Document:

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                                RESPIRONICS, INC.
                              NON-EMPLOYEE DIRECTOR
                           DEFERRED COMPENSATION PLAN

Respironics, Inc. (the "Company") hereby establishes this Respironics, Inc.
Non-Employee Director Deferred Compensation Plan (the "Plan"), which permits
non-employee members of the Company's Board of Directors (the "Board") to defer
receipt of all or any portion of the compensation payable to them for services
rendered to the Company as Board members. The Company intends the Plan to be
maintained on an unfunded basis for federal income tax purposes under the
Internal Revenue Code of 1986, as amended ("Code"), and exempt from the
requirements of the Employee Retirement Income Security Act of 1974, as amended
("ERISA"). The Plan shall be effective as of October 1, 2000.

                                    SECTION I
                                   DEFINITIONS

Unless otherwise required by the context, the terms used herein shall have the
meanings as set forth below:

1.1    Account. The term "Account" means the deferred compensation bookkeeping
       account established for a Director under Section 2.4 of the Plan.

1.2    Act. The term "Act" means the Securities Exchange Act of 1934, as
       amended.

1.3    Beneficiary. The term "Beneficiary" means the beneficiary designated in
       writing by a Director to receive any Benefit that may be payable after
       the Director's death. A Director may change a Beneficiary designation
       from time to time by designating a new Beneficiary; provided, that no
       Beneficiary change will be effective until it is provided to the
       Committee and the Committee will accept no Beneficiary change after a
       Director's death. If no Beneficiary has been designated upon a Director's
       death, or if the designated Beneficiary is not then living or is not then
       in existence, the Benefit shall be paid to the individual who is the
       Director's Spouse on the date of the Director's death; provided, that if
       the Director has no Spouse on the date of the Director's death, the
       Benefit shall be paid to the Director's estate. All Beneficiary
       designations shall be made on forms provided by the Committee and in
       accordance with the procedures established by the Committee.

1.4    Benefit. The term "Benefit" means the balance to the credit of a
       Participant's Account (if any) as it may exist from time to time, plus
       accrued interest and dividends, less losses and payments.

1.5    Board. The term "Board" means the Company's Board of Directors.

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1.6    Committee. The term "Committee" means the Compensation Committee of the
       Company's Board.

1.7    Company. The term "Company" means Respironics, Inc., a Delaware
       corporation.

1.8    Company Stock. The term "Company Stock" means shares of common stock of
       the Company.

1.9    Company Stock Account. The term "Company Stock Account" means the
       investment alternative described in Section 3.2(b) that provides for a
       hypothetical investment in shares of Company Stock.

1.10   Compensation. The term "Compensation" means a Director's aggregate
       compensation payable by the Company for services rendered as a Director,
       including the annual base retainer and attendance fees for Board and
       committee meetings, but excluding any travel expense allowances, other
       expense reimbursements, or any non-cash compensation.

1.11   Deferral. The term "Deferral" means that portion of a Director's
       Compensation that a Director elects to defer under the Plan.

1.12   Director. The term "Director" means a non-employee member of the
       Company's Board of Directors.

1.13   Fair Market Value. The term "Fair Market Value" means the Fair Market
       Value of Company Stock between the following prices, as applicable, for
       the date as of which Fair Market Value is to be determined as quoted in
       The Wall Street Journal (or in such other reliable publication as the
       Committee, in its discretion, may determine to rely upon): (i) if the
       Company Stock is listed on the New York Stock Exchange, the highest and
       lowest sales prices per share of the Company Stock as quoted in the
       NYSE-Composite Transactions listing for such date; (ii) if the Company
       Stock is not listed on such exchange, the highest and lowest sales prices
       per share of Company Stock for such date on (or on any composite index
       including) the principal United States securities exchange registered
       under the 1934 Act on which the Company Stock is listed; or (iii) if the
       Company Stock is not listed on any such exchange, the highest and lowest
       sales prices per share of the Company Stock for such date on the National
       Association of Securities Dealers Automated Quotations System or any
       successor system then in use ("NASDAQ"). If there are no such sale price
       quotations for the date as of which Fair Market Value is to be determined
       but there are such sale price quotations within a reasonable period both
       before and after such date, then Fair Market Value shall be determined by
       taking a weighted average of the means between the highest and lowest
       sales prices per share of the Company Stock as so quoted on the nearest
       date before and the nearest date after the date as of which fair market
       value is to be determined. The average should be weighted inversely by
       the respective numbers of trading days between

