Document:

Exhibit 10.103

 

FOURTEENTH AMENDMENT TO

AMENDED AND RESTATED CREDIT
AGREEMENT

AND LIMITED CONSENT

 

This
FOURTEENTH AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT AND LIMITED
CONSENT (this “Amendment”) is
dated as of April 17, 2008 (the “Amendment Date”) and entered into by and among BANK OF AMERICA, N.A., as lender (the “Lender”), with offices at 55 South Lake Avenue, Suite 900, Pasadena,
California 91101, and MEADE INSTRUMENTS CORP., a Delaware corporation, SIMMONS
OUTDOOR CORP., a Delaware corporation, and CORONADO INSTRUMENTS, INC., a
California corporation (such entities being referred to hereinafter each
individually as a “Borrower” and
collectively, the “Borrowers”).

 

WHEREAS, the Lender and the Borrowers have entered
into that certain Amended and Restated Credit Agreement dated as of October 25,
2002 (as amended, restated or modified from time to time, the “Agreement”);

 

WHEREAS, the Borrowers have informed the Lender that
they intend to sell certain trademarks and inventory related to the “Weaver”
brands (the “Weaver Transaction”) pursuant to
an Asset Purchase Agreement between Simmons Outdoor Corp. and Ammunition
Accessories Inc. (the “Weaver Asset Purchase
Agreement”).

 

WHEREAS, the Borrowers have informed the Lender that
they also intend to sell certain trademarks and inventory related to the “Redfield”
brands (the “Redfield Transaction”, and
together with the Weaver Transaction, the “Brand Sales”)
pursuant to an Asset Purchase Agreement to be negotiated between Simmons
Outdoor Corp. and a buyer to be named (the “Redfield
Asset Purchase Agreement”).

 

WHEREAS, the Borrowers have requested that the
Lender consent to the Brand Sales and amend the Agreement in certain respects
and the Lender has agreed to such consent and amendments pursuant to the terms
and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the mutual
conditions and agreements set forth in the Agreement and this Amendment, and
other valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, hereby agree as
follows:

 

ARTICLE
I

 

Definitions

 

Section 1.01.          Definitions. Initially
capitalized terms used but not defined in this Amendment have the respective
meanings set forth in the Agreement, as amended hereby.

 

ARTICLE
II

 

Amendments

 

Section 2.01.          New Definitions. The following
definitions are hereby added to Annex A to the Agreement in proper alphabetical
order to read in their entirety as follows:

 

“‘Brand Sales’ has
the meaning set forth in the Fourteenth Amendment.”

 

1

 

“‘Brand Sales Reserve’
means a reserve in the amount at all times equal to the greater of (a) $500,000
or (b) the sum of 10% of the first $5,000,000 of net proceeds from the
Brand Sales, plus 5% of the remaining net proceeds of the Brand Sales. As
used herein, “net proceeds” means the amount of cash proceeds received
(directly or indirectly) by or on behalf of Borrowers in connection with the
Brand Sales after deducting therefrom only (i) reasonable fees,
commissions, and expenses related thereto and required to be paid by Borrowers
to non-Affiliates in connection therewith and (ii) taxes paid or payable
to any taxing authorities by Borrowers in connection with the Brand Sales.”i

 

“‘Fourteenth Amendment’
means that certain Fourteenth Amendment to Amended and Restated Credit
Agreement and Limited Consent dated as of April 17, 2008 by and among
Lender and Borrowers.”

