Document:

VIA FACSIMILE 801-588-4510

Evans & Sutherland Computer Corporation
600 Komas Drive
Salt Lake City, Utah 84108
Attn: Vice President/Treasurer

            Re:         Loan and  Security  Agreement  by and between  Evans and
                        Sutherland  Computer  Corporation  and Foothill  Capital
                        Corporation,  dated  as  of  December  14,  2000  ("Loan
                        Agreement")

Ladies and Gentlemen:

           Reference is made with respect to the default of the following
provision of the above-referenced Loan Agreement:

                     Section 6.17. Borrower has failed to maintain the Tangible
                     Net Worth on September 30, 2001 as called for therein.

           Foothill hereby waives the default for the September 30, 2001 test,
but reserves any and all rights to strictly enforce rights and remedies with
respect to any subsequent financial covenant default, or any other item of
default which may occur.

                                 Very truly yours,

                                 FOOTHILL CAPITAL CORPORATION

                                 By      /s/ Charles Kim
                                         -----------------------------------
                                            Charles Kim

cc:         Brian Cunningham,  Esq., Snell & Wilmer, 15 West South Temple, Suite
            1200, Salt Lake City, Utah 84101 (via fax 801-257-1800)MASTER SALES AGREEMENT

           Purchaser:           Evans & Sutherland Computer Corporation

           Address:             600 Komas Drive

                                Salt Lake City, Utah 84158 USA

This Master  Sales  Agreement  ("Agreement")  is made the as of August 27, 2001,
("Effective  Date") by and between ATI Technologies  Inc., acting on its own and
on  behalf  of its  subsidiaries,  a  corporation  with its  principal  place of
business  at 33 Commerce  Valley  Drive East,  Markham,  Ontario  Canada L3T 7N6
("ATI") and the Purchaser identified above.

            WHEREAS,  ATI desires to sell to Purchaser and Purchaser  desires to
purchase from ATI certain graphics, video and/or multimedia related controllers,
boards, and related software;

            NOW,  THEREFORE,   in  consideration  of  the  premises  and  mutual
covenants herein set forth, the parties, intending to be legally bound, agree as
follows:

1. Agreement to Purchase.  ATI agrees to sell the Products (as defined below) to
Purchaser,  and Purchaser agrees to purchase and accept delivery of the Products
from ATI, subject to the terms and conditions  described below.  Purchaser shall
have  the  right to use such  Products  for its own  purposes,  to  resell  such
Products  worldwide,  and to combine such  Products with its own products or its
suppliers or customers'  products for resale worldwide.  "Products" mean the ATI
hardware  products  identified in  Attachment 1 including  the related  Software
rights therein described in section 7 below.  During the term of this Agreement,
Attachment 1 may be modified to add or delete  products with the written consent
of both parties. ATI shall be free to fulfill its obligations  hereunder through
any of its affiliated companies.

2. Price.  The price for each Product  shall be as set out in  Attachment  1, as
amended in writing by the parties from time to time. Purchaser will also pay ATI
an  additional  Software  and  engineering  support  fee  of  US  $1,250,000  in
accordance with the payment schedule set out in Attachment 1.

3. Minimum  Purchase  Commitment.  Purchaser  agrees to purchase  from ATI a non
refundable minimum purchase commitment of US $2,000,000 of Product in accordance
with the Product  prices set forth in Attachment 1 during the first two years of
this Agreement (the "Minimum Commitment"). The Minimum Commitment amount will be
paid in accordance  with the payments  schedule set out in  ,Attachment 1. If at
the end of such: two-year period, Purchaser has not placed purchase orders equal
to this  Minimum  Commitment,  then:  at ATI's:  option:  (a) ATI will waive the
Minimum  Commitment  requirement;  or (b) deliver to Purchaser within sixty (60)
days from the end of the term of this  Agreement,  the number of chips  which is
equal to the difference  between the Minimum  Commitment and the number of chips
actually purchased by Purchaser (the `Commitment Deficiency").

4.  Non-exclusivity.  The  relationship  between  ATI and  Purchaser  under this
Agreement:  is  non-exclusive.  ATI may sell the Products or similar products to
other purchasers in such a form and under such terms as ATI may desire.

5. Proprietary  Rights.  Purchaser  acknowledges and agrees that ATI will retain
all (Proprietary Rights (as defined below) in the Products. "Proprietary Rights"
means all  patent  rights,  patent  applications,  rights to apply for  patents,
copyrights,  copyright registrations,  trade secrets, trademarks, service marks,
trademark and service mark registrations and all related goodwill.

6.  Proprietary  Rights  Notices.  Purchaser  will leave intact all  Proprietary
Rights  notices  (including,  without  limitation,   copyright  notices,  patent
registration  numbers and  trademark  notices) on all Products or  documentation
supplied by AT I.

                                       1
<PAGE>

7. Software  Rights.  ATI will provide all software related to the Products (the
"Software") to Purchaser in accordance with the Software  License  Agreement set
out in Attachment 3 hereto.

8. Term.  The term of this  Agreement  shall  commence on the Effective Date and
shall continue for an initial period of three (3) years  ("Initial  Term"),  and
shall  automatically  renew  thereafter for  consecutive  one year periods (such
renewal  periods and the Initial Term  collectively  referred to as the "Term"),
unless  sooner  terminated  in  accordance  with  Section  29  hereof  or unless
Purchaser  provides at least sixty (60) days prior written  notice of its intent
that the Term not renew.

9. Taxes. The Purchaser shall be liable for all applicable Federal,  Provincial,
State and local  sales and use  taxes.  The  Purchaser  shall be liable  for any
import  and/or  excise  taxes,  customs and duties  incurred  for  licenses  for
clearance required at point of entry and destination.

