Document:

EX-10.(n)

 Exhibit 10(n) 

SIXTH AMENDMENT TO CREDIT AGREEMENT AND WAIVER 

This Sixth Amendment to Credit Agreement and Waiver (this “Amendment”) is made and entered into as of
September 6, 2013 by and between VIDEO DISPLAY CORPORATION, a Georgia corporation (“Parent”), LEXEL IMAGING SYSTEMS, INC. (“Lexel”), Z-AXIS, INC. (“Z-Axis”), TELTRON TECHNOLOGIES, INC.
(“Teltron”) AYDIN DISPLAYS, INC. (“Aydin” and together with Lexel, Z-Axis and Teltron, collectively, the “Subsidiaries”; and the Subsidiaries, together with Parent, collectively, the “Borrowers”)
and COMMUNITY & SOUTHERN BANK, as administrative agent (the “Agent”), the successor administrative agent to PNC Bank, National Association (as successor to RBC Bank USA) (“PNC”)), COMMUNITY & SOUTHERN
BANK (“CSB”), as sole lender (individually the “Lender” and collectively with any other lender becoming a party to the herein defined “Credit Agreement”, the “Lenders”); 

W I T N E S S E T H: 

WHEREAS, the Borrowers, FOX INTERNATIONAL, LTD., INC. (“Fox”), the Agent and the “Lenders have
made and entered into that certain Credit Agreement, dated as of December 23, 2010, as amended by that certain Amendment to Credit Agreement and Consent, dated as of May 26, 2011 (the “First Amendment”), as amended by that
certain Amendment to Credit Agreement and Consent, dated as of July 26, 2011 (the “Second Amendment”), as amended by that certain Third Amendment to Credit Agreement (the “Third Amendment”), dated as of September 1,
2011, as amended by that certain Fourth Amendment to Credit Agreement and Consent (the “Fourth Amendment”), dated as of January 17, 2012, as amended by that certain Fifth Amendment to Credit Agreement, Waiver and Consent (the
“Fifth Amendment”), dated as of May 22, 2012 (the “Original Credit Agreement” and, as amended hereby, the “Credit Agreement”; capitalized terms used herein and not otherwise defined shall have the meanings ascribed
thereto in the Credit Agreement); 
 WHEREAS, pursuant to the Original Credit Agreement, the Agent and Lenders have
extended to the Borrowers, Fox a credit facility consisting of (i) the Aggregate Revolving Loan Commitment in the original principal amount of up to $17,500,000 and subsequently reduced to $15,000,000 pursuant to the First Amendment (and
including a $1,000,000 Swingline Loan sub-facility added pursuant to the Second Amendment), (ii) the Term Loan A Commitment in the original principal amount of up to $3,500,000, and (iii) the Term Loan B Commitment in the original
principal amount of up to $3,000,000; 
 WHEREAS, Fox has been released from the Original Credit Agreement and Loan
Documents pursuant to the First Amendment; 
 WHEREAS, certain Defaults or Events of Default have occurred and are
continuing; 
 WHEREAS, pursuant to an Asset Purchase Agreement, dated as of August 15, 2013, among Parent,
Aydin and Sparton Aydin, LLC (“Purchaser”) (the “Aydin Purchase Agreement”), Aydin has sold substantially all of its assets to Sparton as of August 30, 2013 (the “Aydin Sale”) and PNC, as the predecessor Agent,
used the net proceeds thereof ($13,600,000) to pay certain 

 
expenses of PNC and to repay the Revolving Loan Commitment, the Swingline Loan and Term Loan B Commitment to $0, and to reduce the outstanding principal balance of the Term Loan A Commitment to
$1,181,793.53 as of August 30, 2013; 
 WHEREAS, after such application of the proceeds of the Aydin Sale, CSB
purchased all of the interests of PNC, the other lender under the Credit Agreement, and CSB was also appointed as the successor “Agent” to PNC under the Credit Agreement, such that CSB is now both the Agent and the sole lender under the
Credit Agreement; 
 WHEREAS, CSB, as both the successor Agent and the sole Lender, and the Borrowers wish to amend
the Credit Agreement in order to terminate the Revolving Loan Commitment, the Swingline Commitment, and the Term Loan B Commitment, (b) to confirm and re-allocated the Aydin Payment such that the outstanding principal balance of the Term Loan A
is $1,350,000 as of the date hereof, (c) to amend certain provisions of the Original Credit Agreement in connection therewith, and (d) to waive the existing Events of Default identified herein; 

NOW THEREFORE, for and in consideration of the foregoing and for ten dollars ($10.00) and other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE 1. 

Amendments to Credit Agreement 

Section 1.1 Revolving Loan Commitment; Swingline Commitment. The Revolving Loan Commitment and the
Swingline Loan Commitment are hereby terminated and no longer available for borrowings. 
 Section 1.2 Term Loan
B Commitment. The Term Loan B Commitment is hereby terminated and no longer available for borrowing. 

Section 1.3 Term Loan A Amount. The outstanding principal balance of the Term Loan A after application of
the Aydin sale proceeds by the predecessor Agent was $1,181,793.53. CSB, as the successor Agent and the sole Lender, agree to rebate and re-allocate $168,206.47 of the Aydin Sale proceeds for the Borrowers’ account such that the outstanding
principal balance of the Term Loan A, after such rebate and re-allocation is $1,350,000; Borrower acknowledge and agree that CSB shall deduct from the rebated and re-allocated portion the outstanding fees and expenses payable by Borrowers to CSB in
connection herewith and with its purchase of the Loans from PNC, with the balance after such deductions deposited to Parent’s account at CSB. 

Section 1.4 Interest Rate Adjustment. Notwithstanding anything to the contrary in the Credit Agreement or
any other Loan Document, interest shall accrue on the Term Loan B at an annual rate equal to the Adjusted LIBOR Rate, plus four (4.00) percentage points; provided, in no event shall the Adjusted LIBOR Rate be less than one
(1.00) percentage point. 

  
 2 

 Section 1.5 Suspension of Regularly Term Loan A Principal
Payments. Notwithstanding anything to the contrary in the Credit Agreement or any other Loan Document, the regularly scheduled monthly principal payments due under the Term Loan A pursuant to Section 2.05(a) shall be suspended until
November 30, 2013; provided, nothing herein shall be construed as suspending any required prepayments of principal on the Term Loan A, whether due pursuant to the terms of the Original Credit Agreement or this Amendment. 

Section 1.6 Term Loan B Maturity Date. The definition of “Term Loan Maturity Date” is hereby
amended to read as follows: 
 “Term Loan Maturity Date” means the earlier of (i) December 1, 2013 or
(ii) the sale of any of the stock, or all or any material portion of the assets, of any Borrower; provided, however, that if such date is not a Business Day, the Term Loan Maturity Date shall be the immediately preceding Business Day. 

Section 1.7 Working Capital Adjustment; Term Loan A Prepayment. The Parent and Aydin hereby grant to Agent
and the Lenders a Lien on all monies due to the Parent and/or Aydin from the Purchaser under the Aydin Purchase Agreement, including (i) payments with respect the working capital adjustment holdback under Section 2.8 of the Aydin Purchase
Agreement, any earnout payments due to Aydin and/or Parent under Section 2.13 of the Aydin Purchase Agreement, and any other funds released to Aydin and/or Parent from the “Holdback” under the Aydin Purchase Agreement. The Parent and
Aydin shall hold any such payments in trust for the Agent and the Lenders and, as soon as practical after receipt of any such payment(s), shall promptly pay the same over to the Agent for application to the outstanding principal balance of the Term
Loan A. 
 Section 1.8 Suspension of Financial Covenants. Notwithstanding anything to the contrary in the
Credit Agreement or in any other Loan Document, Borrowers shall not be required to comply with the financial covenants in Section 6.15 from the date hereof through December 1, 2013. 

ARTICLE 2. 

