Document:

exv4w38

Exhibit 4.38

PRIDE INTERNATIONAL, INC.

1993 DIRECTORS’ STOCK OPTION PLAN

Seventh Amendment

WHEREAS, the board of directors (the “Board”) of Pride International, Inc., a Delaware corporation
(“Pride”), adopted on February 16, 1993 the Pride International, Inc. 1993 Directors’ Stock Option
Plan effective on February 22, 1993;

WHEREAS, the Board subsequently adopted the First Amendment to the Plan effective May 22, 1997, the
Second Amendment to the Plan effective December 4, 1997, the Third Amendment to the Plan effective
February 26, 1998, the Fourth Amendment to the Plan effective August 21, 2001, the Fifth Amendment
to the Plan effective December 19, 2001, and the Sixth Amendment to the Plan effective May 12,
2005;

WHEREAS, the stockholders of Pride will be asked to approve and adopt at the Special Meeting of
Stockholders on May 31, 2011 the “Agreement and Plan of Merger,” dated as of February 6, 2011 and
as amended on March 1, 2011, as it may be amended from time to time (the “Merger Agreement”), by
and among Ensco plc (the “Company”), ENSCO International Incorporated, a Delaware corporation and
an indirect, wholly owned subsidiary of Ensco, ENSCO Ventures LLC, a Delaware limited liability
company and an indirect, wholly owned subsidiary of the Company (the “Merger Sub”), and Pride,
pursuant to which the Merger Sub will merge with and into Pride (the “2011 Merger”), with Pride
surviving the 2011 Merger as a wholly owned subsidiary of the Company;

WHEREAS, pursuant to the Merger Agreement, each outstanding share of common stock of Pride (other
than shares held by certain shareholders as described in the Merger Agreement) at the effective
time of the 2011 Merger, as defined in Section 1.1 of the Merger Agreement (the “Effective Time”),
will be converted into the right to receive $15.60 in cash and 0.4778 American Depositary Shares
(“ADSs”), each whole ADS representing one Class A ordinary share of the Company;

WHEREAS, as of the Effective Time, each outstanding option to purchase shares of Pride common stock
granted under the Plan that is outstanding and unexercised immediately prior to the Effective Time
will be assumed by the Company and converted into an option to purchase, on the same terms and
conditions as applied to each such option immediately prior to the Effective Time, ADSs, and each
such option will continue to have the same terms and conditions as applied to each such option
immediately prior to the Effective Time, except that (a) as of the Effective Time, the option as so
assumed and converted will be fully vested and exercisable for that number of whole ADSs equal to
the product of (x) the number of shares of Pride common stock that were purchasable under the
option immediately prior to the Effective Time and (y) the equity compensation exchange ratio (as
defined below) and rounded down to the nearest whole ADS, (b) the per share exercise price under
such assumed option shall be adjusted by dividing

 

 

the per share exercise price under such Pride stock option immediately prior to the Effective Time
by the equity compensation exchange ratio (which is the sum of (i) 0.4778 and (ii) the quotient
obtained by dividing $15.60 by the average of the closing prices of an ADS for the five consecutive
trading days ending three trading days prior to the closing date of the 2011 Merger, as defined in
Section 1.2 of the Merger Agreement, rounded to the nearest ten thousandth) and rounding up to the
nearest whole cent, (c) the exercise price and/or number of ADSs that may be purchased under the
assumed option will be further adjusted to the extent required for the assumed option to remain
compliant with, or exempt from, the requirements of section 409A of the Internal Revenue Code of
1986, as amended, and (d) the permissible methods of payment of the option purchase price and
withholding taxes provisions under the assumed option will be amended to comply with the U.K.
Companies Act 2006; and

WHEREAS, the Board approved this Amendment to the Plan during its meeting held on May 19, 2011, to
become effective as of, and only as of, the Effective Time, to reflect the provisions of the Merger
Agreement and the effect of the 2011 Merger on the Plan;

