Document:

KEY EXECUTIVE EMPLOYMENT AND SEVERANCE AGREEMENT

       THIS AGREEMENT, made and entered into as of the 18th day of June, 2001,
by and between Regal-Beloit Corporation, a Wisconsin corporation (hereinafter
referred to as the "Company"), and James L. Packard (hereinafter referred to as
the "Executive").

                               W I T N E S S E T H

       WHEREAS, the Executive is employed by the Company and/or a subsidiary of
the Company (hereinafter referred to collectively as the "Employer") in a key
executive capacity and the Executive's services are valuable to the conduct of
the business of the Company;

       WHEREAS, the Company desires to continue to attract and retain dedicated
and skilled management employees in a period of industry consolidation,
consistent with achieving the best possible value for its shareholders in any
change in control of the Company;

       WHEREAS, the Company recognizes that circumstances may arise in which a
change in control of the Company occurs, through acquisition or otherwise,
thereby causing a potential conflict of interest between the Company's needs for
the Executive to remain focused on the Company's business and for the necessary
continuity in management prior to and following a change in control, and the
Executive's reasonable personal concerns regarding future employment with the
Employer and economic protection in the event of loss of employment as a
consequence of a change in control;

       WHEREAS, the Company and the Executive are desirous that any proposal for
a change in control or acquisition of the Company will be considered by the
Executive objectively and with reference only to the best interests of the
Company and its shareholders;

       WHEREAS, the Executive will be in a better position to consider the
Company's best interests if the Executive is afforded reasonable economic
security, as provided in this Agreement, against altered conditions of
employment which could result from any such change in control or acquisition;

       WHEREAS, the Executive possesses intimate knowledge of the business and
affairs of the Company and has acquired certain confidential information and
data with respect to the Company; and

       WHEREAS, the Company desires to insure, insofar as possible, that it will
continue to have the benefit of the Executive's services and to protect its
confidential information and goodwill.

       NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements hereinafter set forth, the parties hereto mutually
covenant and agree as follows:

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1.       Definitions.

       (a) Accrued Benefits. The term "Accrued Benefits" shall include the
following amounts, payable as described herein: (i) all base salary for the time
period ending with the Termination Date; (ii) reimbursement for any and all
monies advanced in connection with the Executive's employment for reasonable and
necessary expenses incurred by the Executive on behalf of the Employer for the
time period ending with the Termination Date; (iii) any and all other cash
earned through the Termination Date and deferred at the election of the
Executive or pursuant to any deferred compensation plan then in effect; (iv)
notwithstanding any provision of any bonus or incentive compensation plan
applicable to the Executive, a lump sum amount, in cash, equal to the sum of (A)
any bonus or incentive compensation that has been allocated or awarded to the
Executive for a fiscal year or other measuring period under the plan that ends
prior to the Termination Date but has not yet been paid (pursuant to Section
5(f) or otherwise) and (B) a pro rata portion to the Termination Date of the
aggregate value of all contingent bonus or incentive compensation awards to the
Executive for all uncompleted periods under the plan calculated as to each such
award as if the Goals with respect to such bonus or incentive compensation award
had been attained; and (v) all other payments and benefits to which the
Executive (or in the event of the Executive's death, the Executive's surviving
spouse or other beneficiary) may be entitled on the Termination Date as
compensatory fringe benefits or under the terms of any benefit plan of the
Employer, excluding severance payments under any Employer severance policy,
practice or agreement in effect on the Termination Date. Payment of Accrued
Benefits shall be made promptly in accordance with the Company's prevailing
practice with respect to clauses (i) and (ii) or, with respect to clauses (iii),
(iv) and (v), pursuant to the terms of the benefit plan or practice establishing
such benefits.

       (b) Act. The term "Act" means the Securities Exchange Act of 1934, as
amended.

       (c) Affiliate and Associate. The terms "Affiliate" and "Associate" shall
have the respective meanings ascribed to such terms in Rule l2b-2 of the General
Rules and Regulations under the Act.

       (d) Annual Cash Compensation. The term "Annual Cash Compensation" shall
mean the sum of (i) the Executive's Annual Base Salary (determined as of the
time of the Change in Control of the Company or, if higher, immediately prior to
the date the Notice of Termination is given) plus (ii) an amount equal to the
greater of the Executive's annual incentive target bonus for the fiscal year in
which the Termination Date occurs or the annual incentive bonus the Executive
received for the fiscal year prior to the Change in Control of the Company plus
(iii) an amount equal to the greater of the Executive's Fringe Benefits for the
fiscal year in which the Termination Date occurs or the annual amount of Fringe
Benefits the Executive received for the fiscal year prior to the Change in
Control of the Company (the aggregate amount set forth in clause (i), clause
(ii) and clause iii shall hereafter be referred to as the "Annual Cash
Compensation").

       (e) Beneficial Owner. A Person shall be deemed to be the "Beneficial
Owner" of any securities:

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              (i) which such Person or any of such Person's Affiliates or
       Associates has the right to acquire (whether such right is exercisable
       immediately or only after the passage of time) pursuant to any agreement,
       arrangement or understanding, or upon the exercise of conversion rights,
       exchange rights, rights, warrants or options, or otherwise; provided,
       however, that a Person shall not be deemed the Beneficial Owner of, or to
       beneficially own, (A) securities tendered pursuant to a tender or
       exchange offer made by or on behalf of such Person or any of such
       Person's Affiliates or Associates until such tendered securities are
       accepted for purchase, or (B) securities issuable upon exercise of Rights
       issued pursuant to the terms of the Company's Rights Agreement, dated as
       of January 28, 2000, between the Company and Firstar Bank, N.A., as
       amended from time to time (or any successor to such Rights Agreement), at
       any time before the issuance of such securities;

              (ii) which such Person or any of such Person's Affiliates or
       Associates, directly or indirectly, has the right to vote or dispose of
       or has "beneficial ownership" of (as determined pursuant to Rule l3d-3 of
       the General Rules and Regulations under the Act), including pursuant to
       any agreement, arrangement or understanding; provided, however, that a
       Person shall not be deemed the Beneficial Owner of, or to beneficially
       own, any security under this clause (ii) as a result of an agreement,
       arrangement or understanding to vote such security if the agreement,
       arrangement or understanding: (A) arises solely from a revocable proxy or
       consent given to such Person in response to a public proxy or consent
       solicitation made pursuant to, and in accordance with, the applicable
       rules and regulations under the Act and (B) is not also then reportable
       on a Schedule l3D under the Act (or any comparable or successor report);
       or

              (iii) which are beneficially owned, directly or indirectly, by any
       other Person with which such Person or any of such Person's Affiliates or
       Associates has any agreement, arrangement or understanding for the
       purpose of acquiring, holding, voting (except pursuant to a revocable
       proxy as described in clause (ii) above) or disposing of any voting
       securities of the Company.

       (f) Cause. "Cause" for termination by the Employer of the Executive's
employment in connection with a Change in Control of the Company shall be
limited to (i) the engaging by the Executive in intentional conduct not taken in
good faith that the Company establishes, by clear and convincing evidence, has
caused demonstrable and serious financial injury to the Employer, as evidenced
by a determination in a binding and final judgment, order or decree of a court
or administrative agency of competent jurisdiction, in effect after exhaustion
or lapse of all rights of appeal, in an action, suit or proceeding, whether
civil, criminal, administrative or investigative; (ii) conviction of a felony
(as evidenced by binding and final judgment, order or decree of a court of
competent jurisdiction, in effect after exhaustion of all rights of appeal),
which substantially impairs the Executive's ability to perform his duties or
responsibilities; or (iii) continuing willful and unreasonable refusal by the
Executive to perform the Executive's duties or responsibilities (unless
significantly changed without the Executive's consent).

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       (g) Change in Control of the Company. A "Change in Control of the
Company" shall be deemed to have occurred if an event set forth in any one of
the following paragraphs shall have occurred:

              (i) any Person (other than (A) the Company or any of its
       subsidiaries, (B) a trustee or other fiduciary holding securities under
       any employee benefit plan of the Company or any of its subsidiaries, (C)
       an underwriter temporarily holding securities pursuant to an offering of
       such securities or (D) a corporation owned, directly or indirectly, by
       the shareholders of the Company in substantially the same proportions as
       their ownership of stock in the Company ("Excluded Persons")) is or
       becomes the Beneficial Owner, directly or indirectly, of securities of
       the Company (not including in the securities beneficially owned by such
       Person any securities acquired directly from the Company or its
       Affiliates after June 13, 2001, pursuant to express authorization by
       the Board that refers to this exception) representing 20% or more of
       either the then outstanding shares of common stock of the Company or the
       combined voting power of the Company's then outstanding voting
       securities; or

              (ii) the following individuals cease for any reason to constitute
       a majority of the number of directors of the Company then serving: (A)
       individuals who, on June 13, 2001 constituted the Board and (B) any
       new director (other than a director whose initial assumption of office is
       in connection with an actual or threatened election contest, including
       but not limited to a consent solicitation, relating to the election of
       directors of the Company) whose appointment or election by the Board or
       nomination for election by the Company's shareholders was approved by a
       vote of at least two-thirds (2/3) of the directors then still in office
       who either were directors on June 13, 2001, or whose appointment,
       election or nomination for election was previously so approved
       (collectively the "Continuing Directors"); provided, however, that
       individuals who are appointed to the Board pursuant to or in accordance
       with the terms of an agreement relating to a merger, consolidation, or
       share exchange involving the Company (or any direct or indirect
       subsidiary of the Company) shall not be Continuing Directors for purposes
       of this Agreement until after such individuals are first nominated for
       election by a vote of at least two-thirds (2/3) of the then Continuing
       Directors and are thereafter elected as directors by the shareholders of
       the Company at a meeting of shareholders held following consummation of
       such merger, consolidation, or share exchange; and, provided further,
       that in the event the failure of any such persons appointed to the Board
       to be Continuing Directors results in a Change in Control of the Company,
       the subsequent qualification of such persons as Continuing Directors
       shall not alter the fact that a Change in Control of the Company
       occurred; or

