Document:

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                                                                    EXHIBIT 10.3

                              INTERMET CORPORATION
                           DEFERRED COMPENSATION PLAN

                        ARTICLE I - ESTABLISHMENT OF PLAN

         1.1 ESTABLISHMENT OF PLAN. The Employer hereby establishes the INTERMET
Corporation Deferred Compensation Plan (hereinafter referred to as the "Plan")
for the benefit of certain Key Management Employees of INTERMET Corporation.

                          ARTICLE II - PURPOSE OF PLAN

         2.1 PURPOSE OF PLAN. The Employer intends and desires by the adoption
of this Plan to recognize the value to the Employer of the past and present
services of Eligible Employees covered by the Plan and to encourage and assure
their continued service with the Employer by making provisions for their future
retirement security by allowing Eligible Employees to elect to defer payment of
a portion of regular compensation and/or performance bonus (if any).

             The Plan is intended to be a "top-hat" plan, that is, an unfunded
deferred compensation plan maintained for a select group of management or highly
compensated employees, under Sections 201(2), 301(a)(3) and 401(a)(1) of the
Employee Retirement Income Security Act of 1974 (ERISA).

         2.2 EFFECTIVE DATE. The Effective Date of the Plan is December 1, 1999.

                            ARTICLE III - DEFINITIONS

         3.1 "ACCOUNT" means the account on the books of the Employer to which
an Eligible Employee's salary reduction contributions under Article IV are
recorded. Each account shall be adjusted for investment earnings or loss as
indicated in Article VI. Each Account shall be held in the Employer's name and
remain a general asset of the Employer until distributed pursuant to Article
VII. Amounts attributable to the Account of each Eligible Employee remain
subject to the claims of the general creditors of the Employer at all times.

         3.2 "BENEFICIARY" means the person(s) entitled hereunder to receive the
benefits which may be payable upon or after a Participant's death.

         3.3 "BOARD" means the Board of Directors of the Employer.

         3.4 "ELIGIBLE EMPLOYEE" means, for any Plan Year, an employee of the
Employer who is a Key Management Employee and is eligible to participate in the
Plan as determine exclusively by the Chief Executive Officer of the Employer.

                                      -1-

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         3.5 "EMPLOYER" means INTERMET Corporation, its affiliates and
subsidiaries, or any company which is a successor to INTERMET Corporation as a
result of merger, consolidation, liquidation, transfer of assets, or other
reorganization.

         3.6 "KEY MANAGEMENT EMPLOYEE" means those select management employees
who contribute materially to the continued growth, development, and future
success of the Company.

         3.7 "NORMAL RETIREMENT AGE" means the date the Participant attains age
65.

         3.8 "PLAN ADMINISTRATOR" means the person(s) or entity appointed by the
Employer to administer the Plan, or if the Employer fails to make such
appointment, the Employer.

         3.9 "PLAN YEAR" means the twelve (12) month period ending each December
31st during which the Plan is in effect.

         3.10 "PARTICIPANT" means any Eligible Employee who becomes entitled to
participate in the Plan.

         3.11 "SEPARATION FROM SERVICE" means the severance of a Participant's
employment with the Employer for any reason, including, but not limited to
death, retirement, or disability.

                   ARTICLE IV - SALARY REDUCTION CONTRIBUTIONS

         An Eligible Employee may, for any Plan Year in which he or she is an
Eligible Employee, elect to accept a salary reduction in base compensation
and/or bonus payments from the Employer equal to a dollar amount or whole
percentage of his or her base compensation and/or bonus totaling no more than
$200,000 for the year. No annual salary reduction election will be effective in
the event that the requested salary reduction election is less than $20,000.

         Salary reduction elections under this Plan must be made before the
beginning of the Plan Year to which they apply. Once a Plan Year begins, salary
reduction elections for that year under this Plan may not be amended or revoked,
nor may salary reductions be suspended. The Employer will credit to each
Eligible Employee's Account the amount of that Eligible Employee's salary
reduction contributions under this Article. The entire bonus will be deferred in
the event that the bonus payment deferral election exceeds the available bonus.

                               ARTICLE V - VESTING

         A Participant shall always be one-hundred percent (100%) vested in and
have a nonforfeitable right to the amount of his or her Account.