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       the selling dates and the date as of which Fair Market Value is to be
       determined. If there are no such sale price quotations on or within a
       reasonable period both before and after the date as of which fair market
       value is to be determined, then Fair Market Value of the Company Stock
       shall be the mean between the bona fide bid and asked prices per share of
       Company Stock as so quoted for such date on NASDAQ, or if none, the
       weighted average of the means between such bona fide bid and asked prices
       on the nearest trading date before and the nearest trading date after the
       date as of which Fair Market Value is to be determined, if both such
       dates are within a reasonable period. The average is to be determined in
       the manner described above in this Section 1.13. If the Fair Market Value
       of the Company Stock cannot be determined on the basis previously set
       forth in this Section 1.13 on the date as of which Fair Market Value is
       to be determined, the Committee shall in good faith determine the fair
       market value of the Company Stock on such date. Fair Market Value shall
       be determined without regard to any restriction other than a restriction
       which, by its terms, will never lapse.

1.14   Mutual Fund Account. The term "Mutual Fund Account" means the investment
       alternative described in Section 3.2(a) that provides for a hypothetical
       investment in various mutual funds that are made available under the
       Plan.

1.15   Participant. The term "Participant" means a Director who has elected to
       make Deferrals under the Plan.

1.16   Plan. The term "Plan" means the Respironics, Inc. Non-Employee Director
       Deferred Compensation Plan, as it may be amended from time to time.

1.17   Plan Year. The term "Plan Year" means the calendar year, except that with
       respect to the first Plan Year, the Plan Year shall commence October 1,
       2000 and end December 31, 2000.

1.18   Severance From Service. The term "Severance from Service" means the date
       on which a Participant ceases to be a Director of the Company for any
       reason, including voluntary or involuntary termination of service, death,
       or total and permanent disability.

1.19   Spouse. The term "Spouse" means the person to whom the Participant is
       legally married as of the date of determination.

1.20   Unforeseeable Emergency. The term "Unforeseeable Emergency" means a
       severe financial hardship to the Participant resulting from a sudden and
       unexpected illness or accident of the Participant or of a dependent of
       the Participant, loss of the Participant's property due to casualty, or
       other similar extraordinary and unforeseeable circumstances arising as a
       result of events beyond the control of the Participant; provided, that
       such financial hardship or loss cannot be replaced through other means
       (including, without limitation, reimbursement through insurance, use of
       personal savings or borrowing from a

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       commercial lender). The Committee shall make all determinations as to
       whether a particular set of factual circumstances constitutes an
       Unforeseeable Emergency.

                                   SECTION II
                       ELIGIBILITY AND DEFERRAL ELECTIONS

2.1    Eligibility. A Director shall be eligible to make Deferral elections
       under this Plan as long as he or she remains a Director of the Company.
       Participation in the Plan by an eligible Director is voluntary.

2.2    Deferral Election. A Participant may elect to defer under the Plan (in
       whole percentages) no less than 25% and no more than 100% of his or her
       Compensation for a particular Plan Year. Each Deferral election shall be
       made during the December of a Plan Year immediately prior to the Plan
       Year to which the election relates. Deferral elections for the first Plan
       Year shall be made during October 2000. A Director who first becomes a
       Director after the effective date of the Plan must complete a Deferral
       election within 30 days of becoming a Director. A Director's Deferral
       election shall also specify the Director's investment directions. To make
       a Deferral election under the Plan, a Director must complete such
       election form(s) as may be required by the Committee and must comply with
       such procedures established by the Committee. Except as otherwise
       permitted under Section 2.3, a Director may not modify, suspend or
       terminate a Deferral election.