10.  Payment.  Payment  shall be made by the Purchaser net thirty (30) days from
the later of (i) the date of actual delivery to Purchaser's  designated facility
or (ii) the date an invoice is received by Purchaser.

11.  Effective  Date of Price  Decreases.  Price  decreases  shall be  effective
immediately  upon  written  announcement  by ATI and shall apply to all Products
subsequently ordered by Purchaser.

12.  Forecasts.  Upon  execution of this Agreement and within five (5) days from
the end of each calendar  month  thereafter,  Purchaser  will provide ATI with a
written forecast  setting forth  Purchaser's  anticipated  monthly needs for the
delivery of Products for the following four (4) calendar month period (including
the month in which the forecast is provided).

13. Lead Time.  Estimated  lead time for delivery of ATI  standard  Products and
spare parts  covered by this  Agreement  will be ninety (90)  working days after
date of receipt of accepted  purchase  orders.  If Purchaser  requests a shorter
lead time on a particular  purchase order, ATI will consider such a request on a
case by case basis.

14. Finished Goods Inventory.  Purchaser shall be entitled to specify a quantity
of up to two weeks average demand for each currently  forecasted  Product listed
in Attachment 1, to be  maintained at ATI's  facilities or a mutually  agreed to
alternate  location  as  finished  goods  inventory  available  for sale only to
Purchaser (the "Finished  Goods  Inventory").  Such Products may be purchased by
Purchaser  pursuant to the provisions of this  Agreement.  AT[ will dedicate and
maintain  a  suitable  storage  location  at its plant or a  mutually  agreed to
alternate  location  where the  Finished  Goods  Inventory  shall be stored  and
segregated from all of ATI's other inventory. Purchaser is obligated to purchase
all  Finished  Goods  Inventory  held  by ATI  at  Purchaser's  request.  Should
Purchaser  no longer  have  requirements  for such  inventory  of ATI's  generic
products included in Finished Goods Inventory,  ATI will make reasonable efforts
to sell such inventory to other customers upon written request from Purchaser.

15. Placing Orders. Purchaser agrees to issue purchase orders or releases, which
may be issued  against  blanket  purchase  orders  (individually  an "Order" and
collectively,  "Orders"),  for all Products in accordance with the terms of this
Agreement..  Each  Order  shall  be in  the  form  of a  written  or  electronic
communication and shall contain the following information:

(a)        A description of the Products;
(b)        The quantity of Products;
(c)        The requested delivery date;
(d)        The location to which the Products are to be shipped;
(e)        The location to which invoices shall be sent for payment; and
(f)        Transportation instructions.

All Orders under this Agreement shall be provided on Purchaser's form of
purchase order. In the event of a conflict between the Order and the terms and
conditions contained in this Agreement and the Attachments hereto, the terms and
conditions contained in this Agreement and the Attachments hereto shall
supersede and control over the Order. ATI shall accept and acknowledge Orders
within five (5) days of ATI's receipt of such Order.

16.  Orders - General.  No  modification  to any Order,  this  Agreement  or the
Attachments  hereto and no  inconsistent  or additional  terms  contained in any

                                       2
<PAGE>

quotation, purchase order, acknowledgment or invoice, shall be valid without the
prior written  consent of an  authorized  representative  of ATI and  Purchaser.
ATI's failure to object to any provisions  contained in any  communication  from
Purchaser  shall not be deemed a waiver of the  provisions of this Agreement and
the  Attachments  hereto.  The provisions of this Agreement  supersede all prior
oral or written quotations, communications, agreements and understandings of the
parties with respect to the subject  matter of this  Agreement.  These terms and
conditions  shall be applicable  whether or not they are attached to or enclosed
with the Products to be sold hereunder.

17. Rescheduling/Cancellation.  Order cancellations, rescheduling and/or changes
are subject to the following:

(a)         Orders  providing  for delivery in excess of ninety (90) days may be
            canceled at no charge to Purchaser;
(b)         Orders  providing  for delivery in excess of sixty (60) days and not
            greater than (90) days may not be canceled but may be rescheduled at
            no charge  provided the  delivery  date is not delayed for more than
            thirty  (30)  days and the type of  Product  may be  changed,  at no
            charge to Purchaser;
(c)         Orders  providing for delivery in excess of thirty (30) days but not
            greater than sixty (60) days may not be canceled, but may be delayed
            provided the delivery  date is not delayed for more than thirty (30)
            days  and  the  type of  Product  may be  changed  at no  charge  to
            Purchaser on up to fifty  percent  (50%) of any order,  provided the
            total  dollar  amount of the Order is not  decreased.  Greater  than
            fifty  percent  (50%) of any Order may be changed  upon payment of a
            fifteen percent (15%) charge;
(d)         Orders  providing  for delivery  within  thirty (30) days is a fixed
            order which may not be canceled,  rescheduled and/or changed, except
            that an Order may be delayed for up to thirty (30) days upon payment
            of a fifteen percent (15%) charge.

18.  Delivery.  All products  shall be  delivered  by ATI f.o.b.  ATI's point of
shipment.  ATI's normal freight terms to Purchaser  shall be freight  prepaid by
ATI and added to the invoice  amount.  Shipments will be insured as specified in
the order.  Any  changes  to these  freight  terms  requires  the prior  written
approval of ATI.

19. Title and  Liability.  Title and liability for loss or damage to the product
shall pass to  Purchaser  upon ATI's  delivery  of the  Product to a carrier for
shipment to the  Purchaser and any loss or damage  thereafter  shall not relieve
the Purchaser of any obligations hereunder.

