8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported)

January 27, 2009

MEADE INSTRUMENTS CORP.

(Exact Name of Registrant as Specified in Charter)

Delaware (State or Other Jurisdiction of Incorporation)	0-22183 (Commission File Number)	95-2988062 (IRS Employer Identification No.)
6001 Oak Canyon Irvine, California (Address of principal executive offices)		92618-5200 (Zip Code)

(949) 451-1450

Registrant’s telephone number, including area code

Not Applicable (Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 1.01Entry into a Material Definitive Agreement

Under a Purchase Agreement dated January 27, 2009, by and among Meade Instruments Europe Corp., a California corporation (“MIEC”), Bresser GmbH, a German corporation (“Bresser”), Meade Instruments Corp., a Delaware corporation (the “Company”), Helmut Ebbert, Meade Instruments Europe GmbH & Co. KG (“Meade Europe”) and Meade Instruments Verwaltungs GmbH, MIEC, a wholly-owned subsidiary of the Company, sold all of its shares in Meade Europe to Bresser, for gross cash proceeds of approximately €9.4 million, or approximately USD $12.4 million.  Mr. Ebbert, a managing director of Meade Europe, is also the managing director of and an investor in Bresser.  Meade Europe generally sells Bresser branded optical products in Europe and distributes Meade’s optical products in Europe.  This distribution relationship will continue after the sale for at least one year.

In conjunction with this sale, the Company also announced that it has completed its formal review of strategic alternatives.

In conjunction with the divestiture, on January 27, 2009, the Company and certain of its subsidiaries entered into the Limited Consent Agreement with Bank of America, N.A. (the “Lender”).  The Limited Consent Agreement released the Lender’s lien on the assets divested and reduced the amount available on the Company’s credit facility.

On January 29, 2009, the Company issued a press release announcing the sale of Meade Europe and entry into the Limited Consent Agreement.

Item 2.01Completion of Acquisition or Disposition

See Item 1.01 above.

Item 9.01Financial Statements and Exhibits

(b) Pro Forma Financial Information.

See Exhibit 99.2 for certain pro forma financial information assuming the completion of the sale of Meade Europe at the beginning of certain specified fiscal periods.

(d) Exhibits.

Exhibit No.	Exhibit Title or Description
10.116	Limited Consent Agreement dated January 27, 2009 by and among Bank of America, N.A., Meade Instruments Corp., Simmons Outdoor Corporation and Coronado Instruments, Inc.
10.117	Purchase Agreement dated January 27, 2009 by and among Meade Instruments Europe Corp., a California corporation, Bresser GmbH, a German corporation, Meade Instruments Corp., a Delaware corporation, Helmut Ebbert, Meade Instruments Europe GmbH & Co. KG and Meade Instruments Verwaltungs GmbH.
99.1	Press Release, dated January 29, 2009, issued by Meade Instruments Corp.
99.2	Unaudited Pro Forma Consolidated Financial Information.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: February 2, 2009	MEADE INSTRUMENTS CORP.
	/s/ Paul E. Ross
	Paul E. Ross,
	Senior Vice President - Finance and Chief Financial Officer

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EXHIBIT INDEX

Exhibit No.	Exhibit Title or Description
10.116	Limited Consent Agreement dated January 27, 2009 by and among Bank of America, N.A., Meade Instruments Corp., Simmons Outdoor Corporation and Coronado Instruments, Inc.
10.117	Purchase Agreement dated January 27, 2009 by and among Meade Instruments Europe Corp., a California corporation, Bresser GmbH, a German corporation, Meade Instruments Corp., a Delaware corporation, Helmut Ebbert, Meade Instruments Europe GmbH & Co. KG and Meade Instruments Verwaltungs GmbH.
99.1	Press Release, dated January 29, 2009, issued by Meade Instruments Corp.
99.2	Unaudited Pro Forma Consolidated Financial Information.

EX-10.116

Exhibit 10.116

LIMITED CONSENT AGREEMENT

This LIMITED CONSENT AGREEMENT (this “Consent”) is dated as of January 27, 2009 and is entered into by and among BANK OF AMERICA, N.A., as lender (the “Lender”), with offices at 55 South Lake Avenue, Suite 900, Pasadena, California 91101, and MEADE INSTRUMENTS CORP., a Delaware corporation (“Meade”), SIMMONS OUTDOOR CORPORATION, a Delaware corporation (“Simmons”), and CORONADO INSTRUMENTS, INC., a California corporation (“Coronado” and together with Meade and Simmons, the “Borrowers” and each individually “Borrower”).

WHEREAS, the Lender and the Borrowers have entered into that certain Amended and Restated Credit Agreement dated as of October 25, 2002 (as amended, restated or modified from time to time, the “Credit Agreement”);

WHEREAS, the Borrowers have informed the Lender that Meade’s Subsidiary, Meade Instruments Europe Corp., a California corporation (“MIEC”), intends to sell all of its interest in Meade Instruments Europe GmbH & Co. KG, a German limited partnership (“Meade Europe”), in a transaction (the “Meade Europe Transaction”) pursuant to a Purchase Agreement of Shares of a German Limited Partnership between Meade, MIEC, Meade Europe, Bresser GmbH, and Helmut Ebbert (the “Purchase Agreement”);

WHEREAS, the Borrowers have informed the Lender that they are in violation of the Minimum EBITDA covenant set forth in Section 7.22 of the Credit Agreement as of November 30, 2008 (the “Existing Default”), which Existing Default constitutes an Event of Default under the Credit Agreement and gives rise to certain default rights and remedies that are available to the Lender in accordance with the Credit Agreement, the other Loan Documents, and applicable law;

WHEREAS, the Lender has reserved the right, in connection with the Existing Default, to exercise one or more of its default rights, remedies, and powers under the Credit Agreement and the other Loan Documents, at law or otherwise at any time without further notice or demand and has informed the Borrowers that the continued funding of any loans or the issuance of any Letters of Credit by the Lender is without prejudice to, and will not constitute a waiver of, the Lender’s default rights and remedies; and

WHEREAS, notwithstanding the occurrence and continuance of the Existing Default, the Borrowers have requested that the Lender consent to the Meade Europe Transaction and the Lender has agreed to such consent pursuant to the terms and conditions set forth herein; provided that nothing in this Consent, nor any failure, at any time or times, to exercise, nor any delay in exercising, any of the Lender’s default rights and remedies shall waive, affect, or diminish any right of the Lender.

NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in the Credit Agreement and this Consent, and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, hereby agree as follows:

ARTICLE I

DEFINITIONS

Section 1.01.Definitions.  Initially capitalized terms used but not defined in this Consent have the respective meanings set forth in the Credit Agreement, as amended hereby.

ARTICLE II

LIMITED CONSENT

Section 2.01.Limited Consent.  Notwithstanding anything contrary in the Credit Agreement or any other provision set forth in the Loan Documents, and subject to the terms, conditions, and other restrictions set forth herein, the Lender hereby consents to the Meade Europe Transaction.  This consent is limited to the Meade Europe Transaction and is not a consent to any other transaction, whether or not similar to the foregoing.  The consent to the Meade Europe Transaction is conditioned upon satisfaction of each of the following conditions precedent thereto, as well as the conditions precedent set forth in Article IV below:

(i)The Borrowers shall have delivered to the Lender an executed copy of the Purchase Agreement together with true and correct copies of all exhibits and schedules thereto and all agreements executed or delivered in connection therewith, all of which must be in form and substance satisfactory to the Lender in its sole discretion;

(ii)Except for the Existing Default, no Default or Event of Default shall have occurred and be continuing or result from the consummation of the Meade Europe Transaction; and

(iii)100% of the cash proceeds of the Meade Europe Transaction to be received by MIEC shall be paid directly to Meade’s account no. 1458927067 maintained with the Lender to be applied first to the Obligations in accordance with the Credit Agreement, second as payment to the Lender in the amount of $750,000 to be held as cash collateral (as more particularly described below), and third to be disbursed to the Borrowers for ordinary working capital purposes.

