Document:

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                                                                    EXHIBIT 10.5

                            EAGLE TEST SYSTEMS, INC.
                          PROFIT SHARING PLAN AND TRUST

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                                TABLE OF CONTENTS

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ARTICLE I           DEFINITIONS............................................       1
         1.1      "Act"....................................................       1
         1.2      "Administrator"..........................................       1
         1.3      "Affiliated Employer"....................................       1
         1.4      "Aggregate Account"......................................       1
         1.5      "Anniversary Date".......................................       2
         1.6      "Beneficiary"............................................       2
         1.7      "Code"...................................................       2
         1.8      "Compensation"...........................................       2
         1.9      "Contract" or "Policy"...................................       3
         1.10     "Early Retirement Date"..................................       3
         1.11     "Eligible Employee"......................................       3
         1.12     "Employee"...............................................       3
         1.13     "Employer"...............................................       3
         1.14     Fiduciary"...............................................       3
         1.15     "Fiscal Year"............................................       3
         1.16     "Forfeiture".............................................       3
         1.17     "Former Participant".....................................       4
         1.18     "415 Compensation".......................................       4
         1.19     "Highly Compensated Employee"............................       4
         1.20     "Highly Compensated Participant".........................       5
         1.21     "Hour of Service"........................................       5
         1.22     "Investment Manager".....................................       6
         1.23     "Key Employee"...........................................       6
         1.24     "Late Retirement Date"...................................       7
         1.25     "Leased Employee"........................................       7
         1.26     Non-Highly Compensated Participant"......................       8
         1.27     "Non-Key Employee".......................................       8
         1.28     "Normal Retirement Age"..................................       8
         1.29     "Normal Retirement Date".................................       8
         1.30     "1-Year Break in Service"................................       8
         1.31     "Participant"............................................       9
         1.32     "Participant's Account"..................................       9
         1.33     "Participant's Transfer/Rollover Account"................       9
         1.34     "Plan"...................................................       9
         1.35     "Plan Year"..............................................       9
         1.36     "Regulation".............................................       9
         1.37     "Retired Participant"....................................       9
         1.38     "Retirement Date"........................................       9
         1.39     "Terminated Participant".................................       9
         1.40     "Top Heavy Plan".........................................       9
         1.41     "Top Heavy Plan Year"....................................       9
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                                       (i)

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                                TABLE OF CONTENTS

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         1.42     "Trustee"...............................................      9
         1.43     "Trust Fund"............................................     10
         1.44     "Valuation Date"........................................     10
         1.45     "Vested"................................................     10
         1.46     "Year of Service".......................................     10

ARTICLE II          ADMINISTRATION........................................     10
         2.1      POWERS AND RESPONSIBILITIES OF THE EMPLOYER.............     10
         2.2      DESIGNATION OF ADMINISTRATIVE AUTHORITY.................     11
         2.3      POWERS AND DUTIES OF THE ADMINISTRATOR..................     11
         2.4      RECORDS AND REPORTS.....................................     12
         2.5      APPOINTMENT OF ADVISERS.................................     12
         2.6      PAYMENT OF EXPENSES.....................................     13
         2.7      CLAIMS PROCEDURE........................................     13
         2.8      CLAIMS REVIEW PROCEDURE.................................     13

ARTICLE III         ELIGIBILITY...........................................     13
         3.1      CONDITIONS OF ELIGIBILITY...............................     13
         3.2      EFFECTIVE DATE OF PARTICIPATION.........................     14
         3.3      DETERMINATION OF ELIGIBILITY............................     14
         3.4      TERMINATION OF ELIGIBILITY..............................     14
         3.5      OMISSION OF ELIGIBLE EMPLOYEE...........................     14
         3.6      INCLUSION OF INELIGIBLE EMPLOYEE........................     14
         3.7      REHIRED EMPLOYEES AND BREAKS IN SERVICE.................     14
         3.8      ELECTION NOT TO PARTICIPATE.............................     16

ARTICLE IV          CONTRIBUTION AND ALLOCATION...........................     16
         4.1      FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION...........     16
         4.2      TIME OF PAYMENT OF EMPLOYER CONTRIBUTION................     16
         4.3      ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS....     16
         4.4      MAXIMUM ANNUAL ADDITIONS................................     19
         4.5      ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS...............     21
         4.6      ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLAN     22
         4.7      QUALIFIED MILITARY SERVICE..............................     23

ARTICLE V           VALUATIONS............................................     24
         5.1      VALUATION OF THE TRUST FUND.............................     24
         5.2      METHOD OF VALUATION.....................................     24

ARTICLE VI          DETERMINATION AND DISTRIBUTION OF BENEFITS............     24
         6.1      DETERMINATION OF BENEFITS UPON RETIREMENT...............     24
         6.2      DETERMINATION OF BENEFITS UPON DEATH....................     24
         6.3      DISABILITY RETIREMENT BENEFITS..........................     26
         6.4      DETERMINATION OF BENEFITS UPON TERMINATION..............     26
         6.5      DISTRIBUTION OF BENEFITS................................     28
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                                      (ii)

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         6.6    DISTRIBUTION OF BENEFITS UPON DEATH..........................   30
         6.7    TIME OF SEGREGATION OR DISTRIBUTION..........................   30
         6.8    DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY............   30
         6.9    LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN...............   31
         6.10   PRE-RETIREMENT DISTRIBUTION..................................   31
         6.11   ADVANCE DISTRIBUTION FOR HARDSHIP............................   31
         6.12   QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION..............   32

ARTICLE VII       TRUSTEE....................................................   32
         7.1    BASIC RESPONSIBILITIES OF THE TRUSTEE........................   32
         7.2    INVESTMENT POWERS AND DUTIES OF THE TRUSTEE..................   33
         7.3    OTHER POWERS OF THE TRUSTEE..................................   33
         7.4    LOANS TO PARTICIPANTS........................................   36
         7.5    DUTIES OF THE TRUSTEE REGARDING PAYMENTS.....................   37
         7.6    TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES................   37
         7.7    ANNUAL REPORT OF THE TRUSTEE.................................   37
         7.8    AUDIT........................................................   38
         7.9    RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE...............   38
         7.10   TRANSFER OF INTEREST.........................................   39
         7.11   TRUSTEE INDEMNIFICATION......................................   39
         7.12   DIRECT ROLLOVER..............................................   40

ARTICLE VIII      AMENDMENT, TERMINATION AND MERGERS.........................   40
         8.1    AMENDMENT....................................................   40
         8.2    TERMINATION..................................................   41
         8.3    MERGER, CONSOLIDATION OR TRANSFER OF ASSETS..................   42

ARTICLE IX        TOP HEAVY..................................................   42
         9.1    TOP HEAVY PLAN REQUIREMENTS..................................   42
         9.2    DETERMINATION OF TOP HEAVY STATUS............................   42

ARTICLE X         MISCELLANEOUS..............................................   45
         10.1   PARTICIPANT'S RIGHTS.........................................   45
         10.2   ALIENATION...................................................   45
         10.3   CONSTRUCTION OF PLAN.........................................   46
         10.4   GENDER AND NUMBER............................................   46
         10.5   LEGAL ACTION.................................................   46
         10.6   PROHIBITION AGAINST DIVERSION OF FUNDS.......................   46
         10.7   EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE...................   47
         10.8   INSURER'S PROTECTIVE CLAUSE..................................   47
         10.9   RECEIPT AND RELEASE FOR PAYMENTS.............................   47
         10.10  ACTION BY THE EMPLOYER.......................................   47
         10.11  NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY...........   47
         10.12  HEADINGS.....................................................   48
         10.13  APPROVAL BY INTERNAL REVENUE SERVICE.........................   48
         10.14  UNIFORMITY...................................................   48
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ARTICLE XI        PARTICIPATING EMPLOYERS....................................   48
         11.1   ADOPTION BY OTHER EMPLOYERS..................................   48
         11.2   REQUIREMENTS OF PARTICIPATING EMPLOYERS......................   48
         11.3   DESIGNATION OF AGENT.........................................   49
         11.4   EMPLOYEE TRANSFERS...........................................   49
         11.5   PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES..........   49
         11.6   AMENDMENT....................................................   49
         11.7   DISCONTINUANCE OF PARTICIPATION..............................   49
         11.8   ADMINISTRATOR'S AUTHORITY....................................   50
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                                      (iv)

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                            EAGLE TEST SYSTEMS, INC.
                          PROFIT SHARING PLAN AND TRUST

      THIS AGREEMENT, hereby made and entered into this ____ day of
____________________________, by and between Eagle Test Systems, Inc. and Analog
Test Institute, Inc. (herein jointly referred to as the "Employer") and Leonard
Foxman (herein referred to as the "Trustee").

                              W I T N E S S E T H:

      WHEREAS, the Employer heretofore established a Profit Sharing Plan and
Trust effective October 1, 1982, (hereinafter called the "Effective Date") known
as Eagle Test Systems, Inc. Profit Sharing Plan and Trust (herein referred to as
the "Plan") in recognition of the contribution made to its successful operation
by its employees and for the exclusive benefit of its eligible employees; and

      WHEREAS, under the terms of the Plan, the Employer has the ability to
amend the Plan, provided the Trustee joins in such amendment if the provisions
of the Plan affecting the Trustee are amended;

      NOW, THEREFORE, effective October 1, 2001, except as otherwise provided,
the Employer and the Trustee in accordance with the provisions of the Plan
pertaining to amendments thereof, hereby amend the Plan in its entirety and
restate the Plan to provide as follows:

                                    ARTICLE I
                                   DEFINITIONS

      1.1   "Act" means the Employee Retirement Income Security Act of 1974, as
it may be amended from time to time.

      1.2   "Administrator" means the Employer unless another person or entity
has been designated by the Employer pursuant to Section 2.2 to administer the
Plan on behalf of the Employer.

      1.3   "Affiliated Employer" means any corporation which is a member of a
controlled group of corporations (as defined in Code Section 414(b)) which
includes the Employer; any trade or business (whether or not incorporated) which
is under common control (as defined in Code Section 414(c)) with the Employer;
any organization (whether or not incorporated) which is a member of an
affiliated service group (as defined in Code Section 414(m)) which includes the
Employer; and any other entity required to be aggregated with the Employer
pursuant to Regulations under Code Section 414(o).

      1.4   "Aggregate Account" means, with respect to each Participant, the
value of all accounts maintained on behalf of a Participant, whether
attributable to Employer or Employee contributions, subject to the provisions of
Section 9.2.

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      1.5   "Anniversary Date" means the last day of the Plan Year.

      1.6   "Beneficiary" means the person (or entity) to whom the share of a
deceased Participant's total account is payable, subject to the restrictions of
Sections 6.2 and 6.6.

      1.7   "Code" means the Internal Revenue Code of 1986, as amended or
replaced from time to time.

      1.8   "Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401 (a) and all other payments
of compensation by the Employer (in the course of the Employer's trade or
business) for a Plan Year for which the Employer is required to furnish the
Participant a written statement under Code Sections 6041(d), 6051(a)(3) and
6052. Compensation must be determined without regard to any rules under Code
Section 3401 (a) that limit the remuneration included in wages based on the
nature or location of the employment or the services performed (such as the
exception for agricultural labor in Code Section 3401(a)(2)).

      For purposes of this Section, the determination of Compensation shall be
made by:

            (a)   including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and which are not includible in the
gross income of the Participant under Code Sections 125, 132(f)(4)for Plan Years
beginning after December 31, 2000, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b),
and Employee contributions described in Code Section 414(h)(2) that are treated
as Employer contributions.

      For a Participant's initial year of participation, Compensation shall be
recognized for the entire Plan Year.

      Compensation in excess of $150,000 (or such other amount provided in the
Code) shall be disregarded. Such amount shall be adjusted for increases in the
cost of living in accordance with Code Section 401(a)(17)(B), except that the
dollar increase in effect on January 1 of any calendar year shall be effective
for the Plan Year beginning with or within such calendar year. For any short
Plan Year the Compensation limit shall be an amount equal to the Compensation
limit for the calendar year in which the Plan Year begins multiplied by the
ratio obtained by dividing the number of full months in the short Plan Year by
twelve (12).

      For Plan Years beginning after December 31, 1996, for purposes of
determining Compensation, the family member aggregation rules of Code Section
401(a)(17) and Code Section 414(q)(6) (as in effect prior to the Small Business
Job Protection Act of 1996) are eliminated.

      For purposes of this Section, if the Plan is a plan described in Code
Section 413(c) or 414(f) (a plan maintained by more than one Employer), the
limitation applies separately with respect to the Compensation of any
Participant from each Employer maintaining the Plan.

      1.9   "Contract" or "Policy" means any life insurance policy, retirement
income policy or annuity contract (group or individual) issued pursuant to the
terms of the Plan. In the event of

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any conflict between the terms of this Plan and the terms of any contract
purchased hereunder, the Plan provisions shall control.

      1.10  "Early Retirement Date" means the first day of the month (prior to
the Normal Retirement Date) coinciding with or following the date on which a
Participant or Former Participant attains age 60, and has completed at least
five (5) Years of Service with the Employer (Early Retirement Age). A
Participant shall become fully Vested upon satisfying this requirement if still
employed at Early Retirement Age.

      A Former Participant who separates from service after satisfying the
service requirement for Early Retirement and who thereafter reaches the age
requirement contained herein shall be entitled to receive benefits under this
Plan.

      1.11  "Eligible Employee" means any Employee.

      Employees of Affiliated Employers shall not be eligible to participate in
this Plan unless such Affiliated Employers have specifically adopted this Plan
in writing.

      Employees classified by the Employer as independent contractors who are
subsequently determined by the Internal Revenue Service to be Employees shall
not be Eligible Employees.

      1.12  "Employee" means any person who is employed by the Employer or
Affiliated Employer, and excludes any person who is employed as an independent
contractor. Employee shall include Leased Employees within the meaning of Code
Sections 414(n)(2) and 414(o)(2) unless such Leased Employees are covered by a
plan described in Code Section 414(n)(5) and such Leased Employees do not
constitute more than 20% of the recipient's non-highly compensated work force.

      1.13  "Employer" means Eagle Test Systems, Inc. and Analog Test Institute,
Inc. and any successor which shall maintain this Plan; and any predecessor which
has maintained this Plan. The Employers are corporations with principal offices
in the State of Illinois.

      1.14  Fiduciary" means any person who (a) exercises any discretionary
authority or discretionary control respecting management of the Plan or
exercises any authority or control respecting management or disposition of its
assets, (b) renders investment advice for a fee or other compensation, direct or
indirect, with respect to any monies or other property of the Plan or has any
authority or responsibility to do so, or (c) has any discretionary authority or
discretionary responsibility in the administration of the Plan.

      1.15  "Fiscal Year" means the Employer's accounting year of 12 months
commencing on October 1st of each year and ending the following September 30th.

      1.16  "Forfeiture" means that portion of a Participant's Account that is
not Vested, and occurs on the earlier of:

            (a)   the distribution of the entire Vested portion of the
Participant's Account of a Former Participant who has severed employment with
the Employer. For purposes of this provision, if the Former Participant has a
Vested benefit of zero, then such Former Participant

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shall be deemed to have received a distribution of such Vested benefit as of the
year in which the severance of employment occurs, or

            (b)   the last day of the Plan Year in which a Former Participant
who has severed employment with the Employer incurs five (5) consecutive 1-Year
Breaks in Service.

      Regardless of the preceding provisions, if a Former Participant is
eligible to share in the allocation of Employer contributions or Forfeitures in
the year in which the Forfeiture would otherwise occur, then the Forfeiture will
not occur until the end of the first Plan Year for which the Former Participant
is not eligible to share in the allocation of Employer contributions or
Forfeitures. Furthermore, the term "Forfeiture" shall also include amounts
deemed to be Forfeitures pursuant to any other provision of this Plan.

      1.17  "Former Participant" means a person who has been a Participant, but
who has ceased to be a Participant for any reason.

      1.18  "415 Compensation" with respect to any Participant means such
Participant's wages as defined in Code Section 3401 (a) and all other payments
of compensation by the Employer (in the course of the Employer's trade or
business) for a Plan Year for which the Employer is required to furnish the
Participant a written statement under Code Sections 6041(d), 6051(a)(3) and
6052. "415 Compensation" must be determined without regard to any rules under
Code Section 3401 (a) that limit the remuneration included in wages based on the
nature or location of the employment or the services performed (such as the
exception for agricultural labor in Code Section 3401(a)(2)).

      For "limitation years" beginning after December 31, 1997, for purposes of
this Section, the determination of "415 Compensation" shall include any elective
deferral (as defined in Code Section 402(g)(3)), and any amount which is
contributed or deferred by the Employer at the election of the Participant and
which is not includible in the gross income of the Participant by reason of Code
Sections 125, 132(f)(4) for "limitation years" beginning after December 31, 2000
or 457.

      1.19  "Highly Compensated Employee" means, for Plan Years beginning after
December 31, 1996, an Employee described in Code Section 414(q) and the
Regulations thereunder, and generally means any Employee who:

            (a)   was a "five percent owner" as defined in Section 1.23(c) at
any time during the "determination year" or the "look-back year"; or

            (b)   for the "look-back year" had "415 Compensation" from the
Employer in excess of $80,000. The $80,000 amount is adjusted at the same time
and in the same manner as under Code Section 415(d), except that the base period
is the calendar quarter ending September 30, 1996.

      The "determination year" means the Plan Year for which testing is being
performed, and the "look-back year" means the immediately preceding twelve (12)
month period.

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      Notwithstanding the above, for the first Plan Year beginning after
December 31, 1996, the "look-back year" shall be the calendar year ending with
or within the Plan Year for which testing is being performed, and the
"determination year" (if applicable) shall be the period of time, if any, which
extends beyond the "look-back year" and ends on the last day of the Plan Year
for which testing is being performed (the "lag period").

      A highly compensated former Employee is based on the rules applicable to
determining Highly Compensated Employee status as in effect for the
"determination year," in accordance with Regulation 1.414(q)-1T, A-4 and IRS
Notice 97-45 (or any superseding guidance).

      In determining whether an Employee is a Highly Compensated Employee for a
Plan Year beginning in 1997, the amendments to Code Section 414(q) stated above
are treated as having been in effect for years beginning in 1996.

      For purposes of this Section, for Plan Years beginning prior to January 1,
1998, the determination of "415 Compensation" shall be made by including amounts
that would otherwise be excluded from a Participant's gross income by reason of
the application of Code Sections 125, 402(e)(3), 402(h)(1)(B), and, in the case
of Employer contributions made pursuant to a salary reduction agreement, Code
Section 403(b).

      In determining who is a Highly Compensated Employee, Employees who are
non-resident aliens and who received no earned income (within the meaning of
Code Section 911(d)(2)) from the Employer constituting United States source
income within the meaning of Code Section 861(a)(3) shall not be treated as
Employees. Additionally, all Affiliated Employers shall be taken into account as
a single employer and Leased Employees within the meaning of Code Sections
414(n)(2) and 414(o)(2) shall be considered Employees unless such Leased
Employees are covered by a plan described in Code Section 414(n)(5) and are not
covered in any qualified plan maintained by the Employer. The exclusion of
Leased Employees for this purpose shall be applied on a uniform and consistent
basis for all of the Employer's retirement plans. Highly Compensated Former
Employees shall be treated as Highly Compensated Employees without regard to
whether they performed services during the "determination year."

      1.20  "Highly Compensated Participant" means any Highly Compensated
Employee who is eligible to participate in the component of the Plan being
tested.

      1.21  "Hour of Service" means (1) each hour for which an Employee is
directly or indirectly compensated or entitled to compensation by the Employer
for the performance of duties (these hours will be credited to the Employee for
the computation period in which the duties are performed); (2) each hour for
which an Employee is directly or indirectly compensated or entitled to
compensation by the Employer (irrespective of whether the employment
relationship has terminated) for reasons other than performance of duties (such
as vacation, holidays, sickness, jury duty, disability, lay-off, military duty
or leave of absence) during the applicable computation period (these hours will
be calculated and credited pursuant to Department of Labor regulation
2530.200b-2 which is incorporated herein by reference); (3) each hour for which
back pay is awarded or agreed to by the Employer without regard to mitigation of
damages (these hours will be credited to the Employee for the computation period

                                       5
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or periods to which the award or agreement pertains rather than the computation
period in which the award, agreement or payment is made). The same Hours of
Service shall not be credited both under (1) or (2), as the case may be, and
under (3).

      Notwithstanding (2) above, (i) no more than 501 Hours of Service are
required to be credited to an Employee on account of any single continuous
period during which the Employee performs no duties (whether or not such period
occurs in a single computation period); (ii) an hour for which an Employee is
directly or indirectly paid, or entitled to payment, on account of a period
during which no duties are performed is not required to be credited to the
Employee if such payment is made or due under a plan maintained solely for the
purpose of complying with applicable worker's compensation, or unemployment
compensation or disability insurance laws; and (iii) Hours of Service are not
required to be credited for a payment which solely reimburses an Employee for
medical or medically related expenses incurred by the Employee.

      For purposes of (2) above, a payment shall be deemed to be made by or due
from the Employer regardless of whether such payment is made by or due from the
Employer directly, or indirectly through, among others, a trust fund, or
insurer, to which the Employer contributes or pays premiums and regardless of
whether contributions made or due to the trust fund, insurer, or other entity
are for the benefit of particular Employees or are on behalf of a group of
Employees in the aggregate.

      For purposes of this Section, Hours of Service will be credited for
employment with other Affiliated Employers. The provisions of Department of
Labor regulations 2530.200b-2(b) and (c) are incorporated herein by reference.

      1.22  "Investment Manager" means an entity that (a) has the power to
manage, acquire, or dispose of Plan assets and (b) acknowledges fiduciary
responsibility to the Plan in writing. Such entity must be a person, firm, or
corporation registered as an investment adviser under the Investment Advisers
Act of 1940, a bank, or an insurance company.

      1.23  "Key Employee" means an Employee as defined in Code Section 416(i)
and the Regulations thereunder. Generally, any Employee or former Employee (as
well as each of the Employee's or former Employee's Beneficiaries) is considered
a Key Employee if the Employee, at any time during the Plan Year that contains
the "Determination Date" or any of the preceding four (4) Plan Years, has been
included in one of the following categories:

            (a)   an officer of the Employer (as that term is defined within the
meaning of the Regulations under Code Section 416) having annual "415
Compensation" greater than 50 percent of the amount in effect under Code Section
415(b)(1)(A) for any such Plan Year.

            (b)   one of the ten employees having annual "415 Compensation" from
the Employer for a Plan Year greater than the dollar limitation in effect under
Code Section 415(c)(1)(A) for the calendar year in which such Plan Year ends and
owning (or considered as owning within the meaning of Code Section 318) both
more than one-half percent interest and the largest interests in the Employer.

            (c)   a "five percent owner" of the Employer. "Five percent owner"
means any person who owns (or is considered as owning within the meaning of Code
Section 318) more

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than five percent (5%) of the outstanding stock of the Employer or stock
possessing more than five percent (5%) of the total combined voting power of all
stock of the Employer or, in the case of an unincorporated business, any person
who owns more than five percent (5%) of the capital or profits interest in the
Employer. In determining percentage ownership hereunder, employers that would
otherwise be aggregated under Code Sections 414(b), (c), (m) and (o) shall be
treated as separate employers.

            (d)   a "one percent owner" of the Employer having an annual "415
Compensation" from the Employer of more than $150,000. "One percent owner" means
any person who owns (or is considered as owning within the meaning of Code
Section 318) more than one percent (1%) of the outstanding stock of the Employer
or stock possessing more than one percent (1%) of the total combined voting
power of all stock of the Employer or, in the case of an unincorporated
business, any person who owns more than one percent (1%) of the capital or
profits interest in the Employer. In determining percentage ownership hereunder,
employers that would otherwise be aggregated under Code Sections 414(b), (c),
(m) and (o) shall be treated as separate employers. However, in determining
whether an individual has "415 Compensation" of more than $150,000, "415
Compensation" from each employer required to be aggregated under Code Sections
414(b), (c), (m) and (o) shall be taken into account.

      For purposes of this Section, the determination of "415 Compensation"
shall be made by including amounts which are contributed by the Employer
pursuant to a salary reduction agreement and which are not includible in the
gross income of the Participant under Code Sections 125, 132(fl(4)for Plan Years
beginning after December 31, 2000, 402(e)(3), 402(h)(1)(B), 403(b) or 457(b),
and Employee contributions described in Code Section 414(h)(2) that are treated
as Employer contributions.

      1.24  "Late Retirement Date" means a Participant's actual Retirement Date
after having reached Normal Retirement Date.

      1.25  "Leased Employee" means, for Plan Years beginning after December 31,
1996, any person (other than an Employee of the recipient Employer) who pursuant
to an agreement between the recipient Employer and any other person or entity
("leasing organization") has performed services for the recipient (or for the
recipient and related persons determined in accordance with Code Section
414(n)(6)) on a substantially full time basis for a period of at least one year,
and such services are performed under primary direction or control by the
recipient Employer. Contributions or benefits provided a Leased Employee by the
leasing organization which are attributable to services performed for the
recipient Employer shall be treated as provided by the recipient Employer.
Furthermore, Compensation for a Leased Employee shall only include Compensation
from the leasing organization that is attributable to services performed for the
recipient Employer. A Leased Employee shall not be considered an Employee of the
recipient Employer:

            (a)   if such employee is covered by a money purchase pension plan
providing:

                  (1)   a nonintegrated employer contribution rate of at least
      10% of compensation, as defined in Code Section 415(c)(3), but for Plan
      Years beginning prior to January 1, 1998, including amounts which are
      contributed by the Employer pursuant to

                                       7
<PAGE>

      a salary reduction agreement and which are not includible in the gross
      income of the Participant under Code Sections 125, 402(e)(3),
      402(h)(1)(B), 403(b) or 457(b), and Employee contributions described in
      Code Section 414(h)(2) that are treated as Employer contributions, and for
      Plan Years beginning prior to January 1, 2001, excluding amounts that are
      not includible in gross income under Code Section 132(f)(4);

                  (2)   immediate participation;

                  (3)   full and immediate vesting; and

            (b)   if Leased Employees do not constitute more than 20% of the
recipient Employer's nonhighly compensated work force.

      1.26  Non-Highly Compensated Participant" means, for Plan Years beginning
after December 31, 1996, any Participant who is not a Highly Compensated
Employee.

      1.27  "Non-Key Employee" means any Employee or former Employee (and such
Employee's or former Employee's Beneficiaries) who is not, and has never been a
Key Employee.

      1.28  "Normal Retirement Age" means the Participant's 62nd birthday. A
Participant shall become fully Vested in the Participant's Account upon
attaining Normal Retirement Age.

      1.29  "Normal Retirement Date" means the Participant's Normal Retirement
Age.

      1.30  "1-Year Break in Service" means the applicable computation period
during which an Employee has not completed more than 500 Hours of Service with
the Employer. Further, solely for the purpose of determining whether a
Participant has incurred a 1-Year Break in Service, Hours of Service shall be
recognized for "authorized leaves of absence" and "maternity and paternity
leaves of absence." Years of Service and 1-Year Breaks in Service shall be
measured on the same computation period.

      "Authorized leave of absence" means an unpaid, temporary cessation from
active employment with the Employer pursuant to an established nondiscriminatory
policy, whether occasioned by illness, military service, or any other reason.

      A "maternity or paternity leave of absence" means an absence from work for
any period by reason of the Employee's pregnancy, birth of the Employee's child,
placement of a child with the Employee in connection with the adoption of such
child, or any absence for the purpose of caring for such child for a period
immediately following such birth or placement. For this purpose, Hours of
Service shall be credited for the computation period in which the absence from
work begins, only if credit therefore is necessary to prevent the Employee from
incurring a 1-Year Break in Service, or, in any other case, in the immediately
following computation period. The Hours of Service credited for a "maternity or
paternity leave of absence" shall be those which would normally have been
credited but for such absence, or, in any case in which the Administrator is
unable to determine such hours normally credited, eight (8) Hours of Service per
day. The total Hours of Service required to be credited for a "maternity or
paternity leave of

                                       8
<PAGE>

absence" shall not exceed the number of Hours of Service needed to prevent the
Employee from incurring a 1-Year Break in Service.

      1.31  "Participant" means any Eligible Employee who participates in the
Plan and has not for any reason become ineligible to participate further in the
Plan.

      1.32  "Participant's Account" means the account established and maintained
by the Administrator for each Participant with respect to such Participant's
total interest in the Plan and Trust resulting from the Employer contributions.

      1.33  "Participant's Transfer/Rollover Account" means the account
established and maintained by the Administrator for each Participant with
respect to the Participant's total interest in the Plan resulting from amounts
transferred to this Plan from a direct plan-to-plan transfer and/or with respect
to such Participant's interest in the Plan resulting from amounts transferred
from another qualified plan or "conduit" Individual Retirement Account in
accordance with Section 4.6.

      A separate accounting shall be maintained with respect to that portion of
the Participant's Transfer/Rollover Account attributable to transfers (within
the meaning of Code Section 414(1)) and "rollovers."

      1.34  "Plan" means this instrument, including all amendments thereto.

      1.35  "Plan Year" means the Plan's accounting year of twelve (12) months
commencing on October 1st of each year and ending the following September 30th.

      1.36  "Regulation" means the Income Tax Regulations as promulgated by the
Secretary of the Treasury or a delegate of the Secretary of the Treasury, and as
amended from time to time.

      1.37  "Retired Participant" means a person who has been a Participant, but
who has become entitled to retirement benefits under the Plan.

      1.38  "Retirement Date" means the date as of which a Participant retires
whether such retirement occurs on a Participant's Normal Retirement Date, Early
or Late Retirement Date (see Section 6.1).

      1.39  "Terminated Participant" means a person who has been a Participant,
but whose employment has been terminated other than by death or retirement.

      1.40  "Top Heavy Plan" means a plan described in Section 9.2(a).

      1.41  "Top Heavy Plan Year" means a Plan Year during which the Plan is a
Top Heavy Plan.

      1.42  "Trustee" means the person or entity named as trustee herein or in
any separate trust forming a part of this Plan, and any successors.

                                       9
<PAGE>

      1.43  "Trust Fund" means the assets of the Plan and Trust as the same
shall exist from time to time.

