Document:

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                                                                   Exhibit 10.61

                             MEADE INSTRUMENTS CORP.

                          EMPLOYEE STOCK OWNERSHIP PLAN

             As Amended and Restated Effective as of January 1, 1999

<PAGE>

                                                                   Exhibit 10.61

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
SECTION                                                             PAGE
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<S>                                                                 <C>
 1.  Nature of the Plan...........................................    1
 2.  Definitions..................................................    2
 3.  Eligibility and Participation................................    7
 4.  Employer Contributions.......................................    9
 5.  Investment of Trust Assets...................................   11
 6.  Allocations to Participants' Accounts........................   14
 7.  Allocation Limitations.......................................   18
 8.  Voting Company Stock.........................................   21
 9.  Vesting and Forfeitures......................................   21
10.  Credited Service and Break in Service........................   22
11.  When Capital Accumulation Will Be Distributed................   24
12.  Diversification Election and In-Service Distributions. ......   26
13.  How Capital Accumulation Will Be Distributed.................   28
14.  Rights, Options and Restrictions on Company Stock............   30
15.  No Assignment of Benefits....................................   31
16.  Administration...............................................   31
17.  Claims Procedure.............................................   35
18.  Limitation on Participants' Rights...........................   36
19.  Future of the Plan...........................................   37
20.  "Top-Heavy" Contingency Provisions...........................   38
21.  Governing Law................................................   39
22.  Execution....................................................   39
</TABLE>

<PAGE>

                                                                   Exhibit 10.61

                             MEADE INSTRUMENTS CORP.

                          EMPLOYEE STOCK OWNERSHIP PLAN

Section 1. Nature of the Plan.

      The purpose of this Plan is to enable participating Employees to share in
the growth and prosperity of Meade Instruments Corp. (the "Company") and to
provide Participants with an opportunity to accumulate capital for their future
economic security. The Plan is intended to do this without any deductions from
Participants' paychecks and without requiring them to invest their personal
savings. The primary purpose of the Plan is to enable Participants to acquire
stock ownership interests in the Company. Therefore, the Trust established under
the Plan is designed to invest primarily in Company Stock.

      The Plan is also designed to be available as a technique of corporate
finance to the Company. Accordingly, it may be used to accomplish the following
objectives:

            (a)   To meet general financing requirements of the Company,
                  including capital growth and transfers in the ownership of
                  Company Stock;

            (b)   To provide Participants with beneficial ownership of Company
                  Stock substantially in proportion to their relative
                  Compensation, without requiring any cash outlay, any reduction
                  in pay or other personal investment on the part of
                  Participants; and

            (c)   To receive loans (or other extensions of credit) to finance
                  the acquisition of Company Stock, with such loans to be repaid
                  by Employer Contributions to the Trust and dividends received
                  on such Company Stock.

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                                                                   Exhibit 10.61

      The Plan , originally adopted effective as of March 1, 1996, is hereby
amended and restated effective as of January 1, 1999. The Plan is a stock bonus
plan under Section 401(a) of the Internal Revenue Code (the "Code") and an
employee stock ownership plan under Section 4975(e)(7) of the Code.

      In order to satisfy applicable requirements of the Code, as amended by the
Small Business Job Protection Act of 1996, the second sentence of the second
paragraph of Section 4(b) is amended effective as of January 1, 1997. All Trust
Assets held under the Plan will be administered, distributed, forfeited and
otherwise governed by the provisions of this Plan and the related Trust
Agreement. The Plan is administered by an Administrative Committee for the
exclusive benefit of Participants (and their Beneficiaries).

Section 2. Definitions.

      In this Plan, whenever the context so indicates, the singular or plural
number and the masculine, feminine or neuter gender shall be deemed to include
the other, the terms "he," "his" and "him" shall refer to a Participant, and the
capitalized terms shall have the following meanings:

      Account ..............  One of two accounts maintained to record the
                              interest of a Participant under the Plan. See
                              Section 6.

      Acquisition Loan .....  A loan (or other extension of credit) used by the
                              Trust to finance the acquisition of Company Stock,
                              which loan may constitute an extension of credit
                              to the Trust from a party in interest (as defined
                              in ERISA). See Section 5(b).

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                                                                   Exhibit 10.61

Affiliate ..................  Any corporation which is a member of a controlled
                              group of corporations (within the meaning of
                              Section 414(b) of the Code) of which the Company
                              is also a member or any trade or business (whether
                              or not incorporated) which is under common control
                              with the Company (within the meaning of Section
                              414(c) of the Code).

Allocation Date ............  The December 31st of each year (the last day of
                              each Plan Year).

Approved Absence ...........  A leave of absence from work granted to an
                              Employee by the Company under its established
                              leave policy, including unpaid leave under the
                              Family and Medical Leave Act of 1993. See Section
                              3(c).

Beneficiary ................  The person (or persons) entitled to receive any
                              benefit under the Plan in the event of a
                              Participant's death. See Section 13(c).

Board of Directors .........  The Board of Directors of the Company.

Break in Service ...........  A period of time commencing with the date on which
                              an Employee's Service terminates and ending on the
                              date he resumes service. See Section 10(b).

Capital Accumulation .......  A Participant's vested, nonforfeitable interest in
                              his Accounts under the Plan. Each Participant's
                              Capital Accumulation shall be determined in
                              accordance with the provisions of Section 9 and
                              distributed as provided in Sections 11, 12 and 13.

Code .......................  The Internal Revenue Code of 1986, as amended.

Committee ..................  The Administrative Committee appointed by the
                              Board of Directors to administer the Plan. See
                              Section 16.

Company.....................  Meade Instruments Corp., a Delaware corporation.

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                                                                   Exhibit 10.61

Company Stock ..............  Shares of Common Stock issued by the Company,
                              which stock is readily tradable on an established
                              securities market and constitutes "employer
                              securities" under Section 409(l)(1) of the Code.

Company Stock Account .....   The Account which reflects each Participant's
                              interest in Company Stock held under the Plan. See
                              Section 6.

Compensation ...............  The total wages and other compensation paid to an
                              Employee by the Company during each Plan Year, as
                              reported on the Employee's Tax and Wage Statement
                              (Form W-2), including any Elective Deferrals made
                              on his behalf to the 401(k) Plan and any amounts
                              withheld pursuant to the Company's Cafeteria Plan
                              (under Section 125 of the Code), but excluding any
                              amount in excess of $160,000 (as adjusted after
                              1999 for increases in the cost of living pursuant
                              to Section 401(a)(17) of the Code).

Credited Service ...........  The elapsed period of an Employee's Service,
                              including Service prior to March 1, 1996. See
                              Section 10.

Disability .................  A physical or mental impairment which constitutes
                              a total and permanent disability entitling the
                              Participant to disability benefits under the
                              Social Security Act.

Discretionary
Contributions ..............  Employer Contributions made in amounts determined
                              by the Board of Directors. See Section 4(a).

Elective Deferrals .........  Contributions made to the 401(k) Plan at the
                              election of an Employee.

Employee ...................  Any individual who is treated as a common-law
                              employee by the Company; provided, however, that
                              an independent contractor (or other

                                      -4-
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                                                                   Exhibit 10.61

                              individual) who is reclassified as a common law
                              employee on a retroactive basis shall not be
                              treated as having been an Employee for purposes of
                              the Plan for any period prior to the date that he
                              is so reclassified. A leased employee, as
                              described in Section 414(n) of the Code, is not an
                              Employee for purposes of this Plan.

Employer Contributions .....  Payments made to the Trust by the Company. See
                              Section 4.

ERISA ......................  The Employee Retirement Income Security Act of
                              1974, as amended.

Fair Market Value ..........  The fair market value of Company Stock, as
                              determined for all purposes under the Plan by
                              reference to prevailing market prices.

Financed Shares ............  Shares of Company Stock acquired by the Trust with
                              the proceeds of an Acquisition Loan.

Forfeiture .................  A Participant's Accounts which are not vested and
                              which are forfeited under Section 9(b) following
                              his termination of Service.

401(k) Plan ................  The Meade Instruments Corporation 401(k) Plan, a
                              profit sharing plan qualified under Section 401(a)
                              of the Code that includes a "cash or deferred
                              arrangement" under Section 401(k) of the Code.

                                      -5-
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                                                                   Exhibit 10.61

Highly Compensated
Employee ...................  An Employee who (1) was a 5% owner at any time
                              during the Plan Year or the preceding Plan Year,
                              or (2) had Compensation in excess of $80,000 in
                              the preceding Plan Year and, if so elected by the
                              Company, was in the top-paid 20% group of
                              Employees for such preceding Plan Year; provided,
                              however, that is such "top-paid group" election is
                              made by the Company for any Plan Year, the
                              "top-paid group" election must also be applied to
                              all employee benefit plans maintained by the
                              Company or an Affiliate. The $80,000 amount shall
                              be adjusted after 1999 for increases in the cost
                              of living pursuant to Section 414(q)(1) of the
                              Code.

Hour of Service ............  Each hour of Service for which an Employee is
                              credited under the Plan, as described in Section
                              3(d).

Matching Contributions .....  Employer Contributions made in amounts related to
                              Participants' Elective Deferrals. See Section
                              4(b).

Other Investments
Account ....................  The Account which reflects each Participant's
                              interest under the Plan attributable to any Trust
                              Assets other than Company Stock. See Section 6.

Participant ................  Any Employee or former Employee who has met the
                              applicable eligibility requirements of Section
                              3(a) and who has not yet received a complete
                              distribution of his Capital Accumulation.

Plan .......................  The Meade Instruments Corp. Employee Stock
                              Ownership Plan, which includes this Plan and the
                              related Trust Agreement.

Plan Year ..................  The 12-month period ending on each Allocation Date
                              (and coinciding with each calendar year),

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                                                                   Exhibit 10.61

                              which period shall also be the "limitation year"
                              for purposes of Section 415 of the Code.

Retirement .................  Termination of Service on or after attaining age
                              60.

Service ....................  Employment with the Company or with any Affiliate;
                              provided, however, that periods of employment with
                              an employer during which the employer was not an
                              Affiliate shall not be included as Service.

Trust ......................  The Meade Instruments Corp. Employee Stock
                              Ownership Trust, which is governed by the Trust
                              Agreement entered into between the Company and the
                              Trustee.

Trust Agreement ............  The Agreement between the Company and the Trustee
                              which specifies the duties of the Trustee.

Trust Assets ...............  The Company Stock and any other assets held in the
                              Trust for the benefit of Participants. See Section
                              5.

Trustee ....................  The Trustee (and any successor Trustee) appointed
                              by the Board of Directors to hold the Trust
                              Assets.

                                      -7-
<PAGE>

                                                                   Exhibit 10.61

Section 3. Eligibility and Participation.

      (a) Each Employee who was not already a Participant in the Plan on
December 31, 1998, shall become a Participant in the Plan on the June 30th or
December 31st coinciding with or next following the date on which he has
attained age 21 and completed at least six months of Service in which he is
credited with at least 500 Hours of Service. The eligibility computation period
for determining six months of Service under this Section 3(a) shall initially be
the period of six-consecutive months beginning on the Employee's initial date of
Service, then the six-consecutive month period beginning on the semi-anniversary
of his initial date of Service, and thereafter shall be each six-consecutive
month period beginning on the January 1st and July 1st after the anniversary of
his initial date of Service.

      In the event that the terms of Service of any Employee are covered by a
collective bargaining agreement, the Employee shall not be eligible to
participate in the Plan unless the terms of such agreement specifically provide
for participation in this Plan.

      (b) A Participant is entitled to share in the allocations of Employer
Contributions and Forfeitures under Section 6(a) and (b) for each Plan Year in
which he is credited with at least 1000 Hours of Service and is an Employee (or
on Approved Absence) on the Allocation Date. A Participant is also entitled to
share in the allocations of Employer Contributions and Forfeitures for the Plan
Year of his Retirement, Disability or death.

      (c) A former Participant who is reemployed by the Company shall become a
Participant as of the date of his reemployment. An Employee who is on an
Approved Absence shall not become a Participant until the end of his Approved
Absence, but a

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                                                                   Exhibit 10.61

Participant who is on an Approved Absence shall continue as a Participant during
the period of his Approved Absence. Notwithstanding any provision of this Plan
to the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Section 414(u) of
the Code.