Upon satisfaction of the foregoing conditions with respect to the Meade Europe Transaction (or concurrently therewith), and upon the Borrowers’ request, the Lender will execute and deliver such lien releases (including UCC-3 financing statement amendments) as may be necessary to effectively terminate any and all of the Lender’s Liens on the property to be sold pursuant to the Meade Europe Transaction, all at the Borrowers’ sole cost and expense.

ARTICLE III

IC LETTER OF CREDIT

Section 3.01.IC Letter of Credit.  The Borrowers have requested that the Lender issue a Letter of Credit in the face amount of $700,000 for the benefit of The Irvine Company (the “IC Letter of Credit”).  The Borrowers have been informed by the Lender and hereby acknowledge that the face amount of the requested IC Letter of Credit would exceed Availability.  Notwithstanding the lack of Availability, but subject to all other terms and conditions set forth in the Credit Agreement with respect to the issuance of Letters of Credit, the Lender hereby agrees to issue the IC Letter of Credit following receipt of the Cash Collateral (as defined below).

Section 3.02.Cash Collateral.  As security for the Borrowers’ obligations relating to the IC Letter of Credit, the Borrowers hereby pledge and assign, and grant to the Lender a continuing security interest in cash collateral in the amount of $750,000 (including all investments, earnings, increases and proceeds thereof, the “Cash Collateral”) to be received by the Lender as described in Section 2.01(iii) above.  The Cash Collateral shall be held by the Lender in a non-interest bearing account in the Lender’s name or in such other manner as the Lender shall elect.  The Lender shall have no obligation to invest the

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Cash Collateral.  The Borrowers shall not have any control whatsoever over the Cash Collateral.  Beyond the exercise of reasonable care to assure the safe custody of the Cash Collateral in the physical possession of the Lender, the Lender shall not have any duty or liability to protect or preserve the Cash Collateral, and shall be relieved of all responsibility for the Cash Collateral upon surrendering it to the Borrowers.  The Lender may apply the Cash Collateral to any amounts payable by the Borrowers from time to time with respect to the Obligations.

Section 3.03.Availability.  Notwithstanding anything to the contrary contained in this Consent or the Credit Agreement, the IC Letter of Credit will not be included in the calculation of Availability.

ARTICLE IV

CONDITIONS PRECEDENT

Section 4.01.Conditions Precedent.  This Consent shall not be binding upon the Lender until each of the following conditions precedent have been satisfied in form and substance satisfactory to the Lender:

(i)The representations and warranties contained herein and in the Credit Agreement, as amended hereby, shall be true and correct in all material respects as of the date hereof as if made on the date hereof, except for such representations and warranties limited by their terms to a specific date;

(ii)The Borrowers shall have delivered to the Lender an executed original copy of this Consent;

(iii)The Borrowers shall have delivered to the Lender executed original copies of each of the Consents and Reaffirmations attached to this Consent;

(iv)The Borrowers shall have paid to the Lender all fees, costs, and expenses owed to and/or incurred by the Lender in connection with this Consent;

(v)Except for the Existing Default, no Default or Event of Default shall have occurred and be continuing; and

(vi)All proceedings taken in connection with the transactions contemplated by this Consent and all documentation and other legal matters incident thereto shall be satisfactory to the Lender in its sole and absolute discretion.

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ARTICLE V

MISCELLANEOUS

Section 5.01.Acknowledgment.  Each Borrower hereby represents and warrants that the execution and delivery of this Consent and compliance by such Borrower with all of the provisions of this Consent:  (a) are within its powers and purposes; (b) have been duly authorized or approved by such Borrower; and (c) when executed and delivered by or on behalf of such Borrower, will constitute valid and binding obligations of such Borrower, enforceable in accordance with their terms.  Each Borrower reaffirms its obligation to pay all amounts due the Lender under the Loan Documents in accordance with the terms thereof, as modified hereby.

Section 5.02.Loan Documents Unmodified.  Except as otherwise specifically modified by this Consent, all terms and provisions of the Credit Agreement and all other Loan Documents, as modified hereby, shall remain in full force and effect.  Nothing contained in this Consent shall in any way impair the validity or enforceability of the Loan Documents, as modified hereby or alter, waive, annul, vary, affect, or impair any provisions, conditions, or covenants contained therein or any rights, powers, or remedies granted therein.  Any lien and/or security interest granted to the Lender in the Collateral set forth in the Credit Agreement or any other Loan Document is and shall remain unchanged and in full force and effect and the Credit Agreement and the other Loan Documents shall continue to secure the payment and performance of all of the Obligations thereunder, as modified hereby, and the Borrowers’ obligations hereunder.

Section 5.03.Parties, Successors and Assigns.  This Consent shall be binding upon and shall inure to the benefit of each of the Borrowers, the Lender, and their respective successors and assigns.

Section 5.04.Counterparts.  This Consent may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which, when taken together shall constitute one and the same instrument.  A facsimile signature shall be deemed effective as an original.

Section 5.05.Headings.  The headings, captions and arrangements used in this Consent are for convenience only and shall not affect the interpretation of this Consent.

Section 5.06.Expenses of the Lender.  The Borrowers agree to pay on demand (a) all reasonable costs and expenses incurred by the Lender in connection with the preparation, negotiation and execution of this Consent and the other Loan Documents executed pursuant hereto and any and all subsequent amendments, modifications, and supplements hereto or thereto, including, without limitation, the costs and fees of the Lender’s legal counsel and the allocated cost of staff counsel, and (b) all costs and expenses reasonably incurred by the Lender in connection with the enforcement or preservation of any rights under the Credit Agreement, this Consent and/or other Loan Documents, including, without limitation, the reasonable costs and fees of the Lender’s legal counsel and the allocated cost of staff counsel.

Section 5.07.Total Agreement.  This Consent, the Credit Agreement, and all other Loan Documents shall constitute the entire agreement between the parties relating to the subject matter hereof, and shall rescind all prior agreements and understandings between the parties hereto relating to the subject matter hereof, and shall not be changed or terminated orally.

Section 5.08.WAIVER OF JURY TRIAL.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, EACH BORROWER AND THE LENDER IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS

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CONSENT, THE CREDIT AGREEMENT, THE OTHER LOAN DOCUMENTS, OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR ANY LENDER-RELATED PERSON OR PARTICIPANT, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS, OR OTHERWISE.  WITHOUT LIMITING THE APPLICABILITY OF ANY OTHER PROVISION OF THE CREDIT AGREEMENT, THE TERMS OF SECTION 12.3 OF THE CREDIT AGREEMENT SHALL APPLY TO THIS CONSENT.

Section 5.09.RELEASE.  THE BORROWERS EACH HEREBY REPRESENT AND WARRANT THAT AS OF THE DATE OF THIS CONSENT THERE ARE NO CLAIMS OR OFFSETS AGAINST OR DEFENSES OR COUNTERCLAIMS TO THE BORROWERS’ OBLIGATIONS UNDER THE CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT, INCLUDING THIS CONSENT.  THE BORROWERS WAIVE AND RELEASE ANY AND ALL SUCH CLAIMS, OFFSETS, DEFENSES OR COUNTERCLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF THIS CONSENT.

THE BORROWERS INTEND THE ABOVE RELEASE TO COVER, ENCOMPASS, RELEASE, AND EXTINGUISH, INTER ALIA, ALL CLAIMS, DEMANDS, AND CAUSES OF ACTION THAT MIGHT OTHERWISE BE RESERVED BY THE CALIFORNIA CIVIL CODE SECTION 1542, WHICH PROVIDES AS FOLLOWS:

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

THE BORROWERS ACKNOWLEDGE THAT THEY MAY HEREAFTER DISCOVER FACTS DIFFERENT FROM OR IN ADDITION TO THOSE NOW KNOWN OR BELIEVED TO BE TRUE WITH RESPECT TO SUCH CLAIMS, DEMANDS, OR CAUSES OF ACTION, AND AGREE THAT THIS CONSENT AND THE ABOVE RELEASE ARE AND WILL REMAIN EFFECTIVE IN ALL RESPECTS NOTWITHSTANDING ANY SUCH DIFFERENCES OR ADDITIONAL FACTS.

