Document:

Exhibit 10.1

 

LASER PROJECTION SYSTEMS AGREEMENT

 

BETWEEN

 

ROCKWELL COLLINS, INC.

 

ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS, LLC

 

AND

 

EVANS & SUTHERLAND COMPUTER CORPORATION

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1 -

  	
  SUBJECT
  MATTER AND CONTRACT PRICE

  	
  1

  
	
  ARTICLE 2 -

  	
  DESCRIPTION
  OF LASER PROJECTION SYSTEMS

  	
  1

  
	
  ARTICLE 3 -

  	
  DELIVERY

  	
  2

  
	
  ARTICLE 4 -

  	
  QUALITY
  ASSURANCE, TESTING AND ACCEPTANCE OF WORK

  	
  2

  
	
  ARTICLE 5 -

  	
  PENALTY FOR
  LATE DELIVERY

  	
  3

  
	
  ARTICLE 6 -

  	
  MODIFICATIONS
  AND IMPROVEMENTS

  	
  4

  
	
  ARTICLE 7 -

  	
  GENERAL
  LICENSE

  	
  5

  
	
  ARTICLE 8 -

  	
  FIXED-BASED
  LASER PROJECTION SYSTEM AND MOTION-BASED LASER PROJECTION SYSTEM LICENSES

  	
  10

  
	
  ARTICLE 9 -

  	
  INDEMNITY

  	
  10

  
	
  ARTICLE 10 -

  	
  TERMINATION

  	
  11

  
	
  ARTICLE 11 -

  	
  ASSIGNMENT

  	
  11

  
	
  ARTICLE 12 -

  	
  NOTICES

  	
  11

  
	
  ARTICLE 13 -

  	
  GOVERNING
  LAW; CONSENT TO JURISDICTION

  	
  13

  
	
  ARTICLE 14 -

  	
  INVALID
  PROVISIONS

  	
  13

  
	
  ARTICLE 15 -

  	
  SOFTWARE
  LICENSE

  	
  13

  
	
  ARTICLE 16 -

  	
  INTERPRETATION

  	
  13

  
	
  ARTICLE 17 -

  	
  GUARANTY

  	
  14

  
	
  ARTICLE 18 -

  	
  MISCELLANEOUS

  	
  14

  

 

ii

 

LASER PROJECTION SYSTEMS AGREEMENT

 

This Laser Projection Systems Agreement (this “Agreement”)
is made and entered into as of the 26th day of May, 2006, (the “Effective Date”)
by and among ROCKWELL COLLINS, INC., a Delaware corporation (“Parent”),
ROCKWELL COLLINS SIMULATION & TRAINING SOLUTIONS LLC, a Delaware
limited liability company and indirect wholly-owned subsidiary of Parent (“Buyer”),
and EVANS & SUTHERLAND COMPUTER CORPORATION, a Utah corporation (“Seller”),
and together with Buyer, hereinafter referred to as the “Parties”. Capitalized
terms used herein but not defined shall have the meanings given to such terms
in the APA (as defined below).

 

In consideration of the mutual agreements and
the obligations of the Parties hereinafter expressed, the receipt and
sufficiency of which are acknowledged, Seller and Buyer hereby agree as
follows:

 

ARTICLE 1 - SUBJECT
MATTER AND CONTRACT PRICE

 

1.1            As agreed
under the terms of that certain Asset Purchase Agreement, dated as of
February 7, 2006 (the “APA”), by and between Seller and Parent, the
Parties hereby enter into this Agreement to provide for, among other things,
the license by Seller to Buyer of rights to the Fixed-Based Laser Projection
System and the Motion-Based Laser Projection System (each as defined below).

 

1.2            In
recognition of the efforts undertaken for, and investments made by, Seller
under this Agreement, Parent agrees to (i) pay to Seller, by wire transfer
of immediately available funds, the amount of Two Million Dollars ($2,000,000)
(the “Initial Payment”) upon the effectiveness of the license with respect to
the Fixed-Based Laser Projection System as set forth in Section 8.1, and
(ii) deliver to the Escrow Agent, upon execution of this Agreement, Three
Million Dollars ($3,000,000) (together with the Initial Payment, the “Contract
Price”) to be held by the Escrow Agent in an escrow fund (the “Escrow Fund”)
pursuant to the Escrow Agreement (the “Escrow Agreement”), dated as of the date
hereof, by and between Seller, Parent and the Escrow Agent, which amount (as
may be reduced pursuant to Sections 5.1 and 5.2 or in accordance with the
terms of the Escrow Agreement) shall be released to Seller in two installments
in accordance with the terms of the Escrow Agreement in respect of the
effectiveness of the license with respect to the Motion-Based Laser Projection
System as set forth in Section 8.2.

 

1.3            The Contract
Price excludes all taxes, duties or other levies, which may be imposed. All
taxes, duties or other levies that are imposed shall be shared equally by
Parent and Seller, except for income taxes of Seller, which shall be the sole
responsibility of Seller.

 

ARTICLE 2 - DESCRIPTION
OF LASER PROJECTION SYSTEMS

 

2.1            Seller shall
provide a fixed-based laser projection system that meets or surpasses all
functional and performance specifications contained in Attachment 1 hereto
(the “Fixed-Based Laser Projection System”).

 

2.1.1            Seller shall
perform a demonstration of the prototype Fixed-Based Laser Projection System
(the “Fixed-Based Prototype Laser Projection System”).

 

2.1.2            Seller shall
produce a Fixed-Based Laser Projection System that meets manufacturing
acceptance testing (the “Fixed-Based First Article Laser Projection System”)
in accordance with Section 4.2.

 

2.2            Seller shall
provide a laser projection system that is motion capable that meets or
surpasses all functional and performance specifications contained in
Attachment 2 hereto (the “Motion-Based Laser Projection System”).

 

1

 

2.2.1            Seller shall
perform a demonstration of the prototype Motion-Based Laser Projection System
(the “Motion-Based Prototype Laser Projection System”) in accordance with
Section 4.3.

 

2.2.2            Seller shall
produce a Motion-Based Laser Projection System that meets manufacturing
acceptance testing (the “Motion-Based First Article Laser Projection
System”) in accordance with Section 4.4.

 

2.3            Seller
agrees to provide Buyer with quarterly status reports and verbal question and
answer sessions regarding the Fixed-Based Laser Projection System and the Motion-Based
Laser Projection System, which shall include product status, project
accomplishment, achievement of performance standards, technological challenges
and program schedule status.

 

2.4            Seller
agrees to provide Buyer with a program schedule for the Fixed-Based Laser
Projection System and the Motion-Based Laser Projection System within a
reasonable time after execution of this Agreement.

 

2.5            Seller shall
provide Buyer with a listing of all documentation reasonably necessary for the
installation, operation, testing and support of the Fixed-Based Laser
Projection System and Motion-Based Laser Projection System.

 

2.6            Seller shall
be solely responsible for all costs associated with the research, development,
design, engineering, prototype and first production articles and associated
testing required to provide Buyer with laser projection systems that are fully
compliant with the specifications contained in Attachments 1 and 2 hereto.

 

ARTICLE 3 - DELIVERY

 

3.1            Seller shall
use commercially reasonable efforts to complete the Fixed-Based First
Article Laser Projection System on or before May 31, 2006.

 

3.2            Seller shall
use commercially reasonable efforts to complete the Motion-Based Prototype
Laser Projection System on or before July 1, 2007.

 

3.3            Seller shall
use commercially reasonable efforts to complete the Motion-Based First
Article Laser Projection System on or before December 31, 2007.

 

ARTICLE 4 - QUALITY
ASSURANCE, TESTING AND ACCEPTANCE OF WORK

 

4.1            Seller will
provide and maintain a quality control system in accordance with ISO 9001 for
the work performed under this Agreement. Upon request by Buyer, Seller shall
provide current proof of certification.

 

4.2            Buyer and
Seller will conduct manufacturing acceptance testing of the Fixed-Based First
Article Laser Projection System at Seller’s facilities in accordance with
a mutually developed plan that will test and evaluate the Fixed-Based First
Article Laser Projection System against the specifications contained in
Attachment 1 hereto. Upon completion of such testing, Buyer and Seller
will make a joint determination of system compliance and acceptance. Neither
Buyer nor Seller shall unreasonably withhold, delay or condition its
determination of compliance or noncompliance, as the case may be.

 

4.3            After demonstration
of the Motion-Based Prototype Laser Projection System at Seller’s facilities,
Buyer and Seller will test and evaluate the Motion-Based Prototype Laser
Projection System to ensure compliance with the specifications contained in
Attachment 2 hereto and FAA Level D standards, as in effect on the date of
this Agreement.

 

4.4            Buyer and
Seller will conduct manufacturing acceptance testing of the Motion-Based First
Article Laser Projection System at Seller’s facilities in accordance with
a mutually developed plan that

 

2

 

will
test and evaluate the Motion-Based First Article Laser Projection System
against the specifications contained in Attachment 2 hereto and FAA Level
D standards, as in effect on the date of this Agreement. Upon completion of
such testing, Buyer and Seller will make a joint determination of system
compliance and acceptance. Neither Buyer nor Seller shall unreasonably
withhold, delay or condition its determination of compliance or noncompliance,
as the case may be.

 

4.5            If Seller
tenders nonconforming material, Seller will, at its option, replace or correct
the material, at no increase in the Contract Price.

 

4.6            Seller
agrees to provide to Buyer, by first production article inspection of the
Fixed-Based Laser Projection System and the Motion-Based Laser Projection
System, as applicable, and to maintain for five (5) years thereafter,
design, engineering and technical documentation and data reasonably necessary
to install, operate, test, support and sell the Fixed-Based Laser Projection
System and the Motion-Based Laser Projection System, as applicable. In
addition, if at any time after manufacturing acceptance testing and acceptance
of the Fixed-Based Laser Projection System or the Motion-Based Laser Projection
System, as applicable, such documentation or data is updated, revised or
supplemented, Seller agrees to provide to Buyer reasonably promptly any such
updated, revised or supplemented documentation or data to the extent that it
relates to the Fixed-Based Laser Projection System or the Motion-Based Laser
Projection System as designed and delivered to Buyer.

