Document:

EMPLOYMENT AGREEMENT

         THIS  EMPLOYMENT  AGREEMENT (the  "Agreement") is made and entered into
effective as of the 25th day of July,  2000,  by and between  EVANS & SUTHERLAND
COMPUTER  CORPORATION,  a Utah  corporation  (the "Company") and THOMAS ATCHISON
(the "Executive").

                                             W I T N E S S E T H:

         WHEREAS, the Executive has been providing services to the Company in an
executive capacity and desires to continue to provide such services;

         WHEREAS, the Company desires to have  the  benefit of  the  Executive's
efforts and services; and

         WHEREAS,  the Company has determined  that it is appropriate and in the
best  interests  of the Company to provide to the  Executive  protection  in the
event of certain  terminations of the Executive's  employment  relationship with
the Company in accordance with the terms and conditions contained herein and the
Executive desires to have such protection.

         NOW,  THEREFORE,  in  consideration  of the foregoing and of the mutual
covenants and agreements  hereinafter  set forth,  the Company and the Executive
hereby mutually covenant and agree as follows:

         1.       DEFINITIONS.

         Whenever used in this  Agreement,  the  following  terms shall have the
meanings set forth below:

                  (a) "Accrued Benefits" shall mean the amount payable not later
         than ten (10) days following an applicable  Termination  Date and which
         shall be equal to the sum of the following amounts:

                         (i)  All   salary   earned  or  accrued   through   the
                    Termination Date;

                         (ii)  Reimbursement  for any and all monies advanced in
                    connection  with the  Executive's  employment for reasonable
                    and necessary expenses incurred by the Executive through the
                    Termination Date;

                         (iii) Any and all other cash benefits previously earned
                    through the Termination Date and deferred at the election of
                    the Executive or pursuant to any deferred compensation plans
                    then in effect;

                         (iv) The full amount of any stated bonus payable to the
                    Executive in accordance  with Sections  6(b)-(c) herein with
                    respect to the year in which termination occurs; and

                         (v) All  other  payments  and  benefits  to  which  the
                    Executive  may be  entitled  under the terms of any  benefit
                    plan of the Company.
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                                       2

                  (b) "Act" shall mean the Securities Exchange Act of 1934;

                  (c) "Affiliate" shall have  the same meaning as given  to that
         term in Rule 12b-2 of Regulation 12B promulgated under the Act;

                  (d)  "Base  Period  Income"  shall be an  amount  equal to the
         Executive's "annualized includable  compensation" for the "base period"
         as  defined  in  Sections  280G(d)(1)  and  (2) of  the  Code  and  the
         regulations adopted thereunder;

                  (e) "Beneficial Owner" shall have the same meaning as given to
         that term in Rule 13d-3 of the  General  Rules and  Regulations  of the
         Act,  provided that any pledgee of Company voting  securities shall not
         be deemed to be the Beneficial  Owner thereof prior to its  disposition
         of, or acquisition of voting rights with respect to, such securities;

                  (f)  "Board" shall mean the Board of Directors of the Company;

                  (g)  "Cause" shall mean any of the following:

                         (i)  The  engaging  by  the   Executive  in  fraudulent
                    conduct,  as evidenced by a  determination  in a binding and
                    final judgment, order or decree of a court or administrative
                    agency of competent jurisdiction, in effect after exhaustion
                    or lapse of all  rights of  appeal,  in an  action,  suit or
                    proceeding,  whether  civil,  criminal,   administrative  or
                    investigative,  which  the  Board  determines,  in its  sole
                    discretion,  has a significant adverse impact on the Company
                    in the conduct of the Company's business;

                         (ii) Conviction of a felony,  as evidenced by a binding
                    and final judgment,  order or decree of a court of competent
                    jurisdiction,  in effect  after  exhaustion  or lapse of all
                    rights of appeal,  which the Board  determines,  in its sole
                    discretion,  has a significant adverse impact on the Company
                    in the conduct of the Company's business;

                         (iii)  Neglect or refusal by the  Executive  to perform
                    the   Executive's   duties   or   responsibilities   (unless
                    significantly changed without the Executive's consent); or

                         (iv) A  significant  violation by the  Executive of the
                    Company's established policies and procedures;

         Notwithstanding  the  foregoing,  Cause shall not exist under  Sections
         1(g)(iii) and (iv) herein unless the Company  furnishes  written notice
         to the  Executive of the specific  offending  conduct and the Executive
         fails to correct  such  offending  conduct  within the thirty  (30) day
         period commencing on the receipt of such notice.

                  (h) "Change of Control"  shall mean a change in  ownership  or
         managerial  control of the stock,  assets or  business  of the  Company
         resulting from one or more of the following circumstances:
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                                       3

                           (i) A change of control of the  Company,  of a nature
                  that would be required to be reported in response to Item 6(e)
                  of Schedule 14A of Regulation 14A  promulgated  under the Act,
                  or any successor  regulation of similar import,  regardless of
                  whether the Company is subject to such reporting requirement;

                           (ii) A change in ownership  of the Company  through a
                  transaction or series of transactions, such that any Person or
                  Persons  (other  than any  current  officer of the  Company or
                  member of the Board) is (are) or become(s),  in the aggregate,
                  the Beneficial Owner(s), directly or indirectly, of securities
                  of the Company  representing  thirty  percent (30%) or more of
                  the Company's then outstanding securities;

                           (iii) Any  consolidation  or merger of the Company in
                  which  the  Company  is  not  the   continuing   or  surviving
                  corporation or pursuant to which shares of the common stock of
                  the  Company  would be  converted  into cash  (other than cash
                  attributable  to  dissenters'  rights),  securities  or  other
                  property  provided  by a  Person  or  Persons  other  than the
                  Company,  other than a consolidation  or merger of the Company
                  in which  the  holders  of the  common  stock  of the  Company
                  immediately   prior  to  the   consolidation  or  merger  have
                  approximately the same proportionate ownership of common stock
                  of   the   surviving   corporation   immediately   after   the
                  consolidation or merger;

                         (iv) The  shareholders  of the Company  approve a sale,
                  transfer,   liquidation  or  other  disposition  of  all  or
                  substantially  all of  the assets of the  Company to a Person
                  or Persons;

                           (v) During any period of two (2)  consecutive  years,
                  individuals who, at the beginning of such period,  constituted
                  the Board of Directors of the Company  cease,  for any reason,
                  to constitute at least a majority thereof, unless the election
                  or  nomination  for election of each new director was approved
                  by the vote of at least two-thirds (2/3) of the directors then
                  still in office who were  directors  at the  beginning  of the
                  period;

                           (vi) The filing of a  proceeding  under  Chapter 7 of
                  the Federal Bankruptcy Code (or any successor or other statute
                  of  similar  import)  for  liquidation  with  respect  to  the
                  Company; or

                           (vii) The filing of a proceeding  under Chapter 11 of
                  the Federal Bankruptcy Code (or any successor or other statute
                  of similar  import)  for  reorganization  with  respect to the
                  Company  if in  connection  with  any  such  proceeding,  this
                  Agreement is rejected, or a plan of reorganization is approved
                  an element of which plan  entails  the  liquidation  of all or
                  substantially all the assets of the Company.