      1.44  "Valuation Date" means the Anniversary Date and may include any
other date or dates deemed necessary or appropriate by the Administrator for the
valuation of the Participants' accounts during the Plan Year, which may include
any day that the Trustee, any transfer agent appointed by the Trustee or the
Employer or any stock exchange used by such agent, are open for business.

      1.45  "Vested" means the nonforfeitable portion of any account maintained
on behalf of a Participant.

      1.46  "Year of Service" means the computation period of twelve (12)
consecutive months, herein set forth, during which an Employee has at least 1000
Hours of Service.

      For purposes of eligibility for participation, the initial computation
period shall begin with the date on which the Employee first performs an Hour of
Service. The participation computation period beginning after a 1-Year Break in
Service shall be measured from the date on which an Employee again performs an
Hour of Service. The participation computation period shall shift to the Plan
Year which includes the anniversary of the date on which the Employee first
performed an Hour of Service. An Employee who is credited with the required
Hours of Service in both the initial computation period (or the computation
period beginning after a 1-Year Break in Service) and the Plan Year which
includes the anniversary of the date on which the Employee first performed an
Hour of Service, shall be credited with two (2) Years of Service for purposes of
eligibility to participate.

      For vesting purposes, the computation periods shall be the Plan Year,
excluding periods prior to the Effective Date of the Plan.

      The computation period shall be the Plan Year if not otherwise set forth
herein.

      Notwithstanding the foregoing, for any short Plan Year, the determination
of whether an Employee has completed a Year of Service shall be made in
accordance with Department of Labor regulation 2530.203-2(c). However, in
determining whether an Employee has completed a Year of Service for benefit
accrual purposes in the short Plan Year, the number of the Hours of Service
required shall be proportionately reduced based on the number of full months in
the short Plan Year.

      Years of Service with any Affiliated Employer shall be recognized.

                                   ARTICLE II
                                 ADMINISTRATION

      2.1   POWERS AND RESPONSIBILITIES OF THE EMPLOYER.

            (a)   In addition to the general powers and responsibilities
otherwise provided for in this Plan, the Employer shall be empowered to appoint
and remove the Trustee and the Administrator from time to time as it deems
necessary for the proper administration of the Plan

                                       10
<PAGE>

to ensure that the Plan is being operated for the exclusive benefit of the
Participants and their Beneficiaries in accordance with the terms of the Plan,
the Code, and the Act. The Employer may appoint counsel, specialists, advisers,
agents (including any nonfiduciary agent) and other persons as the Employer
deems necessary or desirable in connection with the exercise of its fiduciary
duties under this Plan. The Employer may compensate such agents or advisers from
the assets of the Plan as fiduciary expenses (but not including any business
(settlor) expenses of the Employer), to the extent not paid by the Employer.

            (b)   The Employer shall establish a "funding policy and method,"
i.e., it shall determine whether the Plan has a short run need for liquidity
(e.g., to pay benefits) or whether liquidity is a long run goal and investment
growth (and stability of same) is a more current need, or shall appoint a
qualified person to do so. The Employer or its delegate shall communicate such
needs and goals to the Trustee, who shall coordinate such Plan needs with its
investment policy. The communication of such a "funding policy and method" shall
not, however, constitute a directive to the Trustee as to the investment of the
Trust Funds. Such "funding policy and method" shall be consistent with the
objectives of this Plan and with the requirements of Title I of the Act.

            (c)   The Employer shall periodically review the performance of any
Fiduciary or other person to whom duties have been delegated or allocated by it
under the provisions of this Plan or pursuant to procedures established
hereunder. This requirement may be satisfied by formal periodic review by the
Employer or by a qualified person specifically designated by the Employer,
through day-to-day conduct and evaluation, or through other appropriate ways.

      2.2   DESIGNATION OF ADMINISTRATIVE AUTHORITY. The Employer shall be the
Administrator. The Employer may appoint any person, including, but not limited
to, the Employees of the Employer, to perform the duties of the Administrator.
Any person so appointed shall signify acceptance by filing written acceptance
with the Employer. Upon the resignation or removal of any individual performing
the duties of the Administrator, the Employer may designate a successor.

      2.3   POWERS AND DUTIES OF THE ADMINISTRATOR. The primary responsibility
of the Administrator is to administer the Plan for the exclusive benefit of the
Participants and their Beneficiaries, subject to the specific terms of the Plan.
The Administrator shall administer the Plan in accordance with its terms and
shall have the power and discretion to construe the terms of the Plan and to
determine all questions arising in connection with the administration,
interpretation, and application of the Plan. Any such determination by the
Administrator shall be conclusive and binding upon all persons. The
Administrator may establish procedures, correct any defect, supply any
information, or reconcile any inconsistency in such manner and to such extent as
shall be deemed necessary or advisable to carry out the purpose of the Plan;
provided, however, that any procedure, discretionary act, interpretation or
construction shall be done in a nondiscriminatory manner based upon uniform
principles consistently applied and shall be consistent with the intent that the
Plan shall continue to be deemed a qualified plan under the terms of Code
Section 401(a), and shall comply with the terms of the Act and all regulations
issued pursuant thereto. The Administrator shall have all powers necessary or
appropriate to accomplish the Administrator's duties under the Plan.

                                       11
<PAGE>

      The Administrator shall be charged with the duties of the general
administration of the Plan as set forth under the terms of the Plan, including,
but not limited to, the following:

            (a)   the discretion to determine all questions relating to the
eligibility of Employees to participate or remain a Participant hereunder and to
receive benefits under the Plan;

            (b)   to compute, certify, and direct the Trustee with respect to
the amount and the kind of benefits to which any Participant shall be entitled
hereunder;

            (c)   to authorize and direct the Trustee with respect to all
discretionary or otherwise directed disbursements from the Trust;

            (d)   to maintain all necessary records for the administration of
the Plan;

            (e)   to interpret the provisions of the Plan and to make and
publish such rules for regulation of the Plan as are consistent with the terms
hereof;

            (f)   to determine the size and type of any Contract to be purchased
from any insurer, and to designate the insurer from which such Contract shall be
purchased;

            (g)   to compute and certify to the Employer and to the Trustee from
time to time the sums of money necessary or desirable to be contributed to the
Plan;

            (h)   to consult with the Employer and the Trustee regarding the
short and long-term liquidity needs of the Plan in order that the Trustee can
exercise any investment discretion in a manner designed to accomplish specific
objectives;

            (i)   to determine the validity of, and take appropriate action with
respect to, any qualified domestic relations order received by it; and

            (j)   to assist any Participant regarding the Participant's rights,
benefits, or elections available under the Plan.

      2.4   RECORDS AND REPORTS. The Administrator shall keep a record of all
actions taken and shall keep all other books of account, records, policies, and
other data that may be necessary for proper administration of the Plan and shall
be responsible for supplying all information and reports to the Internal Revenue
Service, Department of Labor, Participants, Beneficiaries and others as required
by law.

      2.5   APPOINTMENT OF ADVISERS. The Administrator, or the Trustee with the
consent of the Administrator, may appoint counsel, specialists, advisers, agents
(including nonfiduciary agents) and other persons as the Administrator or the
Trustee deems necessary or desirable in connection with the administration of
this Plan, including but not limited to agents and advisers to assist with the
administration and management of the Plan, and thereby to provide, among such
other duties as the Administrator may appoint, assistance with maintaining Plan
records and the providing of investment information to the Plan's investment
fiduciaries.

                                       12
<PAGE>

      2.6   PAYMENT OF EXPENSES. All expenses of administration may be paid out
of the Trust Fund unless paid by the Employer. Such expenses shall include any
expenses incident to the functioning of the Administrator, or any person or
persons retained or appointed by any named Fiduciary incident to the exercise of
their duties under the Plan, including, but not limited to, fees of accountants,
counsel, Investment Managers, and other specialists and their agents, the costs
of any bonds required pursuant to Act Section 412, and other costs of
administering the Plan. Until paid, the expenses shall constitute a liability of
the Trust Fund.

      2.7   CLAIMS PROCEDURE. Claims for benefits under the Plan may be filed in
writing with the Administrator. Written notice of the disposition of a claim
shall be furnished to the claimant within ninety (90) days after the application
is filed, or such period as is required by applicable law or Department of Labor
regulation. In the event the claim is denied, the reasons for the denial shall
be specifically set forth in the notice in language calculated to be understood
by the claimant, pertinent provisions of the Plan shall be cited, and, where
appropriate, an explanation as to how the claimant can perfect the claim will be
provided. In addition, the claimant shall be furnished with an explanation of
the Plan's claims review procedure.

      2.8   CLAIMS REVIEW PROCEDURE. Any Employee, former Employee, or
Beneficiary of either, who has been denied a benefit by a decision of the
Administrator pursuant to Section 2.7 shall be entitled to request the
Administrator to give further consideration to a claim by filing with the
Administrator a written request for a hearing. Such request, together with a
written statement of the reasons why the claimant believes the claim should be
allowed, shall be filed with the Administrator no later than sixty (60) days
after receipt of the written notification provided for in Section 2.7. The
Administrator shall then conduct a hearing within the next sixty (60) days, at
which the claimant may be represented by an attorney or any other representative
of such claimant's choosing and expense and at which the claimant shall have an
opportunity to submit written and oral evidence and arguments in support of the
claim. At the hearing (or prior thereto upon five (5) business days written
notice to the Administrator) the claimant or the claimant's representative shall
have an opportunity to review all documents in the possession of the
Administrator which are pertinent to the claim at issue and its disallowance.
Either the claimant or the Administrator may cause a court reporter to attend
the hearing and record the proceedings. In such event, a complete written
transcript of the proceedings shall be furnished to both parties by the court
reporter. The full expense of any such court reporter and such transcripts shall
be borne by the party causing the court reporter to attend the hearing. A final
decision as to the allowance of the claim shall be made by the Administrator
within sixty (60) days of receipt of the appeal (unless there has been an
extension of sixty (60) days due to special circumstances, provided the delay
and the special circumstances occasioning it are communicated to the claimant
within the sixty (60) day period). Such communication 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.

                                   ARTICLE III
                                   ELIGIBILITY

      3.1   CONDITIONS OF ELIGIBILITY. Any Eligible Employee who has completed
one (1) Year of Service and has attained age 21 shall be eligible to participate
hereunder as of the

                                       13
<PAGE>

date such Employee has satisfied such requirements. However, any Employee who
was a Participant in the Plan prior to the effective date of this amendment and
restatement shall continue to participate in the Plan.

      3.2   EFFECTIVE DATE OF PARTICIPATION. An Eligible Employee shall become a
Participant effective as of the date on which the Employee satisfies the
eligibility requirements of Section 3.1.

      3.3   DETERMINATION OF ELIGIBILITY. The Administrator shall determine the
eligibility of each Employee for participation in the Plan based upon
information furnished by the Employer. Such determination shall be conclusive
and binding upon all persons, as long as the same is made pursuant to the Plan
and the Act. Such determination shall be subject to review pursuant to Section
2.8.

      3.4   TERMINATION OF ELIGIBILITY. In the event a Participant shall go from
a classification of an Eligible Employee to an ineligible Employee, such Former
Participant shall continue to vest in the Plan for each Year of Service
completed while a noneligible Employee, until such time as the Participant's
Account is forfeited or distributed pursuant to the terms of the Plan.
Additionally, the Former Participant's interest in the Plan shall continue to
share in the earnings of the Trust Fund.

      3.5   OMISSION OF ELIGIBLE EMPLOYEE. If, in any Plan Year, any Employee
who should be included as a Participant in the Plan is erroneously omitted and
discovery of such omission is not made until after a contribution by the
Employer for the year has been made and allocated, then the Employer shall make
a subsequent contribution, if necessary after the application of Section 4.3(c),
so that the omitted Employee receives a total amount which the Employee would
have received (including both Employer contributions and earnings thereon) had
the Employee not been omitted. Such contribution shall be made regardless of
whether it is deductible in whole or in part in any taxable year under
applicable provisions of the Code.

      3.6   INCLUSION OF INELIGIBLE EMPLOYEE. If, in any Plan Year, any person
who should not have been included as a Participant in the Plan is erroneously
included and discovery of such inclusion is not made until after a contribution
for the year has been made and allocated, the Employer shall be entitled to
recover the contribution made with respect to the ineligible person provided the
error is discovered within twelve (12) months of the date on which it was made.
Otherwise, the amount contributed with respect to the ineligible person shall
constitute a Forfeiture for the Plan Year in which the discovery is made.

      3.7   REHIRED EMPLOYEES AND BREAKS IN SERVICE.

            (a)   If any Participant becomes a Former Participant due to
severance from employment with the Employer and is reemployed by the Employer
before a 1-Year Break in Service occurs, the Former Participant shall become a
Participant as of the reemployment date.

            (b)   If any Participant becomes a Former Participant due to
severance from employment with the Employer and is reemployed after a 1-Year
Break in Service has occurred, Years of Service shall include Years of Service
prior to the 1-Year Break in Service subject to the following rules:

                                       14
<PAGE>

                  (1)   In the case of a Former Participant who under the Plan
      does not have a nonforfeitable right to any interest in the Plan resulting
      from Employer contributions, Years of Service before a period of 1-Year
      Break in Service will not be taken into account if the number of
      consecutive 1-Year Breaks in Service equal or exceed the greater of (A)
      five (5) or (B) the aggregate number of pre-break Years of Service. Such
      aggregate number of Years of Service will not include any Years of Service
      disregarded under the preceding sentence by reason of prior 1-Year Breaks
      in Service.

                  (2)   A Former Participant who has not had Years of Service
      before a 1-Year Break in Service disregarded pursuant to (1) above, and
      completes a Year of Service for eligibility purposes, shall participate in
      the Plan as of the date immediately following completion of a Year of
      Service.

            (c)   After a Former Participant who has severed employment with the
Employer incurs five (5) consecutive 1-Year Breaks in Service, the Vested
portion of said Former Participant's Account attributable to pre-break service
shall not be increased as a result of post-break service. In such case, separate
accounts will be maintained as follows:

                  (1)   one account for nonforfeitable benefits attributable to
      pre-break service; and

                  (2)   one account representing the Participant's Employer
      derived account balance in the Plan attributable to post-break service.

            (d)   If any Participant becomes a Former Participant due to
severance of employment with the Employer and is reemployed by the Employer
before five (5) consecutive 1-Year Breaks in Service, and such Former
Participant had received a distribution of the entire Vested interest prior to
reemployment, then the forfeited account shall be reinstated only if the Former
Participant repays the full amount which had been distributed. Such repayment
must be made before the earlier of five (5) years after the first date on which
the Participant is subsequently reemployed by the Employer or the close of the
first period of five (5) consecutive 1-Year Breaks in Service commencing after
the distribution. If a distribution occurs for any reason other than a severance
of employment, the time for repayment may not end earlier than five (5) years
after the date of distribution. In the event the Former Participant does repay
the full amount distributed, the undistributed forfeited portion of the
Participant's Account must be restored in full, unadjusted by any gains or
losses occurring subsequent to the Valuation Date preceding the distribution.
The source for such reinstatement may be Forfeitures occurring during the Plan
Year. If such source is insufficient, then the Employer will contribute an
amount which is sufficient to restore any such forfeited Accounts provided,
however, that if a discretionary contribution is made for such year, such
contribution shall first be applied to restore any such Accounts and the
remainder shall be allocated in accordance with Section 4.3.

      If a non-Vested Former Participant was deemed to have received a
distribution and such Former Participant is reemployed by the Employer before
five (5) consecutive 1-Year Breaks in Service, then such Participant will be
deemed to have repaid the deemed distribution as of the date of reemployment.

                                       15
<PAGE>

      3.8   ELECTION NOT TO PARTICIPATE. An Employee, for Plan Years beginning
on or after the later of the adoption date or effective date of this amendment
and restatement, may, subject to the approval of the Employer, elect voluntarily
not to participate in the Plan. The election not to participate must be
irrevocable and communicated to the Employer, in writing, within a reasonable
period of time before the beginning of the first Plan Year.

                                   ARTICLE IV
                           CONTRIBUTION AND ALLOCATION

      4.1   FORMULA FOR DETERMINING EMPLOYER CONTRIBUTION.

            (a)   For each Plan Year, the Employer shall contribute to the Plan
such amount as shall be determined by the Employer.

            (b)   The Employer contribution shall not be limited to years in
which the Employer has current or accumulated net profit. Additionally, to the
extent necessary, the Employer shall contribute to the Plan the amount necessary
to provide the top heavy minimum contribution. All contributions shall be made
in cash or in such property as is acceptable to the Trustee.

      4.2   TIME OF PAYMENT OF EMPLOYER CONTRIBUTION. The Employer may make its
contribution to the Plan for a particular Plan Year at such time as the
Employer, in its sole discretion, determines. If the Employer makes a
contribution for a particular Plan Year after the close of that Plan Year, the
Employer will designate to the Trustee the Plan Year for which the Employer is
making its contribution.

      4.3   ALLOCATION OF CONTRIBUTION, FORFEITURES AND EARNINGS.

            (a)   The Administrator shall establish and maintain an account in
the name of each Participant to which the Administrator shall credit as of each
Anniversary Date, or other Valuation Date, all amounts allocated to each such
Participant as set forth herein.

            (b)   The Employer shall provide the Administrator with all
information required by the Administrator to make a proper allocation of the
Employer contribution for each Plan Year. Within a reasonable period of time
after the date of receipt by the Administrator of such information, the
Administrator shall allocate such contribution to each Participant's Account in
the same proportion that each such Participant's Compensation for the year bears
to the total Compensation of all Participants for such year.

            (c)   On or before each Anniversary Date any amounts which became
Forfeitures since the last Anniversary Date may be made available to reinstate
previously forfeited account balances of Former Participants, if any, in
accordance with Section 3.7(d), be used to satisfy any contribution that may be
required pursuant to Section 3.5 and/or 6.9, or be used to pay any
administrative expenses of the Plan. The remaining Forfeitures, if any, shall be
used to reduce the contribution of the Employer hereunder for the Plan Year in
which such Forfeitures occur.

                                       16
<PAGE>

            (d)   Participants shall be eligible to share in the allocation of
contributions for a Plan Year in accordance with the following:

                  (1)   Only Participants who have completed a Year of Service
      during the Plan Year and are actively employed on the last day of the Plan
      Year shall be eligible to share in the allocation of contributions for
      that Plan Year.

                  (2)   Notwithstanding the foregoing, Participants who are not
      actively employed on the last day of the Plan Year due to Retirement
      (Early, Normal or Late) or death shall not be eligible to share in the
      allocation of contributions for that Plan Year.

                  (3)   For any Top Heavy Plan Year, Employees not otherwise
      eligible to share in the allocation of contributions as provided above,
      shall receive the minimum allocation provided for in Section 4.3(f) if
      eligible pursuant to the provisions of Section 4.3(h).

            (e)   As of each Valuation Date, before the current valuation period
allocation of Employer contributions, any earnings or losses (net appreciation
or net depreciation) of the Trust Fund shall be allocated in the same proportion
that each Participant's and Former Participant's nonsegregated accounts bear to
the total of all Participants' and Former Participants' nonsegregated accounts
as of such date.

      Participants' transfers from other qualified plans deposited in the
general Trust Fund shall share in any earnings and losses (net appreciation or
net depreciation) of the Trust Fund in the same manner provided above. Each
segregated account maintained on behalf of a Participant shall be credited or
charged with its separate earnings and losses.

            (f)   Minimum Allocations Required for Top Heavy Plan Years:
Notwithstanding the foregoing, for any Top Heavy Plan Year, the sum of the
Employer contributions allocated to the Participant's Account of each Employee
shall be equal to at least three percent (3%) of such Employee's "415
Compensation" (reduced by contributions and forfeitures, if any, allocated to
each Employee in any defined contribution plan included with this Plan in a
Required Aggregation Group). However, if (1) the sum of the Employer
contributions allocated to the Participant's Account of each Key Employee for
such Top Heavy Plan Year is less than three percent (3%) of each Key Employee's
"415 Compensation" and (2) this Plan is not required to be included in an
Aggregation Group to enable a defined benefit plan to meet the requirements of
Code Section 401(a)(4) or 410, the sum of the Employer contributions allocated
to the Participant's Account of each Employee shall be equal to the largest
percentage allocated to the Participant's Account of any Key Employee.

      However, no such minimum allocation shall be required in this Plan for any
Employee who participates in another defined contribution plan subject to Code
Section 412 included with this Plan in a Required Aggregation Group.

            (g)   For purposes of the minimum allocations set forth above, the
percentage allocated to the Participant's Account of any Key Employee shall be
equal to the ratio of the sum of the Employer contributions allocated on behalf
of such Key Employee divided by the "415 Compensation" for such Key Employee.

                                       17
<PAGE>

            (h)   For any Top Heavy Plan Year, the minimum allocations set forth
above shall be allocated to the Participant's Account of all Employees who are
Participants and who are employed by the Employer on the last day of the Plan
Year, including Employees who have (1) failed to complete a Year of Service; (2)
declined to make mandatory contributions (if required) to the Plan; and (3) been
excluded from participation because of their level of Compensation.

            (i)   For the purposes of this Section, "415 Compensation" in excess
of $150,000 (or such other amount provided in the Code) shall be disregarded.
Such amount shall be adjusted for increases in the cost of living in accordance
with Code Section 401(a)(17)(B), except that the dollar increase in effect on
January 1 of any calendar year shall be effective for the Plan Year beginning
with or within such calendar year. If "415 Compensation" for any prior
determination period is taken into account in determining a Participant's
minimum benefit for the current Plan Year, the "415 Compensation" for such
determination period is subject to the applicable annual "415 Compensation"
limit in effect for that prior period. For this purpose, in determining the
minimum benefit in Plan Years beginning on or after January 1, 1989, the annual
"415 Compensation" limit in effect for determination periods beginning before
that date is $200,000 (or such other amount as adjusted for increases in the
cost of living in accordance with Code Section 415(d) for determination periods
beginning on or after January 1, 1989, and in accordance with Code Section
401(a)(17)(B) for determination periods beginning on or after January 1, 1994).
For determination periods beginning prior to January 1, 1989, the $200,000 limit
shall apply only for Top Heavy Plan Years and shall not be adjusted. For any
short Plan Year the "415 Compensation" limit shall be an amount equal to the
"415 Compensation" limit for the calendar year in which the Plan Year begins
multiplied by the ratio obtained by dividing the number of full months in the
short Plan Year by twelve (12).

            (j)   Notwithstanding anything in this Section to the contrary, all
information necessary to properly reflect a given transaction may not be
available until after the date specified herein for processing such transaction,
in which case the transaction will be reflected when such information is
received and processed. Subject to express limits that may be imposed under the
Code, the processing of any contribution, distribution or other transaction may
be delayed for any legitimate business reason (including, but not limited to,
failure of systems or computer programs, failure of the means of the
transmission of data, force majeure, the failure of a service provider to timely
receive values or prices, and the correction for errors or omissions or the
errors or omissions of any service provider). The processing date of a
transaction will be binding for all purposes of the Plan.

            (k)   Notwithstanding anything to the contrary, if this is a Plan
that would otherwise fail to meet the requirements of Code Section 410(b)(1) and
the Regulations thereunder because Employer contributions would not be allocated
to a sufficient number or percentage of Participants for a Plan Year, then the
following rules shall apply:

                  (1)   The group of Participants eligible to share in the
      Employer's contribution for the Plan Year shall be expanded to include the
      minimum number of Participants who would not otherwise be eligible as are
      necessary to satisfy the applicable test specified above. The specific
      Participants who shall become eligible under the terms of this paragraph
      shall be those who have not separated from service prior to the last day

                                       18
<PAGE>

      of the Plan Year and have completed the greatest number of Hours of
      Service in the Plan Year.

                  (2)   If after application of paragraph (1) above, the
      applicable test is still not satisfied, then the group of Participants
      eligible to share in the Employer's contribution for the Plan Year shall
      be further expanded to include the minimum number of Participants who have
      separated from service prior to the last day of the Plan Year as are
      necessary to satisfy the applicable test. The specific Participants who
      shall become eligible to share shall be those Participants who have
      completed the greatest number of Hours of Service in the Plan Year before
      terminating employment.

                  (3)   Nothing in this Section shall permit the reduction of a
      Participant's accrued benefit. Therefore any amounts that have previously
      been allocated to Participants may not be reallocated to satisfy these
      requirements. In such event, the Employer shall make an additional
      contribution equal to the amount such affected Participants would have
      received had they been included in the allocations, even if it exceeds the
      amount which would be deductible under Code Section 404. Any adjustment to
      the allocations pursuant to this paragraph shall be considered a
      retroactive amendment adopted by the last day of the Plan Year.

                  (4)   Notwithstanding the foregoing, if the plan would fail to
      satisfy Code Section 410(b) if the coverage tests were applied by treating
      those Participants whose only allocation would otherwise be provided under
      the top heavy formula as if they were not currently benefiting under the
      Plan, then, for purposes of this Section 4.3(k), such Participants shall
      be treated as not benefiting and shall therefore be eligible to be
      included in the expanded class of Participants who will share in the
      allocation provided under the Plan's non top heavy formula.

      4.4   MAXIMUM ANNUAL ADDITIONS.

            (a)   Notwithstanding the foregoing, for "limitation years"
beginning after December 31, 1994, the maximum "annual additions" credited to a
Participant's accounts for any "limitation year" shall equal the lesser of: (1)
$30,000 adjusted annually as provided in Code Section 415(d) pursuant to the
Regulations, or (2) twenty-five percent (25%) of the Participant's "415
Compensation" for such "limitation year." If the Employer contribution that
would otherwise be contributed or allocated to the Participant's accounts would
cause the "annual additions" for the "limitation year" to exceed the maximum
"annual additions," the amount contributed or allocated will be reduced so that
the "annual additions" for the "limitation year" will equal the maximum "annual
additions," and any amount in excess of the maximum "annual additions," which
would have been allocated to such Participant may be allocated to other
Participants. For any short "limitation year," the dollar limitation in (1)
above shall be reduced by a fraction, the numerator of which is the number of
full months in the short "limitation year" and the denominator of which is
twelve (12).

            (b)   For purposes of applying the limitations of Code Section 415,
"annual additions" means the sum credited to a Participant's accounts for any
"limitation year" of (1) Employer contributions, (2) Employee contributions, (3)
forfeitures, (4) amounts allocated, after

                                       19
<PAGE>

March 31, 1984, to an individual medical account, as defined in Code Section
415(l)(2) which is part of a pension or annuity plan maintained by the Employer
and (5) amounts derived from contributions paid or accrued after December 31,
1985, in taxable years ending after such date, which are attributable to
post-retirement medical benefits allocated to the separate account of a key
employee (as defined in Code Section 419A(d)(3)) under a welfare benefit plan
(as defined in Code Section 419(e)) maintained by the Employer. Except, however,
the "415 Compensation" percentage limitation referred to in paragraph (a)(2)
above shall not apply to: (1) any contribution for medical benefits (within the
meaning of Code Section 419A(f)(2)) after separation from service which is
otherwise treated as an "annual addition," or (2) any amount otherwise treated
as an "annual addition" under Code Section 415(1)(1).

            (c)   For purposes of applying the limitations of Code Section 415,
the transfer of funds from one qualified plan to another is not an "annual
addition." In addition, the following are not Employee contributions for the
purposes of Section 4.4(b)(2): (1) rollover contributions (as defined in Code
Sections 402(e)(6), 403(a)(4), 403(b)(8) and 408(d)(3)); (2) repayments of loans
made to a Participant from the Plan; (3) repayments of distributions received by
an Employee pursuant to Code Section 411(a)(7)(B) (cash-outs); (4) repayments of
distributions received by an Employee pursuant to Code Section 411(a)(3)(D)
(mandatory contributions); and (5) Employee contributions to a simplified
employee pension excludable from gross income under Code Section 408(k)(6).

            (d)   For purposes of applying the limitations of Code Section 415,
the "limitation year" shall be the Plan Year.

            (e)   For the purpose of this Section, all qualified defined
contribution plans (whether terminated or not) ever maintained by the Employer
shall be treated as one defined contribution plan.

            (f)   For the purpose of this Section, if the Employer is a member
of a controlled group of corporations, trades or businesses under common control
(as defined by Code Section 1563(a) or Code Section 414(b) and (c) as modified
by Code Section 415(h)), is a member of an affiliated service group (as defined
by Code Section 414(m)), or is a member of a group of entities required to be
aggregated pursuant to Regulations under Code Section 414(o), all Employees of
such Employers shall be considered to be employed by a single Employer.

            (g)   For the purpose of this Section, if this Plan is a Code
Section 413(c) plan, each Employer who maintains this Plan will be considered to
be a separate Employer.

            (h)   (1)   If a Participant participates in more than one defined
      contribution plan maintained by the Employer which have different
      Anniversary Dates, the maximum "annual additions" under this Plan shall
      equal the maximum "annual additions" for the "limitation year" minus any
      "annual additions" previously credited to such Participant's accounts
      during the "limitation year."

                  (2)   If a Participant participates in both a defined
      contribution plan subject to Code Section 412 and a defined contribution
      plan not subject to Code Section 412 maintained by the Employer which have
      the same Anniversary Date, "annual

                                       20
<PAGE>

      additions" will be credited to the Participant's accounts under the
      defined contribution plan subject to Code Section 412 prior to crediting
      "annual additions" to the Participant's accounts under the defined
      contribution plan not subject to Code Section 412.

                  (3)   If a Participant participates in more than one defined
      contribution plan not subject to Code Section 412 maintained by the
      Employer which have the same Anniversary Date, the maximum "annual
      additions" under this Plan shall equal the product of (A) the maximum
      "annual additions" for the "limitation year" minus any "annual additions"
      previously credited under subparagraphs (1) or (2) above, multiplied by
      (B) a fraction (i) the numerator of which is the "annual additions" which
      would be credited to such Participant's accounts under this Plan without
      regard to the limitations of Code Section 415 and (ii) the denominator of
      which is such "annual additions" for all plans described in this
      subparagraph.

            (i)   Notwithstanding anything contained in this Section to the
contrary, the limitations, adjustments and other requirements prescribed in this
Section shall at all times comply with the provisions of Code Section 415 and
the Regulations thereunder.