NOW, THEREFORE, in consideration of the premises and the covenants herein contained, the Plan is
amended as of the Effective Time as follows:

	1)	 	Article I is amended to add Section 1.4 as follows:
	 
		 	1.4 The Plan was assumed and adopted by Ensco plc, a public limited company incorporated
under the laws of England and Wales, as of the effective time of the merger between the
Company and Ensco plc (the “Effective Time”). All subsequent references in this Plan to
Company shall be to Ensco plc or any successor thereto, unless the context otherwise
requires, and all provisions of this Plan shall be consistently interpreted and applied.
Similarly, all subsequent references to the Board of Directors shall be to the Board of
Directors of Ensco plc and all subsequent references to Directors shall be to members of the
Board of Directors of Ensco plc, unless the context otherwise requires, and all provisions
of this Plan shall be consistently interpreted and applied.

	2)	 	Section 2.1 is amended to add the following sentence at the end of the section:
	 
	 	 	All subsequent references in this Plan to Shares shall be read and considered to be
references to American depositary shares (“ADSs’”) which represent Class A ordinary shares
in the Company, nominal value US$0.10 per share, and evidenced by an American depositary
receipt, unless the context otherwise requires; all references to stock, securities and/or
shares of Pride International, Inc. shall be read and considered to be references to or to
include ADSs, as applicable; and all references (specific or otherwise) to “shareholders of
the Company” shall be read and considered to be references to holders of ADSs, unless the
context otherwise requires, and all provisions of this Plan shall be consistently
interpreted and applied.

	3)	 	Section 2.2 is amended in its entirety to read as follows:

-2-

 

	 	 	ADSs used to satisfy the exercise of Options that are assumed by the Company in connection
with the merger between Pride International, Inc. and the Company may be authorized but
unissued ADSs or, if the Committee so determines, any ADSs held in reserve by a Subsidiary.

	4)	 	Section 3.1 is amended in its entirety to read as follows:
	 
	 	 	Responsibility and authority to administer and interpret the provisions of the Plan shall be
conferred upon the Committee which, as of the Effective Time, shall consist of the
Nominating, Governance and Compensation Committee of the Company’s Board of Directors, or
such other Committee as may be appointed by the Board of Directors from time to time, which
shall be comprised solely of two or more persons who are Disinterested Directors, as defined
in the Ensco International Incorporated 2005 Long-Term Incentive Plan (As Revised and
Restated on December 22, 2009 and As Assumed by the Company as of December 23, 2009), as
amended from time to time. The Board of Directors shall assume any or all of the powers and
responsibilities prescribed for the Committee with respect to Options held by Directors, and
to that extent, the term “Committee” as used herein shall also be applicable to the Board
(except as used in Section 3.5 below). The authority exercised by the Committee in
connection with the Plan is subject to any applicable provisions of the Act.

	5)	 	Section 3.3 is amended to add the following sentences at the end of the section:
	 
	 	 	The preceding sentence applies to the fullest extent permitted by applicable law. Nothing
herein shall exempt a director of a company (to any extent) from any liability that would
otherwise attach to him or her in connection with any negligence, default, breach of duty or
breach of trust in relation to the company. Moreover, the Company does not make any
indemnity in respect of:

	 	A.	 	any claim brought against a director of the Company or of any Associated
Company (for purposes of this Section 3.3 only, a “Director”) brought by the Company or
an Associated Company for negligence, default, breach of duty or breach of trust;
	 
	 	B.	 	any liability of a Director to pay: (1) a fine imposed in criminal proceedings;
or (2) a sum payable to a regulatory authority by way of a penalty in respect of
non-compliance with any requirement of a regulatory nature (however arising);
	 
	 	C.	 	any liability incurred by a Director: (1) in defending any criminal proceedings
in which he or she is convicted; (2) in defending any civil proceedings brought by the
Company or an Associated Company in which judgment is given against him or her; or (3)
in connection with any application under Section 661(3) or (4) of the Act or Section
1157 of the Act in which the court refuses to grant the Director relief.