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                     ARTICLE VI -ACCOUNTING AND INVESTMENTS

         6.1 INVESTMENT ELECTION BY PARTICIPANT. Each Participant will
self-direct the investment of his or her Account. A Participant shall indicate
his or her investment selection(s) by filing a written designation with the Plan
Administrator on a form provided by the Plan Administrator. A Participant may
self-direct among the same investment fund options that are available under the
Employer's 401(k) plan.

         6.2 FREQUENCY OF INVESTMENT ELECTION. With respect to future
contributions, a Participant may file a new investment election at any time,
which shall become effective as of the first day of the calendar quarter
following the written designation.

             In the absence of a new designation, future contributions shall be
treated as invested among available funds in the same proportions as specified
in the Participant's most recently filed election.

             With respect to his or her existing Account balance, a Participant
may change his or her investment designation and reinvest such Account among
available funds at any time upon submitting a written request. Such request
shall be effective on the first day of the calendar quarter following acceptance
by the Plan Administrator of the Participant's investment designation.

         6.3 ABSENCE OF SELF-DIRECTION BY PARTICIPANT. In the absence of an
investment election, a Participant's Account will be invested in a money market
fund.

         6.4 INVESTMENT INCOME. Periodically, each Account will be adjusted,
with either an increase or a decrease, to reflect the related investment
earnings (or losses) within the Account. Investment earnings (or losses)
include, but are not limited to, interest, dividends, realized and unrealized
appreciation, and expenses (if any) within the Account.

         6.5 DISTRIBUTIONS. Each Account will be reduced for any distribution of
benefits to Participants or Beneficiaries pursuant to Article VII.

                     ARTICLE VII - DISTRIBUTION OF BENEFITS

         7.1 PAYMENT OF BENEFITS. Distribution of benefits from the Plan shall
begin on the 1st day of the calendar quarter following the calendar quarter that
the Participant incurs a Separation from Service, and continue quarterly
thereafter. A Participant is only entitled to a distribution of benefits to the
extent of the Participant's Account. Distribution of benefits shall be made in
twelve (12) quarterly payments over a three-year period, each payment to
represent a prorata interest in the Account. For example, the first payment will
be 1/12th of the entire Account, while the second payment will be 1/11th, of the
entire Account. At the exclusive discretion of the Board, payments of a
Participant's Account may be paid in a lump sum when the

                                      -3-

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Participant incurs a Separation from Service.

         7.2 DISTRIBUTION UPON DEATH. If the Participant dies before
distribution of his or her Account commences, any benefits payable after the
Participant's death will begin on the 1st day of the calendar quarter following
the calendar quarter of the Participant's death, and continue quarterly
thereafter in accordance with Section 7.1.

         7.3 CHANGE IN COMPANY OWNERSHIP. If the Employer ownership changes, and
the successor employer fails to adopt the plan, then all Participant Accounts
will be distributed immediately. For purposes of this Section, change in
Employee ownership shall mean any merger, combination, or purchase, wherein a
person or entity acquires an interest in the Employer of more than 50% of the
ordinary voting power of the Employer.

                     ARTICLE VIII - BENEFICIARY INFORMATION

         8.1 DESIGNATION. A Participant shall have the right to designate a
Beneficiary, and amend or revoke such designation at any time, in writing. Such
designation, amendment or revocation shall be effective upon receipt by the
Administrator.

         8.2 FAILURE TO DESIGNATE A BENEFICIARY. If no designated Beneficiary
survives the Participant and benefits are payable following the Participant's
death, the Administrator shall direct that the payment of benefits be made to
the person or persons in the first of the following classes of successive
preference Beneficiaries.

                  The Participant's:
                  -  spouse,
                  -  issue, per stirpes, and
                  -  estate.

                   ARTICLE XI - PAYMENTS TO PLAN PARTICIPANTS
                             AND THEIR BENEFICIARIES

         9.1 BENEFITS PAYABLE TO PLAN PARTICIPANTS. The Employer shall make
payments to the Plan Participants and their Beneficiaries in accordance with
Articles VII and VIII. The Employer shall make provisions for the reporting and
withholding of any federal, state or local taxes that may be required to be
withheld with respect to the payment of benefits pursuant to the terms of the
Plan and shall pay amounts withheld to the appropriate taxing authorities.

         9.2 ENTITLEMENT TO BENEFITS. The entitlement of a Plan Participant or
Beneficiary(ies) to benefits under the Plan shall be determined by the Plan
Administrator or such party as it shall designate under the Plan, and any claim
for such benefits shall be considered and reviewed under the procedures set out
in the Plan.