20.  Package  and  Shipment.  All  Products  shall be  packaged  and  packed  in
accordance with ATI's normal  practices.  Packages will be marked as directed by
Purchaser. ATI will take all commercially reasonable steps to deliver Product by
the  delivery  date stated in the Order.  ATI will obtain  Purchaser's  approval
before  making any  shipment  more than 7 calendar  days prior to or more than 7
calendar  days  following  the stated  delivery  date.  If ATI will not ship the
specified  quantity of Product  ordered for delivery  within 30 calendar days of
the stated  delivery  date,  ATI will notify  Purchaser and provide an estimated
delivery date. If the specified method of transportation would not permit ATI to
meet the stated  delivery  date,  the  Product  affected  will be shipped by air
transportation  or other expedient means  acceptable to Purchaser,  and ATI will
pay for any  resulting  increase in the freight  cost over that which  Purchaser
would  have been  required  to pay by the  specified  method of  transportation.
Should  only a portion of the  Product be  available  for  shipment  to meet the
requested  delivery date, ATI will ship the available Product unless directed by
Purchaser to reschedule shipment.

21.  Inspection.  All Products  purchased  hereunder are subject to  Purchaser's
inspection  and  acceptance  provided  that if Purchaser  has no  I-accepted  or
rejected  the Product with  fourteen  (14) days of receipt,  Purchaser  shall be
deemed to have  accepted  such  Product.  No Product  shall be  returned  to ATI
without ATI's consent and a Return Material  Authorization  ("RMA") number which
will be issued by ATI and must accompany any returned Product.

22.  Specifications.  All Products will be  manufactured  in accordance with the
specifications, drawings and technical information, if any, attached or referred
to in  Attachment  2 hereto  (the  "Specifications").  In the  event  ATI  makes
material  changes to the form,  fit, and/or function of the Products which would
reduce the reliability, performance, or function thereof, or which is a material
deviation  from  Product  roadmaps  disclosed  to  Purchaser,  ATI will  provide
Purchaser with notice thereof at least 60 days prior to such implementation.  If
such  change or  deviation  materially  affects  or delays  Purchaser's  product
development,  for a period of more than 60 days from the dates  shown in Section
4.3 of the Addendum To Master Sales Agreement, then the payments in the Purchase
Schedule  listed in  Attachment  1 hereto  will be adjusted by an amount of time
equal to the delay.

23.  Purchaser  Changes to  Specifications.  Purchaser  may,  from time to time,
request  changes  to  the  Product   Specifications   and  ATI  agrees  to  make
commercially  reasonable efforts to comply with such reasonable change requests.
If  Specification  changes  result  in an  increase  in the  cost or in the time
required to manufacture  such Products,  at ATI's  discretion,  a  proportionate

                                       3
<PAGE>

adjustment  to the prices  and/or  lead times will be made.  Any  adjustment  to
prices  shall be in writing  and ATI shall not be  required  to  implement  such
changes until ATI and Purchaser have mutually agreed upon such modifications and
price changes.

24.  Use of  Documentation.  Unless  otherwise  agreed  by ATI in  writing,  all
documentation,  including  Specifications,  delivered pursuant to this Agreement
and all  information  contained  therein may be reproduced  only for inspection,
testing,  maintenance  and repair  purposes.  Neither  receipt nor possession of
documentation  delivered  pursuant to this  Agreement  confers or transfers  any
right to use,  reproduce or disclose the  documentation,  any part  thereof,  or
information contained therein, for any other purpose. The foregoing restrictions
shall not apply to documentation clearly intended for use by end users.

25. Confidential Information.  The documentation referred to above and any other
material  related to the Products and provided under the terms of this Agreement
are  or  encompass  trade  secrets  or  confidential  information  of ATI or its
suppliers   ("Confidential   Information").   Purchaser   shall   not  make  the
Confidential  Information  available  in any  form  to  any  person  other  than
Purchaser's  employees  whose job  performance  requires such access.  Purchaser
shall protect the  confidentiality  of  Confidential  Information  with the same
degree of care that it  exercises  with respect to its own  information  of like
import,  but in no event  less than  reasonable  care,  for a period of five (5)
years  from  the date of  disclosure.  Purchaser  shall  not be  liable  for the
disclosure of Confidential Information which: (a) is known to Purchaser lawfully
by its own efforts prior to being received from ATI; (b) is or becomes  publicly
known  through no  wrongful  act of  Purchaser;  (c) is  obtained  by  Purchaser
lawfully from a third party not having an obligation to maintain confidentiality
and not being in wrongful  possession of the  confidential  information;  (d) is
independently  developed by Purchaser  without breach of this Agreement;  (e) is
disclosed  under  operation of law; or (f) is disclosed by Purchaser  with ATI's
prior written approval.

26. Warranty and Indemnification.

(a)         ATI  represents  and warrants that board Products shall be free from
            defects in material and workmanship under normal use and service for
            a period of two (2) years from when first sold. to an end user.  ATI
            represents and warrants that component (ASIC) Products shall be free
            from  defects  in  material  and  workmanship  under  normal use and
            service  for a period of one (1) year from when first sold to an end
            user.  An end user  shall be deemed to have  bought  the  Product no
            later than  ninety  (90) days after  shipment  of the Product to the
            Purchaser.  Notwithstanding the forgoing, if the Product sold by ATI
            to Purchaser is a component (ASIC) Product, ATI shall only be liable
            under the foregoing warranty if a defect can be proven in respect of
            such  Product.  ATI's  entire  obligation  under  this  warranty  is
            limited,  at its sole option,  to the repair or  replacement  of the
            Product within the foregoing  warranty period.  Such Product must be
            returned to ATI in  accordance  with ATI's  standard RMA  procedure.
            This warranty shall not apply to any Product which has been repaired
            or altered,  except by ATI, or to any Product which has been subject
            to misuse or accident.