      (d)   Hours of Service - For purposes of determining the Hours of Service
to be credited to an Employee under the Plan, the following rules shall be
applied:

            (1)   Hours of Service shall include each hour of Service for which
                  an Employee is paid (or entitled to payment) for the
                  performance of duties; each hour of Service for which an
                  Employee is paid (or entitled to payment) for a period during
                  which no duties are performed due to vacation, holiday,
                  illness, incapacity (including disability), layoff, jury duty,
                  military duty or paid leave of absence; and each additional
                  hour of Service for which back pay is either awarded or agreed
                  to (irrespective of mitigation of damages); provided, however,
                  that not more than 501 Hours of Service shall be credited for
                  a single continuous period during which an Employee does not
                  perform any duties.

            (2)   The crediting of Hours of Service shall be determined in
                  accordance with the rules set forth in paragraphs (b) and (c)
                  of Section 2530.200b-2 of the regulations prescribed by the
                  Department of Labor, which rules shall be consistently applied
                  with respect to all Employees within the same job
                  classification.

            (3)   Hours of Service shall not be credited to an Employee for a
                  period during which no duties are performed if payment is made
                  or due under a plan maintained solely for the purpose of
                  complying with applicable worker's compensation, unemployment
                  compensation or disability insurance laws, and Hours of
                  Service shall not be credited on account of any payment made
                  or due an Employee solely in reimbursement of medical or
                  medically-related expenses.

            (4)   Each Employee for whom the Company does not maintain records
                  of actual Hours of Service shall be credited with 45 Hours of
                  Service for each weekly payroll period in which he completes
                  at least one Hour of Service.

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                                                                   Exhibit 10.61

Section 4. Employer Contributions.

      (a) Discretionary Contributions - Discretionary Contributions shall be
paid to the Trustee in such amounts (or under such formula) as may be determined
by the Board of Directors.

      (b) Matching Contributions - Matching Contributions shall be paid by the
Company to the Trustee for each Participant who is entitled to share in the
allocation of Matching Contributions under Section 3(b) for each Plan Year in an
amount equal to 100% of the Elective Deferrals made to the 401(k) Plan on his
behalf for the Plan Year, but only to the extent such Elective Deferrals do not
exceed 4% of his Compensation. The allocations of Financed Shares made as a
result of Matching Contributions shall be based upon the purchase price paid by
the Trustee to acquire such Company Stock.

      Matching Contributions for Highly Compensated Employees shall be limited
for any Plan Year to the extent necessary to satisfy one of the contribution
percentage requirements described in Section 401(m)(2) of the Code and Section
1.401(m)-1(b) of the regulations thereunder, as computed separately (if
necessary) for the Plan and the 401(k) Plan. For the 1997 and 1998 Plan Years,
such contribution percentage requirements shall be satisfied based upon the
"current Plan Year testing method," as described in Internal Revenue Notice
98-1. For Plan Years beginning on or after January 1, 1999, such contribution
percentage requirements shall be satisfied based upon the "prior Plan Year
testing method," as described in Internal Revenue Notice 98-1. Any reduction
under this Section 4(b) that is necessary to satisfy one of the contribution
percentage requirements shall be made with respect to amounts

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                                                                   Exhibit 10.61

that are determined to be "excess aggregate contributions" (within the meaning
of Section 1.401(m)-1(f)(8) of the regulations). Such excess aggregate
contributions are determined by reducing the Matching Contributions made on
behalf of Highly Compensated Employees in order of the actual contribution
percentage beginning with the highest of such percentages. The actual
contribution percentage of the Highly Compensated Employee with the highest such
percentage shall be reduced until it equals that of the Highly Compensated
Employee with the next highest percentage. This process shall be repeated until
one of the above tests is passed. Matching Contributions shall not be payable
with respect to any Elective Deferrals under the 401(k) Plan which are
distributed to Participants pursuant to the provisions of the 401(k) Plan in
order to satisfy Sections 401(k)(3)(A)(ii) or 402(g) of the Code.

      (c) Payment of Employer Contributions - Employer Contributions shall be
paid to the Trustee not later than the due date (including extensions) for
filing the Company's Federal income tax return for the applicable taxable year
of the Company. Employer Contributions may be paid in cash and/or in shares of
Company Stock, as determined by the Board of Directors; provided, however, that
the Board of Directors may determine that Employer Contributions made for the
purpose of enabling the Trustee to make Acquisition Loan payments may be paid as
provided in Section 5(c) with written notice to the Committee and the Trustee.
Employer Contributions paid in shares of Company Stock shall be valued based
upon Fair Market Value on the date the shares are issued to the Trustee.

      (d) Additional Provisions - Employer Contributions shall not be made in
amounts which can be allocated to no Participant's Accounts by reason of the
allocation limitations described in Section 7(a) or in amounts which are not
deductible under Section 404(a) of the

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                                                                   Exhibit 10.61

Code. Any Employer Contributions which are not deductible under Section 404(a)
of the Code may be returned to the Company by the Trustee (upon the direction of
the Company) within one year after the deduction is disallowed or after it is
determined that the deduction is not available. In the event that Employer
Contributions are paid to the Trust by reason of a mistake of fact, such
Employer Contributions may be returned to the Company by the Trustee (upon the
direction of the Company) within one year after the payment to the Trust.

      (e) No Participant Contributions - No Participant shall be required or
permitted to make contributions to the Trust.

Section 5. Investment of Trust Assets.

      (a) In General - Trust Assets will be invested by the Trustee primarily
(or exclusively) in Company Stock in accordance with directions from the
Committee, except as otherwise provided in Section 5(d). Employer Contributions
(and other Trust Assets) may be used to acquire shares of Company Stock from any
Company shareholder or from the Company. All purchases of Company Stock by the
Trustee shall be made only as directed by the Committee and only at prices which
do not exceed Fair Market Value as of the date of the purchase. The Committee
may direct the Trustee to invest and hold up to 100% of the Trust Assets in
Company Stock. Pending the investment of Trust Assets in Company Stock, the
Trustee may also invest Trust Assets in such other prudent investments as the
Committee deems to be desirable for the Trust, or Trust Assets may be held
temporarily in cash.

      (b) Acquisition Loans - With the approval of the Board of Directors, the
Committee may direct the Trustee to incur Acquisition Loans from time to time to
finance the

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                                                                   Exhibit 10.61

acquisition of Company Stock ("Financed Shares") or to repay a prior Acquisition
Loan. An installment obligation incurred in connection with the purchase of
Company Stock shall be treated as an Acquisition Loan, and all indebtedness
incurred to acquire Company Stock in a single transaction shall be treated as
one Acquisition Loan for purposes of the Plan. An Acquisition Loan shall be for
a specific term, shall bear a reasonable rate of interest and shall not be
payable on demand except in the event of default. An Acquisition Loan may be
secured by a pledge of the Financed Shares so acquired (or acquired with the
proceeds of a prior Acquisition Loan which is being refinanced). No other Trust
Assets may be pledged as collateral for an Acquisition Loan, and no lender shall
have recourse against Trust Assets except as provided in Section 54.4975-7(b)(5)
of the Regulations under the Code. Any pledge of Financed Shares must provide
for the release of the shares so pledged as payments on the Acquisition Loan are
made by the Trustee and such Financed Shares are allocated to Participants'
Company Stock Accounts under Section 6(c). If the lender is a party in interest
(as defined in ERISA), the Acquisition Loan must provide for a transfer of Trust
Assets to the lender on default only upon and to the extent of the failure of
the Trust to meet the payment schedule of the Acquisition Loan.

      (c) Acquisition Loan Payments - Payments of principal and/or interest on
any Acquisition Loan shall be made by the Trustee (as directed by the Committee)
only from Employer Contributions paid to enable the Trust to repay such
Acquisition Loan, from earnings attributable to such Employer Contributions and
from any cash dividends received by the Trust on the Financed Shares (whether
allocated or unallocated) purchased with the proceeds of such Acquisition Loan;
and the payments made with respect to an Acquisition

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                                                                   Exhibit 10.61

Loan for a Plan Year must not exceed the sum of such Employer Contributions,
earnings and dividends for that Plan Year (and prior Plan Years), less the
amount of such payments for prior Plan Years. If the Company is the lender with
respect to an Acquisition Loan, Employer Contributions may be paid in the form
of cancellation of indebtedness under the Acquisition Loan. If the Company is
not the lender with respect to an Acquisition Loan, payments on the Acquisition
Loan may be made by the Company directly to the lender, with such payments
treated as Employer Contributions.

      (d) Sales of Company Stock - The Committee may direct the Trustee to sell
shares of Company Stock to any person (including the Company); provided that any
such sale shall be effected by the Trustee at a price not less than Fair Market
Value on the sale date. Notwithstanding the provisions of Section 5(c), the
Committee may direct the Trustee to apply the proceeds from the sale of
unallocated Financed Shares to repay the Acquisition Loan (incurred to finance
the purchase of such Financed Shares) in the event of a merger, consolidation or
sale of all or substantially all of the assets of the Company, or the sale of
all or substantially all of the stock of the Company or the termination of the
Plan or if the Plan ceases to be an employee stock ownership plan under Section
4975(e)(7) of the Code. Any sale of Company Stock under this Section 5(d) must
comply with the fiduciary duties applicable under Section 404(a)(1) of ERISA and
with the primary benefit rule of Section 408(b)(3)(A) of ERISA and Section
4975(d)(3)(A) of the Code, if applicable.

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                                                                   Exhibit 10.61

Section 6. Allocations to Participants' Accounts.

      A Company Stock Account and an Other Investments Account shall be
maintained to reflect the interest of each Participant under the Plan.

      Company Stock Account - The Company Stock Account maintained for each
Participant will be credited annually with his allocable share of Company Stock
(including fractional shares) purchased and paid for by the Trust or contributed
in kind to the Trust as a Discretionary Contribution or Matching Contribution,
with any Forfeitures from Company Stock Accounts and with any stock dividends on
Company Stock allocated to his Company Stock Account.

      Other Investments Account - The Other Investments Account maintained for
each Participant will be credited annually with his allocable share of
Discretionary Contributions and Matching Contributions that are not in the form
of Company Stock, with any Forfeitures from Other Investments Accounts, with any
cash dividends on Company Stock allocated to his Company Stock Account (other
than currently distributed dividends) and any net income (or loss) of the Trust.
Such Account will be debited for the Participant's share of any cash payments
made by the Trustee for the acquisition of Company Stock or for the payment of
any principal and/or interest on an Acquisition Loan.

      The allocations to Participants' Accounts for each Plan Year will be made
as follows:

      (a) Discretionary Contributions and Forfeitures - Discretionary
Contributions under Section 4(a) and Forfeitures under Section 9(b) for each
Plan Year will be allocated as of the Allocation Date among the Accounts of
Participants so entitled under Section 3(b) in

                                      -15-
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                                                                   Exhibit 10.61

the ratio that the Compensation of each such Participant bears to the total
Compensation of all such Participants, subject to the allocation limitations
described in Section 7.

      (b)   Matching Contributions - Matching Contributions for each Plan Year
will be allocated as of the Allocation Date to the Accounts of the Participants
in accordance with the rules outlined in Section 4(b).

      (c)   Financed Shares - Any Financed Shares acquired by the Trust shall
initially be credited to a "Loan Suspense Account" and will be allocated to
Company Stock Accounts of Participants only as payments on the Acquisition Loan
are made by the Trustee. The number of Financed Shares to be released from the
Loan Suspense Account for allocation to Participants' Company Stock Accounts
shall be determined by the Committee as follows:

            (1)   Principal/Interest Method - The number of Financed Shares held
in the Loan Suspense Account immediately before the current release shall be
multiplied by a fraction. The numerator of the fraction shall be the current
payments of principal and/or interest on the Acquisition Loan. The denominator
of the fraction shall be the sum of the numerator plus the total payments of
principal and interest on that Acquisition Loan projected to be paid in the
future years. For this purpose, the interest to be paid in future years is to be
computed by using the interest rate in effect as of the current release date.

            (2)   Principal Only Method - The Committee may elect (as to each
Acquisition Loan) or the provisions of the Acquisition Loan may provide for the
release of Financed Shares from the Loan Suspense Account based solely on the
ratio that the current payments of principal bear to the total principal amount
of the Acquisition Loan. This method may be used only to the extent that: (A)
the Acquisition Loan provides for annual payments

                                      -16-
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                                                                   Exhibit 10.61

of principal and interest at a cumulative rate that is not less rapid at any
time than level annual payments of such amounts for ten years; (B) interest
included in any payment on the Acquisition Loan is disregarded only to the
extent that it would be determined to be interest under standard loan
amortization tables; and (C) the entire duration of the Acquisition Loan
repayment period does not exceed ten years, even in the event of a renewal,
extension or refinancing of the Acquisition Loan.