 

ARTICLE 5 - PENALTY FOR
LATE DELIVERY

 

5.1            If Buyer and
Seller have not completed manufacturing acceptance testing of the Motion-Based
First Article Laser Projection System on or before December 31, 2007,
Parent shall be entitled, out of the Escrow Fund, to (i) Forty-One
Thousand Six Hundred Sixty-Seven Dollars ($41,667) on each of the first four
(4) monthly anniversary dates following December 31, 2007,
(ii) Eighty-Three Thousand Three Hundred Thirty-Three Dollars ($83,333) on
each of the first four (4) monthly anniversary dates following
April 30, 2008, and (iii) One Hundred Twenty-Five Thousand Dollars
($125,000) on each of the first four (4) monthly anniversary dates
following August 31, 2008, in each such case if Buyer and Seller have not
completed manufacturing acceptance testing of the Motion-Based First
Article Laser Projection System on or before such monthly anniversary
date, except to the extent that such failure arises from any cause or causes
beyond the control of Seller, including acts of critical suppliers beyond the
control of Seller, acts of God, fire, storm, flood, earthquake, governmental
regulation or direction, acts of the public enemy, war, terrorism, rebellion,
insurrection, riot, invasion, strike or lockout, in each case not resulting
from the negligence of Seller (each a “Force Majeure Event”), in which event
the payment date with respect to each such payment shall be postponed by a
number of days equal to the duration of such Force Majeure Event; provided, that, if Buyer and Seller have not completed
manufacturing acceptance testing of the Motion-Based First Article Laser
Projection System on or before December 31, 2008, Parent shall be
entitled, out of the Escrow Fund, to an additional One Million Dollars
($1,000,000) on December 31, 2008, except to the extent that such failure
is caused by a Force Majeure Event, in which event the payment date with
respect to such payment shall be postponed by a number of days equal to the
duration of such Force Majeure Event.

 

5.2            If the
Motion-Based Prototype Laser Projection System has not been demonstrated on or
before December 31, 2008, Parent shall be entitled, out of the Escrow
Fund, to the amount of One Million Dollars ($1,000,000), except to the extent
that such failure is caused by a Force Majeure Event, in which event the
payment date with respect to such payment shall be postponed by a number of
days equal to the duration of such Force Majeure Event.

 

3

 

ARTICLE 6 -
MODIFICATIONS AND IMPROVEMENTS

 

6.1            Buyer may
propose modifications to the Fixed-Based Laser Projection System or the
Motion-Based Laser Projection System at any time. Seller shall review any such
proposals and negotiate with Buyer in good faith with respect thereto to
attempt to reach agreement on reasonable commercial terms, provided that
modifications shall be made only upon mutual written agreement between Buyer
and Seller.

 

6.2            Buyer may
propose improvements to the Fixed-Based Laser Projection System or the
Motion-Based Laser Projection System at any time. Seller shall review any such
proposals and negotiate with Buyer in good faith with respect thereto to attempt
to reach agreement on reasonable commercial terms, provided that improvements
shall be made only upon mutual written agreement between Buyer and Seller.

 

6.3            After
manufacturing acceptance testing and acceptance of the Fixed-Based Laser
Projection System and the Motion-Based Laser Projection System, Seller may, at
its election, incorporate any enhancements, improvements or new capabilities,
designed for, or incorporated into, Seller’s commercial products that were
developed by Seller independently of Buyer into the Fixed-Based Laser
Projection Systems and the Motion-Based Laser Projection Systems supplied to
Buyer, at no additional developmental cost to Buyer. Any other enhancements,
improvements, or new capabilities designed for, or incorporated into, Seller’s
commercial products that were developed by Seller independently of Buyer will
be incorporated into the Fixed-Based Laser Projection System and the
Motion-Based Laser Projection System only to the extent that the commercial
terms upon which such enhancements, improvements or new capabilities are so
incorporated are mutually agreed by Seller and Buyer. Notwithstanding anything
herein to the contrary, Seller will have no obligation to incorporate any
enhancements, improvements or new capabilities into products which have already
been manufactured or delivered. To the extent that Seller incorporates any such
enhancements, improvements or new capabilities into the Fixed-Based Laser
Projection System and the Motion-Based Laser Projection System pursuant to the
first or second sentence of this Section 6.3, Seller will provide Buyer
with any updated design, engineering and technical documentation and data,
including but not limited to drawings, parts lists, bills of materials, and
fabrication instructions, to the extent related to the Fixed-Based Laser
Projection System and the Motion-Based Laser Projection System.

 

6.4            All
modifications and improvements to the laser projectors and all Intellectual
Property associated therewith shall be owned by Seller, regardless of whether
Buyer compensates Seller for creating such modifications or improvements. All
such Intellectual Property shall be deemed Laser Intellectual Property for the
purposes of this Agreement. Seller shall promptly notify Buyer of all such
modifications and improvements in writing, and Seller agrees to meet with Buyer
in person at least once annually, and by telephone at least once quarterly, for
the purpose of discussing such modifications and improvements.

 

4

 

ARTICLE 7 -  GENERAL LICENSE

 

7.1            For purposes
of Articles 7 and 8, the following terms shall have the following
meanings:

 

7.1.1            “Catastrophe
Event” means (i) a Seller Bankruptcy Event; or (ii) the complete
cessation by Seller of its business relating to the design, manufacture and
sale of laser projectors (it being understood and agreed that the failure by
Seller to deliver any products at all under the Laser Supply Agreement for a
period of at least three (3) years after Buyer has submitted and not
withdrawn a purchase order for any products under the Laser Supply Agreement
following manufacturing acceptance testing of the Motion-Based Laser Projector
System shall be deemed to be such a cessation by Seller under this clause (ii),
except to the extent that such failure is caused by a Force Majeure Event, in
which event such three year period shall be extended by a number of days equal
to the duration of such Force Majeure Event).

 

7.1.2            “Exclusive
Laser Fields” means the following fields: 
(i) military and commercial simulation and training (and embedded
simulation and training); and (ii) aircraft flight decks and cabins.

 

7.1.3            “Laser
Intellectual Property” means all existing or future Seller Intellectual
Property covering or relating to laser projectors.

 

7.1.4            “Laser
Technology Escrow” shall have the meaning set forth in Section 7.5.2.

 

7.1.5            “Non-Exclusive
Laser Fields” means the following fields, in each case to the extent not
included in the Exclusive Laser Fields: 
(i) commercial air traffic control (ATC); (ii) military helmet
mounted laser displays; (iii) aircraft test equipment; (iv) military
global positioning systems (GPS); and (v) command and control for military
intelligence, surveillance and reconnaissance (C2ISR).

 

7.1.6            “Seller
Intellectual Property” means all Intellectual Property that is either owned by
Seller or under which Seller has the right to license without the payment of
royalties or other fees to any third party. Notwithstanding the foregoing,
Seller Intellectual Property shall exclude trademarks, service marks, logos,
trade dress, corporate names, and trade names, including the good will
appurtenant thereto, whether statutory or common law, and any and all
registrations and applications to register therefor.

 

7.1.7            “Seller Laser
Projector Business” means all businesses outside of the Exclusive Laser Fields
and the Non-Exclusive Laser Fields.

 

7.1.8            “Seller
Bankruptcy Event” means that Seller has become the subject of a case under
Chapter 7 of the U.S. Bankruptcy Code or any similar liquidation, dissolution,
or debtor relief statute under state or federal law (but excluding any such
statute, including Chapter 11 of the U.S. Bankruptcy Code, providing for
reorganization or restructuring of debtors), and such case shall not have been
dismissed for ninety (90) days.

 

7.2
         Laser
Intellectual Property License.

 

7.2.1            Effective as
of the Effective Time, Seller hereby grants to Buyer, and Buyer hereby accepts,
an exclusive (subject to Sections 7.2.4 and 7.4), perpetual, worldwide,
non-transferable (except as set forth in Section 11.1), fully-paid,
royalty-free right and license, without the right to grant sublicenses (except
to (i) Parent and all direct or indirect subsidiaries of Parent (for so
long as such subsidiary remains a direct or indirect subsidiary of Parent) and
(ii) end-users of software and databases, provided that such sublicenses
are granted solely for the use of, and to the extent reasonably necessary for
such end-user to use, such software and databases and such sublicenses are
subject to Section 7.3.4), under all Laser Intellectual Property to use,
sell, offer for sale, import and export laser projectors in the Exclusive Laser
Fields.

 

5

 

7.2.2            Effective as
of the Effective Time, Seller hereby grants to Buyer, and Buyer hereby accepts,
a non-exclusive, perpetual, worldwide, non-transferable (except as set forth in
Section 11.1), fully-paid, royalty-free right and license, without the
right to grant sublicenses (except to (i) Parent and all direct or
indirect subsidiaries of Parent (for so long as such subsidiary remains a
direct or indirect subsidiary of Parent) and (ii) end-users of software
and databases, provided that such sublicenses are granted solely for the use
of, and to the extent reasonably necessary for such end-user to use, such
software and databases and such sublicenses are subject to Section 7.3.4),
under all Laser Intellectual Property to use, sell, offer for sale, import and
export laser projectors in the Non-Exclusive Laser Fields.

 

7.2.3            Effective
upon the occurrence of a Catastrophe Event, Seller hereby grants to Buyer, and
Buyer hereby accepts a non-exclusive, perpetual, worldwide, non-transferable
(except as set forth in Section 11.1), fully-paid, royalty-free right and
license, without the right to grant sublicenses (except to (i) Parent and
all direct or indirect subsidiaries of Parent (for so long as such subsidiary
remains a direct or indirect subsidiary of Parent) and (ii) end-users of
software and databases, provided that such sublicenses are granted solely for
the use of, and to the extent reasonably necessary for such end-user to use,
such software and databases and such sublicenses are subject to
Section 7.3.4), under all Laser Intellectual Property to make, have made
and modify laser projectors in the Exclusive Laser Fields and the Non-Exclusive
Laser Fields by third party manufacturers approved by Seller (which approval
shall not be unreasonably withheld or delayed).

