Document:

bsdm10q022809ex10-1.htm

    
      

      

    

    Exhibit
10.1

    

    BSD
MEDICAL CORPORATION

    EXCLUSIVE
DISTRIBUTION AGREEMENT

    

    This
Exclusive Distribution Agreement is made and entered into this 14th day of May
2008 by and between Sennewald/Medizin-Technik GmbH,
hereinafter referred to as "DISTRIBUTOR"), a company organized and
existing under the laws of the Federal Republic of Germany and having a
principal place of business at Schatzbogen 86, 81829 Munich, Germany and BSD Medical Corporation, a
Delaware Corporation, (hereinafter referred to as "MANUFACTURER") having a
principal place of business at 2188 West 2200 South, Salt Lake City, Utah 84119
U.S.A.

    

    Recitals

    

    A.  The
MANUFACTURER is the sole owner of all rights. title, and interest in and to
certain inventions, technology, and know-how relating to its hyperthermia cancer
therapy products, namely the BSD 2000 and BSD 500 as well as the tumor ablation
products (MTX-100) to be introduced to the market (hereinafter referred to as
"PRODUCTS") and other applications, and MANUFACTURER has the right to grant
exclusive distributorships thereunder.

    

    B.  DISTRIBUTOR
is now desirous of acquiring from MANUFACTURER an exclusive distributorship to
market and sell the PRODUCTS.

    

    C.  The
MANUFACTURER is willing to grant an exclusive distributorship based upon the
terms and conditions hereafter set forth.

    

    NOW,
THEREFORE, in consideration of the mutual covenants and promises contained
herein, and for good and valuable consideration, the parties hereto intending to
be legally bound agree as follows:

    

    

    Terms
of Agreement

    

    Section 1-- Definitions

    

    
      	
              1.1

            	
              The
      term "TECHNOLOGY" related to hyperthermia and ablation cancer therapy
      products as used in this Agreement, shall mean any confidential or
      proprietary technical information, know-how, trade secrets, written
      documentation, machine readable documentation, detailed drawings, data,
      methods, processes, specifications, quality and inspections standards,
      sales literature, advertising and marketing materials, reports and
      training materials.

            

    

     

    
      	
              1.2

            	
              The
      term "PRODUCTS" as used in this Agreement, shall mean all products, and
      by-products produced by or resulting from the use of any portion of the
      TECHNOLOGY. The term "PRODUCTS" shall specifically include all models of
      the PRODUCTS.

            

    

     

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    Section
2-- Grant of
PRODUCTS exclusive
distributorship

    

    
      	
              2.1

            	
              Subject
      to the other terms and conditions set forth herein, MANUFACTURER hereby
      grants to DISTRIBUTOR the right to sell, and otherwise to commercialize
      the Hyperthermia PRODUCTS for sales in Russia as well as all European
      Countries (with the exception of Poland) (all hereinafter referred to as
      "TERRITORY"). DISTRIBUTOR agrees that it will not make sales of these
      products except in the TERRITORY unless prior authorization is granted on
      specific projects in writing from
MANUFACTURER.

            

    

    

    
      	
              2.2

            	
              Subject
      to the other terms and conditions set forth herein, MANUFACTURER hereby
      grants to DISTRIBUTOR the right to sell, and otherwise to commercialize
      its Tumor Ablation PRODUCTS for sales in Germany, Switzerland and Austria.
      DISTRIBUTOR agrees that it will not make sales of this product except in
      the TERRITORY unless prior authorization is granted on specific projects
      in writing from MANUFACTURER.

            

    

    

    Section 3-- Performance

    

    
      	
              3.1

            	
              DISTRIBUTOR
      covenants that it will in good faith commit itself to a thorough,
      vigorous, and diligent program of exploiting the PRODUCTS hereof in
      accordance with the best business customs of the industry, exerting its
      best efforts, so that full utilization of the PRODUCTS will result. This
      shall include exposure of PRODUCTS to hospitals, medical clinics,
      individual medical practitioners, and appropriate medical equipment
      subdealers, outlets and markets throughout the country(s) in section
      2.

            

    

    

    
      	
              3.2

            	
              DISTRIBUTOR
      further agrees to commit to annual sales projections established in
      writing by mutual agreement by the two parties. In the event that
      DISTRIBUTOR does not, at any future date, fulfill its projected sales or
      shows lack of progress to that end, MANUFACTURER shall have the right, at
      its option to terminate this Agreement pursuant to section 6. Failure to
      reach agreement on sales projections may also be cause for
      termination.

            

    

    

    
      	
              3.3

            	
              DISTRIBUTOR
      further agrees to provide technical service and support for the PRODUCTS
      sold in the TERRITORY. To this end, DISTRIBUTOR will comply with the
      training requirements outlined in section 12 and further agrees to order
      and keep in stock sufficient spare parts to be able to service equipment
      in a timely manner. Failure to provide this support and/or comply with the
      training requirements shall be cause for
  termination.

            

    

    

    
      	
              3.4

            	
              DISTRIBUTOR
      further agrees to obtain, at its expense all necessary and relevant
      government approvals and permission to market, sell and operate the
      PRODUCT in the TERRITORY.  Failure to obtain these approvals
      shall be cause for termination.

            

    

    

    Section 4-- PRODUCTS
pricing.

    

    
      	
              4.1

            	
              Current
      pricing as of this contract to the DISTRIBUTOR shall be per quotation from
      MANUFACTURER or via published price lists from MANUFACTURER. DISTRIBUTOR
      shall receive 25% discount off list prices at time of purchase order. See
      attachment for current MANUFACTURER list
  pricing.

            

    

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    

    4.2           From
time to time MANUFACTURER shall have the right to change prices of PRODUCTS.
Unless otherwise specified by MANUFACTURER, in writing, new published pricing
shall be effective 90 days from the date of issue of new price
lists.

    

    
      	
              4.3

            	
              DISTRIBUTOR
      shall purchase all spare and replacement parts directly from
      MANUFACTURER

            

    

    

    Section 5-- Payments

    

    
      	
              5.1

            	
              DISTRIBUTOR
      agrees that all purchase orders for PRODUCTS shall be purchased with a 50%
      payment at time of placement of purchase order and 50% payment at time of
      shipment of product, according to the terms set forth in MANUFACTURER's
      quotation as agreed by both parties unless other terms or conditions are
      agreed upon in writing by DISTRIBUTOR and MANUFACTURER prior to new orders
      being placed. Spare parts orders shall be payable net 45 days after
      shipment.