            (3) Allocation of Released Shares - When Trust Assets are applied to
make payments on an Acquisition Loan, the Financed Shares released from the Loan
Suspense Account in accordance with the provisions of this Section 6(c) shall be
allocated among Company Stock Accounts of Participants in the manner determined
by the Committee based upon the source of funds (Discretionary Contributions,
Matching Contributions, earnings attributable to such Employer Contributions and
cash dividends on Financed Shares) used to make the payments on the Acquisition
Loan. If cash dividends on Financed Shares allocated to a Participant's Company
Stock Account are used to make payments on an Acquisition Loan, Financed Shares
(representing that portion of such payments and whose Fair Market Value is at
least equal to the amount of such dividends) released from the Loan Suspense
Account shall be allocated to that Participant's Company Stock Account.

      (d)   Net Income (or Loss) of the Trust - The net income (or loss) of the
Trust for each Plan Year will be determined as of the Allocation Date. Prior to
the allocation of Employer Contributions and Forfeitures for the Plan Year, each
Participant's share of any net income (or loss) will be allocated to his Other
Investments Account in the ratio that the total balances of both his Accounts on
the preceding Allocation Date (reduced by any distribution

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                                                                   Exhibit 10.61

of Capital Accumulation from such Account during the Plan Year) bears to the sum
of such Account balances for all Participants as of that date. The net income
(or loss) of the Trust includes the increase (or decrease) in the fair market
value of Trust Assets (other than Company Stock), interest income, dividends and
other income and gains (or losses) attributable to Trust Assets (other than any
dividends on allocated Company Stock) since the preceding Allocation Date,
reduced by any expenses charged to the Trust Assets for that Plan Year. The
determination of the net income (or loss) of the Trust shall not take into
account any interest paid by the Trust under an Acquisition Loan.

      (e) Dividends on Company Stock - Any cash dividends received on shares of
Company Stock allocated to Participants' Company Stock Accounts will be
allocated to the respective Other Investments Accounts of such Participants. Any
cash dividends received on unallocated shares of Company Stock (including any
Financed Shares credited to the Loan Suspense Account) shall be included in the
computation of the net income (or loss) of the Trust. Any stock dividends
received on Company Stock shall be credited to the Accounts (including the Loan
Suspense Account) to which such Company Stock was allocated.

      (f) Accounting for Allocations - The Committee shall establish accounting
procedures for the purpose of making the allocations to Participants' Accounts
provided for in this Section 6. The Committee shall maintain adequate records of
the aggregate cost basis of Company Stock allocated to each Participant's
Company Stock Account. The Committee shall also keep separate records of
Financed Shares and of Employer Contributions (and any earnings thereon) made
for the purpose of enabling the Trust to repay any Acquisition Loan. From time
to time, the Committee may modify the accounting procedures for the purposes of

                                      -18-
<PAGE>

                                                                   Exhibit 10.61

achieving equitable and nondiscriminatory allocations among the Accounts of
Participants in accordance with the general concepts of the Plan, the provisions
of this Section 6 and the requirements of the Code and ERISA.

Section 7. Allocation Limitations.

      (a)   Limitations on Annual Additions - The Annual Additions for each Plan
Year with respect to any Participant may not exceed the lesser of:

            (1)   25% of his Compensation; or

            (2)   $30,000, as adjusted for increases in the cost of living
                  pursuant to Section 415(d)(1)(C) of the Code.

For this purpose, "Annual Additions" shall be the total of the Employer
Contributions and Forfeitures (including any income attributable to Forfeitures)
allocated to the Accounts of a Participant for the Plan Year, except as provided
in Section 7(b), plus any contributions (including Elective Deferrals) or
forfeitures allocated to his accounts under the 401(k) Plan for the Plan Year.
In determining such Annual Additions, Forfeitures of Company Stock shall be
included at Fair Market Value as of the Allocation Date and Employer
Contributions in the form of Company Stock shall be included at Fair Market
Value as of the date such shares are issued to the Trust.

      If the aggregate amount that would be allocated to the Accounts of a
Participant in the absence of these limitations would exceed the amount set
forth in these limitations, the allocation of Discretionary Contributions and
Forfeitures under this Plan shall be reduced

                                      -19-
<PAGE>

                                                                   Exhibit 10.61

prior to reducing the allocations to his accounts under the 401(k) Plan. Any
Forfeitures which can be allocated to no Participant's Accounts by reason of
these limitations shall be credited to a "Forfeiture Suspense Account" and
allocated as Forfeitures under Section 6(a) for the next succeeding Plan Year
(prior to the allocation of Employer Contributions for such succeeding Plan
Year).

      (b) Special Acquisition Loan Rules - Any Employer Contributions which are
used by the Trust (not later than the due date, including extensions, for filing
the Company's Federal income tax return for the applicable taxable year) to pay
interest on an Acquisition Loan, and any Financed Shares which are allocated as
Forfeitures, shall not be included as Annual Additions under Section 7(a);
provided, however, that the provisions of this paragraph shall be applicable
only if not more than one-third of any Employer Contributions applied to pay
principal and/or interest on an Acquisition Loan are allocated to Participants
who are Highly Compensated Employees; and the Committee shall reallocate such
Employer Contributions to the extent it deems it to be appropriate to satisfy
this special rule.

      The Annual Additions under Section 7(a) with respect to Financed Shares
released from the Loan Suspense Account (by reason of Employer Contributions
used for payments on an Acquisition Loan) and allocated to Participants' Company
Stock Accounts shall be the lesser of (A) the amount of such Employer
Contributions (as determined after application of the preceding paragraph); or
(B) the Fair Market Value of Company Stock. Annual Additions shall not include
any allocation attributable to any proceeds from the sale of Financed Shares by
the Trust or to appreciation (realized or unrealized) in the Fair Market Value
of Company Stock.

                                      -20-
<PAGE>

                                                                   Exhibit 10.61

      (c)   Limitation on Electing Shareholder - If a Company shareholder sold
Company Stock to the Trust in the transaction described in Section 5(c) and
elected (with the consent of the Company) nonrecognition of gain under Section
1042 of the Code, no portion of the Company Stock purchased in that transaction
(or any dividends or other income attributable thereto) may be allocated prior
to the later of the tenth anniversary of the purchase or the Plan Year following
the Plan Year for which shares are released from the Loan Suspense Account as a
result of the final payment on the Acquisition Loan incurred in connection with
such purchase to the Accounts of:

            (1)   any Participant who has made an election under Section 1042 of
                  the Code; or

            (2)   the selling shareholder's spouse, brothers or sisters (whether
                  by the whole or half blood), ancestors or lineal descendants
                  (except as to certain lineal descendants, to the extent
                  provided in Section 409(n)(3)(A) of the Code), or any other
                  person who bears a relationship to him that is described in
                  Section 267(b) of the Code.

      In addition, no portion of the Company Stock purchased by the Trust in the
1996 transaction (or any dividends or other income attributable thereto) may
thereafter be allocated to the Accounts of any Participant owning (as determined
under Section 318(a) of the Code, without regard to Section 318(a)(2)(B)(i) of
the Code), during the entire one-year period preceding the purchase or on any
Allocation Date, more than 25% of any class of outstanding Company Stock or of
the total value of any class of outstanding Company Stock.

      To the extent that a Participant is subject to the allocation limitation
described in this Section 7(c) for an Plan Year, he shall not share in the
allocation of Employer Contributions and Forfeitures.

                                      -21-
<PAGE>

                                                                   Exhibit 10.61

Section 8. Voting Company Stock.

      Each Participant (or Beneficiary) will be entitled to give directions to
the Trustee as to the voting of shares of Company Stock allocated to his Company
Stock Account on all matters presented for a vote of stockholders. Each
Participant (or Beneficiary) having shares allocated to his Company Stock
Account as of the record date for voting at a stockholder meeting shall be
provided with the proxy statement and other materials provided to Company
stockholders in connection with such meeting, together with a form upon which
confidential voting directions may be given to the Trustee. The Trustee shall
not disclose the voting directions of any individual Participant (or
Beneficiary) to the Committee or the Company. Any allocated Company Stock with
respect to which voting directions are not received from Participants (or
Beneficiaries) and any shares of Company Stock which are not then allocated to
Participants' Company Stock Accounts shall be voted by the Trustee in the manner
directed by the Committee.

Section 9. Vesting and Forfeitures.

      (a) Vesting - A Participant's interest in his Accounts shall become 100%
vested and nonforfeitable if he (1) is employed by the Company or an Affiliate
on or after his 60th birthday, (2) incurs a Disability while employed by the
Company or an Affiliate, (3) dies while employed by the Company or an Affiliate,
or (4) completes at least three years of Credited Service.

                                      -22-
<PAGE>

                                                                   Exhibit 10.61

      (b) Forfeitures - If a Participant who is not vested terminates Service,
he will be deemed to have received a distribution of his Capital Accumulation on
the date his Service terminated, and his entire Account balances shall be
forfeited as of that date. All Forfeitures will be reallocated to the Accounts
of remaining Participants, as provided in Section 6(a), as of the Allocation
Date coinciding with or next following the date on which the Forfeiture occurs.

      (c) Restoration of Forfeited Amounts - In the event that a non-vested
former Participant is reemployed prior to the occurrence of a five-year Break in
Service, his Account balances (attributable to the prior period of Service) that
were forfeited under Section 9(b) shall be restored as if there had been no
Forfeiture. Such restoration shall be made out of Forfeitures occurring in the
Plan Year of his reemployment (prior to the allocation of Forfeitures under
Section 6(a)). To the extent that such Forfeitures are not sufficient, the
Company shall make a special contribution to restore the Participant's Accounts.
Any amount so restored to a Participant shall not constitute an Annual Addition
under Section 7(a).

Section 10. Credited Service and Break in Service.

      (a) Credited Service - An Employee's Credited Service shall include each
period of his Service computed (in full years and days) from the date he is
first credited with an Hour of Service (including Service prior to March 1,
1996) until the date on which his Service terminates. A Break in Service that
does not exceed one year shall be included in an Employee's Credited Service.
Credited Service shall also include periods of Service with an Affiliate.

                                      -23-
<PAGE>

                                                                   Exhibit 10.61

      (b) Break in Service - A one-year Break in Service shall occur one year
after the date of an Employee's termination of Service. A five-consecutive-year
Break in Service shall occur five years after the date of an Employee's
termination of Service (if he has not been reemployed). For purposes of
determining the period of an Employee's Break in Service, the period of a
maternity/paternity absence, described in Section 411(a)(6)(E)(i) of the Code,
or any unpaid leave covered under the Family and Medical Leave Act of 1993, not
exceeding one year shall not be treated as a Break in Service. For purposes of
this Section 10(b), a "maturity/paternity absence" means an Employee's absence
(A) by reason of the (i) pregnancy of an Employee, (ii) birth of a child of an
Employee or (iii) placement of a child with an Employee in connection with the
adoption of such child by such Employee, or (B) for purposes of caring for a
child described in clause (A) for a period immediately following such birth or
placement.

      (c) Reemployment - If a former Employee is reemployed after a
five-consecutive-year Break in Service and had not attained a vested interest
under the Plan, Service prior to the Break in Service shall not be included in
determining his Credited Service. If a Participant is reemployed after a
one-year Break in Service but prior to the occurrence of a five-consecutive-year
Break in Service, his Credited Service shall not include Service prior to the
one-year Break in Service until he completes one year of Credited Service
following reemployment.

                                      -24-
<PAGE>

                                                                   Exhibit 10.61

Section 11. When Capital Accumulation Will Be Distributed.

      (a)   Except as otherwise provided in Sections 11(c) and 12, a
Participant's Capital Accumulation will be distributed following his termination
of Service, but only at the time and in the manner determined by the Committee.
The Committee shall establish a written benefit distribution policy (which may
be modified from time to time) and shall apply such policy to Participants in a
nondiscriminatory manner.

      (b)   In the event of a Participant's Retirement, Disability or death,
distribution of his Capital Accumulation shall commence not later than the Plan
Year following the Plan Year in which his Retirement, Disability or death
occurs. If a Participant's Service terminates for any other reason, distribution
of his Capital Accumulation shall commence not later than the sixth Plan Year
following the Plan Year in which his Service terminates (unless he is reemployed
by the Company or an Affiliate). Except as otherwise provided in Section 11(c),
if a Participant's Capital Accumulation includes Financed Shares, the Committee
may elect to defer the distribution of that portion of his Capital Accumulation
(attributable to such Financed Shares) until the Plan Year following the Plan
Year in which the Acquisition Loan (incurred to acquire such Financed Shares)
has been fully repaid. For this purpose, all indebtedness incurred by the
Trustee to acquire Company Stock in a single transaction shall be treated as one
Acquisition Loan.

