Document:

Exhibit 10.1

 

RESTRICTED STOCK AGREEMENT

 

THIS RESTRICTED STOCK AGREEMENT
(this “Agreement”), dated as of 
                  ,
2006 (the “Grant Date”), is entered into between Ebix, Inc., a
                  
corporation (the “Company”), and
                                      
(the “Grantee”).

 

WHEREAS, the Company
previously established and currently maintains the Ebix, Inc. 1996 Stock
Incentive Plan, as amended (the “Plan”), for the purpose of attracting and
retaining directors, officers and other key employees of and consultants to the
Company and its Subsidiaries and to provide such persons with incentives and
rewards for superior performance;

 

WHEREAS, Grantee is an
individual who is to render valuable service to the Company, and this Agreement
is executed pursuant to, and is intended to carry out the purposes of, the Plan
in connection with the Company’s grant of restricted stock to Grantee;

 

WHEREAS, for purposes
of the Agreement, the definitions of capitalized terms contained in the Plan
are hereby incorporated herein by reference, except to the extent that any term
is specifically defined in this Agreement;

 

NOW, THEREFORE, in
consideration of the above premises and the mutual covenants and agreements
hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
have agreed, and do hereby agree, as follows:

 

1.                                      Definitions.  For
purposes of this Agreement, the following terms are defined as set forth below:

 

“Cause”
means (i) the conviction of the Grantee for a felony under Federal law or
the law of the state in which such action occurred, (ii) dishonesty in the
course of fulfilling the Grantee’s duties as an employee or director of, or
consultant or advisor to, the Company or (iii) willful and deliberate
failure on the part of the Grantee to perform such duties in any material
respect.  Notwithstanding the foregoing, if the Grantee and the Company or
a Subsidiary have entered into an employment or services agreement which
defines the term “Cause” (or a similar term), such definition shall govern for
purposes of determining whether such Grantee has been terminated for Cause for
purposes of this Agreement.  The determination of Cause shall be made by
the Committee, in its sole discretion.

 

“Change
in Control”  shall mean the happening of any of the following events:

 

(a)                                  An
acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or
14(d)(2) of the Exchange Act) (a “Person”) of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or
more of either (1) the then outstanding Common Shares (the “Outstanding
Company Common Shares”) or (2) the combined voting power of the then
outstanding voting securities of the Company entitled to vote generally in the
election of directors (the “Outstanding Company Voting Securities”); excluding,
however, the following: (1) any acquisition directly from the Company,
other than an acquisition by virtue of the exercise of a conversion privilege
unless the security being so converted was itself acquired directly from the
Company, (2) any acquisition by the Company; (3) any acquisition by
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any corporation controlled by the Company; or (4) any
acquisition by any Person pursuant to a transaction which complies with clauses
(1), (2) and (3) of subsection (a) of this definition; or

 

(b)                                 Within
any period of 24 consecutive months, a change in the composition of the Board
such that the individuals who, immediately prior to such period, constituted
the Board (such Board shall be hereinafter referred to as the “Incumbent Board”)
cease for any reason to constitute at least a majority of the Board; provided,
however, for purposes of this definition, that any individual who becomes a
member of the Board during such period, whose election, or nomination for
election by the Company’s stockholders, was approved by a vote of at least a
majority of those individuals who are members of the Board and who were also
members of the Incumbent Board (or deemed to be such pursuant to this proviso)
shall be considered as though such individual were a member of the Incumbent
Board; but, provided further, that any such individual whose initial assumption
of office occurs as

 

 

a result of either an
actual or threatened election contest (as such terms are used in Rule 14a-11
of Regulation 14A promulgated under the Exchange Act) or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board shall not be so considered as a member of the Incumbent
Board; or

 

(c)                                  The
approval by the stockholders of the Company of a reorganization, merger or
consolidation or sale or other disposition of all or substantially all of the
assets of the Company (“Corporate Transaction”); excluding, however, such a
Corporate Transaction pursuant to which (1) all or substantially all of
the individuals and entities who are the beneficial owners, respectively, of
the Outstanding Company Common Shares and Outstanding Company Voting Securities
immediately prior to such Corporate Transaction will beneficially own, directly
or indirectly, more than 50% of, respectively, the outstanding shares of common
stock, and the combined voting power of the then outstanding voting securities
entitled to vote generally in the election of directors, as the case may be, of
the corporation resulting from such Corporate Transaction (including, without
limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company’s assets, either directly or
through one or more subsidiaries) in substantially the same proportions as
their ownership, immediately prior to such Corporate Transaction, of the
Outstanding Company Common Shares and Outstanding Company Voting Securities, as
the case may be, (2) no Person (other than the Company; any employee
benefit plan (or related trust) sponsored or maintained by the Company, by any
corporation controlled by the Company, or by such corporation resulting from
such Corporate Transaction) will beneficially own, directly or indirectly, more
than 50% of, respectively, the outstanding shares of common stock of the
corporation resulting from such Corporate Transaction or the combined voting
power of the outstanding voting securities of such corporation entitled to vote
generally in the election of directors, except to the extent that such
ownership existed with respect to the Company prior to the Corporate
Transaction, and (3) individuals who were members of the Board immediately
prior to the approval by the stockholders of the Corporation of such Corporate
Transaction will constitute at least a majority of the members of the board of
directors of the corporation resulting from such Corporate Transaction; or

 

(d)                                 The
approval by the stockholders of the Company of a complete liquidation or
dissolution of the Company, other than to a corporation pursuant to a
transaction which would comply with clauses (1), (2) and (3) of subsection (iii) of
this definition, assuming for this purpose that such transaction were a
Corporate Transaction.

 

“Disability”
means mental or physical illness that entitles the Grantee to receive benefits
under the long-term disability plan of the Company or a Subsidiary, or if the
Grantee is not covered by such a plan or the Grantee is not an employee of the
Company or a Subsidiary, a mental or physical illness that renders a Grantee
totally and permanently incapable of performing the Grantee’s duties for the
Company or a Subsidiary; provided, however, that a Disability shall not qualify
under this Agreement if it is the result of (i) a willfully self-inflicted
injury or willfully self-induced sickness; or (ii) an injury or disease
contracted, suffered or incurred while participating in a criminal
offense.  Notwithstanding the foregoing, if the Grantee and the Company or
a Subsidiary have entered into an employment or services agreement which
defines the term “Disability” (or a similar term), such definition shall govern
for purposes of determining whether such Grantee suffers a Disability for
purposes of this Agreement.  The determination of Disability shall be made
by the Committee, in its sole discretion.  The determination of Disability
for purposes of this Agreement shall not be construed to be an admission of
disability for any other purpose.

 

“Retirement”
means termination of a Grantee’s employment on or after the date the Grantee
attains age 65 or termination of a Grantee’s employment on or after the date
the Grantee attains age 55 if the Grantee has at least ten years of Service to
the Company or a Subsidiary at such time.

 

“Service”
shall mean any and all services provided by the Grantee on a periodic basis to
the Company or a Subsidiary in the capacity of an employee, non-employee
director, consultant or other independent contractor.

 

2.                                      Grant of Restricted Shares.  Subject
to and upon the terms and conditions set forth in this Agreement, Company
hereby grants to Grantee, as of the Grant Date, and the Grantee hereby accepts
the grant of Common Shares on a restricted basis, as set forth herein (the “Restricted
Shares”).

 

3.                                      Stock Certificates and Escrow.  Upon
issuance, the certificates for Restricted Shares shall be held in escrow by the
Company until, and to the extent, the Restricted Shares shall cease to be
restricted and shall become non-forfeitable, and the Grantee shall own such
shares free of all restrictions otherwise imposed by this

 

 

Agreement. 
Restricted Shares, together with any assets or securities held in escrow
hereunder, shall be (i) surrendered to the Company for cancellation upon
forfeiture, if any, of such RestrictedShares by the Grantee hereunder or (ii) subject
to the provisions of Paragraph 4, released to the Grantee to the extent the
Restricted Shares are no longer subject to any of the restrictions otherwise
imposed by this Agreement.

 

4.                                      Transfer Restrictions. 
At any time prior to vesting in accordance with this Paragraph 4, the
Restricted Shares or any interest therein cannot be directly or indirectly
transferred, sold, assigned, pledged, hypothecated or otherwise disposed
of.  Subject to the provisions of Paragraphs 5 and 6 of this Agreement,
one third (1/3rd) of the Restricted Shares shall cease to be restricted and
shall become non-forfeitable (thereafter being referred to as “Unrestricted
Shares”) commencing one year from the Grant Date and each year anniversary
thereafter until the 3rd anniversary of the Grant Date, at which time the
Restricted Shares shall be fully vested.  For purposes of calculating the
number of Restricted Shares that become Unrestricted Shares as set forth above,
share amounts shall be rounded to the nearest whole share amount.

 

5.                                      Cessation of Service. 
Notwithstanding anything to the contrary in the Plan or in this Agreement, the
provisions of this Paragraph 5 shall apply in the event the Grantee ceases to
provide Service to the Company or a Subsidiary at any time prior to the date on
which the Restricted Shares shall become Unrestricted Shares as set forth in
Paragraph 4:

 

(a)                                  Should
Grantee die while providing Service to the Company or a Subsidiary; should the
Grantee cease by reason of Disability or Retirement to provide Service to the
Company or a Subsidiary; or should the Company or a Subsidiary terminate the
Service of the Grantee for any reason other than for Cause at any time prior to
the date on which the Restricted Shares shall cease to be restricted and shall
become non-forfeitable as set forth in Paragraph 4, then the Restricted Shares
immediately shall become Unrestricted Shares, and the Grantee immediately shall
own such shares free of all restrictions otherwise imposed by this Agreement.

 

(b)                                 Should
Grantee terminate Grantee’s Service to the Company or a Subsidiary for any
reason other than death, Disability or Retirement or should the Company or a
Subsidiary terminate the Grantee for Cause at any time prior to the date on
which the Restricted Shares shall become Unrestricted Shares as set forth in
Paragraph 4, then the Restricted Shares which have not previously become
Unrestricted Shares as set forth in Paragraph 4 shall be forfeited immediately.

 

6.                                      Change in Control. 
Notwithstanding anything to the contrary in the Plan or in this Agreement,
should the Company or Subsidiary for which the Grantee performs Service undergo
a Change in Control at any time prior to the date on which the Restricted
Shares shall become Unrestricted Shares as set forth in Paragraph 4, then the
Restricted Shares shall immediately become Unrestricted Shares, and the Grantee
immediately shall own such shares free of all restrictions otherwise imposed by
this Agreement.

 

7.                                      Adjustment in
Restricted Shares.  The Board may make or provide for such
adjustments as provided for in Paragraph 10 of the Plan.

 

8.                                      Privilege of Stock Ownership.  The Grantee
shall be entitled to receive any dividends that become payable on or after the
Grant Date with respect to any Restricted Shares; provided, however, that no
dividends shall be payable to, or for the benefit of, the Grantee for
Restricted Shares with respect to record dates occurring prior to the Grant
Date, or with respect to record dates occurring on or after the date, if any,
on which the Grantee has forfeited such  Restricted Shares.  The
Grantee shall be entitled to vote the Restricted Shares on or after the Grant
Date to the same extent as would have been applicable to the Grantee if the
Restricted Shares had then been fully vested and non-forfeitable; provided,
however, that the Grantee shall not be entitled to vote the Restricted Shares
with respect to record dates for such voting rights occurring prior to the
Grant Date, or with respect to record dates occurring on or after the date, if
any, on which the Grantee has forfeited the Restricted Shares.

 

9.                                      Governing Law. 
The interpretation, performance, and enforcement of this Agreement shall be
governed by the laws of the State of Delaware without resort to that State’s
conflict-of-laws rules.

 

 

10.                               Compliance with Laws and Regulations.

 

(a)                                  The
issuance of Restricted Shares shall be subject to compliance by the Company and
Grantee with all applicable requirements of law relating thereto and with all
applicable regulations of any stock exchange on which shares of the Company’s
Stock may be listed at the time of such exercise and issuance.

 

(b)                                 In
connection with the grant of Restricted Shares, the Grantee shall execute and
deliver to the Company such representations in writing as may be requested by
the Company in order for it to comply with the applicable requirements of
Federal and State securities laws.

 

11.                               Successors and Assigns.  Except as
otherwise expressly set forth in this Agreement, the provisions of this
Agreement shall inure to the benefit of, and be binding upon, the succeeding
administrators, heirs, and legal representatives of the Grantee and the
successors and assigns of the Company.

 

12.                               Liability of Company.  The inability
of Company to obtain approval from any regulatory body having authority deemed
by the Company to be necessary to the lawful issuance and transfer of any
Restricted Shares pursuant to this Agreement shall relieve the Company of any
liability with respect to the non-issuance or transfer of the Restricted Shares
as to which such approval shall not have been obtained. The Company, however,
shall use its best efforts to obtain all such approvals.

 

13.                               No Duty to Disclose Information. 
The Company (or any Subsidiary) shall not have any duty or obligation to
disclose affirmatively to a record or beneficial holder of Common Shares,
Restricted Shares or Unrestricted Shares, and such holder shall have no right
to be advised of, any material information regarding the Company (or any
Subsidiary) at any time prior to, upon or in connection with receipt of
Restricted Shares.

 

14.                               No Impairment of Rights.  This Agreement
shall not in any way affect the right of the Company to adjust, reclassify,
reorganize or otherwise make changes in its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of
its business or assets.

 

15.                               No Employment/Service Contract. 
Nothing in this Agreement or in the Plan shall confer upon the Grantee any
right to continue in the Service of the Company (or any of its Subsidiaries)
for any period of specific duration or interfere with or otherwise restrict in
any way the rights of the Company (or any such Subsidiary) or the Grantee,
which rights are hereby expressly reserved by each party, to terminate the
Grantee’s Service at any time for any reason whatsoever, with or without cause.

 

16.                               Notices.  Any
notices, consents, or other communication required to be sent or given
hereunder by any of the parties shall in every case be in writing and shall be
deemed properly served if (a) delivered personally, (b) sent by
registered or certified mail, in all such cases with first class postage
prepaid, return receipt requested, (c) delivered to a nationally
recognized overnight courier service or (d) sent by facsimile transmission
(with a copy sent by first class mail) to the parties at the addresses set
forth below:

 

	
  If to the Company:

  	
  Ebix, Inc.

  
	
   

  	
  1900 E. Golf Road

  
	
   

  	
  Suite 1200

  
	
   

  	
  Schaumburg, IL 60173-5037

  
	
   

  	
  Attention: Richard
  J. Baum

  
	
   

  	
   

  
	
  With a copy to:

  	
  Katten Muchin Zavis
  Rosenman

  
	
   

  	
  525 West Monroe
  Street, Suite 1900

  
	
   

  	
  Chicago, IL 60661-3693

  
	
   

  	
  Attention: Mark D.
  Wood

  

 

If
to the Grantee, at the address set forth on the signature page hereof.

 

17.                          Construction. 
Notwithstanding any other provision of this Agreement, this Agreement and
the Restricted Shares granted hereunder are made and granted pursuant to the
Plan and are in all

 

 

respects
limited by and subject to the express provisions of the Plan, as amended from
time to time. The reasonable interpretation and construction of the Plan, this
Agreement and the Restricted Shares by the Board, and such rules and
regulations as may be adopted by the Board for the purpose of administering the
Plan, shall be final and binding upon the Grantee (or any other person or
persons holding the Restricted Shares).

 

18.                          Entire
Agreement.  This Agreement, together with the Plan, constitute the
entire obligation of the parties hereto with respect to the subject matter
hereof and shall supersede any prior expressions of intent or understanding
with respect to this transaction.

 

19.                          Amendment. 
Any amendment to this Agreement shall be in writing and signed by the
Company and the Grantee.

 

20.                          Waiver;
Cumulative Rights.  The failure or delay of either party to
require performance by the other party of any provision hereof shall not affect
its right to require performance of such provision unless and until such
performance has been waived in writing.  Each and every right hereunder is
cumulative and may be exercised in part or in whole from time to time.

 

21.                          Counterparts. 
This Agreement may be signed in two counterparts, each of which shall be an
original, but both of which shall constitute but one and the same
instrument.  For the purposes of this Paragraph 21, a faxed copy shall be
accepted as an original.

 

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

 

23.                          Severability. 
If any provision of this Agreement shall for any reason be held to be
invalid or unenforceable, such invalidity or unenforceability shall not effect
any other provision hereof, and this Agreement shall be construed as if such
invalid or unenforceable provision were omitted.

 

24.                               Tax Consequences.  The Company
shall not be liable or responsible in any way for any and all tax (including
any withholding tax) consequences relating to the Restricted Shares, and the
Grantee agrees to undertake to determine, and be responsible for, any and all
tax (including any withholding tax) consequences to himself or herself with
respect to the Restricted Shares.  Notwithstanding any other provision of
this Agreement, the Restricted Shares, together with any other assets or
securities held in escrow hereunder, shall not be released to the Grantee
unless, as provided in Paragraph 12 of the Plan, the Grantee shall have paid to
the Company, or made arrangements satisfactory to the Company regarding the
payment of, any Federal, state, local or foreign taxes of any kind required by
law to be withheld with respect to the grant of the Restricted Shares or the
lapse of restrictions otherwise imposed by this Agreement.

 

25.                          Section 83(b) Election. 
The Grantee understands that Section 83 of the Code may tax as
compensation income the difference between the amount paid for the Restricted Shares,
if any, and the fair market value of the Restricted Shares as of the date any
restrictions on the Restricted Shares lapse in the absence of an election under
Section 83(b) of the Code. In this context, “restriction” means the
forfeitability of the Restricted Shares pursuant to the terms of this
Agreement.  In the event the Common Shares are registered under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), “restriction”
with respect to officers, directors, and 10% stockholders may also mean the
six-month period after the acquisition of the Restricted Shares during which
sales of certain securities by such officers, directors, and ten percent (10%)
stockholders would give rise to liability under Section 16(b) of the
Exchange Act.  The Grantee understands that he may elect to be taxed at
the time the Grantee receives the Restricted Shares and while the Restricted
Shares are subjected to restrictions rather than waiting to be taxed on the
Restricted

 

Shares when and as the restrictions lapse.  The
Grantee realizes that he may choose this tax treatment by filing an election
under Section 83(b) of the Code with the Internal

 

 

Revenue
Service within thirty (30) days from the date hereof and by filing a copy of
such election with his tax return for the tax year in which the Restricted
Shares were subjected to the restrictions.  THE GRANTEE UNDERSTANDS THAT
FAILURE TO MAKE THIS FILING IN A TIMELY MANNER MAY RESULT IN THE
RECOGNITION OF COMPENSATION INCOME BY THE GRANTEE, AS THE RESTRICTIONS LAPSE,
ON ANY DIFFERENCE BETWEEN THE PURCHASE PRICE, IF ANY, AND THE FAIR MARKET VALUE
OF THE RESTRICTED SHARES AT THE TIME SUCH RESTRICTIONS LAPSE.  THE GRANTEE
ACKNOWLEDGES THAT IT IS THE GRANTEE’S SOLE RESPONSIBILITY AND NOT THE COMPANY’S
TO TIMELY FILE THE ELECTION UNDER SECTION 83(b) OF THE CODE. 
THE GRANTEE ACKNOWLEDGES THAT HE SHALL CONSULT HIS OWN TAX ADVISERS REGARDING
THE ADVISABILITY OR NON-ADVISABILITY OF MAKING THE ELECTION UNDER SECTION 83(b) OF
THE CODE AND ACKNOWLEDGES THAT HE SHALL NOT RELY ON THE COMPANY OR ITS ADVISERS
FOR SUCH ADVICE.

 

IN
WITNESS WHEREOF, the parties have executed this Restricted Stock Agreement on
the day and year first above written.

 

	
   

  	
  Ebix, Inc.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee:

  
	
   

  	
   

  
				

 

8EXHIBIT
10.1

ASSET PURCHASE
AGREEMENT

by and between

ROCKWELL COLLINS, INC.

and

EVANS &
SUTHERLAND COMPUTER CORPORATION

Dated as
of February 7, 2006

TABLE OF CONTENTS

	
  

  	
   

  	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  
	
  DEFINITIONS

  
	
  Section 1.1

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  ARTICLE
  II

  
	
  SALE AND PURCHASE
  OF ASSETS

  
	
  Section 2.1

  	
   

  	
  Sale and Purchase of Assets

  	
   

  	
  1

  
	
  ARTICLE
  III

  
	
  ASSUMPTION OF
  LIABILITIES

  
	
  Section 3.1

  	
   

  	
  Assumed Liabilities

  	
   

  	
  4

  
	
  Section 3.2

  	
   

  	
  Retained Liabilities

  	
   

  	
  5

  
	
  ARTICLE
  IV

  
	
  PURCHASE PRICE

  
	
  Section 4.1

  	
   

  	
  Purchase Price

  	
   

  	
  8

  
	
  Section 4.2

  	
   

  	
  Allocation of Purchase Price

  	
   

  	
  11

  
	
  ARTICLE
  V

  
	
  CLOSING

  
	
  Section 5.1

  	
   

  	
  Closing

  	
   

  	
  11

  
	
  Section 5.2

  	
   

  	
  Closing Deliveries of Seller

  	
   

  	
  11

  
	
  Section 5.3

  	
   

  	
  Closing Deliveries of Buyer

  	
   

  	
  11

  
	
  Section 5.4

  	
   

  	
  Transfer Taxes

  	
   

  	
  12

  
	
  Section 5.5

  	
   

  	
  U.K. Matters

  	
   

  	
  12

  
	
  ARTICLE
  VI

  
	
  REPRESENTATIONS
  AND WARRANTIES OF SELLER

  
	
  Section 6.1

  	
   

  	
  Organization

  	
   

  	
  13

  
	
  Section 6.2

  	
   

  	
  Authority

  	
   

  	
  14

  
	
  Section 6.3

  	
   

  	
  No Breach

  	
   

  	
  14

  
	
  Section 6.4

  	
   

  	
  Financial Information

  	
   

  	
  14

  
	
  Section 6.5

  	
   

  	
  Taxes

  	
   

  	
  15

  
	
  Section 6.6

  	
   

  	
  Proprietary Rights

  	
   

  	
  16

  
	
  Section 6.7

  	
   

  	
  Equity Interest

  	
   

  	
  18

  
	
  Section 6.8

  	
   

  	
  Title

  	
   

  	
  18

  
	
  Section 6.9

  	
   

  	
  Real Property

  	
   

  	
  19

  
	
  Section 6.10

  	
   

  	
  Contracts

  	
   

  	
  19

  
	
  Section 6.11

  	
   

  	
  Litigation

  	
   

  	
  21

  
	
  Section 6.12

  	
   

  	
  Environmental Matters

  	
   

  	
  21

  
	
  Section 6.13

  	
   

  	
  Governmental Approvals

  	
   

  	
  22

  
	
  Section 6.14

  	
   

  	
  Compliance With Applicable Laws

  	
   

  	
  22

  
	
  Section 6.15

  	
   

  	
  Permits

  	
   

  	
  22

  
	
  Section 6.16

  	
   

  	
  Sufficiency of Assets

  	
   

  	
  23

  
	
  Section 6.17

  	
   

  	
  Employee Matters

  	
   

  	
  23

  
	
  Section 6.18

  	
   

  	
  Absence of Material Adverse Effect and Certain
  Changes or Events

  	
   

  	
  24

  
	
  Section 6.19

  	
   

  	
  Product Warranty

  	
   

  	
  26

  

 i
 

 

	
  Section 6.20

  	
   

  	
  Insurance

  	
   

  	
  26

  
	
  Section 6.21

  	
   

  	
  No Brokers

  	
   

  	
  26

  
	
  Section 6.22

  	
   

  	
  Customers and Suppliers

  	
   

  	
  26

  
	
  Section 6.23

  	
   

  	
  Bank Accounts in the United Kingdom

  	
   

  	
  26

  
	
  ARTICLE
  VII

  
	
  REPRESENTATIONS
  AND WARRANTIES OF BUYER

  
	
  Section 7.1

  	
   

  	
  Organization

  	
   

  	
  27

  
	
  Section 7.2

  	
   

  	
  Authority

  	
   

  	
  27

  
	
  Section 7.3

  	
   

  	
  No Breach

  	
   

  	
  27

  
	
  Section 7.4

  	
   

  	
  Governmental Approvals

  	
   

  	
  27

  
	
  Section 7.5

  	
   

  	
  No Brokers

  	
   

  	
  27

  
	
  Section 7.6

  	
   

  	
  Financial Resources

  	
   

  	
  27

  
	
  Section 7.7

  	
   

  	
  Litigation

  	
   

  	
  28

  
	
  Section 7.8

  	
   

  	
  Proxy Statement

  	
   

  	
  28

  
	
  ARTICLE
  VIII

  
	
  COVENANTS

  
	
  Section 8.1

  	
   

  	
  Covenants of Seller

  	
   

  	
  28

  
	
  Section 8.2

  	
   

  	
  Advice of Changes

  	
   

  	
  34

  
	
  Section 8.3

  	
   

  	
  HSR Act Compliance; Foreign Governmental Approvals

  	
   

  	
  34

  
	
  Section 8.4

  	
   

  	
  Public Announcements

  	
   

  	
  35

  
	
  Section 8.5

  	
   

  	
  Access to Information

  	
   

  	
  35

  
	
  Section 8.6

  	
   

  	
  Commercially Reasonable Efforts; Further Assurances.

  	
   

  	
  36

  
	
  Section 8.7

  	
   

  	
  Non-Solicitation of Employees

  	
   

  	
  36

  
	
  Section 8.8

  	
   

  	
  Use of Seller’s and Seller Subsidiary’s Trademarks,
  Trade Names and Corporate Symbols

  	
   

  	
  36

  
	
  Section 8.9

  	
   

  	
  Insurance

  	
   

  	
  37

  
	
  Section 8.10

  	
   

  	
  Closing Date Agreements

  	
   

  	
  37

  
	
  Section 8.11

  	
   

  	
  Cash Management

  	
   

  	
  37

  
	
  Section 8.12

  	
   

  	
  Joint Venture Guaranties

  	
   

  	
  38

  
	
  Section 8.13

  	
   

  	
  International Sales Representation Agreements

  	
   

  	
  38

  
	
  Section 8.14

  	
   

  	
  AFRL

  	
   

  	
  38

  
	
  Section 8.15

  	
   

  	
  Title Insurance

  	
   

  	
  38

  
	
  Section 8.16

  	
   

  	
  Letters of Credit

  	
   

  	
  38

  
	
  Section 8.17

  	
   

  	
  Agreement to Support Products

  	
   

  	
  38

  
	
  ARTICLE
  IX

  
	
  EMPLOYMENT
  MATTERS

  
	
  Section 9.1

  	
   

  	
  Employment

  	
   

  	
  39

  
	
  Section 9.2

  	
   

  	
  Pension Plans

  	
   

  	
  40

  
	
  Section 9.3

  	
   

  	
  Welfare Plans

  	
   

  	
  40

  
	
  Section 9.4

  	
   

  	
  Flexible Spending Accounts

  	
   

  	
  41

  
	
  Section 9.5

  	
   

  	
  Severance Benefits

  	
   

  	
  41

  
	
  Section 9.6

  	
   

  	
  Employment Agreement

  	
   

  	
  41

  
	
  ARTICLE
  X

  
	
  CONDITIONS TO
  CLOSING

  
	
  Section 10.1

  	
   

  	
  Conditions to Each Party’s Obligations

  	
   

  	
  41

  
	
  Section 10.2

  	
   

  	
  Conditions to Obligations of Buyer

  	
   

  	
  42

  

 ii
 

 

	
  Section 10.3

  	
   

  	
  Conditions to Obligations of Seller

  	
   

  	
  43

  
	
  ARTICLE
  XI

  
	
  TERMINATION

  
	
  Section 11.1

  	
   

  	
  Termination

  	
   

  	
  43

  
	
  Section 11.2

  	
   

  	
  Effect of Termination

  	
   

  	
  45

  
	
  ARTICLE
  XII

  
	
  SURVIVAL

  
	
  Section 12.1

  	
   

  	
  Survival

  	
   

  	
  45

  
	
  ARTICLE
  XIII

  
	
  INDEMNIFICATION

  
	
  Section 13.1

  	
   

  	
  Indemnification by Seller

  	
   

  	
  46

  
	
  Section 13.2

  	
   

  	
  Indemnification by Buyer

  	
   

  	
  46

  
	
  Section 13.3

  	
   

  	
  Procedures for Indemnification

  	
   

  	
  47

  
	
  Section 13.4

  	
   

  	
  Certain Rights and Limitations

  	
   

  	
  48

  
	
  Section 13.5

  	
   

  	
  Termination of Indemnification Obligations

  	
   

  	
  49

  
	
  Section 13.6

  	
   

  	
  Incidental or Consequential Damages

  	
   

  	
  49

  
	
  Section 13.7

  	
   

  	
  Exclusive Remedy

  	
   

  	
  49

  
	
  Section 13.8

  	
   

  	
  Waiver

  	
   

  	
  49

  
	
  Section 13.9

  	
   

  	
  Effect on Final Purchase Price

  	
   

  	
  50

  
	
  ARTICLE
  XIV

  
	
  RESTRICTIVE
  COVENANT

  
	
  Section 14.1

  	
   

  	
  Non-compete

  	
   

  	
  50

  
	
  ARTICLE
  XV

  
	
  GENERAL
  PROVISIONS

  
	
  Section 15.1

  	
   

  	
  Assignment

  	
   

  	
  50

  
	
  Section 15.2

  	
   

  	
  Parties in Interest

  	
   

  	
  50

  
	
  Section 15.3

  	
   

  	
  Amendment

  	
   

  	
  51

  
	
  Section 15.4

  	
   

  	
  Waiver; Remedies

  	
   

  	
  51

  
	
  Section 15.5

  	
   

  	
  Effect of Investigation

  	
   

  	
  51

  
	
  Section 15.6

  	
   

  	
  Fees and Expenses

  	
   

  	
  51

  
	
  Section 15.7

  	
   

  	
  Notices

  	
   

  	
  52

  
	
  Section 15.8

  	
   

  	
  Waiver of Compliance With Bulk Transfer Laws

  	
   

  	
  52

  
	
  Section 15.9

  	
   

  	
  Captions; Currency

  	
   

  	
  53

  
	
  Section 15.10

  	
   

  	
  Entire Agreement

  	
   

  	
  53

  
	
  Section 15.11

  	
   

  	
  Severability

  	
   

  	
  53

  
	
  Section 15.12

  	
   

  	
  Consent to Jurisdiction

  	
   

  	
  53

  
	
  Section 15.13

  	
   

  	
  Exhibits and Schedules; Disclosure

  	
   

  	
  53

  
	
  Section 15.14

  	
   

  	
  Governing Law

  	
   

  	
  54

  
	
  Section 15.15

  	
   

  	
  Dispute Resolution

  	
   

  	
  54

  
	
  Section 15.16

  	
   

  	
  Counterparts

  	
   

  	
  54

  
	
  Section 15.17

  	
   

  	
  Specific Performance

  	
   

  	
  54

  
	
  Section 15.18

  	
   

  	
  Performance by Seller Subsidiary

  	
   

  	
  55

  
	
  Section 15.19

  	
   

  	
  Interpretation

  	
   

  	
  55

  

 

 iii
 

 

	
  SCHEDULES

  
	
  Schedule 2.1(a)(i)

  	
   

  	
  —

  	
   

  	
  Real Property and Real Property Interests

  
	
  Schedule 2.1(a)(vi)

  	
   

  	
  —

  	
   

  	
  Computer
  Software

  
	
  Schedule 2.1(a)(vii)

  	
   

  	
  —

  	
   

  	
  Computer
  Hardware and Computer Networking Equipment

  
	
  Schedule 2.1(b)(ix)

  	
   

  	
  —

  	
   

  	
  Retained
  Claims

  
	