(b)         ATI shall defend,  indemnify and hold Purchaser harmless against any
            and  all   assertions,   claims,   suits,   actions  or  proceedings
            (collectively,  "Claims") brought against Purchaser based on a Claim
            that any Product or the  manufacture,  use, sale or  distribution of
            any  Product  purchased  by  Purchaser   hereunder   constitutes  an
            infringement of any patent,  copyright,  trademark,  trade secret or
            other  intellectual  property  right of any  third  party in the US,
            Canada, European Union or Japan. ATI shall pay all damages and costs
            incurred by or awarded  against  Purchaser  related to or  resulting
            from such Claims. If Purchaser is enjoined,  or it appears likely to
            ATI  that  Purchaser  may  be  enjoined,   from  using,  selling  or
            distributing  any Product  purchased  by  Purchaser  hereunder,  ATI
            shall,  at its own expense and option,  either (i) procure the right
            for Purchaser and Purchaser's  customers to use, sell and distribute
            such   Product;   (ii)   replace  the   infringing   Products   with
            non-infringing products that have substantially the same quality and
            performance;  or (iii) modify any  infringing  Product so it becomes
            non-infringing,  but  having  substantially  the  same  quality  and
            performance;  or (iv) if none of the actions  described in (i), (ii)
            or (iii)  is  commercially  feasible,  as  determined  by ATI in its
            discretion,  terminate  this  Agreement  immediately  and  authorize
            Purchaser  to return the  infringing  Product in its  inventory  and
            credit to Purchaser the full purchase  price paid by Purchaser.  The
            foregoing  states  ATI's total  liability  and  obligation  for such
            Claims.  ATI shall have sole control and  authority  with respect to
            the defense,  settlement  or compromise of any Claim covered by this
            section.  Purchaser  shall provide  prompt  written notice of such a
            Claim and reasonable  assistance and  cooperation in connection with
            ATI's defense, settlement or compromise thereof.

                                       4
<PAGE>

            Notwithstanding the foregoing, ATI shall have no liability for any
            Claim which Purchaser has not promptly notified ATI of in writing,
            and for:

            (A)         Any   infringement   based  upon  use  of   Products  in
                        combination with any materials not furnished directly by
                        ATI;

            (B)         Damages  attributable to continued sales after Purchaser
                        first receives notice of the alleged infringement;

            (C)         Any infringement  based upon a modification or change to
                        the Products not first authorized by ATI in writing;

            (D)         Use of its  Products in a manner for which they were not
                        designed or not according to their Specifications;

            (E)         Use of an earlier  version of the Products  when a later
                        version has been made  available to Purchaser and use of
                        such later version would have avoided the  infringement;
                        and

            (F)         Any infringement  arising from ATI's compliance with any
                        unique specifications or design requirements provided or
                        requested by Purchaser:

            (G)         Any  infringement   relating  to  any  MPEG  or  MPEG  2
                        technology.

27. Disclaimer and Limited Liability.

EXCEPT AS EXPRESSLY  STATED ABOVE IN SECTION 26, ALL WARRANTIES ARE  DISCLAIMED,
INCLUDING,  WITHOUT  LIMITATION,  THE  IMPLIED  WARRANTIES  OF  MERCHANTABILITY,
ACCURACY,  CONDITION,  OWNERSHIP,  FITNESS  FOR  A  PARTICULAR  PURPOSE,  AND/OR
NON-INFRINGEMENT OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.

NEITHER PARTY, NOR ANY OF ITS AFFILIATES,  WILL BE LIABLE TO THE OTHER PARTY FOR
ANY SPECIAL,  INCIDENTAL,  PUNITIVE OR CONSEQUENTAL DAMAGES, EVEN IF INFORMED OF
THE POSSIBILITY  THEREOF IN ADVANCE.  THESE  LIMITATIONS  APPLY TO ALL CAUSES OF
ACTION IN THE AGGREGATE, INCLUDING WITHOUT LIMITATION BREACH OF CONTRACT, BREACH
OF WARRANTY, NEGLIGENCE, STRICT LIABILITY, MISREPRESENTATION AND OTHER TORTS. IN
NO EVENT WILL ATI'S OR ITS  AFFILIATES OR SUPPLIERS  AGGREGATE  LIABILITY  UNDER
THIS AGREEMENT, REGARDLESS OF THE FORM OF CLAIM OR ACTION, EXCEED A SUM EQUAL TO
THE AMOUNTS  PAID BY  PURCHASER  TO ATI IN THE ONE (1) YEAR  PERIOD  IMMEDIATELY
PRECEEDING  THE  DATE ON WHICH A  WRITTEN  DEMAND  FOR  DAMAGES  IS  MADE.  THIS
LIMITATION   DOES  NOT  APPLY  TO  DAMAGES  FOR   INFRINGEMENT  OF  THIRD  PARTY
INTELLECTUAL   PROPERTY  RIGHTS,  BREACH  OF  CONFIDENTIALITY  OR  TRADE  SECRET
MISAPPROPRIATION,   NOR  TO  CLAIMS  ARISING  FROM  GROSS  NEGLIGENCE,   WILLFUL
MISCONDUCT OR FRAUD.

28.  Technical  Support.  In the  event  an  emergency  occurs  and  Purchaser's
personnel are in need of assistance,  AT[ will provide  reasonable field support
in the form of telephone  consultation  during ATI's normal  business  hours. If
requested by  Purchaser  and  acceptable  to ATI, ATI may provide FAE support at
Purchaser's facility.

29. Termination. This Agreement will terminate:

            a)          In the  event of a  material  breach by one party in the
                        performance of its duties,  obligations or  undertakings
                        under  this  Agreement,  the other  party  will have the
                        right to give  written  notice  to the  breaching  party
                        advising such party of the specific breach involved.  If
                        the breaching  party has not remedied such breach within
                        thirty (30) days after such notice, the other party will
                        have the  right,  in  addition  to any other  rights and
                        remedies  it  may  have,  to  terminate  this  Agreement
                        immediately upon written notice to the defaulting party.
                        The thirty  (30) day cure  period is not  applicable  to
                        breaches of  confidentiality  or improper  disclosure of
                        proprietary technology or other trade secrets.