2.3    Change of Deferral Election. Any Deferral election made by a Participant
       under Section 2.2 above will remain in effect for the entire Plan Year to
       which the election relates and for all future Plan Years unless the
       Participant submits a new Deferral election to prospectively increase,
       decrease or suspend the Deferrals under the Plan for future Plan Years.
       Any new Deferral election must be made on or before the December 31st
       immediately prior to the Plan Year to which the new election relates and
       must be made in accordance with the Deferral election requirements set
       forth in Section 2.2 above.

2.4    Crediting of Deferrals to Account. Any Deferrals elected by a Participant
       under this Article II shall be credited to the Participant's Account
       under the Plan. Deferrals shall be credited to the Participant's Account
       at the time the Company otherwise would have paid the Deferrals to the
       Participant as Compensation.

2.5    Non-Deferred Compensation. Any Compensation earned by a Director that is
       not deferred under the Plan shall be paid to the Director in accordance
       with normal Company policy.

                                   SECTION III

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                                   INVESTMENT

3.1    Investment Elections for Deferrals. At the same time that a Participant
       makes a Deferral election under the Plan, the Participant shall elect the
       manner in which the Director's Deferrals will be invested under the Plan.
       The Participant shall elect among the hypothetical investment
       alternatives made available under the Plan as described in Section 3.2
       below. The Participant may change and/or make new investment elections in
       accordance with the procedures established by the Committee. All
       investment elections and investment change elections shall be made in
       accordance with the procedures established by the Committee and, if
       applicable, shall comply with any "insider" trading policies adopted by
       the Company and Rule 16b-3 of the Act as described in Section 8.2 below.

3.2    Available Investment Alternatives. A Participant may elect to invest all
       or a portion of his or her Deferrals in the following types of
       hypothetical investment alternatives, to the extent the Committee makes
       such investment alternatives available under the Plan:

       (a)   Mutual Fund Account Investment Alternative. The Committee may make
             a Mutual Fund Account investment alternative available under the
             Plan. The Deferrals that a Participant elects to invest in the
             Mutual Fund Account shall be adjusted for investment experience
             (either gains or losses) in a manner that equals the investment
             experience attributable to the one or more mutual funds offered by
             the Committee under the Plan. Participants who elect the Mutual
             Fund Account investment alternative for all or a portion of their
             Account shall elect among the mutual funds that are listed in
             Appendix A (as may be amended by the Committee from time to time).
             Any Deferrals that a Participant elects to invest in the Mutual
             Fund Account shall begin accruing investment experience at the time
             the Deferrals are transferred to the Participant's Account or on
             such other date as may be determined by the Committee. When
             Deferrals are transferred out of the Mutual Fund Account, the
             Deferrals shall stop accruing investment experience under the
             Mutual Fund Account as of the effective date of such transfer.

       (b)   Company Stock Fund Investment Alternative. The Committee may make a
             Company Stock Fund investment alternative available under the Plan.
             The Deferrals that a Participant elects to invest in the Company
             Stock Fund shall be converted into a hypothetical number of shares
             of Company Stock by dividing the applicable amount of Deferrals by
             the Fair Market Value of the Company Stock on the date the
             Deferrals are transferred to the Participant's Account or on such
             other date as may be determined by the Committee. As of the date
             that dividends (if any) are declared on outstanding shares of
             Company Stock (or on such later date as may be determined by the
             Committee), the Company shall credit a Participant's Company Stock
             Fund with additional hypothetical shares of Company Stock in an
             amount equal to the "dividend amount." The "dividend

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             amount" is the amount of dividends declared on the hypothetical
             shares of Company Stock in a Participant's Account divided by the
             Fair Market Value of the Company stock on the date dividends are
             declared or on such other date as may be determined by the
             Committee. When Deferrals are transferred out of the Company Stock
             Fund, the Deferrals will be converted to a cash equivalent based
             upon the Fair Market Value of the Company Stock on the effective
             date of such transfer.