 

Section 2.02.          Amendment to the Definition of “Reserves”.
The definition of “Reserves” as set forth in Annex A to the Agreement is hereby
amended and restated in its entirety to read as follows:

 

“‘Reserves’ means
reserves that limit the availability of credit hereunder, consisting of
reserves against Availability, Eligible Accounts or Eligible Inventory,
established by Lender from time to time in Lender’s reasonable credit judgment.
Without limiting the generality of the foregoing, the following reserves shall
be deemed to be a reasonable exercise of Lender’s credit judgment: (a) Bank
Product Reserves; (b) a reserve for accrued, unpaid interest on the
Obligations; (c) reserves for rent at leased locations subject to
statutory or contractual landlord liens; (d) the Slow Moving Reserve; (e) the
Dilution Adjustment Reserve; (f) warehousemen’s or bailees’ charges; (g) the
Working Capital Reserve; (h) the Availability Reserve; (i) the EBITDA
Reserve; and (j) the Brand Sales Reserve.”

 

Section 2.03.          Amendment to the Definition of “Maximum
Revolver Amount”. The definition of “Maximum Revolver Amount” as set forth
in Annex A to the Agreement is hereby amended and restated in its entirety to
read as follows:

 

“‘Maximum Revolver Amount’
means $20,000,000.”

 

Section 2.04.          Amendment to Section 1.1. Section 1.1
of the Agreement is hereby amended and restated to read in its entirety as
follows:

 

“1.1         Total Facility. Subject to all of the terms and
conditions of this Agreement, the Lender agrees to make available a total
credit facility of up to $20,000,000 (the ‘Total Facility’) to the
Borrowers from time to time during the term of this Agreement. The Total
Facility shall be composed of a revolving line of credit consisting of
Revolving Loans and Letters of Credit described herein.”

 

ARTICLE
III

 

LIMITED
CONSENT

 

Section 3.01.          Limited Consents. Notwithstanding
anything contrary in the Agreement or any other provision set forth in the Loan
Documents, and subject to the terms, conditions, and other restrictions set
forth herein, the Lender hereby consents to the Brand Sales. This consent is
limited to the Brand Sales and is not a consent to any other transaction,
whether or not similar to the foregoing. The consent to each of the Brand Sales
is conditioned upon satisfaction of each of the following conditions precedent
thereto, as well as the conditions precedent set forth in Article IV
below:

 

2

 

(i)          With respect to the Weaver Transaction,

 

(a)           The Borrowers shall
have delivered to the Lender an executed original copy of Weaver Asset Purchase
Agreement together with true and correct copies of all exhibits and schedules
thereto and all agreements executed or delivered in connection therewith, all
of which must be in form and substance satisfactory to the Lender in its sole
discretion;

 

(b)           The Borrowers shall
have delivered to the Lender an updated Borrowing Base Certificate reflecting
the consummation of the Weaver Transaction;

 

(c)           No Default or Event
of Default shall have occurred and be continuing or result from the
consummation of the Weaver Transaction; and

 

(d)           100% of the cash
proceeds of the Weaver Transaction to be received by Borrowers shall be paid
directly to the Lender (to be applied to the Obligations in accordance with the
Agreement) at such account as the Lender may direct.

 

(ii)           With respect to the Redfield Transaction,

 

(a)           The Borrowers shall
have delivered to the Lender an executed original copy of Redfield Asset
Purchase Agreement together with true and correct copies of all exhibits and
schedules thereto and all agreements executed or delivered in connection
therewith, all of which must be in form and substance satisfactory to the
Lender in its sole discretion;

 

(b)           The Borrowers shall
have delivered to the Lender an updated Borrowing Base Certificate reflecting
the consummation of the Redfield Transaction;

 

(c)           No Default or Event
of Default shall have occurred and be continuing or result from the
consummation of the Redfield Transaction; and

 

(d)           100% of the cash
proceeds of the Redfield Transaction to be received by Borrowers shall be paid
directly to the Lender (to be applied to the Obligations in accordance with the
Agreement) at such account as the Lender may direct.

 

Upon satisfaction of the foregoing conditions
with respect to each of the Brand Sales (or concurrently therewith), and upon
Borrower’s request, Lender will execute and deliver such lien releases
(including UCC-3 financing statement amendments) as may be necessary to
effectively terminate any and all of Lender’s Liens on the property to be sold
pursuant to the Brand Sales, all at Borrowers’ sole cost and expense.