  Schedule 2.1(b)(x)

  	
   

  	
  —

  	
   

  	
  Retained
  Intellectual Property

  
	
  Schedule 2.1(b)(xi)

  	
   

  	
  —

  	
   

  	
  Retained
  Contracts

  
	
  Schedule 2.1(b)(xv)

  	
   

  	
  —

  	
   

  	
  Other
  Retained Assets

  
	
  Schedule 3.2(a)

  	
   

  	
  —

  	
   

  	
  Retained
  Actions

  
	
  Schedule 4.1(b)(i)

  	
   

  	
  —

  	
   

  	
  Net
  Assets Calculation

  
	
  Schedule 4.2

  	
   

  	
  —

  	
   

  	
  Purchase
  Price Allocation

  
	
  Schedule 6.4(b)

  	
   

  	
  —

  	
   

  	
  Certain
  Liabilities

  
	
  Schedule 6.5

  	
   

  	
  —

  	
   

  	
  Tax
  Matters

  
	
  Schedule 6.6(a)

  	
   

  	
  —

  	
   

  	
  Certain
  Business Intellectual Property

  
	
  Schedule 6.6(b)

  	
   

  	
  —

  	
   

  	
  Licenses
  of Intellectual Property

  
	
  Schedule 6.6(c)

  	
   

  	
  —

  	
   

  	
  Intellectual
  Property Matters

  
	
  Schedule 6.9(a)

  	
   

  	
  —

  	
   

  	
  Owned
  Real Property

  
	
  Schedule 6.9(b)

  	
   

  	
  —

  	
   

  	
  Leased
  Premises

  
	
  Schedule 6.9(c)

  	
   

  	
  —

  	
   

  	
  Real
  Property Matters

  
	
  Schedule 6.10(a)

  	
   

  	
  —

  	
   

  	
  Material
  Contracts

  
	
  Schedule 6.10(c)

  	
   

  	
  —

  	
   

  	
  Material
  Contract Matters

  
	
  Schedule 6.10(d)

  	
   

  	
  —

  	
   

  	
  Material
  Contract Consents

  
	
  Schedule 6.10(e)

  	
   

  	
  —

  	
   

  	
  Estimates
  at Completion

  
	
  Schedule 6.11(a)

  	
   

  	
  —

  	
   

  	
  Litigation

  
	
  Schedule 6.12

  	
   

  	
  —

  	
   

  	
  Environmental
  Matters

  
	
  Schedule 6.13

  	
   

  	
  —

  	
   

  	
  Seller
  Governmental Approvals

  
	
  Schedule 6.14

  	
   

  	
  —

  	
   

  	
  Compliance
  with Applicable Laws

  
	
  Schedule 6.15

  	
   

  	
  —

  	
   

  	
  Permits

  
	
  Schedule 6.16

  	
   

  	
  —

  	
   

  	
  Sufficiency
  of Assets

  
	
  Schedule 6.17(a)

  	
   

  	
  —

  	
   

  	
  Employee
  Matters

  
	
  Schedule 6.17(b)

  	
   

  	
  —

  	
   

  	
  Employee
  Benefit Plans

  
	
  Schedule 6.17(c)

  	
   

  	
  —

  	
   

  	
  Certain
  Plans

  
	
  Schedule 6.17(e)

  	
   

  	
  —

  	
   

  	
  Employment
  Related Arrangements

  
	
  Schedule 6.17(f)

  	
   

  	
  —

  	
   

  	
  UK
  Employees

  
	
  Schedule 6.18

  	
   

  	
  —

  	
   

  	
  Material
  Adverse Effect

  
	
  Schedule 6.20(a)

  	
   

  	
  —

  	
   

  	
  Insurance

  
	
  Schedule 6.22

  	
   

  	
  —

  	
   

  	
  Customers
  and Suppliers

  
	
  Schedule 6.23

  	
   

  	
  —

  	
   

  	
  Bank
  Accounts in the United Kingdom

  
	
  Schedule 7.4

  	
   

  	
  —

  	
   

  	
  Buyer
  Governmental Approvals

  
	
  Schedule
  8.1(a)(iv)(E)

  	
   

  	
  —

  	
   

  	
  Laser
  Projector Contracts

  
	
  Schedule 8.13

  	
   

  	
  —

  	
   

  	
  International
  Sales Representation Agreements

  
	
  Schedule 8.16

  	
   

  	
  —

  	
   

  	
  Letters
  of Credit

  
	
  Schedule 8.17

  	
   

  	
  —

  	
   

  	
  Agreement
  to Support Product

  
	
  Schedule 9.1(a)(i)

  	
   

  	
  —

  	
   

  	
  Business
  Employees

  
	
  Schedule 9.1(a)(ii)

  	
   

  	
  —

  	
   

  	
  Buyer’s
  Standard Hiring Procedures and Policies

  
	
  Schedule 9.6

  	
   

  	
  —

  	
   

  	
  Employment
  Agreement

  
	
  Schedule 10.2(d)

  	
   

  	
  —

  	
   

  	
  Third
  Party Consents

  
	
  Schedule 13.1(e)

  	
   

  	
  —

  	
   

  	
  Indemnified
  Contracts

  
	
  Schedule 15.19(b)

  	
   

  	
  —

  	
   

  	
  Knowledge

  
	
  Schedule A-1

  	
   

  	
  —

  	
   

  	
  Permitted
  Liens

  

 iv
 

 

	
  EXHIBITS

  
	
  Exhibit A

  	
   

  	
  —

  	
   

  	
  Definitions

  
	
  Exhibit B

  	
   

  	
  —

  	
   

  	
  Form of Escrow Agreement

  
	
  Exhibit C

  	
   

  	
  —

  	
   

  	
  Form of Intellectual Property Agreement

  
	
  Exhibit D

  	
   

  	
  —

  	
   

  	
  Form of Laser Agreement

  
	
  Exhibit E

  	
   

  	
  —

  	
   

  	
  Form of Laser Supply Agreement

  

 

 v

ASSET PURCHASE AGREEMENT

ASSET PURCHASE AGREEMENT
dated as of February 7, 2006 by and between ROCKWELL COLLINS, INC., a
Delaware corporation (“Buyer”), and
EVANS & SUTHERLAND COMPUTER CORPORATION, a Utah corporation (“Seller”).

W I T N E S S E T H :

WHEREAS, Seller desires to sell and cause to be sold,
and Buyer desires to purchase, the Assets (as defined herein), and Seller
desires to transfer and cause to be transferred, and Buyer desires to assume,
the Assumed Liabilities (as defined herein), all pursuant to the terms and
subject to the conditions set forth in this Agreement;

NOW, THEREFORE, in
consideration of the premises and of the mutual representations, warranties,
covenants and agreements hereinafter contained, the parties agree as follows:

ARTICLE I

DEFINITIONS

Section 1.1   Definitions.   Capitalized
terms used in this Agreement shall have the meanings specified in Exhibit A.

ARTICLE II

SALE AND PURCHASE OF ASSETS

Section 2.1   Sale and Purchase of Assets.

(a)   Subject to
the terms and conditions set forth herein and in reliance upon the
representations and warranties contained herein, at the Closing, for the
consideration specified in Section 4.1, Seller will sell, assign, convey,
transfer and deliver, and cause Seller Subsidiary to sell, assign, convey,
transfer and deliver, to Buyer, and Buyer will purchase and acquire from Seller
and Seller Subsidiary, all of Seller’s and Seller Subsidiary’s right, title and
interest in and to all assets, properties and rights (whether tangible or
intangible, real, personal or mixed, fixed, contingent or otherwise, and
wherever located) Related to the Business (except for Retained Assets), in each
case free and clear of any Liens, other than Permitted Liens, including the
following to the extent such assets are Related to the Business:

(i)    all real
property (including land, plants, buildings and improvements) and real property
interests (including Leases) set forth on Schedule 2.1(a)(i);

(ii)   all
accounts, loans and notes receivable (whether current or past due), performance
and surety bonds and letters of credit or other similar instruments in favor of
Seller and/or Seller Subsidiary;

(iii)  all
inventories, including finished products, work-in-process, materials, parts,
components, production stock, accessories and supplies (including all such inventories
that are held by third parties);

(iv)  all
machinery, equipment, tooling, vehicles, furniture and fixtures, leasehold
improvements, plant and office equipment, test equipment, laboratory equipment
and supplies, repair parts, repair stock, tools, engineering and design
equipment and other tangible personal property, together with any rights,
claims and interests arising out of maintenance or service contracts relating
thereto or the breach of any express or implied warranty by the manufacturers
or sellers of any such assets or any component part thereof;

(v)    the
Business Intellectual Property owned or licensed by Seller or Seller
Subsidiary;

 1
 

(vi)  all
Business Software, including the software set forth on
Schedule 2.1(a)(vi);

(vii) all
computer hardware and computer networking equipment located in the buildings
being conveyed or set forth on Schedule 2.1(a)(vii), together with any
rights, claims and interests arising out of maintenance or service contracts
relating thereto or the breach of any express or implied warranty by the
manufacturers or sellers of any such assets or any component part thereof;

(viii)  all
Contracts, including all rights to receive payment for products sold or
services rendered, to receive goods and services, to assert claims and to take
other actions in respect of breaches, defaults and other violations thereunder
(whether or not arising or asserted before, on or after the Closing Date);

(ix)  all
credits, advances, prepaid expenses, deposits and retentions held by third
parties, including those held by third parties under Contracts;

(x)    to the
extent legally transferable or assignable, all Permits;

(xi)  all U.K.
Bank Accounts and Lockboxes;

(xii) the
benefits of coverage provided by insurance policies of Seller and Seller
Subsidiary (with respect to the Business) in respect of matters occurring on or
prior to the Closing Date as set forth in Section 8.9 (other than benefits
in connection with the claims, causes in action, choses in action, rights of
recovery and rights of set-off retained by Seller as set forth on
Schedule 2.1(b)(ix)); provided, that
Seller shall have no obligation to extend or renew any insurance coverage
following the Effective Time, except as otherwise provided in any of the
Transaction Documents;

(xiii)  all financial,
accounting, operating, design, manufacturing, test and other data and records
(in each case, in whatever form or medium, including electronic media),
including all books, records, notes, sales and sales promotional material and
data, advertising materials, credit information, cost and pricing information,
customer and supplier lists, business plans, reference catalogs, payroll and
personnel records and procedures, blue-prints, research and development files,
data and laboratory books, sales order files, litigation files and other
similar property, rights and information; provided, however, that Seller may retain originals or copies of any
such records that are primarily related to, or necessary for the operation of,
the Retained Assets or its general corporate, financial, accounting, tax and
personnel functions, so long as Seller provides Buyer with copies of any such
retained original records;

(xiv)      all rights in and to products sold or leased
by the Business and products of the Business currently in development;

(xv)  all causes
of action, choses in action, lawsuits, judgments, claims, rights under express
or implied warranties, guarantees, indemnities and similar rights in favor of
Seller and/or Seller Subsidiary, rights of recovery, rights of set-off, rights
of subrogation and all other rights and demands of any nature available to or
being pursued by Seller and/or Seller Subsidiary;

(xvi)      Seller’s equity ownership interest in, and
all rights with respect to, the Joint Venture; and

(xvii)  all
goodwill associated with the Business and the Assets.

The assets, properties and rights of Seller and Seller
Subsidiary to be sold, assigned, conveyed, transferred and delivered to Buyer
pursuant to this Agreement are herein collectively referred to as the “Assets”. The term “Assets” will include all additions and
replacements to any of the items described in this Section 2.1(a) from
the date of this Agreement through the Closing Date, and will exclude, to the
extent permitted by this Agreement, all deletions, sales or other disposals of
any of the foregoing from the date of this Agreement through the Closing Date.

 2
 

(b)   Anything
contained herein to the contrary notwithstanding, the Assets to be sold,
assigned, conveyed, transferred and delivered to Buyer hereunder will exclude,
and Seller and Seller Subsidiary will retain, all of Seller’s and Seller
Subsidiary’s right, title and interest in and to the following assets,
properties and rights (the “Retained Assets”):

(i)    all real
property (including land, plants, buildings and improvements) and real property
interests (including Leases), other than real property and Leases set forth on
Schedule 2.1(a)(i);

(ii)   all cash,
cash equivalents, funds, certificates of deposit and similar instruments held
by Seller or Seller Subsidiary at the Effective Time;

(iii)  all bank
accounts and lock boxes (other than the U.K. Bank Accounts and Lockboxes);

(iv)  all
insurance policies, other than the benefits of Occurrence Basis Policies and
Claims Made Policies and other rights as described in Section 8.9;

(v)    all rights
in and to the use of the name, trademark, trade name and service mark “Evans &
Sutherland” and all corporate symbols and logos related thereto and all names,
trademarks, trade names, and service marks which include the words “Evans &
Sutherland” or any derivative thereof (other than as provided for in Section 8.8);

(vi)  all assets
with respect to pension and savings plans of Seller and Seller Subsidiary,
including the Seller Retirement Plans, the Seller Savings Plan and the Seller
ESP;

(vii) all refunds
of Taxes (i) attributable to payments of Taxes made prior to the Effective
Time, whether or not any refund claims have been filed prior to the Effective
Time, or (ii) for which Seller or Seller Subsidiary has made a payment in
respect thereof, including any payment out of the Escrow Fund;

(viii)  all
benefits of net operating loss carryforwards, carrybacks, credits or other Tax
attributes for periods (or portions thereof) up to and including the Closing on
the Closing Date (in the case of tax years including the Closing Date, benefits
shall be determined on a closing-of-the-books basis through the Closing, except
for periodic Taxes (such as real property Taxes) which shall be determined on a
daily pro rata basis);

(ix)  all claims,
causes in action, choses in action, rights of recovery and rights of set-off of
any kind against any person to the extent described on
Schedule 2.1(b)(ix);

(x)    the
Intellectual Property set forth on Schedule 2.1(b)(x) (the “Retained Intellectual Property”);

(xi)  the
Contracts set forth on Schedule 2.1(b)(xi);

(xii) Seller’s
and Seller Subsidiary’s corporate charters, qualifications to conduct business
as a foreign entity, arrangements with registered agents relating foreign
qualifications, taxpayer and other identification numbers, tax returns, stock
books, stock ledgers, minute books and corporate seals and other similar
documents relating to the organization, maintenance, and existence of Seller
and Seller Subsidiary as corporations;

(xiii)  all
assets primarily used in or primarily related to, arising primarily from or
held primarily for use in, Seller’s planetarium, digital theater or laser
projector businesses or otherwise necessary for the operation, as presently
conducted, of such businesses (other than any such assets that are Related to
the Business);

(xiv)      all equity ownership interest in Seller
Subsidiary and Seller’s and Seller Subsidiary’s respective Affiliates (other
than in the Joint Venture); and

 3
 

(xv)     all other assets set forth on Schedule 2.1(b)(xv).

(c)   Anything
contained herein to the contrary notwithstanding, this Agreement will not
constitute an assignment, an attempted assignment or an agreement to assign any
Contract or Permit if an assignment or attempted assignment of the same without
the Consent of any other party or parties thereto would constitute a breach
thereof or (A) result in any increase in any payment or change in any
term, (B) give rise to any right of amendment, termination, cancellation
or acceleration of any right or obligation or to a loss of benefit or (C) grant
any repayment or repurchase rights to any Person, which, in the case of (A), (B) or
(C) above, is adverse to Buyer. Seller will, and will cause Seller
Subsidiary to, use its commercially reasonable efforts, and Buyer will
reasonably cooperate with Seller and Seller Subsidiary, to obtain prior to the
Closing all Consents necessary to sell, assign, convey, transfer and deliver to
Buyer the Assets. If any such Consent is not obtained, then (1) Seller
will, and will cause Seller Subsidiary to, use its commercially reasonable
efforts to (x) cause the full benefits of any such Contract or Permit to
be provided to Buyer, and (y) pay promptly or cause to be paid promptly to
Buyer when received all monies and other properties received by Seller or
Seller Subsidiary; and (2) in consideration of Seller and Seller
Subsidiary providing or causing to be provided to Buyer the full benefits
thereof, Buyer will use its commercially reasonable efforts to perform and
discharge on behalf of Seller and Seller Subsidiary, as the case may be, all of
Seller’s or Seller Subsidiary’s liabilities, obligations or commitments
thereunder that are Assumed Liabilities in accordance with the provisions
thereof. In addition, Seller will, and will cause Seller Subsidiary to, use its
commercially reasonable efforts to place Buyer, insofar as reasonably possible,
in the same position as if such Contract or Permit had been transferred as
contemplated hereby and so that all the benefits relating thereto, including
possession, use, risk of loss, potential for gain and dominion, control and
command, shall inure to Buyer. Notwithstanding the foregoing, if any such
Consent is not obtained prior to the Closing, Seller will continue to use and
will cause Seller Subsidiary to continue to use its commercially reasonable
efforts to obtain all such Consents (and, if and when such Consents are
obtained, the transfer of the applicable Contract or Permit will be effected in
accordance with the terms of this Agreement).

ARTICLE III

ASSUMPTION OF LIABILITIES

Section 3.1   Assumed Liabilities.   Subject
to the terms and conditions set forth herein, and in reliance upon the
representations and warranties contained herein, at the Closing, in
consideration for the sale, assignment, conveyance, transfer and delivery of
the Assets to Buyer, Buyer will assume and undertake to pay, perform and
discharge, when due and otherwise in accordance with the terms thereof, only
the following Liabilities of Seller and Seller Subsidiary Related to the
Business or the Assets (other than the Liabilities listed in clauses (a) through
(v) of Section 3.2) (the “Assumed Liabilities”):

(a)    Liabilities
of Seller and Seller Subsidiary, as the case may be, under Contracts and Leases
that constitute Assets, whether arising prior to, on or after the Closing Date;

(b)   Liabilities
associated with accruals of deferred revenues, but only to the extent and in
the amounts provided for on the Final Closing Net Assets Statement;

(c)    Liabilities
to, or otherwise relating to the employment of, the Continued Employees and the
UK Employees to the extent arising after the Effective Time and any other
Liabilities expressly assumed by Buyer pursuant to Article IX;

(d)   Liabilities
in respect of Continued Employees arising under the WARN Act or any similar
state Law to the extent
arising after the Effective Time;

(e)    all
Liabilities under the sales representation agreements to be entered into by
Buyer pursuant to Section 8.13;

 4
 

(f)    accounts
payable and trade payables (whether current or past due), but only to the
extent and in the amounts provided for on the Final Closing Net Assets
Statement;

(g)    product
warranty claims of third parties with respect to products sold or services
rendered in the conduct of the Business, whether arising prior to, on or after
the Closing Date;

(h)   product
liability claims of third parties with respect to products of the Business,
whether arising prior to, on or after the Closing Date;

(i)    Liabilities
for and in respect of any Taxes relating to the Business, the Assets (including
the Joint Venture) or the Assumed Liabilities for periods (or portions thereof)
beginning after the Closing on the Closing Date (in the case of tax years
including the Closing Date, Taxes shall be determined on a closing-of-the-books
basis through the Closing, except for periodic Taxes (such as real property
Taxes) which shall be determined on a daily pro rata basis). For the avoidance
of doubt, Seller and Seller Subsidiary shall not be responsible for any
Liabilities for or in respect of Taxes attributable to income or gain with
respect to the Assets (including the Joint Venture) and the Business resulting
from any action taken by Buyer that is not contemplated by this Agreement that
occurs after the Closing on the Closing Date;

(j)     Liabilities
with respect to the Joint Venture, including the Joint Venture Guaranties;

(k)   Liabilities
based upon, arising out of, relating to or otherwise in connection with any
pending, threatened or future Action with respect to any events, actions,
occurrences, omissions, circumstances or conditions occurring or existing on or
prior to the Closing Date (whether asserted prior to, on or after the Closing
Date) (other than Liabilities based upon, arising out of, relating to or
otherwise in connection with the Actions set forth on Schedule 3.2(a));

(l)    Liabilities
based upon, arising out of, relating to or otherwise in connection with any
tort, whether arising prior to, on or after the Closing Date;

(m)  Liabilities
based upon, arising out of, relating to or otherwise in connection with claims
of alleged infringement with respect to the Business Intellectual Property,
whether arising prior to, on or after the Closing Date;

(n)   other
Liabilities to the extent arising out of or resulting from the operation after
the Effective Time by Buyer of the Business or the ownership or use after the
Effective Time by Buyer of the Assets;

(o)   other
Liabilities for which Buyer is made responsible pursuant to this Agreement or
any other Transaction Document;

(p)   other Liabilities
which are not included in clause (a) through (o) of this Section 3.1,
but only to the extent and in the amounts provided for on the Final Closing Net
Assets Statement; and

(q)   Liabilities
relating to a successful claim by a UK Employee that the change of employer
arising by reason of the operation of the Transfer Regulations is a significant
change which is to his detriment or that a substantial change is proposed to be
made to his working conditions on or after the Closing Date, which is to his
detriment.

Buyer will assume no other Liabilities whatsoever.

Section 3.2   Retained Liabilities.   Anything
contained herein to the contrary notwithstanding, Buyer shall not be obligated
to assume or to undertake to pay, perform or discharge and will not be liable
for, and Seller and Seller Subsidiary shall remain liable for and pay, perform
and discharge when due, all Liabilities and obligations of Seller and Seller
Subsidiary based upon, arising out of, relating to or otherwise in connection
with the Business or the conduct or operation thereof on or prior to the
Closing Date, 

 5
 

including all Liabilities
based upon, arising out of, relating to or otherwise in connection with any
events, actions, occurrences, omissions, circumstances or conditions whatsoever
occurring or existing on or prior to the Closing Date, whether asserted prior
to, on or after the Closing Date, and all other Liabilities of Seller and
Seller Subsidiary, in each case other than Liabilities constituting Assumed
Liabilities (the “Retained Liabilities”). Notwithstanding
anything to the contrary contained herein, Retained Liabilities shall include
all Liabilities of Seller and Seller Subsidiary:

(a)    based
upon, arising out of, relating to or otherwise in connection with the Actions
set forth on Schedule 3.2(a);

(b)   based upon,
arising out of, relating to or otherwise in connection with any violation of,
or noncompliance with, Law (whether civil or criminal) occurring or existing on
or prior to the Closing Date, whether asserted prior to, on or after the
Closing Date (including any pending, threatened or future Actions with respect
thereto), except to the extent such Liabilities result from any action of Buyer
or any of its Affiliates (other than the purchase of the Assets and the
assumption of the Assumed Liabilities) after the Closing Date);

(c)    in respect
of accruals of deferred revenues to the extent such Liabilities exceed the
amounts provided for on the Final Closing Net Assets Statement;

(d)   in respect
of accounts payable and trade payables (whether current or past due) to the
extent such payables exceed the amounts provided for on the Final Closing Net
Assets Statement;

(e)    based
upon, arising out of, relating to or otherwise in connection with claims for
personal or bodily injury or injury to property (whether asserted prior to, on
or after the Closing Date) caused by products delivered or sold on or prior to
the Closing Date, except to the extent that (i) Buyer has made any
modifications (other than modifications properly made in accordance with
pre-existing field service bulletins) after the Closing Date to any such
products or (ii) Buyer has failed to properly maintain such products after
the Closing Date in accordance with Buyer’s contractual obligations;

(f)    constituting
Environmental Liabilities to the extent based upon, arising out of, relating to
or otherwise in connection with events, actions, occurrences, omissions,
circumstances or conditions occurring or existing on or prior to the Closing
Date, whether asserted prior to, on or after the Closing Date (including such
circumstances or conditions that may continue to exist after the Closing Date),
except to the extent such Environmental Liabilities result from any action of
Buyer or any of its Affiliates (other than the purchase of the Assets and the
assumption of the Assumed Liabilities in accordance with this Agreement) after
the Closing Date;

(g)    except for
Liabilities assumed by Buyer under Article IX and Section 3.1(c) (other
than as provided in the parenthetical at the end of this Section 3.2(g)),
all liabilities in respect of employees, former employees, consultants and
leased employees of the Business based upon, arising out of, relating to or
otherwise in connection with employment, engagement or termination by Seller or
Seller Subsidiary at any time on or prior to the Closing Date (including with
respect to termination of employment of any UK Employee to whom notice was
issued or by whom notice was submitted on or prior to the Closing Date),
whether pursuant to benefit plans or otherwise, including (i) Liabilities
for salary, bonuses, incentive payments and other compensation payments; (ii) Liabilities
in respect of pension (including any controlled group Liabilities),
supplemental retirement, savings, supplemental savings, profit-sharing, cash
balance and deferred compensation benefits; (iii) Liabilities for employee
welfare and fringe benefits (including medical, dental, retiree health, life
insurance, retiree life insurance, travel, accident, short- and long-term
disability, sick leave, hospitalization and other benefits); (iv) Liabilities
in respect of severance pay, salary continuation and similar obligations
relating to the termination or alleged termination (whether voluntary or
involuntary) of employment or claims in respect thereof; (v) Liabilities
under or in respect of employment agreements, severance 

 6
 

agreements, change of
control agreements and retention arrangements, including those agreements and
arrangements set forth on Schedule 6.17(e); and (vi) Liabilities with
respect to workplace safety (it being understood that, notwithstanding anything
to the contrary contained in the Transfer Regulations or under Article IX,
all such liabilities set forth in this Section 3.2(g) in respect of
such employees, former employees, consultants and leased employees located in
the United Kingdom shall constitute Retained Liabilities);

(h)   in relation
to the operation of the Transfer Regulations on the contract of employment of
any employee of Seller or Seller Subsidiary in the United Kingdom whose name is
not listed in Schedule 6.17(f) and who Buyer has dismissed within 30 days
of the earliest date on which Buyer knows or would reasonably be expected to
know (including by paying any compensation or benefit to such employee) of the
said employee claiming to have transferred under the Transfer Regulations to
Buyer or its or its relevant United Kingdom Affiliate (it being understood and
agreed that in the event of dismissal, Buyer shall, and shall cause its
relevant United Kingdom Affiliate to, use commercially reasonable efforts to
comply with the United Kingdom statutory dismissal procedures and shall not,
and shall cause its relevant United Kingdom Affiliate not to, rehire the
employee within 180 days of the said dismissal);

(i)    incurred
by reason of the transfer of any pension and ancillary benefits in relation to
the UK Employees pursuant to the Transfer Regulations (except reasonable
administration costs and pension contributions payable after the Effective
Time);

(j)     in
respect of employees of the Business at or prior to the Effective Time arising
under the WARN Act or any similar state Law to the extent arising at or prior to
the Effective Time, or arising in connection with the Transaction;

(k)   for and
relating to workers’ compensation claims (whether asserted prior to, on or
after the Closing Date) resulting from injuries that occur on or prior to the
Closing Date;

(l)    for and in
respect of checks written by Seller or Seller Subsidiary outstanding at the
Effective Time relating to the Business (including Liabilities to fund the
same);

(m)  for and
relating to indebtedness for borrowed money, including the Debentures and
Seller’s letter of credit line, outstanding at any time on or prior to the
Closing Date;

(n)   for and
relating to the guarantee of any indebtedness, obligation or other Liability of
any Person (other than the Joint Venture Guaranties);

(o)   based upon,
arising out of, relating to or otherwise in connection with Former Businesses;

(p)   for and in
respect of income Taxes arising in connection with the consummation of the
transactions contemplated hereby;

(q)   for and in
respect of any Taxes relating to the Business, the Assets (including the Joint
Venture) or the Assumed Liabilities for periods (or portions thereof) up to and
including the Closing on the Closing Date (in the case of tax years including
the Closing Date, Taxes shall be determined on a closing-of-the-books basis
through the Closing, except for periodic Taxes (such as real property Taxes)
which shall be determined on a daily pro rata basis). For the avoidance of
doubt, Buyer shall not be responsible for any Liabilities for or in respect of
Taxes attributable to income or gain with respect to the Assets (including the
Joint Venture) and the Business resulting from any action taken by Seller or
Seller Subsidiary that occurs at or prior to the Closing on the Closing Date;

 7

(r)    for which
Seller or Seller Subsidiary are made responsible pursuant to this Agreement or
any other Transaction Document;

(s)    based
upon, arising out of, relating to or otherwise in connection with Seller’s
business operations in Dubai and China;

(t)    to
stockholders or former stockholders of Seller based upon, arising out of,
relating to or otherwise in connection with matters occurring on or prior to
the Closing Date, including the transactions contemplated by this Agreement and
the Proxy Statement;

(u)   based upon,
arising out of, relating to or otherwise in connection with the Contracts set
forth on Schedule 2.1(b)(xi), including any Liabilities related to the
termination of such Contracts (other than the indemnification provided for in Section 13.2(d));
and

(v)    except as expressly agreed otherwise by Buyer, based upon,
arising out of, relating to or otherwise in connection with the Retained
Assets.

ARTICLE IV

PURCHASE PRICE

Section 4.1   Purchase Price.

(a)   Closing Payment.   Subject to the terms and conditions
set forth herein, in consideration for the sale, assignment, conveyance,
transfer and delivery of the Assets, Buyer will, at the Closing (i) pay to
Seller, by wire transfer of immediately available U.S. Dollars to a bank
account designated by Seller, Fifty-Nine Million Five Hundred Thousand Dollars
($59,500,000) (the “Closing Payment”),
(ii) deliver to the Escrow Agent by wire transfer of immediately available
U.S. Dollars to a bank account designated by the Escrow Agent, Seven Million
Dollars ($7,000,000) (the “Escrow Amount”,
and together with the Closing Payment, the “Purchase Price”)
to be held by the Escrow Agent in an escrow fund (the “Escrow Fund”)
pursuant to the Escrow Agreement, and (iii) assume and thereafter pay,
perform, satisfy and discharge when due the Assumed Liabilities.

(b)   Closing Net Assets Statement.

(i)    Within
90 days after the Closing Date, Buyer will prepare and deliver to Seller a
statement (the “Closing Net Assets
Statement”) setting forth the amount of Assets and the amount of
Assumed Liabilities which, in accordance with GAAP, would be set forth on a
balance sheet of the Business operating on a stand-alone basis, in each case as
of the Effective Time. The amounts set forth on the Closing Net Assets
Statement will be determined utilizing the accounting principles, policies,
practices and procedures set forth on Schedule 4.1(b)(i) and, with
respect to matters not set forth on Schedule 4.1(b)(i), utilizing GAAP applied
on a consistent basis with the Balance Sheet. The amount of Assets shown on the
Closing Net Assets Statement minus the amount of Assumed Liabilities shown
thereon is referred to herein as “Net Assets”. Anything
contained herein to the contrary notwithstanding, the amounts set forth on the
Closing Net Assets Statement will not reflect any purchase accounting
adjustments as a result of the acquisition of the Assets or the assumption of
the Assumed Liabilities by Buyer. No amount with respect to Taxes shall be
treated as an Assumed Liability for purposes of determining Net Assets. Buyer
will retain (at Buyer’s sole expense) Deloitte & Touche LLP (“D&T”) to audit the Closing Net Assets Statement and
to render their report thereon stating that the Closing Net Assets Statement
has been prepared in accordance with the terms of this Section 4.1(b)(i). Such
report of D&T will be delivered to Seller together with the Closing Net
Assets Statement. The date on which the Closing Net Assets Statement and the
report thereon of D&T are delivered to Seller is referred to herein as the “Delivery Date”. Seller will cause its employees and the
employees of Seller Subsidiary to provide reasonable assistance to Buyer and
its Representatives in the preparation of the Closing Net Assets Statement and
to provide reasonable assistance to D&T in connection with their audit of
the Closing Net Assets Statement and their issuance of a report thereon, 

 8
 

provided such assistance
will not interfere with the normal work duties of such employees. Seller will
cause Buyer, Buyer’s Representatives and D&T to be provided with reasonable
access at all reasonable times, following reasonable notice, to the personnel,
properties, books and records of Seller and Seller Subsidiary to the extent
necessary for such purposes. Without limiting the generality of the foregoing,
Seller will use commercially reasonable efforts to cause Seller’s Chief
Executive Officer and Chief Financial Officer to execute and deliver customary
representation letters in favor of D&T in connection with their audit of
the Closing Net Assets Statement and their issuance of a report thereon. In
addition, Seller will execute and deliver, and will cause Seller Subsidiary to
execute and deliver, such customary documentation as D&T may reasonably
request to evidence the waiver by Seller and its subsidiaries and Affiliates of
any claim against D&T based upon D&T’s report on the Closing Net Assets
Statement rendered pursuant to this Section 4.1(b)(i); provided that Seller and Seller Subsidiary shall not be
obligated to execute a waiver that is more favorable to D&T than the waiver
executed by Buyer.