-3-

 

	6)	 	For purposes of this Section 3.3, “company” means a company formed and registered under the
Act, references to a conviction, judgment or refusal of relief are to the final decision in
the relevant proceedings which shall be determined in accordance with Section 234(5) of the
Act and references to an “Associated Company” are to an associated company of the Company
within the meaning of the Act.

	7)	 	Section 5.3 is amended in its entirety to read as follows:

     5.3 Upon the exercise of an Option granted hereunder, the Company shall cause the purchased
ADSs to be issued only when it shall have received the aggregate purchase price (the “Exercise
Price”) which may be paid (i) in cash or by check payable and acceptable to the Company or its
designee, (ii) subject to the approval of the Committee, by authorizing the Company or its
designee to withhold from the ADSs to be issued upon any exercise of an Option, a number of ADSs
having an aggregate Fair Market Value on the date of exercise that is not greater than the
aggregate Exercise Price for the ADSs with respect to which the Option is being exercised and by
paying any remaining amount of the Exercise Price as provided in (i), or (iii) by way of a cashless
exercise pursuant to which the optionee instructs the Company’s designee to sell some or all of the
ADSs subject to the exercised portion of the Option and deliver promptly to the Company the amount
of the sale proceeds sufficient to pay the Exercise Price. Payment instruments will be received
subject to collection. The Committee may adopt additional rules and procedures regarding the
exercise of Options from time to time, provided that such rules and procedures are not inconsistent
with the provisions of this Section and provided that such rules and procedures are subject to
applicable law.

	8)	 	Article XII is amended to add Section 12.4 as follows:
	 
	 	 	Any Options over ADSs in the Company shall terminate and lapse on the completion of a change
in control, provided that any new or assumed options granted with respect to such Options
shall not terminate or lapse by reason of the completion of any such event.

	9)	 	Article XVI is amended in its entirety to read as follows:

     XVI. WITHHOLDING TAXES

     To the extent that an optionee is subject to withholding of federal, state, or local income
taxes and/or other taxes or social insurance contributions in connection with an Option (the
“Tax-Related Items”), the optionee shall, at such time as the value of any ADSs or other amounts
received pursuant to an Option first becomes includable in the gross income of such optionee for
such Tax-Related Items or the time that a withholding obligation arises for the Company with
respect to the Option, as applicable, pay to the Company or its designee, or make arrangements
satisfactory to the Committee or its designee regarding payment of, any and all such Tax-Related
Items required to be withheld with respect to such income. Without limitation to the above, the
Company or its designee may procure the satisfaction of any withholding obligation of the Company,
in whole or in part, by (i) a portion of the proceeds of a “cashless exercise” arranged

-4-

 

by the Company’s designee, (ii) authorizing the Company’s designee to sell a number of ADSs
with an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy
the statutory prescribed amount of the withholding due or other applicable withholding amount as
determined by the Company, (iii) paying to the Company the amount of Tax-Related Items in cash,
check or other cash equivalent, (iv) having the Company withhold from any cash compensation payable
to the optionee, and/or (v) if approved by the Committee, authorizing the Company or its designee
to withhold from ADSs to be issued pursuant to any exercise of an Option, a number of ADSs with an
aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the
statutory prescribed amount of the withholding due or other applicable withholding amount. The
optionee may elect in advance of the exercise of the Option to have any withholding obligation
satisfied by one of the withholding methods set forth above, subject to approval by the Committee
and compliance with applicable law. If the withholding obligation is satisfied by withholding a
number of ADSs as described in (v) above, for tax purposes, the optionee will be deemed to have
been issued the full number of ADSs subject to the exercised portion of the Option, notwithstanding
that a number of the ADSs are held back solely for the purpose of paying the taxes due as a result
of participation in the Plan. The Company may refuse to honor the exercise of an Option and may
refuse to issue or deliver the ADSs or the proceeds of the sale of ADSs if the optionee fails to
comply with the obligations in connection with Tax-Related Items.

