Document:

EVANS & SUTHERLAND COMPUTER CORPORATION
                            INITIAL LICENSE AGREEMENT

           THIS INITIAL LICENSE AGREEMENT ("Agreement") is made and entered into
as of August 31, 2001 (the "Effective Date") by and between EVANS & SUTHERLAND
COMPUTER CORPORATION ("E&S"), a Utah corporation, and REALVISION, INC., a
Japanese corporation ("RealVision"), each having an office for the conduct of
business at the addresses indicated below (E&S and RealVision are hereinafter
referred to individually as a "party" and collectively as the "parties").

1.         PURPOSE AND DEFINITIONS

            1.1 Purpose of this Agreement.  This Agreement is entered into under
Section 1.02 of the Asset Purchase and Intellectual  Property License Agreement,
dated as of  August  31,  2001,  between  E&S and  RealVision  ("Asset  Purchase
Agreement").

            1.2 Definitions.

                        (a) "Asset Purchase Agreement" is defined in Section 1.1

                        (b) "Attachments" means attachments, schedules, exhibits
            and  addenda to this  Agreement  describing  the  Licensed  Product,
            Documentation  and  any  special  terms  and  conditions  pertaining
            hereto.

                        (c) "Binary Code" means machine-readable,  executable or
            binary computer code.

                        (d)  "Confidential  Information"  means  information (i)
            disclosed in tangible  form that is clearly  marked or identified as
            confidential  or  proprietary  at the  time  of  disclosure  or (ii)
            disclosed  in  non-tangible  form,  identified  as  confidential  or
            proprietary at the time of disclosure,  and summarized  sufficiently
            for  identification  and  designated  as  confidential  in a written
            memorandum sent to the receiving party within thirty (30) days after
            disclosure.  Confidential  Information  may include  information  of
            third parties.  The terms and conditions of this Agreement  shall be
            considered Confidential Information.  Source Licensed Product is E&S
            Confidential Information.

                        (e)  "Derivative  Work(s)"  means a work  which is based
            upon  the  Licensed  Product,  or any  portion  thereof,  such  as a
            revision, modification, port, translation, abridgment, condensation,
            expansion,  collection,  compilation, or any other form in which the
            Licensed  Product or portion  thereof may be recast,  transformed or
            adapted,  and  which,  in the  absence  of this  Agreement  or other
            authorization by E&S, would constitute a copyright infringement.

                        (f) "Documentation" means the manuals,  guides, or other
            documentation provided for use with the Licensed Product, if any, as
            are more fully described in Attachment A hereto.

                        (g) "Intellectual  Property Rights" means all world-wide
            patents and patent rights (including design patents), copyrights and
            copyright registrations, moral rights, trade secrets, trademarks and
            service  marks,  trademark  and  service  mark  registrations,   and
            goodwill pertaining to trademarks and service marks.

                        (h) "License Term" is defined in Section 2.

                        (i)  "Licensed  Product(s)"  means (i) the  programs and
            databases more  particularly  described in Attachment 1 hereto,  and
            (ii) all inventions and other Intellectual Property Rights which are
            expressed, incorporated or embodied therein or disclosed thereby.

                        (j)  "Licensed  Trademarks"  means  all  trademarks  and
            rights  and  interests  which  are  capable  of being  protected  as
            trademarks (including  trademarks,  service marks,  designs,  logos,
            indicia,  trade names,  corporate  names,  company  names,  business
            names,  fictitious  business names,  trade dress,  trade styles, URL
            designations   and  other  source  or  business   identifiers,   and
            applications   pertaining   thereto),   and  all  registrations  and
            applications  for  registration  in all  countries of the world with
            respect to such trademarks, rights or interests, which are listed in
            Attachment B and that are owned or  controlled  by E&S or any of its
            Subsidiaries,  to the  extent  that  they  have  the  right to grant
            licenses  within  and of the  scope  set forth  herein  without  the
            requirement  to pay  consideration  to any third  party  (other than
            employees  of E&S or its  Subsidiaries)  for the  grant of a license
            under this Agreement, and the goodwill associated therewith.
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                        (k)   "Ri5000   Chipset"   means  the  Ri5000   graphics
            controller  chip and the GE5000  geometry  chip,  together  with any
            enhanced or modified version thereof.

                        (l)  "Source  Code"  means a series of  instructions  or
            program statements written in a high-level computer language. Source
            Code is  normally  readable  by persons  trained  in the  particular
            computer  language  in  question,  and is normally  translated  into
            machine-executable  binary  or object  code by means of a  compiler,
            assembler, or interpreter.

                        (m) "Source Licensed  Product" means Source Code for the
            Licensed Product.