            

    

    

    
      	
              5.2

            	
              All
      moneys payable hereunder shall be paid in United States Dollars at such
      locations in the United States of America as MANUFACTURER may from time to
      time designate; unless, any payments due and payable in the United States
      is not at that time permitted by law or by reason of the decision of any
      competent authority in the country involved, then, in such event,
      DISTRIBUTOR shall discharge its obligation for payment in such other
      currency and at such place as may be permitted and agreed to by
      MANUFACTURER.

            

    

    

    Section 6--Term and
Termination

    

    
      	
              6.1

            	
              With
      respect to the DISTRIBUTOR and rights granted hereby, this Agreement shall
      commence upon the executing hereof and, unless terminated earlier, shall
      continue year to year with automatic 12 (twelve) month extensions if all
      conditions of this Agreement have been met, subject to new sales
      projections which will serve as minimum purchase volume targeted amounts
      (as mutually agreed) as described in Subparagraph 3.1 and
    3.2.

            

    

    

    
      	
              6.2

            	
              If
      any payment to MANUFACTURER is in arrears for thirty (30) days after the
      due date, or if DISTRIBUTOR fails to achieve minimum sales performance or
      defaults in performing any of the other terms of this Agreement, and
      continues in default for a period of fifteen (15) days after written
      notification as provided herein, or if DISTRIBUTOR becomes insolvent or
      files for bankruptcy or enters into an agreement with creditors, or if a
      receiver is appointed for it, MANUFACTURER shall have the right to
      terminate this Agreement upon giving a fifteen (15) day notice to
      DISTRIBUTOR.

            

    

    

    
      	
              6.3

            	
              As
      a course of normal business, the MANUFACTURER has reasonable expectations
      in regards to performance, communications, promotions, etc. If, at any
      time during this agreement, the DISTRIBUTOR fails to meet these
      expectations, the MANUFACTURER shall promptly notify the DISTRIBUTOR in
      writing. Failure by the DISTRIBUTOR to remedy the situation within 30 days
      to the satisfaction of the MANUFACTURER shall be sufficient grounds for
      immediate termination of this
agreement.

            

    

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    
      	
              6.4

            	
              Subsequent
      to the termination of this Agreement as provided for in Subsection 6.1 –
      6.3, DISTRIBUTOR agrees that it will not engage in the use, sale or other
      commercialization or in any other manner for its own benefit or any
      person, firm, corporation, association, or other entity of the TECHNOLOGY
      for a period of five (5) years and that it will not sell the PRODUCTS or
      competitive products during that period. This excludes any PRODUCTS that
      the DISTRIBUTOR currently manufactures, or subsequent developments of this
      technology that is not derived from technology offered by the
      MANUFACTURER. DISTRIBUTOR agrees that it will not use its knowledge of the
      MANUFACTURER'S systems to build or develop competing products that use
      phased-array technology to treat deep tumors or any other software or
      hardware technology utilized by the MANUFACTURER of which the DISTRIBUTOR
      becomes aware because of its activities associated with this agreement. At
      the termination of this agreement, any items remaining in stock may be
      returned to the MANUFACTURER at a mutually agreed upon
    price.

            

    

    

    
      	
              6.4

            	
              Upon
      termination of this Agreement for any reason, nothing herein shall be
      construed to release either party of any obligation that matured prior to
      the effective date of such termination, and any unpaid payments under this
      Agreement shall become immediately due and
  payable.

            

    

    

    
      	
              6.5

            	
              Notwithstanding
      the above, DISTRIBUTOR shall have no obligation to purchase the minimum
      purchase requirements herein for any period after the day of notification
      of termination by DISTRIBUTOR or notification of default by MANUFACTURER,
      unless such default is remedied as contained herein. DISTRIBUTOR shall not
      be liable to purchase any units beyond those already ordered and paid for
      in the event of termination or
default.

            

    

    

    Section 7-- Third party Infringement of Patent
or Future Patent Applications

    

    
      	
              7.1

            	
              Should
      MANUFACTURER or DISTRIBUTOR become aware of any infringement or alleged
      infringement in the country in paragraph 2, that party shall immediately
      notify the other party in writing of the name and address of the alleged
      infringer, the alleged acts of infringement, and any available evidence of
      infringement. MANUFACTURER and DISTRIBUTOR agree to work jointly (on a
      best efforts basis) to prevent any infringement and defend the patent or
      any additional patent MANUFACTURER may apply for in the future upon which
      the TECHNOLOGY is based. The intent of this paragraph is that DISTRIBUTOR
      shall defend the patent or patents applied for in the future in the
      country in paragraph 2.

            

    

    

    
      	
              7.2

            	
              DISTRIBUTOR
      and MANUFACTURER hereby agree to cooperate with each other in the
      prosecution of any legal infringement action or settlement discussions
      undertaken pursuant to this section and that each will provide the other
      with all pertinent data and evidence of which it may have the knowledge or
      which may be in its possession and which may be helpful in the prosecution
      of such action.

            

    

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    
      	
              7.3

            	
              If,
      at any time during the term of this Agreement, MANUFACTURER or DISTRIBUTOR
      shall be unable to uphold the validity of any patents against any alleged
      infringer, DISTRIBUTOR shall not have a damage claim or a claim for refund
      or reimbursement against
MANUFACTURER.

            

    

    

    Section 8-- Taxes, Governmental Approvals and
Liability

    

    
      
        	
                8.1

              	
                DISTRIBUTOR
      shall be solely responsible for the payment and discharge of
      any taxes, duties, or withholdings relating to any transaction of
      DISTRIBUTOR in connection with the sale, or lease of the PRODUCTS in its
      TERRITORY. In the event that MANUFACTURER is assessed any tax, duty, or
      other governmental withholding by the Chinese government with respect to
      any payment under this DISTRIBUTOR Agreement, DISTRIBUTOR shall pay such
      tax, duty, or other governmental withholding on behalf of MANUFACTURER or
      reimburse MANUFACTURER for any such tax, duty, or withholding it shall
      make.

              

      

    

    

    
      	
              8.2

            	
              DISTRIBUTOR
      shall, at its own expense, be responsible for applying for and obtaining
      any approvals, authorizations, or validations relative to this Agreement
      under the laws of the country in paragraph 2 or otherwise, including
      authorization for the remittances hereunder from the appropriate
      governmental authorities.

            

    

    

    
      	
              8.3

            	
              DISTRIBUTOR
      shall be responsible for all product liability, and product warranty for
      any PRODUCTS sold by DISTRIBUTOR under this Agreement and shall carry
      whatever insurance is necessary to provide such liability or warranty
      protection.