                                   SECTION IV
                             PAYMENT OF PLAN BENEFIT

4.1    Benefit Payment Election. Except as otherwise provided in this Article
       IV, a Participant may elect to have any portion of his Benefit
       distributed to him at any time. The Participant's election shall specify
       one of the available payment forms and payment options as may be
       permitted under this Article IV. All payment elections for a
       Participant's Benefit shall be subject to the terms of the Plan and the
       procedures established by the Committee and all Benefits paid under the
       Plan shall be subject to any applicable federal, state or local taxes and
       related withholding requirements.

4.2    Timing of Benefit Payment. A Participant's Benefit shall start being paid
       at the time set forth in the Participant's Benefit payment election;
       provided, that a Benefit payment election shall not provide for the
       payment of any portion of the Participant's Benefit before the January 1
       of the second Plan Year following the Plan Year in which the Benefit
       payment election is made; provided, further, that the Committee, in its
       sole discretion, may permit payment at an earlier date. Notwithstanding
       the foregoing, upon a Severance from Service, the Participant's Benefit
       (to the extent any portion has not yet been paid to the Participant)
       shall be paid to the Participant immediately in the form of a lump sum as
       described in Section 4.4(a) below.

4.3    Form of Payment. The portion of a Participant's Benefit that is paid from
       the Mutual Fund Account shall be paid in cash. A Participant may elect to
       have the portion of the Participant's Benefit that is paid from the
       Company Stock Fund paid in the form of cash or shares of Company Stock;
       provided, that if a Participant's interest in the Company Stock Fund is
       paid in cash, the Participant's Benefit payment election shall comply
       with Rule 16b-3 of the Act as described in Section 8.2 below. Any
       fractional shares of Company Stock shall be paid to the Participant in
       cash.

4.4    Available Payment Options. Except as otherwise provided in this Article
       IV, a Participant may elect to have his or her Benefit paid in one of the
       options specified below:

       (a)   Lump Sum Payment. A Participant may elect a lump sum payment of his
             or her Benefit as of a specified date.

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       (b)   Installment Payments. A Participant may elect annual installment
             payments over a fixed period of 5 years with installment payments
             starting as of a specified date. If a Participant elects this
             installment form of payment, the amount of each installment payment
             shall be determined by dividing the Participant's Benefit as of the
             last business day preceding the payment day (or such other date as
             determined by the Committee) by the number of remaining installment
             payments. The value of the Benefit paid under one of these payment
             options shall be determined as of the last business day preceding
             the payment day or such other date as may be determined by the
             Committee.

4.5    Death of Participant. In the event a Participant dies before all or a
       portion of the Participant's Benefit has been paid, the remaining portion
       of the Participant's benefit shall be paid to the Participant's
       Beneficiary in a lump sum as described in Section 4.4(a) above.

4.6    Unforeseeable Emergency. In the event that a Participant experiences an
       Unforeseeable Emergency, the Participant may submit a written request to
       the Committee requesting payment of all or a portion of his then Benefit
       in the form of a lump sum payment as described in Section 4.4(a) above. A
       Participant's request shall be accompanied by relevant evidence verifying
       the existence of the Unforeseeable Emergency. If the Committee determines
       that a Participant did experience an Unforeseeable Emergency and approves
       the Participant's request, the Committee shall permit the distribution of
       such portion of the Participant's Benefit (up to 100%) that is necessary
       to meet the Unforeseeable Emergency. No request for a payment on account
       of an Unforeseeable Emergency shall obligate the Committee to grant the
       request and all payment requests shall comply with all applicable
       requirements of Rule 16b-3 of the Act and the procedures established by
       the Committee.