	10)	 	Article XX is amended in its entirety to read as follows:

     XX. GOVERNING LAW

     AS OF THE EFFECTIVE TIME, THE PLAN AND ANY AND ALL OPTION AGREEMENTS EXECUTED IN CONNECTION
WITH OPTIONS GRANTED UNDER THE PLAN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF ENGLAND AND WALES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

	11)	 	The third sentence of Article XIX is amended in its entirety to read as follows:
	 
	 	 	An Option may not be granted while the Plan is suspended or after it is terminated (other
than Options that are assumed by the Company in connection with the merger between Pride
International, Inc. and the Company).

	12)	 	Article XIX is further amended to add the following sentence at the end of the section:
	 
	 	 	No rights shall continue under the Plan after the exercise or expiration date of the last
outstanding Option.

	13)	 	Article XXIII is amended by adding the following new definition (with Section reference not
based on alphabetical order):

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	 	23.9	 	“Act” shall mean the U.K. Companies Act 2006.

	14)	 	Section 23.2 is amended in its entirety to read as follows:
	 
	 	 	“Cause” shall mean (a) the willful commission by a Director of a criminal or other act that
causes or will probably cause substantial economic damage to the Company or a Subsidiary or
substantial injury to the business reputation of the Company or a Subsidiary or (b) the
commission by a Director of an act of fraud in performance of his duties on behalf of the
Company or a Subsidiary or (c) the commission of any other act defined as such in the
Company’s Articles of Association, as amended, or in other constitutional documentation or
under applicable law. For purposes of the Plan, no act, or failure to act, on the
Director’s part shall be considered “willful” unless done or omitted to be done by the
Director not in good faith or without reasonable belief that the Director’s act or omission
was in the best interest of the Company or a Subsidiary.

	15)	 	Section 23.7 is amended in its entirety to read as follows:

     23.7 “Subsidiary” shall mean any corporation or legal entity as to which more than
fifty percent (50%) of the outstanding voting shares, ADSs or interests shall now or
hereafter be owned or controlled, directly by a person, any Subsidiary of such person, or
any Subsidiary of such Subsidiary.

	 	 	 	 	 
	 	PRIDE INTERNATIONAL, INC.

 	 
	 	By:  	/s/ Brady K. Long
 	 
	 	 	Brady K. Long
 Vice President, General Counsel & Secretary 	 

	 	 	 	 	 
	ATTEST:

 	 
	/s/ Elizabeth Wright
 	 
	Name:  	Elizabeth Wright 	 
	Title:  	Assistant Secretary 	 

-6-exv10w1

Exhibit 10.1

STOCK PURCHASE AGREEMENT

     THIS STOCK PURCHASE AGREEMENT (the “Agreement”) is effective as of March 1, 2011 (the
“Effective Date”), between VIDEO DISPLAY CORPORATION, a Georgia corporation (“Seller”), and FI
ACQUISITION LLC, a Georgia limited liability company (“Purchaser”).

     WHEREAS, Seller owns all of the outstanding capital stock (the “Fox Shares”) of Fox
International Ltd., Inc., an Ohio corporation (“Fox”); and

     WHEREAS, Seller wishes to sell to Purchaser, and Purchaser wishes to purchase from Seller, all
of the Fox Shares, on the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises and mutual covenants and conditions contained
in this Agreement and other good and valuable consideration, the receipt, adequacy and sufficiency
of which are hereby acknowledged, the parties agree as follows:

     1. Purchase and Sale of Fox Shares. Seller hereby agrees to sell to Purchaser, and
Purchaser hereby agrees to purchase from Seller, the Fox Shares on the terms and conditions
hereinafter set forth.