Acknowledgment of Defaults 

Section 2.1 Acknowledgment of Default. Events of Default (the “Existing Defaults”) have occurred
under Section 8.01(b) the Credit Agreement as a result of the Borrowers’ failure to comply with Section 6.15(c) of the Credit Agreement (Senior Funded Debt to EBITDA Ratio) for the fiscal quarter ending November 30,
2012, February 28, 2013, May 31, 2013 and August 31, 2013. 
 Section 2.2
Acknowledgments. The execution, delivery and performance of this Amendment by the Agent and the Lenders and the acceptance by the Agent and the Lenders of performance of each of the Borrowers and the Guarantor hereunder and under the other
Loan 

  
 3 

 
Documents executed and delivered in connection herewith (a) shall not constitute a waiver or release by the Agent and the Lenders of any Default or Event of Default that may now or hereafter
exist under the Loan Documents, except for the waiver of the Existing Defaults to the extent provided herein, (b) shall not constitute a novation of the Loan Documents, as it is the intent of the parties to modify the Loan Documents as
expressly set out herein, and (c) except as expressly provided in this Amendment, shall be without prejudice to, and is not a waiver or release of, the Agent’s and the Lenders’ rights at any time in the future to exercise any and all
rights conferred upon the Agent and the Lenders by the Loan Documents or otherwise at law or in equity, including but not limited to the right to institute foreclosure proceedings against the Collateral and/or institute collection, foreclosure or
arbitration proceedings against the Borrowers and/or the Guarantor and/or to exercise any right against any other Person not a party to this Amendment. 

ARTICLE 3. 
 Waivers

 Section 3.1 Waiver Covenant. Upon satisfaction of the conditions specified hereinafter in
Article 5, the Agent and the Lenders shall waive the Existing Defaults and shall not because of the Existing Defaults, 

3.1.1 accelerate the Term Loan A or demand accelerated payment of the same; 

3.1.2 require the payment of interest at the Default Rate set forth in the Loan Documents; or

 3.1.3 exercise any other remedies under the Credit Agreement or under the other Loan
Documents. 
 The Agent’s and the Lenders’ waiver of the Existing Defaults from such actions, subject to the terms
and conditions of this Amendment, is herein referred to as the “Waiver Covenant”. The effectiveness of each term of the Waiver Covenant is expressly conditioned on the strict satisfaction of each and every condition set forth in Article
5 of this Amendment. The Waiver Covenant applies solely to the Existing Defaults and to no other Defaults or Events of Default, whether now existing or hereinafter arising and whether now known to the Agent, the Lenders, or the Borrowers and/or
the Guarantor. 
 Section 3.2 Continued Compliance With the Loan Documents. Notwithstanding this
Amendment, each of Borrowers and Guarantor shall continue to perform and comply strictly with each and every provision of the Loan Documents (as modified hereby), except for the Existing Defaults, which are being waived by the Agent and the Lenders
pursuant to this Amendment (but only upon strict satisfaction of the conditions set forth in Article 5 hereof). 

  
 4 

 ARTICLE 4. 

Release; Waivers by Borrowers and Guarantor 

Section 4.1 Release. In consideration of the accommodations and concessions made by the Bank pursuant to
this Amendment, each of the Borrowers and Guarantor does hereby irrevocably remise, release, acquit, satisfy and forever discharge each of the Agent and the Lenders, and their respective successors and assigns, all of their respective affiliates and
subsidiaries, past, present and future, and all of their respective shareholders, officers, directors, employees, agents, attorneys, representatives and participants, from any and all manner of debts, accountings, bonds, warranties, representations,
covenants, promises, contracts, controversies, agreements, claims, executions, counterclaims, demands and causes of action of any nature or type whatsoever, whether at law or in equity, whether known or unknown, either now accrued or hereafter
maturing, which it now has or hereafter can, shall or may have by reason of any matter, claim or action arising through the date hereof out of or relating to the administration, funding or existence of the Obligations and/or the Loan Documents. 

Section 4.2 Waivers. Each of the Borrowers and the Guarantor acknowledges and agrees that each of the Agent
and the Lenders has all rights and remedies of a “secured party” under the UCC and all rights and remedies provided by applicable law. Each of the Borrowers and the Guarantor waives any additional right to notice of any Default or Event of
Default or opportunity to cure any Default or Event of Default. Notwithstanding anything to the contrary in the Credit Agreement, any security agreement, any guaranty agreement or any other Loan Document to which it is a party, each of the Borrowers
and the Guarantor hereby irrevocably waives (i) any right to notification required under UCC Section 11-9-611 of the disposition of any “Collateral” (as defined in the Credit Agreement and as defined in any other Loan Document)
or any other collateral in which the Borrowers or the Guarantor has granted (or may hereafter grant) the Agent and/or the Lenders a Lien, (ii) any right to redeem, under UCC Section 11-9-623, any “Collateral” (as defined in the
Credit Agreement and as defined in any other Loan Document) or any other collateral in which the Borrowers or the Guarantor has granted (or may hereafter grant) the Agent and/or the Lenders a Lien, and (iii) any other right which the Borrowers
and the Guarantor may waive under the UCC (whether before or after default). Any notice required to be given by the Agent and/or the Lenders to the Borrowers and/or the Guarantor (which may not otherwise be waived under the UCC), may be given by the
Agent and the Lenders in the shortest time period permitted by the UCC, notwithstanding any provision of the Loan Documents requiring a longer notice period; where “reasonable” notice is required under the UCC and cannot be waived, 10
days’ notice shall be deemed “reasonable” notice for purposes of the Credit Agreement and each other Loan Document (except for circumstances described in UCC Section 11-9-611(d)). 

Section 4.3 Waiver of Trial by Jury. IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A
JURY TRIAL, THE PARTIES HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT OR 

  
 5 

 
TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY HERETO MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

Section 4.4 Relief From Stay. (a) In entering into this Amendment, each of the Borrowers, the
Guarantor, the Agent and the Lenders hereby stipulate, acknowledge and agree that each of the Agent and the Lenders gave up valuable rights and agreed to forbear from exercising legal remedies available to it in exchange for the promises,
representations, acknowledgments and warranties of each of the Borrowers and the Guarantor as contained herein, and that each of the Agent and the Lenders would not have entered into this Amendment but for such promises, representations,
acknowledgments, agreements, and warranties, all of which have been accepted by the Agent and the Lenders in good faith, the breach of which by the Borrowers and/or the Guarantor in any way, at any time, now or in the future, would admittedly and
confessedly constitute cause for dismissal of any such bankruptcy petition pursuant to 11 U.S.C. § 1112(b). 
 (b) As additional
consideration for the Agent and the Lenders agreeing to waive and/or forbear from immediately enforcing its rights and remedies under this Amendment and in the Loan Documents, including but not limited to the institution of foreclosure proceedings,
each of the Borrowers and the Guarantor agrees that in the event a bankruptcy petition under any Chapter of the Bankruptcy Code (11 U.S.C. §101, et seq.) is filed by or against the Borrowers and/or the Guarantor at any time after the execution
of this Amendment, each of the Agent and the Lenders shall be entitled to the immediate entry of an order from the appropriate bankruptcy court granting the Agent and the Lenders complete relief from the automatic stay imposed by §362 of the
Bankruptcy Code (11 U.S.C. §362) to exercise its foreclosure and other rights, including but not limited to obtaining a foreclosure judgment and foreclosure sale, upon the filing with the appropriate court of a motion for relief from the
automatic stay with a copy of this Amendment attached thereto. Each of the Borrowers and the Guarantor specifically agrees (i) that upon filing a motion for relief from the automatic stay, each of the Agent and the Lenders shall be entitled to
relief from the stay without the necessity of an evidentiary hearing and without the necessity or requirement of the Agent and the Lenders to establish or prove the value of the Collateral, the lack of adequate protection of its interest in the
Collateral, or the lack of equity in the Collateral; (ii) that the lifting of the automatic stay hereunder by the appropriate bankruptcy court shall be deemed to be “for cause” pursuant to §362(d)(1) of the Bankruptcy Code (11
U.S.C. §362(d)(1)); (iii) that it will not directly or indirectly oppose or otherwise defend against the Agent’s and/or the Lenders’ efforts to gain relief from the automatic stay, and (iv) each of the Agent and the Lenders
shall be entitled to recover from the Borrowers and the Guarantor all of the Agent’s and the Lenders’ costs and expenses (including the Bank’s attorneys fees) incurred in connection with any bankruptcy or insolvency proceeding of any
of them. This provision is not intended to preclude the Borrowers or the Guarantor from filing for protection under any Chapter of the Bankruptcy Code. The remedies prescribed in this paragraph are not exclusive and shall not limit the Agent’s
and the Lenders’ rights under the Credit Agreement or under any other Loan Document or under any law. 

  
 6 

 (c) All of the above terms and conditions have been freely bargained for and are all supported by
reasonable and adequate consideration and the provisions herein are material inducements for the Agent and the Lenders entering into this Amendment. 

ARTICLE 5. 

Conditions to Effectiveness 

Section 5.1 Conditions. The amendments to the Original Credit Agreement and the Waiver set forth in this
Amendment shall become effective as of date (the “Effective Date”) after all of the conditions set forth in this Article hereof shall have been satisfied to Agent’s and Lenders’ sole discretion. 