 

ARTICLE
IV

 

Conditions
Precedent

 

Section 4.01.          Conditions Precedent. This
Amendment shall not be binding upon the Lender until each of the following
conditions precedent have been satisfied in form and substance satisfactory to
the Lender:

 

3

 

(i)            The representations
and warranties contained herein and in the Agreement, as amended hereby, shall
be true and correct in all material respects as of the date hereof as if made
on the date hereof, except for such representations and warranties limited by
their terms to a specific date;

 

(ii)           The Borrowers shall
have delivered to the Lender an executed original copy of this Amendment;

 

(iii)          The Borrowers shall
have delivered to the Lender executed original copies of each of the Consents
and Reaffirmations attached to this Amendment;

 

(iv)          The Borrowers shall
have paid to the Lender all fees, costs, and expenses owed to and/or incurred
by the Lender in connection with this Amendment;

 

(v)           No Default or Event
of Default shall have occurred and be continuing; and

 

(vi)          All proceedings
taken in connection with the transactions contemplated by this Amendment and
all documentation and other legal matters incident thereto shall be satisfactory
to the Lender in its sole and absolute discretion.

 

ARTICLE
V

 

Miscellaneous

 

Section 5.01.          Inventory.  Each Borrower hereby represents and warrants
that after the consummation of each of the Weaver Transaction and the Redfield
Transaction, no Inventory bearing the brands sold in connection therewith will
be held, manufactured or sold by any Borrower.

 

Section 5.02.          Acknowledgment. Each Borrower
hereby represents and warrants that the execution and delivery of this
Amendment and compliance by such Borrower with all of the provisions of this
Amendment:  (a) are within its
powers and purposes; (b) have been duly authorized or approved by such
Borrower; and (c) when executed and delivered by or on behalf of such
Borrower, will constitute valid and binding obligations of the Borrower,
enforceable in accordance with their terms. Each Borrower reaffirms its
obligation to pay all amounts due the Lender under the Loan Documents in
accordance with the terms thereof, as modified hereby.

 

Section 5.03.          Loan Documents Unmodified. Except
as otherwise specifically modified by this Amendment, all terms and provisions
of the Agreement and all other Loan Documents, as modified hereby, shall remain
in full force and effect. Nothing contained in this Amendment shall in any way
impair the validity or enforceability of the Loan Documents, as modified hereby
or alter, waive, annul, vary, affect, or impair any provisions, conditions, or
covenants contained therein or any rights, powers, or remedies granted therein.
Any lien and/or security interest granted to the Lender in the Collateral set
forth in the Agreement or any other Loan Document is and shall remain unchanged
and in full force and effect and the Agreement and the other Loan Documents
shall continue to secure the payment and performance of all of the Obligations
thereunder, as modified hereby, and the Borrowers’ obligations hereunder.

 

Section 5.04.          Parties, Successors and Assigns.
This Amendment shall be binding upon and shall inure to the benefit of each of
the Borrowers, the Lender, and their respective successors and assigns.

 

4

 

Section 5.05.          Counterparts. This Amendment
may be executed in one or more counterparts, each of which when so executed
shall be deemed to be an original, but all of which, when taken together shall
constitute one and the same instrument. A facsimile signature shall be deemed
effective as an original.

 

Section 5.06.          Headings. The headings,
captions and arrangements used in this Amendment are for convenience only and
shall not affect the interpretation of this Amendment.

 

Section 5.07.          Expenses of the Lender. The
Borrowers agree to pay on demand (a) all reasonable costs and expenses
incurred by the Lender in connection with the preparation, negotiation and
execution of this Amendment and the other Loan Documents executed pursuant
hereto and any and all subsequent amendments, modifications, and supplements
hereto or thereto, including, without limitation, the costs and fees of the
Lender’s legal counsel and the allocated cost of staff counsel, and (b) all
costs and expenses reasonably incurred by the Lender in connection with the
enforcement or preservation of any rights under the Agreement, this Amendment
and/or other Loan Documents, including, without limitation, the reasonable
costs and fees of the Lender’s legal counsel, the allocated cost of staff
counsel, and the costs and fees associated with any environmental due diligence
conducted in relation hereto.