 

7.2.4            All
exclusive licenses granted under this Agreement are exclusive against all
Persons, including the applicable licensor and its Affiliates; provided, however, that all exclusive licenses and all
rights granted under this Agreement shall be subject to (i) the third
party licenses granted by Seller existing as of the date of this Agreement, and
(ii) any restrictions contained in the third party licenses granted to
Seller as of the date of this Agreement, each of which are set forth on
Schedule 7.2.4 attached hereto and have been made available to Buyer.

 

7.2.5            Following
the date of completion of manufacturing acceptance testing of the Motion-Based
First Article Laser Projection System in accordance with Article 2,
if (i) Buyer fails to place any orders for laser projectors in the Exclusive
Laser Fields for any fifteen (15) month period, (ii) Seller demonstrates
in writing with reasonable detail following such fifteen (15) month period
that customers desire to buy simulators or other products within the Exclusive
Laser Fields using Seller’s laser projectors on terms that are in the aggregate
no more favorable to such customers than the terms offered to Buyer (including
the configuration of the Fixed-Based Laser Projection System or Motion-Based
Laser Projection System, as applicable, volume of purchasing, payment terms,
warranty terms and other contractual terms), and (iii) Buyer fails to
place any orders for laser projectors in the Exclusive Laser Fields for the
three (3) month period following receipt of Seller’s written demonstration
pursuant to clause (ii), the exclusive license under Section 7.2.1 shall
become nonexclusive, except to the extent that such failure is caused by a
Force Majeure Event, in which event such fifteen (15) month period or
three (3) month period, as the case may be, shall be extended by a number
of days equal to the duration of such Force Majeure Event.

 

7.2.6            Seller and
Buyer agree that the licensed rights granted pursuant to this Agreement
(including all licensed know-how and other licensed trade secrets) are “intellectual
property” as defined in 11 U.S.C. 101(35A). Seller and Buyer each intend, and
Seller and Buyer each agree that they will not make any argument to the
contrary in any court of law or equity, that the licenses and related rights
and benefits granted to Buyer pursuant to this Agreement, including the release
of escrow and Buyer’s right to make and have made upon the occurrence of a
Catastrophe Event, shall be entitled to the benefits and protections of
Section 365(n) of Title 11 of the U.S.

 

6

 

Code.
For the purposes of Section 365(n), the “embodiments” of the intellectual
property licensed under this Agreement include (i) the know-how and other
trade secrets of Seller relating to the manufacture of laser projectors,
including the drawings and designs associated with the know-how for manufacture
of the laser projector (including drawings of the circuit boards and chip
design packets) and the methods and technology used to manufacture the laser
projector, and (ii) works of authorship used in connection with the
marketing and promotion of the laser projector.

 

7.3            Enforcement/Other
Restrictions.

 

7.3.1            Enforcement
By Buyer. Buyer shall have the sole power to institute and prosecute suits for
infringement or misappropriation of the Laser Intellectual Property that
relates solely to the Exclusive Laser Fields, and if required by law, Seller
will join as party plaintiff in such suits; provided, that
if Buyer fails to initiate an action to enforce the foregoing Intellectual
Property within ninety (90) days of written notice by Seller, Seller, at its
own expense, shall have the right to file suit against such infringer, in the
name of the Buyer and for Seller’s benefit. All costs and expenses of any such
suits instituted by Buyer or Seller shall be borne by the party who instituted
such suit against the infringer, and such party shall have the right to collect
for its own use all damages, profits and awards of whatever nature recoverable
for such infringement. Each party shall, at the requesting party’s expense,
reasonably cooperate with the other party in any such suit.

 

7.3.2            Enforcement
by Seller. Except as provided in Section 7.3.1, Seller shall have the sole
power to institute and prosecute suits for infringement or misappropriation of
the Laser Intellectual Property in all other instances (including, without
limitation, the sole power to institute and prosecute suits for infringement or
misappropriation of the Laser Intellectual Property that relates (i) to
any and all fields outside the Exclusive Laser Fields and/or (ii) to both
the Exclusive Laser Fields and a field outside the Exclusive Laser Fields) and
if required by law, Buyer will join as party plaintiff in such suits; provided, that if Seller fails to initiate an action to
enforce the foregoing Intellectual Property that relates directly to the
Exclusive Laser Fields within ninety (90) days of written notice by Buyer, the
Buyer, at its own expense and with the consent of Seller (not to be unreasonably
withheld), shall have the right to file suit against such infringer, in the
name of Seller and for Buyer’s benefit. All costs and expenses of any such
suits instituted by Buyer or Seller shall be borne by the party who instituted
such suit against the infringer, and such party shall have the right to collect
for its own use all damages, profits and awards of whatever nature recoverable
for such infringement. Each party shall, at the requesting party’s expense,
reasonably cooperate with the other party in any such suit.

 

7.3.3            Against
Licensees, Sublicensees or Transferees. In the event of a breach by a licensee,
sublicensee or transferee of either party hereto of the exclusivity and/or
field restrictions of the applicable license or sublicense agreement, the party
who learns of such breach shall promptly notify the other party in writing, and
the licensor, sublicensor or transferor, as the case may be, shall take
commercially reasonable actions to stop such breach. If such actions are not
successful in obtaining agreement from such third party to promptly cease such
use within sixty (60) days of notice of such breach, such licensor, sublicensor
or transferor shall, at the aggrieved party’s request, commence appropriate
action, which may include commencing suit, to stop such breach within sixty
(60) days of such request. The aggrieved party may participate in any such
suit, at its own expense, with the applicable licensor, sublicensor or
transferor, and such licensor, sublicensor or transferor shall not settle any
such suit in a manner that would materially adversely affect the aggrieved
party’s exclusive rights without the consent of the aggrieved party. Neither
party shall enter into any license or sublicense agreement whose terms conflict
with the rights of the parties set forth in this Section 7.3.3.

 

7

 

7.3.4            As a
condition to the licenses granted Buyer hereunder, Buyer agrees (and shall
cause its sublicensees to agree) not to decompile, disassemble or otherwise
reverse engineer any laser projector or component thereof delivered by Seller,
or any software or firmware therein. Notwithstanding anything to the contrary,
any license to software granted to Buyer hereunder is for the object code only
and no license is granted (or implied) with respect to the source code, unless
and until the make and have made license is granted pursuant to
Section 7.2.3 and such source code is released pursuant to the escrow
agreement as provided in Section 7.5.3, in which case the license in
Section 7.2.3 shall include a license to such source code under such
license.

 

7.4            Exclusivity.
Except for the licenses granted to Buyer in the Exclusive Laser Fields in this
Agreement and laser projectors manufactured by Seller for Buyer pursuant to the
Supply Agreement, Seller shall not use, sell, offer for sale, import or export
laser projectors in the Exclusive Laser Fields, or license any Person to do so
and Seller hereby represents and warrants that it has not licensed any third
party to use, sell, offer for sale, import or export laser projectors in the
Exclusive Laser Fields. In connection with the foregoing:

 

7.4.1            Seller shall
require that all Persons (other than the U.S. government) who purchase laser
projectors, as a stand-alone product, from Seller agree in writing:
(i) not to use or resell such laser projectors in the Exclusive Laser
Fields; and (ii) to require that all future transferees of such laser
projectors agree in writing not to resell laser projectors into the Exclusive
Laser Fields and to cause such transferees to so agree in writing.

 

7.4.2            Seller shall
require that all Persons to whom Seller grants a license to make or have made
laser projectors agree in writing: (i) not to use or resell laser
projectors in the Exclusive Laser Fields; and (ii) to require that all
sublicensees and future sublicensees of such license agree in writing not to
use or sell laser projectors in the Exclusive Laser Fields and to cause such
sublicensees to so agree in writing.

 

7.4.3            Seller shall
not transfer or pledge as collateral any Laser Intellectual Property without
obtaining the transferee’s or secured party’s written agreement to the terms
and conditions of Sections 7.2, 7.3 and 7.4 of this Agreement. Any transfer or
pledge in violation of the foregoing shall be void ab initio.

 

7.4.4            Buyer shall
require that all Persons (other than the U.S. government) who purchase laser
projectors that were initially purchased from or manufactured by Seller, as a
stand-alone product, from Buyer, Parent or any direct or indirect subsidiaries
of Parent agree in writing: (i) not to use or resell such laser projectors
in the field of the Seller Laser Projector Business; and (ii) to require
that all future transferees of such laser projectors agree in writing not to resell
laser projectors in the field of the Seller Laser Projector Business and to
cause such transferees to so agree in writing.

 

7.4.5            Buyer shall
require that all Persons to whom Buyer, Parent or any direct or indirect
subsidiaries of Parent grants a license to make or have made laser projectors
that utilize the Laser Intellectual Property agree in writing: (i) not to
use or resell laser projectors in the field of the Seller Laser Projector
Business; and (ii) to require that all sublicensees and future sublicensees
of such license agree in writing not to use or sell laser projectors in field
of the Seller Laser Projector Business and to cause such sublicensees to so
agree in writing.

 

7.5            Documentation
and Laser Technology Escrow.

 

7.5.1            Seller shall
grant Buyer reasonable access to all design documentation reasonably necessary
to one of ordinary skill in the art for application development, installation,
testing, operation, sale, system integration and support of laser projectors.

 

8

 

7.5.2            At or prior
to the Closing, Seller shall place into escrow with a recognized escrow agent
mutually acceptable to Seller and Buyer sufficient documentation and data to
enable the manufacture of laser projectors by one of ordinary skill in the art
on behalf of Buyer in the event of a Catastrophe Event, which escrow shall be
updated annually to include documentation and data relating to subsequent
improvements to the technology (“Laser Technology Escrow”). The cost of such
escrow shall be shared equally between the parties.

 

7.5.3            The escrow
agreement governing the Laser Technology Escrow shall provide that, upon the
occurrence of a Catastrophe Event, the Laser Technology Escrow shall be
released to Buyer subject to Section 7.2.3 and procedures set forth in
such escrow agreement agreed upon by the Parties.