                                      -4-

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         9.3 DIRECT PAYMENT OF BENEFITS. The Employer will make payment of
benefits directly to Plan Participants or their Beneficiaries as they become due
under the terms of the Plan.

         9.4 FICA TAXABILITY. The liability for tax under the Federal Insurance
Contributions Act (FICA) to which Plan benefits may become subject will be
shared equally by Employer and Participant. Contributions will be subject to
FICA in the year when payment would have otherwise been made to the Eligible
Employee, but for the election to defer under this Plan.

                       ARTICLE X - ACCOUNTING BY EMPLOYER

         The Employer shall keep accurate and detailed records of all
investments, receipts, disbursements, and all other Plan transactions.

                           ARTICLE XI - ADMINISTRATION

         11.1 PLAN ADMINISTRATOR. The Plan Administrator shall administer,
construe, and interpret this Plan and shall determine, subject to the provisions
of this Plan, the Eligible Employees who shall participate in the Plan from time
to time and the amount, if any, due an Eligible Employee (or his or her
beneficiary) under this Plan. The Plan Administrator shall not be liable for any
act done or determination made in good faith. The Plan Administrator who is a
Participant in this Plan may vote on matters affecting his or her personal
benefit under this Plan, but any such member shall otherwise be fully entitled
to act in matters arising or affecting this Plan notwithstanding his or her
participation herein. In carrying out its duties herein, the Plan Administrator
shall have discretionary authority to exercise all powers and to make all
determinations, consistent with the terms of the Plan, in all matters entrusted
to it, and its determinations shall be given deference and shall be final and
binding on all interested parties.

         11.2 CLAIMS PROCEDURES.

                  (A) NOTICE OF CLAIM. Any Eligible Employee or beneficiary, or
         the duly authorized representative of an Eligible Employee or
         beneficiary, may file with the Plan Administrator a claim for a Plan
         benefit. Such a claim must be in writing on a form provided by the Plan
         Administrator and must be delivered to the Plan Administrator, in
         person or by mail, postage prepaid. Within ninety (90) days after the
         receipt of such a claim, the Plan Administrator shall send to the
         claimant, by mail, postage prepaid, a notice of the granting or the
         denying, in whole or in part, of such claim unless special
         circumstances require an extension of time for processing the claim. In
         no event may the extension exceed ninety (90) days from the end of the
         initial period. If such an extension is necessary, the claimant will be
         given a written notice to this effect prior to the expiration of the
         initial ninety (90) day period. The Plan Administrator shall

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         have full discretion to deny or grant a claim in whole or in part in
         accordance with the terms of the Plan. If notice of the denial of a
         claim is not furnished in accordance with this Section, the claim shall
         be denied and the claimant shall be permitted to exercise his or her
         right to review pursuant to Section 11.2(c) and 11.2(d) of the Plan, as
         applicable.

                  (B) ACTION ON CLAIM. The Plan Administrator shall provide to
         every claimant who is denied a claim for benefits a written notice
         setting forth, in a manner calculated to be understood by the claimant;

                      (i) The specific reason or reasons for the denial;

                      (ii) A specific reference to the pertinent Plan provisions
                  on which the denial is based;

                      (iii) A description of any additional material or
                  information necessary of the claimant to perfect the claim and
                  an explanation of why such material or information is
                  necessary; and

                      (iv) An explanation of the Plan's claim review procedure.

                  (C) REVIEW OF DENIAL. Within sixty (60) days after the receipt
         by a claimant of written notification of the denial (in whole or in
         part) of a claim, the claimant or the claimant's duly authorized
         representative, upon written application to the Plan Administrator,
         delivered in person or by certified mail, postage prepaid, may review
         pertinent documents and may submit to the Plan Administrator, in
         writing, issues and comments concerning the claim.

                  (D) DECISION ON REVIEW. Upon the Plan Administrator's receipt
         of a notice of a request for review, the Plan Administrator shall make
         a prompt decision on the review and shall communicate the decision on
         review in writing to the claimant. The decision on review shall be
         written in a manner calculated to be understood by the claimant and
         shall include specific reasons for the decision and specific references
         to the pertinent Plan provisions on which the decision is based. The
         decision on review shall be made no later than sixty (60) days after
         the Plan Administrator's receipt of a request for a review, unless
         special circumstances require an extension of time for processing, in
         which case a decision shall be rendered no later than one hundred
         twenty (120) days after receipt of the request for review. If an
         extension is necessary, the claimant shall be given written notice of
         the extension by the Plan Administrator prior to the expiration of the
         initial sixty (60) day period. If notice of the decision on review is
         not furnished in accordance with this Section, the claim shall be
         deemed denied on review.