      4.5   ADJUSTMENT FOR EXCESSIVE ANNUAL ADDITIONS.

            (a)   If, as a result of a reasonable error in estimating a
Participant's Compensation, a reasonable error in determining the amount of
elective deferrals (within the meaning of Code Section 402(g)(3)) that may be
made with respect to any Participant under the limits of Section 4.4 or other
facts and circumstances to which Regulation 1.415-6(b)(6) shall be applicable,
the "annual additions" under this Plan would cause the maximum "annual
additions" to be exceeded for any Participant, the "excess amount" will be
disposed of in one of the following manners, as uniformly determined by the
Administrator for all Participants similarly situated.

                  (1)   If the Participant is covered by the Plan at the end of
      the "limitation year," the "excess amount" will be used to reduce the
      Employer contribution for such Participant in the next "limitation year,"
      and each succeeding "limitation year" if necessary;

                  (2)   If, after the application of subparagraph (1) above, an
      "excess amount" still exists, and the Participant is not covered by the
      Plan at the end of the "limitation year," the "excess amount" will be held
      unallocated in a "Section 415 suspense account." The "Section 415 suspense
      account" will be applied to reduce future Employer contributions for all
      remaining Participants in the next "limitation year," and each succeeding
      "limitation year" if necessary;

                  (3)   If a "Section 415 suspense account" is in existence at
      any time during the "limitation year" pursuant to this Section, it will
      not participate in the allocation of investment gains and losses of the
      Trust Fund. If a "Section 415 suspense account" is in existence at any
      time during a particular "limitation year," all amounts in the "Section
      415 suspense account" must be allocated and reallocated to Participants'
      accounts before any Employer contributions or any Employee contributions
      may be made

                                       21
<PAGE>

      to the Plan for that "limitation year." "Excess amounts" may not be
      distributed to Participants or Former Participants.

            (b)   For purposes of this Article, "excess amount" for any
Participant for a "limitation year" shall mean the excess, if any, of (1) the
"annual additions" which would be credited to the Participant's account under
the terms of the Plan without regard to the limitations of Code Section 415 over
(2) the maximum "annual additions" determined pursuant to Section 4.4.

            (c)   For purposes of this Section, "Section 415 suspense account"
shall mean an unallocated account equal to the sum of "excess amounts" for all
Participants in the Plan during the "limitation year."

      4.6   ROLLOVERS AND PLAN-TO-PLAN TRANSFERS FROM QUALIFIED PLANS.

            (a)   With the consent of the Administrator, amounts may be
transferred (within the meaning of Code Section 414(1)) to this Plan from other
tax qualified plans under Code Section 401 (a) by Eligible Employees, provided
the trust from which such funds are transferred permits the transfer to be made
and the transfer will not jeopardize the tax exempt status of the Plan or Trust
or create adverse tax consequences for the Employer. Prior to accepting any
transfers to which this Section applies, the Administrator may require an
opinion of counsel that the amounts to be transferred meet the requirements of
this Section. The amounts transferred shall be set up in a separate account
herein referred to as a Participant's Transfer/Rollover Account. Furthermore,
for vesting purposes, the Participant's portion of the Participant's
Transfer/Rollover Account attributable to any transfer shall be subject to
Section 6.4(b).

      Except as permitted by Regulations (including Regulation 1.411(d)-4),
amounts attributable to elective contributions (as defined in Regulation
1.401(k)-1(g)(3)), including amounts treated as elective contributions, which
are transferred from another qualified plan in a plan-to-plan transfer (other
than a direct rollover) shall be subject to the distribution limitations
provided for in Regulation 1.401(k)-1(d).

            (b)   With the consent of the Administrator, the Plan may accept a
"rollover" by Eligible Employees, provided the "rollover" will not jeopardize
the tax exempt status of the Plan or create adverse tax consequences for the
Employer. Prior to accepting any "rollovers" to which this Section applies, the
Administrator may require the Employee to establish (by providing opinion of
counsel or otherwise) that the amounts to be rolled over to this Plan meet the
requirements of this Section. The amounts rolled over shall be set up in a
separate account herein referred to as a "Participant's Transfer/Rollover
Account." Such account shall be fully Vested at all times and shall not be
subject to Forfeiture for any reason.

      For purposes of this Section, the term "qualified plan" shall mean any tax
qualified plan under Code Section 401(a), or, any other plans from which
distributions are eligible to be rolled over into this Plan pursuant to the
Code. The term "rollover" means: (i) amounts transferred to this Plan directly
from another qualified plan; (ii) distributions received by an Employee from
other "qualified plans" which are eligible for tax-free rollover to a "qualified
plan" and which are

                                       22
<PAGE>

transferred by the Employee to this Plan within sixty (60) days following
receipt thereof; (iii) amounts transferred to this Plan from a conduit
individual retirement account provided that the conduit individual retirement
account has no assets other than assets which (A) were previously distributed to
the Employee by another "qualified plan," (B) were eligible for tax-free
rollover to a "qualified plan" and (C) were deposited in such conduit individual
retirement account within sixty (60) days of receipt thereof; (iv) amounts
distributed to the Employee from a conduit individual retirement account meeting
the requirements of clause (iii) above, and transferred by the Employee to this
Plan within sixty (60) days of receipt thereof from such conduit individual
retirement account; and (v) any other amounts which are eligible to be rolled
over to this Plan pursuant to the Code.

            (c)   Amounts in a Participant's Transfer/Rollover Account shall be
held by the Trustee pursuant to the provisions of this Plan and may not be
withdrawn by, or distributed to the Participant, in whole or in part, except as
provided in paragraph (d) of this Section. The Trustee shall have no duty or
responsibility to inquire as to the propriety of the amount, value or type of
assets transferred, nor to conduct any due diligence with respect to such
assets; provided, however, that such assets are otherwise eligible to be held by
the Trustee under the terms of this Plan.

            (d)   The Administrator, at the election of the Participant, shall
direct the Trustee to distribute all or a portion of the amount credited to the
Participant's Transfer/Rollover Account. Any distributions of amounts held in a
Participant's Transfer/Rollover Account shall be made in a manner which is
consistent with and satisfies the provisions of Section 6.5, including, but not
limited to, all notice and consent requirements of Code Section 411(a)(11) and
the Regulations thereunder. Furthermore, such amounts shall be considered as
part of a Participant's benefit in determining whether an involuntary cash-out
of benefits may be made without Participant consent.

            (e)   The Administrator may direct that Employee transfers and
rollovers made after a Valuation Date be segregated into a separate account for
each Participant until such time as the allocations pursuant to this Plan have
been made, at which time they may remain segregated or be invested as part of
the general Trust Fund.

            (f)   This Plan shall not accept any direct or indirect transfers
(as that term is defined and interpreted under Code Section 401(a)(11) and the
Regulations thereunder) from a defined benefit plan, money purchase plan
(including a target benefit plan), stock bonus or profit sharing plan which
would otherwise have provided for a life annuity form of payment to the
Participant.

            (g)   Notwithstanding anything herein to the contrary, a transfer
directly to this Plan from another qualified plan (or a transaction having the
effect of such a transfer) shall only be permitted if it will not result in the
elimination or reduction of any "Section 411(d)(6) protected benefit" as
described in Section 8.1.

      4.7   QUALIFIED MILITARY SERVICE. Notwithstanding any provision of this
Plan to the contrary, effective December 12, 1994, contributions, benefits and
service will be provided in accordance with Code Section 414(u).

                                       23
<PAGE>

                                    ARTICLE V
                                   VALUATIONS

      5.1   VALUATION OF THE TRUST FUND. The Administrator shall direct the
Trustee, as of each Valuation Date, to determine the net worth of the assets
comprising the Trust Fund as it exists on the Valuation Date. In determining
such net worth, the Trustee shall value the assets comprising the Trust Fund at
their fair market value (or their contractual value in the case of a Contract or
Policy) as of the Valuation Date and shall deduct all expenses for which the
Trustee has not yet obtained reimbursement from the Employer or the Trust Fund.

      5.2   METHOD OF VALUATION. In determining the fair market value of
securities held in the Trust Fund which are listed on a registered stock
exchange, the Administrator shall direct the Trustee to value the same at the
prices they were last traded on such exchange preceding the close of business on
the Valuation Date. If such securities were not traded on the Valuation Date, or
if the exchange on which they are traded was not open for business on the
Valuation Date, then the securities shall be valued at the prices at which they
were last traded prior to the Valuation Date. Any unlisted security held in the
Trust Fund shall be valued at its bid price next preceding the close of business
on the Valuation Date, which bid price shall be obtained from a registered
broker or an investment banker. In determining the fair market value of assets
other than securities for which trading or bid prices can be obtained, the
Trustee may appraise such assets itself, or in its discretion, employ one or
more appraisers for that purpose and rely on the values established by such
appraiser or appraisers.

                                   ARTICLE VI
                   DETERMINATION AND DISTRIBUTION OF BENEFITS

      6.1   DETERMINATION OF BENEFITS UPON RETIREMENT. Every Participant may
terminate employment with the Employer and retire for the purposes hereof on the
Participant's Normal Retirement Date or Early Retirement Date. However, a
Participant may postpone the termination of employment with the Employer to a
later date, in which event the participation of such Participant in the Plan,
including the right to receive allocations pursuant to Section 4.3, shall
continue until such Participant's Late Retirement Date. Upon a Participant's
Retirement Date or attainment of Normal Retirement Date without termination of
employment with the Employer, or as soon thereafter as is practicable, the
Trustee shall distribute, at the election of the Participant, all amounts
credited to such Participant's Account in accordance with Section 6.5.

      6.2   DETERMINATION OF BENEFITS UPON DEATH.

            (a)   Upon the death of a Participant before the Participant's
Retirement Date or other termination of employment, all amounts credited to such
Participant's Account shall become fully Vested. The Administrator shall direct
the Trustee, in accordance with the provisions of Sections 6.6 and 6.7, to
distribute the value of the deceased Participant's accounts to the Participant's
Beneficiary.

            (b)   Upon the death of a Former Participant, the Administrator
shall direct the Trustee, in accordance with the provisions of Sections 6.6 and
6.7, to distribute any remaining

                                       24
<PAGE>

Vested amounts credited to the accounts of a deceased Former Participant to such
Former Participant's Beneficiary.

            (c)   Any security interest held by the Plan by reason of an
outstanding loan to the Participant or Former Participant shall be taken into
account in determining the amount of the death benefit.

            (d)   The Administrator may require such proper proof of death and
such evidence of the right of any person to receive payment of the value of the
account of a deceased Participant or Former Participant as the Administrator may
deem desirable. The Administrator's determination of death and of the right of
any person to receive payment shall be conclusive.

            (e)   The Beneficiary of the death benefit payable pursuant to this
Section shall be the Participant's spouse. Except, however, the Participant may
designate a Beneficiary other than the spouse if:

                  (1)   the spouse has waived the right to be the Participant's
      Beneficiary, or

                  (2)   the Participant is legally separated or has been
      abandoned (within the meaning of local law) and the Participant has a
      court order to such effect (and there is no "qualified domestic relations
      order" as defined in Code Section 414(p) which provides otherwise), or

                  (3)   the Participant has no spouse, or

                  (4)   the spouse cannot be located.

      In such event, the designation of a Beneficiary shall be made on a form
satisfactory to the Administrator. A Participant may at any time revoke a
designation of a Beneficiary or change a Beneficiary by filing written (or in
such other form as permitted by the Internal Revenue Service) notice of such
revocation or change with the Administrator. However, the Participant's spouse
must again consent in writing (or in such other form as permitted by the
Internal Revenue Service) to any change in Beneficiary unless the original
consent acknowledged that the spouse had the right to limit consent only to a
specific Beneficiary and that the spouse voluntarily elected to relinquish such
right.

            (f)   In the event no valid designation of Beneficiary exists, or if
the Beneficiary is not alive at the time of the Participant's death, the death
benefit will be paid in the following order of priority:

                  (1)   the Participant's surviving spouse;

                  (2)   the Participant's children, including adopted children,
      per stirpes;

                  (3)   the Participant's surviving parents, in equal shares; or

                  (4)   the Participant's estate.

                                       25
<PAGE>

      If the Beneficiary does not predecease the Participant, but dies prior to
distribution of the death benefit, the death benefit will be paid to the
Beneficiary's estate.

            (g)   Notwithstanding anything in this Section to the contrary, if a
Participant has designated the spouse as a Beneficiary, then a divorce decree or
a legal separation that relates to such spouse shall revoke the Participant's
designation of the spouse as a Beneficiary unless the decree or a qualified
domestic relations order (within the meaning of Code Section 414(p)) provides
otherwise.

            (h)   Any consent by the Participant's spouse to waive any rights to
the death benefit must be in writing (or in such other form as permitted by the
Internal Revenue Service), must acknowledge the effect of such waiver, and be
witnessed by a Plan representative or a notary public. Further, the spouse's
consent must be irrevocable and must acknowledge the specific nonspouse
Beneficiary.

      6.3   DISABILITY RETIREMENT BENEFITS. No disability benefits, other than
those payable upon termination of employment, are provided in this Plan.

      6.4   DETERMINATION OF BENEFITS UPON TERMINATION.

            (a)   If a Participant's employment with the Employer is terminated
for any reason other than death or retirement, then such Participant shall be
entitled to such benefits as are provided hereinafter pursuant to this Section
6.4.

      Distribution of the funds due to a Terminated Participant shall be made on
the occurrence of an event which would result in the distribution had the
Terminated Participant remained in the employ of the Employer (upon the
Participant's death, Early or Normal Retirement). Any distribution under this
paragraph shall be made in a manner which is consistent with and satisfies the
provisions of Section 6.5, including, but not limited to, all notice and consent
requirements of Code Section 411(a)(11) and the Regulations thereunder.

      For purposes of this Section 6.4, if the value of a Terminated
Participant's Vested benefit is zero, the Terminated Participant shall be deemed
to have received a distribution of such Vested benefit.

            (b)   The Vested portion of any Participant's Account shall be a
percentage of the total amount credited to the Participant's Account determined
on the basis of the Participant's number of Years of Service according to the
following schedule:

<TABLE>
<CAPTION>
                  Vesting Schedule
Years of Service                          Percentage
<S>                                       <C>
  Less than 5                                 0%
      5                                     100%
</TABLE>

            (c)   Notwithstanding the vesting provided for in paragraph (b)
above, for any Top Heavy Plan Year, the Vested portion of the Participant's
Account of any Participant who has an Hour of Service after the Plan becomes top
heavy shall be a percentage of the total amount

                                       26
<PAGE>

credited to the Participant's Account determined on the basis of the
Participant's number of Years of Service according to the following schedule:

<TABLE>
<CAPTION>
                   Vesting Schedule
Years of Service                          Percentage
<S>                                       <C>
  Less than 2                                 0%
       2                                     20%
       3                                     40%
       4                                     60%
       5                                     80%
       6                                    100%
</TABLE>

      If in any subsequent Plan Year, the Plan ceases to be a Top Heavy Plan,
the Administrator shall revert to the vesting schedule in effect before this
Plan became a Top Heavy Plan. Any such reversion shall be treated as a Plan
amendment pursuant to the terms of the Plan.

            (d)   Notwithstanding the vesting schedule above, the Vested
percentage of a Participant's Account shall not be less than the Vested
percentage attained as of the later of the effective date or adoption date of
this amendment and restatement.

            (e)   Notwithstanding the vesting schedule above, upon the complete
discontinuance of the Employer contributions to the Plan or upon any full or
partial termination of the Plan, all amounts then credited to the account of any
affected Participant shall become 100% Vested and shall not thereafter be
subject to Forfeiture.

            (f)   The computation of a Participant's nonforfeitable percentage
of such Participant's interest in the Plan shall not be reduced as the result of
any direct or indirect amendment to this Plan. In the event that the Plan is
amended to change or modify any vesting schedule, or if the Plan is amended in
any way that directly or indirectly affects the computation of the Participant's
nonforfeitable percentage, or if the Plan is deemed amended by an automatic
change to a top heavy vesting schedule, then each Participant with at least
three (3) Years of Service as of the expiration date of the election period may
elect to have such Participant's nonforfeitable percentage computed under the
Plan without regard to such amendment or change. If a Participant fails to make
such election, then such Participant shall be subject to the new vesting
schedule. The Participant's election period shall commence on the adoption date
of the amendment and shall end sixty (60) days after the latest of:

                  (1)   the adoption date of the amendment,

                  (2)   the effective date of the amendment, or

                  (3)   the date the Participant receives written notice of the
      amendment from the Employer or Administrator.

            (g)   In determining Years of Service for purposes of vesting under
the Plan, Years of Service prior to the Effective Date of the Plan and prior to
the vesting computation period in which an Employee attains age eighteen (18)
shall be excluded.

                                       27
<PAGE>

      6.5   DISTRIBUTION OF BENEFITS.

            (a)   The Administrator, pursuant to the election of the
Participant, shall direct the Trustee to distribute to a Participant or such
Participant's Beneficiary any amount to which the Participant is entitled under
the Plan in one lump-sum payment in cash.

            (b)   Any distribution to a Participant, for Plan Years beginning
after August 5, 1997, who has a benefit which exceeds $5,000 ($3,500 for Plan
Years beginning prior to August 6, 1997) or, if the distribution is made prior
to March 22, 1999, has ever exceeded $5,000 ($3,500 for Plan Years beginning
prior to August 6, 1997) at the time of any prior distribution, shall require
such Participant's written (or in such other form as permitted by the Internal
Revenue Service) consent pursuant to this Section if such distribution occurs
prior to the time the benefit is "immediately distributable." A benefit is
"immediately distributable" if any part of the benefit could be distributed to
the Participant (or surviving spouse) before the Participant attains (or would
have attained if not deceased) the later of the Participant's Normal Retirement
Age or age 62.

            (c)   The following rules will apply to the consent requirements set
forth in subsection (b):

                  (1)   The Participant must be informed of the right to defer
      receipt of the distribution. If a Participant fails to consent, it shall
      be deemed an election to defer the distribution of any benefit. However,
      any election to defer the receipt of benefits shall not apply with respect
      to distributions which are required under Section 6.5(d).

                  (2)   Notice of the rights specified under this paragraph
      shall be provided no less than thirty (30) days and no more than ninety
      (90) days before the date the distribution commences.

                  (3)   Written (or such other form as permitted by the Internal
      Revenue Service) consent of the Participant to the distribution must not
      be made before the Participant receives the notice and must not be made
      more than ninety (90) days before the date the distribution commences.

                  (4)   No consent shall be valid if a significant detriment is
      imposed under the Plan on any Participant who does not consent to the
      distribution.

      Any such distribution may commence less than thirty (30) days after the
notice required under Regulation 1.411 (a)-11(c) is given, provided that: (1)
the Administrator clearly informs the Participant that the Participant has a
right to a period of at least thirty (30) days after receiving the notice to
consider the decision of whether or not to elect a distribution (and, if
applicable, a particular distribution option), and (2) the Participant, after
receiving the notice, affirmatively elects a distribution.

            (d)   Notwithstanding any provision in the Plan to the contrary, the
distribution of a Participant's benefits made on or after January 1, 1997 shall
be made in accordance with the following requirements and shall otherwise comply
with Code Section 401(a)(9) and the

                                       28
<PAGE>

Regulations thereunder (including Regulation 1.401(a)(9)-2), the provisions of
which are incorporated herein by reference:

                  (1)   A Participant's benefits shall be distributed or must
      begin to be distributed not later than April 1st of the calendar year
      following the later of (i) the calendar year in which the Participant
      attains age 70 1/2 or (ii) the calendar year in which the Participant
      retires, provided, however, that this clause (ii) shall not apply in the
      case of a Participant who is a "five (5) percent owner" at any time during
      the Plan Year ending with or within the calendar year in which such owner
      attains age 70 1/2. Such distributions shall be equal to or greater than
      any required distribution.

                  (2)   Distributions to a Participant and the Participant's
      Beneficiaries shall only be made in accordance with the incidental death
      benefit requirements of Code Section 401(a)(9)(G) and the Regulations
      thereunder.

      With respect to distributions under the Plan made for calendar years
beginning on or after January 1, 2002, the Plan will apply the minimum
distribution requirements of Code Section 401(a)(9) in accordance with the
Regulations under Code Section 401(a)(9) that were proposed on January 17, 2001,
notwithstanding any provision of the Plan to the contrary. This amendment shall
continue in effect until the end of the last calendar year beginning before the
effective date of final Regulations under Code Section 401(a)(9) or such other
date specified in guidance published by the Internal Revenue Service.

            (e)   For purposes of this Section, the life expectancy of a
Participant and a Participant's spouse shall not be redetermined in accordance
with Code Section 40 1 (a)(9)(D). Life expectancy and joint and last survivor
expectancy shall be computed using the return multiples in Tables V and VI of
Regulation 1.72-9.

            (f)   The restrictions imposed by this Section shall not apply if a
Participant has, prior to January 1, 1984, made a written designation to have
retirement benefits paid in an alternative method acceptable under Code Section
401(a)(9) as in effect prior to the enactment of the Tax Equity and Fiscal
Responsibility Act of 1982.

            (g)   All annuity Contracts under this Plan shall be
non-transferable when distributed. Furthermore, the terms of any annuity
Contract purchased and distributed to a Participant or spouse shall comply with
all of the requirements of the Plan.

            (h)   If a distribution is made to a Participant who has not severed
employment and who is not fully Vested in the Participant's Account and the
Participant may increase the Vested percentage in such account, then, at any
relevant time the Participant's Vested portion of the account will be equal to
an amount ("X") determined by the formula:

                            X equals P(AB plus D) - D

      For purposes of applying the formula: P is the Vested percentage at the
relevant time, AB is the account balance at the relevant time, and D is the
amount of distribution.

                                       29
<PAGE>

      6.6   DISTRIBUTION OF BENEFITS UPON DEATH.

            (a)   The death benefit payable pursuant to Section 6.2 shall be
paid to the Participant's Beneficiary in one lump-sum payment in cash subject to
the rules of Section 6.6(b).

            (b)   Notwithstanding any provision in the Plan to the contrary,
distributions upon the death of a Participant shall be made in accordance with
the following requirements and shall otherwise comply with Code Section
401(a)(9) and the Regulations thereunder. If it is determined, pursuant to
Regulations, that the distribution of a Participant's interest has begun and the
Participant dies before the entire interest has been distributed, the remaining
portion of such interest shall be distributed at least as rapidly as under the
method of distribution selected pursuant to Section 6.5 as of the date of death.
If a Participant dies before receiving any distributions of the interest in the
Plan or before distributions are deemed to have begun pursuant to Regulations,
then the death benefit shall be distributed to the Participant's Beneficiaries
by December 31st of the calendar year in which the fifth anniversary of the
Participant's date of death occurs.

            (c)   For purposes of this Section, any amount paid to a child of
the Participant will be treated as if it had been paid to the surviving spouse
if the amount becomes payable to the surviving spouse when the child reaches the
age of majority.

            (d)   Subject to the spouse's right of consent afforded under the
Plan, the restrictions imposed by this Section shall not apply if a Participant
has, prior to January 1, 1984, made a written designation to have death benefits
paid in an alternative method acceptable under Code Section 401(a)(9) as in
effect prior to the enactment of the Tax Equity and Fiscal Responsibility Act of
1982.

      6.7   TIME OF SEGREGATION OR DISTRIBUTION. Except as limited by Sections
6.5 and 6.6, whenever the Trustee is to make a distribution the distribution may
be made on such date or as soon thereafter as is practicable. However, unless a
Former Participant elects in writing to defer the receipt of benefits (such
election may not result in a death benefit that is more than incidental), the
payment of benefits shall occur not later than the sixtieth (60th) day after the
close of the Plan Year in which the latest of the following events occurs: (a)
the date on which the Participant attains the earlier of age 65 or the Normal
Retirement Age specified herein; (b) the tenth (10th) anniversary of the year in
which the Participant commenced participation in the Plan; or (c) the date the
Participant terminates service with the Employer.

      Notwithstanding the foregoing, the failure of a Participant to consent to
a distribution that is "immediately distributable" (within the meaning of
Section 6.5), shall be deemed to be an election to defer the commencement of
payment of any benefit sufficient to satisfy this Section.

      6.8   DISTRIBUTION FOR MINOR OR INCOMPETENT BENEFICIARY. In the event a
distribution is to be made to a minor or incompetent Beneficiary, then the
Administrator may direct that such distribution be paid to the legal guardian,
or if none in the case of a minor Beneficiary, to a parent of such Beneficiary
or a responsible adult with whom the Beneficiary maintains residence, or to the
custodian for such Beneficiary under the Uniform Gift to Minors Act or Gift to
Minors Act, if such is permitted by the laws of the state in which said
Beneficiary

                                       30
<PAGE>

resides. Such a payment to the legal guardian, custodian or parent of a minor
Beneficiary shall fully discharge the Trustee, Employer, and Plan from further
liability on account thereof.

      6.9   LOCATION OF PARTICIPANT OR BENEFICIARY UNKNOWN. In the event that
all, or any portion, of the distribution payable to a Participant or Beneficiary
hereunder shall, at the later of the Participant's attainment of age 62 or
Normal Retirement Age, remain unpaid solely by reason of the inability of the
Administrator, after sending a registered letter, return receipt requested, to
the last known address, and after further diligent effort, to ascertain the
whereabouts of such Participant or Beneficiary, the amount so distributable
shall be treated as a Forfeiture pursuant to the Plan. Notwithstanding the
foregoing, effective October 1, 2001, or if later, the adoption date of this
amendment and restatement, if the value of a Participant's Vested benefit
derived from Employer and Employee contributions does not exceed $5,000 ($3,500
for Plan Years beginning prior to August 6, 1997), then the amount distributable
may, in the sole discretion of the Administrator, either be treated as a
Forfeiture, or be paid directly to an individual retirement account described in
Code Section 408(a) or an individual retirement annuity described in Code
Section 408(b) at the time it is determined that the whereabouts of the
Participant or the Participant's Beneficiary cannot be ascertained. In the event
a Participant or Beneficiary is located subsequent to the Forfeiture, such
benefit shall be restored, first from Forfeitures, if any, and then from an
additional Employer contribution if necessary. However, regardless of the
preceding, a benefit which is lost by reason of escheat under applicable state
law is not treated as a Forfeiture for purposes of this Section nor as an
impermissable forfeiture under the Code.

      6.10  PRE-RETIREMENT DISTRIBUTION. Unless otherwise provided, at such time
as a Participant shall have attained the age of 62 years, the Administrator, at
the election of the Participant who has not severed employment with the
Employer, shall direct the Trustee to distribute all or a portion of the amount
then credited to the accounts maintained on behalf of the Participant. However,
no distribution from the Participant's Account shall occur prior to 100%
vesting. No distribution shall be made from the Participant's account unless the
Participant has completed five (5) years of participation in the Plan. In the
event that the Administrator makes such a distribution, the Participant shall
continue to be eligible to participate in the Plan on the same basis as any
other Employee. Any distribution made pursuant to this Section shall be made in
a manner consistent with Section 6.5, including, but not limited to, all notice
and consent requirements of Code Section 411(a)(11) and the Regulations
thereunder.

      6.11  ADVANCE DISTRIBUTION FOR HARDSHIP.

            (a)   The Administrator, at the election of the Participant, shall
direct the Trustee to distribute to any Participant in any one Plan Year up to
the lesser of 100% of the Participant's Account valued as of the last Valuation
Date or the amount necessary to satisfy the immediate and heavy financial need
of the Participant. Any distribution made pursuant to this Section shall be
deemed to be made as of the first day of the Plan Year or, if later, the
Valuation Date immediately preceding the date of distribution, and the
Participant's Account shall be reduced accordingly. Withdrawal under this
Section is deemed to be on account of an immediate and heavy financial need of
the Participant if the withdrawal is for:

                                       31
<PAGE>

                  (1)   Medical expenses described in Code Section 213(d)
      incurred by the Participant, the Participant's spouse, or any of the
      Participant's dependents (as defined in Code Section 152) or necessary for
      these persons to obtain medical care as described in Code Section 213(d);

                  (2)   The costs directly related to the purchase (excluding
      mortgage payments) of a principal residence for the Participant;

                  (3)   Funeral expenses for a member of the Participant's
      family;

                  (4)   Payment of tuition, related educational fees, and room
      and board expenses for the next twelve (12) months of post-secondary
      education for the Participant and the Participant's spouse, children, or
      dependents;

                  (5)   Payments necessary to prevent the eviction of the
      Participant from the Participant's principal residence or foreclosure on
      the mortgage on that residence; or

                  (6)   An immediate and heavy financial need of the Participant
      provided that the Administrator applies the need to all the Participants
      in a uniform and nondiscriminatory manner.

            (b)   No such distribution shall be made from the Participant's
Account until such Account has become fully Vested.

            (c)   Any distribution made pursuant to this Section shall be made
in a manner which is consistent with and satisfies the provisions of Section
6.5, including, but not limited to, all notice and consent requirements of Code
Section 411(a)(11) and the Regulations thereunder.

      6.12  QUALIFIED DOMESTIC RELATIONS ORDER DISTRIBUTION. All rights and
benefits, including elections, provided to a Participant in this Plan shall be
subject to the rights afforded to any "alternate payee" under a "qualified
domestic relations order." Furthermore, a distribution to an "alternate payee"
shall be permitted if such distribution is authorized by a "qualified domestic
relations order," even if the affected Participant has not separated from
service and has not reached the "earliest retirement age" under the Plan. For
the purposes of this Section, "alternate payee," "qualified domestic relations
order" and "earliest retirement age" shall have the meaning set forth under Code
Section 414(p).

                                   ARTICLE VII
                                     TRUSTEE

      7.1   BASIC RESPONSIBILITIES OF THE TRUSTEE.

            (a)   The Trustee shall have the following categories of
responsibilities:

                  (1)   Consistent with the "funding policy and method"
      determined by the Employer, to invest, manage, and control the Plan assets
      subject, however, to the direction of the Employer or an Investment
      Manager if the Trustee should appoint such manager as to all or a portion
      of the assets of the Plan;

                                       32
<PAGE>

                  (2)   At the direction of the Administrator, to pay benefits
      required under the Plan to be paid to Participants, or, in the event of
      their death, to their Beneficiaries; and

                  (3)   To maintain records of receipts and disbursements and
      furnish to the Employer and/or Administrator for each Plan Year a written
      annual report pursuant to Section 7.7.