         A "Change of  Control"  shall be deemed to occur on the actual  date on
         which  any  of  the  foregoing  circumstances  shall  occur;  provided,
         however,  that in  connection  with a "Change of Control"  specified in
         Section  1(h)(vii),  a "Change of Control"  shall be deemed to occur on
         the date of the filing of the relevant  proceeding  under Chapter 11 of
         the  Federal  Bankruptcy  Code (or any  successor  or other  statute of
         similar import).
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                                       4

                  (i)  "Change  of  Control   Period"   shall  mean  the  period
         commencing  on the date a Change of  Control  occurs  and ending on the
         second anniversary of such Change of Control;

                  (j)  "Code" shall mean  the Internal Revenue Code of 1986, as
         amended from time to time;

                  (k)  "Disability"  shall mean a physical  or mental  condition
         whereby the  Executive  is unable to perform on a  full-time  basis the
         customary duties of the Executive under this Agreement;

                  (l)      "Federal Short Term-Rate" shall mean the rate defined
         in Section 1274(d)(1)(C)(i) of the Code;

                  (m)      "Good Reason" shall mean:

                           (i) The required relocation of the Executive, without
                  the Executive's  consent,  to an employment  location which is
                  more  than   seventy-five  (75)  miles  from  the  Executive's
                  employment  location  on the day  preceding  the  date of this
                  Agreement;

                           (ii) The removal of the Executive from or any failure
                  to reelect the Executive to any of the  positions  held by the
                  Executive  as of the  date  of  this  Agreement  or any  other
                  positions to which the Executive  shall  thereafter be elected
                  or assigned  except in the event that such  removal or failure
                  to reelect  relates to the  termination  by the Company of the
                  Executive's  employment  for  Cause  or by  reason  of  death,
                  Disability or voluntary retirement;

                           (iii)  A  significant  adverse  change,  without  the
                  Executive's  written  consent,  in the  nature or scope of the
                  Executive's   authority,    powers,   functions,   duties   or
                  responsibilities,  or a  material  reduction  in the  level of
                  support  services,  staff,  secretarial and other  assistance,
                  office space and accoutrements available to a level below that
                  which was provided to the  Executive on the day  preceding the
                  date of this  Agreement and that which is necessary to perform
                  any additional duties assigned to the Executive  following the
                  date of this  Agreement,  which  change  or  reduction  is not
                  generally effective for all executives employed by the Company
                  (or its successor) in the Executive's class or category; or

                           (iv)  Breach or violation of  any material provision
                  of this Agreement by the Company;

                  (n) "Gross Income" shall mean the Executive's average targeted
         compensation  (base  salary  plus  cash  bonus)  for the  prior two (2)
         taxable years, plus any other compensation  payable to the Executive by
         the Company for the same period, whether taxable or non-taxable;

                  (o) "Notice of Termination" shall mean the notice described in
         Section 14 herein;
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                                       5

                  (p) "Person"  shall mean any  individual,  partnership,  joint
         venture, association, trust, corporation or other entity, other than an
         employee benefit plan of the Company or an entity organized,  appointed
         or established pursuant to the terms of any such benefit plan;

                  (q) "Termination  Date"  shall  mean, except  as  otherwise
         provided in Section 14 herein,

                         (i) The Executive's date of death;

                         (ii) Thirty (30) days after the  delivery of the Notice
                    of Termination  terminating  the  Executive's  employment on
                    account of Disability  pursuant to Section 9 herein,  unless
                    the   Executive   returns  on  a  full-time   basis  to  the
                    performance  of his or her duties prior to the expiration of
                    such period;

                         (iii) Thirty (30) days after the delivery of the Notice
                    of Termination if the  Executive's  employment is terminated
                    by the Executive voluntarily; or

                         (iv) Thirty (30) days after the  delivery of the Notice
                    of Termination if the  Executive's  employment is terminated
                    by  the  Company   for  any  reason   other  than  death  or
                    Disability; (r) "Termination Payment" shall mean the payment
                    described in Section 13 herein;

                  (s) "Total  Payments"  shall  mean the sum of the  Termination
         Payment  and any other  "payments  in the nature of  compensation"  (as
         defined  in  Section  280G  of the  Code  and the  regulations  adopted
         thereunder)  to or for the  benefit of the  Executive,  the  receipt of
         which is contingent on a Change of Control and to which Section 280G of
         the Code applies.

         2.       EMPLOYMENT.

         The Company  hereby  agrees to employ the  Executive  and the Executive
hereby  agrees to serve the  Company,  on the  terms  and  conditions  set forth
herein.

         3.       TERM.

         The  employment  of  the  Executive  by  the  Company  pursuant  to the
provisions  of this  Agreement  shall  commence  on the date  hereof  and end on
December 31, 2001,  unless further extended or sooner  terminated as hereinafter
provided.  On  December  31,  2001,  and on the last day of  December  each year
thereafter,  the  term  of  the  Executive's  employment  shall,  unless  sooner
terminated as hereinafter provided, be automatically  extended for an additional
one year period from the date  thereof  unless,  at least six (6) months  before
such  December  31, the Company  shall have  delivered  to the  Executive or the
Executive  shall have  delivered to the Company  written notice that the term of
the  Executive's  employment  hereunder will not be extended beyond its existing
duration.
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                                       6

         4.       POSITIONS AND DUTIES.

         The Executive shall serve as Group Executive of the Company and in such
additional  capacities as set forth in Section 7 herein.  In connection with the
foregoing positions, the Executive shall have such duties,  responsibilities and
authority  as may from time to time be assigned to the  Executive  by the Board.
The Executive shall devote  substantially  all the Executive's  working time and
efforts to the business and affairs of the Company.

         5.       PLACE OF PERFORMANCE.

         In  connection  with the  Executive's  employment  by the Company,  the
Executive  shall be based at the principal  executive  offices of the Company in
Salt Lake City, Utah except for required travel on Company business.

         6.       COMPENSATION AND RELATED MATTERS.

                  (a)  Salary.  The  Company  shall  pay  to the  Executive  his
         annualized  base  salary  (as in effect on the  effective  date of this
         Agreement  and  subject  to  adjustment  as  provided  herein) in equal
         installments  (as  nearly  as  practicable),  in  accordance  with  the
         Company's  standard  payroll  policy (as in effect  from time to time),
         which  currently  provides for payments to be made every two weeks,  in
         arrears. Such annualized base salary may be increased from time to time
         in  accordance  with normal  business  practices  of the  Company.  The
         annualized  base salary of the Executive  shall not be decreased  below
         its then existing amount during the term of this Agreement.

                  (b)      ESIP.  The Executive shall be entitled to participate
         in the Evans & Sutherland Incentive Program.

                  (c)      SERP.  The Executive shall be entitled to participate
         in the Company's Supplemental Executive Retirement Plan.