              (iii) the shareholders of the Company approve a merger,
       consolidation or share exchange of the Company with any other corporation
       or approve the issuance of voting securities of the Company in connection
       with a merger, consolidation or share exchange of the Company (or any
       direct or indirect subsidiary of the Company) pursuant to applicable
       stock exchange requirements,

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       other than (A) a merger, consolidation or share exchange which would
       result in the voting securities of the Company outstanding immediately
       prior to such merger, consolidation or share exchange continuing to
       represent (either by remaining outstanding or by being converted into
       voting securities of the surviving entity or any parent thereof) at least
       50% of the combined voting power of the voting securities of the Company
       or such surviving entity or any parent thereof outstanding immediately
       after such merger, consolidation or share exchange, or (B) a merger,
       consolidation or share exchange effected to implement a recapitalization
       of the Company (or similar transaction) in which no Person (other than an
       Excluded Person) is or becomes the Beneficial Owner, directly or
       indirectly, of securities of the Company (not including in the securities
       beneficially owned by such Person any securities acquired directly from
       the Company or its Affiliates after June 13, 2001, pursuant to
       express authorization by the Board that refers to this exception)
       representing 20% or more of either the then outstanding shares of common
       stock of the Company or the combined voting power of the Company's then
       outstanding voting securities; or

              (iv) the shareholders of the Company approve of a plan of complete
       liquidation or dissolution of the Company or an agreement for the sale or
       disposition by the Company of all or substantially all of the Company's
       assets (in one transaction or a series of related transactions within any
       period of 24 consecutive months), other than a sale or disposition by the
       Company of all or substantially all of the Company's assets to an entity
       at least 75% of the combined voting power of the voting securities of
       which are owned by Persons in substantially the same proportions as their
       ownership of the Company immediately prior to such sale.

Notwithstanding the foregoing, no "Change in Control of the Company" shall be
deemed to have occurred if there is consummated any transaction or series of
integrated transactions immediately following which the record holders of the
common stock of the Company immediately prior to such transaction or series of
transactions continue to own, directly or indirectly, in the same proportions as
their ownership in the Company, an entity that owns all or substantially all of
the assets or voting securities of the Company immediately following such
transaction or series of transactions.

       (h) Code. The term "Code" means the Internal Revenue Code of 1986,
including any amendments thereto or successor tax codes thereof.

       (i) Covered Termination. Subject to Section 2(b), the term "Covered
Termination" means any termination of the Executive's employment during the
Employment Period where the Termination Date, or the date Notice of Termination
is delivered, is any date prior to the end of the Employment Period.

       (j) Employment Period. Subject to Section 2(b), the term "Employment
Period" means a period commencing on the date of a Change in Control of the
Company, and ending at 11:59 p.m. Central Time on the earlier of the third
anniversary of such date or the Executive's Normal Retirement Date.

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       (k) Fringe Benefits. The term "Fringe Benefits" means the fair market
value of the fringe benefits payable to Executive by the Company (determined as
of the time of the Change in Control of the Company or, if higher, immediately
prior to the date the Notice of Termination is given). For these purposes,
Fringe Benefits include, but are not limited to club dues or automobile
reimbursement and do not include welfare benefits, such as medical coverage
(including prescription drug coverage), dental coverage, life insurance,
disability insurance and accidental death and dismemberment benefits.

       (l) Good Reason. The Executive shall have "Good Reason" for termination
of employment in connection with a Change in Control of the Company in the event
of:

              (i) any breach of this Agreement by the Employer, including
       specifically any breach by the Employer of the agreements contained in
       Section 3(b), Section 4, Section 5, or Section 6, other than an isolated,
       insubstantial and inadvertent failure not occurring in bad faith that the
       Employer remedies promptly after receipt of notice thereof given by the
       Executive;

              (ii) any reduction in the Executive's base salary, percentage of
       base salary available as incentive compensation or bonus opportunity or
       benefits, in each case relative to those most favorable to the Executive
       in effect at any time during the 180-day period prior to the Change in
       Control of the Company or, to the extent more favorable to the Executive,
       those in effect at any time during the Employment Period;

              (iii) the removal of the Executive from, or any failure to reelect
       or reappoint the Executive to, any of the positions held with the
       Employer on the date of the Change in Control of the Company or any other
       positions with the Employer to which the Executive shall thereafter be
       elected, appointed or assigned, except in the event that such removal or
       failure to reelect or reappoint relates to the termination by the
       Employer of the Executive's employment for Cause or by reason of
       disability pursuant to Section 12;

              (iv) a good faith determination by the Executive that there has
       been a material adverse change, without the Executive's written consent,
       in the Executive's working conditions or status with the Employer
       relative to the most favorable working conditions or status in effect
       during the 180-day period prior to the Change in Control of the Company,
       or, to the extent more favorable to the Executive, those in effect at any
       time during the Employment Period, including but not limited to (A) a
       significant change in the nature or scope of the Executive's authority,
       powers, functions, duties or responsibilities, or (B) a significant
       reduction in the level of support services, staff, secretarial and other
       assistance, office space and accoutrements, but in each case excluding
       for this purpose an isolated, insubstantial and inadvertent event not
       occurring in bad faith that the Employer remedies within ten (10) days
       after receipt of notice thereof given by the Executive;

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              (v) the relocation of the Executive's principal place of
       employment to a location more than 50 miles from the Executive's
       principal place of employment on the date 180 days prior to the Change in
       Control of the Company;

              (vi) the Employer requires the Executive to travel on Employer
       business 20% in excess of the average number of days per month the
       Executive was required to travel during the 180-day period prior to the
       Change in Control of the Company;

              (vii) failure by the Company to obtain the Agreement referred to
       in Section 17(a) as provided therein; or

              (viii) any voluntary termination of employment by the Executive
       where the Notice of Termination is delivered during the 30 days following
       the first anniversary of the Change in Control of the Company.

       (m) Normal Retirement Date. The term "Normal Retirement Date" means
"Normal Retirement Date" as defined in the primary qualified defined benefit
pension plan applicable to the Executive, or any successor plan, as in effect on
the date of the Change in Control of the Company.

       (n) Person. The term "Person" shall mean any individual, firm,
partnership, corporation or other entity, including any successor (by merger or
otherwise) of such entity, or a group of any of the foregoing acting in concert.

       (o) Termination Date. Except as otherwise provided in Section 2(b),
Section 10(b), and Section 17(a), the term "Termination Date" means (i) if the
Executive's employment is terminated by the Executive's death, the date of
death; (ii) if the Executive's employment is terminated by reason of voluntary
early retirement, as agreed in writing by the Employer and the Executive, the
date of such early retirement which is set forth in such written agreement;
(iii) if the Executive's employment is terminated for purposes of this Agreement
by reason of disability pursuant to Section 12, the earlier of thirty days after
the Notice of Termination is given or one day prior to the end of the Employment
Period; (iv) if the Executive's employment is terminated by the Executive
voluntarily (other than for Good Reason), the date the Notice of Termination is
given; and (v) if the Executive's employment is terminated by the Employer
(other than by reason of disability pursuant to Section 12) or by the Executive
for Good Reason, the earlier of thirty days after the Notice of Termination is
given or one day prior to the end of the Employment Period. Notwithstanding the
foregoing,

              (A) If termination is for Cause pursuant to Section 1(f)(iii) and
       if the Executive has cured the conduct constituting such Cause as
       described by the Employer in its Notice of Termination within such
       thirty-day or shorter period, then the Executive's employment hereunder
       shall continue as if the Employer had not delivered its Notice of
       Termination.

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              (B) If the Executive shall in good faith give a Notice of
       Termination for Good Reason and the Employer notifies the Executive that
       a dispute exists concerning the termination within the fifteen-day period
       following receipt thereof, then the Executive may elect to continue his
       or her employment during such dispute and the Termination Date shall be
       determined under this paragraph. If the Executive so elects and it is
       thereafter determined that Good Reason did exist, the Termination Date
       shall be the earliest of (1) the date on which the dispute is finally
       determined, either (x) by mutual written agreement of the parties or (y)
       in accordance with Section 22, (2) the date of the Executive's death or
       (3) one day prior to the end of the Employment Period. If the Executive
       so elects and it is thereafter determined that Good Reason did not exist,
       then the employment of the Executive hereunder shall continue after such
       determination as if the Executive had not delivered the Notice of
       Termination asserting Good Reason and there shall be no Termination Date
       arising out of such Notice. In either case, this Agreement continues,
       until the Termination Date, if any, as if the Executive had not delivered
       the Notice of Termination except that, if it is finally determined that
       Good Reason did exist, the Executive shall in no case be denied the
       benefits described in Section 9 (including a Termination Payment) based
       on events occurring after the Executive delivered his Notice of
       Termination.