            (b)   In the event that the Trustee shall be directed by the
Employer, or an Investment Manager with respect to the investment of any or all
Plan assets, the Trustee shall have no liability with respect to the investment
of such assets, but shall be responsible only to execute such investment
instructions as so directed.

                  (1)   The Trustee shall be entitled to rely fully on the
      written (or other form acceptable to the Administrator and the Trustee,
      including, but not limited to, voice recorded) instructions of the
      Employer, or any Fiduciary or nonfiduciary agent of the Employer, in the
      discharge of such duties, and shall not be liable for any loss or other
      liability, resulting from such direction (or lack of direction) of the
      investment of any part of the Plan assets.

                  (2)   The Trustee may delegate the duty of executing such
      instructions to any nonfiduciary agent, which may be an affiliate of the
      Trustee or any Plan representative.

            (c)   If there shall be more than one Trustee, they shall act by a
majority of their number, but may authorize one or more of them to sign papers
on their behalf.

      7.2   INVESTMENT POWERS AND DUTIES OF THE TRUSTEE.

            (a)   The Trustee shall invest and reinvest the Trust Fund to keep
the Trust Fund invested without distinction between principal and income and in
such securities or property, real or personal, wherever situated, as the Trustee
shall deem advisable, including, but not limited to, stocks, common or
preferred, open-end or closed-end mutual funds, bonds and other evidences of
indebtedness or ownership, and real estate or any interest therein. The Trustee
shall at all times in making investments of the Trust Fund consider, among other
factors, the short and long-term financial needs of the Plan on the basis of
information furnished by the Employer. In making such investments, the Trustee
shall not be restricted to securities or other property of the character
expressly authorized by the applicable law for trust investments; however, the
Trustee shall give due regard to any limitations imposed by the Code or the Act
so that at all times the Plan may qualify as a qualified Profit Sharing Plan and
Trust.

            (b)   The Trustee may employ a bank or trust company pursuant to the
terms of its usual and customary bank agency agreement, under which the duties
of such bank or trust company shall be of a custodial, clerical and
record-keeping nature.

      7.3   OTHER POWERS OF THE TRUSTEE. The Trustee, in addition to all powers
and authorities under common law, statutory authority, including the Act, and
other provisions of

                                       33
<PAGE>

the Plan, shall have the following powers and authorities, to be exercised in
the Trustee's sole discretion:

            (a)   To purchase, or subscribe for, any securities or other
property and to retain the same. In conjunction with the purchase of securities,
margin accounts may be opened and maintained;

            (b)   To sell, exchange, convey, transfer, grant options to
purchase, or otherwise dispose of any securities or other property held by the
Trustee, by private contract or at public auction. No person dealing with the
Trustee shall be bound to see to the application of the purchase money or to
inquire into the validity, expediency, or propriety of any such sale or other
disposition, with or without advertisement;

            (c)   To vote upon any stocks, bonds, or other securities; to give
general or special proxies or powers of attorney with or without power of
substitution; to exercise any conversion privileges, subscription rights or
other options, and to make any payments incidental thereto; to oppose, or to
consent to, or otherwise participate in, corporate reorganizations or other
changes affecting corporate securities, and to delegate discretionary powers,
and to pay any assessments or charges in connection therewith; and generally to
exercise any of the powers of an owner with respect to stocks, bonds,
securities, or other property. However, the Trustee shall not vote proxies
relating to securities for which it has not been assigned full investment
management responsibilities. In those cases where another party has such
investment authority or discretion, the Trustee will deliver all proxies to said
party who will then have full responsibility for voting those proxies;

            (d)   To cause any securities or other property to be registered in
the Trustee's own name, in the name of one or more of the Trustee's nominees, in
a clearing corporation, in a depository, or in book entry form or in bearer
form, but the books and records of the Trustee shall at all times show that all
such investments are part of the Trust Fund;

            (e)   To borrow or raise money for the purposes of the Plan in such
amount, and upon such terms and conditions, as the Trustee shall deem advisable;
and for any sum so borrowed, to issue a promissory note as Trustee, and to
secure the repayment thereof by pledging all, or any part, of the Trust Fund;
and no person lending money to the Trustee shall be bound to see to the
application of the money lent or to inquire into the validity, expediency, or
propriety of any borrowing;

            (f)   To keep such portion of the Trust Fund in cash or cash
balances as the Trustee may, from time to time, deem to be in the best interests
of the Plan, without liability for interest thereon;

            (g)   To accept and retain for such time as the Trustee may deem
advisable any securities or other property received or acquired as Trustee
hereunder, whether or not such securities or other property would normally be
purchased as investments hereunder;

            (h)   To make, execute, acknowledge, and deliver any and all
documents of transfer and conveyance and any and all other instruments that may
be necessary or appropriate to carry out the powers herein granted;

                                       34
<PAGE>

            (i)   To settle, compromise, or submit to arbitration any claims,
debts, or damages due or owing to or from the Plan, to commence or defend suits
or legal or administrative proceedings, and to represent the Plan in all suits
and legal and administrative proceedings;

            (j)   To employ suitable agents and counsel and to pay their
reasonable expenses and compensation, and such agent or counsel may or may not
be agent or counsel for the Employer;

            (k)   To apply for and procure from responsible insurance companies,
to be selected by the Administrator, as an investment of the Trust Fund such
annuity, or other Contracts (on the life of any Participant) as the
Administrator shall deem proper; to exercise, at any time or from time to time,
whatever rights and privileges may be granted under such annuity, or other
Contracts; to collect, receive, and settle for the proceeds of all such annuity
or other Contracts as and when entitled to do so under the provisions thereof;

            (l)   To invest funds of the Trust in time deposits or savings
accounts bearing a reasonable rate of interest or in cash or cash balances
without liability for interest thereon;

            (m)   To invest in Treasury Bills and other forms of United States
government obligations;

            (n)   To invest in shares of investment companies registered under
the Investment Company Act of 1940;

            (o)   To sell, purchase and acquire put or call options if the
options are traded on and purchased through a national securities exchange
registered under the Securities Exchange Act of 1934, as amended, or, if the
options are not traded on a national securities exchange, are guaranteed by a
member firm of the New York Stock Exchange regardless of whether such options
are covered;

            (p)   To deposit monies in federally insured savings accounts or
certificates of deposit in banks or savings and loan associations;

            (q)   To pool all or any of the Trust Fund, from time to time, with
assets belonging to any other qualified employee pension benefit trust created
by the Employer or any Affiliated Employer, and to commingle such assets and
make joint or common investments and carry joint accounts on behalf of this Plan
and Trust and such other trust or trusts, allocating undivided shares or
interests in such investments or accounts or any pooled assets of the two or
more trusts in accordance with their respective interests;

            (r)   To do all such acts and exercise all such rights and
privileges although not specifically mentioned herein, as the Trustee may deem
necessary to carry out the purposes of the Plan.

                                       35
<PAGE>

      7.4   LOANS TO PARTICIPANTS.

            (a)   The Trustee may, in the Trustee's discretion, make loans to
Participants and Beneficiaries under the following circumstances: (1) loans
shall be made available to all Participants and Beneficiaries on a reasonably
equivalent basis; (2) loans shall not be made available to Highly Compensated
Employees in an amount greater than the amount made available to other
Participants and Beneficiaries; (3) loans shall bear a reasonable rate of
interest; (4) loans shall be adequately secured; and (5) loans shall provide for
periodic repayment over a reasonable period of time.

            (b)   Loans made pursuant to this Section (when added to the
outstanding balance of all other loans made by the Plan to the Participant) may,
in accordance with a uniform and nondiscriminatory policy established by the
Administrator, be limited to the lesser of:

                  (1)   $50,000 reduced by the excess (if any) of the highest
      outstanding balance of loans from the Plan to the Participant during the
      one year period ending on the day before the date on which such loan is
      made, over the outstanding balance of loans from the Plan to the
      Participant on the date on which such loan was made, or

                  (2)   one-half (1/2) of the present value of the
      non-forfeitable accrued benefit of the Participant under the Plan.

            For purposes of this limit, all plans of the Employer shall be
      considered one plan. Additionally, with respect to any loan made prior to
      January 1, 1987, the $50,000 limit specified in (1) above shall be
      unreduced.

            (c)   Loans shall provide for level amortization with payments to be
made not less frequently than quarterly over a period not to exceed five (5)
years. However, loans used to acquire any dwelling unit which, within a
reasonable time, is to be used (determined at the time the loan is made) as a
"principal residence" of the Participant shall provide for periodic repayment
over a reasonable period of time that may exceed five (5) years. For this
purpose, a "principal residence" has the same meaning as a "principal residence"
under Code Section 1034. Loan repayments may be suspended under this Plan as
permitted under Code Section 414(u)(4).

            (d)   Any loans granted or renewed shall be made pursuant to a
Participant loan program. Such loan program shall be established in writing and
must include, but need not be limited to, the following:

                  (1)   the identity of the person or positions authorized to
      administer the Participant loan program;

                  (2)   a procedure for applying for loans;

                  (3)   the basis on which loans will be approved or denied;

                  (4)   limitations, if any, on the types and amounts of loans
      offered;

                                       36
<PAGE>

                  (5)   the procedure under the program for determining a
      reasonable rate of interest;

                  (6)   the types of collateral which may secure a Participant
      loan; and

                  (7)   the events constituting default and the steps that will
      be taken to preserve Plan assets.

      Such Participant loan program shall be contained in a separate written
document which, when properly executed, is hereby incorporated by reference and
made a part of the Plan. Furthermore, such Participant loan program may be
modified or amended in writing from time to time without the necessity of
amending this Section.

            (e)   Notwithstanding anything in this Plan to the contrary, if a
Participant or Beneficiary defaults on a loan made pursuant to this Section,
then the loan default will be a distributable event to the extent permitted by
the Code and Regulations.

            (f)   Notwithstanding anything in this Section to the contrary, any
loans made prior to the date this amendment and restatement is adopted shall be
subject to the terms of the plan in effect at the time such loan was made.

      7.5   DUTIES OF THE TRUSTEE REGARDING PAYMENTS. At the direction of the
Administrator, the Trustee shall, from time to time, in accordance with the
terms of the Plan, make payments out of the Trust Fund. The Trustee shall not be
responsible in any way for the application of such payments.

      7.6   TRUSTEE'S COMPENSATION AND EXPENSES AND TAXES. The Trustee shall be
paid such reasonable compensation as set forth in the Trustee's fee schedule (if
the Trustee has such a schedule) or as agreed upon in writing by the Employer
and the Trustee. However, an individual serving as Trustee who already receives
full-time pay from the Employer shall not receive compensation from the Plan. In
addition, the Trustee shall be reimbursed for any reasonable expenses, including
reasonable counsel fees incurred by it as Trustee. Such compensation and
expenses shall be paid from the Trust Fund unless paid or advanced by the
Employer. All taxes of any kind whatsoever that may be levied or assessed under
existing or future laws upon, or in respect of, the Trust Fund or the income
thereof, shall be paid from the Trust Fund.

      7.7   ANNUAL REPORT OF THE TRUSTEE.

            (a)   Within a reasonable period of time after the later of the
Anniversary Date or receipt of the Employer contribution for each Plan Year, the
Trustee, or its agent, shall furnish to the Employer and Administrator a written
statement of account with respect to the Plan Year for which such contribution
was made setting forth:

                  (1)   the net income, or loss, of the Trust Fund;

                  (2)   the gains, or losses, realized by the Trust Fund upon
      sales or other disposition of the assets;

                                       37
<PAGE>

                  (3)   the increase, or decrease, in the value of the Trust
      Fund;

                  (4)   all payments and distributions made from the Trust Fund;
      and

                  (5)   such further information as the Trustee and/or
      Administrator deems appropriate.

            (b)   The Employer, promptly upon its receipt of each such statement
of account, shall acknowledge receipt thereof in writing and advise the Trustee
and/or Administrator of its approval or disapproval thereof. Failure by the
Employer to disapprove any such statement of account within thirty (30) days
after its receipt thereof shall be deemed an approval thereof. The approval by
the Employer of any statement of account shall be binding on the Employer and
the Trustee as to all matters contained in the statement to the same extent as
if the account of the Trustee had been settled by judgment or decree in an
action for a judicial settlement of its account in a court of competent
jurisdiction in which the Trustee, the Employer and all persons having or
claiming an interest in the Plan were parties. However, nothing contained in
this Section shall deprive the Trustee of its right to have its accounts
judicially settled if the Trustee so desires.

      7.8   AUDIT.

            (a)   If an audit of the Plan's records shall be required by the Act
and the regulations thereunder for any Plan Year, the Administrator shall direct
the Trustee to engage on behalf of all Participants an independent qualified
public accountant for that purpose. Such accountant shall, after an audit of the
books and records of the Plan in accordance with generally accepted auditing
standards, within a reasonable period after the close of the Plan Year, furnish
to the Administrator and the Trustee a report of the audit setting forth the
accountant's opinion as to whether any statements, schedules or lists that are
required by Act Section 103 or the Secretary of Labor to be filed with the
Plan's annual report, are presented fairly in conformity with generally accepted
accounting principles applied consistently.

            (b)   All auditing and accounting fees shall be an expense of and
may, at the election of the Employer, be paid from the Trust Fund.

            (c)   If some or all of the information necessary to enable the
Administrator to comply with Act Section 103 is maintained by a bank, insurance
company, or similar institution, regulated, supervised, and subject to periodic
examination by a state or federal agency, then it shall transmit and certify the
accuracy of that information to the Administrator as provided in Act Section 103
(b) within one hundred twenty (120) days after the end of the Plan Year or such
other date as may be prescribed under regulations of the Secretary of Labor.

      7.9   RESIGNATION, REMOVAL AND SUCCESSION OF TRUSTEE.

            (a)   Unless otherwise agreed to by both the Trustee and the
Employer, a Trustee may resign at any time by delivering to the Employer, at
least thirty (30) days before its effective date, a written notice of
resignation.

                                       38
<PAGE>

            (b)   Unless otherwise agreed to by both the Trustee and the
Employer, the Employer may remove a Trustee at any time by delivering to the
Trustee, at least thirty (30) days before its effective date, a written notice
of such Trustee's removal.

            (c)   Upon the death, resignation, incapacity, or removal of any
Trustee, a successor may be appointed by the Employer; and such successor, upon
accepting such appointment in writing and delivering same to the Employer,
shall, without further act, become vested with all the powers and
responsibilities of the predecessor as if such successor had been originally
named as a Trustee herein. Until such a successor is appointed, the remaining
Trustee or Trustees shall have full authority to act under the terms of the
Plan.

            (d)   The Employer may designate one or more successors prior to the
death, resignation, incapacity, or removal of a Trustee. In the event a
successor is so designated by the Employer and accepts such designation, the
successor shall, without further act, become vested with all the powers and
responsibilities of the predecessor as if such successor had been originally
named as Trustee herein immediately upon the death, resignation, incapacity, or
removal of the predecessor.

            (e)   Whenever any Trustee hereunder ceases to serve as such, the
Trustee shall furnish to the Employer and Administrator a written statement of
account with respect to the portion of the Plan Year during which the individual
or entity served as Trustee. This statement shall be either (i) included as part
of the annual statement of account for the Plan Year required under Section 7.7
or (ii) set forth in a special statement. Any such special statement of account
should be rendered to the Employer no later than the due date of the annual
statement of account for the Plan Year. The procedures set forth in Section 7.7
for the approval by the Employer of annual statements of account shall apply to
any special statement of account rendered hereunder and approval by the Employer
of any such special statement in the manner provided in Section 7.7 shall have
the same effect upon the statement as the Employer's approval of an annual
statement of account. No successor to the Trustee shall have any duty or
responsibility to investigate the acts or transactions of any predecessor who
has rendered all statements of account required by Section 7.7 and this
subparagraph.

      7.10  TRANSFER OF INTEREST. Notwithstanding any other provision contained
in this Plan, the Trustee at the direction of the Administrator shall transfer
the Vested interest, if any, of a Participant to another trust forming part of a
pension, profit sharing or stock bonus plan maintained by such Participant's new
employer and represented by said employer in writing as meeting the requirements
of Code Section 401(a), provided that the trust to which such transfers are made
permits the transfer to be made.

      7.11  TRUSTEE INDEMNIFICATION. The Employer agrees to indemnify and hold
harmless the Trustee against any and all claims, losses, damages, expenses and
liabilities the Trustee may incur in the exercise and performance of the
Trustee's power and duties hereunder, unless the same are determined to be due
to gross negligence or willful misconduct.

                                       39
<PAGE>

      7.12  DIRECT ROLLOVER.

            (a)   Notwithstanding any provision of the Plan to the contrary that
would otherwise limit a "distributee's" election under this Section, a
"distributee" may elect, at the time and in the manner prescribed by the
Administrator, to have any portion of an "eligible rollover distribution" that
is equal to at least $500 paid directly to an "eligible retirement plan"
specified by the "distributee" in a "direct rollover."

            (b)   For purposes of this Section the following definitions shall
apply:

                  (1)   An "eligible rollover distribution" is any distribution
      of all or any portion of the balance to the credit of the "distributee,"
      except that an "eligible rollover distribution" does not include: any
      distribution that is one of a series of substantially equal periodic
      payments (not less frequently than annually) made for the life (or life
      expectancy) of the "distributee" or the joint lives (or joint life
      expectancies) of the "distributee" and the "distributee's" designated
      beneficiary, or for a specified period of ten years or more; any
      distribution to the extent such distribution is required under Code
      Section 401(a)(9); the portion of any other distribution that is not
      includible in gross income (determined without regard to the exclusion for
      net unrealized appreciation with respect to employer securities); any
      hardship distribution described in Code Section 401 (k)(2)(B)(i)(IV) made
      after December 31, 1999; and any other distribution that is reasonably
      expected to total less than $200 during a year.

                  (2)   An "eligible retirement plan" is an individual
      retirement account described in Code Section 408(a), an individual
      retirement annuity described in Code Section 408(b), an annuity plan
      described in Code Section 403(a), or a qualified trust described in Code
      Section 401(a), that accepts the "distributee's" "eligible rollover
      distribution." However, in the case of an "eligible rollover distribution"
      to the surviving spouse, an "eligible retirement plan" is an individual
      retirement account or individual retirement annuity.

                  (3)   A "distributee" includes an Employee or former Employee.
      In addition, the Employee's or former Employee's surviving spouse and the
      Employee's or former Employee's spouse or former spouse who is the
      alternate payee under a qualified domestic relations order, as defined in
      Code Section 414(p), are "distributees" with regard to the interest of the
      spouse or former spouse.

                  (4)   A "direct rollover" is a payment by the Plan to the
      "eligible retirement plan" specified by the "distributee."

                                  ARTICLE VIII
                       AMENDMENT, TERMINATION AND MERGERS

      8.1   AMENDMENT.

            (a)   The Employer shall have the right at any time to amend this
Plan, subject to the limitations of this Section. However, any amendment which
affects the rights, duties or responsibilities of the Trustee or Administrator
may only be made with the Trustee's or

                                       40
<PAGE>

Administrator's written consent. Any such amendment shall become effective as
provided therein upon its execution. The Trustee shall not be required to
execute any such amendment unless the amendment affects the duties of the
Trustee hereunder.

            (b)   No amendment to the Plan shall be effective if it authorizes
or permits any part of the Trust Fund (other than such part as is required to
pay taxes and administration expenses) to be used for or diverted to any purpose
other than for the exclusive benefit of the Participants or their Beneficiaries
or estates; or causes any reduction in the amount credited to the account of any
Participant; or causes or permits any portion of the Trust Fund to revert to or
become property of the Employer.

            (c)   Except as permitted by Regulations (including Regulation
1.411(d)-4) or other IRS guidance, no Plan amendment or transaction having the
effect of a Plan amendment (such as a merger, plan transfer or similar
transaction) shall be effective if it eliminates or reduces any "Section
411(d)(6) protected benefit" or adds or modifies conditions relating to "Section
411(d)(6) protected benefits" which results in a further restriction on such
benefits unless such "Section 411(d)(6) protected benefits" are preserved with
respect to benefits accrued as of the later of the adoption date or effective
date of the amendment. "Section 411(d)(6) protected benefits" are benefits
described in Code Section 411(d)(6)(A), early retirement benefits and
retirement-type subsidies, and optional forms of benefit. A Plan amendment that
eliminates or restricts the ability of a Participant to receive payment of the
Participant's interest in the Plan under a particular optional form of benefit
will be permissible if the amendment satisfies the conditions in (1) and (2)
below:

                  (1)   The amendment provides a single-sum distribution form
      that is otherwise identical to the optional form of benefit eliminated or
      restricted. For purposes of this condition (1), a single-sum distribution
      form is otherwise identical only if it is identical in all respects to the
      eliminated or restricted optional form of benefit (or would be identical
      except that it provides greater rights to the Participant) except with
      respect to the timing of payments after commencement.

                  (2)   The amendment is not effective unless the amendment
      provides that the amendment shall not apply to any distribution with an
      annuity starting date earlier than the earlier of: (i) the ninetieth
      (90th) day after the date the Participant receiving the distribution has
      been furnished a summary that reflects the amendment and that satisfies
      the Act requirements at 29 CFR 2520.104b-3 (relating to a summary of
      material modifications) or (ii) the first day of the second Plan Year
      following the Plan Year in which the amendment is adopted.

      8.2   TERMINATION.

            (a)   The Employer shall have the right at any time to terminate the
Plan by delivering to the Trustee and Administrator written notice of such
termination. Upon any full or partial termination, all amounts credited to the
affected Participants' Accounts shall become 100% Vested as provided in Section
6.4 and shall not thereafter be subject to forfeiture, and all unallocated
amounts, including Forfeitures, shall be allocated to the accounts of all
Participants in accordance with the provisions hereof.

                                       41
<PAGE>

            (b)   Upon the full termination of the Plan, the Employer shall
direct the distribution of the assets of the Trust Fund to Participants in a
manner which is consistent with and satisfies the provisions of Section 6.5.
Distributions to a Participant shall be made in cash or through the purchase of
irrevocable nontransferable deferred commitments from an insurer. Except as
permitted by Regulations, the termination of the Plan shall not result in the
reduction of "Section 411(d)(6) protected benefits" in accordance with Section
8.1(c).

      8.3   MERGER, CONSOLIDATION OR TRANSFER OF ASSETS. This Plan and Trust may
be merged or consolidated with, or its assets and/or liabilities may be
transferred to any other plan and trust only if the benefits which would be
received by a Participant of this Plan, in the event of a termination of the
Plan immediately after such transfer, merger or consolidation, are at least
equal to the benefits the Participant would have received if the Plan had
terminated immediately before the transfer, merger or consolidation, and such
transfer, merger or consolidation does not otherwise result in the elimination
or reduction of any "Section 411(d)(6) protected benefits" in accordance with
Section 8.1(c).

                                   ARTICLE IX
                                    TOP HEAVY

      9.1   TOP HEAVY PLAN REQUIREMENTS. For any Top Heavy Plan Year, the Plan
shall provide the special vesting requirements of Code Section 416(b) pursuant
to Section 6.4 of the Plan and the special minimum allocation requirements of
Code Section 416(c) pursuant to Section 4.3 of the Plan.

      9.2   DETERMINATION OF TOP HEAVY STATUS.

            (a)   This Plan shall be a Top Heavy Plan for any Plan Year in
which, as of the Determination Date, (1) the Present Value of Accrued Benefits
of Key Employees and (2) the sum of the Aggregate Accounts of Key Employees
under this Plan and all plans of an Aggregation Group, exceeds sixty percent
(60%) of the Present Value of Accrued Benefits and the Aggregate Accounts of all
Key and Non-Key Employees under this Plan and all plans of an Aggregation Group.

      If any Participant is a Non-Key Employee for any Plan Year, but such
Participant was a Key Employee for any prior Plan Year, such Participant's
Present Value of Accrued Benefit and/or Aggregate Account balance shall not be
taken into account for purposes of determining whether this Plan is a Top Heavy
Plan (or whether any Aggregation Group which includes this Plan is a Top Heavy
Group). In addition, if a Participant or Former Participant has not performed
any services for any Employer maintaining the Plan at any time during the five
year period ending on the Determination Date, any accrued benefit for such
Participant or Former Participant shall not be taken into account for the
purposes of determining whether this Plan is a Top Heavy Plan.

            (b)   Aggregate Account: A Participant's Aggregate Account as of the
Determination Date is the sum of:

                  (1)   the Participant's Account balance as of the most recent
      valuation occurring within a twelve (12) month period ending on the
      Determination Date.

                                       42
<PAGE>

                  (2)   an adjustment for any contributions due as of the
      Determination Date. Such adjustment shall be the amount of any
      contributions actually made after the Valuation Date but due on or before
      the Determination Date, except for the first Plan Year when such
      adjustment shall also reflect the amount of any contributions made after
      the Determination Date that are allocated as of a date in that first Plan
      Year.

                  (3)   any Plan distributions made within the Plan Year that
      includes the Determination Date or within the four (4) preceding Plan
      Years. However, in the case of distributions made after the Valuation Date
      and prior to the Determination Date, such distributions are not included
      as distributions for top heavy purposes to the extent that such
      distributions are already included in the Participant's Aggregate Account
      balance as of the Valuation Date. Notwithstanding anything herein to the
      contrary, all distributions, including distributions made prior to January
      1, 1984, and distributions under a terminated plan which if it had not
      been terminated would have been required to be included in an Aggregation
      Group, will be counted. Further, distributions from the Plan (including
      the cash value of life insurance policies) of a Participant's account
      balance because of death shall be treated as a distribution for the
      purposes of this paragraph.

                  (4)   any Employee contributions, whether voluntary or
      mandatory. However, amounts attributable to tax deductible qualified
      voluntary employee contributions shall not be considered to be a part of
      the Participant's Aggregate Account balance.

                  (5)   with respect to unrelated rollovers and plan-to-plan
      transfers (ones which are both initiated by the Employee and made from a
      plan maintained by one employer to a plan maintained by another employer),
      if this Plan provides the rollovers or plan-to-plan transfers, it shall
      always consider such rollovers or plan-to-plan transfers as a distribution
      for the purposes of this Section. If this Plan is the plan accepting such
      rollovers or plan-to-plan transfers, it shall not consider such rollovers
      or plan-to-plan transfers as part of the Participant's Aggregate Account
      balance. However, rollovers or plan-to-plan transfers accepted prior to
      January 1, 1984 shall be considered as part of the Participant's Aggregate
      Account balance.

                  (6)   with respect to related rollovers and plan-to-plan
      transfers (ones either not initiated by the Employee or made to a plan
      maintained by the same employer), if this Plan provides the rollover or
      plan-to-plan transfer, it shall not be counted as a distribution for
      purposes of this Section. If this Plan is the plan accepting such rollover
      or plan-to-plan transfer, it shall consider such rollover or plan-to-plan
      transfer as part of the Participant's Aggregate Account balance,
      irrespective of the date on which such rollover or plan-to-plan transfer
      is accepted.

                  (7)   For the purposes of determining whether two employers
      are to be treated as the same employer in (5) and (6) above, all employers
      aggregated under Code Section 414(b), (c), (m) and (o) are treated as the
      same employer.

            (c)   "Aggregation Group" means either a Required Aggregation Group
or a Permissive Aggregation Group as hereinafter determined.

                                       43
<PAGE>

                  (1)   Required Aggregation Group: In determining a Required
      Aggregation Group hereunder, each plan of the Employer in which a Key
      Employee is a participant in the Plan Year containing the Determination
      Date or any of the four preceding Plan Years, and each other plan of the
      Employer which enables any plan in which a Key Employee participates to
      meet the requirements of Code Sections 401(a)(4) or 410, will be required
      to be aggregated. Such group shall be known as a Required Aggregation
      Group.

      In the case of a Required Aggregation Group, each plan in the group will
      be considered a Top Heavy Plan if the Required Aggregation Group is a Top
      Heavy Group. No plan in the Required Aggregation Group will be considered
      a Top Heavy Plan if the Required Aggregation Group is not a Top Heavy
      Group.

                  (2)   Permissive Aggregation Group: The Employer may also
      include any other plan not required to be included in the Required
      Aggregation Group, provided the resulting group, taken as a whole, would
      continue to satisfy the provisions of Code Sections 401(a)(4) and 410.
      Such group shall be known as a Permissive Aggregation Group.

      In the case of a Permissive Aggregation Group, only a plan that is part of
      the Required Aggregation Group will be considered a Top Heavy Plan if the
      Permissive Aggregation Group is a Top Heavy Group. No plan in the
      Permissive Aggregation Group will be considered a Top Heavy Plan if the
      Permissive Aggregation Group is not a Top Heavy Group.

                  (3)   Only those plans of the Employer in which the
      Determination Dates fall within the same calendar year shall be aggregated
      in order to determine whether such plans are Top Heavy Plans.

                  (4)   An Aggregation Group shall include any terminated plan
      of the Employer if it was maintained within the last five (5) years ending
      on the Determination Date.

            (d)   "Determination Date" means (a) the last day of the preceding
Plan Year, or (b) in the case of the first Plan Year, the last day of such Plan
Year.

            (e)   Present Value of Accrued Benefit: In the case of a defined
benefit plan, the Present Value of Accrued Benefit for a Participant other than
a Key Employee, shall be as determined using the single accrual method used for
all plans of the Employer and Affiliated Employers, or if no such single method
exists, using a method which results in benefits accruing not more rapidly than
the slowest accrual rate permitted under Code Section 411(b)(1)(C). The
determination of the Present Value of Accrued Benefit shall be determined as of
the most recent Valuation Date that falls within or ends with the 12-month
period ending on the Determination Date except as provided in Code Section 416
and the Regulations thereunder for the first and second plan years of a defined
benefit plan.

            (f)   "Top Heavy Group" means an Aggregation Group in which, as of
the Determination Date, the sum of:

                                       44
<PAGE>

                  (1)   the Present Value of Accrued Benefits of Key Employees
      under all defined benefit plans included in the group, and

                  (2)   the Aggregate Accounts of Key Employees under all
      defined contribution plans included in the group,

  exceeds sixty percent (60%) of a similar sum determined for all Participants.