      The following alternative modes of distribution may be selected by the
Committee (after considering the available liquid assets of the Company and the
Trust):

            (1)   Distribution of a Participant's Capital Accumulation in a
                  single lump sum; or

                                      -25-
<PAGE>

                                                                   Exhibit 10.61

            (2)   Distribution of a Participant's Capital Accumulation in
                  substantially equal, annual installments over a period not
                  exceeding five years (provided that the period over which
                  installments may be distributed may be extended an additional
                  year (up to an additional five years) for each $145,000 or
                  fraction thereof by which his Capital Accumulation exceeds
                  $735,000 (as adjusted after 1999 for increases in the cost of
                  living pursuant to Section 409(o)(2) of the Code)); or

            (3)   Any combination of the foregoing.

If the value of a Participant's Capital Accumulation at the time a distribution
would otherwise commence under this Section 11 exceeds $5,000, no portion of his
Capital Accumulation may be distributed to him without his written consent
before he attains age 62.

      (c)   Distribution of a Participant's Capital Accumulation shall commence
not later than 60 days after the end of the Plan Year in which occurs the latest
of (1) his 65th birthday, (2) the tenth anniversary of the date he became a
Participant, or (3) his termination of Service. The distribution of the Capital
Accumulation of any Participant who attains age 70-1/2 in any calendar year and
either (i) has terminated Service or (ii) is a "5% owner" of Company Stock (as
defined in Section 416(i)(1)(B)(i) of the Code) must commence not later than
April 1st of the next calendar year and must be made in accordance with the
regulations under Section 401(a)(9) of the Code, including Section
1.401(a)(9)-2. If the amount of a Participant's Capital Accumulation cannot be
determined (by the Committee) by the date on which a distribution is to
commence, or if the Participant cannot be located, distribution of his Capital
Accumulation shall commence within 60 days after the date on which his Capital
Accumulation can be determined or after the date on which the Committee locates
the Participant.

                                      -26-
<PAGE>

                                                                   Exhibit 10.61

      (d) If any part of a Participant's Capital Accumulation is retained in the
Trust after his Service ends, his Accounts will continue to be treated as
described in Section 6. However, except as provided in Section 3(b), such
Accounts shall not be credited with any additional Employer Contributions and
Forfeitures.

Section 12. Diversification Election and In-Service Distributions.

      (a) Diversification - Effective January 1, 2006, a Participant who has
attained age 55 and completed at least ten Years of Participation shall be
notified of his right to elect to "diversify" a portion of the balance in his
Company Stock Account, as provided in Section 401(a)(28)(B) of the Code. An
election to "diversify" must be made on the prescribed form and filed with the
Committee within the 90-day period immediately following the last day of a Plan
Year in the Election Period. For purposes of this Section 12, "Years of
Participation" is the number of Plan Years in which the Participant is entitled
to receive an allocation of Employer Contributions or Forfeitures under Section
3(b), and the "Election Period" means the period of six consecutive Plan Years
beginning with the Plan Year in which the Participant first becomes eligible to
make an election.

      For each of the first five Plan Years in the Election Period, the
Participant may elect to "diversify" an amount which does not exceed 25% of the
number of shares of Company Stock allocated to his Company Stock Account, less
all shares with respect to which an election under this Section 12(a) was
previously made. In the case of the sixth Plan Year in the Election Period, the
Participant may elect to "diversify" an amount which does not exceed 50% of the
number of shares of Company Stock allocated to his Company Stock Account ,

                                      -27-
<PAGE>

                                                                   Exhibit 10.61

less all shares with respect to which an election under this Section 12(a) was
previously made. No "diversification" shall be permitted if the balance in a
Participant's Company Stock Account as of the last day of the first Plan Year in
the Election Period has a Fair Market Value of $500 or less, unless and until
the balance in his Company Stock Account as of a subsequent Plan Year in the
Election Period exceeds $500.

      The Committee shall determine whether "diversification" will be effected
by permitting the Participant to direct the Trustee to transfer cash
representing that portion of his Company Stock Account with respect to which a
"diversification" election is made to the 401(k) Plan for his benefit (so long
as at least three investment funds (other than Company Stock) are made available
under the 401(k) Plan) or by distributing to the Participant shares of Company
Stock with respect to which a "diversification" election is made. Any transfer
to the 401(k) Plan under this Section 12(a) shall occur no earlier than 30 days
after Form 5310-A with respect to such transfer has been filed (if necessary)
with the Internal Revenue Service, but not later than the time when a
distribution under this Section 12(a) would have been required. Any distribution
under this Section 12(a) shall be made within 90 days after the 90-day period in
which the election may be made and shall be subject to the provisions of Section
13(c) and (d).

      (b) In-Service Withdrawal - A Participant who has not terminated Service
and whose interest in his Accounts is 100% vested and nonforfeitable under
Section 9(a)(4) may request a distribution of up to 50% of the number of shares
of Company Stock allocated to his Company Stock Account, less any shares with
respect to which elections under Section 12(a) and this Section 12(b) were
previously made; provided, however, that if he has not completed

                                      -28-
<PAGE>

                                                                   Exhibit 10.61

at least five Years of Participation, as defined in Section 12(a), such
withdrawal shall be limited to shares which have been allocated to his Company
Stock Account for at least three Allocation Dates preceding the Plan Year of the
withdrawal. Such a withdrawal may only be made once each Plan Year and shall be
available only during annual withdrawal periods specified by the Committee. Any
distribution to a Participant under this Section 12(b) shall be subject to the
provisions of Section 13 and shall not be eligible for transfer by direct
rollover to the 401(k) Plan; provided, however, that the cash proceeds from a
Participant's sale of Company Stock withdrawn under this Section 12(b) are
eligible to be rolled over to the 401(k) Plan. All withdrawal requests must be
made in writing on forms prescribed by the Committee and shall be subject to
such administrative rules and procedures as may be established by the Committee.

Section 13. How Capital Accumulation Will Be Distributed.

      (a) The Trustee will make distributions from the Trust only as directed by
the Committee. Distribution of a Participant's Capital Accumulation will be made
in whole shares of Company Stock, cash or a combination of both, as determined
by the Committee; provided, however, that the Committee shall notify the
Participant of his right to demand distribution of his Capital Accumulation
entirely in whole shares of Company Stock (with only the value of any fractional
share paid in cash). Shares of Company Stock distributed by the Trustee shall be
readily tradable on an established securities market.

      (b) Distribution of a Participant's Capital Accumulation will be made to
the Participant if he is living, and if not, to his Beneficiary. In the event of
a Participant's death,

                                      -29-
<PAGE>

                                                                   Exhibit 10.61

his Beneficiary shall be his surviving spouse, or if none, his estate. A
Participant (with the written consent of his spouse, if any, acknowledging the
effect of the consent and witnessed by a notary public or Plan representative)
may designate a different Beneficiary or Beneficiaries from time to time by
filing a written designation with the Committee. A deceased Participant's entire
Capital Accumulation shall be distributed to his Beneficiary within five years
after his death, except to the extent that distribution has previously commenced
in accordance with Section 11(b)(2).

      (c) The Company shall furnish the recipient of a distribution with the tax
consequences explanation required by Section 402(f) of the Code and shall comply
with the withholding requirements of Section 3405 of the Code and of any
applicable state law with respect to distributions from the Trust. If the
Committee so elects for a Plan Year, distributions to Participants may commence
less than 30 days after the notice required under Section 1.411(a)-11(c) of the
regulations under the Code is given; provided that no such distribution to a
Participant shall be made unless (1) the Participant is informed that he has the
right to a period of at least 30 days after receiving the notice to consider
whether or not to consent to a distribution (or a particular distribution
option) and (2) the Participant affirmatively elects to receive a distribution
after receiving the notice.

      (d) If a distribution of a Participant's Capital Accumulation is neither
one of a series of annual installments over a period of ten years (or more) nor
the minimum amount required to be distributed pursuant to the second sentence of
Section 11(c) (an "eligible rollover distribution"), the Committee shall notify
the Participant (or any spouse or former spouse who is his alternate payee under
a "qualified domestic relations order" (as defined in

                                      -30-
<PAGE>

                                                                   Exhibit 10.61

Section 414(p) of the Code)) of his right to elect to have the "eligible
rollover distribution" paid directly to an "eligible retirement plan" (within
the meaning of Section 401(a)(31) of the Code) that is an individual retirement
account described in Section 408(a) of the Code, an individual retirement
annuity described in Section 408(b) of the Code, a qualified trust described in
Section 401(a) of the Code or a qualified annuity plan described in Section
403(a) of the Code that accepts "eligible rollover distributions." If such an
"eligible rollover distribution" is to be made to the Participant's surviving
spouse, the Committee shall notify the surviving spouse of his right to elect to
have the distribution paid directly to an "eligible retirement plan" that is
either an individual retirement account described in Section 408(a) of the Code
or an individual retirement annuity described in Section 408(b) of the Code. Any
election under this Section 13(d) shall be made and effected in accordance with
such rules and procedures as may be established from time to time by the
Committee in order to comply with Section 401(a)(31) of the Code.

Section 14. Rights, Options and Restrictions on Company Stock.

      Shares of Company Stock held or distributed by the Trustee may include
such legend restrictions on transferability as the Company may reasonably
require in order to assure compliance with applicable Federal and state
securities laws, but no shares of Company Stock held or distributed by the
Trustee may be subject to a put, call or other option, or buy-sell or similar
arrangement. The provisions of this Section 14 shall continue to be applicable
to Company Stock even if the Plan ceases to be an employee stock ownership plan
under Section 4975(e)(7) of the Code.

                                      -31-
<PAGE>

                                                                   Exhibit 10.61

Section 15. No Assignment of Benefits.

      A Participant's Capital Accumulation may not be anticipated, assigned
(either at law or in equity), alienated or subject to attachment, garnishment,
levy, execution or other legal or equitable process, except in accordance with
(i) a "qualified domestic relations order" (as defined in Section 414(p) of the
Code); (ii) a federal tax levy or collection by the Internal Revenue Service on
a judgment resulting from an unpaid tax assessment; or (iii) a judgment or
settlement described in Section 401(a)(13)(C) of the Code. Distributions made to
an alternate payee in accordance with a qualified domestic relations order may
commence no earlier than the date on which the Participant attains his "earliest
retirement age" (as defined in Section 414(p)(4)(B) of the Code).

Section 16. Administration.

      (a) Administrative Committee - The Plan will be administered by an
Administrative Committee composed of one or more individuals appointed by the
Board of Directors to serve at its pleasure and without compensation. The
members of the Committee shall be the named fiduciaries with authority to
control and manage the operation and administration of the Plan. Members of the
Committee need not be Employees or Participants. Any Committee member may resign
by giving notice, in writing, to the Board of Directors.

                                      -32-
<PAGE>

                                                                   Exhibit 10.61

      (b) Committee Action - Committee action will be by vote of a majority of
the members at a meeting or by unanimous written consent without a meeting. A
Committee member shall not vote on any question relating specifically to
himself.

      The Committee shall choose from its members a Chairman and a Secretary.
The Chairman or the Secretary of the Committee shall be authorized to execute
any certificate or other written direction on behalf of the Committee. The
Secretary shall keep a record of the Committee's proceedings and of all dates,
records and documents pertaining to the administration of the Plan.

      (c) Powers and Duties of the Committee - The Committee shall have all
powers necessary to enable it to administer the Plan and the Trust Agreement in
accordance with their provisions, including without limitation the following:

            (1)   resolving all questions relating to the eligibility of
                  Employees to become Participants;

            (2)   determining the appropriate allocations to Participants'
                  Accounts pursuant to Section 6;

            (3)   determining the amount of benefits payable to a Participant
                  (or Beneficiary), and the time and manner in which such
                  benefits are to be paid;

            (4)   authorizing and directing all disbursements of Trust Assets by
                  the Trustee;

            (5)   establishing procedures in accordance with Section 414(p) of
                  the Code to determine the qualified status of domestic
                  relations orders and to administer distributions under such
                  qualified orders;

            (6)   engaging any administrative, legal, accounting, clerical or
                  other services that it may deem appropriate;

                                      -33-
<PAGE>

                                                                   Exhibit 10.61

            (7)   construing and interpreting the Plan and the Trust Agreement
                  and adopting rules for administration of the Plan that are
                  consistent with the terms of the Plan documents and of ERISA
                  and the Code;

            (8)   compiling and maintaining all records it determines to be
                  necessary, appropriate or convenient in connection with the
                  administration of the Plan;

            (9)   reviewing the performance of the Trustee with respect to the
                  Trustee's administrative duties, responsibilities and
                  obligations under the Plan and Trust Agreement;

            (10)  executing agreements and other documents on behalf of the Plan
                  and Trust.