            

    

    

    Section
9-- lndependence of the Parties

    

    
      	
              9.1

            	
              This
      Agreement shall not constitute the designation of either party as the
      representative or agent of the other, nor shall either party by this
      Agreement have the right or authority to make any promise, guarantee,
      warranty, or representation, or to assume, create, or incur any liability
      or other obligation of any kind, express or implied, against or in the
      name of, or on behalf of, the
other.

            

    

    

    Section
10--Assignment

    

    
      	
              10.1

            	
              DISTRIBUTOR
      shall not have the right to assign or otherwise transfer this Agreement
      and the rights of distributorship granted hereby and the rights acquired
      by DISTRIBUTOR hereunder, without the prior, written consent of
      MANUFACTURER (such consent will not be unreasonably withheld). If such
      written consent is given, such assignment or transfer shall not be deemed
      effective unless such assignee or transferee has agreed in writing to be
      bound by the terms and provisions of this Agreement. DISTRIBUTOR shall
      have the right to utilize third parties to market and acquire sales,
      including but not limited to appointing local sub distributors. These
      third parties are also subject to the terms and limitations of the
      agreement.

            

    

    

    
      	
              10.2

            	
              Upon
      termination of this agreement DISTRIBUTOR shall assign all rights to any
      import licenses it holds for the MANUFACTURER'S PRODUCTS to the
      MANUFACTURER.

            

    

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    
      	
              10.3

            	
              MANUFACTURER
      shall have the right to assign its right herein, including rights to
      receive payments to any third party without the prior written consent of
      DISTRIBUTOR. Assignment of payments due must be in accordance with the
      laws, rules and regulations of
Germany.

            

    

    

    Section
11—Notices

    

    
      	
              11.1

            	
              All
      notices, demands, and other communications under this Agreement shall be
      deemed to have been duly given and delivered one (1) day after sending, if
      sent by telegram, telex, or telefax, and thirty-five (35) days after
      posting, if sent by registered airmail, postage prepaid to the parties at
      the following locations:

            

    

    

    A.
MANUFACTURER:

    BSD
Medical Corporation

    2188 West
2200 South

    Salt Lake
City, Utah 84119

    Telefax
801-972-5930

    

    B.
DISTRIBUTOR:

    Dr.
Sennewald Medizintechnik GmbH

    Schatzbogen
86

    81829
MUNCHEN

    GERMANY

    Telefax
49-89 54 21 43-30

    

    
      	
              11.2

            	
              The
      parties hereto may give written notice of change of address. and after
      such notice has been received, any notice or request shall thereafter be
      given to such party at the changed
address.

            

    

    

    Section
12—Training

    

    
      	
              12.1

            	
              DISTRIBUTOR
      shall send, at DISTRIBUTOR'S expense appropriate employee(s) to locations
      designated by MANUFACTURER for the purpose of receiving adequate training,
      specified by MANUFACTURER, to properly represent MANUFACTURER in the
      TERRITORY.

            

    

    

    Section
13--Demonstration Systems

    

    
      	
              13.1

            	
              DISTRIBUTOR
      agrees to purchase adequate BSD demonstration systems from MANUFACTURER,
      to be mutually determined by both parties, as described by the attached
      quotation and sales agreement.

            

    

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    Section
14--Applicable Law

    

    
      	
              14.1

            	
              All
      disputes in connection with this agreement shall be settled with good
      faith negotiation. In case no settlement can be reached, the case may be
      submitted to arbitration as agreed upon by both parties. This Agreement is
      entered into pursuant to the laws of the State of Delaware, United States
      of America, and the validity and interpretation of this Agreement shall be
      governed by and in accordance with the laws of the state and country as
      such law shall from time to time be in effect. If attempts at negotiation
      and arbitration fail, both parties agree to the jurisdiction of the courts
      of the States of Utah or Delaware and agree to be bound by their
      rulings.

            

    

    

    Section
15--Attorneys Fees

    

    
      	
              15.1

            	
              In
      the event there is a default under this Agreement and it becomes
      reasonably necessary for any party to employ the services of an attorney,
      either to enforce or terminate this Agreement, with or without
      arbitration, the losing party or parties to the controversy arising out of
      the default shall pay to the prevailing party or parties reasonable
      attorneys fees and, in addition, such costs and expenses as are incurred
      in enforcing or in terminating this
Agreement.

            

    

    

    Section
16--ldentification of TECHNOLOGY and PRODUCTS

    

    
      	
              16.1

            	
              DISTRIBUTOR
      agrees to mark PRODUCTS, all brochures and documents describing the
      PRODUCTS with all applicable United States and foreign patent numbers, in
      conformity with the patent laws and practices of the respective
      country.

            

    

    

    Section
l7--Limited Product Warranty

    

    
      	
              17.1

            	
              From
      the date of shipment to the DISTRIBUTOR, MANUFACTURER warrants, for
      eighteen months or twelve months from the date of installation, whichever
      occurs first, all specifically covered parts of the system including labor
      which is performed at BSD's facility in Salt Lake City,
    Utah.

            

    

    

    
      	
              17.2

            	
              Limitations
      regarding quantity of probes and applicators as well as all other items
      covered by this warranty shall be governed by MANUFACTURER'S signed
      PRODUCTS quotation.

            

    

    

    Section
l8--Confidential Disclosure

    

    
      	
              18.1

            	
              The
      parties acknowledge that from time to time they have or will be required
      to disclose to each other TECHNOLOGY that is confidential, proprietary or
      secret, in the furtherance of the objects and covenant of this Agreement.
      The parties acknowledge that the provisions of this Agreement are
      necessary to protect the confidentiality, value and secrecy
      thereof.

            

    

    

    
      	
              18.2

            	
              The
      parties agree that they shall take reasonable precautions to preserve the
      confidential, proprietary or secret status of any such TECHNOLOGY
      disclosure. Each party shall require that its employees and agents
      understand and agree in writing to treat and hold such TECHNOLOGY in
      confidence consistent with the provisions herein. The parties further
      agree that they shall utilize all such TECHNOLOGY solely for furthering
      the objectives of this Agreement and they will not, either during or at
      any time subsequent to this Agreement, otherwise use such TECHNOLOGY for
      their own benefit or for the benefit of others; nor will either party
      publish or otherwise disclose such TECHNOLOGY to any other individual,
      firm or corporation without first obtaining written consent from the other
      party to this Agreement.

            

    

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    
      	
              18.3

            	
              The
      obligations of this section shall survive termination of this Agreement,
      provided, however, that such obligations shall not apply
    to:

            

    

    

    (a) any
information which was disclosed to the DISTRIBUTOR by a thirdparty who is under
no obligation of confidentiality to the MANUFACTURERor a to party in private or
to the DISTRIBUTOR; or,

    

    (b) any
information that DISTRIBUTOR can reasonably demonstrate through documentation
has become generally known through no fault of the MANUFACTURER to the trade or
to public prior to or subsequent to the disclosure by DISTRIBUTOR.

