Document:

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                                                                  Exhibit 10.40a

                            ASSET PURCHASE AGREEMENT

                                      AMONG

                            AIRLINE INTERIORS, INC.,

                  SIMULA TRANSPORTATION EQUIPMENT CORPORATION,

                                       AND

                                  SIMULA, INC.

                               AS SELLING PARTIES

                                       AND

                              WEBER AIRCRAFT, INC.

                                  AS PURCHASER
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                            ASSET PURCHASE AGREEMENT

         This ASSET PURCHASE AGREEMENT (the "Agreement") is executed as of this
24th day of December, 1999, by and among AIRLINE INTERIORS, INC., an Arizona
corporation ("Seller"), SIMULA TRANSPORTATION EQUIPMENT CORPORATION, an Arizona
corporation ("Simtec"), and SIMULA, INC., an Arizona corporation ("Simula"), and
WEBER AIRCRAFT, INC., a Delaware corporation ("Purchaser"), with reference to
the facts set forth in the Preliminary Statements below.

                             PRELIMINARY STATEMENTS

         A. Simula is the sole shareholder of Simtec, which is in turn the sole
shareholder of Seller.

         B. Simula and Simtec may sometimes be hereafter collectively referred
to as the "Shareholder." Seller and Shareholder may sometimes be hereafter
collectively referred to as the "Selling Parties."

         C. Seller owns and operates a business involving the design,
manufacture, and sale of new commercial aircraft passenger seats. Seller
conducts this business in Poway, California.

         D. Seller desires to sell Purchaser certain assets used in such
business of Seller.

         E. In connection with the subject transaction, Purchaser will buy
certain assets of Seller and assume certain liabilities of Seller, all as more
fully provided below in this Agreement.

         F. The parties are executing this Agreement in order to memorialize
their understanding concerning said transaction.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the above Preliminary Statements
and the mutual covenants of the parties set forth below in this Agreement, the
parties hereby agree as follows:

                                    ARTICLE 0
                       KEY BUSINESS TERMS AND DEFINITIONS

         0.1      KEY BUSINESS TERMS.

                  (a)      PURCHASE PRICE. The Purchase Price shall be a
         variable amount, consisting of the Cash Payment (as defined below) and
         the assumption of the Assumed Liabilities (as defined below). The
         amount of the Cash Payment shall be determined as provided in Section
         1.2(d) below.
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The amount of the Assumed Liabilities shall be determined effective as of the
Closing, as provided in Section 0.3(m) below.

         (b)      INITIAL DEPOSIT. $2,000,000. See Section 1.6 below.

         (c)      EFFECTIVE DATE. December 31, 1999. See Section 1.10 below.

         (d)      BALANCE SHEET CUT-OFF DATE. Seven (7) days before the Target
 Closing Date. See Section 0.3(tt) below.

         (e)      TARGET CLOSING DATE. January 25, 2000. See Section 1.6(a)
 below.

         (f)      CLOSING DEADLINE: February 29, 2000. See Section 0.3(o) below.

         (g)      INDEMNITY CAP. $1,500,000. See Section 8.6(b) below.

         (h)      INDEMNITY PERIOD. An eighteen (18) month period which is more
precisely defined in Section 0.3(cc). See Section 8.6(b) below.

         (i)      ACCOUNTING STANDARDS. Except as may be otherwise expressly
provided in this Agreement, all financial and accounting information delivered
to Purchaser by Selling Parties or to be prepared by Seller pursuant to this
Agreement, including without limitation Seller's Financial Statements (as
defined below) shall be prepared in accordance with generally accepted
accounting principles ("GAAP") in the United States, consistently applied. It is
agreed that it will not be necessary to reiterate this principle elsewhere in
this Agreement. The only permitted exceptions to or deviations from GAAP are
expressly noted below.

         0.2 DEFINED TERMS GENERALLY. Terms used in this Agreement which begin
with initial capital letters are defined terms which shall have the meanings
ascribed to them in the Preliminary Statements above, in Section 0.3 below, or
elsewhere in this Agreement

         0.3      LISTING OF CERTAIN DEFINED TERMS. Terms defined in this
Section 0.3 are as follows:

                  (a) ACCOUNTS RECEIVABLE. The term "Accounts Receivable" shall
have the meaning given it in Section 1.1(a) below.

                  (b) AGREED INVENTORY VALUE. The term "Agreed Inventory Value"
shall mean the value of the Included Inventory to be used in calculating
Seller's Adjusted Net Worth. The initial amount of the Agreed Inventory Value
shall be mutually agreed upon by Purchaser and Seller on or before the Balance
Sheet Cut-Off Date. The final amount of the Agreed Inventory Value shall be
determined as part of the Post-Closing Accounting Adjustments. The Agreed
Inventory Value shall be determined in accordance with the procedures set forth
in the Inventory Valuation Methodology attached hereto as Exhibit "B" and the
Inventory Reserve Methodology attached hereto as Exhibit "C." The Agreed
Inventory Value (net of any inventory reserve established pursuant to

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Paragraph C of Exhibit "C") shall be inserted on line 6 of the Pre-Closing
Balance Sheet; provided, however, that the aggregate amount of the inventory
reserve computed pursuant to Paragraph 2 of Exhibit "C" shall not exceed thirty
percent (30%).

         (c)      AGREED OFFSETS. The term "Agreed Offsets" shall have the
meaning given it in Section 0.3(nn)(3) below.

         (d)      ASSETS. The term "Assets" shall mean all the assets of Seller,
whether used in the Business or other businesses of Seller. The Assets consist
of the Included Assets and the Excluded Assets. Purchaser is purchasing only the
Included Assets.

         (e)      ASSUMED LIABILITIES.

                  (1) The term "Assumed Liabilities" shall mean the stated
liabilities of Seller with respect to the Business to be assumed by Purchaser
effective as of the Closing. As of the date of this Agreement, the nature and
amount of the liabilities to be included in the Assumed Liabilities are not
known. The parties will make a good faith estimate of the Assumed Liabilities as
of the Balance Sheet Cut-Off Date. The Assumed Liabilities shall only consist of
the specific contractual obligations of Seller to be assumed pursuant to the
Assignment and Assumption Agreement, i.e., (i) certain Vendor Contracts, (ii)
certain Customer Contracts, (iii) certain Equipment Leases (whether operating or
capital leases), and (iv) such other obligations and commitments of Seller as
shall be specified in the Assignment and Assumption Agreement at the Closing.
The Assumed Liabilities will be listed on Schedule 0.3(e). Purchaser and Selling
Parties shall amend this Agreement to reflect their agreement on the items to be
listed on Schedule 0.3(e) before the Balance Sheet Cut-Off Date.

                  (2) Subject to adjustments to reflect the Post-Closing
Accounting Adjustments, the aggregate amount of the Assumed Liabilities shall
not exceed the sum of the following items listed on the Pre-Closing Balance
Sheet: (i) Seller's trade accounts payable (line 14 on the Pre-Closing Balance
Sheet), (ii) certain of Seller's other accrued liabilities for items approved by
Purchaser (line 15 on the Pre-Closing Balance Sheet); and (iii) certain
inter-company trade payables (the "Simula Payables") in an amount not to exceed
$2,432,000 owing by Seller to Simula Composites Corporation and Simula
Technologies, Inc. for services and materials provided with respect to the
Products (line 16 on the Pre-Closing Balance Sheet). The estimated amount (as of
December 21, 1999) of each such balance sheet entry to be included as part of
the Assumed Liabilities is shown on the Pro Forma Closing Date Balance Sheet
attached hereto as Exhibit "A."

         (f)      BALANCE SHEET CUT-OFF DATE. The term "Balance Sheet Cut-Off
Date" shall mean the date as of which the Pre-Closing Balance Sheet shall be
prepared. The Balance Sheet Cut-Off Date shall be as specified in Section 0.1(d)
above.

         (g)      BEST KNOWLEDGE OF SELLER'S RESPONSIBLE EMPLOYEES. The term
"Best Knowledge of Seller's Responsible Employees" shall mean the knowledge of
Seller's Responsible Employees after (1) due inquiry of Seller's employees,
officers, and directors and (2) a review of Seller's books, records and files.

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         (h)      Best Knowledge of Selling Parties. The term "Best Knowledge of
Selling Parties" shall mean the Best Knowledge of Shareholder's Corporate
Management and the Best Knowledge of Seller's Responsible Employees,
collectively.

         (i)      Best Knowledge of Shareholder's Corporate Management. The term
"Best Knowledge of Shareholder's Corporate Management" shall mean the knowledge
of the following officers of Simula: Donald W. Townsend, Bradley P. Forst, James
A. Saunders, and James C. Dodd after due inquiry of Selling Parties' employees,
officers and directors.

         (j)      Books and Records. The term "Books and Records" shall have the
meaning given it in Section 1.1(b) below.

         (k)      Business. The term "Business" shall mean the business
conducted by Seller in the Poway Facility involving the design, manufacture and
sale of the Products.

         (l)      Cash Payment. The term "Cash Payment" shall mean the cash
portion of the Purchase Price payable to Seller by Purchaser for the Included
Assets. The amount of the Cash Payment is a variable amount equal to (1) the sum
of (i) Seller's Adjusted Net Worth determined effective as of the Closing and
(ii) goodwill in the amount of Six Million Five Hundred Thousand Dollars
($6,500,000), (2) reduced by the outstanding principal balance of the Operating
Loan as of the Closing. The amount of the Cash Payment shall be determined as of
the Closing as provided in Section 1.2 below. To illustrate, assuming that
Seller's Adjusted Net Worth as shown on the Pre-Closing Balance Sheet is Six
Million Five Hundred Thousand Dollars ($6,500,000), and the principal balance of
the Operating Loan is One Million Dollars ($1,000,000), the Cash Payment would
be equal to Twelve Million Dollars ($12,000,000). It is understood that the
actual amount of the Cash Payment payable at the Closing will be based on the
amount of Seller's Adjusted Net Worth determined on the basis of the Pre-Closing
Balance Sheet and will be adjusted by the Post-Closing Accounting Adjustments.

         (m)      Closing. The term "Closing" shall have the meaning given it in
Section 1.6(a) below.

         (n)      Closing Date. The term "Closing Date" shall mean the date on
which the Closing occurs.

         (o)      Closing Deadline. The term "Closing Deadline" shall mean the
last date by which the Closing may occur. The Closing Deadline may be extended
by mutual agreement of the parties or as provided in this Agreement. As of the
date of this Agreement, the Closing Deadline is as specified in Section 0.1(f)
above.

         (p)      Closing Documents. The term "Closing Documents" shall mean and
include:

                  (1)      Assignment and Assumption Agreement (Exhibit "D");

                  (2)      Assignment of Intellectual Property (Exhibit "J");

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                  (3)      Bill of Sale (Exhibit "E");

                  (4)      Consents to the assignment of the Customer's
Contracts pursuant to Section 2.12 below;

                  (5)      Asset Acquisition Statement (IRS Form 8594); and

                  (6)      Patent License Agreement (Exhibit "H").

         (q)      Code. The term "Code" shall mean the Internal Revenue Code of
 1986, as amended.

         (r)      Equipment Leases. The term "Equipment Leases"shall have the
 meaning given it in Section 1.1(d) below.

         (s)      Escrow. The term "Escrow" shall mean the escrow to be opened
with Escrowholder pursuant to Section 1.9 below for the purpose of holding the
Initial Deposit and the Closing Documents pending the Closing.

         (t)      Escrowholder. The term "Escrowholder" shall mean BankOne,
N.A., Columbus, Ohio.

         (u)      Excluded Assets. The term "Excluded Assets" shall mean those
Assets of Seller which are not being purchased by Purchaser, as listed on
Schedule 0.3(u).

         (v)      Excluded liabilities. The term "Excluded Liabilities" shall
mean all liabilities of Seller which are not being specifically assumed by
Purchaser as part of the Assumed Liabilities. As noted above, as of the date of
this Agreement, Purchaser does not yet know the exact nature or amount of the
Excluded Liabilities. The Excluded Liabilities shall consist of those
liabilities of Seller to be listed on Schedule 0.3(v) and all other liabilities
of Seller (whether stated or unstated or whether arising out of the Business or
otherwise) which are not part of the Assumed Liabilities to be listed on
Schedule 0.3(e). Schedule 0.3(v) will be prepared at the same time as Schedule
0.3(e).

         (w)      Funding agreement. The term "Funding Agreement" shall mean
that certain Funding Agreement to be entered into by Purchaser and Selling
Parties pursuant to Section 1.11 below.

         (x)      Governmental Airworthiness Approvals. The term "Governmental
Airworthiness Approvals" shall have the meaning given it in Section 1.1(e)
below.

         (y)      HSR Act. The term "HSR Act" shall mean the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended.

         (z)      Included Assets. The term "Included Assets"shall mean those
Assets being

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purchased by Purchaser pursuant to this Agreement. Generally, the Included
Assets are listed in Sections 1.1(a)-(n) below. However, Purchaser reserves the
right to purchase less than all of the following items listed in Section 1.1 as
being part of the Included Assets: Software Licenses, Supplies, Tangible
Personal Property and Vendor Contracts. At least five (5) business days before
the Balance Sheet Cut-Off Date, Purchaser shall give Selling Parties written
notice of the actual identification and/or quantity of such items which
Purchaser desires to purchase. Upon receipt of such notice from Purchaser,
Purchaser and Selling Parties shall amend the schedules to this Agreement that
may be affected by Purchaser's decisions and adjust the Pre-Closing Balance
Sheet appropriately.

         (aa)     Included Inventories. The term "Included Inventories" shall
have the meaning given it in Section 1.1(f) below.

         (bb)     Indemnity Cap. The term "Indemnity Cap" shall mean the maximum
amount which either Selling Parties or Purchaser is obligated to indemnify the
other under Article 8 below. The amount of the Indemnity Cap is specified in
Section 0.1(g) above.

         (cc)     Indemnity Period. The term "Indemnity Period" shall mean an
eighteen (18) month period beginning on the Closing Date and ending on the last
day of the calendar month in which falls the 18th month anniversary of the
Closing. See Section 8.6(b) below.

         (dd)     Intellectual Property. The term "Intellectual Property"shall
have the meaning given it in Section 1.1(g) below.

         (ee)     Manufacturers' Warranties. The term "Manufacturers'
Warranties"shall have the meaning given it in Section 1.1(h) below.

         (ff)     Operating Loan. The term "Operating Loan" shall mean that
certain loan to be made before the Closing by Purchaser to Seller pursuant to
the Funding Agreement and as provided in Section 1.11 below.

         (gg)     Post-Closing Accounting Adjustments. The term "Post-Closing
Accounting Adjustments" shall have the meaning given it in Section 0.3(hh)(2)
below.

         (hh)     Pre-Closing Balance Sheet.

                  (1)      The term "Pre-Closing Balance Sheet" shall mean a
preliminary balance sheet for the Business prepared as of the Balance Sheet
Cut-Off Date by Seller and approved by Purchaser pursuant to Section 1.2(c)
below. The Pre-Closing Balance Sheet shall be prepared in substantially the same
format as the Pro Forma Closing Date Balance Sheet attached hereto as Exhibit
"A." The parties shall agree on the methodology by which the items to be
included as part of the Included Assets shall be reflected on the Pre-Closing
Balance Sheet before the Balance Sheet Cut-Off Date.

                  (2)      It is understood that the Pre-Closing Balance Sheet
may not accurately

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reflect the actual financial condition of Seller on the Closing, because it will
not be possible to make all necessary accounting entries and adjustments (the
"Post-Closing Accounting Adjustments") to properly close Seller's accounting
books effective as of the Closing until some time thereafter. Accordingly, it is
agreed that the parties shall make the Post-Closing Accounting Adjustments as
provided in Section 7.16 below.

         (ii)     POST-CLOSING DOCUMENTS. The term "Post-Closing Documents"
shall mean the Transition Support Agreement (Exhibit "I"), Non- Competition
Agreement (Exhibit "F"), and any other documents which the parties may be
required to execute after the Closing in order to fulfill their obligations
under Article 7 below.

         (jj)     POWAY FACILITY. The term "Poway Facility" shall mean the
industrial building leased by Seller in which the Business is conducted. The
Poway Facility is located at 12325 Kerran Street, Poway, California 92064.

         (kk)     PRODUCTS. The term "Products" shall mean the new commercial
aircraft passenger seats designed, manufactured and sold by Seller as part of
the Business. The Products are identified by Seller as Model Nos. AI-1000
(economy-class seats) and AI-2000 (business-class and first-class seats).

         (ll)     PRO FORMA CLOSING DATE BALANCE SHEET. The term "Pro Forma
Closing Date Balance Sheet" shall mean the pro forma or specimen balance sheet
for the Business which is attached hereto as Exhibit "A." The Pre-Closing
Balance Sheet shall be prepared in substantially the same format as the Pro
Forma Closing Date Balance Sheet.

         (mm)     PURCHASE PRICE. The term "Purchase Price" shall mean the
purchase price to be paid by Purchaser for the Included Assets. The Purchase
Price is a variable amount, as specified in Section 0.1(a) above. The Purchase
Price consists of the Cash Payment and the assumption of the Assumed
Liabilities. See also Section 1.2 below.

         (nn)     SELLER'S ADJUSTED NET WORTH.

                  (1)      The term "Seller's Adjusted Net Worth" shall be equal
to the difference between: (i) the net aggregate value of the Included Assets
and (ii) the sum of the Assumed Liabilities and the outstanding balance of the
Operating Loan as of the Closing. The parties' initial estimate of Seller's
Adjusted Net Worth shall be reflected on the Pre-Closing Balance Sheet. For
purposes of computing Seller's Adjusted Net Worth, the net aggregate value of
the Included Assets shall be equal to the difference between the Gross Asset
Value and the Agreed Offsets.

                  (2)      The "Gross Asset Value" shall be equal to the sum of
the following:

                           (i)     The Accounts Receivable, as shown on line 4
of the Pre-Closing Balance Sheet;

                           (ii)     An amount equal to the Agreed Inventory
Value, as shown on

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line 5 of the Pre-Closing Balance Sheet.

                                    (iii)    The book value of the items
historically included as part of Seller's "property and equipment" (but only to
extent same are part of the Included Assets), as shown on line 8 of the
Pre-Closing Balance Sheet but not less than $608,000; and

                                    (iv)     The value of the items which have
been historically included on Seller' balance sheets in the category of "other
assets" (but only to the extent same are part of the Included Assets), as shown
on line 10 of the Pre-Closing Balance Sheet.

                           (3)      The "Agreed Offsets" shall be equal to the
sum of (i) a warranty offset in the amount of One Million Seven Hundred
Twenty-One Thousand Nine Hundred Twelve Dollars ($1,721,912) and (ii) a
certification offset in the amount of Five Hundred Sixty Thousand Dollars
($560,000). The procedures to be followed in computing the Agreed Inventory
Value will reflect an inventory reserve computed in accordance with Exhibit "C."

                  (oo)     SELLER'S FINANCIAL STATEMENTS. The term "Seller's
Financial Statements" shall have the meaning given it in Section 2.13 below.

                  (pp)     SELLER'S RESPONSIBLE EMPLOYEES. The term "Seller's
Responsible Employees" shall mean and include: (1) the following employees of
the Selling Parties: Donald Rutter, Jim Bucci, Daniel W. Henke, Gary
Perschbacher, Thomas Nobles, and Mary Ann Brimhall, and (2) such other employees
as may be identified by employment position in the various sections of Article 2
below in which this defined term is used.

                  (qq)     SHARED USE PATENT. The term "Shared Use Patent" shall
mean that patent currently owned by Seller which is known as "16g load limiting
technology" and which is identified as U.S. Patent No. 5,730,492 on Schedule
1.1(g). The Shared Use Patent is part of the Intellectual Property to be
acquired by Purchaser as part of the Included Assets.

                  (rr)     SIMULA PAYABLES. The term "Simula Payables" shall
have the meaning given it in Section 0.3(e)(2) above.

                  (ss)     TANGIBLE PERSONAL PROPERTY. The term " Tangible
Personal Property" shall have the meaning given it in Section 1.1(l) below.

                  (tt) TARGET CLOSING DATE. The term "Target Closing Date" shall
mean the date on which the parties reasonably anticipate that the Closing will
occur. The Target Closing Date shall be as specified in Section 0.1(e) above.

                  (uu)     TOOLING. The term "Tooling" shall have the meaning
given it in Section 1.1(m) below.

                  (vv) TRANSITION PERIOD. The term "Transition Period" shall
mean a period of time following the Closing during which Purchaser will operate
in the Poway Facility pursuant to the

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Transition Support Agreement in order to prepare the Business for relocation to
Purchaser's manufacturing facility in Gainesville, Texas.

                                    ARTICLE 1
                           SALE AND TRANSFER OF ASSETS

         1.1      SALE OF INCLUDED ASSETS. Subject to all the terms and
conditions of this Agreement, at the Closing Seller hereby agrees to sell,
transfer, assign and deliver to Purchaser, and Purchaser hereby agrees to
purchase, all of Seller's right, title and interest in and to the Included
Assets. The Included Assets shall consist of the following:

                  (a)      ACCOUNTS RECEIVABLE. All accounts receivable and
other rights to receive payment (collectively, the "Accounts Receivable") under
the Customer Contracts or otherwise, as may arise in the normal course of
business and are in existence at the Closing and all deposits, prepayments,
bonds, and refunds, as listed on Schedule 1.1(a);

                  (b)      BOOKS AND RECORDS. All documents, customer files,
records, operating manuals, files and computer software which pertain to the
Business, whether printed or in electronic format, including without limitation
all procedure manuals, all vendor and supplier lists, customer lists, ledgers,
journals and general operational business and financial books and records
necessary to the uninterrupted operation of the Business (collectively, the
"Books and Records");

                  (c)      CUSTOMER CONTRACTS. All open written contracts and
open written purchase orders (the "Customer Contracts"), with customers of
Seller for the sale of the Products, including without limitation components
thereof and related equipment or modifications and replacement parts, which are
open or incomplete as of the Closing, including without limitation those
contracts and purchase orders under which either (1) Seller has not completed
performance of its production or delivery obligations to its customers (i.e.
customer order backlog), or (2) such customers have not made payment in full to
Seller in accordance with applicable contractual provisions, as listed on
Schedule 1.1(c);

                  (d)      EQUIPMENT LEASES. The leases (the "Equipment Leases")
for equipment used in the Business, but only those listed on Schedule 1.1(d);

                  (e)      GOVERNMENTAL AIRWORTHINESS APPROVALS. To the extent
assignable or transferable, all approvals, authorizations, licenses,
certificates, accreditations and registrations and other licenses or permits
(collectively, the "Governmental Airworthiness Approvals") issued by
governmental airworthiness authorities anywhere in the world with respect to the
Products or in connection with the operation of the Business, including without
limitation the permits, approvals and licenses listed on Schedule 1.1(e);

                  (f)      INCLUDED INVENTORIES. Subject to Section 2.10 below,
all inventories (the "Included Inventories") of the Products, including without
limitation raw materials and parts, work-in-process and finished goods, together
with such additions and deletions thereto as may arise in the

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ordinary course of business before the Closing, as listed on Schedule 1.1(f);

                  (g)      INTELLECTUAL PROPERTY. All intangible property
(collectively, the "Intellectual Property") related to the Business, including
without limitation the patents, copyrights, licenses, intellectual property,
drawings, formulas and rights listed on Schedule 1.1(g);

                  (h)      MANUFACTURERS' WARRANTIES. All warranties (the
"Manufacturers' Warranties") provided by any third-party manufacturers or
vendors with respect to any components or parts used in manufacturing the
Products;

                  (i)      OTHER ASSETS. Any other assets (the "Other Assets")
of Seller utilized in the Business, wheresoever situated, excluding, however,
the Excluded Assets (Schedule 0.3(u));

                  (j)      SOFTWARE LICENSES. The software licenses, including
appurtenant documentation and object and source code (the "Software Licenses"),
for the computer software programs used by Seller in the Business listed on
Schedule 1.1(j), it being agreed that Schedule 1.1(j) shall list only those
items which Purchaser elects to purchase as provided above;

                  (k)      SUPPLIES. To the extent not part of the Included
Inventories, the inventories of manufacturing supplies, office supplies and
other disposables and consumables (the "Supplies") owned by Seller which are
used in connection with the Business, together with such additions and deletions
thereto as may arise in the ordinary course of business before the Closing as
listed on Schedule 1.1(k), it being agreed that Schedule 1.1(k) shall list only
those items which Purchaser elects to purchase as provided above;

                  (l)      TANGIBLE PERSONAL PROPERTY. Certain tangible personal
property (the "Tangible Personal Property") used in connection with the
Business, including without limitation appurtenant manufacturing equipment and
machinery, furniture, computers, fixtures, office furnishings, and samples of
the Products, as listed on Schedule 1.1(l), but only those items which Purchaser
elects to purchase as provided above;

                  (m)      TOOLING. All tooling, fixtures, molds, jigs, assembly
tools, and patterns and sample parts used to manufacture any parts or components
of the Products (collectively, the "Tooling"), whether located in the Poway
Facility or at the facilities of Seller's vendors, as listed on Schedule 1.1(m);
and

                  (n)      VENDOR CONTRACTS. Those contracts and purchase orders
(collectively, the "Vendor Contracts") issued by Seller to its vendors for
parts, components, materials and other supplies used to manufacture the
Products, as listed on Schedule 1.1(n), it being agreed that Schedule 1.1(n)
shall list only those Vendor Contracts which Purchaser elects to acquire or
assume.

         1.2      PURCHASE TRANSACTION.

                  (a)      GENERAL. At the Closing, Purchaser shall purchase the
Included Assets for the Purchase Price as preliminarily determined on the basis
of the Pre-Closing Balance Sheet, which

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shall be prepared as provided in the following provisions of this Section 1.2.
See also Section 0.1(a) above. The Purchase Price is subject to adjustment to
reflect the Post-Closing Accounting Adjustments, as provided in Section 0.3(hh)
above. The Purchase Price shall be paid as provided in Section 1.6 below.

                  (b)      CERTAIN PRE-CLOSING ACTIONS. No less than five (5)
business days before the Balance Sheet Cut-Off Date, Purchaser shall advise
Selling Parties of those items of Seller's Assets which Purchaser desires to be
included among the Included Assets pursuant to Section 1.1 above. In addition,
Seller and Purchaser shall cooperate with one another in order to assist
Purchaser in selecting the employees of Seller whom Purchaser desires to hire
after the Closing. See Section 4.1(b) and 5.2(m) below.

                  (c)      DETERMINATION OF PRE-CLOSING BALANCE SHEET. At least
three (3) business days before the Target Closing Date, Seller shall deliver to
Purchaser the Pre-Closing Balance Sheet for the Business prepared on a basis
consistent with: (1) Seller's Financial Statements and (2) Seller's accounting
practices prior to the date of this Agreement. The Pre-Closing Balance Sheet
shall be used to make a preliminary estimate of Seller's Adjusted Net Worth and
the amount of the Assumed Liabilities as of the Closing. Purchaser shall have
two (2) business days after receipt from Seller in which to review and approve
the Pre-Closing Balance Sheet. If Purchaser disapproves of the Pre-Closing
Balance Sheet as prepared by Seller, Purchaser shall send Seller a written
notice to such effect. Purchaser's failure to timely object to the Pre-Closing
Balance Sheet as prepared by Seller shall mean that Purchaser has approved of
same. If Purchaser timely disapproves of Seller's Pre-Closing Balance Sheet, the
parties shall meet and confer in order to agree on a mutually agreeable
Pre-Closing Balance Sheet. If the parties are unable to agree on the Pre-Closing
Balance Sheet within two (2) business days after the Purchaser sends its
disapproval notice, the matter shall be promptly resolved by Selling Parties'
accounting firm, Deloitte & Touche, LLP, and Purchaser's accounting firm, Ernst
& Young, LLP, in a fair and impartial manner. Resolution of disagreements over
the Pre-Closing Balance Sheet shall extend the Target Closing Date until such
time as the matter is resolved. Extensions of the Target Closing Date pursuant
to the preceding sentence shall extend the Closing Deadline for an equal amount
of time.

                  (d)      AMOUNT OF CASH PAYMENT. The Cash Payment shall then
be calculated as provided in Section 0.3(l) above. The Cash Payment shall be
paid all in cash at the Closing, as more fully provided in Section 1.6 below.
After the Post-Closing Accounting Adjustments are made, the amount of the Cash
Payment shall be appropriately adjusted as provided in Section 0.3(hh) above.

                  (e)      AMOUNT OF ASSUMED LIABILITIES. The estimated amount
of the Assumed Liabilities shall be as set forth on the Pre-Closing Balance
Sheet approved by Seller and Purchaser pursuant to Section 1.2(c) above. The
Assignment and Assumption Agreement (Exhibit "D") shall list the specific items
to be included among the Assumed Liabilities, as set forth on Schedule 0.3(e).

         1.3      ALLOCATION OF PURCHASE PRICE. The Purchase Price shall be
allocated by Purchaser and Seller on the basis of an allocation of the value of
the Included Assets made by the parties and their respective accounting
advisors, Ernst & Young, LLP and Deloitte & Touche, LLP. Seller shall cooperate
in providing the information necessary for the completion and filing of IRS Form
8594,

                                       11
<PAGE>   13
Asset Acquisition Statement, under Section 1060 of the Code. The parties
shall each deliver executed copies of said Form 8594 at the Closing.

         1.4      ASSUMPTION OF ASSUMED LIABILITIES. Subject to all the terms
and conditions of this Agreement, effective as of the Closing, Purchaser shall
assume the Assumed Liabilities by executing and delivering to Seller the
Assignment and Assumption Agreement substantially in the form of Exhibit "D"
hereto. The Assumed Liabilities shall be listed on Schedule 0.3(e).
Notwithstanding anything in this Agreement to the contrary, the Assumed
Liabilities shall not include any of the Excluded Liabilities.

         1.5      CALIFORNIA SALES TAX. Purchaser shall pay any and all state
and local sales or transfer taxes that may be payable in connection with the
sale of the Included Assets.

         1.6      CLOSING MATTERS.

                  (a)      GENERAL.

                           (1)      The consummation (the "Closing") of the
transactions contemplated in this Agreement shall occur at one time after all
conditions to the Closing have been waived or satisfied. The Closing shall take
place at the offices of Hillyer & Irwin in San Diego, California, or at such
other place as Purchaser and Seller may agree upon in writing.

                           (2)      The parties anticipate that the Closing will
occur on the Target Closing Date specified in Section 0.1(e) above. The Target
Closing Date may be extended to such other date as may be mutually agreed upon
by the parties or as provided in this Agreement. The Closing shall occur as soon
as practical after the expiration of the applicable waiting period under the HSR
Act, but not later than the Closing Deadline, as the same may be extended. See
Article 5.2(s) below. Extensions of the Target Closing Date under applicable
provisions of this Agreement shall also extend the Closing Deadline on a
day-for-day basis, notwithstanding anything in this Agreement to the contrary.

                  (b)      DEPOSIT OF PURCHASER'S FUNDS. Promptly upon execution
of this Agreement by both parties, Purchaser shall deposit the Initial Deposit
into the Escrow. Between the date of the deposit of the Initial Deposit and the
Effective Date, the Escrow shall remain a unilateral escrow for the exclusive
benefit of Purchaser. After the Effective Date, the Escrow shall become a
bilateral escrow for the joint benefit of Seller and Purchaser, subject to all
the terms and conditions of this Agreement and the Funding Agreement. The
Initial Deposit shall be disbursed to fund the Operating Loan pursuant to the
Funding Agreement. See Section 1.11 below. The balance of the Initial Deposit
shall be credited against the Cash Payment. Interest accrued on funds deposited
into the Escrow while they are in Escrow shall accrue to the benefit of
Purchaser.

                                       12
<PAGE>   14
                  (c)      CLOSING PROCEDURES. At the Closing:

                           (1)      Seller shall deliver to Escrowholder the
documents necessary to transfer title to the Included Assets, as more fully
provided in Section 1.8 below;

                           (2)      Purchaser and Seller shall execute and
deliver to Escrowholder the Closing Documents;

                           (3)      Purchaser shall deposit the unpaid balance
of the Cash Payment into the Escrow by wire transfer of immediately available
funds; and

                           (4)      Purchaser and Seller shall execute and
deliver all other agreements and documents described in or contemplated in
Articles 4, 5, and 6 below (to the extent not included in the Closing Documents)
and all other documents reasonably agreed by the parties' respective legal
counsel to be required to be delivered and/or executed at or prior to Closing in
order to complete the transactions contemplated by this Agreement.

         1.7      Bulk sale transfer notice. As a condition to the Closing,
Purchaser shall give notice to Seller's creditors of the bulk transfer
contemplated by this Agreement pursuant to Division 6 of the California
Commercial Code. At least thirty (30) days before the Target Closing Date,
Selling Parties will furnish Purchaser with the information necessary to prepare
this notice, including all names and business addresses used by it within the
last three (3) years and the location of all the Included Assets.

         1.8      Instruments of Conveyance and Transfer. At the Closing, Seller
shall deliver (a) the executed Closing Documents, (b) the executed Post-Closing
Documents, (c) such additional documents as may be required to transfer title to
the Intellectual Property to Purchaser, and (d) other good and sufficient
endorsements, assignments and instruments of conveyance and transfer, and
releases of liens, in form and substance reasonably satisfactory to Purchaser's
legal counsel, may be required to vest in Purchaser title to the Included Assets
free and clear of all liens and encumbrances. Simultaneously with such delivery,
Seller shall take all such steps as may be reasonably required to put Purchaser
in actual possession and complete operating control of the Included Assets and
the Business.

         1.9      Escrow Instructions. This Agreement shall constitute escrow
instructions to Escrowholder. By signing the signature page of this Agreement in
the space provided below, Escrowholder agrees to comply with said escrow
instructions. Seller and Purchaser agree to execute such supplemental and/or
general escrow instructions as Escrowholder may reasonably request. However, in
the event of a conflict between this Agreement and such supplemental or general
escrow instructions, this Agreement shall control. Selling Parties shall pay all
costs of the Escrow.

         1.10     Effective Date. Notwithstanding anything in this Agreement to
the contrary, this Agreement shall not be effective on its execution. Rather, it
shall become effective as of the Effective Date specified in Section 0.1(c)
above, provided Seller has delivered the executed Funding

                                       13
<PAGE>   15
Agreement to Purchaser and delivered to Escrowholder the executed Promissory
Note and the executed Guaranty of Simula provided for under the Funding
Agreement. Seller's delivery of the Funding Agreement, said Promissory Note and
said Guaranty shall be a condition precedent to Purchaser's obligations under
the Funding Agreement.

         1.11     Funding Agreement. In order to assist Seller in meeting its
obligations under Section 4.1(a) below concerning the conduct of the Business
before the Closing, Purchaser has agreed to loan Seller up to One Million
Dollars ($1,000,000) (the "Operating Loan") pursuant to a certain Funding
Agreement (the "Funding Agreement") attached as Exhibit "G", to be entered into
by Purchaser, Seller and Simula. The proceeds of the Operating Loan shall be
used only for the following purposes: operating expenses of the Business
incurred in the ordinary course of business and trade payables of Seller
existing (as of December 31, 1999) with respect to the Business. The Operating
Loan shall not be used to pay inter-company loans or purchase parts or materials
to be used to manufacture the Products or fixed assets. The Funding Agreement
shall contain more detailed provisions for the use of the proceeds of the
Operating Loan. The Operating Loan shall be funded from the Initial Deposit in
the Escrow. As a condition to the disbursement of the proceeds of the Operating
Loan, Seller shall execute a Promissory Note and Simula shall execute a
Guaranty, both in form and substance reasonably satisfactory to the parties. The
loan proceeds shall be disbursed in increments. In order to draw down on the
Operating Loan, Seller shall submit a loan draw request to Escrowholder and
Purchaser describing in reasonable detail the purposes for which the draw
request is being submitted. If Purchaser approves the loan draw request,
Escrowholder shall issue a check payable to the order of the payee(s) specified
in Seller's draw request. Interest shall accrue on the Operating Loan only as
provided in the Funding Agreement. The Funding Agreement shall contain a more
complete statement of the parties' understanding concerning the Operating Loan.

                                    ARTICLE 2
                REPRESENTATIONS AND WARRANTIES OF SELLING PARTIES

         Neither Seller nor Shareholder makes any representations or warranties
concerning the subject transactions, except as expressly provided in this
Article 2 or elsewhere in this Agreement. Neither Seller nor Shareholder makes
any representations or warranties as to pro forma financial information and
forecasts previously given Purchaser, except that they were prepared in good
faith. In addition, except as expressly set forth in this Agreement, neither
Seller nor Shareholder makes any warranty regarding the accuracy of the
information in any marketing materials or business summaries provided by CIBC
World Markets Corp., or in oral presentations (including the written materials
used therein) by Selling Parties' management personnel and/or CIBC World Markets
Corp., except that such materials and summaries were prepared in good faith.

         Subject to the foregoing, Seller and Shareholder hereby represent,
warrant and agree that the following representations and warranties of the
Selling Parties are true, accurate and complete as of the date of this Agreement
and will be true, accurate and complete as of the Closing:

                                       14
<PAGE>   16
         2.1      ORGANIZATION AND STANDING. Selling Parties are corporations
duly organized, validly existing and in good standing under the laws of the
State of Arizona and qualified to do business as foreign corporations in
California and any other jurisdictions where such qualification is required.
Selling Parties have all requisite power and authority to carry on their
respective businesses as such businesses are now being conducted and to own the
properties and assets each now owns. Selling Parties have heretofore delivered
to Purchaser true, accurate and complete copies of their respective Articles of
Incorporation and Bylaws, together, in each case, with all amendments thereto
which have been adopted by requisite corporate action.

         2.2      AUTHORITY FOR AGREEMENT. The respective Boards of Directors of
Seller and Shareholder have taken all actions required by law, their respective
Articles of Incorporation and Bylaws or otherwise to authorize the execution and
delivery of this Agreement, on behalf of Seller and Shareholder, the performance
by Seller and Shareholder of their respective obligations under this Agreement
and the consummation of the transactions contemplated hereby.

         2.3      OWNERSHIP OF SELLER. Simtec owns one hundred percent (100%) of
the common stock of Seller. No other securities of Seller have been issued.
Simula owns one hundred percent (100%) of the common stock of Simtec. No other
securities of Simtec have been issued.

         2.4      NO DEFAULTS OR VIOLATIONS. Except as disclosed on Schedule
2.4, neither the execution and delivery of this Agreement, nor the performance
by Selling Parties of their obligations under this Agreement nor the
consummation of the transactions contemplated hereby will: (a) violate any
provision of their respective Articles of Incorporation or Bylaws, or any
financing or other agreements by which any of them may be bound; (b) violate, or
be in conflict with, or constitute a default under, or permit the termination of
any of the Government Airworthiness Licenses or any customer agreement or
contract by which Selling Parties are bound, or result in the creation or
imposition of any lien upon any of the Included Assets; (d) require the
agreement or consent of any third party; or (e) violate any material statute or
law or any judgment, decree, order, regulation or rule of any court or
governmental authority to which Selling Parties or the Business may be subject.

         2.5      TAXES. Selling Parties have filed all federal, state,
employment, and local tax returns or information returns required to be filed by
them. All of such returns have been prepared and filed in accordance with the
applicable laws and regulations. Selling Parties have paid or accrued for all
taxes and assessments (including, without limitation, income, excise,
unemployment, worker's compensation, social security, occupation, franchise,
property, sales and use taxes, import duties or charges, and all penalties and
interest in respect thereof) due and payable. Selling Parties have not been
audited by any taxing authority, nor are Selling Parties aware that any taxing
authority contemplates such an audit, nor have Selling Parties signed any
consent or extension agreement with any taxing authority. None of the Selling
Parties is a party to any dispute about taxes of any nature in any jurisdiction.

         2.6      LITIGATION. Except as disclosed on Schedule 2.6, as of the
date of this Agreement, there is no investigation, audit, litigation, action,
suit or proceeding of any nature pending, or, to the Best Knowledge of Selling
Parties, threatened, against any Selling Party, their properties or any of their
officers or directors before any court or governmental agency, which if
adversely decided which

                                       15
<PAGE>   17
could: (a) result in any material liability for Purchaser; (b) result in any
lien on any of the Included Assets; (c) have a material adverse effect on
Selling Parties' ability to perform their obligations under this Agreement; or
(d) have a materially adverse effect on the Business. For purposes of this
Section 2.6, the term "Seller's Responsible Employees" shall include Bradley P.
Forst, and Seller's quality assurance personnel and field service personnel.

         2.7      COMPLIANCE WITH LAW AND REGULATIONS. To the Best Knowledge of
Selling Parties, Selling Parties are in compliance with all material
requirements of all applicable domestic and foreign laws, and all material
requirements of all domestic and foreign governmental bodies or agencies having
jurisdiction over the Selling Parties relating to the conduct of the Business
and the use of the Products in the commercial aircraft industry. For purposes of
this Section 2.7, the term "Seller's Responsible Employees" shall include
Bradley P. Forst, and Seller's human resources personnel,
manufacturing/production personnel, and quality assurance personnel.

         2.8      GOVERNMENTAL APPROVALS. Schedule 1.1(e) lists all Governmental
Airworthiness Approvals granted to Seller by the United States Federal Aviation
Administration ("FAA") and the United Kingdom Civil Aviation Authority ("CAA")
that are material and necessary to the conduct of the Business. Except as
otherwise disclosed on Schedule 1.1(e), the conduct of the Business is in
compliance in all material respects with the Governmental Airworthiness
Approvals. In addition, Selling Parties have obtained, are subject only to and
are in full compliance with the other material governmental licenses, permits,
and other authorizations necessary to the conduct of the Business which are
listed on Schedule 2.8.

         2.9      TITLE TO AND CONDITION OF INCLUDED ASSETS. Seller does not own
any real property. Except as set forth on Schedule 2.9, Seller has good and
marketable title to all the Included Assets which are not leased, free and clear
of liabilities, liens, security interests, defects, rights, charges and
encumbrances. Seller has good and valid leasehold estates in the equipment
leased under the Equipment Leases and is not in default under any of the
Equipment Leases. All of the Tangible Personal Property, the Included
Inventories and the Tooling are in good operating condition and repair, ordinary
wear and tear excepted. All the Books and Records are located in the Poway
Facility.

         2.10     INVENTORIES. Schedule 1.1(f) is a true, accurate and complete
listing of the Included Inventories (including work-in-process). Except for
obsolete items that have been adequately reserved for, written off or written
down to net realizable value in accordance with the methodology set forth on
Exhibit "C" hereto, the Included Inventories: (a) are new and of a quality and
condition that comply with the warranties for the Products customarily given to
Seller's customers, (b) are of a commercially acceptable quality consistent with
quality standards generally prevailing in the commercial aircraft industry, and
(c) comply with Seller's design and manufacturing specifications for the
Products. All items included as part of the Included Inventory are capable of
being incorporated into the Products "as is" without rework or modification to
meet current drawing requirements. As of the Closing, no seat cushions which are
part of the Included Inventories will be older than ninety (90) days after the
applicable original date of manufacture. The amount stated on line 5 of the Pro
Forma Pre-Closing Balance Sheet as the Agreed Inventory Value for the Included
Inventory does not include any amount for Seller's refurbishment inventory
(which is not part of the Business) or engineering or testing costs incurred
with respect to the Products.

                                       16
<PAGE>   18
         2.11     OBLIGATIONS TO THIRD PARTIES OTHER THAN CUSTOMERS.

                  (a)      LISTING. Schedule 2.11 is a true, accurate and
complete listing (effective as of the date hereof) of all material written
agreements and commitments of Seller to third parties who are not customers of
Seller, to which Seller is a party or by which it or any of the Included Assets
may be bound. The information contained on Section 2.11 may be duplicative of
information provided on other schedules of Seller. Such agreements and
commitments include the following:

                           (1)      Notes, loans, credit agreements, mortgages,
indentures, security agreements, and other agreements and instruments relating
to the borrowing of money by, or the extension of credit to, Seller;

                           (2)      Credit agreements, guarantees, etc. executed
by Shareholder for the benefit of Seller;

                           (3)      Written employment and consulting
agreements;

                           (4)      Written sales agency, representative, broker
or distributorship agreements;

                           (5)      Equipment and real property leases,
including the Equipment Leases;

                           (6)      Open contracts, open purchase orders and
other written agreements, orders or commitments for the purchase by Seller of
raw materials, supplies or finished products exceeding Two Thousand Five Hundred
Dollars ($2,500) in any one instance or Five Thousand Dollars ($5,000) in the
aggregate to any single vendor; and

                           (7)      Open purchase orders and other written
agreements, orders or commitments for the purchase by Seller of services
exceeding Two Thousand Five Hundred Dollars ($2,500) in any one instance or Five
Thousand Dollars ($5,000) in the aggregate to any single vendor.

                  (b)      DELIVERY OF DOCUMENTS. Prior to the execution of this
Agreement, Seller shall has delivered to Purchaser true, accurate and complete
copies of all of the agreements and commitments listed on Schedule 2.11,
together with all amendments thereto. Except the agreements and commitments
listed on Schedule 2.11, Seller does not now have (and at the Closing will not
have) any written agreements or commitments, contingent or otherwise, (1) to
incur any indebtedness in any amount, (2) for the purchase of supplies, services
or other similar items in excess of Two Thousand Five Hundred Dollars ($2,500)
in any one instance, or (3) for the purchase of any raw materials, supplies,
equipment, or machinery in excess of Two Thousand Five Hundred Dollars ($2,500)
in any one instance.

         2.12     CUSTOMER CONTRACTS. Schedule 1.1(c) is a true, accurate and
complete listing (effective as of the date of this Agreement) of: (a) all the
Customer Contracts and (b) a true, accurate

                                       17
<PAGE>   19
and complete listing (by customer name) of all of Seller's current customer
order backlog. Prior to the execution of this Agreement, Seller has delivered to
Purchaser (to the extent not previously delivered to Purchaser) true, accurate
and complete copies of all the Customer Contracts, together with all amendments
thereto. The Customer Contracts are assumable by Purchaser according to their
terms, it being agreed, however, that Purchaser shall be obligated to assume and
Seller shall be obligated to assign only such Customer Contracts as may be
specified in the Assignment and Assumption Agreement. Seller shall use
commercially reasonable efforts to obtain consents for the assignment of the
Customer Contracts, as may be reasonably requested by Purchaser. During the
period between the date of this Agreement and the Closing, Seller shall not
negotiate or execute any contracts for the sale or manufacture of the Products
(or spare parts for the Products) without first obtaining Purchaser's prior
written consent thereto, which consent shall not be unreasonably withheld or
delayed.

         2.13     FINANCIAL STATEMENTS. The unaudited financial statements of
Seller for the years ended December 31, 1997 and December 31, 1998, and for the
eleven (11) months ended November 30, 1999 listed on Schedule 2.13
(collectively, "Seller's Financial Statements") are true, accurate and complete
in all material respects, and fairly present the financial condition of Seller
as of the respective dates thereof and the results of the operations of Seller
for the periods covered thereby.