      The Committee shall be responsible for directing the Trustee as to the
investment of Trust Assets. The Committee may delegate to the Trustee the
responsibility for investing all or any portion of the Trust Assets. The
Committee shall establish a funding policy and method for directing the Trustee
to acquire Company Stock (and for otherwise investing the Trust Assets) in a
manner that is consistent with the objectives of the Plan and the requirements
of ERISA.

      The Committee shall perform its duties under the Plan and the Trust
Agreement solely in the interests of the Participants (and their Beneficiaries).
Any discretion granted to the Committee under any of the provisions of the Plan
or the Trust Agreement shall be exercised only in accordance with rules and
policies established by the Committee which shall be applicable on a
nondiscriminatory basis. The Committee shall have sole and exclusive
discretionary authority to construe, interpret and apply the terms of the Plan.
The Committee shall be given the greatest possible deference permitted by law in
the exercise of such discretionary authority.

                                      -34-
<PAGE>

                                                                   Exhibit 10.61

      (d) Expenses - All reasonable expenses of administering the Plan and Trust
shall be charged to and paid out of the Trust Assets. The Company may, however,
pay all or any portion of such expenses directly, and payment of expenses by the
Company shall not be deemed to be Employer Contributions.

      (e) Information to be Submitted to the Committee - To enable the Committee
to perform its functions, the Company shall supply full and timely information
to the Committee on all matters as the Committee may require, and shall maintain
such other records as the Committee may determine are necessary or appropriate
in order to determine the benefits due or which may become due to Participants
(or Beneficiaries) under the Plan.

      (f) Delegation of Fiduciary Responsibility - The Committee from time to
time may allocate to one or more of its members and/or may delegate to any other
persons or organizations any of its rights, powers, duties and responsibilities
with respect to the operation and administration of the Plan that are permitted
to be so delegated under ERISA; provided, however, that responsibility for
investment of the Trust Assets may not be allocated or delegated except as
provided in Section 16(c). Any such allocation or delegation shall be made in
writing, shall be reviewed periodically by the Committee and shall be terminable
upon such notice as the Committee in its discretion deems reasonable and proper
under the circumstances.

      (g) Bonding, Insurance and Indemnity - To the extent required under
Section 412 of ERISA, the Company shall secure fidelity bonding for the
fiduciaries of the Plan.

      The Company (in its discretion) or the Trustee (as directed by the
Committee) may obtain a policy or policies of insurance for the Committee (and
other fiduciaries of the Plan) to

                                      -35-
<PAGE>

                                                                   Exhibit 10.61

cover liability or loss occurring by reason of the act or omission of a
fiduciary. If such insurance is purchased with Trust Assets, the policy must
permit recourse by the insurer against the fiduciary in the case of a breach of
a fiduciary obligation by such fiduciary. The Company hereby agrees to indemnify
each member of the Committee (to the extent permitted by law) against any
personal liability or expense resulting from his service on the Committee,
except such liability or expense as may result from his own willful misconduct.

      (h) Notices, Statements and Reports - The Company shall be the "Plan
Administrator" (as defined in Section 3(16)(A) of ERISA and Section 414(g) of
the Code) for purposes of the reporting and disclosure requirements of ERISA and
the Code. The Committee shall assist the Company, as requested, in complying
with such reporting and disclosure requirements. The Committee shall be the
designated agent of the Plan for the service of legal process.

Section 17. Claims Procedure.

      A Participant (or Beneficiary) who does not receive a distribution of
benefits to which he believes he is entitled may present a claim to the
Committee. The claim for benefits must be in writing and addressed to the
Committee or to the Company. If the claim for benefits is denied, the Committee
shall notify the Participant (or Beneficiary) in writing within 90 days after
the Committee initially received the benefit claim, unless special circumstances
require an extension of time for processing the claim, in which case such period
may be extended for an additional 90 days; provided, that the Committee must
provide the Participant (or Beneficiary) with written notice of such extension
prior to the expiration of the initial 90-day

                                      -36-
<PAGE>

                                                                   Exhibit 10.61

period. Any notice of a denial of benefits shall advise the Participant (or
Beneficiary) of the basis for the denial, any additional material or information
necessary for the Participant (or Beneficiary) to perfect his claim and the
steps which the Participant (or Beneficiary) must take to have his claim for
benefits reviewed.

      Each Participant (or Beneficiary) whose claim for benefits has been denied
may file a written request for a review of his claim by the Committee. The
request for review must be filed by the Participant (or Beneficiary) within 60
days after he receives the written notice denying his claim. The decision of the
Committee will be made within 60 days after receipt of a request for review and
shall be communicated in writing to the claimant. Such written notice shall set
forth the basis for the Committee's decision. If there are special circumstances
(such as the need to hold a hearing) which require an extension of time for
completing the review, the Committee's decision shall be rendered not later than
120 days after receipt of a request for review. Nothing contained in the Plan
shall be deemed to give an Employee the right to be retained in the Service of
the Company or to interfere with the right of the Company to discharge, with or
without cause, any Employee at any time. All decisions and interpretations of
the Committee under this Section 17 shall be conclusive and binding upon all
persons with an interest in the Plan and shall be given the greatest deference
permitted by law.

Section 18. Limitation on Participants' Rights.

      A Participant's Capital Accumulation will be based solely upon his vested
interest in his Accounts and will be paid only from the Trust Assets. The
Company, the Committee or

                                      -37-
<PAGE>

                                                                   Exhibit 10.61

the Trustee shall not have any duty or liability to furnish the Trust with any
funds, securities or other assets, except as expressly provided in the Plan.

      The adoption and maintenance of the Plan shall not be deemed to constitute
a contract of employment or otherwise between the Company and any Employee, or
to be a consideration for, or an inducement or condition of, any employment.
Nothing contained in this Plan shall be deemed to give an Employee the right to
be retained in the Service of the Company or to interfere with the right of the
Company to discharge, with or without cause, any Employee at any time.

Section 19. Future of the Plan.

      The Company reserves the right to amend or terminate the Plan (in whole or
in part) and the Trust Agreement at any time, by action of the Board of
Directors. Neither amendment nor termination of the Plan shall retroactively
reduce the vested rights of Participants or permit any part of the Trust Assets
to be diverted to or used for any purpose other than for the exclusive benefit
of the Participants (and their Beneficiaries).

      The Company specifically reserves the right to amend the Plan and the
Trust Agreement retroactively in order to satisfy any applicable requirements of
the Code and ERISA.

      If the Plan is terminated (or partially terminated), participation of
Participants affected by the termination will end. If Employer Contributions are
not replaced by contributions to a comparable plan which satisfies the
requirements of Section 401(a) of the Code, the Accounts of all affected
Participants shall become nonforfeitable. A complete discontinuance of

                                      -38-
<PAGE>

                                                                   Exhibit 10.61

Employer Contributions shall be deemed to be a termination of the Plan for this
purpose.

      After termination of the Plan, the Trust will be maintained until the
Capital Accumulations of all Participants have been distributed. Capital
Accumulations may be distributed following termination of the Plan or
distributions may be deferred as provided in Section 11, as the Company shall
determine. In the event that Company Stock is sold in connection with the
termination of the Plan or the amendment of the Plan to become a qualified
employee plan that is not a stock bonus plan, all Capital Accumulations may be
distributed in cash.

      In the event of the merger or consolidation of this Plan with another
plan, or the transfer of Trust Assets (or liabilities) to another plan, the
Account balances of each Participant immediately after such merger,
consolidation or transfer must be at least as great as immediately before such
merger, consolidation or transfer (as if the Plan had then terminated).

Section 20. "Top-Heavy" Contingency Provisions.

      (a) The provisions of this Section 20 are included in the Plan pursuant to
Section 401(a)(10)(B)(ii) of the Code and shall become applicable only if the
Plan becomes a "top-heavy plan" under Section 416(g) of the Code for any Plan
Year.

      (b) The determination as to whether the Plan becomes "top-heavy" for any
Plan Year shall be made as of the Allocation Date of the immediately preceding
Plan Year by considering the Plan together with the 401(k) Plan. The Plan shall
be "top-heavy" only if the total of the account balances under the Plan and the
401(k) Plan for "key employees" as of the determination date exceeds 60% of the
total of the account balances for all Participants. For

                                      -39-
<PAGE>

                                                                   Exhibit 10.61

such purpose, account balances shall be computed and adjusted pursuant to
Section 416(g) of the Code. "Key employees" shall be certain Participants (who
are officers or shareholders of the Company) and Beneficiaries described in
Section 416(i)(1) or (5) of the Code.

      (c) For any Plan Year in which the Plan is "top-heavy," each Participant
who is an Employee on the Allocation Date (and who is not a "key employee")
shall receive a minimum allocation of Employer Contributions and Forfeitures
which is equal to the lesser of:

            (1)   3% of his Compensation; or

            (2)   the same percentage of his Compensation as the allocation to
                  the "key employee" for whom the percentage is the highest for
                  that Plan Year. For this purpose, the allocation to a "key
                  employee" shall include any Elective Deferrals made on his
                  behalf for the Plan Year to the 401(k) Plan.

Section 21. Governing Law.

      The provisions of this Plan and the Trust Agreement shall be construed,
administered and enforced in accordance with the laws of the State of
California, to the extent such laws are not superseded by ERISA.

Section 22. Execution.

      To record the amendment and restatement of the Plan, the Company has
caused it to be executed on this 15th day of April, 1999.

                                                MEADE INSTRUMENTS CORP.

                                                By /s/ Steven G. Murdock
                                                   -----------------------------

                                      -40-
<PAGE>

                                                                   Exhibit 10.61

                             MEADE INSTRUMENTS CORP.

                          EMPLOYEE STOCK OWNERSHIP PLAN

                  Amendment No. 1 to Amended and Restated Plan

      WHEREAS, Meade Instruments Corp. (the "Company") maintains the Meade
Instruments Corp. Employee Stock Ownership Plan (the "Plan") for the benefit of
its eligible Employees;

      WHEREAS, it is desirable to amend the definition of "Compensation" under
the Plan; and

      WHEREAS, it is desirable to clarify other provisions of the Plan.

      NOW, THEREFORE, the Plan is hereby amended as follows:

      1. The definition of "Compensation" in Section 2 is restated, effective as
of January 1, 2000, to read as follows:

      Compensation......................    The total wages and other
                                            compensation paid to an Employee by
                                            the Company during each Plan Year,
                                            as reported on the Employee's Tax
                                            and Wage Statement (Form W-2),
                                            including any Elective Deferrals
                                            made on his behalf to the 401(k)
                                            Plan and

<PAGE>

                                                                   Exhibit 10.61

                                            any amounts withheld pursuant to the
                                            Company's Cafeteria Plan (under
                                            Section 125 of the Code), but
                                            excluding employer contributions to
                                            a plan of deferred compensation,
                                            amounts realized in connection with
                                            stock options, amounts which receive
                                            special tax benefits, and any amount
                                            in excess of $170,000 (as adjusted
                                            after 2001 for increases in the cost
                                            of living pursuant to Section
                                            401(a)(17) of the Code).

      2. The definition of "Employee" in Section 2 is restated, effective as of
January 1, 1997, to read as follows:

      Employee .........................    Any individual who is treated as a
                                            common-law employee by the Company;
                                            provided, however, that an
                                            independent contractor (or other
                                            individual) who is reclassified as a
                                            common-law employee on a retroactive
                                            basis shall not be treated as having
                                            been an Employee for purposes of the
                                            Plan for any period prior to the
                                            date that he is so reclassified. A
                                            leased employee is not an Employee
                                            for purposes of this Plan. For this
                                            purpose, a "leased employee," as
                                            described in Section 414(n) of the
                                            Code, is any individual who is not
                                            treated as a common-law employee by
                                            the Company or an Affiliate and who
                                            provides services to the Company or
                                            an Affiliate if (A) such services
                                            are provided pursuant to an
                                            agreement between the Company or an
                                            Affiliate and a leasing
                                            organization, (B) such individual
                                            has performed services for the
                                            Company or an Affiliate on a
                                            substantially full-time basis for a
                                            period of at least one year, and (C)
                                            such services are performed under
                                            the primary direction or control of
                                            the Company or an Affiliate.