                                    ARTICLE X
                                  MISCELLANEOUS

      10.1  PARTICIPANT'S RIGHTS. This Plan shall not be deemed to constitute a
contract between the Employer and any Participant or to be a consideration or an
inducement for the employment of any Participant or Employee. Nothing contained
in this Plan shall be deemed to give any Participant or Employee the right to be
retained in the service of the Employer or to interfere with the right of the
Employer to discharge any Participant or Employee at any time regardless of the
effect which such discharge shall have upon the Employee as a Participant of
this Plan.

      10.2  ALIENATION.

            (a)   Subject to the exceptions provided below, and as otherwise
permitted by the Code and the Act, no benefit which shall be payable out of the
Trust Fund to any person (including a Participant or the Participant's
Beneficiary) shall be subject in any manner to anticipation, alienation, sale,
transfer, assignment, pledge, encumbrance, or charge, and any attempt to
anticipate, alienate, sell, transfer, assign, pledge, encumber, or charge the
same shall be void; and no such benefit shall in any manner be liable for, or
subject to, the debts, contracts, liabilities, engagements, or torts of any such
person, nor shall it be subject to attachment or legal process for or against
such person, and the same shall not be recognized by the Trustee, except to such
extent as may be required by law.

            (b)   Subsection (a) shall not apply to the extent a Participant or
Beneficiary is indebted to the Plan, by reason of a loan made pursuant to
Section 7.4. At the time a distribution is to be made to or for a Participant's
or Beneficiary's benefit, such proportion of the amount to be distributed as
shall equal such indebtedness shall be paid to the Plan, to apply against or
discharge such indebtedness. Prior to making a payment, however, the Participant
or Beneficiary must be given written notice by the Administrator that such
indebtedness is to be so paid in whole or part from the Participant's Account.
If the Participant or Beneficiary does not agree that the indebtedness is a
valid claim against the Vested Participant's Account, the Participant or
Beneficiary shall be entitled to a review of the validity of the claim in
accordance with procedures provided in Sections 2.7 and 2.8.

            (c)   Subsection (a) shall not apply to a "qualified domestic
relations order" defined in Code Section 414(p), and those other domestic
relations orders permitted to be so treated by the Administrator under the
provisions of the Retirement Equity Act of 1984. The Administrator shall
establish a written procedure to determine the qualified status of domestic
relations orders and to administer distributions under such qualified orders.
Further, to the extent

                                       45
<PAGE>

provided under a "qualified domestic relations order," a former spouse of a
Participant shall be treated as the spouse or surviving spouse for all purposes
under the Plan.

            (d)   Subsection (a) shall not apply to an offset to a Participant's
accrued benefit against an amount that the Participant is ordered or required to
pay the Plan with respect to a judgment, order, or decree issued, or a
settlement entered into, on or after August 5, 1997, in accordance with Code
Sections 401(a)(13)(C) and (D).

      10.3  CONSTRUCTION OF PLAN. This Plan and Trust shall be construed and
enforced according to the Act and the laws of the State of Illinois, other than
its laws respecting choice of law, to the extent not pre-empted by the Act.

      10.4  GENDER AND NUMBER. Wherever any words are used herein in the
masculine, feminine or neuter gender, they shall be construed as though they
were also used in another gender in all cases where they would so apply, and
whenever any words are used herein in the singular or plural form, they shall be
construed as though they were also used in the other form in all cases where
they would so apply.

      10.5  LEGAL ACTION. In the event any claim, suit, or proceeding is brought
regarding the Trust and/or Plan established hereunder to which the Trustee, the
Employer or the Administrator may be a party, and such claim, suit, or
proceeding is resolved in favor of the Trustee, the Employer or the
Administrator, they shall be entitled to be reimbursed from the Trust Fund for
any and all costs, attorney's fees, and other expenses pertaining thereto
incurred by them for which they shall have become liable.

      10.6  PROHIBITION AGAINST DIVERSION OF FUNDS.

            (a)   Except as provided below and otherwise specifically permitted
by law, it shall be impossible by operation of the Plan or of the Trust, by
termination of either, by power of revocation or amendment, by the happening of
any contingency, by collateral arrangement or by any other means, for any part
of the corpus or income of any Trust Fund maintained pursuant to the Plan or any
funds contributed thereto to be used for, or diverted to, purposes other than
the exclusive benefit of Participants, Former Participants, or their
Beneficiaries.

            (b)   In the event the Employer shall make an excessive contribution
under a mistake of fact pursuant to Act Section 403(c)(2)(A), the Employer may
demand repayment of such excessive contribution at any time within one (1) year
following the time of payment and the Trustees shall return such amount to the
Employer within the one (1) year period. Earnings of the Plan attributable to
the contributions may not be returned to the Employer but any losses
attributable thereto must reduce the amount so returned.

            (c)   Except for Sections 3.5, 3.6, and 4.1(b), any contribution by
the Employer to the Trust Fund is conditioned upon the deductibility of the
contribution by the Employer under the Code and, to the extent any such
deduction is disallowed, the Employer may, within one (1) year following the
final determination of the disallowance, whether by agreement with the Internal
Revenue Service or by final decision of a competent jurisdiction, demand
repayment of such disallowed contribution and the Trustee shall return such
contribution within one (1) year

                                       46
<PAGE>

following the disallowance. Earnings of the Plan attributable to the
contribution may not be returned to the Employer, but any losses attributable
thereto must reduce the amount so returned.

      10.7  EMPLOYER'S AND TRUSTEE'S PROTECTIVE CLAUSE. The Employer,
Administrator and Trustee, and their successors, shall not be responsible for
the validity of any Contract issued hereunder or for the failure on the part of
the insurer to make payments provided by any such Contract, or for the action of
any person which may delay payment or render a Contract null and void or
unenforceable in whole or in part.

      10.8  INSURER'S PROTECTIVE CLAUSE. Except as otherwise agreed upon in
writing between the Employer and the insurer, an insurer which issues any
Contracts hereunder shall not have any responsibility for the validity of this
Plan or for the tax or legal aspects of this Plan. The insurer shall be
protected and held harmless in acting in accordance with any written direction
of the Trustee, and shall have no duty to see to the application of any funds
paid to the Trustee, nor be required to question any actions directed by the
Trustee. Regardless of any provision of this Plan, the insurer shall not be
required to take or permit any action or allow any benefit or privilege contrary
to the terms of any Contract which it issues hereunder, or the rules of the
insurer.

      10.9  RECEIPT AND RELEASE FOR PAYMENTS. Any payment to any Participant,
the Participant's legal representative, Beneficiary, or to any guardian or
committee appointed for such Participant or Beneficiary in accordance with the
provisions of the Plan, shall, to the extent thereof, be in full satisfaction of
all claims hereunder against the Trustee and the Employer, either of whom may
require such Participant, legal representative, Beneficiary, guardian or
committee, as a condition precedent to such payment, to execute a receipt and
release thereof in such form as shall be determined by the Trustee or Employer.

      10.10 ACTION BY THE EMPLOYER. Whenever the Employer under the terms of the
Plan is permitted or required to do or perform any act or matter or thing, it
shall be done and performed by a person duly authorized by its legally
constituted authority.

      10.11 NAMED FIDUCIARIES AND ALLOCATION OF RESPONSIBILITY. The "named
Fiduciaries" of this Plan are (1) the Employer, (2) the Administrator, (3) the
Trustee and (4) any Investment Manager appointed hereunder. The named
Fiduciaries shall have only those specific powers, duties, responsibilities, and
obligations as are specifically given them under the Plan including, but not
limited to, any agreement allocating or delegating their responsibilities, the
terms of which are incorporated herein by reference. In general, the Employer
shall have the sole responsibility for making the contributions provided for
under Section 4.1; and shall have the authority to appoint and remove the
Trustee and the Administrator; to formulate the Plan's "funding policy find
method"; and to amend or terminate, in whole or in part, the Plan. The
Administrator shall gave the sole responsibility for the administration of the
Plan, including, but not limited to, the items specified in Article II of the
Plan, as the same may be allocated or delegated thereunder. The Trustee shall
have the sole responsibility of management of the assets held under the Trust,
except to the extent directed pursuant to Article II or with respect to those
assets, the management of which has been assigned to an Investment Manager, who
shall be solely responsible for the management of the assets assigned to it, all
as specifically provided in the Plan. Each named Fiduciary warrants that any
directions given, information furnished, or

                                       47
<PAGE>

action taken by it shall be in accordance with the provisions of the Plan,
authorizing or providing for such direction, information or action. Furthermore,
each named Fiduciary may rely upon any such direction, information or action of
another named Fiduciary as being proper under the Plan, and is not required
under the Plan to inquire into the propriety of any such direction, information
or action. It is intended under the Plan that each named Fiduciary shall be
responsible for the proper exercise of its own powers, duties, responsibilities
and obligations under the Plan as specified or allocated herein. No named
Fiduciary shall guarantee the Trust Fund in any manner against investment loss
or depreciation in asset value. Any person or group may serve in more than one
Fiduciary capacity.

      10.12 HEADINGS. The headings and subheadings of this Plan have been
inserted for convenience of reference and are to be ignored in any construction
of the provisions hereof.

      10.13 APPROVAL BY INTERNAL REVENUE SERVICE. Notwithstanding anything
herein to the contrary, if, pursuant to an application for qualification filed
by or on behalf of the Plan by the time prescribed by law for filing the
Employer's return for the taxable year in which the Plan is adopted, or such
later date that the Secretary of the Treasury may prescribe, the Commissioner of
Internal Revenue Service or the Commissioner's delegate should determine that
the Plan does not initially qualify as a tax-exempt plan under Code Sections 401
and 501, and such determination is not contested, or if contested, is finally
upheld, then if the Plan is a new plan, it shall be void ab initio and all
amounts contributed to the Plan by the Employer, less expenses paid, shall be
returned within one (1) year and the Plan shall terminate, and the Trustee shall
be discharged from all further obligations. If the disqualification relates to
an amended plan, then the Plan shall operate as if it had not been amended.

      10.14 UNIFORMITY. All provisions of this Plan shall be interpreted and
applied in a uniform, nondiscriminatory manner. In the event of any conflict
between the terms of this Plan and any Contract purchased hereunder, the Plan
provisions shall control.

                                   ARTICLE XI
                             PARTICIPATING EMPLOYERS

      11.1  ADOPTION BY OTHER EMPLOYERS. Notwithstanding anything herein to the
contrary, with the consent of the Employer and Trustee, any other corporation or
entity, whether an affiliate or subsidiary or not, may adopt this Plan and all
of the provisions hereof, and participate herein and be known as a Participating
Employer, by a properly executed document evidencing said intent and will of
such Participating Employer.

      11.2  REQUIREMENTS OF PARTICIPATING EMPLOYERS

            (a)   Each such Participating Employer shall be required to use the
same Trustee as provided in this Plan.

            (b)   The Trustee may, but shall not be required to, commingle, hold
and invest as one Trust Fund all contributions made by Participating Employers,
as well as all increments thereof.

                                       48
<PAGE>

            (c)   Any expenses of the Plan which are to be paid by the Employer
or borne by the Trust Fund shall be paid by each Participating Employer in the
same proportion that the total amount standing to the credit of all Participants
employed by such Employer bears to the total standing to the credit of all
Participants.

      11.3  DESIGNATION OF AGENT. Each Participating Employer shall be deemed to
be a party to this Plan; provided, however, that with respect to all of its
relations with the Trustee and Administrator for the purpose of this Plan, each
Participating Employer shall be deemed to have designated irrevocably the
Employer as its agent. Unless the context of the Plan clearly indicates the
contrary, the word "Employer" shall be deemed to include each Participating
Employer as related to its adoption of the Plan.

      11.4  EMPLOYEE TRANSFERS. In the event an Employee is transferred between
Participating Employers, accumulated service and eligibility shall be carried
with the Employee involved. No such transfer shall effect a termination of
employment hereunder, and the Participating Employer to which the Employee is
transferred shall thereupon become obligated hereunder with respect to such
Employee in the same manner as was the Participating Employer from whom the
Employee was transferred.

      11.5  PARTICIPATING EMPLOYER CONTRIBUTION AND FORFEITURES. Any
contribution or Forfeiture subject to allocation during each Plan Year shall be
determined and allocated separately by each Participating Employer, and shall be
allocated only among the Participants eligible to share of the Employer or
Participating Employer making the contribution or by which the forfeiting
Participant was employed. On the basis of the information furnished by the
Administrator, the Trustee shall keep separate books and records concerning the
affairs of each Participating Employer hereunder and as to the accounts and
credits of the Employees of each Participating Employer. The Trustee may, but
need not, register Contracts so as to evidence that a particular Participating
Employer is the interested Employer hereunder, but in the event of an Employee
transfer from one Participating Employer to another, the employing Employer
shall immediately notify the Trustee thereof.

      11.6  AMENDMENT. Amendment of this Plan by the Employer at any time when
there shall be a Participating Employer hereunder shall only be by the written
action of each and every Participating Employer and with the consent of the
Trustee where such consent is necessary in accordance with the terms of this
Plan.

      11.7  DISCONTINUANCE OF PARTICIPATION. Any Participating Employer shall be
permitted to discontinue or revoke its participation in the Plan at any time. At
the time of any such discontinuance or revocation, satisfactory evidence thereof
and of any applicable conditions imposed shall be delivered to the Trustee. The
Trustee shall thereafter transfer, deliver and assign Contracts and other Trust
Fund assets allocable to the Participants of such Participating Employer to such
new trustee or insurer as shall have been designated by such Participating
Employer, in the event that it has established a separate qualified retirement
plan for its employees provided, however, that no such transfer shall be made if
the result is the elimination or reduction of any "Section 411(d)(6) protected
benefits" as described in Section 8.1(c). If no successor is designated, the
Trustee shall retain such assets for the Employees of said Participating
Employer pursuant to the provisions of Article VII hereof. In no such event
shall

                                       49
<PAGE>

any part of the corpus or income of the Trust as it relates to such
Participating Employer be used for or diverted for purposes other than for the
exclusive benefit of the Employees of such Participating Employer.

      11.8  ADMINISTRATOR'S AUTHORITY. The Administrator shall have authority to
make any and all necessary rules or regulations, binding upon all Participating
Employers and all Participants, to effectuate the purpose of this Article.

                                       50
<PAGE>

      IN WITNESS WHEREOF, this Plan has been executed the day and year first
above written.

                                           Eagle Test Systems, Inc.

                                           By  /s/ Leonard Foxman
                                               ---------------------------------
                                                EMPLOYER

                                           Analog Test Institute, Inc.

                                           By /s/ Theodore Foxman
                                              ----------------------------------
                                                EMPLOYER

                                           /s/ Leonard Foxman
                                           -------------------------------------
                                            TRUSTEE

                                       51<PAGE>

                                                                    EXHIBIT 10.6

                                                                  EXECUTION COPY

                            STOCK PURCHASE AGREEMENT

                                  BY AND AMONG

                            EAGLE TEST SYSTEMS, INC.,

                          THE STOCKHOLDERS NAMED HEREIN

                                       AND

                           THE INVESTORS NAMED HEREIN

                         DATED AS OF SEPTEMBER 30, 2003

<PAGE>

                                      INDEX

<TABLE>
<CAPTION>
                                                                                                                      Page
                                                                                                                      ----
<S>                                                                                                                   <C>
SECTION 1.        PURCHASE AND SALE OF SHARES; REDEMPTION........................................................       2
           1.1    Description of Securities......................................................................       2
           1.2    Sale and Purchase..............................................................................       2
           1.3    Redemption of Stockholders' Stock..............................................................       2
           1.4    Charter; Bylaws; Subordinated Debt.............................................................       2
           1.5    Use of Proceeds................................................................................       3
           1.6    Closing........................................................................................       3
           1.7    Transfer Taxes.................................................................................       3
           1.8    Further Assurances.............................................................................       3
           1.9    Extraordinary Dividend.........................................................................       3

SECTION 2.        REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE STOCKHOLDERS.............................       4
           2.1    Organization and Corporate Power...............................................................       5
           2.2    Authorization and Non-Contravention............................................................       5
           2.3    Corporate Records..............................................................................       6
           2.4    Capitalization.................................................................................       6
           2.5    Subsidiaries; Investments......................................................................       8
           2.6    Financial Statements; Projections..............................................................       8
           2.7    Absence of Undisclosed Liabilities.............................................................       9
           2.8    Absence of Certain Developments................................................................       9
           2.9    Accounts Receivable; Accounts Payable; Inventories.............................................      10
           2.10   Transactions with Affiliates...................................................................      11
           2.11   Properties.....................................................................................      11
           2.12   Tax Matters....................................................................................      12
           2.13   Certain Contracts and Arrangements.............................................................      13
           2.14   Intellectual Property..........................................................................      14
           2.15   Litigation.....................................................................................      16
           2.16   Labor Matters..................................................................................      17
           2.17   Permits; Compliance with Laws..................................................................      17
           2.18   Employee Benefit Programs......................................................................      18
           2.19   Insurance Coverage.............................................................................      19
           2.20   Investment Banking; Brokerage..................................................................      19
           2.21   Environmental Matters..........................................................................      19
           2.22   Customers, Distributors and Partners...........................................................      19
           2.23   Suppliers......................................................................................      20
           2.24   Warranty and Related Matters...................................................................      20
           2.25   Illegal Payments...............................................................................      20
           2.26   Solvency.......................................................................................      20
           2.27   Privacy of Customer Information................................................................      20
           2.28   Backlog........................................................................................      21
</TABLE>

                                        i
<PAGE>

<TABLE>
<S>                                                                                                                    <C>
           2.29   Health Matters.................................................................................      21
           2.30   Disclosure.....................................................................................      21

SECTION 3.        REPRESENTATIONS AND WARRANTIES OF THE INVESTORS................................................      21
           3.1    Investment Status..............................................................................      21
           3.2    Authority and Non-Contravention................................................................      22

SECTION 4.        CLOSING CONDITIONS AND DELIVERIES..............................................................      22
           4.1    Transactions to Occur Prior to Closing.........................................................      22
           4.2    Authorization..................................................................................      23
           4.3    Approvals, Consents and Waivers................................................................      23
           4.4    Deliveries by the Company and the Stockholders to the Investors................................      23
           4.5    Closing Deliveries by the Investors to the Company.............................................      25
           4.6    Closing Deliveries by the Stockholders to the Company..........................................      25
           4.7    All Proceedings Satisfactory...................................................................      25
           4.8    No Litigation..................................................................................      25
           4.9    No Violation or Injunction.....................................................................      25

SECTION 5.        SURVIVAL OF REPRESENTATIONS AND WARRANTIES; TRANSACTION RELATED INDEMNIFICATION................      26
           5.1    Survival of Representations, Warranties and Covenants..........................................      26
           5.2    Transaction Related Indemnification............................................................      26
           5.3    Limitations on Transaction Related Indemnification.............................................      27
           5.4    Notice; Payment of Losses; Defense of Third-Party Claims.......................................      28
           5.5    Limitation on Contribution and Certain Other Rights............................................      29

SECTION 6.        GENERAL........................................................................................      30
           6.1    Waivers and Consents; Amendments...............................................................      30
           6.2    Legend on Securities...........................................................................      30
           6.3    Governing Law..................................................................................      30
           6.4    Section Headings; Construction.................................................................      30
           6.5    Counterparts...................................................................................      31
           6.6    Notices and Demands............................................................................      31
           6.7    Dispute Resolution.............................................................................      31
           6.8    Consent to Jurisdiction........................................................................      32
           6.9    Remedies; Severability.........................................................................      32
           6.10   Integration....................................................................................      33
           6.11   Assignability; Binding Agreement...............................................................      33
           6.12   Release........................................................................................      33
           6.13   Confidentiality................................................................................      34
           6.14   Expenses.......................................................................................      34
           6.15   Certain Definitions............................................................................      34
</TABLE>

                                       ii
<PAGE>

EXHIBITS

         Exhibit A-1 - Schedule of Foxman Stockholders
         Exhibit A-2 - Schedule of Other Stockholders
         Exhibit B - Schedule of Investors
         Exhibit C - Amended and Restated Articles of Incorporation
         Exhibit D - Form of Bylaws
         Exhibit E - Form of Stock Option Plan
         Exhibit F - Form of Stockholders' Agreement
         Exhibit G - Form of Registration Rights Agreement
         Exhibit H - Redemption of Common Stock
         Exhibit I - Management Rights Letter
         Exhibit J - Form of Non-Competition Agreement
         Exhibit K - Form of Employee Agreement
         Exhibit L - Form of Opinion of Counsel
         Exhibit M - Form of Director Indemnification Agreement

DISCLOSURE SCHEDULE

         Section 2.1 - Foreign Qualifications
         Section 2.4 - Capitalization
         Section 2.5 - Subsidiaries and Investments
         Section 2.6 - Financial Statements; Projections
         Section 2.7 - Undisclosed Liabilities
         Section 2.8 - Certain Developments
         Section 2.9 - Inventories
         Section 2.12 - Tax Matters
         Section 2.13 - Material Contracts
         Section 2.14 - Intellectual Property
         Section 2.15 - Litigation
         Section 2.16 - Labor Matters
         Section 2.18 - Employee Benefit Programs
         Section 2.19 - Insurance Coverage
         Section 2.20 - Investment Banking; Brokerage
         Section 2.22 - Customers; Distributors and Partners
         Section 2.24 - Warranty and Related Matters

                                      iii
<PAGE>

                                                                    EXHIBIT 10.6

                            STOCK PURCHASE AGREEMENT

      THIS STOCK PURCHASE AGREEMENT (the "AGREEMENT") is made and entered into
as of September 30, 2003, by and among Eagle Test Systems, Inc., an Illinois
corporation (the "COMPANY"), the shareholders of the Company named in Exhibit
A-1 attached hereto (the "FOXMAN STOCKHOLDERS," and each individually, a "FOXMAN
STOCKHOLDER"), the shareholders of the Company named in Exhibit A-2 attached
hereto (the "OTHER STOCKHOLDERS," and collectively with the Foxman Stockholders,
the "STOCKHOLDERS") and the investment partnerships and other investors named in
Exhibit B attached hereto (each, an "INVESTOR," and, collectively, the
"INVESTORS").

      WHEREAS, the Investors desire to purchase from the Company, and the
Company desires to issue and sell to the Investors, 3,436.099 shares of the
Company's Series A Convertible Preferred Stock, par value $.01 per share (the
"CONVERTIBLE PREFERRED STOCK"), for an aggregate purchase price of $65,000,000;

      WHEREAS, contemporaneously with the Closing (as defined below), TA
Subordinated Debt Fund, L.P. and TA Investors, LLC (the "Lenders") will lend to
the Company $30,000,000 (the "SUBORDINATED DEBT") pursuant to the terms of a
Note Purchase Agreement (the "NOTE PURCHASE AGREEMENT") in return for
convertible subordinated debentures (collectively, the "CONVERTIBLE SUBORDINATED
NOTES") which are convertible into subordinated notes (collectively, the
"SUBORDINATED NOTES") and warrants (the "WARRANTS") to acquire shares of Common
Stock, no par value, of the Company (the "COMMON STOCK");

      WHEREAS, the Company shall use the proceeds from the purchase and sale of
the Convertible Preferred Stock and the Subordinated Debt for the Redemption (as
defined below) and for payment of certain expenses at or immediately subsequent
to the Closing; and

      WHEREAS, in connection with and as a condition precedent to the
consummation of the transactions contemplated hereby, among other things (i) the
Company has amended and restated its articles of incorporation in the form
attached hereto as Exhibit C (the "ARTICLES OF INCORPORATION"), and has amended
and restated its bylaws in the form attached hereto as Exhibit D (the "BYLAWS"),
(ii) the Company has adopted the 2003 Stock Option and Grant Plan in the form
attached hereto as Exhibit E (the "STOCK OPTION PLAN") pursuant to which the
Company has reserved for issuance thereunder 273.516 shares of Common Stock,
(iii) the Company, the Stockholders and the Investors will enter into a
Stockholders Agreement in substantially the form attached hereto as Exhibit F
(the "STOCKHOLDERS AGREEMENT") and (iv) the Company and the Investors will enter
into a Registration Rights Agreement in substantially the form attached hereto
as Exhibit G (the "REGISTRATION RIGHTS AGREEMENT").

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

<PAGE>

SECTION 1. PURCHASE AND SALE OF SHARES; REDEMPTION

      1.1 DESCRIPTION OF SECURITIES. The Company's authorized capital stock
consists of Common Stock and, upon consummation of transactions contemplated by
this Agreement, Convertible Preferred Stock and Redeemable Preferred Stock, par
value $.01 per share ("REDEEMABLE PREFERRED STOCK"). The Common Stock,
Convertible Preferred Stock and Redeemable Preferred Stock will, upon
consummation of transactions contemplated by this Agreement, have the rights,
preferences and other terms set forth in Exhibit C attached hereto. Immediately
prior to the Closing, all of the issued and outstanding equity securities of the
Company are owned beneficially and of record by the shareholders as set forth on
Exhibit A-1 and A-2 attached hereto. For purposes of this Agreement, the shares
of Convertible Preferred Stock to be acquired by the Investors from the Company
hereunder are sometimes referred to as the "CONVERTIBLE PREFERRED SHARES," the
shares of Redeemable Preferred Stock issuable upon conversion of the Convertible
Preferred Stock are referred to as the "PREFERRED CONVERSION SHARES," the shares
of Common Stock issuable upon conversion of the Convertible Preferred Shares are
referred to as the "COMMON CONVERSION SHARES," the Preferred Conversion Shares
and Common Conversion Shares are referred to as the "CONVERSION SHARES," and the
Convertible Preferred Shares, the Preferred Conversion Shares and the Common
Conversion Shares are sometimes referred to herein as the "SECURITIES." The
Company will, upon consummation of transactions contemplated by this Agreement,
have authorized and reserved, and covenants to continue to reserve, a sufficient
number of shares of Common Stock and Redeemable Preferred Stock necessary to
satisfy the rights of conversion of the holders of Convertible Preferred Stock
as set forth in Exhibit C hereto.

      1.2 SALE AND PURCHASE. Upon the terms and subject to the conditions
herein, and in reliance on the representations and warranties made by the
Company and the Stockholders herein, each of the Investors, severally but not
jointly, hereby agrees to purchase from the Company, and the Company hereby
agrees to issue and sell to each of the Investors, the number of Convertible
Preferred Shares set forth opposite the name of each such Investor on Exhibit B
hereto, free and clear of any and all Claims (as defined herein), for a total
aggregate purchase price of $65,000,000 (the "PURCHASE PRICE"), and the Company
hereby grants the Investors the rights set forth herein and in the agreements
referred to herein.

      1.3 REDEMPTION OF STOCKHOLDERS' STOCK. At and concurrently with the
Closing, and following the purchase and sale of the Convertible Preferred Shares
as provided herein, and upon the terms and subject to the conditions herein, and
in reliance on the representations and warranties made by the Company and the
Stockholders to the Investors herein, the Company shall redeem, and the
Stockholders, severally but not jointly, hereby agree to sell, transfer and
convey to the Company, the number of shares of Common Stock (the "REDEMPTION")
set forth opposite the name of such Stockholder on Exhibit H attached hereto, in
each case for the redemption price set forth opposite such Stockholder's name on
Exhibit H attached hereto, for an aggregate redemption price of $95,000,000 (the
"REDEMPTION PRICE") payable by wire transfer of immediately available funds.

      1.4 CHARTER; BYLAWS; SUBORDINATED DEBT. Immediately prior to or
contemporaneously with the Closing, the Company shall have (a) filed with the
Secretary of

                                      -2-
<PAGE>

State of Illinois the Articles of Incorporation, and the same shall have become
effective in accordance with Illinois law, (b) adopted the Bylaws and Stock
Option Plan, (c) executed and delivered the Note Purchase Agreement and the
Subordinated Notes to the Lenders for which it shall receive proceeds of
$30,000,000.

      1.5 USE OF PROCEEDS. The Company shall apply the proceeds from the sale of
the Convertible Preferred Shares and the Subordinated Debt to the Redemption.

      1.6 CLOSING. The closing of the purchase and sale of the Convertible
Preferred Shares (the "CLOSING") shall take place at a mutually agreeable
location on the date hereof (the "CLOSING DATE"), and promptly following the
Closing and on the same day, the closing of the Redemption shall occur. At the
Closing, the Company shall deliver or cause to be delivered to each of the
Investors stock certificates representing all of the Convertible Preferred
Shares issued hereunder, free and clear of any and all liens, claims, options,
charges, pledges, security interests, deeds of trust, voting agreements (except
as provided herein), voting trusts, encumbrances, rights or restrictions of any
nature ("CLAIMS"), and the Company shall apply the proceeds of the purchase and
sale of the Convertible Preferred Stock and the Subordinated Debt to the
Redemption. At the closing of the Redemption, the Stockholders agree with the
Company and the Investors that they shall transfer to the Company the shares of
Common Stock to be redeemed hereunder free and clear of all Claims and the
Company shall pay to the Stockholders the redemption price for such shares. All
cash payments hereunder shall be made by wire transfer of same day available
funds.

      1.7 TRANSFER TAXES. All transfer taxes, fees and duties under applicable
law incurred in connection with the sale and transfer of the Convertible
Preferred Shares under this Agreement will be borne and paid by the Company and
it shall promptly reimburse the Investors for any such tax, fee or duty which
any of them is required to pay under applicable law.

      1.8 FURTHER ASSURANCES. The Stockholders, the Company, and the Investors
from time to time after the Closing at the request of any other party hereto and
without further consideration shall execute and deliver further instruments of
transfer and assignment and take such other action as a party may reasonably
require to more effectively transfer and assign to, and vest in, the Investors,
the Securities and all rights thereto, and to fully implement the provisions of
this Agreement.