    

    
      	
              18.4

            	
              Within
      thirty (30) days from the date of termination of this Agreement as
      provided in section 6, DISTRIBUTOR shall furnish MANUFACTURER with written
      notice specifying that through reasonable care and to the best of its
      knowledge:

            

    

    

    (a) all
TECHNOLOGY embodied in all printed documents and machine readable documentation
and copies thereof, including any materials, documents, books, drawings,
memoranda, files, blue prints, diagrams, customer lists, manufacturing
procedures, know-how, testing data, studies, reports, evaluations, and any other
materials or things of any value which constitute or embody any confidential,
proprietary or secret TECHNOLOGY has been returned to MANUFACTURER;
and

    

    (b) the
originals and all copies of any machine-readable documentation containing any
portion of the TECHNOLOGY of the MANUFACTURER have been destroyed or returned to
MANUFACTURER.

    

    Section
19--Non-Competition

    

    
      	
              19.1

            	
              The
      DISTRIBUTOR further agrees that at no time during this Agreement or for
      five (5) years immediately following the termination of this Agreement,
      whether said termination is occasioned by the MANUFACTURER or the
      DISTRIBUTOR or the mutual agreement of the parties, will the DISTRIBUTOR
      for itself, or in behalf of any other person, persons, firm, partnership,
      corporation, or company, engage in directly or indirectly, solicit or
      attempt to solicit the business or patronage of any person, persons, firm,
      partnership, corporation, or company for the purpose of carrying on
      competitive business similar to that of the MANUFACTURER or perform such
      other incidental product sales, manufacturing or business services as is
      now engaged by the MANUFACTURER, nor will the said DISTRIBUTOR disclose to
      any person whomsoever any of the confidential information as contained in
      Section 18 used by the MANUFACTURER in or about its
    business.

            

    

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    
      	
              19.2

            	
              The
      DISTRIBUTOR shall purchase PRODUCT only from MANUFACTURER. DISTRIBUTOR
      shall not purchase new or used PRODUCT or competitive products for resale
      into TERRITORY from MANUFACTURER'S previous customers or distributors
      outside of TERRITORY. DISTRIBUTOR shall not remanufacture used PRODUCT
      taken in trade from its customers.

            

    

    

    Section
20--General Provisions

    

    
      	
              20.1

            	
              The
      parties hereto have read this Agreement and agree to be bound by all its
      terms. The parties further agree that this Agreement shall constitute the
      complete and exclusive statement of the Agreement between them and
      supersedes all proposals, oral or written, and all other communications
      between them relating to the TECHNOLOGY, including but not limited to; the
      inventions, technology, and know-how which are the subject matter of this
      Agreement.

            

    

    

    
      	
              20.2

            	
              No
      agreement changing, modifying, amending, extending, superseding,
      discharging, or terminating this Agreement or any provisions hereof shall
      be valid unless it is in writing and is dated and signed by duly
      authorized representatives of the party or parties to be
      charged.

            

    

    

    
      	
              20.3

            	
              The
      provisions of this Agreement are several, and in the event that any
      provision of this Agreement shall be held to be invalid, illegal, or
      unenforceable, the validity, legality, and the enforceability of the
      remaining provisions shall not in any way be affected or impaired
      thereby.

            

    

    

    
      	
              20.4

            	
              Failure
      of any of the parties hereto to enforce any of the provisions of this
      Agreement or any rights with respect thereto or to exercise any election
      provided for herein, shall in no way be considered a waiver of such
      provisions, rights, or elections or in any way affect the validity of this
      Agreement. No term provision hereof shall be deemed waived and no breach
      excused, unless such waiver or consent shall be in writing and signed by
      the party claimed to have waived or consented. The failure by any of the
      parties hereto to enforce any of said provisions, rights, or elections
      shall not preclude or prejudice such party from later enforcing or
      exercising the same or in any other provisions, rights, or elections which
      it may have under this Agreement Any consent by any party to, or waiver
      of, a breach by the other, whether express or implied, shall not
      constitute a consent or waiver of, or excuse for any other, different or
      subsequent breach. All remedies herein conferred upon any party shall be
      cumulative and no one shall be exclusive of any other remedy conferred
      herein by law or equity.

            

    

    

    
      	
              20.5

            	
              This
      Agreement shall be binding not only upon the parties hereto, but also
      upon, without limitation thereto, their successors, heirs, devisees,
      divisions, subsidiaries, officers, directors, employees, and agents and
      any and all persons or entities in private with them or having notice of
      this Agreement.

            

    

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    
      	
              20.6

            	
              Time
      is of the essence in the performance of each and every obligation and
      covenant imposed by this Agreement.

            

    

    

    
      	
              20.7

            	
              There
      shall be no liability on either party on account of any loss, damage, or
      delay occasioned or caused by strikes, riots, fires, insurrection, or the
      elements, embargoes, failure of carriers, acts of God or of the public
      enemy, compliance with any law, regulation, or other governmental order,
      or any other causes beyond the control of either party, whether or not
      similar to the foregoing.

            

    

    

    
      	
              20.8

            	
              Except
      as provided elsewhere in this Agreement, all of the legal, accounting, and
      other miscellaneous expenses incurred in connection with this Agreement
      and the performance of the various provisions of this Agreement shall be
      paid by the party who incurred the
expense.

            

    

    

    
      
        	
                20.9

              	
                All
      covenants, agreements, representations, and warranties made herein in
      writing in connection with this transaction shall survive after the
      closing date.

              
	 	 
	
                20.10

              	
                Headings
      used in this Agreement are for reference purposes only and shall not be
      deemed a part of this Agreement.

              
	 	 
	
                20.11

              	
                This
      Agreement may be executed in any number of counterparts, each of which
      shall be deemed an original, all of which constitute one and the same
      agreement.

              
	 	 
	
                20.12

              	
                This
      Agreement is the entire agreement between the parties and supersedes and
      shall be substituted for each and every agreement with respect to
      distribution of MANUFACTURERS products, whether written, oral or otherwise
      in effect between DISTRIBUTOR and
MANUFACTURER.

              

      

    

    
 

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed as of the date first mentioned above.

    

    

    
      
        	
                BSD
      Medical Corporation

              	
                Dr.
      Sennewald/Medizintechnik GmbH

              
	
                By Rick
      White

              	
                By
      Dr. Gerhard Sennewald CEO

              
	 	 
      
	/s/
      Rick White	
                /s/
      Dr. Gerhard Sennewald

              
	 
      	 
      
	
                Date     October 20,
      2008         
      

              	
                Date     October
      15, 2008

              

      

    

    

     

    
      10Exhibit 10.128

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of April 3,
2009 by and between Meade Instruments Corp., a Delaware corporation (the “Company”),
and Steven G. Murdock (“Employee”).