                        (n) "Subsidiary"  means any corporation,  partnership or
            other entity, now or hereafter,  (i) at least fifty percent (50%) of
            whose  outstanding  shares or  securities  entitled  to vote for the
            election of directors or similar  managing  authority is directly or
            indirectly owned or controlled by a party hereto,  or (ii) that does
            not have outstanding shares or securities but at least fifty percent
            (50%) of whose ownership interest representing the right to make the
            decisions  for  such  entity  is  directly  or  indirectly  owned or
            controlled by a party hereto;  provided,  however, that in each case
            such corporation,  partnership or other entity shall be deemed to be
            a Subsidiary only so long as such ownership or control exists and is
            at least fifty percent (50%).

2.         License term

           The License Term shall begin on the Effective Date and expire on the
Closing Date (defined in the Asset Purchase Agreement), unless sooner terminated
under Section 8.

3.         SOURCE CODE LICENSE

            3.1  License  Grant.  Subject  to the terms and  conditions  herein,
including the  limitations in Section (d), E&S hereby grants to RealVision,  and
RealVision accepts, a non-exclusive,  nontransferable,  worldwide license during
the License Term:

                        (a) to copy, use, modify and prepare Derivative Works of
            the Source  Licensed  Product  for the sole  purpose  of  developing
            applications,  including  driver  software,  to  operate  on or with
            hardware that incorporates the Ri5000 Chipset,

                        (b) to copy,  distribute,  perform and sublicense to end
            users, in Binary Code form only, the  applications so developed from
            Source Licensed  Product  through all its channels of  distribution,
            including resellers, OEMs and VARs,

                        (c) to copy,  modify,  prepare  Derivative  Works of and
            redistribute Documentation provided with the Licensed Product, and

                        (d) to use the Licensed  Trademarks  solely in sales and
            marketing  of  RealVision   products  relating  to  advance  product
            information;   provided  that  (i)  all  such  sales  and  marketing
            materials prominently identity the Licensed Trademarks as trademarks
            of E&S and are used with  permission and (ii) Item 5 on Attachment B
            shall remain within the control of E&S until the Closing  Date.  The
            Licensed  Trademarks  will not be used in any manner that disparages
            the good will in such marks. All good will from such uses will inure
            exclusively to the benefit of E&S.

            3.2 Limitation on Use.

                        (a)  The  license   granted  herein  shall  be  used  by
            RealVision  only in the  development,  sale and  license of products
            that  operate  on or with  hardware  that  incorporates  the  Ri5000
            Chipset.

                        (b) The Licensed Product may not be sublicensed to third
            parties, other than end users as provided in Section 3.1(b).

                        (c)  The   content  of   Documentation   designated   in
            Attachment A as "Not  Restricted"  may be disclosed to third parties
            without   limitation;   the  content  of  Documentation   designated
            "Proprietary"  may be  disclosed  to  third  parties  under  written
            obligations  of  confidentiality  and  non-disclosure  comparable to
            those in Section  9; and the  content  of  Documentation  designated
            "Restricted" may be disclosed only to RealVision  employees who have
            a need to know the specific information in question,  and may not be
            disclosed to third parties.

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<PAGE>

            3.3 No Other  Rights.  No other  rights are  granted  hereunder,  by
implication,  estoppel,  statute  or  otherwise,  except as  expressly  provided
herein.  Nothing in the license  granted  herein or otherwise  contained in this
Agreement  shall  expressly  or  by  implication,  estoppel  or  otherwise  give
RealVision  any right or license in other E&S  Intellectual  Property  which now
exists or is subsequently developed, other than as contemplated in Section 5.

            3.4 Use by End Users.  RealVision agrees to indemnify,  defend,  and
hold E&S harmless  for,  from,  and against any claims,  damages,  or litigation
costs resulting from or relating to the distribution or use of Licensed Product,
or applications or products  developed from Licensed  Product,  by third parties
claiming through RealVision, regardless of the form of the action.

4.         INSPECTION OF Ri5000 source code

            4.1  Conditions of  Disclosure.  E&S will disclose to RealVision the
HDL  Verilog  Source  Code for the  Ri5000  Chipset on the  following  terms and
conditions:

                        (a) the  disclosure(s)  will  take  place  only on E&S's
            premises at mutually agreed times;

                        (b)  the  disclosure  will  be to  specified  RealVision
            employees;

                        (c) no notes,  abstracts or summaries of the Source Code
            disclosed may be made; and

                        (d)  the   disclosure   is  for  the  sole   purpose  of
            engineering  familiarization  with the design of the Ri5000 Chipset,
            and no other use may be made of the disclosed  Source Code,  whether
            or not for any  commercial  or  non-commercial  purpose,  until  the
            Closing Date as defined in the Asset Purchase Agreement.

