any dispute in which the amount in
controversy exceeds $5,000,000.00 shall be decided by majority vote of a panel
of three arbitrators; provided however, that all three arbitrators must
actively participate in all hearings and deliberations.  The arbitrator will be a neutral attorney licensed
in the State of Utah or a neutral retired judge of the state or federal
judiciary of Utah, in either case with a minimum of ten years experience in the
substantive law applicable to the subject matter of the dispute to be
arbitrated.  The arbitrator will
determine whether or not an issue is arbitratable and will give effect to the
statutes of limitation in determining any claim.  In any arbitration proceeding the arbitrator
will decide (by documents only or with a hearing at the arbitrator’s discretion)
any pre-hearing motions which are similar to motions to dismiss for failure to
state a claim or motions for summary adjudication.  The arbitrator shall resolve all disputes in
accordance with the substantive law of Utah and may grant any remedy or relief
that a court of such state could order or grant within the scope hereof and
such ancillary relief as is necessary to make effective any award.  The arbitrator shall also have the power to
award recovery of all costs and fees, to impose sanctions and to take such
other action as the arbitrator deems necessary to the same extent a judge could
pursuant to the Federal Rules of Civil Procedure, the Utah Rules of Civil
Procedure or other applicable law. 
Judgment upon the award rendered by the arbitrator may be entered in any
court having jurisdiction.  The
institution and maintenance of an action for judicial relief or pursuit of a
provisional or ancillary remedy shall not constitute a waiver of the right of
any party, including the plaintiff, to submit the controversy or claim to
arbitration if any other party contests such action for judicial relief.

(e)           Discovery.  In any arbitration proceeding, discovery will
be permitted in accordance with the Rules. 
All discovery shall be expressly limited to matters directly relevant to
the dispute being arbitrated and must be completed no later than 20 days before
the hearing date.  Any requests for an
extension of the discovery periods, or any discovery disputes, will be subject to
final determination by the arbitrator upon a showing that the request for
discovery is essential for the party’s presentation and that no alternative
means for obtaining information is available.

(f)            Class
Proceedings and Consolidations.  No party
hereto shall be entitled to join or consolidate disputes by or against others
in any arbitration, except parties who have executed any Loan Document, or to
include in any arbitration any dispute as a representative or member of a
class, or to act in any arbitration in the interest of the general public or in
a private attorney general capacity.

(g)           Payment Of
Arbitration Costs And Fees.  The
arbitrator shall award all costs and expenses of the arbitration proceeding.

(h)           Real
Property Collateral; Judicial Reference. 
Notwithstanding anything herein to the contrary, no dispute shall be
submitted to arbitration if the dispute concerns indebtedness secured directly
or indirectly, in whole or in part, by any real property unless (i) the holder
of the mortgage, lien or security interest specifically elects in writing to
proceed with the arbitration, or (ii) all parties to the arbitration waive any
rights or benefits that might accrue to them by virtue of the single action
rule statute of Utah, thereby agreeing that all indebtedness and obligations of
the parties, and all mortgages, liens and security interests securing such
indebtedness and obligations, shall remain fully valid and enforceable.  If any such dispute is not submitted to
arbitration, the dispute shall be referred to a master in accordance with Utah
Rule of Civil Procedure 53, and this general reference agreement is intended to
be specifically enforceable.  A master
with the qualifications required herein for arbitrators shall be selected
pursuant to the AAA’s selection procedures. 
Judgment upon the decision rendered by a master shall be entered in the
court in which such proceeding was commenced in accordance with Utah Rule of
Civil Procedure 53(e).

(i)            Miscellaneous.  To the maximum extent practicable, the AAA,
the arbitrators and the parties shall take all action required to conclude any
arbitration proceeding within 180 days of the filing of the dispute with the
AAA.  No arbitrator or other party to an
arbitration proceeding may disclose the existence, content or results thereof,
except for disclosures of information by a party required in the ordinary
course of its business or by applicable law or regulation.  If more than one agreement for arbitration by
or between the parties potentially applies to a dispute, the arbitration
provision most directly related to the Loan Documents or the subject matter of
the dispute shall control.  This
arbitration provision shall survive termination, amendment or expiration of any
of the Loan Documents or any relationship between the parties.

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

	
  EVANS & SUTHERLAND
  COMPUTER

  	
   

  	
  WELLS FARGO BANK,

  
	
  CORPORATION

  	
   

  	
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Paul L.
  Dailey

  	
   

  	
   

  	
  By:

  	
  /s/ Gary Rigby

  	
   

  
	
  Title: Chief
  Financial Officer

  	
   

  	
  Gary Rigby, Relationship Manager

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