                                    SECTION V
                                 FUNDING STATUS

Benefits payable under the Plan shall be paid exclusively from the general
assets of the Company and the rights of Participants and Beneficiaries under the
Plan shall be those of a general creditor of the Company. No Participant or
other person shall have any right or claim to the payment of a Benefit that is
in any manner superior or different from the right or claim of a general and
unsecured creditor of the Company. The Company shall not be required to
establish any special or separate fund or to make any other segregation of
assets to assure the payment of any Benefits under the Plan.

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                                   SECTION VI
                               PLAN ADMINISTRATION

6.1    General Administrative Authority. The Plan shall be administered by the
       Committee, which shall have the full discretionary power and authority to
       administer the Plan, including without limitation, the power and
       authority to: (i) construe the Plan's terms; (ii) make factual
       determinations; (iii) prepare forms to be used for making elections under
       the Plan; (iv) establish rules and procedures for administering and
       operating the Plan; (v) evaluate requests made by Participants; (vi)
       correct defects under the Plan; (viii) establish rules and procedures to
       govern Committee meetings and the manner in which decisions are made by
       the Committee; (ix) retain such legal, actuarial, accounting, clerical
       and other services as may be necessary to operate and administer the
       Plan; (x) establish record-keeping procedures for the Plan; and (xi) take
       any and all similar actions to the extent necessary to administer the
       Plan. The Committee may delegate all or some of its authority under the
       Plan to any other person or entity. Any findings or determinations made
       by the Committee in the administration of the Plan shall be final,
       conclusive and binding on all parties.

6.2    Indemnification. No member of the Committee shall be personally liable by
       virtue of any instrument executed by the member, or on the member's
       behalf, as a member of the Committee unless the execution of such
       instrument is judicially determined to be a breach of that person's
       responsibility as a fiduciary with respect to the Plan under any
       applicable law. Neither the Company nor any of its officers or directors,
       nor any member of the Committee, shall be personally liable for any
       action or inaction with respect to any duty or responsibility imposed
       upon such person by the terms of the Plan unless such action or inaction
       is judicially determined to be a breach of that person's responsibility
       as a fiduciary with respect to the Plan under any applicable law. The
       Company shall indemnify and hold harmless its officers, directors, and
       each member of the Committee against any and all claims, losses, damages,
       expenses (including attorneys' fees), and liability (including, in each
       case, amounts paid in settlement), arising from any action or failure to
       act, except when the same is judicially determined to be due to the gross
       negligence or willful misconduct of such officer, director or member of
       the Committee. The foregoing right of indemnification shall be in
       addition to any other rights to which any such person may be entitled as
       a matter of law.

                                   SECTION VII
                            AMENDMENT AND TERMINATION

The Board reserves the right to amend or terminate the Plan at any time. Any
such termination or modification shall take effect as of the effective date
determined by the Board. The Board shall promptly notify all Participants of any
such amendment or termination of the Plan. An amendment or termination may
affect Participants, regardless of whether they are past, current or

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future Participants; provided, however, that any such amendment or termination
shall not eliminate or reduce the Benefit of any Participant.

                                  SECTION VIII
                            MISCELLANEOUS PROVISIONS

8.1    No Retention Guarantee. Nothing contained herein shall be deemed to give
       any Director the right to be retained in the service of the Company.

8.2    Restrictions on Transfers and Distributions. If a Director is an
       "insider" subject to Section 16 of the Act, the Plan shall be
       administered in accordance with Rule 16b-3 of the Act, as it applies to
       the Director. If required to comply with Rule 16b-3 of the Act:

       (a)   A Director's election to transfer Deferrals from the Company Stock
             Account to the Mutual Fund Account must be made at least 6 months
             after the Director last elected to transfer Deferrals from the
             Mutual Fund Account to the Company Stock Account.

       (b)   A Director's election to transfer Deferrals from the Mutual Fund
             Account to the Company Stock Account must be made at least 6 months
             after the Director last elected to transfer Deferrals from the
             Company Stock Account to the Mutual Fund Account or to receive a
             cash distribution from the Company Stock Account.

       (c)   If a Director's Benefit from the Company Stock Account is to be
             paid in cash, the Director's election to receive cash must be made
             at least 6 months after the Director's most recent election to
             transfer Deferrals into the Company Stock Account.