         2.14     ABSENCE OF MATERIAL CHANGES. Except as disclosed on Schedule
2.14, since the date of the last audited financial statement of Simula, there
has not been any:

                  (a)      Sales of the Products by Seller except in the
ordinary course of business;

                  (b)      Capital expenditure by Seller exceeding Five Thousand
Dollars ($5,000) in any one instance or Ten Thousand Dollars ($10,000) in the
aggregate;

                  (c)      Material adverse change in the financial condition,
liabilities, assets, customer order backlog, production backlog, business, or
prospects of Selling Parties;

                  (d)      Destruction, damage, or loss of any Included Asset
(whether insured or uninsured) that would materially and adversely affect the
financial condition, business, or prospects of Selling Parties;

                  (e)      Change in accounting methods or practices (including
any change in depreciation or amortization policies or rates) by Seller;

                  (f)      Revaluation by Seller of any of the Included Assets;

                  (g)      Increase in the salary or other compensation payable
or to become payable by Seller to any of its respective officers, directors,
employees, or declaration, payment, or obligation of any kind for payment, by
Seller, of a bonus or other additional salary or compensation of any such person
other than in the ordinary course of business;

                                       18
<PAGE>   20
                  (h)      Sale or transfer of any of the Included Assets,
except in the ordinary course of business;

                  (i)      Amendment or termination of any Customer Contract,
except in the ordinary course of business;

                  (j)      Loan made by Seller to any person or entity or
guaranty by Seller of any loan or indebtedness for the benefit of any third
party;

                  (k)      Mortgage, pledge, or other encumbrance of any
Included Asset by Seller;

                  (l)      Waiver or release of any right or claim of Seller
relating to the Included Assets, except in the ordinary course of business;

                  (m)      To the Best Knowledge of Selling Parties,
commencement or notice or threat of commencement of any civil or criminal
litigation or any governmental proceeding against or investigation of any
Selling Party or the affairs of any one of them, the adverse determination of
which would materially affect the Business or the Included Assets; or

                  (n)      Claim of unlawful labor practice or employment
discrimination action.

         2.15     NO OTHER LIABILITIES OR ADVERSE CONDITIONS. Except for (a) the
liabilities set forth on Seller's Financial Statements and on Schedules 1.1(c),
2.13, or 2.14, (b) liabilities incurred by Seller in the ordinary course of
business since December 31, 1998, and (c) the Agreed Offsets, to the Best
Knowledge of Selling Parties, Seller has no other liabilities of any nature,
whether absolute, accrued, contingent or otherwise, or whether due or to become
due, that are of a material nature, and, to the Best Knowledge of Selling
Parties, there is no basis known to Selling Parties for the assertion against
Seller of any such liability. All liabilities incurred since such date were
incurred in the ordinary course of business and are usual and normal in amount,
both individually and in the aggregate. For purposes of this Section 2.15, the
term "Seller's Responsible Employees" shall include Seller's quality assurance
and field service personnel.

         2.16     ACCOUNTS RECEIVABLE. Schedule 1.1(a) is a true, accurate and
complete listing of all the Accounts Receivable, with the balances due Seller as
of the dates indicated. Except as expressly disclosed on Schedule 1.1(a), the
Accounts Receivable are free of any liens or encumbrances and are collectible in
full in the ordinary course of business. Except in the ordinary course of
business, Seller has no obligation to accept returns from, or to extend credit
terms to, its customers and has no policy, custom or practice of: (a) accepting
returns or extending credit, whether or not legally obligated to do so, other
than in the ordinary course of business, or (b) providing free or discounted
goods to customers that would affect the valuation of the Accounts Receivable or
Seller's customer order backlog. Except as may be disclosed on Schedules 2.9 and
1.1(a), no person has a security interest in the Accounts Receivable.
Shareholder has agreed to guarantee the collectability of the Accounts
Receivable pursuant to Section 7.3 below. Schedule 2.16 is a true, accurate and
complete listing of any Accounts Receivable which Selling Parties presently deem
to be uncollectable.

                                       19
<PAGE>   21
         2.17     ACCOUNTS PAYABLE. Schedule 2.17 is a true, accurate and
complete listing of all accounts payable of Seller and any collateral or
security applicable to the indebtedness owed by Seller to its creditors is
listed on Schedule 2.17.

         2.18     CONSENTS AND APPROVALS OF GOVERNMENTAL AUTHORITIES. Except as
disclosed on Schedule 2.18 and as may be required under the HSR Act, no consent,
approval or authorization of, or declaration, filing or registration with, any
governmental, quasi-governmental, or regulatory authority is required to be made
or obtained by Seller in connection with the execution, delivery and performance
of this Agreement by Seller. Seller has filed all reports and returns required
by federal, state or municipal authorities with respect to the Business prior to
the date of this Agreement and has paid or will pay all sums that will become
due with respect to such reports and returns before the Closing.

         2.19     LABOR, EMPLOYMENT CONTRACTS AND EMPLOYEE BENEFITS PLANS.

                  (a)      EMPLOYEE POLICIES AND BENEFITS. Schedule 2.19(a)(1)
is a true, accurate and complete listing of all written personnel employment
agreements, policies, procedures, practices and employee rules and manuals which
are provided to employees, whether or not legally binding, including but not
limited to policies with respect to hiring, compensation, disability, sick
leave, vacation, leaves of absence, tuition reimbursement, relocation and
termination. Schedule 2.19(a)(2) is a listing of all of Seller's group
insurance, group hospitalization and other employee insurance benefit plans.

                  (b)      MATERIAL OBLIGATIONS TO EMPLOYEES. Except as set
forth on Schedule 2.19(b), Seller has no material obligations, contingent or
otherwise, written or oral, under any employment contract, collective bargaining
agreement, pension or retirement plan, bonus plan, or other employee contract or
non-terminable agreement, expressed or implied, except (1) normal salary or wage
accruals, and (2) normal paid vacations and sick leave accruals.

                  (c)      PAYROLL ROSTER. The names and current aggregate
annual compensation rates as of the date of this Agreement of each employee of
the Seller receiving regular compensation, and designations as a union or
non-union employee, are set forth in Schedule 2.19(c).

                  (d)      ACCRUED VACATION AND SICK DAY ALLOWANCES. The amount
of currently accrued vacation and sick day allowances due to each employee on
the date hereof is listed by employee name on Schedule 2.19(d).

                  (e)      INS FORM I-9. Seller has obtained Form I-9 from all
of its employees and Seller is in compliance with all rules and regulations of
the U.S. Immigration and Naturalization Service.

                  (f)      ERISA COMPLIANCE. The Selling Parties have complied
with all material state and federal regulations for each of their respective
employee benefit plans, including without limitation ERISA.

                                       20
<PAGE>   22
                                                                 EXHIBIT 10.40a

              (g) SEVERANCE PAY. Seller has no agreements to pay severance pay
to any of its officers or employees except as set forth on Schedule 2.19(g).
Seller shall pay any severance payments that may be due employees of Seller as
listed on Schedule 2.19(g). See Section 7.9 below for a discussion of severance
pay obligations to be assumed by Purchaser under the Transition Support
Agreement.

         2.20 ENVIRONMENTAL MATTERS.

              (a) COMPLIANCE WITH ENVIRONMENTAL LAWS. To the Best Knowledge of
Selling Parties, Seller is in compliance with all material rules and regulations
(and applicable standards and requirements) of the United States Environmental
Protection Agency (the "EPA") and the agencies and authorities of the City of
Poway, the County of San Diego, and the State of California, and any other
political subdivision in which it conducts the Business, which have jurisdiction
over environmental matters. Selling Parties have received no notice of, and, to
their best knowledge, has not during its operation of the Business made any act
or omission that would result in: (1) potential responsibility or liability for
environmental damage, or (2) any suit, claim, action or proceeding before any
court, governmental agency or board or other forum, nor is any such action
threatened by any person or entity or any basis for such suit, claim, action or
proceeding, for (x) noncompliance by Seller with any environmental law, rule or
regulation, (y) personal injury, wrongful death or other conduct relating to
materials, commodities or products used, sold, transferred, disposed or
manufactured by Seller, or (z) relating to the presence in or release or
discharge into the environment by Seller of any toxic or hazardous material,
substance, or waste generated by Seller whether or not occurring at or on a site
owned, leased or operated by Seller.

              (b) PHASE 1 ESA. Purchaser is not assuming any environmental
liability of Seller. A Phase I environmental site assessment of the Poway
Facility will be conducted before the Closing to establish the condition of the
Poway Facility as of that date and as a baseline for this representation of
Seller. The cost of such environmental site assessment will be split evenly
between Purchaser and Seller. For purposes of this Section 2.20, the term
"Seller's Responsible Employees" shall include Seller's personnel charged with
responsibilities for compliance with environmental laws.

         2.21 INSURANCE. Prior to the execution of this Agreement, Seller has
provided Purchaser with a true, accurate and complete listing of and a summary
description (including premiums, exclusions, deductible and coinsurance amounts,
broker and carrier) of all insurance policies maintained by Seller, or by
Shareholder on Seller's behalf. Such policies are in full force and effect, all
premiums due thereon have been paid, and Selling Parties have complied in all
material respects with the provisions of such policies. Except as disclosed on
Schedule 2.21, there are no claims pending under any of such insurance policies.
Selling Parties have sufficient insurance in force in general to properly
conduct the Business.

         2.22 PRODUCT WARRANTIES. Schedule 2.22(a) is a true, accurate and
complete copy of the standard warranty of Seller that has at all times been
applicable to the Products from the date the first unit of the Products was
sold. Except disclosed on Schedule 2.22(b), Seller has received no notice of any
product liability or service warranty claims with respect to its entire
installed base of

                                       21
<PAGE>   23
the Products, whether reserved for or not. Seller and Purchaser have agreed on
the amount of a warranty offset to be shown on line 15 of Seller's Pre-Closing
Balance Sheet. This warranty offset will be an adequate and reasonable estimate
of Seller's present and future, known and unknown, warranty obligations for all
Products delivered by Seller through the Closing. There are no unique or special
warranty arrangements with any customers of Seller which are at variance with
Seller's standard warranty, except as disclosed on Schedule 2.22(c). To the Best
Knowledge of Selling Parties, a warranty offset for all existing warranty and
service bulletin issues for Seller's existing base of airline passenger seats in
the amount of One Million Seven Hundred Twenty-One Thousand Nine Hundred Twelve
Dollars ($1,721,912) is adequate. Purchaser believes that the correct amount of
the warranty offset is at least One Million Dollars ($1,000,000) greater than
this amount. However, in consideration of Selling Parties' agreement, under
Section 7.8 below, that Selling Parties shall be liable under Article 8 to
indemnify Purchaser if actual warranty claims for the Products exceed the
foregoing warranty offset amount, Purchaser has agreed to use the foregoing
warranty offset amount in establishing the Agreed Offsets, without prejudice to
Purchaser's right to seek to collect a greater amount if the actual amount of
warranty claims exceeds the above warranty offset during the Indemnity Period.

         2.23 BANKS. Schedule 2.23 is a true, accurate, and complete listing, as
of the date hereof, of (a) each bank or other financial institution, trust
company or brokerage firm at which Seller has an account or safe deposit box,
and (b) the account number and the names of all persons authorized to draw
thereon, have access thereto or transact business therewith.

         2.24 TRADE NAMES, LOGOS, TRADEMARKS, AND COPYRIGHTS. Schedule 2.24 is a
true, accurate and complete listing of all trade names, logos, trademarks,
service marks, and copyrights and their registrations (collectively, the
"Seller's Trade Names") owned by Selling Parties which are used in the Business,
or to which they have any rights or licenses, together with a brief description
of each. Selling Parties have no knowledge of any infringement or alleged
infringement by others of Seller's Trade Names. In the conduct of the Business,
Selling Parties have not infringed, and are not now infringing, on any trade
name, logo, trademark, service mark, or copyright belonging to any other person,
firm, or corporation. Except as set forth in Schedule 2.24, Selling Parties are
not parties to any license, agreement, or arrangement, whether as licensor,
licensee, franchiser, franchisee, or otherwise, with respect to any copyrights
or any trademarks, service marks, trade names, logos, or applications for them
used in the Business. Selling Parties own or hold adequate licenses or other
rights to use all trademarks, logos, service marks, trade names, and copyrights
necessary for the Business as it is now conducted by Seller (including Seller's
Trade Names). Such use by Selling Parties does not, and will not, violate any
rights of others. Selling Parties have the right to sell or assign to Purchaser
all of Seller's Trade Names.

         2.25 PATENT AND PATENT RIGHTS.

              (a) LISTING. Schedule 2.25 is a true, accurate and complete
listing of all patents, patent applications, inventions, industrial models,
processes, designs, and applications for patents used in the Business which are
owned by the Selling Parties or in which they have any rights, licenses, or
immunities (collectively, "Seller's Patents"). Except as set forth on Schedule
2.25, no Selling Party is a party to any license, agreement, or arrangement,
whether as licensee, licensor, or otherwise,

                                       22
<PAGE>   24
with respect to any patent, patent application, invention, design, model,
process, trade secret, or formula used in the Business. Seller's Patents are
valid and in full force and effect and are not subject to any taxes, maintenance
fees, or actions falling due within ninety (90) days after the Closing Date.

              (b) NO INFRINGEMENT. There have been no interference actions or
other judicial, arbitration, or other adversary proceedings concerning the
patents or applications for Seller's Patents. The manufacture, use, or sale of
the inventions, models, designs, and systems covered by Seller's Patents, to the
Best Knowledge of Selling Parties, does not violate or infringe on any patent or
any proprietary or personal right of any person, firm, or corporation; and to
the Best Knowledge of Selling Parties, no Selling Party has infringed or is now
infringing on any patent or other right belonging to any person, firm, or
corporation.

              (c) RIGHT TO TRANSFER. The Selling Parties have the right and
authority to use and to transfer to Purchaser such inventions, trade secrets,
processes, models, designs, and formulas as are necessary to enable them to
continue to conduct all phases of the Business in the manner presently conducted
by Seller and, to the Best Knowledge of Selling Parties, such use will not
violate any patent or other rights of others. For purposes of this Section 2.25,
the term "Seller's Responsible Employees" shall include Seller's engineering and
design personnel.

              (d) NO FOREIGN PATENTS. Seller owns no patents or patent
applications with respect to the Products which have been registered or are in
the process of being registered in any jurisdiction outside the United States.

         2.26 NO SALES AGENTS. Except as disclosed on Schedule 2.26, Seller has
no contracts, agreements or understandings (oral or written) with any sales
agents or representatives employed by or on behalf of Seller for the purpose of
selling or facilitating the sale of the Products. Schedule 2.26 lists any fees
or commissions that may become due or payable after the Closing to past or
present officers, employers, agents or employees of Seller for sales of the
Products initiated by Seller, whether completed before or after the Closing.
Seller has adequately accrued on Seller's Financial Statements (and will accrue
on the Pre-Closing Balance Sheet) an amount sufficient to pay any such fees or
commissions in full.

         2.27 SOFTWARE LICENSES. Schedule 1.1(j) is a true, accurate and
complete listing of the Software Licenses. To the Best Knowledge of Selling
Parties, Seller is not in breach of any of the Software Licenses, and the number
of copies of software programs used by Seller is consistent with the applicable
Software Licenses. For purposes of this Section 2.27, the term "Seller's
Responsible Employees" shall include Seller's MIS personnel.

         2.28 Y2K COMPLIANCE. Seller's material office automation, engineering
and information technology systems are currently in "Year 2000" compliance.

         2.29 CUSTOMERS AND SALES. Schedule 2.29 is a true, correct and complete
listing of all customers of Seller, together with summaries of the sales made to
each such customer during the most recent fiscal year of Seller. Except as
indicated in Schedule 2.29, no Selling Party has received any notice that any of
these customers intends to cease doing business with Seller or materially alter

                                       23
<PAGE>   25
the amount of the business they are presently doing with Seller, although no
affirmative commitments have been made by any customers to continue any
particular amount of business.

         2.30 INTEREST IN CUSTOMERS, SUPPLIERS, AND COMPETITORS. Except as set
forth in Schedule 2.30, none of the Selling Parties and no officer, director, or
employee of the Selling Parties, nor any spouse or child of any of them, has any
material, direct or indirect, interest in any competitor, supplier, or customer
of the Selling Parties or in any person from whom or to whom any Selling Party
leases any real or personal property, or in any other person with whom any
Selling Party is doing business.

         2.31 NO LIABILITY FOR EXCLUDED LIABILITIES. Selling Parties shall be
solely responsible for paying or otherwise satisfying the Excluded Liabilities
and Purchaser shall have no liability of any kind, contingent or otherwise, with
respect to the Excluded Liabilities.

         2.32 FCPA COMPLIANCE. To the Best Knowledge of Selling Parties, Seller
is in full compliance with the Foreign Corrupt Practices Act of 1977 ("FCPA"),
as amended (15 U.S.C. Section 78dd-2, et seq.) and no agent, representative or
employee of Seller has engaged in conduct which would constitute a violation of
the FCPA. For purposes of this Section 2.32, the term "Seller's Responsible
Employees" shall include Seller's sales and marketing personnel.

         2.33 [INTENTIONALLY DELETED]

         2.34 [INTENTIONALLY DELETED]

         2.35 [INTENTIONALLY DELETED]

         2.36 SERVICE BULLETINS. Schedule 2.36 contains a true, accurate and
complete listing of all service bulletins issued by Seller with respect to any
of the Products, whether related to a warranty claim or a customer order.

         2.37 OWNERSHIP OF TOOLING. Schedule 1.1(m) is a true, accurate and
complete listing of all the Tooling. The Tooling is located as specified on
Schedule 1.1(m). Seller is the sole owner of all of the Tooling, regardless of
where the Tooling may be located and no vendor of Seller has any right, title or
interest in any of the Tooling.

         2.38 CUSTOMER ORDER BACKLOG. Schedule 2.38 is a true, accurate and
complete listing of the customer order backlog for the Products, listing all
customer orders for which Products have not been either manufactured or shipped.
All of Seller's customer order backlog is supported or backed by a Customer
Contract.

         2.39 [INTENTIONALLY DELETED]

         2.40 BID AND PROPOSAL LIST. Within two (2) business days after the date
of execution of this Agreement, Seller shall deliver to Purchaser a copy of all
outstanding bids and proposals made by Seller for sale of the Products to
customers. Upon delivery of such list to Purchaser, Selling

                                       24
<PAGE>   26
Parties shall be deemed to be representing and warranting that such list is
true, accurate and complete.

         2.41 NO SIDE AGREEMENTS. No past or present officer, director,
employee, representative or agent of Selling Parties has made any promise or
commitment (oral or written) to grant any customer of Seller any concession or
consideration for orders for the Products which is not expressly set forth in
Schedule 1.1(c).

                                    ARTICLE 3
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

         Purchaser hereby represents and warrants to Selling Parties as of the
Closing as follows:

         3.1 ORGANIZATION AND STANDING. Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the
jurisdiction in which it is incorporated. Purchaser has full power and authority
to carry on its business as now conducted and as contemplated by this Agreement.

         3.2 AUTHORITY FOR AGREEMENT. The execution and delivery of this
Agreement and the performance by Purchaser of its obligations under this
Agreement have been authorized in accordance with applicable corporate
requirements and no further corporate authorization is necessary on the part of
Purchaser.

         3.3 NO THIRD PARTY CONSENTS. No consent, approval, or authorization of,
or declaration, filing, or registration with, any federal or state governmental
or regulatory authority in the United States or France is required to be made or
obtained by Purchaser in connection with the execution, delivery, and
performance of this Agreement and the consummation of the transactions
contemplated by this Agreement, except for the filing under the HSR Act.

         3.4 NO DEFAULTS; NO VIOLATIONS. Except as disclosed on Schedule 3.4,
neither the execution and delivery of this Agreement, nor the performance by the
Purchaser of its obligations hereunder, nor the consummation of the transactions
contemplated hereby will: (a) violate any provision of its Articles of
Incorporation or Bylaws or any financing or other agreements to which Purchaser
is a party; (b) require the agreement or consent of any other party; or (c)
violate any material statute or law or any judgment, decree, order, regulation
or rule of any court or governmental authority to which Purchaser is subject;
except in the case of clauses (b) and (c) for violations, conflicts or defaults
which individually or in the aggregate would not materially adversely hinder or
impair the consummation of the transactions contemplated hereby.

         3.5 ACKNOWLEDGMENT BY PURCHASER. Purchaser acknowledges that neither
Seller nor Shareholder makes any representations or warranties except as
expressly provided in Article 2 above.

                                       25
<PAGE>   27
                                    ARTICLE 4
                        CERTAIN COVENANTS OF THE PARTIES

         4.1  COVENANTS OF SELLING PARTIES.

              (a) CONDUCT OF BUSINESS. Except as may be otherwise contemplated
by this Agreement or required by any of the documents listed in the schedules
attached to this Agreement or except as Purchaser may otherwise consent to in
writing (which consent shall not be unreasonably withheld or delayed), from the
date of this Agreement and through the Closing, Selling Parties shall (1) in all
material respects, operate the Business only in the ordinary course; (2) use
reasonable efforts to preserve intact Seller's business organization; (3)
maintain the Included Assets in good operating condition and repair to enable
Seller to conduct the Business in all material respects in the manner in which
the Business is currently conducted except for maintenance required by reason of
fire, flood, earthquake, or other acts of God; (4) continue, or cause to be
continued, all material existing insurance policies (or comparable insurance) in
full force and effect; (5) not increase the rate or terms of compensation
payable or to become payable by Seller to its directors, officers, or key
employees, and not increase the rate or terms of any bonus, pension, or other
employee benefit plan covering any of their respective directors, officers, or
key employees, except in each case increases occurring in the ordinary course of
business in accordance with its customary practices (including normal periodic
performance reviews and related compensation and benefits increases); and (6)
use its reasonable efforts to preserve its relationships with its lenders,
suppliers, customers, licensors and licensees, and others having material
business dealings with Seller such that the Business will not be materially
impaired.

              (b) COOPERATION WITH PURCHASER. Commencing on the date of
execution of this Agreement and continuing through the Closing, Selling Parties
shall grant Purchaser complete and unrestricted access to the Poway Facility,
Seller's Books and Records, and Seller's employees, including without limitation
those employees of Seller who fall within the definition of "Seller's
Responsible Employees." In the course of meeting with Seller's employees,
Purchaser shall have the right to interview and identify employees whom
Purchaser would be interested in hiring to work for Purchaser after the Closing,
either on a temporary or permanent basis. Purchaser agrees to exercise its
rights hereunder in a reasonable manner so as to minimize disruption of Seller's
ongoing business operations. Selling Parties shall use commercially reasonable
efforts to obtain requisite waivers and consents of private parties and
governmental agencies to the assignment of Customer Contracts and/or
Governmental Airworthiness Approvals from Seller to Purchaser.

         4.2 COVENANT OF PURCHASER. From the date of this Agreement and through
the Closing, Purchaser shall use its best efforts, and shall cooperate with
Seller, to secure all necessary consents, approvals, authorizations, exemptions,
and waivers from third parties, including without limitation the FAA and the
CAA, as may be required in order to enable Purchaser to effect the transactions
contemplated in this Agreement. Purchaser will use its best efforts to cause the
consummation of such transactions in accordance with the terms and conditions of
this Agreement.

                                       26
<PAGE>   28
         4.3  JOINT COVENANTS OF SELLER AND PURCHASER.

              (a)  LISTING. As promptly as practicable after execution of this
Agreement, Seller and Purchaser shall cooperate with each other to allow
Purchaser and its representatives access to Seller's facilities, as follows:

                   (1) Purchaser and Seller shall cooperate with Ernst & Young,
LLP in conducting a physical inventory count of the Included Inventory and
valuation of same in accordance with Exhibits "B" and "C" which will be used for
the Pre-Closing Balance Sheet and such other reasonable procedures as may be
mutually agreed on; provided, however, that the inventory count and valuation
will be done without unreasonable interference with the Business and without
material disruption to the ongoing conduct of the Business;

                   (2) Purchaser shall review organizational charts, personnel
records, and conduct interviews with personnel as reasonably necessary to make
its determination with respect to the employees whom it shall retain during the
Transition Period and/or thereafter; and

                   (3) Selling Parties shall assist Purchaser in ascertaining
the location of all the Included Assets and verifying the quantity and condition
of same.

              (b)  PUBLIC DISCLOSURE. Except as may otherwise be required by
applicable securities laws of the United States and the Republic of France,
Selling Parties and Purchaser shall first consult with each other and cooperate
with one another before issuing any press releases or otherwise making public
statements with respect to the transactions contemplated by this Agreement. In
recognition of the Effective Date and to allow Purchaser the opportunity for
access to the Poway Facility for transition planning and employee
communications, the parties agree that no public disclosure of this Agreement or
the transactions contemplated herein shall occur until after the close of the
NYSE on January 3, 2000.

              (c)  HSR ACT FILING. As promptly as practicable after the
execution of this Agreement, Seller and Purchaser shall cooperate with each
other to prepare all filings required to be made by them to consummate the
transactions contemplated by this Agreement, specifically including all filings
required under the HSR Act.

                                    ARTICLE 5
                   CONDITIONS TO CLOSING IN FAVOR OF PURCHASER

         5.1 GENERAL. The obligation of Purchaser under this Agreement to
purchase the Included Assets and to assume the Assumed Liabilities is subject to
the satisfaction, at or before the Closing, of all the conditions set out below
in this Article 5. Purchaser may waive any or all of these conditions in whole
or in part without prior notice; provided, however, that no such waiver of a
condition shall constitute a waiver by Purchaser of any of Purchaser's other
rights or remedies, at law or in equity, if Selling Parties are in default of
any of their representations, warranties, or covenants contained in this
Agreement. Any obligations of Purchaser to consummate the purchase of the

                                       27
<PAGE>   29
Included Assets and the assumption of the Assumed Liabilities are subject to the
fulfillment (or the written waiver thereof by Purchaser) of each of the
conditions precedent set forth below in this Article 5.

         5.2  PURCHASER'S CONDITIONS PRECEDENT TO CLOSING. The conditions
precedent to the Closing in favor of Purchaser shall consist of the following:

              (a) PERFORMANCE BY SELLING PARTIES. Each of the representations
and warranties of Selling Parties contained in Article 2 shall be true, accurate
and complete in all material respects. In addition, Selling Parties shall, on or
before the Closing, have substantially performed all of their covenants and
obligations under this Agreement which by the terms of this Agreement are to be
performed on or before the Closing. All actions necessary to authorize the
execution, delivery, and performance of this Agreement by Selling Parties and
the consummation of the transactions contemplated hereby shall have been duly
and validly taken by the board of directors of Selling Parties. Selling Parties
shall have obtained all authorizations, consents, and permits of others required
to permit the consummation of the transactions contemplated in this Agreement.
No temporary restraining order, preliminary injunction or permanent injunction
or other order preventing the consummation of the transactions contemplated by
this Agreement shall have been issued by any federal or state court and remain
in effect.

              (b) COMPLIANCE WITH THIS AGREEMENT. Selling Parties shall have
substantially performed and complied with all covenants and conditions required
by this Agreement to be performed and complied with by them prior to or at the
Closing.

              (c) APPROVAL OF DOCUMENTS. All actions, proceedings, instruments,
and documents required to carry out this Agreement or any undertaking incidental
thereto, and all other related legal matters shall be reasonably satisfactory in
form and substance to Purchaser and its legal counsel.

              (d) NO LEGAL PROCEEDINGS. No action, suit, or other proceeding
shall be instituted or, so far as may be known to Purchaser or Selling Parties,
threatened before any court or governmental agency in which it is sought to: (1)
restrain, prohibit, invalidate, or set aside (in whole or in part) the
transactions contemplated by this Agreement; (2) affect the right of Purchaser
to operate or control the Business or to use and enjoy the Included Assets after
the Closing; or (3) obtain damages or other relief in connection with the
consummation of the transactions contemplated by this Agreement which, if
decided adversely, could reasonably have a material adverse affect on Purchaser.

              (e) DELIVERY OF DOCUMENTS. Selling Parties shall have delivered to
Escrowholder, on or before the Target Closing Date, the Closing Documents and
such other documents and instruments as may be required to be delivered by
Seller in order to complete the transactions contemplated in this Agreement.

              (f) NO MATERIAL ADVERSE CHANGE. During the period between the date
of this Agreement and the Closing, Seller will have not sustained any material
adverse change in its financial

                                       28
<PAGE>   30
condition, liabilities, assets, customer order backlog, production backlog,
business or prospects that would materially affect Purchaser's ability to
conduct the Business after the Closing, it being agreed that no such change
shall be deemed to be a "material adverse change" if the parties agree, through
mutually good faith negotiations, that it can be corrected by an adjustment of
the Purchase Price so as to maintain the parties' respective economic
expectations under this Agreement.

              (g) CONSENTS AND APPROVALS. The lessors under the Equipment
Leases, the parties (other than Selling Parties) to any contract or agreement to
which Seller is a party or subject, and any governmental or regulatory body or
authority having jurisdiction over Selling Parties to the extent that their
consent or approval is required or necessary under the pertinent lease,
contract, agreement, or other document or instrument, or under applicable
orders, laws, rules, or regulations, for the consummation of the transactions
contemplated hereby in the manner herein provided, shall have granted such
consent or approval; provided, however, that (1) FAA or CAA approval of or
authorization for the transfer of any FAA or CAA certificate or license and (2)
consents of Seller's customers under the Customer Contracts shall not be a
condition to the Closing.

              (h) APPROVAL OF COUNSEL; CORPORATE MATTERS. All actions,
proceedings, resolutions, instruments, and documents required to carry out this
Agreement or incidental hereto and all other related legal matters shall have
been approved by Hillyer & Irwin, counsel for Purchaser, in the exercise of
their reasonable judgment. Selling Parties shall also have delivered to
Purchaser such other documents, instruments, certifications, and further
assurances as such counsel may reasonably require.

              (i) CORPORATE APPROVAL. The execution and delivery of this
Agreement by Selling Parties, and the performance of its covenants and
obligations under it, will have been duly authorized by all necessary corporate
action, and Purchaser will have received copies of all resolutions pertaining to
that authorization, certified by the corporate secretary of each Selling Party.

              (j) ASSIGNMENT OF INTELLECTUAL PROPERTY. The Selling Parties shall
assign all of the Intellectual Property to Purchaser. The patent assignment
instruments shall be in form satisfactory to legal counsel for Purchaser.

              (k) PURCHASE PRICE ALLOCATION. The parties shall have agreed on
the allocation of the Purchase Price as provided in Section 1.3 above.

              (l) NON-COMPETITION AGREEMENT. Each of the Selling Parties shall
have executed and delivered to Purchaser a Non-Competition Agreement
substantially in the form of Exhibit "F" hereto. Such agreement shall provide,
among other things, that Selling Parties shall be prohibited from soliciting
employees of Purchaser to work for Selling Parties.

              (m) WARN ACT NOTICE. Promptly after the Effective Date, Seller
shall grant Purchaser unrestricted access to Seller's Poway Facility in order to
enable Purchaser to identify before the Balance Sheet Cut-Off Date - the
employees of Seller whom Purchaser desires to hire after the Closing. See also
Section 4.1(b). After Seller receives Purchaser's list of employees whom
Purchaser desires to hire, Seller shall give its employees appropriate notices
under the WARN Act

                                       29
<PAGE>   31
at least one (1) business day before the Closing pursuant to Section 7.10 below.

              (n)  PHASE I ESA. Seller has previously provided Purchaser with a
copy of a Phase I environmental site assessment for the Poway Facility which
shall be reasonably satisfactory to Purchaser in form and substance.

              (o)  GOVERNMENTAL APPROVALS. To the extent required, Purchaser
shall have received confirmation that all necessary licenses, certifications,
permits and approvals relating to the Business issued by federal, state and
local governmental units (excluding the Governmental Airworthiness Approvals)
listed on Schedule 1.1(e)) shall be in effect after the Closing so as to permit
Purchaser to continue to operate in the Poway Facility during the Transition
Period.

              (p)  UCC SEARCH. Seller shall have delivered to Purchaser at least
five (5) business days before the Target Closing Date a UCC lien search report
prepared by a recognized reporting service with respect to liens, judgment
liens, tax liens, and other mortgages and encumbrances that may be filed against
any of the Included Assets. Such report shall be dated no more than thirty (30)
days preceding the Target Closing Date. Seller shall, at the Closing, arrange
for the application of the Cash Payment to the payment of any secured creditors
of Seller and deliver to Purchaser in connection therewith copies of payoff
demands from all such secured creditors. Selling Parties shall furnish evidence
to Purchaser that all such liens are promptly released after the Closing. In the
event that Purchaser ascertains that any such lien remains unpaid more than
thirty (30) days after the Closing, Purchaser shall have the right to either
demand that any Selling Party discharge the subject lien or pay the amount
required to discharge the subject lien. The Selling Parties shall be jointly and
severally liable to reimburse any amount so paid by Purchaser without regard to
the Indemnity Cap.

              (q)  BID AND PROPOSAL LIST. Seller has previously delivered to
Purchaser the bid and proposal list for sales of the Products pursuant to
Section 2.40 above.

              (r)  OPINION OF LEGAL COUNSEL. Purchaser shall have been furnished
with the opinion of legal counsel to Simula, dated as of the Closing, to the
effect that:

                   (1) Selling Parties are corporations duly organized, validly
existing, and in good standing under the laws of the State of Arizona with full
power and authority to enter into and perform their obligations under this
Agreement, and are qualified to do business in any jurisdiction where such
qualification is required.

                   (2) Selling Parties have full corporate power and authority
to enter into and consummate the transactions contemplated by this Agreement.

                   (3) All proceedings required to be taken on the part of
Selling Parties to authorize them to enter into, carry out and fully comply with
the provisions of this Agreement, the Closing Documents, and any other documents
to be executed by any Selling Party, and to transfer and deliver the Included
Assets, have been duly, validly and properly taken. The execution, delivery and
performance of the foregoing agreements of Selling Parties do not violate any
provision of the

                                       30
<PAGE>   32
Articles of Incorporation or Bylaws of Selling Parties, or any agreements to
which any Selling Party is bound.

                   (4) This Agreement and all other agreements to be executed by
the Selling Parties pursuant hereto are valid and legally binding obligations of
Selling Parties, enforceable in accordance with their respective terms except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization and similar laws relating to or affecting the rights and remedies
of creditors generally and by the general principles of equity.

                   (5) Except as to the matters described in Schedule 2.6, no
Selling Party is a party to any pending or, to the knowledge of such counsel,
threatened litigation, proceedings, claim or governmental investigation or audit
which may either (1) materially adversely affect the Included Assets or impair
the Purchaser's right or ability to operate the Business in the manner presently
conducted by Seller, or (2) seek to prevent, restrain or interfere with the
performance by Selling Parties of this Agreement.

              (s) HSR ACT CLEARANCE. The applicable waiting period under the HSR
Act with respect to the transactions contemplated by this Agreement shall have
expired or shall have otherwise terminated without the U.S. Department of
Justice or the Federal Trade Commission taking any action to delay or block the
transactions contemplated in this Agreement.

              (t) PRODUCT LIABILITY INSURANCE TAIL COVERAGE. Seller shall have
provided Purchase with evidence that Seller has purchased the product liability
tail coverage specified in Section 7.7 below.

                                    ARTICLE 6
                CONDITIONS TO CLOSING IN FAVOR OF SELLING PARTIES

         Selling Parties' obligation to consummate this Agreement and the
transactions contemplated by this Agreement is subject to the fulfillment (or
the written waiver thereof by Selling Parties) of each of the following
conditions precedent on or before the Closing, as specified below:

         6.1 PERFORMANCE BY PURCHASER. Each of the representations and
warranties of Purchaser contained in Article 3 shall be true and correct.
Purchaser shall, on or before the Closing, have performed all of its obligations
under this Agreement and the Funding Agreement, which by the terms of this
Agreement are to be performed on or before the Closing. All actions necessary to
authorize the execution, delivery, and performance of this Agreement by
Purchaser and the consummation of the transactions contemplated hereby and
thereby shall have been duly and validly taken by Purchaser. Purchaser shall
have obtained all authorizations, consents, and permits of others required to
permit the consummation of the transactions contemplated in this Agreement.

         6.2 ABSENCE OF LITIGATION. No action, suit, or proceeding before any
court or any governmental body or authority, pertaining to the transactions
contemplated in this Agreement or to its consummation, will have been instituted
or threatened on or before the Closing. No governmental

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<PAGE>   33
authority shall have asserted that the transactions contemplated herein
constitute a violation of law or give rise to liability on the part of any
Selling Party.

         6.3 APPROVAL OF PROCEEDINGS. All actions, proceedings, instruments, and
documents required to carry out this Agreement and all other related legal
matters shall be reasonably satisfactory in substance to Seller and its counsel.

         6.4 DELIVERY OF DOCUMENTS AND FUNDS. Purchaser shall have delivered to
Escrowholder on or before the Closing all documents to be signed by both
Purchaser and any Selling Party, including without limitation the Closing
Documents and the Cash Payment.

         6.5 TERMINATION OF HSR ACT WAITING PERIOD. The applicable waiting
period under the HSR Act with respect to the transactions contemplated by this
Agreement shall have expired or shall have otherwise terminated without the U.S.
Department of Justice and the Federal Trade Commission taking action to delay or
block the transactions contemplated by this Agreement.

         6.6 LICENSE BACK OF PATENT RIGHTS. Purchaser and Shareholder shall have
entered into a Patent License Agreement substantially in the form of Exhibit H
hereto pursuant to which Shareholder and its affiliates are granted a license to
utilize the 16G load limiting technology covered by the Shared Use Patent in
accordance with the Patent License Agreement.

         6.7 TRANSITION SUPPORT AGREEMENT. Purchaser and Seller shall have
entered into the Transition Support Agreement. The Transition Support Agreement
shall be substantially in the form of Exhibit I attached hereto.

                                    ARTICLE 7
                              POST CLOSING MATTERS

         7.1  POST-CLOSING COVENANTS OF SELLING PARTIES. All the obligations to
be performed by Selling Parties after the Closing pursuant to this Article 7
shall be deemed to be covenants for which Selling Parties shall be jointly and
severally liable.

         7.2  SURVIVAL OF REPRESENTATIONS AND WARRANTIES. The representations
and warranties of the parties contained in this Agreement shall survive the
Closing and continue in full force and effect until the last day of the
Indemnity Period.

         7.3  COLLECTION OF ACCOUNTS RECEIVABLE.

              (a) GUARANTY OF PAYMENT. Selling Parties shall guarantee to
Purchaser that the unpaid balance of all Accounts Receivable of Seller acquired
by Purchaser at the Closing will be paid within a collection period (the
"Collection Period") of one hundred eighty (180) days following the Closing.
Purchaser shall diligently exercise customary efforts to collect the Accounts
Receivable in the ordinary course of business during the Collection Period. It
is agreed that if Purchaser reduces or compromises any Account Receivable
without a reasonable basis for doing so which arises out of

                                       32
<PAGE>   34
(1) problems with respect to Products sold by Seller or (2) errors in invoice
preparation, Selling Parties shall have no obligation to pay the amount of the
reduction or compromise granted by Purchaser. Any Accounts Receivable still
outstanding at the end of the Collection Period shall be assigned by Purchaser
back to Seller and, within ten (10) business days thereafter, Selling Parties
shall pay to Purchaser the amount of the unpaid Accounts Receivable, in cash,
less (1) the amount of the reserve for doubtful accounts reflected in the books
of Seller on the Closing, and (2) the amount of any Accounts Receivable written
off as uncollectible by Seller before the Closing but actually paid to Purchaser
during the Collection Period. If more than one invoice is outstanding for any
customer, the "first-in, first out" principle will be applied in determining the
invoice to which a payment relates, unless the payment by its terms specifies or
clearly indicates the invoice to which it relates.

              (b) PURCHASER'S COLLECTION EFFORTS. Purchaser will exercise prompt
and diligent efforts to collect all unpaid Accounts Receivable before the end of
the Collection Period; provided, however, that Purchaser will not be required to
initiate legal proceedings for this purpose. Purchaser will cause all unpaid
Accounts Receivable to be assigned to Seller, without recourse, at the time of
Seller's payment of such Accounts Receivable.

              (c) CUSTOMER NOTICES. If requested by Purchaser, Seller shall
cooperate with Purchaser in installing so-called "lock boxes" at all of
Purchaser's banks so as to insure that payments made by customer of Seller after
the Closing are paid to Purchaser and not Seller. After the Closing, Purchaser
and Seller shall send a joint notice (signed by both Seller and Purchaser) to
all of Seller's customers and vendors informing them of the Closing and
instructing them about procedures to be followed in making payment to Purchaser
and/or submitting invoices for payment by Purchaser. Such notices shall be
prepared by Purchaser and sent out according to a schedule established by
Purchaser.

         7.4  DISCHARGE OF BUSINESS OBLIGATIONS. From and after the Closing,
except for the Assumed Liabilities, Seller shall pay and discharge, in
accordance with its past practices but not less than on a timely basis, all of
its obligations and liabilities in respect of the Business, its operations or
the Included Assets and the properties used in the business, including without
limitation any liabilities or obligations to employees, trade creditors, and
customers of the Business.

         7.5  MAINTENANCE OF BOOKS AND RECORDS. Selling Parties shall preserve
until the third (3rd) anniversary of the Closing Date all records possessed or
to be possessed by any such party relating to any of the Included Assets, the
Assumed Liabilities, or the Business prior to the Closing. After the Closing,
where there is a legitimate purpose, such party shall provide the other parties
with access, upon prior reasonable written request specifying the need therefor,
during regular business hours, to (a) the officers and employees of such party
and (b) the books of account and records of such party, but, in each case, only
to the extent relating to the Included Assets, the Assumed Liabilities, or the
Business prior to the Closing, and the other parties and their representatives
shall have the right to make copies of such books and records; provided,
however, that the foregoing right of access shall not be exercisable in such a
manner as to interfere unreasonably with the normal business operations of such
party. Such records may nevertheless be destroyed by a party if such party sends
to the other parties written notice of its intent to destroy records, specifying
with particularity the contents of the records to be destroyed. Such records may
then be destroyed after the thirtieth (30th) day after such notice is given
unless another party objects to the destruction in

                                       33
<PAGE>   35
which case the party seeking to destroy the records shall deliver such records
to the objecting party. After the Closing, Selling Parties and Purchaser shall
have the right to copy any financial records of Seller.

         7.6 TITLE TRANSFER DOCUMENTS. From and after the Closing, Selling
Parties shall promptly refer all inquiries with respect to ownership of the
Included Assets to Purchaser. In addition, Selling Parties shall execute such
documents and financing statements as Purchaser may request from time to time to
evidence transfer of the Included Assets to Purchaser, including any necessary
assignments of financing statements affecting the Included Assets.

         7.7 POST-CLOSING PRODUCT LIABILITY CLAIMS. In the event that a product
liability claim is asserted after the Closing with respect to Products which
were sold by Seller at any time before the Closing, Seller shall be solely
responsible for paying all such claims and Seller shall defend, indemnify, and
hold Purchaser harmless from any loss, cost, or expense, including without
limitation, reasonable attorneys' fees, arising out of any such claims. All
other product liability claims shall be the sole responsibility of Purchaser and
Purchaser shall indemnify Selling Parties from all losses, costs or expenses
associated therewith in accordance with Article 8. Seller shall purchase an
aviation products liability "tail coverage" insurance policy with limits of
liability of at least Two Million Dollars ($2,000,000) per occurrence and a term
of at least four (4) years unless such policy is duplicative of the insurance in
force on the date hereof for all relevant time periods during which Seller has
been selling the Products.

         7.8 PRODUCT WARRANTY CLAIMS. Seller and Purchaser have agreed on an
offset for warranty claims for Products sold by Seller before the Closing in the
amount of $1,721,912. Notwithstanding anything in this Agreement to the
contrary, it is agreed that if the actual amount of warranty claims experienced
by Purchaser after the Closing during the Indemnity Period exceeds the foregoing
offset amount, Purchaser shall be entitled to assert claims against Selling
Parties for any such excess warranty claims, subject, however, to the Indemnity
Cap. Accordingly, Purchaser shall be solely responsible for handling (a) all
unresolved warranty claims asserted by purchasers of the Products before the
Closing, and (b) all warranty claims for Products sold by Seller which are
asserted after the Closing. In addition, Purchaser shall be solely responsible
for all warranty claims asserted after the Closing with respect to Products sold
by Purchaser. Purchaser shall administer warranty claims for the Products in a
business-like manner in accordance with Purchaser's usual business practices
without unwarranted concessions or compromises for marketing purposes.

         7.9 TRANSITION SUPPORT AGREEMENT. After the Closing during the
Transition Period, Selling Parties shall assist Purchaser in the orderly
transition of Seller's manufacturing operations from Poway, California to the
Weber Aircraft, Inc. facility in Gainesville, Texas. All of the respective
obligations of the parties during this period shall be set out in a Transition
Support Agreement substantially in the form of Exhibit I. Among other things,
the Transition Support Agreement will provide that:

              (a) Purchaser shall be obligated to pay the lease obligations of
Seller under Seller's lease for the Poway Facility for a period of six (6)
months on the same terms and conditions stated in Seller's lease for such
facility;

                                       34
<PAGE>   36
              (b) Selling Parties shall provide necessary corporate support for
all computer systems used in the Business during the Transition Period;

              (c) Seller shall grant Purchaser a license to use such Assets
which are to be utilized by Purchaser during the Transition Period, but which
are not part of the Included Assets;

              (d) Effective as of the Closing, Purchaser shall become the
employer of the individuals whom it elects to hire. Seller will cooperate in
connection with the necessary transition of employees from its payroll to the
payroll and benefits systems of Purchaser.

              (e) Actual out of pocket facilities costs, and other costs,
incurred by Seller on behalf of Purchaser during the Transition Period will be
paid by Purchaser without mark up. However, property, plant, equipment, tooling,
and leasehold improvements used by Purchaser during the Transition Period but
not purchased as part of the Included Assets shall be leased by Purchaser from
Seller for a rental factor equal to one hundred fifteen percent (115%) of the
applicable depreciation cost during the Transition Period. This 115% rental
factor shall not be applied to the rent or other amounts due under Seller's
lease for the Poway Facility.

         7.10 WARN ACT COMPLIANCE. Seller shall be responsible for giving all
notices required under the WARN Act (29 U.S.C. Section 2101, et seq.) to be
given to Seller's employees and for paying all costs that may arise thereunder.
The WARN Act notice shall be given not earlier than before the Closing. See
Section 5.1(m). Any costs that may be imposed on Purchaser with respect to
Seller's failure to comply with the WARN Act compliance shall not be subject to
the Indemnity Cap.

         7.11 PAYMENTS TO SELLER'S EMPLOYEES. In addition to payments due under
the WARN Act, Seller shall be solely responsible for paying all amounts due its
terminated employees under applicable law, including without limitation
severance pay, accruals for paid time off, etc., and Purchaser shall have no
responsibility therefor.

         7.12 NO BANKRUPTCY FILING. Selling Parties agree that the transactions
contemplated in this Agreement do not constitute a "fraudulent transfer" within
the meaning of 11 U.S.C. Section 548. Shareholder covenants and agrees that it
will not cause or permit Seller to file a voluntary or involuntary bankruptcy
petition at any time during the twelve (12) months following the Closing.

         7.13 UNDISCLOSED COMMITMENTS TO SELLER'S CUSTOMERS. In the event that
after the Closing any customer of Seller asserts a claim against Purchaser for a
price or other concession relating to the sale of the Products (or spare parts
therefor) made before the Closing which Selling Parties failed to disclose to
Purchaser before the Closing, Selling Parties shall promptly resolve the claim,
at Selling Parties' sole cost and expense, in a commercially reasonable manner
so that the valuable business relationship between Purchaser and its customer is
maintained. Selling Parties shall promptly notify Purchaser in writing of any
such claim that may be asserted by a customer of Seller. A final determination
(through arbitration or litigation) that any such claim by a customer of Seller
is valid shall constitute a breach of Seller's representations and warranties.