 

Section 5.08.          Total Agreement. This Amendment,
the Agreement, and all other Loan Documents shall constitute the entire
agreement between the parties relating to the subject matter hereof, and shall
rescind all prior agreements and understandings between the parties hereto
relating to the subject matter hereof, and shall not be changed or terminated
orally.

 

Section 5.09.          WAIVER OF JURY TRIAL. TO THE
EXTENT NOT PROHIBITED BY APPLICABLE LAW, EACH OF THE BORROWERS AND THE LENDER
IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR
CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AMENDMENT, THE
AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY
ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY LENDER-RELATED PERSON OR
PARTICIPANT, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR
OTHERWISE. WITHOUT LIMITING THE APPLICABILITY OF ANY OTHER PROVISION OF THE
AGREEMENT, THE TERMS OF SECTION 12.3 OF THE AGREEMENT SHALL APPLY
TO THIS AMENDMENT.

 

Section 5.10.          RELEASE. THE BORROWERS EACH
HEREBY REPRESENT AND WARRANT THAT AS OF THE DATE OF THIS AMENDMENT THERE ARE NO
CLAIMS OR OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO THE BORROWERS’
OBLIGATIONS UNDER THE AGREEMENT OR ANY OTHER LOAN DOCUMENT, INCLUDING THIS
AMENDMENT. THE BORROWERS WAIVE AND RELEASE ANY AND ALL SUCH CLAIMS, OFFSETS,
DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE
OF THIS AMENDMENT.

 

THE BORROWERS INTEND THE
ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION THAT
MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542,
WHICH PROVIDES AS FOLLOWS:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE
TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

5

 

THE BORROWERS ACKNOWLEDGE
THAT THEY MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO
THOSE NOW KNOWN OR BELIEVED TO BE TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR
CAUSES OF ACTION, AND AGREE THAT THIS AMENDMENT AND THE ABOVE RELEASE ARE AND
WILL REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR
ADDITIONAL FACTS.

 

[Signature
Pages Follow]

 

6

 

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment
as of the day and year first above written.

 

 

	
   

  	
  “BORROWERS”:

  
	
   

  	
   

  
	
   

  	
  MEADE INSTRUMENTS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SIMMONS OUTDOOR CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CORONADO INSTRUMENTS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “LENDER”:

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert M. Dalton

  
	
   

  	
  Name:

  	
  Robert
  M. Dalton

  
	
   

  	
  Title:

  	
  Vice President

  

 

Signature Page

 

 

CONSENTS AND REAFFIRMATIONS

 

Each of MEADE INSTRUMENTS EUROPE CORP., a California corporation, and
MEADE INSTRUMENTS HOLDINGS CORP., a California corporation, hereby acknowledges
the execution of, and consents to, the terms and conditions of that Fourteenth
Amendment to Amended and Restated Credit Agreement and Limited dated as of April 17,
2008, among MEADE INSTRUMENTS CORP., SIMMONS OUTDOOR CORP., CORONADO
INSTRUMENTS, INC. and BANK OF AMERICA, N.A. (the “Creditor”),
and reaffirms its obligations under (a) that certain Continuing Guaranty
(the “Guaranty”) dated as of September 24,
2001, made by the undersigned in favor of the Creditor, and (b) that
certain Security Agreement (the “Security Agreement”)
dated as of September, 2001, by and between the undersigned and the Creditor. Each
of the undersigned acknowledges and agrees that each of the Guaranty and the
Security Agreement remain in full force and effect and are hereby ratified and
confirmed.

 

 

Dated
as of April 17, 2008.