8.3    No Assignment of Interest. It is a condition of this Plan that no right
       or interest of any Participant under this Plan or in his or her credited
       Deferrals (and any credited gains or losses attributable thereto) shall
       be assignable or transferable in whole or in part, either directly or by
       operation of law or otherwise, including but without limitation,
       execution, levy, garnishment, attachment, pledge, bankruptcy, or in any
       other manner, subject, however, to applicable law, but excluding
       devolution by death or mental incompetency, and no right or interest of
       any Participant under this Plan or in his or her credited Deferrals (and
       any credited gains or losses attributable thereto) shall be liable for or
       subject to any obligation or liability of such Participant, subject,
       however, to applicable law.

8.4    Successor Employer. The sale of all of the assets of the Company, or a
       merger, consolidation or reorganization of the Company wherein the
       Company is not the surviving corporation, or any other transaction which,
       in effect, amounts to a sale of the

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       Company or voting control thereof, shall not terminate this Plan or any
       related agreements and the obligations created hereunder shall be binding
       upon the successors and assigns of the Company.

8.5    Changes in Company Stock. If there is any change in the number or kind of
       shares of Company Stock outstanding: (i) by reason of a stock dividend,
       spin-off, re-capitalization, stock split, or combination or exchange of
       shares; (ii) by reason of a merger, reorganization or consolidation in
       which the Company is the surviving corporation; (iii) by reason of a
       reclassification or change in par value; or (iv) by reason of any other
       extraordinary or unusual event affecting the outstanding Company Stock as
       a class without the Company's receipt of consideration, or if the value
       of outstanding shares of Company Stock is substantially reduced as a
       result of a spin-off or the Company's payment of an extraordinary
       dividend or distribution, the number and kind of shares credited to the
       Company Stock Account under the Plan (and the price of such shares) shall
       be proportionately adjusted by the Committee to reflect any increase or
       decrease in the number or kind of issued shares of Company Stock to
       preclude the enlargement or dilution of benefits under the Plan. The
       adjustments determined by the Committee shall be final, binding and
       conclusive.

8.6    Incapacity of the Recipient. If a Participant or Beneficiary entitled to
       receive any benefits under the Plan is deemed by the Committee or is
       adjudged to be legally incapable of giving valid receipt and discharge
       for such benefits, the benefits will be paid to such persons as the
       Committee might designate or to the duly appointed guardian.

8.7    Governing Law. This Plan shall be governed by and construed in accordance
       with the laws of the Commonwealth of Pennsylvania, notwithstanding the
       conflict of law rules applicable therein.

                               * * * * * * * * * *

             IN WITNESS WHEREOF, and as evidence of its adoption of this Plan ,
the Company has caused the same to be executed by its duly authorized officers
and its corporate seal to be affixed hereto as of this 3rd day of October, 2000.

Attest:                                  RESPIRONICS, INC.

By: /s/ Dorita Pishko                   By: /s/ Daniel J. Bevevino
   --------------------------               -----------------------------------

Title: Secretary                         Title: Vice President & Chief
      -----------------------                  --------------------------------
                                                Financial Officer
                                               --------------------------------

                                       10<PAGE>

                                                                    Exhibit 10.5

                        The Ashton Technology Group, Inc.
                                 11 Penn Center
                          1835 Market Street, Suite 420
                             Philadelphia, PA 19103

April 29, 2002

VIA:  E-Mail

Mr. Mathew Saltzman

Dear Matt:

     Reference is made to that certain Memorandum of Understanding regarding
proposed Settlement between The Ashton Technology Group, Inc. ("Ashton") and
Matthew Saltzman ("Saltzman") signed and acknowledged January 31, 2002 (the
"Original Memorandum"). Reference is also made to that certain Memorandum of
Understanding regarding proposed Settlement between Ashton and Saltzman signed
and acknowledged March 18, 2002 (the "Second Memorandum"). Reference is finally
made to that certain Agreement regarding proposed Settlement between Ashton and
Saltzman that I attach herewith to be signed and dated by you (the "Final
Agreement").