Section 5.2 Execution of Amendment. The Borrowers shall have executed and delivered this Amendment. 

Section 5.3 Ordway Guaranty. Guarantor shall have executed and delivered a full and unconditional Guaranty
agreement in favor of the Agent and the Lenders, which confirmation shall be in form and substance satisfactory to the Agent and the Lenders. 

Section 5.4 Representations and Warranties. (a) As of the Effective Date, the representations and
warranties set forth in the Credit Agreement, and the representations and warranties set forth in each of the Loan Documents, shall be true and correct in all material respects; (b) as of the Effective Date, no Defaults or Events of Default
shall have occurred and be continuing; and (c) the Agent and the Lenders shall have received from the Borrower a certificate dated the Effective Date, certifying the matters set forth in subsections (a) and (b) of this Section, which
certificate shall be in form and substance satisfactory to the Agent and the Lenders. 
 Section 5.5 Term Loan A
Repayment. The Revolving Loan Commitment, the Swingline Commitment and the Term Loan B Commitment shall have been fully repaid and terminated; and the principal balance of the Term Loan A shall be not more than $1,350,000. 

Section 5.6 Lender Fee. The Borrowers shall have paid to the Agent, for the account of CSB, a structuring
fee of $20,000, which fee has been fully earned and is non-refundable in its entirety (Borrowers acknowledge and agree CSB may withhold such amounts from the rebated and re-allocated portion of the Term Loan A). 

Section 5.7 Expenses. The Borrowers shall have paid all costs and expenses of the Agent and the Lenders in
connection with the transactions contemplated hereby, including fees and expenses of CSB’s counsel ($10,325), the $3,500 transfer fee to PNC, accrued and unpaid interest on the Term Loan A principal balance to the date hereof ($2,068.14) and
the other out-of-pocket expenses of the Agent and the Lenders (the Borrowers acknowledge and agree CSB may withhold such amounts from the rebated and re-allocated portion of the Term Loan A). 

  
 7 

 ARTICLE 6. 

Miscellaneous 

Section 6.1 Entire Agreement; No Novation or Release. This Amendment, together with the Loan Documents, as
in effect on the Effective Date, reflects the entire understanding with respect to the subject matter contained herein, and supersedes any prior agreements, whether written or oral. This Amendment is not intended to be, and shall not be deemed or
construed to be, a satisfaction, novation or release of the Credit Agreement or any other Loan Document. Except as expressly amended hereby, all representations, warranties, terms, covenants and conditions of the Credit Agreement and the other Loan
Documents shall remain unamended and unwaived and shall continue in full force and effect. 
 Section 6.2 Fees
and Expenses. All fees and expenses of the Agent and Lenders incurred in connection with the issuance, preparation and closing of the transactions contemplated hereby shall be payable by the Borrowers promptly upon the submission of the bill
therefor. If the Borrowers shall fail to promptly pay such bill, the Agent and Lenders are authorized to pay such bill by debiting the Borrowers’ accounts with the Agent and Lenders to pay the same. 

Section 6.3 Choice of Law; Successors and Assigns. This Amendment shall be construed and enforced in
accordance with and governed by the internal laws (as opposed to the conflicts of laws provisions) of the State of Georgia. This Amendment shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and
assigns. This Amendment may be signed in multiple counterparts. 

  
 8 

 WITNESS the hand and seal of each of the undersigned as of the date first written above. 

 

			
	 Agent:

	
	 COMMUNITY & SOUTHERN BANK, as Agent, as successor administrative agent to PNC Bank, National Association (as successor to RBC Bank
USA))

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

	
	 CSB:

	
	 COMMUNITY & SOUTHERN BANK, as sole Lender

		
	 By:
	 	  

	 Name:
	 	  

	 Title:
	 	  

  
 9 

 
			
	 BORROWERS:

	
	 VIDEO DISPLAY CORPORATION

		
	 By:
	 	  

		 	 Ronald D. Ordway, Chief Executive Officer

	
	 LEXEL IMAGING SYSTEMS, INC.

		
	 By:
	 	  

		 	 Ronald D. Ordway, Chief Executive Officer

	
	 Z-AXIS, INC.

		
	 By:
	 	  

		 	 Ronald D. Ordway, Chief Executive Officer

	
	 TELTRON TECHNOLOGIES, INC.

		
	 By:
	 	  

		 	 Ronald D. Ordway, Chief Executive Officer

	
	 AYDIN DISPLAYS, INC.

		
	 By:
	 	  

		 	 Ronald D. Ordway, Chief Executive Officer

  
 10EX-10.(o)

 Exhibit 10(o) 

STOCK PURCHASE AGREEMENT 

AMONG 
 VIDEO DISPLAY
CORPORATION, 
 Z-AXIS HOLDINGS, INC 

AND 
 Z-AXIS, INC

 October 3, 2013 

 TABLE OF CONTENTS 

 

									
	 Section 1 – Definitions
	  	 	1	  
		
	 Section 2 – Basic Transaction
	  	 	4	  
		  	 (a)
	  	 Purchase and Sale of Shares
	  	 	4	  
		  	 (b)
	  	 No Assumption of Liabilities
	  	 	4	  
		  	 (c)
	  	 Purchase Price
	  	 	4	  
		  	 (d)
	  	 Note Payable
	  	 	4	  
		  	 (e)
	  	 The Closing
	  	 	4	  
		
	 Section 3 – Representations and Warranties of the Sellers
	  	 	4	  
		  	 (a)
	  	 Organization of the Sellers
	  	 	5	  
		  	 (b)
	  	 Authorization of Transaction
	  	 	5	  
		  	 (c)
	  	 Noncontravention
	  	 	5	  
		  	 (d)
	  	 Brokers’ Fees
	  	 	5	  
		  	 (e)
	  	 Title to Assets
	  	 	5	  
		  	 (f)
	  	 Tangible Assets
	  	 	5	  
		  	 (g)
	  	 Product Liability
	  	 	5	  
		  	 (h)
	  	 Litigation
	  	 	6	  
		  	 (i)
	  	 Product Warranty
	  	 	6	  
		  	 (j)
	  	 Material Contracts
	  	 	6	  
		  	 (k)
	  	 Inventory
	  	 	6	  
		  	 (l)
	  	 Intellectual Property
	  	 	6	  
		  	 (m)
	  	 Legal Compliance
	  	 	6	  
		  	 (n)
	  	 Disclosure
	  	 	6	  
		
	 Section 4 – Representations and Warranties of the Buyer
	  	 	7	  
		  	 (a)
	  	 Organization of the Buyer
	  	 	7	  
		  	 (b)
	  	 Authorization of Transaction
	  	 	7	  
		  	 (c)
	  	 Noncontravention
	  	 	7	  
		  	 (d)
	  	 Brokers’ Fees
	  	 	7	  
		  	 (e)
	  	 Risk of Business
	  	 	7	  
		  	 (f)
	  	 Disclosure
	  	 	7	  
		
	 Section 5 – Pre-Closing Covenants
	  	 	8	  
		  	 (a)
	  	 General
	  	 	8	  
		  	 (b)
	  	 Notices and Consents
	  	 	8	  
		  	 (c)
	  	 Operation of Business
	  	 	8	  
		  	 (d)
	  	 Preservation of Business
	  	 	8	  
		  	 (e)
	  	 Full Access
	  	 	8	  
		  	 (f)
	  	 Publicity
	  	 	8	  
		  	 (g)
	  	 Confidentiality
	  	 	8	  
		  	 (h)
	  	 Tax Matters
	  	 	8	  
		
	 Section 6 – Conditions to Obligation to Close
	  	 	10	  
		  	 (a)
	  	 Conditions to Obligation of the Buyer
	  	 	10	  
		  	 (b)
	  	 Conditions to Obligation of the Sellers
	  	 	11	  
		
	 Section 7 – Termination
	  	 	12	  

  
 1 

									
	 Section 8 – Post Closing Covenants
	  	 	12	  
		  	 (a)
	  	 General
	  	 	12	  
		  	 (b)
	  	 Litigation Support
	  	 	12	  
		  	 (c)
	  	 Transition
	  	 	12	  
		  	 (d)
	  	 Covenant Not to Compete
	  	 	12	  
		  	 (e)
	  	 Agreement Not to Solicit Customers
	  	 	13	  
		  	 (f)
	  	 Agreement Not to Solicit Employees
	  	 	13	  
		  	 (g)
	  	 Agreement on CRT Pricing
	  	 	13	  
		  	 (h)
	  	 Transition Support
	  	 	13	  
		  	 (i)
	  	 Employees
	  	 	13	  
		  	 (j)
	  	 Approvals
	  	 	13	  
		