                  (d)  Expenses.  The  Executive  shall be  entitled  to receive
         prompt  reimbursement  for  all  reasonable  expenses  incurred  by the
         Executive in performing services hereunder,  including all expenses for
         travel and living  expenses  while away from home on business or at the
         request  of and in the  service  of the  Company,  provided  that  such
         expenses are incurred and accounted for in accordance with the policies
         and procedures established from time to time by the Company.

                  (e) Other Benefits.  The Company shall provide  Executive with
         all other  benefits  normally  provided  to an  employee of the Company
         similarly  situated  to  Executive,  including  being  added as a named
         officer on the Company's  existing  directors' and officers'  liability
         insurance policy.

                  (f) Vacations.  The Executive  shall be entitled to the number
         of vacation days in each calendar year, and to  compensation in respect
         of earned but unused  vacation days,  determined in accordance with the
         Company's  vacation  plan, but in no event less than fifteen (15) days.
         The Executive  shall also be entitled to all paid holidays given by the
         Company to its executives.

                  (g)  Services   Furnished.   The  Company  shall  furnish  the
         Executive with office space,  and such other facilities and services as
         shall be suitable to the  Executive's  position  and  adequate  for the
         performance of the Executive's duties as set forth in Section 4 hereof.
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                                       7

         7.       OFFICES.

         The  Executive  agrees to serve  without  additional  compensation,  if
elected or appointed  thereto,  in one or more executive offices of the Company,
or any affiliate or  subsidiary  of the Company,  or as a member of the board of
directors of any subsidiary or affiliate of the Company; provided, however, that
the  Executive is  indemnified  for serving in any and all such  capacities on a
basis no less favorable than is currently  provided in the Company's  bylaws, or
otherwise.

         8.       TERMINATION AS A RESULT OF DEATH.

         If the  Executive  shall die  during  the term of this  Agreement,  the
Executive's  employment shall terminate on the Executive's date of death and the
Executive's  surviving spouse,  or the Executive's  estate if the Executive dies
without  a  surviving  spouse,  shall be  entitled  to the  Executive's  Accrued
Benefits as of the Termination Date and any applicable Termination Payment.

         9.       TERMINATION FOR DISABILITY.

         If, as a result of the Executive's Disability, the Executive shall have
been unable to perform the Executive's duties hereunder on a full-time basis for
four (4)  consecutive  months and  within  thirty  (30) days  after the  Company
provides the Executive with a Termination  Notice,  the Executive shall not have
returned to the performance of the Executive's  duties on a full-time basis, the
Company may terminate the Executive's employment,  subject to Section 14 herein.
During  the  term  of the  Executive's  Disability  prior  to  termination,  the
Executive  shall  continue  to receive  all salary and  benefits  payable  under
Section  6  herein,  including  participation  in all  employee  benefit  plans,
programs and  arrangements  in which the Executive  was entitled to  participate
immediately  prior to the Disability;  provided,  however,  that the Executive's
continued  participation  is permitted  under the terms and  provisions  of such
plans,   programs  and   arrangements.   In  the  event  that  the   Executive's
participation  in any such plan,  program or arrangement is barred as the result
of such  Disability,  the Executive shall be entitled to receive an amount equal
to the  contributions,  payments,  credits or allocations  which would have been
paid by the  Company  to the  Executive,  to the  Executive's  account or on the
Executive's behalf under such plans, programs and arrangements. In the event the
Executive's employment is terminated on account of the Executive's Disability in
accordance  with this Section 9, the  Executive  shall  receive the  Executive's
Accrued  Benefits as of the  Termination  Date and shall remain eligible for all
benefits provided by any long-term  disability programs of the Company in effect
at the time of such  termination.  The  Executive  shall also be entitled to the
Termination Payment described in Section 13(a).

         10.      TERMINATION FOR CAUSE.

         If the  Executive's  employment  with the Company is  terminated by the
Company for Cause, subject to the procedures set forth in Section 14 herein, the
Executive  shall be entitled to receive the Executive's  Accrued  Benefits as of
the  Termination  Date.  The  Executive  shall not be entitled to receipt of any
Termination Payment.

         11.      OTHER TERMINATION BY COMPANY.

         If the  Executive's  employment  with the Company is  terminated by the
Company other than by reason of death,  Disability or Cause,  or as described in
paragraph 13(g) below, subject to the procedures set forth in Section 14 herein,
the  Executive  (or  in  the  event  of  the  Executive's  death  following  the
Termination Date, the Executive's  surviving spouse or the Executive's estate if
the Executive  dies without a surviving  spouse)  shall  receive the  applicable
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                                       8

Termination   Payment.   The  Executive   shall  not,  in  connection  with  any
consideration  receivable  in  accordance  with this  Section 11, be required to
mitigate  the amount of such  consideration  by  securing  other  employment  or
otherwise and such consideration shall not be reduced by reason of the Executive
securing other employment or for any other reason.

         12.      VOLUNTARY TERMINATION BY EXECUTIVE.

         Provided  that the Executive  furnishes  thirty (30) days prior written
notice  to the  Company,  the  Executive  shall  have the  right to  voluntarily
terminate this Agreement at any time. If the Executive's  voluntary  termination
is without Good Reason,  the  Executive  shall receive the  Executive's  Accrued
Benefits as of the Termination Date and shall not be entitled to any Termination
Payment.  If the  Executive's  voluntary  termination  (other than a termination
described in paragraph 13(g) below) is for Good Reason, the Executive (or in the
event of the Executive's  death following the Termination  Date, the Executive's
surviving  spouse or the  Executive's  estate if the  Executive  dies  without a
surviving  spouse)  shall  receive  the  applicable   Termination  Payment.  The
Executive  shall  not,  in  connection  with  any  consideration  receivable  in
accordance  with this  Section 12, be  required  to mitigate  the amount of such
consideration by securing other  employment or otherwise and such  consideration
shall not be reduced by reason of the Executive securing other employment or for
any other reason.

         13.      TERMINATION PAYMENT.

                  (a) If the Executive's employment is terminated as a result of
         death or disability,  the lump sum  Termination  Payment payable to the
         Executive shall be equal to the  Executive's  Gross Income for the year
         preceding the Termination Date.

                  (b)  If  the  Executive's  employment  is  terminated  by  the
         Executive  for Good Reason or by the Company for any reason  other than
         death,  disability or Cause,  the  Termination  Payment  payable to the
         Executive by the Company or an affiliate of the Company  shall be equal
         to the Executive's  Gross Income for the year preceding the Termination
         Date.

                  (c) If,  during a Change of Control  Period,  the  Executive's
         employment  is  terminated  by the  Executive for Good Reason or by the
         Company for any reason  other than  death,  Disability,  or Cause,  the
         Termination  Payment  payable  to the  Executive  by the  Company or an
         affiliate of the Company shall be two (2.0) times the Executive's Gross
         Income for the year preceding the Termination Date.