(ii)   The
Closing Net Assets Statement will be deemed to be the final, binding and
conclusive Closing Net Assets Statement (the “Final
Closing Net Assets Statement”) for all purposes on the forty-fifth
day after the Delivery Date unless Seller delivers to Buyer written notice of its disagreement (a “Notice of Disagreement”) on or prior to such date specifying the
nature of Seller’s objections to the Closing Net Assets Statement. Buyer will
cause its employees to provide reasonable assistance to Seller and its
Representatives (including any accounting firm retained by Seller) in the
preparation of a Notice of Disagreement, provided such assistance will not
interfere with the normal work duties of such employees. Buyer will cause
Seller and Seller’s Representatives to be provided with reasonable access at
all reasonable times, following reasonable notice, to the personnel,
properties, books and records of Buyer and its subsidiaries to the extent
necessary for such purposes. Buyer will provide that Seller will be afforded a
reasonable opportunity to consult with D&T regarding the procedures
undertaken by D&T in connection with the preparation of the Closing Net
Assets Statement and will use commercially reasonable efforts to provide that
Seller will have reasonable access to all readily available books, records and
work papers prepared by D&T. To be assertable in a Notice of Disagreement,
an objection by Seller with respect to any individual item on the Closing Net
Assets Statement must assert that the Closing Net Assets Statement was not
prepared in accordance with the terms of Section 4.1(b)(i) with respect to such item. Seller hereby
waives the right to assert any objection to
the Closing Net Assets Statement that is not asserted in a Notice of
Disagreement delivered to Buyer within
45 days after the Delivery Date. If a Notice of Disagreement is
delivered to  Buyer within such 45 day period, then the Closing Net Assets
Statement (as adjusted, if necessary)
will be deemed to be the Final Closing Net Assets Statement for all
purposes on the earlier of (x) the date Buyer and Seller resolve in
writing all differences they have with respect to the Closing Net Assets
Statement or (y) the date the disputed matters are resolved in writing by
the Unaffiliated Firm. In the event that
disputed matters are  resolved by the Unaffiliated  Firm (as set forth below in accordance with
the terms hereof), the Final Closing Net
Assets Statement  will consist of the
applicable amounts from the Closing Net Assets Statement (or amounts otherwise
agreed to in writing by Buyer and Seller) as to items that have not been
submitted for resolution to the Unaffiliated Firm, and the amounts determined
by the Unaffiliated Firm as to items that were submitted for resolution by the
Unaffiliated Firm.

(iii) During the
30 day period following the delivery of a Notice of Disagreement, Buyer
and Seller will seek in good faith to resolve any differences they may have
with respect to matters specified in the Notice of Disagreement. If, at the end
of such 30 day period, Buyer and Seller have not reached agreement on such
matters, Buyer will have an additional 15 days to advise Seller in writing
of Buyer’s position with respect to each of Seller’s proposed adjustments that
are in dispute (“Buyer’s Letter”). Seller will
cause Buyer, Buyer’s Representatives and D&T to be provided with access at
all reasonable times to the personnel, properties, books and records of Seller
and its subsidiaries and Affiliates (including Seller Subsidiary) to enable
Buyer to prepare Buyer’s Letter. Buyer’s Letter shall only contain Buyer’s
position with respect to each of Seller’s proposed adjustments that are in
dispute. Buyer’s Letter shall not rely upon any information to which Seller in
writing specifically requested access in accordance with 

 9
 

Section 4.1(b)(ii) in
connection with the preparation of the Notice of Disagreement if and to the
extent such access was not provided to Seller by Buyer. Promptly following the
delivery to Seller of Buyer’s Letter, Buyer and Seller will jointly engage a
single arbitrator, which arbitrator shall not have worked in any capacity on
any matter for either Buyer or Seller, from the firm of Ernst & Young LLP (or, if a representative of such firm
is unable or unwilling to act in such capacity, a single arbitrator, which
arbitrator shall not have worked in any capacity on any matter for either Buyer
or Seller, from the firm of PricewaterhouseCoopers
LLP) (the “Unaffiliated Firm”) to resolve
the matters which remain in dispute with respect to the Closing Net Assets
Statement by arbitration in accordance with the procedures set forth in this Section 4.1(b).
In connection with such engagement, each of Buyer and Seller agrees to execute,
if requested by the Unaffiliated Firm, a reasonable joint engagement letter
including customary indemnities. Promptly after such engagement of the
Unaffiliated Firm, Buyer or Seller will provide the Unaffiliated Firm with a
copy of this Agreement, the Closing Net Assets Statement, the Notice of
Disagreement and Buyer’s Letter. The Unaffiliated Firm will have the authority
to request in writing such additional written submissions from either Buyer or
Seller as it deems appropriate, provided that a copy of any such submission
will be provided to the other party at the same time as it is provided to the
Unaffiliated Firm. Neither party will make (or permit any of its subsidiaries
or Affiliates to make) any additional submission to the Unaffiliated Firm
except pursuant to such a written request by the Unaffiliated Firm. Neither
party will communicate (nor permit any of its subsidiaries or Affiliates to
communicate) with the Unaffiliated Firm without providing the other party a
reasonable opportunity to participate in such communication with the
Unaffiliated Firm (other than with respect to written submissions in response
to the written request of the Unaffiliated Firm). The Unaffiliated Firm will
have 45 days to review the documents provided to it pursuant to this Section 4.1(b)(iii).
Within such 45 day period, the Unaffiliated Firm will furnish
simultaneously to both parties its written determination with respect to each
of the adjustments in dispute submitted to it for resolution. The Unaffiliated
Firm will resolve the differences regarding the Closing Net Assets Statement
based solely on the information provided to the Unaffiliated Firm by Buyer and
Seller pursuant to the terms of this Agreement (and not independent review). The
Unaffiliated Firm’s authority will be limited to resolving disputes with
respect to whether the Closing Net Assets Statement was prepared in accordance
with Section 4.1(b)(i) with respect to the individual items on the
Closing Net Assets Statement in dispute (it being understood that no adjustment
will be made to the Purchase Price with respect to any adjustment made by the
Unaffiliated Firm to any financial statements or amounts other than amounts set
forth in the Closing Net Assets Statement that are in dispute). In resolving
any disputed item, the Unaffiliated Firm may not assign a value to such item
greater than the greatest value for such item asserted by either party or less
than the smallest value for such item asserted by either party.

(iv)  The decision
of the Unaffiliated Firm will be, for all purposes, conclusive, non appealable,
final and binding upon Buyer and Seller. Such decision will be subject to
specific performance pursuant to Section 15.17, and judgment may also be
entered thereon as an arbitration award pursuant to the Federal Arbitration
Act, 9 U.S.C. §§1-16, in any court of competent jurisdiction specified in
Section 15.12. The fees of the Unaffiliated Firm will be borne by Buyer
and Seller in the same proportion that the dollar amount of disputed items lost
by a party bears to the total dollar amount in dispute resolved by the
Unaffiliated Firm. Each party will bear the fees, costs and expenses of its own
accountants and all of its other expenses in connection with matters contemplated
by this Section 4.1(b).

(c)   Post Closing Adjustment.   Upon the Closing Net Assets
Statement being deemed the Final Closing Net Assets Statement in accordance
with Section 4.1(b), the Purchase Price will be adjusted, up or down, as
follows:

(i)    if the
amount of Net Assets shown on the Final Closing Net Assets Statement (the “Net Asset Amount”) is less than U.S. $18,958,659 (the “Benchmark Amount”),
the Purchase Price will be reduced by the amount by which the Net Asset Amount
is less than the Benchmark Amount and such amount by which the Purchase Price
is reduced will be paid to Buyer first from the Escrow Fund, and 

 10
 

Buyer and Seller hereby
agree to give joint written instructions to the Escrow Agent for such
disbursement within two (2) business days of such determination. In the
event amounts held in the Escrow Fund are insufficient to cover such payment,
Seller shall, simultaneously with executing any written instructions to the
Escrow Agent as provided above, pay any deficiency to Buyer by wire transfer of
immediately available funds to a bank account designated by Buyer; and

(ii)   if the Net
Asset Amount is greater than the Benchmark Amount, the Purchase Price will be
increased by the amount by which the Net Asset Amount is greater than the
Benchmark Amount and, within two (2) business days of such determination,
such amount by which the Purchase Price is increased will be paid by Buyer to
Seller by wire transfer of immediately available funds to a bank account
designated by Seller.

Section 4.2   Allocation
of Purchase Price.   The parties agree that the Purchase Price
and the Assumed Liabilities shall be allocated among the Assets in a manner
consistent with Schedule 4.2. Buyer will, not later than 180 days
after the Closing Date, prepare and deliver to Seller a proposed schedule for
Seller’s review and approval in its reasonable discretion (the “Allocation Schedule”) allocating the Purchase Price and the
Assumed Liabilities among the Assets, in accordance with Section 1060 of
the Code and any Treasury Regulations pursuant thereto (or any comparable
provisions of state or local tax law) or any successor provision. Seller will
have the right to raise objections to the Allocation Schedule within
30 days after its receipt thereof, in which event Seller and Buyer will
mutually agree upon revisions to the Allocation Schedule to resolve such
objections. Except to the extent otherwise required by applicable Laws, Buyer
and Seller will, and Buyer and Seller will cause each of their respective
subsidiaries and Affiliates (including, in the case of Seller, Seller
Subsidiary) to, make all tax returns, reports, forms, declarations, claims and
other statements in a manner consistent with the Allocation Schedule (as
revised in accordance with the preceding sentence) and will not make any
inconsistent statement or adjustment on any returns or during the course of any
IRS or other Tax audit.

ARTICLE V

CLOSING

Section 5.1   Closing.   The closing
of the purchase and sale of the Assets and the assumption of the Assumed
Liabilities (the “Closing”) will take place (i) at
the offices of Chadbourne & Parke LLP, 30 Rockefeller Plaza, New York,
New York, at 10:00 a.m. local time, on the third business day following
the expiration or termination of the applicable waiting period under the HSR
Act and the satisfaction or waiver of all other conditions set forth in this
Agreement that are susceptible to being satisfied prior to the Closing, or (ii) at
such other place, date and time as Seller and Buyer may agree. The date of the
Closing is referred to herein as the “Closing Date”. The
Closing will be deemed to be effective at 5:00 p.m. (Salt Lake City time)
on the Closing Date (the “Effective Time”).

Section 5.2   Closing Deliveries of Seller.   At
the Closing, Seller will deliver and cause to be delivered (i) such bills
of sale and instruments of assignment, conveyance and transfer as shall be
reasonably agreed upon by Buyer and Seller to effect or evidence the sale,
assignment, conveyance, transfer and delivery of the Assets to Buyer, and (ii) all
closing certificates, Ancillary Agreements and other documents required to be
delivered by Seller, Seller Subsidiary and each if its and their Affiliates to
Buyer at the Closing pursuant to this Agreement.

Section 5.3   Closing Deliveries of Buyer.   At
the Closing, Buyer will deliver or cause to be delivered (i) the Purchase
Price pursuant to Section 4.1(a), (ii) such instruments of assumption
as shall be reasonably agreed upon by Buyer and Seller to effect or evidence the
assumption by Buyer of the Assumed Liabilities and (iii) all closing
certificates, Ancillary Agreements and other documents required to be delivered
by Buyer to Seller or Seller Subsidiary at the Closing pursuant to this
Agreement.

 11
 

Section 5.4   Transfer Taxes.   All
applicable sales and transfer Taxes (including Taxes, if any, imposed upon the
transfer of real or personal property, but excluding VAT) and filing,
recording, registration, stamp, documentary and other similar Taxes and fees
that are payable in connection with this Agreement, the transactions
contemplated by this Agreement or the documents giving effect to such
transactions, and the reasonable costs of preparing and filing transfer Tax
returns with respect thereto, will be shared on an equal basis by Seller and
Buyer. Seller shall prepare and timely file all Tax returns or other
documentation relating to such transfer Taxes; provided,
however, that to the extent required by
Applicable Law, Buyer will join in the execution of any such Tax returns or
other documents relating to such Taxes. Seller shall provide Buyer with
copies of each such Tax return or other document at least fifteen
(15) days prior to the date on which such Tax return or other document is
required to be filed.

Section 5.5   U.K. Matters.

(a)   Seller and
Buyer agree that the consideration given under this Agreement in respect of the
sale of the Business based in the United Kingdom comprising the Assets located
in the United Kingdom (the “U.K. Business”)
is exclusive of any VAT.

(b)   Seller and
Buyer intend that Article 5 of the Value Added Tax (Special Provisions)
Order 1995 shall apply as between Seller Subsidiary and the relevant United
Kingdom incorporated Affiliate of Buyer to the sale of the UK Business under
this Agreement (which U.K. Business the relevant United Kingdom incorporated
Affiliate of Buyer is purchasing with a view to carrying on in the United
Kingdom as a going concern) and each of Seller and Buyer agrees to procure that
their respective relevant United Kingdom Affiliates as soon as possible
following signing of this Agreement use commercially reasonable efforts to
secure that such sale is treated as neither a supply of goods nor a supply of
services under that article.

(c)   Buyer
warrants that the relevant United Kingdom incorporated Affiliate of Buyer is or
will immediately become as a result of the transfer a taxable person for the
purposes of VAT and agrees that in the period immediately following Closing
(being a minimum period of 30 days) it will use the Assets acquired in carrying
on the same kind of business, whether or not as part of its existing business,
as Seller Subsidiary prior to Closing.

(d)   If,
nevertheless, any VAT is payable on the sale of the U.K. Business or any of the
Assets located in the United Kingdom under this Agreement, the relevant United
Kingdom incorporated Affiliate of Buyer shall in addition to the consideration referred to in Section 5.5(a),
pay to Seller Subsidiary to the extent that Seller Subsidiary has issued to
such Affiliate an appropriate VAT invoice such VAT (and in addition, but subject to Section 5.5(f) below, any
penalties and interest, other than penalties or interest arising solely from
the failure of Seller Subsidiary (i) to issue an appropriate VAT invoice
promptly following denial of (or clear failure to grant after adequate time has
elapsed) relief for transfer as a going concern, (ii) following receipt of
sufficient funds in accordance with an appropriate VAT invoice, to account
promptly for VAT included in the above
mentioned VAT invoice, (iii) to notify promptly the relevant United
Kingdom incorporated Affiliate of Buyer of the amount of the relevant interest
and/or penalties once HM Customs and Revenue have confirmed the sum(s) due,
or (iv) immediately after receipt of sufficient funds as required by
Seller Subsidiary, to discharge in full the interest and penalties to HM
Revenue and Customs in which case and
to that extent Seller Subsidiary shall be responsible for the incremental
payments of interest and/or penalties attributable to its failure to issue the
relevant VAT invoice promptly and/or demand appropriate funds from the relevant
United Kingdom incorporated Affiliate of Buyer and/or account for and/or
otherwise discharge promptly VAT, penalties and interest after having been put
in funds to do so).

(e)   If any
amount paid by the relevant United Kingdom incorporated Affiliate of Buyer to
Seller Subsidiary in respect of VAT pursuant to this Agreement is subsequently
found to have been paid in error, Seller shall procure that Seller Subsidiary
shall if Seller Subsidiary has not yet accounted for such VAT to HM Revenue and
Customs promptly repay such amount to the relevant United Kingdom incorporated 

 12
 

Affiliate of Buyer, and
that if Seller Subsidiary has already so accounted, then Seller shall procure
that Seller Subsidiary shall use commercially reasonable efforts to obtain
repayment thereof from HM Revenue and Customs and forthwith on receiving
repayment from HM Revenue and Customs shall pay to the relevant United Kingdom
incorporated Affiliate of Buyer the amount repaid and Buyer shall procure that
the relevant United Kingdom incorporated Affiliates shall reimburse Seller
Subsidiary 50% of the reasonable expenses, properly accrued by Seller
Subsidiary in using such efforts.

(f)    Notwithstanding
anything in Section 5.4 or 5.5, if VAT is paid on, or in connection with,
the transfer of the U.K. Business or any of the Assets located in the United
Kingdom under this Agreement, then to the extent that such VAT cannot be
recovered as input by the relevant United Kingdom Affiliate of Buyer (whether
by cash recovery or offset), Seller shall on demand pay to Buyer (i) 50%
of such irrecoverable VAT (including VAT paid in error for which repayment is
not obtained) upon Buyer providing evidence (reasonably satisfactory to Seller)
of the amount of such irrecoverable tax and the fact that it is irrecoverable, (ii) VAT
for which Seller Subsidiary is primarily liable to account for but for which
the relevant United Kingdom Affiliate of Buyer becomes liable to HM Revenue and
Customs as a result of the failure of Seller Subsidiary or an Affiliate of
Seller to discharge it, otherwise than as a result of the relevant United
Kingdom incorporated Affiliate of Buyer failing to pay VAT in accordance with Section 5.5(d) and
which is irrecoverable for the United Kingdom Affiliate of Buyer, (iii) 50%
of any interest and/or penalties payable by the relevant United Kingdom
Affiliate of Buyer on the total amount of VAT payable under Section 5.5(d),
and (iv) any interest and/or penalties for which the Seller Subsidiary is
responsible under 5.5(d) which arises after it fails to issue an
appropriate VAT invoice promptly and/or notify Buyer of the relevant amount of
penalties and/or interest and/or account for and/or otherwise discharge the
liability to VAT and/or interest and/or penalties promptly after having been
put in funds to do so.

(g)   The relevant United Kingdom incorporated Affiliate of Buyer will
be solely responsible for incremental interest and penalties arising as a
result of its delay in putting Seller Subsidiary in funds promptly following
the issue of an appropriate VAT invoice or notification of penalties and/or
interest in accordance with Section 5.5(d).

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF SELLER

Seller hereby represents and warrants to Buyer, except
as provided in the disclosures in the disclosure schedule delivered by Seller
to Buyer concurrently herewith, which shall qualify the corresponding section
of the representations and warranties set forth in this Agreement and any other
Section to the extent that it is readily apparent that such disclosure is
relevant, as follows:

Section 6.1   Organization.   Seller
is a corporation duly organized, validly existing and in good standing under
the laws of the State of Utah. Each of Seller Subsidiary and the Joint Venture
is a company duly organized and validly existing under the laws of England and
Wales. Seller is the record and beneficial owner of all of the issued and
outstanding shares of capital stock of Seller Subsidiary. Each of Seller and
Seller Subsidiary has all requisite corporate power and authority to own, lease
and operate its Assets and to carry on the Business as presently conducted and
as it will be conducted
through the Closing Date. The Joint Venture has all requisite corporate
power and authority to own, lease and operate the assets owned, leased and
operated by it and to carry on its business as presently conducted and as it
will be conducted through the Closing
Date. Each of Seller and Seller Subsidiary is duly qualified to transact
business and in good standing as a foreign corporation in each jurisdiction
where the Business or the ownership, leasing or holding of Assets by it makes
such qualification necessary, except where the failure to be so qualified would
not have or  reasonably
be expected to have, individually or in the aggregate, a Material Adverse
Effect.

 13
 

Section 6.2   Authority.   Each
of Seller and Seller Subsidiary has all requisite corporate power and authority
to execute and deliver each Transaction Document delivered or to be delivered
by it and to perform all of its obligations hereunder and thereunder. The
execution, delivery and performance by each of Seller and Seller Subsidiary of
each Transaction Document delivered or to be delivered by it and the
consummation by each of Seller and Seller Subsidiary of the Transaction has
been duly authorized by all necessary and proper action on the part of Seller
or Seller Subsidiary, as the case may be, except for the Required Seller Vote. This
Agreement has been duly executed and delivered by Seller and, assuming due
authorization, execution and delivery by the other parties hereto, constitutes
the legal, valid and binding obligation of Seller, enforceable against Seller
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
affecting the enforcement of creditors’ rights in general and by general
principles of equity. Each other Transaction Document to be delivered by Seller
or Seller Subsidiary will be duly executed and delivered by Seller or Seller
Subsidiary, as the case may be, and, when so executed and delivered, assuming
due authorization, execution and delivery by the other parties thereto, will
constitute the legal, valid and binding obligation of Seller or Seller
Subsidiary, as the case may be, enforceable against Seller or Seller
Subsidiary, as the case may be, in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar laws relating to or affecting the enforcement of
creditors’ rights in general and by general principles of equity.

Section 6.3   No
Breach.   Assuming receipt of the authorizations, approvals and
consents referred to in Section 6.13 hereof and the approval of the
stockholders of Seller by the Required Seller Vote, none of the execution,
delivery or performance by Seller or Seller Subsidiary of any Transaction
Document, or the consummation by Seller and Seller Subsidiary of the
Transaction, with or without the giving of notice or the lapse of time or both,
does or will result in the creation of any Lien upon any of the Assets (except
for Permitted Liens), or result in a breach or violation of or a default under,
or give rise to a right of amendment, termination, cancellation or acceleration
of any obligation or to a loss of a benefit under (i) the Articles of
Incorporation or By-laws (or similar governance document) of Seller, Seller
Subsidiary or the Joint Venture, (ii) any Contract of Seller or Seller
Subsidiary, or (iii) any Law or Permit (subject to compliance with the HSR
Act) applicable to Seller, Seller Subsidiary or, to the Knowledge of Seller,
the Joint Venture or to which their respective properties or assets is subject,
except, in the case of items (ii) and (iii) above only, for those
which would not have or reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.

Section 6.4   Financial
Information.

(a)   The
Financial Statements have been prepared in accordance with GAAP consistently
applied, and fairly present, in conformity with GAAP applied on a consistent
basis, the consolidated financial condition and results of operations and cash
flows of Seller and Seller Subsidiary as of the dates thereof or the periods
then ended, subject in the case of the unaudited financial statements to normal
year-end adjustments.

(b)   Except for
Liabilities (i) set forth on Schedule 6.4(b), (ii) set forth or
reserved on the September 30, 2005 Balance Sheet (or referred to in the
notes thereto) or (iii) which would not have or reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect, neither
Seller nor Seller Subsidiary, in respect of the Business, or, to the Knowledge
of Seller, the Joint Venture has any Liabilities, contingent or otherwise, of
any kind or nature.

(c)   All accounts
and notes receivable and other receivables of the Business arose from bona fide
sales and deliveries of goods or performance of services in the ordinary course
of business. All such receivables outstanding as of September 30, 2005
have been adequately reserved in the September 30, 2005 Balance Sheet in
accordance with GAAP.

 14

(d)   All
inventories of the Business have been procured and produced for sale in the
ordinary course of business and consistent with anticipated requirements as of
the time commitments were made, and the volume of production or purchases
thereof and of orders therefor have not been reduced or increased in
anticipation of the transactions contemplated by this Agreement.

Section 6.5   Taxes.   Except
as set forth on Schedule 6.5:

(a)   All federal
and Utah state income Tax returns and all other material state, local and
foreign Tax returns, reports, declarations, statements and other documents (“Tax Returns”) required to be filed by or on behalf of
(i) Seller, Seller Subsidiary, any predecessor corporation of either of
them or any consolidated, combined, affiliated or unitary group of which Seller
is or has been a member (together the “Seller Affiliated Group”)
with respect to (or which include) the Business or the Assets, and
(ii) the Joint Venture, have been timely filed with the appropriate tax
authorities or requests for extensions have been timely filed and any such
extensions have been granted and have not expired. Each such Tax Return was
complete and correct in all material respects.

(b)   All
material Taxes with respect to taxable periods or portions thereof covered by
such Tax Returns and all other material Taxes (without regard to whether a Tax
Return was or is required) for which (i) Seller, Seller Subsidiary, any
predecessor corporation of either of them or any member of the Seller
Affiliated Group is otherwise liable with respect to (or which relate to) the
Business or the Assets, and (ii) the Joint Venture is otherwise liable,
that are due have been paid in full or adequate reserves have been established
on the September 30, 2005 Balance Sheet, in accordance with GAAP as
applied by Seller on a consistent basis with prior periods.

(c)   With
respect to the Business or the Assets, all material Taxes due with respect to
any completed and settled audit, examination or deficiency Action with any
taxing authority for which (i) Seller, Seller Subsidiary, any predecessor
corporation of either of them or any member of the Seller Affiliated Group is
or might otherwise be liable with respect to (or which relate to) the Business
or the Assets, and (ii) the Joint Venture is or might otherwise be liable,
have been paid in full.

(d)   There is no
audit by any taxing authority pending against (i) Seller, Seller
Subsidiary, any predecessor corporation of either of them with respect to the
Assets or the Business, or (ii) the Joint Venture, and such entities have
not received any written notice from any taxing authority that it is conducting
or intends to conduct an audit or investigation. To the Knowledge of Seller, no
material issue has been raised in writing within the past three years by a
taxing authority in any current or most recent prior examination which, by
application of the same or similar principles, would reasonably be expected to
affect in any material respect the Tax treatment of any of the Assets or the
Business in any taxable period (or portion thereof) ending after the Closing
Date.

(e)   No claim
has ever been made in writing within the past three years by a taxing authority
in a jurisdiction where Seller, Seller Subsidiary or the Joint Venture does not
file Tax Returns that with respect to the Business or the Assets, Seller,
Seller Subsidiary or the Joint Venture is or may be subject to taxation by that
jurisdiction.

(f)    With
respect to the Business or the Assets, each of Seller, Seller Subsidiary and
the Joint Venture has complied in all material respects with all applicable
Laws relating to withholding of Taxes and the payment thereof, and has in all
material respects timely and properly withheld from employee wages (and from
all other payments made by or on behalf of Seller, Seller Subsidiary and the
Joint Venture) and paid to the proper authorities all amounts required to be
withheld and paid over under applicable Laws.

(g)   Other than
the Joint Venture, none of the Assets is (i) an interest in a partnership
or other entity treated as a partnership for U.S. federal income tax purposes, (ii) an
interest in an entity taxable as a corporation, trust or real estate mortgage
investment conduit for U.S. federal income tax purposes, or 

 15
 

(iii) an entity
treated as a disregarded entity described in Treasury Regulation Section 301.7701-2(c)(2)(i).
The Joint Venture has been treated by Seller as a corporation for U.S. federal
income tax purposes.

(h)   None of the
Assets (i) is tax-exempt use property within the meaning of Section 168(h) of
the Code, (ii) directly or indirectly secures any debt the interest on
which is exempt under Section 103(a) of the Code or (iii) is
property that is required to be treated as being owned by any Person (other
than Seller or Seller Subsidiary) pursuant to the provisions of Section 168(f)(8) of
the Internal Revenue Code of 1954, as amended, and in effect immediately before
the enactment of the Tax Reform Act of 1986.

(i)    No Liens
for Taxes exist with respect to any of the Assets, except for Permitted Liens.

Section 6.6   Proprietary Rights.

(a)   Set forth
on Schedule 6.6(a) are all patents, patent applications, patent and
invention disclosures available for filing, mask works and semiconductor chip
rights, copyright applications and registrations, trademark applications and
registrations and material unregistered trademarks which constitute Business
Intellectual Property owned by Seller or Seller Subsidiary and the entity that
owns such Business Intellectual Property.

(b)   Set forth
on Schedule 6.6(b) are all Contracts of Seller and Seller Subsidiary by
which Seller or Seller Subsidiary grants or receives rights in or to any
Business Intellectual Property or Seller Non-Laser Intellectual Property,
including the distribution or license of, or royalty payments with respect to, Business
Intellectual Property or Seller Non-Laser Intellectual Property, whether as
licensor or licensee, and excluding (i) non-material software (in object
code form only) licenses to end-users; and (ii) software and database
license agreements based on one of the forms included on Schedule 6.6(b),
entered into in the ordinary course of business consistent with past practices
granting (A) Seller’s or Seller Subsidiary’s customers the nonexclusive
right to use, copy or merge software (in object code form only) or databases
sold by, or incorporated in products sold by, Seller or Seller Subsidiary and (B) Restricted
Rights (as defined in FAR 52.227-14) to software (in object code form
only), Limited Rights (as defined in FAR 52.227-14) to associated
technical data documentation or Government Purpose Rights (as defined in FAR
52.227-14) to databases to the United States Government, provided that
such licenses in clauses (A) and (B) do not differ materially from
such forms (the licenses in 6.6(b)(i) and 6.6(b)(ii), the “Excluded Licenses”).

(c)   Except as
set forth on Schedule 6.6(c):

(i)    Seller or
Seller Subsidiary owns all right, title and interest in and to (or, in the case
of Business Intellectual Property or Seller Non-Laser Intellectual Property
subject to license agreements in favor of Seller or Seller Subsidiary set forth
on Schedule 6.6(b), has the right to use in accordance with the terms of such
license agreements) all of the Business Intellectual Property and material
Seller Non-Laser Intellectual Property, free and clear of any Liens (other than
Permitted Liens) and free from any requirement of any past, present or future
payments (other than maintenance and similar payments), charges or fees or
conditions, rights or restrictions (except, in the case of Business
Intellectual Property or Seller Non-Laser Intellectual Property subject to
license agreements from or to Seller or Seller Subsidiary set forth on Schedule
6.6(b) and the Excluded Licenses, as otherwise provided pursuant to the
terms of such license agreements);

(ii)   no
Business Intellectual Property or, to the Knowledge of Seller, Seller Non-Laser
Intellectual Property (other than Business Intellectual Property or Seller
Non-Laser Intellectual Property subject to license agreements in favor of Seller
or Seller Subsidiary set forth on Schedule 6.6(b)) or any service rendered by
Seller or Seller Subsidiary in respect of the Business within the past six
years, or any product, process or material developed, manufactured, produced or
used by Seller or Seller Subsidiary in respect of the Business within the past
six years, is alleged in writing to infringe upon or misappropriate in any
material respect or, to the Knowledge of Seller, infringes or 

 16
 

misappropriates in any
material respect upon any Intellectual Property or other rights owned or held
by any other Person, and no Business Intellectual Property or, to the Knowledge
of Seller, Seller Non-Laser Intellectual Property subject to license agreements
in favor of Seller or Seller Subsidiary set forth on Schedule 6.6(b) is
alleged in writing to infringe in any material respect upon or, to the
Knowledge of Seller, infringes in any material respect upon any Intellectual
Property or other rights owned or held by any other Person;

(iii)  to the
Knowledge of Seller, the rights of Seller and Seller Subsidiary in and to all
Business Intellectual Property and Seller Non-Laser Intellectual Property are
valid and enforceable and, no Business Intellectual Property or, to the
Knowledge of Seller, Seller Non-Laser Intellectual Property is subject to any
outstanding Lien (other than Permitted Liens), judgment, ruling, order, writ,
decree, stipulation, injunction or determination by or with any Governmental
Entity restricting the use of such Intellectual Property, nor is there (or has
there been within the last three (3) years), pending or (to the Knowledge
of Seller) threatened, any written claim, Action or other proceeding relating
to any Business Intellectual Property or, to the Knowledge of Seller, Seller
Non-Laser Intellectual Property, (including any interference, reissue,
reexamination or opposition proceeding, which is contesting the rights of
Seller or Seller Subsidiary to any Business Intellectual Property or, to the
Knowledge of Seller, Seller Non-Laser Intellectual Property or the ownership,
use, enforceability or validity of any such Business Intellectual Property or,
to the Knowledge of Seller, Seller Non-Laser Intellectual Property);

(iv)  to the
Knowledge of Seller, there is no infringement or misappropriation of any
Business Intellectual Property or Seller Non-Laser Intellectual Property by any
Person;

(v)    there are
no material Contracts between Seller or Seller Subsidiary, on the one hand, and
any other Person, on the other hand, which have been terminated or expired
prior to the date hereof and under which Seller or Seller Subsidiary has
granted rights or licenses in any Business Intellectual Property or, to the
Knowledge of Seller, Seller Non-Laser Intellectual Property to such other
Persons or granted an option to acquire such rights or licenses, which rights
or licenses or the option to acquire the same survived such termination or
expiration;

(vi)  neither
Seller nor Seller Subsidiary is bound by any existing or contingent covenant or
obligation not to sue or otherwise enforce any legal rights with respect to any
Business Intellectual Property or, to the Knowledge of Seller, Seller Non-Laser
Intellectual Property;

(vii) all
Business Intellectual Property and, to the Knowledge of Seller, Seller
Non-Laser Intellectual Property, in each case, owned by Seller or Seller
Subsidiary (other than Business Intellectual Property and Seller Non-Laser
Intellectual Property acquired by Seller or Seller Subsidiary in connection
with the acquisition of a business from a third party) was developed entirely
by employees of Seller or Seller Subsidiary during the time they were employees
of Seller or Seller Subsidiary; and

(viii)  there are
no actions that must be taken within six (6) months from the date hereof,
including the payment of fees or the filing of documents, for the purposes of
obtaining, maintaining, perfecting, preserving, or renewing any rights in any
registered or applied-for Business Intellectual Property or, to the Knowledge
of Seller, Seller Non-Laser Intellectual Property, in each case, owned by
Seller or Seller Subsidiary.