 

7.6            Laser
Projectors Outside the Exclusive Laser Fields and the Non-Exclusive Laser
Fields.

 

7.6.1            In the event
that Buyer notifies Seller that Buyer desires to expand its use or sale of
laser projectors into additional lines of business outside of the Exclusive
Laser Fields and the Non-Exclusive Laser Fields, Seller agrees to negotiate in
good faith with Buyer to attempt to reach agreement on the terms and conditions
of a license, supply and/or related agreement between Buyer and Seller with
respect to any such expansion, subject to (i) any exclusive arrangements
Seller has entered into with third parties and (ii) Seller’s good faith
intention to enter the relevant line of business (other than the defense
electronics and commercial aviation markets).

 

7.6.2            In the event
that Seller initiates an expansion of the use or sale of laser projectors into
defense electronics and commercial aviation markets outside of the Exclusive
Laser Fields and the Non-Exclusive Laser Fields, Seller shall promptly notify
Buyer of any such expansion and, upon Buyer’s requests, negotiate in good faith
with Buyer to attempt to reach agreement on the terms and conditions of a
license, supply and/or related agreement between Buyer and Seller with respect
to any such expansion.

 

9

 

ARTICLE 8 - FIXED-BASED
LASER PROJECTION SYSTEM AND MOTION-BASED LASER PROJECTION SYSTEM LICENSES

 

8.1            The
Fixed-Based Laser Projection System shall be deemed to be a laser projector for
the purpose of the licenses granted to Buyer and others in Article 7, and,
upon completion of manufacturing acceptance testing of the Fixed-Based First
Article Laser Projection System in accordance with Article 2, such
licenses in Article 7 shall become effective as to the Fixed-Based Laser
Projection System.

 

8.2            The
Motion-Based Laser Projection System shall be deemed to be a laser projector
for the purpose of the licenses granted to Buyer and others in Article 7,
and, upon completion of manufacturing acceptance testing of the Motion-Based
First Article Laser Projection System in accordance with Article 2,
such licenses in Article 7 shall become effective as to the Motion-Based Laser
Projection System.

 

ARTICLE 9 - INDEMNITY

 

9.1            Seller will
indemnify, defend and hold harmless Buyer, its directors, officers, employees,
agents, customers and each of the heirs, executors, successors, sublicensees
(but only to the extent they are direct or indirect parent, subsidiary or
sister companies of Buyer) and permitted assigns of any of the foregoing
(collectively, the “Buyer Indemnitees”) from and against all claims,
liabilities, demands, damages, or losses (collectively, “Third Party Claims”)
asserting that the Fixed-Based Laser Projection System or the Motion-Based
Laser Projection System (upon completion thereof) licensed herein infringes,
violates or misappropriates any intellectual property rights of any Person
insofar as and solely to the extent that such Third Party Claim is based on a
claim that the infringement or wrongful use is attributable to Buyer’s
application without modification (or combination with other technology) and
which use is in material compliance with the terms of this Agreement.

 

9.2            Should any
portion of the Fixed-Based Laser Projection System or the Motion-Based Laser
Projection System (upon completion thereof) licensed herein become or, in the
Seller’s reasonable opinion, be likely to become the subject of a claim of
infringement, violation or misappropriation of Person’s intellectual property
right, without limiting any of Buyer’s other remedies, Seller at its option and
expense shall either (i) procure for the Buyer the right to continue to
use that portion of the Fixed-Based Laser Projection System or the Motion-Based
Laser Projection System (upon completion thereof), or (ii) replace or
modify that portion of the Fixed-Based Laser Projection System or the
Motion-Based Laser Projection System (upon completion thereof) to avoid the
infringement or misappropriation, in each case to the extent such action can be
effected under commercially reasonable terms.

 

9.3            Except as
provided in Section 9.1, Buyer hereby agrees to indemnify, defend and hold
harmless Seller, its affiliates and their respective successors and assigns,
and its and their respective directors, officers, agents and employees
(collectively, the “Seller Indemnitees”), from and against all Third Party
Claims to the extent any such Third Party Claim arises directly from the use by
Buyer of the Laser Intellectual Property and which use is not in material
compliance with the terms of this Agreement.

 

9.4            The
indemnity provided to any Party herein shall be governed by the procedures for
indemnification set forth in Section 13.3 of the APA, which is
incorporated herein by reference.

 

9.5            Seller’s and
Buyer’s total liability to incur out-of-pocket costs in the defense of Third
Party Claims and to pay damages or awards in any and all Third Party Claims
under this Agreement is limited to Five Million Dollars ($5,000,000) in the
aggregate, and Buyer and Seller, as the case may be, will advance to Seller or
Buyer, as applicable, any amount required to be expended by Seller or Buyer in
excess of that limit.

 

10

 

9.6            Without
limiting Buyer’s and Seller’s remedies under the Supply Agreement, Seller and
Buyer, as the case may be, shall not be liable to Buyer or Seller, as
applicable, for any loss of use, revenue, profit or any special, indirect, incidental
or consequential damages arising from any cause whatsoever in connection with
this Agreement; provided that this
Section 9.6 shall not apply to loss of use, revenue, profit or special,
indirect, incidental or consequential damages that are components of judgment
awards against a member of the Buyer Indemnitees or the Seller Indemnitees, as
the case may be, in actions by third parties to the extent any such judgment
award is subject to indemnification pursuant to Section 9.1 or
Section 9.3, respectively.

 

ARTICLE 10 - TERMINATION

 

10.1      Buyer may at
any time, by written notice to Seller, without prejudice to any other rights or
remedies provided under this Agreement, terminate this Agreement in any one of
the following circumstances:

 

10.1.1      if Seller has
been declared bankrupt, makes an assignment for the benefit of creditors, or is
in receivership; or

 

10.1.2      if Seller
materially fails to deliver the systems or perform the services reasonably
within the times specified herein or any extensions thereof and Seller has not
remedied such failure to perform within a reasonable time thereafter following
receipt of written notice thereof from Buyer.

 

10.2      If this
Agreement is terminated pursuant to this Article, Seller shall have no further
obligations.

 

ARTICLE 11 - ASSIGNMENT

 

11.1      Neither
party will convey, assign or otherwise transfer any of its rights or
obligations under this Agreement without the express written consent of the
other party, except that (i) Buyer may assign all or a portion of its
rights and obligations under this Agreement to a purchaser of all or
substantially all of the assets of the business that utilizes such rights, or
to Parent or any direct or indirect subsidiary of Parent (for so long as such
subsidiary remains a direct or indirect subsidiary of Parent), and
(ii) Seller may assign all or a portion of its rights and obligations
under this Agreement to a purchaser of all or substantially all of the assets
of the Seller Laser Projector Business, provided that, such party agrees in writing
to assume all of Buyer’s or Seller’s obligations, as applicable, under this
Agreement, it being understood that, in the event of an assignment of a portion
of its rights to a purchaser of assets in accordance with clauses (i) and
(ii), the assigning party shall not retain the same rights that are assigned to
such purchaser or assign the same rights to any other purchaser; provided, however, no
assignment of only a portion of Buyer’s rights to a purchaser of assets in
accordance with clause (i) may be made to a purchaser that is a competitor
of Seller. Any conveyance, assignment or transfer requiring the express written
consent of another party to this Agreement which is made without such consent
shall be void ab  initio.
No assignment of this Agreement shall relieve the assigning party of its
obligations hereunder, and all rights and obligations of each party hereunder
shall survive any change of control of such party.

 

ARTICLE 12 - NOTICES

 

12.1      All notices,
requests, claims, demands and other communications required or permitted to be
given under this Agreement will be in writing and will be delivered by hand or
telecopied, e-mailed or sent, postage prepaid, by registered, certified or
express mail or reputable overnight courier service and will be deemed given
when so delivered by hand or telecopied, when e-mail confirmation is received
if delivered by e-mail, or three business days after being so mailed (one
business day in the case of express mail or overnight courier service). All
such notices, requests, claims, demands and other

 

11

 

communications
will be addressed as set forth below, or pursuant to such other instructions as
may be designated in writing by the party to receive such notice in accordance
with this Section 12.1:

 

	
   

  	
   

  	
  (a)

  	
  If to Parent
  or Buyer:

  
	
   

  	
   

  	
   

  	
  Rockwell
  Collins, Inc.

  
	
   

  	
   

  	
   

  	
  400 Collins
  Road N.E.

  
	
   

  	
   

  	
   

  	
  Cedar
  Rapids, Iowa 52498

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Gary R.
  Chadick, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice
  President,

  
	
   

  	
   

  	
   

  	
   

  	
  General
  Counsel and

  
	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
  (319) 295-3599

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
  grchadic@rockwellcollins.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  and to:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Rockwell
  Collins Simulation &

  
	
   

  	
   

  	
   

  	
  Training
  Solutions, LLC

  
	
   

  	
   

  	
   

  	
  22626 Sally
  Ride Drive

  
	
   

  	
   

  	
   

  	
  Sterling,
  Virginia 20164

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Tony Syme

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
  (703) 234-2103

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
  jasyme@rockwellcollins.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  with a copy
  to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Chadbourne &
  Parke LLP

  
	
   

  	
   

  	
   

  	
  30
  Rockefeller Plaza

  
	
   

  	
   

  	
   

  	
  New York,
  New York 10112

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Peter R.
  Kolyer, Esq.

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
  (212) 541-5369

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
  pkolyer@chadbourne.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)

  	
  If to
  Seller:

  	
   

  
	
   

  	
   

  	
   

  	
  Evans &
  Sutherland Computer Corporation

  
	
   

  	
   

  	
   

  	
  600 Komas
  Drive

  
	
   

  	
   

  	
   

  	
  Salt Lake
  City, Utah 84108

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  David
  Bateman

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
  (801) 588-4511

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
  dbateman@es.com

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  with a copy
  to:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Skadden,
  Arps, Slate, Meagher & Flom LLP

  
	
   

  	
   

  	
   

  	
  525
  University Avenue, Suite 1100

  
	
   

  	
   

  	
   

  	
  Palo Alto,
  California 94301

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:

  	
  Marc R.
  Packer

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
  (650) 470-4570

  
	
   

  	
   

  	
   

  	
  Email:

  	
  mpacker@skadden.com

  

 

12

 

ARTICLE 13 - GOVERNING
LAW; CONSENT TO JURISDICTION

 

13.1      This
Agreement will be governed by and construed in accordance with the internal
laws of the State of Delaware applicable to contracts made and to be performed
entirely within such State, without regard to the conflicts of law principles
of such State.