      3. The second paragraph of Section 12(a) is restated, effective as of
January 1, 1999, to read as follows:

                                      -42-
<PAGE>

                                                                   Exhibit 10.61

            For each of the first five Plan Years in the Election Period, the
      Participant may elect to "diversify" an amount which does not exceed 25%
      of the number of shares of Company Stock allocated to his Company Stock
      Account (including for this purpose any shares of Company Stock
      distributed or withdrawn during the Election Period), less all shares with
      respect to which an election under this Section 12(a) was previously made.
      In the case of the sixth Plan Year in the Election Period, the Participant
      may elect to "diversify" an amount which does not exceed 50% of the number
      of shares of Company Stock allocated to his Company Stock Account
      (including for this purpose any shares of Company Stock distributed or
      withdrawn during the Election Period), less all shares with respect to
      which an election under this Section 12(a) was previously made. No
      "diversification" shall be permitted if the balance in a Participant's
      Company Stock Account as of the last day of the first Plan Year in the
      Election Period has a Fair Market Value of $500 or less, unless and until
      the balance in his Company Stock Account as of a subsequent Plan Year in
      the Election Period exceeds $500.

      4. The first sentence of Section 13(d) is restated, effective as of
January 1, 2000, to read as follows:

            If a distribution of a Participant's Capital Accumulation is neither
      one of a series of annual installments over a period of ten years (or
      more) nor a hardship withdrawal of "elective deferrals" as described in
      Section 401(k)(2)(IV) of the Code nor the minimum amount required to be
      distributed pursuant to the second sentence of Section 11(c) (an "eligible
      rollover distribution"), the Committee shall notify the Participant (or
      any spouse

                                      -43-
<PAGE>

                                                                   Exhibit 10.61

      or former spouse who is his alternate payee under a "qualified domestic
      relations order" (as defined in Section 414(p) of the Code)) of his right
      to elect to have the "eligible rollover distribution" paid directly to an
      "eligible retirement plan" (within the meaning of Section 401(a)(31) of
      the Code) that is an individual retirement account described in Section
      408(a) of the Code, an individual retirement annuity described in Section
      408(b) of the Code, a qualified trust described in Section 401(a) of the
      Code or a qualified annuity plan described in Section 403(a) of the Code
      that accepts "eligible rollover distributions."

      To record the adoption of this Amendment No. 1, the Company has caused it
to be executed this _____ day of December, 2000.

                                             MEADE INSTRUMENTS CORP.

                                             By /s/ Brent W. Christensen
                                                --------------------------------

                                      -44-
<PAGE>

                                                                   Exhibit 10.61

                             MEADE INSTRUMENTS CORP.

                          EMPLOYEE STOCK OWNERSHIP PLAN

                  Amendment No. 2 to Amended and Restated Plan

      WHEREAS, Meade Instruments Corp. (the "Company") maintains the Meade
Instruments Corp. Employee Stock Ownership Plan (the "Plan") for the benefit of
eligible Employees;

      WHEREAS, it is necessary to amend the Plan to conform to certain
provisions of the Internal Revenue Code of 1986, as amended by the Taxpayer
Relief Act of 1997, the Community Renewal Tax Relief Act of 2000 and the
Economic Growth and Tax Relief Reconciliation Act of 2001; and

      WHEREAS, it is desirable to clarify certain existing Plan provisions.

      NOW, THEREFORE, the Plan is hereby amended as follows:

      1. Section 2 is amended by restating the definition of "Compensation" to
read as follows, effective as of January 1, 2002:

      Compensation......................    The total wages and other
                                            compensation paid to an Employee by
                                            the Company during each Plan Year,
                                            as reported on the Employee's Tax
                                            and Wage Statement (Form W-2),
                                            including any Elective

<PAGE>

                                                                   Exhibit 10.61

                                            Deferrals made on his behalf to the
                                            401(k) Plan, any amounts withheld
                                            pursuant to the Company's Cafeteria
                                            Plan (under Section 125 of the Code)
                                            and any "qualified transportation
                                            benefits" under Section 132(f)(4) of
                                            the Code, but excluding employer
                                            contributions to a plan of deferred
                                            compensation, amounts realized in
                                            connection with stock options,
                                            amounts which receive special tax
                                            benefits, and any amount in excess
                                            of $200,000 (as adjusted
                                            periodically by the Internal Revenue
                                            Service after 2002 for increases in
                                            the cost of living pursuant to
                                            Section 401(a)(17) of the Code).

      2. Section 7(a) is amended by restating the first sentence thereof to read
as follows, effective as of January 1, 2002:

            The Annual Additions for each Plan Year with respect to any
      Participant may not exceed the lesser of:

                  (1)   100% of his Compensation; or

                  (2)   $40,000, as adjusted for increases in the cost of living
                        pursuant to Section 415(d)(1)(C) of the Code.

      3. Section 11(b) is amended by restating the last sentence thereof to read
as follows, effective as of October 17, 2000:

      If the value of a Participant's Capital Accumulation exceeds $5,000, no
      portion of his Capital Accumulation may be distributed to him without his
      written consent before he attains age 62.

                                      -46-
<PAGE>

                                                                   Exhibit 10.61

      4. Section 13(b) is amended by restating the last sentence thereof to read
as follows, effective as of January 1, 1999:

      A deceased Participant's entire Capital Accumulation shall be distributed
      to his Beneficiary on or before the December 31st of the calendar year
      that includes the fifth anniversary of his death, except to the extent
      that distribution has previously commenced in accordance with Section
      11(b)(2).

      5. Section 13(d) is restated to read as follows, effective as of January
1, 2002:

            If a distribution of a Participant's Capital Accumulation is neither
      one of a series of annual installments over a period of ten years (or
      more), a hardship withdrawal nor the minimum amount required to be
      distributed pursuant to the second sentence of Section 11(c) (an "eligible
      rollover distribution"), the Committee shall notify the Participant (or
      any spouse or former spouse who is his alternate payee under a "qualified
      domestic relations order" (as defined in Section 414(p) of the Code)) or
      the Participant's surviving spouse of his right to elect to have the
      "eligible rollover distribution" paid directly to an "eligible retirement
      plan" (within the meaning of Section 401(a)(31) of the Code) that is an
      individual retirement account described in Section 408(a) of the Code, an
      individual retirement annuity described in Section 408(b) of the Code, a
      qualified trust described in Section 401(a) of the Code, a qualified
      annuity plan described in Section 403(a) of the Code, an annuity contract
      described in Section 403(b) or an eligible plan described in Section
      457(b) of the Code (which is maintained by a state,

                                      -47-
<PAGE>

                                                                   Exhibit 10.61

      political subdivision of a state, or any agency or instrumentality of a
      state or political subdivision of a state) that accepts "eligible rollover
      distributions." Any election under this Section 13(d) shall be made and
      effected in accordance with such rules and procedures as may be
      established from time to time by the Committee in order to comply with
      Section 401(a)(31) of the Code.

      To record the adoption of this Amendment No. 2 to the Plan, the Company
has caused it to be executed this 18th day of December, 2002.

                                                   MEADE INSTRUMENTS CORP.

                                                   By /s/ Brent W. Christensen
                                                      --------------------------
                                                      Brent W. Christensen

                                      -48-
<PAGE>

                             MEADE INSTRUMENTS CORP.

                          EMPLOYEE STOCK OWNERSHIP PLAN

                  Amendment No. 3 to Amended and Restated Plan

      WHEREAS, Meade Instruments Corp. (the "Company") maintains the Meade
Instruments Corp. Employee Stock Ownership Plan (the "Plan") for the benefit of
eligible Employees; and

      WHEREAS, it is necessary to amend the Plan to reflect the final
regulations issued under Section 401(a)(9) of the Internal Revenue Code of 1986,
as amended.

      NOW, THEREFORE, Section 11(c) is hereby amended by restating the second
sentence thereof to read as follows, effective as of January 1, 2003:

      The distribution of the Capital Accumulation of any Participant who
      attains age 70-1/2 in a calendar year and who either (1) has terminated
      Service or (2) is a "5% owner" of Company Stock (as defined in Section
      416(i)(1)(B)(i) of the Code), must commence not later than April 1st of
      the next calendar year and must be made in accordance with the regulations
      under Section 401(a)(9) of the Code, including Section 1.401(a)(9)-2 (as
      modified by the Section 401(a)(9) Final and Temporary Regulations
      published in the Federal Register on April 17, 2002).

      To record the adoption of this Amendment No. 3 to the Plan, the Company
has caused it to be executed this 15th day of December, 2003.

                                             MEADE INSTRUMENTS CORP.

                                             By /s/ Brent W. Christensen
                                                --------------------------------
                                                Brent W. Christensen

<PAGE>

                             MEADE INSTRUMENTS CORP.

                          EMPLOYEE STOCK OWNERSHIP PLAN

                  Amendment No. 4 to Amended and Restated Plan

      WHEREAS, Meade Instruments Corp. (the "Company") maintains the Meade
Instruments Corp. Employee Stock Ownership Plan (the "Plan") for the benefit of
eligible Employees; and

      WHEREAS, it is desirable to amend the Plan to restrict involuntary
distributions to amounts of $1,000 or less so that the Plan may be exempt from
the automatic rollover requirement imposed by Section 401(a)(31)(B) of the
Internal Revenue Code of 1986, as amended, as modified by the Economic Growth
and Tax Relief Reconciliation Act of 2001.

      NOW, THEREFORE, Section 11(b) of the Plan is hereby amended by restating
the last sentence thereof to read as follows, effective for distributions made
after March 27, 2005:

      If the value of a Participant's Capital Accumulation exceeds $1,000, no
      portion of his Capital Accumulation may be distributed to him without his
      written consent before he attains age 62.

<PAGE>

      To record the adoption of this Amendment No. 4 to the Plan, the Company
has caused it to be executed this 16th day of February, 2004.

                                             MEADE INSTRUMENTS CORP.

                                             By /s/ Brent W. Christensen
                                                --------------------------------
                                                Brent W. Christensen

                                      -51-exv10w62

 

Exhibit 10.62

ESOP LOAN AND PLEDGE AGREEMENT

by and between

MEADE INSTRUMENTS CORP.

and the

MEADE INSTRUMENTS CORP.

EMPLOYEE STOCK OWNERSHIP PLAN AND TRUST

Dated April 23, 1996

 

 

Exhibit 10.62

TABLE OF CONTENTS

	 	 	 
	 	 	Page
	ARTICLE 1
	 	3
	 
	 	 
	The ESOP Loan
	 	3
	1.1 Loan to ESOP
	 	3
	1.2            Use of Proceeds
	 	3
	1.3 Promissory Note
	 	3
	1.4            Interest
	 	3
	 
	 	 
	ARTICLE 2
	 	3
	 
	 	 
	Loan Payments
	 	3
	2.1 Payments of Principal and Interest
	 	3
	2.2            Company Contributions
	 	4
	2.3 Not Payable on Demand; Default
	 	4
	2.4 Limitation on Payments
	 	5
	2.5            Due on Sale or Liquidation
	 	6
	 
	 	 
	ARTICLE 3
	 	6
	 
	 	 
	Representations and Warranties of the ESOP
	 	6
	3.1 Authorizations
	 	6
	3.2 Compliance with Obligations and Laws
	 	7
	 
	 	 
	ARTICLE 4
	 	7
	 
	 	 
	Representations and Warranties of the Company
	 	7
	4.1 Corporate Authority
	 	7
	4.2            ESOP Adoption
	 	8
	4.3 Compliance with Laws and Obligations
	 	8
	4.4            Representations and Warranties under Fleet Loan Agreement and Churchill Agreement
	 	8
	4.5            Governmental Consent
	 	9
	 
	 	 
	ARTICLE 5
	 	9
	 
	 	 
	Pledge of Shares
	 	9
	5.1 Pledge
	 	9
	5.2 Release of Shares from Pledge
	 	9
	5.3 Default
	 	10
	 
	 	 
	ARTICLE 6
	 	 
	 
	 	 
	                                                                                Special Put Option Price
	 	11
	6.1 Duration
	 	11
	6.2 Put Option Under The ESOP
	 	11
	 
	 	 
	ARTICLE 7
	 	11
	 
	 	 
	Miscellaneous
	 	11
	7.1 Amendments, Waivers and Modifications
	 	11
	7.2 No Waiver
	 	12
	7.3 Survival of Covenants, Etc.; Successors and
	 	 

 

 

Exhibit 10.62

	 	 	 	 	 
	           Assigns
	 	 	12	 
	7.4 Communications
	 	 	12	 
	7.5 Capacity
	 	 	13	 
	7.6            Entire Agreement
	 	 	13	 
	7.7 Governing Law
	 	 	13	 
	7.8 Compliance with Applicable Law
	 	 	13	 
	7.9 Headings
	 	 	14	 
	7.10 Counterparts
	 	 	14	 
	7.11 Severability
	 	 	15	 

 

 

Exhibit 10.62

ESOP LOAN AND PLEDGE AGREEMENT

     THIS AGREEMENT, effective as of April 23, 1996, by and between MEADE INSTRUMENTS CORP., a
California corporation (the “Company”), and the MEADE INSTRUMENTS CORP. EMPLOYEE STOCK OWNERSHIP
PLAN AND TRUST (the “ESOP”).