	 Section 9 – Remedies for Breach of this Agreement
	  	 	13	  
		  	 (a)
	  	 Survival of Representations and Warranties
	  	 	13	  
		  	 (b)
	  	 Indemnification Provisions
	  	 	13	  
		
	 Section 10 – Disputes and Arbitration
	  	 	14	  
	 Section 11 – Miscellaneous
	  	 	14	  
		  	 (a)
	  	 Survival of Representations and Warranties
	  	 	14	  
		  	 (b)
	  	 Entire Agreement
	  	 	14	  
		  	 (c)
	  	 Succession and Assignment
	  	 	14	  
		  	 (d)
	  	 Counterparts
	  	 	15	  
		  	 (e)
	  	 Headings
	  	 	15	  
		  	 (f)
	  	 Notices
	  	 	15	  
		  	 (g)
	  	 Amendments and Waivers
	  	 	15	  
		  	 (h)
	  	 Severability
	  	 	15	  
		  	 (i)
	  	 Expenses
	  	 	16	  
		  	 (j)
	  	 Incorporation of Exhibits and Schedules
	  	 	16	  
		  	 (k)
	  	 Bulk Transfer Laws
	  	 	16	  
		  	 (l)
	  	 Governing Law
	  	 	16	  
		
	 Exhibits
	  			
			
		  	 Raw Material and Finished Inventory Schedule
	  	 	B	  
		  	 Asset Schedule
	  	 	C	  
		
	 Schedules
	  			
		  	 Company Assets
	  	 	2	  
		  	 Reserved
	  	 	3	  
		  	 Intellectual Property – (Trademarks, Service Marks, Trade Dress, Logos, Trade Names)
	  	 	4	  
		  	 Intellectual Property – (Copyrightable Works, All Copyrights, All Applications, Registrations, Renewals
	  	 	5	  
		  	 Computer Software
	  	 	6	  
		  	 Exceptions to Proprietary Rights
	  	 	7	  
		  	 Employees to be Hired by Buyer
	  	 	8	  

  
 2 

 STOCK PURCHASE AGREEMENT 

THIS STOCK PURCHASE AGREEMENT (the “Agreement”) is made and entered into as of October 3, 2013 by and
between VIDEO DISPLAY CORPORATION, a Georgia corporation (the “Seller”), and Z-AXIS HOLDINGS, INC, a corporation organized under the laws of the State of New York (the “Buyer”) and Z-AXIS, Inc. (the Company)
The Buyer and the Seller are referred to collectively herein as the “Parties.” 
 RECITALS 

A. The Company operates the Z-AXIS, INC Business (as defined below) at Phelps NY. 

B. Seller owns of record and beneficially all of the issued and outstanding shares of the capital stock of the Company (the
“Shares”). 
 C. Seller desires to sell the Shares to Buyer, and Buyer desires to purchase the Shares from Sellers, upon the
conditions set forth below. 
 Now, therefore, in consideration of the premises and the mutual promises herein made, and in
consideration of the representations, warranties, and covenants herein contained, the Parties agree as follows. 
 1.
Definitions. 
 “Adverse Consequences” means all actual out-of-pocket damages (excluding
incidental, punitive, speculative, lost opportunity, multiple of profits, and consequential or special damages of any nature) resulting from actions, suits, proceedings, hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and fees, including court costs and all reasonable fees and expenses of attorneys and
experts relating to the Z-AXIS, INC Business. 
 “Buyer” has the meaning set forth in the preface
above. 
 “Closing” has the meaning set forth in Section 2(e) below. 

“Closing Date” has the meaning set forth in Section 2(e) below. 

“COBRA” means the requirements of Part 6 of Subtitle B of Title I of ERISA and Code Section 4980B
and of any similar state law. 
 “Code” means the Internal Revenue Code of 1986, as amended. 

“Company Assets” means all right, title, and interest in and to the following Company assets :
(a) all the tangible personal property such as all machinery, equipment, inventories of raw materials and supplies, manufactured and purchased parts, goods in process and finished goods, furniture, tools, jigs, and dies used exclusively or
primarily by the Company in its Z-AXIS, INC Business including, but not limited to such personal property which is specifically enumerated on Schedule 1 attached hereto (b) Intellectual Property, (c) files, documents,
correspondence, lists, plats, drawings, and specifications, creative materials, advertising and 

 
promotional materials, studies, reports, and other printed or written materials used in the Z-AXIS, INC Business, and (d) parts and service customer lists, history and contact information
used in the Z-AXIS, INC Business; and the Company Assets shall include (i) the corporate charter, qualifications to conduct business as a foreign corporation, taxpayer and other identification numbers, seals, minute books, stock transfer books,
blank stock certificates, and other documents relating to the organization, maintenance, and existence of the Company as a corporation, (ii) any of the rights of the Company under this Agreement or (iii) any asset of the Company primarily
used in its businesses, including any asset not specifically set forth above., but excluding any and all intercompany cash accounts and intercompany non-trade receivable and payable accounts which shall, for all purposes be zeroed out against the
Company retained earnings account. “Company Assets” also includes the DBAs of Bear Power Supplies and Boundless Technologies. 

“Disclosure Schedule” means a schedule or listing of exceptions to the representations made by Seller
in Section 3 below or by the Buyer in Section 4 below, and in each case reasonably satisfactory to the party to which such representations and warranties are made. 

“Employee Benefit Plan” means any “employee benefit plan” (as such term is defined in ERISA
Section 3(3)) and any other material employee benefit plan, program or arrangement of any kind. 
 “Employee
Pension Benefit Plan” has the meaning set forth in ERISA Section 3(2). 
 “Employee Welfare
Benefit Plan” has the meaning set forth in ERISA Section 3(1). 
 “Environmental, Health, and
Safety Requirements” shall mean all federal, state, local and foreign statutes, regulations, ordinances and other provisions having the force or effect of law, all judicial and administrative orders and determinations, all contractual
obligations and all common law concerning public health and safety, worker health and safety, and pollution or protection of the environment, including without limitation all those relating to the presence, use, production, generation, handling,
transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge, release, threatened release, control, or cleanup of any hazardous materials, substances or wastes, chemical substances or mixtures, pesticides,
pollutants, contaminants, toxic chemicals, petroleum products or byproducts, asbestos, polychlorinated biphenyls, noise or radiation, each as amended and as now or hereafter in effect. 

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

“ERISA Affiliate” means each entity that is treated as a single employer with the Sellers for purposes
of Code Section 414. 
 “Estoppel Certificates” has the meaning set forth in Section 6(a)
below. 
 “Export Control” means the U. S. Government Export Control Laws, including the Office of
Defense Trade Controls (ODTC) and the International Traffic in Arms Regulations (ITAR) 
 “Financial
Statement” has the meaning set forth in Section 3(g) below. 

  
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 “Z-AXIS, INC Business” has the meaning of that business
conducted by the Seller in Phelps NY whereby Sellers manufacture and market electronic products and supply services related to such products in their respective industries. 

“Intellectual Property” means the following, (a) the trademarks, service marks, trade dress,
logos, trade names, and together with all translations, adaptations, derivations, and combinations thereof used exclusively in the Company’s Z-AXIS, INC Business and which are specifically set forth on Schedule 3 attached hereto,
(b) all copyrightable works, all copyrights, and all applications, registrations, and renewals in connection therewith used in the Company’s Z-AXIS, INC Business and which are specifically set forth on Schedule 4 attached hereto,
(c) all mask works and all applications, registrations, and renewals in connection therewith used exclusively in the Company’s Z-AXIS, INC Business, (d) all trade secrets and confidential business information (including ideas,
research and development, know-how, formulas, compositions, manufacturing and production processes and techniques, technical data, designs, drawings, specifications, customer and supplier lists, pricing and cost information, and business and
marketing plans and proposals) used in the Company’s Z-AXIS, INC Business, (e) all computer software (including data and related documentation) used in the Company’s Z-AXIS, INC Business and which are specifically set forth on
Schedule 5 attached hereto, (f) all other proprietary rights of the Company used in the Company’s Z-AXIS, INC Business, except as specifically set forth on Schedule 6 attached hereto, and (g) all copies and tangible
embodiments thereof (in whatever form or medium). 
 “Knowledge” means actual knowledge after
reasonable investigation. 
 “Liability” means any liability (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due), including any liability for Taxes. 