[Signature Pages Follow]

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IN WITNESS WHEREOF, the parties have executed and delivered this Consent as of the day and year first above written.

“BORROWERS”:
MEADE INSTRUMENTS CORP.
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer
SIMMONS OUTDOOR CORPORATION
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer
CORONADO INSTRUMENTS, INC.
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer
“LENDER”:
BANK OF AMERICA, N.A.
By:	/s/Robert M. Dalton
Name:	Robert M. Dalton
Title:	Vice President

Signature Page

CONSENTS AND REAFFIRMATIONS

Each of MEADE INSTRUMENTS EUROPE CORP., a California corporation, and MEADE INSTRUMENTS HOLDINGS CORP., a California corporation, hereby acknowledges the execution of, and consents to, the terms and conditions of that certain Limited Consent Agreement dated as of January 27, 2009, among MEADE INSTRUMENTS CORP., SIMMONS OUTDOOR CORP., CORONADO INSTRUMENTS, INC. and BANK OF AMERICA, N.A. (the “Creditor”), and reaffirms its obligations under (a) that certain Continuing Guaranty (the “Guaranty”) dated as of September 24, 2001, made by the undersigned in favor of the Creditor, and (b) that certain Security Agreement (the “Security Agreement”) dated as of September, 2001, by and between the undersigned and the Creditor.  Each of the undersigned acknowledges and agrees that each of the Guaranty and the Security Agreement remain in full force and effect and are hereby ratified and confirmed.

Dated as of January 27, 2009.

MEADE INSTRUMENTS EUROPE CORP., a California corporation
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer
MEADE INSTRUMENTS HOLDINGS CORP., a California corporation
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer

CONSENTS AND REAFFIRMATIONS

Each of MTSC HOLDINGS, INC., a California corporation (“MTSC”), MC HOLDINGS, INC., a California corporation (“MC HOLDINGS”), and MEADE CORONADO HOLDINGS CORP., a California corporation (“MCHC”), hereby acknowledges the execution of, and consents to, the terms and conditions of that certain Limited Consent Agreement dated as of January 27, 2009, among MEADE INSTRUMENTS CORP., SIMMONS OUTDOOR CORP., CORONADO INSTRUMENTS, INC. and BANK OF AMERICA, N.A. (“Creditor”), and reaffirms its obligations under that certain Continuing Guaranty (the “Guaranty”) dated as of September 24, 2001 executed in favor of the Creditor and joined by each of the undersigned pursuant to an Instrument of Joinder, dated as of (i) October 25, 2002 with respect to MTSC and MC HOLDINGS, and (ii) December 1, 2004 with respect to MCHC (respectively, the “Instrument”).  Each of the undersigned acknowledges and agrees that each of the Guaranty and Instrument remain in full force and effect and are hereby ratified and confirmed.

Dated as of January 27, 2009.

MTSC HOLDINGS, INC., a California corporation,
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer
MC HOLDINGS, INC., a California corporation
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer
MEADE CORONADO HOLDINGS CORP., a California corporation
By:	/s/Paul E. Ross
Name:	Paul E. Ross
Title:	Senior Vice President – Finance & Chief Financial Officer

EX-10.117

Exhibit 10.117

Kaufvertrag über KG-Anteile/

Purchase Agreement for shares of a German Limited Partnership (Kommanditgesellschaft)

between/zwischen

1. Meade Instruments Europe Corp., Irvine, California, 6001 Oak Canyon, Irvine, California 92618, USA “Seller”	1. Meade Instruments Europe Corp., Irvine, Kalifornien, 6001 Oak Canyon, Irvine, Kalifornien 92618, USA “Verkäuferin”
2. Bresser GmbH, Gutenbergstr. 2, 46414 Rhede, “Buyer”	2. Bresser GmbH, Gutenbergstr. 2, 46414 Rhede, “Käufer”
3. Meade Instruments Europe GmbH & Co. KG, Gutenbergstr. 2, 46414 Rhede - “Meade KG” -	3. Meade Instruments Europe GmbH & Co. KG, Gutenbergstr. 2, 46414 Rhede - “Meade KG” -
4. Helmut Ebbert, with business address at Gutenbergstraße 2, 46414 Rhede	4. Helmut Ebbert, geschäftsansässig Gutenbergstraße 2, 46414 Rhede
5. Meade Instruments Corp., Irvine, California, 6001 Oak Canyon, Irvine, California 92618, USA, “Meade Corp.”	5. Meade Instruments Corp, Irvine, Kalifornien, 6001 Oak Canyon, Irvine, Kalifornien 92618, USA “Meade Corp.”
6. Meade Instruments Verwaltungs GmbH, Gutenbergstr. 2, 46414 Rhede “Meade GmbH”.	6. Meade Instruments Verwaltungs GmbH, Gutenbergstr. 2, 46414 Rhede “Meade GmbH”.
Preamble	Präambel
A.Seller is the sole Limited Partner of Meade KG, a German Limited Partnership, which is registered in the Commercial Register of the Municipal Court (Amtsgericht) in Coesfeld under HRA 3449 .  Seller has a fully-paid share capital as a limited Partner (Kommanditanteil) of Euro 2.500.000. The share of the Seller in the amount of 1 Million DM was increased by a resolution of the partners dated July 16, 2008 to this amount but the resolution has not yet been recorded with the trade register.	A.Die Verkäuferin ist die alleinige Kommanditistin der Meade KG, einer deutschen Kommanditgesellschaft, die im Handelsregister des Amtsgerichts Coesfeld unter HRA 3449 eingetragen ist.  Die Verkäuferin hat einen voll eingezahlten Kommanditanteil in Höhe von Euro 2.500.000,-. Der Kommanditanteil der Verkäuferin in Höhe von 1 Mio. DM wurde durch Gesellschafterbeschluss vom 16. Juli 2008 auf 2.500.000,- Euro erhöht; der Beschluss wurde jedoch noch nicht im Handelsregister eingetragen.

