AGREEMENT

         Agreement,  dated as of October 28,  1999,  between  Base Ten  Systems,
Inc.,  a  New  Jersey  corporation  (the  "Company"),   and  Thomas  E.  Gardner
("Gardner").

         In consideration of the mutual promises herein  contained,  the parties
hereto hereby agree as follows:

                  1.  Resignation.  The parties hereto  acknowledge that Gardner
has resigned as President and Chief  Executive  Officer of the Company and as an
officer  of the  Company  and  its  subsidiaries  effective  October  28,  1999.
Effective on November 12, 1999 (the "Effective Date"), Gardner hereby resigns as
an employee and as a director of the Company and its subsidiaries.

                  2. Termination of Agreements;  No Further Rights.  The parties
hereto agree that the  employment  agreement,  dated as of October 17, 1997 (the
"Employment  Agreement"),  between  the  Company and Gardner and the amended and
restated change in control agreement,  dated as of October 17, 1997 (the "Change
in Control  Agreement"),  between the Company  and  Gardner,  and all rights and
obligations of the parties thereunder, are hereby terminated. The parties hereto
agree that, effective as of the Effective Date, Gardner shall not be entitled to
receive any further  compensation  or benefits from the Company,  or rights with
respect to the  Common  Stock,  under the  Employment  Agreement,  the Change in
Control  Agreement,  any other  agreement  or  otherwise,  except  as  expressly
provided in Sections 3, 4, 5 and 6 of this Agreement.

                  3.  Payments.   Simultaneously  with  the  execution  of  this
Agreement,  the  Company  has  paid to  Gardner  by  Company  check  subject  to
collection,  and  Gardner  acknowledges  that he has  received  payment  of, the
following amounts:

                  (a) an amount  equal to  Gardner's  accrued  and  unpaid  base
salary (currently $300,000 per annum) through the Effective Date; and

                  (b) a single lump sum in the amount of $357,500.

                  4. Common Stock; Options.

                  (a) Within  five  business  days after the  execution  of this
Agreement,  the Company  shall issue to Gardner  50,000  shares of the Company's
Class A Common Stock, par value $5.00 per share (the "Common Stock").

                  (b)   Gardner    shall   be    entitled   to   exercise    his
Performance-Based  Stock  Option (as  defined  below),  to the extent  that such
option had vested and was exercisable on October 31, 1999 (or becomes vested and
exercisable at any time prior to October 31, 2000), at any time between the time
it becomes exercisable and October 31, 2001. The Performance-Based  Stock Option
is the 40,000 rights (each, a "Performance Right"), granted to Gardner under the
Base Ten Systems,  Inc.  performance-based  stock option agreement,  dated as of
October 17, 1997 (the "Performance Option  Agreement"),  between the Company and
Gardner,  to subscribe for and purchase one share of the Common Stock at a price
of $55 5/8 per share, which shall vest and become exercisable at the rate of one
Performance   Right  for  each   $100  of   consolidated   earnings   (excluding
extraordinary items) before interest, taxes,  depreciation and amortization,  as
reported  in the  Company's  audited  financial  statements  for the fiscal year
ending  December 31, 1999,  at the time that such audited  financial  statements
first become available.  Except as otherwise  expressly provided in this Section
4(b), the parties hereto agree that the Performance  Option  Agreement,  and all
rights and obligations of the parties thereunder, are hereby terminated.

                  (c) Gardner  shall be entitled to exercise  his  Service-Based
Stock Option (as defined  below),  to the extent that such option had vested and
was  exercisable  as of October 31, 1999, at any time prior to October 31, 2001.
The  Service-Based  Stock Option is the 50,000 rights (each, a "Service Right"),
granted to Gardner under the Base Ten Systems,  Inc.  service-based stock option
agreement,  dated as of  October  17,  1997 (the  "Service  Option  Agreement"),
between the Company and  Gardner,  to  subscribe  for and  purchase one share of
Common Stock at a price of $55 5/8 per share, of which 26,000 Service Rights had
vested and were  exercisable  as of October 31, 1999 and 24,000  Service  Rights
were  unvested  as of such date and are  hereby  canceled.  Except as  otherwise
expressly  provided in this  Section  4(c),  the parties  hereto  agree that the
Service  Option  Agreement,  and  all  rights  and  obligations  of the  parties
thereunder, are hereby terminated.