 

13.2      Subject to
Section 15.15 of the Asset Purchase Agreement, each of Buyer and Seller
irrevocably submits to the exclusive jurisdiction of (i) the Court of
Chancery in and for the State of Delaware and the Superior Court in and for the
State of Delaware and (ii) the United States District Court for the
District of Delaware for the purposes of any Action arising out of this
Agreement, any provision hereof or the breach, performance, enforcement,
validity or invalidity hereof (and agrees not to commence any Action relating
thereto except in such courts). Each of Buyer and Seller further agrees that
service of any process, summons, notice or document hand delivered or sent by
U.S. first class mail to such party’s respective address set forth in
Section 12.1 shall be effective service of process for any Action in
Delaware with respect to any matters to which it has submitted to jurisdiction
as set forth in the immediately preceding sentence. Each of Buyer and Seller
irrevocably and unconditionally waives any objection to the laying of venue of
any Action arising out of this Agreement, any provision hereof or the breach,
performance, enforcement, validity or invalidity hereof in (i) the Court of
Chancery in and for the State of Delaware and the Superior Court in and for the
State of Delaware or (ii) the United States District Court for the
District of Delaware, and hereby further irrevocably and unconditionally waives
and agrees not to plead or claim in any such court that any such Action brought
in any such court has been brought in an inconvenient forum. Notwithstanding
the foregoing, each party agrees that a final judgment in any action or
proceeding so brought shall be conclusive and may be enforced by suit on the
judgment in any jurisdiction or in any other manner provided in Law or in
equity.

 

ARTICLE 14 - INVALID
PROVISIONS

 

14.1      If any of
the provisions of this Agreement shall contravene or be invalid, such
contravention or invalidity shall not invalidate the whole Agreement, but the
Agreement shall be construed as if not containing the particular provision or
provisions held to be invalid, and the rights and obligations of the Parties
shall be construed and enforced accordingly.

 

ARTICLE 15 - SOFTWARE
LICENSE

 

15.1      All software
provided under this Agreement requires a license agreement between Buyer and
Seller as part of this Agreement. Buyer hereby agrees and acknowledges to such
license agreement which shall be an attachment to this Agreement.

 

ARTICLE 16 -
INTERPRETATION

 

16.1      The parties
have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement. Any
reference to any Federal, state, local, or foreign Law shall be deemed also to
refer to all rules and regulations promulgated thereunder, unless the
context requires otherwise. For the purposes of this Agreement, (i) words
in the singular shall be held to include the plural and vice
versa and words of one gender shall be
held to include the other gender as the context requires, (ii) the terms “hereof”,
“herein”, and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement, (iii) the word

 

13

 

“including”
and words of similar import when used in this Agreement shall mean “including,
without limitation” and (iv) the word “or” shall not be exclusive.

 

ARTICLE 17 - GUARANTY

 

17.1      Parent
hereby guarantees all of Buyer’s obligations hereunder.

 

ARTICLE 18 -
MISCELLANEOUS

 

18.1      This
Agreement, and documents referenced herein, contains the entire agreement
between Buyer and Seller.

 

18.2      This
Agreement may not be amended, modified or supplemented except by a written
agreement executed by Buyer and Seller.

 

IN WITNESS WHEREOF, the authorized
representatives of the Parties hereto have executed this Agreement on the date
first set forth above.

 

	
  ROCKWELL
  COLLINS, INC.

  	
   

  	
  ROCKWELL
  COLLINS SIMULATION &

  TRAINING SOLUTIONS LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Kent L.
  Statler/ Senior Vice President and 

  General Manager, Rockwell Collins Services

  	
   

  	
  J. Anthony
  Syme / President

  
	
  Name / Title

  	
   

  	
  Name / Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Kent L.
  Statler

  	
   

  	
  /s/ J.
  Anthony Syme

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  May 26, 2006

  	
   

  	
  May 26, 2006

  
	
  Date

  	
   

  	
  Date

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EVANS &
  SUTHERLAND

  	
   

  	
   

  
	
  COMPUTER
  CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  James R.
  Oyler / President and

  Chief Executive Officer

  	
   

  	
   

  
	
  Name / Title

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ James R.
  Oyler

  	
   

  	
   

  
	
  Signature

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  May 26, 2006

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

14

 

Attachment 1

 

Fixed-Based Laser Projection System Specifications

 

15

 

Attachment 2

 

Motion-Based Laser Projection System Specifications

 

16Exhibit 10.2

 

ESCROW AGREEMENT

 

ESCROW
AGREEMENT (this “Agreement”), dated as of May 26, 2006, by and among (i)
ROCKWELL COLLINS, INC., a Delaware corporation (“Buyer”), (ii) EVANS
& SUTHERLAND COMPUTER CORPORATION, a Utah corporation (“Seller”),
and (iii) U.S. BANK NATIONAL ASSOCIATION, as escrow agent (the “Escrow Agent”
and, together with Buyer and Seller, the “Parties” and each a “Party”).  Capitalized terms used but not defined herein
shall have the meanings given to such terms in the Asset Purchase Agreement,
dated as of February 7, 2006, by and between Buyer and Seller (the “Asset
Purchase Agreement”).

 

W I  T  N  E  S
S  E  T  H

 

WHEREAS,
Buyer and Seller have entered into the Asset Purchase Agreement providing for,
among other things, the purchase by Buyer of the Assets and the assumption by
Buyer of the Assumed Liabilities, and setting forth certain covenants and
conditions in respect thereof;

 

WHEREAS,
Section 4.1(a) of the Asset Purchase Agreement provides that Buyer is required
to deposit with the Escrow Agent Seven Million dollars ($7,000,000);

 

WHEREAS,
in connection with the Asset Purchase Agreement, Buyer, Rockwell Collins
Simulation & Training Solutions, LLC, a Delaware limited liability company
and indirect wholly-owned subsidiary of Buyer, and Seller have entered into the
Laser Projection Systems Agreement, of even date therewith;

 

WHEREAS,
Section 1.2 of the Laser Projection Systems Agreement provides that Buyer is
required to deposit with the Escrow Agent Three Million dollars ($3,000,000);
and

 

WHEREAS,
Buyer and Seller desire that the Escrow Agent hold and dispose of such escrowed
monies, and the Escrow Agent is willing to do so, on the terms and conditions
hereinafter set forth.

 

NOW,
THEREFORE, in
consideration of the foregoing and of the mutual covenants hereinafter set
forth, the Parties agree as follows:

 

1.             Appointment.  Buyer and Seller hereby appoint the Escrow
Agent as their escrow agent for the purposes set forth herein, and the Escrow
Agent hereby accepts such appointment solely under the terms and conditions set
forth herein.

 

2.             Establishment
of Escrow Fund.

 

(a)           Pursuant to Section 4.1(a) of
the Asset Purchase Agreement and Section 1.2 of the Laser Projection Systems
Agreement simultaneously with the execution and delivery of this Agreement,
Buyer is depositing in escrow with the Escrow Agent cash in the amount of Ten
Million dollars ($10,000,000) (the “Escrow Amount”) to be held in escrow
pursuant to the

 

 

terms of this Agreement to
satisfy any obligations of the Seller pursuant to Section 4.1(c)(i) and Article
XIII of the Asset Purchase Agreement and Sections 5.1 and 5.2 of the Laser
Projection Systems Agreement.  The Escrow
Amount and any and all interest and earnings thereon shall be collectively
referred to as the “Escrow Fund”. 
The Escrow Agent shall hold and administer the Escrow Fund solely in
accordance with the terms and conditions set forth in this Agreement.

 

(b)           No part of the Escrow Fund may be withdrawn or
distributed from the escrow established hereunder, except as expressly provided
in Section 4 of this Agreement.

 

3.             Reports
on Escrow Fund.

 

(a)   The Escrow Agent shall provide to Buyer and Seller
monthly statements identifying transactions, transfers, payments and holdings
of the Escrow Fund and each such statement shall be deemed to be correct and
final upon receipt thereof by Buyer and Seller unless the Escrow Agent is
notified in writing to the contrary within thirty (30) calendar days of the
date of such statement.

 

(b)   Buyer and Seller acknowledge that regulations of
the Comptroller of the Currency grant Buyer and Seller the right to receive
brokerage confirmations of security transactions as they occur.  Buyer and Seller specifically waive such
notification to the extent permitted by law and acknowledge that Buyer and
Seller will receive periodic cash transaction statements, which will detail all
investment transactions.

 

4.             Distributions
from the Escrow Fund. 
The Escrow Agent is directed to hold and distribute the Escrow Fund in
the following manner:

 

(a)           Joint
Instructions.

 

(i)            Upon
the Escrow Agent’s receipt of written instructions to the Escrow Agent signed
by both Buyer and Seller (a “Joint Instruction”) directing the Escrow
Agent to disburse all or any part of the Escrow Fund, including in resolution
of a Disputed Claim (which Joint Instruction shall set forth the amount to be
disbursed (including whether such disbursement shall be accompanied by any
interest and earnings thereon), the applicable section of the Asset Purchase
Agreement or Laser Projection Systems Agreement for which such amount is being
disbursed (including the specific amount allocated to disbursements made under
the Asset Purchase Agreement or Laser Projection Systems Agreement, as the case
may be), the payee thereof, the date requested for such disbursement and
sufficient details regarding the account to which such disbursement is to be
made), the Escrow Agent will release such amount from the Escrow Fund strictly
in accordance with such written instructions. 
Buyer and Seller each agree to prepare and sign a Joint Instruction that
directs the Escrow Agent to distribute cash held in the Escrow Fund pursuant to
and in accordance with (i) Section 4.1(c)(i) of the Asset Purchase
Agreement, if any payment pursuant to Section 4.1(c)(i) of the Asset Purchase
Agreement is determined to be due and payable following determination of the
Final Closing Net Assets Statement, (ii) Section 5.1 of the Laser Projection
Systems Agreement, if any payments pursuant to Section 5.1 of the Laser
Projection Systems Agreement are determined to be due and payable; (iii)
Section 5.2 of the Laser Projection

 

2

 

Systems Agreement, if any payment pursuant to Section 5.2 of the Laser
Projection Systems Agreement is determined to be due and payable; (iv) pursuant
to paragraph 4(e)(i)(A)(1), if any payment is determined to be due and payable;
and (v) pursuant to paragraph 4(e)(i)(B), if any payment is determined to
be due and payable.  To the extent that
any amount is released from the Escrow Fund to Buyer pursuant to Section
4.1(c)(i) of the Asset Purchase Agreement and Sections 5.1 and 5.2 of the Laser
Projection Systems Agreements, such amount shall be accompanied by interest and
earnings thereon.