B.The Seller wishes to sell all of its shares in Meade KG (the “Shares”).  The Buyer wishes to acquire the Shares.	B.Die Verkäuferin möchte alle ihre Kommanditanteile an der Meade KG (“Anteile”) verkaufen.  Der Käufer möchte diese Anteile erwerben.
1. Sale and Transfer of the Shares 1.1The Seller hereby sells and transfers to the Buyer, who accepts such sale and transfer, the Shares in Meade KG having a nominal value of Euro 2,500,000.  The sale of the Shares includes the right to receive any dividends which have not been distributed prior to the date of this Agreement.	1. Verkauf und Übertragung der Anteile 1.1Die Verkäuferin verkauft und überträgt hiermit ihre Anteile an der Meade KG im Nominalwert von Euro 2.500.000,— an den Käufer.  Der Käufer nimmt hiermit den Verkauf und die Abtretung an.  Der Verkauf der Anteile beinhaltet das Recht zum Bezug aller Gewinnausschüttungen, die vor dem Datum dieser Vereinbarung nicht ausgeschüttet wurden.
1.2The effective date for the transfer of the Shares is the date on which this Agreement is executed (the “Transfer Date”) provided that the purchase price as set forth in Sec. 2 of this Agreement has been fully paid.	1.2Der Stichtag für die Übertragung der Anteile ist, vollständige Kaufpreiszahlung gemäß Ziffer 2 dieses Vertrages vorausgesetzt, der Tag der Unterzeichnung dieser Vereinbarung (“Stichtag”).
1.3To the extent that the Seller has claims against Meade KG, especially resulting from shareholders loans, all such claims are also sold and transferred.  The consideration for these claims is covered by the purchase price for the Shares.	1.3Soweit die Verkäuferin Ansprüche gegen die Meade KG insbesondere aus Gesellschafterdarlehen hat, werden sämtliche Forderungen mitverkauft und übertragen.  Das Entgelt ist durch den Kaufpreis für die Anteile abgegolten.
1.4To the extent that Meade KG has other claims than from this Agreement and/or the other agreements concluded in the context of this Agreement against the Seller or Meade Corp., all such claims are hereby agreed to be waived. Orders and purchase agreements for delivery of goods and credit from purchases, in particular, the certain credit memorandum No. 886240 dated January 14, 2009 under which Meade Corp. owes Meade KG USD 58,985.34, are excluded from this waiver.	1.4.Sollten andere Ansprüche der Meade KG als solche aus dieser Vereinbarung und/oder den anderen Vereinbarungen, die im Zusammenhang mit dieser Vereinbarung geschlossen wurden, gegen die Verkäuferin oder Meade Corp. bestehen, werden diese hiermit erlassen. Aufträge und kaufvertragliche Ansprüche sowie Gutschriften aus Kaufverträgen, insbesondere die spezielle Gutschrift Nr. 886240 vom 14. Januar 2009, wonach Meade Corp. der Meade KG einen Betrag von USD 58.985,34 schuldet, sind hiervon ausgenommen.

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1.5Buyer shall not take any actions in terms of Sec. 172 para. 4 German Commercial Code. In the case that any liability of Seller with regard to Meade KG’s debt will be renewed by any action in terms of Sec. 172 para. 4 German Commercial Code taken by the Buyer or its legal successors, Buyer shall indemnify Seller with regard to such liabilities upon first request.	1.5Der Käufer verpflichtet sich, keine Maßnahmen nach § 172 Abs. (4) HGB durchzuführen. Sollte die persönliche Haftung der Verkäuferin für Verbindlichkeiten der Meade KG aufgrund von Maßnahmen im Sinne von § 172 Abs. (4) HGB wieder aufleben, die nach dem Stichtag vom Käufer oder seinen Rechtsnachfolgern vorgenommen werden, stellt der Käufer die Verkäuferin von dieser Haftung auf erstes Anfordern der Verkäuferin frei.
2. Purchase Price 2.1The Buyer pays as purchase price for the Shares an amount of Euro 9,344,000,- (in words: Euro nine million and three hundred forty-four thousand) (hereinafter “Purchase Price”).	2. Kaufpreis 2.1Der Käufer bezahlt für die Anteile einen Kaufpreis von Euro 9.344.000,- (in Worten: Euro neun Millionen und dreihundert vierundvierzigtausend) (nachfolgend “Kaufpreis”).
2.2On 28 January 2009, the Buyer will pay to the Seller the amount of the Purchase Price via wire transfer to the following account: Bank:  Bank of America ABA Number:  121000358 Beneficiary: Meade Instruments Corp. Account Number:  1458927067 Branch Address:  675 Anton Blvd., 2nd Floor , Costa Mesa, CA 92626, USA Bank Swift Number:   BOFAUS3N (if wire is from outside U.S.)	2.2Der Käufer wird der Verkäuferin zum 28. Januar 2009 den Kaufpreis per Blitzüberweisung auf folgendes Konto überweisen: Bank:  Bank of America ABA Nummer:  121000358 Empfänger: Meade Instruments Corp. Konto Nummer:  1458927067 Niederlassungs-Adresse:  675 Anton Blvd., 2nd Floor , Costa Mesa, CA 92626, USA Bank Swift Nummer:   BOFAUS3N (wenn Überweisung von außerhalb der USA)
2.3The parties agree that there are no obligations of Meade KG towards the Seller or Meade Corp. resulting from purchase of products or goods (especially those bearing the trademarks Meade and Coronado) on the Transfer Date. All such obligations shall be paid by Meade KG up to the Transfer Date.	2.3Die Parteien sind sich darüber einig, dass seitens der Meade KG gegenüber der Verkäuferin oder der Meade Corp. am Stichtag keine Verbindlichkeiten aus Wareneinkäufen von Produkten (insbesondere mit den Marken Meade oder Coronado) bestehen. Alle solche Verbindlichkeiten sind durch die Meade KG zum Stichtag auszugleichen.
2.4The Parties assume that no value added tax (“VAT”) will become payable with respect to the sale and transfer of the Shares pursuant to this Agreement (Sec. 1 (1a) of the German VAT Act). To	2.4Die Parteien gehen davon aus, dass der Verkauf und die Übertragung der Anteile nach diesem Vertrag nicht umsatzsteuerpflichtig ist (§ 1 Abs. (1a) UStG). Soweit Umsatzsteuer erhoben

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the extent that VAT is assessed, it shall become payable by Buyer in addition to the Purchase Price. Buyer may (to the extent possible and permissible) pay the VAT by assigning to Seller its VAT reimbursement claim, provided that Buyer signs and files any assignment notice required to be filed with the competent Tax Authority and such authority accepts agrees to such assignment. To the extent that the competent Tax Authority requests payment of the VAT in cash, Buyer shall, upon receipt of an invoice within the meaning of Sec. 14 German VAT Act stating the amount of VAT promptly pay the VAT to Seller or, upon Seller’s request, to the competent Tax Authority on behalf of Seller.	werden sollte, ist diese vom Käufer zusätzlich zum Kaufpreis zu entrichten. Soweit möglich kann der Käufer die Umsatzsteuer durch Abtretung seines entsprechenden Vorsteuererstattungsanspruchs an die Verkäuferin begleichen, soweit der Käufer die entsprechende Abtretung gegenüber der Finanzbehörde erklärt und diese der Abtretung zustimmt. Sollte die Finanzbehörde Zahlung verlangen, wird der Käufer nach Rechnungsstellung gemäß § 14 UStG unter Ausweis der Umsatzsteuer durch die Verkäuferin unverzüglich die Umsatzsteuer an die Verkäuferin oder, auf deren Verlangen, für diese an die Steuerbehörde zahlen.
3. Representations and Warranties of the Seller 3.1In concluding this Agreement, the Buyer relies on the correctness of the representations and warranties made by the Seller hereinafter.  The Seller represents expressly and warrants in terms of Sec. 311 German Civil Code that the following representations and warranties with regard to Meade KG are complete and correct as of the Transfer Date. The parties agree that there is no guaranteed quality in terms of Sec. 444 German Civil Code by the Seller.	3. Gewährleistungen der Verkäuferin 3.1Der Käufer vertraut beim Abschluss dieser Vereinbarung auf die Richtigkeit der nachfolgend durch die Verkäuferin abgegebenen Zusicherungen.  Die Verkäuferin sichert im Sinne eines selbständigen Garantieversprechens (§ 311 BGB)  zu, dass die folgenden Angaben in Bezug auf die Meade KG am Stichtag vollständig und richtig sind. Die Parteien sind sich darüber einig, dass eine Beschaffenheitsgarantie im Sinne von § 444 BGB von der Verkäuferin nicht übernommen wird.
3.2The statements in the Preamble to this Agreement about Meade KG and the participations therein are complete and correct.  Meade KG is duly organized and validly existing under the laws of the Federal Republic of Germany.  The Shares are validly issued and fully paid.  To Seller’s Knowledge, the version of the Partnership Agreement of Meade KG according to the partners resolution dated July 16, 2008  is the current version, whereas a version of the Partnership Agreement containing all amendments does not exist.	3.2Die in der Präambel dieser Vereinbarung über die Meade KG und ihre Beteiligungen daran gemachten Angaben sind vollständig und richtig.  Die Meade KG ist ordnungsgemäß errichtet und besteht rechtswirksam. Die Anteile an der Meade KG sind wirksam begründet und voll eingezahlt. Nach der Kenntnis der Verkäuferin entspricht der Gesellschaftsvertrag der Meade KG in der Fassung des Gesellschafterbeschlusses vom 16. Juli 2008 der aktuellen Fassung, wobei eine konsolidierte Fassung des Gesellschaftsvertrages mit allen Änderungen nicht vorliegt.