                  (d) It is the intention of the Company and the Executive  that
         no portion of the  Termination  Payment and any other  "payments in the
         nature of compensation" (as defined in Section 280G of the Code and the
         regulations  adopted thereunder) to or for the benefit of the Executive
         under  this  Agreement,   or  under  any  other   agreement,   plan  or
         arrangement,  be deemed to be an "excess parachute  payment" as defined
         in Section 280G of the Code. It is agreed that the present value of the
         Total Payments shall not exceed an amount equal to two and  ninety-nine
         hundredths  (2.99) times the Executive's  Base Period Income,  which is
         the maximum  amount which the  Executive may receive  without  becoming
         subject to the tax  imposed  by  Section  4999 of the Code or which the
         Company may pay without loss of deduction  under Section 280G(a) of the
         Code.  Present value for purposes of this Agreement shall be calculated
         in  accordance  with the  regulations  issued under Section 280G of the
         Code.  Within  sixty  (60) days  following  delivery  of the  Notice of
         Termination  or notice by the  Company to the  Executive  of its belief
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                                       9

         that there is a payment or benefit due the Executive  which will result
         in an excess parachute  payment as defined in Section 280G of the Code,
         the Executive and the Company shall, at the Company's  expense,  obtain
         such  opinions  as more fully  described  hereafter,  which need not be
         unqualified,  of legal counsel and certified  public  accountants  or a
         firm of recognized executive  compensation  consultants.  The Executive
         shall  select said legal  counsel,  certified  public  accountants  and
         executive  compensation  consultants;  provided,  however,  that if the
         Company does not accept one (1) or more of the parties  selected by the
         Executive,  the Company shall  provide the Executive  with the names of
         such legal  counsel,  certified  public  accountants  and/or  executive
         compensation consultants as the Company may select; provided,  further,
         however,  that if the  Executive  does not  accept the party or parties
         selected  by  the  Company,   the  legal  counsel,   certified   public
         accountants and/or executive  compensation  consultants selected by the
         Executive  and  the  Company,  respectively,  shall  select  the  legal
         counsel,  certified public  accountants  and/or executive  compensation
         consultants,  whichever is  applicable,  who shall provide the opinions
         required by this Section 13(e). The opinions  required  hereunder shall
         set forth (a) the amount of the Base  Period  Income of the  Executive,
         (b) the present value of Total  Payments and (c) the amount and present
         value of any excess parachute payments. In the event that such opinions
         determine  that  there  would  be  an  excess  parachute  payment,  the
         Termination  Payment or any other payment determined by such counsel to
         be  includable  in Total  Payments  shall be reduced or  eliminated  as
         specified by the Executive in writing  delivered to the Company  within
         thirty  (30) days of his or her  receipt  of such  opinions  or, if the
         Executive  fails to so notify the  Company,  then as the Company  shall
         reasonably determine,  so that under the bases of calculation set forth
         in  such  opinions  there  will be no  excess  parachute  payment.  The
         provisions of this Section 13(e),  including the calculations,  notices
         and opinions  provided  for herein  shall be based upon the  conclusive
         presumption that the compensation and other benefits, including but not
         limited to the Accrued Benefits,  earned on or after the date of Change
         of Control by the  Executive  pursuant  to the  Company's  compensation
         programs  if such  payments  would  have been made in the future in any
         event,  even  though the timing of such  payment  is  triggered  by the
         Change of Control,  are reasonable  compensation for services  rendered
         prior to the Change of Control;  provided,  however,  that in the event
         legal  counsel so requests in connection  with the opinion  required by
         this  Section  13(e),  a  firm  of  recognized  executive  compensation
         consultants,  selected by the Executive and the Company pursuant to the
         procedures set forth above,  shall provide an opinion,  upon which such
         legal  counsel  may  rely,  as to the  reasonableness  of any  item  of
         compensation as reasonable  compensation for services rendered prior to
         the  Change  of  Control  by the  Executive.  In  the  event  that  the
         provisions of Sections  280G and 4999 of the Code are repealed  without
         succession, this Section 13(e) shall be of no further force or effect.

                  (f) The Termination Payment shall be payable in a lump sum not
         later than ten (10) days following the  Executive's  Termination  Date.
         Such lump sum  payment  shall not be  reduced by any  present  value or
         similar  factor.  Further,  the  Executive  shall  not be  required  to
         mitigate the amount of such  payment by securing  other  employment  or
         otherwise  and such  payment  shall  not be  reduced  by  reason of the
         Executive securing other employment or for any other reason.
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                                       10

                  (g)  Notwithstanding  anything to the contrary  herein,  in no
         event will a termination of Executive's  employment with the Company be
         deemed to  trigger  a right to  receive a  Termination  Payment  if the
         termination  is  effected  by the mutual  agreement  of the Company and
         Executive  to  accommodate  a  reassignment  of  Executive to an entity
         created  or  acquired  by the  Company,  or to which  the  Company  has
         contributed  rights to technology,  assets or business plans, if at the
         time of such  termination the Company owns or is acquiring a minimum of
         a 19%  equity  interest  in  such  entity.  In the  event  of any  such
         termination,  the  Executive  shall only be  entitled  to  receive  the
         Executive's Accrued Benefits as of the Termination Date.

         14.      TERMINATION NOTICE AND PROCEDURE.

         Any  termination  by the Company or the  Executive  of the  Executive's
employment  during the Employment Period shall be communicated by written Notice
of Termination  to the Executive,  if such Notice of Termination is delivered by
the Company,  and to the Company,  if such Notice of Termination is delivered by
the Executive, all in accordance with the following procedures:

                  (a) The Notice of  Termination  shall  indicate  the  specific
         termination provision in this Agreement relied upon and shall set forth
         in reasonable detail the facts and  circumstances  alleged to provide a
         basis for termination;

                  (b) Any Notice of Termination by the Company shall be approved
         by a  resolution  duly  adopted  by  a majority of the directors of the
         Company then in office;

                  (c) If the  Executive  shall in good faith furnish a Notice of
         Termination for Good Reason and the Company notifies the Executive that
         a dispute exists  concerning the  termination,  within the fifteen (15)
         day  period  following  the  Company's  receipt  of  such  notice,  the
         Executive  shall  continue  the  Executive's   employment  during  such
         dispute. If it is thereafter determined that (i) Good Reason did exist,
         the Executive's  Termination  Date shall be the earlier of (A) the date
         on which the dispute is finally  determined,  either by mutual  written
         agreement of the parties or pursuant to Section 19, (B) the date of the
         Executive's  death or (C) one day prior to the second (2nd) anniversary
         of a Change of Control,  and the Executive's  Termination  Payment,  if
         applicable,   shall  reflect  events   occurring  after  the  Executive
         delivered the Executive's  Notice of  Termination;  or (ii) Good Reason
         did not exist,  the  employment of the Executive  shall  continue after
         such  determination as if the Executive had not delivered the Notice of
         Termination asserting Good Reason; and

                  (d) If the  Executive  gives  notice to  terminate  his or her
         employment  for Good Reason and a dispute  arises as to the validity of
         such dispute, and the Executive does not continue his employment during
         such  dispute,  and  it is  finally  determined  that  the  reason  for
         termination  set forth in such Notice of Termination  did not exist, if
         such notice was  delivered by the  Executive,  the  Executive  shall be
         deemed to have voluntarily  terminated the Executive's employment other
         than for Good Reason.