            4.2  Delivery  of Source  Code.  Upon  receipt  by E&S of the Second
Payment  (defined in the Asset Purchase  Agreement),  E&S will deliver a copy of
the  Ri5000  Chipset  Source  Code  to  RealVision,  which  copy  may be used at
RealVision's  principal  place of business  for the  purposes  stated in Section
4.1(d).  RealVision may use, modify and prepare  Derivative  Works of the Source
Code, but may not make, have made,  distribute or sell or offer to sell products
incorporating the Source Code or Derivative Works of the Source Code.

            4.3 Confidentiality. The Ri5000 Chipset Source Code disclosed is E&S
Confidential  Information,  and  its  use  and  disclosure  is  subject  to  the
provisions  of Section 9 hereof,  except that further  disclosure  of the Source
Code to third parties is expressly prohibited.

5.         support

           Engineering support for the Licensed Product will be provided to
RealVision under the Asset Purchase Agreement, and this Agreement imposes no
additional duty or obligation on E&S to provide corrections, bug fixes, updates,
upgrades, revisions or improvements to Licensed Product.

6.         OWNERSHIP

            6.1 Ownership of the Licensed Product.  E&S owns and will retain all
rights, title and interests,  including but not limited to Intellectual Property
Rights,  in and to the Licensed  Product and  Documentation,  and in algorithms,
know-how, ideas, techniques, procedures and concepts embodied therein.

            6.2  Ownership  of  Modifications.  Each party shall own all rights,
title, and interests,  including but not limited to copyrights,  patents, patent
rights,  trade secrets and other  intellectual  property  rights,  in and to any
modifications or improvements of the Licensed  Technology,  including Inventions
and  Derivative  Works,  made,  created  or  developed  by  or  for  such  party
independently of the other party. Such  modifications or improvements  shall not
be deemed  co-developed  or made or  developed  jointly,  or to be joint work or
jointly owned, by reason of this Agreement or the use or incorporation of all or
portions of the Licensed Technology in such modification or improvement. Neither
party obtains by this Agreement any rights,  title, or interests,  including but
not  limited  to  intellectual   property  rights,   in  the   modifications  or
improvements of the other party. Neither party has any obligation to disclose or
license  such  modifications  or  improvements.  RealVision  does not obtain any
rights, title or interests,  including but not limited to intellectual  property
rights, in Derivative  Works,  other than the license conferred in Section 3 and
as expressly stated in this Section 6.2.

7.         ATTRIBUTION

           Products and software code distributed by RealVision which are based
upon or incorporate Licensed Technology shall contain appropriate markings
identifying pertinent Licensed Patents, Licensed Copyrights and Licensed

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<PAGE>

Trademarks. RealVision agrees not to remove or modify any proprietary legends,
identifications, or notices which are embodied in or affixed to the Licensed
Technology, or which are affixed to the Documentation.

8.         TERMINATION

            8.1  Termination  Generally.  This Agreement is effective  until its
expiration  or   termination.   RealVision  may  terminate  this  Agreement  and
discontinue use of the Licensed  Product upon thirty (30) days written notice to
E&S. If RealVision fails to comply with any of the material terms and conditions
of this  Agreement,  E&S may  terminate  this  Agreement  upon  sixty (60) days'
written  notice to  RealVision  specifying  any such breach,  unless  within the
period of such  notice,  all  breaches  specified in such notice shall have been
remedied,  or unless  the breach is one which,  by its  nature,  cannot be fully
remedied in sixty (60) days,  but RealVision  has  undertaken  reasonable,  good
faith  efforts  toward  remedying  the breach  within such sixty (60) days,  and
continues to use reasonable,  good faith and diligent efforts to promptly remedy
the  breach.  Termination  of this  Agreement  shall  not  terminate  a  party's
obligation  to pay any  amounts due to the other  party  hereunder  and not then
paid.

            8.2  Termination  for  Insolvency.  E&S may terminate this Agreement
upon  written  notice of  termination  to  RealVision  given at any time upon or
after:

                        (a) the filing by RealVision of a petition in bankruptcy
            or insolvency not dismissed within ninety (90) days of the filing;

                        (b) any  adjudication  that  RealVision  is  bankrupt or
            insolvent;

                        (c) the filing by  RealVision  of any petition or answer
            seeking reorganization,  readjustment or arrangement of its business
            under any law relating to bankruptcy or insolvency;

                        (d)  the   appointment   of  a   receiver   for  all  or
            substantially all of the property of RealVision;

                        (e) the making by RealVision of any  assignment  for the
            benefit of creditors; or

                        (f)  the   institution  of  any   proceedings   for  the
            liquidation  or  winding  up of  RealVision's  business  or for  the
            termination  of its corporate  charter not  dismissed  within ninety
            (90) days of the institution of the proceedings.