                  (d)  Gardner  shall be  entitled  to  exercise  his 1998  Plan
Options (as defined below),  to the extent that such options had vested and were
exercisable  as of October 31, 1999, at any time prior to October 31, 2001.  The
1998 Plan options are the (i) 50,000 rights (each, an "April Right"), granted to
Gardner on April 16, 1998 under the Company's  1998 Stock Option and Stock Award
Plan (the "1998 Plan"),  to subscribe for and purchase one share of Common Stock
at a price of $25 5/8 per share,  of which  25,000  April  Rights had vested and
were exercisable as of October 31, 1999 and 25,000 April Rights were unvested as
of such  date  and are  hereby  canceled,  and  (ii)  200,000  rights  (each,  a
"September Right" and, together with the April Rights,  the "1998 Plan Rights"),
granted to Gardner on September  14, 1998 under the 1998 Plan,  to subscribe for
and  purchase  one share of Common  Stock at a price of $10 per share,  of which
100,000  September Rights had vested and were exercisable as of October 31, 1999
and  100,000  September  Rights  were  unvested  as of such date and are  hereby
canceled (the  Performance  Rights,  the Service Rights and the 1998 Plan Rights
are hereinafter  collectively referred to as the "Rights").  Except as otherwise
expressly  provided in this  Section  4(d),  the parties  hereto  agree that all
rights and  obligations  of the parties  under the 1998 Plan with respect to the
1998 Plan Rights are hereby terminated.

                  (e) The  parties  hereto  acknowledge  that all  share and per
share  numbers  referenced  in  this  Section  4 give  effect  to the  Company's
one-for-five reverse stock split, which was effected on September 24, 1999.


                  5. Benefits.

                  (a) Gardner and Gardner's current dependents shall be entitled
to  continued  coverage and  benefits as provided  under any medical,  health or
dental plan or arrangement of the Company in which Gardner was  participating on
October 31, 1999 for a period of two years after such date, with no reduction in
such  coverage  or benefits  and no increase in cost to Gardner,  other than any
such reduction or increase commensurate with a similar reduction or increase for
senior  executives of the Company,  provided  that the  Company's  obligation to
provide  such  coverage  and benefits  shall  terminate if Gardner  receives any
benefits under the plans of a subsequent employer.

                  (b) Gardner  shall be entitled to receive any capital stock of
the Company and cash amounts that have accrued through the Effective Date in his
accounts  maintained  under the Company's  401(k) Plan,  Employee Stock Purchase
Plan and  Discretionary  Deferred  Compensation  Plan.  Simultaneously  with the
execution  of this  Agreement,  the  Company  has paid to  Gardner,  and Gardner
acknowledges  that he has  received,  all amounts that have accrued  through the
Effective  Date in his account  maintained  under the Company's  Employee  Stock
Purchase  Plan.  The  Company  represents  that there are no accrued  amounts in
Gardner's  account  maintained  under  the  Company's   Discretionary   Deferred
Compensation Plan.

                  6. Expenses.  The Company shall promptly reimburse Gardner for
his reasonable  expenses  incurred through the Effective Date in connection with
his duties  and  responsibilities  under the  Employment  Agreement,  subject to
presentation  by Gardner of  reasonable  documentation  in  accordance  with the
Company's policies, up to a maximum of $2,000.

                  7.  Standstill  Agreement.  During the period from October 31,
1999 through October 31, 2005, Gardner shall not, directly or indirectly, either
acting alone or in concert with any other person,  acquire any additional shares
of capital  stock of the Company,  except for (i) shares of capital stock issued
pursuant to a stock split,  stock  dividend,  rights  offering,  reorganization,
recapitalization  or other like change with respect to the capital  stock of the
Company  approved by the Company's  Board of Directors and (ii) shares of Common
Stock acquired pursuant to Section 4(a) or as a result of Gardner's  exercise of
the Rights,  as provided in Section 4;  provided,  however,  that the  foregoing
limitation  shall  cease to apply  during any period in which the Company or the
USL Group (as  defined  below),  as the case may be, is and  remains in material
breach of any of the provisions of this Agreement,  the Mutual Release dated the
date hereof between the Company and Gardner or the Mutual Release dated the date
hereof  among the USL Group and  Gardner.  The USL  Group  shall  mean  Jesse L.
Upchurch,  Trust C of the  Constance  J.  Upchurch  Family  Trust,  World  Video
Library, Drew Sycoff, Andrew Garrett, Inc. and Kevin R. Lockhart.

                  8.  Non-Disparagement.  At no time shall  either  party hereto
make any public statement that intentionally  disparages or defames the goodwill
or reputation  of the other party;  provided that it shall not be a violation of
this Section 8 for either party hereto to make truthful statements when required
to do so by law or by a  court,  governmental  agency,  administrative  body  or
legislative body with apparent jurisdiction to require such statements.