“Ordinary Course of Business” means the ordinary course of business consistent with past custom and
practice (including with respect to quantity and frequency). 
 “Party” has the meaning set forth in
the preface above. 
 “Person” means an individual, a partnership, a corporation, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization, or a governmental entity (or any department, agency, or political subdivision thereof). 

“Purchase Price” has the meaning set forth in Section 2(c) below. 

“Security Interest” means any mortgage, pledge, lien, encumbrance, charge, or other security interest,
other than (a) mechanic’s, materialmen’s, and similar liens, (b) liens for Taxes not yet due and payable, (c) purchase money liens and liens securing rental payments under capital lease arrangements, and
(d) other liens arising in the Ordinary Course of Business and not incurred in connection with the borrowing of money. 

“Subsidiary” means any corporation with respect to which a specified Person (or a Subsidiary thereof)
owns a majority of the common stock or has the power to vote or direct the voting of sufficient securities to elect a majority of the directors. 

“Seller” has the meaning set forth in the preface above. 

  
 3 

 “Tax” means any federal, state, local, or foreign income,
gross receipts, license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under Code Section 59A), customs duties, capital stock, franchise, profits, withholding, social
security (or similar), unemployment, disability, real property, personal property, sales, use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax of any kind whatsoever, including any interest, penalty, or
addition thereto, whether disputed or not. 
 “Tax Return” means any return, declaration, report,
claim for refund, or information return or statement relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof. 

2. PURCHASE AND SALE OF SHARES 

(a) Sale of shares. Seller agrees to sell the Shares and Buyer agrees to purchase the Shares from Seller. 

(b) Assumption of Liabilities. On and subject to the terms and conditions of this Agreement, the Buyer neither agrees
to assume nor become responsible for any of the Seller’s Liabilities at the Closing other than the liabilities specifically shown in detail on the Z-AXIS, INC Financial Balance Sheet Data upon which this Purchase Offer is predicated. 

(c) Purchase Price. The Buyer agrees to pay to the Seller at Closing Nine Million Dollars (the “Cash Portion of
the Purchase Price”) plus$1500 per day beginning on November 15, 2013 until the closing date. The cash as of the date of this signed agreement shall remain with Z-AXIS and no longer be subject to intercompany transfers with seller. 

(d) Note Payable. In addition to the Cash Portion of the Purchase Price, the Seller shall deliver a Note Payable to the
Seller in the amount of One Million Dollars on the terms indicated on Exhibit 2(d) attached hereto. 
 (e) The
Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place on November 15, 20013 at the offices of Video Display Corporation, 1868 Tucker Industrial Road, Stone Mountain GA commencing
at 9:00 a.m. local time or at such other place and at such other date and time as the Parties may mutually agree upon (the “Closing Date”); 

(f) Buyer financing contingency. This stock purchase agreement is contingent upon buyer obtaining financing for the
cash portion of the purchase price prior to closing. Buyer agrees to pursue the same with diligence. Seller agrees to provide financial statements required by purchaser’s lenders. 

3. Representations and Warranties of the Seller. The Seller represents and warrants to the Buyer that to
Seller’s Knowledge, and, except as set forth in the Disclosure Schedule, the statements contained in this Section 3 are correct and complete as of the date of this Agreement and will be correct and complete to the best of Seller’s
knowledge, as of the Closing Date. The Seller’s Disclosure Schedule will be arranged in paragraphs corresponding to the lettered and numbered paragraphs contained in this Section 3. 

  
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 (a) Organization of the Company. The Company is a corporation duly
organized, validly existing, and in good standing under the laws of the jurisdiction of its incorporation. 
 (b)
Authorization of Transaction. The Seller has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder. Without limiting the generality of the foregoing, the board of directors of the Company and
the Seller have duly authorized the execution, delivery, and performance of this Agreement by the Seller. This Agreement constitutes the valid and legally binding obligation of the Seller, enforceable in accordance with its terms except as
enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting creditors’ rights generally and by principals of equity. 

(c) Noncontravention. Neither the execution and the delivery of this Agreement, nor the consummation of the
transactions contemplated hereby (including the assignments and assumptions referred to in Section 2 above), will (i) violate any constitution, statute, regulation, rule, injunction, judgment, order, decree, ruling, charge, or other
restriction of any government, governmental agency, or court to which the Seller is subject or any provision of the articles of incorporation or bylaws of the Seller or (ii) conflict with, result in a breach of, constitute a default under,
result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which the Seller is a party or by
which it is bound or to which any of its assets is subject (or result in the imposition of any Security Interest upon any of the Company’s Assets). The Seller does not need to give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or governmental agency in order for the Parties to consummate the transactions contemplated by this Agreement (including the assignments and assumptions referred to in Section 2 above). 

(d) Brokers’ Fees. The Seller has no Liability or obligation to pay any fees or commissions to any broker, finder,
or agent with respect to the transactions contemplated by this Agreement for which the Buyer could become liable or obligated. 

(e) Title to Assets. The Company has good and marketable title to all of the Company’s Assets, free and clear of
any Security Interest or restriction on transfer other than liabilities specified on the most recent financial statements presented to the Buyer. 

(f) Tangible Assets. The Company owns or leases all machinery, equipment, and other tangible assets, including parts
inventory, necessary for the conduct of the Company’s Z-AXIS, INC Business as presently conducted and as presently proposed to be conducted. The Company owns some of the raw materials and supplies needed for operation of the Z-AXIS, INC
business, and contract for the balance of such materials and supplies. The Seller makes no representation or warranty as to the condition on usability of any tangible asset transferred under this Agreement and each such tangible asset is SOLD AS
IS,WHERE IS WITHOUT ANY IMPLIED OR EXPRESS WARRANTY FOR A PARTICULAR PURPOSE. 
 g) Product Liability. The Seller
does not have any Liability to its Knowledge (and to Seller’s Knowledge, there is no reasonable basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against the Seller giving rise
to any Liability) arising out of any injury to individuals or property as a result of the ownership, possession, or use of any Z-AXIS, INC Business product manufactured, sold, leased, or delivered by the Seller. 

  
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 (h) Litigation. With respect to the Company Assets, the Company
(i) is not subject to any outstanding injunction, judgment, order, decree, ruling, or charge and (ii) is not a party or are threatened to be made a party to any action, suit, proceeding, hearing, or investigation of, in, or before any
court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator except ongoing litigation
brought by a former Manufactures Representative (Moore-Haar) against Z-AXIS, the responsibility for which passes to the buyer. 

(i) Product Warranty. To the Seller’s Knowledge, each product manufactured, sold, leased, or delivered by the
Company pursuant to the Z-AXIS, INC Business has been in conformity with all applicable contractual commitments and all express and implied warranties, and the Seller has no Knowledge of any existing claim of Liability (and to the Seller’s
Knowledge there is no basis for any present or future action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand against the Company giving rise to any Liability) for replacement or repair thereof or other damages in
connection therewith 
 (j) Material Contracts. There exists no term or condition in any material contract that
relates to the Company Assets that would in any way or matter adversely affect Buyer’s utilization of the Company Assets post Closing. 

(k) Inventory The inventory portion of the Company Assets consists of raw materials and supplies, manufactured and
purchased parts, goods in process, and finished goods, all of which is SOLD AS IS, WHERE IS WITHOUT ANY IMPLIED OR EXPRESS WARRANTY FOR A PARTICULAR PURPOSE. 

(l) Intellectual Property. The Company owns or has the right to use pursuant to license, sublicense, agreement, or
permission all Intellectual Property being used in the Company’s Z-AXIS, INC Business. Each item of Intellectual Property owned or used by the Company immediately prior to the Closing hereunder will be owned or available for use by the Buyer on
identical terms and conditions immediately subsequent to the Closing hereunder. 
 (m) Legal Compliance. To the
Seller’s Knowledge, the Company has complied with all applicable laws (including rules, regulations, codes, plans, injunctions, judgments, orders, decrees, rulings, and charges thereunder) of federal, state, local, and foreign governments (and
all agencies thereof), as they may relate directly to the Acquired Assets, and to Seller’s Knowledge no action, suit, proceeding, hearing, investigation, charge, complaint, claim, demand, or notice has been filed or commenced against the
Company alleging any failure so to comply. 
 (n) Disclosure. To the Knowledge of Seller, the representations and
warranties contained in this Section 3 do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements and information contained in this Section 3 not misleading. 

(o) Corporate taxes. All State and Federal Income Taxes, sales taxes and payroll taxes determined to be applicable to
operations and income and expenses to and includingAugust 31, 2013 shall be assumed by the seller. 