 

 

	
   

  	
  MEADE INSTRUMENTS EUROPE CORP.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEADE INSTRUMENTS HOLDINGS CORP.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

 

CONSENTS AND REAFFIRMATIONS

 

Each of MTSC HOLDINGS, INC., a California corporation (“MTSC”), MC HOLDINGS, INC., a California corporation (“MC HOLDINGS”), and MEADE CORONADO HOLDINGS CORP., a
California corporation (“MCHC”), hereby
acknowledges the execution of, and consents to, the terms and conditions of
that Fourteenth Amendment to Amended and Restated Credit Agreement and Limited
Consent dated as of April 17, 2008, among MEADE INSTRUMENTS CORP., SIMMONS
OUTDOOR CORP., CORONADO INSTRUMENTS, INC. and BANK OF AMERICA, N.A. (“Creditor”), and reaffirms its obligations under that certain
Continuing Guaranty (the “Guaranty”)
dated as of September 24, 2001 executed in favor of the Creditor and
joined by each of the undersigned pursuant to an Instrument of Joinder, dated
as of (i) October 25, 2002 with respect to MTSC and MC HOLDINGS, and (ii) December 1,
2004 with respect to MCHC (respectively, the “Instrument”).
Each of the undersigned acknowledges and agrees that each of the Guaranty and
Instrument remain in full force and effect and are hereby ratified and
confirmed.

 

 

Dated
as of April 17, 2008.

 

 

	
   

  	
  MC HOLDINGS, INC.,

  
	
   

  	
  a California
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MC
  HOLDINGS, INC.,

  
	
   

  	
  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MEADE CORONADO HOLDINGS CORP.,

  a California corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Ross

  
	
   

  	
  Name:

  	
  Paul E. Ross

  
	
   

  	
  Title:

  	
  Chief Financial OfficerExhibit 10.104

 

BONUS AGREEMENT

 

This Bonus Agreement (this “Agreement”) is entered into effective as of
April 17, 2008, by and between Meade Instruments Corp., a California
corporation (the “Company”), and Robert Davis (“Executive”).

 

R E C I T A L S

 

WHEREAS, the Company desires to sell two of its brands;

 

WHEREAS, Executive has been instrumental in finding potential buyers of
these brands; and

 

WHEREAS, if the Company is able to sell such brands for a certain
purchase price and Executive continues to assist the Company in such effort,
the Company desires to compensate Executive on the terms set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, the parties agree as follows:

 

Section 1.               Definitions.

 

(a)           “Bonus Amount” shall mean One Hundred
Thousand Dollars ($100,000).

 

(b)           “Closing Date” shall mean the last to
occur of the closing date of a Qualified Redfield Transaction or the closing
date of a Qualified Weaver Transaction.

 

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

 

(d)           “Qualified Redfield Transaction” shall
mean the sale of Redfield to a third party for at least Three Million Dollars
($3,000,000) in cash.

 

(e)           “Qualified Weaver Transaction” shall mean
the sale of Weaver to a third party for at least Five Million Dollars
($5,000,000) in cash.

 

(f)            “Redfield” shall mean the Company’s brand
“Redfield” and the trademarks, marketing materials and all other rights and
materials of the Company which relate solely to such brand.

 

(g)           “Weaver” shall mean the Company’s brand “Weaver”
and the inventory, trademarks, marketing materials and all other rights and
materials of the Company which relate solely to such brand.

 

Section 2.               Continuing Employment Requirement. 
In order for Executive to receive the Bonus Amount under this Agreement,
Executive must be employed by the Company on the Closing Date.

 

 

Section 3.                                            Bonus Amount. 
Subject to Section 2, upon the occurrence of the Closing Date,
Executive shall be entitled to receive the amount equal to the Bonus Amount.

 

Section 4.                                            Payment of Bonus Amount. 
The Bonus Amount shall be paid in a lump sum within five days of the
Closing Date.  All taxes and other
deductions required by law shall be deducted from the Bonus Amount.