            8.3 Returning  Confidential  Information.  All materials  containing
Confidential  Information  of the other  party  shall be  returned to that party
within thirty (30) days after termination of this Agreement.

            8.4 Survival.  The  provisions of Sections 6, 9, 11, 13 and 14 shall
survive any termination of this Agreement.

9.         CONFIDENTIAL INFORMATION

            9.1 Restrictions. Each party shall hold in confidence, and shall use
solely for  purposes  of or as  provided  in this  Agreement,  any  Confidential
Information  received  by  it  from  the  other  or  derived  from  Confidential
Information  received from the other, and shall protect the  confidentiality  of
such with the same  degree of care that it  exercises  with  respect  to its own
information  of like import,  but in no event less than  reasonable  care, for a
period of five (5) years from the date of disclosure.

            9.2  Exceptions.  The  obligations of Section 9.1 shall not apply to
any portion of the Confidential information which:

                        (a) is now or which hereafter  through no act or failure
            to act on the part of the receiving party becomes generally known in
            the computer graphics or simulation industry;

                        (b) is hereafter  furnished to the receiving  party by a
            third   party   without   obligation   to  keep   such   information
            confidential;

                        (c) is  independently  developed by the receiving  party
            without the use of the Confidential Information;

                        (d) is  required  to be  disclosed  pursuant to a legal,
            judicial or administrative  procedure or otherwise  required by law;
            providing the  disclosing  party gives the other party notice of the
            proposed disclosure with sufficient time to seek relief;

                        (e) is  already in the  possession  of, or known to, the
            receiving party prior to its receipt; or

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<PAGE>

                        (f) is approved  for release or use without  restriction
            by written authorization of an officer of the disclosing party.

Subject to the requirements of Section 3.1(d) and 9.1 hereof, a receiving party
may disclose appropriate portions of Confidential Information to its employees
who have a need to know the specific information in question, and to auditors,
lenders and regulators having a legitimate need or right to know, in which event
the receiving party will make a reasonable effort to minimize the amount of
information disclosed and to cause such persons to maintain the confidentiality
of the information disclosed.

            9.3 Injunction.  Confidential Information has been and will continue
to be of central  importance  to the  business of a  disclosing  party,  and its
disclosure to or use by others will cause  immediate and  irreparable  injury to
the disclosing party, which may not be adequately compensated by damages and for
which  there  is no  adequate  remedy  at law.  In the  event of any  actual  or
threatened  misappropriation  or disclosure  of  Confidential  Information,  the
receiving  party  agrees  that  the  disclosing  party  will be  entitled  to an
injunction  prohibiting  such  misappropriation  or disclosure,  and to specific
enforcement of the receiving party's obligations hereunder. The foregoing rights
to an injunction and specific  performance will be cumulative and in addition to
every other remedy now or  hereafter  available  to  disclosing  party in law or
equity or by statute.

10.        REPRESENTATIONS AND WARRANTIES

           E&S represents and warrants that it has the authority to enter into
this Agreement. Except as so provided, the Licensed Product are licensed "AS
IS," WITHOUT WARRANTY OF ANY KIND.

11.        WARRANTY DISCLAIMER

           E&S DOES NOT MAKE AND EXPRESSLY DISCLAIMS ANY EXPRESS OR IMPLIED
WARRANTIES INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF DESIGN, MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT, OR ARISING FROM A COURSE
OF DEALING, USAGE, OR TRADE PRACTICE. E&S DOES NOT WARRANT THAT THE LICENSED
PRODUCT OR ANY OF ITS PARTS WILL BE ERROR FREE, WILL OPERATE WITHOUT
INTERRUPTION, OR WILL BE COMPATIBLE WITH ANY PARTICULAR SOFTWARE OR HARDWARE.

12.        Intellectual property RIGHTS indemniTY

            12.1  Indemnity.  E&S will  defend  RealVision  from any third party
action  brought  against  RealVision  to the  extent  based on a claim  that the
Licensed  Product,  or any part thereof,  infringe,  misappropriate or otherwise
violate any  Intellectual  Property Right which is the subject of a governmental
grant,  license or  registration  or is similarly  recognized or perfected under
applicable  law  (but  not  pending,  unregistered,  "common  law" or  otherwise
inchoate rights) and will pay any costs, damages and reasonable  attorneys' fees
attributable to such claim that are awarded against RealVision.  RealVision will
(a) promptly  notify E&S in writing of the claim,  (b) grant E&S sole control of
the defense and  settlement of the claim and (c) provide E&S with all reasonable
assistance, information and authority required for the defense and settlement of
the claim.