     2. Purchase Price and Payment. The total purchase price for the Fox Shares (the
“Purchase Price”) shall be equal to Three Million Five Hundred Twenty-Three Thousand Eight Hundred
Seventy-Seven Dollars ($3,523,877). The Purchase Price shall consist of: (a) Eight Hundred
Thousand (800,000) shares of Seller’s common stock, no par value (the “VDC Shares”), with a value
of Three Million Two Hundred Seventy-Two Thousand Dollars ($3,272,000), based on the February 22,
2011 closing price of $4.09 per share, as quoted on NASDAQ; and (b) Two Hundred Fifty-One Thousand
Eight Hundred Seventy-Seven Dollars ($251,877) payable in cash or other immediately available funds
(the “Cash Payment”). The Purchase Price is equal to the net book value shown on the February 28,
2011 audited financial statements of Fox, which indicate total assets of $6,408,589 and liabilities
not exceeding $2,884,712, as set forth more fully on attached Exhibit A.

     3. Closing. The transfer of ownership of the Fox Shares and payment of the Purchase
Price shall be deemed to take place for accounting purposes on March 1, 2011, to coincide with the
start of the fiscal year of Seller. As soon as practicable after the Effective Date, Purchaser
shall promptly deliver to Seller the Cash Payment and all certificates representing the VDC Shares,
and Seller shall promptly deliver to Purchaser all certificates representing the Fox Shares, in
each case duly endorsed in blank or accompanied by a duly executed stock transfer power.

     4. Profit Participation. For a period of sixty (60) days after the Effective Date
(the “Profit Participation Period”), Seller shall be entitled to one-half (1/2) of all net profits
from any sale by Purchaser of all or substantially all of the assets or stock of Fox, provided that
such sale must be consummated within the Profit Participation Period.

     5. Representations and Warranties of Seller. Seller represents and warrants to
Purchaser as follows:

 

 

          (a) Standing. Seller is a corporation duly incorporated, validly existing and in good
standing under the laws of the State of Georgia. Seller is duly authorized to conduct business and
is in good standing under the laws of each jurisdiction where such qualification is required.

          (b) Authorization. Seller has the right, power and authority to execute, deliver and
perform this Agreement and to consummate the transactions contemplated herein. The execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated
herein have been duly and validly authorized by all necessary corporate action on the part of
Seller. This Agreement is, and any other documents and instruments required hereby will be, when
executed and delivered by the parties, the legal, valid and binding obligations of Seller,
enforceable against Seller in accordance with their respective terms.

          (c) Fox Shares Valid. The Fox Shares are and shall be validly issued, fully paid and
non-assessable and constitute all of the issued and outstanding equity interests of Fox. Without
limiting the generality of the foregoing, all of the formerly issued and outstanding shares of Fox
International Limited, Inc., an Ohio corporation, have been duly canceled.

          (d) Ownership of Fox Shares. Seller is the owner of the Fox Shares free and clear of
all liens, charges, claims, encumbrances and restrictions; Seller has full power to transfer the
Fox Shares to Purchaser; and Seller has obtained all necessary approvals and consents to effectuate
the sale of the Fox Shares to Purchaser.

          (e) No Violation. The execution and performance of this Agreement do not violate,
result in the breach of, or constitute a default under any applicable law or regulation, the
Articles of Incorporation or Bylaws of Seller, or any order, judgment or decree of any court or
governmental agency.

     6. Representations and Warranties of Purchaser. Purchaser represents and warrants to
Seller as follows:

          (a) Standing. Purchaser is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Georgia. Purchaser is duly authorized
to conduct business and is in good standing under the laws of each jurisdiction where such
qualification is required.

          (b) Authorization. Purchaser has the right, power and authority to execute, deliver
and perform this Agreement and to consummate the transactions contemplated herein. The execution,
delivery and performance of this Agreement and the consummation of the transactions contemplated
herein have been duly and validly authorized by all necessary corporate action on the part of
Purchaser. This Agreement is, and any other documents and instruments required hereby will be,
when executed and delivered by the parties, the legal, valid and binding obligations of Purchaser,
enforceable against Purchaser in accordance with their respective terms.