                                       35
<PAGE>   37
         7.14 PAYMENT OF SIMULA PAYABLES. Purchaser shall pay the Simula
Payables within two (2) business days after the date on which the Post-Closing
Accounting Adjustments are made, subject, however, to Purchaser's offset rights
under Section 0.3(hh)(2) above.

         7.15 CHANGE OF SELLER'S CORPORATE NAME. Purchaser shall have the
exclusive right to use the mark "Airline Interiors" after the Closing.
Accordingly, Seller agrees to change its corporate name no later than thirty
(30) days after the Closing.

         7.16 POST-CLOSING ACCOUNTING ADJUSTMENTS.

              (a) GENERAL. The parties shall determine the amount of the
Post-Closing Accounting Adjustments in good faith in a manner consistent with
this Agreement as soon as practicable after the Closing, but no later than
thirty (30) days thereafter. After Purchaser and Selling Parties agree on the
amount of the Post-Closing Accounting Adjustments, they will promptly make
appropriate adjustments to the Cash Payment. If it is determined that Purchaser
owes Seller additional funds, Purchaser shall pay the amount due within ten (10)
days after the Post-Closing Accounting Adjustments are agreed on. If it is
determined that Seller owes Purchaser funds because of an overpayment of the
Cash Payment, Purchaser shall be entitled to offset the amount so owed Purchaser
by Seller against the amount of the Simula Payables. If the amount of the
Post-Closing Accounting Adjustments that may be due Purchaser exceeds the amount
of the Simula Payables, Simula shall pay any amount due Purchaser within five
(5) business days after demand.

              (b) INVENTORY COUNT ADJUSTMENTS. As part of the Post-Closing
Accounting Adjustments, the parties shall verify the parts count used in
determining the valuation of the Included Inventory as shown on the Pre-Closing
Balance Sheet in the manner provided in this Section 7.16(b). Immediately after
the Closing, Purchaser shall conduct a physical inventory (utilizing procedures
approved by Purchaser's outside auditors) of the Included Inventory in order to
verify that the inventory count used to fix the value of same on the Pre-Closing
Balance Sheet was accurate as of the Closing. Selling Parties' representatives
may participate in this post-Closing inventory count. If it is later determined
that the assumed physical inventory count used to prepare the Pre-Closing
Balance Sheet was in error, an appropriate adjustment shall be made to the Cash
Payment at the time specified in Section 7.16(a), it being agreed that Purchaser
shall have, if applicable, the same right of offset against the Simula Payables
under this Section 7.16(b) as provided in the last sentence of said section.

                                    ARTICLE 8
                                 INDEMNIFICATION

         8.1 INDEMNIFICATION BY SELLING PARTIES. The indemnification obligations
of Selling Parties under this Section 8.1 are in addition to any other
indemnification obligations which they may have under other provisions of this
Agreement. Selling Parties agree to defend, indemnify, and hold harmless
Purchaser (and companies owned by or under common control of Zodiac, S.A.), and
their respective employees, representatives, officers, directors, and agents
from and against any costs, losses, damages, liabilities, and expenses except as
disclosed in this Agreement and the schedules

                                       36
<PAGE>   38
hereto (including without limitation interest, penalties, and reasonable
attorneys' fees) of any kind or nature whatsoever which may be sustained or
suffered by Purchaser by reason of any claim, action, or proceeding asserted or
instituted and based upon or involving (a) a breach of any representation,
warranty, covenant, or obligation of Seller or Shareholder in this Agreement or
in any schedule, exhibit, certificate, or financial statement delivered
hereunder or in connection herewith, or (b) the Excluded Liabilities
(collectively, the "Indemnifiable Claims").

         8.2 INDEMNIFICATION BY PURCHASER. Purchaser agrees to defend,
indemnify, and hold harmless Selling Parties, their respective employees,
representatives, officers, directors, and agents from and against any costs,
damages, liabilities, losses, lawsuits, and expenses (including without
limitation interest, penalties, and reasonable attorneys' fees) of any kind or
nature whatsoever which may be sustained or suffered by Selling Parties by
reason of any claim, action, or proceeding asserted or instituted and based upon
or involving (a) a breach of any representation, warranty, covenant, or
obligation made by Purchaser in this Agreement or (b) the Assumed Liabilities.

         8.3 NOTICE; DEFENSE OF CLAIMS. This Section 8.3 shall relate to the
handling of Indemnifiable Claims. Purchaser shall have the right to control the
defense of any third-party claim, action, or proceeding filed against it with
respect to any Indemnifiable Claims. Purchaser shall give prompt written notice
to the Selling Parties of each Indemnifiable Claim. Such notice shall be given
no later than thirty (30) days after Purchaser receives notice or actual
knowledge thereof, and shall specify the amount and nature of the claim, and of
any other relevant information. Selling Parties shall have the right to
participate at their own expense in the defense of any such matter or its
settlement, if, in the opinion of Purchaser, the Business acquired by Purchaser
would not be impaired thereby. Purchaser may authorize the Selling Parties, if
they so desire, to take over the defense of such matter so long as such defense
is handled in a diligent and expeditious manner. Purchaser and Selling Parties
agree to render to each other such assistance as they may reasonably require of
each other in order to ensure the proper and adequate defense of any such claim,
action, or proceeding.

         8.4 PAYMENT OF INDEMNIFIABLE CLAIMS. Indemnifiable Claims shall be paid
or otherwise satisfied by the Selling Parties, within ninety (90) days after
notice of a bona fide Indemnifiable Claim is given to Selling Parties by
Purchaser, unless such claim is disputed pursuant to Section 8.5 below.

         8.5 DISPUTE RESOLUTION. If Selling Parties or Purchaser dispute their
liability with respect to any Indemnifiable Claim, such dispute, or any other
dispute in connection with this Article 8 shall be resolved by arbitration
pursuant to Section 10.12 below.

         8.6 LIMITATIONS ON OBLIGATIONS TO INDEMNIFY.

              (a) THRESHOLD. Except in the event of claims based upon fraud,
neither Selling Parties nor Purchaser shall have any obligation to indemnify the
indemnitee in respect of any single Loss or Losses, the aggregate amount of
which is equal to or less than Seventy-Five Thousand Dollars ($75,000). If any
Loss or Losses exceeds that amount, the indemnifying party shall be obligated to
indemnify the indemnified party for the full amount of the Loss or Losses on a
"dollar one" basis. In other words, if the amount of a Loss were to exceed
Seventy-Five Thousand Dollars

                                       37
<PAGE>   39
($75,000), the indemnifying party would be obligated to indemnify the
indemnified party for the full amount of the Loss, not just the portion in
excess of Seventy-Five Thousand Dollars ($75,000).

              (b) MAXIMUM AMOUNT AND TIME LIMIT. Neither Selling Parties nor
Purchaser shall have any obligation to indemnify the other in respect of Losses
exceeding the Indemnity Cap in the aggregate, or in respect of any Loss, a claim
for which is made after the end of the Indemnity Period.

                                    ARTICLE 9
                            TERMINATION OF AGREEMENT

         9.1 TERMINATION OF AGREEMENT. This Agreement and the transactions
contemplated hereby may be terminated at any time prior to the Closing Date as
follows:

              (a) By mutual written consent of Purchaser and Seller;

              (b) By any party if it reasonably determines that the purchase of
the Included Assets has become impractical by reason of the institution by
state, local or federal governmental authorities or any other person or entity
of any material litigation, arbitration, grievance or other proceedings relating
to this transaction against any of the parties, and notifies the other parties
in writing of such determination;

              (c) By any party if the transactions contemplated in this
Agreement have not closed on or before the Closing Deadline through no fault of
either party, by giving the other party at least ten (10) business days prior
written notice of termination; or

              (d) By Purchaser or Selling Parties pursuant to Section 9.2 below,
due to the failure to obtain HSR Act clearance on or before the Closing
Deadline. If the parties mutually agree, the Closing Deadline shall be extended
for a reasonable period of time in order to permit the parties to pursue
regulatory appeals with governmental agencies having jurisdiction over the HSR
Act approval process.

         9.2 FAILURE TO OBTAIN HSR ACT CLEARANCE. Notwithstanding anything in
this Agreement to the contrary, Purchaser and Selling Parties shall have the
right to terminate this Agreement and cancel the Escrow if the Closing does not
occur before the Closing Deadline because the parties fail to obtain HSR Act
clearance under Section 5.2(s) above. A party may elect to cancel this Agreement
by giving written notice (the "Termination Notice") to the other parties and
Escrowholder at any time after the Closing Deadline. Upon receipt of the
Termination Notice, Escrowholder shall refund to Purchaser all funds then held
in the Escrow, including accrued interest, and return all documents in the
Escrow to the parties who had deposited same. If a Termination Notice is sent,
Purchaser shall promptly vacate the Poway Facility and return to Seller all
property of Seller which may then be in Purchaser's possession.

                                       38
<PAGE>   40
                                   ARTICLE 10
                            MISCELLANEOUS PROVISIONS

         10.1 NOTICES.

              (a) METHOD OF DELIVERY. Any notice, request, demand, consent,
approval or other communication (hereafter "notice") required or permitted under
this Agreement or by law shall be in writing and delivered by any of the
following means: (1) personally delivering the notice to a senior officer or
duly authorized representative of the other party, (2) depositing the notice in
the United States mail, postage prepaid, duly certified (return-receipt
requested), (3) sending the notice by a commercial overnight delivery service
(such as FedEx) which maintains delivery records, or (4) sending the notice by
electronic facsimile or telecopier ("fax") (with the sending party retaining
evidence of the time and date of transmission). Confirmations of any notices
sent by fax shall be sent by mail as provided above.

              (b) ADDRESSES. Notices shall be addressed as follows:

              If to Seller:        Airline Interiors, Inc.
                                   12325 Kerran Street
                                   Poway, CA 92064
                                   Attn: Donald Rutter
                                   Fax No.: (858) 748-0590

              With copies to:      Simula, Inc.
                                   2700 North Central Avenue
                                   Suite 1100
                                   Phoenix, AZ 85004
                                   Attn: Bradley P. Forst, Esq.
                                   Fax No.: (602) 631-9005

              If to Purchaser:     Weber Aircraft, Inc.
                                   2000 Weber Drive
                                   Gainesville, Texas 76240
                                   Attn: Michel Labarre
                                   Fax: (940) 668-4853

              With copies to:      Zodiac, S.A.
                                   2, rue Maurice Mallet
                                   92137, Issy-les-Moulineaux Cedex
                                   France
                                   Attn:  Jean-Jacques Jegou
                                   Fax No: (011-331) 41 23 23 10

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<PAGE>   41
                                   Hillyer & Irwin
                                   550 West C Street, 16th Floor
                                   San Diego, CA 92101
                                   Attn: William A. Reavey, Esq.
                                   Fax No.: (619) 595-1313

Any party may, from time to time, by written notice to the other, designate a
different address which shall be substituted for that specified above. It is
agreed that separate notices need not be sent to Simtec. Notices sent to Simula
shall be deemed to have been sent to Simtec.

              (c) EFFECTIVENESS. All notices shall be deemed effective upon
receipt. If personally delivered, notices shall be deemed received at the time
of delivery. If sent by mail, notices shall be deemed fully delivered and
received three (3) business days after the date of the postmark on the certified
mail receipt. If sent by commercial overnight delivery service, notices shall be
deemed fully delivered and received one (1) business day after the date of
deposit with such commercial overnight delivery service. If sent by fax, notices
shall be deemed received twenty-four (24) hours after transmission. Notices may
not be sent by e-mail. Rejection or other refusal to accept a notice or the
inability to deliver the same because of a changed address of which no notice
was given shall be deemed to be receipt of the notice sent. In the event of a
postal strike, all notices shall be personally delivered, sent by commercial
overnight delivery service, or sent by fax.

         10.2 EXPENSES. Except for liabilities expressly assumed by Purchaser in
the Assignment and Assumption Agreement, Purchaser and Seller shall each pay
their own costs and expenses (including, without limitation, the fees and
expenses of their counsel, auditors and accountants and any finders' fees)
incidental to the preparation and carrying out of this Agreement and the
transactions contemplated hereby.

         10.3 FINDERS' FEES. Each of the parties represents and warrants to the
other that, to the extent it has engaged any broker, finder or other person who
is entitled to a brokerage or other fee or commission in respect of the
execution of this Agreement and the consummation of the transactions
contemplated hereby, such fee is the sole responsibility of such party.
Purchaser shall indemnify and hold Seller harmless against and in respect of any
and all claims, liabilities and/or expenses which may be asserted against Seller
by any such broker or other person on the basis of any arrangement or agreement
made or alleged to have been made by Purchaser, its agents or employees; and
Seller shall indemnify and hold Purchaser harmless in respect of any and all
claims, liabilities and/or expenses which may be asserted against Purchaser by
any such broker or other person on the basis of any arrangement or agreement
made or alleged to have been made by Seller, its agents or employees.

         10.4 INTEGRATION AND AMENDMENT. This Agreement supersedes any and all
previous agreements between the parties with respect to the subject matter
herein and may not be amended other than by a written instrument executed by
Purchaser and Seller, except for the Confidentiality Agreements dated March 15,
1999 and July 2, 1999, which shall remain in effect through the Closing

                                       40
<PAGE>   42
and which shall remain in effect in the event this Agreement is terminated. This
Agreement is one of a series of agreements referenced in this Agreement which
are part of an integrated transaction. All such agreements shall be taken as a
whole in order to ascertain the intent of the parties. In the event of a
conflict between this Agreement and the other ancillary agreements referenced in
this Agreement, this Agreement shall control.

         10.5 CAPTIONS. The captions and headings contained in this Agreement
are for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement.

         10.6 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute but one and the
same instrument.

         10.7 PARTIES IN INTEREST. This Agreement shall inure to the benefit of
and be binding upon the parties hereto and their respective successors and
assigns.

         10.8 ASSIGNMENT. No party hereto shall assign this Agreement without
first obtaining the written consent of the other parties; provided, however,
that notwithstanding anything in this Agreement to the contrary, Purchaser shall
be entitled to assign this Agreement, in whole or in part, to any wholly-owned
subsidiary of Purchaser, it being agreed, however, that no such assignment shall
release or relieve Purchaser from any liability under this Agreement.

         10.9 INTERPRETATION. The language in all parts of this Agreement shall
be construed, in all cases, according to its fair meaning, and not for or
against any party hereto. The parties acknowledge that each party and its
counsel have reviewed and revised this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement.

         10.10 GOVERNING LAW; VENUE. This Agreement and any interpretation
hereof and the resolution of any dispute hereunder shall be governed by the laws
of the State of California, and subject to the parties' obligation to arbitrate
and dispute any action to enforce any provision of this Agreement or to obtain
any remedy with respect hereto may be brought in the appropriate state or
federal court in San Diego County, California. For this purpose each party
hereto hereby expressly and irrevocably consents to the jurisdiction of said
court, it being understood and agreed that the parties are obligated to
arbitrate disputes between them pursuant to Section 10.12.

         10.11 LISTING OF SCHEDULES AND EXHIBITS. The schedules and exhibits
referenced to this Agreement are listed on Annex 1 and Annex 2, respectively.
All such schedules and exhibits are hereby incorporated into this Agreement by
this reference. Said schedules and exhibits are not attached to this Agreement,
but shall be attached to this Agreement by execution of an amendment of this
Agreement prepared for such purpose. Such amendment shall be executed at least
five (5) business days before the Balance Sheet Cut-Off Date.

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<PAGE>   43
         10.12 ARBITRATION.

              (a) GENERAL. Any controversy, claim, or dispute among the parties
hereto arising out of or related to this Agreement or the breach thereto, which
cannot be settled amicably by the parties, shall be submitted for binding
arbitration in accordance with the provisions contained herein and in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
("Rules"); provided, however, that notwithstanding any provisions of such Rules,
the parties shall have the right to take depositions and obtain discovery
regarding the subject matter of the arbitration, as provided in Title III of
Part 4 (commencing with Section 1985) of the California Code of Civil Procedure.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The arbitrator shall determine all questions of fact and
law relating to any controversy, claim, or dispute hereunder, including but not
limited to whether or not any such controversy, claim, or dispute is subject to
the arbitration provisions contained herein.

              (b) THIRD-PARTY CONTROVERSY. If a controversy, claim, or dispute
arises among the parties hereto which is subject to the arbitration provisions
hereunder, and there exists or later arises a controversy, claim, or dispute
between the parties hereto and any third party, which controversy, claim, or
dispute arises out of or relates to the same transaction or series of
transactions, said third party controversy, claim, or dispute shall be
consolidated with the arbitration proceedings hereunder; provided, however, that
any such third party must be a party to an agreement with a party hereto which
provides for arbitration of disputes thereunder in accordance with rules and
procedures substantially the same in all material respects as provided for
herein or, if not, must consent to arbitration as provided for hereunder.

              (c) VENUE. All arbitration proceedings shall be held in San Diego,
California.

              (d) NOTICES. Notice of the demand for arbitration shall be filed
in writing with Purchaser and Simula (on behalf of all Selling Parties), as
applicable, to this Agreement and with the American Arbitration Association.

         10.13 GUARANTEE BY ZODIAC, S.A.. Purchaser is a wholly-owned subsidiary
of Zodiac, S.A., a French corporation ("Zodiac"). By signing below, Zodiac
agrees to unconditionally guarantee the full and complete performance of all of
Purchaser's obligations under this Agreement, including without limitation,
Purchaser's obligation to pay the Cash Payment in accordance with this
Agreement. Such guarantee shall, however, terminate as of the Closing.

         10.14 STATUS OF SCHEDULES AND EXHIBITS. As of the date of this
Agreement, not all of the schedules listed on Annex 1 and all of the exhibits
listed on Annex 2 have been put in final form. The status of such schedules and
exhibits as of the date of execution of this Agreement is set forth in the
following tables. The parties shall agree on the final form of said schedules
and exhibits on or before the Effective Date.

                                       42
<PAGE>   44
                                     ANNEX 1

                           LIST OF ATTACHED SCHEDULES

<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
 CONTROL     SCHEDULE             DESCRIPTION                        STATUS
   NO.         NO.
---------------------------------------------------------------------------------
<S>          <C>       <C>                                           <C>
    1         0.3(e)   Schedule of Assumed Liabilities               Open
---------------------------------------------------------------------------------
    2         0.3(u)   Schedule of Excluded Assets                   Open
---------------------------------------------------------------------------------
    3         0.3(v)   Schedule of Excluded Liabilities              Open
---------------------------------------------------------------------------------
    4         1.1(a)   Schedule of Accounts Receivable               Update
---------------------------------------------------------------------------------
    5         1.1(c)   Schedule of Customer Contracts                Complete
---------------------------------------------------------------------------------
    6         1.1(d)   Schedule of Equipment Leases                  Complete
---------------------------------------------------------------------------------
    7         1.1(e)   Schedule of Governmental Airworthiness        Complete
                       Approvals
---------------------------------------------------------------------------------
    8         1.1(f)   Schedule of Included Inventories              Update
---------------------------------------------------------------------------------
    9         1.1(g)   Schedule of Intellectual Property             Complete
---------------------------------------------------------------------------------
    10        1.1(i)   Schedule of Other Assets                      Complete
---------------------------------------------------------------------------------
    11        1.1(j)   Schedule of Software Licenses                 Update
---------------------------------------------------------------------------------
    12        1.1(k)   Schedule of Supplies                          Complete
---------------------------------------------------------------------------------
    13        1.1(l)   Schedule of Tangible Personal Property        Complete
---------------------------------------------------------------------------------
    14        1.1(m)   Schedule of Tooling                           Complete (no
                                                                     location)
---------------------------------------------------------------------------------
    15        1.1(n)   Schedule of Vendor Contracts                  Complete
---------------------------------------------------------------------------------
    16         2.4     Schedule of Defaults and Violations           Complete
---------------------------------------------------------------------------------
    17         2.6     Schedule of Pending Litigation Matters        Complete
---------------------------------------------------------------------------------
    18         2.8     Schedule of Other Governmental Licenses,      Complete
                       Permits, and Authorizations
---------------------------------------------------------------------------------
    19         2.9     Schedule of Title Exceptions                  Complete
---------------------------------------------------------------------------------
    20         2.11    Schedule of Obligations and Commitments to    Open
                       Third Parties Other than Customers
---------------------------------------------------------------------------------
    21         2.13    Schedule of Financial Statements              Income Stmt?
---------------------------------------------------------------------------------
    22         2.14    Schedule of Material Adverse Changes          Open
---------------------------------------------------------------------------------
    23         2.16    Schedule of Uncollectible Accounts            Complete
                       Receivable
---------------------------------------------------------------------------------
    24         2.17    Schedule of Accounts Payable                  Update
---------------------------------------------------------------------------------
    25         2.18    Schedule of Required Consents and             Complete
                       Approvals
---------------------------------------------------------------------------------
    26      2.19(a)(1) Schedule of Personnel Agreements, Policies,   Complete
                       Procedures, etc.
---------------------------------------------------------------------------------
    27      2.19(a)(2) Schedule of Group Health Insurance Benefits   Complete
---------------------------------------------------------------------------------
    28       2.19(b)   Schedule of Material Employee-Related         Complete
---------------------------------------------------------------------------------
</TABLE>

                                       43
<PAGE>   45
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------
 CONTROL     SCHEDULE             DESCRIPTION                        STATUS
   NO.         NO.
---------------------------------------------------------------------------------
<S>          <C>       <C>                                           <C>
---------------------------------------------------------------------------------
                       Obligations
---------------------------------------------------------------------------------
    29       2.19(c)   Schedule of Personnel Payroll Roster          Complete
--------------------------------------------------------------------------------
    30       2.19(d)   Schedule of Accrued Vacation and Sick Day     Complete
                       Allowances
--------------------------------------------------------------------------------
    31       2.19(g)   Schedule of Severance Pay Obligations         Update
--------------------------------------------------------------------------------
    32         2.21    Schedule of Material Pending Insurance        Complete
                       Claims
--------------------------------------------------------------------------------
    33       2.22(a)   Schedule of Standard Product Warranty         Complete
--------------------------------------------------------------------------------
    34       2.22(b)   Schedule of Material Warranty Claims          Open
--------------------------------------------------------------------------------
    35       2.22(c)   Schedule of Special Warranty Arrangements     Complete
--------------------------------------------------------------------------------
    36         2.23    Schedule of Banks and Financial Institutions  Complete
--------------------------------------------------------------------------------
    37         2.24    Schedule of Trade Names, Logos,               Complete
                       Trademarks, and Copyrights
--------------------------------------------------------------------------------
    38         2.25    Schedule of Patents and Patent Rights         Complete
--------------------------------------------------------------------------------
    39         2.26    Schedule of Sales Agents                      Complete
--------------------------------------------------------------------------------
    40         2.29    Schedule of Customer List                     Complete
--------------------------------------------------------------------------------
    41         2.30    Schedule of Interests in Customers,           Complete
                       Suppliers, and Competitors
--------------------------------------------------------------------------------
    42         2.34    INTENTIONALLY DELETED
--------------------------------------------------------------------------------
    43         2.36    Schedule of Service Bulletins                 Complete
--------------------------------------------------------------------------------
    44         2.38    Schedule of Customer Order Backlog            Complete
--------------------------------------------------------------------------------
    45         3.4     Schedule of Violations by Purchaser           Complete
--------------------------------------------------------------------------------
</TABLE>

                                     ANNEX 2

                            LIST OF ATTACHED EXHIBITS

<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
  CONTROL    EXHIBIT             DESCRIPTION                        STATUS
    NO.        NO.

--------------------------------------------------------------------------------
<S>          <C>       <C>                                          <C>
    46          A      Pro Forma Closing Date Balance Sheet         Approved
--------------------------------------------------------------------------------
    47          B      Inventory Valuation Methodology              Approved
--------------------------------------------------------------------------------
    48          C      Inventory Reserve Methodology                Approved
--------------------------------------------------------------------------------
    49          D      Assignment and Assumption Agreement          Not Approved
--------------------------------------------------------------------------------
    50          E      Bill of Sale                                 Not Approved
--------------------------------------------------------------------------------
    51          F      Non-Competition Agreement                    Not Approved
--------------------------------------------------------------------------------
    52          G      Funding Agreement                            Not Approved
--------------------------------------------------------------------------------
    53          H      Patent License Agreement                     Not Approved
--------------------------------------------------------------------------------
</TABLE>

                                       44
<PAGE>   46
<TABLE>
<S>          <C>       <C>                                          <C>
--------------------------------------------------------------------------------
    54          I      Transition Support Agreement                 Not Approved
--------------------------------------------------------------------------------
    55          J      Assignment of Intellectual Property          Not Approved
--------------------------------------------------------------------------------
</TABLE>

         10.15 LOCATION OF DUE DILIGENCE MATERIALS. The due diligence materials
referenced on the schedules listed on Annex 1 will not be attached to this
Agreement. Rather, such materials are located in binders containing such due
diligence materials maintained by Hillyer & Irwin.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       45
<PAGE>   47
         IN WITNESS WHEREOF, the parties have duly executed this Asset Purchase
Agreement
as of the date first set forth above.

"SELLER"                          AIRLINE INTERIORS, INC., an Arizona
                                  corporation

                                  By: /s/ Brad Forst
                                     ----------------------------------------
                                  Printed Name: Brad Forst
                                               ------------------------------
                                  Its: Secretary
                                      ---------------------------------------

"SIMTEC"                          SIMULA TRANSPORTATION EQUIPMENT
                                  CORPORATION, an Arizona corporation

                                  By: /s/ Brad Forst
                                     ----------------------------------------
                                  Printed Name: Brad Forst
                                               ------------------------------
                                  Its: Secretary
                                      ---------------------------------------

"SIMULA"                          SIMULA, INC., an Arizona corporation

                                  By: /s/ Brad Forst
                                     ----------------------------------------
                                  Printed Name: Brad Forst
                                               ------------------------------
                                  Its: Exec. Vice President - General Council
                                      ---------------------------------------

"PURCHASER"                       WEBER AIRCRAFT, INC., a Delaware corporation

                                  By: /s/ Michel Labarre
                                     ----------------------------------------
                                        Michel Labarre, President

                           [SIGNATURE PAGE CONTINUES]

                                       46
<PAGE>   48
                             SIGNATURE OF GUARANTOR

         The undersigned is executing this signature page for the limited
purpose of confirming that the undersigned is guaranteeing the obligations of
Purchaser under the above Agreement, as more fully provided in Section 10.13
above.

Dated: 12/27/99                        ZODIAC, S.A., a French corporation
      ------------------

                                       By: /s/ Jegou J. Jacques
                                          --------------------------------------

                                       Printed Name: Jegou J. Jacques
                                                    ----------------------------

                                       Its: Chief Financial Officer
                                           -------------------------------------

                              ACCEPTANCE OF ESCROW

         By signing below, the undersigned Escrowholder accepts the Escrow and
agrees to comply with the escrow instructions contained in the above Agreement.

Dated: 1-10-2000                        Bank One, Arizona, NA
      ------------------               -----------------------------------------

                                       By: /s/ Susan J. McCord
                                          --------------------------------------

                                       Printed Name:  Susan J. McCord
                                                    ----------------------------

                                       Its: Vice President
                                           -------------------------------------

                                       47
<PAGE>   49
                                    EXHIBIT A

                            TERM LOAN PROMISSORY NOTE

                                                               December 30, 1999

$5,000,000

FOR VALUE RECEIVED, each of the undersigned, jointly and severally
(collectively, the "Company"), promises to pay to the order of THE CIT
GROUP/BUSINESS CREDIT, INC. (herein "CITBC") at its office located at 300 South
Grand Avenue, 3rd Floor, Los Angeles, California 90071, in lawful money of the
United States of America and in immediately available funds, the principal
amount of Five Million Dollars ($5,000,000) payable in equal monthly principal
installments of $555,556 each commencing on the date 90 days after the Closing
Date, and each subsequent installment shall be due on the same day of the month,
followed by an installment of the remaining principal balance together with
accrued and unpaid interest at the maturity date hereof on August 31, 2000. In
any event, the principal balance hereof and any accrued and unpaid interest
shall be due and payable upon the maturity of the Obligations under the
Financing Agreement.

The Company further agrees to pay interest at said office, in like money, on the
unpaid principal amount owing hereunder from time to time from the date hereof
on the date and at the rate specified in Section 8, Paragraph 2 of the Financing
Agreement of even date herewith between the Company and CITBC (the "Financing
Agreement"). Capitalized terms used herein and defined in the Financing
Agreement shall have the same meanings as set forth therein unless otherwise
specifically defined herein.

If any payment on this Note becomes due and payable on a day other than a
Business Day, the maturity thereof shall be extended to the next succeeding
Business Day, and with respect to payments of principal, interest thereon shall
be payable at the then applicable rate during such extension.

This Note is the Term Loan Promissory Note referred to in the Financing
Agreement, evidences the Term Loan thereunder, and is subject to, and entitled
to, all provisions and benefits thereof and is subject to optional and mandatory
prepayment, in whole or in part, as provided therein.

Upon the occurrence of any one or more of the Events of Default specified in the
Financing Agreement or upon termination of the Financing Agreement, all amounts
then remaining

                                       51
<PAGE>   50
unpaid on this Note may become, or be declared to be, at the sole election of
CITBC, immediately due and payable as provided in the Financing Agreement.

SIMULA, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Executive Vice President & CFO
       ------------------------------

AIRLINE INTERIORS, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

ARTCRAFT INDUSTRIES CORP.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

SIMULA TRANSPORTATION
EQUIPMENT CORPORATION
(formerly known as INTAERO INC.)

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

INTERNATIONAL CENTER FOR
SAFETY EDUCATION, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

                                       52
<PAGE>   51
SIMULA AUTOMOTIVE SAFETY
DEVICES, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

SIMULA COMPOSITES
CORPORATION

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

SIMULA POLYMER SYSTEMS, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

SIMULA SAFETY SYSTEMS, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

SIMULA TECHNOLOGIES, INC.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

                                       53
<PAGE>   52
SIMULA AUTOMOTIVE SAFETY
DEVICES, LIMITED

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

CCEC CAPITAL CORP.

By /s/ James C. Dodd
   -----------------------------------

Title: Treasurer
       ------------------------------

                                       54
<PAGE>   53
CIT / SIMULA

                                   Schedule 1

                            Existing Liens (Attached)

<PAGE>   54
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
===============================================================================================================================
                                 FILE NUMBER                                                              THRU DATE/
NAME SEARCHED   JURISDICTION        DATE                SECURED PARTY                    COLLATERAL          STATUS      ACTION
-------------------------------------------------------------------------------------------------------------------------------
<S>             <C>              <C>           <C>                                 <C>                    <C>            <C>
SIMULA, INC.    SOS, AZ          774717        AVNET COMPUTER TECHNOLOGIES, INC.   Equipment              12-10-99
                UCC              02-08-94
-------------------------------------------------------------------------------------------------------------------------------

                                 774719        AVNET COMPUTER TECHNOLOGIES, INC.   Equipment
                                 02-08-94
-------------------------------------------------------------------------------------------------------------------------------

                                 806105        AVNET COMPUTER TECHNOLOGIES, INC.   Equipment
                                 10-24-94
-------------------------------------------------------------------------------------------------------------------------------

                                 924130        US BANCORP LEASING & FINANCIAL      Equipment and proceeds
                                 07-02-96
-------------------------------------------------------------------------------------------------------------------------------

                                 935636        US BANCORP LEASING & FINANCIAL      Specific Equipment
                                 09-18-96
-------------------------------------------------------------------------------------------------------------------------------

                                 940491        US BANCORP LEASING & FINANCIAL      Equipment and proceeds
                                 10-22-96
-------------------------------------------------------------------------------------------------------------------------------

                                 948142        US BANCORP LEASING & FINANCIAL      Specific Equipment
                                 12-17-96
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>

CIT\SIMULA\SCHEDULE 1              Page 1 of 9
<PAGE>   55
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
                                           FILE NUMBER                                                   THRU DATE/
NAME SEARCHED        JURISDICTION              DATE             SECURED PARTY         COLLATERAL            STATUS           ACTION
-----------------------------------------------------------------------------------------------------------------------------------
<S>                  <C>                    <C>             <C>                       <C>                 <C>               <C>
                                            955078           US BANCORP LEASING       Specific Equipment
                                            02-07-97         & FINANCIAL
-----------------------------------------------------------------------------------------------------------------------------------
                                            984273           WELLS FARGO LEASING      Computer Equipment
                                            9-11-97          CORPORATION              (lease)
-----------------------------------------------------------------------------------------------------------------------------------
                                            01042061         BANK ONE, ARIZONA,       Blanket
                                            11-18-98         NA
-----------------------------------------------------------------------------------------------------------------------------------
                                            01001258         WELLS FARGO LEASING      Computer Equipment
                                            01-20-98         CORPORATION              (lease)
-----------------------------------------------------------------------------------------------------------------------------------
                                            1060115          NEW ENGLAND CAPITAL      Communications
                                            03-30-99         CORPORATION              Equipment
-----------------------------------------------------------------------------------------------------------------------------------
                     Maricopa County, AZ                                                                   10-27-99
                     UCC, Tax Liens,                                                                       Clear
                     Judgments, Suits
-----------------------------------------------------------------------------------------------------------------------------------
AIRLINE INTERIORS,   SOS, AZ                1042065          BANK ONE, ARIZONA,       Blanket              12-10-99
INC.                 UCC                    11-18-98         NA
-----------------------------------------------------------------------------------------------------------------------------------
                    Maricopa County, AZ                                                                    10-27-99
                    UCC, Tax Liens,                                                                        Clear
                    Judgments, Suits
-----------------------------------------------------------------------------------------------------------------------------------

</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 2 of 9
<PAGE>   56
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
------------------------------------------------------------------------------------------------------------------------------
                                          FILE NUMBER                                                       THRU DATE/
     NAME SEARCHED         JURISDICTION      DATE                SECURED PARTY           COLLATERAL           STATUS    ACTION
<S>                          <C>          <C>              <C>                          <C>                   <C>       <C>
------------------------------------------------------------------------------------------------------------------------------
AIRLINE INTERIORS, INC.       SOS, CA      9508760473       SOUTHWEST YALE MATERIAL      1 forklift           12-01-99
                              UCC          03-23-95         HANDLING COMPANY
------------------------------------------------------------------------------------------------------------------------------
                                           9530760787       MASTER LEASE DIV OF TOKAI    IDS phone system
                                           11-01-95
------------------------------------------------------------------------------------------------------------------------------
                                           9634860727       U.S. BANCORP LEASING         Specific Equipment
                                           12-13-96         & FINANCIAL                  (lease)
------------------------------------------------------------------------------------------------------------------------------
                                           9705060100       U.S. BANCORP LEASING         Specific Equipment
                                           02-10-97         & FINANCIAL                  (lease)
------------------------------------------------------------------------------------------------------------------------------
                                           9705660817       MINOLTA BUSINESS SYSTEMS     1 copier (lease)
                                           02-18-97
------------------------------------------------------------------------------------------------------------------------------
                                           9709760767       TOKAI FINANCIAL SERVICES,    IDS phone system
                                           03-31-97         INC.
------------------------------------------------------------------------------------------------------------------------------
                                           9823660539       NEW ENGLAND CAPITAL          Specific Equipment
                                           08-20-98         CORPORATION                  (lease)
------------------------------------------------------------------------------------------------------------------------------
                                           9906760112       CROWN CREDIT COMPANY         Specific Equipment
                                           02-25-99
------------------------------------------------------------------------------------------------------------------------------
                                           9924560183       MINOLTA BUSINESS SYSTEMS     Copiers (lease)
                                           08-20-99
------------------------------------------------------------------------------------------------------------------------------
ARTCRAFT INDUSTRIES CORP.     SOS, AZ      1042066          BANK ONE, ARIZONA, NA        Blanket
                              UCC          11-18-98
------------------------------------------------------------------------------------------------------------------------------
</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 3 of 9

<PAGE>   57
                                   SCHEDULE 1
                                 Existing Liens

<TABLE>
                                              FILE NUMBER                                                         THRU DATE/
NAME SEARCHED         JURISDICTION                DATE              SECURED PARTY          COLLATERAL              STATUS     ACTION
____________________________________________________________________________________________________________________________________
<S>                  <C>                      <C>                   <C>                    <C>                     <C>        <C>
ARTCRAFT             Maricopa County, AZ                                                                           10-27-99
INDUSTRIES CORP.     UCC, Tax Liens,                                                                               Clear
                     Judgments, Suits
____________________________________________________________________________________________________________________________________
                     SOS, WI                  1714065               FBS BUSINESS FINANCE   Specific Equipment      10-28-99
                     UCC                      11-10-97              CORPORATION            (lease)
____________________________________________________________________________________________________________________________________
                                              1727698               FBS BUSINESS FINANCE    Specific Equipment
                                              01-12-98              CORPORATION
____________________________________________________________________________________________________________________________________
                                              1736595               U.S. BANCORP LEASING    6 commercial sewing
                                              02-16-98              & FINANCIAL             machines
____________________________________________________________________________________________________________________________________
                                              1750761               LPI SOFTWARE FUNDING    Specific Equipment
                                              04-13-98              GROUP, INC.             (lease)
____________________________________________________________________________________________________________________________________
                                              1805630               BANK ONE, ARIZONA, NA   Blanket
                                              11-19-98
____________________________________________________________________________________________________________________________________
                                              1805631               BANK ONE, ARIZONA, NA   Blanket
                                              11-19-98
____________________________________________________________________________________________________________________________________
                     Clayton County, GA       031-98-003184         U.S. BANCORP LEASING    commercial sewing      12-03-99
                     UCC, Tax Liens,          05-19-98              & FINANCIAL             machines
                     Judgments, Suits
____________________________________________________________________________________________________________________________________
                     Fulton County, GA        23430                 FBS BUSINESS            Specific Equipment     11-16-99
                     UCC, Tax Liens,          11-12-97              FINANCE CORPORATION     (lease)
                     Judgments, Suits
____________________________________________________________________________________________________________________________________
</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 4 of 9
<PAGE>   58
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
                                                   FILE NUMBER                                            THRU DATE/
NAME SEARCHED                  JURISDICTION            DATE           SECURED PARTY       COLLATERAL        STATUS        ACTION
-------------                  ------------        -----------        -------------       ----------      ----------      ------
<S>                           <C>                  <C>           <C>                      <C>             <C>           <C>

ARTCRAFT INDUSTRIES CORP.     Gwinnett County, GA                                                          12-08-99      unofficial
                              UCC, Tax Liens,                                                              Clear          search
                              Judgments, Suits

INTERNATIONAL CENTER FOR      SOS, AZ                1042071      BANK ONE, ARIZONA, NA     Blanket        12-10-99
SAFETY EDUCTION, INC.         UCC                    11-18-98

                              Maricopa County, AZ                                                          10-27-99
                              UCC, Tax Liens,                                                              Clear
                              Judgments, Suits

SIMULA AUTOMOTIVE             SOS, AZ                945969       US BANCORP LEASING        Computer
SAFETY DEVICES, INC.          UCC                    12-03-96     & FINANCIAL               Equipment

                                                     948141       US BANCORP LEASING        Computer
                                                     12-17-96     & FINANCIAL               Equipment

                                                     955077       US BANCORP LEASING        Equipment
                                                     02-07-97     & FINANCIAL

                                                     1042063      BANK ONE, ARIZONA, NA     Blanket
                                                     11-18-98

                                                     1042070      BANK ONE, ARIZONA, NA     Blanket
                                                     11-18-98

                              Maricopa County, AZ                                                          10-27-99
                              UCC, Tax Liens,                                                              Clear
                              Judgments, Suits

</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 5 of 9
<PAGE>   59
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
===============================================================================================================================
                                              FILE NUMBER                                                THRU DATE/
NAME SEARCHED            JURISDICTION             DATE      SECURED PARTY       COLLATERAL               STATUS        ACTION
--------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                 <C>           <C>                  <C>                       <C>          <C>
SIMULA AUTOMOTIVE SAFETY United Kingdom
DEVICES, LIMITED
--------------------------------------------------------------------------------------------------------------------------------
SIMULA COMPOSITES        SOS, AZ                                                                          12-10-99
CORPORATION              UCC                                                                              Clear
--------------------------------------------------------------------------------------------------------------------------------
                         Maricopa County, AZ                                                              10-27-99
                         UCC, Tax Liens,                                                                  Clear
                         Judgments
--------------------------------------------------------------------------------------------------------------------------------
                         SOS, DE                                                                          11-30-99
                         UCC                                                                              Clear
--------------------------------------------------------------------------------------------------------------------------------
SIMULA POLYMER           SOS, AZ                                                                          12-10-99
SYSTEMS, INC.            UCC
--------------------------------------------------------------------------------------------------------------------------------
                         Maricopa County, AZ                                                              10-27-99
                         UCC, Tax Liens,                                                                  Clear
                         Judgments, Suits
--------------------------------------------------------------------------------------------------------------------------------
SIMULA PROTECTIVE        United Kingdom
SYSTEMS, LIMITED
--------------------------------------------------------------------------------------------------------------------------------
SIMULA SAFETY SYSTEMS,   SOS, AZ               1042062      BANK ONE, ARIZONA, NA    Blanket              12-10-99
INC.                     UCC                   11-18-98
--------------------------------------------------------------------------------------------------------------------------------
                                               1049869      GE CAPITAL               Business Machinery/
                                               01-19-99                              Equipment
--------------------------------------------------------------------------------------------------------------------------------
</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 6 of 9
<PAGE>   60
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
====================================================================================================================================
                                                    FILE NUMBER                                                THRU DATE/
     NAME SEARCHED               JURISDICTION          DATE        SECURED PARTY          COLLATERAL             STATUS     ACTION
------------------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                   <C>          <C>                   <C>                     <C>           <C>
SIMULA SAFETY SYSTEMS, INC.   Coconino County, AZ                                                              12-06-99
                              UCC, Tax Liens                                                                   Clear
                              Judgments, Suits
------------------------------------------------------------------------------------------------------------------------------------
                              Maricopa County, AZ                                                              10-27-99
                              UCC, Tax Liens,                                                                  Clear
                              Judgments, Suits
------------------------------------------------------------------------------------------------------------------------------------
                              Yavapai County, AZ                                                               11-25-99
                              UCC, Tax Liens,                                                                  Clear
                              Judgments, Suits
------------------------------------------------------------------------------------------------------------------------------------
                              SOS, NC               199887977    BANK ONE ARIZONA      Blanket                 10-22-99
                              UCC                   11-20-98
------------------------------------------------------------------------------------------------------------------------------------
                                                    199931144    TRIMARC FINANCIAL,    Specific Equipment
                                                    03-30-99     INC.                  (lease)
------------------------------------------------------------------------------------------------------------------------------------
                              Buncombe County, NC                                                              12-10-99
                              UCC, Tax Liens,                                                                  Clear
                              Judgments, Suits
------------------------------------------------------------------------------------------------------------------------------------
SIMULA TECHNOLOGIES, INC.     SOS, AZ               948138       US BANCORP LEASING    Equipment               12-10-99
                              UCC                   12-17-96     & FINANCIAL
------------------------------------------------------------------------------------------------------------------------------------
                                                    955075       US BANCORP LEASING    Equipment
                                                    02-07-97     & FINANCIAL
------------------------------------------------------------------------------------------------------------------------------------
                                                    01021448     MAX MACHINERY, INC.   Equipment
                                                    06-19-98
------------------------------------------------------------------------------------------------------------------------------------
SIMULA TECHNOLOGIES, INC.                           1041771      NEW ENGLAND CAPITAL   Equipment               12-10-99
(continued)                                         11-16-98     CORPORATION
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 7 of 9
<PAGE>   61
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
                                                   FILE NUMBER                                                 THRU DATE/
NAME SEARCHED                  JURISDICTION            DATE           SECURED PARTY       COLLATERAL            STATUS        ACTION
-------------                  ------------        -----------        -------------       ----------          ----------      ------
<S>                          <C>                 <C>            <C>                      <C>                 <C>             <C>

                                                  1042069        BANK ONE, ARIZONA, NA    Blanket
                                                  11-18-98

                                                  1049371        FIDELITY LEASING, INC.   Specific Equipment
                                                  01-14-99                                (lease)

                                                  1059879        NEW ENGLAND CAPITAL      Equipment
                                                  03-29-99       CORPORATION

                             Maricopa County, AZ  99-0329415     TRIMARC FINANCIAL, INC.  Specific Equipment
                             UCC, Tax Liens,      04-07-99                                (lease)
                             Judgments, Suits

                                                  98-1101538     TRIMARC FINANCIAL, INC.  Specific Equipment
                                                  12-07-98                                (lease)

SIMULA GOVERNMENT            SOS, AZ              862182         ADVANTA BUSINESS         Inventory
PRODUCTS, INC.               UCC                  01-11-96       SERVICES CORP.

                                                  945970         US BANCORP LEASING       Equipment
                                                  12-03-96       & FINANCIAL

                                                  945974         US BANCORP LEASING       Equipment
                                                  12-03-96       & FINANCIAL

                                                  948140         US BANCORP LEASING        Equipment
                                                  12-17-96       & FINANCIAL

                                                  955076         US BANCORP LEASING        Equipment
                                                  02-07-97       & FINANCIAL

SIMULA GOVERNMENT PRODUCTS   SOS, AZ              963864         THE CIT GROUP/EQUIPMENT   Equipment                12-10-99
INC. (continued)             UCC                  04-15-97       FINANCING

INTAERO, INC.                SOS, AZ              1042072        BANK ONE, ARIZONA, NA    Blanket                  12-10-99
                             UCC                  11-18-98
</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 8 of 9
<PAGE>   62
                                   SCHEDULE 1

                                 Existing Liens

<TABLE>
<CAPTION>
<S>                 <C>                      <C>               <C>            <C>            <C>            <C>
                                             FILE NUMBER                                     THRU DATE/
NAME SEARCHED       JURISDICTION                DATE           SECURED PARTY  COLLATERAL         STATUS     ACTION
------------------------------------------------------------------------------------------------------------------
                    Maricopa County, AZ                                                      10-27-99
                    UCC, Tax Liens,                                                          Clear
                    Judgments, Suits
------------------------------------------------------------------------------------------------------------------
</TABLE>

CIT\SIMULA\SCHEDULE 1             Page 9 of 9
<PAGE>   63
                                   CIT/SIMULA

                                   SCHEDULE 2

a) Location of Chief Executive Office:
         2700 N. Central Avenue
         Suite 1000
         Phoenix, Arizona 85004

b) Location of Collateral:

         All collateral is located on the premises of the Company's operating
subsidiaries (or under the control of the subsidiaries), the description of
which is attached.