            12.2  Exclusions.  Section  12.1  does  not  apply to a claim to the
extent  attributable  to  use of the  Licensed  Product,  or  part  thereof,  in
combination with third party technology,  where use of the Licensed Product,  or
part thereof, alone is not infringing.

            12.3 SOLE REMEDY.  THIS SECTION 12 STATES E&S' SOLE OBLIGATION,  AND
REALVISION'S  EXCLUSIVE  REMEDY,  FOR ANY  THIRD-PARTY  CLAIMS  OF  INFRINGEMENT
ARISING IN CONNECTION  WITH THIS AGREEMENT.  WITHOUT  LIMITING THE GENERALITY OF
THE  FOREGOING,  E&S HAS NO  OBLIGATION  PROCURE FOR  REALVISION OR CUSTOMERS OF
REALVISION THE RIGHT TO CONTINUE  USING,  OR TO REPLACE OR MODIFY,  ANY LICENSED
PRODUCT THE USE OF WHICH IS SUBJECT TO A TEMPORARY OR PERMANENT INJUCTION.

13.        LIMITATION OF LIABILITY

           IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY LOST
REVENUES OR PROFITS OR OTHER SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE
DAMAGES ARISING OUT OF THIS AGREEMENT, INCLUDING BUT NOT LIMITED TO LOST
BUSINESS, PROFITS AND WORK STOPPAGES OR DELAYS, EVEN IF THAT PARTY HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, AND REGARDLESS WHETHER ANY REMEDY
SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE.

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14.        GENERAL

            14.1 Change of Control. E&S may terminate this Agreement upon thirty
(30) days  written  notice if there is an  assignment  or Change of  Control  by
RealVision,  in  either  case not  consented  to by E&S.  For  purposes  of this
Agreement, a "Change of Control" shall mean a transaction or a series of related
transactions  in which one or more related  parties who did not previously own a
majority  interest in RealVision  obtains a majority interest in such party and,
in the reasonable business judgment of E&S, such change in ownership will have a
material effect on RealVision's business. In the event of such termination,  the
rights and licenses granted to RealVision hereunder shall terminate.

            14.2  Choice  of Law.  This  Agreement  is made  under  and shall be
governed  by and  construed  in  accordance  with the laws of the State of Utah,
United States of America  (except that the body of law  controlling  conflict of
laws) and  specifically  excluding  from  application to this Agreement that law
known as the United Nations Conventions on the International Sale of Goods.

            14.3  Counterparts.  This  agreement  may be executed in one or more
counterparts,  each of  which  will be  deemed  an  original,  but all of  which
constitute but one and the same instrument.

            14.4 Entire  Agreement.  This  Agreement,  including all Attachments
hereto, constitutes the entire agreement between the parties with respect to the
subject matter hereof,  and supersedes and replaces all prior or contemporaneous
understandings  or agreements,  written or oral,  regarding such subject matter.
This  Agreement  will be fairly  interpreted  in  accordance  with its terms and
without  any  strict  construction  in favor or  against  either  party.  Unless
otherwise  provided  herein,  this  Agreement  may  not  be  modified,  amended,
rescinded, or waived, in whole or in part, except by a written instrument signed
by the duly authorized representatives of both parties.

            14.5 Headings.  The headings and captions in this Agreement are used
for convenience  only and are not to be considered in construing or interpreting
this Agreement.

            14.6 Import and Export Laws.  Licensed  Product,  including  without
limitation,  technical  data,  are subject to US export  control laws and may be
subject to export or import regulation in other countries.  RealVision agrees to
comply  with all such laws and  regulations,  and  certifies  that  neither  the
Licensed  Product nor any direct product thereof is being or will be exported or
re-exported,  directly  or  indirectly,  to any  country  for which a  validated
license is  required  under US export  laws  (including  but not  limited to any
country  determined  by US  export  regulatory  authorities  to be a  prohibited
destination) without first obtaining such a validated license. RealVision agrees
to indemnify,  defend,  and hold E&S harmless for, from, and against any claims,
damages, or litigation costs resulting from or relating to RealVision's  failure
to comply with this Section 14.6, regardless of the form of the action.

            14.7  Independent  Contractor.  E&S is an independent  contractor to
RealVision.  This Agreement  will not be deemed to create a  partnership,  joint
venture or franchise, and neither party is the other's agent, partner,  employee
or  representative,  nor does a party have any authority to bind the other party
to any obligation by contract or otherwise.