2

 

          (c) Restrictions on Transferability. Purchaser agrees that any certificate
representing the Fox Shares, and any replacement certificate therefor, will bear a restrictive
legend on the reverse of the certificate in substantially the following form:

The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended (the “Act”),
or any applicable state securities laws. The securities may not be
sold, transferred or assigned in the absence of an effective
registration statement for the securities under the Act or
applicable state securities laws, or an opinion of counsel,
satisfactory in form, substance and scope to the issuer of the
securities, that registration is not required under the Act or
applicable state securities laws.

          (d) No Violation. The execution and performance of this Agreement do not violate,
result in the breach of, or constitute a default under any applicable law or regulation, the
Articles of Organization or Operating Agreement of Purchaser, or any order, judgment or decree of
any court or governmental agency.

          (e) Due Diligence Inspection. Purchaser has had full and complete access to all
material financial, operating and legal information concerning the business and operations of Fox,
and is purchasing the Fox Shares with knowledge of all such material information. Purchaser agrees
to not assert any claim of any nature whatsoever, including claims of fraud, that Purchaser may
have against Seller if Purchaser suffers any adverse consequence, whether monetary or otherwise, as
a result of the transactions contemplated herein.

     7. Indemnification.

          (a) Survival. All representations, warranties, agreements, covenants and obligations
made or undertaken by each party in this Agreement or in any document or instrument executed and
delivered pursuant hereto are material, have been relied upon by the other party and shall survive
the consummation of the transactions contemplated in this Agreement.

          (b) Agreement to Indemnify. Each party (for purposes of this Section, the
“Indemnitor”) agrees to indemnify and hold the other party, its successors and assigns
(collectively, the “Indemnitee”), harmless from and against all liability, loss, damage, claim or
expense of any kind whatsoever (including reasonable attorneys’ fees and costs) that may be
sustained, suffered, or incurred by the Indemnitee that arises from or is in any way connected
with: (i) any misrepresentation by the Indemnitor contained in this Agreement or in any document or
instrument executed and delivered pursuant hereto, or any misrepresentation in or omission from any
instrument furnished or to be furnished by the Indemnitor hereunder; and (ii) the breach of any
representation, warranty and/or covenant made by the Indemnitor in this Agreement or any other
agreement delivered in connection with this transaction.

     8. General.

          (a) Assignment. This Agreement may not be assigned by either party without the prior
written consent of the other party.

3

 

          (b) Notices. All communications and notices required or permitted under this
Agreement shall be in writing and shall be deemed to have been given when delivered personally or
by messenger or by overnight delivery service, or when mailed by certified United States mail,
postage prepaid, return receipt requested, addressed as follows:

	 	 	 	 	 

	 

	 	If to Seller:
	 	Video Display Corporation
	 

	 	 	 	1868 Tucker Industrial Drive
	 

	 	 	 	Tucker, Georgia 30084
	 

	 	 	 	Attn: Greg Osborne
	 
	 	 	 	 
	 

	 	If to Purchaser:
	 	FI Acquisition LLC
	 

	 	 	 	1868 Tucker Industrial Drive
	 

	 	 	 	Tucker, Georgia 30084
	 

	 	 	 	Attn: Ronald D. Ordway

or to such other address as a party designates by notice in writing to the other party in the
manner provided by this Section.

          (c) Governing Law. This Agreement shall be construed and governed by the substantive
laws of the State of Georgia, without regard to conflicts of law principles.

          (d) Amendments. This Agreement may only be amended or modified by a writing executed
by all of the parties.

          (e) Further Action. The parties shall execute and deliver all documents, provide all
information and take or refrain from taking action as may be necessary or appropriate to achieve
the purposes of this Agreement.

          (f) Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the other provisions, and this Agreement is to be construed in all
respects as if it had not contained the invalid or unenforceable provision.

          (g) Binding Agreement. Subject to the restrictions on transferability set forth in
this Agreement, this Agreement shall be binding upon and shall inure to the benefit of the parties
and their respective legal representatives, heirs, successors and assigns.