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3.3Seller is the owner and holder of all of the Shares, free and clear of all encumbrances, pledges or other third party rights.  Upon the transfer of the Shares to Buyer in accordance with this Agreement and payment therefor, Buyer will become the owner andholder of the Shares free and clear of all encumbrances.	3.3Die Verkäuferin ist Inhaber und Eigentümer der Anteile, die frei von Belastungen, Pfandrechten oder sonstigen Rechten Dritter sind. Mit der Übertragung der Anteile auf den Käufer durch diesen Vertrag und die vertragsgemäße Zahlung, wird der Käufer Inhaber und Eigentümer der Anteile frei von allen Belastungen.
3.4Seller has not taken any action to dissolve Meade KG.	3.4Die Verkäuferin hat keinerlei Maßnahmen durchgeführt, um die Meade KG aufzulösen.
3.5To the Seller’s Knowledge, the Seller has full power and authority to sell and transfer the Shares in accordance with the terms of this Agreement without the consent of any third party being required or such sale violating or triggering rights of any third party, except for such consents which have been obtained.	3.5Nach Kenntnis der Verkäuferin ist die Verkäuferin berechtigt, die Anteile an der Meade KG nach dieser Vereinbarung ohne Zustimmung Dritter zu verkaufen und zu übertragen. Die Übertragung der Anteile von der Verkäuferin an den Käufer verletzt oder begründet keine Rechte Dritter, mit Ausnahme der Zustimmungen, die erteilt wurden.
Meade GmbH, as general partner of Meade KG, hereby approves to the sale and transfer of the Shares to the Buyer.	Die Meade GmbH als persönlich haftende Gesellschafterin der Meade KG stimmt dem Verkauf und der Übertragung der Anteile auf den Käufer hiermit zu.
3.6If one or several of the representations and warranties made by the Seller in Sec. 3 are not correct or complete (“Breach”), Seller shall - upon request of the Buyer - remedy the Breach within a reasonable time period. Buyer shall be entitled to claim damages, provided, however, that this shall not restrict the right of the Seller to remedy the Breach according to sentence 1.	3.6Sind eine oder mehrere der von der Verkäuferin in § 3 abgegebenen Zusicherungen unrichtig oder unvollständig, kann der Käufer von der Verkäuferin Herstellung des zugesicherten Zustandes innerhalb angemessener Frist verlangen. Der Käufer ist berechtigt, Schadensersatz zu verlangen, ohne dass dadurch das Recht der Verkäuferin, nach Satz 1 den zugesicherten Zustand herzustellen, beschränkt wird.

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	3.7Except as expressly set forth in this Agreement, any further rights of Buyer with regard to the representations and warranties or other statements, in particular but not limited to any further representations under statutory law, any pre-contractual (Sec. 311 para. 2, 280 German Civil Code) or contractual claims under statutory law (§§ 280 — 282 German Civil Code), any claims with respect to rights regarding a challenge or rescission for lack of essential characteristics or claims for frustration of contract, shall be expressly excluded.	3.7Über die in diesem Vertrag ausdrücklich geregelten Ansprüche und Rechte des Käufers hinausgehende Ansprüche und Rechte wegen Unrichtigkeit oder Unvollständigkeit der Zusicherungen oder sonstiger Erklärungen, insbesondere weitergehende gesetzliche Gewährleistungsansprüche, Ansprüche wegen Verletzung vorvertraglicher (§§ 311 Abs. 2 i.V.m. § 280 BGB) oder vertraglicher Pflichten (§§ 280, bis 282 BGB), Anfechtungs-/Rücktrittsrechte wegen Fehlens wesentlicher Eigenschaften und Ansprüche wegen Fehlens bzw. Wegfalls der Geschäftsgrundlage sind ausdrücklich ausgeschlossen.
	Except for the representations and warranties expressly made in this Agreement, Seller makes no explicit or implied representations, warranties or guarantees with respect to the Shares or Meade KG. Subject to the representations and indemnities expressly contained in this Agreement, Buyer agrees to accept the Shares and Meade KG in the condition as of the Transfer Date, based upon its own examination with respect thereto.	Neben den ausdrücklich in dieser Vereinbarung enthaltenen Zusicherungen macht die Verkäuferin keine weiteren Zusicherungen mit Bezug auf die Anteile oder die Meade KG. Vorbehaltlich der in diesem Vertrag ausdrücklich geregelten Zusicherungen akzeptiert der Käufer die Anteile und die Meade KG in dem Zustand am Stichtag, wie er diesem aufgrund seiner eigenen Untersuchungen bekannt ist.
4.Taxes The Buyer bears and pays all taxes and public duties of Meade KG as well as the Corporation Tax of the Seller, as far as it relates to the Shares transferred under this Agreement and which relate to any period prior to the Transfer Date or any later period including the Transfer Date as requested by the tax authorities after the Transfer Date — the date of the receipt of the request being decisive. The Buyer receives all future reimbursements of taxes and public duties related to periods until the Transfer Date. The above is applicable unless otherwise provided in clause 4.2 of this Agreement.		4.Steuern   Der Käufer trägt und bezahlt alle Steuern und öffentlich-rechtlichen Abgaben der Meade KG sowie die Körperschaftsteuer der Verkäuferin sowohl für den Zeitraum bis zum Stichtag als auch für jeden späteren Zeitraum einschließlich des Stichtages, soweit sie auf den veräußerten Kommanditanteil entfallen und von den Steuerbehörden nach dem Stichtag angefordert werden - maßgeblich ist der Zeitpunkt des Zugangs der Anforderung. Der Käufer erhält alle zukünftigen Erstattungen für oben genannte Steuern und öffentlich-rechtlichen Abgaben für vergangene Zeiträume bis zum Stichtag. Dies gilt vorbehaltlich der Regelungen unter 4.2 dieser Vereinbarung.

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If Seller is assessed any taxes or audited therefor, Buyer and Meade KG shall, jointly and severally, reimburse the Seller for any Corporate Taxes and any costs and expenses (including attorneys’ fees) incurred by Seller in responding to or defending any claims, investigations or proceedings with respect to any assessment or audit of Corporate Taxes.	Falls gegenüber der Verkäuferin aufgrund steuerlicher Veranlagungen oder Betriebsprüfungen Steuern festgesetzt werden, werden der Käufer und die Meade KG der Verkäuferin gesamtschuldnerisch alle Körperschaftssteuern sowie Kosten und Aufwendungen (incl. Anwaltsgebühren), die bei der Verkäuferin anfallen ersetzen, um erhobenen Ansprüchen, eingeleiteten Untersuchungen oder Verfahren aus Veranlagungen oder Betriebsprüfungen Folge zu leisten oder diese anzufechten.
4.1Real Estate Transfer Tax	4.1Grunderwerbsteuer
Seller and Buyer agree that due to the transfer of the Shares, the commercial real estate of Meade KG will be subject to a real estate transfer tax (“Real Estate Transfer Tax”). Buyer and Seller mutually agree that the Buyer bears the Real Estate Transfer Tax in full.	Verkäuferin und Käufer sind sich darüber einig, dass im Zuge der Anteilsübertragung Grunderwerbsteuer für den betrieblichen Grundbesitz der Meade KG anfällt. Die Grunderwerbsteuer trägt allein der Käufer.
4.2Trade Tax and Corporation Tax out of Capital Gain	4.2Gewerbesteuer und Körperschaftssteuer aus Veräußerungserträgen
Seller and Buyer agree that trade tax and Corporation Tax of the Seller of the business year in which the transfer of the Shares takes place (3/1/2008 — 2/28/2009) shall be paid by Seller to the extent of any capital gain resulting from the sale of the Shares under this Agreement.	Verkäuferin und Käufer sind sich darüber einig, dass die für das Geschäftsjahr der Anteilsübertragung (1.3.2008 — 28.2.2009) festzusetzende Körperschaftssteuer der Verkäuferin und Gewerbesteuer insoweit wirtschaftlich von der Verkäuferin zu tragen ist, als sie auf einen Veräußerungsgewinn der Verkäuferin aus der Anteilsveräußerung nach dieser Vereinbarung entfällt.
According to calculations made available to both Buyer and Seller, the transfer of the Shares according to this Agreement will lead to a capital loss. Insofar it is the understanding of all parties, that this transaction will not lead to additional Corporation Tax of the Seller as well as Trade Tax of Meade KG.	Nach den dem Käufer und der Verkäuferin vorliegenden Berechnungen wird sich aus der Transaktion ein Veräußerungsverlust ergeben. Insoweit gehen die Parteien davon aus, dass aus der Anteilsübertragung keine zusätzlich festzusetzende Körperschaftsteuer des Verkäufers und Gewerbesteuer der Meade KG entstehen wird.