         15.      NONDISCLOSURE OF PROPRIETARY INFORMATION.

         Recognizing  that the Company is presently  engaged,  and may hereafter
continue to be engaged,  in the  research  and  development  of  processes,  the
manufacturing of products or performance of services, which involve experimental
<PAGE>
                                       11

and  inventive  work and that  the  success  of its  business  depends  upon the
protection of the  processes,  products and services by patent,  copyright or by
secrecy and that the Executive  has had, or during the course of his  engagement
may have,  access to Proprietary  Information,  as hereinafter  defined,  of the
Company or other  information and data of a secret or proprietary  nature of the
Company  which the Company  wishes to keep  confidential  and the  Executive has
furnished,  or during the course of his engagement may furnish, such information
to the Company, the Executive agrees that:

                  (a) "Proprietary  Information" shall mean any and all methods,
         inventions,  improvements or discoveries,  whether or not patentable or
         copyrightable, and any other information of a similar nature related to
         the  business of the Company  disclosed  to the  Executive or otherwise
         made known to him as a consequence  of or through his engagement by the
         Company  (including  information  originated  by the  Executive) in any
         technological  area  previously  developed by the Company or developed,
         engaged  in,  or  researched,  by the  Company  during  the term of the
         Executive's engagement,  including,  but not limited to, trade secrets,
         processes,   products,  formulae,  apparatus,   techniques,   know-how,
         marketing plans, data, improvements,  strategies,  forecasts,  customer
         lists, and technical requirements of customers, unless such information
         is in the public domain to such an extent as to be readily available to
         competitors;

                  (b) The Executive  acknowledges that the Company has exclusive
         property rights to all Proprietary Information and the Executive hereby
         assigns  all  rights  he might  otherwise  possess  in any  Proprietary
         Information  to the Company.  Except as required in the  performance of
         his duties to the Company, the Executive will not at any time during or
         after the term of his engagement,  which term shall include any time in
         which the  Executive  may be retained  by the Company as a  consultant,
         directly or indirectly  use,  communicate,  disclose or disseminate any
         Proprietary   Information  or  any  other   information  of  a  secret,
         proprietary,  confidential or generally  undisclosed nature relating to
         the Company, its products, customers, processes and services, including
         information relating to testing, research, development,  manufacturing,
         marketing and selling;

                  (c) All documents,  records,  notebooks,  notes, memoranda and
         similar repositories of, or containing,  Proprietary Information or any
         other information of a secret,  proprietary,  confidential or generally
         undisclosed  nature  relating  to the  Company  or its  operations  and
         activities  made  or  compiled  by the  Executive  at any  time or made
         available  to him or her prior to or during the term of his  engagement
         by the  Company,  including  any and all copies  thereof,  shall be the
         property of the  Company,  shall be held by him or her in trust  solely
         for the benefit of the  Company,  and shall be delivered to the Company
         by him or her on the  termination  of his or her  engagement  or at any
         other time on the request of the Company; and

                  (d) The  Executive  will  not  assert  any  rights  under  any
         inventions, copyrights, discoveries, concepts or ideas, or improvements
         thereof,  or know-how related thereto,  as having been made or acquired
         by him or her  prior to his or her  being  engaged  by the  Company  or
         during the term of his  engagement if based on or otherwise  related to
         Proprietary Information.
<PAGE>
                                       12

         16.      ASSIGNMENT OF INVENTIONS.

                  (a) For  purposes of this  Section  16, the term  "Inventions"
         shall mean  discoveries,  concepts,  and ideas,  whether  patentable or
         copyrightable  or not,  including  but  not  limited  to  improvements,
         know-how, data, processes,  methods,  formulae, and techniques, as well
         as improvements  thereof or know-how  related  thereto,  concerning any
         past,  present  or  prospective  activities  of the  Company  which the
         Executive  makes,  discovers  or  conceives  (whether or not during the
         hours of his  engagement or with the use of the  Company's  facilities,
         materials or  personnel),  either  solely or jointly with others during
         his or her  engagement by the Company or any affiliate and, if based on
         or related to Proprietary Information, at any time after termination of
         such  engagement.  All  Inventions  shall be the sole  property  of the
         Company, and Executive agrees to perform the provisions of this Section
         16 with  respect  thereto  without  the  payment by the  Company of any
         royalty  or  any   consideration   therefor   other  than  the  regular
         compensation  paid to the  Executive  in the capacity of an employee or
         consultant.

                  (b) The Executive shall maintain written notebooks in which he
         or she  shall set  forth,  on a current  basis,  information  as to all
         Inventions,  describing  in  detail  the  procedures  employed  and the
         results  achieved as well as  information as to any studies or research
         projects  undertaken on the  Company's  behalf.  The written  notebooks
         shall  at all  times  be the  property  of the  Company  and  shall  be
         surrendered  to the Company upon  termination  of his or her engagement
         or, upon request of the Company, at any time prior thereto.

                  (c) The Executive  shall apply,  at the Company's  request and
         expense,  for United  States and foreign  letters  patent or copyrights
         either  in the  Executive's  name or  otherwise  as the  Company  shall
         desire.

                  (d) The Executive  hereby assigns to the Company all of his or
         her rights to such  Inventions,  and to applications  for United States
         and/or foreign letters patent or copyrights and to United States and/or
         foreign letters patent or copyrights granted upon such Inventions.

                  (e) The Executive shall  acknowledge  and deliver  promptly to
         the Company,  without charge to the Company,  but at its expense,  such
         written  instruments  (including  applications  and assignments) and do
         such other acts, such as giving testimony in support of the Executive's
         inventorship,  as may be  necessary  in the  opinion of the  Company to
         obtain,  maintain,  extend,  reissue and enforce  United  States and/or
         foreign letters patent and copyrights relating to the Inventions and to
         vest the entire right and title  thereto in the Company or its nominee.
         The Executive  acknowledges and agrees that any copyright  developed or
         conceived of by the Executive during the term of Executive's employment
         which is related to the  business of the  Company  shall be a "work for
         hire" under the copyright law of the United States and other applicable
         jurisdictions.

                  (f) The Executive  represents  that his or her  performance of
         all the terms of this  Agreement and as an employee of or consultant to
         the Company  does not and will not breach any trust prior to his or her
         employment by the Company.  The Executive  agrees not to enter into any
         agreement  either  written or oral in conflict  herewith and represents
         and agrees  that he or she has not  brought and will not bring with him
         to the Company or use in the performance of his or her responsibilities

<PAGE>
                                       13

         at the Company any  materials or documents of a former  employer  which
         are  not  generally  available  to the  public,  unless  he or she  has
         obtained  written  authorization  from the  former  employer  for their
         possession and use, a copy of which has been provided to the Company.

                  (g) No provisions of this Section shall be deemed to limit the
         restrictions applicable to the Executive under Section 15.