              (C) Except as provided in Section 1(n)(B), if the party receiving
       the Notice of Termination notifies the other party that a dispute exists
       concerning the termination within the appropriate period following
       receipt thereof and it is finally determined that the reason asserted in
       such Notice of Termination did not exist, then (1) if such Notice was
       delivered by the Executive, the Executive will be deemed to have
       voluntarily terminated his employment and the Termination Date shall be
       the earlier of the date fifteen days after the Notice of Termination is
       given or one day prior to the end of the Employment Period and (2) if
       delivered by the Company, the Company will be deemed to have terminated
       the Executive other than by reason of death, disability or Cause.

       2. Termination or Cancellation Prior to Change in Control.

       (a) Subject to Section 2(b), the Employer and the Executive shall each
retain the right to terminate the employment of the Executive at any time prior
to a Change in Control of the Company. Subject to Section 2(b), in the event the
Executive's employment is terminated prior to a Change in Control of the
Company, this Agreement shall be terminated and cancelled and of no further
force and effect, and any and all rights and obligations of the parties
hereunder shall cease.

       (b) Anything in this Agreement to the contrary notwithstanding, if a
Change in Control of the Company occurs and if the Executive's employment with
the Employer is terminated (other than a termination due to the Executive's
death or as a result of the Executive's disability) during the period of 180
days prior to the date on which the Change in Control of the Company occurs, and
if it is reasonably demonstrated by the Executive that such termination of
employment (i) was at the request of a third party who has taken steps
reasonably calculated to effect a Change in Control of the Company or (ii)
otherwise arose in connection with or in

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anticipation of a Change in Control of the Company, then for all purposes of
this Agreement such termination of employment shall be deemed a "Covered
Termination," "Notice of Termination" shall be deemed to have been given, and
the "Employment Period" shall be deemed to have begun on the date of such
termination which shall be deemed to be the "Termination Date" and the date of
the Change of Control of the Company for purposes of this Agreement.

       3. Employment Period; Vesting of Certain Benefits.

       (a) If a Change in Control of the Company occurs when the Executive is
employed by the Employer, the Employer will continue thereafter to employ the
Executive during the Employment Period, and the Executive will remain in the
employ of the Employer in accordance with and subject to the terms and
provisions of this Agreement. Any termination of the Executive's employment
during the Employment Period, whether by the Company or the Employer, shall be
deemed a termination by the Company for purposes of this Agreement.

       (b) If a Change in Control of the Company occurs when the Executive is
employed by the Employer, (i) the Company shall cause all restrictions on
restricted stock awards made to the Executive prior to the Change in Control of
the Company to lapse such that the Executive is fully and immediately vested in
the Executive's restricted stock upon such a Change in Control of the Company;
and (ii) the Company shall cause all stock options granted to the Executive
prior to the Change in Control of the Company pursuant to the Company's stock
option plan(s) to be fully and immediately vested upon such a Change in Control
of the Company.

       4. Duties. During the Employment Period, the Executive shall, in the same
capacities and positions held by the Executive at the time of the Change in
Control of the Company or in such other capacities and positions as may be
agreed to by the Employer and the Executive in writing, devote the Executive's
best efforts and all of the Executive's business time, attention and skill to
the business and affairs of the Employer, as such business and affairs now exist
and as they may hereafter be conducted.

       5. Compensation. During the Employment Period, the Executive shall be
compensated as follows:

       (a) The Executive shall receive, at reasonable intervals (but not less
often than monthly) and in accordance with such standard policies as may be in
effect immediately prior to the Change in Control of the Company, an annual base
salary in cash equivalent of not less than twelve times the Executive's highest
monthly base salary for the twelve-month period immediately preceding the month
in which the Change in Control of the Company occurs or, if higher, an annual
base salary at the rate in effect immediately prior to the Change in Control of
the Company (which base salary shall, unless otherwise agreed in writing by the
Executive, include the current receipt by the Executive of any amounts which,
prior to the Change in Control of the Company, the Executive had elected to
defer, whether such compensation is deferred under Section 401(k) of the Code or
otherwise), subject to adjustment as hereinafter provided in Section 6 (such
salary amount as adjusted upward from time to time is hereafter referred to as
the "Annual Base Salary").

       (b) The Executive shall receive Fringe Benefits at least equal in value
to the highest value of such benefits provided for the Executive at any time
during the 180-day period

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immediately prior to the Change in Control of the Company or, if more favorable
to the Executive, those provided generally at any time during the Employment
Period to any executives of the Employer of comparable status and position to
the Executive; and shall be reimbursed, at such intervals and in accordance with
such standard policies that are most favorable to the Executive that were in
effect at any time during the 180-day period immediately prior to the Change in
Control of the Company, for any and all monies advanced in connection with the
Executive's employment for reasonable and necessary expenses incurred by the
Executive on behalf of the Employer, including travel expenses.

       (c) The Executive and/or the Executive's family, as the case may be,
shall be included, to the extent eligible thereunder (which eligibility shall
not be conditioned on the Executive's salary grade or on any other requirement
which excludes persons of comparable status to the Executive unless such
exclusion was in effect for such plan or an equivalent plan at any time during
the 180-day period immediately prior to the Change in Control of the Company),
in any and all plans providing benefits for the Employer's salaried employees in
general, including but not limited to group life insurance, hospitalization,
medical (including prescription drug coverage), dental, profit sharing and stock
bonus plans; provided, that, (i) in no event shall the aggregate level of
benefits under such plans in which the Executive is included be less than the
aggregate level of benefits under plans of the Employer of the type referred to
in this Section 5(c) in which the Executive was participating at any time during
the 180-day period immediately prior to the Change in Control of the Company and
(ii) in no event shall the aggregate level of benefits under such plans be less
than the aggregate level of benefits under plans of the type referred to in this
Section 5(c) provided at any time after the Change in Control of the Company to
any executive of the Employer of comparable status and position to the
Executive.

       (d) The Executive shall annually be entitled to not less than the amount
of paid vacation and not fewer than the highest number of paid holidays to which
the Executive was entitled annually at any time during the 180-day period
immediately prior to the Change in Control of the Company or such greater amount
of paid vacation and number of paid holidays as may be made available annually
to other executives of the Employer of comparable status and position to the
Executive at any time during the Employment Period.

       (e) The Executive shall be included in all plans providing additional
benefits to executives of the Employer of comparable status and position to the
Executive, including but not limited to deferred compensation, split-dollar life
insurance, supplemental retirement, stock option, stock appreciation, stock
bonus and similar or comparable plans; provided, that, (i) in no event shall the
aggregate level of benefits under such plans be less than the highest aggregate
level of benefits under plans of the Employer of the type referred to in this
Section 5(e) in which the Executive was participating at any time during the
180-day period immediately prior to the Change in Control of the Company; (ii)
in no event shall the aggregate level of benefits under such plans be less than
the aggregate levels of benefits under plans of the type referred to in this
Section 5(e) provided at any time after the Change in Control of the Company to
any executive of the Employer comparable in status and position to the
Executive; and (iii) the Employer's obligation to include the Executive in bonus
or incentive compensation plans shall be determined by Section 5(f).

       (f) To assure that the Executive will have an opportunity to earn
incentive compensation after a Change in Control of the Company, the Executive
shall be included in a

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bonus plan of the Employer which shall satisfy the standards described below
(such plan, the "Bonus Plan"). Bonuses under the Bonus Plan shall be payable
with respect to achieving such financial or other goals reasonably related to
the business of the Employer as the Employer shall establish (the "Goals"), all
of which Goals shall be attainable, prior to the end of the Employment Period,
with approximately the same degree of probability as the most attainable goals
under the Employer's bonus plan or plans as in effect at any time during the
180-day period immediately prior to the Change in Control of the Company
(whether one or more, the "Company Bonus Plan") and in view of the Employer's
existing and projected financial and business circumstances applicable at the
time. The amount of the bonus (the "Bonus Amount") that the Executive is
eligible to earn under the Bonus Plan shall be no less than the amount of the
Executive's maximum award provided in such Company Bonus Plan (such bonus amount
herein referred to as the "Targeted Bonus"), and in the event the Goals are not
achieved such that the entire Targeted Bonus is not payable, the Bonus Plan
shall provide for a payment of a Bonus Amount equal to a portion of the Targeted
Bonus reasonably related to that portion of the Goals which were achieved.
Payment of the Bonus Amount shall not be affected by any circumstance occurring
subsequent to the end of the Employment Period, including termination of the
Executive's employment.

       6. Annual Compensation Adjustments. During the Employment Period, the
Board of Directors of the Company (or an appropriate committee thereof) will
consider and appraise, at least annually, the contributions of the Executive to
the Company, and in accordance with the Company's practice prior to the Change
in Control of the Company, due consideration shall be given to the upward
adjustment of the Executive's Annual Base Salary, at least annually, (a)
commensurate with increases generally given to other executives of the Company
of comparable status and position to the Executive, and (b) as the scope of the
Company's operations or the Executive's duties expand.

       7. Termination For Cause or Without Good Reason. If there is a Covered
Termination for Cause or due to the Executive's voluntarily terminating his or
her employment other than for Good Reason (any such terminations to be subject
to the procedures set forth in Section 13), then the Executive shall be entitled
to receive only Accrued Benefits.

       8. Termination Giving Rise to a Termination Payment. If there is a
Covered Termination by the Executive for Good Reason, or by the Company other
than by reason of (i) death, (ii) disability pursuant to Section 12, or (iii)
Cause (any such terminations to be subject to the procedures set forth in
Section 13), then the Executive shall be entitled to receive, and the Company
shall promptly pay, Accrued Benefits and, in lieu of further base salary for
periods following the Termination Date, as liquidated damages and additional
severance pay and in consideration of the covenant of the Executive set forth in
Section 14(a), the Termination Payment pursuant to Section 9(a).