                                      -6-

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                     ARTICLE XII - MISCELLANEOUS PROVISIONS

         12.1 LIMITATION OF RIGHTS. Nothing contained in this Plan shall be
construed to:

              (A) limit in any way the right of the Employer to terminate an
         Eligible Employee's employment at any time; or

              (B) be evidence of any agreement or understanding, express or
         implied, that the Employer will employ an Eligible Employee in any
         particular position or at any particular rate of remuneration.

         12.2 NONALIENATION OF BENEFITS; NO WITHDRAWALS. No amounts payable
hereunder may be assigned, pledged, mortgaged, or hypothecated, and, to the
extent permitted by law, no such amounts shall be subject to legal process or
attachment of the payment of any claims against any person entitled to receive
the same. No amounts credited to an Eligible Employee's Account may be withdrawn
or paid to the Eligible Employee prior to his or her Separation from Service.

         12.3 AMENDMENT OR TERMINATION OF PLAN. Although it is expected that
this Plan shall continue indefinitely, the Board may amend this Plan from time
to time in any respect, and may at any time terminate the Plan in its entirety;
provided, however, that an Eligible Employee's Account as of the date of any
such amendment or termination may not be reduced nor may any such amendment or
termination adversely affect an Eligible Employee's entitlement to his or her
Account as of such date.

         12.4 GENDER AND NUMBER. Wherever used in this Plan, the masculine shall
be deemed to include the feminine and the singular shall be deemed to include
the plural, unless the context clearly indicates otherwise.

         12.5 LAW GOVERNING. This Plan shall be construed in accordance with and
governed by the laws of the State of Michigan to the extent such laws are not
preempted by federal law.

                                      -7-

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         EMPLOYER:

INTERMET CORPORATION

APPROVED BY BOARD OF DIRECTORS COMPENSATION COMMITTEE

            /s/  Thomas H. Jeffs II                     December 2, 1999
            -----------------------                     ----------------
            Member                                      Date

            /s/  Harold C. McKenzie, Jr.                December 2, 1999
            ----------------------------                ----------------
            Member                                      Date

            /s/  John H. Reed                           December 2, 1999
            ------------------                          ----------------
            Member                                      Date

                                      -8-<PAGE>   1
                                                                 EXHIBIT 10.5(b)

INCENTIVE COMPENSATION AGREEMENT dated as of March 14, 2000 (this "Agreement")
between:

(a)    TELEX COMMUNICATIONS GROUP, INC., a Delaware corporation (the "Company");

(b)    NED C. JACKSON ("Jackson").

Certain capitalized terms used in this Agreement shall have the meanings given
such terms on Schedule A hereto, unless otherwise defined herein.

                                   Witnesseth:

Whereas, the Company has requested that Jackson serve as President of the
         Company; and

Whereas, in order to inducement Jackson to serve as the President of the
         Company, the Company proposes to executed and deliver this Agreement.

Now, therefore, in consideration of the mutual benefits to be derived and the
representations and warranties, conditions and promises herein contained, and
intending to be legally bound hereby, the parties hereto agree as follows:

1.   Triggering Event Incentive Payment.

     (a)   Upon the occurrence of a Triggering Event, Jackson shall be entitled
           to receive from the Company a payment in cash (the "Triggering Event
           Incentive Payment") in an amount determined by multiplying (i) an
           amount equal to the Greenwich Proceeds less $141 million and an
           allocable portion of the amount of the Triggering Event Incentive
           Payment, by (ii) the Applicable Percentage.

     (b)   The "Applicable Percentage" shall be determined as set forth below
           based on the indicated Greenwich Proceeds:
<TABLE>

          <S>                                                                       <C>
           Greenwich Proceeds                                                         Applicable Percentage
           ------------------                                                         ---------------------

           Not greater than $200 million                                              1%

           Greater than $200 million                                                  2%
</TABLE>

           The calculation of the Triggering Event Incentive Payment is
           illustrated on Schedule B hereto.