            14.8 Notices.  All notices required hereunder must be in writing and
delivered either in person or by a means evidenced by a delivery receipt, to the
addresses  which  follow  or as  otherwise  notified  in  writing,  and  will be
effective upon receipt:

  Evans & Sutherland Computer Corporation    RealVision Inc.
  600 Komas Drive                            3-1-1 Shin-Yokohama
  Salt Lake City, Utah 84158                 Kouhoku-ku, Yokohama, 2220033 Japan
  Attn:   Jan Bjernfalk                      Attn: _____________________

            14.9 No  Rights in Third  parties.  This  Agreement  is made for the
benefit of the  parties,  and not for the  benefit of any third  parties  unless
otherwise agreed to by the parties.

            14.10  Relationship  of  the  parties.  No  employees,  consultants,
contractors, or agents of one party are agents, employees, franchisees, or joint
venturers of the other party,  nor do they have any  authority to bind the other
party by contract or otherwise to any obligation. No party will represent to the
contrary, either expressly, implicitly, or otherwise.

            14.11 Severability.  In the event that any part of this Agreement is
found to be unenforceable, the remainder shall continue in effect, to the extent
consistent with the intent of the parties as of the Effective Date.

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            14.12   Specific   Performance.   The  parties   hereto  agree  that
irreparable  damage would occur in the event that any of the  provisions of this
Agreement  were not  performed in  accordance  with its  specific  terms or were
otherwise  breached.  It is  accordingly  agreed that any party  hereto shall be
entitled to an injunction or injunctions  to prevent  breaches of this Agreement
and to  enforce  specifically  the terms and  provisions  hereof,  this being in
addition to any other remedy to which they are entitled hereunder or otherwise.

            14.13 US Government  Restricted  Rights.  If RealVision is acquiring
Source Code or Binary Code on behalf of the US Government,  the code is provided
with  "Restricted  Rights," as that term is defined in the  Federal  Acquisition
Regulations  (FARs) in 48 C.F.R  52.227-19(c)(2),  or its  equivalent in the DOD
Supplement to the FARs (DFARs),  and use,  duplication or disclosure of the code
is subject to restrictions set forth in FARs and DFARs.  Contractor/Manufacturer
is: Evans & Sutherland Corporation, 600 Komas Drive, Salt Lake City, Utah 84108.

           IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their duly authorized representatives.

EVANS & SUTHERLAND COMPUTER                     REALVISION INC.
CORPORATION

BY:    /S/ James R. Oyler                 BY:   /S/ Naoshi Sugiyama
    ---------------------------               ---------------------------
NAME:  James R. Oyler                    NAME:  Naoshi Sugiyama
TITLE: President and CEO                 TITLE: President and CEO

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                                  Attachment a
                                Licensed PRODUCT

Licensed Product

           Source code for REALimage 5000 series graphics controller chip device
           driver software, including OpenGL, OpenML, DirectDraw, Direct3D,
           Windows-GDI (C-language, C++)

Documentation

           Not Restricted

           General product marketing documents, including specification sheets
and sales presentations, that have previously been placed in the public domain
by E&S.

           Proprietary

           Ri5000 Reference board schematics and manufacturing documentation

           Any product performance data not in the "Not Restricted" category

           Ri5000/Ge5000 Hardware Reference Manual

           Ri5000/Ge5000 Programmer's Reference Manual

           Sample application programs

           Application programming guidelines and documentation

           Device Driver application programming interface (API) documentation

           Restricted

           Documentation for Ri5000 Chipset, including but not limited to:

                     Internal Device Driver documentation (below API level)

                     Chip architecture and module descriptions, other than that
                     contained in Hardware Reference Manuals and Programmer's
                     Reference Manuals

                     Other internal engineering design documentation

           Ri5000 Chipset source code

           Other items constituting the design and verification environment of
the Ri5000 Chipset (as described in Appendix B of the Asset Purchase Agreement)

                                       8
<PAGE>

                                  Attachment B
                               Licensed TRADEMARKS

1.          REAL IMAGE: U.S. Registration No. 2153225; Japanese Registration No.
            4255838

2.          REALimage:  U.S.  Registration No. 2246784;  Pending in the European
            Community Serial No. 577817;  REALimage:  Japanese  Registration No.
            4435392

3.          REALIMAGE:  WHEN QUALITY  MATTERS:  Pending in the U.S.;  Serial No.
            76/077,390

4.          STUDIO  ON A CHIP:  Pending  in the  U.S.;  Serial  No.  76/047,684;
            Japanese Registration No. 4467478

5.          URL/Domain - www.realimage.com (unregistered trademark)

                                       9ex10-4

EXHIBIT 10.4

 

AMENDMENT TO DEFERRED COMPENSATION ARRANGEMENT

 

 

     THIS AMENDMENT dated the    25th    day of October, 2001, between Thomas N. Hendrickson, 5 Simmons Road, Perry, New York 14530 (the "Employee"), and CPAC, Inc., 2364 Leicester Road, Leicester, New York 14481 (the "Company"). 