  
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 4. Representations and Warranties of the Buyer. The Buyer
represents and warrants to the Seller that the statements contained in this Section 4 are correct and complete as of the date of this Agreement and will be correct and complete as of the Closing Date (as though made then and as though the
Closing Date were substituted for the date of this Agreement throughout this Section 4), except as set forth in the Disclosure Schedule. The Buyer’s Disclosure Schedule will be arranged in paragraphs corresponding to the lettered and
numbered paragraphs contained in this Section 4. 
 (a) Organization of the Buyer. The Buyer is a corporation
duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation. 
 (b)
Authorization of Transaction. The Buyer has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunderand has been duly authorized to carry out the execution, deliver and performance of
this Agreement. This Agreement constitutes the valid and legally binding obligation of the Buyer, enforceable in accordance with its terms except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws
affecting creditors’ rights generally and by principals of equity. 
 (c) Noncontravention. Neither the
execution and the delivery of this Agreement, nor the consummation of the transactions contemplated hereby (including the assignments and assumptions referred to in Section 2 above), will (i) violate any constitution, statute, regulation,
rule, injunction, judgment, order, decree, ruling, charge, or other restriction of any government, governmental agency, or court to which the Buyer is subject or any provision of its charter or bylaws or (ii) conflict with, result in a breach
of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, or require any notice under any agreement, contract, lease, license, instrument, or other arrangement to which
the Buyer is a party or by which it is bound or to which any of its assets is subject. The Buyer does not need to give any notice to, make any filing with, or obtain any authorization, consent, or approval of any government or governmental agency in
order for the Parties to consummate the transactions contemplated by this Agreement (including the assignments and assumptions referred to in Section 2 above). 

(d) Brokers’ Fees. The Buyer has no Liability or obligation to pay any fees or commissions to any broker, finder,
or agent with respect to the transactions contemplated by this Agreement for which the Sellers could become liable or obligated. 

(e) Risk of Business. The Buyer has conducted what it believes to be an appropriate “due diligence”
investigation of the Company and the Company’s Z-AXIS, INC Business, and acknowledges that the Buyer has been informed by the Seller of the past performance of the Z-AXIS, INC Business and have provided “Best Effort” future
projections of revenues and profits. No representations, assurances and/or guarantees have been provided for the growth or performance of financial or business results from the utilization of the Company Assets or otherwise. 

(f) Disclosure. To the Knowledge of Buyer, the representations and warranties contained in this Section 4 do not
contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements and information contained in this Section 4 not misleading. 

  
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 5. Pre-Closing Covenants. The Parties agree as follows with respect
to the period between the execution of this Agreement and the Closing. 
 (a) General. Each of the Parties
will use its reasonable best efforts to take all action and to do all things necessary, proper, or advisable in order to consummate and make effective the transactions contemplated by this Agreement (including satisfaction, but not waiver, of the
closing conditions set forth in Section 6 below). 
 (b) Notices and Consents The Seller will give any notices
to third parties, and the Seller will use its best efforts to obtain any third-party consents, that the Buyer may reasonably request in connection with the matters referred to in Section 3(c) above. Each of the Parties will give any notices to,
make any filings with, and use its reasonable best efforts to obtain any authorizations, consents, and approvals of governments and governmental agencies in connection with the matters referred to in Section 3(c) and Section 4(c) above.

 (c) Operation of Business. The Seller will not engage in any practice, take any action, or enter into any
transaction involving the Z-AXIS, INC Business outside the Ordinary Course of Business, except as envisioned by this Agreement. 

(d) Preservation of Business. The Seller will undertake best efforts to keep the Z-AXIS, INC Business and properties
substantially intact, including its present operations, physical facilities, working conditions, and relationships with lessors, licensors, suppliers, customers, and employees. 

(e) Full Access. The Seller will permit representatives of the Buyer to have full access at all reasonable times, and
in a manner so as not to interfere with the normal business operations of the Seller, to all premises, properties, personnel, books, records, contracts, and documents of or pertaining to the Company Assets. 

(f) Publicity. Prior to the Closing, any written news releases by the Buyer or the Seller pertaining to this Agreement
or the sale contemplated by the Agreement shall be reviewed and approved by the other Party hereto prior to release. 
 (g)
Confidentiality. Buyer shall hold in strict confidence, all documents and information obtained with respect to Seller and the Company (“Confidential Information”). Buyer shall not permit any Confidential Information to be utilized
or to be disclosed or conveyed to any other person or entity other than its legal and accounting representatives in furtherance of this Agreement. This Section 5(g) shall terminate if and when the Closing occurs in accordance with
Section 1 of this Agreement. In the event that the Closing does not occur, Buyer shall hold such Confidential Information in strict confidence indefinitely. 

(h) Tax Matters. 

(a) Sellers and Buyer and their respective Affiliates shall jointly make a timely, irrevocable and effective election under
Code §338(h)(10) and any similar elections under any applicable state, local or foreign income Tax law (collectively the “§338(h)(10) Elections”) with respect to Buyer’s purchase of the Shares. Such Code §338(h)(10)
Election shall be made pursuant to Code §338(h)(10) and the Treasury Regulations promulgated thereunder. To facilitate such election, at the Closing the Sellers’ Representative shall deliver to Buyer Forms 8023 and any similar forms under
applicable state, local or foreign income Tax law (“Forms 

  
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8023”) with respect to Buyer’s purchase of the Shares as requested by Buyer, on which the Sellers shall have completed Sections B and C thereof and which shall have been duly executed
by each Seller. Buyer shall complete Sections A, D and E thereof and cause the Forms 8023 to be duly and timely filed as prescribed by Treas. Reg. §1.338(h)(10)-1 or the corresponding provisions of applicable state or local income Tax law. The
Sellers and Buyer shall cooperate with each other in allocating the “Aggregate Deemed Sale Price” (“ADSP”) as defined in Treas. Reg. § 1.338-4 among the classes of assets of the Company pursuant to Treas. Regulation §
1.338-6, and shall make available to each other such Tax data and other information as may be reasonably requested by the other party. Within 150 days after the Closing Date, Buyer will propose to the Sellers’ Representative the allocation of
ADSP among the classes of assets of the Company to be reported on the respective IRS Form 8883 and any similar forms under applicable state, local or foreign income tax law (“Forms 8883”) to be filed by Sellers and Buyer. In the event that
Buyer and Sellers’ Representative are unable to agree on the allocation of ADSP to be reported on Form 8883 within 180 days of the Closing Date (and a failure to raise any disagreement by Sellers’ Representative will be deemed to be
considered an acquiescence), the matter in dispute shall be resolved as soon as practicable by the Accountants. Promptly, but not later than 15 days after its acceptance of appointment hereunder, the Accountants will determine (based solely on
presentations by Sellers’ Representative and Buyer and not by independent review) only those matters in dispute and will render a written report as to the disputed matters, which report shall be conclusive and binding upon the parties. Buyer
and Principal Sellers shall bear equally the fees and expenses of such firm. Buyer and Sellers shall file all Tax Returns in a manner consistent with the allocation of ADSP reported on Forms 8883 (and comparable forms for state, local or foreign Tax
law). 
 (b) Neither the Company nor any of the Sellers shall take or allow to be taken any actions (other than the sale of
the Purchased Shares pursuant to this Agreement) that would result in the termination of the Company’s status as a validly electing S corporation within the meaning of Code § 1361 and § 1362. 

(c) Seller shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the Company for all periods
ending on or prior to the August 31, 2013 that are filed after the Closing Date. Seller shall provide copies to Buyer’s Representative of each such proposed Tax Return described in the preceding sentence at least 15 days prior to its
proposed filing. Buyer’s Representative shall have ten days from receipt of such proposed Tax Return from Seller to raise objections to any item(s) contained therein. In the event Buyer’s Representative does not so object, Buyer shall be
deemed to have waived any right to so object. In the event Buyer’s Representative does so object, then Buyer and Sellers’ Representative shall negotiate in good faith for at least five days to resolve such objections. In the event
Sellers’ Representative and Buyer are unable to so resolve such objections, then the matter shall be resolved by the Accountants as soon as practicable (but in any event within 15 business days following submission to the Accountants). Buyer
and Principal Sellers shall bear equally the fees and expenses of such firm. 
 (d) Buyer, the Company and the Sellers shall
cooperate fully, as and to the extent reasonably requested by the other party, in connection with the filing of Tax Returns and any audit, litigation or other proceeding with respect to Taxes. Such cooperation shall include the retention and (upon
the other party’s request) the provision of records and information reasonably relevant to any such audit, litigation, or other proceeding and making employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder. Buyer, the Company and the Sellers agree (i) to retain all books and records with respect to Tax matters pertinent to the Company relating to any taxable period beginning before the Closing Date
until expiration of the statute of limitations (and, to the 

  
 9 

 
extent notified by Buyer or Sellers, any extensions thereof) of the respective taxable periods, and to abide by all record retention agreements entered into with any taxing authority, and
(ii) to give the other party reasonable written notice prior to transferring, destroying or discarding any such books and records and, if the other party so requests, the Company or Sellers, as the case may be, shall allow the other party to
take possession of such books and records. Buyer and Sellers further agree, upon request, to use their commercially reasonable efforts to obtain any certificate or other document from any Governmental Authority or any other Person as may be
necessary to mitigate, reduce or eliminate any Tax that could be imposed (including with respect to the transactions contemplated hereby). 