     (c)   A "Triggering Event" shall be deemed to have occurred if the Company
           shall have effected any of the following transactions:

           (i)    (A) a merger or consolidation of the Company resulting in the
                  holders of the Common Stock of the Company as of immediately
                  prior to such transaction ceasing to own as of immediately
                  after the transaction more than 80% of the Common Stock of the
                  Company or its successor; or (B) a sale of all or
                  substantially all of the assets of the Company, including
                  without limitation a sale by

<PAGE>   2

                  the Company of more than 80% of the Common Stock of Telex
                  Communications, Inc.;

           (ii)   a sale or transfer by Greenwich I, LLC and/or  Greenwich  II,

                  LLC (other than transfers by Greenwich II, LLC to any
                  "Permitted Assignee" (as defined in the Stockholders and
                  Registration Rights Agreement as amended and restated as of
                  May 6, 1997), and other than transfers by Greenwich I, LLC to
                  any Person who would be a Permitted Assignee of Greenwich I,
                  LLC under the same definition if applied to Greenwich I, LLC),
                  together with sales and transfers by any Permitted Assignees,
                  in one or more transactions, of shares of the Common Stock
                  which represents more than 50% of shares of the Common Stock
                  owned by them as of the date hereof; or

           (iii)  a recapitalization of the Company resulting in a distribution
                  of cash or property to the holders of the Common Stock (a
                  "Recapitalization") and Greenwich Proceeds in an amount
                  greater than the sum of $141 million and an allocable portion
                  of the amount of the Triggering Event Incentive Payment that
                  would be payable upon the occurrence of such Triggering Event.

     (d)   "Greenwich  Proceeds"  shall mean the  aggregate  purchase  price,
           or exchange or conversion consideration, or distributions of cash or
           property, received by Greenwich I, LLC and Greenwich II, LLC
           (together "Greenwich"), in the Triggering Event, in respect of the
           Common Stock and the Series A Pay-in-Kind Preferred Stock, par value
           $0.01 per share (the "PIK Preferred Stock"), of the Company owned by
           Greenwich). In the event that a Triggering Event shall occur
           subsequent to the occurrence of a Recapitalization (where such
           previous Recapitalization did not itself constitute a Triggering
           Event), Greenwich Proceeds in the Triggering Event shall include also
           any distributions of cash or property to Greenwich in respect of the
           Common Stock or the PIK Preferred Stock made in connection with the
           prior Recapitalization. In the event of the occurrence of another
           Triggering Event subsequent to a Recapitalization which was a
           Triggering Event, the Triggering Event Incentive Payment and the
           Applicable Percentage shall be recalculated and adjusted, on a
           cumulative basis taking into account the prior Recapitalization
           Triggering Event and all such other distributions. In the event that
           the purchase price or exchange or conversion consideration paid, or
           the distributions received, in the transaction includes securities or
           assets, the value of such securities or assets for purposes of
           determining the Greenwich Proceeds shall be determined by the Board
           of Directors of the Company in its reasonable judgment. In such
           determination, all of the members of the Board of Directors may
           participate notwithstanding that any such director might be
           Affiliated or associated with, or have any financial or other
           interest or relationship with or in, Greenwich and the vote of such
           director shall be counted in such determination.

2.   Not an Employment Agreement; Etc.

     (a)   Nothing contained in this Agreement shall constitute an agreement of
           employment between the Company and Jackson or shall establish any
           entitlement of Jackson to employment by the Company.

<PAGE>   3

     (b)   The  rights of  Jackson  under this  Agreement  shall  terminate,
           and his entitlement to the Triggering Event Incentive Payment shall
           be automatically forfeited: (i) as of the date of the voluntary
           resignation by Jackson as President, the death of Jackson or the
           removal of Jackson as President for Cause or because of Jackson's
           Disability; or (ii) upon the occurrence of any Insolvency Event with
           respect to Jackson. However, if a Triggering Event occurs within one
           year following the death of Jackson or the removal of Jackson because
           of Jackson's Disability, and if the Triggering Event Incentive
           Payment would have been payable to Jackson but for his death, then
           the estate of Jackson shall be entitled to receive the Triggering
           Event Incentive Payment.

3.   Miscellaneous.

     (a)   This Agreement contains the entire agreement between the parties
           hereto with respect to the Triggering Event Incentive Payment and
           supersedes all prior arrangements or understandings with respect
           thereto.