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	4.3Tax Audit	4.3Betriebsprüfung
	The Buyer is liable for all taxes and related assessments or charges of Meade KG which result from an external tax audit and relates to the period up to the Transfer Date and the period thereafter including the Transfer Date.  As discussed above, the Buyer and Meade KG shall, jointly and severally, reimburse the Seller for any such taxes and related assessments or charges levied against the Seller.	Der Käufer haftet für sämtliche Steuern und darauf entfallende Nebenleistungen der Meade KG, die aufgrund einer steuerlichen Außenprüfung für den Zeitraum bis zum Stichtag oder danach einschließlich des Stichtages festgesetzt werden. Wie oben beschrieben, werden der Käufer und die Meade KG gesamtschuldnerisch alle daraus resultierenden Steuern und steuerliche Nebenleistungen erstatten, welche gegen die Verkäuferin festgesetzt werden.
	4.4The period of limitations for all claims of the Buyer for breaches of the representations and warranties set forth in Sec. 3 of this Agreement will expire on December 31, 2010.	4.4Die Verjährungsfrist für alle Gewährleistungsansprüche des Käufers gemäß Ziffer 3 dieser Vereinbarung endet am 31. Dezember 2010.
5.Distribution Agreement		5.Vertriebsvertrag
5.1The parties hereby agree to an exclusive Distribution Agreement. This Distribution Agreement is attached to this notarial deed as Annex 2.		5.1Die Parteien schließen hiermit einen ausschließlichen Vertriebsvertrag ab. Dieser ist dieser notariellen Urkunde als Anlage 2 beigefügt.
5.2The parties agree to work together in a cooperative and constructive manner in the future and to assist each other.  If e.g. products are being “listed” with customers or resellers located in the Territory (as defined in the Distribution Agreement) in the name of the Seller, such product listings are being transferred to the Buyer, in order to secure and alleviate the future sale of the products. The same holds for special product allowances or certifications.		5.2Die Parteien verpflichten sich, konstruktiv und kooperativ weiterzuarbeiten und einander zu unterstützen. Soweit beispielsweise bei Kunden oder Weiterverkäufern mit Sitz in den im Vertriebsvertrag festgelegten Gebiet die Produkte der Unternehmen auf den Namen der Verkäuferin gelistet sind, werden diese Listings auf den Käufer übertragen, um den weiteren Absatz zu erleichtern und sicherzustellen. Gleiches gilt beispielsweise auch für bestimmte Produkt-Zulassungen oder Zertifizierungen.

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6.Non-Competition Agreement	6.Wettbewerbsverbot
The Seller undertakes for a period up to 31 December 2011 not to invest directly or indirectly in any German or European reseller operation or business which is competitive with the business of Meade KG; provided that if the Distribution Agreement is terminated, Seller will be entitled to appoint other distributors in the Territory (as defined in the Distribution Agreement). This restriction does not apply to the purchase of shares in a stock company which are publicly traded on a stock exchange so long as the Seller does not acquire more than five percent of the issued stock.	Die Verkäuferin wird bis zum 31. Dezember 2011 keine unmittelbaren oder mittelbaren Investitionen in einen deutschen oder europäischen Händler oder Verkäufer tätigen, der mit dem Geschäft der Meade KG konkurriert; die Verkäuferin ist allerdings berechtigt, bei Beendigung des Vertriebsvertrages andere Eigenhändler in dem Vertriebsgebiet (wie in dem Vertriebsvertrag definiert) zu bestellen. Von dieser Beschränkung ausgenommen ist der Kauf von Aktien an einer börsennotierten Aktiengesellschaft, sofern die Verkäuferin nicht mehr als 5% der ausgegebenen Aktien erwirbt.
7.Trademarks Seller hereby assigns and causes Meade Corp. to assign to Buyer all of their right, title and interest in and to all intellectual property related to or containing the Bresser trademarks and related trademarks and all domain names used worldwide (see Annexes 3 and 4 to this notarial deed). If necessary, the parties will sign separate assignment forms or deeds.	7.Marken Die Verkäuferin überträgt hiermit weltweit und veranlasst Meade Corp. sämtliche Marken und anderen Kennzeichen betreffend “Bresser” an den Käufer zu übertragen (gemäß Anlagen 3 und 4 zu dieser notariellen Urkunde). Dies gilt auch für Marken und Kennzeichen, die das Kennzeichen enthalten sowie sämtliche Domains weltweit. Soweit dies erforderlich ist, werden hierüber gesonderte Abtretungsformulare unterzeichnet.

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8.Confidentiality The Seller and the Buyer undertake to keep strictly secret all matters and in particular all business and all trade secrets of Meade KG known to them.  The parties will only use such matters or secrets for the purposes of this Agreement and Meade KG’s business operations.  The parties may inform authorities to the extent they are legally bound to give the information.	8.Vertraulichkeit Die Verkäuferin und der Käufer halten alle Angelegenheiten und insbesondere Geschäfts- und Betriebsgeheimnisse der Meade KG, die ihnen bekannt werden, geheim.  Die Vertragspartner werden diese Angelegenheiten und Geschäftsgeheimnisse nur für Zwecke dieser Vereinbarung und den Geschäftsbetrieb der Meade KG nutzen.  Die Vertragspartner können Behörden in dem Umfang, in dem sie gesetzlich dazu verpflichtet sind, informieren.
The Seller undertakes for a period up to 31. December 2011 not to cause or influence any worker, employee, agent or adviser (including lawyers, certified public accountants and tax advisers) now employed or retained by Meade KG to work in any way whatsoever for a competitor of Meade KG or to cause termination of an existing relationship with Meade KG.	Die Verkäuferin wird für den Zeitraum bis zum 31. Dezember 2011 keinen Arbeiter, Angestellten, Agenten oder Berater (einschließlich Anwälte, Wirtschaftsprüfer und Steuerberater), die bei der Meade KG angestellt oder tätig sind, in irgendeiner Weise beeinflussen, für einen Konkurrenten der Meade KG tätig zu werden oder die bestehenden Rechtsbeziehungen mit der Meade KG zu beenden.
9.Miscellaneous	9.Verschiedenes
9.1This Agreement is construed under material German Laws, especially the German Civil Code (BGB) and the German Commercial Code (HGB).	9.1Der Vertrag unterliegt deutschem materiellem Recht, insbesondere dem HGB und dem BGB.
9.2Place of jurisdiction is Rhede.	9.2Gerichtsstand ist Rhede.
9.3If a provision of this Agreement is invalid or does not contain a necessary provision, the other provisions of this Agreement will remain valid.  Instead of an invalid provision or a missing necessary provision, a legally valid arrangement which corresponds as closely as possible to the intent of the parties or their presumed intent will be deemed to have been agreed upon.	9.3Im Falle der Unwirksamkeit einer Bestimmung dieser Vereinbarung oder des Fehlens einer Bestimmung bleiben die anderen Bestimmungen in Kraft. Anstatt der unwirksamen oder fehlenden Bestimmung werden die Vertragspartner eine der unwirksamen bzw. fehlenden Bestimmung möglichst nahe kommende Ersatzregelung treffen.