(e) All tax-sharing agreements or similar agreements with respect to or involving the Company shall be terminated as of the
August 31, 2013 and, after that Date, the Company shall not be bound thereby or have any liability thereunder. If subsequent to the closing date, the Seller has any tax adjustments, related to periods prior to the closing date, that cause an
increase in the tax liability of Z-AXIS, the Seller shall reimburse the Buyer for such tax adjustment, interest and penalties. 

(f) All transfer (including without limitation, real estate transfer Tax), sales, use, deed, registration, documentary, stamp,
conveyancing, franchise property, notarial, and other such Taxes and fees (including any penalties and interest) incurred in connection with this Agreement shall be paid by the Sellers when due, and the Sellers shall, at their own expense, file all
necessary Tax Returns and other documentation with respect to all such transfer, documentary, sales, use, stamp, registration and other Taxes and fees, and, if required by applicable law, Buyer shall, and shall cause its affiliates to, join in the
execution of any such Tax Returns and other documentation. 
 (g) Any Taxes with respect to income, property or operations
of the Company and that relate to a Straddle Tax Period, shall be apportioned between the Pre-Closing Tax Period and the Post-Closing Tax Period as follows: (i) in the case of Taxes other than income, sales and use, and withholding Taxes, on a
per diem basis, and (ii) in the case of income, sales and use, and withholding Taxes, as determined from the books and records of the Company as if the taxable year of the Company terminated at the close of business on the Closing Date (i.e.,
based on an interim closing of the books of the Company as of the end of the Closing Date). Sellers and Buyer agree, to the extent permitted by applicable Law, to elect with the relevant taxing authority to treat for all purposes the Closing Date as
the last day of a taxable period of the Company. 
 6. Conditions to Obligation to Close. 

(a) Conditions to Obligation of the Buyer. The obligation of the Buyer to consummate the transactions to be performed
by it in connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations and
warranties set forth in Section 3 above shall be true and correct in all material respects at and as of the Closing Date; 

(ii) the Seller shall have performed and complied with all of its covenants hereunder in all material respects through the
Closing; 

  
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 (iii) the Seller shall have procured all of the third party consents specified in
Section 5(b) above; 
 (iv) except as otherwise disclosed herein, no action, suit, or proceeding shall be pending or
threatened before any court or quasi-judicial or administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would
(A) prevent consummation of any of the transactions contemplated by this Agreement, (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation, or (C) affect adversely the right of the
Buyer to own the Company Assets and to operate the Z-AXIS, INC Business (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 

(v) the Seller shall have delivered to the Buyer a certificate to the effect that each of the conditions specified above in
Section 6(a)(i)-(v) is satisfied in all respects. 
 (vi) all actions to be taken by the Seller in connection with
consummation of the transactions contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to the Buyer and its
counsel; and 
 (vii) Seller agrees with the Buyer that the inventory to be transferred to the Buyer at the Closing date
shall consist of total inventory as set forth on Schedule 1, which list of inventory shall be run off of the Company’s MRP system before the start of business as of the Closing Date. 

The Buyer may waive any condition specified in this Section 6(a) if it executes a writing so stating at or prior to the Closing. 

(b) Conditions to Obligation of the Seller. The obligation of the Seller to consummate the transactions to be performed
by it in connection with the Closing is subject to satisfaction of the following conditions: 
 (i) the representations and
warranties set forth in Section 4 above shall be true and correct in all material respects at and as of the Closing Date; 

(ii) the Buyer shall have performed and complied with all of its covenants hereunder in all material respects through the
Closing; 
 (iii) no action, suit, or proceeding shall be pending or threatened before any court or quasi-judicial or
administrative agency of any federal, state, local, or foreign jurisdiction or before any arbitrator wherein an unfavorable injunction, judgment, order, decree, ruling, or charge would (A) prevent consummation of any of the transactions
contemplated by this Agreement or (B) cause any of the transactions contemplated by this Agreement to be rescinded following consummation (and no such injunction, judgment, order, decree, ruling, or charge shall be in effect); 

(iv) the Buyer shall have delivered to the Seller a certificate to the effect that each of the conditions specified above in
Section 6(b)(i)-(iv) is satisfied in all respects; 

  
 11 

 (v) all actions to be taken by the Buyer in connection with consummation of the
transactions contemplated hereby and all certificates, opinions, instruments, and other documents required to effect the transactions contemplated hereby will be reasonably satisfactory in form and substance to the Sellers. 

The Seller may waive any condition specified in this Section 6(b) if it executes a writing so stating at or prior to the Closing. 

7. Termination. The Buyer may terminate this Agreement by written notification to the Seller within 30 days of
the date of the signing of the Purchase Agreement. In the event of any such termination, the Seller shall retain any deposit paid by the Buyer pursuant to Section 2(c) to cover expended costs of the Seller’s reasonable attorneys’ fees
and due diligence. The Seller may terminate this Agreement by written notification to the Buyer at any time prior to the Closing. 

8. Post-Closing Covenants. The Parties agree as follows with respect to the period following the Closing. 

(a) General. In case at any time after the Closing any further action is necessary or desirable to carry out the
purposes of this Agreement, each of the Parties will take such further action (including the execution and delivery of such further instruments and documents) as any other Party reasonably may request, all at the sole cost and expense of the
requesting Party (unless the requesting Party is entitled to indemnification therefore under Section 9 below 
 (b)
Litigation Support. In the event and for so long as any Party actively is contesting or defending against any action, suit, proceeding, hearing, investigation, charge, complaint, claim, or demand in connection with (i) any transaction
contemplated under this Agreement or (ii) any fact, situation, circumstance, status, condition, activity, practice, plan, occurrence, event, incident, action, failure to act, or transaction on or prior to the Closing Date involving the Sellers,
each of the other Parties will cooperate with the contesting or defending Party and its counsel in the contest or defense, make available its personnel, and provide such testimony and access to his or its books and records as shall be necessary in
connection with the contest or defense, all at the sole cost and expense of the contesting or defending Party (unless the contesting or defending Party is entitled to indemnification therefore under Section 9 below). 

(c) Transition. The Seller will not take any action that is designed or intended to have the effect of discouraging any
lessor, licensor, customer, supplier, or other business associate of the Company from maintaining the same business relationships with the Buyer with respect to the Z-AXIS, INC Business after the Closing as it maintained with the Company with
respect to the Z-AXIS, INC Business prior to the Closing. The Seller and the Company will refer all customer inquiries relating to the Z-AXIS, INC Business to the Buyer from and after the Closing. 

(d) Covenant Not to Compete. The Parties agree that this covenant not to compete is necessary in order to protect the
value and goodwill of the Company Assets and without this covenant not to compete, the Buyer would not have entered into this Agreement. For a period of Five (5) years from and after the Closing Date, the Seller will not engage directly or
indirectly in the Z-AXIS, INC Business of Z-AXIS, INC sales, parts replacement or parts repair business or service that the Sellers conducts as of the Closing Date in any geographic area in which the Sellers conducts that business as of the Closing
Date; provided, however, that the ownership of less than 10% of the outstanding stock of any publicly traded corporation engaged in such business shall not be deemed to be engaging in any such business. If the final judgment of a

  
 12 

 
court of competent jurisdiction declares that any term or provision of this Section 8(d) is invalid or unenforceable, the Parties agree that the court making the determination of invalidity
or unenforceability shall have the power to reduce the scope, duration, or area of the term or provision, to delete specific words or phrases, or to replace any invalid or unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid or unenforceable term or provision, and this Agreement shall be enforceable as so modified after the expiration of the time within which the judgment may be appealed. 