W I T N E S S E T H:

     WHEREAS, the Company has adopted the ESOP to provide stock ownership interests in the Company
to eligible employees, and the ESOP is designed to be an employee stock ownership plan under
Section 4975(e)(7) of the Internal Revenue Code of 1986, as amended (the “Code”), and Section
407(d)(6) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”);

     WHEREAS, the Diebel Living Trust u/d/t dated January 12, 1995, the Murdock 1986 Trust u/d/t
dated October 23, 1986, Ronald Ezra and Joseph A. Gordon, Jr. (the “Sellers”), shareholders of the
Company, have offered to sell all of the 1,500,000 shares of Series B Common Stock of the Company
(the “Shares”) to the ESOP for a total purchase price of $10,999,950;

     WHEREAS, the Company is willing to make a loan to the ESOP in the amount of $10,999,950
(the “Loan”) in order to enable the ESOP to finance its purchase of the Shares, subject to the
condition that the ESOP pledge the Shares to the Company as security for the Loan;

     WHEREAS, the Company will obtain funds needed to make the Loan and for other corporate
purposes through the combination of a term loan (“Fleet Loan”) in the amount of $9,500,000 from
Fleet Capital Corporation (“Fleet”) pursuant to the terms of the Loan and Security Agreement by and
between Fleet and the Company (“Fleet Loan Agreement”) and the sale of $6 million of newly-issued
preferred stock to Churchill ESOP Capital Partners

 

 

Exhibit 10.62

(“Churchill”) pursuant to the terms of the Securities Purchase Agreement by and between the Company
and Churchill (“Churchill Agreement”);

     WHEREAS, the ESOP desires to incur the Loan in order to finance its purchase of the Shares;
and

     WHEREAS, Wells Fargo Bank, N.A., as Trustee of the ESOP (the “Trustee”) has determined that
the proposed purchase of the Shares and the borrowing of the Loan are in the best interests of the
ESOP and its participants and comply with the applicable requirements of the Code and ERISA;

     NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE 1

The ESOP Loan

               1.1 Loan to ESOP. Subject to the terms and conditions herein set forth, the Company
agrees to lend $10,999,950 to the ESOP.

               1.2 Use of Proceeds. The ESOP hereby agrees that it will use the entire proceeds of
the Loan to purchase the Shares and for no other purpose.

               1.3 Promissory Note. The Loan is evidenced by a secured promissory note in the
original principal amount of $10,999,950 (the “Note”) to be delivered by the ESOP to the Company,
in the form attached hereto.

               1.4 Interest. Interest shall accrue on the unpaid principal amount of the Note at the
rate of 6% per annum.

ARTICLE 2

-2-

 

Exhibit 10.62

Loan Payments

               2.1 Payments of Principal and Interest.

                    (a) Interest
– The ESOP shall pay interest (including interest on overdue payments) on
the unpaid portion of the ESOP Loan semi-annually on each August 31st and March 1st, commencing
August 31, 1996, at an annual rate equal to 6%.

                    (b) Principal
– Principal on the Note shall be due and payable in 20 consecutive
semi-annual installments on each August 31st and March 1st, beginning August 31, 1996, in the
amount of $550,000.00. Any remaining principal balance (including the final installment of
$549,950) and accrued interest shall be due and payable on March 1, 2006.

                    (c) Optional
Prepayment – The ESOP may prepay amounts due hereunder in whole or in
part at any time, and from time to time, without premium or penalty. Any prepayment under this
Section 2.1(c) shall be applied first to accrued interest and then to payments of principal in the
order of maturity.

                    (d) Form
of Payment – Payments of principal and/or interest on the ESOP Loan may be
made to the Company by the ESOP in cash or by cancellation of indebtedness by the Company evidenced
by written notice to the ESOP.

               2.2 Company Contributions. The Company hereby agrees to make contributions to the
ESOP in cash or by cancellation of indebtedness from time to time in amounts sufficient to permit
the ESOP to make timely payments of the principal and interest due under Section 2.1(a) and (b),
after taking into account the amount of any cash dividends on the Shares received by the ESOP;
provided, however, that the Company shall not be required to make contributions to the ESOP in
amounts in excess of the limitations under Sections 404(a) and 415(c) of the Code. The ESOP agrees
that so long as any interest or principal amount remains payable on the Loan, the ESOP will use all
cash contributions and cash dividends on the Shares received by the ESOP to make payments on the
Loan.

               2.3 Not Payable on Demand; Default. Under no circumstances will the outstanding
balance of the Loan be payable on demand, except in the case of an Event of Default. For this
purpose, the only Event of Default

-3-

 

Exhibit 10.62

hereunder shall be the ESOP’s failure to make the payments
required under Section 2.1(a) and (b), but only if the ESOP has received sufficient cash
contributions and dividends from the Company to make such payments.

               2.4 Limitation on Payments. Subject to the provisions of Section 5.3, payments of
principal and interest on the ESOP Loan shall not exceed the sum of all Company contributions
(excluding any contributions of Company Stock) that are made to the ESOP by Company to enable the
ESOP to meet its obligations under this Agreement, any earnings on such Company contributions and
any cash dividends on the Shares (whether or not such Shares have been released from pledge under
Section 5.2 at the time the dividend is paid), less payments made in prior years. The Company
shall have no recourse against the assets of the ESOP other than (a) cash contributions that are
made to the ESOP by the Company to enable the ESOP to meet its obligations hereunder, (b) any
earnings attributable to the investment of such cash contributions, (c) any cash dividends on the
Shares, and (d) the Shares remaining subject to pledge under Article 5, but only to the extent
permitted under Section 5.3. Notwithstanding the foregoing provisions, the ESOP may elect to apply
the proceeds from the sale of any Shares remaining subject to pledge under Article 5 to pay
principal and accrued interest due on the ESOP Loan in the event of the sale of the Company
(including a transaction subject to Section 2.5) or the termination of the ESOP or if the ESOP
ceases to be an employee stock ownership plan under Section 4975(e)(7) of the Code.

               2.5 Due on Sale or Liquidation.

                    (a) Due
on Sale – In the event the ESOP agrees to sell all of the Shares it owns in
connection with the acquisition of the Company, the ESOP shall apply the proceeds from the sale of
any Shares then remaining subject to pledge under Article 5 to the extent necessary to repay the
Loan. The mandatory repayment of the Loan provided for in this Section 2.5 shall apply only if the
sale of Shares by the ESOP has been approved by a fiduciary who is “independent,” within the meaning of Department of Labor Prop. Reg. Sec.
2510.3-18(b)(3)(ii)(B)(1).

                    (b) Due
on Liquidation – In the event of a liquidation, dissolution or winding up of
the Company, either voluntary or involuntary, the ESOP shall apply the proceeds attributable to any
Shares then remaining subject to pledge under Article 5 to the extent necessary to repay the Loan.

-4-

 

Exhibit 10.62

ARTICLE 3

               Representations and Warranties of the ESOP

               The ESOP, as of the date hereof, represents and warrants as follows:

               3.1 Authorizations. This Agreement has been duly authorized by all necessary action
on the part of the ESOP. This Agreement has been duly executed and delivered by the ESOP and
constitutes a legal, valid and binding obligation of the ESOP, enforceable in accordance with its
terms, subject to bankruptcy, insolvency, reorganization and other similar laws affecting
creditors’ rights generally and subject, as to enforceability, to general equitable principles
(regardless of whether enforcement is sought in a proceeding in equity or at law).

               3.2 Compliance with Obligations and Laws. Neither the execution and delivery by the
ESOP of this Agreement, nor the consummation of the transactions contemplated hereby, nor
compliance by the ESOP with its obligations hereunder, will conflict with, or result in a breach or
violation of, or constitute a default under, any provision of the ESOP or any law, rule,
regulation, order, injunction or decree of any court, administrative authority or arbitrator
applicable to the ESOP.

ARTICLE 4

Representations and Warranties of the Company

-5-

 

Exhibit 10.62

               The Company, as of the date hereof, hereby represents and warrants as follows:

               4.1 Corporate Authority. It has all requisite corporate power and authority to
execute, deliver and perform its obligations under this Agreement. The Company has taken all
corporate action to authorize the Loan and the execution of this Agreement by the Company. This
Agreement has been duly executed and delivered by the Company.

               4.2 ESOP Adoption. The ESOP is an “employee stock ownership plan” (as such term is
defined in Section 4975(e)(7) of the Code) duly established by the Company, and the Trustee has
been duly appointed by the Company and has all requisite power and authority to execute, deliver
and perform its obligations under this Agreement.

               4.3 Compliance with Laws and Obligations. Neither the execution of this Agreement by
the Company nor the fulfillment of any of the Company’s obligations under this Agreement will, to
the Company’s knowledge, conflict with, or result in a breach or violation of, or constitute a
default under any law, rule, regulation, order or injunction binding on the Company, or any other
obligation, loan, contract or agreement of the Company.

               4.4 Representations and Warranties under Fleet Loan Agreement and Churchill Agreement.
Each of the representations and warranties in Section 7.1 of the Fleet Loan Agreement with respect
to the Company, and each of the representations and warranties in Section 4 of the Churchill
Agreement with respect to the Company, is hereby incorporated mutatis mutandis
(without regard to any waiver or amendment thereto from the form of the Fleet Loan Agreement and the Churchill Agreement in the form existing on the date
most recently delivered to the ESOP (whether or not executed or delivered), other than those
waivers and amendments of which the ESOP has been advised a reasonable time prior to the closing of
the purchase of the Shares and that are subsequently confirmed to the ESOP in writing).

               4.5 Governmental Consent. No approval, consent or withholding of objection on the
part of any regulatory body, state, Federal or local, is necessary in connection with the execution
and delivery by the

-6-

 

Exhibit 10.62

Company of this Agreement or the issuance, sale or delivery of the Shares or
compliance by the Company with any of the provisions of this Agreement.

ARTICLE 5

Pledge of Shares

               5.1 Pledge. The Shares are hereby pledged by the ESOP to the Company as collateral
for the Loan, and the ESOP hereby grants to the Company a security interest in the Shares, all free
and clear of any other pledge, security interest, lien or encumbrance. So long as there is no
Event of Default, the ESOP shall receive all dividends paid with respect to the Shares and exercise
all voting rights with respect to the Shares, subject to the applicable provisions of the ESOP.

               5.2 Release of Shares from Pledge. As of each date that a payment of principal is
made under the Loan, a number of the Shares shall be released from pledge hereunder. The number of
Shares to be so released shall be calculated by multiplying the number of Shares held by the
Company under the pledge (immediately before the release) by a fraction. The numerator of the
fraction shall be the amount of the principal payment being made on that date. The denominator of
the fraction shall be the sum of the numerator plus the remaining outstanding principal balance
under the Loan. If at any time the ESOP fails to meet the requirements of Treasury Regulation
Section 54.4975-7(b)(8)(ii), thereafter, the number of Shares released from pledge hereunder and delivered by the Company to the ESOP shall be calculated in
accordance with the Principal/Interest Method set forth in Section 6(c)(1) of the ESOP.

               5.3 Default. In the event of a failure of the ESOP to make any payment of principal
or interest due under the Loan after receipt by the ESOP from the Company of cash contributions and
cash dividends sufficient to make such payment, the Company may notify the ESOP that an Event of
Default has occurred. If such an Event of Default shall occur and be continuing for a period of
thirty days following receipt of such notice, the Company shall then have the right to transfer
ownership of the Shares that remain subject to the pledge under Section 5.1 out of

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Exhibit 10.62

the name of the
ESOP and may apply the value thereof toward the payment of the ESOP’s obligations hereunder;
provided, however, that (a) the fair market value of the Shares to be so applied in satisfaction of
the Loan shall not exceed the amount (of principal and interest) then in default (without
acceleration), and (b) such Shares shall be so transferred only upon and to the extent of the
failure of the ESOP to make timely payments as required under Article 2.

ARTICLE 6

Special Put Option Price

               6.1 Duration. If an ESOP participant or beneficiary is entitled to receive a
distribution from the ESOP prior to the date the Shares convert into Series A Common Stock under
the terms of the Amended and Restated Articles of Incorporation of the Company (as in effect on the
date of this Agreement), such distribution must be made in the form of Shares (and not in cash) if
the then Fair Market Value (as defined in the ESOP) of the Shares is less than the Liquidation
Preference, as defined in Section 3.1(b) of the Amended and Restated Articles of Incorporation of
the Company (as in effect on the date of this Agreement).