 

Section 5.                                            Term.  The term of
this Agreement shall end on the earliest of the following (“Agreement
Termination Date”):

 

(i)                                     April 25,
2008;

 

(ii)                                  Redfield is sold in a transaction which
does not qualify as a Qualified Redfield Transaction;

 

(iii)                               Weaver is sold in a transaction which does not qualify
as a Qualified Weaver Transaction; and

 

(iv)                              Executive ceases to be employed by the
Company for any reason.

 

If a Closing Date has not occurred on or before the Agreement
Termination Date, no payments will be made under this Agreement for any reason.

 

Section 6.                                            Section 409A. 
It is intended that (i) each payment or installment of payments
provided under this Agreement is a separate “payment” for purposes of Code Section 409A
and (ii) the payments satisfy, to the greatest extent possible, the
exemptions from the application of Code Section 409A, including those
provided under Treasury Regulations 1.409A-1(b)(4) (regarding short-term
deferrals), 1.409A-1(b)(9)(iii) (regarding the two-times, two year
exception), and 1.409A-1(b)(9)(v) (regarding reimbursements and other separation
pay).  Notwithstanding anything to the
contrary in this Agreement, if the Company determines (i) that on the date
of Executive’s separation from service or at such other time that the Company
determines to be relevant, Executive is a “specified employee” (as such term is
defined under Treasury Regulation 1.409A-1(i)(1)) of the Company and (ii) that
any payments to be provided to Executive pursuant to this Agreement are or may
become subject to the additional tax under Code Section 409A(a)(1)(B) or
any other taxes or penalties imposed under Code Section 409A (“Section 409A
Taxes”) if provided at the time otherwise required under this Agreement, then (A) such
payments shall be delayed until the date that is six (6) months after the
date of Executive’s separation from service with the Company, or such shorter
period that, as determined by the Company, is sufficient to avoid the
imposition of Section 409A Taxes (the “Payment Delay Period”) and (B) such
payments shall be increased by an amount equal to the interest on such payments
for the Payment Delay Period at a rate equal to the prime rate in effect as of
the date the payment was first due (for this purpose, the prime rate will be
based on the rate published from time to time in The Wall Street Journal).  Any payments delayed pursuant to this Section 6
shall be made in a lump sum on the first day of the seventh month following
Executive’s separation from service, or such earlier date that, as determined
by the Company, is sufficient to avoid the imposition of any Section 409A
Taxes.

 

2

 

Section 7.                                            No Assignment. 
The Bonus Amount payable under this Agreement shall not be subject to
anticipation, alienation, pledge, sale, transfer, assignment, garnishment, attachment,
execution, encumbrance, levy, lien, or charge, and any attempt to cause the
Bonus Amount to be so subjected shall not be recognized, except to the extent
required by law.

 

Section 8.                                            No Employment Rights. 
This Agreement is not a contract for employment, shall not confer
employment rights upon Executive and shall not modify the terms of any other
agreement between the Company and Executive.

 

Section 9.                                            Severability. 
If any provision of this Agreement is found, held or deemed by a court
of competent jurisdiction to be void, unlawful or unenforceable under any
applicable statute or other controlling law, the remainder of this Agreement
shall continue in full force and effect.

 

Section 10.                                      Amendment.  This
Agreement may not be amended except with the written agreement of both parties.

 

Section 11.                                      Counterparts.  This
Agreement may be signed in counterparts, and all such counterparts taken
together shall constitute one and the same instrument.

 

[Signature page follows]

 

3

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first above written.

 

	
   

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  MEADE
  INSTRUMENTS CORP., a 

  California corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven
  L. Muellner

  
	
   

  	
  Name:

  	
  Steven L.
  Muellner

  
	
   

  	
  Its:

  	
  President,
  CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “EXECUTIVE”

  
	
   

  	
   

  
	
   

  	
  /s/ Robert Davis

  
	
   

  	
  Robert Davis

  

 

4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]