      1.9 EXTRAORDINARY DIVIDEND.

            (a) The Company shall prepare in good faith and deliver to the
Investors at Closing a statement setting forth the Company's determination of
its cash and cash equivalents as of the Closing (the "Estimated Cash Amount").
Immediately prior to the Closing, the Company made an extraordinary cash
dividend in the aggregate amount of $13,500,000 to the Stockholders (on a
pro-rata basis based on their relative holdings of Common Stock as of
immediately prior to the Closing), which amount is equal to ninety percent (90%)
of the positive difference between the Estimated Cash Amount and $20,000,000
(the "Extraordinary Dividend"). For purposes of Section 1.9(c) below, the term
"Dividend Holdback Amount" shall mean an amount equal to $1,500,000, which
amount equals ten percent (10%) of the positive difference between the Estimated
Cash Amount and $20,000,000.

                                      -3-
<PAGE>

            (b) As soon as practicable after the Closing, the Company shall
deliver to the Investors a balance sheet for the Company as of the Closing Date
which shall be prepared in accordance with generally accepted accounting
principles of the United States (except as set forth in Section 2.6 of the
Disclosure Schedule) applied on a consistent basis (the "Final Closing Date
Balance Sheet") and a statement based on such Final Closing Date Balance Sheet
setting forth the Company's determination of its cash and cash equivalents as of
the Closing Date (the "Final Cash Amount"),

            (c) Subject to subsection (d) below, on the later of (i) the date
which is thirty (30) days after the Closing Date and (ii) the date which is
seven (7) days after the delivery of the Final Closing Date Balance Sheet by the
Company to the Investors, the Company and the Investors shall reconcile the
extraordinary dividend amount as set forth below in this subsection (c). In the
event that the Final Cash Amount is greater than the Estimated Cash Amount (the
positive difference being the "Excess Cash Amount"), then the Company shall
within five (5) business days of such determination make a cash payment to the
Stockholders (on a pro-rata basis based on their relative holdings of Common
Stock as of immediately prior to the Closing) equal to the sum of the Dividend
Holdback Amount and the Excess Cash Amount. In the event that the Final Cash
Amount is equal to the Estimated Cash Amount, then the Company shall within five
(5) business days of such determination make a cash payment to the Stockholders
(on a pro-rata basis based on their relative holdings of Common Stock as of
immediately prior to the Closing) equal to the Dividend Holdback Amount. In the
event that the Final Cash Amount is less than the Estimated Cash Amount (the
negative difference being the "Cash Shortfall Amount"), then the Company shall
within five (5) business days of such determination make a cash payment to the
Stockholders (on a pro-rata basis based on their relative holdings of Common
Stock as of immediately prior to the Closing) equal to the positive difference
between the Dividend Holdback Amount and the Cash Shortfall Amount; provided,
however, in the event that the Cash Shortfall Amount exceeds the Dividend
Holdback Amount, each of the Stockholders (on a pro-rata basis based on their
relative holdings of Common Stock as of immediately prior to the Closing) hereby
agrees to promptly pay the Company an amount equal to the difference between the
Cash Shortfall Amount and the Dividend Holdback Amount.

            (d) Notwithstanding the above, in the event that the Investors do
not agree on the Final Closing Date Balance Sheet or the Final Cash Amount
prepared by the Company, any disputes shall be resolved by an independent Big 4
accounting firm (the "Accountant"). The final determination by the Accountant of
the Final Closing Date Balance Sheet and Final Cash Amount shall (i) be made no
later than thirty (30) days following retention of such firm by the parties,
(ii) be set forth in writing, (iii) be conclusive and binding upon the parties,
(iv) not be subject to dispute or review and (v) be the final determination of
such matters. The Company shall pay the fees and expenses of such accounting
firm.

SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND THE STOCKHOLDERS

      In order to induce the Investors to enter into this Agreement and
consummate the transactions contemplated hereby, the Company and the Foxman
Stockholders, on a joint and

                                      -4-
<PAGE>

several basis, hereby make to the Investors the representations and warranties
contained in this Section 2; provided that the representations and warranties
set forth in Sections 2.2(b) and 2.4(b) are made solely by each Stockholder
severally and not jointly. Such representations and warranties are subject to
the qualifications and exceptions set forth in the disclosure schedule delivered
to the Investors pursuant to this Agreement (the "DISCLOSURE SCHEDULE"). For
purposes hereof unless otherwise indicated, all references to the Company shall
include all Subsidiaries (as defined herein) of the Company and predecessors, if
any. References to the knowledge or awareness of the Company are deemed to mean
the actual knowledge of the officers of the Company and the Foxman Stockholders
after due inquiry.

      2.1 ORGANIZATION AND CORPORATE POWER. The Company is a corporation duly
organized, validly existing and in good standing under the laws of Illinois, and
is duly qualified or registered to do business as a foreign corporation (a) in
each jurisdiction listed in Section 2.1 of the Disclosure Schedule and (b) in
each jurisdiction in which the failure to be so duly qualified or registered has
had, or could have, a material adverse effect on the assets, liabilities,
condition (financial or other), business or results of operations of the Company
(a "MATERIAL ADVERSE EFFECT"). The Company has all required corporate power and
authority to carry on its business as presently conducted, to enter into and
perform this Agreement and the agreements contemplated hereby to which it is a
party and to carry out the transactions contemplated hereby and thereby,
including the issuance of the Securities. The copies of the Articles of
Incorporation, as amended as of the Closing Date and certified by the Secretary
of State of Illinois, and the Bylaws, as amended as of the Closing Date and
certified by the Secretary of the Company, have been furnished to the Investors
by the Company, are correct and complete as of the date hereof, and the Company
is not in violation of any term of its Articles of Incorporation or Bylaws.

      2.2 AUTHORIZATION AND NON-CONTRAVENTION.

            (a) This Agreement and all agreements, documents and instruments
executed and delivered by the Company pursuant hereto are valid and binding
obligations of the Company, enforceable in accordance with their respective
terms, except: (x) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors' rights generally and (y) as limited by laws relating
to the availability of specific performance, injunctive relief or other
equitable remedies. The execution, delivery and performance of this Agreement
and all agreements, documents and instruments executed and delivered by the
Company pursuant hereto, the issuance and delivery of the Convertible Preferred
Shares, and, upon conversion of the Convertible Preferred Shares, the issuance
and delivery of the Conversion Shares, have been duly authorized by all
necessary corporate or other action of the Company. The execution and delivery
of this Agreement and all agreements, documents and instruments executed and
delivered by the Company pursuant hereto, the issuance and delivery of the
Convertible Preferred Shares, and, upon conversion of the Convertible Preferred
Shares, the issuance and delivery of the Conversion Shares and the performance
of the transactions contemplated by this Agreement and such other agreements,
documents and instruments, do not and will not: (i) violate or result in a
violation of, conflict with or constitute or result in a violation of or default
(whether after the giving of notice, lapse of time or both) under any contract
or obligation to which the Company is a party or by which its assets are bound,
or any provision of the Articles of Incorporation or Bylaws, or cause the

                                      -5-
<PAGE>

creation of any Claim upon any of the assets of the Company; (ii) violate,
conflict with or result in a violation of, or constitute a default (whether
after the giving of notice, lapse of time or both) under, any provision of any
law, regulation or rule, or any order of, or any restriction imposed by, any
court or governmental agency applicable to the Company; (iii) based, and in
reliance, upon the accuracy of the Investors' representations and warranties set
forth in Section 3.3, require from the Company any notice to, declaration or
filing with, or consent or approval of any governmental authority or other third
party; or (iv) violate or result in a violation of, or constitute a default
(whether after the giving of notice, lapse of time or both) under, accelerate
any obligation under, or give rise to a right of termination of, any agreement,
permit, license or authorization to which the Company is a party or by which the
Company is bound.

            (b) This Agreement and all agreements, documents and instruments
executed and delivered by any Stockholder pursuant hereto are valid and binding
obligations of such Stockholder enforceable in accordance with their respective
terms, except: (x) as limited by applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors' rights generally and (y) as limited by laws relating
to the availability of specific performance, injunctive relief or other
equitable remedies. Each Stockholder has full right, authority, power and
capacity to enter into this Agreement and all agreements, documents and
instruments executed and delivered by such Stockholder pursuant hereto and to
carry out the transactions contemplated hereby and thereby. The execution,
delivery and performance by each Stockholder of this Agreement and all
agreements, documents and instruments executed and delivered by such Stockholder
pursuant hereto and the performance of the transactions contemplated by this
Agreement and such other agreements, documents and instruments do not and will
not: (i) violate or result in a violation of, conflict with or constitute or
result in a violation of or default (whether after the giving of notice, lapse
of time or both) under, accelerate any obligation under, or give rise to a right
of termination of, any contract, agreement, obligation, permit, license or
authorization to which the Company or such Stockholder is a party or by which
any of them or their respective assets are bound, or any provision of such
Stockholder's organizational documents, if applicable; (ii) violate or result in
a violation of, or constitute a default (whether after the giving of notice,
lapse of time or both) under, any provision of any law, regulation or rule, or
any order of, or any restriction imposed by, any court or governmental agency
applicable to the Company or such Stockholder; (iii) require from the Company or
such Stockholder any notice to, declaration or filing with, or consent or
approval of, any governmental authority or other third party, or (iv) violate or
result in a violation of, or constitute a default (whether after the giving of
notice, lapse of time or both) under, accelerate any obligation under, or give
rise to a right of termination of, any agreement, permit, license or
authorization to which the Company or such Stockholder is a party or by which
the Company or such Stockholder is bound.

      2.3 CORPORATE RECORDS. The corporate record books of the Company
accurately reflect all corporate action taken by its shareholders and board of
directors and committees. The copies of the corporate records of the Company, as
delivered to the Investors, are true and complete copies of the originals of
such documents.

      2.4 CAPITALIZATION.

                                      -6-
<PAGE>

            (a) Immediately prior to giving effect to the transactions
contemplated hereby, the authorized capital stock of the Company consisted of
(i) 8,000 shares of Common Stock of which 5,756 shares were issued and
outstanding, (ii) 3,437 shares of Convertible Preferred Stock, of which no
shares were issued and outstanding and (iii) 3,437 shares of Redeemable
Preferred Stock, of which no shares were issued and outstanding. As of the
Closing and after giving effect to the transactions contemplated hereby, the
authorized capital stock of the Company consists of (i) 8,000 shares of Common
Stock, of which 2,158.500 shares are issued and outstanding, (ii) 3,437 shares
of Convertible Preferred Stock, of which 3,436.099 shares are issued and
outstanding and (iii) 3,437 shares of Redeemable Preferred Stock, of which no
shares are issued and outstanding. The relative rights, preferences and other
provisions relating to the Convertible Preferred Stock, the Redeemable Preferred
Stock and the Common Stock are as set forth in the Articles of Incorporation,
and such rights and preferences are valid and enforceable in accordance with
their terms under the laws of the State of Illinois. Except as contemplated by
the Transaction Documents, there are no outstanding subscriptions, options,
warrants, commitments, preemptive rights, agreements, arrangements or
commitments of any kind relating to the issuance or sale of, or outstanding
securities convertible into or exercisable or exchangeable for, any shares of
capital stock of any class or other equity interests of the Company. Except as
provided herein, the Company has no obligation to purchase, redeem, or otherwise
acquire any of its capital stock or any interests therein, and has not redeemed
any shares of its capital stock in the past three (3) years. As of the Closing,
and after giving effect to the transactions contemplated hereby, all of the
outstanding shares of capital stock of the Company will have been duly and
validly authorized and issued, fully paid and non-assessable, and will have been
offered, issued, sold and delivered in compliance with applicable federal and
state securities laws without giving rise to preemptive rights of any kind. The
Company has duly and validly authorized and reserved (A) 273.516 shares of
Common Stock (subject to adjustment) for issuance in connection with awards
granted or exercised under the Stock Option Plan, (B) 3,436.099 shares of Common
Stock and 3,436.099 shares of Redeemable Preferred Stock (subject to
adjustment), all for issuance upon conversion of the Convertible Preferred
Stock, and (C) 210.016 shares of Common Stock (subject to adjustment) for
issuance upon exercise of the Warrants, and the shares of Common Stock so issued
will, upon such grant, exercise or conversion, be validly issued, fully paid and
non-assessable. As of the Closing, and after giving effect to the transactions
contemplated hereby, other than rights set forth herein or in the Articles of
Incorporation, the Registration Rights Agreement or the Stockholders' Agreement,
there are (1) no preemptive rights, rights of first refusal, put or call rights
or obligations or anti-dilution rights with respect to the issuance, sale or
redemption of the Company's capital stock or any interests therein, (2) no
rights to have the Company's capital stock registered for sale to the public in
connection with the laws of any jurisdiction and (3) no documents, instruments
or agreements relating to the voting of the Company's voting securities or
restrictions on the transfer of the Company's capital stock.

            (b) Immediately prior to the Closing, the Stockholders are the sole
record and beneficial owners of the shares of Common Stock set forth opposite
their names on Exhibit A attached hereto, free and clear of any Claims including
Claims of spouses, former spouses and other family members. After giving effect
to the transactions contemplated hereby, the Common Stock and the Convertible
Preferred Stock will be held as set forth on Section 2.4(b) of the

                                      -7-
<PAGE>

Disclosure Schedule free and clear of any Claims (other than restrictions
imposed by securities laws applicable to unregistered securities generally).

      2.5 SUBSIDIARIES; INVESTMENTS. The Company does not own or control,
directly or indirectly, any interest in any other corporation, partnership,
limited liability company, association or other business entity, except as set
forth in Section 2.5 of the Disclosure Schedule. The Company has not made any
investment and does not hold any interest in or have any outstanding loan or
advance to or from, any person, including, without limitation, any officer,
director or stockholder of the Company.

      2.6 FINANCIAL STATEMENTS; PROJECTIONS.

            (a) The Company has previously furnished to the Investors and
attached hereto on Section 2.6(a) of the Disclosure Schedule copies of the
following financial statements: (i) the Company's balance sheets for the fiscal
years ended September 30, 2002 (the "BASE BALANCE SHEET") , September 30, 2001
and September 30, 2000 and the related statements of income, for the fiscal
years then ended, and (ii) the Company's unaudited balance sheet as of August
31, 2003 and the related unaudited statements of income, for the eleven-month
period then ended. Subject to Section 2.6(a) of the Disclosure Schedule such
financial statements were prepared in conformity with generally accepted
accounting principles of the United States applied on a consistent basis, are
consistent in all material respects with the books and records of the Company
and fairly present the financial position of the Company as of the dates thereof
and the results of operations and cash flows of the Company for the periods
shown therein. The Company has not entered into any transactions involving the
factoring of receivables, synthetic leases, off balance sheet research and
development arrangements or the use of special purpose entities for any off
balance sheet activity. Except as set forth in Section 2.6 of the Disclosure
Schedule, the Company's revenue recognition policies and the application of
those policies are in compliance with applicable standards under generally
accepted accounting principles of the United States applied on a consistent
basis. Nothing has come to the attention of the Company or the Foxman
Stockholders since such respective dates that would indicate that such financial
statements are not true and correct in all material respects as of the date
thereof.

            (b) The projections delivered to the Investors at Closing represent
good faith estimates of the performance of the Company for the periods stated
therein based upon assumptions that were believed in good faith to be reasonable
when made and continue to be reasonable as of the date hereof; provided however,
that the foregoing is not a guarantee that such projections will be achieved.

            (c) As of immediately prior to the Closing and prior to giving
effect to the transactions contemplated hereby, the Company has at least $20
million in cash and cash equivalents.

            (d) The Company's net working capital as of the Closing and prior to
giving effect to the transactions contemplated hereby is not materially
different from the net working capital of the Company as of July 31, 2003
(except as reduced by the Extraordinary Dividend (including any post closing
adjustments thereto)). Since the date of the Base Balance Sheet, the Company has
paid its accounts payable in the ordinary course of its business and in a manner

                                      -8-
<PAGE>

that is consistent with its past practices. Since the date of the Base Balance
Sheet, the Company has collected its accounts receivable in the ordinary course
of its business and in a manner that is consistent with past practices and has
not accelerated any such collections.

      2.7 ABSENCE OF UNDISCLOSED LIABILITIES. The Company does not have any
material liabilities or obligations of any nature, whether accrued, absolute,
contingent, asserted, unasserted or otherwise, except liabilities or obligations
(i) stated or adequately reserved against in the Base Balance Sheet, (ii)
incurred as a result of or arising out of the transactions contemplated under
this Agreement, or (iii) incurred in the ordinary course of business since the
date of the Base Balance Sheet.

      2.8 ABSENCE OF CERTAIN DEVELOPMENTS. Since the date of the Base Balance
Sheet, the Company has conducted its business only in the ordinary course
consistent with past practice and, except with respect to the Extraordinary
Dividend or as set forth in Section 2.8 of the Disclosure Schedule, there has
not been:

            (a) any change in the assets, liabilities, condition (financial or
other), properties, business or operations of the Company, which change by
itself or in conjunction with all other such changes, whether or not arising in
the ordinary course of business, has had or could be reasonably likely to have a
Material Adverse Effect;

            (b) any mortgage, lien or other encumbrance placed on any of the
properties of the Company, other than purchase money liens and liens for taxes
not yet due and payable;

            (c) any purchase, sale or other disposition, or any agreement or
other arrangement for the purchase, sale or other disposition, of any properties
or assets by the Company, including any of its Intellectual Property Assets (as
defined below), involving the payment or receipt of more than $100,000 other
than sales of goods and services by the Company in the ordinary course of
business;

            (d) any damage, destruction or loss, whether or not covered by
insurance, that has had or could be reasonably likely to have a Material Adverse
Effect;

            (e) except for the Redemption, any declaration, setting aside or
payment of any dividend by the Company, or the making of any other distribution
in respect of the capital stock of the Company, or any direct or indirect
redemption, purchase or other acquisition by the Company of its own capital
stock;

            (f) any labor trouble or claim of unfair labor practices involving
the Company, any change in the compensation payable or to become payable by the
Company to any of its officers or employees other than normal merit increases to
such employees in accordance with its usual practices, or any bonus payment or
arrangement made to or with any of such officers or employees or any
establishment or creation of any employment, deferred compensation or severance
arrangement or employee benefit plan other than the Stock Option Plan with
respect to such persons or the amendment of any of the foregoing;

                                      -9-
<PAGE>

            (g) any resignation, termination or removal of any officer of the
Company or material loss of personnel of the Company or material change in the
terms and conditions of the employment of the Company's officers or key
personnel;

            (h) any payment or discharge of a material lien or liability of the
Company that was not shown on the audited balance sheet of the Company as of the
date of the Base Balance Sheet or incurred in the ordinary course of business
thereafter;

            (i) any contingent liability incurred by the Company as guarantor or
otherwise with respect to the obligations of others or any cancellation of any
material debt or claim owing to, or waiver of any material right of, the
Company, including any write-off or compromise of any accounts receivable other
than write-offs or compromises of accounts receivable that are in the ordinary
course of business in amounts consistent with past practice;

            (j) any obligation or liability incurred by the Company to any of
its officers, directors, shareholders or employees, or any loans or advances
made by the Company to any of its officers, directors, shareholders or
employees, except normal compensation and expense allowances payable to officers
or employees in the ordinary course of business;

            (k) any change in accounting methods or practices, collection
policies, pricing policies or payment policies of the Company;

            (l) any loss, or any known development that could reasonably be
expected to result in a loss, of any significant supplier, customer, distributor
or account of the Company;

            (m) any amendment or termination of any material contract or
agreement to which the Company is a party or by which it is bound;

            (n) any arrangements relating to any royalty or similar payment
based on the revenues, profits or sales volume of the Company, whether as part
of the terms of the Company's capital stock or by any separate agreement;

            (o) any transaction or agreement involving fixed price terms or
fixed volume arrangements;

            (p) any other transaction entered into by the Company other than
transactions in the ordinary course of business;

            (q) except as provided in this Agreement, any amendment to the
Company's articles of incorporation or by-laws;

            (r) any agreement or understanding whether in writing or otherwise,
for the Company to take any of the actions specified in paragraphs (a) through
(q) above.

      2.9 ACCOUNTS RECEIVABLE; ACCOUNTS PAYABLE; INVENTORIES.

            (a) All of the accounts receivable of the Company are valid claims,
subject to no set-off or counterclaim, and, to its knowledge, fully collectible
in the normal course of

                                      -10-
<PAGE>

business; provided, however, that the foregoing is not a guarantee that such
accounts receivable will be fully collected. The reserve for doubtful accounts
stated in the Base Balance Sheet is in accordance with generally accepted
accounting principles of the United States and is believed in good faith to be
reasonable and appropriate. The Company does not have any accounts receivable or
loans receivable from any person with whom it is affiliated or any of its
directors, officers, employees or shareholders.

            (b) All accounts payable and notes payable of the Company arose in
bona fide arm's length transactions in the ordinary course of business and no
such account payable or note payable is delinquent in its payment, except for
such account payable or note payable that is subject to a bona fide dispute or
payment arrangement. The Company has no account payable to any person with whom
it is affiliated or any of its directors, officers, employees or shareholders.

            (c) The values of the inventories stated in the Base Balance Sheet
reflect the normal inventory valuation policies of the Company and were
determined in accordance with generally accepted accounting principles of the
United States, consistently applied. Any inventory writedowns have been done in
the ordinary course of business consistent with the Company's historical
inventory practices. Purchase commitments for raw materials and parts are not in
excess of normal requirements and none are at prices materially in excess of
current market prices. All of the Company's inventory items are of a quality and
quantity salable in the ordinary course of its business at profit margins
consistent with the Company's experience in prior years, taking into account
fluctuations and trends in the market in which its goods and services are sold.
Since the date of the Base Balance Sheet, no inventory items have been sold or
disposed of except through sales in the ordinary course of business at profit
margins consistent with the Company's experience in prior years taking into
account fluctuations and trends in the market in which its goods and services
are sold, and all sales commitments made for the Company's products are at
prices not less than inventory values plus selling expenses and said profit
margins.

      2.10 TRANSACTIONS WITH AFFILIATES. There are no loans, leases or other
agreements or transactions between the Company or any present or former
shareholder, director, officer or employee of the Company, or to the knowledge
of the Company, any member of such officer's, director's, employee's or
stockholder's immediate family, or any person controlled by such officer,
director, employee or stockholder or his or her immediate family. No
shareholder, director, officer or employee of the Company, or to the knowledge
of the Company any of their respective spouses or family members, owns directly
or indirectly, on an individual or joint basis, any interest in, or serves as an
officer or director or in another similar capacity of, any competitor, customer
or supplier of the Company, or any organization which has a material contract or
arrangement with the Company.

      2.11 PROPERTIES. The Company has good, valid and (if applicable)
marketable title to all assets material to its business and to those assets
reflected on the Base Balance Sheet or acquired by it after the date thereof
(except for properties disposed of since that date in the ordinary course of
business), free and clear of Claims, except for liens for Taxes (as hereinafter
defined) not yet due and payable, and minor liens and encumbrances that do not
materially detract from the value of the property subject thereto or impair the
operations of the Company. All equipment included in such properties that is
necessary to the business of the Company is in

                                      -11-
<PAGE>

good condition and repair (ordinary wear and tear excepted) and all leases of
real or personal property to which the Company is a party are fully effective
and afford the Company peaceful and undisturbed possession of the subject matter
to the lease. The property and assets of the Company are sufficient for the
conduct of its business as presently conducted.

      2.12 TAX MATTERS.

            (a) The Company has timely and properly filed all federal, state,
local and foreign tax returns required to be filed by it through the date
hereof, and all such tax returns filed by the Company are true, correct and
complete in all material respects. The Company has paid or caused to be paid all
material federal, state, local, foreign and other taxes, including without
limitation, income taxes, estimated taxes, alternative minimum taxes, excise
taxes, sales taxes, franchise taxes, employment and payroll related taxes,
withholding taxes, transfer taxes, and all deficiencies, or other additions to
tax, interest, fines and penalties owed by it (collectively, "TAXES"), required
to be paid by it through the date hereof whether disputed or not, except Taxes
that have not yet accrued or the payment for which has not otherwise become due.
The provisions for payment of any accrued and unpaid Taxes of the Company in the
Base Balance Sheet are sufficient as of its date for the payment of any accrued
and unpaid Taxes of any nature of the Company, and since the date of the Base
Balance Sheet the Company has incurred no Taxes other than in the ordinary
course of its business. All Taxes and other assessments and levies that the
Company was or is required to withhold or collect have been withheld and
collected and have been paid over to the proper governmental authorities. The
Company has delivered to the Investors correct and complete copies of all annual
tax returns, examination reports, and statements of deficiencies filed by,
assessed against, or agreed to by the Company since December 31, 1995. The
Company has not waived any statute of limitations in respect of Taxes or agreed
to any extension of time with respect to any Tax payment, assessment, deficiency
or collection. Except as set forth in Section 2.12 of the Disclosure Schedule:
(i) the Company has never received notice of any audit or of any proposed
deficiencies from the Internal Revenue Service (the "IRS") or any other taxing
authority (other than routine audits undertaken in the ordinary course and which
have been resolved on or prior to the date hereof); (ii) there are in effect no
waivers of applicable statutes of limitations or agreements as to any extension
of time with respect to any Tax payment, assessment, deficiency or collection.
with respect to any Taxes owed by the Company for any year; (iii) neither the
IRS nor any other taxing authority is now asserting or, to the knowledge of the
Company, threatening to assert against the Company any deficiency or claim for
additional Taxes or interest thereon or penalties in connection therewith; (iv)
the Company has never been a member of an affiliated group of corporations
filing a combined federal income Tax return nor does the Company have any
liability for Taxes of any other Person under Treasury Regulations Section
1.1502-6 (or any similar provision of foreign, state or local law) or otherwise;
and (v) the Company has not filed a consent under Section 341(f) of the Internal
Revenue Code of 1986, as amended (the "CODE"), concerning collapsible
corporations. The Company has never been a United States real property holding
corporation within the meaning of Section 897(c)(2) of the Code during the
applicable period specified in Section 897(c)(1)(A)(ii) of the Code. The Company
is not a party to any Tax allocation or sharing arrangement. The Company is not
a party to any contract, agreement, plan or arrangement covering any employee or
former employee thereof, that, individually or collectively, could give rise to
the payment of any amount that would not be deductible pursuant

                                      -12-
<PAGE>

to Section 280G or Section 162 of the Code. The Company is not a "FOREIGN
PERSON" within the meaning of Section 1445 of the Code and Treasury Regulations
Section 1.1445-2.

            (b) The taxable year of the Company for federal and state income tax
purposes is the fiscal year ended December 31st.

            (c) The Company has never been (i) a passive foreign investment
company, (ii) a foreign personal holding company, (iii) a foreign sales
corporation, (iv) a foreign investment company or (v) a person other than a
United States person, each within the meaning of the Code.

      2.13 CERTAIN CONTRACTS AND ARRANGEMENTS. Except as set forth in Section
2.13 of the Disclosure Schedule (with true and correct copies of each agreement
referred to therein provided to the Investors) or as contemplated by this
Agreement, the Company is not a party or subject to or bound by:

            (a) any contract or agreement involving a potential commitment or
payment by the Company in excess of $100,000;

            (b) any contract, lease or agreement that is not cancelable by the
Company without penalty on not less than ninety (90) days notice;

            (c) any contract containing covenants directly or explicitly
limiting in any respect the freedom of the Company to compete in any line of
business or with any person or entity;

            (d) any contract or agreement relating to the licensing,
distribution, development, purchase, sale or servicing of its software or
hardware products except in the ordinary course of business consistent with past
practices or any of its Intellectual Property Assets;

            (e) any indenture, mortgage, promissory note, loan agreement,
guaranty or other agreement or commitment for borrowing or any pledge or
security arrangement;

            (f) any stock redemption or purchase agreements or other agreements
affecting or relating to the capital stock of the Company, including, without
limitation, any agreement with any shareholder of the Company which includes
anti-dilution rights, registration rights, voting arrangements, operating
covenants or similar provisions;

            (g) any pension, profit sharing, retirement or stock option plans;

            (h) any royalty, dividend or similar arrangement based on the
revenues or profits of the Company or any contract or agreement involving fixed
price or fixed volume arrangements;

            (i) any joint venture, partnership, manufacturer, development or
supply agreement or other agreement that involves a sharing of revenues,
profits, losses, costs or liabilities by the Company with any other Person;

                                      -13-
<PAGE>

            (j) any acquisition, merger or similar agreement;

            (k) any collective bargaining agreement or other agreement with any
labor union or other employee representative of a group of employees;

            (l) any contract with any governmental or quasi governmental entity;

            (m) any contract not executed in the ordinary course of business; or

            (n) any other material contract.

      All such contracts, agreements, leases and instruments are valid and are
in full force and effect and constitute legal, valid and binding obligations of
the Company and, to the knowledge of the Company, of the other parties thereto,
and are enforceable in accordance with their respective terms, except: (x) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium and
other laws of general application affecting enforcement of creditors' rights
generally and (y) as limited by laws relating to the availability of specific
performance, injunctive relief or other equitable remedies. The Company has no
knowledge of any notice or threat to terminate any such contracts, agreements,
leases or instruments, which termination could reasonably be expected to have a
Material Adverse Effect. Neither the Company nor, to the knowledge of the
Company, any other party is in default in complying with any provisions of any
such contract, agreement, lease or instrument, or any other contract, agreement,
lease or instrument, the breach of which could reasonably be expected to have a
Material Adverse Effect, and no condition or event or fact exists which, with
notice, lapse of time or both, could constitute a default thereunder on the part
of the Company, except for any such default, condition, event or fact that,
individually or in the aggregate, that could not reasonably be expected to have
a Material Adverse Effect.