 

WITNESSETH:

 

WHEREAS, the Company and Employee desire to enter into this Agreement
to assure the Company of the continuing and exclusive service of Employee and
to set forth the terms and conditions of Employee’s employment with the
Company.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants
set forth herein, the parties agree as follows:

 

1.             Term.  The Company agrees to employ Employee and
Employee hereby accepts such employment, in accordance with the terms of this
Agreement, commencing as of February 5, 2009 and continuing in effect
until February 5, 2010 unless terminated earlier pursuant to Section 5
hereof.

 

2.             Services
and Exclusivity of Services.  So long
as this Agreement shall continue in effect, during the Company’s normal
business hours Employee shall devote substantially all of his business time,
energy and ability to the business, affairs and interests of the Company and
matters related thereto, shall use Employee’s best efforts and abilities to
promote the Company’s interests and shall perform the services contemplated by
this Agreement in accordance with policies established by and under the
direction of the Board of Directors of the Company (the “Board”).

 

Without the prior express written authorization of the Board, Employee
shall not, directly or indirectly, during the term of this Agreement render
services to any other person or firm for compensation or engage in any activity
competitive with or adverse to the Company’s business.  Employee may serve as a director or in any
other capacity of any business enterprise or any nonprofit or governmental
entity or trade association, provided in each case that such service is
approved in advance of such service and in writing by the Board.  Notwithstanding the foregoing, Employee may (i) make
and manage personal business investments of Employee’s choice and serve in any
capacity with any civic, educational or charitable organization without seeking
the approval of the Board, provided that such activities and services do not
materially interfere or conflict with the performance of the duties hereunder
or create any conflict of interest with such duties and (ii) continue to
work at Grandma Lucy’s outside of the Company’s normal business hours.

 

3.             Duties
and Responsibilities.  Employee shall
serve as the Chief Executive Officer of the Company for the duration of this
Agreement.  In the performance of
Employee’s duties, Employee shall report directly to the Board.  During the term of this Agreement, Employee
shall be based at the Company’s principal executive offices in Orange County,
California.

 

 

Employee agrees to observe and comply with the rules and
regulations of the Company and agrees to carry out and perform orders,
directions and policies of the Company and the Board as they may be, from time
to time, stated either orally or in writing. 
The Company agrees that the duties which may be assigned to Employee
shall be usual and customary duties of the office to which Employee may from
time to time be appointed or elected and shall not be inconsistent with the
provisions of the charter documents of the Company or applicable law.  Employee shall have such corporate power and
authority as shall reasonably be required to enable Employee to perform the
duties required in any office that may be held.

 

4.                                       Compensation.

 

(a)                                  Base Compensation. 
During the term of this Agreement, the Company agrees to pay Employee a
base salary at the rate of $1.00 per year.

 

(b)                                 Other Benefits. 
Employee shall also be entitled to all rights and benefits for which
Employee may otherwise be eligible under any life, medical, dental, disability,
or insurance plan or policy or other plan or benefit that the Company may
provide for Employee or (provided Employee is eligible to participate therein)
for employees of the Company generally, as from time to time in effect, during
the term of this Agreement.

 

(c)                                  Perquisites. 
Employee shall be entitled to four weeks vacation.

 

(d)                                 Change of Control. 
In the event the option granted pursuant to the Stand-Alone Stock Option
Agreement (the “Option Agreement”) of even date herewith between the Company
and the Employee is (i) not approved by the stockholders of the Company at
the Company’s 2009 Annual Meeting of Stockholders and (ii) a Change of
Control Event (as described below) occurs prior to February 5, 2011, the
Company shall pay Employee an amount equal to the product of (i) 750,000
and (ii) the difference between (A) the COC Price (as defined below)
less (B) $0.22; provided that if the Employee is terminated for Cause or
he voluntarily terminates his employment with the Company, the Employee shall
not receive any payments under this Section 4(d).

 

(e)                                  Definitions.

 

(i)                                     COC Price.  The term “COC
Price” shall mean the following:

 

(A)          If
the Change of Control Event is described in clause (A) or (C) of
Section 4(e)(ii) below, the quotient equal to (1) the
Distributable Amount (as defined below) divided by (2) the then
outstanding shares of the Common Stock of the Company (assuming all convertible
securities (excluding options) of the Company had been converted); or

 

(B)           If
the Change of Control Event is described in clause (B) of Section 4(e)(ii) below,
the amount per share received by each stockholder in connection with such
Change of Control Event.

 

(ii)                                  Change of Control Event. 
The term “Change of Control Event” shall mean any of the following:

 

(A)          Any
dissolution or liquidation of the Company in which there is a distribution to
the stockholders of the Company;

 

2

 

(B)           Approval
by the stockholders of the Company of an agreement to merge or consolidate, or
otherwise reorganize, with or into one or more entities that are not
subsidiaries or other affiliates, as a result of which less than 50% of the
outstanding voting securities of the surviving or resulting entity immediately
after the reorganization are, or will be, owned, directly or indirectly, by
stockholders of the Company immediately before such reorganization (assuming
for purposes of such determination that there is no change in the record
ownership of the Company’s securities from the record date for such approval
until such reorganization and that such record owners hold no securities of the
other parties to such reorganization, but including in such determination any
securities of the other parties to such reorganization held by affiliates of
the Company); or

 

(C)           Approval
by the stockholders of the Company of the sale of substantially all of the
Company’s business and/or assets to a person or entity which is not a
subsidiary or other affiliate.

 

(iii)                               Distributable Amount. 
The term “Distributable Amount” shall mean the amount available for
distribution to the Company’s stockholders after the consummation of the
applicable Change of Control Event, less the outstanding obligations and expenses
of the Company (excluding any payment to be made under Section 4(d)).

 

5.                                       Termination. 
This Agreement and all obligations hereunder (except the obligations
contained in Sections 7, 8, 9, 10, 11 and 12 (Confidential Information,
Inventions and Patents, Non-Competition, No Solicitation of Customers,
Noninterference with Employees and Assistance in Patent Applications) which
shall survive any termination hereunder) shall terminate upon the earliest to
occur of any of the following:

 

(a)                                  Voluntary Termination. 
Employee’s employment shall terminate upon the voluntary termination by
Employee.  In such instance, all
obligations hereunder to Employee (or Employee’s heirs or legal
representatives) shall cease.