                                       5
<PAGE>

            b)          In the event that  Purchaser  fails to make any payments
                        hereunder,  ATI  shall  have the  right to give  written
                        notice to Purchaser  advising  Purchaser of the specific
                        nonpayment  involved.  If  Purchaser  has not  made  the
                        requisite  payment  within  fifteen (15) days after such
                        notice,  ATI will have the  right,  in  addition  to any
                        other rights and remedies it may have, to terminate this
                        Agreement immediately upon written notice to Purchaser.

            c)          In the event  that a party has been the  subject  of any
                        voluntary   or   involuntary   proceeding   relating  to
                        bankruptcy,   insolvency,   liquidation,   receivership,
                        composition   of  or  assignment   for  the  benefit  of
                        creditors,  the other party may terminate this Agreement
                        by providing written notice to such party.

            d)          120 days  following  ATI's notice to Purchaser  advising
                        that  all  Products  to  be  sold   hereunder   are  now
                        end-of-life.

30. Effect of Termination. After termination:

            (a)         Payment,   delivery,  and  confidentiality   obligations
                        arising prior to termination will remain in force.

            (b)         In the event of  termination  of this  Agreement  due to
                        Purchaser's   material  breach  the  due  date  for  all
                        invoices for Products shall automatically be accelerated
                        so that they shall immediately become due and payable on
                        the effective date of termination,  even if longer terms
                        had been provided previously.

            (c)         Notwithstanding   the  termination  of  this  Agreement,
                        Purchaser may use and sell any Product held in inventory
                        at such time,  and  continue to exercise  its rights and
                        licenses  in the  Software  under  Section 7 to  provide
                        support to its customers for products  incorporating the
                        Product.

            (d)         Neither  party will be liable for damages of any kind as
                        a result  of  exercising  its  right to  terminate  this
                        Agreement.

31.  Applicable  Law.  This  Agreement  shall be  governed  by and  enforced  in
accordance  with the laws of the State of  California  without  reference to its
conflict of laws principles.

32. Force Majeure.  If the performance of this Agreement or any obligation under
it (except payment of monies due) is prevented, restricted or interfered with by
reason of acts of God,  acts of  government,  or any other  cause not within the
reasonable  control or anticipation of either party, the party so affected shall
be excused from such performance, but only for so long as and to the extent that
such a force prevents,  restricts or interferes  with that party's  performance.
The party  affected by the other party's delay or inability to perform may elect
to suspend this  Agreement for the duration of the force  majeure  condition and
(i) at its option buy, sell, obtain or furnish elsewhere  material to be bought,
sold, obtained or furnished under this Agreement and (ii) once the force majeure
condition ceases,  resume  performance  under this Agreement.  When the delay or
nonperformance  continues for a period of a least thirty (30) days, either party
may terminate  this  Agreement or any part of it relating to Product not already
shipped.  Where  partial  supplies  of  Product  are  available  to AD, ATI will
allocate  such  supplies   proportionately   among  Purchaser  and  ATI's  other
customers.

33. Asslgnment.  Neither party shall assign or delegate this Agreement,  or. any
of their rights or duties hereunder,  directly, indirectly, by operation of law,
or  otherwise,  and any such puported  assignment  or delegation  shall be void,
except with the express written  permission of the other party which  permission
will not be unreasonably withheld. Notwithstanding the foregoing, any assignment
pursuant to a merger,  change of control of ownership  or sale of  substantially
all of the assets of any party  shall be  expressly  allowed  hereunder  without
written  consent  of any  other  party.  Without  limiting  the  foregoing,  any
permitted  assigns or  successors  of an  assigning  party shall be bound by all
terms and conditions of this Agreement.

34.  Notices.  All notices  required to be given  under this  Agreement  and any
communication  sent with respect to this Agreement shall be given in writing and
shall be deemed  received by the party to whom the notice or  correspondence  is
sent  (a) one day  after  the  notice  or  communication  is sent  via  reliable
overnight  commercial  courier  (charges  prepaid),  (b)  on the  date  a  party
acknowledges  receipt  of the  notice or  communication  sent via  certified  or
registered  mail, (c) three days after the notice or  communication  is sent via
first  class mail,  (d) on the date a party  receives  such notice by  confirmed
facsimile or other electronic transmission,  provided that a copy of such notice
is sent to such party via first class mail within two days thereafter, or (e) on
the date the notice or communication is personally delivered to the other party,
at the addresses set forth as follows:

                                       6
<PAGE>

   Purchaser:                                    ATI:
   Evans &'Sutherland Computer Corporation       ATI Technologies Inc.
   600 Komas Drive                               Legal Department
   Salt Lake City, Utah                          75 Tiverton Court
   84158 USA                                     Unionville, Ontario
   Attention: Legal Department                   Canada L3R 9S3

                                                 With Copy to:
                                                 ATI Technologies Inc.
                                                 OEM Sales
                                                 33 Commerce Valley Drive East
                                                 Thornhill, Ontario
                                                 Canada L3T 7N6

35. Relationship of Parties.  Other than as provided herein, this Agreement does
not create any  exclusive  arrangement  between the  parties,  and either  party
hereto  may meet,  exchange  information,  enter  into  agreements  and  conduct
business  relationships of any kind with third parties,  to the exclusion of the
other party. Subject to the terms and conditions of this Agreement and except as
otherwise agreed to in writing by the parties,  discussion and/or communications
between  the  parties  will not  serve to impair  the  right of either  party to
develop,  make, use,  procure,  and/or market products or services now or in the
future that may be competitive  with those offered by the other,  nor to develop
and provide products to competitors of the other party, nor require either party
to disclose any planning or other information to the other.