<PAGE>   64
                              COMPANY INFORMATION
                             UPDATED: DECEMBER 1999

<TABLE>
<CAPTION>
================================================================================================================================
COMPANY                       PHONE/FAX       FEDERAL I.D.        DIRECTORS               OFFICERS                 CONTACT(S)
--------------------------------------------------------------------------------------------------------------------------------
<S>                      <C>                  <C>              <C>              <C>                               <C>
Simula, Inc.             ph. (602) 631-4005    Arizona         Stan Desjardins  Chairman - Stan Desjardins        Don Townsend
2700 North Central       fax (602) 631-9005    86-0320129      Don Townsend     President & CEO - Don Townsend
 Avenue                                                        Brad Forst       Secretary - Brad Forst
Suite 1000                                                     Jim Saunders     Treasurer - James Dodd
Phoenix, Arizona                                               John Leinonen    Assistant Treasurer - Scott Huson
85004                                                          Don Olliver
                                                               James Withers
                                                               Lon Offenbacher
                                                               Thomas Emerson
--------------------------------------------------------------------------------------------------------------------------------
Airline Interiors, Inc.  ph. (858) 748-1117    Arizona         Don Rutter       President - Don Rutter            Jim Saunders
12325 Kerran Street      fax (858) 748-1937    doing business  Jim Saunders     Treasurer - Gary Perschbacher
Poway, CA 92064                                in CA           Don Townsend     Secretary - Brad Forst
                                               86-0768865      Brad Forst       Assistant Treasurer - James Dodd
--------------------------------------------------------------------------------------------------------------------------------
Artcraft Industries      ph. (404) 768-8377    Arizona         Brad Forst       Rick Zaugg - President            Rick Zaugg
 Corp.                   fax (404) 768-0735                    Jim Saunders     Dan Dunn - Treasurer
4753 Aviation Parkway                                          Don Townsend     Jim Dodd - Assistant Treasurer
Suite F                                                                         Brad Forst - Secretary
College Park,  GA 30349
--------------------------------------------------------------------------------------------------------------------------------
International Center for ph: (602) 631-4005    Arizona         Stan Desjardins  President - Stan Desjardins       Joe Coltman
Safety Education, Inc.   fax (602) 631-4020    86-0787589      Don Townsend     Secretary - Brad Forst
10016 South 51st Street                                        Joe Coltman      Treasurer - James Dodd
Phoenix, Arizona 85044
--------------------------------------------------------------------------------------------------------------------------------
Simula Automotive        ph. (480) 831-6129    Arizona         Don Townsend     President - Gershon Yaniv         Gershon Yaniv
Safety Devices, Inc.     fax (480) 831-5543    86-0789385      Jim Saunders     Secretary - Brad Forst
(ASD - Simula)                                                 Brad Forst       Treasurer - James Dodd
7360 S. Kyrene Road                                            Gershon Yaniv
Suite 106
Tempe, Arizona 85283
================================================================================================================================
</TABLE>

G/Legal/Corporate/Subsidiaries/Address List with Officers

                                       1
<PAGE>   65
                              COMPANY INFORMATION
                             UPDATED: DECEMBER 1999

<TABLE>
<CAPTION>
================================================================================================================================
COMPANY                       PHONE/FAX       FEDERAL I.D.        DIRECTORS               OFFICERS                 CONTACT(S)
--------------------------------------------------------------------------------------------------------------------------------
<S>                             <C>                      <C>             <C>              <C>                       <C>
Simula Automotive Safety        ph. 011-44-1670-562000   United Kingdom  Don Townsend     President -- David Horn   David Horn
Devices, Limited                fax 011-44-1670-8555-590                 Jim Saunders     Secretary -- Brad Forst   Gershon Yaniv
Unit 2                                                                   Gershon Yaniv
Wansbeck Business Park
Rotary Parkway, Ashington
Northumberland NE63 8QZ
United Kingdom
(subsidiary of ASD --
  Simula in U.S.)
-----------------------------------------------------------------------------------------------------------------------------------
Simula Composites Corporation   ph. (480) 894-9100       Delaware        Stan Desjardins  President -- Harry Jones  Harry Jones
2495 South Industrial Park      fax (480) 894-9111       86-0763930      Don Townsend     Secretary -- Brad Forst
  Avenue                                                 doing business  Brad Forst       Treasurer -- James Dodd
Tempe, Arizona 85282                                     in Arizona
-----------------------------------------------------------------------------------------------------------------------------------
Simula Polymer Systems, Inc.    ph. (480) 753-2000       Arizona         Joe Coltman      Brad Forst -- President   Brad Forst
10016 South 51st Street         fax (480) 893-8643       Corporation     Brad Forst       Joe Coltman -- Vice
Phoenix, Arizona 85044                                   ID Applied For  Don Townsend       President
                                                                                          James Dodd -- Secretary/
                                                                                            Treasurer
-----------------------------------------------------------------------------------------------------------------------------------
Simula Protective Systems,      see Don Townsend         United Kingdom  Don Townsend              N/A              Don Townsend
  Limited
Unit 2
Wansbeck Business Park
Rotary Parkway, Ashington
Northumberland NE63 8QZ
United Kingdom
(ASD-UK)
-----------------------------------------------------------------------------------------------------------------------------------
Simula Safety Systems, Inc.,    ph. (480) 893-7533       Arizona         Stan Desjardins  President --              Sherwin Hudson
  Applied Technologies          fax (480) 893-8643       86-0742551      Don Townsend       Stan Desjardins         San Desjardins
  Division (ATD)                                                         Brad Forst       Secretary -- Mike Haerle  Bill Rogers
7414 South Harl Avenue                                                   Jim Saunders     Assistant Secretary --
Tempe, Arizona 85283                                                     Sherwin Hudson     Brad Forst
                                                                                          Treasurer -- Mike Haerle
                                                                                          Assistant Treasurer --
                                                                                            James Dodd
-----------------------------------------------------------------------------------------------------------------------------------
Simula Safety Systems, Inc.,    ph. (828) 277-1979       A division of                                              Barry Shope, GM
  SEI Division                  fax (828) 274-1627       SSSI                                                       Sherwin Hudson
Safety Equipment
  International (SEI)
537 Sweeten Creek Industrial
  Park
Asheville, North Carolina
  28803
===================================================================================================================================
</TABLE>

G/Legal/Corporate/Subsidiaries/Address List with Officers

                                       2

<PAGE>   66

                              COMPANY INFORMATION
                             UPDATED: December 1999

<TABLE>
<CAPTION>
====================================================================================================================================
   COMPANY                             PHONE/FAX          FEDERAL I.D.      DIRECTORS              OFFICERS            CONTACT(S)
------------------------------------------------------------------------------------------------------------------------------------
<S>                                 <C>                  <C>             <C>              <C>                       <C>
Simula Safety Systems Inc., Sedona  ph. (520) 204-1404   A division of                                              Vern Dorrell, GM
Scientific Division                 fax (520) 282-4998    SSSI                                                      Sherwin Hudson
Sedona Scientific (SS)
(Division of SSSI)
30 Kayenta Court
Sedona, Arizona 86336-3729
------------------------------------------------------------------------------------------------------------------------------------
Simula Technologies, Inc. (STI)     ph. (480) 753-2000   Arizona         Stan Desjardins   President - Joe Coltman   Joe Coltman
10016 South 51st Street             fax (480) 893-8643   86-0842935      Don Townsend      Secretary - Brad Forst
Phoenix, Arizona 85044                                                   Joe Coltman       Treasurer - James Dodd
                                                                         Brad Forst
------------------------------------------------------------------------------------------------------------------------------------
Simula Transportation Equipment     ph. (619) 535-9056   Arizona        Don Townsend       President - Don Rutter     Don Rutter
Corporation (SIMTEC)                fax (619) 535-9628   authorized in  Don Rutter         Secretary - Brad Forst     Jim Saunders
(formerly Intaero, Inc.)                                 CA as Intaero  Brad Forst         Treasurer - James Dodd
9940 Mesa Rim Road                                       Holdings, Inc.
San Diego, CA 92121                                      86-0742552
------------------------------------------------------------------------------------------------------------------------------------
CCEC Capital Corp. (formerly Coach                       86-0763929     Brad Forst         President - Brad Forst     Ben Clark
and Car Equipment Corporation)                                          Ben Clark          Secretary - James Dodd
                                                                                           Treasurer - James Dodd
------------------------------------------------------------------------------------------------------------------------------------
Inataero, Limited (inactive)
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>

G\Legal\Corporate/Subsidiaries/Address List with Offices

                                       3
<PAGE>   67
                                                                  EXHIBIT 10.40b

                               AMENDMENT NO. 1 TO
                            ASSET PURCHASE AGREEMENT

         This AMENDMENT NO. 1 TO ASSET PURCHASE AGREEMENT (the "Amendment") is
executed as of this 1st day of February, 2000, by and among AIRLINE INTERIORS,
INC., an Arizona corporation ("Seller"), SIMULA TRANSPORTATION EQUIPMENT
CORPORATION, an Arizona corporation ("Simtec"), and SIMULA, INC., an Arizona
corporation ("Simula"), and WEBER AIRCRAFT, INC., a Delaware corporation
("Purchaser"), with reference to the facts set forth in the Recitals below.

                                    RECITALS

         A. Seller, Simula, Simtec and Purchaser are parties to a certain Asset
Purchase Agreement dated December 24, 1999 (the "Asset Purchase Agreement").

         B. Seller, Simula and Simtec are sometimes collectively referred to as
the "Selling Parties."

         C. At the time that the Asset Purchase Agreement was executed, none of
the exhibits were attached to the Agreement and all of the schedules (the
"Schedules") to the Asset Purchase Agreement were incomplete.

         D. The parties have agreed on the form of the documents comprising the
Exhibits and now desire to amend the Asset Purchase Agreement to incorporate the
Exhibits.

         E. Selling Parties have provided Purchaser with the information needed
to complete the Schedules and the parties also desire to amend the Asset
Purchase Agreement to incorporate the Schedules.

         F. The parties also desire to amend the Asset Purchase Agreement to
incorporate certain other provisions and to correct certain errors contained in
the Asset Purchase Agreement.

         G. The parties are executing this Amendment in order to memorialize
their understanding concerning the matters referenced above.

                                        1
<PAGE>   68
                                    AGREEMENT

         NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the
above Recitals, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

         1. INTERPRETATION. Except as amended by this Amendment, the Asset
Purchase Agreement shall remain in full force and effect. In the event of a
conflict between the provisions of this Amendment and those of the Asset
Purchase Agreement, this Amendment shall control. Terms with initial capital
letters are defined terms which shall have the respective meanings given them in
the Asset Purchase Agreement, unless the context of this Amendment requires
otherwise.

         2. SCHEDULES. The Schedules referred to in the Asset Purchase Agreement
have now been completed and are listed in Annex 1 to the Asset Purchase
Agreement. Annex 1 and the Schedules listed therein are attached to this
Amendment and are hereby incorporated into the Asset Purchase Agreement by this
reference.

         3. EXHIBITS. The Exhibits referred to in the Asset Purchase Agreement
have now been completed and are listed on Annex 2 to the Asset Purchase
Agreement. Annex 2 and the Exhibits listed below are attached to this Amendment
and are hereby incorporated into the Asset Purchase Agreement by this reference.

            (a)  Control No. 46: Exhibit A - Pro Forma Closing Date Balance
                 Sheet,

            (b)  Control No. 47: Exhibit B - Inventory Valuation Methodology

            (c)  Control No. 48: Exhibit C - Inventory Reserve Methodology

            (d)  Control No. 49: Exhibit D - Assignment and Assumption
                 Agreement,

            (e)  Control No. 50: Exhibit E - Bill of Sale,

            (f)  Control No. 51: Exhibit F - Non-Competition Agreement,

            (g)  Control No. 52: Exhibit G - Funding Agreement,

            (h)  Control No. 53: Exhibit H - Patent License Agreement,

            (i)  Control No. 54: Exhibit I - Transition Support Agreement,

            (j)  Control No. 55: Exhibit J - Assignment of Intellectual
                 Property, and

            (k)  Control No. 56: Exhibit K - Pre-Closing Balance Sheet.

                                        2
<PAGE>   69
         4. PRE-CLOSING BALANCE SHEET. The parties have agreed on the final form
of the Pre-Closing Balance Sheet. The final form of the Pre-Closing Balance
Sheet is attached hereto as Exhibit "K." The parties acknowledge that the Agreed
Inventory Value on line 5 of the Post-Closing Date Balance Sheet is in error.
The value of the Included Inventory will be adjusted downward as part of the
Post-Closing Accounting Adjustments to reflect the application of a 70%
valuation factor (as opposed to a 100% valuation factor) on the items identified
as LDC UK and LDC-1.

         5. AMENDMENT OF SECTION 0.1(g). Section 0.1(g) of the Asset Purchase
Agreement is hereby amended and restated in is entirety to read as follows:

            "(g) Indemnity Cap . $2,050,000. See Section 8.6(b) below."

         6. AMENDMENT OF SECTION 0.1(h). Section 0.1(h) of the Asset Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

            "(h) INDEMNITY PERIOD. The period of time specified in Section
            0.3(cc). See also Section 8.6 below."

         7. AMENDMENT OF SECTION 0.3(p). Section 0.3(p) of the Asset Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

            "(p) CLOSING DOCUMENTS. The term "Closing Documents" shall mean and
            include:

                 (1) Assignment and Assumption Agreement (Exhibit "D"),

                 (2) Bill of Sale (Exhibit "E"),

                 (3) Non-Competition Agreement (Exhibit "F"),

                 (4) Patent License Agreement (Exhibit "H"),

                 (5) Transition Support Agreement (Exhibit "I"),

                 (6) Assignment of Intellectual Property (Exhibit "J"),

                 (7) Pre-Closing Balance Sheet (Exhibit "K"),

                 (8) Asset Acquisition Statement (IRS Form 8594), and

                 (9) Such other documents and agreements as may be reasonably
required to carry out and implement the transactions contemplated in this
Agreement."

                                        3
<PAGE>   70
         8.  AMENDMENT OF SECTION 0.3(cc). Section 0.3(cc) of the Asset Purchase
Agreement is hereby amended and restated in its entirety to read as follows:

             "0.3(cc) INDEMNITY PERIOD. The term "Indemnity Period" shall mean a
             period beginning on the Closing Date and ending at two different
             times. The Indemnity Period shall end as to all Indemnifiable
             Claims (as defined in Section 8.1 below) on the last day (the
             "First Termination Date") of the calendar month in which falls the
             18th month anniversary of the Closing. As to warranty claims for
             Products sold by Seller, the Indemnity Period shall extend to the
             last day of the calendar month in which falls the 24th month
             anniversary of the Closing. After the First Termination Date, the
             only Indemnifiable Claims which Purchaser may assert are the
             warranty claims specified in the preceeding sentence. See Section
             8.6(b) below."

         9.  AMENDMENT OF SECTION 0.3(nn)(3). Section 0.3(nn)(3) is hereby
amended and restated in its entirety as follows:

             "(3) The "Agreed Offsets" shall be equal to the sum of (i) a
             warranty offset in the amount of One Million Seven Hundred
             Twenty-One Thousand Nine Hundred Twelve Dollars ($1,721,912), (ii)
             a certification offset in the amount of Five Hundred Sixty Thousand
             Dollars ($560,000), (iii) a reserve for passenger control units
             sold by Seller in the amount of Five Hundred Thousand Dollars
             ($500,000) (as set out in Schedule 2.22(b) and due diligence
             document Z-005), and (iv) a reserve for certain contractual
             liabilities of Seller to Air 2000, Air Tours, ILFC/Flying Colors
             and ILFC/Asiana in the amount of One Hundred Forty Three Thousand
             Dollars ($143,000) (as set out in Schedule 2.41). The procedures to
             be followed in computing the Agreed Inventory Value will reflect an
             inventory reserve computed in accordance with Exhibit "C."

         10. AMENDMENT OF SECTION 2.40. Section 2.40 of the Asset Purchase
Agreement is hereby amended and restated to read as follows:

             "2.40 BID AND PROPOSAL LIST. Schedule 2.40 is a true, correct and
             complete listing of all outstanding bids and proposals (as of the
             Closing) made by Seller for the sale of the Products to customers."

         11. AMENDMENT OF SECTION 2.41. Section 2.41 of the Asset Purchase
Agreement is hereby amended and restated to read as follows:

             "2.41 NO SIDE AGREEMENTS. Except as set forth on Schedule 2.41, no
             past or present officer, director, employee, representative or
             agent of Selling Parties has made

                                        4
<PAGE>   71
             any promise or commitment (oral or written) to grant any customer
             of Seller any concession or consideration for orders for the
             Products and there are no other contractual commitments to
             customers."

         12. AMENDMENT OF SECTION 7.16(b). Section 7.16(b) of the Asset Purchase
Agreement is hereby amended by replacing the last sentence of said section with
the following:

             "If it is later determined that the assumed physical inventory
             count used to prepare the Pre-Closing Balance Sheet was in error,
             an appropriate adjustment shall be made to the Cash Payment at the
             time the Post-Closing Accounting Adjustments are made, it being
             agreed that Purchaser shall have, if applicable, the same right of
             offset against the Simula Payables under this Section 7.16(b) as
             provided in Section 7.16(a). If the amount of the Post-Closing
             Accounting Adjustments that may be due Purchaser under any part of
             this Section 7.16 exceeds the amount of the Simula Payables, Simula
             shall pay any amount due Purchaser within five (5) business days
             after demand."

         13. AMENDMENT OF SECTION 7.7. Section 7.7 of the Asset Purchase
Agreement is hereby amended by adding the following after the last sentence of
said section:

             "Purchaser shall waive the requirement for said "tail coverage,"
             provided Selling Parties maintain in effect for a term of at least
             four (4) years after the Closing the coverage reflected on the
             Certificate of Insurance dated July 30, 1999 identified as number
             602-381-2800 issued by Acordia of Arizona identifying Simula as the
             insured and provided further that Purchaser is included as an
             additional named insured on said policy."

         14. AMENDMENT OF SECTION 10.6. Section 10.6 of the Asset Purchase
Agreement is hereby amended and restated as follows:

             "10.6 COUNTERPARTS. This Agreement may be executed in any number of
             counterparts, each of which shall be deemed an original and all of
             which shall constitute one Agreement. The facsimile signatures of
             the parties shall be deemed to constitute original signatures, and
             facsimile copies hereof shall be deemed to constitute duplicate
             original counterparts."

         15. NEW SECTION 10.16. The Asset Purchase Agreement is hereby amended
by adding the following provision as Section 10.16:

             "10.16 WAIVER. Any term or provision of this Agreement may be
             waived at any time by the party entitled to the benefit thereof by
             a written instrument duly executed by such party. The failure of
             any of the parties to this Agreement to require the performance of
             term or obligation under this Agreement or the waiver by any of the
             parties to this Agreement of any breach thereunder or hereunder
             shall not prevent

                                        5
<PAGE>   72
             subsequent enforcement of such term or obligation or be deemed a
             waiver of any subsequent breach thereunder or hereunder."

         16. NEW SECTION 10.17. The Asset Purchase Agreement is hereby amended
by adding the following provision as Section 10.17:

             "10.17 SEVERABILITY. In case any one or more of the provisions of
             this Agreement shall for any reason be held to be invalid, illegal
             or unenforceable in any respect, such invalidity, illegality or
             unenforceability shall not affect any other provision of this
             Agreement, but this Agreement shall be construed as if such invalid
             or illegal or unenforceable provision or part of a provision had
             never been contained herein. In the event of any inaccuracy or
             breach of any representation, warranty, covenant or agreement
             contained in this Agreement, the rights and remedies of the
             aggrieved party shall not be impaired or limited by reason of the
             fact that the act, omission, occurrence, or other statement of
             facts giving rise to such inaccuracy or breach may also be the
             subject matter of any other representation, warranty, covenant or
             agreement contained in this Agreement (or any other agreement
             between the parties) as to which there is no inaccuracy or breach."

         17. NEW SECTION 10.18. The Asset Purchase Agreement is hereby amended
by adding the following provision as Section 10.18:

             "10.18 ATTORNEYS' FEES. Should any party hereto employ an attorney
             for the purpose of enforcing or construing this Agreement, or any
             judgment based on this Agreement, in any legal proceeding
             whatsoever, including insolvency, bankruptcy, arbitration,
             declaratory relief or other litigation, the prevailing party shall
             be entitled to receive from the other party or parties thereto
             reimbursement for all attorneys' fees and all costs, including but
             not limited to service of process costs, filing fees, court and
             court reporter costs, investigative costs, expert witness fees and
             the cost of any bonds, whether taxable or not. Any such
             reimbursement shall be included in any judgment or final order or
             award issued in that proceeding. "Prevailing Party" means the party
             determined to most nearly prevail and not necessarily the one in
             whose favor a judgment or award is rendered. Attorneys' fees
             incurred in enforcing any judgment or award are recoverable as a
             separate item, and this provision for post-judgment or post-award
             attorneys' fees shall survive any judgment or award and shall not
             be deemed merged into any judgment or award."

         18. NEW SECTION 10.19. The Asset Purchase Agreement is hereby amended
by adding the following provision as Section 10.19.

             "10.19 NON-ASSUMPTION OF CERTAIN CUSTOMER CONTRACTS. The parties
             understand that Purchaser is not assuming all of the Customer
             Contracts. The Customer Contracts which Purchaser is assuming are
             listed on Exhibit "A" to the

                                       6
<PAGE>   73
             Assignment and Assumption Agreement. As for those Customer
             Contracts (the "Unassumed Customer Contracts") which Purchaser is
             not assuming and which are open as of the Closing, Purchaser may
             seek to negotiate new contractual arrangements for the sale of
             Products to the customers under the Unassumed Customer Contracts
             after the Closing. In such event, Purchaser shall use its best
             efforts to cause such customers to release Seller from any
             liability which Seller may have to such customers under the
             Unassumed Customer Contracts. Nothing in this Section 10.19 shall
             be construed as meaning or implying that Seller has any liability
             to such customers."

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       7
<PAGE>   74
         IN WITNESS WHEREOF, the parties have duly executed this Amendment No. 1
to Asset Purchase Agreement as of the date first set forth above.

"SELLER"                        AIRLINE INTERIORS, INC., an Arizona
                                corporation

                                By: /s/ Bradley P. Forst
                                    --------------------------------------------
                                Printed Name: Bradley P. Forst
                                              ----------------------------------
                                Its: Secretary
                                     -------------------------------------------

"SIMTEC"                        SIMULA TRANSPORTATION EQUIPMENT
                                CORPORATION, an Arizona corporation

                                By: /s/  Bradley P. Forst
                                    --------------------------------------------
                                Printed Name:  Bradley P. Forst
                                              ----------------------------------
                                Its: Secretary
                                     -------------------------------------------

"SIMULA"                        SIMULA, INC., an Arizona corporation

                                By: /s/ James C. Dodd
                                    --------------------------------------------
                                Printed Name: James C. Dodd
                                              ----------------------------------
                                Its: CFO
                                     -------------------------------------------

"PURCHASER"                     WEBER AIRCRAFT, INC., a Delaware corporation

                                By: /s/ Michel Labarre
                                    --------------------------------------------
                                         Michel Labarre, President

                                       8
<PAGE>   75

                                 CONTROL NO. 56

                                   EXHIBIT "K"

                         Pre-Closing Date Balance Sheet
                            (as of January 24, 2000)

<TABLE>
<CAPTION>
                                                                       Pro Forma Amount
                                                                       ----------------
<S>                                                                    <C>
1.  ASSETS

2.  CURRENT ASSETS

3.        -   Cash and Cash Equivalents(1)                              $     -0-

4.        -   Accounts Receivable (net of reserve of $687,825.40)(2)    $  6,758,865.51

5.        -   Agreed Inventory Value(3)                                 $  6,881,773.67

6.        -   Prepaid Expenses                                          $     -0-

7.        TOTAL CURRENT ASSETS                                          $ 13,640,639.18

8.      Property and equipment - (net)(4)                               $    608,000.00(5)

9.      Intangibles - (net)                                             $  6,500,000.00

10.     Other assets(6)                                                 $     -0-

11.       TOTAL ASSETS                                                  $ 20,748,639.18
</TABLE>

----------

(1) Seller shall retain all cash.

(2) The Accounts Receivable reserve will be eliminated as part of the
Post-Closing Accounting Adjustments.

(3) After valuation adjustment per Exhibit "B," and after applying a reserve
factor pursuant to Exhibit "C." The value of the Included Inventory will be
adjusted downward as part of the Post-Closing Accounting Adjustments to reflect
the application of a 70% valuation factor as opposed to a 100% valuation factor
on the items identified as LDC UK and LDC-1.

(4) "Property and Equipment" consists of all of the following items:

<TABLE>
<S>                                            <C>
            (a)  Demonstration/Sample Seats    [no allocation]
            (b)  Tooling
            (c)  Computers
            (d)  Manufacturing Equipment
                                                ----------
                     TOTAL                      $  608,000
                                                ==========
</TABLE>

(5) This amount is fixed and will not change.

(6) The term"other assets" as used here is not synonymous with the term Other
Assets as used in the Agreement.
<PAGE>   76
<TABLE>
<CAPTION>
                                                                      Pro Forma Amount
                                                                      ----------------
<S>                                                                   <C>
12.   LIABILITIES AND
        SHAREHOLDER'S EQUITY

13.   CURRENT LIABILITIES

14.            -   Trade Accounts Payable                              $ 3,858,304.84

15.            -   Other Accrued Liabilities(7)                        $   150,000.00

16.            -   Simula Payables(8)                                  $ 2,456,762.69

17A.           -   Agreed Offset:  Warranty offset(9)                  $ 1,721,912.00

17B.           -   Agreed Offset:  Certification offset(9)             $   560,000.00

17C.           -   Agreed Offset:  Passenger control unit offset(9)    $   500,000.00

17D.           -   Agreed Offset:  Contractual liability offset(9)     $   143,000.00

18.            TOTAL CURRENT LIABILITIES                               $ 9,389,979.53

19.          Long-Term Debt                                                   -0-

20.            TOTAL LIABILITIES                                       $ 9,389,979.53

21.   SHAREHOLDER'S EQUITY (Seller's Adjusted Net Worth)

22.            -   Shareholder's Equity                                $11,358,659.65

23.            INTENTIONALLY LEFT BLANK

24.          TOTAL LIABILITIES AND                                     $20,748,639.18
                 SHAREHOLDER'S EQUITY
</TABLE>

----------

(7) This item reflects the cost of GECAS Six Sigma Training which Seller agreed
to provide to this customer.

(8) See Section 0.3(e)(2) of the Agreement.

(9) See Section 0.3(nn)(3) of the Agreement.
<PAGE>   77
                                                                  Exhibit 10.40c

                       ASSIGNMENT AND ASSUMPTION AGREEMENT
                                  (Section 1.4)

     This ASSIGNMENT AND ASSUMPTION AGREEMENT (the "Agreement") is executed as
of this 1st day of February 2000, by and among AIRLINE INTERIORS, INC., an
Arizona corporation ("Seller"), SIMULA TRANSPORTATION EQUIPMENT CORPORATION, an
Arizona corporation ("Simtec"), SIMULA, INC., an Arizona corporation ("Simula"),
and WEBER AIRCRAFT, INC., a Delaware corporation ("Purchaser"), with reference
to the facts set forth in the Recitals below.

                                    RECITALS

     A. Seller and Purchaser, among others, are parties to that certain Asset
Purchase Agreement dated December 24, 1999, as amended (the "Asset Purchase
Agreement"). This Agreement is being executed pursuant to Sections 1.1 and 1.4
of the Asset Purchase Agreement.

     B. Simula is the sole shareholder of Simtec, which is in turn the sole
shareholder of Seller. Simula, Simtec and Seller are sometimes collectively
referred to as the "Selling Parties."

     C. Pursuant to the Asset Purchase Agreement, Seller has agreed to sell to
Purchaser certain assets referred to in Section 1.1 of the Asset Purchase
Agreement as the Included Assets.

     D. Section 1.1 of the Asset Purchase Agreement provides that, as a part of
the sale of the assets contemplated in the Asset Purchase Agreement, that Seller
shall assign to Purchaser all of its right, title and interest in and to the
Included Assets.

     E. This Agreement is intended to assign certain of those Included Assets to
Purchaser. The other Included Assets shall be sold, transferred, delivered or
assigned to Purchaser in the Bill of Sale and the Assignment of Intellectual
Property.

     F. Section 1.4 of the Asset Purchase Agreement, provides that Purchaser
will assume at the Closing the Assumed Liabilities of Seller with respect to the
Business, which are set forth on Exhibit "A" hereto. The Assumed Liabilities
shall not include the Excluded Liabilities, which are set forth on the Schedule
of Excluded Liabilities attached as Control No. 3 (Schedule 0.3(v)).

     G. The parties are executing this agreement in order to memorialize their
understanding concerning the foregoing.

                                        1
<PAGE>   78
                                    AGREEMENT

     NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the above
Recitals, the mutual covenants contained below in this Agreement and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

                                    ARTICLE 1

                                 INTERPRETATION

     1.1 INTERPRETATION. This Agreement is intended to implement the terms and
conditions of the Asset Purchase Agreement. In the event of a conflict between
the provisions of this Agreement, the Bill of Sale and those of the Asset
Purchase Agreement, the Asset Purchase Agreement shall control. Terms with
initial capital letters are defined terms which shall have the respective
meanings given them in the Asset Purchase Agreement unless the context of this
Agreement requires otherwise.

     1.2 PARTIES' INTENT. Subject to the Closing of the transactions
contemplated in the Asset Purchase Agreement, the parties intend that:

         (a) Seller shall assign and Purchaser shall assume any and all right,
title and interest to all of the Included Assets by virtue of this Agreement,
the Bill of Sale and the Assignment of Intellectual Property;

         (b) Purchaser shall be solely responsible for the Assumed Liabilities
assumed pursuant to this Agreement. The Excluded Liabilities are not part of the
Assumed Liabilities. Selling Parties shall be responsible for paying or
otherwise satisfying the Excluded Liabilities. Purchaser shall have no liability
of any kind, contingent or otherwise, with respect to the Excluded Liabilities.

     1.3 EFFECTIVE DATE. The Effective Date of this Agreement shall be the
Closing Date.

                                    ARTICLE 2

                         ASSIGNMENT OF INCLUDED ASSETS

     2.1 ASSIGNMENT BY SELLER. Subject to the Closing of the transaction
contemplated in the Asset Purchase Agreement and subject to the terms and
conditions set forth herein and in the Asset Purchase Agreement, Seller hereby
assigns to Purchaser the following Included Assets (the "Assigned Assets"):

         (a) All Accounts Receivable (as defined in Section 1.1(a) of the Asset
Purchase Agreement);

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<PAGE>   79
         (b) The Customer Contracts (as defined in Section 1.1(c) of the Asset
Purchase Agreement) listed on the Schedule of Assigned Assets attached hereto as
Exhibit "A."

         (c) The Equipment Leases (as defined in Section 1.1(d) of the Asset
Purchase Agreement) listed on the Schedule of Assigned Assets attached hereto as
Exhibit "A";

         (d) All Governmental Airworthiness Approvals (as defined in Section
1.1(e) of the Asset Purchase Agreement);

         (e) All Manufacturers' Warranties (as defined in Section 1.1(h) of the
Asset Purchase Agreement);

         (f) The Other Assets (as defined in Section 1.1(i) of the Asset
Purchase Agreement) listed on the Schedule of Assigned Assets attached hereto as
Exhibit "A";

         (g) The Software Licenses (as defined in Section 1.1(j) of the Asset
Purchase Agreement) listed on the Schedule of Assigned Assets attached hereto as
Exhibit "A";

         (h) The Vendor Contracts (as defined in Section 1.1(n) of the Asset
Purchase Agreement) listed on the Schedule of Assigned Assets attached hereto as
Exhibit "A";

     2.2 CONSENTS TO ASSIGNMENT. Seller represents and warrants that the
Assigned Assets, as reasonably required by Purchaser including without
limitation the Customer Contracts, are assumable by Purchaser according to their
terms. Seller shall, as a condition of the Closing, obtain all necessary
consents for the assignment of the Assigned Assets as required in Section 5.2(g)
of the Asset Purchase Agreement.

     2.3 SELLING PARTIES' CONTINUING OBLIGATION. From and after the Closing,
Selling Parties shall promptly refer all inquiries with respect to the Assigned
Assets to Purchaser. In addition, Selling Parties shall execute such documents
and financing statements as Purchaser may reasonably request from time to time
to evidence transfer of the Assigned Assets to Purchaser, including any
necessary assignments of financing statements affecting the Assigned Assets.

     2.4 ASSUMPTION BY PURCHASER. Subject to all the terms and conditions of
this Agreement and the Asset Purchase Agreement, Purchaser hereby accepts the
assignment of the Assigned Assets and agrees to assume all of the terms,
covenants, obligations and conditions imposed upon Seller in its capacity as a
contracting party with respect to the Assigned Assets, except for those
obligations and liabilities set forth on the Schedule of Excluded Liabilities.

                                    ARTICLE 3

                    ASSIGNMENT AND ASSUMPTION OF LIABILITIES

     3.1 ASSIGNMENT BY SELLER. Subject to the Closing of the transaction
contemplated in the Asset Purchase Agreement and subject to the terms and
conditions set forth herein and in the Asset

                                       3
<PAGE>   80
Purchase Agreement, Seller hereby assigns to Purchaser the Assumed Liabilities
listed on the Schedule of Assumed Liabilities attached hereto as Exhibit "B."

     3.2 ASSUMPTION BY PURCHASER. Subject to all the terms and conditions of
this Agreement and the Asset Purchase Agreement, Purchaser hereby assumes from
Seller the Assumed Liabilities and agrees to assume all of the terms covenants,
obligations and conditions imposed upon Seller with respect to the Assumed
Liabilities.

     3.3 SELLING PARTIES' CONTINUING OBLIGATION. From and after the Closing,
Selling Parties shall promptly refer all inquiries with respect to the Assumed
Liabilities to Purchaser. In addition, Selling Parties shall execute such
documents and financing statements as Purchaser may reasonably request from time
to time to evidence transfer of the Assumed Liabilities to Purchaser, including
any necessary assignments of financing statements affecting the Assumed
Liabilities.

     3.4 AMOUNT OF ASSUMED LIABILITIES. The amount of the Assumed Liabilities
shall be as set forth on the Pre-Closing Date Balance Sheet as approved by
Seller and Purchaser pursuant to Section 1.2(c) of the Asset Purchase Agreement
and as adjusted under the Post-Closing Accounting Adjustments. The aggregate
amount of the Assumed Liabilities as of the Closing shall not exceed the amount
determined in accordance with Section 1.2(c) of the Asset Purchase Agreement.

     3.5 NO LIABILITY FOR EXCLUDED LIABILITIES. Selling Parties shall be
responsible for paying or otherwise satisfying the Excluded Liabilities and
Purchaser shall have no liability of any kind, contingent or otherwise, with
respect to the Excluded Liabilities.

     3.6 CONDITION TO ASSIGNMENT AND ASSUMPTION. Any obligations of Purchaser to
assume the Assumed Liabilities are subject to the fulfillment (or the written
waiver thereof by Purchaser) of each of the conditions precedent set forth in
Section 5.2 of the Asset Purchase Agreement. Purchaser may waive any or all of
the conditions in whole or in part without prior notice; provided, however, that
no such waiver of a condition shall constitute a waiver by Purchaser of any of
Purchaser's other rights or remedies, at law or in equity, if Selling Parties
are in default of any of their representations, warranties, or covenants
contained in the Asset Purchase Agreement.

     3.7 INDEMNIFICATION. This Agreement is subject to the indemnification
provisions set forth in Article 8 of the Asset Purchase Agreement.

                                    ARTICLE 4

                            MISCELLANEOUS PROVISIONS

     4.1 ASSIGNMENT BY PURCHASER. Purchaser shall have the right to assign this
Agreement and to assign its rights and delegate its duties under this Agreement,
either in whole or in part, at any time and without Seller's consent. Purchaser
shall give Seller written notice of any such assignment. The assignment shall
neither affect or diminish any rights or duties that Seller or Purchaser may
have under this Agreement. Absent an express signed written agreement between
the parties to the contrary, no assignment of any of the rights or obligations
under this Agreement shall result in a

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<PAGE>   81
novation or in any way release the Selling Parties from their obligations under
this Agreement.

     4.2 JOINT AND SEVERAL LIABILITY. Selling Parties and Seller shall be
jointly and severally liable for the obligations of Selling Parties or Seller
pursuant to this Agreement.

     4.3 COSTS AND EXPENSES. Except for liabilities expressly assumed by
Purchaser in this Agreement, each of the parties will bear its own expenses in
connection with negotiation and the consummation of the transactions
contemplated by this Agreement. Each party shall be solely responsible for its
respective legal, accounting, and other out-of-pocket expenses.

     4.4 GOVERNING LAW AND VENUE. This Agreement and any interpretation hereof
and the resolution of any dispute hereunder shall be governed by the laws of the
State of California, and subject to the parties' obligation to arbitrate and
dispute any action to enforce any provision of this Agreement or to obtain any
remedy with respect hereto may be brought in the appropriate state or federal
court in San Diego County, California. For this purpose each party hereto hereby
expressly and irrevocably consents to the jurisdiction of said court, it being
understood and agreed that the parties are obligated to arbitrate disputes
between them pursuant to Section 4.13 below.

     4.5 INTERPRETATION. This Agreement shall not be interpreted against a party
by virtue of such party's participation in the drafting of the Agreement or any
provisions herein.

     4.6 AMENDMENT. This Agreement may be amended, modified, or supplemented
only by an instrument in writing signed by all parties to this Agreement whose
rights or obligations are affected by such amendment, modification or
supplement.

     4.7 INUREMENT. This Agreement shall be binding upon and inure to the
benefit to the successors and/or assigns of the parties hereto.

     4.8 NOTICES.

         (A) METHOD OF DELIVERY. Any notice, request, demand, consent, approval
or other communication (hereafter "notice") required or permitted under this
Agreement or by law shall be in writing and delivered by any of the following
means: (1) personally delivering the notice to a senior officer or duly
authorized representative of the other party, (2) depositing the notice in the
United States mail, postage prepaid, duly certified (return-receipt requested),
(3) sending the notice by a commercial overnight delivery service (such as
FedEx) which maintains delivery records, or (4) sending the notice by electronic
facsimile or telecopier ("fax") (with the sending party retaining evidence of
the time and date of transmission). Confirmations of any notices sent by fax
shall be sent by mail as provided above.

         (B) ADDRESSES. Notices shall be addressed as follows:

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<PAGE>   82
             If to Selling Parties:             Simula, Inc.
                                                2700 North Central Avenue
                                                Suite 1100
                                                Phoenix, AZ 85004
                                                Att.: Bradley P. First
                                                Fax No.: (602) 631-9005

             If to Purchaser:                   Weber Aircraft, Inc.
                                                2000 Weber Drive
                                                Gainesville, TX 76240
                                                Attn.: Michel Labarre
                                                Fax No. (940) 668-4853

             With a copy to:                    Zodiac S.A.
                                                2, Rue Maurice Mallet
                                                92137, Issy-les-Molineaux Cedex
                                                France
                                                Att.: Jean-Jacques Jegou
                                                Fax No: (011-331) 41 23 23 62

             With a copy to:                    Hillyer & Irwin
                                                550 West C Street, 16th Floor
                                                San Diego, CA 92101
                                                Attn: William A. Reavey, Esq.
                                                Fax No. (619) 595-1313

Any party may, from time to time, by written notice to the other, designate a
different address which shall be substituted for that specified above.

         (C) EFFECTIVENESS. All notices shall be deemed effective upon receipt.
If personally delivered, notices shall be deemed received at the time of
delivery. If sent by mail, notices shall be deemed fully delivered and received
three (3) business days after the date of the postmark on the certified mail
receipt. If sent by commercial overnight delivery service, notices shall be
deemed fully delivered and received one (1) business day after the date of
deposit with such commercial overnight delivery service. If sent by fax, notices
shall be deemed received twenty-four (24) hours after transmission. Notices may
not be sent by e-mail. Rejection or other refusal to accept a notice or the
inability to deliver the same because of a changed address of which no notice
was given shall be deemed to be receipt of the notice sent. In the event of a
postal strike, all notices shall be personally delivered, sent by commercial
overnight delivery service, or sent by fax.

     4.9 HEADINGS. The headings of the sections of this Agreement are for the
convenience of reference only, and do not form a part hereof, and in no way
modify, interpret or construe the meanings of the parties.

                                        6
<PAGE>   83
     4.10 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one Agreement. The facsimile signatures of the parties shall be
deemed to constitute original signatures, and facsimile copies hereof shall be
deemed to constitute duplicate original counterparts.

     4.11 WAIVER. Any term or provision of this Agreement may be waived at any
time by the party entitled to the benefit thereof by a written instrument duly
executed by such party. The failure of any of the parties to this Agreement to
require the performance of term or obligation under this Agreement or the waiver
by any of the parties to this Agreement of any breach hereunder shall not
prevent subsequent enforcement of such term or obligation or be deemed a waiver
of any subsequent breach hereunder.

     4.12 SEVERABILITY. In case any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement but this Agreement shall be construed as
if such invalid or illegal or unenforceable provision or part of a provision had
never been contained herein. In the event of any inaccuracy or breach of any
representation, warranty, covenant or agreement contained in this Agreement, the
rights and remedies of the aggrieved party shall not be impaired or limited by
reason of the fact that the act, omission, occurrence, or other statement of
facts giving rise to such inaccuracy or breach may also be the subject matter of
any other representation, warranty, covenant or agreement contained in this
Agreement (or any other agreement between the parties) as to which there is no
inaccuracy or breach.

     4.13 ARBITRATION.

         (A) GENERAL. Any controversy, claim, or dispute among the parties
hereto arising out of or related to this Agreement or the breach thereto, which
cannot be settled amicably by the parties, shall be submitted for binding
arbitration in accordance with the provisions contained herein and in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
("Rules"); provided, however, that notwithstanding any provisions of such Rules,
the parties shall have the right to take depositions and obtain discovery
regarding the subject matter of the arbitration, as provided in Title III of
Part 4 (commencing with Section 1985) of the California Code of Civil Procedure.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The arbitrator shall determine all questions of fact and
law relating to any controversy, claim, or dispute hereunder, including but not
limited to whether or not any such controversy, claim, or dispute is subject to
the arbitration provisions contained herein.

         (B) THIRD PARTY CONTROVERSY. If a controversy, claim, or dispute arises
among the parties hereto which is subject to the arbitration provisions
hereunder, and there exists or later arises a controversy, claim, or dispute
between the parties hereto and any third party, which controversy, claim, or
dispute arises out of or relates to the same transaction or series of
transactions, said third party controversy, claim, or dispute shall be
consolidated with the arbitration proceedings

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<PAGE>   84
hereunder; provided, however, that any such third party must be a party to an
agreement with a party hereto which provides for arbitration of disputes
thereunder in accordance with rules and procedures substantially the same in all
material respects as provided for herein or, if not, must consent to arbitration
as provided for hereunder.

         (C) VENUE. All arbitration proceedings shall be held in San Diego,
California.

         (D) NOTICES. Notice of the demand for arbitration shall be filed in
writing with the other party to this Agreement and with the American Arbitration
Association.

     4.14 ATTORNEYS' FEES. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Agreement, or any judgment based on this
Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy,
arbitration, declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all attorneys' fees and all costs, including but not limited to service of
process costs, filing fees, court and court reporter costs, investigative costs,
expert witness fees and the cost of any bonds, whether taxable or not. Any such
reimbursement shall be included in any judgment or final order or award issued
in that proceeding. "Prevailing Party" means the party determined to most nearly
prevail and not necessarily the one in whose favor a judgment or award is
rendered. Attorneys' fees incurred in enforcing any judgment or award are
recoverable as a separate item, and this provision for post-judgment or
post-award attorneys' fees shall survive any judgment or award and shall not be
deemed merged into any judgment or award.

     4.15 CONSTRUCTION. Whenever the context so requires in this Agreement, all
words used in the singular shall be construed to have been used in the plural
(and vice versa), each gender shall be construed to include any other genders,
and the word "person" shall be construed to include a natural person, a
corporation, a firm, a partnership, a joint venture, a trust, an estate, or any
other entity.

     4.16 AUTHORITY OF SIGNATORIES. Each individual signing this Agreement on
behalf of a corporation warrants that he or she is duly authorized to execute
and deliver this Agreement on behalf of the corporation, in accordance with a
duly adopted resolution of the board of directors of the corporation or in
accordance with the bylaws of the corporation, and that this Agreement is
binding on the corporation in accordance with its terms.

     4.17 ENTIRE AGREEMENT. This Agreement is one of a series of agreements
executed as part of an integrated transaction described in the Asset Purchase
Agreement. This Agreement, together with the Asset Purchase Agreement and with
all other agreements, assignments and exhibits expressly referred to therein or
herein, constitutes the entire agreement between the parties hereto with respect
to the subject matter of this Agreement. All prior agreements, representations,
negotiations and understandings of the parties hereto, oral or written, express
or implied, are hereby superseded and merged herein. To the maximum extent
permitted by law, each party expressly waives any right of

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<PAGE>   85
rescission and all claims for damages by reason of any statement,
representation, warranty, promise and/or agreement, if any, not contained or
referenced to in this Agreement.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                        9
<PAGE>   86
         IN WITNESS WHEREOF, the parties hereto have caused this Assignment and
Assumption Agreement to be executed effective as of the date first set forth
above.

"SELLER:"                                   AIRLINE INTERIORS, INC., an Arizona
                                            corporation

                                            By: /s/ Bradley P. Forst
                                            Printed Name: Bradley P. Forst
                                            Its: Secretary

"SIMTEC:"                                   SIMULA TRANSPORTATION EQUIPMENT
                                            CORPORATION, an Arizona corporation

                                            By: /s/ Bradley P. Forst
                                            Printed Name: Bradley P. Forst
                                            Its: Secretary

"SIMULA:"                                   SIMULA, INC., an Arizona corporation

                                            By:/s/ James C. Dodd
                                            Printed Name: James C. Dodd
                                            Its: CFO

"PURCHASER:"                                WEBER AIRCRAFT, INC.,
                                            a Delaware corporation

                                            By: /s/ Michael Labarre
                                            Printed Name:  Michael Labarre
                                            Its: President

                                       10
<PAGE>   87
                                   EXHIBIT "A"

                           SCHEDULE OF ASSIGNED ASSETS

     1. All Accounts Receivable (as defined in Section 1.1(a) of the Asset
Purchase Agreement).

     2. The Customer Contracts to be assigned to and assumed by Purchaser shall
consist of those Customer Contracts identified as assumed with an indication of
"yes" on Schedule 1.1(c).

     3. No Equipment Leases shall be assigned to and assumed by Purchaser.

     4. All Governmental Airworthiness Approvals (as defined in Section 1.1(e)
of the Asset Purchase Agreement).

     5. All Manufacturers' Warranties (as defined in Section 1.1(h) of the Asset
Purchase Agreement).

     6. There are no Other Assets that will be assigned to and assumed by
Purchaser.

     7. The Software Licenses to be assigned and assumed by Purchaser shall
consist of those Software Licenses identified as assumed with an indication of
"yea" on Schedule 1.1(j).

     8. The Vendor Contracts to be assigned to and assumed by Purchaser shall
consist of those Vendor Contracts identified as assumed on Schedule 1.1(n).
<PAGE>   88
                                   EXHIBIT "B"

                         SCHEDULE OF ASSUMED LIABILITIES

Purchaser shall assume only those liabilities set forth on Schedule 0.3(e).
<PAGE>   89
                                   EXHIBIT "C"

                        SCHEDULE OF EXCLUDED LIABILITIES

     Purchaser shall not assume any liabilities that are not specifically
identified on Schedule 0.3(e), including without limitation those liabilities
listed on Schedule 0.3(v), the Schedule of Excluded Liabilities.
<PAGE>   90
                                                                  Exhibit 10.40d

                                  BILL OF SALE
                               (Section 0.3(p)(3))

         This BILL OF SALE (the "Bill of Sale") is made as of this 1st day of
February 2000 by and between AIRLINE INTERIORS, INC., an Arizona corporation
("Seller"), and WEBER AIRCRAFT, INC., a Delaware corporation ("Purchaser"), with
reference to the facts set forth in the Recitals below.