 

(ii)           No Joint Instruction shall be
required prior to any releases by the Escrow Agent pursuant to paragraphs
4(e)(i)(A)(2), 4(e)(i)(C) and 4(e)(i)(D) of this Agreement.  Buyer and Seller agree that a copy of this
Agreement provided to the Escrow Agent shall constitute instructions from the
Buyer and the Seller to the Escrow Agent to cause funds to be released in
accordance with paragraphs 4(e)(ii) and 4(e)(iii)in the amounts and on the
dates specified below, pursuant to paragraphs 4(e)(i)(A)(2), 4(e)(i)(C) and
4(e)(i)(D) of this Agreement.

 

(b)           Undisputed
Claim.  Upon any Claim
becoming an Undisputed Claim, the Escrow Agent will release to Buyer cash held
in the Escrow Fund in the amount called for in the corresponding Claim Notice,
and such amount shall be accompanied by interest and earnings thereon; provided
that if the amount of such Undisputed Claim exceeds the amount of cash held in
the Escrow Fund, the Escrow Agent shall release to Buyer all of the cash held
in the Escrow Fund.

 

(c)           Court
Order or Final Arbitration Order.  Upon the Escrow Agent’s receipt of a
certified copy of a purportedly final, non-appealable order of a court of
competent jurisdiction or a final arbitration award issued by a arbitration
tribunal in accordance with the dispute resolution provisions under Section
15.15 of the Asset Purchase Agreement ordering the Escrow Agent to disburse all
or part of the Escrow Fund, the Escrow Agent will make such disbursement from
the Escrow Fund in accordance with such court order or final arbitration order.  The Escrow Agent shall be entitled to rely
upon the certified copy of such order or award without being required to
determine the authenticity or the correctness of any fact stated therein or the
propriety or validity of the service thereof. 
The Escrow Agent may act in reliance upon any instrument or signature
believed by it to be genuine and may assume that any person purporting to give
documents in connection with the provision hereof has been duly authorized to
do so.

 

(d)           Limitations
on Distributions.

 

(i)            All
APA Indemnification Claims shall be subject to the limitations set forth in
Section 13.4 of the Asset Purchase Agreement.

 

(ii)           Under no circumstances shall (A)
the aggregate amount of all distributions by the Escrow Agent to Buyer pursuant
to Laser Projector Claims exceed Three Million dollars ($3,000,000) and all
interest and earnings thereon or (B) the aggregate amount of all distributions
by the Escrow Agent to Buyer pursuant to this

 

3

 

Agreement exceed Ten Million dollars
($10,000,000) and all interest and earnings thereon.

 

(e)           Scheduled
Escrow Releases.

 

(i)            The
Escrow Fund is scheduled to be released to Seller within two business days of four
release dates (individually, a “Scheduled Release Date” and, collectively,
the “Scheduled Release Dates”):

 

(A)          (1) upon demonstration of the Motion-Based Prototype Laser Projection
System (as defined in the Laser Projection Systems Agreement) in accordance
with Section 4.3 of the Laser Projection Systems Agreement and upon the Escrow
Agent receiving a Joint Instruction, or, (2) if later, July 1, 2007 (the “Prototype
Release Date”), One Million dollars ($1,000,000) (the “Prototype Release
Amount”) is scheduled to be released to Seller by the Escrow Agent;

 

(B)           upon completion of the manufacturing acceptance testing of the
Motion-Based First Article Laser Projection System (as defined in the Laser
Projection Systems Agreement) in accordance with Section 4.4 of the Laser
Projection Systems Agreement (the “First Article Inspection Release Date”),
and upon the Escrow Agent receiving a Joint Instruction, Two Million dollars
($2,000,000) (the “ First Article Inspection Release Amount”) is
scheduled to be released to Seller by the Escrow Agent;

 

(C)           on December 31, 2006 (the “December 31, 2006 Release Date”),
Five Million dollars ($5,000,000) (the “December 31, 2006 Release Amount”)
is scheduled to be released to Seller by the Escrow Agent; and

 

(D)          on July 1, 2007 (the “July 1, 2007 Release Date”), Two Million
dollars ($2,000,000) (the “July 1, 2007 Release Amount”) is scheduled to
be released to Seller by the Escrow Agent;

 

the
Prototype Release Amount, First Article Inspection Amount, December 31, 2006
Release Amount and July 1, 2007 Release Amount are referred to herein individually
as a “Scheduled Release Amount” and collectively as the “Scheduled
Release Amounts.”

 

(ii)           Within two (2) business days
after each Scheduled Release Date, the Escrow Agent shall release to Seller an
amount, if any, equal to the Escrow Amount, less the sum of (A) any Post
Closing Adjustment or Claims that have been paid to the Buyer under this
Agreement prior to such Scheduled Release Date, (B) any Post Closing Adjustment
or Claims pending as of such Scheduled Release Date, and (C) the Scheduled Release
Amounts due on the Scheduled Release Dates, if any, that have not occurred as
of such Scheduled Release Date, and all interest and earnings thereon; provided,
however, that no amount shall be released to Seller hereunder until
after the earlier of (x) Buyer’s delivery of the Closing Net Assets
Statement pursuant to Section 4.1(b) of the Asset Purchase Agreement or
(y) the deadline for such delivery thereunder.  Buyer and Seller shall provide the Escrow
Agent joint notice of the earlier to occur of (i) the

 

4

 

delivery of the Closing Net Assets
Statement pursuant to Section 4.1(b) of the Asset Purchase Agreement or (ii)
the expiration of the deadline for delivery of the Closing Net Assets Statement
in accordance with the terms and conditions of the Asset Purchase Agreement.

 

(iii)          Within two (2) business days
after the date on which any pending Post Closing Adjustment (if payable by
Seller) or Claim is resolved (each a “Resolution Date”), and upon the
Escrow Agent receiving Joint Instruction, the Escrow Agent shall release (A) to
Buyer the amount payable to Buyer in connection with such Post Closing
Adjustment or Claim and (B) to Seller an amount, if any, equal to the Escrow
Amount and all interest and earnings thereon, less the sum of (x) any Post
Closing Adjustment or Claims that have been paid to the Buyer under this
Agreement prior to such Resolution Date, (y) any Post Closing Adjustment or
Claims pending as of such Resolution Date, and (z) the Scheduled Release
Amounts due on the Scheduled Release Dates, if any, that have not occurred as
of such Resolution Date.

 

(iv)          The Escrow Fund shall be deemed
closed for all purposes on the Final Release Date.

 

(f)            Definitions.  For purposes hereof, the terms set forth
below shall have the following meanings:

 

“Claim”
shall mean (i) any claim for indemnification pursuant to Section 13.1 of the
Asset Purchase Agreement (an “APA Indemnification Claim”), or (ii) any
claim pursuant to Sections 5.1 or 5.2 of the Laser Projection Systems Agreement
(a “Laser Projector Claim”), for which notice (each such notice, a “Claims
Notice”) has been delivered by Buyer to Seller in accordance with Section
13.3(a) or 13.3(d) of the Asset Purchase Agreement or Sections 5.1 or 5.2 of the
Laser Projection Systems Agreement, as the case may be.  To be valid, each Claims Notice must clearly
specify whether claims asserted therein are APA Indemnification Claims or Laser
Projector Claims.  Buyer shall promptly
provide notice of any Claim to the Escrow Agent.  For purposes of this Agreement, a Claim shall
be deemed “pending” if Buyer has provided notice of such Claim to Escrow
Agent and such Claim has not been paid from the Escrow Fund or otherwise
resolved by Joint Instruction, court order or arbitration order.

 

“Disputed
Claim” shall mean any Claim which Seller shall have disputed in an
Objection delivered to the Escrow Agent, with a copy to Buyer, within thirty
(30) calendar days from receipt by Seller of the corresponding Claims
Notice.  If no Objection is delivered to
the Escrow Agent in such 30-day period, then such Claim shall be deemed an “Undisputed
Claim.”  If Seller withdraws, in
writing delivered to Buyer, its Objection to a Disputed Claim, such Claim shall
be deemed an Undisputed Claim upon delivery by Seller to the Escrow Agent of a
copy of such written withdrawal.

 

“Final
Release Date” means the date upon which all amounts held in the Escrow Fund
are released in accordance with the provisions of this Agreement.

 

“Objection”
shall mean a written objection to a Claim stating in reasonable

 

5

 

detail the basis for such objection.

 

“Post
Closing Adjustment” shall mean, upon determination of the Final Closing Net
Assets Statement in accordance with Section 4.1(b) of the Asset Purchase
Agreement, any reduction in the Purchase Price in accordance with Section
4.1(c)(i) of the Asset Purchase Agreement is determined to be due and payable.
For purposes of this Agreement, a Post Closing Adjustment shall be deemed “pending”
if Buyer has delivered a Closing Net Assets Statement in accordance with
Section 4.1(b) of the Asset Purchase Agreement and the amount of Net Assets on
the Closing Net Assets Statement is less than the Benchmark Amount and such Post
Closing Adjustment has not been paid from the Escrow Fund or otherwise resolved
by Joint Instruction, court order or arbitration order (it being understood
that the amount of any such pending Post Closing Adjustment shall be equal to
the amount of such deficit).