36. Press Release. Each party acknowledges that the other may do a press release
relating to this Agreement or to the subsequent  addition of any Products hereto
with  the  prior  approval  of the  other  party,  which  approval  will  not be
unreasonably withheld. The releasing party will provide the other with a copy of
any such announcement for approval before being publicly released.

37.  Severability.  Whenever possible,  each provision of this Agreement will be
interpreted  in such manner as to be effective and valid under  applicable  law,
but if any  provision of this  Agreement is held to be  prohibited by or invalid
under  applicable  law, the parties will negotiate in good faith to restate such
provision  to  reflect  the  original  intentions  of the  parties  as nearly as
possible in accordance with applicable law and the remaining  provisions of this
Agreement  shall be enforced  as if this  Agreement  was  entered  into with the
restated provision

38.  Survival.  Sections 5, 6, 7 (subject to the  survival  limitations  of that
section),  25, 26,  27,  30, 31 and 34 shall  survive  any  termination  of this
Agreement   and  shall  bind  the  parties  and  their  legal   representatives,
successors, heirs and assigns.

39. Entire Agreement.  This Agreement and all Attachments  hereto constitute the
final  written  expression  of  all  terms  of  the  Agreement  relating  to the
transactions   described   herein.   This  Agreement   supersedes  all  previous
communications, representations, agreements, promises or statements, either oral
or written, with respect to such transactions. No addition to or modification of
any provision of this  Agreement will be binding unIess in writing and signed by
the parties hereto.

ATI TECHNOLOGIES INC.                    EVANS & SUTHERLAND COMPUTER
                                         CORPORATION
By:     /S/ Dave Orton                   By:    /S/ James R. Oyler
Name:   Dave Orton                       Name   James R. Oyler
Title:  President and CEO                Title: President and CEO
Date:   8/27/01                          Date:  8/30/01

                                       7
<PAGE>

                                  ATTACHMENT 1

                           Name and Price of Products

   Products

The following Radeon chips currently produced or in development are considered
to be the "Products" under the terms of this Agreement:

             8200
             8300
             8350
             Bridget
             Theater

  Production "per chip" prices:

  1. Production  graphics  chips  (Rxxx) will be sold to  Purchaser at US
     $185 per chip.

  2. Production AGP Bridget chips will be sold to Purchaser at US $15 per chip.

  3. Production Theater chips will be sold to Purchaser at US $15 per chip.

  Purchase Schedule

 Purchaser will make the following payments on the following dates in respect of
 Software license and support fees and the Minimum Commitment payments for
 Products:

o   Execution of this Agreement   $250,000 (SW license fee)
o   31 Oct 01                     $250,000 (SW license fee)
o   28 Feb 02                     $250,000 (chip commitment)
                                  + $500,000 (SW license fee)
o   31 May 02                     $250,000 (chip commitment)
                                  + $250,000 (SW license fee)
o   31 Aug 02                     $300,000 (chip commitment)
o   30 Nov 02                     $300,000 (chip commitment)
o   28 Feb 03                     $300,000 (chip commitment)
o   31 May 03                     $300,000 (chip commitment)
o   31 Aug 03                     $300,000 (chip commitment)

All amounts are in USD.

ATI Delivery Schedule

If the delivery of product or samples from ATI is delayed by more than 60 days
from the dates shown in Section 4.3 of the Addendum To Master Sales Agreement,
then the Purchase Schedule listed above will be adjusted by an amount of time
equal to the delay in ATI actual delivery dates.

                                       8
<PAGE>

                                  ATTACHMENT 2

                                 Specifications

ATI Product specifications for the following Products:

           8200
           8300
           8350
           Bridget
           Theater

                                       9
<PAGE>

                                  ATTACHMENT 3

                           Software License Agreement

                                       10
<PAGE>

                                    ADDENDUM
                                       TO
                             MASTER SALES AGREEMENT

            This  Addendum   ("Addendum")   is  made  with   reference  to,  and
supplements and is a part of, the Master Sales Agreement ("Agreement"),  made as
of August 13, 2001 by and between ATI Technologies  Inc.,  acting on its own and
on  behalf  of  its  subsidiaries  ("ATI"),  and  Evans  &  Sutherland  Computer
Corporation ("Purchaser"). Except as modified by this Addendum, the terms of the
Agreement  are  un-amended  and in full force and effect,  and will apply to the
subject  matter  hereof.  If any  terms  of  this  Addendum  conflict  with  the
Agreement,  the terms of the Agreement will govern, and the conflicting terms of
this Addendum will be deemed  modified to be  consistent  herewith.  Capitalized
terms used but not defined  herein have the meanings given them in the Agreement
and Attachment 3 thereto.

  Purpose:

            A. ATI  designs,  manufactures  and markets  graphics,  video and/or
multimedia related controllers, boards and related software.

            B. Purchaser has substantial expertise in, and designs, manufactures
and markets,  high end image generator  ("IG")  products for the  visualization,
simulation and training market (the "Visual Simulation Market").

            C. ATI and  Purchaser  desire to initiate a  strategic  relationship
pursuant to which ATI will enable the  development  by  Purchaser of IG products
based on ATI's standard  commercial  high-end Radeon(R) family of graphics chips
and related  software  technology,  and grant to  Purchaser  the  non-exclusive,
worldwide  right  to  develop,  market  and sell  such  products  in the  Visual
Simulation Market.

           In consideration of the mutual premises and covenants contained
herein, the parties hereto hereby agree as follows:

Agreement:

            1.  Resources.  Each party will commit the number of  qualified  and
experienced  personnel  which are necessary to perform its  obligations  in this
Addendum and the Agreement.