                                    RECITALS

         A. Seller and Purchaser are parties to that certain Asset Purchase
Agreement dated December 24, 1999, as amended (the "Asset Purchase Agreement").
This Bill of Sale is being executed pursuant to Section 0.3(p)(3) of the Asset
Purchase Agreement.

         B. Seller owns all right, title and interest to and in the following
personal property (the "Personal Property"):

            (1) The Books and Records (as defined in Section 1.1(b) of the
Asset Purchase Agreement);

            (2) The Included Inventories (as defined in Section 1.1(f) of
the Asset Purchase Agreement);

            (3) The Software Licenses (as defined in Section 1.1(j) of the
Asset Purchase Agreement);

            (4) The Supplies (as defined in Section 1.1(k) of the Asset
Purchase Agreement);

            (5) The Tangible Personal Property (as defined in Section
1.1(l) of the Asset Purchase Agreement); and

            (6) The Tooling (as defined in Section 1.1(m) of the Asset
Purchase Agreement).

         C. Section 1.1 of the Asset Purchase Agreement provides that, as a part
of the sale of the

                                        1
<PAGE>   91
assets contemplated in the Asset Purchase Agreement, Seller shall convey to
Purchaser all of its right, title and interest in and to the Personal Property.

         D. The parties are executing this Bill of Sale in order to convey the
Personal Property from Seller to Purchaser pursuant to the provisions of the
Asset Purchase Agreement.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the
above Recitals and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

         1. INTERPRETATION. This Bill of Sale is intended to implement the terms
and conditions of the Asset Purchase Agreement. In the event of a conflict
between the provisions of this Bill of Sale and those of the Asset Purchase
Agreement, the Asset Purchase Agreement shall control. Terms with initial
capital letters are defined terms which shall have the respective meanings given
them in the Asset Purchase Agreement, unless the context of this Bill of Sale
requires otherwise.

         2. TRANSFER OF PERSONAL PROPERTY. Subject to all the terms and
conditions of the Asset Purchase Agreement and this Bill of Sale, Seller does
hereby give, grant, bargain, sell, transfer, set over, assign, convey, release,
confirm and deliver to Purchaser, free and clear of all liens, charges and
encumbrances, and Purchaser hereby accepts, all of Seller's right, title and
interest in and to the Personal Property.

         3. FURTHER ASSURANCES. Seller agrees, without cost to Purchaser, to
execute all instruments and documents and take all actions as may be reasonably
required to effectuate this Bill of Sale, including without limitation to
execute all rightful oaths, assignments, powers of attorney and other documents
which Purchaser shall consider desirable or necessary for vesting title to the
Personal Property.

         4. EFFECTIVE DATE. This Bill of Sale shall be effective as of the
Closing.

         5. SELLER'S WARRANTIES.

            (A) SELLER'S AUTHORITY. Seller represents, warrants and covenants
that the persons executing this Bill of Sale on behalf of Seller have been duly
authorized to do so by requisite corporate action and that this Bill of Sale
shall be binding and enforceable against Seller.

            (B) DEFENSE OF TITLE. Seller does, for itself, its successors and
assigns, covenant and agree to warrant and defend the title to the Personal
Property against any and all claims and demands against the Personal Property.

         6. GOVERNING LAW AND VENUE. This Bill of Sale and any interpretation
hereof and the

                                        2
<PAGE>   92
resolution of any dispute hereunder shall be governed by the laws of the State
of California. Disputes arising out of this Bill of Sale shall be arbitrated as
provided in the Asset Purchase Agreement.

         7.       ATTORNEYS' FEES. Should any party hereto employ an attorney
for the purpose of enforcing or construing this Bill of Sale, or any judgment
based on this Bill of Sale, in any legal proceeding whatsoever, including
insolvency, bankruptcy, arbitration, declaratory relief or other litigation, the
prevailing party shall be entitled to receive from the other party or parties
thereto reimbursement for all attorneys' fees and all costs, including but not
limited to service of process costs, filing fees, court and court reporter
costs, investigative costs, expert witness fees and the cost of any bonds,
whether taxable or not. Any such reimbursement shall be included in any judgment
or final order or award issued in that proceeding. "Prevailing Party" means the
party determined to most nearly prevail and not necessarily the one in whose
favor a judgment or award is rendered. Attorneys' fees incurred in enforcing any
judgment or award are recoverable as a separate item, and this provision for
post-judgment or post-award attorneys' fees shall survive any judgment or award
and shall not be deemed merged into any judgment or award.

         IN WITNESS WHEREOF, Seller and Purchaser have caused their duly
authorized representatives to execute and deliver this Bill of Sale as of the
day and year first above written.

"SELLER":                    AIRLINE INTERIORS, INC,
                             an Arizona corporation

                             By: /s/ Bradley P. Forst
                                 ________________________________

                             Printed name: Bradley P. Forst
                                           ______________________

                             Its: Secretary
                                  _______________________________

"PURCHASER":                 WEBER AIRCRAFT, INC.,
                             a Delaware corporation

                             By: /s/ Michael LaBarre
                                 ________________________________

                             Printed Name: Michael LaBarre
                                           ______________________

                             Its: President
                                  _______________________________

                                        3

<PAGE>   93

                                                                  EXHIBIT 10.40e

                           NON-COMPETITION AGREEMENT
                                (SECTION 5.2(l))

         This NON-COMPETITION AGREEMENT (the "Agreement") is made as of this 1st
day of February 2000, by and between AIRLINE INTERIORS, INC., an Arizona
corporation ("Seller"), SIMULA TRANSPORTATION EQUIPMENT CORPORATION, an Arizona
corporation ("Simtec"), SIMULA TECHNOLOGIES, INC., an Arizona corporation
("STI"), SIMULA, INC., an Arizona corporation ("Simula"), and WEBER AIRCRAFT,
INC., a Delaware corporation ("Weber"), with reference to the facts set forth in
the Recitals below.

                                    RECITALS

         A. Simula, Simtec and Seller are sometimes collectively referred to as
the "Selling Parties."

         B. STI is an affiliate of Simula.

         C. Selling Parties and Weber are parties to that certain Asset Purchase
Agreement dated December 24, 1999, as amended (the "Asset Purchase Agreement").
Pursuant to the terms and conditions of the Asset Purchase Agreement, Seller has
sold the Included Assets to Seller.

         D. Selling Parties and Weber are also parties to that certain
Assignment of Intellectual Property Of even date herewith (the "IP Assignment").

         E. Simula, STI and Weber are also parties to that certain Patent
License Agreement of even date herewith (the "Patent License Agreement")
concerning the Shared Use Patent.

         F. As a material part of the transactions contemplated by the Asset
Purchase Agreement, the IP Assignment, and the Patent License Agreement, Selling
Parties desire to protect Weber, and Weber desires to be protected, against
certain competitive activities on the part of Selling Parties and STI so that
Weber will obtain the full benefit of the Included Assets, including without
limitation, the Intellectual Property.

         G. The parties are executing this Agreement in order to memorialize
their understanding concerning the foregoing.

                                        1
<PAGE>   94
                                   AGREEMENT

         NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the
above Recitals, the mutual covenants contained below in this Agreement and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

         1. INTERPRETATION. This Agreement is intended to implement the terms
and conditions of the Asset Purchase Agreement. In the event of a conflict
between the provisions of this Agreement and those of the Asset Purchase
Agreement, the Asset Purchase Agreement shall control. Terms with initial
capital letters are defined terms which shall have the respective meanings given
them in the Asset Purchase Agreement unless the context of this Agreement
requires otherwise.

         2. CERTAIN DEFINITIONS.

                  (a) BUSINESS JET MARKET. The term "Business Jet Market" shall
mean the executive or business jet aircraft market.

                  (b) COMMERCIAL AIRLINE MARKET. The term "Commercial Airline
Market" shall mean the commercial airline market, which expressly includes
commuter airliners.

                  (c) CONFIDENTIAL INFORMATION. The term "Confidential
Information" shall mean any information which is proprietary or unique to the
Business, including without limitation, customer lists or other customer
information, trade secrets, matters of a technical nature such as processes,
devices, techniques, data and formulas, research subjects and results, know-how,
or marketing methods, plans or strategies, financial information, or any
observations, data, written plans or proposals, records or documents used by or
relating to the Business, or the reasonably foreseeable business of Weber,
whether or not such information was developed, devised or otherwise created in
whole or in part by the efforts of Selling Parties, unless such information is a
matter of public knowledge, except as a result of unauthorized disclosure to the
general public by Selling Parties.

                  (d) RESTRICTED BUSINESS. The term "Restricted Business" shall
mean any business activity relating to (1) the design, development,
manufacturing, marketing, distribution or sale of any passenger seats of any
type or design (regardless of the technology involved) in or for the use in
Commercial Airline Market in any part of the Territory and (2) the design,
development, manufacturing, marketing, distribution or sale of any products
utilizing the technology and inventions covered by the Shared Use Patent in the
Commercial Airline Market or the Business Jet Market in any part of the
Territory.

                  (e) PERSON. The term "Person" shall mean and include an
individual, a partnership, a corporation, an association, a company, a trust, a
joint venture, an unincorporated organization or a governmental entity.

                  (f) TERRITORY. The term "Territory" shall mean any territory
or country in the world.

                                        2
<PAGE>   95
         3. COVENANT NOT TO COMPETE. Subject to all the terms and conditions of
this Agreement, for a period of ten (10) years commencing with the Closing Date,
Selling Parties and STI covenant and agree that they shall not, directly or
indirectly, either as principal, agent, manager, owner, partner, shareholder, or
otherwise as a participant in any other capacity:

                  (a) NO INVESTMENT IN RESTRICTED BUSINESS. Own, manage,
operate, engage in, control, assist, give or lend funds to or otherwise finance,
consult with, be employed by or an agent for, participate in, or be connected in
any manner with, or acquire any ownership or equity interest in any Person
involved, engaged in or participating in the Restricted Business, directly or
indirectly.

                  (b) NO SOLICITATION OF CUSTOMERS. Solicit, divert, or take
away or attempt to solicit, divert or take away from Weber any of the Business,
or any present customer of the Business, or any customer who does business with
Weber during said period.

                  (c) NO PRODUCT DEVELOPMENT. Design, develop, manufacture,
assemble, distribute, sell, market, service, support, assist with or modify any
product for use in the Restricted Business; provided, however, that the Selling
Parties may retain their current repair and refurbishment business for
commercial airline aircraft passenger seats and retain their current testing
services business at STI.

         4. NON-DISCLOSURE COVENANT. For a period of ten (10) years commencing
with the Closing Date, Selling Parties and STI covenant and agree that they will
not disclose, reveal, divulge or make known to any Person (other than Weber or
its affiliates) any Confidential Information that relates to the Business or the
reasonably foreseeable business of Weber or any of its affiliates.

         5. NON-INTERFERENCE COVENANT. For a period of ten (10) years commencing
with the Closing Date, Selling Parties and STI covenant and agree that they will
not, whether for their own account or for the account of any other Person,
directly or indirectly, (a) hire, offer to hire, induce or attempt to induce any
Person who is an employee of Weber or employ such individual for a period of six
(6) months after the Person terminates employment with Weber; or (b) solicit any
supplier to Weber to purchase or distribute information, products or services of
or on behalf of Selling Parties and/or STI that are competitive with the
information, products or services provided by Weber.

         6. PERMITTED COMPETITION. Notwithstanding anything in this Agreement to
the contrary, it is agreed that Selling Parties and STI may (a) use the
technology covered by the Shared Use Patent to design, develop, manufacture,
market, distribute or sell passenger seats for use in the military aviation
business or executive helicopter and the general aviation markets, as more fully
provided in the Patent License Agreement, (b) design, develop, manufacture,
market, distribute or sell any products not utilizing the technology covered by
the Shared Use Patent for use in the Business Jet Market, and (c) complete a
certain amended purchase order dated December 21, 1999 issued to STI by Britax
Contours for four hundred and seventy (470) 16G load limiting energy absorber
devices for installation in said customer's commercial airline aircraft
passenger seats. it is agreed that said Britax order shall be completed no later
than september 30, 2000. STI shall be solely responsible for resolving all
warranty and other claims that may arise out of said Britax order. STI shall not
accept any additional follow-up orders for such devices from Britax Contours.

                                        3
<PAGE>   96
         7. REASONABLENESS OF RESTRICTIONS; REMEDIES. Selling Parties and STI
have carefully read all of the terms and conditions of this Agreement and have
given careful consideration to the covenants and restrictions imposed upon them
herein, and agree that the same are necessary for the reasonable and proper
protection of Weber and the Business and have been separately bargained for and
agree that Weber has been induced to enter into the Asset Purchase Agreement and
the Patent License Agreement by the representations of Selling Parties and STI
that they will abide by and be bound by each of the covenants and restrictions
that apply to them. Selling Parties and STI further acknowledge that each and
every one of the covenants and restrictions contained in this Agreement is
reasonable with respect to the subject matter, length of time and area embraced
therein, and agree that said covenants and restrictions shall be operative
during the full period or periods herein mentioned and throughout areas herein
described.

         8. SEVERABILITY AND ENFORCEABILITY. The covenants contained in this
Agreement shall be construed as if each covenant is divided into separate and
distinct covenants with respect to the Business, each capacity in which Selling
Parties and STI are prohibited from competing, and each part of the Territory.
Each such covenant shall constitute a separate and several covenant distinct
from all other such covenants. Each of the parties hereto recognizes that the
territorial restrictions contained herein are properly required for the adequate
protection of Weber. In the event that any covenant or any provision contained
in this Agreement shall for any reason be deemed invalid, illegal, or
unenforceable in any respect, any such invalidity, illegality, or
unenforceability shall not affect any other provision of this Agreement, and
this Agreement shall be construed as if such invalid, illegal, or unenforced
provision has been limited or modified (consistent with its general intent) to
the extent necessary so that it shall be valid, legal and enforceable. If it
shall not be possible to so limit or modify such invalid or illegal or
unenforceable provision or part of a provision, this Agreement shall be
construed as if such invalid or illegal or unenforceable provision or part of a
provision had never been contained herein, and the parties will use their best
efforts to substitute a valid, legal, and enforceable provision which, insofar
as practicable, implements the purpose and intention thereof.

         9. BREACH. Each provision of this Agreement to be performed by Selling
Parties and STI shall be deemed both a covenant and a condition and shall be a
material consideration for the performance of Weber's obligations under the
Asset Purchase Agreement and the Patent License Agreement. Any breach hereof by
Selling Parties and STI shall be deemed a material default under the Asset
Purchase Agreement, the Patent License Agreement, and this Agreement.

         10. REMEDIES. Selling Parties, STI and Weber acknowledge that (1) the
covenants and the restrictions contained in this Agreement are necessary,
fundamental and are required for the protection of Weber; (2) such covenants
relate to matters which are of a special, unique and extraordinary character
that gives each of such covenants a special, unique, and extraordinary value;
and (3) a breach of any covenants or any other provision of this Agreement will
result in irreparable harm and damages to Weber which cannot be adequately
compensated by a monetary reward. Accordingly, it is expressly agreed that in
addition to all other remedies available at law or in equity, Weber shall be
entitled to the immediate remedy of a temporary restraining order, preliminary
injunction, or such other form of injunctive or equitable relief as maybe used
by any court of competent jurisdiction to restrain and enjoin Selling Parties
and STI from breaching any such covenant or provision or to specifically enforce
the provisions hereof. All rights, remedies,

                                        4
<PAGE>   97
undertakings, obligations, options, covenants, conditions and agreements
contained in this Agreement or provided by law shall be cumulative and no one of
them shall be exclusive of any other. A party may pursue any one or more of its
rights, options or remedies hereunder or may seek damages or specific
performance in the event of the other party's breach hereunder, or may pursue
any other remedy by law or equity, whether or not stated in this Agreement.

         11. COSTS AND EXPENSES. Each of the parties will bear its own expenses
in connection with the negotiation and the consummation of the transactions
contemplated by this Agreement. Each party shall be solely responsible for its
respective legal, accounting, and other out-of-pocket expenses.

         12. GOVERNING LAW AND VENUE. This Agreement and any interpretation
hereof and the resolution of any dispute hereunder shall be governed by the laws
of the State of California, and subject to the parties' obligation to arbitrate
and dispute any action to enforce any provision of this Agreement or to obtain
any remedy with respect hereto may be brought in the appropriate state or
federal court in San Diego County, California. For this purpose each party
hereto hereby expressly and irrevocably consents to the jurisdiction of said
court, it being understood and agreed that the parties are obligated to
arbitrate disputes between them pursuant to Section 21.

         13. INTERPRETATION. This Agreement shall not be interpreted against a
party by virtue of such party's participation in the drafting of the Agreement
or any provisions herein.

         14. AMENDMENT. This Agreement may be amended, modified, or supplemented
only by an instrument in writing signed by all parties to this Agreement whose
rights or obligations are affected by such amendment, modification or
supplement.

         15. INUREMENT. This Agreement shall be binding upon and inure to the
benefit to the successors and/or assigns of the parties hereto.

         16. NOTICES.

                  (a) METHOD OF DELIVERY. Any notice, request, demand, consent,
approval or other communication (hereafter "notice") required or permitted under
this Agreement or by law shall be in writing and delivered by any of the
following means: (1) personally delivering the notice to a senior officer or
duly authorized representative of the other party, (2) depositing the notice in
the United States mail, postage prepaid, duly certified (return-receipt
requested), (3) sending the notice by a commercial overnight delivery service
(such as FedEx) which maintains delivery records, or (4) sending the notice by
electronic facsimile or telecopier ("fax") (with the sending party retaining
evidence of the time and date of transmission). Confirmations of any notices
sent by fax shall be sent by mail as provided above.

                  (b) ADDRESSES. Notices shall be addressed as follows:

                                        5
<PAGE>   98
<TABLE>
<S>               <C>                                <C>
                  If to Seller:                      Airline Interiors, Inc.
                                                     2700 North Central Avenue
                                                     Suite 1100
                                                     Phoenix, AZ 85004
                                                     Attn: Bradley P. Forst, Esq.
                                                     Fax No.:  (602) 631-9005

                  If to Simula:                      Simula, Inc.
                                                     2700 North Central Avenue
                                                     Suite 1100
                                                     Phoenix, AZ 85004
                                                     Attn: Bradley P. Forst, Esq.
                                                     Fax No.:  (602) 631-9005

                  If to Simtec:                      Simula Transportation Equipment Corporation
                                                     2700 North Central Avenue
                                                     Suite 1100
                                                     Phoenix, AZ 85004
                                                     Attn: Bradley P. Forst, Esq.
                                                     Fax No.:  (602) 631-9005

                  If to STI:                         Simula Technologies, Inc.
                                                     2700 North Central Avenue
                                                     Suite 1100
                                                     Phoenix, AZ 85004
                                                     Attn: Bradley P. Forst, Esq.
                                                     Fax No.:  (602) 631-9005

                  If to Weber:                       Weber Aircraft, Inc.
                                                     2000 Weber Drive
                                                     Gainesville, Texas 76240
                                                     Attn:  Michel Labarre
                                                     Fax:  (940) 668-4853

                  With copies to:                    Zodiac, S.A.
                                                     2, rue Maurice Mallet
                                                     92137, Issy-les-Moulineaux Cedex
                                                     France
                                                     Attn:  Jean-Jacques Jegou
                                                     Fax No: (011-331) 41 23 23 62
</TABLE>

                                        6
<PAGE>   99
<TABLE>
<S>                                                  <C>
                                                     Hillyer & Irwin
                                                     550 West C Street, 16th Floor
                                                     San Diego, CA 92101
                                                     Attn: William A. Reavey, Esq.
                                                     Fax No.: (619) 595-1313
</TABLE>

Any party may, from time to time, by written notice to the other, designate a
different address which shall be substituted for that specified above. It is
agreed that separate notices need not be sent to Simtec. Notices sent to Simula
shall be deemed to have been sent to Simtec.

                  (c) EFFECTIVENESS. All notices shall be deemed effective upon
receipt. If personally delivered, notices shall be deemed received at the time
of delivery. If sent by mail, notices shall be deemed fully delivered and
received three (3) business days after the date of the postmark on the certified
mail receipt. If sent by commercial overnight delivery service, notices shall be
deemed fully delivered and received one (1) business day after the date of
deposit with such commercial overnight delivery service. If sent by fax, notices
shall be deemed received twenty-four (24) hours after transmission. Notices may
not be sent by e-mail. Rejection or other refusal to accept a notice or the
inability to deliver the same because of a changed address of which no notice
was given shall be deemed to be receipt of the notice sent. In the event of a
postal strike, all notices shall be personally delivered, sent by commercial
overnight delivery service, or sent by fax.

         17. HEADINGS. The headings of the sections of this Agreement are for
the convenience of reference only, and do not form a part hereof, and in no way
modify, interpret or construe the meanings of the parties.

         18. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one Agreement. The facsimile signatures of the parties shall be
deemed to constitute original signatures, and facsimile copies hereof shall be
deemed to constitute duplicate original counterparts.

         19. WAIVER. Any term or provision of this Agreement may be waived at
any time by the party entitled to the benefit thereof by a written instrument
duly executed by such party. The failure of any of the parties to this Agreement
to require the performance of term or obligation under this Agreement or the
waiver by any of the parties to this Agreement of any breach hereunder shall not
prevent subsequent enforcement of such term or obligation or be deemed a waiver
of any subsequent breach hereunder.

         20. SEVERABILITY. In case any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement but this Agreement shall be construed as
if such invalid or illegal or unenforceable provision or part of a provision had
never been contained herein. In the event of any inaccuracy or breach of any
representation, warranty, covenant or agreement contained in this Agreement, the
rights and remedies of the aggrieved party shall not be impaired or limited by
reason of the fact that the act, omission, occurrence, or other statement of
facts giving rise to such inaccuracy or breach may also be the subject matter of
any

                                        7
<PAGE>   100
other representation, warranty, covenant or agreement contained in this
Agreement (or any other agreement between the parties) as to which there is no
inaccuracy or breach.

         21. ARBITRATION.

                  (a) GENERAL. Any controversy, claim, or dispute among the
parties hereto arising out of or related to this Agreement or the breach
thereto, which cannot be settled amicably by the parties, shall be submitted for
binding arbitration in accordance with the provisions contained herein and in
accordance with the Commercial Arbitration Rules of the American Arbitration
Association ("Rules"); provided, however, that notwithstanding any provisions of
such Rules, the parties shall have the right to take depositions and obtain
discovery regarding the subject matter of the arbitration, as provided in Title
III of Part 4 (commencing with Section 1985) of the California Code of Civil
Procedure. Judgment upon the award rendered by the arbitrator may be entered in
any court having jurisdiction. The arbitrator shall determine all questions of
fact and law relating to any controversy, claim, or dispute hereunder, including
but not limited to whether or not any such controversy, claim, or dispute is
subject to the arbitration provisions contained herein.

                  (b) THIRD-PARTY CONTROVERSY. If a controversy, claim, or
dispute arises among the parties hereto which is subject to the arbitration
provisions hereunder, and there exists or later arises a controversy, claim, or
dispute between the parties hereto and any third party, which controversy,
claim, or dispute arises out of or relates to the same transaction or series of
transactions, said third party controversy, claim, or dispute shall be
consolidated with the arbitration proceedings hereunder; provided, however, that
any such third party must be a party to an agreement with a party hereto which
provides for arbitration of disputes thereunder in accordance with rules and
procedures substantially the same in all material respects as provided for
herein or, if not, must consent to arbitration as provided for hereunder.

                  (c) VENUE. All arbitration proceedings shall be held in San
Diego, California.

                  (d) NOTICES. Notice of the demand for arbitration shall be
filed in writing with the other parties to this Agreement and with the American
Arbitration Association., it being understood, however, that notices intended
for the Selling Parties need only be given to Simula and that separate notices
need not be given to AI or Simula.

         22. ATTORNEYS' FEES. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Agreement, or any judgment based on this
Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy,
arbitration, declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all attorneys' fees and all costs, including but not limited to service of
process costs, filing fees, court and court reporter costs, investigative costs,
expert witness fees and the cost of any bonds, whether taxable or not. Any such
reimbursement shall be included in any judgment or final order or award issued
in that proceeding. "Prevailing Party" means the party determined to most nearly
prevail and not necessarily the one in whose favor a judgment or award is
rendered. Attorneys' fees incurred in enforcing any judgment or award are
recoverable as a separate item, and this provision for post-judgment or
post-award attorneys' fees shall survive any judgment or award and shall not be
deemed merged into any judgment or award.

                                        8
<PAGE>   101
         23. CONSTRUCTION. Whenever the context so requires in this Agreement,
all words used in the singular shall be construed to have been used in the
plural (and vice versa), each gender shall be construed to include any other
genders, and the word "person" shall be construed to include a natural person, a
corporation, a firm, a partnership, a joint venture, a trust, an estate, or any
other entity.

         24. FURTHER ASSURANCES. Each party to this Agreement shall execute all
instruments and documents and take all actions as may be reasonably required to
effectuate this Agreement.

         25. AMENDMENTS. No addition to or modification of any provision
contained in this Agreement shall be effective unless fully set forth in a
writing signed by all parties.

         26. AUTHORITY OF SIGNATORIES. Each individual signing this Agreement on
behalf of a corporation warrants that he or she is duly authorized to execute
and deliver this Agreement on behalf of the corporation, in accordance with a
duly adopted resolution of the board of directors of the corporation or in
accordance with the bylaws of the corporation, and that this Agreement is
binding on the corporation in accordance with its terms.

         27. ENTIRE AGREEMENT. This Agreement is one of a series of agreements
executed as part of an integrated transaction described in the Asset Purchase
Agreement. This Agreement, together with the Asset Purchase Agreement and with
all other agreements, assignments and exhibits expressly referred to therein or
herein, constitutes the entire agreement between the parties hereto with respect
to the subject matter of this Agreement. All prior agreements, representations,
negotiations and understandings of the parties hereto, oral or written, express
or implied, are hereby superseded and merged herein. To the maximum extent
permitted by law, each party expressly waives any right of rescission and all
claims for damages by reason of any statement, representation, warranty, promise
and/or agreement, if any, not contained or referenced to in this Agreement.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                        9
<PAGE>   102
         IN WITNESS WHEREOF, the parties have caused their duly authorized
representatives to execute and deliver, this Non-Competition Agreement as of the
day and year first above written.

"SELLER"            AIRLINE INTERIORS, INC., an Arizona corporation
                    By:               /s/ Bradley P. Forst
                    Printed Name:         Bradley P. Forst
                    Its:                  Secretary

"SIMTEC"            SIMULA TRANSPORTATION EQUIPMENT CORPORATION, an Arizona
                    corporation
                    By:               /s/ Bradley P. Forst
                    Printed Name:         Bradley P. Forst
                    Its                   Secretary

"SIMULA"            SIMULA, INC., an Arizona corporation
                    By:               /s/ James C. Dodd
                    Printed Name:         James C. Dodd
                    Its:                  CFO

"STI"               SIMULA TECHNOLOGIES, INC., an Arizona corporation
                    By:               /s/ Bradley P. Forst
                    Printed Name:         Bradley P. Forst
                    Its:                  Secretary

"WEBER"             WEBER AIRCRAFT, INC., a Delaware corporation
                    By:               /s/ Michel Labarre
                                          Michel Labarre
                                          President

                                       10

<PAGE>   103

                            PATENT LICENSE AGREEMENT
                                  (SECTION 6.6)

     This PATENT LICENSE AGREEMENT (the "Agreement") is made as of the 1st day
of February 2000 by and between WEBER AIRCRAFT, INC., a Delaware corporation
("Licensor"), and SIMULA, INC., an Arizona corporation ("Licensee"), and SIMULA
TECHNOLOGIES, INC., an Arizona corporation ("STI"), with reference to the
following Recitals:

                                    RECITALS

     A. Licensor and Licensee, among others, are parties to that certain Asset
Purchase Agreement dated December 24, 1999, as amended (the "Asset Purchase
Agreement") and that certain Non-Competition Agreement of even date herewith
(the "Non-Compete Agreement").

     B. Licensee is the inventor and the former owner of United States Patent
No. 5,730,492 entitled "16 G Load-Limiting Seat Technology" issued on March 24,
1998 (the "Patent"). The Patent is referred to as the "Shared Use Patent" in the
Asset Purchase Agreement.

     C. Pursuant to the terms and conditions of the Asset Purchase Agreement,
Licensee has sold the Patent, and has assigned all of its right, title and
interest in and to the Patent to Licensor. Section 6.6 of the Asset Purchase
Agreement provides that Licensor shall grant Licensee and its affiliates a
license to utilize the Patent in the Included Markets (as defined below).

     D. STI is an affiliate of Licensee.

     E. The parties are executing this Agreement in order to memorialize their
understanding concerning the foregoing matters.

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the sale
of the Patent to Licensor, the above Recitals, the mutual covenants contained
below in this Agreement and other valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
<PAGE>   104
     1. INTERPRETATION. This Agreement is intended to implement Section 6.6 and
other provisions of the Asset Purchase Agreement referring to the licensing of
the Patent by Licensee. In the event of a conflict between the provisions of
this Agreement and those of the Asset Purchase Agreement, this Agreement shall
control. In the event of a conflict between this Agreement and the Non-Compete
Agreement, the Non-Compete Agreement shall control. Terms with initial capital
letters are defined terms which shall have the respective meanings given them in
the Asset Purchase Agreement, unless the context of this Agreement requires
otherwise.

     2. GRANT. Subject to all the terms and conditions of this Agreement,
including without limitation Section 3 below, Licensor hereby grants, and
Licensee and hereby accepts, a perpetual, worldwide, exclusive license (the
"License") to make, use, market and sell products utilizing the technology and
inventions set forth in the Patent. The grant of the License is extended only to
Licensee and not to STI or any other affiliates of Licensee. Notwithstanding the
foregoing, it is agreed that STI shall have the right to use the technology
covered by the Patent as provided in Section 6 of the Non-Competition Agreement.

     3. SCOPE. The scope of the License shall be limited to the military
aviation, executive and business helicopter and general aviation aircraft
markets anywhere in the world (collectively, the "Included Markets"). The
Included Markets shall not include either the Business Jet Market (as defined in
the Non-Compete Agreement) or the Commercial Airline Market (as defined in the
Non-Compete Agreement) (collectively, the "Excluded Markets"). Licensee shall
not design, develop, manufacture, market, distribute or sell any products
utilizing the technology or inventions covered by the Patent in, or for use in,
the Excluded Markets. Licensor shall not design, develop, manufacture, market,
distribute or sell any products utilizing the technology or inventions covered
by the Patent in, or for use in, the Included Markets.

     4. ROYALTIES. The License shall be royalty free and Licensee shall not be
obligated to make any payments to Licensor for the utilization of the technology
and inventions covered by the Patent.

     5. OWNERSHIP AND LICENSE OF IMPROVEMENTS. The parties agree that all
enhancements or betterments of the Patent or the technology set forth in the
Patent (collectively, the "Improvements") developed or acquired by Licensee, its
employees or agents during the term of this Agreement shall be considered a part
of the technology covered by the Patent and shall be owned solely by Licensor.
Licensee, its employees and agents shall not have any right, title or interest
in or to any Improvement; provided, however, that all Improvements shall be
licensed to Licensee subject to all the same terms and conditions of this
Agreement, including without limitation Section 3 and Section 4 above. None of
Licensee, its employees or agents shall, at any time during or after the term of
this Agreement, dispute or contest, directly or indirectly, Licensor's exclusive
right and title to the Improvements. Licensee agrees (a) to take, or cause to be
taken, all actions, (b) to do, or cause to be done, all things, and (c) to
execute, or cause to be executed, any documents, instruments or conveyances of
any kind which may be necessary, proper or advisable (y) to evidence Licensor's

                                        2
<PAGE>   105
sole right, title and interest in and to any Improvement, or (z) to register
such Improvement in Licensor's name.

     6. INFRINGEMENT/ LITIGATION.

         (A) THIRD PARTY INFRINGEMENT. During the term of this Agreement, each
party agrees to notify the other promptly in the event such party becomes aware
of any infringement or potential infringement of the Patent by a third party.
Licensor shall have the sole and exclusive right to pursue, at its expense and
in its own name, all actions for damages or equitable relief against third
parties who infringe the Patent. Licensee shall not pursue independently on any
lawsuits or causes of action for infringement of the Patent unless its licensed
use is infringed and Licensor elects not to enforce the License after having
received notice of such infringement. Licensor shall not be obligated to pursue
any action for infringement of the Patent, and Licensor may settle or otherwise
dispose of any action brought by it in any manner it sees fit, including without
limitation consenting to the entry of any judgement or binding judicial
determination, notwithstanding that such entry of judgement or binding judicial
determination might impair the validity of or materially adversely affect the
Patent or any claims thereof and provided it is not detrimental to Licensee's
rights hereunder. Licensor shall be entitled to all money or property awarded or
paid during or after the term of this Agreement from any judgment or settlement
resulting from any action or counterclaim brought by Licensor concerning the
Patent.

         (B) PATENT DEFENSE. In the event any action or proceeding is filed
against Licensor or Licensee alleging that the Patent is invalid or infringes on
any other patent or intellectual property right of any third party, Licensor
may, but shall not be obligated to defend such action or proceeding at its sole
expense. If Licensor elects to defend such action or proceeding, Licensee agrees
to cooperate fully with Licensor and its representatives in the defense of any
such action. Licensor may settle or otherwise dispose of any action brought by
it in any manner it sees fit, including without limitation consenting to the
entry of any judgement or binding judicial determination, notwithstanding that
such entry of judgement or binding judicial determination might impair the
validity of or materially adversely affect the Patent or any claims thereof.

     7. TERM. This Agreement shall become effective on the Effective Date and
shall terminate automatically without notice in the event that (a) Licensor
elects to not further maintain the Patent (in which case the License shall be
considered fully paid-up and irrevocable), or (b) Licensee (i) designs,
develops, manufactures, markets, distributes or sells any products utilizing the
technology or inventions covered by the Patent in, or for use in, the Excluded
Markets, other than specifically allowed under this Agreement, (ii) attempts to
assign or transfer its rights under this Agreement or the License, (iii)
attempts to sublicense the technology and inventions covered by the Patent in
contravention of Section 8 below, (iv) fails to maintain insurance as required
under this Agreement, or (v) files a petition in bankruptcy or is adjudicated
bankrupt or insolvent, or makes an assignment for the benefit of creditors, or
an arrangement pursuant to any bankruptcy law, or discontinues or dissolves its
business, or if a receiver is appointed for the Licensee or for the Licensee's
business.

                                        3
<PAGE>   106
     8. ASSIGNMENT. Licensee shall not be entitled to assign its rights under
this Agreement or to sublicense the technology or the inventions covered by the
Patent, except as permitted in this Section 8. Notwithstanding anything in this
Agreement to the contrary, it is agreed that (a) Licensee may sublicense the
License to a Simula Affiliate (as defined below) subject to all the terms and
conditions of this Agreement and (b) Licensee (or a permitted sublicensee), may
assign the License (or a permitted sublicense) in conjunction with the sale of
the business of a Simula Affiliate to whom the License has been sublicensed,
provided Licensee first obtains Licensor's prior written consent to such
assignment. Licensor's consent to such assignment of the License (or a permitted
sublicense) in conjunction with the sale of the business of a Simula Affiliate
shall not be unreasonably withheld. The term "Simula Affiliate" shall mean any
corporation which is owned by, controlled by, or under common control of Simula,
Inc.

     9. INSURANCE. As a material inducement to Licensor to grant the License,
Licensee agrees to provide and maintain throughout the term of this Agreement,
at its own cost and expense, Comprehensive General Liability insurance including
Blanket Contractual Liability and Broad Form Property damage coverage in an
amount not less than Ten Million Dollars ($10,000,000) combined single limit,
per occurrence ("CGL Insurance") endorsed to include products liability
coverage, insuring the Licensee, its officers, directors, agents and employees
against injury, harm or damage, whether to persons or property, arising out of
Licensee's marketing, selling, or using products utilizing the technology or the
inventions covered by the Patent, and designating Licensor as an additional
named insured. All CGL Insurance shall be primary and be required to respond and
pay prior to any other available coverage. Not later than ten (10) days upon
written request by Licensor to Licensee, Licensee shall furnish evidence of such
coverage as well as notice of renewal, cancellation or change in such coverage
to Licensor

     10. INDEMNIFICATION. In addition to any and all duties of Licensee set
forth in the Asset Purchase Agreement and this Agreement and as material
inducement to Licensor to grant the License to Licensee, Licensee hereby agrees
to defend, indemnify, and hold harmless Licensor against all Claims (as defined
below) and any costs, damages, liabilities, losses, lawsuits, and expenses
(including without limitation interest, penalties and reasonable attorneys'
fees) arising out of or relating to such Claims. For the purpose of this Section
10, the term "Claims" shall mean any costs, expenses, claims and liabilities
(including without limitation reasonable attorneys' fees) arising from or
pertaining to Licensee's marketing or selling of products or devices utilizing
the technology or inventions covered by the Patent.

     11. COSTS AND EXPENSES. Each of the parties will bear its own expenses in
connection with the negotiation and the consummation of the transactions
contemplated by this Agreement. Each party shall be solely responsible for its
respective legal, accounting, and other out-of-pocket expenses.

     12. GOVERNING LAW AND VENUE. This Agreement and any interpretation hereof
and the resolution of any dispute hereunder shall be governed by the laws of the
State of California, and

                                        4
<PAGE>   107
subject to the parties' obligation to arbitrate and dispute any action to
enforce any provision of this Agreement or to obtain any remedy with respect
hereto may be brought in the appropriate state or federal court in San Diego
County, California. For this purpose each party hereto hereby expressly and
irrevocably consents to the jurisdiction of said court, it being understood and
agreed that the parties are obligated to arbitrate disputes between them
pursuant to Section 21.

     13. INTERPRETATION. This Agreement shall not be interpreted against a party
by virtue of such party's participation in the drafting of the Agreement or any
provisions herein.

     14. AMENDMENT. This Agreement may be amended, modified, or supplemented
only by an instrument in writing signed by all parties to this Agreement whose
rights or obligations are affected by such amendment, modification or
supplement.

     15. INUREMENT. This Agreement shall be binding upon and inure to the
benefit to the successors and/or assigns of the parties hereto.

     16. NOTICES.

         (A) METHOD OF DELIVERY. Any notice, request, demand, consent, approval
or other communication (hereafter "notice") required or permitted under this
Agreement or by law shall be in writing and delivered by any of the following
means: (1) personally delivering the notice to a senior officer or duly
authorized representative of the other party, (2) depositing the notice in the
United States mail, postage prepaid, duly certified (return-receipt requested),
(3) sending the notice by a commercial overnight delivery service (such as
FedEx) which maintains delivery records, or (4) sending the notice by electronic
facsimile or telecopier ("fax") (with the sending party retaining evidence of
the time and date of transmission). Confirmations of any notices sent by fax
shall be sent by mail as provided above.

         (B) ADDRESSES. Notices shall be addressed as follows:

                  If to Licensee:              Simula, Inc.
                                               2700 North Central Avenue
                                               Suite 1100
                                               Phoenix, AZ 85004
                                               Attn: Bradley P. Forst, Esq.
                                               Fax No.:  (602) 631-9005

                  If to STI:                   Simula Technologies, Inc.
                                               2700 North Central Avenue
                                               Suite 1100
                                               Phoenix, AZ 85004
                                               Attn: Bradley P. Forst, Esq.
                                               Fax No.:  (602) 631-9005

                                        5
<PAGE>   108
                  If to Licensor:              Weber Aircraft, Inc.
                                               2000 Weber Drive
                                               Gainesville, Texas 76240
                                               Attn:  Michel Labarre
                                               Fax:  (940) 668-4853

                  With copies to:              Zodiac, S.A.
                                               2, rue Maurice Mallet
                                               92137, Issy-les-Moulineaux Cedex
                                               France
                                               Attn:  Jean-Jacques Jegou
                                               Fax No: (011-331) 41 23 23 10

                                               Hillyer & Irwin
                                               550 West C Street, 16th Floor
                                               San Diego, CA 92101
                                               Attn: William A. Reavey, Esq.
                                               Fax No.: (619) 595-1313

Any party may, from time to time, by written notice to the other, designate a
different address which shall be substituted for that specified above. It is
agreed that separate notices need not be sent to Simtec. Notices sent to Simula
shall be deemed to have been sent to Simtec and STI.

         (C) EFFECTIVENESS. All notices shall be deemed effective upon receipt.
If personally delivered, notices shall be deemed received at the time of
delivery. If sent by mail, notices shall be deemed fully delivered and received
three (3) business days after the date of the postmark on the certified mail
receipt. If sent by commercial overnight delivery service, notices shall be
deemed fully delivered and received one (1) business day after the date of
deposit with such commercial overnight delivery service. If sent by fax, notices
shall be deemed received twenty-four (24) hours after transmission. Notices may
not be sent by e-mail. Rejection or other refusal to accept a notice or the
inability to deliver the same because of a changed address of which no notice
was given shall be deemed to be receipt of the notice sent. In the event of a
postal strike, all notices shall be personally delivered, sent by commercial
overnight delivery service, or sent by fax.

     17. HEADINGS. The headings of the sections of this Agreement are for the
convenience of reference only, and do not form a part hereof, and in no way
modify, interpret or construe the meanings of the parties.

     18. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one Agreement. The facsimile signatures of the parties shall be
deemed to constitute original signatures, and facsimile copies hereof shall be
deemed to constitute duplicate original counterparts.

                                        6
<PAGE>   109
     19. WAIVER. Any term or provision of this Agreement may be waived at any
time by the party entitled to the benefit thereof by a written instrument duly
executed by such party. The failure of any of the parties to this Agreement to
require the performance of any term or obligation under this Agreement or the
waiver by any of the parties to this Agreement of any breach hereunder shall not
prevent subsequent enforcement of such term or obligation or be deemed a waiver
of any subsequent breach hereunder.

     20. SEVERABILITY. In case any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement but this Agreement shall be construed as
if such invalid or illegal or unenforceable provision or part of a provision had
never been contained herein. In the event of any inaccuracy or breach of any
representation, warranty, covenant or agreement contained in this Agreement, the
rights and remedies of the aggrieved party shall not be impaired or limited by
reason of the fact that the act, omission, occurrence, or other statement of
facts giving rise to such inaccuracy or breach may also be the subject matter of
any other representation, warranty, covenant or agreement contained in this
Agreement (or any other agreement between the parties) as to which there is no
inaccuracy or breach.

     21. ARBITRATION.

         (A) GENERAL. Any controversy, claim, or dispute among the parties
hereto arising out of or related to this Agreement or the breach thereto, which
cannot be settled amicably by the parties, shall be submitted for binding
arbitration in accordance with the provisions contained herein and in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
("Rules"); provided, however, that notwithstanding any provisions of such Rules,
the parties shall have the right to take depositions and obtain discovery
regarding the subject matter of the arbitration, as provided in Title III of
Part 4 (commencing with Section 1985) of the California Code of Civil Procedure.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The arbitrator shall determine all questions of fact and
law relating to any controversy, claim, or dispute hereunder, including but not
limited to whether or not any such controversy, claim, or dispute is subject to
the arbitration provisions contained herein.

         (B) THIRD PARTY CONTROVERSY. If a controversy, claim, or dispute arises
among the parties hereto which is subject to the arbitration provisions
hereunder, and there exists or later arises a controversy, claim, or dispute
between the parties hereto and any third party, which controversy, claim, or
dispute arises out of or relates to the same transaction or series of
transactions, said third party controversy, claim, or dispute shall be
consolidated with the arbitration proceedings hereunder; provided, however, that
any such third party must be a party to an agreement with a party hereto which
provides for arbitration of disputes thereunder in accordance with rules and
procedures substantially the same in all material respects as provided for
herein or, if not, must consent to arbitration as provided for hereunder.

                                        7
<PAGE>   110
         (C) VENUE. All arbitration proceedings shall be held in San Diego,
California.

         (D) NOTICES. Notice of the demand for arbitration shall be filed in
writing with the other party to this Agreement and with the American Arbitration
Association.

     22. ATTORNEYS' FEES. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Agreement, or any judgment based on this
Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy,
arbitration, declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all attorneys' fees and all costs, including but not limited to service of
process costs, filing fees, court and court reporter costs, investigative costs,
expert witness fees and the cost of any bonds, whether taxable or not. Any such
reimbursement shall be included in any judgment or final order or award issued
in that proceeding. "Prevailing Party" means the party determined to most nearly
prevail and not necessarily the one in whose favor a judgment or award is
rendered. Attorneys' fees incurred in enforcing any judgment or award are
recoverable as a separate item, and this provision for post-judgment or
post-award attorneys' fees shall survive any judgment or award and shall not be
deemed merged into any judgment or award.

     23. CONSTRUCTION. Where appropriate in this Agreement, words in the
singular shall include the plural, and words in the masculine shall include the
feminine.

     24. AUTHORITY OF SIGNATORIES. Each individual signing this Agreement on
behalf of a corporation warrants that he or she is duly authorized to execute
and deliver this Agreement on behalf of the corporation, in accordance with a
duly adopted resolution of the board of directors of the corporation or in
accordance with the bylaws of the corporation, and that this Agreement is
binding on the corporation in accordance with its terms.

     25. ENTIRE AGREEMENT. This Agreement is one of a series of agreements
executed as part of an integrated transaction described in the Asset Purchase
Agreement. This Agreement, together with the Asset Purchase Agreement and with
all other agreements, assignments and exhibits expressly referred to therein or
herein, constitutes the entire agreement between the parties hereto with respect
to the subject matter of this Agreement. All prior agreements, representations,
negotiations and understandings of the parties hereto, oral or written, express
or implied, are hereby superseded and merged herein. To the maximum extent
permitted by law, each party expressly waives any right of rescission and all
claims for damages by reason of any statement, representation, warranty, promise
and/or agreement, if any, not contained or referenced in this Agreement.

     26. CAPACITY OF STI. STI is not acquiring any rights in the Patent or the
License by virtue of this Agreement. STI is executing this Agreement for the
limited purpose of confirming its agreement with the foregoing.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                        8
<PAGE>   111
         IN WITNESS WHEREOF, the parties hereto have caused this Patent License
Agreement to be executed effective as of the date set forth above.

"LICENSEE:"                                 SIMULA, INC.,
                                            an Arizona corporation

                                            By:/s/ James C. Dodd
                                            Printed Name: James C. Dodd
                                            Its: CFO

"STI"                                       SIMULA TECHNOLOGIES, INC.,
                                            an Arizona corporation

                                            By: /s/ Bradley P. Forst
                                            Printed Name: Bradley P. Forst
                                            Its: Secretary

"LICENSOR:"                                 WEBER AIRCRAFT, INC.,
                                            a Delaware corporation

                                            By: /s/ Michael Labarre
                                            Printed Name:  Michael Labarre
                                            Its: President

                                        9

<PAGE>   112
                                                                  Exhibit 10.40g

                       ASSIGNMENT OF INTELLECTUAL PROPERTY
                                (Section 5.2(j))

     This ASSIGNMENT OF INTELLECTUAL PROPERTY (the "Assignment") is made as of
the 1st day of February 2000, by and between AIRLINE INTERIORS, INC., an Arizona
corporation, SIMULA, INC., an Arizona corporation (collectively the
"Assignors"), and WEBER AIRCRAFT, INC., a Delaware corporation ("Assignee"),
with reference to the facts set forth in the Recitals below.

                                    RECITALS

     A. Assignors and Assignee are parties to that certain Asset Purchase
Agreement dated December 24, 1999, as amended (the "Asset Purchase Agreement").
This Agreement is being executed pursuant to Section 5.2(j) of the Asset
Purchase Agreement.