       9. Payments Upon Termination.

       (a) Termination Payment. The "Termination Payment" shall be an amount
equal to the Annual Cash Compensation times three (3). The Termination Payment
shall be paid to the Executive in cash equivalent ten (10) business days after
the Termination Date. Such lump sum payment shall not be reduced by any present
value or similar factor, and the Executive shall not be required to mitigate the
amount of the Termination Payment by securing other employment or

                                      -11-
<PAGE>

otherwise, nor will such Termination Payment be reduced by reason of the
Executive securing other employment or for any other reason. The Termination
Payment shall be in lieu of, and acceptance by the Executive of the Termination
Payment shall constitute the Executive's release of any rights of the Executive
to, any other cash severance payments under any Company severance policy,
practice or agreement.

       (b) Certain Additional Payments by the Company.

              (i) Notwithstanding any other provision of this Agreement, if any
       portion of the Termination Payment or any other payment under this
       Agreement, or under any other agreement with or plan of the Employer (in
       the aggregate, "Total Payments"), would constitute an "excess parachute
       payment," then the Company shall pay the Executive an additional amount
       (the "Gross-Up Payment") such that the net amount retained by the
       Executive after deduction of any excise tax imposed under Section 4999 of
       the Code (or any successor provision) and any interest charges or
       penalties in respect of the imposition of such excise tax (but not any
       federal, state or local income tax, or employment tax) on the Total
       Payments, and any federal, state and local income tax, employment tax,
       and excise tax upon the payment provided for by this Section 9(b)(i),
       shall be equal to the Total Payments. For purposes of determining the
       amount of the Gross-Up Payment, the Executive shall be deemed to pay
       federal income tax and employment taxes at the highest marginal rate of
       federal income and employment taxation in the calendar year in which the
       Gross-Up Payment is to be made and state and local income taxes at the
       highest marginal rate of taxation in the state and locality of the
       Executive's domicile for income tax purposes on the date the Gross-Up
       Payment is made, net of the maximum reduction in federal income taxes
       that may be obtained from the deduction of such state and local taxes.

              (ii) For purposes of this Agreement, the terms "excess parachute
       payment" and "parachute payments" shall have the meanings assigned to
       them in Section 280G of the Code (or any successor provision) and such
       "parachute payments" shall be valued as provided therein. Present value
       for purposes of this Agreement shall be calculated in accordance with
       Section 1274(b)(2) of the Code (or any successor provision). Promptly
       following a Covered Termination or notice by the Company to the Executive
       of its belief that there is a payment or benefit due the Executive which
       will result in an "excess parachute payment" as defined in Section 280G
       of the Code (or any successor provision), the Executive and the Company,
       at the Company's expense, shall obtain the opinion (which need not be
       unqualified) of nationally recognized tax counsel ("National Tax
       Counsel") selected by the Company's independent auditors and reasonably
       acceptable to the Executive (which may be regular outside counsel to the
       Company), which opinion sets forth (A) the amount of the Base Period
       Income, (B) the amount and present value of Total Payments, (C) the
       amount and present value of any excess parachute payments, and (D) the
       amount of any Gross-Up Payment. As used in this Agreement, the term "Base
       Period Income" means an amount equal to the Executive's "annualized
       includable compensation for the base period" as defined in

                                      -12-
<PAGE>

       Section 280G(d)(1) of the Code. For purposes of such opinion, the value
       of any noncash benefits or any deferred payment or benefit shall be
       determined by the Company's independent auditors in accordance with the
       principles of Section 280G(d)(3) and (4) of the Code (or any successor
       provisions), which determination shall be evidenced in a certificate of
       such auditors addressed to the Company and the Executive. The opinion of
       National Tax Counsel shall be addressed to the Company and the Executive
       and shall be binding upon the Company and the Executive. If such National
       Tax Counsel so requests in connection with the opinion required by this
       Section 9(b), the Executive and the Company shall obtain, at the
       Company's expense, and the National Tax Counsel may rely on, the advice
       of a firm of recognized executive compensation consultants as to the
       reasonableness of any item of compensation to be received by the
       Executive solely with respect to its status under Section 280G of the
       Code and the regulations thereunder. Within five (5) days after the
       National Tax Counsel's opinion is received by the Company and the
       Executive, the Company shall pay (or cause to be paid) or distribute (or
       cause to be distributed) to or for the benefit of the Executive such
       amounts as are then due to the Executive under this Agreement.

              (iii) In the event that upon any audit by the Internal Revenue
       Service, or by a state or local taxing authority, of the Total Payments
       or Gross-Up Payment, a change is finally determined to be required in the
       amount of taxes paid by the Executive, appropriate adjustments shall be
       made under this Agreement such that the net amount which is payable to
       the Executive after taking into account the provisions of Section 4999 of
       the Code (or any successor provision) shall reflect the intent of the
       parties as expressed in this Section 9, in the manner determined by the
       National Tax Counsel.

              (iv) The Company agrees to bear all costs associated with, and to
       indemnify and hold harmless, the National Tax Counsel of and from any and
       all claims, damages, and expenses resulting from or relating to its
       determinations pursuant to this Section 9(b), except for claims, damages
       or expenses resulting from the gross negligence or willful misconduct of
       such firm.

       (c) Additional Benefits. If there is a Covered Termination and the
Executive is entitled to Accrued Benefits and the Termination Payment, then the
Company shall provide to the Executive the following additional benefits:

              (i) The Executive shall receive, at the expense of the Company,
       outplacement services, on an individualized basis at a level of service
       commensurate with the Executive's status with the Company immediately
       prior to the date of the Change in Control of the Company (or, if higher,
       immediately prior to the termination of the Executive's employment),
       provided by a nationally recognized executive placement firm selected by
       the Company; provided that the cost to the Company of such services shall
       not exceed 10% of the Executive's Annual Base Salary.

                                      -13-
<PAGE>

              (ii) Until the earlier of the end of the Employment Period or such
       time as the Executive has obtained new employment and is covered by
       benefits which in the aggregate are at least equal in value to the
       following benefits, the Executive shall continue to be covered, at the
       expense of the Company, by the same or equivalent life insurance,
       hospitalization, medical and dental coverage as was required hereunder
       with respect to the Executive immediately prior to the date the Notice of
       Termination is given.

              (iii) The Company shall bear up to $15,000 in the aggregate of
       fees and expenses of consultants and/or legal or accounting advisors
       engaged by the Executive to advise the Executive as to matters relating
       to the computation of benefits due and payable under this Section 9.

              (iv) The Company shall cause the Executive to be fully and
       immediately vested in his accrued benefit under any supplemental
       executive retirement plan of the Employer providing benefits for the
       Executive (the "SERP") and in any defined contribution retirement plan of
       the Employer. In addition, the Company shall cause the Executive to be
       deemed to have satisfied any minimum years of service requirement under
       the SERP for subsidized early retirement benefits regardless of the
       Executive's age and service at the Termination Date; provided, however,
       that SERP benefits will be based on service to date with no additional
       credit for service or age beyond such Termination Date.

              (v) On the Termination Date, for purposes of determining
       Executive's eligibility for post-retirement benefits under any welfare
       benefit plan (as defined in Section 3(1) of the Employee Retirement
       Security Act of 1974, as amended) maintained by the Company immediately
       prior to the Change in Control of the Company and in which Executive
       participated, immediately prior to the Change in Control of the Company,
       Executive shall be credited with the excess of three (3) years of
       participation in the applicable medical plan and three (3) years of age
       over the actual years and fractional years of participation and age
       credited to Executive as of the Change in Control of the Company. If the
       Executive is less than 60 years of age, he shall be credited with a
       minimum age of 60 years. If after taking into account such participation
       and age, Executive would have been eligible to receive such
       post-retirement benefits had Executive retired immediately prior to the
       Change in Control of the Company, Executive shall receive, commencing on
       the Termination Date, post-retirement benefits based on the terms and
       conditions of the applicable plans in effect immediately prior to the
       Change in Control of the Company.

              (vi) For purposes of determining the Executive's retirement
       benefits under the various retirement benefits plans of the Company,
       Executive shall be deemed to be an active employee receiving his Annual
       Base Salary and shall accordingly continue to earn service and accrue
       benefits under such plans to a minimum age of sixty (60) years, but not
       less than for an additional period of three (3) years following the
       Termination Date.

                                      -14-
<PAGE>

              (vii) The Company shall cause all performance plan awards granted
       to the Executive pursuant to any long-term incentive plan maintained by
       the Company to be paid out at target, as if all performance requirements
       had been satisfied, on a pro rata basis based on the completed portion of
       each award cycle.

              (viii) The Executive shall, after the Termination Date, retain all
       rights to indemnification under applicable law or under the Company's
       Certificate of Incorporation or By-Laws, as they may be amended or
       restated from time to time, to the extent any such amendment or
       restatement expands the Executive's rights to indemnification. In
       addition, the Company shall maintain Director's and Officer's liability
       insurance on behalf of the Executive, provided the Executive is eligible
       to be covered and has in fact been covered by such insurance, at the
       highest level in effect immediately prior to the date of the Change in
       Control of the Company (or, if higher, immediately prior to the
       termination of the Executive's employment) including any such insurance
       that was reduced prior to a Change in Control of the Company at the
       request of the person or entity acquiring control of the Company or
       reasonably shown to be related to the Change in Control of the Company,
       for the seven (7) year period following the Termination Date.

       10. Death.

       (a) Except as provided in Section 10(b), in the event of a Covered
Termination due to the Executive's death, the Executive's estate, heirs and
beneficiaries shall receive all the Executive's Accrued Benefits through the
Termination Date.