 

5.             Manner
of Distributions.  All disbursements
hereunder to be made in cash shall be made by the Escrow Agent by wire transfer
of immediately available funds to such account(s) as may be designated in
writing to the Escrow Agent by the Party entitled to such payment. All interest
and earnings, if any, attributable to the Escrow Fund or any other amount held
in the Escrow Account pursuant to this Agreement shall be calculated on a pro
rata basis from the initial deposit of the funds into the Escrow Fund to the
date of such disbursement.

 

6.             Escrow
Agent; Investment of Escrow Fund.

 

(a)           The Escrow Agent shall deal with
the Escrow Fund only in conformity with the terms of this Agreement.  In the event the Escrow Agent shall have
received written notice of a dispute between Buyer and Seller, the Escrow Agent
shall have no duty to determine whether a dispute exists between such Parties
or is a bona fide dispute.  The Escrow
Agent shall have no duty to inquire as to the provisions of any agreement other
than this Agreement.  The Escrow Agent
may rely upon and shall not be liable for acting or refraining from acting upon
any written notice, instruction or request furnished to it hereunder and
believed in good faith by it to be genuine and to have been signed or presented
by the proper Party or Parties.  The
Escrow Agent may execute any of its powers and perform any of its duties
hereunder directly or through agents or attorneys appointed with due care and
may consult with counsel, accountants and other skilled persons to be selected
and retained by it.  In the event that
the Escrow Agent shall be uncertain as to its duties or rights hereunder or
shall receive instructions, claims or demands from any Party which, in its
opinion, conflict with any of the provisions of this Agreement, it shall be
entitled to refrain from taking any action and its sole obligation shall be to
keep safely all property held in escrow until it shall be directed otherwise in
writing by all of the other Parties or by a final non-appealable order or
judgment of a court of competent jurisdiction.

 

(b)           The Escrow Agent shall invest
and reinvest the Escrow Fund in any of the following investments:
(i) securities with maturities not later than ninety (90) days from the
date of acquisition of such securities, issued or directly and fully guaranteed
or insured by the United States Government or any agency or instrumentality
thereof; (ii) commercial paper with maturities not later than ninety (90) days
from the date of acquisition of such commercial paper and rated A1/P1 or
better; (iii) money market investments consisting solely of the investments

 

6

 

identified in item (i) or (ii)
above; (iv) certificates of deposit with maturities not later than ninety (90)
days from the date of acquisition of such certificates of deposit and overnight
bank deposits with any domestic commercial bank having capital and surplus in
excess of $5,000,000,000; or (v) institutional money market funds as
approved in writing in advance by Buyer and Seller, including those offered by the
Escrow Agent or any affiliate of the Escrow Agent, in any one or more of the
aforementioned types of instruments.  The
Escrow Agent may make investments permitted by paragraph 6(b) through or from
its own or its parent’s or affiliate’s bond department or trust investment
department.  Any interest received by the
Escrow Agent shall be reinvested as provided in this Section 6(b) and remain in
the Escrow Fund until disbursed in accordance with the terms hereof.  The Escrow Agent shall not be responsible or
liable for any loss suffered in connection with any investment of the funds
held pursuant to this Agreement made by it in accordance with this paragraph
6(b) or realized as a result of the sale of any such investment.

 

(c)           All fees and expenses associated
with this Section 6 shall be paid to the Escrow Agent out of the Escrow
Fund.  Prior to any investment of the
Escrow Fund, Buyer and Seller shall provide the Escrow Agent with written
certification of the respective taxpayer identification numbers or appropriate
foreign taxpayer exemptions of Buyer and Seller, respectively. Failure to
provide such information may incur a penalty and cause the Escrow Agent to be
required to withhold tax on any interest payable hereunder. Any payments of
income shall be subject to applicable United States withholding regulations
then in force.

 

(d)           To help the government fight the
funding of terrorism and money laundering activities, Federal law requires all
financial institutions to obtain, verify and record information that identifies
each person who opens an account.  For a
non-individual person such as a business entity, a charity, a trust or other
legal entity, the Escrow Agent will require documentation to verify its
formation and existence as a legal entity. 
The Escrow Agent may also request identification, licenses and
authorization documents from individuals claiming authority to represent the
entity.

 

7.             No
Creditor Rights.  Buyer and Seller
shall be entitled to payments from the Escrow Funds solely in accordance with
the terms hereof.  No creditor of Buyer
or Seller will have any rights in or to the Escrow Funds.  Accordingly, in order to effectuate the
parties’ intentions under this Agreement, Buyer hereby grants to Seller and
Seller hereby grants to Buyer, a security interest in all of the grantor’s
rights, title and interest in and to the Escrow Funds and any proceeds (as such
term is defined in Section 9-102 of the Uniform Commercial Code) of such funds
so long as the Escrow Funds and/or any such proceeds remain subject to the
terms of this Agreement.  In addition,
Buyer and Seller hereby appoint the Escrow Agent as Buyer’s and Seller’s agent
for possession of the Escrow Funds to perfect Buyer’s and Seller’s respective
security interests therein.  The Escrow
Agent agrees to this appointment and acknowledges that, in connection with the
security interest granted in this Paragraph 7, it is acting as bailee with
respect to such Escrow Funds and/or such proceeds on behalf of Buyer and
Seller.  Buyer and Seller further agree
to take any and all necessary additional steps to perfect and continue
perfection of the security interests granted hereunder.

 

7

 

8.             Succession.

 

(a)           The Escrow Agent may (i) resign
and be discharged from its duties or obligations hereunder by giving at least
thirty (30) calendar days advance notice in writing of such resignation to the
other Parties specifying a date when such resignation shall take effect or (ii)
be removed and be discharged from its duties or obligations hereunder by the
delivery of Joint Instructions to the Escrow Agent specifying a date when such
removal shall take place.  Any corporation
or association into which the Escrow Agent may be merged or converted or with
which it may be consolidated, or any corporation or association to which all or
substantially all the escrow business of the Escrow Agent’s corporate trust
line of business may be transferred, shall be the Escrow Agent under this
Agreement without further action, except where an instrument of transfer or
assignment is required by law to effect such succession, anything herein to the
contrary notwithstanding.

 

(b)           In case the office of the Escrow Agent shall become
vacant for any reason, Buyer and Seller shall appoint a bank or trust company
with an office in Chicago, Illinois, having a net worth (as reflected in its
latest publicly available certified financial statements) in excess of
$500,000,000 as successor Escrow Agent hereunder by an instrument or
instruments in writing executed by Buyer and Seller and delivered to such
successor Escrow Agent, and give notice of such to the retiring Escrow Agent,
whereupon such successor Escrow Agent shall succeed to all rights and
obligations of the retiring Escrow Agent as if this Agreement were originally
executed by such successor Escrow Agent, and the retiring Escrow Agent shall
deliver to such successor Escrow Agent the Escrow Fund.  If no successor shall have been so appointed
and have accepted appointment within thirty (30) days after the giving of such
notice of resignation by the Escrow Agent in accordance with Section 8(a)
above, the retiring Escrow Agent may petition any court of competent
jurisdiction for the appointment of a successor or for other appropriate
relief.  Upon any delivery of the Escrow
Fund under this Section 8, all of the Escrow Agent’s obligations under this
Agreement shall cease and terminate.  The
Escrow Agent’s sole responsibility following thirty (30) calendar days after
its notice of resignation given under this Section 8 shall be to safekeep the
Escrow Fund.

 

9.             Fees.

 

(a)           The Escrow Agent shall charge
fees as set forth in Schedule A hereto (the “Fees”).  One-half of the Fees and all other costs,
charges and fees referred to above shall be paid to the Escrow Agent by Buyer
and one-half of the Fees and all other costs, charges and fees referred to
above shall be paid to the Escrow Agent by Seller.

 

(b)           The Escrow Agent shall charge
any other out-of-pocket expenses, disbursements and advances, including
reasonable attorney’s fees and expenses, incurred or made by the Escrow Agent
in connection with the performance, modification and termination of this
Agreement, all of which shall be paid to the Escrow Agent by the Parties
promptly after they become due.  One-half of such expenses shall be paid
to the Escrow Agent by Buyer and one-half shall of such expenses shall be paid
to the Escrow Agent by Seller.

 

10.           Indemnity.  Buyer and Seller shall severally indemnify, defend and hold harmless the Escrow
Agent and its officers, directors, employees, representatives and agents
against all damages and liabilities, and all expenses, disbursements, and
attorneys’ fees incurred in

 

8

 

connection therewith, which it
in good faith may incur or suffer in connection with or arising out of this
Agreement or its acceptance of its appointment as the Escrow Agent, except for
such liabilities, damages, expenses, disbursements, damages and attorneys’ fees
incurred by reason of the Escrow Agent’s own bad faith, gross negligence or
willful misconduct.

 

11.           Taxes.  Notwithstanding any other provision in this
Agreement to the contrary, for all tax purposes, Seller shall (a) treat itself
as the owner of the Escrow Fund, (b) report all gain incurred as a result of or
attributable to the disbursement, distribution or transfer of any assets that
comprise the Escrow Fund pursuant to the terms of this Agreement and pay all
taxes attributable thereto and (c) report all income, if any, that is earned
on, or derived from, the Escrow Fund as its income in the taxable year or years
in which such income may properly be included, and pay all taxes attributable
thereto.

 

12.           Representations
and Warranties.  Each of the Parties
individually (and only with respect to itself) hereby represents and warrants
as of the date hereof that:

 

(a)           Such Party is an entity duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
organization and has all requisite power and authority to enter into this
Agreement and perform its obligations hereunder.

 

(b)           The
execution, delivery and performance by such Party of this Agreement and the
consummation by such Party of the transactions contemplated hereby have been
duly authorized by all necessary organizational action of the board of
directors or similar governing body of such Party, and no other action on the
part of such Party is necessary for the execution, delivery and performance by
such Party of this Agreement and the consummation by such Party of the
transactions contemplated hereby.  This
Agreement has been duly executed and delivered by such Party and, assuming due
authorization, execution and delivery on behalf of the other Party hereto, is a
legal, valid and binding obligation of such Party, enforceable against such
Party in accordance with its terms, except to the extent that enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws
relating to or affecting creditors’ rights generally and by general equity
principles.