                  (h) No provisions of this Section shall be deemed or construed
         to  require  the  Executive  to assign  to the  Company  any  rights or
         intellectual  property  with  respect  to any  invention  which  (i) is
         created  by the  Executive  entirely  on his own  time,  (ii)  does not
         constitute an "employment  invention" as defined in the Utah Employment
         Inventions  Act, and (iii) is not exempted  from the  application f the
         Utah Employment Inventions Act.

         17.      SHOP RIGHTS.

         The  Company  shall  also  have  the  royalty-free  right to use in its
business, and to make, use and sell products,  processes and/or services derived
from any inventions, discoveries, concepts and ideas, whether or not patentable,
including but not limited to processes,  methods,  formulas and  techniques,  as
well as improvements  thereof or know-how related thereto,  which are not within
the scope of Inventions as defined in Section 16 but which are conceived or made
by the  Executive  during the period he or she is engaged by the Company or with
the use or assistance of the Company's facilities, materials or personnel.

         18.      NON-COMPETE.

         The Executive  hereby agrees that during the term of this Agreement and
for the period of one year from the termination  hereof, that the Executive will
not:

                  (a) Within any  jurisdiction  or marketing  area in the United
         States  in  which  the  Company  or any  subsidiary  thereof  is  doing
         business,  own, manage, operate or control any business of the type and
         character engaged in and competitive with the Company or any subsidiary
         thereof.  For purposes of this Section,  ownership of securities of not
         in excess of five percent (5%) of any class of  securities  of a public
         company shall not be considered to be  competition  with the Company or
         any subsidiary thereof; or

                  (b) Within any  jurisdiction  or marketing  area in the United
         States  in  which  the  Company  or any  subsidiary  thereof  is  doing
         business,  act  as,  or  become  employed  as,  an  officer,  director,
         employee, consultant or agent of any business of the type and character
         engaged in and competitive with the Company or any of its subsidiaries;
         or

                  (c) Solicit any similar business to that of the Company's for,
         or sell  any  products  that  are in  competition  with  the  Company's
         products to, any company in the United States, which is, as of the date
         hereof, a customer or client of the Company or any of its subsidiaries,
         or was such a customer or client  thereof within two years prior to the
         date of this Agreement; or

                  (d) Solicit the  employment of any full time employee employed
         by  the  Company or its subsidiaries as  of  the date of termination of
         this Agreement.
<PAGE>
                                       14

         19.      REMEDIES AND JURISDICTION.

                  (a) The Executive hereby acknowledges and agrees that a breach
         of the agreements  contained in this  Agreement will cause  irreparable
         harm and damage to the  Company,  that the remedy at law for the breach
         or threatened breach of the agreements set forth in this Agreement will
         be inadequate, and that, in addition to all other remedies available to
         the Company for such breach or threatened  breach  (including,  without
         limitation,  the  right  to  recover  damages),  the  Company  shall be
         entitled to injunctive  relief for any breach or  threatened  breach of
         the agreements contained in this Agreement.

                  (b) All claims, disputes and other matters in question between
         the parties  arising  under this  Agreement,  shall,  unless  otherwise
         provided herein,  be decided by arbitration in Salt Lake City, Utah, in
         accordance  with the Model  Employment  Arbitration  Procedures  of the
         American Arbitration  Association  (including such procedures governing
         selection  of the  specific  arbitrator  or  arbitrators),  unless  the
         parties  mutually agree  otherwise.  The Company shall pay the costs of
         any such arbitration.  The award by the arbitrator or arbitrators shall
         be final,  and  judgment  may be  entered  upon it in  accordance  with
         applicable  law in any  state  or  Federal  court  having  jurisdiction
         thereof.

         20.      ATTORNEYS' FEES.

         In  the  event  that  either  party  hereunder   institutes  any  legal
proceedings in connection  with its rights or obligations  under this Agreement,
the prevailing  party in such  proceeding  shall be entitled to recover from the
other party,  all costs incurred in connection with such  proceeding,  including
reasonable  attorneys'  fees,  together with  interest  thereon from the date of
demand at the rate of twelve percent (12%) per annum.

         21.      SUCCESSORS.

         This  Agreement  and all  rights of the  Executive  shall  inure to the
benefit  of  and  be   enforceable   by  the   Executive's   personal  or  legal
representatives, estates, executors, administrators, heirs and beneficiaries. In
the event of the Executive's  death,  all amounts payable to the Executive under
this  Agreement  shall  be  paid to the  Executive's  surviving  spouse,  or the
Executive's  estate if the  Executive  dies  without a  surviving  spouse.  This
Agreement  shall inure to the benefit of, be binding upon and be enforceable by,
any successor,  surviving or resulting  corporation or other entity to which all
or  substantially  all of the  business  and  assets  of the  Company  shall  be
transferred whether by merger, consolidation, transfer or sale.

         22.      ENFORCEMENT.

         The provisions of this Agreement shall be regarded as divisible, and if
any of said provisions or any part hereof are declared  invalid or unenforceable
by a court of competent  jurisdiction,  the validity and  enforceability  of the
remainder of such provisions or parts hereof and the applicability thereof shall
not be affected thereby.

         23.      AMENDMENT OR TERMINATION.

         This Agreement may not be amended or terminated during its term, except
by written instrument executed by the Company and the Executive.
<PAGE>
                                       15

         24.      SURVIVABILITY.

         The  provisions  of Sections  15, 16, 17, 18, 19, and 20 shall  survive
termination of this Agreement.

         25.      ENTIRE AGREEMENT.

         This  Agreement sets forth the entire  agreement  between the Executive
and the Company with respect to the subject  matter  hereof,  and supersedes all
prior oral or written agreements,  negotiations,  commitments and understandings
with respect thereto.

         26.      VENUE; GOVERNING LAW.

         This Agreement and the Executive's and Company's  respective rights and
obligations  hereunder shall be governed by and construed in accordance with the
laws of the State of Utah without giving effect to the  provisions,  principles,
or policies thereof relating to choice or conflicts of laws.

         27.      NOTICE.

         Notices given pursuant to this Agreement  shall be in writing and shall
be deemed given when received,  and if mailed,  shall be mailed by United States
registered or certified mail, return receipt requested,  addressee only, postage
prepaid, if to the Company, to:

                  Company:          Evans & Sutherland Computer Corporation
                                    600 Komas Drive
                                    Salt Lake City, Utah 84108
                                    Attn:
                                    Fax: (801) 588-4500

                  Executive:        Thomas Atchison
                                    2886 Elk Horn Lane
                                    Sandy, Utah 84093
                                    Phone: (801) 733-9235

or to such other address as the Company shall have given to the Executive or, if
to the  Executive,  to such  address  as the  Executive  shall have given to the
Company.

         28.      NO WAIVER.

         No waiver by either  party at any time of any breach by the other party
of, or  compliance  with,  any  condition or  provision of this  Agreement to be
performed  by the other party shall be deemed a waiver of similar or  dissimilar
provisions or conditions at the same time or any prior or subsequent time.