W I T N E S S E T H:

 

     WHEREAS, on the 13th day of October, 1992, the parties hereto entered into a Deferred Compensation Arrangement; and

     WHEREAS, on the 20th day of July, 1998, the parties amended the Arrangement in order to modify the Payment Schedule as it relates to payments to the Employee after his services to the Company are terminated and after there has been a change in control of the Company; and

     WHEREAS, the parties desire to further amend the Agreement in order to further modify the Payment Schedule as it relates to payments to the Employee after there has been a change in control of the Company and to remove provisions of the Arrangement which has been rendered obsolete by reason of passage of time.

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

<PAGE 16>

Page 2 of 8

 

     1.     Section 2 of the Deferred Compensation Arrangement dated the 13th day of October, 1992, as amended, is hereby deleted in its entirety, and a new Section 2 hereby is substituted therefor, to read as follows:

               2.     Payment Schedule

                       In consideration of the past, continuing and future performance of substantial services by the Employee on the Company's behalf, the Company hereby agrees to pay the Employee the principal amount contributed to the Trust as set forth in Section 1 hereof as well as the earnings accumulated thereon in accordance with the following Payment Schedule and, to this end, hereby agrees to provide such Payment Schedule to the Trustees and to instruct the Trustees to make payments to the Employee and/or his beneficiaries as follows:

                        (a)     Upon the Employee's actual retirement from the Company after the attainment of age fifty-five (55), the Trustee shall pay the Employee the entire principal of the Trust, together with any earnings accumulated thereon, in ten annual payments of principal and earnings, in an amount equal to the current balance maintained in the Trust Fund as of the date of each annual payment, divided by the number of years remaining in the ten year term. The first payment to be made shall be made on the first day of the first month immediately after the month in which the Employee shall have actually retired from the employ of the Company after 

<PAGE 17>

Page 3 of 8

 

attaining age fifty-five (55) and successive payments shall be made on each annual anniversary date thereof;

                        (b)     In the event the Employee shall become totally disabled and upon the occurrence of such total disability, the Employee shall actually retire or otherwise separate from the service of the Company after the attainment of age fifty-five (55), the Trustee shall pay to the Employee the principal of the Trust, together with all accumulated earnings thereon, in ten annual payments of principal and earnings, in an amount equal to the current balance maintained in the Trust Fund as of the date of each annual payment, divided by the number of years remaining in the ten year term. The first payment to be made shall be made on the first day of the first month immediately after the Employee's actual retirement or other separation of service due to his total disability and successive payments shall be made on each annual anniversary date thereof;

                        (c)     In the event of a change in control of the Company, the Trustee shall pay to the Employee the principal of the Trust, together with all accumulated earnings thereon, in one single lump sum payment within seven (7) days after the date on which the change in control of the Company shall have occurred. Payments pursuant to this Section 2(c) shall be made regardless of the whether the Employee shall retire or otherwise separate from the service of the Company. If the payments have already commenced pursuant to Sections 2(a) or 2(b) of this Arrangement and a change in control of the Company shall occur, the remaining 

<PAGE 18>

Page 4 of 8

 

payments to be made under this Arrangement shall be accelerated and the Trustees shall pay the Employee the entire remaining balance of the Trust Fund as of the day of payment within seven (7) days after the date on which the change in control of the Company shall have occurred;

                        (d)     For purposes of this Section, the term "total disability" shall mean a physical or mental condition of such severity and probable prolonged duration as to entitle the Employee to disability retirement benefits under the Federal Social Security Act. The fact of such disability shall be certified to by a qualified physician independent of both the Company and the Employee;

                        (e)     The term "change in control of the Company" shall have the same meaning as found in Section 13 of the Trust Agreement.