       (b) In the event the Executive dies after a Notice of Termination is
given (i) by the Company or (ii) by the Executive for Good Reason, the
Executive's estate, heirs and beneficiaries shall be entitled to the benefits
described in Section 10(a) and, subject to the provisions of this Agreement, to
such Termination Payment as the Executive would have been entitled to had the
Executive lived. For purposes of this Section 10(b), the Termination Date shall
be the earlier of thirty days following the giving of the Notice of Termination,
subject to extension pursuant to Section 1(n), or one day prior to the end of
the Employment Period.

       11. Retirement. If, during the Employment Period, the Executive and the
Employer shall execute an agreement providing for the early retirement of the
Executive from the Employer, or the Executive shall otherwise give notice that
he is voluntarily choosing to retire early from the Employer, the Executive
shall receive Accrued Benefits through the Termination Date; provided, that if
the Executive's employment is terminated by the Executive for Good Reason or by
the Company other than by reason of death, disability or Cause and the Executive
also, in connection with such termination, elects voluntary early retirement,
the Executive shall also be entitled to receive a Termination Payment pursuant
to Section 8.

       12. Termination for Disability. If, during the Employment Period, as a
result of the Executive's disability due to physical or mental illness or injury
(regardless of whether such illness or injury is job-related), the Executive
shall have been absent from the Executive's

                                      -15-
<PAGE>

duties hereunder on a full-time basis for a period of six consecutive months
and, within thirty days after the Company notifies the Executive in writing that
it intends to terminate the Executive's employment (which notice shall not
constitute the Notice of Termination contemplated below), the Executive shall
not have returned to the performance of the Executive's duties hereunder on a
full-time basis, the Company may terminate the Executive's employment for
purposes of this Agreement pursuant to a Notice of Termination given in
accordance with Section 13. If the Executive's employment is terminated on
account of the Executive's disability in accordance with this Section, the
Executive shall receive Accrued Benefits through the Termination Date and shall
remain eligible for all benefits provided by any long term disability programs
of the Company in effect at the time of such termination.

       13. Termination Notice and Procedure. Any Covered Termination by the
Company or the Executive (other than a termination of the Executive's employment
that is a Covered Termination by virtue of Section 2(b)) shall be communicated
by a written notice of termination ("Notice of Termination") to the Executive,
if such Notice is given by the Company, and to the Company, if such Notice is
given by the Executive, all in accordance with the following procedures and
those set forth in Section 23:

       (a) If such termination is for disability, Cause or Good Reason, the
Notice of Termination shall indicate in reasonable detail the facts and
circumstances alleged to provide a basis for such termination.

       (b) Any Notice of Termination by the Company shall have been approved,
prior to the giving thereof to the Executive, by a resolution duly adopted by a
majority of the directors of the Company (or any successor corporation) then in
office.

       (c) If the Notice is given by the Executive for Good Reason, the
Executive may cease performing his duties hereunder on or after the date fifteen
days after the delivery of Notice of Termination and shall in any event cease
employment on the Termination Date. If the Notice is given by the Company, then
the Executive may cease performing his duties hereunder on the date of receipt
of the Notice of Termination, subject to the Executive's rights hereunder.

       (d) The Executive shall have thirty days, or such longer period as the
Company may determine to be appropriate, to cure any conduct or act, if curable,
alleged to provide grounds for termination of the Executive's employment for
Cause under this Agreement pursuant to Section 1(f)(iii).

       (e) The recipient of any Notice of Termination shall personally deliver
or mail in accordance with Section 23 written notice of any dispute relating to
such Notice of Termination to the party giving such Notice within fifteen days
after receipt thereof; provided, however, that if the Executive's conduct or act
alleged to provide grounds for termination by the Company for Cause is curable,
then such period shall be thirty days. After the expiration of such period, the
contents of the Notice of Termination shall become final and not subject to
dispute.

       14. Further Obligations of the Executive.

       (a) Competition. The Executive agrees that, in the event of any Covered
Termination where the Executive is entitled to Accrued Benefits and the
Termination Payment, the Executive shall not, for a period expiring one year
after the Termination Date, without the prior

                                      -16-
<PAGE>

written approval of the Company's Board of Directors, participate in the
management of, be employed by or own any business enterprise at a location
within the United States that engages in substantial competition with the
Company or its subsidiaries, where such enterprise's revenues from any
competitive activities amount to 10% or more of such enterprise's net revenues
and sales for its most recently completed fiscal year; provided, however, that
nothing in this Section 14(a) shall prohibit the Executive from owning stock or
other securities of a competitor amounting to less than five percent of the
outstanding capital stock of such competitor.

       (b) Confidentiality. During and following the Executive's employment by
the Company, the Executive shall hold in confidence and not directly or
indirectly disclose or use or copy or make lists of any confidential information
or proprietary data of the Company (including that of the Employer), except to
the extent authorized in writing by the Board of Directors of the Company or
required by any court or administrative agency, other than to an employee of the
Company or a person to whom disclosure is reasonably necessary or appropriate in
connection with the performance by the Executive of duties as an executive of
the Company. Confidential information shall not include any information known
generally to the public or any information of a type not otherwise considered
confidential by persons engaged in the same business or a business similar to
that of the Company. All records, files, documents and materials, or copies
thereof, relating to the business of the Company which the Executive shall
prepare, or use, or come into contact with, shall be and remain the sole
property of the Company and shall be promptly returned to the Company upon
termination of employment with the Company.

       15. Expenses and Interest. If, after a Change in Control of the Company,
(a) a dispute arises with respect to the enforcement of the Executive's rights
under this Agreement or (b) any legal or arbitration proceeding shall be brought
to enforce or interpret any provision contained herein or to recover damages for
breach hereof, in either case so long as the Executive is not acting in bad
faith, then the Company shall reimburse the Executive for any reasonable
attorneys' fees and necessary costs and disbursements incurred as a result of
the dispute, legal or arbitration proceeding ("Expenses"), and prejudgment
interest on any money judgment or arbitration award obtained by the Executive
calculated at the rate of interest announced by M&I Marshall & Isley Bank,
from time to time at its prime or base lending rate from the date that payments
to him or her should have been made under this Agreement. Within ten days after
the Executive's written request therefor, the Company shall pay to the
Executive, or such other person or entity as the Executive may designate in
writing to the Company, the Executive's reasonable Expenses in advance of the
final disposition or conclusion of any such dispute, legal or arbitration
proceeding.

       16. Payment Obligations Absolute. The Company's obligation during and
after the Employment Period to pay the Executive the amounts and to make the
benefit and other arrangements provided herein shall be absolute and
unconditional and shall not be affected by any circumstances, including, without
limitation, any setoff, counterclaim, recoupment, defense or other right which
the Company may have against him or anyone else, except as provided in Section
20. Executive shall not be required to mitigate damages or the amount of any
payment provided for under this Agreement by seeking other employment or
otherwise, and compensation earned from such employment or otherwise shall not
reduce the amounts otherwise payable under this Agreement. Except as provided in
Section 15, all amounts payable by the Company hereunder

                                      -17-
<PAGE>

shall be paid without notice or demand. Each and every payment made hereunder by
the Company shall be final, and the Company will not seek to recover all or any
part of such payment from the Executive, or from whomsoever may be entitled
thereto, for any reason whatsoever.

       17. Successors.

       (a) If the Company sells, assigns or transfers all or substantially all
of its business and assets to any Person or if the Company merges into or
consolidates or otherwise combines (where the Company does not survive such
combination) with any Person (any such event, a "Sale of Business"), then the
Company shall assign all of its right, title and interest in this Agreement as
of the date of such event to such Person, and the Company shall cause such
Person, by written agreement in form and substance reasonably satisfactory to
the Executive, to expressly assume and agree to perform from and after the date
of such assignment all of the terms, conditions and provisions imposed by this
Agreement upon the Company. Failure of the Company to obtain such agreement
prior to the effective date of such Sale of Business shall be a breach of this
Agreement constituting "Good Reason" hereunder, except that for purposes of
implementing the foregoing the date upon which such Sale of Business becomes
effective shall be deemed the Termination Date. In case of such assignment by
the Company and of assumption and agreement by such Person, as used in this
Agreement, "Company" shall thereafter mean such Person which executes and
delivers the agreement provided for in this Section 17 or which otherwise
becomes bound by all the terms and provisions of this Agreement by operation of
law, and this Agreement shall inure to the benefit of, and be enforceable by,
such Person. The Executive shall, in his or her discretion, be entitled to
proceed against any or all of such Persons, any Person which theretofore was
such a successor to the Company and the Company (as so defined) in any action to
enforce any rights of the Executive hereunder. Except as provided in this
Section 17(a), this Agreement shall not be assignable by the Company. This
Agreement shall not be terminated by the voluntary or involuntary dissolution of
the Company.

       (b) This Agreement and all rights of the Executive shall inure to the
benefit of and be enforceable by the Executive's personal or legal
representatives, executors, administrators, heirs and beneficiaries. All amounts
payable to the Executive under Sections 7, 8, 9, 10, 11, 12 and 15 if the
Executive had lived shall be paid, in the event of the Executive's death, to the
Executive's estate, heirs and representatives; provided, however, that the
foregoing shall not be construed to modify any terms of any benefit plan of the
Employer, as such terms are in effect on the date of the Change in Control of
the Company, that expressly govern benefits under such plan in the event of the
Executive's death.