         29.      HEADINGS.

         The headings  herein  contained  are for  reference  only and shall not
affect the meaning or interpretation of any provision of this Agreement.

         30.      COUNTERPARTS.

         This  Agreement  may be executed in one or more  counterparts,  each of
which  shall  be  deemed  to be an  original  but  all of  which  together  will
constitute one and the same instrument.

<PAGE>
                                       16

         IN WITNESS  WHEREOF,  the  Company  has  caused  this  Agreement  to be
executed by its duly  authorized  officer,  and the  Executive has executed this
Agreement, on the date and year first above written.

                                          "COMPANY"

                                          EVANS & SUTHERLAND COMPUTER
                                          CORPORATION, a Utah corporation

                                          By: /s/ James R. Oyler
                                             ---------------------------------
                                             James R. Oyler, President and CEO

                                          "EXECUTIVE"

                                          /s/ Thomas Atchison
                                          ------------------------------------
                                          Thomas AtchisonLloyds TSB
Commercial
----------
Lloyds TSB Commercial
Berkshire
Lloyds TSB Bank plc
1/2 Market Place
Reading
Berkshire
RG1 2EQ
Telephone 0118 950 7045
Facsimile 0118 950 2402

The Directors
Evans & Sutherland Computer Limited
2 Horsham Gates
North Street
HORSHAM
West Sussex RH13 5PJ
15th June 2000

Dear Sirs

OVERDRAFT FACILITY

We Lloyds TSB Bank plc (the  "Bank") are pleased to offer to Evans &  Sutherland
Computer  Limited an overdraft  facility in such foreign  currencies and on such
accounts  as we may  from  time  to  time  agree  on  the  following  terms  and
conditions.

Amount
The  maximum  aggregate  amount  outstanding  under  the  facility  at any  time
(calculated  on the basis of  cleared  funds)  shall not  exceed  USD  3,000,000
although  prior to 1st August 2000 excesses will be permitted  provided that the
maximum aggregate amount owing at any time does not exceed USD 5,000,000.

For the  purpose  of  determining  whether  the  total  amount  owing  is at any
particular  time  within or in excess of the agreed  limit,  amounts  owing in a
currency other than US Dollars shall be notionally  converted into US Dollars on
the basis of the Bank's  exchange  rate for buying that currency with US Dollars
at that time.

Availability
Any amounts from time to time owing under the  facility are  repayable on demand
but it is the Bank's present intention to make the facility available until 30th
November 2000. All moneys from time to time owing to the Bank under the facility
shall be repaid no later  than this date or such  later date as may from time to
time be  advised  in  writing  by the Bank.  The  amounts  owing at any time may
include  interest or costs  debited to one or more of the accounts in accordance
with the terms of this letter.

The Bank  shall  have the  right at the  time of  making  demand  or at any time
thereafter  to convert all amounts then due and payable  under the facility into
sterling at the Bank's exchange rate for selling that currency  against sterling
at that time.  The Bank shall as soon as possible after such  conversion  advise
you of the sterling amount then owing.

Interest
Interest is  calculated on the cleared daily balance of each account and will be
payable on amounts owing up to the  aforesaid  limit at 1.75% per annum over the
Bank's  short term  offered  rate from time to time for the  relevant  currency.

<PAGE>

Continuation of a letter from
Lloyds TSB Bank plc to:
Evans & Sutherland Computer Limited

                                       2

If at any time the Bank  allows the  amounts  owing to exceed the agreed  limit,
interest  will be  payable on the  excess at the  Bank's  unauthorised  currency
borrowing  rate from time to time  (currently  12% per  annum  above the  Bank's
relevant  short term offered  rate) for such  currency or currencies as the Bank
shall determine.

Interest  will be debited to the  relevant  account  or, in the case of interest
calculated in  accordance  with the previous  paragraph,  to such account as the
Bank shall determine, semi-annually in arrears (normally on the l0th of June and
December).  Interest  may also be debited  on the date upon  which the  facility
ceases to be available.

The Bank's short term  offered  rate for each  currency may vary from day to day
and upon request the Bank will advise you of the rates then applicable.

Interest  will be  calculated  on the basis of the actual number of days elapsed
and a 360 day  year or a 365 day  year as is in the  Bank's  reasonable  opinion
usual market practice for the relevant  currency.

Costs and Charges
A 30 sterling pound semi-annual charges will be payable on each currency account
in March and September.

An  arrangement  fee of USD 11,250 is payable.  This will be debited to your USD
account number 11119338 in the next few days.

All costs and expenses incurred by the Bank in creating, preserving or enforcing
the security  referred to below shall be debited to.

Security
It is a condition  of the facility  that  amounts  owing shall be secured by the
following.  Any security  which is not already in place is to be provided to the
Bank in a form acceptable to the Bank and, if so requested by the Bank, shall be
accompanied  by evidence of the value of the  security.  (a) an all moneys joint
and several  guarantee  from Evans and  Sutherland  Computer  Corporation  for a
principal  amount of USD 5,000,000  plus interest and other costs as detailed in
the guarantee, (b) a letter of negative pledge from you, (c) a letter of set off
dated  23rd April 1996 from you,  and (d) a standby  letter of credit  dated 2nd
October 1997 from US Bank of Utah for (pound) 1,000,000.

Financial  Information
Whilst the facility remains  available you should provide to the Bank as soon as
possible  after  the end of the  period  to  which  they  relate  copies  of any
financial  infom1ation  that the Bank may from time to time reasonably  request,
including.  (a) your audited annual  accounts within 210 days of the end of your
financial year , (b) your quarterly  management  accounts  within 45 days of the
end of each quarter,  and (c) the quarterly 10-Q reports of Evans and Sutherland
Computer  Corporation  within 60 days of the end of each  quarter and the annual
10-K reports of Evans and Sutherland Computer Corporation within 120 days of the
end of their financial year.

<PAGE>

Continuation of a letter from
Lloyds TSB Bank plc to:
Evans & Sutherland Computer Limited

                                       3

You should also provide to the Bank, at least 10 days prior to the commencement
of each  month,  copies  of your  cash  flows and  budgets  for the  month  then
commencing.

The figures so provided should demonstrate  that:(i) your profit before taxation
and  interest  paid and  payable is equal to or  greater  than 300% of the total
interest paid and payable,  (ii) your profit  before  taxation and interest paid
and payable is equal to or greater than 4% of the your  turnover  and,  (iii) no
dividends  have been paid or are payable.

Other Terms of Offer
This letter is for the  benefit of the  contracting  parties  only and shall not
confer any benefit on or be  enforceable  by a third party.

Please confirm your acceptance of the facility offered by returning the attached
duplicate of this letter with the acknowledgement  signed in accordance with the
bank mandate currently held by the Bank. If such confirmation is not received by
the Bank (at the address  given at the heading of this letter) by 15th July 2000
the offer will lapse.