     2.     Section 3 of the Deferred Compensation Arrangement dated the 13th day of October, 1992, as amended, is hereby deleted in its entirely, and a new Section 3 hereby is substituted therefor, to read as follows:

               3.     Death of the Employee

                       In consideration of the past, continuing and future performance of substantive service by the Employee on the Company's behalf, the Company hereby agrees that, in the event the Employee shall die during the term of the Trust Agreement, it shall pay the principal of the Trust together with all accumulated earnings thereon, and, to this end, hereby agrees to instruct the Trustees to pay the principal of the Trust together with all accumulated 

<PAGE 19>

Page 5 of 8

 

earnings thereon to a beneficiary (ies) designated by the Employee to the Trustees in writing, and if none is so designated, then to a beneficiary(ies) specifically named to receive payments to be made hereunder in the Employee's Last Will and Testament duly admitted to probate, and if none are so named, to the Executor of the Employee's estate:

                        (a)     If the Employee shall die prior to commencement of any payments under the Trust Agreement, such payments shall consist of ten annual payments of principal and all accumulated earnings, in an amount equal to the current balance maintained in the Trust Fund as of the date of such annual payment, divided by the number of years remaining in the ten year term. The first payment to be made shall be made on the first day of the first month immediately after, in the case of a written beneficiary designation, the death of the Employee or if none, the issuance of Letters Testamentary to the Executor(s) of the Employee's estate, and successive payments shall be made on each annual anniversary date thereof;

                        (b)     If the Employee shall die after payments have begun under the Trust Agreement, the unpaid balance of principal and accumulated earnings shall continue to be paid to the Employee's designated beneficiary(ies), or Executor, as the case may be in accordance with the provisions of the Payment Schedule set forth in Section 2 hereof, with the number of remaining payments and payment term reduced by the number of payments previously made;

<PAGE 20>

Page 6 of 8

 

                        (c)     Notwithstanding the provisions of Sections 3(a) and 3(b) hereof, if the Employee shall die and there occurs a change in control of the Company prior to the payment by the Trustees of the entire principal and all accumulated earnings thereon required to be paid by the Trustees pursuant to said sections, such payments shall be accelerated and be paid to the Employee's designated beneficiary(ies) or his Executor(s) within seven (7) days after the date on which the change in control of the Company shall have occurred.

            The Employee agrees that in order to effectuate the payments to be made under this Section, he shall furnish to the Trustees a written designation of a beneficiary(ies) to receive payments hereunder, or in the alternative, the identity of the Executor(s) named in his Last Will and Testament, as well as a copy of the pertinent provisions of his Last Will and Testament which refer to the Trust Agreement and set forth the specific identity of the beneficiary(ies) named therein to receive payments hereunder.

            Notwithstanding any provision to the contrary, the Trustees shall be authorized to withhold distribution of an amount of the Trust Fund sufficient, in their judgment, to cover any liability that may be imposed upon the Trust Fund as a result of its inclusion in the gross estate of the Employee for federal and applicable state estate tax purposes until such liability is determined.

<PAGE 21>

Page 7 of 8

 

     In all other respects, the Deferred Compensation Arrangement among the parties dated the 13th day of October, 1992 is hereby ratified and confirmed.

     IN WITNESS WHEREOF, the parties to this Agreement have signed their name this    25th    day of October, 2001.

	
 
	
CPAC, INC.

	
 
	
 

	
 
	
 

	
 
	
By:  /s/ Thomas J. Weldgen                          

            Thomas J. Weldgen

             Vice President, Finance

	
 
	
 

	
 
	
 

	
 
	
        /s/ Thomas N. Hendrickson                 

            Thomas N. Hendrickson

             Employee

 

<PAGE 22>

Page 8 of 8

 

	
STATE OF NEW YORK
	
)
	
 

	
 
	
)
	
ss.:

	
COUNTY OF WYOMING
	
)
	
 

	
 

	
            On the    25th    day of    October    in the year   2001   before me personally came THOMAS J. WELDGEN, to me known, who being by me duly sworn, did depose and say that he resides in 5 Riesling Court, Fairport, New York 14450; that he is the Vice President, Finance, of CPAC, INC., the corporation described in and which executed the above instrument; that he knows the seal of said corporation; that the seal affixed to said instrument is such corporate seal; that it was so affixed by authority of the board of directors of said corporation, and that he signed his names thereto by like authority.

	
 
	
 

	
 
	
/s/ Luana Bailey                            

Notary Public

	
STATE OF NEW YORK
	
)
	
 

	
 
	
)
	
ss.:                                 LUANA BAILEY

                        Notary Public, State of New York

                           Qualified in Wyoming County

                    My Commission Expires  10/31 20 02

	
COUNTY OF WYOMING
	
)

	
 

	
            On the    25th    day of    October   , in the year 2001, before me, the undersigned, a Notary Public in and for said State, personally appeared THOMAS N. HENDRICKSON, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument.

	
 
	
 

	
 
	
/s/ Luana Bailey                                

Notary Public

	
LUANA BAILEY

Notary Public, State of New York

Qualified in Wyoming County

My Commission Expires  10/31 20 02
	
 

<PAGE 23>

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