     B. Simula, Inc. owns all right, title and interest in and to United States
Patent No. 5,730,492 entitled " Load-Limiting Seat" issued March 24, 1998 (the
"Patent"). Airline Interiors, Inc. owns all right, title and interest to and in
the remaining intellectual property The Patent and the remaining intellectual
property are collectively referred to as the "Intellectual Property," and is
defined more fully in Section 1.1(g) of the Asset Purchase Agreement and listed
in the Schedule of Intellectual Property attached hereto as Exhibit "A."

     C. Section 1.1(g) of the Asset Purchase Agreement provides that, as a part
of the sale of the assets contemplated in the Asset Purchase Agreement,
Assignors shall assign to Assignee all of their right, title and interest in and
to the Intellectual Property.

     D. The parties are executing this Assignment in order to memorialize their
understanding concerning the assignment of the Intellectual Property.

                                        1

<PAGE>   113

                                    AGREEMENT

     NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the above
Recitals and other good and valuable consideration, the receipt and legal
sufficiency of which are hereby acknowledged, the parties agree as follows:

     1. INTERPRETATION. This Assignment is intended to implement the terms and
conditions of the Asset Purchase Agreement. In the event of a conflict between
the provisions of this Assignment and those of the Asset Purchase Agreement, the
Asset Purchase Agreement shall control. Terms with initial capital letters are
defined terms which shall have the respective meanings given them in the Asset
Purchase Agreement, unless the context of this Assignment requires otherwise.

     2. TITLE TO INTELLECTUAL PROPERTY. Assignors own all right, interest and
title, legal and equitable, as to the (a) the Intellectual Property, (b) all
intellectual property rights (the "Associated Rights") associated with such
Intellectual Property in the United States and in all foreign countries
throughout the world (including any reissues, renewals, divisions continuations,
or foreign counterparts of such Intellectual Property), (c) all causes of
action, claims, damages and other rights (the "Ownership Rights") arising out of
or relating to the Intellectual Property or ownership thereof, including but not
limited to any and all claims for current or past infringement and the right to
sue therefor, and (d) all goodwill (the "Goodwill") associated with or related
to the Intellectual Property. Assignors have the right to use, free and clear of
claims or rights of others, the Intellectual Property, the Associated Rights the
Ownership Rights and the Goodwill and the same are freely transferable by
Assignors. Assignors have not entered into any license agreement or similar
agreement that would entitle any other person than Assignors to use the
Intellectual Property, the Associated Rights the Ownership Rights and the
Goodwill.

     3. NO INFRINGEMENT. Assignors are not aware, to the best of their
knowledge, of any infringement by others of Assignors' proprietary rights in the
Intellectual Property, the Associated Rights, the Ownership Rights and the
Goodwill, nor of any other current unauthorized use by other persons. There are
no claims or demands of any other person pertaining to the Intellectual Property
and no proceedings have been instituted, or are pending or threatened, which
challenge Assignors' right, title or interest to and in the Intellectual
Property, the Associated Rights the Ownership Rights and the Goodwill. Simula,
Inc. has paid all maintenance fees required to be paid in order to keep the
Patent in effect. The Patent is in full force and effect.

     4. ASSIGNMENT BY ASSIGNORS. Subject to all of the terms and conditions of
the Asset Purchase Agreement and this Assignment, Assignors hereby assign to
Assignee all of Assignors' right, title and interest to and in the following:
(a) the Intellectual Property, (b) Associated Rights , (c) all Ownership Rights
arising out of or relating to the Intellectual Property or ownership thereof,
including but not limited to any and all claims for current or past infringement
and the right to sue therefor, and (d) the Goodwill associated with or related
to the Intellectual Property.

                                        2

<PAGE>   114

     5. ACCEPTANCE BY ASSIGNEE. Subject to all the terms and conditions of the
Asset Purchase Agreement and this Assignment, Assignee hereby accepts the
assignment of the Intellectual Property, the Associated Rights and the Ownership
Rights.

     6. FURTHER ASSURANCES. Assignors agree, without cost to Assignee, to
execute all instruments and documents and take all actions as may be reasonably
required to effectuate this Assignment, including without limitation to execute
all rightful oaths, assignments, powers of attorney and other documents which
Assignee shall consider desirable or necessary for (a) vesting title to the
Intellectual Property, the Goodwill, the Associated Rights and the Ownership
Rights in Assignee, or (b) for registering such rights with governmental
authorities in Assignee's name in the United States or worldwide.

      7. EFFECTIVE DATE. This Assignment shall be effective as of the Closing.

      8. BINDING EFFECT. This Assignment shall be binding upon, and inure to the
         benefit of the respective successors and assignees of Assignee and
         Assignors.

      9. GOVERNING LAW AND VENUE. This Agreement and any interpretation hereof
         and the resolution of any dispute hereunder shall be governed by the
         laws of the State of California, and subject to the parties' obligation
         to arbitrate and dispute any action to enforce any provision of this
         Agreement or to obtain any remedy with respect hereto may be brought in
         the appropriate state or federal court in San Diego County, California.
         For this purpose each party hereto hereby expressly and irrevocably
         consents to the jurisdiction of said court, it being understood and
         agreed that the parties are obligated to arbitrate disputes between
         them pursuant to Section 16 below.

     10. INTERPRETATION. This Agreement shall not be interpreted against a party
         by virtue of such party's participation in the drafting of the
         Agreement or any provisions herein.

     11. AMENDMENT. This Agreement may be amended, modified, or supplemented
         only by an instrument in writing signed by all parties to this
         Agreement whose rights or obligations are affected by such amendment,
         modification or supplement.

     12. INUREMENT. This Agreement shall be binding upon and inure to the
         benefit to the successors and/or assigns of the parties hereto.

     13. NOTICES.

         (a) METHOD OF DELIVERY. Any notice, request, demand, consent, approval
or other communication (hereafter "notice") required or permitted under this
Agreement or by law shall be in writing and delivered by any of the following
means: (1) personally delivering the notice to a senior officer or duly
authorized representative of the other party, (2) depositing the notice in the
United States mail, postage prepaid, duly certified (return-receipt requested),
(3) sending the notice by a commercial overnight delivery service (such as
FedEx) which maintains delivery records, or (4) sending the notice by electronic
facsimile or telecopier ("fax") (with the sending party retaining

                                       3
<PAGE>   115

evidence of the time and date of transmission). Confirmations of any notices
sent by fax shall be sent by mail as provided above.

         (B) ADDRESSES. Notices shall be addressed as follows:

          If to Assignors:                   Simula, Inc.
                                             2700 North Central Avenue
                                             Suite 1100
                                             Phoenix, AZ 85004
                                             Attn: Bradley P. Forst
                                             Fax No.: (602) 631-9005

          If to Assignee:                    Weber Aircraft, Inc.
                                             2000 Weber Drive 5
                                             Gainesville, TX 76240
                                             Attn: Michel Labarre
                                             Fax No. (940) 668-4853

          With a copy to:                    Zodiac S.A.
                                             2, Rue Maurice Mallet
                                             92137, Issy-les-Molineaux Cedex
                                             France
                                             Attn: Jean-Jacques Jegou
                                             Fax No: (011-331) 41 23 23 10

          With a copy to:                    Hillyer & Irwin
                                             550 West C Street, 16th Floor
                                             San Diego, CA 92101
                                             Attn: William A. Reavey, Esq.
                                             Fax No. (619) 595-1313

Any party may, from time to time, by written notice to the other, designate a
different address which shall be substituted for that specified above. Notices
sent to Simula, Inc. shall be deemed to have been sent to Airline Interiors,
Inc.

         (C) EFFECTIVENESS. All notices shall be deemed effective upon receipt.
If personally delivered, notices shall be deemed received at the time of
delivery. If sent by mail, notices shall be deemed fully delivered and received
three (3) business days after the date of the postmark on the certified mail
receipt. If sent by commercial overnight delivery service, notices shall be
deemed fully delivered and received one (1) business day after the date of
deposit with such commercial overnight delivery service. If sent by fax, notices
shall be deemed received twenty-four (24) hours after transmission. Notices may
not be sent by e-mail. Rejection or other refusal to accept a notice or the
inability to deliver the same because of a changed address of which no notice
was given shall be deemed to be receipt of the notice sent. In the event of a
postal strike, all notices

                                       4
<PAGE>   116

shall be personally delivered, sent by commercial overnight delivery service, or
sent by fax.

     14. HEADINGS. The headings of the sections of this Agreement are for the
convenience of reference only, and do not form a part hereof, and in no way
modify, interpret or construe the meanings of the parties.

     15. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one Agreement. The facsimile signatures of the parties shall be
deemed to constitute original signatures, and facsimile copies hereof shall be
deemed to constitute duplicate original counterparts.

     16. WAIVER. Any term or provision of this Agreement may be waived at any
time by the party entitled to the benefit thereof by a written instrument duly
executed by such party. The failure of any of the parties to this Agreement to
require the performance of term or obligation under this Agreement or the waiver
by any of the parties to this Agreement of any breach hereunder shall not
prevent subsequent enforcement of such term or obligation or be deemed a waiver
of any subsequent breach hereunder.

     17. SEVERABILITY. In case any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement but this Agreement shall be construed as
if such invalid or illegal or unenforceable provision or part of a provision had
never been contained herein. In the event of any inaccuracy or breach of any
representation, warranty, covenant or agreement contained in this Agreement, the
rights and remedies of the aggrieved party shall not be impaired or limited by
reason of the fact that the act, omission, occurrence, or other statement of
facts giving rise to such inaccuracy or breach may also be the subject matter of
any other representation, warranty, covenant or agreement contained in this
Agreement (or any other agreement between the parties) as to which there is no
inaccuracy or breach.

     18. ARBITRATION.

         (a) GENERAL. Any controversy, claim, or dispute among the parties
hereto arising out of or related to this Agreement or the breach thereto, which
cannot be settled amicably by the parties, shall be submitted for binding
arbitration in accordance with the provisions contained herein and in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
("Rules"); provided, however, that notwithstanding any provisions of such Rules,
the parties shall have the right to take depositions and obtain discovery
regarding the subject matter of the arbitration, as provided in Title III of
Part 4 (commencing with Section 1985) of the California Code of Civil Procedure.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The arbitrator shall determine all questions of fact and
law relating to any controversy, claim, or dispute hereunder, including but not
limited to whether or not any such controversy, claim, or dispute is subject to
the arbitration provisions contained herein.

                                       5
<PAGE>   117

         (b) THIRD PARTY CONTROVERSY. If a controversy, claim, or dispute arises
among the parties hereto which is subject to the arbitration provisions
hereunder, and there exists or later arises a controversy, claim, or dispute
between the parties hereto and any third party, which controversy, claim, or
dispute arises out of or relates to the same transaction or series of
transactions, said third party controversy, claim, or dispute shall be
consolidated with the arbitration proceedings hereunder; provided, however, that
any such third party must be a party to an agreement with a party hereto which
provides for arbitration of disputes thereunder in accordance with rules and
procedures substantially the same in all material respects as provided for
herein or, if not, must consent to arbitration as provided for hereunder.

         (c) VENUE. All arbitration proceedings shall be held in San Diego,
California.

         (d) NOTICES. Notice of the demand for arbitration shall be filed in
writing with the other party to this Agreement and with the American Arbitration
Association.

     19. ATTORNEYS' FEES. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Agreement, or any judgment based on this
Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy,
arbitration, declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all attorneys' fees and all costs, including but not limited to service of
process costs, filing fees, court and court reporter costs, investigative costs,
expert witness fees and the cost of any bonds, whether taxable or not. Any such
reimbursement shall be included in any judgment or final order or award issued
in that proceeding. "Prevailing Party" means the party determined to most nearly
prevail and not necessarily the one in whose favor a judgment or award is
rendered. Attorneys' fees incurred in enforcing any judgment or award are
recoverable as a separate item, and this provision for post-judgment or
post-award attorneys' fees shall survive any judgment or award and shall not be
deemed merged into any judgment or award.

     20. CONSTRUCTION. Whenever the context so requires in this Agreement, all
words used in the singular shall be construed to have been used in the plural
(and vice versa), each gender shall be construed to include any other genders,
and the word "person" shall be construed to include a natural person, a
corporation, a firm, a partnership, a joint venture, a trust, an estate, or any
other entity.

     21. AUTHORITY OF SIGNATORIES. Each individual signing this Agreement on
behalf of a corporation warrants that he or she is duly authorized to execute
and deliver this Agreement on behalf of the corporation, in accordance with a
duly adopted resolution of the board of directors of the corporation or in
accordance with the bylaws of the corporation, and that this Agreement is
binding on the corporation in accordance with its terms.

                                       6
<PAGE>   118

     22. ENTIRE AGREEMENT. This Agreement is one of a series of agreements
executed as part of an integrated transaction described in the Asset Purchase
Agreement. This Agreement, together with the Asset Purchase Agreement and with
all other agreements, assignments and exhibits expressly referred to therein or
herein, constitutes the entire agreement between the parties hereto with respect
to the subject matter of this Agreement. All prior agreements, representations,
negotiations and understandings of the parties hereto, oral or written, express
or implied, are hereby superseded and merged herein. To the maximum extent
permitted by law, each party expressly waives any right of rescission and all
claims for damages by reason of any statement, representation, warranty, promise
and/or agreement, if any, not contained or referenced to in this Agreement.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                        7

<PAGE>   119

     IN WITNESS WHEREOF, Assignors and Assignee have executed this Assignment of
Intellectual Property as of the date first above written.

"ASSIGNOR:"                                 AIRLINE INTERIORS, INC.,
                                            an Arizona corporation

                                            By: /s/ Bradley P. Forst
                                               ___________________________
                                            Printed Name: Bradley P. Forst
                                            Its: Secretary

"ASSIGNOR:"                                 SIMULA, INC.,
                                            an Arizona corporation

                                            By:/s/ James C. Dodd
                                               _________________________
                                            Printed Name: James C. Dodd
                                            Its: CFO

"ASSIGNEE:"                                 WEBER AIRCRAFT, INC.,
                                            a Delaware corporation

                                            By: /s/ Michael Labarre
                                               ___________________________
                                            Printed Name:  Michael Labarre
                                            Its: President

                                        8

<PAGE>   120

                                   EXHIBIT "A"

                        SCHEDULE OF INTELLECTUAL PROPERTY

Trademarks, Tradenames, and Service Marks

     -    Common Law Trademark "AIRLINE INTERIORS' (Corporate Name)

     -    Common Law Trademark "AIRLINE INTERIORS" plus design (Corporate Logo)

     -    Common Law Trademark "AI-1000" for Tourist Class Airplane Seats

     -    Common Law Trademark "AI-2000" for Business Class Airplane Seats

Patent Concepts or Ideas

     -    United States Patent No. 5,730,492 entitled "16 G Load-Limiting Seat
          Technology" issued March 24, 1998 (the "Patent")

     -    All concepts, technology and inventions set forth in the Patent

Copyrights

     -    Logo "AIRLINE INTERIOR"

                                        9

<PAGE>   121
                                                                  Exhibit 10.40h

                          TRANSITION SUPPORT AGREEMENT
                                  (Section 7.9)

     This TRANSITION SUPPORT AGREEMENT (the "Agreement") is made as of the 1st
day of February 2000 by and between AIRLINE INTERIORS, INC., an Arizona
corporation ("AI"), SIMULA TRANSPORTATION EQUIPMENT CORPORATION, an Arizona
corporation ("Simtec"), SIMULA, INC., an Arizona corporation ("Simula"), and
WEBER AIRCRAFT, INC., a Delaware corporation ("Weber"), with reference to the
following Recitals:

                                    RECITALS

     A. Simula is the sole shareholder of Simtec, which is in turn the sole
shareholder of AI. AI, Simula and Simtec are sometimes collectively referred to
herein as the "Selling Parties."

     B. AI is engaged in the business (the "Business") of manufacturing and
marketing new aircraft passenger seats. AI operates its main manufacturing and
service facility (the "Poway Facility") for the Business in Poway, California.

     C. Weber is also engaged in the business of manufacturing and marketing new
aircraft passenger seats. Weber is headquartered and maintains a manufacturing
facility ("Weber's Facility") in Gainesville, Texas.

     D. Selling Parties and Weber are parties to that certain Asset Purchase
Agreement dated December 24, 1999, as amended (the "Asset Purchase Agreement").

     E. Pursuant to the Asset Purchase Agreement, AI has sold to Weber certain
assets, which are defined in the Asset Purchase Agreement as the "Included
Assets." The Included Assets are substantially all the assets currently used by
AI in connection with the Business.

     F. This Agreement is being executed pursuant to Section 7.9 of the Asset
Purchase Agreement, which provides that AI will assist Weber in the orderly
relocation of the Business from the Poway Facility to Weber's Facility after the
Closing.

     G. The parties are executing this Agreement in order to memorialize their
understanding concerning the foregoing matters.

<PAGE>   122
                                    AGREEMENT

     NOW, THEREFORE, in consideration of the Asset Purchase Agreement, the above
Recitals, the mutual covenants contained below in this Agreement and other
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

                                    ARTICLE 1

                              INTRODUCTORY MATTERS

     1.1 Interpretation. In the event of a conflict between the provisions of
this Agreement and those of the Asset Purchase Agreement, this Agreement shall
control. Terms with initial capital letters are defined terms which shall have
the respective meanings given them in the Asset Purchase Agreement, unless the
context of this Agreement requires otherwise.

     1.2 Certain Definitions.

         (a) AI's Transition Team. The term "AI's Transition Team" shall have
the meaning given it in Section 1.4 below.

         (b) AT Sublease. The term "AT Sublease" shall have the meaning given it
in Section 4.1(a) below.

         (c) Covered Claims.

            (1) The term "Covered Claims" shall mean all liabilities (including
without limitation reasonable attorneys' fees) arising out of or pertaining to
any claim (other than an Excluded Claim) arising out of acts or circumstances
occurring or existing before or after the Closing which may be asserted at any
time against Weber:

               (i) By any person who was employed by AI before or after the
Closing, including without limitation claims based on employment discrimination,
workers compensation, unpaid wages, salaries or benefits, personal injury,
sexual harassment, termination of employment and payments required under the
WARN Act in laying off its employees employed in the Poway Facility;

               (ii) By any governmental agency based on or arising out of AI's
alleged failure to comply with the WARN Act in laying off its employees employed
in the Poway Facility;

               (iii) By the landlord under the Poway Lease for any alleged
breach of the Poway Lease at any time (except as otherwise provided in Section
3.2 below with respect to damage or destruction caused by the negligence or
willful misconduct of Weber);

                                        2
<PAGE>   123
               (iv) By any third party arising out of the use or occupancy of
the Poway Facility; or

               (v) By the subtenant under the AT Sublease.

            (2) The term Covered Claims shall not include the Excluded Claims.
Notwithstanding anything in this Agreement to the contrary, it is agreed that
the Covered Claims shall, however, include claims that may be asserted by the
Temporary Personnel for injuries that occur after the Closing which are covered
by worker's compensation insurance, unless such claims are Excluded Claims.

         (d) Excluded Claims. The term "Excluded Claims" shall mean (1) any
claims asserted after the Closing by Weber's Permanent Hires with respect to
acts or omissions of Weber in its capacity as the new employer of Weber's
Permanent Hires; (2) any claims asserted after the Closing by the Temporary
Personnel for sexual harassment or other employment law violations by Weber's
employees, or personal injury resulting from the gross negligence or willful
misconduct of Weber; (3) any claims by the landlord under the Poway Lease for
any damage or destruction of the Poway Facility caused by the negligence or
willful misconduct of Weber; and (4) any claims by any third party arising out
of Weber's use or occupancy of the Poway Facility during the Transition Period
in violation of the subject lease.

         (e) Prohibited Transactions. The term "Prohibited Transactions" shall
have the meaning given it in Section 3.4 below.

         (f) Rent. The term "Rent" shall have the meaning given it in Section
4.1(a) below.

         (g) Termination Notice. The term "Termination Notice" shall have the
meaning given it in Section 1.2(j) below.

         (h) Temporary Personnel. The term "Temporary Personnel" shall have the
meaning given it in Section 2.1(b) below.

         (i) Temporary Personnel Costs. The term "Temporary Personnel Costs"
shall have the meaning given it in Section 2.1(b) below.

         (j) Transition Period. The term "Transition Period" shall mean a period
of time following the Closing during which Weber will operate in the Poway
Facility pursuant to this Agreement in order to prepare the Business for
relocation to Weber's Facility. The Transition Period will begin immediately
after the Closing and end when Weber vacates the Poway Facility, it being
agreed, however, that the Transition Period shall not extend beyond July 31,
2000. Weber shall give AI written notice (the "Termination Notice") of when
Weber has vacated the Poway Facility. The last day of the Transition Period
shall be the day on which AI receives the Termination Notice from Weber.

                                        3
<PAGE>   124
         (k) Weber's Permanent Hires. The term "Weber's Permanent Hires" shall
have the meaning given it in Section 2.1(a) below.

         (l) Weber's Transition Team. The term "Weber's Transition Team" shall
have the meaning given it in Section 2.1 (b) below.

     1.3 Parties' Intent. Initially, the parties anticipated that Weber would
continue manufacturing Products in the Poway Facility during the Transition
Period. Weber no longer plans to conduct manufacturing operations in the Poway
Facility after the Closing. Instead, after the Closing, Weber anticipates that
it will promptly relocate and transfer the Business and all the Included Assets
from the Poway Facility to Weber's Facility. During the Transition Period, Weber
expects to shut down the Business in preparation for its immediate relocation to
Weber's Facility. Selling Parties shall assist Weber in relocating the Business
and Weber will reimburse Selling Parties for certain expenses related thereto,
as more fully provided below. All decisions affecting the Business shall be made
by Weber. Subject to all the provisions of this Agreement, AI shall perform the
Services in the manner specified in this Agreement in order to meet the
day-to-day operational requirements of the Business during the Transition
Period, as well as the requirements for an orderly relocation of the Business to
Weber's Facility. AI shall not engage in any Prohibited Transactions without
Weber's prior written approval.

     1.4 Scope of Services. Using the Temporary Personnel, AI's Transition Team,
Simula's corporate MIS support staff in Phoenix, AZ and AI's computer and
telephone systems, and other equipment of AI in the Poway Facility, Selling
Parties shall provide to Weber the administrative and operational support
services (the "Services") reasonably required to cease manufacturing the
Products in the Poway Facility and to move the Business and the Included Assets
in an orderly manner to Weber's Facility. The specific Services to be provided
by Simula and AI are listed on the Schedule of Services attached hereto as
Exhibit "A" and elsewhere in this Agreement. Weber shall exercise reasonable
care and supervision in assigning tasks to be performed by the Temporary
Personnel. Before the Closing, Selling Parties shall appoint a facilities
manager and a transition manager (collectively, "AI's Transition Team") to
manage the Poway Facility after the Closing and to coordinate the performance of
the Services with Weber's Transition Team. AI shall pay the cost of AI's
Transition Team. AI's Transition Team shall not be part of the Temporary
Personnel. Weber shall inform and consult with AI's Transition Team on a
frequent basis during the Transition Period. AI shall not undertake any other
business activities or ventures in its Poway Facility or elsewhere which would
prevent AI from performing the Services. No compensation shall be required to be
paid to Selling Parties for providing the Services except as provided in Article
4 below.

     1.5 Mutual Cooperation. The parties' respective Transition Teams shall
cooperate with one another and provide services to one another that do not
interfere with their respective primary duties as provided in this Section 1.5.
Weber's Transition Team's primary duties shall be to support Weber. AI's
Transition Team's primary duties shall be to support AI. As part of the
cooperation contemplated in this Section 1.5, it is agreed that Greg Wallick and
Thomas Nobles, who will be

                                        4
<PAGE>   125
assigned as Temporary Personnel to Weber's Transition Team, will provide certain
certification and DIMR Services for the benefit of Selling Parties. The parties
shall also cooperate with one another on (1) security and lock changing matters
relating to the Poway Facility and (2) the copying of AI's business records.

                                    ARTICLE 2

                                PERSONNEL MATTERS

     2.1 Weber's Transition Team.

         (a) Weber's Permanent Hires. Prior to the Closing, Weber shall identify
those employees (the "Weber's Permanent Hires") of AI whom Weber desires to hire
to work in the Poway Facility (or elsewhere) during the Transition Period and
thereafter. As of the Closing, Weber's Permanent Hires shall cease to be
employees of AI and shall become employees of Weber. At that time, Weber shall
be solely responsible for paying all salaries, wages and benefits of Weber's
Permanent Hires in accordance with applicable law. Selling Parties shall assist
and cooperate with the transition of Weber's Permanent Hires from AI's payroll
to the payroll and benefits systems of Weber. Before the Closing, Weber shall
give Selling Parties notice of each offer of permanent employment made to AI's
employees and the terms thereof, whether accepted or not.

         (b) Temporary Staffing. In order to supply the temporary personnel
assistance needed to help Weber relocate the Business and the Included Assets,
AI shall "lease" certain of AI's employees (the "Temporary Personnel") to Weber
during the Transition Period. Before the Closing, Weber shall give Selling
Parties notice of each offer of temporary employment made to AI's employees and
the terms thereof, whether accepted or not. AI shall be deemed to be the
employer of record for the Temporary Personnel for all purposes. Weber shall,
however, be entitled to identify the tasks to be performed by the Temporary
Personnel, subject to the supervision of appropriate AI and Weber personnel. The
Temporary Personnel shall include AI personnel required to relocate the Business
and the Included Assets to Weber's facility and to operate and maintain the
Poway Facility and the telephone and computer systems located therein during the
Transition Period. Selling Parties are not obligated to provide these employees
to Weber if Weber is unable to induce them to continue working after the
Closing. Weber shall reimburse AI for the actual amount of the Temporary
Personnel's wages, FICA and other payroll taxes, benefits and a reasonable
amount to compensate AI for the cost of health and worker's compensation
insurance premiums during the Transition Period (collectively, the "Temporary
Personnel Costs"). The cost of such insurance is listed on the Schedule of
Insurance Costs for Temporary Personnel attached hereto as Exhibit "B." Weber
shall be entitled to pay - through AI's auspices - a "stay-bonus" to the
Temporary Personnel. The amount of the stay-bonus shall be determined by Weber.
The stay-bonus shall not be used to offset or reduce any payments due the
Temporary Personnel under the WARN Act. Hereafter, Weber's Permanent Hires and
the Temporary Personnel may sometimes be collectively referred to as "Weber's
Transition Team."

                                        5
<PAGE>   126
                                    ARTICLE 3

                 OPERATION OF BUSINESS DURING TRANSITION PERIOD

     3.1 Relationship of Parties - No Agency. During the Transition Period,
neither party shall be agents of the other. Neither party shall have authority
to bind, obligate or commit the other in any capacity or to execute contracts on
behalf of the other. Neither AI nor Weber shall be deemed to be a partner, joint
venturer, alter ego, manager, controlling person, or other business associate or
participant of any kind of the other in connection with the Business or the
Poway Facility.

     3.2 Poway Lease. During the Transition Period, AI shall, for all purposes,
remain and be deemed to be the tenant under that certain Standard
Industrial/Commercial Multi-Tenant Lease-Modified Net dated September 15, 1997
(the "Poway Lease") between AI, as tenant, and W. H. Pomerado, LLC, as landlord.
Weber shall not be deemed to have either assumed the Poway Lease, or subleased
the Poway Facility (in whole or in part). AI hereby grants Weber an irrevocable
license to use the Poway Facility during the Transition Period, subject to this
Agreement and the Poway Lease. Because of Weber's limited rights as a licensee,
Weber shall not be deemed in control of the Poway Facility. In exercising its
rights under such license, Weber shall at all times comply with the Poway Lease
and shall pay - without mark-up or increase - the Rent payable by AI under the
Poway Lease as specified in Section 4.1(a) below; provided, however, that in no
event shall Weber be obligated to pay for any repairs or maintenance of the
Poway Facility or for any other expense which is capital in nature, unless such
repairs or maintenance work is caused by the negligence or willful misconduct of
Weber, its employees, or member of Weber's Transition Team. It is understood and
agreed that Selling Parties shall have the right to show the Poway Facility to
potential tenants /subtenants during the Transition Period, but the Poway Lease
shall not be terminated or assigned (which shall be deemed to include any
subleasing of the Poway Facility) in a manner which would interfere with Weber's
rights under this Agreement until the end of the Transition Period. Weber shall
not be responsible for surrendering the Poway Facility to the landlord or
delivering same to successor tenants or subtenants or for returning any leased
equipment to the lessors thereof. The Rent, premiums for insurance coverages
required under the Poway Lease, and property taxes for the Poway Facility shall
not be deemed to be part of AI's trade accounts payable to be assumed by Weber
under the Asset Purchase Agreement. AI shall be solely responsible for paying
for such items out of its own funds, except as provided in this Agreement during
the Transition Period.

     3.3 Operation of Business. Unless otherwise instructed by Weber in writing,
during the Transition Period AI shall:

         (a) Cease operating the Business during the Transition Period except as
necessary to provide the Services;

         (b) Cease all manufacturing operations in the Poway Facility effective
as of the close of business on the Closing Date;

                                        6
<PAGE>   127
         (c) Assist Weber in assuming control over the Business and in
transferring title to and possession of the Included Assets to Weber;

         (d) Continue to operate and maintain the Poway Facility in accordance
with the Poway Lease; and

         (e) Provide the Services to Weber, as provided elsewhere in this
Agreement.

     3.4 Prohibited Transactions. During the Transition Period, AI shall not do,
or agree to do, any of the following acts ("Prohibited Transactions") in
connection with or relating to the operation of the Business and the transfer of
the Business to Weber's Facility without the prior written approval of Weber:

         (a) Issue or approve any purchase orders;

         (b) Enter into any contract, commitment, or transaction on behalf of
Weber, in any amount or for any purpose;

         (c) Write checks drawn on accounts owned by Weber;

         (d) Agree to any payment arrangements (for extending credit or
deferring payment) with suppliers or vendors which are not approved in advance
by Weber;

         (e) Accept from vendors any non-conforming goods or merchandise, i.e.,
raw materials, supplies, or other items for which reimbursement will be sought
from Weber which (1) do not comply with the standard descriptions for the
Products or such other items, or (2) do not comply with orders placed with the
vendors by AI at the direction of Weber;

         (f) Ship any Products;

         (g) Respond to or otherwise handle any product liability claims for any
Product;

         (h) Sell any Products of any kind or in any quantity;

         (i) Open any new customer accounts;

         (j) Resolve or compromise any customer warranty disputes or any items
listed in service bulletins; or

         (k) Terminate or modify the Poway Lease, or do anything that would
prevent Weber from operating in the Poway Facility during the Transition Period.

                                        7
<PAGE>   128
     3.5 Collection of Monies. Except as may be expressly provided otherwise in
the Asset Purchase Agreement, all monies collected by any Selling Party in
connection with or relating to the sale of the Products and/or the operation of
the Business during the Transition Period shall be deemed to be collected by any
Selling Party for the account of and benefit of Weber, it being understood that
Weber has purchased all of AI's accounts receivables pursuant to the Asset
Purchase Agreement . Any monies that may be collected or received by AI after
the Closing in connection with or relating to the sale of Products and/or
Business shall belong to Weber and such funds shall not be commingled with funds
of Selling Parties and shall be deposited without delay into bank accounts owned
by Weber.

     3.6 No Conflicting Duties. During the Transition Period, AI and its
directors and officers shall not serve as officers, directors, employees,
consultants or advisors to any business which competes, directly or indirectly,
with the Business, without the prior written consent of Weber. AI confirms that
it is under no contractual commitments inconsistent with its obligations set
forth in this Agreement, and that during the Transition Period, it will not
render or perform services, or enter into any contract to do so, for any other
corporation, firm, entity or person, including Simula and Simtec, which are
inconsistent with the provisions of this Agreement.

     3.7 Regulatory Compliance. During the Transition Period, AI shall comply
with the internal risk management procedures and controls established by Weber
and all federal, state and local licensing, certification, permit, and approval
requirements applicable to the Business or the Poway Facility.

     3.8 Assistance From Selling Parties. Subject to Weber's payment of the
amounts specified in Article 4 below, Selling Parties hereby agree to use their
best efforts to take, or cause to be taken, all actions and to do, or cause to
be done, all things reasonably required by Weber to consummate the relocation of
the Business to Weber's Facility and to implement the transactions contemplated
by this Agreement, including without limitation to provide adequate
administrative and computer support and to make available to Weber immediately
upon Weber's request all test records, technical data, numerical dynamic models
and the like in connection with or relating to the Products, to the extent same
are part of the Included Assets.

                                    ARTICLE 4

                                FINANCIAL MATTERS

     4.1 Payments to AI. As compensation for the Services, Weber shall pay AI
the following amounts:

         (a) Rent. Weber shall pay the Base Rent and the Common Area Operating
Expenses (collectively "Rent") payable by AI under the Poway Lease for the six
(6) month period beginning on the Closing and ending July 31, 2000; provided,
however, that any rental payments received by AI from Aerospace Technologies in
connection with or relating to the sublease (the "AT Sublease") of a portion of
the Poway Facility by Aerospace Technologies during said six-month

                                        8
<PAGE>   129
period shall be credited to reduce the amount so payable by Weber for the Rent.
The Rent shall be paid as provided in Section 4.2 below. The amount of the Rent
is specified on the Invoice dated January 6, 2000 attached hereto as Exhibit
"C." Weber's obligation to pay the Rent for the above referenced six-month
period will continue beyond the end of the Transition Period. Termination of the
Transition Period shall not reduce or end Weber's obligation to pay the Rent. If
AI should become excused from paying the rent due under the Poway Lease (due to
damage or destruction of the Poway Facility or otherwise but not for subletting
or assigning), Weber's obligation to pay the Rent shall be reduced to the same
extent.

         (b) Approved Cost Items. Weber shall reimburse AI for the actual amount
of the following direct, out-of-pocket costs and expenses ("Approved Cost
Items") reasonably incurred by AI in connection with or relating to the
operation of the Business during the Transition Period and the transfer of the
Business to Weber's Facility:

            (1) The cost of electrical, gas, water and telephone service to the
Poway Facility during the Transition Period; provided, however, that the cost of
long distance telephone calls shall be subject to audit and review by Weber in
order to verify that such calls were made in furtherance of the Business and/or
its relocation;

            (2) Rent for any equipment leased by AI (to the extent not part of
the Included Assets) which is used by Weber in furtherance of the Business
and/or its relocation;

            (3) Property and general liability insurance premiums payable with
respect to the Poway Facility during the Transition Period;

            (4) Real property taxes for the Poway Facility during the Transition
Period; and

            (5) Such other out-of-pocket expenses as may be reasonably incurred
by AI in providing the Services; provided, however, that without Weber's prior
written approval, Weber shall not be obligated to reimburse AI for any type or
category of cost which is not expressly listed in this Section 4.1 or on Exhibit
"A."

         (c) Temporary Personnel Costs. In addition to the other items listed in
this Section 4.1, Weber shall reimburse AI for the Temporary Personnel Costs.
Weber and AI shall agree on a mutually satisfactory mechanism for payment of the
Temporary Personnel Costs before the Closing.

         (d) Corporate Support Costs. Weber shall not be required to pay Selling
Parties any additional amount for any corporate support services provided as
part of the Services by any Selling Party during the Transition Period, except
as provided in this Section 4.1(d). Terri Harden and Bob Wolski will be on-site
at Poway regularly during the Transition Period and shall fully cooperate and
provide the Services without cost to Weber. Notwithstanding anything to the
contrary, if Weber requests that either Terri Harden or Bob Wolski travel to San
Diego, California to work

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<PAGE>   130
exclusively for the benefit of Weber, Weber shall (1) pay Simula $1,250 per day
(prorated for partial days) for each day that such individuals work in San Diego
and (2) reimburse Simula for the reasonable out-of-pocket travel costs for
airline fares, car rentals, and hotel rooms incurred by such individuals.

     4.2 Time of Payment. . Weber shall pay the Rent in installments on the
first day of each calendar month for which Weber is obligated to pay the Rent,
beginning on February 2, 2000. The installment due on February 2, 2000 shall
cover the period beginning at midnight on the Closing Date and ending on
February 28, 2000. Unless otherwise agreed in writing, Weber shall pay the other
amounts payable by it under Section 4.1 above twice monthly. In order to be
reimbursed by the fifteenth (15th) day of a calendar month, AI shall submit to
Weber - not later than the fifth (5th) day of such month - invoices stating in
reasonable detail the amount of and the reason for each item for which payment
is being sought and the justification/explanation for Weber's obligation to pay
same; provided, however, that AI's failure to submit such invoices in a timely
manner shall not release Weber from its obligations to make the payments
provided for in this Article 4.

                                    ARTICLE 5

                              TERM AND TERMINATION

     5.1 Term. This Agreement shall become effective at the Closing. The term of
this Agreement shall commence on the Closing and shall continue until the end of
the Transition Period.

     5.2 Termination for Cause. Either party may terminate this Agreement for
cause with immediate effect at any time by giving written notice of the
termination to the other party. "Cause" shall include, without limitation, the
following:

         (a) Appointment of a receiver or trustee to manage the assets of AI;

         (b) Assignment for the benefit of creditors of the assets of AI;

         (c) AI's filing for bankruptcy protection; or

         (d) Any material breach of this Agreement by either party, which is not
cured to the reasonable satisfaction of the non-breaching party within five (5)
business days after the breaching party's receipt of notice of default from the
non-breaching party. Weber shall be in material breach of this Agreement if it
fails to pay amounts due to AI within fifteen (15) days of notice of non-payment
from AI.

                                       10
<PAGE>   131
                                   ARTICLE 6

                                 INDEMNIFICATION

     6.1 Indemnification by AI. In addition to any and all duties of AI set
forth in the Asset Purchase Agreement and this Agreement, AI shall defend,
indemnify, and hold Weber harmless from any costs, damages, liabilities, losses,
lawsuits, and expenses (including without limitation interest, penalties and
reasonable attorneys' fees) arising out of or relating to the Covered Claims.

     6.2 Indemnification by Weber. In addition to any and all duties of Weber
set forth in the Asset Purchase Agreement and this Agreement, Weber shall
defend, indemnify, and hold AI harmless from any costs, damages, liabilities,
losses, lawsuits, and expenses (including, without limitation interest,
penalties and reasonable attorneys' fees) arising out of or relating to the
Excluded Claims.

     6.3 Dispute Resolution. If the parties dispute their liability with respect
to any Covered Claim or Excluded Claim, such dispute, or any other dispute
arising out of this Agreement, shall be resolved by arbitration pursuant to
Section 7.11 below.

                                    ARTICLE 7

                            MISCELLANEOUS PROVISIONS

     7.1 Costs and Expenses. Each of the parties will bear its own expenses in
connection with the negotiation and the consummation of the transactions
contemplated by this Agreement. Each party shall be solely responsible for its
respective legal, accounting, and other out-of-pocket expenses.

     7.2 Governing Law and Venue. This Agreement and any interpretation hereof
and the resolution of any dispute hereunder shall be governed by the laws of the
State of California, and subject to the parties' obligation to arbitrate and
dispute any action to enforce any provision of this Agreement or to obtain any
remedy with respect hereto may be brought in the appropriate state or federal
court in San Diego County, California. For this purpose each party hereto hereby
expressly and irrevocably consents to the jurisdiction of said court, it being
understood and agreed that the parties are obligated to arbitrate disputes
between them pursuant to Section 7.11 below.

     7.3 Interpretation. This Agreement shall not be interpreted against a party
by virtue of such party's participation in the drafting of the Agreement or any
provisions herein.

     7.4 Amendment. This Agreement may be amended, modified, or supplemented
only by an instrument in writing signed by all parties to this Agreement whose
rights or obligations are affected by such amendment, modification or
supplement.

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<PAGE>   132
     7.5 Inurement. This Agreement shall be binding upon and inure to the
benefit to the successors and/or assigns of the parties to this Agreement.

     7.6 Notices.

         (a) Method of Delivery. Any notice, request, demand, consent, approval
or other communication (hereafter "notice") required or permitted under this
Agreement or by law shall be in writing and delivered by any of the following
means: (1) personally delivering the notice to a senior officer or duly
authorized representative of the other party, (2) depositing the notice in the
United States mail, postage prepaid, duly certified (return-receipt requested),
(3) sending the notice by a commercial overnight delivery service (such as
FedEx) which maintains delivery records, or (4) sending the notice by electronic
facsimile or telecopier ("fax") (with the sending party retaining evidence of
the time and date of transmission). Confirmations of any notices sent by fax
shall be sent by mail as provided above.

         (b) Addresses. Notices shall be addressed as follows:

          If to AI:                          Airline Interiors, Inc.
                                             12325 Kerran Street
                                             Poway, CA 92064
                                             Attn:  Donald Rutter
                                             Fax No.: (858) 748-0590

          With a copy to:                    Simula, Inc.
                                             2700 North Central Avenue
                                             Suite 1100
                                             Phoenix, AZ 85004
                                             Attn: Bradley P. Forst, Esq.
                                             Fax No.:  (602) 631-9005

          If to Purchaser:                   Weber Aircraft, Inc.
                                             2000 Weber Drive
                                             Gainesville, Texas 76240
                                             Attn:  Michel Labarre
                                             Fax:  (940) 668-4853

          With copies to:                    Zodiac, S.A.
                                             2, rue Maurice Mallet
                                             92137, Issy-les-Moulineaux Cedex
                                             France
                                             Attn:  Jean-Jacques Jegou
                                             Fax No: (011-331) 41 23 23 62

                                       12
<PAGE>   133
                                             Hillyer & Irwin
                                             550 West C Street, 16th Floor
                                             San Diego, CA 92101
                                             Attn: William A. Reavey, Esq.
                                             Fax No.: (619) 595-1313

Any party may, from time to time, by written notice to the other, designate a
different address which shall be substituted for that specified above. It is
agreed that separate notices need not be sent to Simtec. Notices sent to Simula
shall be deemed to have been sent to Simtec.

         (c) Effectiveness. All notices shall be deemed effective upon receipt.
If personally delivered, notices shall be deemed received at the time of
delivery. If sent by mail, notices shall be deemed fully delivered and received
three (3) business days after the date of the postmark on the certified mail
receipt. If sent by commercial overnight delivery service, notices shall be
deemed fully delivered and received one (1) business day after the date of
deposit with such commercial overnight delivery service. If sent by fax, notices
shall be deemed received twenty-four (24) hours after transmission. Notices may
not be sent by e-mail. Rejection or other refusal to accept a notice or the
inability to deliver the same because of a changed address of which no notice
was given shall be deemed to be receipt of the notice sent. In the event of a
postal strike, all notices shall be personally delivered, sent by commercial
overnight delivery service, or sent by fax.

     7.7 Headings. The headings of the sections of this Agreement are for the
convenience of reference only, and do not form a part hereof, and in no way
modify, interpret or construe the meanings of the parties.

     7.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which shall
constitute one Agreement. The facsimile signatures of the parties shall be
deemed to constitute original signatures, and facsimile copies hereof shall be
deemed to constitute duplicate original counterparts.

     7.9 Waiver. Any term or provision of this Agreement may be waived at any
time by the party entitled to the benefit thereof by a written instrument duly
executed by such party. The failure of any of the parties to this Agreement to
require the performance of term or obligation under this Agreement or the waiver
by any of the parties to this Agreement of any breach hereunder shall not
prevent subsequent enforcement of such term or obligation or be deemed a waiver
of any subsequent breach hereunder.

     7.10 Severability. In case any one or more of the provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect
any other provision of this Agreement but this Agreement shall be construed as
if such invalid or illegal or unenforceable provision or part of a provision had
never been contained herein. In the event of any inaccuracy or breach of any
representation, warranty, covenant or agreement contained in this Agreement, the
rights and remedies of the aggrieved party

                                       13
<PAGE>   134
shall not be impaired or limited by reason of the fact that the act, omission,
occurrence, or other statement of facts giving rise to such inaccuracy or breach
may also be the subject matter of any other representation, warranty, covenant
or agreement contained in this Agreement (or any other agreement between the
parties) as to which there is no inaccuracy or breach.

     7.11 Arbitration.

         (a) General. Any controversy, claim, or dispute among the parties
hereto arising out of or related to this Agreement or the breach thereto, which
cannot be settled amicably by the parties, shall be submitted for binding
arbitration in accordance with the provisions contained herein and in accordance
with the Commercial Arbitration Rules of the American Arbitration Association
("Rules"); provided, however, that notwithstanding any provisions of such Rules,
the parties shall have the right to take depositions and obtain discovery
regarding the subject matter of the arbitration, as provided in Title III of
Part 4 (commencing with Section 1985) of the California Code of Civil Procedure.
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction. The arbitrator shall determine all questions of fact and
law relating to any controversy, claim, or dispute hereunder, including but not
limited to whether or not any such controversy, claim, or dispute is subject to
the arbitration provisions contained herein.

         (b) Third-Party Controversy. If a controversy, claim, or dispute arises
among the parties hereto which is subject to the arbitration provisions
hereunder, and there exists or later arises a controversy, claim, or dispute
between the parties hereto and any third party, which controversy, claim, or
dispute arises out of or relates to the same transaction or series of
transactions, said third party controversy, claim, or dispute shall be
consolidated with the arbitration proceedings hereunder; provided, however, that
any such third party must be a party to an agreement with a party hereto which
provides for arbitration of disputes thereunder in accordance with rules and
procedures substantially the same in all material respects as provided for
herein or, if not, must consent to arbitration as provided for hereunder.

         (c) Venue. All arbitration proceedings shall be held in San Diego,
California.

         (d) Notices. Notice of the demand for arbitration shall be filed in
writing with the other parties to this Agreement and with the American
Arbitration Association, it being understood, however, that notices intended for
the Selling Parties need only be given to Simula and that separate notices need
not be given to AI or Simula.

     7.12 Attorneys' Fees. Should any party hereto employ an attorney for the
purpose of enforcing or construing this Agreement, or any judgment based on this
Agreement, in any legal proceeding whatsoever, including insolvency, bankruptcy,
arbitration, declaratory relief or other litigation, the prevailing party shall
be entitled to receive from the other party or parties thereto reimbursement for
all attorneys' fees and all costs, including but not limited to service of
process costs, filing fees, court and court reporter costs, investigative costs,
expert witness fees and the cost of any bonds, whether taxable or not. Any such
reimbursement shall be included in any judgment or final order or award issued
in that proceeding. "Prevailing Party" means the party determined to

                                       14
<PAGE>   135
most nearly prevail and not necessarily the one in whose favor a judgment or
award is rendered. Attorneys' fees incurred in enforcing any judgment or award
are recoverable as a separate item, and this provision for post-judgment or
post-award attorneys' fees shall survive any judgment or award and shall not be
deemed merged into any judgment or award.

     7.13 Construction. Whenever the context so requires in this Agreement, all
words used in the singular shall be construed to have been used in the plural
(and vice versa), each gender shall be construed to include any other genders,
and the word "person" shall be construed to include a natural person, a
corporation, a firm, a partnership, a joint venture, a trust, an estate, or any
other entity.

     7.14 Authority of Signatories. Each individual signing this Agreement on
behalf of a corporation warrants that he or she is duly authorized to execute
and deliver this Agreement on behalf of the corporation, in accordance with a
duly adopted resolution of the board of directors of the corporation or in
accordance with the bylaws of the corporation, and that this Agreement is
binding on the corporation in accordance with its terms.