          (h) Headings; Gender; Number. The headings and captions in this Agreement are for
convenience and identification purposes only, are not an integral part of this Agreement, and are
not to be considered in the interpretation of any part of this Agreement. When the context so
requires, the masculine, feminine and neuter genders may be used interchangeably and the singular
may include the plural and vice versa.

          (i) Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall be deemed an original but all of which taken together shall constitute one and the same
instrument. Facsimile and electronic executions and deliveries shall have the full force and
effect of original signatures.

4

 

     IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the Effective
Date.

	 	 	 	 	 
	 	SELLER:

Video Display Corporation

 	 
	 	By:  	 	 
	 	 	Its: 
	 
	 	 	 	 
	 
	 	PURCHASER:

FI Acquisition LLC

 	 
	 	By:  	 	 
	 	 	Ronald D. Ordway, Manager 	 
	 	 	 	 

5

 

	 	 	 	 	 

Exhibit A

Purchase Price Calculation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Excl	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	InterComp	 	 	Mgnt Bid	 	 	Mgnt Bid	 	 	 	 	 	 	Mgnt Bid	 
	 	 	10th	 	 	10th	 	 	10th	 	 	11th	 	 	12th	 	 	12th	 
	 	 	Period	 	 	Period	 	 	Period	 	 	Period	 	 	Period	 	 	Period	 
	 	 	 
	ASSETS
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cash
	 	 	406,122	 	 	 	406,122	 	 	 	406,122	 	 	 	67,766	 	 	 	(5,784	)	 	 	(5,784	)
	Accounts Receivable
	 	 	1,378,394	 	 	 	1,378,394	 	 	 	1,378,394	 	 	 	1,298,068	 	 	 	1,143,405	 	 	 	1,143,405	 
	Intercompany Trade Rec.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for A/R
	 	 	(26,000	)	 	 	(26,000	)	 	 	(500,000	)	 	 	(500,000	)	 	 	(342,000	)	 	 	(342,000	)
	Inventory
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Raw Materials
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Work in Process
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Finished Goods
	 	 	6,210,673	 	 	 	6,210,673	 	 	 	6,210,673	 	 	 	6,153,422	 	 	 	5,954,471	 	 	 	5,954,471	 
	Reserve for Inventory
	 	 	(1,769,496	)	 	 	(1,769,496	)	 	 	(3,269,496	)	 	 	(2,809,498	)	 	 	(1,674,662	)	 	 	(1,674,662	)
	Cost in Excess of Billings
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Prepaid expenses
	 	 	160,909	 	 	 	160,909	 	 	 	160,909	 	 	 	184,261	 	 	 	125,932	 	 	 	125,932	 
	Income taxes refundable
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	Total Current Assets
	 	 	6,360,603	 	 	 	6,360,603	 	 	 	4,386,602	 	 	 	4,394,019	 	 	 	5,201,362	 	 	 	5,201,362	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property, Plant & Equipment
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Land
	 	 	249,814	 	 	 	249,814	 	 	 	150,000	 	 	 	150,000	 	 	 	249,814	 	 	 	150,000	 
	Buildings
	 	 	1,974,831	 	 	 	1,974,831	 	 	 	900,000	 	 	 	900,000	 	 	 	1,977,331	 	 	 	900,000	 
	Machinery & Equipment
	 	 	5,674,665	 	 	 	5,674,665	 	 	 	300,000	 	 	 	800,000	 	 	 	5,705,700	 	 	 	134,397	 
	 	 	 
	 
	 	 	7,899,310	 	 	 	7,899,310	 	 	 	1,350,000	 	 	 	1,850,000	 	 	 	7,932,845	 	 	 	1,184,397	 
	Less Accumulated
Depreciation
	 	 	(6,692,415	)	 	 	(6,692,415	)	 	 	0	 	 	 	0	 	 	 	(6,748,448	)	 	 	0	 
	 	 	 