 

(b)                                 Death or Disability of Employee. 
Employee’s employment shall terminate upon the death or Disability (as
defined below) of Employee.  In such
instance, except as set forth below, all obligations hereunder to Employee (or
Employee’s heirs or legal representatives) shall cease, other than for payment
to Employee or Employee’s estate or beneficiary, as applicable, of any amount
due pursuant to the terms of any applicable benefit plan.  For the purposes of this Agreement,
disability shall mean the absence of Employee performing Employee’s duties with
the Company on a full-time basis for a period of six months, as a result of
incapacity due to mental or physical illness which is determined to be total
and permanent by a physician selected by the Company or its insurers and
acceptable to Employee or Employee’s legal representative (such agreement as to
acceptability not to be withheld unreasonably).

 

(c)                                  Cause.  The Company
may terminate Employee’s employment and all of Employee’s rights to receive any
benefits hereunder for Cause.  For
purposes of this Agreement, the term “Cause” shall be defined as any of the
following; provided, however, that the Company must determine the presence of
such Cause in good faith:

 

3

 

(i)            Employee’s
material and willful breach of any duties and responsibilities under this
Agreement (other than as a result of incapacity due to Employee’s disability);

 

(ii)           Employee’s
commission of act of fraud upon the Company;

 

(iii)          Employee’s
immoderate use of alcoholic beverages or narcotics or other substance abuse
affecting Employee’s performance of his duties hereunder;

 

(iv)          Employee’s
conviction by, or entry of a plea of guilty or nolo contendere in, a court of
competent and final jurisdiction for a felony or any crime which adversely
affects the Company and/or its reputation in the community or which involves
moral turpitude or is punishable by imprisonment in the jurisdiction involved;
or

 

(v)           Employee’s
willful and material violation of any duty of loyalty to the Company or willful
and material breach of Employee’s fiduciary duties to the Company.

 

For purposes of this paragraph, no act or failure to act on the part of
Employee shall be considered “willful” unless done, or omitted to be done, by
Employee in bad faith or without reasonable belief that Employee’s action or
omission was in the best interest of the Company

 

(d)                                 Without Cause. 
Notwithstanding any other provision of this Section, the Company may
terminate Employee’s employment with the Company without cause at any time, but
in the event of such termination without cause, Employee shall be entitled to
receive funds equal to the amount of the Company sponsored portion (HMO level)
of Employee’s group medical insurance coverage for Employee (and Employee’s
spouse and/or family, as in place immediately before notice of the termination
(up to HMO level only)), for a period of 12 months as governed by the
Consolidated Omnibus Budget Reconciliation Act of 1984, as amended (“COBRA”).  In connection with this subsection, the
Company will provide Employee with a COBRA notice, which will include the
insurance premium rate information for coverage for Employee under COBRA.  In order to receive such COBRA benefits,
Employee must timely apply for and elect such COBRA benefits.  It will be Employee’s responsibility and
obligation to pay the applicable COBRA premium for such coverage.  The aggregate value of all payments to be
made to Employee under this Section 5(d) shall be paid to Employee in
12 equal monthly payments commencing the first month after the termination of
this Agreement.

 

(e)                                  Good Reason. 
In the event Employee voluntarily terminates Employee’s employment
pursuant to Section 5(a) hereof, and such termination is made by
Employee for Good Reason (as defined below), then Employee shall be entitled to
receive payment equal to and on the same terms and conditions as that paid to
Employee under Section 5(d) hereof; provided, however, that before
Employee may terminate his or her employment pursuant to this Section 5(e),
the Company shall have 30 days after the receipt of written notice by Employee
specifying (in reasonable detail) the facts and circumstances for such Good
Reason termination and the corrective action Employee believes is required to
remedy such action; provided further, that such notice must be delivered in
writing to the Board hereunder no later than 60 days after the initial
existence of the facts and circumstances giving rise to Employee’s notice of
Good Reason hereunder.  For purposes of
this Agreement “Good Reason” shall be defined as any of the following:

 

4

 

(i)                                     The material diminution of authority,
duties or responsibilities of Employee under this Agreement.

 

(ii)                                  The Company requiring Employee to be
based at any office or location which increases the distance from Employee’s
home to the office or location by more than 30 miles from the distance in
effect at the beginning of the term of this Agreement.

 

6.                                       Business Expenses. 
During the term of this Agreement, to the extent that such expenditures
satisfy the criteria under the Internal Revenue Code of 1986, as amended, for
deductibility by the Company (whether or not fully deductible by the Company)
for federal income tax purposes as ordinary and necessary business expenses,
the Company shall reimburse Employee promptly for reasonable business
expenditures, including travel, entertainment, parking, business meetings, and
professional dues, made and substantiated in accordance with the reasonable
policies, practices and procedures established from time to time by the Company
generally with respect to other peer employees and incurred in the pursuit and
furtherance of the Company’s business and goodwill.

 

7.                                       Confidential Information. 
Employee acknowledges that the nature of Employee’s engagement by the
Company is such that Employee shall have access to information of a
confidential nature which has great value to the Company and which constitutes
a substantial basis and foundation upon which the business of the Company is
based.  Such information includes
financial, manufacturing and marketing data, techniques, processes, formulas,
developmental or experimental work, work in process, methods, trade secrets
(including, without limitation, customer lists and lists of customer sources),
or any other secret or confidential information relating to the products,
services, customers, sales or business affairs of the Company or any of its
subsidiaries (the “Confidential Information”). 
Employee acknowledges that the Confidential Information constitutes
trade secrets of the Company.  Employee
shall keep all such Confidential Information in confidence during the term of
this Agreement and at any time thereafter and shall not disclose any of such
Confidential Information to any other person, except to the extent such
disclosure is (i) necessary to the performance of this Agreement and in
furtherance of the Company’s best interests, (ii) required by applicable
law, (iii) lawfully obtainable from other sources, or (iv) authorized
by the Company.  Upon termination of
Employee’s employment with the Company, Employee shall deliver to the Company
all documents, records, notebooks, work papers, and all similar material
containing any of the foregoing information, whether prepared by Employee, the
Company or anyone else.

 

8.                                       Inventions and Patents. 
Except as may be limited by Section 2870 of the California Labor
Code, all inventions, designs, improvements, patents, copyrights and
discoveries conceived by Employee during the term of this Agreement which are
useful in or directly or indirectly related to the business of the Company or
to any experimental work carried on by the Company, shall be the property of
the Company.  Employee will promptly and
fully disclose to the Company all such inventions, designs, improvements,
patents, copyrights and discoveries (whether developed individually or with
other persons) and shall take all steps necessary and reasonably required to
assure the Company’s ownership thereof and to assist the Company in protecting
or defending the Company’s proprietary rights therein.