     7.15 Entire Agreement. This Agreement is one of a series of agreements
executed as part of an integrated transaction described in the Asset Purchase
Agreement. This Agreement, together with the Asset Purchase Agreement and with
all other agreements, assignments and exhibits expressly referred to therein or
herein, constitutes the entire agreement between the parties hereto with respect
to the subject matter of this Agreement. All prior agreements, representations,
negotiations and understandings of the parties hereto, oral or written, express
or implied, are hereby superseded and merged herein. To the maximum extent
permitted by law, each party expressly waives any right of rescission and all
claims for damages by reason of any statement, representation, warranty, promise
and/or agreement, if any, not contained or referenced to in this Agreement.

     7.16 Calculation of Business Days. For purposes of this Agreement, the term
"business days" shall mean days of the week other than Saturdays, Sundays and
legal holidays in the United States.

     7.17 Approvals by Weber. The only persons authorized to grant any approval
or consent required of Weber under this Agreement shall be Michel Labarre or
such other person(s) to whom he may delegate this responsibility.

                      [SIGNATURES APPEAR ON FOLLOWING PAGE]

                                       15
<PAGE>   136
         IN WITNESS WHEREOF, the parties hereto have caused this Transition
Support Agreement to be executed effective as of the date set forth above.

"AI:"                         AIRLINE INTERIORS, INC., an Arizona
                              corporation

                              By: /s/ Bradley P. Forst
                              Printed Name: Bradley P. Forst
                              Its: Secretary

"WEBER:"                      WEBER AIRCRAFT, INC., a Delaware corporation

                              By: /s/ Michael LaBarre
                              Printed Name:  Michael LaBarre
                              Its: President

"SIMTEC:"                     SIMULA TRANSPORTATION EQUIPMENT
                              CORPORATION, an Arizona corporation

                              By: /s/ Bradley P. Forst
                              Printed Name: Bradley P. Forst
                              Its: Secretary

 "SIMULA:"                    SIMULA, INC.,
                              an Arizona corporation

                              By:/s/ James C. Dodd
                              Printed Name: James C. Dodd
                              Its: CFO

                                       16
<PAGE>   137
                                   EXHIBIT "A"
                        (TO TRANSITION SUPPORT AGREEMENT)

                              SCHEDULE OF SERVICES

     Subject to Weber's financial obligations under Article 4, in addition to
any Services listed elsewhere in the Agreement, Selling Parties shall provide
the following Services during the Transition Period:

     1. Providing the Temporary Personnel who receive and accept offers of
employment from Weber and services reasonably required to operate and maintain
the building systems in the Poway Facility, including without limitation
telephone and computer systems, facilities management, facilities security,
trash removal and other similar services;

     2. During the Transition Period, Selling Parties shall also provide - at no
cost or expense to Weber - necessary corporate support for all computer systems
used in the Business, including by way of illustration but not limitation: the
Man-Fact software program, the Solid Works and

     3. Autocad software programs, subject, however, to Section 4.1(d) above.
Such services shall exclude data conversion to Weber's systems, but Simula shall
provide reasonable support and advice to Weber's personnel for such process;

     4. Providing such administrative services deemed necessary by Weber to
operate the Business and to transfer the Business and the Included Assets to
Weber's Facility;

     5. Maintaining customer service support functions as deemed necessary by
Weber for customers of the Business;

     6. Providing after sale services to customers of the Business and end users
of the Products;

     7. Providing support as reasonably required by Weber to ship the Included
Assets to Weber's Facility;

     8. Managing the warehouse where the Included Inventory is stored;

     9. Collecting the accounts receivables included in the Included Assets as
directed by Weber;

     10. Providing MIS support services to computer systems in the Poway
Facility from Simula's headquarters in Phoenix, AZ, subject to Section 4.1 (d)
above; and

                                       17
<PAGE>   138
     11. Providing accounting support by Terri Harden of Simula in Phoenix, AZ,
subject to Section 4.1 (d) above.

                                       18
<PAGE>   139
                                   EXHIBIT "B"
                        (TO TRANSITION SUPPORT AGREEMENT)

                           SCHEDULE OF INSURANCE COSTS
                             FOR TEMPORARY PERSONNEL

                            AIRLINES INTERIORS, INC.
                          COBRA MONTHLY INSURANCE RATES

<TABLE>
<CAPTION>
                                          Employee Only                  Employee and Family

<S>                                       <C>                            <C>
1.   Health, Life & Ancillary             $  232.73                            $651.82

2.   Vision                               $    8.09                            $ 18.03

3.   Worker's Compensation                $   94.23                              NA
</TABLE>

                                                       19

<PAGE>   140
                                  EXHIBIT "C"
                       (To Transition Support Agreement)

INVOICE

------------------------
|POMERADO LEASING NO. 1|
|P.O. BOX 12440        |
|SAN DIEGO, CA 92112   |
------------------------

------------------------                         ----------------------------
|AIRLINE INTERIORS     |                         |INVOICE DATE: JAN 06, 2000|
|ATTN: ACCOUNTS PAYABLE|                         |                          |
|12325 KERRAN ST       |                         |REFERENCE: DECREASE IN CAM|
|POWAY, CA 92064       |                         |            CHARGE        |
------------------------                         ----------------------------

-------------------------------------------------------
|THE FOLLOWING REPRESENTS RENT DUE EFFECTIVE 01/01/00:|
|                                                     |
|CURRENT MONTHLY RENT:                        $55,342.|
|MONTHLY OPERATING EXPENSES:                  $15,120.|
|MONTHLY TENANT IMPROVEMENT CHARGE:           $ 8,954.|
|MONTHLY AMOUNT DUE EFFECTIVE 01/01/00:       $79,416.|
-------------------------------------------------------

-------------------------------------------------------
|REMITTANCE ADVICE:                                   |
|WE DO NOT INVOICE ON A MONTHLY BASIS.                |
|                                                     |
|PLEASE MAKE CHECKS PAYABLE TO:                       |
|POMERADO LEASING NO. 1                               |
|                                                     |
|TOTAL DUE MONTHLY (EFFECTIVE 01/01/00):   $79,416.   |
-------------------------------------------------------<PAGE>   1
                                                                  Exhibit 10.41a

                               FINANCING AGREEMENT

                       THE CIT GROUP/BUSINESS CREDIT, INC.

                                   (AS LENDER)

                                       AND

                                  SIMULA, INC.
                              AND ITS SUBSIDIARIES

                                 (AS BORROWERS)

                            DATED: DECEMBER 30, 1999
<PAGE>   2
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS

<S>                                                                          <C>
SECTION  1.  Definitions ..................................................    1

SECTION  2.  Conditions Precedent .........................................   13

SECTION  3.  Revolving Loans ..............................................   18

SECTION  4.  Term Loan ....................................................   23

SECTION  5.  Letters of Credit ............................................   24

SECTION  6.  Collateral ...................................................   26

SECTION  7.  Representations, Warranties and Covenants ....................   30

SECTION  8.  Interest, Fees and Expenses ..................................   37

SECTION  9.  Powers .......................................................   40

SECTION 10.  Events of Default and Remedies ...............................   41

SECTION 11.  Termination ..................................................   44

SECTION 12.  Miscellaneous ................................................   45

SIGNATURES ................................................................   47
</TABLE>

EXHIBIT

     Exhibit A - Form of Term Loan Promissory Note

SCHEDULES

     Schedule 1 - Existing Liens
     Schedule 2 - Collateral Locations and Chief Executive Office
<PAGE>   3
     THE CIT GROUP/BUSINESS CREDIT, INC., a New York corporation, (hereinafter
"CITBC") with offices located at 300 South Grand Avenue, 3rd Floor, Los Angeles,
California 90071, is pleased to confirm the terms and conditions under which
CITBC shall make revolving loans, term loans and other financial accommodations
to SIMULA, INC. (herein "Simula"), an Arizona corporation with a principal place
of business at 2700 North Central Avenue, Suite 1000, Phoenix, Arizona 85004,
and Simula's subsidiaries AIRLINE INTERIORS, INC. (herein "AII"), an Arizona
corporation with a principal place of business at 12325 Kerran Street, Poway,
California 92064, ARTCRAFT INDUSTRIES CORP. (herein "AIC"), an Arizona
corporation with a principal place of business at 4753 Aviation Parkway, Suite
F, College Park, Georgia 30349, SIMULA TRANSPORTATION EQUIPMENT CORPORATION
(formerly known as INTAERO INC.; herein "STEC"), an Arizona corporation with a
principal place of business at 9940 Mesa Rim Road, San Diego, California 92121,
INTERNATIONAL CENTER FOR SAFETY EDUCATION, INC. (herein "ISFSE"), an Arizona
corporation with a principal place of business at 10016 South 51st Street,
Phoenix, Arizona 85044, SIMULA AUTOMOTIVE SAFETY DEVICES, INC. (herein "SASD"),
an Arizona corporation with a principal place of business at 7360 S. Kyrene
Road, Suite 106, Tempe, Arizona 85283, SIMULA COMPOSITES CORPORATION (herein
"SCC"), an Arizona corporation with a principal place of business at 2495 South
Industrial Park Avenue, Tempe, Arizona 85282, SIMULA POLYMER SYSTEMS, INC.
(herein "SPS"), an Arizona corporation with a principal place of business at
10016 South 51st Street, Phoenix, Arizona 85044, SIMULA SAFETY SYSTEMS, INC.
(herein "SSS"), an Arizona corporation with a principal place of business at
7414 South Harl Avenue, Tempe, Arizona 85283, SIMULA TECHNOLOGIES, INC. (herein
"STI"), an Arizona corporation with a principal place of business at 10016 South
51st Street, Phoenix, Arizona 85044, CCEC CAPITAL CORP., an Arizona corporation
with a principal place of business at 2700 North Central Avenue, Suite 1000,
Phoenix, Arizona 85004, and SIMULA AUTOMOTIVE SAFETY DEVICES, LIMITED (herein
"SASD Limited"), a United Kingdom corporation with a principal place of business
at Unit 2, Wansbeck Business Park, Rotary Parkway, Ashington, Northumberland
NE63 8QZ, United Kingdom (Simula and such subsidiaries may be referred to herein
individually as a "Company" and collectively as the "Companies").

SECTION 1.  DEFINITIONS

ACCOUNTS shall mean all of the Companies' now existing and future: (A) accounts
(as defined in the U.C.C.) and any and all other receivables (whether or not
specifically listed on schedules furnished to CITBC), including, without
limitation, all accounts created by or arising from all of their sales of goods
or rendition of services to their customers, and all accounts arising from sales
or rendition of services made under any of their trade names or styles, or
through any of their divisions; (B) any and all instruments (as defined in the
U.C.C.), documents (as defined in the U.C.C.), contract rights (as defined in
the U.C.C.) and chattel paper (as defined in the U.C.C.); (C) unpaid seller's
rights (including rescission,

                                       1
<PAGE>   4
replevin, reclamation and stoppage in transit) relating to the foregoing or
arising therefrom; (D) rights to any goods represented by any of the foregoing,
including rights to returned or repossessed goods; (E) reserves and credit
balances arising hereunder; (F) guarantees or collateral for any of the
foregoing; (G) insurance policies or rights relating to any of the foregoing;
and (H) cash and non-cash proceeds of any and all the foregoing.

ACCOUNTS RECEIVABLE ADVANCE PERCENTAGE shall mean eighty-five percent (85%).

ADMINISTRATIVE MANAGEMENT FEE shall mean the sum of $35,000 which shall be paid
to CITBC in accordance with Section 8, Paragraph 11 hereof to offset the
expenses and costs (excluding Out-of-Pocket Expenses) of CITBC in connection
with record keeping, periodic examinations, analyzing and evaluating the
Collateral.

ANNIVERSARY DATE shall mean the date occurring three (3) years from the date
hereof and the same date in every year thereafter.

AVAILABILITY shall mean, as to any Company, at any time the excess of the sum of
a) Eligible Accounts Receivable of such Company multiplied by the Accounts
Receivable Advance Percentage, and b) the lesser of (i) Eligible Inventory of
such Company multiplied by the Inventory Advance Percentage or (ii) the
Inventory Loan Cap, and c) the lesser of (i) Revenue in Excess of Billing of
such Company multiplied by the Revenue in Excess of Billing Advance Percentage
or (ii) the Revenue in Excess of Billing Loan Cap over the sum of x) the
outstanding aggregate amount of all Obligations of such Company, including,
without limitation, all Obligations with respect to Revolving Loans and Letters
of Credit but excluding the Term Loan and y) the Availability Reserve of such
Company.

AVAILABILITY RESERVE shall mean, as to any Company, the sum of two (2) months
rental payments on all of its leased premises (determined in accordance with
Schedule 1 hereto) for which it has not delivered to CITBC a landlord's waiver
(in form and substance satisfactory to CITBC in the exercise of its reasonable
business judgment), provided that such amount shall be increased to the sum of
three (3) months rental payments with respect to all such leased premises as to
CITBC has not received a landlord's waiver within 90 days of the Closing Date,
as such amounts may be adjusted from time to time hereafter upon (i) delivery to
CITBC of any such acceptable waiver, (ii) the opening or closing of a Collateral
location and/or (iii) any change in rental payment.

BILLINGS shall mean, as to any Company, the amounts billed by such Company under
a contract between such Company and a third party, which contract provides for
progress billings and payments or otherwise entitles such Company to payment
upon such billing.

                                       2
<PAGE>   5
BUSINESS DAY shall mean any day that CITBC is open for business in New York, New
York, which is not (i) a Saturday, Sunday or legal holiday in the state of New
York or (ii) a day on which banking institution chartered by the state of New
York or the United States are legally required to close.

CAPITAL EXPENDITURES for any period shall mean the aggregate of all expenditures
of the Companies during such period that in conformity with GAAP are required to
be included in or reflected by the property, plant or equipment or similar fixed
asset account reflected in the balance sheet of the Companies.

CAPITAL IMPROVEMENTS shall mean operating Equipment and facilities (other than
land) acquired or installed for use in the Companies' business operations.

CAPITAL LEASE shall mean any lease of property (whether real, personal or mixed)
which, in conformity with GAAP, is accounted for as a capital lease or a Capital
Expenditure on the balance sheet of the Companies.

CHASE BANK RATE shall mean the rate of interest per annum announced by The Chase
Manhattan Bank from time to time as its prime rate in effect at its principal
office in the City of New York. (The prime rate is not intended to be the lowest
rate of interest charged by The Chase Manhattan Bank to its borrowers).

CLOSING DATE shall mean December 30, 1999.

COLLATERAL shall mean all present and future Accounts, Equipment, Inventory,
Documents of Title, General Intangibles, Real Estate and Other Collateral of the
Companies.

CONSOLIDATED BALANCE SHEET shall mean a consolidated balance sheet for Parent,
the Companies and the consolidated subsidiaries of each eliminating all
inter-company transactions and prepared in accordance with GAAP.

CONSOLIDATING BALANCE SHEET shall mean a Consolidated Balance Sheet plus
individual balance sheets for Parent, the Companies, and the subsidiaries of
each showing all elimination of inter-company transactions and prepared in
accordance with GAAP and including a balance sheet for each Company exclusively.

CUSTOMARILY PERMITTED LIENS shall mean

     (a) liens of local or state authorities for franchise or other like taxes
provided the aggregate amounts of such liens shall not exceed $100,000.00 in the
aggregate for the Companies at any one time;

                                       3
<PAGE>   6
     (b) statutory liens of landlords and liens of carriers, warehousemen,
mechanics, materialmen and other like liens imposed by law, created in the
ordinary course of business and for amounts not yet due (or which are being
contested in good faith by appropriate proceedings or other appropriate actions
which are sufficient to prevent imminent foreclosure of such liens) and with
respect to which adequate reserves or other appropriate provisions are being
maintained in accordance with GAAP;

     (c) deposits made (and the liens thereon) in the ordinary course of
business (including, without limitation, security deposits for leases, surety
bonds and appeal bonds) in connection with workers' compensation, unemployment
insurance and other types of social security benefits or to secure the
performance of tenders, bids, contracts (other than for the repayment or
guarantee of borrowed money or purchase money obligations), statutory
obligations and other similar obligations arising as a result of progress
payments under government contracts; and

     (d) easements (including, without limitation, reciprocal easement
agreements and utility agreements), encroachments, minor defects or
irregularities in title, variation and other restrictions, charges or
encumbrances (whether or not recorded) affecting the Real Estate and which (i)
are listed in Schedule B of the title insurance policy delivered to CITBC
herewith or (ii) in the aggregate (x) do no materially interfere with the
occupation, use or enjoyment by the Companies in their business of the property
so encumbered and (y) in the reasonable business judgment of CITBC does not
materially and adversely affect the value of such Real Estate.

DEFAULT shall mean any event specified in Section 10 hereof, whether or not any
requirement for the giving of notice, the lapse of time, or both, or any other
condition, event or act, has been satisfied.

DEFAULT RATE OF INTEREST shall mean a rate of interest per annum equal to the
sum of: a) two percent (2%) plus b) the applicable contract rate of interest
based upon the applicable increment over the Chase Bank Rate as determined under
Section 8 hereof, which CITBC shall be entitled to charge the Companies on all
Obligations due CITBC by the Companies to the extent provided in Section 10,
Paragraph 2 of this Financing Agreement.

DEPOSITORY ACCOUNTS shall have the meaning specified in Section 3, Paragraph 4
hereof.

DIVESTITURE shall mean the consummation of the sale by Simula of the capital
stock or substantially all of the assets of AII.

                                       4
<PAGE>   7
DOCUMENTATION FEE shall mean CITBC's standard fees relating to any and all
modifications, waivers, releases, amendments or additional collateral with
respect to this Financing Agreement, the Collateral and/or the Obligations.

DOCUMENTS OF TITLE shall mean all present and future documents (as defined in
the U.C.C.) including, without limitation all warehouse receipts, bills of
lading, shipping documents, chattel paper, instruments and similar documents,
all whether negotiable or not and all goods and Inventory relating thereto and
all cash and non-cash proceeds of the foregoing.

EARLY TERMINATION DATE shall mean the date on which the Companies terminate this
Financing Agreement or the Line of Credit which date is prior to an Anniversary
Date.

EARLY TERMINATION FEE shall: I) mean the fee CITBC is entitled to charge the
Companies in the event they terminate the Line of Credit or this Financing
Agreement on a date prior to an Anniversary Date; and II) be determined by
multiplying the Line of Credit by (x) one and one-half percent (1-1/2%) if the
Early Termination Date occurs on or prior to one (1) year after the Closing
Date, or (y) three-fourths percent (3/4%) if the Early Termination Date occurs
after one (1) year after the Closing Date but prior to two (2) years after the
Closing Date.

EBITDA shall mean, in any period, all earnings before all (i) interest and tax
obligations, (ii) depreciation, and (iii) amortization for said period, all
determined in accordance with GAAP on a basis consistent with the latest audited
financial statements of the Companies but excluding the effect of extraordinary
and/or non-reoccurring gains or losses for such period.

ELIGIBLE ACCOUNTS RECEIVABLE shall mean, as to any Company, the gross amount of
such Company's Trade Accounts Receivable that are subject to a valid, first
priority and fully perfected security interest in favor of CITBC and which
conform to the warranties contained herein and at all times continue to be
acceptable to CITBC in the exercise of its reasonable business judgment, less,
without duplication, the sum of a) any returns, discounts, claims, credits and
allowances of any nature (whether issued, owing, granted or outstanding) and b)
reserves for: i) sales to the United States of America or to any agency,
department or division thereof (other than Trade Accounts Receivable as to which
such Company has complied with the federal Assignment of Claims Act for the
benefit of CITBC); ii) foreign sales other than sales x) secured by stand-by
letters of credit (in form and substance satisfactory to CITBC) issued or
confirmed by, and payable at, banks having a place of business in the United
States of America and payable in United States currency, or y) covered by credit
insurance in form and substance satisfactory to CITBC, or z) otherwise deemed
creditworthy and acceptable by CITBC; iii) Accounts that remain unpaid more than
ninety (90) days from invoice date (but with respect to Accounts as to which the

                                       5
<PAGE>   8
payment terms are up to ninety (90) days from invoice date, Accounts that remain
unpaid for 30 days past due date but in no event unpaid one hundred twenty (120)
days or more past invoice date); iv) contras; v) sales to Parent, any
subsidiary, or to any company affiliated with the Companies or Parent in any
way; vi) bill and hold (deferred shipment) or consignment sales; vii) sales to
any customer which is a) insolvent, b) the debtor in any bankruptcy, insolvency,
arrangement, reorganization, receivership or similar proceedings under any
federal or state law, c) negotiating, or has called a meeting of its creditors
for purposes of negotiating, a compromise of its debts or d) financially
unacceptable to CITBC or has a credit rating unacceptable to CITBC; viii) all
sales to any customer if fifty percent (50%) or more of either x) all
outstanding invoices or y) the aggregate dollar amount of all outstanding
invoices, are unpaid more than ninety (90) days from invoice date; ix) a
concentration reserve, at CITBC's discretion, against sales to any customer
(other than AutoLiv and its affiliates as to which the concentration reserve
shall be up to 35% (and up to 45% after consummation of the Divestiture), as
determined in CITBC's discretion as against the aggregate of all Eligible
Accounts Receivable of the Companies) which are in excess of an amount up to
twenty percent (20%) (as determined in CITBC's discretion) of all Eligible
Accounts Receivable; x) any other reasons deemed necessary by CITBC in its
reasonable business judgment and which are customary either in the commercial
finance industry or in the lending practices of CITBC; xi) an amount
representing, historically, returns, discounts, claims, credits and allowances;
and xii) such other reserves as CITBC deems necessary in its commercially
reasonable judgment as a result of a) negative forecasts and/or trends in such
Company's business, industry, prospects, profits, operations or financial
condition, or b) other issues, circumstances or facts that could otherwise
negatively affect such Company, its business, prospects, profits, operations,
industry, financial condition or assets.

ELIGIBLE INVENTORY shall mean, as to any Company, the gross amount of such
Company's Inventory that is subject to a valid, first priority and fully
perfected security interest in favor of CITBC and which conform to the
warranties contained herein and which at all times continue to be acceptable to
CITBC in the exercise of its reasonable business judgment less any
work-in-process, supplies (other than raw material), goods not present in the
United States of America, goods returned or rejected by its customers other than
goods that are undamaged and resaleable in the normal course of business, goods
to be returned to its suppliers, goods in transit to third parties (other than
its agents or warehouses), Inventory in possession of a warehouseman, bailee or
other third party unless such warehouseman, bailee or third party has executed a
notice of security interest agreement (in form and substance satisfactory to
CITBC) and CITBC has taken all other action required to perfect its security
interest in such Inventory, and less any reserves required by CITBC in its
reasonable discretion for special order goods, market value declines and bill
and hold (deferred shipment) or consignment sales.

                                       6
<PAGE>   9
EQUIPMENT shall mean all present and hereafter acquired equipment (as defined in
the U.C.C.) including, without limitation, all machinery, equipment, furnishings
and fixtures, and all additions, substitutions and replacements thereof,
wherever located, together with all attachments, components, parts, equipment
and accessories installed thereon or affixed thereto and all proceeds of
whatever sort.

ERISA shall mean the Employee Retirement Income Security Act or 1974, as amended
from time to time and the rules and regulations promulgated thereunder from time
to time.

EVENT(S) OF DEFAULT shall have the meaning provided for in Section 10 of this
Financing Agreement.

EXECUTIVE OFFICERS shall mean the Chairman, President, Chief Executive Officer,
Chief Operating Officer, Chief Financial Officer, Executive Vice President(s),
Senior Vice President(s), Treasurer, Controller and Secretary of the Companies.

FISCAL QUARTER shall mean each three (3) month period ending on March 31, June
30, September 30 and December 31 of each year.

FISCAL YEAR shall mean each twelve (12) month period commencing on January 1
each year and ending on the following December 31.

FIXED CHARGE COVERAGE RATIO shall mean, for the relevant period, the ratio
determined by dividing EBITDA by the sum of (i) all interest obligations paid in
cash, (ii) the amount of principal repaid or scheduled to be repaid on
Indebtedness, but excluding the Term Loan or the LLCP Term Loan A Debt repaid
due to the consummation of the Divestiture or the sale of the stock or assets of
a Company, (iii) Capital Expenditures and (iv) all federal, state and local
income tax expenses paid in cash.

GAAP shall mean generally accepted accounting principles in the United States of
America as in effect from time to time and for the period as to which such
accounting principles are to apply.

GENERAL INTANGIBLES shall have the meaning set forth in the U.C.C. and shall
include, without limitation, all present and future right, title and interest in
and to all tradenames, Trademarks (together with the goodwill associated
therewith), Patents, licenses, customer lists, distribution agreements, supply
agreements and tax refunds, together with all monies and claims for monies now
or hereafter due and payable in connection with any of the foregoing or
otherwise, and all cash and non-cash proceeds thereof.

GUARANTORS shall mean i) Parent, and ii) the Companies.

                                       7
<PAGE>   10
INDEBTEDNESS shall mean, without duplication, all liabilities, contingent or
otherwise, which are any of the following: (a) obligations in respect of money
(borrowed or otherwise) or for the deferred purchase price of property, services
or assets, other than Inventory, or (b) lease obligations which, in accordance
with GAAP, have been, or which should be capitalized.

INTERCREDITOR AGREEMENT shall mean that certain Intercreditor Agreement, dated
on or about the date hereof, between CITBC and LLCP.

INVENTORY shall mean all of the Companies' present and hereafter acquired
inventory (as defined in the U.C.C. including, without limitation all
merchandise, inventory and goods, and all additions, substitutions and
replacements thereof, wherever located, together with all goods and materials
used or usable in manufacturing, processing, packaging or shipping same; in all
stages of production- from raw materials through work-in-process to finished
goods - and all proceeds thereof of whatever sort.

INVENTORY ADVANCE PERCENTAGE shall mean fifty percent (50%).

INVENTORY LOAN CAP shall mean $7,000,000; provided that upon the earlier of the
consummation of the Divestiture or the first anniversary of the Closing Date,
such amount shall be reduced to $5,000,000.

ISSUING BANK shall mean the bank issuing Letters of Credit for the Companies.

LETTERS OF CREDIT shall mean all letters of credit issued with the assistance of
CITBC by the Issuing Bank for or on behalf of the Companies.

LETTER OF CREDIT GUARANTY shall mean the guaranty delivered by CITBC to the
Issuing Bank of the Companies' reimbursement obligation under the Issuing Bank's
reimbursement agreement, application for letter of credit or other like
document.

LETTER OF CREDIT GUARANTY FEE shall mean the fee CITBC may charge the Companies
under Section 8, Paragraph 6 of this Financing Agreement for: i) issuing the
Letter of Credit Guaranty or ii) otherwise aiding the Companies in obtaining
Letters of Credit.

LETTER OF CREDIT SUB-LINE shall mean $3,000,000 in the aggregate for the
Companies.

LIBOR shall mean at any time of determination, and subject to availability, for
each interest period the higher of the applicable London Interbank Offered rate
paid in London on dollar deposits from other banks as (x) quoted by The Chase
Manhattan Bank, (y) published under "Money Rates" in the new York City edition
of the Wall Street Journal or if there is no such publication or statement
therein as to Libor then in any publication used in the

                                       8
<PAGE>   11
New York City financial community or (z) determined by CITBC based upon
information presented on Telerate Systems at Page 3750 as of 11:00 a.m. (London
Time).

LIBOR LOAN shall mean those Revolving Loans for which the Companies have elected
to use Libor for interest rate computations.

LIBOR PERIOD shall mean the Libor for one month, two month, three month or six
month U.S. dollar deposits, as selected by the Companies.

LINE OF CREDIT shall mean the commitment of CITBC to make Revolving Loans
pursuant to Section 3 of this Financing Agreement and to assist the Companies in
opening Letters of Credit pursuant to Section 5 of this Financing Agreement, in
the aggregate amount equal to $17,000,000 for the Companies.

LLCP shall mean Levine Leichtman Capital Partners II, L.P.

LLCP DEBT shall mean the LLCP Term Loan A Debt and the LLCP Term Loan B Debt, or
such portion thereof as may be outstanding from time to time.

LLCP TERM LOAN A DEBT shall mean indebtedness in the original principal amount
of $5,000,000 advanced to the Companies by LLCP on or about the date hereof with
a stated maturity of September 30, 1999.

LLCP TERM LOAN B DEBT shall mean indebtedness in the original principal amount
of $15,000,000 advanced to the Companies by LLCP on or about the date hereof
with a stated maturity of June 30, 2003.

LOAN FACILITY FEE shall mean the fee payable to CITBC in accordance with, and
pursuant to, the provisions of Section 8, Paragraph 10 of this Financing
Agreement.

OBLIGATIONS shall mean all loans and advances made or to be made by CITBC to the
Companies or to others for the Companies' account (including, without
limitation, all Revolving Loans, Letters of Credit, and the Term Loan); any and
all indebtedness and obligations which may at any time be owing by the Companies
to CITBC howsoever arising, whether now in existence or incurred by the
Companies from time to time hereafter; whether secured by pledge, lien upon or
security interest in any of the Companies' assets or property or the assets or
property of any other person, firm, entity or corporation; whether such
indebtedness is absolute or contingent, joint or several, matured or unmatured,
direct or indirect and whether the Companies are liable to CITBC for such
indebtedness as principal, surety, endorser, guarantor or otherwise. Obligations
shall also include indebtedness owing to CITBC by the Companies under this
Financing Agreement or under any other agreement or arrangement now or hereafter
entered into between the

                                       9
<PAGE>   12
Companies and CITBC; indebtedness or obligations incurred by, or imposed on,
CITBC as a result of environmental claims (other than as a result of actions of
CITBC) arising out of the Companies' operation, premises or waste disposal
practices or sites; the Companies' liability to CITBC as maker or endorser on
any promissory note or other instrument for the payment of money; the Companies'
liability to CITBC under any instrument of guaranty or indemnity, or arising
under any guaranty, endorsement or undertaking which CITBC may make or issue to
others for the Companies' account, including any accommodation extended with
respect to applications for Letters of Credit, CITBC's acceptance of drafts or
CITBC's endorsement of notes or other instruments for the Companies' account and
benefit.

OPERATING LEASES shall mean all leases of property (whether real, personal or
mixed) other than Capital Leases.

OTHER COLLATERAL shall mean all now owned and hereafter acquired deposits
accounts maintained with any bank or financial institutions; all cash and other
monies and property in the possession or control of CITBC; all now owned and
after acquired investment property; all books, records, ledger cards, disks and
related data processing software at any time evidencing or containing
information relating to any of the Collateral described herein or otherwise
necessary or helpful in the collection thereof or realization thereon, and all
cash and non-cash proceeds of the foregoing.

OUT-OF-POCKET EXPENSES shall mean all of CITBC's present and future expenses
incurred relative to this Financing Agreement, whether incurred heretofore or
hereafter, which expenses shall include, without being limited to, the cost of
record searches, all costs and expenses incurred by CITBC in opening bank
accounts, depositing checks, receiving and transferring funds, and any charges
imposed on CITBC due to "insufficient funds" of deposited checks and CITBC's
standard fee relating thereto, any amounts paid by CITBC, incurred by or charged
to CITBC by the Issuing Bank under the Letter of Credit Guaranty or the
Companies' Reimbursement Agreement, Application for Letter of Credit or other
like document which pertain either directly or indirectly to such Letters of
Credit, and CITBC's standard fees relating to the Letters of Credit and any
drafts thereunder, reasonable travel, lodging and similar expenses of CITBC's
personnel in inspecting and monitoring the Collateral from time to time
hereunder local counsel fees, title insurance premiums, real estate survey
costs, fees and taxes relative to the filing of financing statements, costs of
preparing and recording mortgages/deeds of trust against the Real Estate and all
expenses, costs and fees set forth in Section 10, Paragraph 3 of this Financing
Agreement.

OVERADVANCE RATE shall mean a rate equal to one-half of one percent (1/2%) per
annum in excess of the applicable contract rate of interest determined in
accordance with Section 8, Paragraph 1(a) of this Financing Agreement.

                                       10
<PAGE>   13
PARENT shall mean Simula.

PATENTS shall mean all present and hereafter acquired patents and/or patent
rights of the Companies and all cash and non-cash proceeds thereof.

PERMITTED ENCUMBRANCES shall mean: i) liens existing on the date hereof on
specific items of Equipment and listed on Schedule 1 hereto and other liens
expressly permitted, or consented to, by CITBC (including the liens securing the
LLCP Debt as contemplated under the Intercreditor Agreement); ii) Purchase Money
Liens; iii) Customarily Permitted Liens; iv) liens granted CITBC by the
Companies; v) liens of judgment creditors provided such liens do not exceed, in
the aggregate for the Companies, at any time, $50,000.00 (other than liens
bonded or insured to the reasonable satisfaction of CITBC); and vi) liens for
taxes not yet due and payable or which are being diligently contested in good
faith by the Companies by appropriate proceedings and which liens are not x)
other than with respect to Real Estate, senior to the liens of CITBC or y) for
taxes due the United States of America.

PERMITTED INDEBTEDNESS shall mean: i) current indebtedness maturing in less than
one year and incurred in the ordinary course of business for raw materials,
supplies, equipment, services, taxes or labor; ii) the indebtedness secured by
the Purchase Money Liens; iii) Subordinated Debt (or refinancings or renewals
thereof if on substantially the same or more favorable terms and structure,
including but not limited to the maturity, debt service, interest rates and such
other terms as CITBC deems material in its reasonable commercial judgment); iv)
indebtedness arising under the Letters of Credit and this Financing Agreement;
v) deferred taxes and other expenses incurred in the ordinary course of
business; vi) LLCP Debt; and vii) other indebtedness existing on the date of
execution of this Financing Agreement and listed in the most recent financial
statement delivered to CITBC or otherwise disclosed to CITBC in writing.

PROMISSORY NOTE shall mean the note, in the form of Exhibit A attached hereto,
delivered by The Companies to CITBC to evidence the Term Loan pursuant to, and
repayable in accordance with, the provisions of Section 4 of this Financing
Agreement.

PURCHASE MONEY LIENS shall mean liens on any item of equipment acquired after
the date of this Financing Agreement provided that i) each such lien shall
attach only to the property to be acquired, ii) a description of the property so
acquired is furnished to CITBC, and iii) the debt incurred in connection with
such acquisitions shall not exceed in the aggregate $4,000,000 in any Fiscal
Year plus, from and after January 1, 2001, the difference between the amount
permitted hereunder during the prior Fiscal Year and the amount actually
expended.

                                       11
<PAGE>   14
REAL ESTATE shall mean the Companies' fee and/or leasehold interests in real
property, which has been, or will be, encumbered, mortgaged, pledged or assigned
to CITBC or its designee.

REVENUE IN EXCESS OF BILLINGS shall mean, as to any Company, with respect to
contracts between such Company and unaffiliated third parties acceptable to
CITBC in its discretion, the costs and estimated earnings which such Company
certifies to CITBC have been earned and will be payable to such Company upon the
billing therefor by such Company under the applicable contract, and which
amounts are not subject to any right of offset, deduction, or other claim except
as consented to in writing by CITBC.

REVENUE IN EXCESS OF BILLING ADVANCE PERCENTAGE shall mean fifteen percent
(15%). REVENUE IN EXCESS OF BILLING LOAN CAP shall mean $1,500,000.

REVOLVING LOANS shall mean the loans and advances made, from time to time, to or
for the account of the Companies by CITBC pursuant to Section 3 of this
Financing Agreement.

REVOLVING LOAN ACCOUNT(S) shall have the meaning specified in Section 3,
Paragraph 6 hereof.

SUBORDINATED DEBT shall mean the debt due a Subordinating Creditor (and the note
evidencing such) which has been subordinated, by a Subordination Agreement, to
the prior payment and satisfaction of the Obligations of the Companies to CITBC
(in form and substance satisfactory to CITBC); the debt of approximately
$3,238,000 as of the date hereof issued pursuant to that certain Indenture,
dated April 1, 1997 among Simula, certain of its subsidiaries and Bank One,
Columbus, N.A. as Trustee (the "1997 Indenture"); and the debt of approximately
$34,500,000 as of the date hereof issued pursuant to the 1997 Indenture.

SUBORDINATING CREDITOR shall mean any party hereafter executing a Subordination
Agreement.

SUBORDINATION AGREEMENT shall mean an agreement among the Companies, a
Subordinating Creditor and CITBC pursuant to which Subordinated Debt is
subordinated to the prior payment and satisfaction of the Companies' Obligations
to CITBC (in form and substance satisfactory to CITBC).

TERM LOAN PROMISSORY NOTE shall mean the promissory note in the form of Exhibit
A hereto executed by the Companies to evidence the Term Loan made by CITBC under
Section 4 hereof.

                                       12
<PAGE>   15
TERM LOAN shall mean the term loan in the principal amount of $5,000,000 made by
CITBC pursuant to, and repayable in accordance with, the provisions of Section 4
of this Financing Agreement.

TRADE ACCOUNTS RECEIVABLE shall mean that portion of Accounts which arises from
the sale of Inventory or the rendition of services in the ordinary course of
business.

TRADEMARKS shall mean all present and hereafter acquired trademarks and/or
trademark rights (together with the goodwill associated therewith) and all cash
and non-cash proceeds thereof.

U.C.C. shall mean the Uniform Commercial Code as in effect from time to time in
the state of California.

UNUSED LINE FEE shall: i) mean the fee due CITBC at the end of each month for
the Line of Credit, and ii) be determined by multiplying the difference between
the Line of Credit, and the sum of (x) the average daily balance of Revolving
Loans of the Companies plus (y) the average daily balance of Letters of Credit
of the Companies of the Companies for said month by three-eighths of one percent
(3/8%) per annum for the number of days in said month.

WORKING CAPITAL shall mean Current Assets in excess of Current Liabilities.

SECTION 2.  CONDITIONS PRECEDENT AND SUBSEQUENT

     The obligation of CITBC to make loans hereunder is subject to the
satisfaction of, or waiver of, immediately prior to or concurrently with, or
subsequent to (where indicated), the making of such loans, the following
conditions precedent:

     a) LIEN SEARCHES - CITBC shall have received tax, judgment and Uniform
Commercial Code searches satisfactory to CITBC for all locations presently
occupied or used by the Companies.

     b) CASUALTY INSURANCE - The Companies shall have delivered to CITBC
evidence satisfactory to CITBC that casualty insurance policies listing CITBC as
loss payee or mortgagee, as the case may be, are in full force and effect, all
as set forth in Section 7, Paragraph 5 of this Financing Agreement.

     c) MORTGAGES/DEEDS OF TRUST - The Companies shall have executed and
delivered to either CITBC or an agent of CITBC or of a title insurance Company
acceptable to CITBC such mortgages and deeds of trust as CITBC may reasonably
require to obtain first liens on the Real Estate; provided that this condition
may be satisfied within 30 days following the Closing Date, and any failure to
do so will constitute an Event of Default hereunder.

                                       13
<PAGE>   16
     d) UCC FILINGS - Any documents (including without limitation, financing
statements) required to be filed in order to create, in favor of CITBC, a first
and (other than Permitted Encumbrances) exclusive perfected security interest in
the Collateral with respect to which a security interest may be perfected by a
filing under the U.C.C. shall have been properly filed in each office in each
jurisdiction required in order to create in favor of CITBC a perfected lien on
the Collateral. CITBC shall have received acknowledgement copies of all such
filings (or, in lieu thereof, CITBC shall have received other evidence
satisfactory to CITBC that all such filings have been made); and CITBC shall
have received evidence that all necessary filing fees and all taxes or other
expenses related to such filings have been paid in full.

     e) TITLE INSURANCE POLICIES - Together with the execution and delivery of
the deeds of trust and mortgages under c) above, CITBC shall have received, in
respect of each mortgage or deed of trust, a mortgagee's title policy or
marked-up unconditional binder for such insurance. Each such policy shall (i) be
in an amount satisfactory to CITBC; (ii) insure that the mortgage or deed of
trust insured thereby creates a valid first lien on the property covered by such
mortgage or deed of trust, free and clear of all defects and encumbrances except
those acceptable to CITBC; (iii) name CITBC as the insured thereunder; and (iv)
contain such endorsements and effective coverage as CITBC may reasonably
request, including without limitation the revolving line of credit endorsement.
CITBC shall also have received evidence that all premiums in respect of such
policies have been paid and that all charges for mortgage recording taxes, if
any, shall have been paid.

     f) SURVEYS - If reasonably required by CITBC, together with the execution
and delivery of the deeds of trust and mortgages under c) above, CITBC and the
title insurance company issuing each policy referred to in the immediately
preceding paragraph (each, a "Title Insurance Company") shall have received maps
or plats of a perimeter or boundary of the site of each of the properties
covered by the mortgages or deeds of trust, dated a date satisfactory to CITBC
and the relevant Title Insurance Company prepared by an independent professional
licensed land surveyor satisfactory to CITBC and the relevant Title Insurance
Company, which maps or plats and the surveys on which they are based shall be
made in accordance with the Minimum Standard Detail Requirements for Land Title
Surveys jointly established and adopted by the American Land Title Association
and the American Congress on Surveying and Mapping; and, without limiting the
generality of the foregoing, there shall be surveyed and shown on the maps or
plats or surveys the following: (i) the locations on such sites of all the
buildings, structures and other improvements and the established building
setback lines insofar as the foregoing affect the perimeter or boundary of such
property; (ii) the lines of streets abutting the sites and width thereof; (iii)
all access and other easements appurtenant to the sites or necessary or
desirable to use the sites; (iv) all roadways, paths, driveways, easements,
encroachments and overhanging projections and similar encumbrances affecting the
sites, whether recorded, apparent from a physical inspection of the sites or
otherwise known to the surveyor; (v) any encroachments on any adjoining property
by the building structures and improvements on the sites; and (vi) if the site
is designated as being on a filed map, a

                                       14
<PAGE>   17
legend relating the survey to said map. Further, the survey shall x) be
certified to CITBC and the Title Insurance Company and y) contain a legend
reciting as to whether or not the site is located in a flood zone.

     g) GUARANTIES - The Guarantors shall have executed and delivered to CITBC
guaranties, in form acceptable to CITBC, guaranteeing all present and future
obligations of the Companies to CITBC.

     h) OPINIONS - Counsel for the Companies and the Guarantors shall have
delivered to CITBC opinions satisfactory to CITBC opining, inter alia, that,
subject to the i) filing, priority and remedies provisions of the Uniform
Commercial Code, ii) the provisions of the Bankruptcy Code, insolvency statutes
or other like laws, iii) the equity powers of a court of law and iv) such other
matters as may be agreed upon with CITBC: (A)(a) this Financing Agreement, (b)
the Guaranty of the Guarantors, and (c) all other loan documents of the
Companies and the Guarantors are x) valid, binding and enforceable according to
their terms, y) are duly authorized and z) do not violate any terms, provisions,
representations or covenants in the charter or by-laws of the Companies or the
Guarantors or, to the best knowledge of such counsel, of any loan agreement,
mortgage, deed of trust, note, security or pledge agreement or indenture to
which the Companies or the Guarantors is a signatory or by which the Companies
or the Guarantors or their assets are bound; and (B) the provisions of all
federal and state securities laws and the Hart-Scott-Rodino Anti-Trust
Improvements Act have been fully complied with or that compliance is not legally
required and the reasons supporting such non-compliance.

     i) PLEDGE AGREEMENT - Parent and such Companies as hold stock of other
Companies or of other subsidiaries shall a) execute and deliver to CITBC a
pledge and security agreement and stock powers pledging to CITBC as additional
collateral for the Obligations of the Companies all of the issued and
outstanding stock of the Companies and any and all subsidiaries of the Companies
and, b) deliver to CITBC the stock certificates evidencing such stock together
with duly executed stock powers with respect thereto.

     j) ADDITIONAL DOCUMENTS - The Companies shall have executed and delivered
to CITBC all loan documents necessary to consummate the lending arrangement
contemplated between the Companies and CITBC.

     k) LLCP DEBT AND INTERCREDITOR AGREEMENT - The Companies shall provide
CITBC with documentation evidencing the consummation of the transactions
relating to the LLCP Debt, upon terms and conditions and otherwise in form and
substance satisfactory to CITBC in its discretion (including provisions to the
effect that no principal payments shall be due thereon prior to the date three
years after the Closing Date other than principal payments with respect to the
LLCP Term Loan A Debt due upon the sale of the stock or assets of a subsidiary
of Simula after payment of Term Loan and any Revolving Loans advanced in
reliance upon any such assets or the assets of any such subsidiary), and
resulting in the advance to the Companies of $20,000,000, and LLCP shall have
executed and delivered to CITBC the Intercreditor Agreement in form and
substance satisfactory to CITBC in its discretion.

                                       15
<PAGE>   18
     l) DESJARDINS DEBT - The Indebtedness of $1,000,000 owing by Simula to
Stanley Desjardins shall be evidenced by instrument providing for payment on
terms acceptable to CITBC.

     m) ENVIRONMENTAL REPORT - CITBC shall have received, environmental audit
reports on i) all of the Companies' leasehold and fee interests, and ii) the
Companies' waste disposal practices. The reports must x) be satisfactory to
CITBC and y) not disclose or indicate any liability (real or potential) stemming
from the Companies' premises, operations, waste disposal practices or waste
disposal sites used by Companies'.

     n) BOARD RESOLUTION - CITBC shall have received a copy of the resolutions
of the Board of Directors of the Companies and the Guarantors (as the case may
be) authorizing the execution, delivery and performance of (i) this Financing
Agreement, (ii) the Guaranties and (iii) any related agreements, in each case
certified by the Secretary or Assistant Secretary of the Companies and the
Guarantors (as the case may be) as of the date hereof, together with a
certificate of the Secretary or Assistant Secretary of the Companies and the
Guarantors (as the case may be) as to the incumbency and signature of the
officers of the Companies and/or the Guarantors executing such agreements and
any certificate or other documents to be delivered by them pursuant hereto,
together with evidence of the incumbency of such Secretary or Assistant
Secretary.

     o) CORPORATE ORGANIZATION - CITBC shall have received (i) a copy of the
Certificate of Incorporation of the Companies and the Guarantors certified by
the Secretary of State of its incorporation, and (ii) a copy of the By-Laws (as
amended through the date hereof) of the Companies and the Guarantors certified
by the Secretary or Assistant Secretary thereof.

     p) OFFICER'S CERTIFICATE - CITBC shall have received an executed Officer's
Certificate of the Companies, satisfactory in form and substance to CITBC,
certifying that (i) the representations and warranties contained herein are true
and correct in all material respects on and as of the date hereof; (ii) the
Companies are in compliance with all of the terms and provisions set forth
herein; and (iii) no Default or Event of Default has occurred.

     q) ABSENCE OF DEFAULT - No Default, Event of Default or material adverse
change in the financial condition, business, prospects, profits, operations or
assets of the Companies shall have occurred.

     r) INTENTIONALLY OMITTED.

     s) DIVESTITURE - In connection with the Divestiture, the Company shall have
signed a definitive purchase agreement with Weber Aircraft, Inc. or an affiliate
thereof ("Weber") with respect to AII on terms and conditions satisfactory to
CITBC, (ii) Weber shall have paid a cash deposit of $2,000,000 with respect to
payment of the purchase price thereunder, (iii) Weber shall have made available
to AII $1,000,000 of such deposit to fund the working capital needs of AII, as a
loan on an unsecured basis, and (iii) Simula shall have provided to CITBC copies
of the Simula Hart-Scott-Rodino filing with respect to the Divestiture
sufficiently in advance of the Closing Date to allow CITBC to review such filing
prior to the Closing Date, which review shall be satisfactory to CITBC in its
sole discretion.