(e) Agreement Not to Solicit Customers. For a period of five (5) years from and after the Closing Date, the Seller
will not, directly or indirectly, on Seller’s own behalf or on behalf of others, (1) solicit, divert, appropriate to or accept on behalf of any Competing Business, or (2) attempt to solicit, divert, appropriate to or accept on behalf
of a Competing Business, for the purpose of providing services or products substantially similar to the current business of the Sellers, that being any business from any customer or actively sought prospective customer of the Sellers at or prior to
the Closing Date. For purposes of this Agreement, “Competing Business” means manufacturing and sales comprised of the product line, parts replacement or the repair of parts relating to the Z-AXIS, INC Business. 

(f) Agreement Not to Solicit Employees. Subsequent to the Signing of this Agreement, the Seller directly, on the
Seller’s own behalf or on behalf of others, shall not solicit, divert or hire, or attempt to solicit, divert or hire, any other persons employed by Z-AXIS. 

(g) Agreement on CRT Pricing. The Seller agrees to maintain current pricing of CRTs historically purchased by Buyer for
a period of 5 years with annual increases not to exceed five percent (5%). 
 (h) Employees. 

(i) Nothing in this Agreement obligates the Buyer to transfer any employee of the Seller to the Buyer. However, Buyer shall
have the option to continue employment of any, all or none of the current employees of the Seller subsequent to the Closing. 

(ii) Any such employee, with continued employment by Z-AXIS shall continue to be bound, by the Company’s Confidentiality
and Intervention Agreement signed by the employee. 
 9. Remedies for Breach of this Agreement. 

(a) Survival of Representations and Warranties. All of the representations and warranties of the Seller contained in
Section 3 of this Agreement shall survive the Closing and continue in full force and effect until the three year anniversary date of the date of Closing and expire and terminate in their entirety thereafter. All of the representations and
warranties of the Buyer contained in Section 4 of this Agreement shall survive the Closing and continue in full force and effect until the one year anniversary date of the date of Closing and expire and terminate in their entirety thereafter.
All covenants of the Parties contained in this Agreement shall survive the Closing in accordance with their terms. 
 (b)
Indemnification Provisions. 
 In the event either Party claims the other Party has breached any of its
representations, warranties and covenants contained in the Agreement and if there is an 

  
 13 

 
applicable survival period pursuant to Section 9 (a) above and provided the purportedly damaged Party has made a written claim for indemnification against the other Party within such
survival period and the other Party is found to have breached the Agreement, then the other Party agrees to indemnify the damaged Party from and against the entirety of any Adverse Consequences the damaged Party may suffer through and after the date
of the breach as specified in the claim for indemnification resulting from, arising out of, relating to, in the nature of, or caused by the breach (or the alleged breach). 

10. Disputes and Arbitration. If any dispute should arise after Closing concerning performance under or interpretation
of this Agreement, then, prior to, and as a condition to either Seller’s or Buyer’s right to initiate any arbitration action, the Parties will take the following steps in an attempt to informally resolve any such dispute: 

(a) The initiating party to the dispute shall provide the other party thirty (30) days written notice of the dispute and
opportunity to cure. 
 (b) If the dispute remains after the thirty (30) days written notice and cure period, then
within thirty (30) days of the request of either party, the parties shall participate in non-binding mediation with a mutually agreeable mediator at a mutually agreeable date, time and location. 

(c) If any such dispute remains unresolved after the parties have attended mediation pursuant to Section 10(b), then
either party may initiate an arbitration proceeding. 
 (d) The Parties agree that if they are unable to resolve any
controversy that arises under this Agreement post-Closing as contemplated by this Section 10, then such controversy and any ancillary claims not so resolved will be submitted to mandatory and binding arbitration in accordance with the rules of
the American Arbitration Association. Any award rendered therein shall be final and binding on each and all of the Parties, and judgment may be entered thereon in a court of competent jurisdiction Seller and Buyer shall appoint a maximum of three
arbitrators. Seller shall appoint one arbitrator and Buyer shall appoint one arbitrator. Each of these arbitrators shall appoint the third. If any Party fails to appoint an arbitrator, the President or Chairman of the American Arbitration
Association, or his authorized subordinate, shall appoint such arbitrator or arbitrators. 
  

					
	  
	 		 	  

	 Seller
	 		 	 Buyer

 11. Miscellaneous. 

(a) Survival of Representations and Warranties. All of the representations, warranties and covenants of the Parties
contained in this Agreement shall survive the Closing hereunder as and to the extent provided in Section 9(a) above. 

(b) Entire Agreement This Agreement (including the documents referred to herein) constitutes the entire agreement
between the Parties and supersedes any prior understandings, agreements, or representations by or between the Parties, written or oral, to the extent they relate in any way to the subject matter hereof. 

(c) Succession and Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties named
herein and their respective successors and permitted assigns. No Party may assign either this Agreement or any of its rights, interests, or obligations 

  
 14 

 
hereunder without the prior written approval of the other Party; provided, however, that the Buyer may (i) assign any or all of its rights and interests hereunder to one or more of its
Affiliates and (ii) designate one or more of its Affiliates to perform its obligations hereunder (in any or all of which cases the Buyer nonetheless shall remain responsible for the performance of all of its obligations hereunder). 

(d) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original
but all of which together will constitute one and the same instrument. 
 (e) Headings. The section headings
contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 

(f) Notices. All notices, requests, demands, claims, and other communications hereunder will be in writing. Any notice,
request, demand, claim, or other communication hereunder shall be deemed duly given if (and then two business days after) it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient
as set forth below: 
  

			
	 If to the Seller:
	  	 Video Display Corporation

		  	 1868 Tucker Industrial Drive

		  	 Tucker, Georgia 30084

		  	 Fax: 770.493.3903

		  	 Attn.: Ronald D. Ordway, CEO

		
	 If to the Buyer:
	  	 Z-AXIS HOLDINGS, INC

		  	 Z-AXIS, INC

		  	   1916 Route 96

		  	   Phelps, NY 14532

 Any Party may send any notice, request, demand, claim, or other communication hereunder to the intended
recipient at the address set forth above using any other means (including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail, or electronic mail), but no such notice, request, demand, claim, or other
communication shall be deemed to have been duly given unless and until it actually is received by the intended recipient. Any Party may change the address to which notices, requests, demands, claims, and other communications hereunder are to be
delivered by giving the other Party notice in the manner herein set forth. 
 (g) Amendments and Waivers. No
amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed by the Buyer and Seller. The Seller may consent to any such amendment at any time prior to the Closing. No waiver by any Party of any default,
misrepresentation, or breach of warranty or covenant hereunder, whether intentional or not, shall be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights
arising by virtue of any prior or subsequent such occurrence. 
 (h) Severability. Any term or provision of this
Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any
other situation or in any other jurisdiction. 

  
 15 

 (i) Expenses. Buyer and Seller each will bear its own costs and expenses
(including legal fees and expenses) incurred in connection with this Agreement and the transactions contemplated hereby. 

(j) Incorporation of Exhibits and Schedules. The Exhibits and Schedules identified in this Agreement are incorporated
herein by reference and made a part hereof. 
 (k) Bulk Transfer Laws. The Buyer acknowledges that the Seller will
not comply with the provisions of any bulk transfer laws of any jurisdiction in connection with the transactions contemplated by this Agreement. 

(l) Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of New
York as it applies to contracts to be performed entirely within the State of New York 
 IN WITNESS WHEREOF, the
Parties hereto have executed this Agreement as of the date first above written. 
  

			
	 VIDEO DISPLAY CORPORATION

		
	 By:
	 	  

		
	 Title:
	 	  

	
	 Z-AXIS, INC

		
	 By:
	 	  

		
	 Title:
	 	  

	
	 Z-AXIS HOLDINGS, INC

		
	 By:
	 	  

		
	 Title:
	 	  

  
 16 

 EXHIBIT A 

 SCHEDULE 1 

COMPANY ASSETS 

 SCHEDULE 2 

[Reserved] 

 SCHEDULE 3 

INTELLECTUAL PROPERTY – Z-AXIS INC 

(Trademarks, Service Marks, Trade Dress, Logos, Trade Names) 

 SCHEDULE 4 

INTELLECTUAL PROPERTY – Z-AXIS INC 

(Copyrightable works, all Copyrights, all Applications, Registrations, Renewals) 

 SCHEDULE 5 

COMPUTER SOFTWARE – Z-AXIS INC 

(including data and related documentation) 

 SCHEDULE 6 

EXCEPTIONS TO PROPRIETARY RIGHTS – Z-AXIS INC 

 SCHEDULE 7 

Reserved 

 DISCLOSURE SCHEDULE

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