       18. Severability. The provisions of this Agreement shall be regarded as
divisible, and if any of said provisions or any part hereof are declared invalid
or unenforceable by a court of competent jurisdiction, the validity and
enforceability of the remainder of such provisions or parts hereof and the
applicability thereof shall not be affected thereby.

       19. Contents of Agreement; Waiver of Rights; Amendment. This Agreement
sets forth the entire understanding between the parties hereto with respect to
the subject matter hereof and supercedes, and the Executive hereby waives all
rights under, any prior or other agreement or understanding between the parties
with respect to such subject matter, including without limitation, the Change of
Control Agreement dated January 1997, as amended, between the

                                      -18-
<PAGE>

Company and the Executive. This Agreement may not be amended or modified at any
time except by written instrument executed by the Company and the Executive.

       20. Withholding. The Company shall be entitled to withhold from amounts
to be paid to the Executive hereunder any federal, state or local withholding or
other taxes or charges which it is from time to time required to withhold;
provided, that the amount so withheld shall not exceed the minimum amount
required to be withheld by law. The Company shall be entitled to rely on an
opinion of the National Tax Counsel if any question as to the amount or
requirement of any such withholding shall arise.

       21. Certain Rules of Construction. No party shall be considered as being
responsible for the drafting of this Agreement for the purpose of applying any
rule construing ambiguities against the drafter or otherwise. No draft of this
Agreement shall be taken into account in construing this Agreement. Any
provision of this Agreement which requires an agreement in writing shall be
deemed to require that the writing in question be signed by the Executive and an
authorized representative of the Company.

       22. Governing Law; Resolution of Disputes. This Agreement and the rights
and obligations hereunder shall be governed by and construed in accordance with
the laws of the State of Wisconsin. Any dispute arising out of this Agreement
shall, at the Executive's election, be determined by arbitration under the rules
of the American Arbitration Association then in effect (in which case both
parties shall be bound by the arbitration award) or by litigation. Whether the
dispute is to be settled by arbitration or litigation, the venue for the
arbitration or litigation shall be Milwaukee, Wisconsin or, at the Executive's
election, if the Executive is not then residing or working in the Milwaukee,
Wisconsin metropolitan area, in the judicial district encompassing the city in
which the Executive resides; provided, that, if the Executive is not then
residing in the United States, the election of the Executive with respect to
such venue shall be either Milwaukee, Wisconsin or in the judicial district
encompassing that city in the United States among the thirty cities having the
largest population (as determined by the most recent United States Census data
available at the Termination Date) which is closest to the Executive's
residence. The parties consent to personal jurisdiction in each trial court in
the selected venue having subject matter jurisdiction notwithstanding their
residence or situs, and each party irrevocably consents to service of process in
the manner provided hereunder for the giving of notices.

       23. Notice. Notices given pursuant to this Agreement shall be in writing
and, except as otherwise provided by Section 13(d), shall be deemed given when
actually received by the Executive or actually received by the Company's
Secretary or any officer of the Company other than the Executive. If mailed,
such notices shall be mailed by United States registered or certified mail,
return receipt requested, addressee only, postage prepaid, if to the Company, to
Regal-Beloit Corporation, Attention: Secretary (or President, if the Executive
is then Secretary), 200 State Street, Beloit, Wisconsin 53511-6254, or if to the
Executive, at the address set forth below the Executive's signature to this
Agreement, or to such other address as the party to be notified shall have
theretofore given to the other party in writing.

       24. No Waiver. No waiver by either party at any time of any breach by the
other party of, or compliance with, any condition or provision of this Agreement
to be performed

                                      -19-
<PAGE>

by the other party shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same time or any prior or subsequent time.

       25. Headings. The headings herein contained are for reference only and
shall not affect the meaning or interpretation of any provision of this
Agreement.

                                      -20-
<PAGE>

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

                                      REGAL-BELOIT CORPORATION

                                      By: /s/ Henry W. Knueppel
                                          -------------------------------------
                                          Name:  Henry W. Knueppel
                                          Title: Executive Vice President

                                      Attest: /s/ Kenneth F. Kaplan
                                             ----------------------------------
                                             Name:  Kenneth F. Kaplan
                                             Title: Vice President, Chief
                                                    Financial Officer, Secretary

                                      EXECUTIVE:

                                      /s/ James L. Packard               (SEAL)
                                      -----------------------------------------
                                          James L. Packard

                                      Address: 7613 McCurry Road
                                               Roscoe, Illinois 61073

                                      -21-Exhibit 10.9

CERTAIN INFORMATION HAS BEEN DELETED FROM THIS EXHIBIT AND FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL
TREATMENT UNDER RULE 24B-2.

                                                                  EXECUTION COPY

                          ADDENDUM TO LICENSE AGREEMENT

         THIS ADDENDUM TO LICENSE AGREEMENT (the "Addendum") is made and
effective as of the 25th day of March, 2002 (the "Effective Date"), by and
between CNS, Inc., a Delaware corporation ("Licensee"), and WinEase, L.L.C., a
Minnesota limited liability company ("Licensor").

                                 R E C I T A L S

         WHEREAS, Licensor and Licensee are parties to that certain license
agreement dated March 12, 1999 (the "License Agreement");

         WHEREAS, Licensor granted to Licensee under the License Agreement an
exclusive, worldwide, royalty bearing license under all of those Patent Rights,
Know-how, Product Improvements and Trademark Rights relating to the development,
manufacture, sale and use of the Products and Licensed Methods and other
intellectual property rights relating to nasal support devices for animals;

         WHEREAS, Licensee has been engaged in, among other things, the
development, commercialization, production and marketing of the "Products" (as
that term is defined in the License Agreement) in accordance with the License
Agreement;

         WHEREAS, Licensee desires to enter into an exclusive and worldwide
distribution, marketing and selling relationship for the Products (the
"Distribution Relationship") with a recognized distributor known as Merial
Limited, a company registered in England and Wales and domesticated in the
United States as Merial LLC ("Merial");

         WHEREAS, Licensee will be entering into the Distribution Relationship
with Merial substantially concurrently with the execution of this Addendum;

         WHEREAS, Licensee represents that the total expenses that Licensee has
incurred to date in connection with the development, commercialization,
production and marketing of the Products have exceeded Net Sales by at least
[***]; and

         WHEREAS, Licensor and Licensee desire to address certain issues
relating to the rights and relationship of the parties and desire to amend the
License Agreement accordingly and further desire to provide for certain other
agreements as set forth herein;

<PAGE>

         NOW, THEREFORE, in consideration of these premises, and the mutual
covenants and agreements set forth in the License Agreement and hereinafter set
forth and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

         A.       Amendments to License Agreement. The License Agreement is
                  hereby amended as follows:

                  1.       General Definitions. Paragraph 1 is hereby amended to
                           add the following after Paragraph 1.9:

                           "1.10 Other Definitions. The terms "Acquirer,"
                  "Affiliate," "Effective Date," "Excess Amount," "Proceeds,"
                  "Recoupment Amount," "Transfer," "Third-Party Transferee" and
                  any other terms not defined in this Paragraph 1 shall have the
                  meanings ascribed to the terms elsewhere in this Agreement."

                  2.       Assignments. Paragraph 2.4 of the License Agreement
                           is hereby amended and restated in its entirety to
                           read as follows:

                           "(a) Licensee may sell, assign, convey or transfer
                  any and all of its rights under this Agreement ("Transfer") to
                  a successor in interest of all, or substantially all, of the
                  assets or capital stock of Licensee (the "Acquirer"). In the
                  event of such a Transfer, any such Acquirer shall assume all
                  of the obligations of Licensee hereunder and this Agreement
                  shall be binding upon and inure to the benefit of such
                  Acquirer. No other Transfer may be made by Licensee or
                  Acquirer without complying with subsections (b) and (c) of
                  this Paragraph.

                           (b) Except as otherwise set forth in or contemplated
                  by Paragraph 2.3 above, no other Transfer may be made by
                  Licensee or the Acquirer without Licensor's prior written
                  consent unless Licensee or the Acquirer grants Licensor an
                  exclusive right of first refusal to purchase all of the rights
                  conferred under this Agreement in accordance with the
                  following procedure:

                                    (i) First, Licensee shall give Licensor
                           written notification of its intention to enter into a
                           transaction which operates to effectuate a Transfer
                           to a third party that is not an Acquirer
                           ("Third-Party Transferee") and shall not enter into
                           any such transaction without first disclosing all
                           material information about the proposed transaction
                           to Licensor and offering to enter into a transaction
                           on substantially identical terms with Licensor; and
                           then

                                    (ii) Second, Licensor shall, unless
                           otherwise waived in writing by Licensor, have a
                           period of thirty (30) days after receipt of written
                           notification provided in accordance with subsection
                           (b)(i) above to exercise its right of first refusal
                           by providing written notice to Licensee

                                       2
<PAGE>

                           and agree to consummate a Transfer on substantially
                           identical terms. The right of first refusal procedure
                           outlined in this Paragraph 2.4 shall be repeated
                           prior to entering into by Licensee of any transaction
                           that is (a) on terms less favorable in a material
                           respect to the Licensee or the Acquirer than
                           specified in an earlier written notice to Licensor,
                           or (b) with a party other than that specified in an
                           earlier written notice.

                            (c) In the event that Licensee, after complying with
                  the right of first refusal procedure set forth in subsections
                  (b)(i) through (b)(ii) of Paragraph 2.4, consummates a
                  Transfer with a Third-Party Transferee in a transaction that
                  results in Licensee receiving "Proceeds" (defined to mean
                  cash, stock or other consideration solely attributable to the
                  Transfer) from and on account of such a Transfer having a fair
                  market value on the date of the closing of the transaction in
                  an amount that is in excess of the Recoupment Amount (as
                  defined in Paragraph 4.3.1 below) (the "Excess Amount"),
                  Licensee agrees to pay Licensor an amount equal to [***]% of
                  the Excess Amount.