(d)   Seller has
taken and has caused Seller Subsidiary to take reasonable steps (including
measures to protect secrecy and confidentiality) to protect its right, title
and interest in and to, or its right to use (as applicable), all material
Business Intellectual Property and, to the Knowledge of Seller, Seller
Non-Laser Intellectual Property. All employees, agents, consultants and other
Representatives of Seller or Seller Subsidiary who have access to material
confidential or proprietary information of Seller or Seller 

 17
 

Subsidiary included in the
Business Intellectual Property or, to the Knowledge of Seller, the Seller
Non-Laser Intellectual Property have a legal obligation of confidentiality to
Seller or Seller Subsidiary with respect to such information. All relevant
employees of the Business and all relevant employees of Seller or Seller
Subsidiary (including all employees who create or develop or who have created
or developed Intellectual Property) related to the Business have duly executed
and delivered agreements with Seller or a Seller Subsidiary pertaining to the
assignment, without additional consideration, to Seller or Seller Subsidiary of
all inventions, discoveries and ideas, whether or not patented or patentable,
conceived or reduced to practice during the course of their employment by
Seller or Seller Subsidiary.

(e)   The
Business Intellectual Property and the Intellectual Property licensed to Buyer
pursuant to the Transaction Documents, together with the Intellectual Property
rights under and arising from the Contracts that constitute Assets, constitute
all of Seller’s Intellectual Property rights necessary to conduct the Business
in the manner as currently conducted in all material respects and, assuming
that such Intellectual Property rights are transferred in accordance with the
terms of this Agreement and that all required third party consents to the
transfer to Buyer of Contracts specified in Section 6.10(d) have been
obtained, immediately after the Closing, Buyer will have the same rights to use
such Intellectual Property to conduct the Business after the Closing as Seller
did to conduct the Business immediately before the Closing.

(f)    Except as
set forth in Schedule 6.6(f), neither Seller nor Seller Subsidiary has
released, or escrowed for the benefit of others, any of the source code
developed for the Business by Seller or Seller Subsidiary, and to the Knowledge
of Seller, no Person other than Seller or Seller Subsidiary is in possession of
such source code.

(g)   Except as
set forth in Schedule 6.6(g), to the Knowledge of Seller, the software
included in the Business Intellectual Property and the Seller Non-Laser
Intellectual Property does not contain any open source code or any other components
that are licensed under the GNU General Public License or other open source
licenses.

Section 6.7   Equity Interest.

(a)   Except for
the capital stock of Seller Subsidiary and the ownership interest in the Joint
Venture, neither Seller nor Seller Subsidiary owns any capital stock or other
equity interest in any Person that is Related to the Business.

(b)   True and
complete copies of the Articles of Incorporation and By-laws (or similar
governing documents) of the Joint Venture, in each case as amended to date,
have been made available to Buyer. The capital stock of the Joint Venture
consists of 950,000 shares of capital stock, of which 475,000 “A” Shares are
owned by Quadrant Group plc. and 475,000 “B” Shares are owned by Seller. All
such outstanding shares have been duly authorized and validly issued and are
fully paid, non-assessable and free of pre-emptive rights. There are no
outstanding (i) shares of capital stock of the Joint Venture other than
the shares described in this Section 6.7(b), (ii) securities of the
Joint Venture convertible into or exchangeable for shares of capital stock of
the Joint Venture or (iii) options or other rights or agreements (other
than this Agreement) to acquire, either directly or indirectly, from Seller,
Quadrant Group plc or the Joint Venture, or other obligation of Seller, Quadrant Group plc or the Joint Venture to
issue, any capital stock, or securities convertible into or exchangeable
for capital stock, of the Joint Venture.

Section 6.8   Title.   Each of
Seller and Seller Subsidiary has good and valid title to all of the Assets
(other than the Leased Premises and the Owned Real Property), in each case free
and clear of any Liens, other than Permitted Liens. Seller and Seller
Subsidiary have valid and enforceable title to all Owned Real Property and a
valid and enforceable leasehold estate in the Leased Premises, in each case
free and clear of all Liens, other than Permitted Liens.

 18
 

Section 6.9   Real
Property.

(a)   Schedule 6.9(a)
sets forth a list of all real property (including improvements on Leased
Premises) owned by Seller or Seller Subsidiary and included in the Assets (the “Owned Real Property”).

(b)   Schedule 6.9(b)
contains a complete and accurate list of (i) all real estate leased,
subleased or occupied by Seller or Seller Subsidiary Related to the Business
pursuant to a Lease (the “Leased Premises”,
and, together with the Owned Real Property, the “Real
Property”), indicating the ownership, street address and use of each
of the Leased Premises and (ii) all Leases related to or in respect of the
Real Property.

(c)   Other than
as set forth on Schedule 6.9(c), either Seller or Seller Subsidiary (and
no other Person) is in actual occupancy of all Real Property and Seller and
Seller Subsidiary enjoy peaceful and undisturbed possession thereof. Seller has
not received written notice from a Governmental Entity of any restrictions
imposed by Law which preclude or restrict the ability to use the Real Property
for the purposes for which they are currently being used and, to, the Knowledge
of Seller (without duty of inquiry), there are no such restrictions.

(d)   To the
Knowledge of Seller (without duty of inquiry), all improvements on the Real
Property were constructed in compliance in all material respects with all
applicable Laws (including building, planning and zoning Laws) and Permits
affecting such Real Property. Seller has not received written notice from a
Governmental Entity that any improvement on the Real Property or any current
use or condition thereof violates any applicable deed restrictions or other
applicable covenants, restrictions, agreements, site plan approvals or
variances or the certificate of occupancy for each of the improvements on the
Real Property, and, to the Knowledge of Seller (without duty of inquiry), there
are no such violations. All improvements on the Real Property are wholly within
the boundaries of the real property covered by the deed or Lease relating
thereto, and do not encroach upon the property of, or otherwise conflict with
the property rights of, any other Person.

(e)   Neither
Seller nor Seller Subsidiary has received written notice of any pending or
threatened Actions (including condemnation Actions) affecting any Real
Property, and, to the Knowledge of Seller, there are no such pending or
threatened Actions.

Section 6.10   Contracts.

(a)   Schedule 6.10(a) lists
all Contracts of Seller or Seller Subsidiary Related to the Business (other
than those set forth on Schedule 6.6(b), Schedule 6.9(b),
Schedule 6.17(b) or Schedule 6.17(e)):

(i)    for the
lease (whether as lessor or as lessee) of personal property from any Person
providing for annual lease payments in excess of $25,000;

(ii)   for the
sale or lease (as lessor) of inventories, materials, commodities, supplies,
products, spare parts or real, personal or mixed property, or for the
furnishing or receipt of services, including customer Contracts, which provide
for aggregate future payments to Seller or Seller Subsidiary in excess of
$50,000 per annum;

(iii)  establishing
a partnership, joint venture or joint development arrangement and any Contracts
of any such partnership, joint venture or joint development to which Seller,
Seller Subsidiary or the United Kingdom Ministry of Defense is a party;

(iv)  providing
for management services or for the services of independent contractors or
consultants (or similar arrangements), which provide for aggregate future
payments in excess of $25,000 per annum;

(v)    under
which any Person has directly or indirectly guaranteed any indebtedness or
other Liability of Seller or Seller Subsidiary in excess of $25,000;

 19

(vi)  under which
Seller or Seller Subsidiary has directly or indirectly made any advance, loan
or extension of credit to, or other investment in, any Person in excess of
$50,000 (other than in respect of amounts paid for products or services) or any
employee, or which involve a sharing of profits, losses, costs or Liabilities
by Seller or Seller Subsidiary with any other Person;

(vii) providing
for or granting a Lien (other than a Permitted Lien) upon any Assets;

(viii)     between
or among Seller or Seller Subsidiary, on the one hand, and any Affiliate,
officer, director or employee of Seller or Seller Subsidiary, on the other
hand;

(ix)  with
(A) any broker, distributor, dealer or sales representative relating to
the distribution or sale of products pursuant to which in excess of $25,000 per
annum is potentially payable or (B) any international sales
representative;

(x)    with any
supplier, manufacturer or other Person relating to the purchase or manufacture
of products or the receipt of services which provide for aggregate future
payments by Seller or Seller Subsidiary in excess of $50,000 per annum;

(xi)  all
confidentiality and non-disclosure agreements (other than standard
non-disclosure forms signed by employees generally, copies of which have been
made available to Buyer);

(xii) for the
purchase or sale of any business, corporation, partnership, joint venture,
association or other business organization or any division, assets, operating
unit or product line thereof;

(xiii)     which
limit or purport to limit the ability of Seller or Seller Subsidiary or the
Business to compete in any line of business or with any Person or in any
geographic area or which limit or purport to limit or restrict the ability of
Seller or Seller Subsidiary with respect to the development, manufacture,
marketing, sale or distribution of any products or services;

(xiv)                      pursuant to which Seller or
Seller Subsidiary has granted exclusive rights with respect to the
distribution, sale, manufacture or other use of any products, Intellectual
Property or other assets;

(xv)  with any
Governmental Entity (other than Contracts under which Governmental Entities are
customers which are disclosed or not required to be disclosed pursuant to
clause (ii) above); and

(xvi)                      all foreign currency forward
exchange Contracts.

Each Contract set
forth or required to be set forth on Schedule 6.10(a),
Schedule 6.6(b), Schedule 6.9(b), Schedule 6.17(b) or
Schedule 6.17(e) and each Contract of the Joint Venture that is
material to the Business is referred to herein as a “Material
Contract”.

(b)   Each
Material Contract is in full force and effect and, assuming due authorization,
execution and delivery by the other parties thereto, is legal, valid, binding
and enforceable against Seller or Seller Subsidiary and, to the Knowledge of
Seller, each other party thereto, in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or similar Laws relating to or affecting the enforcement of
creditors’ rights in general and by general principles of equity.

(c)   Except as
set forth on Schedule 6.10(c), Seller, Seller Subsidiary or, to the
Knowledge of Seller, the Joint Venture have performed in all material respects
all obligations required to be performed by them under each Material Contract
and are not in material default under any Material Contract. To the Knowledge
of Seller, no party to any Material Contract has repudiated any provision
thereof or terminated any Material Contract, and none of Seller or Seller
Subsidiary has received written notice from the other party or parties to any
such Material Contract of its intention to exercise any right of cancellation,
termination or non-renewal thereof. Seller has heretofore made available to
Buyer true and complete 

 20
 

copies of all written
Material Contracts. Neither Seller nor Seller Subsidiary is a party to any oral
Contract that would fall within the definition of Material Contract.

(d)   Except as
set forth on Schedule 6.10(d), none of the execution, delivery or
performance of any Transaction Document or consummation of the Transaction
will, under the terms, conditions or provisions of any Material Contract (A) require
any Consent of, with or to any Person, (B) result in any increase in any
payment or change in any term, (C) give rise to any right of amendment,
termination, cancellation or acceleration of any right or obligation or to a
loss of benefit or (D) grant any repayment or repurchase rights to any
Person.

(e)   The current
Estimates at Completion (EACs) prepared by Seller for existing Material
Contracts providing for the sale of products by Seller or Seller Subsidiary
have been made available to Buyer and reflect (i) all material costs
incurred related to such Material Contracts in accordance with GAAP and (ii) reasonable
and appropriate estimates to complete such Material Contracts based on actual
costs incurred and estimates of the effort to complete such Material Contracts
from Seller’s and Seller Subsidiary’s engineering and program management
functions. The Material Contracts for which losses have been recorded or
reserved against in the Financial Statements and the amount of such losses
recorded or reserved for each such Material Contract are set forth on
Schedule 6.10(e). Seller and Seller Subsidiary have no Material Contracts
for which a material loss should be recorded or reserved in accordance with
GAAP, other than Material Contracts for which losses have been recorded or
reserved against in the Financial Statements.

Section 6.11   Litigation.

(a)   Except as
set forth on Schedule 6.11(a) or Schedule 6.6(c), (i) there
is no judgment, ruling, order, writ, decree, stipulation, injunction or
determination by or with any arbitrator, court or other Governmental Entity to
which Seller or Seller Subsidiary is party or by which Seller or Seller
Subsidiary or any assets of any thereof is bound, and which relates to or
affects the Business (or the operation thereof), the Assets, the Assumed
Liabilities, any Transaction Document or the Transaction in effect, or, to the
Knowledge of Seller, to which the Joint Venture is a party or by which the
Joint Venture or any assets of the Joint Venture is bound, and which relates to
or affects the business (or the operation thereof), the assets or the liabilities
of the Joint Venture, and (ii) none of Seller or Seller Subsidiary is
party to, engaged in, or, to the Knowledge of Seller, threatened with any
Action which relates to or affects the Business (or the operation thereof), the
Assets, the Assumed Liabilities, any Transaction Document or the Transaction,
and, to the Knowledge of Seller, the Joint Venture is not a party to, engaged
in or threatened with any Action which relates to or affects the business (or
the operation thereof), the assets or the liabilities of the Joint Venture.

(b)   None of
Seller, Seller Subsidiary or the Joint Venture is in default under or with
respect to any judgment, ruling, order, writ, decree, stipulation, injunction
or determination of the type described in Section 6.11(a)(i).

Section 6.12   Environmental Matters.

(a)   Except as
disclosed on Schedule 6.12 or as would not reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect, to the Knowledge
of Seller:

(i)    none of
the Facilities has been used at any time (A) as a site for the storage,
except as authorized under applicable Environmental Laws, or disposal of any
Hazardous Material, or (B) so as to cause a material violation of, or to
give rise to, a material removal, restoration or reimbursement Liability under
any Environmental Law;

(ii)   neither
Seller nor Seller Subsidiary has any material Environmental Liability whether
directly or pursuant to any Contract, including with respect to or as a result
of (A) the presence, 

 21
 

discharge, generation,
treatment, storage, handling, removal, disposal, transportation or Release of
any Hazardous Material at, onto or from any Facility, (B) disposition of
such removed Hazardous Material at any other location, (C) the Release,
threatened Release or presence of Hazardous Materials at any location or (D) the
discontinuance, sale or transfer of operations of any business conducted at any
Facility;

(iii)  each of
Seller and Seller Subsidiary has complied and remains in compliance in all
material respects with all Environmental Laws related to or affecting the
Business or the Assets, including in connection with the acquisition, storage,
handling, transportation, processing, use or disposal of any goods or
materials, whether as raw materials, work in process, finished goods or otherwise;

(iv)  no
underground tanks, asbestos containing materials or polychlorinated biphenyls
are, or have at any time while owned or operated by Seller or Seller Subsidiary
been, present at any Facility; and

(v)    no
environmental assessment reports with respect to any Facility are in the
possession or control of Seller or Seller Subsidiary that have not been made
available to Buyer.

(b)   The
representations in this Section 6.12 constitute the sole and exclusive
representations relating to environmental matters under this agreement.

Section 6.13   Governmental Approvals.   Except
for the filings required under the HSR Act and as set forth on
Schedule 6.13, no material Consent or order of, with or to any
Governmental Entity is required to be obtained or made by or with respect to
Seller, Seller Subsidiary or the Joint Venture in connection with the
execution, delivery and performance by Seller or Seller Subsidiary of any
Transaction Document or the consummation by Seller or Seller Subsidiary of the
Transaction.

Section 6.14   Compliance With Applicable Laws.

(a)   Except as
set forth on Schedule 6.14 (and except with respect to Intellectual
Property), (i) each of Seller, Seller Subsidiary and the Joint Venture is
in compliance in all material respects and has complied in all material
respects with all Laws applicable to the Business, the Assets and the Joint
Venture, (ii) within the past three (3) years, no written claims or
complaints from any Governmental Entities have been asserted or received by
Seller, Seller Subsidiary or the Joint Venture related to or affecting the
Business, the Assets or the Joint Venture and, to the Knowledge of Seller, no
written claims or complaints are threatened, alleging that Seller, Seller
Subsidiary or the Joint Venture is in violation in any material respect of any
Laws or Permits applicable to the Business, the Assets or the Joint Venture,
and (iii) within the past three (3) years, to the Knowledge of
Seller, no investigation, inquiry, or review by any Governmental Entity with
respect to the Business, the Assets or the Joint Venture is pending or
threatened, nor has any Governmental Entity indicated to Seller, Seller
Subsidiary or the Joint Venture an intention to conduct any such investigation,
inquiry or review.

(b)   To the
Knowledge of Seller, none of Seller, Seller Subsidiary or the Joint Venture,
with respect to the Business or the Joint Venture, nor any director, officer,
agent, employee or other Person associated with or acting on behalf of Seller,
Seller Subsidiary or the Joint Venture, with respect to the Business or the
Joint Venture, has, directly or indirectly, used any corporate funds for any
unlawful contributions, gifts, entertainment or other unlawful expenses
relating to political activity, made any unlawful payment to any Governmental
Entity or governmental, administrative or regulatory official or employee or to
any political party or campaign from corporate funds or made any bribe,
unrecorded rebate, payoff, influence payment, kickback or other unlawful
payment.

Section 6.15   Permits.   Schedule 6.15
contains a complete and accurate list of all material Permits that are held by
Seller or Seller Subsidiary with respect to the Business, the Assets or the
Assumed Liabilities. Other than any material Permits held by the landlords of
Seller or Seller Subsidiary under any 

 22
 

Leases, the Permits listed
on Schedule 6.15 constitute all the material Permits that are necessary to
operate the Business and to operate, own and use the Assets in compliance in
all material respects with all Laws applicable to such operation, ownership and
use. To the Knowledge of Seller, no such material Permit will be subject to
suspension, modification, revocation, cancellation, termination or nonrenewal
as a result of the execution, delivery or performance of any Transaction
Document or the consummation of the Transaction. Each of Seller and Seller
Subsidiary has complied in all material respects with all of the terms and
requirements of the Permits listed on Schedule 6.15.

Section 6.16   Sufficiency of Assets.   The
Assets, together with Buyer’s rights under the Transition Agreement, the
Intellectual Property Agreement, the Laser Supply Agreement and the Laser
Agreement constitute and will constitute on the Closing Date (a) all of
the material assets and rights that are used in the operation of the Business
as it is being conducted as of the date hereof and as it will be conducted
through the Closing Date and (b) all the material property, real and
personal, tangible and intangible, reasonably necessary for the conduct of the
Business following the Effective Time as it is being conducted as of the date
hereof and as it will be conducted through the Effective Time, excluding (w) the
Real Property listed on Schedule 6.9(a) or Schedule 6.9(b), but
not included on Schedule 2.1(a)(i), (x) the power substation, (y) any
differences between the international sales representative agreements entered
into by Buyer pursuant to Section 8.13 and those of Seller as of the
Effective Time, and (z) any Business Employee who elects not to accept
employment with Buyer as of the Effective Time. Except as set forth on
Schedule 6.16, no Affiliate of Seller (other than Seller Subsidiary) owns
any assets, properties or rights Related to the Business.

Section 6.17   Employee Matters.

(a)   Neither Seller
nor Seller Subsidiary is a party to any Contract regarding collective
bargaining or other Contract with or to any labor union or other association
representing any employee engaged in the Business, nor does any labor union or
collective bargaining agent represent any employee engaged in the Business. No
Contract regarding collective bargaining has been requested by, or is under
discussion between management of Seller or Seller Subsidiary and, any group of
employees engaged in the Business or others, nor are there any representation
proceedings or petitions seeking a representation proceeding presently pending
against Seller or Seller Subsidiary with the National Labor Relations Board,
the Central Arbitration Committee under the Employment Relations Act 1999 or
any labor relations tribunal related to the Business, nor are there any other
current activities, to the Knowledge of Seller, to organize any employees
engaged in the Business into a collective bargaining unit. There is no unfair
labor practice charge or complaint pending or, to the Knowledge of Seller,
threatened that is related to the Business. Except as set forth on
Schedule 6.17(a), during the past four (4) years, there has not been
any labor strike, slow-down, work stoppage, arbitration or material grievance
involving Seller or Seller Subsidiary with respect to the Business or otherwise
related to the Business, and no such action is now pending or, to the Knowledge
of Seller, threatened against Seller, Seller Subsidiary or the Business.

(b)   Schedule 6.17(b) sets
forth a complete and accurate list of each pension, retirement, savings, profit
sharing, cash balance, money purchase, deferred compensation, medical, vision,
dental, hospitalization, prescription drug and other health plan, cafeteria,
flexible benefits, short-term and long-term disability, accident and life
insurance plan, bonus, stock option, stock purchase, stock appreciation,
phantom stock, restricted stock, stock appreciation rights, incentive and
special compensation and other plan and each other employee benefit plan,
program or contract, whether or not subject to ERISA, (i) which is related
to the Business or which is otherwise applicable to employees or categories of
employees engaged in the Business and (ii) to which Seller or Seller
Subsidiary contributes or is required to contribute, or which Seller or Seller
Subsidiary sponsors, maintains, administers or participates in (hereinafter
referred to collectively as the “Plans”).

 23
 

(c)   Except as
set forth on Schedule 6.17(c), none of the Plans is subject to Title IV of
ERISA or Section 412 of the Code.

(d)   None of
Seller, Seller Subsidiary or any ERISA Affiliate of any thereof is required to
contribute to any “multiemployer plan” (as defined in Section 4001(a)(3) of
ERISA) which is applicable to employees or categories of employees related to
the Business.

(e)   Schedule 6.17(e) sets
forth a complete and accurate list of each current employment, termination,
retention and severance agreement, Contract and policy (whether written or
oral) with or for the benefit of, or otherwise related to, any employees
engaged in the Business. All such Contracts and policies are valid and
enforceable, and neither Seller nor Seller Subsidiary is in default in any
material respect thereunder. Except as separately set forth on
Schedule 6.17(e), none of the execution, delivery and performance of any
Transaction Document or the consummation of the Transaction will result in any
obligation to pay any employees engaged in the Business severance pay or
termination, retention or other benefits.

(f)    All
employees employed by Seller Subsidiary in the United Kingdom engaged primarily
in the Business of Seller Subsidiary immediately before the date of this
Agreement (“UK Employees”) are set forth in Schedule
6.17(f) (which Schedule 6.17(f) may be updated before the
Closing by Seller pursuant to Section 15.13(b)). No person is employed by
Seller Subsidiary other than the UK Employees. Schedule 6.17(f) sets forth
for each UK Employee: job title; date of commencement and date of continuous employment;
current compensation payable and all other benefits provided by Seller or
Seller Subsidiary or which Seller or Seller Subsidiary is bound to provide
(whether now or in the future); vacation accrued; eligibility to participate
under the Plans and all and any benefits being received under the Plans; and
leave of absence, stating the durations and reasons for any absence (statutory
or otherwise); receipt of sickness, disability or permanent health insurance
payments that are not otherwise covered under the Plans.

(g)   None of the
UK Employees have previously transferred to Seller or Seller Subsidiary
pursuant to the Transfer Regulations. Except as set forth in Schedule 6.17(g),
Seller and Seller Subsidiary have no obligation (other than to meet the
reasonable administration costs of the UK Pension Plan) to provide “relevant
benefits” (within the meaning of the Income and Corporation Taxes Act 1988,
section 612 (as amended)) to or in respect of any Person who is now or who has
been an officer or employee of the Business of Seller Subsidiary or spouse or
dependent of such officer or employee.

Section 6.18   Absence of Material Adverse Effect
and Certain Changes or Events.

(a)   Except as
set forth on Schedule 6.18, since September 30, 2005 until the date
of this Agreement, there has not been a Material Adverse Effect.

(b)   Without
limiting the generality of the foregoing, except as set forth on
Schedule 6.18, from and after September 30, 2005 until the date of
this Agreement, Seller and Seller Subsidiary have caused the Business to be
conducted in the ordinary course of business consistent with past practices,
and neither Seller nor Seller Subsidiary has (to the extent Related to the
Business):

(i)         suffered damages, destruction or casualty losses (whether or
not covered by insurance) in excess of $100,000 in the aggregate;

(ii)       made any single capital expenditure in
excess of $100,000, or a series of related capital expenditures in excess of
$375,000 in the aggregate;

(iii)      except for increases in compensation to
employees made in the ordinary course of business consistent with past
practice, or as agreed with Buyer in writing, or as required pursuant to any
existing Contract, Plan, program, policy, agreement or arrangement or as
required by applicable Law (A) made any material change in the rate of
compensation, commission, bonus or other direct or indirect remuneration
payable or to become payable to any of their respective employees or agents, or

 24
 

(B) agreed or
promised (orally or otherwise) to pay, conditionally or otherwise, any
additional material pension, profit sharing, incentive, deferred compensation,
stock purchase, stock option, stock appreciation, group insurance, vacation
pay, severance pay, retirement, bonus, extra compensation, or other employee
benefit plan, agreement or arrangement to any of such employees or agents;

(iv)       (A) entered into any employment or
consulting agreement (other than (x) any consulting agreement to which an
international sales representative is not a party and pursuant to which less
than $50,000 is potentially payable over the life of the agreement or (y) any
employment agreement entered into the in ordinary course of business consistent
with past practices in the United Kingdom) with or for the benefit of any Person
referred to in subparagraph (iii) above, or (B) paid any
pension, retirement allowance or other material employee benefit not required
by any Plan, Contract, agreement or arrangement to any Person referred to in
subparagraph (iii) above;

(v)        sold, assigned, leased or transferred any of its material
Assets, other than inventories of obsolete equipment in the ordinary course of
business consistent with past practices and licensing and other dispositions of
Intellectual Property in the ordinary course of business consistent with past
practices;

(vi)       amended or renegotiated in any material
respect or terminated (other than by completion thereof) any Material Contract
other than in the ordinary course of business consistent with past practices;

(vii)     made, incurred, assumed, created or
guaranteed any loan or made any advance (other than the making of employee
advances for travel and entertainment in the ordinary course of business
consistent with past practices) to or investment in any Person (other than in respect
of amounts paid for products or services);

(viii)    subjected any of its assets or properties to
any Lien or permitted any of its assets or properties to be subjected to any
Lien, other than Permitted Liens;

(ix)       made any material change in its accounting
methods, policies, practices or principles affecting the Assets or Assumed
Liabilities of the Business, whether or not required by GAAP;

(x)        waived or released any rights or claims of material value,
including rights or claims under any Material Contract, or waived or released
any material rights or material claims against any Affiliate or employee of
Seller or Seller Subsidiary;

(xi)       other than in the ordinary course of
business consistent with past practices, changed or modified any of the
Business’s credit, collection or payment policies, procedures or practices,
including acceleration of collections of receivables, failure to make or delay
in making collections of receivables (whether or not past due), acceleration of
payment of payables or other Liabilities or failure to pay or delay in payment
of payables or other Liabilities;

(xii)     engaged in any discount activity with
customers of the Business or other activity intended to accelerate to
pre-Closing periods sales that would otherwise in the ordinary course of
business consistent with past practices be reasonably expected to occur in
post-Closing periods;

(xiii)    acquired or agreed to acquire by merging or
consolidating with, or by purchasing a substantial portion of the capital stock
or assets of, or by any other manner, any business or any corporation,
partnership, joint venture, association or other business organization or
Person, or division, operating unit or product line thereof;

(xiv)     revalued any of the Assets other than
changes in reserves in the ordinary course of business consistent with past
practices, or as a result of depreciation and amortization, in each case in
accordance with GAAP;

 25
 

(xv)      purchased any real property or, other than
Leases set forth on Schedule 6.9(b), entered into any Lease;

(xvi)     settled or compromised any Action other
than the Actions set forth on Schedule 2.1(b)(ix); or

(xvii)   entered into any agreement or commitment
(other than the Transaction Documents) to take any of the types of action
described in subclauses (ii) through (xvi) of this Section 6.18(b).

Section 6.19   Product Warranty.   No
product manufactured, sold, leased or delivered or service rendered by the
Business is subject to any guarantee, warranty or other indemnity beyond those
set forth in the terms and conditions of sale contained in the Contracts set
forth on Schedule 6.10(a).

Section 6.20   Insurance.

(a)   Schedule 6.20(a) sets
forth a complete and accurate list of all insurance policies and surety bonds
which Seller or Seller Subsidiary maintains with respect to the Business
(including those maintained with respect to the employees engaged in the
Business and the Assets (“Insurance Policies”).
Seller has made available to Buyer true and complete copies of all Insurance
Policies.

(b)   The
Insurance Policies: (i) are in full force and effect; (ii) insure the
Business in reasonably sufficient amounts against all risks usually insured
against by Persons operating similar businesses or properties of similar size
and nature and (iii) are sufficient for compliance in all material
respects with all applicable requirements of Law and Contracts. Each of Seller
and Seller Subsidiary is current in all premiums or other payments due under
each Insurance Policy and has otherwise performed in all material respects all
of its respective obligations thereunder. Each of Seller and Seller Subsidiary
has given timely notice to the insurer under each Insurance Policy of all
claims with respect to the Business that may be insured thereby.

Section 6.21   No Brokers.   There is
no investment banker, broker, finder or other intermediary which has been
retained by or is authorized to act on behalf of Seller who is or might be
entitled to any fee, commission or payment in connection with the negotiation,
preparation, execution or delivery of this Agreement or the consummation of the
Transaction.

Section 6.22   Customers and Suppliers.   From
December 31, 2004 to the date hereof, except as disclosed on
Schedule 6.22, none of the ten (10) largest customers or ten (10) largest
suppliers of the Business, as measured by the dollar amount of purchases
therefrom or thereby (with respect to fiscal year ended December 31, 2004)
(i) has terminated its relationship with Seller or Seller Subsidiary (with
respect to the Business) or materially adversely changed the pricing or other
terms of a substantial portion of its business with such Seller or Seller
Subsidiary (with respect to the Business) or (ii) has notified in writing
Seller or Seller Subsidiary (with respect to the Business) that it intends to
terminate its relationship with Seller or Seller Subsidiary (with respect to
the Business) or materially adversely change the pricing or other terms of a
substantial portion of its business with such Seller or Seller Subsidiary or with
Buyer following the Effective Time (with respect to the Business).