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9.4Neither party will issue any press release or public announcements with respect to the transaction contemplated in this Agreement without the prior written consent of the other party. However, Seller may make any such disclosure that is determined in the opinion of legal counsel to be required by any United States securities laws or other applicable laws.	9.4Keine Partei wird Presseerklärungen oder eine öffentliche Verlautbarungen in Bezug auf die in dieser Vereinbarung beschriebenen Transaktionen ohne schriftliche vorherige Genehmigung der anderen Partei abgeben. Die Verkäuferin darf allerdings solche Verlautbarungen abgeben, die nach den US-Börsenbestimmungen oder anderen Gesetzen entsprechend anwaltlicher Beratung erforderlich sind.
9.5The German text of this Purchase Agreement for Shares of a German Limited Partnership (Kommanditgesellschaft) prevails. The English text of this Purchase Agreement for Shares of a German Limited Partnership (Kommanditgesellschaft) is not part of this notarial deed, but a non-binding convenience translation.	9.5Der deutsche Text dieses Kaufvertrages über KG-Anteile hat Vorrang. Der englische Text dieses Kaufvertrages über KG-Anteile ist nicht Bestandteil dieser notariellen Urkunde, sondern nur eine unverbindliche Übersetzung.
9.6Meade KG owns real estate in the form of a hereditary building right. The parties will — if necessary - create a notarially certified copy of this Agreement and present this to the land registry.	9.6Die Meade KG hat Grundbesitz in der Form eines Erbbaurechts. Die Parteien werden — falls nötig - eine notariell beglaubigte Fassung des Vertrages errichten und diese dem Grundbuchamt vorlegen.
9.7This Agreement and the written documents executed pursuant to this Agreement set forth the entire understanding and agreement of the parties hereto with respect to the transactions contemplated herein and may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties.  No modification or amendment of or supplement to this Agreement shall be valid or effective unless the same is in writing, provided that notarization is not required.	9.7Diese Vereinbarung und ihre Anlagen stellen die gesamte Vereinbarung zwischen den Parteien bezüglich des Verkauf der Anteile dar und werden nicht durch frühere, gleichzeitige oder spätere anders lautende mündliche Äußerungen abgeändert. Änderungen dieses Vertrages sind nur wirksam, wenn sie schriftlich erfolgen, wenn nicht notarielle Beurkundung erforderlich ist.

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9.8The Buyer and its CEO Helmut Ebbert represent and warrant to Meade Corp. and the Seller that during the period beginning November 1, 2008 and ending December 16, 2008 they did not take, and did not authorize or permit any of Meade KG’s employees, officers, affiliates, representatives or agents to take, directly or indirectly, any action to initiate, facilitate, respond to, solicit, negotiate, encourage , accept or otherwise pursue any offer or inquiry from any person or entity regarding the sale of Meade KG (whether by merger, reorganization, recapitalization, consolidation, or other business combination or disposition or sale of assets); and Helmut Ebbert did not disclose the existence of the proposal by Bushnell, Inc. or one of its affiliates to purchase Meade KG or the terms thereof, except to Meade KG’s officers, employees and agents, Meade KG’s lenders and their representatives and the owners of the real estate during the above period.

9.8Der Käufer und ihr Geschäftsführer Helmut Ebbert persönlich erklären und gewährleisten gegenüber der Verkäuferin und Meade Corp., dass in der Zeit zwischen 1. November 2008 und 16.12. 2008 sie keinerlei Maßnahmen angeordnet oder getroffen haben oder Arbeitnehmern oder Vertretern oder Organen gestattet haben, direkt oder indirekt Maßnahmen zu initiieren, zu ermöglichen, darauf zu antworten, herauszufordern, zu verhandeln, dazu anzuregen, zu akzeptieren oder irgendeiner anderen Weise zu verfolgen betreffend irgendein Angebot oder eine Nachfrage von einer 3. Person oder Einheit über den Verkauf der Meade KG (gleich ob durch Verschmelzung, Reorganisation, Kapitalerhöhung, Konsolidierung oder andere Geschäftskombination oder Erwerb von Vermögensgegenständen). Darüber hinaus erklärt und gewährleistet Helmut Ebbert, dass er das Angebot und die Bedingungen der Bushnell, Inc. oder eines mit dieser verbundenen Unternehmens betreffend den Kauf der Meade KG nicht offen gelegt hat, außer gegenüber Organmitgliedern, Mitarbeitern oder Vertretern der Meade KG sowie deren Kreditgebern und deren Vertretern und den Grundstückseigentümern.

9.9Seller shall bear the costs for notarization and registration of the sale and transfer of the Shares with the Commercial Register.

9.9Die Kosten für die Beurkundung und Anmeldung der Veräußerung und Übertragung der Anteile zum Handelsregister trägt die Verkäuferin.

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EX-99.1

Exhibit 99.1

Meade Instruments Corporation 6001 OAK CANYON, IRVINE, CALIFORNIA 92618-5200 U.S.A. (949) 451-1450 · FAX: (949) 451-1460 · www.meade.com

Meade Instruments Corp.	The Piacente Group, Inc.
Paul Ross, CFO	Shelley Young
Tel: 949-451-1450	Tel: 212-481-2050
Fax: 949-451-1460	Email:shelley@tpg-ir.com

MEADE INSTRUMENTS ANNOUNCES SALE OF MEADE EUROPE OPERATIONS FOR
GROSS CASH PROCEEDS OF US$12.4 MILLION;

COMPLETES FORMAL REVIEW OF STRATEGIC ALTERNATIVES

IRVINE, Calif. —January 29, 2009 — Meade Instruments Corp. (Nasdaq GM: MEAD), a leading designer and manufacturer of optical products, including telescopes and binoculars, today announced that it has signed and closed an agreement to sell its European subsidiary (known as “Meade Europe”) to a European management-led buy-out group, Bresser GmbH, for gross cash proceeds of €9.4 million (or approximately US$12.4 million).  Meade Europe distributes the Company’s products and also sells optical products under the Bresser brand name, which is primarily recognized in Europe.  Meade also signed an exclusive distribution agreement setting terms for Meade Europe to continue to purchase product from the Company and distribute the Company’s Meade and Coronado branded products throughout Europe.

In conjunction with the divestiture, the Company announced that it has completed its formal review of strategic alternatives and has disbanded the Strategic Alternatives Committee of the Board of Directors.

Tim McQuay, Chairman of the Strategic Alternatives Committee commented, “After an extensive analysis of a broad range of strategic alternatives by our Committee, the Board of Directors has approved the sale of our European subsidiary.  This divestiture is an important step in securing liquidity for the Company in this very difficult retail environment.  While this completes the formal review of strategic alternatives, of course we will continue to evaluate our business plan and operations with a view toward rebuilding shareholder value.”

The Company expects to continue a strong relationship with the Meade Europe team under its new ownership and both parties are committed to working together to ensure a smooth transition.

In connection with this sale, the Company also entered into a Limited Consent Agreement with its primary lender, Bank of America, N.A., which released the lender’s interest in the collateral sold.  As of the closing, the Company has no short or long-term debt on its balance sheet.