     (b)   The descriptive headings of this Agreement are for convenience only
           and shall not control or affect the meaning or construction of any
           provision of this Agreement.

     (c)   All notices or other communications which are required or permitted
           under this Agreement shall be in writing and sufficient if delivered
           personally or sent by facsimile transmission, internationally
           recognized over-night courier or registered or certified mail,
           postage prepaid, addressed as follows:

<TABLE>

          <S><C>
           If to the Company:                                         with a copy to:

           9600 Aldrich Avenue South                                  Dechert Price & Rhoads
           Bloomington, Minnesota 55420                               30 Rockefeller Plaza
           Attention: Kris Bruer                                      New York. New York 10112
                         General Counsel                              Attention: Ronald R. Jewell
           Fax:       612-887-5588                                    Fax:       (212) 698-3599

           If Jackson:

           1976 Pine Ridge Drive
           West St. Paul, Minnesota 55118
           Fax :         651-453-1507
</TABLE>

           Any such notices or communications shall be deemed to have been
           received: (i) if delivered personally or sent by facsimile
           transmission (with transmission confirmed in a writing) or nationally
           recognized overnight courier; or (ii) if sent by registered or
           certified mail, on the date on which such mailing was received by the
           party to whom it was addressed. Any party may by notice as aforesaid
           change the address to which notices or other communications to it are
           to be delivered or mailed.

     (d)   This Agreement shall be governed by and construed in accordance with
           the Laws of the State of New York (other than the choice of law
           principles thereof).

<PAGE>   4

     (e)   Any action, suit or other proceeding initiated by any party hereto
           against the others under or in connection with this Agreement may be
           brought in any Federal or state court in the State of New York, as
           the party bringing such action, suit or proceeding shall elect,
           having jurisdiction over the subject matter thereof. The parties
           hereto hereby submit themselves to the jurisdiction of any such court
           for the purpose of any such action and agree that service of process
           on them in any such action, suit or proceeding may be effected by the
           means by which notices are to be given to it under this Agreement.

     (f)   The parties hereto acknowledge that the award of damages for any
           breach of the obligations undertaken by the parties hereto may be
           insufficient and inadequate and that the parties hereto shall be
           entitled to obtain specific performance of the obligations of the
           other parties under this Agreement or other injunctive relief, in
           addition to damages.

     (g)   Except as provided in the last sentence of Section 2(b) hereof, the
           rights of Jackson under this Agreement are personal to Jackson, and
           may not be assignable by Jackson, and any purported assignment by
           Jackson shall be void.

     (h)   Any waiver of any term or condition of this Agreement, or any
           amendment or supplementation of this Agreement, shall be effective
           only if in writing. A waiver of any breach or failure to enforce any
           of the terms or conditions of this Agreement shall not in any way
           affect, limit or waive a party's rights under this Agreement at any
           time to enforce strict compliance thereafter with every term or
           condition of this Agreement.

     (i)   In the event that any provision contained in this Agreement shall be
           determined to be invalid, illegal or unenforceable in any respect for
           any reason, the validity, legality and enforceability of any such
           provision in every other respect and the remaining provisions of this
           Agreement shall not, at the election of the party for whose benefit
           the provision exists, be in any way impaired.

     (j)   This Agreement may be executed in two or more counterparts, each of
           which shall be deemed an original, and it shall not be necessary in
           making proof of this Agreement or the terms hereof to produce or
           account for more than one of such counterparts.

                                    *      *      *

In witness whereof, the undersigned have executed this Agreement as of the date
first above written.

TELEX COMMUNICATIONS GROUP, INC.                    JACKSON:

By:
   ----------------------------------------         ---------------------------
     Edgar S. Woolard, Jr.                              Ned C. Jackson
     Chairman of the Board of Directors

<PAGE>   5

                                 SCHEDULE A TO INCENTIVE COMPENSATION AGREEMENT

                               Certain Definitions

For purposes of this Agreement, the following terms shall have the following
meanings:

"Affiliate" shall mean as to any Person, any other Person which directly or
indirectly controls, or is under common control with, or is controlled by, such
Person and, if such Person is an individual, shall mean also any member of the
immediate family (including parents, spouse, children and grandchildren) of such
individual and any trust whose principal beneficiary is such individual or one
or more members of such immediate family and any Person who is controlled by any
such member or trust. As used in this definition, "control" (including, with its
correlative meanings, "controlled by" and "under common control with") shall
mean possession, directly or indirectly, of power to direct or cause the
direction of the management or policies (whether through the ownership of
securities or partnership or other ownership interests, by contract or
otherwise); and any Person which owns directly or indirectly 10% or more of the
securities having ordinary voting power for the election of directors or other
governing body of a corporation or 10% or more of a partnership or other
ownership interest of any other Person will be deemed to control such
corporation or other Person.