Section 6.23     Bank Accounts in the
United Kingdom.   Schedule 6.23 sets
forth a complete and accurate list of: 
(a) all bank accounts, investment accounts, lock boxes and safe deposit
boxes of Seller and Seller Subsidiary that are located in the United Kingdom
and are related to or in respect of the Business, including the location and
account numbers of all such accounts, lock boxes and safe deposit boxes and (b)
the names of all Persons authorized to take action with respect to, or who have
access to, such accounts, safe deposit boxes and lock boxes. The terms of all
such accounts, lock boxes and safe deposit boxes have been made available to
Buyer.

 26

ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby represents and warrants to Seller as
follows:

Section 7.1   Organization.   Buyer
is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware.

Section 7.2   Authority.   Buyer has
all requisite corporate power and authority to execute and deliver each
Transaction Document delivered or to be delivered by Buyer and to perform all
of its obligations hereunder and thereunder. The execution, delivery and performance
by Buyer of each Transaction Document delivered or to be delivered by Buyer and
the consummation by Buyer of the Transaction have been duly authorized by all
necessary and proper action on the part of Buyer. This Agreement has been duly
executed and delivered by Buyer and, assuming due authorization, execution and
delivery by the other party hereto, constitutes the legal, valid and binding
obligation of Buyer, enforceable against Buyer in accordance with its terms,
except as such enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or affecting the
enforcement of creditors’ rights in general and by general principles of
equity. Each other Transaction Document to be delivered by Buyer will be duly
executed and delivered by Buyer and, when so executed and delivered, assuming
due authorization, execution and delivery by the other party thereto, will
constitute the legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms, except as such enforceability may
be limited by bankruptcy, insolvency, reorganization, moratorium or similar
laws relating to or affecting the enforcement of creditors’ rights in general
and by general principles of equity.

Section 7.3   No Breach.   Assuming
the receipt of the authorizations, approvals and consents referred to in Section 6.13
hereof and the approval of the stockholders of Seller by the Required Seller
Vote, none of the execution, delivery or performance by Buyer of any Transaction
Document or the consummation by Buyer of the Transaction does or will, with or
without the giving of notice or the lapse of time or both, conflict with, or
result in a breach or violation of or a default under, or give rise to a right
of amendment, termination, cancellation or acceleration of any right or
obligation or to a loss of a benefit under (a) the Certificate of
Incorporation or By-laws of Buyer, (b) any Contract of Buyer or (c) any
Law or Permit (subject to compliance with the HSR Act) or other requirement to
which Buyer or its properties or assets is subject, except, in the case of
items (b) and (c) above only, for those which would not have or
reasonably be expected to have, individually or in the aggregate, a material
adverse effect on the ability of Buyer to consummate the Transaction.

Section 7.4   Governmental Approvals.   Except
for the filings required under the HSR Act and as set forth on
Schedule 7.4, no material Consent or order of, with or to any Governmental
Entity is required to be obtained or made by or with respect to Buyer in
connection with the execution, delivery and performance by Buyer of any
Transaction Documents or the consummation by Buyer of the Transaction.

Section 7.5   No Brokers.   There is
no investment banker, broker, finder or other intermediary which has been
retained by or is authorized to act on behalf of Buyer or any of its Affiliates
who is or might be entitled to any fee, commission or payment in connection
with the negotiation, preparation, execution or delivery of this Agreement or
the consummation of the Transaction.

Section 7.6   Financial Resources.   Buyer
has, as of the date hereof, and at the Closing will have, sufficient funds,
including cash on hand together with funds available under bank or other credit
facilities currently in place, to consummate the transactions contemplated by
this Agreement and the Transaction Documents and to fulfill its obligations
hereunder and thereunder, including payment to Seller of the Purchase Price at
Closing and any adjustments to the Purchase Price following the Closing.

 27
 

Section 7.7   Litigation.   No
Actions or proceedings are pending or, to the knowledge of Buyer, threatened
against Buyer which seek to delay or prevent the consummation of, or which
would materially adversely affect Buyer’s ability to consummate, the
Transaction.

Section 7.8   Proxy
Statement.   None of the information concerning Buyer supplied
or to be supplied by Buyer for inclusion or incorporation by reference in, and
that is included or incorporated by reference with the prior written consent of
Buyer in, the Proxy Statement or any amendment or supplement thereto, will, at
the time provided, at the time of mailing to Seller’s stockholders or at the
time of the meeting of stockholders, contain any untrue statement of a material
fact, or omit to state any material fact required to be stated therein or
necessary in order to make statements therein, in light of the circumstances
under which they were made, not misleading.

ARTICLE VIII

COVENANTS

Section 8.1   Covenants of Seller.

(a)   Conduct of Business.

(i)    From the
date hereof through the Closing Date, other than with the prior written consent
of Buyer or as expressly contemplated by this Agreement, Seller will, and will
cause Seller Subsidiary to, conduct the Business only in the ordinary course
consistent with past practices.

(ii)   From the
date hereof through the Closing Date, other than with the prior written consent
of Buyer or as expressly contemplated by this Agreement, Seller will, and will
cause Seller Subsidiary to, use its commercially reasonable efforts to (A) preserve
its business organization related to the Business intact, (B) retain the
services of its present officers, employees and agents Related to the Business
and (C) maintain good business relationships with third parties having
business dealings with the Business.

(iii) From the
date hereof through the Closing Date, Seller will not, and will cause Seller
Subsidiary not to, without the prior written consent of Buyer, to the extent
Related to the Business:

(A)  make any
single capital expenditure in excess of $100,000, or a series of related
capital expenditures in excess of $375,000 in the aggregate;

(B)   (1) enter
into any employment or consulting agreement (other than (x) any consulting
agreement to which an international sales representative is not a party and
pursuant to which less than $50,000 is potentially payable over the life of the
agreement or (y) any employment agreement entered into in the ordinary
course of business consistent with past practices in the United Kingdom
pursuant to which Buyer will be liable for costs not exceeding $100,000 per
annum) with or for the benefit of any of their current or prospective employees
or agents, or (2) pay any pension, retirement allowance or other material
employee benefit not required by any Plan, Contract, agreement or arrangement
to any of such employees or agents;

(C)   sell,
assign, lease or transfer any of its material Assets, other than inventories of
obsolete equipment in the ordinary course of business consistent with past
practices and licensing and other dispositions of Intellectual Property in the
ordinary course of business consistent with past practices;

(D)  make, incur,
assume, create or guarantee any loan or make any advance (other than the making
of employee advances for travel and entertainment in the ordinary course of
business consistent with past practices) to or investment in any Person (other
than in respect of amounts paid for products or services);

(E)   subject any
of its assets or properties to any Lien or permit any of its assets or
properties to be subjected to any Lien, other than Permitted Liens;

 28
 

(F)   waive or
release any rights or claims of material value, including rights or claims
under any Material Contract, or waive or release any material rights or
material claims against any Affiliate or employee of Seller or Seller
Subsidiary;

(G)  other than
in the ordinary course of business consistent with past practices, change or
modify any of the Business’s credit, collection or payment policies, procedures
or practices, including acceleration of collections of receivables, failure to
make or delay in making collections of receivables (whether or not past due),
acceleration of payment of payables or other Liabilities or failure to pay or
delay in payment of payables or other Liabilities;

(H)  engage in
any discount activity with customers of the Business or other activity intended
to accelerate to pre-Closing periods sales that would otherwise in the ordinary
course of business consistent with past practices be reasonably expected to
occur in post-Closing periods;

(I)    acquire or
agree to acquire by merging or consolidating with, or by purchasing a
substantial portion of the capital stock or assets of, or by any other manner,
any business or any corporation, partnership, joint venture, association or
other business organization or Person, or division, operating unit or product
line thereof;

(J)    revalue
any of the Assets other than changes in reserves in the ordinary course of
business consistent with past practices, or as a result of depreciation and
amortization, in each case in accordance with GAAP;

(K)  purchase any
real property or, other than Leases set forth on Schedule 6.9(b), enter
into any Lease;

(L)   settle or
compromise any Action other than the Actions set forth on
Schedule 2.1(b)(ix); or

(M)  enter into
any agreement or commitment (other than the Transaction Documents) to take any
of the types of action described in subclauses (A) through (L) of
this Section 8.1(a)(iii).

(iv)  From the
date hereof through the Closing Date, Seller will not, and will cause Seller
Subsidiary not to, without the prior written consent of Buyer (which consent
shall not be unreasonably withheld), to the extent Related to the Business:

(A)  other than
in the ordinary course of business consistent with past practices, enter into
any Contract which would be a Material Contract if it were in existence on the
date hereof;

(B)   other than
in the ordinary course of business consistent with past practices, amend in any material respect
or terminate (other than by completion thereof) any existing Material Contract;

(C)   enter into
any Material Contract with a value in excess of $2,000,000;

(D)  amend in any
material respect or terminate (other than by completion thereof) any existing
Material Contract with a value in excess of $2,000,000; or

(E)   except as
set forth on Schedule 8.1(a)(iv)(E), enter into any customer Contract for the
sale of laser projectors for use in connection with the Business;

provided, however, that if (x) Seller
has requested Buyer’s consent with respect to such action, and (y) Buyer
has not responded to Seller’s request within three (3) business days of
such request, then Seller shall have the right to undertake such action.

(v)   From the
date hereof through the Closing Date, Seller will not, and will cause Seller
Subsidiary not to, without the prior written consent of Buyer (which consent
shall not be unreasonably withheld), to the extent Related to the Business,
except for increases in compensation to Business Employees and UK Employees
made in the ordinary course of business consistent with past practice, or as
required pursuant 

 29
 

to any existing Contract,
Plan, program, policy, agreement or arrangement or as required by applicable
Law (A) make any change in the rate of compensation, commission, bonus or
other direct or indirect remuneration payable or to become payable to any of
their respective Business Employees, UK Employees or agents, or (B) agree
or promise (orally or otherwise) to pay, conditionally or otherwise, any
additional pension, profit sharing, incentive, deferred compensation, stock
purchase, stock option, stock appreciation, group insurance, vacation pay,
severance pay, retirement, bonus, extra compensation, or other employee benefit
plan, agreement or arrangement to any of such Business Employees, UK Employees
or agents; provided, however,
that if (x) Seller has requested Buyer’s consent with respect to such
action, and (y) Buyer has not responded to Seller’s request within three (3) business
days of such request, then Seller shall have the right to undertake such
action.

(vi)  From the
date hereof through the Closing Date, Seller will provide Buyer with prompt
written notice if either Seller or Seller Subsidiary, to the extent Related to
the Business:

(A)  in the
ordinary course of business consistent with past practices, enters into any
Contract which would be a Material Contract if it were in existence on the date
hereof;

(B)   in the
ordinary course of business consistent with past practices, amends in any material respect
or terminates (other than by completion thereof) any existing Material
Contract;

(C)   suffers
damages, destruction or casualty losses (whether or not covered by insurance)
in excess of $100,000 in the aggregate; or

(D)  makes any
material change in its accounting methods, policies, practices or principles
affecting the Assets or Assumed Liabilities of the Business, whether or not
required by GAAP.

(b)   Books and Records.   Seller will use commercially
reasonable efforts to not, and to cause Seller Subsidiary not to, dispose of or
destroy any business records or files related to the Business which do not
constitute Assets for seven years after the Closing Date. During such
seven-year period, prior to disposing of or destroying any such business
records or files in accordance with the preceding sentence, Seller will provide
not less than 30 days’ prior written notice to Buyer, specifying the
business records and files proposed to be disposed of or destroyed. If, prior
to the scheduled date for such disposal or destruction, Buyer requests in
writing that any of the business records or files proposed to be disposed of or
destroyed be delivered to Buyer, Seller will arrange promptly for the delivery
of the requested business records and files to a location specified by, and at
the expense of, Buyer.

(c)   Receipt of Assets.

(i)    All
assets, amounts and proceeds which are received (whether received in lock
boxes, via wire transfer, by check or otherwise) or possessed by Seller or
Seller Subsidiary after the Effective Time in respect of the Assets or the
Assumed Liabilities will be received or possessed and held in trust for the
benefit of Buyer and will be forthwith paid over to Buyer in the form so
received or possessed (with any necessary endorsement). Without limiting the
generality of the foregoing, Seller will, and will cause Seller Subsidiary to,
wire transfer to an account designated by Buyer all payments in respect of
accounts receivable which constitute Assets received by Seller or Seller
Subsidiary within two business days after receipt of any individual payment in
excess of $100,000 and within one week after receipt of any other payment. Any
such payment not so transferred to Buyer within such time frames shall bear
interest (payable by Seller to Buyer) thereafter until the date such payment is
actually transferred (calculated based on actual days elapsed in a 365-day
year) at a rate of 4% per annum. Effective as of the Effective Time, Seller, on
behalf of itself and Seller Subsidiary, hereby grants to Buyer, subject to
Buyer’s obligations under Section 8.1(c)(ii), the right and authority to
endorse the name of Seller or Seller Subsidiary on any check or any other
evidences of indebtedness or negotiable instruments received by Buyer on
account of any Assets transferred to Buyer hereunder.

 30
 

(ii)   All
assets, amounts and proceeds which are received (whether received in lock
boxes, via wire transfer, by check or otherwise) or possessed by Buyer after
the Effective Time in respect of the Retained Assets or the Retained
Liabilities will be received or possessed and held in trust for the benefit of
Seller and will be forthwith paid over to Seller, in the form so received or
possessed (with any necessary endorsement). Without limiting the generality of
the foregoing, Buyer will wire transfer to an account designated by Seller all
payments in respect of accounts receivable which constitute Retained Assets
received by Buyer within two business days after receipt of any individual
payment in excess of $100,000 and within one week after receipt of any other
payment. Any such payment not so transferred to Seller within such time frames
shall bear interest (payable by Buyer to Seller) thereafter until the date such
payment is actually transferred (calculated based on actual days elapsed in a
365-day year) at a rate of 4% per annum.

(d)   Acquisition Proposals.

(i)    Without
limiting Seller’s other obligations under this Agreement (including under Section 8.1(a) hereof),
Seller agrees that it will not, and will cause Seller Subsidiary and each of
their respective officers, directors, employees, agents and representatives
(including any investment banker, attorney or accountant retained by it) not
to, directly or indirectly, (A) initiate, solicit, knowingly encourage or
knowingly facilitate (including by way of furnishing information) any inquiries
or the making of any proposal or offer with respect to any Acquisition
Proposal, (B) provide any confidential information to any Person relating
to an Acquisition Proposal, or engage in any discussions or negotiations
concerning an Acquisition Proposal, (C) approve or recommend, or propose
publicly to approve or recommend, any Acquisition Proposal or (D) approve
or recommend, or propose to approve or recommend, or execute or enter into, any
letter of intent, agreement in principle, merger agreement, acquisition
agreement, option agreement or other similar agreement or propose publicly or
agree to do any of the foregoing related to any Acquisition Proposal.

(ii)   For purposes
of this Agreement, “Acquisition Proposal”
means any inquiry, proposal or offer from any Person with respect to (A) any
purchase that constitutes 10% or more of the Assets or the Business of Seller
and Seller Subsidiary, taken as a whole, (B) a merger, reorganization,
share exchange, consolidation, business combination, recapitalization,
liquidation, dissolution or similar transaction involving Seller or any of its
Significant Subsidiaries (as defined in Rule 1-02 of
Regulation S-X of the SEC), or (C) any purchase or sale of, or
tender or exchange offer for, the equity securities of Seller that, if
consummated, would result in any Person, or the stockholders of such Person
(other than existing stockholders beneficially owning securities in excess of 10%
of the total voting power of Seller, each of which existing stockholders may
acquire beneficial ownership of up to an additional 5% of the total voting
power of Seller), beneficially owning securities representing 10% or more
of the total voting power of Seller (or of the surviving parent entity in such
transaction) or any of its Significant Subsidiaries, including any single or
multi-step transaction or series of related transactions (other than a proposal
or offer made by Buyer or an Affiliate thereof); provided,
however, the foregoing shall not
prohibit Seller or Seller Subsidiary from negotiating, executing or
consummating any proposed acquisition of a company in the digital theater
business or from issuing shares of common stock of Seller up to an aggregate of
20% of the total voting power of Seller in connection with each such
acquisition and up to an aggregate of 35% of the total voting power of Seller
in connection with all such acquisitions.

(iii) Notwithstanding
anything in this Agreement to the contrary, Seller or its Board of Directors
shall be permitted to (A) to the extent applicable, comply with Rule 14d-9
and Rule 14e-2 promulgated under the Exchange Act with regard to an
Acquisition Proposal, (B) effect a Change in Seller Recommendation, or (C) engage
in any discussions or negotiations with, or provide any information to, any
Person in response to an unsolicited bona fide written Acquisition Proposal by
any such Person, if and only to the extent that, in any such case referred to
in clause (B) or (C), (1) the Seller Stockholders Meeting shall
not have occurred, (2) (x) in the case of clause (B) above,
it has received an unsolicited bona fide written 

 31
 

Acquisition Proposal (for
purposes of this clause (2), references to 10% in the definition of “Acquisition
Proposal” shall be deemed to be references to 51%) from a third party and its
Board of Directors concludes in good faith that such Acquisition Proposal
constitutes a Superior Proposal and (y) in the case of clause (C) above,
its Board of Directors concludes in good faith that there is a reasonable
likelihood that such Acquisition Proposal would result in a Superior Proposal, (3) its
Board of Directors, after consultation with outside counsel, determines in good
faith that the failure to take such action would be reasonably likely to result
in a breach of its fiduciary duties to stockholders under applicable Laws, (4) prior
to providing any non-public information to any Person in connection with an
Acquisition Proposal by any such Person, its Board of Directors receives from
such Person an executed confidentiality agreement having provisions that are at
least as restrictive to such Person as the comparable provisions contained in
the Confidentiality Agreement and (5) prior to providing any information
to any Person or entering into discussions or negotiations with any Person, it
notifies Buyer promptly of such inquiries, proposals or offers received by, any
such information requested from, or any such discussions or negotiations sought
to be initiated or continued with, it or any of its representatives indicating,
in connection with such notice, and the material terms and conditions of any
inquiries, proposals or offers. Seller agrees that it will promptly keep Buyer
informed of the status and terms of any such inquiries, proposals or offers and
the status and terms of any such discussions or negotiations. Seller agrees
that it will, and will cause its officers, directors and representatives to,
immediately cease and cause to be terminated any activities, discussions or
negotiations existing as of the date of this Agreement with any Persons
conducted heretofore with respect to any Acquisition Proposal. Seller agrees
that it will use commercially reasonable efforts to promptly inform its
directors, officers, key employees, agents and representatives of the
obligations undertaken in this Section 8.1(d). Nothing in this Section 8.1(d) shall
(x) permit Seller to terminate this Agreement (except as specifically
provided in Article XI) or (y) affect any other obligation of Seller
under this Agreement. Seller shall not submit to the vote of its stockholders
any Acquisition Proposal other than the Transaction.

(iv)  For
purposes of this Agreement, “Superior Proposal”
means a bona fide written proposal made by a Person other than Buyer which is (A) for
(x) a purchase of all or substantially all of the Assets and the
assumption of all or substantially all the Assumed Liabilities, or (y) a
merger, reorganization, consolidation, share exchange, business combination,
recapitalization or similar transaction involving Seller as a result of which
the other Person thereto or its stockholders will own 51% or more of the
combined voting power of the entity surviving or resulting from such
transaction (or the ultimate parent entity thereof), and (B) is not
subject to any financing contingency or due diligence condition and is
otherwise on terms which the Board of Directors of such party in good faith
concludes (following receipt of the advice of its financial advisors and outside
counsel), taking into account, among other things, all legal, financial,
regulatory and other aspects of the proposal and the Person making the
proposal, (x) would, if consummated, result in a transaction that is more
favorable to its stockholders (in their capacities as stockholders), from a
financial point of view, than the Transaction and (y) is reasonably
capable of being completed.

(v)   Seller will
promptly request all Persons who have heretofore executed a confidentiality
agreement in connection with such Persons’ consideration of acquiring the
Business (or any portion thereof) or any of the Assets to return or destroy all
confidential information heretofore furnished to such Persons by or on behalf
of Seller or Seller Subsidiary.

(e)   Software Licenses.   Seller will, at its sole cost and
expense, cause to be transferred to Buyer at the Closing all licensee rights of
Seller or Seller Subsidiary, as licensee, under the software license agreements
included in the Assets. If any such license is not assignable, Seller will, at
its sole cost and expense, procure for Buyer a new license that is similar in
all material respects to the nonassignable license under a new software license
agreement as of the Closing in replacement of such nonassignable license. In
the event Seller is unable to procure such a substitute license as of the
Closing from a vendor because of 

 32
 

restrictions included in
an existing license agreement between the vendor and Buyer, Seller shall be
solely responsible for any costs and expenses incurred in connection with the
modification of such existing license agreement of Buyer effective as of the
Closing to provide for the usage of such license by the Business under Buyer’s
existing license agreement; provided, however, that in no event will Seller be obligated to pay
amounts in respect of any such modification in excess of the amounts that would
otherwise be payable to procure a new license that is similar in all material
respects to the applicable nonassignable license in replacement of such
nonassignable license.

(f)    Tax Identification Number.   Prior to the Closing Date,
Seller will, and will cause each Seller Subsidiary to, furnish to Buyer an
affidavit stating, under penalties of perjury, either (i) such Person’s
United States taxpayer identification number and confirming that such Person is
not a foreign person pursuant to Section 1445(b)(2) of the Code, or (ii) the
respective Assets sold by them hereunder do not constitute a “United States
Real Property Interest” within the meaning of Section 897 of the Code.

(g)   Preparation of Proxy Statement.   As promptly as
reasonably practicable following the date hereof, Seller shall prepare and file
with the SEC proxy materials relating to obtaining the Required Seller
Vote (such proxy materials, and any amendments or supplements thereto, the “Proxy Statement”). Seller shall, promptly after receipt
thereof, but in no event later than two business days after receipt thereof,
provide Buyer copies of any written comments and advise Buyer of any oral
comments with respect to the Proxy Statement received from the SEC. Seller
shall cooperate and provide Buyer with a reasonable opportunity to review and
comment on the Proxy Statement and any amendment or supplement thereto prior to
filing such with the SEC, and will provide Buyer with a copy of all such
filings made with the SEC. Seller will cause the Proxy Statement to be
mailed to Seller’s stockholders as promptly as practicable after it has been
cleared by the SEC. The Proxy Statement shall conform in all material respects
to all applicable Laws. Seller will advise Buyer, promptly after it receives
notice thereof, of the time when the Proxy Statement is cleared by the SEC or
any request by the SEC for amendment of the Proxy Statement. If at any time
prior to the Effective Time any information relating to Seller, Buyer or any of
their respective Affiliates, officers or directors, or the Transaction is
discovered by Seller or Buyer which should be set forth in an amendment or
supplement to the Proxy Statement so that any of such documents would not
include any misstatement of a material fact or omit to state any material fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, the party which discovers such
information shall promptly notify the other party hereto and, to the extent
required by applicable Laws, an appropriate amendment or supplement describing
such information shall be promptly filed with the SEC and disseminated to the
stockholders of Seller.

(h)   Stockholders Meeting.   Seller shall use commercially
reasonable efforts to call, give notice of, convene and hold a meeting of its
stockholders as promptly as practicable in accordance with applicable Laws (the
“Seller Stockholders Meeting”) for the
purpose of obtaining the Required Seller Vote and shall use commercially
reasonable efforts to solicit the Required Seller Vote; and the Board of
Directors of Seller shall recommend approval of the Transaction by the
stockholders of Seller as required by the Revised Business Corporation Act of
the State of Utah (the “Seller Recommendation”),
and shall not (i) withdraw (or propose to withdraw) the Seller
Recommendation, (ii) modify or qualify (or propose to modify or qualify)
in any manner adverse to Buyer the Seller Recommendation or (iii) take any
action or make any statement in connection with the Seller Stockholders Meeting
inconsistent with such recommendation (any of the actions described in
clauses (i), (ii) or (iii), a “Change in Seller
Recommendation”); provided, however, that the Board of Directors of Seller may make a
Change in Seller Recommendation to the extent permitted under Section 8.1(d).

 33

(i)    Confidential Information.

(i)    From and
after the Closing, Seller will, and will cause each of its Representatives to, (A) maintain
in strict confidence any and all information concerning the Business and (B) refrain
from using any and all such information for its own benefit or to compete with
or otherwise to the detriment of Buyer or its Affiliates or the Business. From
and after the Closing, Buyer will, and will cause each of its Representatives
to, (A) maintain in strict confidence any and all information concerning
Seller’s remaining business, and (B) refrain from using any and all such
information for its own benefit or to compete with or otherwise to the
detriment of Seller or its Affiliates or its remaining business. It is
understood that neither party shall have any liability hereunder with respect
to information that (x) is in or, through no fault of either party or any
of their Representatives, comes into the public domain or (y) which either
party is legally required to disclose.

(ii)   In the event
that either party or any of its Representatives are required by Law to disclose
any such information, such party will promptly notify the other party in
writing so that they may seek a protective order and/or other motion to prevent
or limit the production or disclosure of such information. If such motion has
been denied, then the Person required to disclose such information may disclose
only such portion of such information which (A) upon the advice of legal
counsel is required by Law to be disclosed or (B) the other party consents
in writing to having disclosed. Both parties will not, and will not permit any
of its Affiliates or its or their Representatives to, oppose any motion for
confidentiality. Both parties and their respective Representatives will
continue to be bound by their obligations pursuant to this Section 8.1(i) for
any information that is not required to be disclosed, or that has been afforded
protective treatment, pursuant to such motion. Upon Closing, the
Confidentiality Agreement will be terminated.

(j)    Satisfaction and Discharge of the Debentures. Prior to the
Effective Time, Seller will use commercially reasonable efforts to call the
Debentures for satisfaction and discharge the Debentures in accordance with the
terms and conditions of the Indenture.

(k)   Power to Acquired Facilities. Prior to the Effective Time,
Seller will, at its sole cost and expense, provide for the connection to the
local power grid of the Real Property located at 600 Komas Drive in Salt Lake
City, Utah, which connection shall be sufficient to operate such Real Property
following the Effective Time as it is being operated as of the date hereof and
as it will be operated through the Effective Time.

Section 8.2   Advice of Changes.   Each
of Seller, on the one hand and Buyer, on the other hand, will give prompt
notice to the other upon becoming aware of (i) the occurrence, or failure
to occur, of any event which would be likely to cause any representation or
warranty of such party contained in this Agreement to be untrue or inaccurate
in any material respect and (ii) any failure on its part to comply with or
satisfy in any material respect any covenant, condition or agreement to be
complied with or satisfied by it under this Agreement on or prior to the
Closing Date. The notifying party will use its commercially reasonable efforts
to prevent or promptly remedy any matter which is or would be the subject of
any such notice. No notice pursuant to this Section 8.2 will affect any
representations or warranties, covenants, agreements, obligations or conditions
set forth herein or limit or otherwise affect any available remedies.

Section 8.3   HSR Act Compliance; Foreign
Governmental Approvals.   Each of Buyer and Seller will as
promptly as practicable, make all necessary filings or submissions as are
required under the HSR Act and to obtain all Foreign Governmental Approvals. For
the purposes of this Agreement, the term “Foreign Governmental
Approval” shall mean any Consent or order of, with or to any foreign
Governmental Entity set forth on Schedule 6.13 or Schedule 7.4. Each
of Buyer and Seller will promptly furnish to the other such necessary information
and reasonable assistance as the other may request in connection with its
preparation of any filing or submission which is necessary under the HSR Act or
to obtain any necessary Foreign Governmental Approval. Each of Seller and Buyer
will promptly provide the other with copies of all written communications (and
memoranda setting forth the substance of all oral communications) between each
of them or their Representatives, on the one hand, and any Governmental Entity,
on the 

 34
 

other hand, with respect
to this Agreement or the transactions contemplated hereby. Without limiting the
generality of the foregoing, each of Buyer and Seller will promptly notify the
other of the receipt and content of any inquiries or requests for additional
information made by any Governmental Entity in connection therewith and will (i) promptly
comply with any such inquiry or request, (ii) promptly provide the other
with a description of the information provided to any Governmental Entity with
respect to any such inquiry or request and (iii) keep the other apprised
of the status of any such inquiry or request.

Section 8.4   Public Announcements.   No
press release or announcement concerning the Transaction will be issued by
either party without the prior consent of the other party, except as such
release or announcement may be required by law, rule or regulation
(including the rules and regulations of any stock exchange or the Nasdaq
National Market), in which case the party required to make the release or
announcement will allow the other party, to the extent reasonably practicable,
reasonable time to comment on such release or announcement in advance of such
issuance.

Section 8.5   Access to Information.

(a)   From the
date hereof through the Effective Time, Seller will provide, and will cause
Seller Subsidiary to provide, to Buyer and its Representatives, reasonable
access during normal business hours to the properties, books, records,
employees and Representatives of Seller and Seller Subsidiary related to the
Business (other than information which is legally privileged, subject to
confidentiality obligations to third parties or the provision of which is
prohibited by law) to make or cause to be made such investigation of the
Business, the Assets and the Assumed Liabilities as Buyer reasonably deems
necessary or advisable, provided that any such investigation shall not
interfere unnecessarily with or adversely affect normal operations of the
Business. From the date hereof through the Effective Time, Seller will furnish,
and will cause Seller Subsidiary to furnish, to Buyer and its Representatives
such financial and operating data and other information with respect to the
Business, the Assets and the Assumed Liabilities (including access to employees
and customers of the Business) as Buyer shall from time to time reasonably
request (provided that such information is otherwise available or readily
accessible). The Confidentiality Agreement will apply with respect to the
information provided pursuant to this Section 8.5(a).

(b)   From and
after the Effective Time, Buyer will make or cause to be made available to
Seller and its Representatives all business records and files Related to the
Business or constituting Assets and Assumed Liabilities (other than information
which is legally privileged, subject to confidentiality obligations to third
parties or the provision of which is prohibited by law) during regular business
hours as may be reasonably necessary for (i) preparing tax returns and
financial statements and responding to tax audits covering operations and
transactions at or prior to the Effective Time, (ii) investigating,
settling, preparing for the defense or prosecution of, defending or prosecuting
any Action, (iii) preparing reports to stockholders and Government
Entities or (iv) such other purposes for which access to such documents is
reasonably necessary; provided, however, that access to such business records and files will
not unnecessarily interfere with or adversely affect the normal operations of
Buyer and its subsidiaries and Affiliates; provided, further, in connection with clause (ii) above, Buyer
shall provide reasonable assistance, at Seller’s sole cost and expense, in the defense
of claims for personal or bodily injury or injury to property caused by
products of the Business delivered or sold on or prior to the Closing Date.

(c)   From and
after the Effective Time, Seller will make or cause to be made available to
Buyer and its Representatives all business records and files of Seller and
Seller Subsidiary related to the Business which do not constitute Assets (other
than information which is legally privileged, subject to confidentiality
obligations to third parties or the provision of which is prohibited by law)
during regular business hours for the same purposes, to the extent applicable,
as set forth in Section 8.5(b); provided, however, that access to such business records and files will
not unnecessarily interfere with or adversely affect the normal operations of
Seller.

 35
 

Section 8.6   Commercially Reasonable Efforts; Further Assurances.

(a)   Each of
Seller and Buyer will use its commercially reasonable efforts to cause to be
fulfilled the conditions to the respective obligations of the other party set
forth in Article X.

(b)   From time
to time, as and when requested by either party to this Agreement, the other
party will execute and deliver, or cause to be executed and delivered, all such
documents and instruments and will take, or cause to be taken, all such
reasonable actions, as such other party may reasonably deem necessary or
desirable to consummate the Transaction (including executing and delivering, or
causing to be executed and delivered, such documents and instruments with
respect to the purchase of the U.K. Business and the Assets located in the
United Kingdom and the assumption of the Assumed Liabilities in respect of the
U.K. Business and the Assets located in the United Kingdom from Seller
Subsidiary by the relevant United Kingdom incorporated Affiliate of Buyer).