 

9

 

13.           Notices.  All notices, requests, claims, demands and
other communications required or permitted to be given under this Agreement
will be in writing and will be delivered by hand or telecopied, e-mailed or
sent, postage prepaid, by registered, certified or express mail or reputable
overnight courier service and will be deemed given when so delivered by hand or
telecopied, when e-mail confirmation is received if delivered by e-mail, or
three business days after being so mailed (one business day in the case of
express mail or overnight courier service). 
All such notices, requests, claims, demands and other communications
will be addressed as set forth below, or pursuant to such other instructions as
may be designated in writing by the party to receive such notice in accordance
with this Paragraph 13:

 

	
  if to Buyer, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Rockwell
  Collins, Inc.

  400 Collins Road N.E.

  Cedar Rapids, Iowa 52498

  
	
   

  	
   

  	
  Attention:

  	
  Gary R. Chadick, Esq.

  
	
   

  	
   

  	
   

  	
  Senior Vice President,

  
	
   

  	
   

  	
   

  	
  General
  Counsel and

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
  Telephone:

  	
  (319) 295-1000

  
	
   

  	
   

  	
  Telecopy:

  	
  (319) 295-3599

  
	
   

  	
   

  	
  E-mail:

  	
  grchadic@rockwellcollins.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
    with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Chadbourne & Parke LLP

  30 Rockefeller Plaza

  New York, New York 10112

  
	
   

  	
   

  	
  Attention:

  	
  Peter R. Kolyer, Esq.

  
	
   

  	
   

  	
  Telephone:

  	
  (212) 408-5564

  
	
   

  	
   

  	
  Telecopy:

  	
  (212) 541-5369

  
	
   

  	
   

  	
  E-mail:

  	
  pkolyer@chadbourne.com

  
	
   

  	
   

  	
   

  
	
  if
  to the Seller, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Evans & Sutherland Computer Corporation

  600 Komas Drive 

  Salt Lake City, Utah 84108

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
  David Bateman

  
	
   

  	
   

  	
  Telephone:

  	
  (801) 588-1674

  
	
   

  	
   

  	
  Telecopy:

  	
  (801) 588-4511

  
	
   

  	
   

  	
  E-mail:

  	
  dbateman@es.com

  
						

 

10

 

	
   

  	
   

  	
    with
  a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  525 University Avenue,
  Suite 1100

  Palo Alto, California 94301

  
	
   

  	
   

  	
  Attention:

  	
  Marc R. Packer

  
	
   

  	
   

  	
  Telephone:

  	
  (650) 470-4500

  
	
   

  	
   

  	
  Telecopy:

  	
  (650) 470-4570

  
	
   

  	
   

  	
  Email:

  	
  mpacker@skadden.com

  
	
   

  	
   

  	
   

  
	
  if
  to the Escrow Agent, to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. Bank National Association

  209 South LaSalle Street, Suite 300

  Chicago, Illinois 60604

  
	
   

  	
   

  	
  Attention:

  	
  Grace A. Gorka

  
	
   

  	
   

  	
  Telephone:

  	
  (312) 325-8907

  
	
   

  	
   

  	
  Telecopy:

  	
  (312) 325-8905

  
	
   

  	
   

  	
  E-mail:

  	
  grace.gorka@usbank.com

  
					

 

14.           Termination
of this Agreement.  This Agreement
shall terminate upon the Final Release Date in accordance with the provisions
of this Agreement.  Upon any termination
of this Agreement pursuant to this Section 14, this Agreement shall forthwith
become void and of no further force or effect, and no Party shall have any
liability to the other Parties or their respective affiliates, directors,
officers or employees; provided nothing in this Section 14 shall relieve
any Party from any liability for any breach of such Party’s covenants or
agreements contained in this Agreement prior to such termination or for any
breach of such Party’s representations and warranties under this Agreement
prior to such termination.

 

15.           Entire
Agreement.  This Agreement
(including the schedules attached hereto) constitute the entire understanding
and agreement of the Parties with respect to the subject matter hereof and
thereof and supersede all prior agreements and understandings, written or oral,
between the Parties with respect to the subject matter hereof and thereof,
other than in the case of Buyer and Seller which are party to a Confidentiality
Agreement, the Asset Purchase Agreement and any ancillary agreements related
thereto, which shall remain in full force and effect.

 

16.           Assignability.  Neither this Agreement nor any of the rights,
interests or obligations hereunder shall be assigned by any of the Parties
(whether by operation of law or otherwise) without the prior written consent of
the other Parties, except that Buyer may assign any or all of its rights and
interests hereunder to any direct or indirect wholly owned subsidiary of Buyer
and except as described in Section 8 of this Agreement.  Subject to the preceding

 

11

 

sentence, this Agreement shall
be binding upon, inure to the benefit of and be enforceable by the Parties and
their respective successors and assigns.

 

17.           No
Third-Party Beneficiaries. 
Nothing in this Agreement, expressed or implied, shall confer or is
intended to confer on any person other than the Parties or their respective
permitted successors and assigns, any rights, remedies, obligations or
liabilities under or by reason of this Agreement.

 

18.           Amendment;
Waiver.  This Agreement may
be amended, modified and supplemented in any and all respects, but only by a
written instrument signed by all of the Parties expressly stating that such
instrument is intended to amend, modify or supplement this Agreement.  No waiver by any Party of any of the
provisions hereof shall be effective unless explicitly set forth in writing and
executed by the Party so waiving.  Except
as provided in the preceding sentence, no action taken pursuant to this
Agreement, including without limitation, any investigation by or on behalf of
any Party, shall be deemed to constitute a waiver by the Party taking such
action of compliance with any representations, warranties, covenants or
agreements contained herein, or in any documents delivered or to be delivered
pursuant to this Agreement.  The failure
of any Party to assert any of its rights under this Agreement or otherwise
shall not constitute a waiver of those rights. 
The waiver by any Party of a breach of any provisions of this Agreement
shall not operate or be construed as a waiver of any subsequent breach.

 

19.           Section
Headings.  The section
headings contained in this Agreement are for reference purposes only and shall
not affect the meaning or interpretation of this Agreement.

 

20.           Severability.  Any term or provision of this Agreement that
is held by a court of competent jurisdiction or other authority to be invalid,
void or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. 
If the final judgment of a court of competent jurisdiction or other
authority declares that any term or provision hereof is invalid, void or unenforceable,
the Parties agree that the court making such determination shall have the power
to reduce the scope, duration, area or applicability of the term or provision,
to delete specific words or phrases, or to replace any invalid, void or
unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid
or unenforceable term or provision.

 

21.           Governing
Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware
applicable to contracts made and to be performed entirely within such State,
without regard to the conflicts of law principles of such State.

 

22.           Venue.  Subject to Section 15.15 of the Asset
Purchase Agreement, each of Buyer and Seller irrevocably submits to the
exclusive jurisdiction of (i) the Court of Chancery in and for the State of
Delaware and the Superior Court in and for the State of Delaware and (ii) the
United States District Court for the District of Delaware for the purposes of
any Action arising

 

12

 

out of this Agreement, any
provision hereof or the breach, performance, enforcement, validity or
invalidity hereof (and agrees not to commence any Action relating thereto
except in such courts).  Each of Buyer
and Seller further agrees that service of any process, summons, notice or
document hand delivered or sent by U.S. first class mail to such party’s
respective address set forth in Paragraph 13 above shall be effective
service of process for any Action in Delaware with respect to any matters to
which it has submitted to jurisdiction as set forth in the immediately
preceding sentence.  Each of Buyer and
Seller irrevocably and unconditionally waives any objection to the laying of
venue of any Action arising out of this Agreement, any provision hereof or the
breach, performance, enforcement, validity or invalidity hereof in (i) the
Court of Chancery in and for the State of Delaware and the Superior Court in
and for the State of Delaware or (ii) the United States District Court for the
District of Delaware, and hereby further irrevocably and unconditionally waives
and agrees not to plead or claim in any such court that any such Action brought
in any such court has been brought in an inconvenient forum.  Notwithstanding the foregoing, each party
agrees that a final judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment in any jurisdiction or
in any other manner provided in Law or in equity.

 

23.           Counterparts.  This Agreement may be executed in
counterparts, all of which may be delivered by facsimile transmission, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  The
exchange of copies of this Agreement and of signature pages by facsimile
transmission shall constitute effective execution and delivery of this
Agreement as to the Parties and may be used in lieu of the original Agreement
for all purposes.  Signatures of the
Parties transmitted by facsimile shall be deemed to be their original signature
for all purposes.

 

Remainder of page intentionally left blank.

 

13

 

IN WITNESS
WHEREOF, each of Buyer, Seller and the Escrow Agent has caused this Agreement
to be executed by its authorized officer thereunto duly authorized as of the
date first above written.

 

 

ESCROW AGENT:

U.S. BANK NATIONAL ASSOCIATION

 

 

	
  By:
  

  	
  /s/
  Grace A. Gorka

  	
   

  	
   

  
	
  Name:
  

  	
  Grace
  A. Gorka

  	
   

  
	
  Title:

  	
  Vice
  President, Corporate Trust Services

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  BUYER:

  	
   

  
	
  ROCKWELL
  COLLINS, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  Gary R. Chadick

  	
   

  	
   

  
	
  Name:

  	
  Gary
  R. Chadick

  	
   

  
	
  Title:

  	
  Senior
  Vice President, General Counsel and Secretary

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SELLER:

  	
   

  
	
  EVANS
  & SUTHERLAND COMPUTER CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:
  

  	
  /s/
  James R. Oyler

  	
   

  	
   

  
	
  Name:

  	
  James
  R. Oyler

  	
   

  
	
  Title:

  	
  President
  and Chief Executive Officer

  	
   

  
										

 

[Signature Page to Escrow
Agreement]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00104-of-00352.parquet"}]]