      2.14 INTELLECTUAL PROPERTY.

      (a) Section 2.14 of the Disclosure Schedule contains a complete and
accurate list of all Patents owned by the Company or otherwise used in the
Business ("Company Patents"), Marks owned by the Company or otherwise used in
the Business ("Company Marks") and Copyrights owned by the Company or otherwise
used in and, in either case, material to the Business ("Company Copyrights").
Except as set forth on Section 2.14 of the Disclosure Schedule:

                  (i) the Company exclusively owns or possesses adequate and
      enforceable rights to use, without payment to a third party, all of the
      Intellectual Property Assets necessary for the operation of the Business,
      free and clear of all mortgages, pledges, charges, liens, equities,
      security interests, or other encumbrances or similar agreements;

                  (ii) all Company Patents, Company Marks and Company Copyrights
      that are issued by or registered with, as applicable, the United States
      Patent and Trademark Office, the United States Copyright Office or in any
      similar office or agency anywhere in the world are currently in compliance
      with formal legal requirements

                                      -14-
<PAGE>

      (including without limitation, as applicable, payment of filing,
      examination and maintenance fees, proofs of working or use, timely
      post-registration filing of affidavits of use and incontestability and
      renewal applications) and are valid and enforceable;

                  (iii) there are no pending, or, to the Company's knowledge
      threatened claims against the Company or any of its employees alleging
      that any of the Company Intellectual Property Assets or the Business,
      infringes or conflicts with the rights of others under any Intellectual
      Property Assets ("THIRD PARTY RIGHTS");

                  (iv) to the Company's knowledge, neither the Business nor any
      Company Intellectual Property Asset infringes or conflicts with any Third
      Party Right;

                  (v) the Company has not received any communications alleging
      that the Company has violated or, by conducting the Business, would
      violate any Third Party Rights or that any of the Company Intellectual
      Property Assets is invalid or unenforceable;

                  (vi) no current or former employee or consultant of the
      Company owns any rights in or to any of the Company Intellectual Property
      Assets;

                  (vii) the Company is not aware of any violation or
      infringement by a third party of any of the Company Intellectual Property
      Assets;

                  (viii) the Company has taken reasonable security measures to
      protect the secrecy, confidentiality and value of all Trade Secrets used
      in the Business (the "Company Trade Secrets"), including, without
      limitation, requiring all Company employees and consultants and all other
      persons with access to Company Trade Secrets to execute a binding
      confidentiality agreement, copies or forms of which have been provided to
      the Investors and, to the Company's knowledge, there has not been any
      breach by any party to such confidentiality agreements;

                  (ix) (A) the Company has not directly or indirectly granted
      any rights, licenses or interests in the source code of the Products, and
      (B) since the Company developed the source code of the Products, the
      Company has not provided or disclosed the source code of the Products to
      any person or entity;

                  (x) in the ordinary course of business, the Products perform
      in accordance with their documented specifications and as Company has
      warranted to its customers;

                  (xi) in the ordinary course of business, the Products do not
      contain any "viruses", "time-bombs", "key-locks", or any other devices
      created that could disrupt or interfere with the operation of the Products
      or the integrity of the data, information or signals they produce in a
      manner adverse to the Company or any licensee or recipient; and

                                      -15-
<PAGE>

                  (xii) the Company has (A) not unlawfully collected any
      personally identifiable information from any third parties and (B)
      complied with all applicable regulations relating to the collection,
      storage and onward transfer of all personally identifiable information
      collected by the Company or by third parties having authorized access to
      Company's databases or other records.

            (b) For purposes of this Agreement,

                  (i) "Business" means the business of the Company as currently
      conducted and proposed to be conducted.

                  (ii) "Company Intellectual Property Assets" means all
      Intellectual Property Assets owned by the Company or used in the Business.
      "Company Intellectual Property Assets" includes, without limitation, the
      Products, Company Patents, Company Marks, Company Copyrights and Company
      Trade Secrets.

                  (iii) "Intellectual Property Assets" means:

                        (A) patents, patent applications, patent rights, and
            inventions and discoveries and invention disclosures (whether or not
            patented) (collectively, "Patents");

                        (B) trade names, trade dress, logos, packaging design,
            slogans, Internet domain names, registered and unregistered
            trademarks and service marks and related registrations and
            applications for registration (collectively, "Marks");

                        (C) copyrights in both published and unpublished works,
            including without limitation all compilations, databases and
            computer programs, manuals and other documentation and all copyright
            registrations and applications, and all derivatives, translations,
            adaptations and combinations of the above (collectively,
            "Copyrights");

                        (D) know-how, trade secrets, confidential or proprietary
            information, research in progress, algorithms, data, designs,
            processes, formulae, drawings, schematics, blueprints, flow charts,
            models, strategies, prototypes, techniques, Beta testing procedures
            and Beta testing results (collectively, "Trade Secrets"); and

                        (E) goodwill, franchises, licenses, permits, consents,
            approvals, and claims of infringement against third parties.

                  (iv) "Products" means those computer programs and/or services
      and related documentation designed, manufactured, marketed, sold and/or
      distributed by the Company. A complete list of the Products owned by
      Seller is provided on Schedule 2.16(b)(iv) attached hereto.

      2.15 LITIGATION. There is no litigation or governmental or administrative
proceeding or investigation pending or, to the knowledge of the Company,
threatened against the Company or

                                      -16-
<PAGE>

affecting the properties or assets of the Company, or, as to matters related to
the Company, against any officer, director, shareholder or key employee of the
Company in their respective capacities in such positions, nor, to the knowledge
of the Company, has there occurred any event nor does there exist any condition
on the basis of which any such claim may be asserted. Section 2.15 of the
Disclosure Schedule includes a description of all litigation, claims,
proceedings or, to the Company's knowledge, investigations involving the Company
or any of its officers, directors, shareholders or key employees in connection
with the business of the Company occurring, arising or existing during the past
three (3) years.

      2.16 LABOR MATTERS. The Company employs approximately one hundred seventy
six (176) full-time and five (5) part-time employees and generally enjoys good
employer-employee relationships. The Company is not delinquent in payments to
any of its employees for any wages, salaries, commissions, bonuses or other
direct compensation for any services performed for the Company as of the date
hereof or amounts required to be reimbursed to such employees. The Company is
and heretofore has been in compliance in all material respects with all
applicable laws and regulations respecting labor, employment, fair employment
practices, terms and conditions of employment, occupational safety and health,
and wages and hours. There are no charges of employment discrimination or unfair
labor practices or strikes, slowdowns, stoppages of work, or any other concerted
interference with normal operations existing, pending or, to the knowledge of
the Company, threatened against or involving the Company. The Company is, and at
all times the Company has been, in compliance in all material respects with the
requirements of the Immigration Reform Control Act of 1986. There are no changes
pending or, to the knowledge of the Company, threatened with respect to
(including, without limitation, the resignation of) the senior management or key
supervisory personnel or key independent contractors of the Company nor has the
Company received any notice or information concerning any prospective change
with respect to such senior management or key supervisory personnel. The Company
has never implemented any plant closing or mass layoff of employees as those
terms are defined in the Worker Adjustment Retraining and Notification Act of
1988, amended, or any similar state or local law or regulation, and no layoffs
that could implicate such laws or regulations are currently contemplated.

      2.17 PERMITS; COMPLIANCE WITH LAWS. The Company has all franchises,
authorizations, approvals, orders, consents, licenses, certificates, permits,
registrations, qualifications or other rights and privileges (collectively
"PERMITS") necessary to permit it to own its property and to conduct its
business as it is presently conducted or proposed to be conducted and all such
Permits are valid and in full force and effect. No Permit is subject to
termination as a result of the execution of this Agreement or consummation of
the transactions contemplated hereby. The Company is now and has heretofore been
in compliance in all material respects with all applicable statutes, ordinances,
orders, rules and regulations promulgated by any U.S. federal, state, municipal,
non-U.S. or other governmental authority, which apply to the conduct of its
business. The Company has never entered into or been subject to any judgment,
consent decree, compliance order or administrative order with respect to any
aspect of the business, affairs, properties or assets of the Company or received
any request for information, notice, demand letter, administrative inquiry or
formal or informal complaint or claim from any regulatory agency with respect to
any aspect of the business, affairs, properties or assets of the Company.

                                      -17-
<PAGE>

      2.18 EMPLOYEE BENEFIT PROGRAMS.

            (a) The Company does not maintain or contribute to and for the past
five (5) years has not maintained or contributed to, any employee benefit plan
within the meaning of Section 3(3) of the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), any material fringe benefit, stock option,
equity-based compensation, phantom stock, bonus or incentive plan, severance pay
policy or agreement, retirement, pension, profit sharing or deferred
compensation plan or agreement, or any similar plan or agreement or any plan or
arrangement providing compensation to employees or non-employee directors (an
"EMPLOYEE BENEFIT PROGRAM") other than the Employee Benefit Programs identified
and described in Section 2.18(a) of the Disclosure Schedule attached hereto. A
brief description of each Employee Benefit Program has been provided to the
Investors. The terms and operation of each such Employee Benefit Program comply
and have heretofore complied in all material respects with all applicable laws
and regulations relating to each such Employee Benefit Program. There are no
unfunded obligations of the Company under any Employee Benefit Program that have
not been accrued unless such accrual is not necessary under generally accepted
accounting principles of the United States. The Company is not required to make
any payments or contributions to any Employee Benefit Program pursuant to any
collective bargaining agreement or, to the knowledge of the Company, any
applicable labor relations law, and all Employee Benefit Programs are terminable
at the discretion of the Company without liability to the Company upon or
following such termination, except for benefits accrued under the terms of such
Employee Benefit Programs. Except as described in Section 2.18(a) of the
Disclosure Schedule, the Company has never maintained or contributed to any
Employee Benefit Program providing or promising any health or other nonpension
benefits to employees after their employment terminates other than as required
by part 6 of subtitle B of Title I of ERISA. With respect to any Employee
Benefit Program, to the knowledge of the Company, there has occurred no
"prohibited transaction," as defined in Section 406 of ERISA or Section 4975 of
the Code, or breach of any duty under ERISA or other applicable law that could
result, directly or indirectly, in any Taxes, penalties or other liability to
the Company. No litigation, arbitration or governmental administrative
proceeding (or investigation) or other proceeding (other than those relating to
routine claims for benefits) is pending or, to the knowledge of the Company,
threatened with respect to any such Employee Benefit Program.

            (b) Each Employee Benefit Program that has been intended to qualify
under Section 401(a) or 501(c)(9) of the Code has received a favorable
determination or approval letter from the IRS regarding its qualification under
such section or the time period for submitting a determination letter request
and adopting retroactive amendments under Code Section 401(b) and the
corresponding regulations is open as of the Closing Date and, to the Company's
Knowledge, each such Employee Benefit Plan has, in fact been qualified under the
applicable section of the Code from the effective date of such Employee Benefit
Program through and including the Closing Date (or, if earlier, the date that
all of such Employee Benefit Program's assets were distributed). Except as set
forth in Section 2.18(b) of the Disclosure Schedule, the Company has never
maintained any Employee Benefit Program which has been subject to Title IV of
ERISA or Code Section 412, including, but not limited to, any "multiemployer
plan" (as defined in Section 3(37) or Section 4001(a)(3) of ERISA). Each
reference to "Company" in this Section 2.18 also refers to any other entity that
is considered a single employer with the

                                      -18-
<PAGE>

Company under ERISA Section 4001(b) or part of the same "Controlled Group" as
the Company for purposes of ERISA Section 302(d)(8)(C). The Company's Employee
Stock Ownership Plan is not leveraged and is an "employee stock ownership plan"
within the meaning of Section 407(d)(6) of ERISA.

      2.19 INSURANCE COVERAGE. The Company has in full force and effect general
commercial, general liability, product liability, professional liability,
specified director's and officer's liability, workers compensation and
employee's liability, fire and casualty and such other appropriate insurance
policies with coverages customary for similarly situated companies in the same
or similar industries and as required by applicable law. Section 2.19 of the
Disclosure Schedule contains an accurate listing of the insurance policies
currently maintained by the Company. There are currently no claims pending
against the Company under any insurance policies currently in effect and
covering the property, business or employees of the Company, and all premiums
due and payable with respect to the policies maintained by the Company have been
paid to date. To the Company's knowledge, there is no threatened termination of
any such policies or arrangements.

      2.20 INVESTMENT BANKING; BROKERAGE. Except as set forth on Section 2.20 of
the Disclosure Schedule, there are no claims for investment banking fees,
brokerage commissions, broker's or finder's fees or similar compensation in
connection with the transactions contemplated by this Agreement payable by the
Company or based on any arrangement or agreement made by or on behalf of the
Company.

      2.21 ENVIRONMENTAL MATTERS. Except as set forth on Section 2.21 of the
Disclosure Schedule, no hazardous waste, substance or material, and no oil,
petroleum, petroleum product, asbestos, toxic substance, pollutant or
contaminant (collectively, "HAZARDOUS MATERIAL"), has been generated,
transported, used, handled, processed, disposed, stored or treated on any real
property owned, leased or operated by the Company. Except as set forth on
Section 2.21 of the Disclosure Schedule, no Hazardous Material has been spilled,
released, discharged, disposed, or transported from any real property owned,
leased or operated by the Company, and no Hazardous Material is present in, on,
or under any such property. The Company is, and at all times has been, in
compliance in all material respects with all applicable environmental, health
and safety laws, rules, ordinances, by-laws and regulations, and with all
permits, registrations and approvals required under such laws, rules,
ordinances, by-laws and regulations (collectively, "ENVIRONMENTAL LAWS"). Except
as set forth on Section 2.21 of the Disclosure Schedule, the Company is not
aware of any fact or circumstance that could involve the Company in any
litigation, or impose upon the Company any liability, arising under any
Environmental Laws.

      2.22 CUSTOMERS, DISTRIBUTORS AND PARTNERS. Section 2.22 of the Disclosure
Schedule sets forth the name of each customer and distributor of the Company who
accounted for more than five percent (5%) of the revenues of the Company for
each of the fiscal years ended September 30, 2001 and September 30, 2002 and/or
for the eleven months ended August 31, 2003 (the "CUSTOMERS" and "DISTRIBUTORS,"
respectively) together with the names of any persons or entities with which the
Company has a material strategic partnership or similar relationship
("PARTNERS"). Since the date of the Base Balance Sheet, no Customer, Distributor
or Partner of the Company has canceled or otherwise terminated its relationship
with the Company or has materially decreased its usage or purchase of the
services or products of the Company. No

                                      -19-
<PAGE>

Customer, Distributor or Partner has, to the knowledge of the Company, any plan
or intention to terminate, cancel or otherwise materially and adversely modify
its relationship with the Company or to decrease materially or limit its usage,
purchase or distribution of the services or products of the Company.

      2.23 SUPPLIERS. The Company's relationships with its major suppliers are
good commercial working relationships, and, within the last twelve months, no
supplier that the Company has paid or is under contract to pay $100,000 or more
has canceled, materially modified, or otherwise terminated its relationship with
the Company, or materially decreased its services, supplies or materials to the
Company, nor to the knowledge of the Company, does any supplier have any plan or
intention to do any of the foregoing.

      2.24 WARRANTY AND RELATED MATTERS. Section 2.24 of the Disclosure Schedule
sets forth a complete list of all outstanding product and service warranties and
guarantees on any of the products or services that the Company distributes,
services, markets, sells or produces for itself, a customer or a third party
(each such product or service shall be referred to herein as a "COMPANY
PRODUCT"). There are no existing or, to the knowledge of the Company,
threatened, claims against the Company relating to any work performed by the
Company, product liability, warranty or other similar claims against the Company
alleging that any Company Product is defective or fails to meet any product or
service warranties. There are (a) no inherent design defects or systemic or
chronic problems in any Company Product other than in connection with Company
Products that are in testing or development stages and (b) no liabilities for
warranty or other claims or returns with respect to any Company Product relating
to any such defects or problems that could reasonably be expected to have a
Material Adverse Effect.

      2.25 ILLEGAL PAYMENTS. Neither the Company nor, to the Company's
knowledge, any Person affiliated with the Company has ever offered, made or
received on behalf of the Company any illegal payment or contribution of any
kind, directly or indirectly, including, without limitation, payments, gifts or
gratuities, to any person, entity, or United States or foreign national, state
or local government officials, employees or agents or candidates therefor or
other persons.

      2.26 SOLVENCY. The Company has not: (a) made a general assignment for the
benefit of creditors; (b) filed any voluntary petition in bankruptcy or suffered
the filing of any involuntary petition by its creditors; (c) suffered the
appointment of a receiver to take possession of all, or substantially all, of
its assets; (d) suffered the attachment or other judicial seizure of all, or
substantially all, of its assets; (e) admitted in writing its inability to pay
its debts as they come due; or (f) made an offer of settlement, extension or
composition to its creditors generally.

      2.27 PRIVACY OF CUSTOMER INFORMATION. The Company has not used and does
not currently use any of the consumer or customer information that it has
received or currently receives through its website or otherwise in an unlawful
manner. The Company has not collected any customer information through its
website or otherwise in an unlawful manner. The Company has commercially
reasonable security measures in place to protect the consumer or customer
information it receives through its website or otherwise and, which it stores in
its computer systems, from illegal use by third parties or use by third parties
in a manner violative of the rights of privacy of its customers.

                                      -20-
<PAGE>

      2.28 BACKLOG. The Company has a backlog of purchase orders for the sale of
its products and services as set forth in Section 2.28 of the Disclosure
Schedule. None of such orders has been cancelled or materially reduced, and each
of such orders on backlog is at a price and on terms (including margin)
consistent with the Company's past practices and the ordinary course of
business.

      2.29 HEALTH MATTERS. To the Company's knowledge, each of Leonard Foxman
and Ted Foxman is in good health as of the Closing.

      2.30 DISCLOSURE. The representations and warranties made or contained in
this Agreement, the Disclosure Schedule and exhibits hereto and the certificates
and statements executed or delivered in connection herewith, when taken
together, do not and shall not contain any untrue statement of a material fact
and do not and shall not omit to state a material fact required to be stated
herein or therein or necessary in order to make such representations, warranties
or other material not misleading in the light of the circumstances in which they
were made or delivered. To the knowledge of the Company, there is no material
fact directly relating to the assets, liabilities, business, operations or
condition (financial or other) of the Company (including any competitive
developments other than facts that relate to general economic or industry trends
or conditions) that materially adversely affects the same. No officer or
director of the Company has been: (a) subject to voluntary or involuntary
petition under the federal bankruptcy laws or any state insolvency law or the
appointment of a receiver, fiscal agent or similar officer by a court for his or
her business or property or that of any partnership of which he or she was a
general partner or any corporation or business association of which he or she
was an executive officer; (b) convicted in a criminal proceeding or named as a
subject of a pending criminal proceeding (excluding traffic violations and other
minor offenses) or been otherwise accused of any act of moral turpitude; (c) the
subject of any order, judgment, or decree (not subsequently reversed, suspended
or vacated) of any court of competent jurisdiction permanently or temporarily
enjoining him or her from, or otherwise imposing limits or conditions on his or
her ability to engage in any securities, investment advisory, banking, insurance
or other type of business or acting as an officer or director of a public
company; (d) found by a court of competent jurisdiction in a civil action or by
the Securities and Exchange Commission ("SEC") or the Commodity Futures Trading
Commission to have violated any federal or state commodities, securities or
unfair trade practices law, which judgment or finding has not been subsequently
reversed, suspended, or vacated; or (e) has engaged in other conduct that would
be required to be disclosed in a prospectus under Item 401(f) of SEC Regulation
S-K.

SECTION 3. REPRESENTATIONS AND WARRANTIES OF THE INVESTORS

      In order to induce the Company to enter into this Agreement, each Investor
severally but not jointly represents and warrants to the Company the following:

      3.1 INVESTMENT STATUS. Each Investor is an "accredited investor," as such
term is defined in Rule 501 under the Securities Act of 1933, as amended (the
"Securities Act"). Each Investor is purchasing the Securities for its own
account, for investment only and not with a view to, or any present intention
of, effecting a distribution of such securities or any part thereof except
pursuant to a registration or an available exemption under applicable law. Each
Investor

                                      -21-
<PAGE>

acknowledges that its respective Securities have not been registered under the
Securities Act or the securities laws of any state or other jurisdiction and
cannot be disposed of unless they are subsequently registered under the
Securities Act and any applicable state laws or an exemption from such
registration is available.

      3.2 AUTHORITY AND NON-CONTRAVENTION. Each Investor has full right,
authority and power under its charter, by-laws or governing partnership
agreement, as applicable, to enter into this Agreement and all agreements,
documents and instruments executed by such Investor pursuant hereto and to carry
out the transactions contemplated hereby and thereby. This Agreement and all
agreements, documents and instruments executed by each Investor pursuant hereto
are valid and binding obligations of each of the Investors enforceable in
accordance with their respective terms, except: (x) as limited by applicable
bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors' rights generally and (y) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies. The execution, delivery and performance of
this Agreement and all agreements, documents and instruments executed by each
such Investor pursuant hereto have been duly authorized by all necessary action
under each such Investor's charter, by-laws or governing partnership agreement,
as applicable. The execution, delivery and performance by each Investor of this
Agreement and all agreements, documents and instruments to be executed and
delivered by each such Investor pursuant hereto do not and will not: (a) violate
or result in a violation of, conflict with or constitute or result in a default
(whether after the giving of notice, lapse of time or both) under, accelerate
any obligation under, or give rise to a right of termination of, any material
contract, agreement, obligation, permit, license or authorization to which each
such Investor is a party or by which such Investor or its assets is bound, or
any provision of each such Investor's organizational documents; (b) violate or
result in a violation of, or constitute a default (whether after the giving of
notice, lapse of time or both) under, any provision of any law, regulation or
rule, or any order of, or any restriction imposed by, any court or governmental
agency applicable to each such Investor; or (c) require from each such Investor
any notice to, declaration or filing with, or consent or approval of, any
governmental authority or other third party (that has not already been
obtained).

SECTION 4. CLOSING CONDITIONS AND DELIVERIES

      The obligations of each Investor to purchase and pay for its pro rata
portion of the Convertible Preferred Shares shall be subject to the fulfillment
by the Company and the Stockholders to the Investors' reasonable satisfaction or
waiver on or before the Closing of the following conditions:

      4.1 TRANSACTIONS TO OCCUR PRIOR TO CLOSING. Immediately prior to Closing
the Company shall have completed the following transactions on terms
satisfactory to the Investors:

            (a) the Company shall have adopted the Articles of Incorporation and
the Bylaws, respectively, and such Articles of Incorporation shall have been
filed and become effective under the laws of the State of Illinois; and,

            (b) the Company shall have adopted the Stock Option and Grant Plan;
and

                                      -22-
<PAGE>

            (c) the Company shall have executed and delivered the Note Purchase
Agreement, issued the Subordinated Notes to the Lenders and received $30,000,000
in proceeds.

      4.2 AUTHORIZATION. The Board of Directors and shareholders of the Company
shall have duly adopted resolutions in the form reasonably satisfactory to the
Investors and shall have taken all action necessary for the purpose of
authorizing the Company to consummate all of the transactions contemplated
hereby (including, without limitation, (a) the issuance of the Convertible
Preferred Shares and, upon conversion thereof the Conversion Shares, (b) the
issuance of the Convertible Subordinated Notes and the Warrants and the Common
Stock issuable upon exercise thereon, and (c) approving such purchases by the
Investors for purposes of Section 16 of the Securities Exchange Act of 1934, as
amended (the "EXCHANGE ACT"), and Rule 16b-3 thereunder).

      4.3 APPROVALS, CONSENTS AND WAIVERS. The Company and the Stockholders
shall have made all filings with and notifications of governmental authorities,
regulatory agencies and other entities required to be made by such parties in
connection with the execution and delivery of this Agreement, the performance of
the transactions contemplated hereby and the continued operation of the business
of the Company subsequent to the Closing and the Investors shall have received
copies of all authorizations, waivers, consents and permits, in form and
substance reasonably satisfactory to the Investors, including any and all
notices, consents and waivers required from all third parties, including,
without limitation, applicable governmental authorities, regulatory agencies,
lessors, lenders and contract parties, required to permit the continuation of
the business of the Company and the consummation of the transactions
contemplated by this Agreement and to avoid a breach, default, termination,
acceleration or modification of any indenture, loan or credit agreement or any
other material agreement, contract, instrument, mortgage, lien, lease, permit,
authorization, order, writ, judgment, injunction, decree, determination or
arbitration award as a result of, or in connection with, the execution and
performance of this Agreement.

      4.4 DELIVERIES BY THE COMPANY AND THE STOCKHOLDERS TO THE INVESTORS. At
the Closing, the Company and the Stockholders, as the case may be, shall have
delivered, or shall have caused to be delivered, to the Investors, all in form
and substance satisfactory to the Investors, the following:

            (a) the Stockholders' Agreement executed by the Company and the
shareholders of the Company named therein;

            (b) the Registration Rights Agreement executed by the Company;

            (c) a Management Rights Letter in the form attached as Exhibit I;

            (d) a Non-competition Agreement in the form attached as Exhibit J
executed by the Company, the Investors, and each of Leonard Foxman and the
Foxman Family LLC;

            (e) an Employment Agreement in the form attached as Exhibit K (an
"EMPLOYMENT AGREEMENT") executed by the Company and each of Theodore Foxman,
Leonard Foxman, Jack Weimer, Steve Dollens and Derek Abramovitch;

                                      -23-
<PAGE>

            (f) Certificates issued by (i) the Secretary of State of the State
of Illinois certifying that the Company has legal existence and is in good
standing; and (ii) the Secretary of State (or similar authority) of each
jurisdiction in which the Company has qualified to do business as a foreign
corporation (or is required to be so qualified) as to such foreign
qualification;

            (g) A certificate issued by the Secretary of State of the State of
Illinois certifying that the Articles of Incorporation have been filed and are
effective;

            (h) A certificate executed by the Secretary of the Company
certifying (i) the names of the officers of the Company authorized to sign this
Agreement and the other agreements, documents and instruments executed by the
Company pursuant hereto, together with the true signatures of such officers;
(ii) copies of consent actions taken by the Board of Directors and shareholders
of the Company authorizing the appropriate officers of the Company to execute
and deliver this Agreement and all agreements, documents and instruments
executed by the Company pursuant hereto, and to consummate the transactions
contemplated hereby and thereby, including, without limitation: (A) the adoption
of the Articles of Incorporation and Bylaws; (B) the issuance of the Convertible
Preferred Shares; (C) upon conversion of the Convertible Preferred Shares, the
issuance of the Common Conversion Shares; and (iii) the effectiveness, and
setting forth a copy of, the Articles of Incorporation;

            (i) An opinion of Katten Muchin Zavis Rosenman, dated as of the
Closing Date, substantially in the form attached hereto as Exhibit L;

            (j) Stock certificates evidencing the Convertible Preferred Shares
acquired from the Company hereunder;

            (k) the Note Purchase Agreement and the Convertible Subordinated
Notes each executed by the Company in favor of the Lenders, respectively;

            (l) Director Indemnification Agreements executed by the Company in
favor of Michael C. Child, Jameson J. McJunkin, Leonard Foxman, and Theodore
Foxman, substantially in the form attached hereto as Exhibit M; and

            (m) Such other supporting documents and certificates as the
Investors may reasonably request or as may be required pursuant to this
Agreement including, but not limited to:

                  (i) evidence of the full release of that certain lien on all
      of the assets of the Company held by American National Bank and Trust
      Company of Chicago ("ANB");

                  (ii) evidence of the termination of those certain Incentive
      Bonus/Stock Option/Restriction/Non-Compete Agreements by and among the
      Company, Leonard Foxman and Jack Weimer or Steve Dollens, as applicable;

                                      -24-
<PAGE>

                  (iii) evidence of the amendment of that certain assignment
      agreement between the Company and Eagle Test Systems, YH;

                  (iv) evidence of the consent to the transactions contemplated
      hereby of ANB, the landlord with respect to the property located at 5020
      South Ash Avenue, Tempe, AZ and the landlord with respect to the property
      located at 620 Butterfield Road, Mundelein, Illinois; and

                  (v) evidence of the termination of that certain Service
      Agreement between the Company and Pacific Support Group Partners.

      4.5 CLOSING DELIVERIES BY THE INVESTORS TO THE COMPANY. At the Closing,
the Investors shall deliver, or shall have caused to be delivered, to the
Company, the following:

            (a) A wire transfer of immediately available funds by the Investors
to the Company in respect of the purchase price for the Convertible Preferred
Shares in the aggregate amount of $65,000,000;

            (b) The Stockholders' Agreement executed by each of the Investors;

            (c) The Registration Rights Agreement executed by each of the
Investors; and

            (d) Such other supporting documents and certificates as the Company
may reasonably request and as may be required pursuant to this Agreement.

      4.6 CLOSING DELIVERIES BY THE STOCKHOLDERS TO THE COMPANY. At the
Closing, the Stockholders shall deliver, or shall have caused to be delivered,
to the Company, the stock certificates evidencing the shares of Common Stock
being redeemed by the Company in the Redemption duly endorsed in blank or
accompanied by stock powers duly executed in blank.

      4.7 ALL PROCEEDINGS SATISFACTORY. All corporate and other proceedings of
the Company taken prior to or at the Closing in connection with the transactions
contemplated by this Agreement, and all documents and evidences incident
thereto, shall be reasonably satisfactory in form and substance to the
Investors.

      4.8 NO LITIGATION. No action or proceeding by or before any court,
administrative body or governmental agency shall have been instituted or
threatened which seeks to enjoin, restrain or prohibit, or might result in
damages in respect of, this Agreement or consummation of the transactions
contemplated by this Agreement. No law or regulation shall be in effect and no
court order shall have been entered in any action or proceeding instituted by
any party that enjoins, restrains or prohibits this Agreement or the complete
consummation of the transactions contemplated in this Agreement.

      4.9 NO VIOLATION OR INJUNCTION. The consummation of the transactions
contemplated by this Agreement shall not be in violation of any law or
regulation, and shall not be subject to any injunction, stay or restraining
order.

                                      -25-
<PAGE>

SECTION 5. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; TRANSACTION RELATED
INDEMNIFICATION

      5.1 SURVIVAL OF REPRESENTATIONS, WARRANTIES AND COVENANTS.

            (a) All representations, warranties, covenants, and agreements of
the Company, the Stockholders and the Investors made in this Agreement, in the
Disclosure Schedule delivered to the Investors and all agreements, documents and
instruments executed and delivered in connection herewith (i) are material,
shall be deemed to have been relied upon by the party or parties to whom they
are made, and shall survive the Closing regardless of any investigation on the
part of such party or its representatives, with all parties hereto reserving
their respective rights hereunder and (ii) shall bind the parties' successors
and assigns (including, without limitation, any successor to the Company by way
of acquisition, merger or otherwise), whether so expressed or not, and, except
as otherwise provided in this Agreement, all such representations, warranties,
covenants and agreements shall inure to the benefit of the parties (subject to
Section 6.11 below) and their respective successors and assigns and to their
transferees of Securities, whether so expressed or not.