                  9.  Withholding.   The  Company  shall  withhold  all  amounts
required  by  law to be  withheld  from  any  payments  made  pursuant  to  this
Agreement,  including  any  and  all  amounts  required  to be  withheld  by any
applicable  federal,  state  or  foreign  country's  income  tax  act,  and  any
applicable city, county or municipality's earnings or income tax act.

                  10. Confidential Information; Non-Solicitation.

                  (a) Gardner  acknowledges  and agrees that his employment with
the Company pursuant to the Employment Agreement necessarily involved his access
to secrets  and  confidential  information  pertaining  to the  business  of the
Company and its subsidiaries.  Accordingly,  Gardner agrees that at all times he
will not,  directly or indirectly,  without the express written authority of the
Company,  unless directed by applicable legal authority having jurisdiction over
Gardner,  knowingly disclose or use for the benefit of any person or himself any
trade  secrets  and  confidential  information  concerning  the  Company  or any
subsidiary  of the  Company,  including,  without  limitation,  any  information
concerning  the past,  present or  prospective  clients,  creditors,  customers,
operations,  systems,  software  or  methods  (collectively,  the  "Confidential
Information").  Notwithstanding the foregoing, the term Confidential Information
shall not  include  any  information  which is or becomes  in the public  domain
without breach by Gardner of this Section 10.

                  (b)  Gardner  agrees that he will return to the Company on the
Effective Date all Confidential Information then in Gardner's possession, except
such as relates to him personally.

                  (c) Gardner  agrees that,  for a period of one year  following
the  Effective  Date, he will not,  directly or indirectly  (whether for his own
behalf or on  behalf  of any other  person),  hire,  without  the prior  written
consent of the Company (such consent not to be unreasonably  withheld),  or seek
to hire,  any individual who was on October 28, 1999 an employee of the Company,
nor will he, during such one-year  period,  directly or  indirectly,  induce any
employee of the Company to leave the Company's employ.

                  (d) If any restriction set forth in Section 10 is found by any
court of competent  jurisdiction to be unenforceable  because it extends for too
long a period  of time or over  too  great a range  of  activities,  it shall be
interpreted  to extend over the maximum period of time or range of activities as
to which it may be enforceable. If any provision of Section 10 shall be declared
to be  invalid  or  unenforceable,  in  whole or in  part,  as a  result  of the
foregoing, as a result of public policy or for any other reason, such invalidity
shall not affect the  remaining  provisions of Section 10, which shall remain in
full force and effect.

                  (e) Gardner  acknowledges  that the restrictions  contained in
this Section 10 are fair,  reasonable  and necessary  for the  protection of the
legitimate  business  interests  of the Company and that the Company will suffer
irreparable harm in the event of any actual or threatened breach of this Section
10  by  Gardner.  Accordingly,  Gardner  hereby  consents  to  the  entry  of  a
restraining order,  injunction or other court order to enforce the provisions of
this  Section 10 and  expressly  waives any  security  that might  otherwise  be
required in  connection  with such relief.  Gardner also agrees that any request
for such relief by the Company shall be in addition and without prejudice to any
claim for monetary damages that the Company might elect to assert.

                  11. Indemnification.

                  (a) The Company agrees that (i) if Gardner is made a party, or
is threatened to be made a party, to any "proceeding" by reason of the fact that
he  was  a  director,   officer,   employee,   agent,  manager,   consultant  or
representative  of the Company or was serving at the request of the Company as a
director,   officer,   member,   employee,   agent,   manager,   consultant   or
representative  of  another  person,  or  (ii) if any  "claim"  is  made,  or is
threatened to be made, that arises out of or relates to Gardner's service in any
of the foregoing capacities, then Gardner shall be indemnified by the Company to
the fullest  extent  permitted or  authorized by the  Company's  certificate  of
incorporation,  bylaws,  Board  resolutions  or, if greater,  by the laws of the
State of New Jersey against any and all costs, expenses,  liabilities and losses
(including,  without limitation,  attorneys' fees, judgments, interest, expenses
of investigation,  fines, ERISA excise taxes or penalties and amounts paid or to
be paid in settlement) incurred or suffered by Gardner in connection  therewith,
and such  indemnification  shall inure to the benefit of Gardner' successors and
assigns. The Company shall advance to Gardner all costs and expenses incurred by
him in connection  with any such proceeding or claim within 30 days of receiving
written notice  requesting such an advance,  provided that such notice includes,
to the  extent  and in  form  and  substance  required  by  applicable  law,  an
undertaking  by Gardner to repay the amount of such advance if he is  ultimately
determined not to be entitled to indemnification against such costs or expenses.