(c)   Anything
contained in this Agreement to the contrary notwithstanding, none of the
parties to this Agreement or their Affiliates will be required to commence
litigation or divest or hold separate any business or assets or restrict its
rights or ability to enter into any business (other than pursuant to Article XIV)
in connection with the consummation of the Transaction.

Section 8.7   Non-Solicitation of Employees.

(a)   For a
period of two years from and after the Closing Date, without the prior written
consent of Buyer, Seller will not, and will cause Seller Subsidiary not to,
solicit, hire or retain as an employee, independent contractor or consultant
any UK Employee or any employee to whom Buyer is required to offer employment
pursuant to Section 9.1(a) and will not, and will cause Seller
Subsidiary not to, during such period, induce or attempt to induce any such
employee to terminate his or her employment with Buyer by resignation,
retirement or otherwise; provided, however, that nothing in this Section 8.7(a) shall
(i) preclude Seller or Seller Subsidiary from soliciting for employment or
hiring any such employee (A) after 180 days after such employee’s
employment with Buyer terminates (provided such employee ceased to be employed
by Buyer without inducement by Seller or Seller Subsidiary) or (B) after
such employee’s employment with Buyer is terminated by Buyer without cause, or (ii) prohibit
any general solicitation by Seller or Seller Subsidiary.

(b)   For a period
of two years from and after the Closing Date, without the prior written consent
of Seller, Buyer will not, and will cause each of its Affiliates not to,
solicit, hire or retain as an employee, independent contractor or consultant
any employee of Seller immediately after the Effective Time and will not, and
will cause each of its Affiliates not to, during such period, induce or attempt
to induce any such employee to terminate his or her employment with Seller by
resignation, retirement or otherwise; provided, however, that nothing in this Section 8.7(b) shall
(i) preclude Buyer or any Affiliate thereof from soliciting for employment
or hiring any such employee (A) after 180 days after such employee’s
employment with Seller terminates (provided such employee ceased to be employed
by Seller without inducement by Buyer or any Affiliate thereof) or (B) after
such employee’s employment with Seller is terminated by Seller without cause,
or (ii) prohibit any general solicitation by Buyer or any Affiliate thereof
offering employment.

Section 8.8   Use of Seller’s and Seller Subsidiary’s Trademarks, Trade Names and
Corporate Symbols.

(a)   From and
after the Closing Date, except as permitted in this Section 8.8, Buyer
will not have any rights to use the name, trademark or trade name “Evans &
Sutherland” or any derivatives thereof, or any corporate symbol or logo related
thereto. Buyer acknowledges that Buyer and its Affiliates shall have no
statutory or common law rights (trade name, trademark, service mark or otherwise)
in the “Evans & Sutherland” name or marks, or any derivatives thereof.
Buyer agrees never to, and shall cause its Affiliates never to, challenge
Seller’s ownership of, or rights in, the “Evans & Sutherland” name or
marks, or any derivatives thereof.

 36
 

(b)   Buyer may
utilize, solely in connection with the Business, and Seller hereby grants to
Buyer a world-wide, irrevocable, nonexclusive, fully-paid, royalty-free license
to utilize the name, trademark or trade name “Evans & Sutherland”,
derivatives thereof or any corporate symbol or logo related thereto or any
thereof for phase-out purposes in connection with stationery, supplies, labels,
catalogs, vehicles, products, inventory, work-in-process and displays until the
first anniversary of the Closing Date in a manner consistent with Seller’s
quality standards in effect immediately prior to the Closing.

Section 8.9   Insurance.

(a)   Rights in Insurance Policies. Buyer will have the right to (i) assert
claims (and Seller will use and cause Seller Subsidiary to use commercially
reasonable efforts to assist Buyer in asserting claims) with respect to the
Business under insurance policies of Seller and Seller Subsidiary which are “occurrence
basis” policies (“Occurrence Basis Policies”)
arising out of insured incidents occurring from the date coverage thereunder
first commenced until the Effective Time to the extent that the terms and
conditions of any such Occurrence Basis Policies so allow and (ii) continue
to prosecute claims with respect to the Business asserted with the insurance
carrier prior to the Closing (and Seller will use and cause Seller Subsidiary
to use commercially reasonable efforts to assist Buyer in connection therewith)
under insurance policies of Seller and Seller Subsidiary which are on a “claims
made” basis (“Claims Made Policies”) arising
out of insured incidents occurring from the date coverage thereunder first
commenced until the Effective Time to the extent that the terms and conditions
of any such Claims Made Policies so allow, provided that Buyer shall reimburse
Seller and Seller Subsidiary for all of their reasonable out-of-pocket costs
and expenses in connection with the foregoing. All recoveries in respect of
such claims shall be for the account of Buyer to the extent that Buyer is
responsible for such claims (either as Retained Liabilities or pursuant to Section 13.2).

(b)   Seller Actions. Seller will not, and will cause Seller
Subsidiary and Seller Subsidiary not to, amend, commute, terminate, buy-out,
extinguish liability under or otherwise modify any Occurrence Basis Policies or
Claims Made Policies under which Buyer has rights to assert claims pursuant to Section 8.9(a) in
a manner that would adversely affect any such rights of Buyer. In the event
Buyer consents to any such action, Seller will pay to Buyer its equitable share
(based on the amount of premiums paid by or allocated to the Business in
respect of the applicable policy) of any proceeds received by Seller or Seller
Subsidiary as a result of such action.

Section 8.10   Closing Date Agreements.

(a)   At the
Closing, Buyer and Seller will enter into the Ancillary Agreements.

(b)   If
applicable, pursuant to Rev. Proc. 2004-53, 2004-34 I.R.B. 320,
Buyer and Seller (or Seller Subsidiary) shall report on a predecessor/successor
basis in accordance with the “Standard Procedure” provided in Section 4 of
such Revenue Procedure.

Section 8.11   Cash Management.

(a)   Notwithstanding
anything to the contrary contained in this Agreement, all bank, investment or
similar accounts and lock boxes set forth on Schedule 6.23, but not any
cash held prior to the Effective Time in such accounts and lock boxes (the “U.K. Bank Accounts and Lockboxes”) will constitute Assets
and all other bank accounts and lockboxes of Seller will constitute Retained Assets.

(b)   From and
after the Effective Time, Seller will fund, without any right of reimbursement,
all amounts in respect of checks and debit electronic fund transfers that are
outstanding at the Effective Time and presented for payment at or after the Effective
Time in bank, investment or similar accounts of Seller or Seller Subsidiary
(other than accounts included in the U.K. Bank Accounts and Lockboxes).

(c)   From and
after the Effective Time, subject to the following sentence, Buyer will fund
all amounts in respect of checks and debit electronic fund transfers that are
outstanding at the Effective Time and 

 37
 

presented for payment at
or after Effective Time in the accounts included in the U.K. Bank Accounts and
Lockboxes. Within one week after Buyer’s request accompanied by proof of
funding, Seller will reimburse Buyer (by wire transfer to Buyer’s bank account
notified by Buyer to Seller) for all such amounts funded by Buyer in respect of
checks or debit electronic funds transfers that are outstanding at the Effective
Time and presented for payment at or after Effective Time in such accounts
included in the U.K. Bank Accounts and Lockboxes.

Section 8.12   Joint Venture Guaranties.   Buyer
will, at the Closing, execute guaranties in substitution of the Joint Venture
Guaranties on terms no less favorable to Buyer than the Joint Venture
Guaranties and in form and substance reasonably acceptable to Buyer. Buyer will
use commercially reasonable efforts to effect, effective as of the Effective
Time, the release of Seller from the Joint Venture Guaranties (it being
understood that such cooperation will not require Buyer or any of its
Affiliates to pay any consideration or, except as provided in the immediately
preceding sentence, offer or grant any financial accommodation or other benefit
or release any claim or right).

Section 8.13   International Sales Representation
Agreements.   Buyer will use commercially reasonable efforts to
enter into new contingent sales representation agreements, effective as of the
Closing and containing Buyer’s standard terms and conditions for such agreements,
with the international sales representatives of Seller set forth on
Schedule 8.13 (other than any such international sales representative who
is unable to satisfy Buyer’s standard screening process for international sales
representatives after beginning such screening process for such international
sales representative). Any such contingent sales representation agreement
entered into by Buyer with an international sales representative will provide
that Buyer shall have the right to terminate such contingent sales
representation agreement, with no liability on the part of Buyer whatsoever
(other than Buyer’s obligations under Section 13.2(d)), in the event such
international sales representative is unable to satisfy such screening process
after the Closing. Buyer will use commercially reasonable efforts to complete
as soon as reasonably practicable its screening process for all such
international sales representatives.

Section 8.14   AFRL.   From and after
the Closing, Seller will provide Buyer with periodic status reviews in
connection with the AFRL Contract, including reasonable advance notice of any
development coordination, marketing or related meeting with AFRL with respect
to the AFRL Contract. Seller shall use commercially reasonable efforts to
provide Buyer with the right to have a representative of Buyer be present at,
and participate in, any such meeting with AFRL. Seller and Buyer understand and
agree that Buyer shall have all rights to any future production Contracts with
AFRL arising out of or relating to the AFRL Contract.

Section 8.15   Title Insurance.   On
the Closing Date, Buyer shall purchase title insurance on the Owned Real
Property.

Section 8.16   Letters of Credit.   Buyer
will cause the release to Seller at the Closing of any cash collateral securing
Seller’s reimbursement obligation in respect of the letters of credit set forth
in Schedule 8.16 (which Schedule 8.16 may be updated by Seller prior
to the Closing to reflect any deletions and additional similar letters of
credit provided by Seller in compliance with this Agreement). Such efforts
shall include, if necessary in light of Buyer’s credit rating, either (a) arranging
for the issuance of replacement letters of credit in an amount not to exceed
the amount of each such letter of credit or (b) Seller assigning and Buyer
assuming Seller’s rights and obligations with respect to such letters of credit
arrangement.

Section 8.17   Agreement
to Support Products.   Seller shall use its best efforts,
subject to the terms set forth in Schedule 8.17, to negotiate as soon as
reasonably practicable an agreement with the third party identified on
Schedule 8.17 that conforms in all material respects to the terms set
forth in Schedule 8.17 and is otherwise mutually satisfactory to Buyer,
Seller and such third party; provided that
Buyer shall reasonably cooperate with Seller’s efforts under this Section 8.17.

 38
 

ARTICLE IX

EMPLOYMENT MATTERS

Section 9.1   Employment.

(a)   Set forth
on Schedule 9.1(a)(i) is a list of all employees of Seller and Seller
Subsidiary engaged primarily in the Business (including those who are actively
employed or on leave or short-term or long-term disability or other permitted
absence from employment, but excluding UK Employees and those who are on
layoff) (such employees listed on Schedule 9.1(a)(i), the “Business Employees”), setting forth for each Business
Employee: job title; current compensation; vacation accrued; service credited
for purposes of vesting and eligibility to participate under the Plans; and
leave of absence, layoff or long-term or short-term disability status, to the
extent applicable (which Schedule 9.1(a)(i) shall be deemed to be
amended to the extent the employment of any Business Employee terminates prior
to the Effective Time and which may be amended upon mutual agreement of Buyer
and Seller from time to time after the date hereof to reflect changes after the
date hereof and prior to the Effective Time). Buyer will offer employment in
accordance with Buyer’s standard hiring procedures and policies set forth on
Schedule 9.1(a)(ii), effective as of the Effective Time, to each Business
Employee (other than employees on long-term disability who shall remain employees
of Seller or Seller Subsidiary, subject to the last sentence of this Section 9.1(a) (“Retained Employees”)), and each Business Employee who
accepts Buyer’s offer of employment shall be a “Continued
Employee,” and Buyer shall provide, effective as of the Effective
Time, to each Continued Employee compensation and benefits substantially
comparable in the aggregate in all material respects to the employee
compensation and benefits provided by Buyer to its similarly situated employees
immediately prior to the Effective Time; provided, however, that nothing contained in this Section 9.1 is
intended to confer upon any Continued Employee any right to continued
employment by Buyer after the Effective Time or to prohibit Buyer from
amending, modifying or terminating after the Effective Time any employee
benefit plan or program for or for the benefit of Continued Employees in
accordance with the terms thereof and applicable Laws. Buyer will offer
employment in accordance with Buyer’s standard hiring procedures and policies
set forth on Schedule 9.1(a) to those Retained Employees who are on
long-term disability leave as of the Effective Time when such Retained Employee
is released by his or her physician to return to active employment if such
Retained Employee actually reports for active employment with Buyer immediately
upon such medical release; provided, however, that Buyer shall not be required to offer
employment under this provision after twelve (12) months from the Closing
Date.

(b)   Buyer will
credit each Continued Employee and each UK Employee with such employee’s unused
vacation days accrued by such employee with Seller or Seller Subsidiary prior
to the Effective Time in accordance with Seller’s or Seller Subsidiary’s
personnel policies applicable to such employees on the date hereof, but in no
event will any Continued Employee or any UK Employee receive a credit hereunder
in excess of the number of vacation days such employee was eligible to accrue
in one calendar year under such policies (it being understood that the
liability in respect of such accrued vacation days to be credited by Buyer will
be included on the Closing Net Assets Statement).

(c)   The parties
confirm their understanding that the Transfer of Undertakings (Protection of
Employment) Regulations 1981 (the “Transfer Regulations”)
will apply to the Transaction and that the contracts of employment of each of
the UK Employees remaining in the employ of Seller or Seller Subsidiary (save
insofar as relating to benefits for old age, invalidity or survivors of an
occupational pension scheme but including in relation to any obligation to make
contributions into a pension scheme on behalf of that person) shall have effect
after the Closing Date as if originally made with Buyer instead of Seller.

(d)   Buyer shall
promptly inform Seller, in writing, of any “measures” (as contemplated in the
Transfer Regulations) that it intends to take to allow Seller to comply with
its obligations pursuant to Regulation 10 of the Transfer Regulations.

 39

(e)   On or
before the Closing Date, Seller will issue a letter to each UK Employee
informing them of the transfer. Such letter will be in a form approved by
Buyer. Approval from Buyer in respect of such letter shall be provided in a
timely manner.

Section 9.2   Pension Plans.

(a)   Seller Retirement Plans.   None of Buyer or its
Affiliates shall have or acquire any interest in or right with respect to any
of the assets of the Evans & Sutherland Computer Corporation Pension
Plan or the Evans & Sutherland Computer Corporation Supplemental
Executive Retirement Plan (the “Seller Retirement Plans”)
by reason of the transactions contemplated by this Agreement, and Seller shall
retain full power and authority with respect thereto. Seller will remain solely
responsible for, and none of Buyer or its Affiliates will have any Liability
under, relating to or arising out of the Seller Retirement Plans.

(b)   Seller Savings Plans.   Seller will remain solely
responsible for, and none of Buyer or its Affiliates will have any Liability
under, relating to or arising out of the Evans & Sutherland Computer
Corporation 401(k) Deferred Savings Plan (the “Seller
Savings Plan”) and the Evans & Sutherland Computer
Corporation Executive Saving Plan by reason of the transactions contemplated by
this Agreement.

(c)   Buyer Savings Plan.   Effective as of the Effective
Time, Buyer will extend to each Continued Employee who is eligible or would
have become eligible to participate in the Seller Savings Plan coverage under
an applicable savings plan of Buyer or an Affiliate of Buyer. Any such
Continued Employee will be credited under the applicable savings plan of Buyer
or an Affiliate of Buyer for purposes of eligibility to participate and vesting
with all service recognized for such purposes under the Seller Savings Plan
immediately prior to the Effective Time. After the Effective Time, each such
Continued Employee will be permitted to transfer his or her account balances
(other than any participant loan account balances) from the Seller Savings Plan
to the applicable savings plan of Buyer or an Affiliate of Buyer in accordance
with the terms of the respective plans (as amended to the extent necessary) and
applicable Laws.

(d)   UK Pension Plan.   Effective as of the Effective Time,
Buyer will procure that it or one of its Affiliates becomes the principal
employer of the Evans & Sutherland Computer Limited Pension Scheme
(the “UK Pension Plan”).

Section 9.3   Welfare Plans.

(a)   Effective
as of the Effective Time, Buyer will provide to each Continued Employee
benefits under Buyer’s “employee welfare benefit plans”, as defined in Section 3(1) of
ERISA, and other employee benefit welfare or fringe benefit arrangements
(collectively, “Buyer Welfare Benefit Plans”)
that are substantially comparable in the aggregate in all material respects to
such benefits provided by Buyer to its similarly situated employees immediately
prior to the Effective Time; provided, however, nothing contained herein is intended to prohibit
Buyer from amending, modifying or terminating after the Effective Time any
employee benefit, benefit plan or program for or for the benefit of Continued
Employees in accordance with the terms thereof and applicable Laws. The Buyer
Welfare Benefit Plans, to the extent applicable:  (i) will recognize all amounts applied
to deductibles, co-payments, out-of-pocket maximums and lifetime maximum
benefits with respect to Continued Employees under the corresponding “employee
welfare benefit plans” and other employee benefit welfare or fringe benefit
arrangements maintained by Seller or Seller Subsidiary immediately prior to the
Effective Time for the benefit of Continued Employees (“Seller
Welfare Benefit Plans”) for the plan year that includes the Closing
Date; (ii) will recognize all service credited to waiting periods with
respect to Continued Employees under the corresponding Seller Welfare Benefit
Plan; and (iii) will not impose any limitations on coverage of
pre-existing conditions of Continued Employees except to the extent such
limitations applied to such Continued Employees under the corresponding Seller
Welfare Benefit Plan.

(b)   Seller,
Seller Subsidiary, the Seller Welfare Benefit Plans or Seller’s workers’
compensation carrier will remain liable for, and pay, perform and discharge
when due, all Liabilities relating to 

 40
 

Continued Employees in
respect of claims covered by the Seller Welfare Benefit Plans or by Seller’s
workers’ compensation scheme with respect to medical and retiree medical
(including vision care and prescription drugs), hospitalization and dental
services and other workers’ compensation and welfare benefits (other than
severance) rendered or expenses incurred on or prior to the Closing Date
(whether such claims are submitted prior to, on or after the Closing Date). Buyer,
the Buyer Welfare Benefit Plans or Buyer’s workers’ compensation carrier will
be liable for, and pay, perform and discharge when due, all Liabilities
relating to Continued Employees in respect of claims covered by the Buyer
Welfare Benefit Plans or by Seller’s workers’ compensation scheme with respect
to medical (including vision care and prescription drugs), hospitalization and
dental services and other workers’ compensation and welfare benefits (other
than severance) rendered or expenses incurred after the Closing Date.

(c)   Seller,
Seller Subsidiary or the Seller Welfare Benefit Plans will remain liable for
all Liabilities relating to employees and former employees of the Business who
elect not to become Continued Employees, including with respect to claims
relating to employee welfare benefits.

Section 9.4   Flexible Spending Accounts.   Except
as set forth in the next sentence, effective as of the Effective Time,
Continued Employees shall cease to participate in any and all plans of Seller
or Seller Subsidiary that are flexible spending plans for medical and/or
dependent care expenses (“Seller’s Flexible Spending
Plan”). To the extent permitted by applicable Laws, Seller and
Seller Subsidiary shall permit Continued Employees to submit claims for
reimbursement of covered expenses incurred prior to the Effective Time,
provided that such claims are properly submitted no later than ninety (90) days
following the Effective Time (the “Reimbursement Deadline”).
No later than sixty (60) days following the Reimbursement Deadline: (a) Buyer
shall pay to Seller an amount equal to the excess, if any, of (i) the
aggregate reimbursement payouts to or on behalf of the Continued Employees with
respect to their accounts under Seller’s Flexible Spending Plan for the plan
year in which the Effective Time occurs over (ii) the aggregate
accumulated contributions made to the accounts of the Continued Employees under
Seller’s Flexible Spending Plan prior to the Effective Time for the plan year
in which the Effective Time occurs; and (b) Buyer shall pay to each
Continued Employee, to the extent applicable, an amount equal to the excess, if
any, of (i) the accumulated contributions made to the account of such
Continued Employee under Seller’s Flexible Spending Plan prior to the Effective
Time for the plan year in which the Effective Time over (ii) the
reimbursement payouts to or on behalf of such Continued Employee with respect
to such Continued Employee’s account under Seller’s Flexible Spending Plan for
the plan year in which the Effective Time occurs. Effective as of the Effective
Time, Continued Employees shall be eligible to participate in a new or existing
plan of Buyer that provides flexible spending accounts for medical and/or
dependent care expenses.

Section 9.5   Severance Benefits.   Seller
will be responsible for and will pay when due all Liabilities in respect of any
claim of any employee to whom Buyer is required to offer employment pursuant to
Section 9.1 and who does not accept such employment with Buyer, but only
to the extent required under Seller’s severance benefit plan.

Section 9.6   Employment
Agreement.   Effective as of the Closing, Buyer shall assume any
and all liabilities and obligations relating to the employment agreement set
forth on Schedule 9.6, and Seller shall have no further obligations
whatsoever with respect to such agreement.

ARTICLE X

CONDITIONS TO CLOSING

Section 10.1   Conditions to Each Party’s
Obligations.   The respective obligations of each party to
effect the Transaction are subject to the satisfaction or waiver in writing by
such party at or prior to the Closing Date of each of the following conditions:

 41
 

(a)    Antitrust Laws.   The applicable waiting period under
the HSR Act shall have expired or been earlier terminated, and either the
applicable waiting period shall have expired under the German Act Against
Restraints of Competition or the Transaction shall have been approved by the
German Federal Cartel Office.

(b)   No Injunctions or Restraints.   No Law issued by any
court of competent jurisdiction or other Governmental Entity or other legal
restraint or prohibition preventing the consummation of the Transaction shall
be in effect.

(c)    Seller Stockholders Approval.   Seller shall obtain the
Required Seller Vote.

(d)   Debentures.   Notice for redemption of the aggregate
principal amount outstanding of the Debentures shall have been sent and the
Debentures shall have been satisfied and discharged in accordance with the
terms and conditions of the Indenture.

Section 10.2   Conditions to Obligations of Buyer.   The
obligations of Buyer to effect the Transaction are subject to the satisfaction
or waiver in writing by Buyer at or prior to the Closing Date of each of the
following conditions:

(a)    Representations and Warranties.   The representations
and warranties of Seller and Seller Subsidiary set forth in the Transaction
Documents (x) that are qualified as to materiality shall be true and
correct in all respects and (y) that are not so qualified shall be true
and correct in all material respects, in each case as of the date of this
Agreement and as of the Closing Date (except for representations and warranties
that relate to a specified date which shall be true and correct as of such
specified date) with the same effect as though made on and as of the date of
this Agreement and the Closing Date, and Seller shall have delivered to Buyer a
certificate signed by an executive officer of Seller confirming the foregoing
as of the Closing Date.

(b)   Performance of Obligations of Seller.   Each and all of
the covenants and agreements of Seller and Seller Subsidiary to be performed or
complied with pursuant to the Transaction Documents on or prior to the Closing
Date shall have been fully performed and complied with in all material
respects, and Seller shall have delivered to Buyer a certificate signed by an
executive officer of Seller confirming the foregoing as of the Closing Date.

(c)    No Material Adverse Change.   There shall not have been
a Material Adverse Effect.

(d)   Consents.   All material Consents and orders of all
Persons (including Governmental Entities) required to be obtained prior to the
Closing in connection with the execution, delivery and performance of the
Transaction by each of Seller, Seller Subsidiary and Buyer or the consummation
of the Transaction set forth on Schedule 10.2(d) shall have been
obtained and shall be in full force and effect.

(e)    Tax Certificates.   Seller and Seller Subsidiary shall
have furnished to Buyer all tax documents required under Section 8.1(f).

(f)    Ancillary Agreements.   Seller shall have executed and
delivered the Transaction Agreement, the Intellectual Property Agreement, the
Laser Supply Agreement, the Laser Agreement, the Transition Agreement, the
Escrow Agreement and the Assignment and Assumption Agreement, and the Escrow
Agent shall have executed and delivered the Escrow Agreement.

(g)    Litigation, Etc.   No Action shall have been instituted
or is pending which (i) is reasonably likely to make illegal, or to delay
or otherwise directly or indirectly restrain or prohibit, the consummation of
the Transaction or to result in material damages to Buyer in connection with
the Transaction, or (ii) seeks to and is reasonably likely to prohibit
ownership or operation by Buyer of the Business or a material portion thereof,
the Assets or a material portion thereof, or of the 

 42
 

businesses or assets of
Buyer or any of its Affiliates or a material portion thereof, or to compel
Buyer to dispose of or hold separately, all or any portion of the Business or
the Assets or all or a portion of the business or assets of Buyer or any of its
Affiliates as a result of the Transaction; provided that
Buyer shall have used commercially reasonable efforts to dismiss such Action.

Section 10.3   Conditions to Obligations of Seller.   The
obligations of Seller to effect the Transaction are subject to the satisfaction
or waiver in writing by Seller at or prior to the Closing Date of each of the
following conditions:

(a)    Representations and Warranties.   The representations
and warranties of Buyer set forth in the Transaction Documents (x) that
are qualified as to materiality shall be true and correct in all respects and (y) that
are not so qualified shall be true and correct in all material respects, in
each case as of the date of this Agreement and as of the Closing Date (except
for representations and warranties that relate to a specified date which shall
be true and correct as of such specified date), with the same effect as though
made on and as of the date of this Agreement and the Closing Date, and Buyer
shall have delivered to Seller a certificate signed by an executive officer of
Buyer confirming the foregoing as of the Closing Date.

(b)   Performance of Obligations of Buyer.   Each and all of
the covenants and agreements of Buyer to be performed or complied with pursuant
to the Transaction Documents on or prior to the Closing Date shall have been
fully performed and complied with in all material respects, and Buyer shall
have delivered to Seller a certificate signed by an executive officer of Buyer
confirming the foregoing as of the Closing Date.

(c)    Ancillary Agreements.   Buyer shall have executed and
delivered the Transaction Agreement, the Intellectual Property Agreement, the Laser
Supply Agreement, the Laser Agreement, the Transition Agreement, the Escrow
Agreement and the Assignment and Assumption Agreement, and the Escrow Agent
shall have executed and delivered the Escrow Agreement.

(d)   Litigation, Etc.   No Action
shall have been instituted or is pending which is reasonably likely to make
illegal, or to delay or otherwise directly or indirectly restrain or prohibit,
the consummation of the Transaction or to result in material damages to Seller
in connection with the Transaction; provided that
Seller shall have used commercially reasonable efforts to dismiss such Action.

ARTICLE XI

TERMINATION

Section 11.1   Termination.   This
Agreement may be terminated and the Transaction abandoned at any time prior to
the Closing Date:

(a)    by the
mutual written agreement of Buyer and Seller;

(b)   by written
notice by either Seller or Buyer, if the Closing Date shall not have occurred
on or before November 7, 2006 (the “End Date”) for
any reason, except that such right to terminate this Agreement shall not be
available to any such party whose material breach of any of its
representations, warranties, covenants or agreements under this Agreement or
any other Transaction Document is the cause of the delay;

(c)    by written
notice by either Seller or Buyer, if there shall be any Law that makes
consummation of the Transaction illegal or otherwise prohibited or if any court
of competent jurisdiction or other Governmental Entity shall have issued an
order, decree or ruling or taken any other action permanently restraining,
enjoining or otherwise prohibiting the consummation of the Transaction, and
such order, decree, ruling or other action shall have become final and
unappealable (provided that the party seeking to terminate this Agreement
pursuant to this Section 11.1(c) shall 

 43
 

have complied with its
obligations under Section 8.6(a), subject to Section 8.6(c), by using
its commercially reasonable efforts to have any such order, decree, ruling or
other action vacated or lifted);

(d)   by written
notice by Buyer to Seller, if there shall have been a breach of any covenant or
agreement on the part of Seller or Seller Subsidiary set forth in this
Agreement, or if any representation or warranty of Seller set forth in this
Agreement shall have become untrue, in each case such that the conditions set
forth in Section 10.2(a) or Section 10.2(b), as the case may be,
would not be satisfied as of such time, provided that if such breach is curable
by Seller or Seller Subsidiary prior to the End Date through the exercise of
its commercially reasonable efforts, then for so long as Seller or Seller
Subsidiary continues to exercise such commercially reasonable efforts to cure
the same, Buyer may not terminate this Agreement pursuant to this Section 11.1(d);

(e)    by written
notice by Seller to Buyer, if there shall have been a breach of any covenant or
agreement on the part of Buyer set forth in this Agreement, or if any
representation or warranty of Buyer set forth in this Agreement shall have
become untrue, in each case such that the conditions set forth in Section 10.3(a) or
Section 10.3(b), as the case may be, would not be satisfied as of such
time, provided that if such breach is curable by Buyer prior to the End Date
through the exercise of its commercially reasonable efforts, then for so long
as Buyer continues to exercise such commercially reasonable efforts to cure the
same, Seller may not terminate this Agreement pursuant to this Section 11.1(e);

(f)    by written
notice by Buyer or Seller if the Required Seller Vote shall not have been
obtained upon the taking of such vote at a duly held meeting of stockholders of
Seller or at any adjournment thereof;

(g)    by written
notice by Buyer to Seller if (i) Seller’s Board of Directors shall have (A) failed
to make the Seller Recommendation or (B) made a Change in Seller
Recommendation (or resolved or proposed to take any such action referred to in
clause (A) or (B)), in each case whether or not permitted by the
terms hereof, or (ii) Seller shall have materially breached its
obligations under this Agreement by reason of a failure to call the Seller
Stockholders Meeting in accordance with Section 8.1(h) or a failure
to prepare and mail to its stockholders the Proxy Statement in accordance with Section 8.1(g);
or

(h)   by written
notice by Seller to Buyer if (i) Seller is not in material breach of Section 8.1(d),
(ii) the Seller Stockholders Meeting has not yet occurred, and (iii) Seller’s
Board of Directors authorizes the entry into of a binding written agreement
with respect to an Acquisition Proposal that constitutes a Superior Proposal; provided, however, that (x) not
less than five business days prior to such termination Seller shall notify
Buyer of its intention to terminate this Agreement pursuant to this Section 11.1(h),
(y) to the extent reasonably requested by Buyer, Seller shall, and shall
cause its financial and legal advisors to, negotiate during such five business
day period with Buyer concerning adjustments in the terms and conditions of
this Agreement as would enable Seller to proceed with the transactions
contemplated herein on adjusted terms and (z) if Buyer makes a bona fide
written offer of any such adjustments prior to the expiration of such five
business day period, Seller’s Board of Directors in good faith concludes
(following receipt of the advice of its financial advisors and outside counsel)
that such Acquisition Proposal would, if consummated, result in a transaction
that is more favorable to its stockholders (in their capacities as
stockholders), from a financial point of view, than the Transaction, after
taking into account such adjustments; provided, further, that this termination pursuant to this Section 11.1(h) shall
not be effective until Seller has made to Buyer the payment required by Section 11.2(b)(ii).

 44
 

Section 11.2   Effect of Termination.

(a)   In the
event of the termination of this Agreement pursuant to Section 11.1, this
Agreement (other than with respect to Section 8.4, the last sentence of Section 8.5(a),
this Section 11.2 and Section 15.6, which shall continue in effect)
shall thereafter become void and have no effect, without any liability on the
part of any party or its Representatives in respect thereof, except that
nothing herein will relieve any party from Liability for any breach of this
Agreement.