	 
	 	 	1,206,895	 	 	 	1,206,895	 	 	 	1,350,000	 	 	 	1,850,000	 	 	 	1,184,397	 	 	 	1,184,397	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Investments
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Goodwill
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intangibles
	 	 	0	 	 	 	0	 	 	 	1,830,895	 	 	 	832,616	 	 	 	 	 	 	 	 	 
	Other Assets
	 	 	22,830	 	 	 	22,830	 	 	 	22,830	 	 	 	22,830	 	 	 	22,830	 	 	 	22,830	 
	Intercompany inv / adv
	 	 	(4,994,028	)	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	Intercompany rec / pay
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Assets
	 	 	2,596,299	 	 	 	7,590,327	 	 	 	7,590,327	 	 	 	7,099,465	 	 	 	6,408,589	 	 	 	6,408,589	 
	 	 	 

A-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Excl	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	InterComp	 	 	Mgnt Bid	 	 	Mgnt Bid	 	 	 	 	 	 	Mgnt Bid	 
	 	 	10th	 	 	10th	 	 	10th	 	 	11th	 	 	12th	 	 	12th	 
	 	 	Period	 	 	Period	 	 	Period	 	 	Period	 	 	Period	 	 	Period	 
	 	 	 
	LIABILITIES
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Accounts payable
	 	 	2,263,851	 	 	 	2,263,851	 	 	 	2,263,851	 	 	 	1,896,021	 	 	 	1,656,509	 	 	 	1,656,509	 
	Intercompany Trade Pay
	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Accrued liabilities
	 	 	512,962	 	 	 	512,962	 	 	 	512,962	 	 	 	527,392	 	 	 	578,711	 	 	 	578,711	 
	Billings in excess of cost
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	0	 
	Current Lines of Credit
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	0	 
	Notes payable to officers
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	0	 
	Income taxes payable
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	0	 
	Current portion of L/T debt
	 	 	202,478	 	 	 	202,478	 	 	 	202,478	 	 	 	215,116	 	 	 	199,118	 	 	 	199,118	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	 	 	 	 	 	 	 	 	 	 
	Total current liabilities
	 	 	2,979,292	 	 	 	2,979,292	 	 	 	2,979,292	 	 	 	2,638,529	 	 	 	 	 	 	 	2,434,338	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Line of credit — #1
	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	 	 	 	 	0	 
	L/T Debt — #1
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	L/T Debt — #2
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	L/T Debt — #3, etc.
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	Financing lease obligation
	 	 	217,218	 	 	 	217,218	 	 	 	217,218	 	 	 	213,972	 	 	 	187,479	 	 	 	187,479	 
	Note payable to officer
	 	 	276,966	 	 	 	276,966	 	 	 	276,966	 	 	 	240,437	 	 	 	262,895	 	 	 	262,895	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Liabilities
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3,092,938	 	 	 	2,884,712	 	 	 	2,884,712	(a)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Minority interest
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	4,006,527	 	 	 	3,523,877	 	 	 	3,523,877	(b)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Shareholder’s Equity
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Common stock
	 	 	50,000	 	 	 	50,000	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Additional paid in capital
	 	 	2,066,805	 	 	 	2,066,805	 	 	 	4,116,851	 	 	 	 	 	 	 	3,523,877	 	 	 	 	 
	Retained earnings
	 	 	(1,744,400	)	 	 	3,249,629	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Current P/L
	 	 	(1,249,583	)	 	 	(1,249,583	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Stockholder’s Equity
	 	 	(877,177	)	 	 	4,116,851	 	 	 	4,116,851	 	 	 	 	 	 	 	3,523,877	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	2,596,299	 	 	 	7,590,327	 	 	 	7,590,327	 	 	 	 	 	 	 	3,974,251	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	(a)	 	Assumption of Liabilities
	 
	(b)	 	Net Balance to VDC from Management

	 	 	 	 	 

	VDC Common Shares: 800,000 shs @ $4.09
	 	$	3,272,000	 
	Cash Payment Reduction in VDC Note to RDO
	 	$	199,351	 
	Cash Payment
	 	$	52,526	 

A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]