                  (b) Neither the failure of the Company (including its Board of
Directors,   independent   legal  counsel  or   stockholders)  to  have  made  a
determination  in connection  with any request for payment or advancement  under
Section 11(a) that Gardner has satisfied any applicable standard of conduct, nor
a determination  by the Company  (including its Board of Directors,  independent
legal counsel or stockholders) that Gardner has not met any applicable  standard
of conduct,  shall create a  presumption  that Gardner has not met an applicable
standard of conduct.

                  (c) The Company shall, during the period from October 31, 1999
through  October 31, 2005,  keep in place a directors'  and officers'  liability
insurance  policy (or policies)  covering Gardner to the extent that the Company
provides such coverage for its senior executives.

                  (d) Gardner agrees that if any claim is made, or is threatened
to be made, by Gardner's former spouse against the Company that arises out of or
relates to Gardner's employment relationship with the Company or the termination
thereof under this  Agreement,  then the Company shall be indemnified by Gardner
against any and all costs, expenses,  liabilities and losses (including, without
limitation,  attorneys' fees,  judgments,  interest,  expenses of investigation,
fines and amounts paid or to be paid in settlement)  incurred or suffered by the
Company in connection therewith.

                  (e) The  Company  agrees  that if any  claim  is  made,  or is
threatened to be made,  by the USL Group  against  Gardner that arises out of or
relates to Gardner's  employment  relationship  with the  Company,  then Gardner
shall  be  indemnified  by the  Company  against  any and all  costs,  expenses,
liabilities  and  losses  (including,   without  limitation,   attorneys'  fees,
judgments, interest, expenses of investigation,  fines and amounts paid or to be
paid in settlement) incurred or suffered by Gardner in connection therewith.

                  (f) Except as otherwise provided in Section 11(d), in no event
shall any party hereto be required to indemnify  the other party with respect to
any  proceeding or claim arising out of this  Agreement.  If either party hereto
brings a lawsuit  against the other party hereto with respect to any claim under
this  Agreement,  the losing party in any such lawsuit shall pay the  reasonable
attorneys' fees of the prevailing party promptly after the rendering of a final,
non-appealable judgment in such lawsuit.

                  (g) As  used  in  this  Agreement,  "person"  shall  mean  any
individual,  corporation,  partnership,  joint venture,  trust,  estate,  board,
committee,  agency, body or other person or entity;  "proceeding" shall mean any
threatened or actual action, suit or other proceeding,  whether civil, criminal,
administrative,  investigative,  appellate or other;  and "claim" shall mean any
claim, demand, request, investigation,  dispute, controversy, threat, discovery,
request or request for testimony or information.

                  12. Cooperation. Gardner agrees to: (i) provide information to
the Company,  upon  reasonable  notice and in a manner which does not  interfere
with any other  time  commitment  of  Gardner,  with  regard to matters in which
Gardner was involved while employed by the Company; provided,  however, that the
foregoing  obligation shall not require Gardner to prepare any  documentation or
expend any  significant  amounts of time; and (ii) cooperate with the Company in
(A) the Company's defense against any threatened or pending  proceeding or claim
by any  governmental  or regulatory  authority  and (B) any  proceeding or claim
brought or  asserted  by the  Company,  in each case  relating  to any events or
actions which  occurred when Gardner was employed by the Company.  Gardner shall
receive no additional compensation for such information or cooperation.

                  13. Representations and Warranties.

                  (a) The Common  Stock  issued to Gardner  pursuant  to Section
4(a) is being  acquired by Gardner  solely for his own  account  for  investment
purposes  only  and not  with a view to or in  connection  with  any  resale  or
distribution thereof. Gardner can bear the economic risk (including the complete
loss)  of his  investment  in such  Common  Stock  and has  such  knowledge  and
experience in financial or business matters that he is capable of evaluating the
merits and risks of such investment.  Gardner is an "accredited investor" within
the meaning of Rule 501 of Regulation D promulgated  under the Securities Act of
1933, as amended (the "Securities Act").

                  (b)  Gardner   understands  that  the  Common  Stock  acquired
pursuant to Section 4(a) is characterized as "restricted  securities"  under the
federal  securities  laws inasmuch as it is being acquired from the Company in a
transaction  not  involving  a public  offering,  and that  under  such laws and
applicable  regulations  such Common  Stock may be resold  without  registration
under  the  Securities  Act  only  in  certain  limited  circumstances.  In this
connection,  Gardner  represents  that he is  familiar  with  Rule 144 under the
Securities Act, as presently in effect,  and understands the resale  limitations
imposed thereby and by the Securities Act.