            2. Contacts. Each party will designate a management level person who
will act as the point of contact for all matters  relating to this  Addendum and
the Agreement. Purchaser's contact person is: Jeff Kirk. ATI's contact person is
Andy Thompson.

            3. Meetings. The parties will hold regular status meetings to review
and  coordinate  activity  relating  to  this  Addendum  and the  Agreement.  In
particular,  the parties will address ATI's technology roadmap,  and suggestions
by Purchaser as to features and functionality  that it perceives to be desirable
for future product releases.

            4. ATI Deliverables.

                        4.1 Source Code. ATI will provide Purchaser with current
            software  driver Source Code for the Products during the term of the
            Agreement as available, together with each update and release to the
            code,  including all releases of the 8200 driver  Source Code,  8300
            driver Source Code,  and 8350 driver  Source Code,  BIOS source code
            and  driver  Source  Code for  Linux  OS.  Use of the  code  will be
            governed by a separate license agreement attached as Attachment 3 to
            the  Agreement.  Initial  delivery  of the code will take place at a
            mutually agreed time and place in early July, 2001, and will consist
            of MS Windows  based OpenGL and DirectX  driver  Source Code for the
            8200 chip.

                        4.2  Hardware   Design   Documents.   ATI  will  provide
            Purchaser with current  hardware  design  documents for the Products
            during the term of the Agreement as available, including schematics,
            board layouts, and timing information,  together with each update to

                                       11
<PAGE>

            the  designs.  This  includes,  but is not limited to, the  hardware
            design  documents for the 8200,  8300,  8350,  and AGP bridge chips.
            Initial  delivery  of the  documents  will take  place at a mutually
            agreed time and place in early July, 2001.

                       4.3 Sample Product. ATI will provide Purchaser with a
            reasonable number of Radon graphics chips, bridge chips and complete
            board samples to enable Purchaser to test, evaluate and manufacture
            prototypes of the IG graphics boards and products developed by
            Purchaser. Samples will be delivered to Purchaser as available, at a
            mutually agreed time and place, for each new chip design and with
            each new turn. Nominally these deliveries will be at schedule points
            designated by ATI as "sample" availability and "production"
            availability. The anticipated schedule for delivery of sample chips
            and boards is as follows:

                      8200 samples - immediately upon execution of the Agreement

                      8200 production - mid September 2001

                      8300 samples - first week of January 2002

                      8300 production - first week of April 2002

                      8350 samples - tbd

                      8350 production - tbd

                     4.4 Product Changes. ATI acknowledges that Purchaser will
           design IG products based on Product designs and specifications
           disclosed to Purchaser by ATI, and as anticipated by the roadmap. In
           the event AT[ makes material changes to the form, fit, and/or
           function of the Products which would reduce the reliability,
           performance, or function thereof, or which is a material deviation
           from Product roadmaps disclosed to Purchaser, ATI will provide
           Purchaser with notice thereof at least 60 days prior to such
           implementation.

            5.  Purchaser IG Products.  Purchaser  intends to design IG products
based on ATI Products and related software technology for use only in the Visual
Simulation  Market.  Purchaser will make design  modifications and extensions to
ATI's standard commercial high-end graphics products. These design modifications
and extensions will typically  include the design of unique graphics boards that
employ multiple AT[ graphics chips,  the addition of other chips and hardware to
support features and performance  unique to the Visual Simulation Market and the
modification  of ATI's  standard  software  driver  Source Code to support these
unique graphics board designs.

            6.  Fee.   Purchaser  will  pay  ATI  a  fee  of  US  $1,250,000  in
consideration of ATI's agreements hereunder, including the Software licenses and
support  contemplated  in the  Agreement  and  this  Addendum.  This fee will be
payable as set out in Attachment 1 of the Agreement.

            7. Support.

                        7.1 Engineering Support.  During the first two (2) years
            of the  Initial  Term,  subject to  Purchaser  making  the  required
            Software license and Minimum Commitment  payments when due, AT[ will
            provide  support  to  Purchaser  consisting  of and  subject  to the
            following  conditions  (as well as the terms and  conditions  of the
            Software  License  Agreement  between the parties dated of even date
            herewith) to Purchaser:

                                    (a) Up to 200 hours of hardware  engineering
                        design  support.   To  the  extent  additional  hardware
                        support is required beyond 200 hours, ATI will work with
                        Purchaser in a commercially  reasonable manner to assist
                        Purchaser with any hardware issues that arise,  provided
                        that ATI will  determine  the level of such  support and
                        may terminate such additional assistance at any time, in
                        its sole  discretion,  unless the parties mutually agree
                        in writing to an appropriate  support fee payment amount
                        for  such  assistance.  ATI will  provide  architectural
                        assistance and consulting only as it relates to hardware
                        in the Products. In no event will support be provided in

                                       12
<PAGE>

                        relation  to  Purchaser's   product.  ATI  will  provide
                        sufficient  documentation  on  hardware,  interconnects,
                        board-level     information,      and     register-level
                        specifications,  to permit the design of circuit  boards
                        using the Products.  In addition,  the  documentation of
                        Product internals shall be sufficient to permit software
                        programmers  full-access  to all  internal  graphic chip
                        features  so that  Purchaser  can bring the  appropriate
                        modifications to the OpenGL (and DirectX) drivers

                                    (b)  Access to one  software  driver  expert
                        during regular business hours. ATI will provide Software
                        updates   (approximately   two  per   year),   including
                        documentation,  initial set up assistance and consulting
                        only as it relates to the  Software.  No support will be
                        provided  in  relation to  Purchaser's  own  software or
                        Purchaser's enhancements to ATI's Software.

                                    (c) All support will be coordinated  through
                        designated   program   managers  who  shall  manage  the
                        parties' interaction.