Yours faithfully
For and on behalf of Lloyds TSB Bank plc

/s/ R. Wood
James A Riddall
Manager
Lloyds TSB Commercial

We hereby acknowledge and accept the terms of your offer dated 15th June 2000 of
which  this is a  duplicate  and  agree all the  terms  and  conditions  therein
contained.

In accepting  this letter we confirm  that  neither the  execution by us of this
letter nor the  utilisation  by us of the  facility  being made  available  will
conflict with or breach any  requirement or limitation set out in our Memorandum
and Articles of  Association.  For and on behalf of Evans & Sutherland  Computer
Limited (company registered number no 1750202)

Signed  by      /s/ Stuart J. Anderson          /s/ David J. Rushton
                date 19 June 2000               date 19 June 2000

This  letter  creates  legal  obligations.  Before  signing you may wish to take
independent advice.

<PAGE>

Board Resolution
EVANS & SUTHERLAND COMPUTER LIMITED

EXTRACT  from the  Minutes of a Meeting of the Board of  Directors  of the above
named Company duly convened and held on 19 June 2000 at 2 Horsham Gates.

1.   Opening formalities

1.1  It was noted that a quorum was present.

2.   Transaction and tabled documents

2.1  The Chairman reported that in connection with banking facilities granted or
     to be granted by Lloyds TSB Bank plc (the "Bank") to the Company,  the Bank
     required the Company to execute and deliver to the Bank an  Undertaking  in
     the  form of a Letter  of  Negative  Pledge  in the  form  produced  to the
     meeting.

2.2  It was  explained  that the  meeting  had been  called  for the  purpose of
     considering, and if thought fit, approving the execution of the Undertaking
     in the form of a Letter of Negative Pledge.

3.   Disclosure of interests

3.1  All the Directors  present confirmed that they were not in any way, whether
     directly  or  indirectly,  interested  in  the  creation  of  the  proposed
     security.

4.   Consideration  of the relevant  matters

4.1  The directors  carefully  considered the terms of the proposed security and
     unanimously decided that for the purpose of carrying on the business of the
     Company it would be in the  commercial  interests  of and to the benefit of
     the Company to give the Bank the security which it required.

5.   Resolutions

     IT WAS UNANIMOUSLY RESOLVED THAT:

5.1  the form of the  Undertaking in the form of a Letter of Negative Pledge now
     produced to the meeting be and the same is hereby approved;

5.2  the Common Seal of the Company be affixed to the Undertaking in the form of
     a Letter of Negative  Pledge and duly  witnessed in the presence of any two
     directors or anyone  director and the  Secretary of the Company or that any
     two  directors  or anyone  director  and the  Secretary  of the  Company be
     authorised to execute the security without affixing the Common Seal;

<PAGE>

5.3  any  one  director  or the  Secretary  of  the  Company  be  and is  hereby
     authorised  to do all such  other  things  and to  execute  or to cause the
     execution  of all  such  other  documents  as he may  in his  absolute  and
     unfettered  discretion think fit in connection with the facilities  granted
     or to be granted by the Bank and/or in connection with the documents;

5.4  (without  prejudice to the authority of any other person to do so) the Bank
     or its agent is  hereby  irrevocably  authorised  to date the  security  on
     behalf of the  Company  at any time  after  the  security  shall  have been
     received by the Bank or its agent; and

5.5  the  foregoing  resolutions  do not in any  way  prejudice  or  affect  the
     instructions to the Bank contained in resolutions of the board constituting
     the Company's bank mandate.

6.   Certificate

     IT IS HEREBY  CERTIFIED  THAT:

6.1  the  foregoing is a true extract from the minutes of a meeting of the board
     of directors of the Company;

6.2  the  resolutions set out in the extract were duly passed in accordance with
     the Memorandum and Articles of Association of the Company;

6.3  the  passing of the  resolutions  and the  completion  of the  transactions
     thereby  contemplated do not, and will not, contravene any provision of the
     Memorandum and Articles of Association of the Company or of any trust deed,
     bond, mortgage, charge, contract, loan agreement,  facility letter or other
     instrument binding upon the Company or its directors.

/s/ Stuart J. Anderson      /s/ Mike Wright          /s/ David J. Rushton
-----------------------     --------------------     -------------------
CHAIRMAN                    SECRETARY                DIRECTOR

<PAGE>

NEGATIVE PLEDGE

TO: Lloyds TSB Bank plc
19th June 2000

In  consideration  of your  granting  or  continuing  to grant from time to time
advances or other banking  facilities and  accommodation  to us and/or anyone or
more of our subsidiaries (within the meaning given to subsidiary  undertaking in
Section 258 of the Company Act 1985) for the time being,  we hereby  agreed that
we will not and, we will procure that none of our  subsidiary  undertakings  for
the time being will, without your prior written consent:

(a) materially change the nature of our or their business as now conducted; or

(b) create or permit to subsist or arise any mortgage,  charge,  pledge, or lien
or any other security interest or encumbrance ( other than a lien arising solely
by operation of law in the  ordinary  course of business and those  encumbrances
disclosed to you in writing  prior to the date hereof) over any of our , or such
subsidiary's present or future undertaking, property, revenue or assets; or

(c) permit to extend or  increase  the amount  secured  by any  mortgage  charge
pledge or lien or any other security  interest or  encumbrance  existing at and,
disclosed to you in writing prior to, the date hereof; or

(d) enter into or permit to subsist any  transaction  which,  in legal terms, is
not a secured  borrowing but which has or could have an economic or a commercial
or financial effect similar to that of a secured borrowing; or

(e) part with,  sell,  transfer,  lease or otherwise  dispose of ( or attempt or
agree to do any  such  thing)  the  whole  or any  material  part of our or such
subsidiary's  undertaking,  property,  revenue  or  assets ( either  by a single
transaction or a number of  transactions  whether related or not) other than for
full value on an arm's length  basis and in the  ordinary  course of business as
now conducted; or

(f)  factor  or  otherwise  assign  or deal  with  any  book or  other  debts or
securities  for  money  now and  from  time to time  due or  owing to us or them
otherwise  than by getting in and realising  the same in the ordinary  course of
trading as now conducted; or

(g) save in respect of trade debts  incurred in the ordinary  course of business
as now  conducted  give  any  guarantee  or  indemnity  or  any  other  form  of
undertaking  or  warranty  to or for the  benefit of, or lend any moneys to, any
person.

/s/ Darren Cosshall
------------------------------
FOR AND ON BEHALF OF
EVANS & SUTHERLAND COMPUTER LTD

TO: Lloyds TSB Bank plc
19th June 2000

With  reference  to the  above  undertaking  and for the  consideration  therein
mentioned we jointly and severally  agree that we will not do or suffer anything
to be done which will be a breach of the  express  terms or of the spirit of the
above  undertaking  and that in the event of any new  directors  of the  company
being  appointed  we shall  use our best  endeavours  to  obtain  from  such new
directors their joint and several agreement to be similarly  personally bound by
this undertaking.

David J. Rushton                     Stuart J. Anderson

/s/ David J. Rushton                 /s/ Stuart J. Anderson
----------------------               ----------------------
Commercial Director                  Managing Director

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