            (b) The representations and warranties contained in Section 2 hereof
shall expire and terminate and be of no further force and effect after the date
which is sixty (60) days following the Investors' receipt of the Company's
audited financial statements as of and for the fiscal year ending September 30,
2004, except that any written claim for breach thereof made prior to such
expiration date and delivered to the party against whom such indemnification is
sought shall survive thereafter and, as to any such claim, such applicable
expiration will not effect the rights to indemnification of the party making
such claim; provided, however, that any such written claim by the Investors with
respect to a breach of the representations and warranties of the Stockholders or
the Company may (i) with respect to a breach of the representations or
warranties contained in Section 2.1, Section 2.2, Section 2.4 or with respect to
fraud or intentional misrepresentation by the Company or the Stockholders, be
given at any time and (ii) with respect to a breach of the representations or
warranties contained in Section 2.12 and Section 2.20 and the items set forth in
Sections 5.2(a)(ii)-(iv) be given at any time prior to the expiration of the
applicable statute of limitations.

      5.2 TRANSACTION RELATED INDEMNIFICATION.

            (a) Each of the Stockholders acknowledges and agrees that the
Investors have relied on the representations, warranties, covenants and other
agreements of the Stockholders and the Company contained herein in connection
with their acquisition of the Convertible Preferred Stock and willingness to
provide the Company with the proceeds required to consummate the Redemption.
Accordingly, the Stockholders severally and not jointly, on his, her or its own
behalf and on behalf of his, her or its successors, executors, administrators,
estate, heirs and assigns (collectively, for the purposes of this Section 5.2,
the "STOCKHOLDER PARTIES", and each individually, a "STOCKHOLDER PARTY") (or, at
the sole option of the Investors with respect to any matter subject to
indemnification under this Section 5.2, the Company) agree (on a pro-rata basis
based on the relative proceeds received by each such Stockholder in the
Redemption), to defend, indemnify and hold the Investors, their respective
affiliates and direct and indirect partners

                                      -26-
<PAGE>

(including partners of partners and stockholders and members of partners),
members, stockholders, directors, officers, employees and agents and each person
who controls any of them within the meaning of Section 15 of the Securities Act
or Section 20 of the Exchange Act, (collectively, the "INVESTOR PARTIES" and,
individually, an "INVESTOR PARTY") harmless from and against any and all
damages, liabilities, losses, claims, diminution in value, obligations, liens,
assessments, judgments, Taxes, fines, penalties, reasonable costs and expenses
(including, without limitation, reasonable fees of a single counsel representing
the Investor Parties), as the same are incurred, of any kind or nature
whatsoever (whether or not arising out of third-party claims and including all
amounts paid in investigation, defense or settlement of the foregoing and
consequential damages) ("LOSSES") that may be sustained or suffered by any such
Investor Party based upon, arising out of, or by reason of (i) any breach of any
representation or warranty made by the Company or such Stockholders, as
applicable, in Section 2 of this Agreement; (ii) the generation, transport, use,
handling, processing, disposal, storage, release or treatment of the substance
1, 1, 1 trichloroethylene (TCE) ("TCE") at the property located at 1353 Armour
Boulevard, Mundelein, Illinois; (iii) any settlement, judgment or other payment
by the Company or any of its subsidiaries in excess of $250,000 with respect to
the Company's dispute with Schmidt Scientific Pte Ltd. ("Schmidt") in connection
with services performed by Schmidt for the Company, or (iv) any trademark
infringement claims by White Eagle Systems Technology, Inc. (or its successors
or assigns) with respect to the use by the Company of the name "Eagle Test
Systems" or a derivative thereof.

            (b) The Investor Parties jointly and severally agree to defend,
indemnify and hold the Stockholder Parties harmless from and against any and all
Losses that may be sustained or suffered by any such Stockholder Party based
upon, arising out of, or by reason of any breach of any representation or
warranty made by the Investors in Section 3 of this Agreement.

      5.3 LIMITATIONS ON TRANSACTION RELATED INDEMNIFICATION. Notwithstanding
anything in Section 5.2 to the contrary, (a) the Stockholder Indemnifying
Parties shall not be obligated to provide indemnification for Losses in respect
of claims made by any Investor Party for indemnification under Section 5.2 above
unless the total of all Losses in respect of claims made by the Investor Parties
for indemnification shall exceed $750,000 (the "DEDUCTIBLE") in the aggregate,
whereupon the total amount of such Losses in excess of the Deductible shall be
recoverable by the Investor Parties in accordance with the terms hereof, and (b)
the maximum amount payable by the Stockholder Parties to all Investor Parties
for Losses in respect of claims made by the Investor Parties for indemnification
under Section 5.2 shall not exceed $35,000,000; provided, however, that the
Investor Parties shall not be subject to any limitation pursuant to this Section
5.3 or otherwise, and shall be entitled to recovery from a Stockholder Party
(or, at the sole option of the Investors with respect to any matter subject to
indemnification under Section 5.2, from the Company for all Losses) for Losses
in connection with (i) fraud or intentional misrepresentation by the
Stockholders or the Company, (ii) the breach by the Company or the Stockholders
of any of the representations or warranties contained in Section 2.1, Section
2.2, Section 2.4, Section 2.6(c) and (d), Section 2.8, Section 2.12, or Section
2.20; (iii) the generation, transport, use, handling, processing, disposal,
storage, release or treatment of TCE at the property located at 1353 Armour
Boulevard, Mundelein, Illinois; (iii) any settlement, judgment or other payment
by the Company or any of its subsidiaries in excess of $250,000 with respect to
the Company's dispute with Schmidt in connection with services performed by

                                      -27-
<PAGE>

Schmidt for the Company, or (iv) any trademark infringement claims by White
Eagle Systems Technology, Inc. (or its successors or assigns) with respect to
the use by the Company of the name "Eagle Test Systems" or a derivative thereof.

      5.4 NOTICE; PAYMENT OF LOSSES; DEFENSE OF THIRD-PARTY CLAIMS.

            (a) An Indemnified Party (as defined below) shall give written
notice of a claim for indemnification under Section 5.2 to an Indemnifying Party
(as defined below) promptly after receipt of any written claim by any third
party and in any event not later than twenty (20) business days after receipt of
any such written claim (or not later than ten (10) business days after the
receipt of any such written claim in the event such written claim is in the form
of a formal complaint filed with a court of competent jurisdiction and served on
the Indemnified Party), specifying in reasonable detail the amount, nature and
source of the claim, and including therewith copies of any notices or other
documents received from third parties with respect to such claim; provided,
however, that failure to give such notice shall not limit the right of an
Indemnified Party to recover indemnity or reimbursement except to the extent
that the Indemnifying Party suffers any material prejudice or material harm with
respect to such claim as a result of such failure. The Indemnified Party shall
also provide the Indemnifying Party with such further information concerning any
such claims as the Indemnifying Party may reasonably request by written notice.

            (b) Within five (5) business days after receiving notice of a claim
for indemnification or reimbursement, the Indemnifying Party shall, by written
notice to the Indemnified Party, either (i) concede or deny liability for the
claim in whole or in part, or (ii) in the case of a claim asserted by a third
party, advise that the matters set forth in the notice are, or will be, subject
to contest or legal proceedings not yet finally resolved. If the Indemnifying
Party concedes liability in whole or in part, it shall, within twenty (20)
business days of such concession, pay the amount of the claim to the Indemnified
Party to the extent of the liability conceded. Any such payment shall be made in
immediately available funds equal to the amount of such claim so payable. If the
Indemnifying Party denies liability in whole or in part or advises that the
matters set forth in the notice are, or will be, subject to contest or legal
proceedings not yet finally resolved, then the Indemnifying Party shall make no
payment (except for the amount of any conceded liability payable as set forth
above) until the matter is resolved in accordance with this Agreement.

            (c) In the case of any third party claim, if within five (5)
business days after receiving the notice described in the preceding paragraph
(a), the Indemnifying Party gives written notice to the Indemnified Party
stating that the Indemnifying Party would be liable under the provisions hereof
for indemnity in the amount of such claim if such claim were valid and that the
Indemnifying Party disputes and intends to defend against such claim, liability
or expense at the Indemnifying Party's own cost and expense, then counsel for
the defense shall be selected by the Indemnifying Party (subject to the consent
of such Indemnified Party which consent shall not be unreasonably withheld) and
such Indemnifying Party shall not be required to make any payment to the
Indemnified Party with respect to such claim, liability or expense as long as
the Indemnifying Party is conducting a good faith and diligent defense at its
own expense; provided, however, that the assumption of defense of any such
matters by the Indemnifying Party shall relate solely to the claim, liability or
expense that is subject or potentially subject to

                                      -28-
<PAGE>

indemnification. If the Indemnifying Party assumes such defense in accordance
with the preceding sentence, it shall have the right, with the consent of such
Indemnified Party, which consent shall not be unreasonably withheld, to settle
all indemnifiable matters related to claims by third parties which are
susceptible to being settled provided the Indemnifying Party's obligation to
indemnify such Indemnified Party therefor will be fully satisfied only by
payment of money by the Indemnifying Party pursuant to a settlement which
includes a complete release of such Indemnified Party. The Indemnifying Party
shall keep such Indemnified Party apprised of the status of the claim, liability
or expense and any resulting suit, proceeding or enforcement action, shall
furnish such Indemnified Party with all documents and information that such
Indemnified Party shall reasonably request and shall consult with such
Indemnified Party prior to acting on major matters, including settlement
discussions. Notwithstanding anything herein stated, such Indemnified Party
shall at all times have the right to fully participate in such defense at its
own expense directly or through counsel; provided, however, if the named parties
to the action or proceeding include both the Indemnifying Party and the
Indemnified Party and representation of both parties by the same counsel would
be inappropriate under applicable standards of professional conduct, the
reasonable expense of separate counsel for such Indemnified Party shall be paid
by the Indemnifying Party provided that such Indemnifying Party shall be
obligated to pay for only one counsel for the Indemnified Party in any
jurisdiction. If no such notice of intent to dispute and defend is given by the
Indemnifying Party, or if such diligent good faith defense is not being or
ceases to be conducted, such Indemnified Party may undertake the defense of
(with counsel selected by such Indemnified Party), and shall have the right to
compromise or settle, such claim, liability or expense (exercising reasonable
business judgment) with the consent of the Indemnifying Party, which consent
shall not be unreasonably withheld. If such claim, liability or expense is one
that by its nature cannot be defended solely by the Indemnifying Party, then
such Indemnified Party shall make available all information and assistance that
the Indemnifying Party may reasonably request and shall cooperate with the
Indemnifying Party in such defense.

            For purposes of this Section 5.4 "Indemnifying Party" shall refer to
the Stockholder Party for indemnification under Section 5.1(a) and the Investor
Party for indemnification under Section 5.2(b). "Indemnified Party" shall refer
to the Investor Party for indemnification under Section 5.2(a) and the
Stockholder Party for indemnification under Section 5.2(b).

      5.5 LIMITATION ON CONTRIBUTION AND CERTAIN OTHER RIGHTS. The Company and
the Stockholders hereby agree that if, following the Closing, any claim is made
by any Stockholder, or otherwise becomes due from any Stockholder, pursuant to
Section 5.2 in respect of any Losses (a "LOSS PAYMENT"), such Stockholders shall
have no rights against the Company, or any director, officer or employee thereof
(in their capacity as such), whether by reason of contribution, indemnification,
subrogation or otherwise, in respect of any such Loss Payment, and shall not
take any action against the Company or any such person with respect thereto;
provided, however, that the foregoing limitation shall not apply to any claim
against the Company's directors, officers or employees for fraud.

                                      -29-
<PAGE>

SECTION 6. GENERAL

      6.1 WAIVERS AND CONSENTS; AMENDMENTS.

            (a) For the purposes of this Agreement and all agreements, documents
and instruments executed pursuant hereto, no course of dealing between or among
any of the parties hereto and no delay on the part of any party hereto in
exercising any rights hereunder or thereunder shall operate as a waiver of the
rights hereof and thereof. No covenant or provision hereof may be waived
otherwise than by a written instrument signed by the party or parties so waiving
such covenant or other provision as contemplated herein.

            (b) No amendment to this Agreement may be made without the written
consent of the Company and holders of a majority in interest of the outstanding
Securities (a "MAJORITY INTEREST"); provided that no amendment may be made to
Sections 1.3, 2, 4.6, or 5 hereof or this Section 6.1(b) without the written
consent of the holders of a majority in interest of the outstanding Common Stock
held by the Stockholders; and provided further that no amendment that by its
terms disproportionately and adversely affects any party hereto to may be made
without the written consent of that party.

            (c) Any actions required to be taken with respect to consents,
approvals or waivers required or contemplated to be given by the Investors
hereunder shall require a vote of Investors holding a Majority Interest, and any
such action by such Majority Interest shall bind all of the Investors.

      6.2 LEGEND ON SECURITIES. The Company and the Investors acknowledge and
agree that the following legend shall be typed on each certificate evidencing
any of the securities issued hereunder held at any time by the Investors:

      THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND
MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT
(1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH
IS EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM
REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES AND (3) IN
ACCORDANCE WITH APPLICABLE STATE SECURITIES AND BLUE SKY LAWS.

      6.3 GOVERNING LAW. This Agreement shall be deemed to be a contract made
under, and shall be construed in accordance with, the laws of Illinois, without
giving effect to conflict of laws principles thereof.

      6.4 SECTION HEADINGS; CONSTRUCTION. The descriptive headings in this
Agreement have been inserted for convenience only and shall not be deemed to
limit or otherwise affect the construction of any provision thereof or hereof.
The use in this Agreement of the masculine pronoun in reference to a party
hereto shall be deemed to include the feminine or neuter, and vice versa, as the
context may require. The parties have participated jointly in the negotiation
and

                                      -30-
<PAGE>

drafting of this Agreement and the other agreements, documents and instruments
executed and delivered in connection herewith with counsel sophisticated in
investment transactions. In the event an ambiguity or question of intent or
interpretation arises, this Agreement and the agreements, documents and
instruments executed and delivered in connection herewith shall be construed as
if drafted jointly by the parties and no presumption or burden of proof shall
arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement and the agreements, documents and instruments
executed and delivered in connection herewith.

      6.5 COUNTERPARTS. This Agreement may be executed simultaneously in any
number of counterparts, each of which when so executed and delivered shall be
taken to be an original; but such counterparts shall together constitute but one
and the same document.

      6.6 NOTICES AND DEMANDS. Any notice or demand which is required or
provided to be given under this Agreement shall be deemed to have been
sufficiently given and received for all purposes when delivered in writing by
hand, telecopy, telex or other method of facsimile, or five (5) days after being
sent by certified or registered mail, postage and charges prepaid, return
receipt requested, or two (2) days after being sent by overnight delivery
providing receipt of delivery, to the following addresses: if to the Company or
the Stockholders, Eagle Test Systems, 620 S. Butterfield Road, Mundelein, IL
60060-4483, Attention: Len Foxman and Ted Foxman, Facsimile: (847) 367-8640, or
at any other address designated by the Company, to the Investors and the other
parties hereto in writing; if to the Investors, TA Associates, Inc., 125 High
Street, Suite 2500, Boston, MA 02110, Attention Michael C. Child and Jameson J.
McJunkin, Facsimile: (617) 574-6728, or at any other address designated by the
Investors to the Company in writing.

      6.7 DISPUTE RESOLUTION

            (a) All disputes, claims, or controversies arising out of or
relating to (i) this Agreement, the Stockholders' Agreement, the Registration
Rights Agreement, or any other agreement executed and delivered pursuant to this
Agreement or the negotiation, breach, validity or performance hereof and thereof
or the transactions contemplated hereby and thereby, (ii) the rights of the
Investors and their successors and the obligations of the Company set forth in
the Articles of Incorporation or (iii) the Investors' ongoing investment in the
Company, that are not resolved by mutual agreement shall be resolved solely and
exclusively by binding arbitration to be conducted before J.A.M.S./Endispute,
Inc. in Chicago, Illinois before a single arbitrator (the "ARBITRATOR"). The
parties understand and agree that this arbitration shall apply equally to claims
of fraud or fraud in the inducement.

            (b) The parties covenant and agree that the arbitration shall
commence within one hundred and eighty (180) days of the date on which a written
demand for arbitration is filed by any party hereto (the "FILING DATE"). In
connection with the arbitration proceeding, the Arbitrator shall have the power
to order the production of documents by each party and any third-party
witnesses. In addition, each party may take up to three depositions as of right,
and the Arbitrator may in his or her discretion allow additional depositions
upon good cause shown by the moving party. However, the Arbitrator shall not
have the power to order the answering of interrogatories or the response to
requests for admission. In connection with any arbitration, each party shall
provide to the other, no later than seven (7) business days before the date of
the

                                      -31-
<PAGE>

arbitration, the identity of all persons that may testify at the arbitration and
a copy of all documents that may be introduced at the arbitration or considered
or used by a party's witnesses or experts. The Arbitrator's decision and award
shall be made and delivered within two hundred and forty (240) days of the
Filing Date. The Arbitrator's decision shall set forth a reasoned basis for any
award of damages or finding of liability. The Arbitrator shall not have power to
award damages in excess of actual compensatory damages and shall not multiply
actual damages or award punitive damages or any other damages that are
specifically excluded under this Agreement, and each party hereby irrevocably
waives any claim to such damages.

            (c) The parties covenant and agree that they will participate in the
arbitration in good faith and that they will, except as provided in Section 5.2
of this Agreement, (i) bear their own attorneys' fees, costs and expenses in
connection with the arbitration, and (ii) share equally in the fees and expenses
charged by the Arbitrator. Any party unsuccessfully refusing to comply with an
order of the Arbitrators shall be liable for costs and expenses, including
attorneys' fees, incurred by the other party in enforcing the award. This
Section 6.7 applies equally to requests for temporary, preliminary or permanent
injunctive relief, except that in the case of temporary or preliminary
injunctive relief any party may proceed in court without prior arbitration for
the purpose of avoiding immediate and irreparable harm or to enforce its rights
under any non-competition covenants.

      6.8 CONSENT TO JURISDICTION. Except as provided in Section 6.7(c) and 6.9,
each of the parties hereto irrevocably and unconditionally consents to the
jurisdiction of J.A.M.S./Endispute, Inc. to resolve all disputes, claims or
controversies arising out of or relating to (i) this Agreement, the
Stockholders' Agreement, the Registration Rights Agreement or any other
agreement executed and delivered pursuant to this Agreement or the negotiation,
breach, validity or performance hereof and thereof or the transactions
contemplated hereby and thereby, (ii) the rights of the Investors and their
successors and the obligations of the Company set forth in the Articles of
Incorporation or (iii) the Investors' ongoing investment in the Company, and
further consents to the sole and exclusive jurisdiction of the courts of
Illinois and California for the purposes of enforcing the arbitration provisions
of Section 6.7 of this Agreement. Each party further irrevocably waives any
objection to proceeding before the Arbitrator based upon lack of personal
jurisdiction or to the laying of venue and further irrevocably and
unconditionally waives and agrees not to make a claim in any court that
arbitration before the Arbitrator has been brought in an inconvenient forum.
Each of the parties hereto hereby consents to service of process by registered
mail at the address to which notices are to be given. Each of the parties hereto
agrees that its or his submission to jurisdiction and its or his consent to
service of process by mail is made for the express benefit of the other parties
hereto.

      6.9 REMEDIES; SEVERABILITY. Notwithstanding Sections 6.7 and 6.8 above, it
is specifically understood and agreed that any breach of the provisions of this
Agreement, the Stockholders' Agreement, the Registration Rights Agreement, or
any other agreement executed and delivered pursuant to this Agreement, or of the
provisions of the Articles of Incorporation, by any person subject hereto will
result in irreparable injury to the other parties hereto, that the remedy at law
alone will be an inadequate remedy for such breach, and that, in addition to any
other remedies which they may have, such other parties may enforce their
respective rights by actions for specific performance (to the extent permitted
by law). Whenever possible, each

                                      -32-
<PAGE>

provision of this Agreement shall be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision of this Agreement
shall be deemed prohibited or invalid under such applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, and such
prohibition or invalidity shall not invalidate the remainder of such provision
or the other provisions of this Agreement.

      6.10 INTEGRATION. This Agreement, including the exhibits, documents and
instruments referred to herein or therein constitute the entire agreement, and
supersede all other prior agreements and understandings, both written and oral,
among the parties with respect to the subject matter hereof and thereof,
including, without limitation, the provisions of the letter of intent between
the parties hereto in respect of the transactions contemplated herein, which
provisions of the letter of intent shall be completely superseded by the
representations, warranties, covenants and agreements of the Company contained
herein.

      6.11 ASSIGNABILITY; BINDING AGREEMENT. Each Investor may assign any or all
of its rights hereunder to any transferee of its shares. This Agreement may not
otherwise be assigned by any party hereto without the prior written consent of
each other party hereto. This Agreement (including, without limitation, the
provisions of Section 5) shall be binding upon and enforceable by, and shall
inure to the benefit of, the parties hereto and their respective successors,
heirs, executors, administrators and permitted assigns, and no others.
Notwithstanding the foregoing and except as provided in Section 5.3 hereof,
nothing in this Agreement is intended to give any Person not named herein the
benefit of any legal or equitable right, remedy or claim under this Agreement,
except as expressly provided herein.

      6.12 RELEASE.

            (a) For and in consideration of the amount to be paid to each
Stockholder under this Agreement, and the additional covenants and promises set
forth in this Agreement, each Stockholder, on behalf of itself and its assigns,
heirs, beneficiaries, creditors, representatives, agents and affiliates (the
"Releasing Parties"), hereby fully, finally and irrevocably releases, acquits
and forever discharges the Company, and each of the Investors, and the officers,
directors, partners, general partners, limited partners, managing directors,
members, stockholders, trustees, shareholders, representatives, employees,
principals, agents, Affiliates, parents, subsidiaries, joint ventures,
predecessors, successors, assigns, beneficiaries, heirs, executors, personal or
legal representatives, insurers and attorneys of any of them, including without
limitation Michael C. Child and Jameson J. McJunkin (collectively, the "Released
Parties") from any and all commitments, actions, debts, claims, counterclaims,
suits, causes of action, damages, demands, liabilities, obligations, costs,
expenses, and compensation of every kind and nature whatsoever, at law or in
equity, whether known or unknown, contingent or otherwise, that such Releasing
Parties, or any of them, had, has, or may have had at any time in the past until
and including the date of this Agreement based on events or occurrences through
the date of this Agreement against the Released Parties, or any of them,
including but not limited to any claims that relate to or arise out of such
Releasing Party's prior relationship with the Company or its rights or status as
a shareholder, officer or director of the Company (collectively, for the
purposes of this Section 6.12, "Causes of Action"). In executing this Agreement,
each Stockholder acknowledges that it has been informed that the Company and/or
its Subsidiaries may from time to time enter into agreements for additional
types of financing, including without

                                      -33-
<PAGE>

limitation recapitalizations, mergers and initial public offerings of capital
stock of the Company and/or its Subsidiaries, and also may pursue acquisitions
or enter into agreements for the sale of the Company and/or its Subsidiaries or
all or a portion of the Company's or its Subsidiaries' assets, which may result
in or reflect an increase in equity value or enterprise value.

            (b) Each Stockholder hereby represents to the Released Parties that
such Stockholder (i) has not assigned any Causes of Action or possible Causes of
Action against any Released Party, (ii) fully intends to release all Causes of
Action against the Released Parties including, without limitation, unknown and
contingent Causes of Action (other than those specifically reserved above), and
(iii) has consulted with counsel with respect to the execution and delivery of
this general release and has been fully apprised of the consequences hereof.
Furthermore, each Stockholder further agrees not to institute any litigation,
lawsuit, claim or action against any Released Party with respect to the released
Causes of Action.

            (c) Each Stockholder hereby represents and warrants that it has
access to adequate information regarding the terms of this Agreement, the scope
and effect of the releases set forth herein, and all other matters encompassed
by this Agreement to make an informed and knowledgeable decision with regard to
entering into this Agreement. The Stockholder further represents and warrants
that it has not relied upon the Company, the Investors or the Released Parties
in deciding to enter into this Agreement and has instead made its own
independent analysis and decision to enter into this Agreement.

      6.13 CONFIDENTIALITY. Notwithstanding anything herein or any other express
or implied agreement, arrangement or understanding to the contrary, the parties
acknowledge and agree that (i) any obligations of confidentiality contained
herein and therein do not apply and have not applied from the commencement of
discussions between the parties to the tax treatment and tax structure of the
transactions contemplated by this Agreement (and any related transactions or
agreements) and (ii) each party to this Agreement (and each of its employees,
representatives or other agents) may disclose to any and all persons, without
limitation of any kind, the tax treatment and tax structure of the transactions
contemplated by this Agreement and all materials of any kind (including opinions
or other tax analyses) that are provided to it relating to such tax treatment
and tax structure. This authorization to disclose the tax treatment and tax
structure is limited to the extent that confidentiality is required to comply
with any applicable securities laws.

      6.14 EXPENSES. The Company and the Stockholders shall each be responsible
for fifty percent (50%) of all (i) broker and banker fees incurred by the
Stockholders and the Company in connection with transactions contemplated by
this Agreement and (ii) the reasonable costs and expenses (including, but not
limited to, accounting and legal fees and disbursements and other out of pocket
expenses) incurred by the Investors, the Stockholders and the Company in
connection with the preparation, negotiation, execution and delivery of this
Agreement, all other transaction documents contemplated hereby, and the
transactions contemplated hereby and thereby.

      6.15 CERTAIN DEFINITIONS. For purposes of this Agreement, the term:

                                      -34-
<PAGE>

            (a) "AFFILIATE" of a Person shall mean (i) with respect to a Person,
any member of such Person's family (including any child, step-child, parent,
step-parent, spouse, sibling, mother-in-law, father-in-law, son-in-law,
daughter-in-law, brother-in-law or sister-in-law); (ii) with respect to an
entity, any officer, director, stockholder, partner or investor in such entity
or of or in any affiliate of such entity; and (iii) with respect to a Person or
entity, any Person or entity which directly or indirectly controls, is
controlled by, or is under common control with such Person or entity;

            (b) "CONTROL" (including the terms "controlled by" and "under common
control with") means the possession, directly or indirectly, or as trustee or
executor, of the power to direct or cause the direction of the management
policies of a Person, whether through the ownership of stock, as trustee or
executor, by contract or credit arrangement or otherwise;

            (c) "PERSON" means an individual, corporation, partnership,
association, trust, any unincorporated organization or any other entity; and

            (d) "SUBSIDIARY" of a Person means any corporation more than fifty
(50%) percent of whose outstanding voting securities, or any partnership,
limited liability company joint venture or other entity more than fifty percent
(50%) of whose total equity interest, is directly or indirectly owned by such
Person.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -35-
<PAGE>

      IN WITNESS WHEREOF, the parties have executed this Agreement or have
caused this Agreement to be duly executed and delivered by their proper and duly
authorized officers as of the day and year first above written.

                                               THE COMPANY:

                                               EAGLE TEST SYSTEMS, INC.

                                               By: /s/ Leonard Foxman
                                                  ------------------------------
                                               Name: Leonard Foxman
                                               Title: President

                [SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT]
<PAGE>

                                               LEONARD FOXMAN

                                               By: /s/ Leonard Foxman
                                                  ------------------------------
                                               Leonard Foxman

                                               FOXMAN FAMILY, LLC

                                               By: /s/ Leonard Foxman
                                                  ------------------------------
                                                  Leonard Foxman

                                               Its: Manager

                                               EAGLE TEST SYSTEMS, INC.
                                               EMPLOYEE STOCK OWNERSHIP PLAN

                                               By: /s/ Leonard Foxman
                                                  ------------------------------
                                                  Leonard Foxman, not in his
                                                  individual capacity or in his
                                                  capacity as shareholder,
                                                  director or officer of the
                                                  Corporation, but solely as
                                                  trustee of the Eagle Test
                                                  Systems Employee Stock
                                                  Ownership Plan

                                               JACK WEIMER

                                               By: /s/ Jack Weimer
                                                  ------------------------------
                                                   Jack Weimer

                                               STEVE DOLLENS

                                               By: /s/ Steve Dollens
                                                  ------------------------------
                                                   Steve Dollens

<PAGE>

                                       INVESTORS:

                                       TA IX L.P.
                                       By: TA Associates IX LLC, its General
                                           Partner
                                       By: TA Associates, Inc., its Manager

                                       By: /s/ Michael C. Child
                                          --------------------------------------
                                       Name: Michael C. Child
                                       Its: Managing Director

                                       TA/ATLANTIC AND PACIFIC IV L.P.
                                       By: TA Associates AP IV L.P., its General
                                           Partner
                                       By: TA Associates, Inc., its General
                                           Partner

                                       By: /s/ Michael C. Child
                                          --------------------------------------
                                       Name: Michael C. Child
                                       Its:  Managing Director

                                       TA STRATEGIC PARTNERS FUND A L.P.
                                       By: TA Associates SPF L.P., its General
                                           Partner
                                       By: TA Associates, Inc., its General
                                           Partner

                                       By: /s/ Michael C. Child
                                          --------------------------------------
                                       Name: Michael C. Child
                                       Its:  Managing Director

<PAGE>

                                       TA STRATEGIC PARTNERS FUND B L.P.
                                       By: TA Associates SPF L.P., its General
                                           Partner
                                       By: TA Associates, Inc., its General
                                           Partner

                                       By: /s/ Michael C. Child
                                          --------------------------------------
                                       Name: Michael C. Child
                                       Its:  Managing Director

                                       TA INVESTORS LLC
                                       By: TA Associates, Inc., its Manager

                                       By: /s/ Michael C. Child
                                          --------------------------------------
                                       Name: Michael C. Child
                                       Its:  Managing Director

                                       TA SUBORDINATED DEBT FUND, L.P.
                                       By: TA Associates SDF LLC, its General
                                           Partner
                                       By: TA Associates, Inc., its Manager

                                       By: /s/ Michael C. Child
                                          --------------------------------------
                                       Name: Michael C. Child
                                       Its:  Managing Director

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