"Agreement" shall mean this Agreement, as it may be amended or supplemented at
any time and from time to time after the date hereof.

"Applicable Percentage" shall have the meaning given such term in Section 1(b)
hereof.

" Cause", when used with respect to the removal of Jackson as President of the
Company, shall have the meaning given such term in the Employment Agreement
dated as of August 26, 1998 between the Company and Jackson.

"Common Stock" shall mean the Common Stock, par value $0.0005 per share, of the
Company, together with any shares of the capital stock of the Company issued in
substitution therefor.

"Company" shall mean Telex Communications  Group, Inc. and any successor Telex
Communications  Group, Inc. whether by merger, law or otherwise.

"Disability", when used with respect to the removal of Jackson as President of
the Company, shall have the meaning given such term in the Employment Agreement
dated as of August 26, 1998 between the Company and Jackson.

"Greenwich" and "Greenwich Proceeds" shall have the meaning given such term in
Section 1(e) hereof.

"Insolvency Event" shall mean and include any of the following affecting
Jackson: bankruptcy; reorganization; insolvency proceeding; receivership;
appointment of a trust or conservatorship; foreclosure on or seizure of assets;
enforcement of any lien, mortgage, collateral assignment or similar agreement or
security interest on any assets; liquidation or dissolution; suspension or
withdrawal of any banking or loan privileges or arrangements; or any similar
proceeding or action affecting Jackson or any of the assets of Jackson.

<PAGE>   6
                                                                               2

"Jackson" shall have the meaning given such term at the beginning of this
Agreement.

"Person" shall mean shall mean: any corporation, partnership, joint venture,
trust, unincorporated association or organization, business, enterprise, or
other entity; any individual; and any Government.

"PIK Preferred Stock" shall have the meaning given such terms in Section 1(d)
hereof.

"Recapitalization" shall have the meaning given such terms in Section 1(c)(iii)
hereof.

"Related Persons" when used with respect to any other Person shall mean and
include: members of the family of such Person (including without limitation
natural and adopted children, parents, grand-parents, siblings and children of
siblings); the estate of such Person upon such Person's death; descendents of
such Person; and trusts or similar entities created for the benefit of such
Person or any Related Person.

"Triggering Event" shall have the meaning given such term in Section 1(c)
hereof.

"Triggering Event Incentive Payment" shall have the meaning given such term in
Section 1(a) hereof.

<PAGE>   7

                                  SCHEDULE B TO INCENTIVE COMPENSATION AGREEMENT

            FORMULA FOR CALCULATION OF JACKSON INCENTIVE COMPENSATION

G   =   Greenwich Proceeds

P   =   The percentage of the outstanding Common Stock of Telex held by
        Greenwich as of immediately prior to the Triggering Event

J   =   Incentive Payment to Jackson

BASIC FORMULA ASSUMING G IS NOT GREATER THAN $200 MILLION:

       J = (G - 141,000,000 - (P x J)) x 0.01

                      or

       J = (0.01G - 1,410,000)  (1 + (0.01 x P))

For example, if the Greenwich Proceeds before calculation of the Triggering
Event Incentive Payment is $200 million, and assuming that the percentage of the
outstanding Common Stock of Telex held by Greenwich is 96.1227%, then the
Triggering Event Incentive Payment would be $584,382.76.

BASIC FORMULA ASSUMING G IS GREATER THAN $200 MILLION:

       J = (G - 141,000,000 - (P x J)) x 0.02

                      or

       J = (0.02G - 1,410,000)  (1 + (0.02 x P))

For example, if the Greenwich Proceeds before calculation of the Triggering
Event Incentive Payment is $250 million, and assuming that the percentage of the
outstanding Common Stock of Telex held by Greenwich is 96.1227%, then the
Triggering Event Incentive Payment would be $2,138,881.00.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00006-of-00352.parquet"}]]