                           (d) In the event that Licensee, after complying with
                  the applicable provisions of subsections (b)(i) through
                  (b)(ii) of Paragraph 2.4, consummates a Transfer with a
                  Third-Party Transferee, the terms of Paragraph 4.3.2
                  pertaining to royalties to be paid by such Third-Party
                  Transferee on account of Net Sales of Products shall come into
                  effect. In the event of such a Transfer with a Third-Party
                  Transferee, any such Third-Party Transferee shall assume all
                  of the obligations of Licensee hereunder and this Agreement
                  shall be binding upon and inure to the benefit of such
                  Third-Party Transferee."

                  3.       Additional License Fees. Paragraph 4.2 of the License
                           Agreement is hereby amended to strike the period at
                           the end of subsection (c) and add the following after
                           the word "aggregate":

                           "; and

                                    (d) the sum of $[***] which sum shall be
                           payable without regard to the limitation set forth in
                           the preamble of this Section 4.2 relating to
                           termination and which sum shall be payable in four
                           (4) equal installments of $[***] on the following
                           dates: (i) the Effective Date; (ii) April 30, 2002;
                           (iii) July 31, 2002; and (iv) October 31, 2002.

                           Paragraph 4.8 of the Agreement shall be applicable to
                           any payments that are overdue and payable to Licensor
                           under Paragraph 4.2(d) of this Agreement."

                  4.       Royalties on Account of Net Sales. Paragraph 4.3 of
                           the License Agreement is hereby amended and restated
                           in its entirety to add the following after the
                           heading of Paragraph 4.3:

                           "4.3.1   Net Sales Made by Licensee.

                                       3
<PAGE>

                                    (a) Licensee agrees to pay Licensor
                           royalties as follows based on the annual Net Sales
                           from the sale of Products: (i) [***]% of Net Sales
                           until Licensee has received on account of Net Sales a
                           total amount equal to the Recoupment Amount (as
                           defined below), then (ii) [***]% of all Net Sales in
                           excess of the Recoupment Amount.

                                    (b) For purposes of this Agreement, the term
                           "Recoupment Amount" shall mean the amount derived
                           from the following calculation:

                                    Recoupment Amount = $[***] U.S. PLUS ($[***]
                                    TIMES the number of Products sold from and
                                    after the Effective Date MINUS $[***] TIMES
                                    the number of Products in Licensee's
                                    inventory on the Effective Date) PLUS
                                    (Earned Royalties paid to Licensor from and
                                    after the Effective Date) MINUS (the
                                    Proceeds, if any, that Licensee receives
                                    from Merial as an upfront fee or other
                                    payment for entering into the Distribution
                                    Agreement).

                           4.3.2 Net Sales Made by a Third-Party Transferee in
                  the Event of a Transfer.

                                    (a) In the event that a Transfer with a
                           Third-Party Transferee is consummated, the
                           Third-Party Transferee shall, notwithstanding and
                           without regard to Paragraph 4.3.1, pay Licensor a
                           royalty of [***] of Net Sales from the sale of
                           Products by such Third-Party Transferee or its
                           Affiliate (as hereinafter defined), whichever is
                           greater. The term "Affiliate" shall mean (i) any
                           business entity fifty percent (50%) or more of which
                           is owned directly or indirectly by a Third-Party
                           Transferee; (ii) any business entity which directly
                           or indirectly owns fifty percent (50%) or more of a
                           Third-Party Transferee; or (iii) any business entity
                           under the direct or indirect control of any business
                           entity described in (i) or (ii) above.

                                    (b) In the event that a Transfer with a
                           Third-Party Transferee is consummated, Paragraphs
                           2.4(c) and 4.3.1 shall no longer apply or be of any
                           force or effect with respect to any Third-Party
                           Transferee.

                           4.3.3 Net Sales Made by an Acquirer in the Event of a
                  Transfer.

                                    (a) In the event that a Transfer with an
                           Acquirer is consummated, the Acquirer shall,
                           notwithstanding and without regard to Paragraph
                           4.3.1, pay Licensor a royalty of [***]% of Net Sales
                           from the sale of Products by such Acquirer.

                                    (b) In the event that a Transfer with an
                           Acquirer is consummated, Paragraph 4.3.1 shall no
                           longer apply or be of any force or effect with
                           respect to any Acquirer."

                                       4
<PAGE>

                  5.       Minimum Obligations in the Event of a Transfer.
                           Paragraph 4.5 of the License Agreement is hereby
                           amended and restated in its entirety to read as
                           follows:

                           "4.5 Minimum Royalty Obligation of "Third-Party
                           Transferee" in the Event of a Transfer. In the event
                           that a Transfer with a Third-Party Transferee is
                           consummated, the Third-Party Transferee shall, in
                           order to maintain its rights hereunder, pay Licensor
                           minimum royalties in accordance with Paragraphs 4.4,
                           4.7 and the following:

                           Minimum Royalty Payment   Minimum Royalty Payment
                             Per Contract Year         Per Contract Quarter
                             -----------------         --------------------
                                 $[***]                       $[***]"

                  6.       Termination. Paragraph 7.2 of the License Agreement
                           is hereby amended and restated as follows:

                                    "(a) If Licensee is in material default of
                           any of its obligations under this Agreement, Licensor
                           shall have the right to terminate this Agreement by
                           giving thirty (30) days' written notice of
                           termination specifying the reason for termination,
                           provided that such notice will be of no effect and
                           termination will not occur if the specified default
                           is cured prior to the expiration of said thirty (30)
                           day period.

                                    (b) In the event that Licensee does not sell
                           an "average" of [***] Products each calendar year
                           commencing January 1, 2002 through December 31, 2004,
                           measured on a cumulative basis and adjusted each
                           calendar year during the term hereof in order to
                           account for fluctuations in sales from year to year,
                           Licensor shall have, as its sole and exclusive remedy
                           and without any other recourse against Licensee as a
                           result of such event, the right to terminate this
                           Agreement by giving thirty (30) days' written notice
                           of termination.

                                    (c) In the event that Licensee does not sell
                           Products in each calendar year following December 31,
                           2004 sufficient to generate annual Net Sales of at
                           least $[***], Licensor shall have, as its sole and
                           exclusive remedy and without any other recourse
                           against Licensee as a result of such event, the right
                           to terminate this Agreement by giving thirty (30)
                           days' written notice of termination.

                                    (d) In the event that a Transfer with an
                           Acquirer is consummated and such Licensee does not
                           either sell Products in each calendar year following
                           December 31, 2003 sufficient to generate annual Net
                           Sales of at least $[***], or, alternatively, pay
                           Licensor the minimum royalties applicable to a
                           Third-Party Transferee set forth and contemplated by
                           Paragraphs 4.5 and 4.7, Licensor shall have, as its
                           sole and exclusive

                                       5
<PAGE>

                           remedy and without any other recourse against
                           Licensee as a result of such event, the right to
                           terminate this Agreement by giving thirty (30) days'
                           written notice of termination."

                  7.       Continued Obligations. Paragraph 7.4 of the License
                           Agreement is hereby amended to add the number
                           "4.2(d)" after the number 3 and before the number 5
                           in the Paragraph such that Paragraph 4.2(d) as
                           amended in Section A.3. of this Addendum shall
                           survive the termination of the License Agreement.

                  8.       Notices. Paragraph 9.5 of the License Agreement is
                           amended to change the mailing and facsimile address
                           of the Licensee such that the following shall be
                           substituted for that which is currently set forth
                           therein:

                           "If to Licensee: CNS, Inc.
                                            7615 Smetana Lane
                                            Eden Prairie, MN 55344
                                            Attn:  Marti Morfitt
                                            Fax No.: (952) 229-1701"

         B. Waiver and Release. In furtherance and not in limitation of the
amendment set forth in and contemplated by Section A.5. above, Licensor hereby
waives any and all right under the License Agreement to any minimum royalties
that may be due, become due or have accrued or become due on or before the
Effective Date, and hereby releases Licensee from any obligation, liability or
responsibility with respect to the same.

         C. Permitted Sublicense in Favor of Merial or its Affiliates. To the
extent that the grant of a sublicense by Licensee of any of the rights granted
by Licensor to Licensee under or in connection with the License Agreement is
necessary or desirable for Licensee to implement the Distribution Relationship
with Merial or its Affiliates, Paragraph 2.3 of the License Agreement is hereby
amended to permit Licensee to grant any such a sublicense to Merial or its
Affiliates.

         D. Limited Cross-Licenses.

         1. CNS. In the event that (i) Licensee terminates the License Agreement
in accordance with Paragraph 7.3(a), or (ii) Licensor terminates the License
Agreement in accordance with 7.2, the parties hereto agree that the following
shall apply:

                  a. License and Field of Use Restriction. Licensee shall grant
         to Licensor a limited, exclusive and worldwide license and/or
         sublicense to make, have made, use, sell or offer for sale products
         utilizing any of the inventions within the scope of any valid claim in
         the United States Patents identified on Schedule A (the "CNS Licensed
         Patents") or from any continuations, re-exams or re-issues relating to
         those patents together with any and all foreign counterparts; provided,
         however, that the license and/or sublicense granted hereunder shall be
         limited solely to the field of equine nasal support products or devices
         ("Licensor's Field of Use").