 

5

 

Employee acknowledges hereby receipt of written notice from the Company
pursuant to California Labor Code Section 2872 that this Agreement (to the
extent it requires an assignment or offer to assign rights to any invention of
Employee) does not apply fully to an invention which qualifies fully under
California Labor Code Section 2870.

 

9.                                       Non-Competition. 
Employee acknowledges that the Confidential Information constitutes
trade secrets of the Company, and Employee acknowledges that the following is
necessary to protect the Confidential Information: Employee agrees that during
the term of Employee’s employment, and for a period of 12 months thereafter,
Employee shall not, directly or indirectly, whether as an owner, partner,
shareholder, agent, employee, creditor, consultant, or otherwise, promote,
participate or engage in any activity or other business competitive with the
business of the Company or any of its subsidiaries in any jurisdiction in which
the Company or any of its subsidiaries operates at the time of such termination
if such activity or other business involves any use by the Employee of any of
the Confidential Information.

 

10.                                 Non-Solicitation of Customers. 
Employee acknowledges that the Confidential Information constitutes trade
secrets of the Company, and Employee acknowledges that the following is
necessary to protect the Confidential Information: Employee agrees that for a
period of 12 months after the termination of employment with the Company or any
of its subsidiaries, Employee will not, on behalf of Employee or on behalf of
any other individual, association or entity, call on any of the customers of
the Company or any of its subsidiaries for the purpose of soliciting or
inducing any of such customers to acquire (or providing to any of such
customers) any product or service provided by the Company or any of its
subsidiaries, nor will Employee in any way, directly or indirectly, as agent or
otherwise, in any other manner solicit, influence or encourage such customers
to take away or to divert or direct their business to Employee or any other
person or entity by or with which Employee is employed, associated, affiliated
or otherwise related.

 

11.                                 Noninterference with Employees. 
Employee acknowledges that the Confidential Information constitutes
trade secrets of the Company, and Employee acknowledges that the following is
necessary to protect the Confidential Information: Employee agrees that during
the term hereof and for a period of 12 months thereafter, Employee will not, directly
or indirectly, solicit any employee of the Company or any of its subsidiaries
to leave such employment.

 

12.                                 Assistance in Patent Applications. 
Employee agrees to assist the Company in obtaining United States or
foreign letters patent and copyright registrations covering inventions assigned
hereunder to the Company and that Employee’s obligation to assist the Company
shall continue beyond the termination of Employee’s employment but the Company
shall compensate Employee at a reasonable rate for time actually spent by
Employee at the Company’s request with respect to such assistance.  If the Company is unable because of Employee’s
mental or physical incapacity or for any other reason to secure Employee’s
signature to apply for or to pursue any application for any United States or
foreign letters patent or copyright registrations covering inventions assigned
to the Company, then Employee hereby irrevocably designates and appoints the
Company and its duly authorized officers and agents as Employee’s agent and 

 

6

 

attorney-in-fact to act for and in Employee’s behalf and stead to
execute and file any such applications and to do all other lawfully permitted
acts to further the prosecution and issuance of letters patent or copyright
registrations thereon with the same legal force and effect as if executed by
Employee.  Employee hereby waives and
quitclaims to the Company any and all claims, of any nature whatsoever, which
Employee now or hereafter may have for infringement of any patent or copyright
resulting from any such application for letters patent or copyright
registrations assigned hereunder to the Company.  Employee will further assist the Company in
every way to enforce any copyrights or patents obtained including, without
limitation, testifying in any suit or proceeding involving any of the
copyrights or patents or executing any documents deemed necessary by the
Company, all without further consideration but at the expense of the Company.  If Employee is called upon to render such
assistance after the termination of Employee’s employment, then Employee shall
be entitled to a fair and reasonable per diem fee in addition to reimbursement
of any expenses incurred at the request of the Company.

 

13.                                 Indemnity.  In addition
to any other separate agreement with the Company concerning indemnification, to
the fullest extent permitted by applicable law and the bylaws of the Company,
as from time to time in effect, the Company shall indemnify Employee and hold
Employee harmless for any acts or decisions made in good faith while performing
services for the Company, and the Company shall use its best efforts to obtain
coverage for Employee (provided the same may be obtained at reasonable cost)
under any liability insurance policy or policies now in force or hereafter
obtained during the term of this Agreement that cover other officers of the
Company having comparable or lesser status and responsibility.  To the same extent, the Company will pay and,
subject to any legal limitations, advance all expenses, including reasonable
attorneys’ fees and costs of court approved settlements, actually and
necessarily incurred by Employee in connection with the defense of any action,
suit or proceeding and in connection with any appeal thereon, which has been
brought against Employee by reason of Employee’s service as an officer or agent
of the Company.

 

14.                                 Remedies.  The parties
hereto agree that the services to be rendered by Employee pursuant to this
Agreement, and the rights and privileges granted to the Company pursuant to
this Agreement, are of a special, unique, extraordinary and intellectual
character, which gives them a peculiar value, the loss of which cannot be
reasonably or adequately compensated in damages in any action at law, and that
a breach by Employee of any of the terms of this Agreement will cause the
Company great and irreparable injury and damage.  Employee hereby expressly agrees that the
Company shall be entitled to the remedies of injunction, specific performance
and other equitable relief to prevent a breach of this Agreement by
Employee.  This Section 14 shall not
be construed as a waiver of any other rights or remedies which the Company may
have for damages or otherwise.

 

15.                                 Severability. 
If any provision of this Agreement is held to be unenforceable for any
reason, it shall be adjusted rather than voided, if possible, to achieve the
intent of the parties to the extent possible. 
In any event, all other provisions of this Agreement shall be deemed
valid and enforceable to the extent possible.

 

16.                                 Succession.  This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns and any such successor or assignee shall be deemed
substituted for the Company under the terms of this Agreement for all
purposes.  As used herein, 

 

7

 

“successor” and “assignee” shall include any person, firm, corporation
or other business entity which at any time, whether by purchase, merger or otherwise,
directly or indirectly acquires the stock of the Company or to which the
Company assigns this Agreement by operation of law or otherwise.  The obligations and duties of Employee
hereunder are personal and otherwise not assignable.

 

17.                                 Notices.  Any notice or
other communication provided for in this Agreement shall be in writing and sent
if to the Company to its principal executive office at:

 

Meade Instruments
Corp.