     By signing the Final Agreement and below, you, Matt, hereby acknowledge and
agree that: (i) the Final Agreement documents the terms of the settlement
between Ashton and Saltzman; (ii) the Final Agreement supersedes the Original
and Second Memoranda and neither memorandum is of further force or effect, and
(iii) that Saltzman has received the Immediate Cash Compensation of $50,000
articulated in the Final Agreement.

                                            Sincerely,

                                               /s/ William W. Uchimoto

                                            William W. Uchimoto
                                            Executive Vice President
                                            and General Counsel

Acknowledged and Agreed to
this 29th day of April, 2002

 /s/ Matthew Saltmzan
-------------------------
Matthew Saltzman

Attachment

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Company:               The Ashton Technology Group, Inc. ("Ashton" or the
                       "Company")
--------------------------------------------------------------------------------

Investor:              Matthew Saltzman ("Saltzman" or the "Investor")
--------------------------------------------------------------------------------

Consideration:         In consideration of execution of a release and waiver of
                       all claims against the Company or any of its subsidiaries
                       or affiliates, including, without limitation, claims in
                       connection with the action captioned MATTHEW SALTZMAN and
                       THE ASHTON TECHNOLOGY GROUP, INC. re 13 116 004731 before
                       the American Arbitration Association (the "Arbitration"),
                       Saltzman shall receive the following (collectively
                       referred to as "Consideration"):
--------------------------------------------------------------------------------

Immediate Cash         Ashton has paid $50,000 (the "Immediate Cash
Compensation:          Compensation") by wire transfer of immediately
                       available funds to an account designated by Saltzman.
--------------------------------------------------------------------------------

Cash Compensation:     Ashton shall pay $100,000 (the "Cash Compensation") by
                       wire transfer of immediately available funds to an
                       account designated by Saltzman, on the day of the closing
                       of the purchase by OTSH, Inc., a Delaware corporation
                       ("OTSH") of more than fifty-one percent (51%) of the
                       Company pursuant to a definitive stock purchase agreement
                       between OTSH and the Company (the "Ashton Transaction").
--------------------------------------------------------------------------------

Deferred Cash          Ashton shall pay an additional $50,000 (the "Deferred
Compensation:          Cash") by wire transfer of immediately available funds
                       to an account designated by Saltzman, on or before the
                       one-year anniversary of the closing of the Ashton
                       Transaction, together with interest accruing from
                       January 30, 2002 at an annual rate of 9.00%.
--------------------------------------------------------------------------------

Restricted Stock:      For $1 paid by Saltzman to Ashton, Ashton shall deliver
                       400,000 unregistered shares of common stock, par value
                       $.01 per share, of the Company with piggyback
                       registration rights (the "Restricted Stock"), delivered
                       to Saltzman within ten business days of the closing of
                       the Ashton Transaction, subject to the negotiation and
                       execution of a commercially reasonable definitive stock
                       purchase or subscription agreement between Saltzman and
                       the Company.
--------------------------------------------------------------------------------

EMC Assurances:        Ashton, as controlling shareholder of eMC, shall assist
                       Saltzman in securing and/or receiving the assignment of
                       all right, title and interest in the contract rights
                       possessed by eMC in the Professional Services and License
                       Agreement with Qinsight Group, dated February 12, 2001.
                       Ashton also shall authorize Saltzman to negotiate
                       directly with LeMaster & Ware for acquiring rights
                       derived from the software developed by TeamVest pursuant
                       to an Operating Agreement among TeamVest, eMC and
                       e-Trustco, dated August 9, 2000, which Ashton and eMC
                       shall transfer to Saltzman.
--------------------------------------------------------------------------------