                  14. Notices.  Any notice,  consent,  demand,  request or other
communication  given by Gardner or the Company in connection with this Agreement
shall be in writing  and shall be deemed to have been  given (i) when  delivered
personally to the party  specified or (ii) three days after mailing by certified
or registered mail, return receipt  requested,  or (iii) provided that a written
acknowledgment of receipt is obtained,  upon delivery by a nationally recognized
overnight courier, to the address set forth below for the party specified (or to
such other  address for such party as shall be  specified  by ten days'  advance
notice given pursuant to this Section 14).

                           (a)      If to the Company:

                                    Base Ten Systems, Inc.
                                    One Electronics Drive
                                    Trenton, New Jersey 08619
                                    Attention:  Board of Directors

                           (b)      If to Gardner:

                                    Thomas E. Gardner
                                    43 Constitution Hill West
                                    Princeton, New Jersey 08540


                  15. Assignment/Binding Effect. This Agreement shall be binding
upon and inure to the  benefit of  Gardner,  the  Company  and their  respective
successors  and  assigns.  No rights or  obligations  of the Company  under this
Agreement may be assigned or transferred by the Company, except that such rights
or  obligations  may  be  assigned  or  transferred  pursuant  to  a  merger  or
consolidation in which the Company is not the continuing  entity, or the sale or
liquidation of all or substantially  all of the assets of the Company,  provided
that the assignee or transferee is the successor to all or substantially  all of
the assets of the Company and such assignee or transferee  expressly assumes all
the  liabilities,  obligations  and duties of the Company as  contained  in this
Agreement.  In connection with any transfer or assignment of its rights,  duties
or obligations  under this Agreement,  the Company shall take whatever action it
legally  can to cause  such  assignee  or  transferee  to  expressly  assume the
liabilities,  obligations  and  duties  of the  Company  hereunder.  No  rights,
obligations  or duties of  Gardner  under  this  Agreement  may be  assigned  or
transferred, other than his rights provided in Sections 3, 4, 5 and 6, which may
be transferred  only by will or operation of law, except as otherwise  expressly
provided.

                  16.   Integration.   This  Agreement   represents  the  entire
understanding  of the parties with respect to the subject  matter  hereof.  This
Agreement supersedes all other agreements,  contracts,  understandings and other
arrangements,  written or oral,  between the parties with respect to the subject
matter  hereof,  all of which are hereby  terminated  and shall be of no further
force or  effect,  including,  without  limitation,  any  employment  contracts,
agreements or understandings in effect as of the date hereof.

                  17.  Miscellaneous.  No  provision  of this  Agreement  may be
modified, waived or discharged unless such modification,  waiver or discharge is
agreed to in writing signed by Gardner and such officer of the Company as may be
specifically  designated  by the Board of  Directors.  No waiver by either party
hereto at any time of any breach by the other party  hereto of any  condition or
provision of this  Agreement to be performed by such other party shall be deemed
a waiver of any similar or dissimilar  provision or condition at the same or any
prior or subsequent  time.  No  representations,  oral or otherwise,  express or
implied,  with  respect to the  subject  matter  hereof have been made by either
party which are not set forth expressly in this Agreement. In the event that any
provision  or portion of this  Agreement  shall be  determined  to be invalid or
unenforceable  for any  reason,  in  whole  or in part,  the  remainder  of this
Agreement shall be unaffected  thereby and shall remain in full force and effect
to the fullest  extent  permitted  by law so as to achieve the  purposes of this
Agreement.  This  Agreement  may not be  terminated  by either party without the
written  consent of the other party.  The headings of the Sections  contained in
this  Agreement are for  convenience  only and shall not be deemed to control or
affect the meaning or  construction  of any  provision  of this  Agreement.  The
validity,  interpretation,  construction and performance of this Agreement shall
be governed by the laws of the State of New Jersey without regard to conflict of
law principles.  This Agreement may be executed in  counterparts,  each of which
shall be deemed a duplicate  original and all of which shall be deemed to be one
and the same instrument.

                  IN WITNESS  WHEREOF,  the parties  hereto have  executed  this
Agreement on November 12, 1999.

                                            BASE TEN SYSTEMS, INC.


                                            By:_____________________________
                                          Name:
                                         Title:


                                            --------------------------------
                                            Thomas E. Gardner