               6.2 Put Option Under The ESOP. If an ESOP participant or beneficiary exercises the
put option granted to him under Section 14(b) of the ESOP with respect to Shares distributed under the circumstances described in Section 6.1, the Company will
purchase such Shares at a per share price equal to the Liquidation Preference.

ARTICLE 7

Miscellaneous

               7.1 Amendments, Waivers and Modifications. No amendment, waiver, or modification of
any provision of this Agreement shall be effective unless set forth in an instrument in writing
signed by both parties to this Agreement.

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Exhibit 10.62

               7.2 No Waiver. No delay or failure of the Company or the ESOP in exercising any
right, power or privilege hereunder shall affect such right, power or privilege; nor shall any
single or partial exercise thereof nor any abandonment or discontinuance of steps to enforce such a
right, power or privilege preclude any further exercise thereof or any other right, power or
privilege of the Company or the ESOP. The rights and remedies of the Company and the ESOP
hereunder are cumulative and not exclusive. Any waiver, permit, consent or approval of any kind by
the Company or the ESOP of any breach or default hereunder, or any such waiver of any provisions or
conditions hereof, must be in writing and shall be effective only to the extent set forth in such
writing.

               7.3 Survival of Covenants, Etc.; Successors and Assigns. So long as any
amount shall be outstanding under the Loan, all covenants, agreements, representations and
warranties made by the Company and the ESOP in this Agreement and in any certificate or other
document delivered pursuant hereto shall inure to the benefit of the Company or the ESOP, as the
case may be, and shall be binding upon any successors and assigns of the Company or the ESOP, as
the case may be.

               7.4 Communications. All notices and other communications which are required or may
be given hereunder shall be in writing, shall be effective upon receipt and shall be deemed to have
been duly given if delivered personally or sent by cable, telegram, telex or facsimile or by
registered or certified mail, postage prepaid, sent to the following addresses:

	 	 	 	 	 
	If to the Company:	 	          Meade Instruments Corp.
	

	 	 	 	16542 Millikan Avenue
	

	 	 	 	Irvine, California 92714
	 
	 	 	 	 
	

	 	 	 	Attn: Chief Financial Officer
	 
	 	 	 	 
	If to the ESOP:	 	Wells Fargo Bank, N.A.,
	

	 	 	 	As Trustee of the
	

	 	 	 	Meade Instruments Corp. Employee
	

	 	 	 	 Stock Ownership Plan and Trust
	

	 	 	 	707 Wilshire Boulevard
	

	 	 	 	Los Angeles, California 90017
	 
	 	 	 	 
	

	 	 	 	Attn: Ms. Elyse Weise
	

	 	 	 	     Vice President and Manager
	 
	with a copy to:Administrative Committee of the
	

	 	 	 	     Meade Instruments Corp.

-9-

 

Exhibit 10.62

	 	 	 	 	 
	

	 	 	 	Employee Stock Ownership Plan
	 	 	16542 Millikan Avenue

	 	 	Irvine, California 92714
	 
	 	 	 	 
	 	 	Attn: Committee Chairman

Such addresses may be changed from time to time by notice to the ESOP, in the case of the Company,
and by notice to the Company, in the case of the ESOP.

               7.5 Capacity. The Trustee is executing this Agreement solely in its capacity as
trustee of the ESOP, and not in either its corporate or individual capacity.

               7.6 Entire Agreement. This Agreement constitutes the entire agreement between the
parties hereto with respect to the Loan.

               7.7 Governing Law. This Agreement shall be governed by, and interpreted in
accordance with, the substantive laws of the State of California, except as preempted by ERISA.

               7.8 Compliance with Applicable Law. It is intended that the loan and the pledge of
the Shares contemplated hereunder, including all terms and provisions of this Agreement and the
Secured Promissory Note, shall qualify for exemption under Section 4975(d)(3) of the Code from
being a prohibited transaction under Section 4975(c) of the Code, and shall qualify for exemption
under Section 408(b)(3) of ERISA from being a prohibited transaction under Section 406 of ERISA.
Notwithstanding anything herein or in any of the aforementioned documents to the contrary, (i)
neither the Company nor the ESOP shall take any action or fail to take any action the result of
which would cause any portion or all of the transaction contemplated hereby to be a prohibited
transaction under Section 4975(c) of the Code or Section 406 of ERISA, (ii) any action in
contravention of this provision shall be null and void and unenforceable, and (iii) in the event
that any portion of the transaction contemplated hereby is determined to be or it appears
reasonably certain to be such a prohibited transaction, the parties shall take such action as shall
be reasonably necessary and appropriate to correct any such prohibited transaction.

               7.9 Headings. The Table of Contents and headings of the Articles and Sections of
this Agreement are inserted for convenience only and shall not be deemed to constitute a part
hereof.

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Exhibit 10.62

               7.10 Counterparts. This Agreement may be executed in one or more counterparts each
of which shall be deemed to constitute an original and shall become effective when one or more
counterparts have been signed by each party hereto and delivered to the other party.

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Exhibit 10.62

               7.11 Severability. The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision hereunder.

     IN WITNESS WHEREOF, the Company and the ESOP have executed this ESOP Loan and Pledge Agreement
as of this 23rd day of April, 1996.

	 	 	 	 	 	 
	 	 	MEADE INSTRUMENTS CORP.
	 
	 	 	 	 
	

	 	By
	 	/s/ STEVEN MURDOCK
	

	 	 	 	 
	

	 	 	 	President
	 
	 	 	 	 
	 	 	MEADE INSTRUMENTS CORP. EMPLOYEE
	 	 	 STOCK OWNERSHIP PLAN AND TRUST
	 
	 	 	 	 
	

	 	By:
	 	Wells Fargo Bank,
	

	 	 	 	   N.A., not in an individual
	

	 	 	 	   or corporate capacity, but
	

	 	 	 	   solely in its capacity
	

	 	 	 	   as            Trustee
	 
	 	 	 	 
	

	 	 	By: 	/s/ ELYSE WEISE
	

	 	 	 	 

-1-

 

Exhibit 10.62

AMENDMENT NO. 1 TO

ESOP LOAN AND PLEDGE AGREEMENT

     THIS AGREEMENT, made this 1st day of May 1997, by and between MEADE INSTRUMENTS
CORP., a Delaware corporation (the “Company”), and the MEADE INSTRUMENTS CORP. EMPLOYEE STOCK
OWNERSHIP PLAN AND TRUST (the “ESOP”).

W I T N E S S E T H:

     WHEREAS, the Company and the ESOP entered into the ESOP Loan and Pledge Agreement dated April
23, 1996 (the “Agreement”);

     WHEREAS, the Company consummated an initial public offering (the “IPO”) of its Common Stock on
April 9, 1997;

     WHEREAS, it is expected that dividends will not be paid by the Company on its Common Stock and
that the maximum allowable contributions by the Company to the ESOP may not be sufficient to
amortize the ESOP Loan as originally scheduled under Section 2.1 of the Agreement; and

     WHEREAS, it is desirable to amend the Agreement to provide for a simplified schedule of annual
payments of principal and interest on the ESOP Loan;

-1-

 

Exhibit 10.62

     NOW, THEREFORE, the parties hereto agree that the Agreement is hereby amended, effective as of
March 1, 1997, by restating Section 2.1(a) and (b) thereof to read as follows:

     Section 2.1 Payments of Principal and Interest.

(a)
Interest – The ESOP shall pay interest (including interest on any overdue
payments) on the unpaid portion of the ESOP Loan not later than April 22nd of each year,
commencing April 22, 1997, until such time as principal has been paid in full.

(b) Principal – The principal balance of $10,005,000 remaining due on the Note as of
April 9, 1997, shall be due and payable in nine consecutive annual installments of
$1,000,000 not later than April 22nd in each of the years 1997-2005, with a final
installment of $1,005,000 due and payable on April 22, 2006.

     IN WITNESS WHEREOF, the Company and the ESOP have executed this Amendment No. 1 this 26th
day of November, 1997.

	 	 	 	 	 	 
	 	 	MEADE INSTRUMENTS CORP.
	 
	 	 	 	 
	

	 	By
	 	/s/ Steven G. Murdock
	

	 	 	 	 
	

	 	 	 	                      President
	 
	 	 	 	 
	 	 	MEADE INSTRUMENTS CORP. EMPLOYEE
	 	 	STOCK OWNERSHIP PLAN AND TRUST
	 
	 	 	 	 
	

	 	By:
	 	Administrative Committee of
	

	 	 	 	  the Meade Instruments Corp.
	

	 	 	 	   Employee Stock Ownership
	

	 	 	 	   Plan
	 
	 	 	 	 
	

	 	 	By 	/s/ Brent W. Christensen
	

	 	 	 	 

-2-

 

Exhibit 10.62

AMENDMENT NO. 2 TO

ESOP LOAN AND PLEDGE AGREEMENT

     THIS AGREEMENT, made as of the 31st of December, 1998, by and between MEADE
INSTRUMENTS CORP., a Delaware corporation (the “Company”), and the MEADE INSTRUMENTS CORP. EMPLOYEE
STOCK OWNERSHIP PLAN AND TRUST (the “ESOP”).

W I T N E S S E T H:

     WHEREAS, the Company and the ESOP entered into the ESOP Loan and Pledge Agreement dated April
23, 1996 (the “Agreement”), and the Agreement was subsequently amended on May 1, 1997, in
connection with the initial public offering of Common Stock of the Company;

     WHEREAS, the Trustee of the ESOP has independently determined that the extension of the ESOP
Loan maturity date until March 1, 2016, as proposed by the Company, is in the best interests of the
ESOP participants, is primarily for the benefit of the ESOP participants, and complies with the
applicable requirements of the Employee Retirement Income Security Act of 1974, as amended; and

     WHEREAS, the Company and the Trustee of the ESOP have agreed to the proposed extension of the
maturity date of the ESOP Loan until March 1, 2016, and it is necessary to

-1-

 

Exhibit 10.62

amend the Agreement in order to change the amortization schedule under the ESOP Loan to
reflect the extension of the maturity date;

     NOW, THEREFORE, the parties hereto agree that the Agreement is hereby further amended,
effective as of December 31, 1998, as follows:

     1. Section 1.3 is amended by adding the following new sentence at the end thereof:

As of
December 31, 1998, such note is to be canceled, with a restated secured promissory note to be issued in the remaining principal amount of $8,005,000.

     2. Section 2.1(a) and (b) are restated to read as follows:

Section 2.1 Payments of Principal and Interest.

               (a)
Interest – The ESOP shall pay interest (including interest on any
overdue payments) on the unpaid portion of the ESOP Loan not later than March
1st of each year, commencing March 1, 1999, until such time as principal
has been paid in full.

               (b)
Principal – The principal balance of $8,005,000 remaining due on
the restated Note as of December 31, 1998, shall be due and payable in 18
consecutive annual installments of $444,722.22 not later than March 1st
in each of the years 1999 — 2016.

-2-

 

Exhibit 10.62

     3. Section 5.2 is restated to read as follows:

               5.2 Release of Shares from Pledge. As of each date that a payment of
principal is made under the Loan, a number of Shares shall be released from pledge
hereunder. The number of Shares to be so released shall be calculated by
multiplying the number of Shares held by the Company under the pledge (immediately
before the release) by a fraction. The numerator of the fraction shall be the
amount of principal and/or interest paid on that date. The denominator of the
fraction shall be the sum of the numerator and the remaining payments of principal
and interest projected to be payable on the Loan under Section 2.1.

     IN WITNESS WHEREOF, the Company and the Trustee of the ESOP have executed this Amendment No. 2
this 31st day of December, 1998.

	 	 	 	 	 	 
	 	 	MEADE INSTRUMENTS CORP.
	 
	 	 	 	 
	

	 	By
	 	/s/ Brent W. Christensen
	

	 	 	 	 
	

	 	 	 	Brent W. Christensen, Vice President and
	

	 	 	 	Chief Financial Officer
	 
	 	 	 	 
	 	 	MEADE INSTRUMENTS CORP. EMPLOYEE
	 	 	STOCK OWNERSHIP PLAN AND TRUST
	 
	 	 	 	 
	

	 	By:
	 	Wells Fargo Bank, N.A.,
	

	 	 	 	not in an individual or corporate capacity,
	

	 	 	 	but solely in its capacity as Trustee
	 
	 	 	 	 
	

	 	By
	 	/s/ Ellen L. Yeany
	

	 	 	 	 
	

	 	 	 	Ellen L. Yeany, Vice President
	 
	 	 	 	 
	

	 	By:
	 	/s/ Frances J. Jones
	

	 	 	 	 
	

	 	 	 	Frances J. Jones, Vice President

-3-

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