(b)   If:

(i)    Buyer
shall terminate this Agreement pursuant to Section 11.1(g);

(ii)   Seller
shall terminate this Agreement pursuant to Section 11.1(h); or

(iii)  (A) Buyer
or Seller shall terminate this Agreement pursuant to Section 11.1(f), (B) at
any time after the date of this Agreement and before the Seller Stockholders
Meeting an Acquisition Proposal shall have been publicly announced and (C) within
one year of such termination Seller enters into any definitive agreement with
respect to, or consummates a transaction with respect to, any Acquisition
Proposal;

then Seller shall
promptly, but in no event later than one business day after the date of such
termination (or in the cases of clauses (iii), the date Seller consummates
a transaction with respect to such Acquisition Proposal), pay Buyer, by wire
transfer of immediately available funds to an account designated by Buyer, an
amount equal to Two Million Five Hundred Thousand Dollars ($2,500,000).

(c)   The parties acknowledge that the agreements contained in this Section 11.2
are an integral part of the transactions contemplated by this Agreement, and
that, without these agreements, Buyer would not enter into this Agreement;
accordingly, if Seller fails promptly to pay any amount due pursuant to this Section 11.2,
and, in order to obtain such payment, Buyer commences a suit which results in a
judgment against Seller for the payment of the amounts set forth in this Section 11.2,
Seller shall pay to Buyer its reasonable costs and expenses (including
reasonable attorneys’ fees and expenses) in connection with such suit.

ARTICLE XII

SURVIVAL

Section 12.1   Survival.   The
respective representations and warranties of each of Seller and Buyer contained
in this Agreement (other than Seller’s representations and warranties with
respect to title contained in Section 6.8, Taxes contained in Section 6.5,
Intellectual Property contained in Section 6.6, environmental matters
contained in Section 6.12 and brokers contained in Section 6.21 and
Buyer’s representations and warranties with respect to brokers contained in Section 7.5)
will survive the Closing Date and will continue in full force and effect until
eighteen months after the Closing Date and then terminate and expire subject to
Section 13.5. Seller’s representations and warranties with respect to
Taxes contained in Section 6.5 and environmental matters contained in Section 6.12
will not survive the Closing Date and will terminate and expire at the
Effective Time. Seller’s representations and warranties with respect to
Intellectual Property contained in Section 6.6 and with respect to brokers
contained in Section 6.21 and Buyer’s representations and warranties with
respect to brokers contained in Section 7.5 will survive the Closing Date
and will continue in full force and effect until three years after the Closing
Date and then terminate and expire subject to Section 13.5. Seller’s
representations and warranties with respect to title contained in Section 6.8
will survive the Closing Date without time limitation.

 45
 

ARTICLE XIII

INDEMNIFICATION

Section 13.1   Indemnification by Seller.   Seller
shall indemnify, defend and hold harmless Buyer and its Representatives
(collectively, the “Buyer Group”)
from and against, and pay or reimburse, as the case may be, the Buyer Group
for, any and all Damages, as incurred, suffered by Buyer or any other member of
the Buyer Group based upon, arising out of or relating to:

(a)    any
falsity, breach or inaccuracy of any representation or warranty made by Seller
or Seller Subsidiary herein on the date of this Agreement or on the Closing
Date (other than the representations and warranties with respect to Taxes
contained in Section 6.5 and environmental matters contained in Section 6.12);

(b)   any breach
or violation of any covenant or agreement of Seller or Seller Subsidiary
contained herein or in the Transition Agreement or the Intellectual Property
Agreement;

(c)    the
Retained Liabilities;

(d)   any
Liability for and in respect of (i) income Taxes of Seller and Seller
Subsidiary arising in connection with the consummation of the transactions
contemplated hereby, and (ii) Taxes of Seller and Seller Subsidiary
relating to the Business, the Assets (including the Joint Venture) or the
Assumed Liabilities for periods (or portions thereof) up to and including the
Closing Date (in the case of tax years including the Closing on the Closing
Date, Taxes shall be determined on a closing-of-the-books basis through the
Closing, except for periodic Taxes (such as real property Taxes) which shall be
determined on a daily pro rata basis);

(e)    the
Liabilities set forth on Schedule 13.1(e) with respect to the
Contracts set forth on Schedule 13.1(e); or

(f)    50% of all
product warranty claims under Contracts that constitute Assets to the extent
solely based on actions, omissions, or occurrences prior to the Effective Time
to the extent such claims exceed the amounts reserved for product warranty
claims on the Final Closing Net Assets Statement.

Section 13.2   Indemnification by Buyer.   Buyer
shall indemnify, defend and hold harmless Seller, Seller Subsidiary and their
respective Representatives (collectively, the “Seller Group”)
from and against, and pay or reimburse, as the case may be, the Seller Group
for, any and all Damages, as incurred, suffered by Seller or any other member
of the Seller Group based upon, arising out of or relating to:

(a)    any
falsity, breach or inaccuracy of any representation or warranty made by Buyer
herein on the date of this Agreement or on the Closing Date;

(b)   any breach
or violation of any covenant or agreement of Buyer contained herein or in the
Transition Agreement or the Intellectual Property Agreement;

(c)    the
Assumed Liabilities;

(d)   all
retainers and commissions pursuant to the terms of the international sales
representation agreements set forth on Schedule 8.13 to the extent such
retainers and commissions become payable in accordance with the terms of those
agreements after the Effective Time (regardless of whether or not such payments
relate to new business awarded to the Business after the Effective Time), but
only to the extent the payment of such retainers and commissions does not
violate applicable Laws;

(e)    all
reasonable out-of-pocket costs (including reasonable fees and expenses of
counsel) up to an aggregate of Two Hundred Thousand Dollars ($200,000) incurred
by Seller or Seller Subsidiary for the purposes of winding down or dissolving
Seller Subsidiary; or

 46

(f)    until
Seller is released from all Liabilities related to the Joint Venture
Guaranties, all Liabilities of Seller under the Joint Venture Guaranties.

Section 13.3   Procedures for Indemnification.

(a)   If a claim
or demand is made against an Indemnitee by any Person who is not a party to
this Agreement (and who is not an Affiliate of a party to this Agreement) (a “Third Party Claim”) as to which a party (the “Indemnifying Party”) may be obligated to provide
indemnification pursuant to this Agreement, such Indemnitee will notify the
Indemnifying Party in writing, and in reasonable detail, of the Third Party
Claim reasonably promptly (and, in any event, within thirty (30) days)
after becoming aware of such Third Party Claim; provided,
however, that failure to give any such
notification will not affect the indemnification provided hereunder except to
the extent the Indemnifying Party has been actually prejudiced as a result of
such failure.

(b)   If a Third
Party Claim is made against an Indemnitee and the Indemnifying Party
unconditionally and irrevocably acknowledges in writing its obligation to
indemnify the Indemnitee therefor, the Indemnifying Party will be entitled to
assume the defense thereof (at the expense of the Indemnifying Party) with
counsel selected by the Indemnifying Party and reasonably satisfactory to the
Indemnitee. Should the Indemnifying Party so elect to assume the defense of a
Third Party Claim, the Indemnifying Party will not be liable to the Indemnitee
for any legal or other expenses subsequently incurred by the Indemnitee in
connection with the defense thereof; provided that, if such Indemnitee has been
advised in writing by its counsel that in the opinion of such counsel there is
an actual conflict of interest in the same counsel representing both such
parties, such Indemnitees will have the right to employ one (1) separate
counsel to represent such Indemnitee and in that event the reasonable fees and
expenses of such separate counsel will be paid by such Indemnifying Party. If
the Indemnifying Party assumes the defense of any such Third Party Claim, each
Indemnitee will have the right to participate in the defense thereof and to
employ counsel, at its own expense, separate from the counsel employed by the
Indemnifying Party; provided that counsel selected by the Indemnifying Party
shall control the defense. The Indemnifying Party will be liable for the fees
and expenses of counsel employed by the Indemnitee if the Indemnifying Party
does not expressly elect to assume the defense thereof (including the
acknowledgment by each Indemnifying Party of its indemnification obligation as
aforesaid). If the Indemnifying Party assumes the defense of any such Third
Party Claim, the Indemnifying Party will promptly supply to the Indemnitee
copies of all correspondence and documents relating to or in connection with
such Third Party Claim and keep the Indemnitee fully informed of all
developments relating to or in connection with such Third Party Claim. If the
Indemnifying Party chooses to defend a Third Party Claim, all the Indemnitees
will reasonably cooperate with the Indemnifying Party in the defense thereof
(such cooperation to be at the expense, including reasonable legal fees and
expenses, of the Indemnifying Party).

(c)   No
Indemnifying Party will consent to any settlement, compromise or discharge
(including the consent to entry of any judgment) of any Third Party Claim
without the Indemnitee’s prior written consent; provided
that if the Indemnifying Party unconditionally and irrevocably acknowledges in
writing its obligation to indemnify the Indemnitee for a Third Party Claim, the
Indemnitee shall agree to any settlement, compromise or discharge of such Third
Party Claim that the Indemnifying Party may recommend that unconditionally and
irrevocably releases the Indemnitee and its Affiliates (pursuant to a release
which is reasonably satisfactory to the Indemnitee) completely from all
Liability in connection with such Third Party Claim and which by its terms
obligates the Indemnifying Party to pay the full amount of Damages in
connection with such Third Party Claim; provided, however, that the Indemnitee may refuse to agree to any such
settlement, compromise or discharge (including the consent to entry of any
judgment) of any Third Party Claim that (x) provides for injunctive or
other nonmonetary relief affecting the Indemnitee or any of its Affiliates or
(y) involves the imposition of any fine, payment or other sanction by any
Governmental Entity (for the avoidance of doubt, the word “payment” as used in this
clause (y) does not include the payment of any Taxes other than any fine
or sanction in respect of Taxes). If the Indemnifying 

 47
 

Party unconditionally and
irrevocably acknowledges in writing its obligation to indemnify the Indemnitee
for a Third Party Claim, the Indemnitee will not (unless required by law) admit
any liability with respect to, or settle, compromise or discharge, such Third
Party Claim (other than a Third Party Claim by a Governmental Entity) without
the Indemnifying Party’s prior written consent.

(d)   Any claim
on account of Damages which does not involve a Third Party Claim shall be
asserted promptly after discovery (and within thirty (30) days) by the
Indemnitee to the Indemnifying Party from whom such indemnification is sought.
The failure by any Indemnitee so to notify the Indemnifying Party will not
relieve the Indemnifying Party from any liability which it may have to such
Indemnitee under this Agreement, except to the extent that the Indemnifying
Party has been actually prejudiced, as a result of such failure.

Section 13.4   Certain Rights and Limitations.

(a)   As security
in part for the performance by Seller of its indemnification obligations under Section 13.1
and its payment obligations under Section 4.1, the Escrow Amount shall be
deposited with the Escrow Agent, which amount shall be held and distributed in
accordance with the Escrow Agreement. Until all amounts held by the Escrow
Agent pursuant to the Escrow Agreement have been distributed in accordance with
the terms of the Escrow Agreement or are subject to good faith claims by Buyer
or any other member of the Buyer Group under the Escrow Agreement, all claims
in respect of indemnification obligations of Seller pursuant to Section 13.1
and payment obligations of Seller under Section 4.1 shall be sought to be
collected first from the amounts held in escrow pursuant to the Escrow
Agreement (other than claims pursuant to Section 13.1(b) with respect
to Seller’s obligations under Section 8.1(e), in respect of which Buyer
shall have the right to seek to collect directly from Seller without first
seeking to collect from the amounts held in escrow pursuant to the Escrow
Agreement). Subject to Section 13.4(d), the Buyer Group will have recourse
to Seller in the event amounts held in escrow pursuant to the Escrow Agreement
are insufficient to cover claims by Buyer or any other member of the Buyer
Group pursuant to Seller’s indemnification obligations under Section 13.1
or Seller’s payment obligations under Section 4.1.

(b)   No loss,
Liability, damage or deficiency shall constitute Damages to any party to the
extent of (i) any insurance proceeds actually received by such party with
respect to such loss, Liability, damage or deficiency (after deducting
reasonable costs and expenses incurred in connection with recovery of such
proceeds); (ii) any amount recovered by such party from third parties
under Contracts providing for indemnification; and (iii) the amount of any
net Tax benefit actually realized by such party arising from the recognition of
the Damages. With respect to any claim for indemnification under this Article XIII,
the Indemnitee shall exercise commercially reasonable efforts to collect
insurance proceeds (it being understood that, except to the extent provided in
clause (i) of the preceding sentence, the Indemnitee’s obligations under
this sentence shall in no way limit the obligations under this Article XIII
of the applicable Indemnifying Party).

(c)   No monetary
amount shall be payable by Seller or Buyer to any member of the Buyer Group or
Seller Group, respectively, with respect to the indemnification of any claims
pursuant to Section 13.1(a) or 13.1(f), in the case of
indemnification by Seller, or Section 13.2(a), in the case of
indemnification by Buyer, until the aggregate amount of Damages actually
incurred by the Buyer Group or the Seller Group, as the case may be, with
respect to such claims exceeds Four Hundred Thousand Dollars ($400,000) in the
aggregate, in which event Seller or Buyer, as the case may be, shall be
responsible for the full amount of such Damages that exceed Two Hundred
Thousand Dollars ($200,000).

(d)   No monetary
amount shall be payable by Seller or Buyer to any member of the Buyer Group or
Seller Group, respectively, with respect to the indemnification of any claims
pursuant to Section 13.1(a) or 13.1(f), in the case of
indemnification by Seller, or Section 13.2(a), in the case of
indemnification by Buyer, if and to the extent such payment would exceed any of
the limitations set forth in clauses (i), (ii) and (iii) below:

 48
 

(i)    the
aggregate amount of Damages indemnifiable by Seller pursuant to Section 13.1(a) (other
than with respect to Seller’s representations and warranties with respect to
Intellectual Property contained in Section 6.6, title contained in Section 6.8
and brokers contained in Section 6.21) and Section 13.1(f) and
indemnifiable by Buyer pursuant to Section 13.2(a) (other than with
respect to Buyer’s representations and warranties with respect to brokers
contained in Section 7.5 and financial resources contained in Section 7.6)
shall not exceed Fourteen Million Three Hundred Thousand Dollars ($14,300,000);

(ii)   the
aggregate amount of Damages indemnifiable by Seller pursuant to Section 13.1(a) (other
than with respect to Seller’s representations and warranties with respect to
title contained in Section 6.8) and Section 13.1(f) and
indemnifiable by Buyer pursuant to Section 13.2(a) (other than with
respect to Buyer’s representations and warranties with respect to financial
resources contained in Section 7.6) shall not exceed Thirty-Five Million
Seven Hundred Fifty Thousand Dollars ($35,750,000); and

(iii)  the
aggregate amount of Damages indemnifiable by Seller pursuant to Section 13.1(a) and
Section 13.1(f) and indemnifiable by Buyer pursuant to Section 13.2(a) shall
not exceed Seventy-One Million Five Hundred Thousand Dollars ($71,500,000).

(e)  None of the
limitations in this Section 13.4 with respect to indemnification of any
claims pursuant to Section 13.1(a) or 13.2(a) shall apply to the
extent the indemnification obligations thereunder are a result of fraud by the
Indemnifying Party.

Section 13.5   Termination of Indemnification
Obligations.   The obligations of each party to indemnify,
defend and hold harmless Indemnitees (i) pursuant to Sections 13.1(a) and
13.2(a), shall terminate when the applicable representation or warranty expires
pursuant to Article XII, (ii) pursuant to Sections 13.1(b) and
13.2(b), shall terminate upon the expiration of all applicable statutes of
limitation (giving effect to any extensions thereof) and (iii) pursuant to
Sections 13.1(c), 13.1(d), 13.1(e), 13.1(f), 13.2(c), 13.2(d), 13.2(e) and
13.2(f), shall continue without time limitation and shall not terminate at any
time; provided, however,
that as to clauses (i) and (ii) above, such obligations to
indemnify, defend and hold harmless shall not terminate with respect to any
individual item as to which the Indemnitee shall have, before the expiration of
the applicable period, made a bona fide claim by delivering written notice
(stating in reasonable detail the basis of such claim) to the Indemnifying
Party.

Section 13.6   Incidental or Consequential Damages.   Notwithstanding
anything to the contrary in this Agreement, neither Seller nor Buyer shall have
any obligation to indemnify either the Buyer Group or the Seller Group, as the
case may be, for incidental, consequential, exemplary, special or punitive
damages or lost profits; provided that
this Section 13.6 shall not apply to incidental, consequential, exemplary,
special or punitive damages or lost profits that are components of judgment
awards against a member of the Buyer Group or the Seller Group, as the case may
be, in actions by third parties to the extent any such judgment award is
subject to indemnification pursuant to Section 13.1 or Section 13.2,
respectively.

Section 13.7   Exclusive Remedy.   Except
as otherwise provided in Section 15.17 or in any Transaction Document, any
claim or cause of action (whether such claim sounds in tort, contract or
otherwise and including statutory rights and remedies) based upon, relating to
or arising out of this Agreement or the Transaction must be brought by either
party in accordance with the provisions and applicable limitations of this Article XIII,
which, in the absence of fraud, shall constitute the sole and exclusive remedy
of all parties and their Affiliates, successors and assignees for any such
claim or cause of action.

Section 13.8   Waiver.   The waiver
of any condition based on the accuracy of any representation or warranty
pursuant to any Transaction Document, or on the performance of or compliance
with any covenant, agreement or obligation pursuant to any Transaction
Document, will not affect any right to 

 49
 

indemnification, payment
of Damages or other remedy based on such representations, warranties,
covenants, agreements or obligations.

Section 13.9   Effect
on Final Purchase Price.   Any indemnity payment made pursuant
to this Agreement will be treated as an adjustment to the Purchase Price (and
shall be allocated to the Purchase Price of the particular Assets to which it
relates) for Tax purposes unless a determination (as defined in Section 1313
of the Code) or similar event under applicable Tax law, rule or regulation
with respect to the Indemnitee causes such payment not to constitute an
adjustment to the Purchase Price for United States federal income Tax purposes
or foreign Tax purposes, as the case may be.

ARTICLE XIV

RESTRICTIVE COVENANT

Section 14.1   Non-compete.   Seller
covenants and agrees that, for a period of five years after the Closing Date,
none of Seller, Seller Subsidiary or any Affiliate controlled by Seller will,
directly or indirectly (on its own behalf or in the service or on behalf of
others), in any area of the world, enter into, engage in, provide managerial,
supervisory, administrative or consulting services to, represent or have or
acquire more than a 2% ownership or beneficial interest in any business or
entity engaged, directly or indirectly, in the Business or any derivatives of
or improvements to such products or services or any other products or services
manufactured, sold or provided by the Business during the five year period
ending on the Closing Date; provided, however, that Seller may provide products and services in
the ordinary course of business to entities engaged in the Business as long as
such products and services provided are not for use in the Business; provided, further, that
Seller may acquire control of any business deriving less than 15% of its
revenues from such operations so long as Seller shall use commercially
reasonable efforts to divest such operations as promptly as practicable and in
any event Seller shall have divested such operations not later than one year
following such acquisition; provided, further, that if Seller enters into a binding written
agreement to divest such operations during such one year period and uses
commercially reasonable efforts to close such transaction, then the one year
period shall be extended until the earlier of the closing of such transaction
or the actual or constructive termination of such agreement. In the event that
Seller is acquired by an unaffiliated third party in a transaction that results
in the holders of the voting securities of Seller outstanding immediately prior
to the consummation of such transaction owning less than 50% of the voting
securities of the acquiring or surviving entity in the transaction or any
parent thereof outstanding immediately after consummation of such transaction,
such acquiring or surviving entity or parent thereof may engage in any activity
otherwise prohibited by this Section 14.1.

ARTICLE XV

GENERAL PROVISIONS

Section 15.1   Assignment.   Neither
party to this Agreement will convey, assign or otherwise transfer any of its
rights or obligations hereunder without the prior written consent of the other
party, except that Buyer may (without obtaining any consent) assign its rights,
interests and/or obligations under any Transaction Document, in whole or in
part, to any successor to all or any portion of its business or to any
Affiliate of Buyer. Any conveyance, assignment or transfer requiring the prior
written consent of the other party which is made without such consent will be
void ab  initio. No
assignment of this Agreement will relieve the assigning party of its
obligations hereunder.

Section 15.2   Parties in Interest.   This
Agreement is binding upon and is for the benefit of the parties hereto and
their respective successors and permitted assigns. This Agreement is not made
for the benefit of any Person not a party hereto, and no Person other than the
parties hereto or their respective successors and permitted assigns will
acquire or have any benefit, right, remedy or claim under or by reason of this
Agreement, except that members of the Buyer Group and the Seller Group will be
entitled to the rights to indemnification provided to the Buyer Group and the
Seller Group, respectively, hereunder.

 50
 

Section 15.3   Amendment.   This
Agreement may not be amended, modified or supplemented except by a written
agreement executed by Buyer and Seller.

Section 15.4   Waiver; Remedies.   No
failure or delay on the part of either Buyer or Seller in exercising any right,
power or privilege under any Transaction Document will operate as a waiver
thereof, nor will any waiver on the part of either Buyer or Seller of any
right, power or privilege under any Transaction Document operate as a waiver of
any other right, power or privilege under any Transaction Document, nor will
any single or partial exercise of any right, power or privilege thereunder
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege under any Transaction Document. Except as otherwise
provided herein, the rights and remedies herein provided are cumulative and are
not exclusive of any rights or remedies which the parties may otherwise have at
law or in equity.

Section 15.5   Effect of Investigation.   All
representations, warranties, covenants and agreements made by Seller or Seller
Subsidiary in this Agreement or in any Transaction Document shall be unaffected
by any investigation made by or on behalf of Buyer (whether before, on or after
the date hereof or before, on or after the Closing Date) or knowledge obtained
(or capable of being obtained) as a result thereof or otherwise.

Section 15.6   Fees and Expenses.   Except
as otherwise provided in this Agreement (including transfer taxes pursuant to Section 5.4),
each of Seller and Buyer agrees to pay, without right of reimbursement from the
other, all costs and expenses incurred by it (and, in the case of Seller, all
costs and expenses incurred by Seller Subsidiary) incident to the performance
of its obligations hereunder, including the fees and disbursements of counsel,
accountants, financial advisors, experts and consultants employed by the respective
parties in connection with the Transaction, whether or not the Transaction is
consummated; provided that this Section 15.6
shall not limit any Person’s right to recover any Damages for breach of this
Agreement or any other Transaction Document.

 51
 

Section 15.7   Notices.   All
notices, requests, claims, demands and other communications required or
permitted to be given under any Transaction Document will be in writing and
will be delivered by hand or telecopied, e-mailed or sent, postage prepaid, by
registered, certified or express mail or reputable overnight courier service
and will be deemed given when so delivered by hand or telecopied, when e-mail
confirmation is received if delivered by e-mail, or three business days after
being so mailed (one business day in the case of express mail or overnight
courier service). All such notices, requests, claims, demands and other
communications will be addressed as set forth below, or pursuant to such other
instructions as may be designated in writing by the party to receive such
notice in accordance with this Section 15.7:

(a)   If to Buyer:

	
  

  	
   

  	
  Rockwell Collins, Inc.

  400 Collins Road N.E.

  Cedar Rapids, Iowa 52498

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Gary R.
  Chadick, Esq.

  Senior Vice President,

  General Counsel and Secretary

  
	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (319) 295-3599

  
	
   

  	
   

  	
  E-mail:

  	
   

  	
  grchadic@rockwellcollins.com

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
  Chadbourne & Parke LLP

  30 Rockefeller Plaza

  New York, New York 10112

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Peter R.
  Kolyer, Esq.

  
	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (212) 541-5369

  
	
   

  	
   

  	
  E-mail:

  	
   

  	
  pkolyer@chadbourne.com

  

 

(b)   If to Seller:

	
  

  	
   

  	
  Evans & Sutherland Computer Corporation

  600 Komas Drive

  Salt Lake City, Utah 84108

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  David Bateman

  
	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (801) 588-4511

  
	
   

  	
   

  	
  E-mail:

  	
   

  	
  dbateman@es.com

  
	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
  Skadden, Arps, Slate, Meagher & Flom LLP

  525 University Avenue, Suite 1100

  Palo Alto, California 94307

  	
   

  	
   

  
	
   

  	
   

  	
  Attention:

  	
   

  	
  Marc R. Packer

  
	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (650) 470-4570

  
	
   

  	
   

  	
  E-mail:

  	
   

  	
  mpacker@skadden.com

  
								

 

Section 15.8   Waiver of Compliance With Bulk
Transfer Laws.   Buyer hereby waives compliance by Seller and
Seller Subsidiary with the provisions of any bulk transfer laws which may be
applicable to the 

 52
 

transactions contemplated
by this Agreement. Seller and Seller Subsidiary shall jointly and severally
indemnify, defend and hold harmless the Buyer Group from and against, and pay
or reimburse, as the case may be, the Buyer Group for, any and all Damages, as
incurred, suffered by any member of the Buyer Group based upon, arising out of
or otherwise in any way relating to or in respect of such noncompliance; provided that such indemnification shall be subject to Section 13.3
and 13.6.

Section 15.9   Captions; Currency.   The
article and section captions herein and the table of contents hereto are for
convenience of reference only, do not constitute part of this Agreement and
will not be deemed to limit or otherwise affect any of the provisions hereof. Unless
otherwise specified, all references herein to numbered articles and sections
are to articles and sections of this Agreement and all references herein to
schedules and exhibits are to schedules and exhibits to this Agreement. Unless
otherwise specified, all references contained in this Agreement, in any exhibit
or schedule referred to therein or in any instrument or document delivered
pursuant thereto to dollars or “$” shall mean United States Dollars.

Section 15.10   Entire Agreement.   This
Agreement, the other Transaction Documents and the Confidentiality Agreement
collectively constitute the entire agreement between the parties with respect
to the subject matter hereof and this Agreement and the Confidentiality Agreement
supersede all prior negotiations, agreements and understandings of the parties
of any nature, whether oral or written, relating thereto.

Section 15.11   Severability.   If any
provision of any Transaction Document or the application thereof to any Person or
circumstance is determined by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions thereof, or the application of
such provision to Persons or circumstances other than those as to which it has
been held invalid or unenforceable, shall remain in full force and effect and
shall in no way be affected, impaired or invalidated thereby.

Section 15.12   Consent to Jurisdiction.   Subject
to Section 15.15, each of Seller and Buyer irrevocably submits to the
exclusive jurisdiction of (i) the Court of Chancery in and for the State
of Delaware and the Superior Court in and for the State of Delaware and (ii) the
United States District Court for the District of Delaware for the purposes of
any Action arising out of the Transaction, this Agreement or any other
Transaction Document, any provision hereof or thereof or the breach,
performance, enforcement, validity or invalidity hereof or thereof (and agrees
not to commence any Action relating thereto except in such courts). Each of
Seller and Buyer further agrees that service of any process, summons, notice or
document hand delivered or sent by U.S. first class mail to such party’s
respective address set forth in Section 15.7 shall be effective service of
process for any Action in Delaware with respect to any matters to which it has
submitted to jurisdiction as set forth in the immediately preceding sentence. Each
of Seller and Buyer irrevocably and unconditionally waives any objection to the
laying of venue of any Action arising out of the Transaction, this Agreement or
any other Transaction Document, any provision hereof or thereof or the breach,
performance, enforcement, validity or invalidity hereof or thereof in (i) the
Court of Chancery in and for the State of Delaware and the Superior Court in
and for the State of Delaware or (ii) the United States District Court for
the District of Delaware, and hereby further irrevocably and unconditionally
waives and agrees not to plead or claim in any such court that any such Action
brought in any such court has been brought in an inconvenient forum.
Notwithstanding the foregoing, each party agrees that a final judgment in any
action or proceeding so brought shall be conclusive and may be enforced by suit
on the judgment in any jurisdiction or in any other manner provided in Law or
in equity.

Section 15.13   Exhibits and Schedules; Disclosure.

(a)   All
exhibits and schedules attached hereto are hereby incorporated in and made a
part of this Agreement as if set forth in full herein. Capitalized terms used
in any other Transaction Document or in the schedules hereto or thereto but not
otherwise defined therein will have the respective meanings assigned to such
terms in this Agreement.

 53
 

(b)   Seller will
have the right to deliver to Buyer at the Closing a supplement to
Schedules 6.6(b), 6.9(b), 6.10(a), 6.11(a) and 6.17(f) provided
for in Article VI (the “Closing Date Schedule
Supplement”) containing any matters occurring after the date hereof
(and permitted pursuant to the terms hereof) which, if occurring prior to the
date hereof, would have been required to be set forth or described on such
schedules. The Closing Date Schedule Supplement for Schedule 6.11(a) will
not be considered when determining whether the condition set forth in Section 10.2(a) or
any other condition to Closing has been satisfied. The Closing Date Schedule
Supplement will, however, for purposes of determining whether any Person is
entitled to indemnification pursuant to Section 13.1(a), be deemed to
amend such Schedules 6.6(b), 6.9(b), 6.10(a), 6.11(a) and 6.17(f) provided
for in Article VI to reflect the matters set forth in the Closing Date
Schedule Supplement.

Section 15.14   Governing Law.   This
Agreement will be governed by and construed in accordance with the internal
laws of the State of Delaware applicable to contracts made and to be performed
entirely within such State, without regard to the conflicts of law principles
of such State.

Section 15.15   Dispute Resolution.

(a)   In the
event that any dispute, claim or controversy (collectively, a “Dispute”) arises between Buyer and Seller with respect to or
relating to the Transaction, this Agreement or any other Transaction Document,
any provision hereof or thereof or the breach, performance, enforcement,
validity or invalidity hereof or thereof (except for any Dispute relating to
purchase price adjustments covered by Section 4.1), authorized
representatives of Buyer and Seller will meet to attempt a good faith
resolution of such Dispute within thirty (30) days after any party
notifies the others in writing of a Dispute. If the Dispute is not resolved
within thirty (30) days of such notification, any party may make a written
demand to the other commencing formal dispute resolution, which demand will
specify the nature of the Dispute. Within thirty (30) days of such written
demand, or such other time as Buyer and Seller may agree, the parties to the
Dispute will attempt in good faith to resolve such Dispute by mediation in
accordance with the then existing CPR Model Procedure for Mediation of Business
Disputes, promulgated by the CPR Institute for Dispute Resolution, New York
City.

(b)   If such
mediation is unsuccessful within ninety (90) days after commencement
thereof or such other time as Buyer and Seller may agree, such Dispute shall be
submitted to binding arbitration, conducted in accordance with the then
existing CPR Rules for Non-Administered Arbitration, before three
arbitrators. Such arbitration shall be initiated by written notice by either
Buyer or Seller to the other parties and each party to the Dispute shall
identify its selected arbitrator within fifteen (15) business days
following receipt of such notice by the non-initiating party. The arbitrators
selected by Buyer and Seller shall, within fifteen (15) business days of
their appointment, select a third neutral arbitrator. The arbitration shall be
conducted in the City of New York and shall be governed by the United States
Arbitration Act, 9 U.S.C. § 1-16, and judgment upon the award may be
entered by any court having jurisdiction thereof. The arbitrator shall have
case management authority and shall resolve the Dispute in a final award within
one hundred eighty (180) days from the commencement of the arbitration
action, subject to any extension of time thereof allowed by the arbitrators
upon good cause shown.

Section 15.16   Counterparts.   This
Agreement may be executed in separate counterparts, each such counterpart being
deemed to be an original instrument, and all such counterparts will together
constitute the same agreement.

Section 15.17   Specific Performance.   In
the event of any actual or threatened default in, or breach of, any of the
terms, conditions and provisions of this Agreement, the party or parties who
are or are to be thereby aggrieved will have the right of specific performance
and injunctive relief giving effect to its or their rights under such
Transaction Document, in addition to any and all other rights and remedies at
law or in equity, and all such rights and remedies will be cumulative. The
parties agree that any such breach or threatened breach would cause irreparable
injury, that the remedies at law for any such breach or 

 54
 

threatened breach,
including monetary damages, are inadequate compensation for any loss and that
any defense in any action for specific performance that a remedy at law would
be adequate is waived.