Potential Business     In addition, following the closing of the Ashton
Arrangement:           Transaction, the Company and Saltzman shall conduct
                       good faith discussions regarding opportunities to
                       establish a new business agreement by and between Ashton
                       and Saltzman with regards to facilitating VWAP trades for
                       Saltzman's clients on mutually acceptable terms and
                       conditions.
--------------------------------------------------------------------------------

EMC Shares Transfer:   In exchange for paying the Immediate Cash Compensation,
                       Cash Compensation, and Deferred Cash Compensation
                       ("Payments") to Saltzman, Saltzman shall transfer his
                       right, title and interest in all eMC shares that he owns
                       as of April 29, 2002 to Ashton after all the Payments are
                       made by Ashton to Saltzman. Additionally, as further
                       consideration to Ashton for such Payments, Saltzman's
                       options, if any, that he holds as of April 29, 2002
                       whereby Ashton and/or any Ashton affiliate company's
                       common shares are the underlying security shall be
                       automatically terminated and cancelled as of the close of
                       the Ashton Transaction.
--------------------------------------------------------------------------------

<PAGE>

<TABLE>
<CAPTION>
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<S>                          <C>
Release & Waiver:            In exchange for delivering the Restricted Stock, EMC Assurances, and Potential
                             Business Arrangement Consideration, Ashton has received from Saltzman with the
                             execution and delivery of this Memorandum of Understanding, an executed release
                             and waiver of all claims against the Company or any of its subsidiaries or
                             affiliates, including, without limitation, claims in connection with the
                             Arbitration.  This would constitute full settlement with regards to the
                             Investor's prior, existing and potential claims, if any, against Ashton.  If the
                             Company breaches any of its obligations under these terms for settlement, the
                             release and waiver shall be null and void and Saltzman shall retain all his
                             rights and remedies with regard to his claims in connection with the Arbitration,
                             including the right to collect all attorneys fees Saltzman incurs in enforcing
                             his rights hereunder.  Each of Saltzman and the Company shall, at its own
                             expense, execute, acknowledge, deliver and cause to be duly filed all such
                             further instruments and documents and take all such actions as the parties may
                             from time to time reasonably request to facilitate the transactions contemplated
                             herein.
-------------------------------------------------------------------------------------------------------------------

Confidentiality/             The Company and Investor agree not to disclose to any other party (other than
Publicity:                   professional advisors) without the other's consent the contents of this memorandum
                             of understanding or that they are pursuing the same. No public announcements, press
                             releases, or similar public statements will be made without the prior written consent
                             of both parties.
-------------------------------------------------------------------------------------------------------------------

Notices and Stipulation:     From the date hereof through the closing of the Proposed Transaction, the Company
                             agrees not to sell any assets without the prior written consent of Saltzman and
                             after first giving Saltzman full disclosure reasonably in advance.  If the
                             Company is informed by OTSH that the Ashton Transaction will not close or such
                             transaction has not closed by 5:00 p.m. est, May 6, 2002, the Company will be
                             required to immediately execute a stipulation to any court of law designated by
                             Saltzman confirming Saltzman's Arbitration award in connection with the
                             Arbitration as a judgment of the court.

-------------------------------------------------------------------------------------------------------------------

No Inconsistent              From the date of execution of this memorandum of understanding and until termination
Actions:                     or expiration upon execution of definitive settlement agreements, the parties agree
                             to standstill and shall take no action inconsistent with this memorandum of
                             understanding and shall negotiate in good faith the definitive agreements contemplated
                             herein. The "Confidentiality/Publicity" provision above shall survive the termination
                             and expiration of this memorandum of understanding.
-------------------------------------------------------------------------------------------------------------------
</TABLE>

The Ashton Technology Group, Inc.                    Matthew Saltzman
By:  /s/ William W. Uchimoto                         By:/s/ Matthew Saltzman
    --------------------------------                    ------------------------

Date: April 29, 2002                                 Date: April 29, 2002
      ------------------------------                      ----------------------
Name: William W. Uchimoto
Title: Executive Vice President & General Counsel

ACKNOWLEDGED and AGREED
to this 29th day of April, 2002

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]