                                       6
<PAGE>

                  b. Further Sublicenses and Assignments. Except as may be
         necessary or desirable to manufacture or have manufactured the equine
         nasal support products or devices, Licensor shall have no right to
         sublicense or assign any of the rights granted by Licensee to Licensor
         with respect to any of the CNS Licensed Patents; provided, however,
         that Licensor may assign, convey or transfer any and all of its rights
         under this Section D of this Addendum to a successor in interest to all
         of the assets, capital securities or membership interests of Licensor.

                  c. Term. The licenses and/or sublicenses granted hereunder
         shall commence upon the termination of the License Agreement by
         Licensor or Licensee in accordance with Paragraph 7 and shall expire,
         unless earlier terminated pursuant to subsection (e) below, upon the
         earlier of: (i) the expiration of the last of the CNS Licensed Patents
         to expire; or (ii) the termination of Licensee's rights with respect
         any of the CNS Licensed Patents.

                  d. Royalties. Licensor agrees to pay Licensee royalties based
         upon the Net Sales from the sale of equine nasal support products or
         devices of [***]% of Net Sales that, but for the license granted
         hereunder, would infringe any claims of the CNS Licensed Patents. All
         payments shall be due and payable to Licensee on a quarterly basis, and
         the provisions of Paragraphs 4.4, 4.8, 4.9 and 4.10 of the License
         Agreement shall be applicable and inure to the benefit of Licensee.

                  e. Termination. If Licensor is in material default of any of
         its obligations under this Section D.1., Licensee shall have the right
         to terminate the licenses and/or sublicenses granted hereunder by
         giving thirty (30) days' written notice of termination specifying the
         reason for termination, provided that such notice will be of no effect
         and termination will not occur if the specified default is cured prior
         to the expiration of said thirty (30) day notice period.

         2. WinEase. In the event that (i) Licensee terminates the License
Agreement in accordance with Paragraph 7.3(a), (ii) Licensor terminates the
License Agreement in accordance with 7.2, or (iii) Licensee enters into a
transaction that operates to effectuate a Transfer with a Third-Party
Transferee, the parties hereto agree that the following shall apply:

                  a. License and Field of Use Restriction. Licensor shall grant
         to Licensee a limited, exclusive and worldwide license and/or
         sublicense to make, have made, use, sell or offer for sale products
         utilizing any of the inventions within the scope of any valid claim in
         the United States patents and any patents which issue or have issued
         from the applications listed on Schedule B of this Addendum or from any
         continuations, re-exams or re-issues relating to those patents and
         applications, together with any and all foreign counterparts (the
         "WinEase Patents"); provided, however, that the licenses and/or
         sublicenses granted hereunder shall be limited solely to the field of
         human nasal dilation products or devices ("Licensee's Field of Use").

                  b. Further Sublicenses and Assignments. Except as may be
         necessary or desirable to manufacture or have manufactured any human
         nasal dilation products or devices, Licensee shall have no right to
         sublicense or assign any of the rights granted by

                                       7
<PAGE>

         Licensor to Licensee with respect to any of the WinEase Patents;
         provided, however, that Licensee may assign, convey or transfer any and
         all of its rights under Section D of this Addendum to a successor in
         interest to all of the assets of Licensee relating to its human nasal
         dilation business or to all of its capital stock.

                  c. Term. The licenses and/or sublicenses granted hereunder
         shall commence upon the termination of the License Agreement by
         Licensor or Licensee in accordance with Paragraph 7 and shall expire,
         unless earlier terminated pursuant to subsection (e) below, upon the
         expiration of the last of the WinEase Patents to expire.

                  d. Royalties. Licensee agrees to pay Licensor royalties of
         [***]% of Net Sales from the sale of those human nasal dilation
         products or devices that, but for the license granted hereunder, would
         infringe any claims of the WinEase Patents (the "Covered CNS
         Products"); provided, however, that Licensee shall not be obligated to
         pay any royalties with respect to the sale of any Covered CNS Products
         or with respect to the use of any of WinEase Patents that relate to or
         result from any patent application filed between March 13, 1999 and the
         Effective Date (the "Excluded Patents"), it being understood and agreed
         that the licenses and/or sublicenses granted by Licensor to Licensee
         with respect to such Excluded Patents shall be on a royalty-free basis.
         All payments shall be due and payable to Licensor on a quarterly basis,
         and the provisions of Paragraphs 4.4, 4.8, 4.9 and 4.10 of the License
         Agreement shall be applicable and inure to the benefit of Licensor.

                  e. Termination. If Licensee is in material default of any of
         its obligations under this Section D.1., Licensor shall have the right
         to terminate the licenses and/or sublicenses granted hereunder by
         giving thirty (30) days' written notice of termination specifying the
         reason for termination, provided that such notice will be of no effect
         and termination will not occur if the specified default is cured prior
         to the expiration of said thirty (30) day notice period.

         3. Miscellaneous. The following provisions shall apply in the event
that the either paragraph 1 or paragraph 2 of this Section D becomes applicable:

                  a. Right to Abate Infringement of Excluded Patents. In the
         event that either Licensor or Licensee become aware of any activity on
         the part of any third party which may constitute infringement of any of
         the Excluded Patents, such party shall give the other party written
         notice thereof. In the event of an infringement in Licensee's Field of
         Use, Licensee shall (for so long as its rights under Paragraph D.2 are
         in force and effect), at its sole discretion and expense, have the
         first exclusive right to initiate and thereafter maintain reasonable
         efforts to prevent and abate such infringement, including the
         initiation of appropriate civil action for infringement and the taking
         of such other action as it may determine to be necessary or desirable
         to enforce any of the Excluded Patents and/or any rights thereunder or
         relating thereto. In such event, (i) Licensor agrees to fully cooperate
         with Licensee and will permit the use of its name in, and as a party
         to, all such suits and execute all pleadings, documents and other
         papers necessary or desirable in conjunction therewith, and (ii)
         Licensee shall receive the full benefits of any action it takes
         pursuant to this paragraph, including retaining all sums recovered in
         any

                                       8
<PAGE>

         such suit or in settlement thereof. In the event that Licensee fails or
         refuses to take or cause to be taken any such measures against any
         third party after six (6) months from the date of receipt of written
         notice to Licensee by Licensor of such infringement, Licensor may take
         such legal action in its own name and at its own expense upon giving
         twenty-one (21) days advance, written notice of its intention to do so.
         In this case, all damages recovered as a result of such action by
         Licensor shall be and become the property of Licensor. In the event
         that Licensor takes any action to prevent or abate an infringement by a
         third party of any of the Excluded Patents under this paragraph or
         otherwise, Licensee will fully cooperate with Licensor and, to the
         extent necessary to maintain suit under applicable law, permit the use
         of its name in, and as a party to, all such suits and execute all
         pleadings, documents and other papers necessary or desirable in
         conjunction therewith. If Licensee litigates any matter relating to the
         Excluded Patents under this paragraph or otherwise, it shall first
         provide Licensor with ten (10) days advance written notice of its
         intention to commence such litigation which notice shall identify the
         name of the alleged third-party infringer, the infringing product and
         the patent involved. If either party litigates any matter relating to
         the Excluded Patents, the other party may, at its option and its cost
         and expense, participate in meetings with the litigating party and/or
         its counsel and receive all pleadings, documents and other related
         papers useful for the purposes of keeping the other party informed of
         the status of any proceedings commenced by the litigating party.

                  b. General Provisions. All of the provisions of Section 9 of
         the License Agreement shall apply to the agreements contained in
         Section D of this Addendum.

                  c. Survival. Section D of this Addendum shall survive the
         termination of the License Agreement.

         E. No Impairment. The provisions set forth in the License Agreement and
not amended or altered by this Addendum shall remain in full force and effect
and shall apply to this Addendum unless to do so would be inconsistent with the
intentions of the parties as expressed in this Addendum. This Addendum
supersedes and replaces any and all other amendments, whether written or oral,
to the License Agreement that have been entered into by the parties prior to the
date hereof.

         F. Further Assurances. The parties agree to cooperate and take such
actions and execute such other documents and instruments as may be reasonably
requested by the other party hereto in order to consummate the transactions and
agreements set forth in or contemplated by this Addendum.

         G. Recitals. The Recitals set forth in this Addendum are true and
correct, incorporated herein and made a part of the Addendum and the parties'
agreement as set forth above.

         H. Capitalized Terms. Capitalized terms in this Addendum that are not
defined shall have the meaning ascribed to such terms in the License Agreement
unless the context requires otherwise.

                                       9
<PAGE>

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

                                 CNS, INC.

                                 By:    /s/   Daniel E. Cohen
                                   ---------------------------------------
                                 Its:     Chairman
                                     --------------------------------------

                                 WINEASE, LLC

                                 By:   /s/  Edward F. Blach
                                    ---------------------------------------
                                 Its:   President/CEO
                                     --------------------------------------

                                       10
<PAGE>

                                   SCHEDULE A
                                   ----------

                              CNS LICENSED PATENTS
                              --------------------

United States Patent Nos.:

1.       5,533,499
2.       5,533,503
3.       5,653,224
4.       5,476,091
5.       5,549,103
6.       5,611,333
7.       6,318,362

                                       11

<PAGE>

                                   SCHEDULE B
                                   ----------

                                 WINEASE PATENTS
                                 ---------------

United States Patent Nos.:

1.       5,913,873
2.       6,017,457
3.       6,203,560
4.       6,033,422

United States Pending Patent Application Nos.:

1.       09/438,676
2.       09/264,464
3.       09/379,425
4.       09/713,308

                                       12

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