27 Hubble

Irvine, California
92618

Phone: (949)
451-1450; Facsimile: (949) 451-1460

Attention: Chief
Financial Officer

 

or at such other address as the Company may from time to time in
writing designate, and if to Employee at the address set forth below his
signature hereto or at such other address as Employee may from time to time in writing
designate.  Each such notice or other
communication shall be effective (i) if given by telecommunication, when
transmitted to the applicable number so specified in (or pursuant to) this Section and
a verification of receipt is received, (ii) if given by mail, three days
after such communication is deposited in the mails with first class postage
prepaid, addressed as aforesaid or (iii) if given by any other means, when
actually delivered at such address.

 

18.                                 Entire Agreement. 
This Agreement contains the entire agreement and final understanding of
the parties relating to the subject matters hereof and shall supersede and
replace any prior agreements (including, without limitation, any prior
employment agreements), undertakings, negotiations, commitments, and practices
relating to Employee’s employment with the Company, whether written or
oral.  Except as contained herein, any
representation, promise or agreement not specifically included in this
Agreement shall not be binding upon or enforceable against either party.  This Agreement is an integrated agreement.

 

19.                                 Amendments.  No amendment
or modification of the terms of this Agreement shall be valid unless made in
writing and duly executed by both parties.

 

20.                                 Waiver.  No failure on
the part of any party to exercise or delay in exercising any right hereunder
shall be deemed a waiver thereof or of any other right, nor shall any single or
partial exercise preclude any further or other exercise of such right or any
other right.

 

21.                                 Governing Law. 
This Agreement, and the legal relations between the parties, shall be
governed by and construed in accordance with the laws of the State of
California without regard to conflicts of law doctrines All actions or
proceedings under or relating to this Agreement will be resolved in a state or
federal court located in Orange County, California; provided, however, that in
the Company’s discretion, such an action may be heard in some other place
designated by it if necessary to acquire jurisdiction over third persons so
that the dispute can be resolved in one action. 
Each party hereby (i) agrees to submit to the exclusive
jurisdiction of the federal and state courts located in Orange County,
California, (ii) agrees to appear in any 

 

8

 

such action, (iii) consents to the exclusive jurisdiction of such
courts and (iv) waives any objections it might have as to exclusive venue
in any such court.  Service of process
may be made in any action, suit or proceeding by mailing or delivering a copy
of such process to a party at its address and in the manner set forth in Section 17
herein.

 

22.                                 Arbitration. 
As a material inducement to enter into this Agreement, Employee and the
Company each hereby agree that any “Claims” or “Controversies” (as defined
below) arising out of or in respect to this Agreement (or its validity,
interpretation or enforcement), or Employee’s employment or termination, that
Employee may have against the Company or it officers, directors, employees, or
agents, in their capacity as such, or that the Company may have against
Employee, shall be resolved solely through binding arbitration.  Employee and the Company each hereby
acknowledge that this agreement to arbitrate means that Employee and the
Company are relinquishing their rights to either a jury trial or court trial
for the resolution of any claims that Employee and the Company may have against
the other.

 

“Claims” or “Controversies” arising out of this Agreement or Employee’s
employment or termination means and includes all claims for breach of this
Agreement, harassment and/or discrimination (including sexual harassment and
harassment or discrimination based on race, color, religion, age, sex, sexual
orientation, ancestry, national origin, marital status, military service,
pregnancy, physical or mental disability, medical condition or any other
protected class or condition), breach of any contract or covenant (express or
implied), tort claims, wrongful termination, whistle-blowing and all other
claims relating to this Agreement or Employee’s employment or termination,
except that claims covered by the Workers’ Compensation Act and claims for
unemployment benefits are not covered by this agreement to arbitrate.

 

All Claims or Controversies shall be submitted to a single neutral
arbitrator.  The arbitration shall take
place in Orange County, California, unless otherwise mutually agreed.  The arbitrator shall be mutually agreed-upon
by Employee and the Company.  If Employee
and the Company cannot agree upon an arbitrator, the selection process shall be
governed by the employment arbitration rules and procedures of the
American Arbitration Association (“AAA”). 
Regardless of the arbitrator chosen, the arbitration proceedings shall
be governed by the then current AAA procedural rules, except that if a contrary
rule exists: (1) all monetary or provisional remedies available under
applicable state or federal statutory law or common law will remain available
to both parties; (2) except as mutually agreed upon by the parties, there
will be no limitation on discovery beyond that which exists in cases litigated
in Orange County Superior Court; and (3) the California Rules of
Evidence shall apply to the arbitration hearing.  In connection with any arbitration proceeding
commenced hereby, the prevailing party shall be entitled to reimbursement of
its reasonable attorney’s fees and costs, including arbitrator fees.  This agreement to arbitrate and arbitration
procedure is intended to be the exclusive method of resolving all Claims or
Controversies as described above between Employee and the Company and judgment
upon the award rendered by the arbitrator hereunder may be entered in any court
having jurisdiction thereof.

 

23.                                 Withholding. 
All compensation payable hereunder, including salary and other benefits,
shall be subject to applicable taxes, withholding and other required, normal or
elected employee deductions.

 

9

 

24.                                 Counterparts. 
This Agreement and any amendment hereto may be executed in one or more
counterparts.  All of such counterparts
shall constitute one and the same agreement and shall become effective when a
copy signed by each party has been delivered to the other party.

 

25.                                 Headings.  Section and
other headings contained in this Agreement are for convenience of reference
only and shall not affect in any way the meaning or interpretation of this
Agreement.

 

26.                                 Drafting.  The parties
hereto each hereby waives the benefit of any statute or rule of law or
judicial decision, which would otherwise require that the provisions of this
Agreement be construed or interpreted most strongly against the party
responsible for the drafting thereof.

 

27.                                 Compliance with Section 409A. 
The Company and Employee each acknowledge and agree that it is intended
that any amounts payable hereunder as well as the Company’s and Employee’s
exercise of authority or discretion hereunder shall either be exempt from or
comply with Section 409A of the Internal Revenue Code, as amended
(including the Treasury regulations and other published guidance relating
thereto) (“Section 409A”) so as not to subject Employee to payment of any
interest or additional tax imposed under Section 409A.  To the extent that any amount payable under
this Agreement would trigger the additional tax imposed by Section 409A,
this Agreement shall be modified to avoid such additional tax yet preserve (to
the nearest extent reasonably possible) the intended benefit payable to
Employee.

 

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

 

	
   

  	
  MEADE
  INSTRUMENTS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/John A.
  Elwood

  
	
   

  	
   

  	
  John A. Elwood

  
	
   

  	
   

  	
  Vice President –
  Finance and Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  /s/Steven G.
  Murdock

  
	
   

  	
  Steven G.
  Murdock

  
	
   

  	
   

  
	
   

  	
  [ADDRESS]

  
	
   

  	
   

  
	
   

  	
   

  

 

10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00157-of-00352.parquet"}]]