Section 15.18   Performance by Seller Subsidiary.   Seller
will cause to be performed and hereby guaranties the performance of all
actions, agreements and obligations set forth herein to be performed by Seller
Subsidiary.

Section 15.19   Interpretation.

(a)   The parties
have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement. Any
reference to any Federal, state, local, or foreign Law shall be deemed also to
refer to all rules and regulations promulgated thereunder, unless the
context requires otherwise. For the purposes of this Agreement, (i) words
in the singular shall be held to include the plural and vice
versa and words of one gender shall be
held to include the other gender as the context requires, (ii) the terms “hereof”,
“herein”, and “herewith” and words of similar import shall, unless otherwise
stated, be construed to refer to this Agreement as a whole and not to any
particular provision of this Agreement, (iii) the word “including” and
words of similar import when used in this Agreement shall mean “including,
without limitation” and (iv) the word “or” shall not be exclusive.

(b)   For
purposes of this Agreement, “Knowledge” or “aware
of” or a similar phrase with respect to Seller shall mean the knowledge of
Chief Executive Officer, Chief Financial Officer, Vice President—Business Operations
and Vice President—Human Resources of Seller and the individuals set forth on
Schedule 15.19(b) if any such Person is actually aware of such fact or
other matter or would be aware of such fact or matter after due inquiry; provided, however, that
with respect to the individuals set forth on Schedule 15.19(b), each such
individual’s Knowledge shall only apply with respect to the representations and
warranties contained in the Sections set forth opposite such individual’s name.

 55
 

IN WITNESS WHEREOF,
this Agreement has been duly executed and delivered by the duly authorized
officers of the parties on the date first hereinabove written.

	
  

  	
   

  	
  ROCKWELL COLLINS, INC.

  
	
   

  	
   

  	
  By

  	
  /s/ Kent L. Statler

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Kent L. Statler

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  General Manager, Services

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EVANS &
  SUTHERLAND

  COMPUTER CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
  /s/ James R. Oyler

  
	
   

  	
   

  	
   

  	
  Name

  	
  James R. Oyler

  
	
   

  	
   

  	
   

  	
  Title:

  	
  President and Chief Executive Officer

  
						

 

 56

EXHIBIT A

DEFINITIONS

For purposes of this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to
both the singular and the plural forms of the terms defined):

“Acquisition Proposal”
shall have the meaning set forth in Section 8.1(d)(ii).

“Action” means
any legal, administrative, governmental or regulatory proceeding or other
action, suit, proceeding, claim, arbitration, mediation, alternative dispute
resolution procedure, inquiry or investigation by or before any arbitrator,
mediator, court or other Governmental Entity.

“Affiliate”
means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by or under common control with such Person. For
purposes of the immediately preceding sentence, the term “control” (including,
with correlative meanings, the terms “controlling”, “controlled by” and “under
common control with”), as used with respect to any Person, means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through
ownership of voting securities, by contract or otherwise.

“AFRL” means the
United States Air Force Research Laboratory.

“AFRL Contract”
means the Technology Investment Agreement, Government Contract No. F41624-99-2-0001,
PR/ARPA Order No. FY8993-99-HA005, dated August 20, 1999,
between the U.S. Air Force, Air Force Material Command, Air Force Research
Laboratory, Human Effectiveness Directorate, Warfighter Training Research
Division and Seller, including Modifications 1-11 thereto.

“Agreement”
means this Asset Purchase Agreement, as the same may be amended, modified or
supplemented from time to time in accordance with its terms.

“Allocation Schedule”
shall have the meaning set forth in Section 4.2.

“Ancillary Agreements”
means, collectively, the Transition Agreement, the Intellectual Property
Agreement, the Laser Supply Agreement, the Laser Agreement, the Assignment and
Assumption Agreement and the Escrow Agreement.

“Assets” shall
have the meaning set forth in Section 2.1(a).

“Assignment and Assumption
Agreement” means the Assignment and Assumption Agreement dated as of
the Closing Date by and between Seller and Buyer in a form to be mutually
agreed upon by Seller and Buyer.

“Assumed Liabilities”
shall have the meaning set forth in Section 3.1.

“Balance Sheet”
shall mean the unaudited consolidated balance sheet of Seller and Seller
Subsidiary as of September 30, 2005, included in the financial statements
for the nine months ended September 30, 2005, together with the notes
thereto.

“Benchmark Amount”
shall have the meaning set forth in Section 4.1(c)(i).

“Business” means
the business engaged in by Seller and Seller Subsidiary (and their respective
predecessors) on and at all times prior to the Closing Date of researching,
developing, designing, manufacturing (including by means of procuring from
third parties components for), integrating, maintaining, testing, selling,
installing, certifying, modifying, repairing, servicing and supporting visual
systems (including computers, display systems and visual databases) for
commercial and military simulation applications, and activities related
thereto.

“Business Employee”
shall have the meaning set forth in Section 9.1(a).

 A-1
 

“Business Intellectual
Property” means all Intellectual Property that is Related to the
Business, excluding the Retained Intellectual Property.

“Business Software”
means all computer software (including all enterprise information systems)
related to or used in the Business, together with any rights, claims and
interests arising out of maintenance or service contracts relating thereto or
the breach of any express or implied warranty by the manufacturers or sellers
of any such assets or any component part thereof.

“Buyer” shall
have the meaning set forth in the preamble to this Agreement.

“Buyer Group”
shall have the meaning set forth in Section 13.1.

“Buyer Welfare Benefit
Plans” shall have the meaning set forth in Section 9.3(a).

“Buyer’s Letter”
shall have the meaning set forth in Section 4.1(b)(iii).

“CERCLA” means
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended to the date hereof.

“Change in Seller
Recommendation” shall have the meaning set forth in Section 8.1(h).

“Claims Made Policies”
shall have the meaning set forth in Section 8.9(a).

“Closing” shall
have the meaning set forth in Section 5.1.

“Closing Date”
shall have the meaning set forth in Section 5.1.

“Closing Date
Schedule Supplement” shall have the meaning set forth in Section 15.13(b).

“Closing Net Assets
Statement” shall have the meaning set forth in Section 4.1(b)(i).

“Closing Payment”
shall have the meaning set forth in Section 4.1(a).

“Code” means the
Internal Revenue Code of 1986, as amended from time to time.

“Confidentiality Agreement”
means the Confidentiality Agreement dated as of November 16, 2004 by and
between Buyer and Seller.

“Consents” means
consents, waivers, approvals, requirements, allowances, novations,
authorizations, declarations, filings, registrations and notifications.

“Continued Employees”
shall have the meaning set forth in Section 9.1(a).

“Contracts”
means, with respect to any Person, all agreements, contracts, obligations,
commitments and arrangements (whether written or oral and whether express or
implied) (a) to which such Person is a party, (b) under which such
Person has any rights, (c) under which such Person has any Liability or (d) by
which such Person, or any of the assets or properties owned or used by such
Person, is bound, including, in each case, all amendments, modifications and
supplements thereto.

“D&T” shall
have the meaning set forth in Section 4.1(b)(i).

“Damages” means
any and all losses, Liabilities, claims, damages, deficiencies, diminutions in
value, fines, payments, Taxes, Liens, costs and expenses whenever or however
arising and whether or not resulting from Third Party Claims (the costs and
expenses of any and all Actions or other legal matters; all amounts paid in
connection with any demands, assessments, judgments, settlements and
compromises relating thereto; interest and penalties with respect thereto; and
costs and expenses, including reasonable attorneys’, accountants’ and other
experts’ fees and expenses, incurred in investigating, preparing for or
defending against any such Actions or other legal matters or in asserting,
preserving or enforcing an Indemnitee’s rights hereunder).

 A-2
 

“Debentures”
means the 6% Convertible Subordinated Debentures due 2012 of Seller.

“Delivery Date”
shall have the meaning set forth in Section 4.1(b)(i).

“Dispute” shall
have the meaning set forth in Section 15.15(a).

“Effective Time”
shall have the meaning set forth in Section 5.1.

“End Date” shall
have the meaning set forth in Section 11.1(b).

“Environmental Laws”
means any and all applicable Laws and required Permits issued or promulgated by
any Governmental Entity relating to the environment or the protection or
preservation of human health or safety, as such human health or safety relates
to Hazardous Materials, the preservation or reclamation of natural resources,
or the treatment, storage, disposal, management, Release or threatened Release
of Hazardous Materials, in each case as in effect on the date hereof.

“Environmental Liabilities” means any and all Damages that
are incurred as a result of the presence, Release or threatened Release of
Hazardous Materials or a violation of Environmental Laws, including:

(i)    Damages
for investigation and/or remediation; and

(ii)   claims by
third parties for Damages for personal or bodily injury, or injury to property
or natural resources occurring upon or off of any of the real properties used
at any time in the Business or any Former Business related to the Business;

provided, however, that
any Damages for investigation and/or remediation shall be limited to the extent
such investigation or remediation is, or may reasonably be, required pursuant
to any Environmental Law to maintain or achieve environmental standards
consistent with industrial property use where the applicable Governmental
Entity would permit a more lenient standard of response or remediation if the
property is restricted to industrial use.

“ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to
time.

“ERISA Affiliate”
means any Person, trade or business which, together with Seller or Seller
Subsidiary, is or was treated as a single-employer within the meaning of Section 414(b),
(c), (m) or (o) of the Code or Section 4001(b) of ERISA.

“Escrow Agent”
means the Person selected by Buyer and Seller to act as escrow agent under the
Escrow Agreement.

“Escrow Agreement”
means the Escrow Agreement by and among Seller, Buyer and the Escrow Agent,
substantially in the form attached hereto as Exhibit B.

“Escrow Amount”
shall have the meaning set forth in Section 4.1(a).

“Escrow Fund”
shall have the meaning set forth in Section 4.1(a).

“Exchange Act”
means the Securities Exchange Act of 1934, as amended from time to time,
including the rules and regulations promulgated thereunder.

“Excluded Licenses”
shall have the meaning set forth in Section 6.6(b).

“Facilities”
means all Real Property set forth on Schedule 2.1(a)(i).

“Final Closing Net Assets
Statement” shall have the meaning set forth in Section 4.1(b)(ii).

“Financial Statements”
means the audited consolidated balance sheets of Seller and its subsidiaries as
of December 31, 2003 and 2004 and the related audited consolidated
statements of operations, comprehensive loss, stockholders’ equity and cash
flows of Seller and its subsidiaries for each of the fiscal 

 A-3
 

years ended December 31,
2003 and 2004, together with the reports of KPMG LLP thereon, included in
Seller’s Annual Report on Form 10-K for the year ended December 31,
2004, and the September 30, 2005 Balance Sheet and the related
consolidated statements of operations, comprehensive loss, stockholders’ equity
and cash flows of Seller and its subsidiaries for the nine months ended September 30,
2005, including in Seller’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2005 (collectively, with the footnotes
thereto).

“Foreign Governmental
Approval” shall have the meaning set forth in Section 8.3.

“Former Business”
means any corporation, partnership, entity, division, business unit, business,
assets, plant, product line, operations or contract (including any assets and
Liabilities comprising the same) that has been sold, conveyed, assigned,
transferred or otherwise disposed of or divested by Seller or any of its
subsidiaries (or any of their predecessors) or the operations, activities or
production of which has been discontinued, abandoned, completed or otherwise
terminated by Seller or any of its subsidiaries (or any of their predecessors).

“GAAP” means
United States generally accepted accounting principles as in effect on the date
of this Agreement.

“Governmental Entity”
means, in any jurisdiction, any (i) federal, state, local, foreign or
international government, (ii) court, arbitral or other tribunal, (iii) governmental
or quasi-governmental authority of any nature (including any political subdivision,
instrumentality, branch, department, official or entity) or (iv) agency,
commission, authority or body exercising, or entitled to exercise, any
administrative, executive, judicial, legislative, police, regulatory or taxing
authority or power.

“Hazardous Materials”
means those materials, substances or wastes that are regulated by, or form the
basis of liability under, any Environmental Law, including PCBs, pollutants,
solid wastes, explosive, radioactive, hazardous or toxic materials, substances,
wastes or chemicals, petroleum (including crude oil or any fraction thereof) or
petroleum distillates, asbestos or asbestos containing materials, materials
listed in 49 C.F.R. Section 172.101 and materials defined as hazardous
substances pursuant to Section 101(14) of CERCLA.

“HSR Act” means
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended from time
to time, including the rules and regulations promulgated thereunder.

“Indemnifying Party”
shall have the meaning set forth in Section 13.3(a).

“Indemnitee”
means any member of the Buyer Group or the Seller Group who or which may seek
indemnification under this Agreement.

“Indenture”
means the Indenture dated as of March 1, 1987 between Seller and Security
Pacific National Bank, as trustee.

“Insurance Policies”
shall have the meaning set forth in Section 6.20(a).

“Intellectual Property”
means all (a) inventions (whether patentable or unpatentable and whether
or not reduced to practice), all improvements thereto, and all patents
(including utility and design patents, industrial designs and utility models),
patent applications and patent and invention disclosures, and all other rights
of inventorship, worldwide, together with all reissuances, continuations,
continuations-in-part, divisions, revisions, supplementary protection
certificates, extensions and re-examinations thereof; (b) registered and
unregistered trademarks, service marks, trade names, domain names, trade dress,
logos and business, corporate and product names and slogans, worldwide, and registrations
and applications for registration thereof; (c) copyrights in copyrightable
works, and all other rights of authorship, worldwide, and all applications,
registrations and renewals in connection therewith; (d) mask works and
semiconductor chip rights, worldwide, and all applications, registrations and
renewals in connection 

 A-4
 

therewith; (e) trade
secrets and confidential business and technical information (including
confidential ideas, research and development, know-how, formulas, technology,
compositions, manufacturing and production processes and techniques, technical
data, engineering, production and other designs, plans, drawings, engineering
notebooks, industrial models, software specifications, financial, marketing and
business data, pricing and cost information, business and marketing plans and
customer and supplier lists and information); (f) computer and electronic
data, data processing programs, documentation and software, both source code
and object code (including flow charts, diagrams, descriptive texts and
programs, computer print-outs, underlying tapes, computer databases and similar
items), computer applications and operating programs; (g) rights to sue
for and remedies against past, present and future infringements of any or all
of the foregoing and rights of priority and protection of interests therein
under the Laws of any jurisdiction worldwide; (h) copies and tangible
embodiments of any or all of the foregoing (in whatever form or medium,
including electronic media); and (i) other proprietary, intellectual
property and other rights relating to any or all of the foregoing.

“Intellectual Property
Agreement” means the Intellectual Property Licensing Agreement dated
as of the Closing Date by and between Seller and Buyer, substantially in the
form attached hereto as Exhibit C.

“IRS” means the
Internal Revenue Service.

“Joint Venture”
means Quest Flight Training Limited, a company organized under the laws of
England and Wales.

“Joint Venture Guaranties”
means Seller’s obligations under the following agreements: (i) the Charge
Over Shares & Securities, dated July 20, 2000, between Seller,
Quadrant Group plc and Barclays Bank plc; (ii) the Operational Phase
Parent Company Guarantee, dated July 20, 2000, by Seller and Quadrant
Group plc to the Secretary of State for Defence; (iii) the Evans &
Sutherland Computer Corporation Operational Guarantee, dated July 20,
2000, from Seller in favour of Barclay’s Bank plc; and (iv) the Residual
Project Guarantee, dated July 20, 2000, from Seller and Quadrant Group plc
in favour of Barclay’s Bank plc.

“Knowledge”
shall have the meaning set forth in Section 15.19(b).

“Laser Agreement”
means the Laser Projection Systems Agreement dated as of the Closing Date by
and between Seller, Buyer and Rockwell Collins Simulation & Training
Solutions, LLC, an indirect wholly-owned subsidiary of Buyer, substantially in
the form attached hereto as Exhibit D.

“Laser Supply Agreement”
means the Laser Projection System Supply Agreement dated as of the Closing Date
by and between Seller and Buyer, substantially in the form attached hereto as Exhibit E.

“Laws” means all
laws, statutes, constitutions, treaties, rules, regulations, policies,
standards, directives, ordinances, codes, judgments, rulings, orders, writs,
decrees, stipulations, injunctions and determinations of all Governmental
Entities.

“Leased Premises”
shall have the meaning set forth in Section 6.9(b).

“Leases” means
all leases, subleases, licenses, and other contractual rights to occupy or use
with respect to real property, including, in each case, all amendments,
modifications and supplements thereto.

“Liabilities”
means any and all claims, debts, liabilities, obligations and commitments of
whatever nature, whether known or unknown, asserted or unasserted, fixed, absolute
or contingent, matured or unmatured, accrued or unaccrued, liquidated or
unliquidated or due or to become due, and whenever or however arising
(including those arising out of any Contract or tort, whether based on
negligence, strict liability or otherwise) and whether or not the same would be
required by GAAP to be reflected as a liability in financial statements or
disclosed in the notes thereto.

“Lien” means any
charge, claim, equitable interest, lien, encumbrance, option, proxy, pledge,
security interest, mortgage, right of first refusal, right of first offer,
retention of title agreement, defect of title or 

 A-5
 

restriction of any kind or
nature, including any restriction on use, voting, transfer, receipt of income
or exercise of any other attribute of ownership.

“Material Adverse Effect”
means any material adverse change in, or material adverse effect on, (a) the
financial condition, results of operations, assets or liabilities of the
Business; provided that any change or effect
resulting solely from any of the following, alone or in combination, shall not
be considered when determining whether a Material Adverse Effect has occurred
pursuant to this clause (a): (i) any actions expressly required or
expressly contemplated to be taken pursuant to this Agreement; (ii) the
loss of employees or customer relationships to the extent that Seller can
reasonably demonstrate that such loss was primarily due to the announcement or
existence of this Agreement or the transactions contemplated hereby; (iii) any
change in economic conditions generally or in the industries in which the
Business operates generally (which changes do not disproportionately affect the
Business in any material respect); (iv) any acts of war, terrorism or
natural catastrophe; (v) any changes in applicable Law or GAAP; and (vi) any
change in the market price of Seller’s common stock (provided
that the underlying cause or causes of any such change in market price may be
considered if not excluded pursuant to clauses (i)-(v) of this
definition); or (b) the ability of Seller or Seller Subsidiary to
consummate the Transaction.

“Material Contract”
shall have the meaning set forth in Section 6.10(a).

“Net Asset Amount”
shall have the meaning set forth in Section 4.1(c)(i).

“Net Assets”
shall have the meaning set forth in Section 4.1(b)(i).

“Notice of Disagreement”
shall have the meaning set forth in Section 4.1(b)(ii).

“Occurrence Basis Policies”
shall have the meaning set forth in Section 8.9(a).

“Owned Real Property”
shall have the meaning set forth in Section 6.9(a).

“Permits” means
all Consents, permits, certificates, variances, exemptions, franchises and
other approvals issued, granted, given, required or otherwise made available by
any Governmental Entity but excluding patents and applications and registrations
for Intellectual Property.

“Permitted Liens”
means (a) Liens for Taxes, assessments and other governmental charges, if
such Taxes, assessments or charges are not delinquent or are being contested in
good faith through appropriate proceedings; (b) statutory landlords’
liens, inchoate workmen’s, repairmen’s or other similar Liens arising or
incurred in the ordinary course of business consistent with past practices in
respect of obligations which are not overdue, de minimis title defects and
non-monetary encumbrances, which statutory landlords’ liens, workmen’s,
repairmen’s or other similar Liens, de minimis title defects and non-monetary
encumbrances do not, individually or in the aggregate, impair the continued
use, occupancy, value or marketability of title of the property to which they
relate or the Business, assuming that the property is used on substantially the
same basis as such property is currently being used in the Business; (c) any
rights of third parties under a Contract included in the Assets, except to the
extent any such Contract by its terms creates any lien or security interest in
favor of a third party, (d) any existing license to the Business
Intellectual Property or the Seller Non-Laser Intellectual Property or any
license to the Business Intellectual Property or the Seller Non-Laser
Intellectual Property granted in the ordinary course of business prior to the
Effective Time in accordance with the terms of this Agreement, except to the
extent any such license by its terms creates any lien or security interest in
favor of a third party; (e) any Liens in connection with any Seller line
of credit, provided that any such Liens shall be released no later than the
Effective Time; and (f) the exceptions set forth on Schedule A-1.

“Person” means
any individual, firm, partnership, joint venture, trust, corporation, limited
liability entity, unincorporated organization, estate or other entity
(including a Governmental Entity).

“Plans” shall
have the meaning set forth in Section 6.17(b).

 A-6
 

“Proxy Statement”
shall have the meaning set forth in Section 8.1(g).

“Purchase Price”
shall have the meaning set forth in Section 4.1(a).

“Real Property”
shall have the meaning set forth in Section 6.9(b).

“Related to the Business”
means related primarily to, used primarily in, arising primarily from, or held
primarily for use in, the Business, or otherwise necessary for the operation,
as presently conducted, of the Business.

“Release” shall
have the meaning set forth in Section 101(22) of CERCLA.

“Representatives”
means, with respect to any Person, such Person’s Affiliates, directors,
officers, employees, agents, consultants, advisors and other representatives,
including legal counsel, accountants and financial advisors.

“Required Seller Vote”
means the affirmative vote of the holders of a majority of the outstanding
shares of Seller’s capital stock to approve the Transaction as required by the
Revised Business Corporation Act of the State of Utah.

“Retained Assets”
shall have the meaning set forth in Section 2.1(b).

“Retained Employees”
shall have the meaning set forth in Section 9.1(a).

“Retained Intellectual
Property” shall have the meaning set forth in Section 2.1(b)(x).

“Retained Liabilities”
shall have the meaning set forth in Section 3.2.

“SEC” means the
Securities and Exchange Commission.

“Seller” shall
have the meaning set forth in the preamble to this Agreement.

“Seller Affiliated Group”
shall have the meaning set forth in Section 6.5(a).

“Seller Group”
shall have the meaning set forth in Section 13.2.

“Seller Non-Laser
Intellectual Property” shall have the meaning set forth in the
Intellectual Property Agreement.

“Seller Recommendation”
shall have the meaning set forth in Section 8.1(h).

“Seller Retirement Plans”
shall have the meaning set forth in Section 9.2(a).

“Seller Savings Plan”
shall have the meaning set forth in Section 9.2(b).

“Seller Stockholders
Meeting” shall have the meaning set forth in Section 8.1(h).

“Seller Subsidiary”
means Evans & Sutherland Computer Limited, a company organized under
the laws of England and Wales.

“Seller Welfare Benefit
Plans” shall have the meaning set forth in Section 9.3(a).

“Seller’s Flexible Spending
Plan” shall have the meaning set forth in Section 9.4.

“September 30, 2005
Balance Sheet” means the unaudited consolidated balance sheet of
Seller and its subsidiaries as of September 30, 2005, including in Seller’s
Quarterly Report on Form 10-Q for the quarter ended September 30,
2005.

“Superior Proposal”
shall have the meaning set forth in Section 8.1(d)(iv).

“Tax Returns”
shall have the meaning set forth in Section 6.5(a).

 A-7
 

“Taxes” means (a) all
taxes, charges, duties, fees, levies or other assessments, including income,
excise, property, sales, use, gross receipts, recording, insurance, value
added, profits, license, withholding, payroll, employment, net worth, capital
gains, transfer, stamp, social security, environmental, occupation and
franchise taxes, imposed by any Governmental Entity, and including any
interest, penalties and additions attributable thereto; (b) any Liability
for the payment of any amounts described in clause (a) as a result of
being a member of an affiliated, consolidated, combined, unitary or similar
group or as a result of transferor or successor Liability or by operation of
Law; and (c) any Liability for the payment of any amounts as a result of
being a party to any tax sharing agreement or as a result of any express or
implied obligation to indemnify any other Person with respect to the payment of
any amounts of the type described in clauses (a) and (b).

“Third Party Claim”
shall have the meaning set forth in Section 13.3(a).

“Transaction”
means the transactions contemplated by this Agreement.

“Transaction Documents”
means this Agreement, the Ancillary Agreements and all other instruments, certificates
and documents delivered or required to be delivered by Buyer, Seller, any
Seller Subsidiary or any Affiliate of any thereof pursuant to this Agreement.

“Transfer Regulations”
means the Transfer of Undertakings (Protection of Employment) Regulations 1981.

“Transition Agreement” means the Transition Agreement dated
as of the Closing Date by and between Seller and Buyer in a form to be mutually
agreed upon by Seller and Buyer.

“U.K. Bank Accounts and
Lockboxes” shall have the meaning set forth in Section 8.11(a).

“U.K. Business”
shall have the meaning set forth in Section 5.5(a).

“UK Employees”
shall have the meaning set forth in Section 6.17(f).

“UK Pension Plan”
shall have the meaning set forth in Section 9.2(d).

“Unaffiliated Firm”
shall have the meaning set forth in Section 4.1(b)(iii).

“VAT” means
United Kingdom value added tax.

“WARN Act” means
the Worker Adjustment and Retraining Notification Act of 1988.

 A-8

Exhibit D

LASER PROJECTION SYSTEMS AGREEMENT

BETWEEN

ROCKWELL COLLINS, INC.

ROCKWELL COLLINS SIMULATION & TRAINING
SOLUTIONS, LLC

AND

EVANS & SUTHERLAND COMPUTER CORPORATION

                                                                                                                                                                                                                 

TABLE
OF CONTENTS

	
  ARTICLE 1 -

  	
   

  	
  SUBJECT MATTER AND
  CONTRACT PRICE

  	
   

  	
  1

  
	
  ARTICLE 2 -

  	
   

  	
  DESCRIPTION OF LASER PROJECTION SYSTEMS

  	
   

  	
  1

  
	
  ARTICLE 3 -

  	
   

  	
  DELIVERY

  	
   

  	
  2

  
	
  ARTICLE 4 -

  	
   

  	
  QUALITY ASSURANCE, TESTING AND ACCEPTANCE OF WORK

  	
   

  	
  2

  
	
  ARTICLE 5 -

  	
   

  	
  Penalty for late delivery

  	
   

  	
  3

  
	
  ARTICLE 6 -

  	
   

  	
  Modifications and
  improvements

  	
   

  	
  4

  
	
  ARTICLE 7 -

  	
   

  	
  GENERAL LICENSE

  	
   

  	
  5

  
	
  ARTICLE 8 -

  	
   

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

  	
   

  	
  10

  
	
  ARTICLE 9 -

  	
   

  	
  INDEMNITY

  	
   

  	
  10

  
	
  ARTICLE 10 -

  	
   

  	
  TERMINATION

  	
   

  	
  11

  
	
  ARTICLE 11 -

  	
   

  	
  ASSIGNMENT

  	
   

  	
  11

  
	
  ARTICLE 12 -

  	
   

  	
  NOTICES

  	
   

  	
  11

  
	
  ARTICLE 13 -

  	
   

  	
  Governing Law; Consent to
  Jurisdiction

  	
   

  	
  13

  
	
  ARTICLE 14 -

  	
   

  	
  INVALID PROVISIONS

  	
   

  	
  13

  
	
  ARTICLE 15 -

  	
   

  	
  software license

  	
   

  	
  13

  
	
  ARTICLE 16 -

  	
   

  	
  Interpretation

  	
   

  	
  13

  
	
  ARTICLE 17 -

  	
   

  	
  Guaranty

  	
   

  	
  14

  
	
  ARTICLE 18 -

  	
   

  	
  mISCELLANEOUS

  	
   

  	
  14

  

 

 ii

LASER PROJECTION SYSTEMS AGREEMENT

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

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

ARTICLE
1 - SUBJECT MATTER AND CONTRACT PRICE

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

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

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

ARTICLE
2 - DESCRIPTION OF LASER PROJECTION SYSTEMS

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

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

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

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

 1
 

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

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

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

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

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

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

ARTICLE 3 - DELIVERY

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

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

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

ARTICLE
4 - QUALITY ASSURANCE, TESTING AND ACCEPTANCE OF WORK

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

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

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

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

 2
 

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

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

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

ARTICLE 5 - PENALTY FOR LATE DELIVERY

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

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

 3
 

ARTICLE
6 - Modifications and improvements

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

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

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

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

 4

ARTICLE 7 -  GENERAL
LICENSE

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

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

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

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

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

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

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

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

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

7.2        Laser Intellectual Property
License.

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

 5
 

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

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

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

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

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

 6
 

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

7.3          Enforcement/Other
Restrictions.

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

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

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

 7
 

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

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

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

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

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

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

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

7.5          Documentation and Laser
Technology Escrow.

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

 8
 

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

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

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

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

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

 9

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

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

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

ARTICLE 9 - INDEMNITY

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

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

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

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

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

 10
 

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

ARTICLE 10 - TERMINATION

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

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

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

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

ARTICLE 11 - ASSIGNMENT

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

ARTICLE 12 - NOTICES

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

 11
 

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

	
  

  	
  (a)

  	
   

  	
  If to Parent or Buyer:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Rockwell Collins, Inc.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  400 Collins Road N.E.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Cedar Rapids, Iowa 52498

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
  Attention:

  	
   

  	
  Gary R. Chadick, Esq.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Senior Vice President,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  General Counsel and

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (319) 295-3599

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
   

  	
  grchadic@rockwellcollins.com

  

 

	
  

  	
   

  	
   

  	
  and to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Rockwell Collins
  Simulation &

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Training Solutions, LLC

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  22626 Sally Ride Drive

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Sterling, Virginia 20164

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
  Attention:

  	
   

  	
  Tony Syme

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (703) 234-2103

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
   

  	
  jasyme@rockwellcollins.com

  

 

	
  

  	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Chadbourne &
  Parke LLP

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  30 Rockefeller Plaza

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  New York, New York 10112

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
  Attention:

  	
   

  	
  Peter R. Kolyer, Esq.

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (212) 541-5369

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
   

  	
  pkolyer@chadbourne.com

  

 

	
  

  	
  (b)

  	
   

  	
  If to Seller:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Evans & Sutherland Computer Corporation

  
	
   

  	
   

  	
   

  	
  600 Komas Drive

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Salt Lake City, Utah 84108

  	
   

  	
   

  

 

	
  

  	
   

  	
   

  	
  Attention:

  	
   

  	
  David Bateman

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (801) 588-4511

  
	
   

  	
   

  	
   

  	
  E-mail:

  	
   

  	
  dbateman@es.com

  

 

	
  

  	
   

  	
   

  	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Skadden, Arps, Slate,
  Meagher & Flom LLP

  
	
   

  	
   

  	
   

  	
  525 University Avenue, Suite 1100

  
	
   

  	
   

  	
   

  	
  Palo Alto,
  California 94301

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Attention:

  	
   

  	
  Marc R. Packer

  
	
   

  	
   

  	
   

  	
  Telecopy:

  	
   

  	
  (650) 470-4570

  
	
   

  	
   

  	
   

  	
  Email:

  	
   

  	
  mpacker@skadden.com

  
								

 

 12
 

ARTICLE 13 -
GOVERNING LAW; CONSENT TO JURISDICTION

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

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

ARTICLE 14 - INVALID PROVISIONS

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

ARTICLE 15 - SOFTWARE LICENSE

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

ARTICLE 16 - INTERPRETATION

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

 13
 

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

ARTICLE 17 - GUARANTY

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

ARTICLE 18 - MISCELLANEOUS

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

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

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

	
  ROCKWELL COLLINS, INC.

  	
   

  	
  ROCKWELL COLLINS SIMULATION & TRAINING
  SOLUTIONS, LLC

  
	
   

  	
   

  	
   

  
	
  Name / Title

  	
   

  	
  Name / Title

  
	
   

  	
   

  	
   

  
	
  Signature

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
  Date

  
	
  EVANS &
  SUTHERLAND

  	
   

  	
   

  
	
  COMPUTER
  CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
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 14
 

Attachment 1

Fixed-Based Laser Projection System Specifications

 15
 

Attachment 2

Motion-Based Laser Projection System Specifications

 16

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00097-of-00352.parquet"}]]