ABOUT MEADE INSTRUMENTS

Meade Instruments is a leading designer and manufacturer of optical products including telescopes and accessories for the beginning to serious amateur astronomer. Meade offers a complete line of binoculars that address the needs of everyone from the casual observer to the serious sporting or birding observer. The Company distributes its products worldwide through a network of specialty retailers, mass merchandisers and domestic and foreign distributors. Additional information on Meade is available at www.meade.com.

“Safe-Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This news release may contain comments and forward-looking statements based on current plans, expectations, events, and financial and industry trends that may affect the Company’s future operating results and financial position.   Such statements involve risks and uncertainties which cannot be predicted or quantified and which may cause future activities and results of operations to differ materially from those discussed above. Such risks and uncertainties include, without limitation: the sufficiency of the divestiture to satisfy the Company’s liquidity needs; whether the level of sales through the divested distributor will be sustained; whether the Company will execute on other strategic alternatives in the future; as well as the other risks and uncertainties previously set forth in the Company’s filings with the Securities and Exchange Commission.  For additional information, please refer to the Company’s filings with the Securities and Exchange Commission.

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EX-99.2

Exhibit 99.2

MEADE INSTRUMENTS CORP.

UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

The following pro forma consolidated financial information is based on the historical financial statements of Meade Instruments Corp. and its subsidiaries (the “Company”), including certain pro forma adjustments, and has been prepared to illustrate the pro forma effect of the sale of Meade Instruments Europe GmbH & Co. KG (“Meade Europe”).

business.

The unaudited pro forma consolidated statements of operations for the nine months ended November 30, 2008 and for the fiscal year ended February 29, 2008 assume that the disposition of Meade Europe occurred prior to those periods. The statements of operations do not include any gain or loss on the sale or costs associated with the sale of the business. The unaudited pro forma consolidated balance sheet as of November 30, 2008 is presented as if the disposition of Meade Europe had occurred as of that date.

The unaudited pro forma consolidated financial information has been prepared based upon available information and management estimates; actual amounts may differ from these estimated amounts. The unaudited pro forma consolidated financial statements are not necessarily indicative of the financial position or results of operations that might have occurred had the disposition occurred as of the dates stated above. The pro forma adjustments are described in the notes to the pro forma financial statements.

The unaudited pro forma consolidated financial information should be read in conjunction with the audited financial statements and notes and related Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 29, 2008 and unaudited interim financial statements and the related MD&A included in the Company’s Quarterly Report on Form 10-Q for the nine months ended November 30, 2008.

MEADE INSTRUMENTS CORP.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Nine Months Ended November 30, 2008
	As Reported Unaudited			Unaudited, Pro Forma Adjustments				Unaudited, Pro Forma as Adjusted
Net sales	$	47,963		$	(23,294	)	(a)	$	24,669
Cost of sales	37,289			(15,721		)	(a)	21,568
Gross profit	10,674			(7,573		)		3,101
Selling expenses	6,320			(2,888		)	(a)	3,432
General and administrative expenses	9,316			(2,230		)	(a)	7,505
				419			(b)
Gain on brand sales	(5,203		)	—				(5,203		)
ESOP contribution expense	179			—				179
Restructuring Costs	1,548			—				1,548
Research and development expenses	1,301			—				1,301
Operating income (loss)	(2,787		)	(2,874		)		(5,661		)
Interest expense	203			(34		)	(a)	169
Loss before income taxes	(2,990		)	(2,840		)		(5,830		)
Income tax expense	62			(62		)	(a)	—
Net loss	$	(3,052	)	$	(2,778	)		$	(5,830	)
Net loss per share — basic and diluted	$	(0.13	)					$	(0.25	)
Weighted average number of shares outstanding — basic and diluted	23,377							23,360

MEADE INSTRUMENTS CORP.

UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share amounts)

	Fiscal Year Ended February 29, 2008
	As Reported Unaudited			Unaudited, Pro Forma Adjustments				Unaudited, Pro Forma as Adjusted
Net sales	$	98,539		$	(34,834	)	(a)	$	63,705
Cost of sales	85,135			(23,943		)	(a)	61,192
Gross profit	13,404			(10,891		)		2,513
Selling expenses	12,923			(3,819		)	(a)	9,104
General and administrative expenses	11,708			(2,192		)	(a)	9,516
Restructuring Costs	365			—				365
ESOP contribution expense	235			—				235
Goodwill Impairment	1,593			—				1,593
Research and development expenses	1,887			—				1,887
Operating income (loss)	(15,307		)	(4,880		)		(20,187		)
Interest expense	1,300			(215		)	(a)	1,085
Loss before income taxes	(16,607		)	(4,665		)		(21,272		)
Income tax expense	1,114			(1,114		)	(a)	—
Net loss	$	(17,721	)	$	(3,551	)		$	(21,272	)
Net loss per share — basic and diluted	$	(0.81	)					$	(0.97	)
Weighted average number of shares outstanding — basic and diluted	21,841							21,841

MEADE INSTRUMENTS CORP.
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF NOVEMBER 30, 2008

(In thousands)

	As Reported, Unaudited			Unaudited, Pro Forma Adjustments				Unaudited, Pro Forma as Adjusted
ASSETS
Current assets:
Cash	$	354		$	11,895	(c)		$	12,249
Accounts receivable, net	18,539			(12,850		)	(a)	5,689
Inventories, net	16,249			(4,928		)	(a)	11,321
Prepaid expenses and other current assets	530			534		(a)		1,064
Total current assets	35,672			(5,349		)		30,323
Goodwill	1,548			(1,548		)	(a)	—
Acquisition-related intangible assets, net	1,356			—				1,356
Property and equipment, net	3,046			(2,297		)	(a)	749
Other assets, net	188			—				188
	$	41,810		$	(9,194	)		$	32,616
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Bank lines of credit	$	5,967		$	(5,967	)	(a)	$	—
Accounts payable	7,150			(1,045		)	(a)	6,105
Accrued liabilities	5,376			(1,614		)	(a)	4,181
				419			(b)
Accrued lease termination fee	1,200			—				1,200
Income taxes payable	838			(729		)	(a)	109
Current portion of long-term debt	174			(174		)	(a)	—
Total current liabilities	20,705			(9,110		)		11,595
Long-term debt	480			(480		)	(a)	—
Deferred income taxes	379			(316		)	(a)	63
Deferred rent	174			—				174
Commitments and contingencies
Stockholders’ equity:
Common stock; $0.01 par value; 50,000 shares authorized; 23,377 shares issued and outstanding at November 30, 2008	233			—				233
Additional paid-in capital	51,176			(977		)	(a)	50,199
Retained deficit	(31,880		)	(9,635		)	(a)	(29,564		)
				11,951		(d)
Deferred stock compensation	(84		)	—				(84		)
Accumulated other comprehensive income	627			(627		)	(a)	—
Total stockholders’ equity	20,072			712				20,784
	$	41,810		$	(9,194	)		$	32,616

MEADE INSTRUMENTS CORP.
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

1.    BASIS OF PRESENTATION

The accompanying unaudited pro forma consolidated financial statements give effect to the pro forma adjustments necessary to reflect the disposition of the Meade Europe business as if the disposition occurred at the beginning of the periods presented in the pro forma statements of earnings and as of November 30, 2008 in the pro forma balance sheet.

2.    PRO FORMA ADJUSTMENTS

The unaudited pro forma consolidated statements of operations and balance sheet reflect the effect of the following pro forma adjustments:

a)	To reflect the sale of Meade Europe.
b)	To reflect investment banking fees incurred relating to the sale of Meade Europe.
c)	Increase in cash due to proceeds from sale of Meade Europe, offset slightly by cash used to pay down bank lines of credit and investment banking fees
d)	Gross proceeds from the sale of Meade Europe, reflected as a decrease to Retained deficit as of November 30, 2008. The actual sale of Meade Europe occurred on January 27, 2009 and the actual gain or loss on the sale will be recorded in the fourth quarter of fiscal 2009. This gain or loss will be materially higher than the gain reflected herein.