             Support will commence concurrently with the initial delivery by ATI
             of its Source Code and hardware designs, and will continue during
             the Term of the Agreement.

                        7.2 Fee and Payment.  Engineering  support  payments are
            included as part of the Software  License fee payments.  Sections 9.
            and 10. of the Agreement will apply to all payments made pursuant to
            this Addendum.

                        7.3 Support  Option.  At least ninety (90) days prior to
            the end of the second year of the Initial Term,  Purchaser will have
            the option to purchase  continuing support from ATI beyond the first
            two years of the  Initial  Term on a time and  materials  basis,  as
            required, at ATI's then current rates as agreed to by the parties in
            writing.  Such support will include  support similar to the hardware
            support  provided  in  Section  7.1 (a) and  access to a  designated
            engineer to provide  software support as provided in Section 7.1(b).
            This  additional  support  will also  include any updates to Product
            documentation  and  Software.   The  parties  will  coordinate  such
            additional support in accordance with Section 7.1(c).

            8. Confidentiality.

                      8.1 Restrictions. ATI will hold in confidence, and will
            use solely for purposes of or as provided in this Agreement, any
            Purchaser Confidential Information disclosed to it or derived from
            Purchaser Confidential Information disclosed to it, and will protect
            the confidentiality of such with the same degree of care that it
            exercises with respect to its own information of like import, but in
            no event less than reasonable care, for a period of 5 years from the
            date of disclosure.

                      8.2 Exceptions. If ATI is required by legal, judicial or
           administrative process or applicable laws (including federal
           securities laws) to disclose Purchaser Confidential Information, ATI
           will give Purchaser notice of the required disclosure and provide
           commercially reasonable assistance, at Purchaser's expense, in
           seeking to quash or limit the disclosure.

                        8.3 Return of  Confidential  Information.  All materials
            containing  Purchaser  Confidential  Information will be returned or
            destroyed upon termination of this Agreement.

                        8.4   "Purchaser    Confidential    Information"   means
            information  relating  to  Purchaser,  including  but not limited to
            information relating to Purchaser's  business,  products and product
            roadmaps,  (i) disclosed in tangible form that is clearly  marked or
            identified as  confidential or proprietary at the time of disclosure
            or (ii) disclosed in non-tangible  form,  identified as confidential
            or   proprietary   at  the  time  of   disclosure,   and  summarized
            sufficiently for  identification and designated as confidential in a
            written  memorandum  sent to ATI  within 30 days  after  disclosure.
            Confidential  Information does not include information (A) used with
            the permission of the  Purchaser;  (B) in the possession of or known
            to ATI prior to its receipt from Purchaser;  (C) which is or becomes
            a matter of general  public  knowledge  through no fault of ATI; (D)
            which is  developed  independently  by or on behalf  of ATI;  or (E)
            which ATI lawfully  receives  from any third party having no duty of
            confidence  to the  Purchaser.  The  terms  and  conditions  of this
            Addendum and the Agreement are Confidential Information.

           9. Similar Development. ATI understands that Purchaser may currently
or in the future be developing technology internally, or receiving technology
from third parties that may be similar to technology developed by Purchaser with
the use of or access to ATI Confidential Information. Accordingly, nothing in
this Agreement will be construed as a representation or inference that Purchaser

                                       13
<PAGE>

will not develop products, or have products developed for it, or enter into
joint ventures, alliances, or licensing arrangements that operate substantially
similar to and/or compete with the technology developed by Purchaser following
use of or access to ATI Confidential Information, provided however that
Purchaser will not use any patents, copyrights, mask works or other intellectual
property rights ATI without obtaining the appropriate rights and licenses from
ATI.

            10. Residuals.  Notwithstanding anything herein to the contrary, any
party may use Residuals for any purpose,  including  without  limitation  use in
development,  manufacture,  promotion,  sale and maintenance of its products and
services;  provided  that this right to Residuals  does not  represent a license
under any patents,  copyrights, mask works or other intellectual property rights
of the disclosing party. The term "Residuals" means any information  retained in
the unaided memories of the receiving  party's  employees who have had access to
the disclosing party's  confidential  information  pursuant to the terms of this
Agreement. An employee's memory is unaided if the employee has not intentionally
memorized  the  confidential  information  for  the  purpose  of  retaining  and
subsequently using or disclosing it.

            11. Non-Solicitation.  During the term of this Agreement and for one
year thereafter, the parties will not directly or indirectly solicit to hire any
employee of the other  party who is an  employee  of the other party  during the
term  of this  Agreement;  provided,  however,  that  the  parties  will  not be
prevented from (i) soliciting to hire employees through  classified  advertising
or (ii)  hiring any  employee  of the other party so long as such hiring was not
initially solicited,  directly or indirectly,  by the hiring party. In the event
that during the term of this Agreement and for one year thereafter, either party
does hire any  employee of the other party who is an employee of the other party
during  the  term  of this  Agreement,  regardless  whether  such  employee  was
solicited  or not,  that event  will not  constitute  a material  breach of this
Agreement,  and the  hiring  party  will  pay to the  other  party  a  personnel
recruitment  fee in the amount of 50% of such  employee's  last  effective  base
salary prior to leaving employment with the other party.

            12. Term of Addendum. The term of this Addendum will be for the same
length as the term of the Agreement.  This Addendum will  terminate  immediately
upon termination of the Agreement.

ATI TECHNOLOGIES INC.                  EVANS & SUTHERLAND COMPUTER
                                       CORPORATION

By:     /S/ Dave Orton                 By:     /S/ James R. Oyler
Name:   Dave Orton                     Name    James R. Oyler
Title:  President and CEO              Title:  President and CEO
Date:   8/27/01                        Date:   8/30/01

                                       14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00031-of-00352.parquet"}]]