                                       16
<PAGE>   19
     t) LEGAL RESTRAINTS/LITIGATION - At the date of execution of this Financing
Agreement, there shall be no x) litigation, investigation or proceeding
(judicial or administrative) pending or threatened against the Companies or the
Guarantors or their assets, by any agency, division or department of any county,
city, state or federal government arising out of the Divestiture or this
Financing Agreement, y) injunction, writ or restraining order restraining or
prohibiting the Divestiture or the consummation of the financing arrangements
contemplated under this Financing Agreement or z) to the best knowledge of the
Companies, suit, action, investigation or proceeding (judicial or
administrative) pending or threatened against the Companies or the Guarantors or
their assets, which, in the opinion of CITBC, if adversely determined could have
a material adverse effect on the business, operation, assets, financial
condition or Collateral of the Companies and/or the Guarantors

     u) DISBURSEMENT AUTHORIZATION - The Companies shall have delivered to CITBC
all information necessary for CITBC to issue wire transfer instructions on
behalf of the Companies for the initial and subsequent loans and/or advances to
be made under this Agreement including, but not limited to, disbursement
authorizations in form acceptable to CITBC.

     v) EXAMINATION & VERIFICATION - CITBC shall have completed to the
satisfaction of CITBC an examination and verification of the Accounts,
Inventory, books and records of the Companies and the Guarantors which
examination shall indicate that, after giving effect to all loans, advances and
extensions of credit to be made at closing, the Companies shall have an opening
additional aggregate Availability of $2,000,000 (not including the $1,000,000 of
funding to be made available to AII by Weber) of which no more than $500,000 is
attributable to AII. It is understood that such requirement contemplates that
all debts, obligations and payables are current in accordance with the Companies
usual business practices.

     w) FINANCIAL PROJECTIONS - CITBC shall have received, reviewed and be
satisfied with a two years consolidated and consolidating financial projections,
including monthly detail and projected borrowing availability for the first
year, together with a balance sheet, profit and loss statement, and statement of
cash flows, accompanied by a management discussion and analysis as well as
detail of material assumptions, all in form an substance satisfactory to CITBC.

     x) COLLECTION ACCOUNTS - The Companies shall have established a system of
bank accounts with respect to the collection of Accounts and the deposit of
proceeds of Inventory as shall be acceptable to CITBC in all respects, which
system shall include a concentration account as of the Closing Date and lock-box
collection arrangements as soon as practicable thereafter.

     z) EXISTING REVOLVING CREDIT AGREEMENT - The Companies' existing credit
agreement with Bank One and Imperial Bank shall be (x) terminated, (y) all loans
and obligations of the Companies and/or the Guarantors thereunder shall be paid
or satisfied in full utilizing the proceeds of the initial Revolving Loans and
Term Loans to be made under this Financing Agreement and (z) all liens upon or
security interest in favor of Bank

                                       17
<PAGE>   20
One and Imperial Bank in connection therewith shall be terminated and/or
released upon such payment.

     aa) ASSIGNMENT OF CLAIMS ACT COMPLIANCE - The Companies shall comply with
the federal Assignment of Claims Act within 60 days following the Closing Date
as to such Accounts due from the U.S. government as CITBC shall have determined
appropriate in its discretion.

     bb) FOREIGN PATENT FILINGS - The Companies shall have provided CITBC within
60 days of the Closing with such patent security interest and lien filings as
CITBC may require for recordation in foreign countries with respect to patents
registered therein.

Upon the execution of this Financing Agreement and the initial disbursement of
loans hereunder, all of the above Conditions Precedent shall have been deemed
satisfied except as the Company and CITBC shall otherwise agree herein or in a
separate writing.

SECTION 3.  REVOLVING LOANS

     1. CITBC agrees, subject to the terms and conditions of this Financing
Agreement from time to time, and within x) the Availability and y) the Line of
Credit, but subject to CITBC's right to make "overadvances", to make loans and
advances to each of the Companies on a revolving basis (i.e. subject to the
limitations set forth herein, the Companies may borrow, repay and re-borrow
Revolving Loans). Such loans and advances to each Company shall be in amounts up
to the sum of: a) outstanding Eligible Accounts Receivable of such Company
multiplied by the Accounts Receivable Advance Percentage, plus b) the lesser of
(x) the Revenue in Excess of Billing Loan Cap and (y) outstanding Revenue in
Excess of Billing of such Company multiplied by the Revenue in Excess of Billing
Advance Percentage, plus c) the lesser of (x) the Inventory Loan Cap and (y) the
aggregate value of Eligible Inventory of such Company as determined at the lower
of cost or market multiplied by the Inventory Advance Percentage. Each request
shall constitute, unless otherwise disclosed in writing to CITBC, a
representation and warranty by the Companies that (i) after giving effect to the
requested advance, no Default or Event of Default has occurred and (ii) such
requested Revolving Loan is within the Line of Credit and Availability. All
requests for loans and advances must be received by an officer of CITBC no later
than 1:00 p.m., New York time, of the day on which such loans and advances are
required. Should CITBC for any reason honor requests for advances in excess of
the limitations set forth herein, such advances shall be considered
"overadvances" and shall be made in CITBC's sole discretion, subject to any
additional terms CITBC deems necessary.

     2. In furtherance of the continuing assignment and security interest in the
Companies' Accounts, the Companies will, upon the creation of Accounts, execute
and deliver to CITBC in such form and manner as CITBC may reasonably require,
solely for CITBC's convenience in maintaining records of collateral, such
confirmatory schedules of

                                       18
<PAGE>   21
Accounts as CITBC may reasonably request, and such other appropriate reports
designating, identifying and describing the Accounts as CITBC may reasonably
require. In addition, upon CITBC's request the Companies shall provide CITBC
with copies of agreements with, or purchase orders from, the Companies'
customers, and copies of invoices to customers, proof of shipment or delivery
and such other documentation and information relating to said Accounts and other
collateral as CITBC may reasonably require. Failure to provide CITBC with any of
the foregoing shall in no way affect, diminish, modify or otherwise limit the
security interests granted herein. The Companies hereby authorize CITBC to
regard the Companies' printed name or rubber stamp signature on assignment
schedules or invoices as the equivalent of a manual signature by one of the
Companies' authorized officers or agents.

     3. Each of the Companies hereby represents and warrants that: each of its
Trade Accounts Receivable is based on an actual and bona fide sale and delivery
of goods or rendition of services to customers, made by them in the ordinary
course of their business; the goods and Inventory being sold and the Trade
Accounts Receivable created are their exclusive property and are not and shall
not be subject to any lien, consignment arrangement, encumbrance, security
interest or financing statement whatsoever, other than the Permitted
Encumbrances; the invoices evidencing such Trade Accounts Receivable are in
their name; and their customers have accepted the goods or services, owe and are
obligated to pay the full amounts stated in the invoices according to their
terms, without dispute, offset, defense, counterclaim or contra, except for
disputes and other matters arising in the ordinary course of business with
respect to which they have complied with the notification requirements of
Paragraph 5 of this Section 3. Each of the Companies confirms to CITBC that any
and all taxes or fees relating to its business, its sales, the Accounts or goods
relating thereto, are its sole responsibility and that same will be paid by them
when due and that none of said taxes or fees represent a lien on or claim
against the Accounts. Each of the Companies also warrants and represents that it
is a duly and validly existing corporation and is qualified in all states where
the failure to so qualify would have a adverse effect on their business or their
ability to enforce collection of Accounts due from customers residing in that
state. Each of the Companies agrees to maintain such books and records regarding
Accounts as CITBC may reasonably require and agrees that such books and records
will reflect CITBC's interest in the Accounts. All of the books and records of
the Companies will be available to CITBC at normal business hours, including any
records handled or maintained for the Companies by any other company or entity.

     4. Until CITBC has advised the Companies to the contrary after the
occurrence of an Event of Default, the Companies may and will enforce, collect
and receive all amounts owing on the Accounts for CITBC's benefit and on CITBC's
behalf, but at the Companies' expense; such privilege shall terminate
automatically upon the institution by or against the Companies of any proceeding
under any bankruptcy or insolvency law or, at the election of CITBC, upon the
occurrence of any other Event of Default and until such Event of

                                       19
<PAGE>   22
Default is waived in writing by CITBC or cured to CITBC's satisfaction. Any
checks, cash, notes or other instruments or property received by the Companies
with respect to any Accounts shall be held by them in trust for CITBC, separate
from their own property and funds, and immediately turned over to CITBC with
proper assignments or endorsements by deposit to the special depository accounts
in CITBC's name designated by CITBC for such purposes (the "Depository
Accounts"). All amounts received by CITBC in payment of Accounts ("Collection")
will be credited to the Companies' appropriate Revolving Loan Account upon
CITBC's receipt of "good funds" at CITBC's bank account in New York, New York on
the Business Day of receipt if received no later than 1:00 p.m. or on the next
succeeding Business Day if received after 1:00 p.m. However the Companies'
Revolving Loan Accounts will be charged monthly with the cost of one (1)
additional Business Days on all such Collections at the interest rate (based
upon the Chase Bank Rate) applicable to Revolving Loans. No checks, drafts or
other instrument received by CITBC shall constitute final payment to CITBC
unless and until such instruments have actually been collected.

     5. Each of the Companies agrees to notify CITBC promptly of any matters
materially affecting the value, enforceability or collectability of any Account
and of all material customer disputes, offsets, defenses, counterclaims,
returns, rejections and all reclaimed or repossessed merchandise or goods. Each
of the Companies agrees to issue credit memoranda promptly (with duplicates to
CITBC upon request after the occurrence of an Event of Default) upon accepting
returns or granting allowances, and may continue to do so until CITBC has
notified the Companies that an Event of Default has occurred and that all future
credits or allowances are to be made only after CITBC's prior written approval.
Upon the occurrence of an Event of Default and until such time as such Event of
Default is waived in writing by CITBC or cured to CITBC's satisfaction and on
notice from CITBC, the Companies agree that all returned, reclaimed or
repossessed merchandise or goods shall be set aside by the Companies, marked
with CITBC's name and held by the Companies for CITBC's account as owner and
assignee.

     6. (a) Subject to the provisions of paragraph (b) below, CITBC shall
maintain a separate account on its books in each of the Companies' names (herein
each a "Revolving Loan Account" and collectively the "Revolving Loan Accounts")
in which the Companies will be charged with loans and advances made by CITBC to
them or for their account, and with any other Obligations, including any and all
costs, expenses and reasonable attorney's fees which CITBC may incur in
connection with the exercise by or for CITBC of any of the rights or powers
herein conferred upon CITBC, or in the prosecution or defense of any action or
proceeding to enforce or protect any rights of CITBC in connection with this
Financing Agreement or the Collateral assigned hereunder, or any Obligations
owing to CITBC by the Companies. Each of the Companies will be credited with all
amounts received by CITBC from them or from others for their account, including,
as above set forth, all amounts received by CITBC in payment of assigned
Accounts and such amounts will be applied to payment of the Obligations. In no
event shall prior recourse to any Accounts or other

                                       20
<PAGE>   23
security granted to or by the Companies be a prerequisite to CITBC's right to
demand payment of any Obligation. Further, it is understood that CITBC shall
have no obligation whatsoever to perform in any respect any of the Companies'
contracts or obligations relating to the Accounts.

     (b) In order to utilize the collective borrowing powers of Simula and its
subsidiaries other than AII (collectively the "Collective Borrowers") in the
most efficient and economical manner, and in order to facilitate the handling of
the accounts of the Collective Borrowers on CITBC's books, the Collective
Borrowers have requested, and CITBC has agreed to handle accounts of the
Collective Borrowers on CITBC's books on a combined basis, all in accordance
with the following provisions: (i) In lieu of maintaining separate accounts on
CITBC's books in the name of each of the Collective Borrowers, CITBC shall
maintain one account under the name: Simula, Inc. Intercompany Account (herein
the "Collective Account"). Confirmatory assignments of Accounts will continue to
be made to CITBC by each of the Collective Borrowers. Loans and advances made by
CITBC to any of the Collective Borrowers will be charged to the Collective
Account indicated above, along with any charges and expenses under this
Financing Agreement. The Collective Account will be credited, with all amounts
received by CITBC from any of the Collective Borrowers or from others for their
account including all amounts received by CITBC in payment of Accounts assigned
to CITBC value date thereof as provided in this Financing Agreement; (ii) Each
month CITBC will render to the Collective Borrowers one extract of the combined
Collective Account, which shall be deemed to be an account stated as to each of
the Collective Borrowers and which will be deemed correct and accepted by all of
the Collective Borrowers unless CITBC receives a written statement of exceptions
from them within thirty (30) days after such extract has been rendered by CITBC.
It is expressly understood and agreed by each of the Collective Borrowers that
CITBC shall have no obligation to account separately to any of the Collective
Borrowers; (iii) Requests for loans and advances may be made by Simula as agent
for the Collective Borrowers and CITBC is hereby authorized and directed to
accept, honor and rely on such instructions and requests, subject to the
limitation and provisions set forth in this Financing Agreement. It is expressly
understood and agreed by each of the Collective Borrowers that CITBC shall have
no responsibility to inquire into the correctness of the apportionment,
allocation, or disposition of (x) any loans and advances made to any of the
Collective Borrowers or (y) any of CITBC's expenses and charges relating
thereto. All loans and advances are made for the Collective Account; (iv) The
Collective Borrowers jointly and severally unconditionally guarantee to CITBC
the prompt payment in full of (A) all loans and advances made and to be made by
CITBC to any of them under this Financing Agreement, as well as (B) all other
Obligations of the Collective Borrowers to CITBC and hereby expressly confirm in
all respects the Guaranties executed by each of the Collective Borrowers in
CITBC's favor as more fully set forth therein; (v) All Accounts assigned to
CITBC by any of the Collective Borrowers and any other collateral security now
or hereafter given to CITBC by any of the Collective Borrowers (be it Accounts
or otherwise), shall secure all loans and advances made by CITBC to any

                                       21
<PAGE>   24
of the Collective Borrowers, and shall be deemed to be pledged to CITBC as
security for any and all other Obligations of the Collective Borrowers to CITBC
as set forth under this Financing Agreement, the Guaranties, or any other
agreements between CITBC and any of the Collective Borrowers; (vi) It is
understood that the handling of the accounts of the Collective Borrowers in a
combined fashion, as more fully set forth herein, is done solely as an
accommodation to the Collective Borrowers and at their request and at CITBC's
discretion, and that CITBC shall incur no liability to the Collective Borrowers
as a result hereof. To induce CITBC to do so, and in consideration thereof, each
of the Collective Borrowers hereby agrees to indemnify CITBC and hold CITBC
harmless against any and all liability, expense, loss or claim of damage or
injury, made against CITBC by any of the Collective Borrowers or by any third
party whosoever, arising from or incurred solely by reason of (1) the method of
handling the accounts of the Collective Borrowers as herein provided, (2) CITBC
relying on any instructions of any of the Collective Borrowers, or (3) any other
action taken by CITBC in accordance with this subparagraph (b) of Paragraph 6 of
Section 3 of this Financing Agreement; and (vii) The foregoing request was made
because the Collective Borrowers are engaged in an integrated operation that
requires financing on a basis permitting the availability of credit from time to
time to each of the Collective Borrowers as required for the continued
successful operation of each of the Collective Borrowers and the integrated
operation. Each of the Collective Borrowers expects to derive benefit, directly
or indirectly, from such availability since the successful operation of each of
the Collective Borrowers is dependent on the continued successful performance of
the functions of the integrated group. In addition, the Companies have informed
CITBC that: (a) Simula, to increase the efficiency and productivity of each of
the other Collective Borrowers, has centralized in itself a cash management
system which entails, in part, central disbursement and operating accounts in
which it provides the working capital needs of each of the other Collective
Borrowers and manages and timely pays the accounts payable of each other
Collective Borrowers; (b) the Collective Borrowers, taken together on a
consolidated basis, are further enhancing their collective operating
efficiencies by obtaining credit on the basis of their consolidated financial
condition; and (c) since all of the Collective Borrowers are now engaged in an
integrated operation that requires financing on an integrated basis and since
each Collective Borrower expects to benefit from the continued successful
performance of such integrated operations and in order to best utilize the
collective borrowing powers of each Collective Borrower in the most effective
and cost efficient manner and to avoid adverse effects on the operating
efficiencies of each Collective Borrower and the existing back-office practices
of the Collective Borrowers, each Collective Borrower has requested that all
Revolving Loans and advances be disbursed solely upon the request of Simula and
to bank accounts managed solely by it and that it will manage for the benefit of
each Collective Borrower the expenditure and usage of such funds.

     7. After the end of each month, CITBC shall promptly send the Companies
statements showing the accounting for the charges, loans, advances and other
transactions

                                       22
<PAGE>   25
occurring between CITBC and the Companies during that month. The monthly
statements shall be deemed correct and binding upon the Companies and shall
constitute an account stated between the Companies and CITBC unless CITBC
receives a written statement of the exceptions within thirty (30) days of the
date of the monthly statement.

     8. In the event that the sum of (i) the outstanding balance of Revolving
Loans and (ii) outstanding balance of Letters of Credit exceeds (x) as to any
Company the maximum amount thereof available to such Company under Section 3 and
5 hereof or (y) for all of the Companies the Line of Credit (herein the amount
of any such excess shall be referred to as the "Excess") such Excess shall be
due and payable to CITBC immediately upon CITBC's demand therefor.

SECTION 4.  TERM LOAN

     TERM LOAN

     1. The Companies hereby agree to execute and deliver to CITBC the Term Loan
Promissory Note, in the form of Exhibit A attached hereto, to evidence the Term
Loan to be extended by CITBC.

     2. Upon receipt of such Term Loan Promissory Note, CITBC hereby agrees to
extend to The Companies the Term Loan in the principal amount of $5,000,000.

     3. The principal amount of the Term Loan shall be repaid to CITBC by the
Companies, if not previously repaid pursuant to Paragraphs 5 or 6 below, by
equal monthly principal installments of $555,556 each, the first installment due
on the date which is 90 days after the Closing Date, and monthly on the same day
of the month thereafter, followed by a payment due on the final maturity date of
the remaining principal balance together with accrued and unpaid interest, due
and payable on August 31, 2000.

     4. In the event this Financing Agreement or the Line of Credit is
terminated by either CITBC or the Companies for any reason whatsoever, the Term
Loan shall become due and payable on the effective date of such termination
notwithstanding any provision to the contrary in the Promissory Note or this
Financing Agreement.

     5. The Companies may prepay at any time, at its option, in whole or in
part, without penalty or premium, the Term Loan, provided that on each such
prepayment, the Companies shall pay the accrued interest on the principal so
prepaid to the date of such prepayment.

                                       23
<PAGE>   26
     6. The Companies shall prepay the Term Loan in full upon the earlier of the
consummation of the Divestiture or the sale of all or substantially all of the
assets of a Company, in either case from the proceeds thereof.

     7. Each prepayment shall be applied to the then last maturing installments
of principal of the Term Loan.

     8. Each of the Companies hereby authorizes CITBC to charge its Revolving
Loan Account with the amount of all amounts due under this Section 4 as such
amounts become due. Each of the Companies confirms that any charges which CITBC
may so make to its account as herein provided will be made as an accommodation
to the Companies and solely at CITBC's discretion.

SECTION 5. LETTERS OF CREDIT

     In order to assist the Companies in establishing or opening Letters of
Credit with an Issuing Bank to cover the purchase of inventory, equipment or
otherwise, the Companies have requested CITBC to join in the applications for
such Letters of Credit, and/or guarantee payment or performance of such Letters
of Credit and any drafts or acceptances thereunder through the issuance of the
Letters of Credit Guaranty, thereby lending CITBC's credit to the Companies and
CITBC has agreed to do so. These arrangements shall be handled by CITBC subject
to the terms and conditions set forth below.

     1. Within the Line of Credit and Availability, CITBC shall assist the
Companies in obtaining Letter(s) of Credit in an amount not to exceed the Letter
of Credit Sub-Line in the aggregate outstanding at any one time. CITBC's
assistance for amounts in excess of the limitation set forth herein shall at all
times and in all respects be in CITBC's sole discretion. It is understood that
the form and purpose of each Letter of Credit must be acceptable to CITBC in its
reasonable business judgment. Any and all outstanding Letters of Credit shall be
treated as a Revolving Loan for Availability purpose. Notwithstanding anything
herein to the contrary, upon the occurrence of a Default and/or Event of
Default, CITBC's assistance in connection with the Letter of Credit Guaranty
shall be in CITBC's sole discretion unless such Default and/or Event of Default
is cured to CITBC's satisfaction or waived by CITBC in writing.

     2. CITBC shall have the right, without notice to the Companies, to charge
the Companies' Revolving Loan Accounts on CITBC's books with the amount of any
and all indebtedness, liability or obligation of any kind incurred by CITBC
under the Letters of Credit Guaranty at the earlier of a) payment by CITBC under
the Letters of Credit Guaranty, or b) the occurrence of an Event of Default. Any
amount charged to Companies' Revolving Loan Accounts shall be deemed a Revolving
Loan hereunder and shall incur interest at the rate provided in Section 8,
Paragraph 1 of this Financing Agreement.

                                       24
<PAGE>   27
     3. Each of the Companies jointly and severally unconditionally indemnifies
CITBC and holds CITBC harmless from any and all loss, claim or liability
incurred by CITBC arising from any transactions or occurrences relating to
Letters of Credit established or opened for the Companies' account, the
collateral relating thereto and any drafts or acceptances thereunder, and all
Obligations thereunder, including any such loss or claim due to any action taken
by any Issuing Bank, other than for any such loss, claim or liability arising
out of the gross negligence or willful misconduct by CITBC under the Letters of
Credit Guaranty. Each of the Companies further agrees to jointly and severally
hold CITBC harmless from any errors or omission, negligence or misconduct by the
Issuing Bank.. The Companies' unconditional obligation to CITBC hereunder shall
not be modified or diminished for any reason or in any manner whatsoever, other
than as a result of CITBC's gross negligence or willful misconduct. Each of the
Companies agrees that any charges incurred by CITBC for their account by the
Issuing Bank shall be conclusive on CITBC and may be charged to their account.

     4. CITBC shall not be responsible for: the existence, character, quality,
quantity, condition, packing, value or delivery of the goods purporting to be
represented by any documents; any difference or variation in the character,
quality, quantity, condition, packing, value or delivery of the goods from that
expressed in the documents; the validity, sufficiency or genuineness of any
documents or of any endorsements thereon, even if such documents should in fact
prove to be in any or all respects invalid, insufficient, fraudulent or forged;
the time, place, manner or order in which shipment is made; partial or
incomplete shipment, or failure or omission to ship any or all of the goods
referred to in the Letters of Credit or documents; any deviation from
instructions; delay, default, or fraud by the shipper and/or anyone else in
connection with the Collateral or the shipping thereof; or any breach of
contract between the shipper or vendors and the Companies. Furthermore, without
being limited by the foregoing, CITBC shall not be responsible for any act or
omission with respect to or in connection with any Collateral.

     5. Each of the Companies agrees that any action taken by CITBC, if taken in
good faith, or any action taken by any Issuing Bank, under or in connection with
the Letters of Credit, the guarantees, the drafts or acceptances, or the
Collateral, shall be binding on the them and shall not put CITBC in any
resulting liability to the Companies. In furtherance thereof, CITBC shall have
the full right and authority to clear and resolve any questions of
non-compliance of documents; to give any instructions as to acceptance or
rejection of any documents or goods; to execute any and all steamship or airways
guaranties (and applications therefore), indemnities or delivery orders; to
grant any extensions of the maturity of, time of payment for, or time of
presentation of, any drafts, acceptances, or documents; and to agree to any
amendments, renewals, extensions, modifications, changes or cancellations of any
of the terms or conditions of any of the applications, Letters of Credit, drafts
or acceptances; all in CITBC's sole name, and the Issuing Bank

                                       25
<PAGE>   28
shall be entitled to comply with and honor any and all such documents or
instruments executed by or received solely from CITBC, all without any notice to
or any consent from the Companies.

     6. Without CITBC's express consent and endorsement in writing, each of the
Companies agrees: a) not to execute any and all applications for steamship or
airway guaranties, indemnities or delivery orders; to grant any extensions of
the maturity of, time of payment for, or time of presentation of, any drafts,
acceptances or documents; or to agree to any amendments, renewals, extensions,
modifications, changes or cancellations of any of the terms or conditions of any
of the applications, Letters of Credit, drafts or acceptances; and b) after the
occurrence of an Event of Default which is not cured within any applicable grace
period, if any, or waived by CITBC, not to i) clear and resolve any questions of
non-compliance of documents, or ii) give any instructions as to acceptances or
rejection of any documents or goods.

     7. Each of the Companies agrees that any necessary import, export or other
licenses or certificates for the import or handling of the Collateral will have
been promptly procured; all foreign and domestic governmental laws and
regulations in regard to the shipment and importation of the Collateral, or the
financing thereof will have been promptly and full complied with; and any
certificates in that regard that CITBC may at any time request will be promptly
furnished. In this connection, each of the Companies warrants and represents
that all shipments made under any such Letters of Credit are in accordance with
the laws and regulations of the countries in which the shipments originate and
terminate, and are not prohibited by any such laws and regulations. The
Companies assume all risk, liability and responsibility for, and agrees to pay
and discharge, all present and future local, state, federal or foreign taxes,
duties, or levies. Any embargo, restriction, laws, customs or regulations of any
country, state, city, or other political subdivision, where the Collateral is or
may be located, or wherein payments are to be made, or wherein drafts may be
drawn, negotiated, accepted, or paid, shall be solely the Companies' risk,
liability and responsibility.

     8. Upon any payments made to the Issuing Bank under the Letter of Credit
Guaranty, CITBC shall acquire by subrogation, any rights, remedies, duties or
obligations granted or undertaken by the Companies to the Issuing Bank in any
application for Letters of Credit, any standing agreement relating to Letters of
Credit or otherwise, all of which shall be deemed to have been granted to CITBC
and apply in all respects to CITBC and shall be in addition to any rights,
remedies, duties or obligations contained herein.

SECTION 6. COLLATERAL

     1. As security for the prompt payment in full of all loans and advances
made and to be made to the Companies from time to time by CITBC pursuant hereto,
as well as to

                                       26
<PAGE>   29
secure the payment in full of the other Obligations, each of the Companies
hereby pledges and grants to CITBC a continuing general lien upon and security
interest in all of its:

     (a) present and hereafter acquired Inventory;

     (b) present and hereafter acquired Equipment;

     (c) present and future Accounts;

     (d) present and future Documents of Title;

     (e) present and future General Intangibles;

     (f) Real Estate; and

     (g) present and future Other Collateral.

     2. The security interests granted hereunder shall extend and attach to:

     (a) All Collateral which is presently in existence and which is owned by
the Companies or in which the Companies have any interest, whether held by them
or others for their account, and, if any Collateral is Equipment, whether the
Companies' interest in such Equipment is as owner or lessee or conditional
vendee;

     (b) All Equipment whether the same constitutes personal property or
fixtures, including, but without limiting the generality of the foregoing, all
dies, jigs, tools, benches, tables, accretions, component parts thereof and
additions thereto, as well as all accessories, motors, engines and auxiliary
parts used in connection with or attached to the Equipment; and

     (c) All Inventory and any portion thereof which may be returned, rejected,
reclaimed or repossessed by either CITBC or the Companies from the Companies'
customers, as well as to all supplies, goods, incidentals, packaging materials,
labels and any other items which contribute to the finished goods or products
manufactured or processed by the Companies, or to the sale, promotion or
shipment thereof.

     3. The Companies agree to safeguard, protect and hold all Inventory for
CITBC's account and make no disposition thereof except in the regular course of
the business of the Companies as herein provided. Until CITBC has given the
Companies notice to the contrary, as provided for below, any Inventory may be
sold and shipped by the Companies to their customers in the ordinary course of
their business, on open account and on terms currently being extended by them to
their customers, provided that all proceeds of all sales

                                       27
<PAGE>   30
(including cash, accounts receivable, checks, notes, instruments for the payment
of money and similar proceeds) are forthwith transferred, endorsed, and turned
over and delivered to CITBC in accordance with Section 3, Paragraph 4 of this
Financing Agreement. CITBC shall have the right to withdraw this permission at
any time upon the occurrence of an Event of Default and until such time as such
Event of Default is waived in writing by CITBC or cured to CITBC's satisfaction,
in which event no further disposition shall be made of the Inventory by the
Companies without CITBC's prior written approval. Cash sales or sales of
inventory in which a lien upon, or security interest in, Inventory is retained
by the Companies shall be made by the Companies only with the approval of CITBC,
and the proceeds of such sales or sales of Inventory for cash shall not be
commingled with the Companies' other property, but shall be segregated, held by
the Companies in trust for CITBC as CITBC's exclusive property, and shall be
delivered immediately by the Companies to CITBC in the identical form received
by the Companies by deposit to the Depository Accounts. Upon the sale, exchange,
or other disposition of Inventory, as herein provided, the security interest in
the Companies' Inventory provided for herein shall, without break in continuity
and without further formality or act, continue in, and attach to, all proceeds,
including any instruments for the payment of money, accounts receivable,
contract rights, documents of title, shipping documents, chattel paper and all
other cash and non-cash proceeds of such sale, exchange or disposition. As to
any such sale, exchange or other disposition, CITBC shall have all of the rights
of an unpaid seller, including stoppage in transit, replevin, rescission and
reclamation.

     4. Each of the Companies agrees at its own cost and expense to keep the
Equipment in as good and substantial repair and condition as the same is now or
at the time the lien and security interest granted herein shall attach thereto,
reasonable wear and tear excepted, making any and all repairs and replacements
when and where necessary. Each of the Companies also agrees to safeguard,
protect and hold all Equipment for CITBC's account and make no disposition
thereof unless they first obtain the prior written approval of CITBC. Any sale,
exchange or other disposition of any Equipment shall only be made by the
Companies with the prior written approval of CITBC, and the proceeds of any such
sales shall not be commingled with the Companies' other property, but shall be
segregated, held by the Companies in trust for CITBC as CITBC's exclusive
property, and shall be delivered immediately by the Companies to CITBC in the
identical form received by the Companies by deposit to the Depository Accounts.
Upon the sale, exchange, or other disposition of the Equipment, as herein
provided, the security interest provided for herein shall, without break in
continuity and without further formality or act, continue in, and attach to, all
proceeds, including any instruments for the payment of money, accounts
receivable, contract rights, documents of title, shipping documents, chattel
paper and all other cash and non-cash proceeds of such sales, exchange or
disposition. As to any such sale, exchange or other disposition, CITBC shall
have all of the rights of an unpaid seller, including stoppage in transit,
replevin, rescission and reclamation. Notwithstanding anything hereinabove
contained to the contrary, the Companies may sell, exchange or

                                       28
<PAGE>   31
otherwise dispose of obsolete Equipment or Equipment no longer needed in the
Companies' operations, provided, however, that (a) the greater of the then book
value or fair market value of the Equipment so disposed of does not exceed
$250,000 in the aggregate for the Companies in any Fiscal Year and (b) the
proceeds of such sales or dispositions are delivered to CITBC in accordance with
the foregoing provisions of this paragraph, except that the Companies may retain
and use such proceeds to purchase forthwith replacement Equipment which the
Companies determine in their reasonable business judgment to have a collateral
value at least equal to the Equipment so disposed of or sold, provided, however,
that the aforesaid right shall automatically cease upon the occurrence of an
Event of Default which is not cured within any applicable grace period or
waived.

     5. The rights and security interests granted to CITBC hereunder are to
continue in full force and effect, notwithstanding the termination of this
Financing Agreement or the fact that any account maintained in the Companies'
name on the books of CITBC may from time to time be temporarily in a credit
position, until the final payment in full to CITBC of all Obligations and the
termination of this Financing Agreement. Any delay, or omission by CITBC to
exercise any right hereunder, shall not be deemed a waiver thereof, or be deemed
a waiver of any other right, unless such waiver be in writing and signed by
CITBC. A waiver on any one occasion shall not be construed as a bar to or waiver
of any right or remedy on any future occasion.

     6. To the extent that the Obligations are now or hereafter secured by any
assets or property other than the Collateral or by the guarantee, endorsement,
assets or property of any other person, then CITBC shall have the right in its
sole discretion to determine which rights, security, liens, security interests
or remedies CITBC shall at any time pursue, foreclose upon, relinquish,
subordinate, modify or take any other action with respect to, without in any way
modifying or affecting any of them, or any of CITBC's rights hereunder.

     7. Any reserves or balances to the credit of the Companies and any other
property or assets of the Companies in the possession of CITBC may be held by
CITBC as security for any Obligations and applied in whole or partial
satisfaction of such Obligations when due. The liens and security interests
granted herein and any other lien or security interest CITBC may have in any
other assets of the Companies, shall secure payment and performance of all now
existing and future Obligations. CITBC may in its discretion charge any or all
of the Obligations to the Revolving Loan Accounts of the Companies when due.

     8. This Financing Agreement and the obligation of the Companies to perform
all of its covenants and obligations hereunder are further secured by
mortgage(s), deed(s) of trust or assignment(s) on the Real Estate.

                                       29
<PAGE>   32
     9. The Companies shall give to CITBC from time to time such mortgage(s),
deed(s) of trust or assignment(s) on the Real Estate or real estate acquired
after the date hereof as CITBC shall require to obtain a valid first lien
thereon subject only to those exceptions of title as set forth in future title
insurance policies that are satisfactory to CITBC.

     10. The Companies shall give to CITBC, and/or shall cause the appropriate
party to give to CITBC, from time to time such pledge or security agreements
with respect to General Intangibles and capital stock of the Companies and any
and all of their subsidiaries as CITBC shall require to obtain valid first liens
thereon.

SECTION 7. REPRESENTATIONS, WARRANTIES AND COVENANTS

     1. Each of the Companies hereby warrants and represents and/or covenants
that: i) the fair value of its assets exceeds the book value of its liabilities;
ii) it is generally able to pay its debts as they become due and payable; and
iii) it does not have unreasonably small capital to carry on its business as it
is currently conducted absent extraordinary and unforeseen circumstances. Each
of the Companies further warrants and represents that Schedule 2 hereto
correctly and completely sets forth its chief executive office and all of its
Collateral locations; and except for the Permitted Encumbrances, the security
interests granted herein constitute and shall at all times constitute the first
and only liens on the Collateral; that, except for the Permitted Encumbrances,
the Companies are or will be at the time additional Collateral is acquired by
them, the absolute owner of the Collateral with full right to pledge, sell,
consign, transfer and create a security interest therein, free and clear of any
and all claims or liens in favor of others; that the Companies will at their
expense forever warrant and, at CITBC's request, defend the same from any and
all claims and demands of any other person other than the Permitted
Encumbrances; that the Companies will not grant, create or permit to exist, any
lien upon or security interest in the Collateral, or any proceeds thereof, in
favor of any other person other than the holders of the Permitted Encumbrances;
and that the Equipment does not comprise a part of its Inventory and that the
Equipment is and will only be used by the Companies in their business and will
not be held for sale or lease, or removed from its premises, or otherwise
disposed of by the Companies without the prior written approval of CITBC except
as otherwise permitted in Section 6, Paragraph 4 of this Financing Agreement.

     2. The Companies agree to maintain books and records pertaining to the
Collateral in such detail, form and scope as CITBC shall reasonably require. The
Companies agree that, upon reasonable advance notice (unless CITBC shall deem
such notice unadvisable in its reasonable commercial judgment), CITBC or its
agents may enter upon the Companies' premises at any time during normal business
hours, and from time to time, for the purpose of inspecting the Collateral, and
any and all records pertaining thereto. The Companies agree to afford CITBC
prior written notice of any change in the location of any Collateral, other than
to locations, that as of the date hereof, are known to CITBC and at which CITBC
has filed financing statements and otherwise fully perfected its liens thereon.

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<PAGE>   33
Each of the Companies is also to advise CITBC promptly, in sufficient detail, of
any material adverse change relating to the type, quantity or quality of the
Collateral or on the security interests granted to CITBC therein.

     3. Each of the Companies agrees to: execute and deliver to CITBC, from time
to time, solely for CITBC's convenience in maintaining a record of the
Collateral, such written statements, and schedules as CITBC may reasonably
require, designating, identifying or describing the Collateral pledged to CITBC
hereunder. The Companies' failure, however, to promptly give CITBC such
statements, or schedules shall not affect, diminish, modify or otherwise limit
CITBC's security interests in the Collateral.

     4. The Companies agree to comply with the requirements of all state and
federal laws in order to grant to CITBC valid and perfected first security
interests in the Collateral, subject only to the Permitted Encumbrances. CITBC
is hereby authorized by the Companies to file any financing statements covering
the Collateral whether or not the Companies' signature appears thereon. The
Companies agree to do whatever CITBC may reasonably request, from time to time,
by way of: filing notices of liens, financing statements, amendments, renewals
and continuations thereof; cooperating with CITBC's custodians; keeping stock
records; transferring proceeds of Collateral to CITBC's possession; and
performing such further acts as CITBC may reasonably require in order to effect
the purposes of this Financing Agreement. In furtherance of the foregoing, in
the event that CITBC determines that any additional subsidiaries of any of the
Companies are to parties hereto, the Companies shall cause such subsidiary to
become a party hereto in accordance with the general intent of the this
Paragraph 4.

     5.(a) The Companies agree to maintain insurance on the Real Estate,
Equipment and Inventory, and with respect to products liability, under such
policies of insurance, with such insurance companies, in such reasonable amounts
and covering such insurable risks as are at all times reasonably satisfactory to
CITBC, and, in any event, with respect to products liability insurance, with
coverage at least equal to that maintained as of the Closing Date. All policies
covering the Real Estate, Equipment and Inventory are, subject to the rights of
any holders of Permitted Encumbrances holding claims senior to CITBC, to be made
payable to CITBC, in case of loss, under a standard non-contributory
"mortgagee", "lender" or "secured party" clause and are to contain such other
provisions as CITBC may require to fully protect CITBC's interest in the Real
Estate, Inventory and Equipment and to any payments to be made under such
policies. All original policies or true copies thereof are to be delivered to
CITBC, premium prepaid, with the loss payable endorsement in CITBC's favor, and
shall provide for not less than thirty (30) days prior written notice to CITBC
of the exercise of any right of cancellation. At the Companies' request, or if
the Companies fail to maintain such insurance, CITBC may arrange for such
insurance, but at the Companies' expense and without any responsibility on
CITBC's part for: obtaining the insurance, the solvency of the insurance
companies, the adequacy of

                                       31
<PAGE>   34
the coverage, or the collection of claims. Upon the occurrence of an Event of
Default which is not waived or cured to CITBC's satisfaction, CITBC shall,
subject to the rights of any holders of Permitted Encumbrances holding claims
senior to CITBC, have the sole right, in the name of CITBC or the Companies, to
file claims under any insurance policies, to receive, receipt and give
acquittance for any payments that may be payable thereunder, and to execute any
and all endorsements, receipts, releases, assignments, reassignments or other
documents that may be necessary to effect the collection, compromise or
settlement of any claims under any such insurance policies.

     (b)(i) In the event of any loss or damage by fire or other casualty,
insurance proceeds relating to Inventory of any Company shall first reduce such
Company's Revolving Loans and then the Term Loan;

     ii) In the event any part of a Company's Real Estate or Equipment is
damaged by fire or other casualty and the insurance proceeds for such damage or
other casualty (the "Proceeds") is less than or equal to $100,000.00, CITBC
shall promptly apply such Proceeds to reduce such Company's outstanding balance
in its Revolving Loan Account.

     iii) As long as an Event of Default has not occurred (which is not cured to
CITBC's satisfaction), the Companies have sufficient business interruption
insurance to replace the lost profits of any of the Companies' facilities, and
the Proceeds are in excess of $100,000.00, such Company may elect (by delivering
written notice to CITBC) to replace, repair or restore such Real Estate or
Equipment to substantially the equivalent condition prior to such fire or other
casualty as set forth herein. If the Companies do not, or cannot, elect to use
the Proceeds as set forth above, CITBC may, subject to the rights of any holders
of Permitted Encumbrances holding claims senior to CITBC, apply the Proceeds to
the payment of the Obligations in such manner and in such order as CITBC may
reasonably elect.

     iv) If a Company elects to use the Proceeds for the repair, replacement or
restoration of any Real Estate and/or Equipment, and there is then no Event of
Default, i) proceeds of insurance on Real Estate and/or Equipment in excess of
$100,000.00 will be applied to the reduction of the Revolving Loans of such
Company and ii) CITBC may set up a reserve against Availability for an amount
equal to the proceeds referred to in clause i) hereof. The reserve will be
reduced dollar-for-dollar upon receipt of non-cancelable executed purchase
orders, delivery receipts or contracts for the replacement, repair or
restoration of Real Estate and/or Equipment and disbursements in connection
therewith. Prior to the commencement of any restoration, repair or replacement
of Real Estate, the Companies shall provide CITBC with a restoration plan and a
total budget certified by an independent third party experienced in construction
costing. If there are insufficient Proceeds to cover the cost of restoration as
so determined, the Companies shall be responsible for the amount of any such
insufficiency, prior to the commencement of

                                       32
<PAGE>   35
restoration and shall demonstrate evidence of such before the reserve will be
reduced. Completion of restoration shall be evidenced by a final, unqualified
certification of the design architect employed, if any; an unconditional
Certificate of Occupancy, if applicable; such other certification as may be
required by law; or if none of the above is applicable, a written good faith
determination of completion by the Companies (herein collectively the
"Completion"). Upon Completion, any remaining reserve as established hereunder
will be automatically released.

     (v) The Companies agree to pay any reasonable costs, fees or expenses which
CITBC may reasonably incur in connection herewith.

     6. Each of the Companies agrees to pay, when due, all taxes, assessments,
claims and other charges (herein "taxes") lawfully levied or assessed upon the
Companies or the Collateral and if such taxes remain unpaid after the date fixed
for the payment thereof unless such taxes are being diligently contested in good
faith by the Companies by appropriate proceedings or if any lien shall be
claimed thereunder x) for taxes due the United States of America or y) which in
CITBC's opinion might create a valid obligation having priority over the rights
granted to CITBC herein, CITBC may, on the Companies' behalf, pay such taxes,
and the amount thereof shall be an Obligation secured hereby and due to CITBC on
demand.

     7. Each of the Companies: (a) agrees to comply with all acts, rules,
regulations and orders of any legislative, administrative or judicial body or
official, which the failure to comply with would have a material and adverse
impact on the Collateral, or any material part thereof, or on the operation of
the Companies' business; provided that the Companies may contest any acts,
rules, regulations, orders and directions of such bodies or officials in any
reasonable manner which will not, in CITBC's reasonable opinion, materially and
adversely effect CITBC's rights or priority in the Collateral; (b) agrees to
comply with all environmental statutes, acts, rules, regulations or orders as
presently existing or as adopted or amended in the future, applicable to the
ownership and/or use of its real property and operation of its business, which
the failure to comply with would have a material and adverse impact on the
Collateral, or any material part thereof, or on the operation of the business of
the Companies. Each of the Companies hereby jointly and severally indemnifies
CITBC and agrees to defend and hold CITBC harmless from and against any and all
loss, damage, claim, liability, injury or expense which CITBC may sustain or
incur (other than as a result of actions of CITBC) in connection with: any claim
or expense asserted against CITBC as a result of any environmental pollution,
hazardous material or environmental clean-up of the Companies' real property; or
any claim or expense which results from the Companies' operations (including,
but not limited to, the Companies' off-site disposal practices) and the
Companies further agree that this indemnification shall survive termination of
this Financing Agreement as well as the payment of all Obligations or amounts
payable hereunder; and (c) shall not be deemed to

                                       33
<PAGE>   36
have breached any provision of this Paragraph 7 if (i) the failure to comply
with the requirements of this Paragraph 7 resulted from good faith error or
innocent omission, (ii) the Companies promptly commence and diligently pursues a
cure of such breach and (iii) such failure is cured within fifteen (15) business
days following the Companies' receipt of notice of such failure.

     8. Until termination of the Financing Agreement and payment and
satisfaction of all Obligations due hereunder, the Companies agree that, unless
CITBC shall have otherwise consented in writing, the Companies will furnish to
CITBC, within ninety (90) days after the end of each Fiscal Year of the
Companies, an audited Consolidated Balance Sheet and a Consolidating Balance
Sheet which reconciles to the Consolidated Balance Sheet, as at the close of
such year, and statements of profit and loss, cash flow and reconciliation of
surplus of Parent, the Companies and all subsidiaries of each for such year,
audited (as to the consolidated financial statements) by independent public
accountants selected by the Companies and satisfactory to CITBC; within sixty
(60) days after the end of each Fiscal Quarter a Consolidated Balance Sheet and
Consolidating Balance Sheet as at the end of such period and statements of
profit and loss, cash flow and surplus of Parent, the Companies and all
subsidiaries of each, certified by an authorized financial or accounting officer
of the Companies or of Parent; and within thirty (30) days after the end of each
month a Consolidated Balance Sheet as at the end of such period and statements
of profit and loss, cash flow and surplus of the Companies and all subsidiaries
for such period, certified by an authorized financial or accounting officer of
the Companies or of Parent; and from time to time, such further information
regarding the business affairs and financial condition of the Parent, the
Companies and/or any subsidiaries thereof as CITBC may reasonably request,
including without limitation (a) the accountant's management practice letter and
(b) annual cash flow projections in form satisfactory to CITBC. Each financial
statement which the Companies are required to submit hereunder must be
accompanied by an officer's certificate, signed by the President, Vice
President, Controller, or Treasurer of the Companies or of Parent, pursuant to
which any one such officer must certify that: (i) the financial statement(s)
fairly and accurately represent(s) the Companies' financial condition at the end
of the particular accounting period, as well as the Companies' operating results
during such accounting period, subject to year-end audit adjustments; (ii)
during the particular accounting period: (x) there has been no Default or Event
of Default under this Financing Agreement, provided, however, that if any such
officer has knowledge that any such Default or Event of Default, has occurred
during such period, the existence of and a detailed description of same shall be
set forth in such officer's certificate; and (y) the Companies have not received
any notice of cancellation with respect to its property insurance policies; and
(iii) the exhibits attached to such financial statement(s) constitute detailed
calculations showing compliance with all financial covenants contained in this
Financing Agreement. In addition, commencing September 30, 2000, and on each
September 30 thereafter during the term hereof, the Companies shall provide to
CITBC updated annual financial projections for the next Fiscal Year.

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<PAGE>   37
     9. Until termination of the Financing Agreement and payment and
satisfaction of all Obligations due hereunder, the Companies agree that, without
the prior written consent of CITBC, except as otherwise herein provided, the
Companies will not:

         A.       Mortgage, assign, pledge, transfer or otherwise permit any
                  lien, charge, security interest, encumbrance or judgment,
                  (whether as a result of a purchase money or title retention
                  transaction, or other security interest, or otherwise) to
                  exist on any of its assets or goods, whether real, personal or
                  mixed, whether now owned or hereafter acquired, except for the
                  Permitted Encumbrances;

          B.   Incur or create any Indebtedness other than the Permitted
               Indebtedness;

          C.   Borrow any money on the security of the Collateral from sources
               other than CITBC;

          D.   Sell, lease, assign, transfer or otherwise dispose of i)
               Collateral, except for the Divestiture and except as otherwise
               specifically permitted by this Financing Agreement, or ii) either
               all or substantially all of their assets, which do not constitute
               Collateral;

          E.   Merge, consolidate or otherwise alter or modify its corporate
               name, principal place of business, structure, status or
               existence, or enter into or engage in any operation or activity
               materially different from that presently being conducted by the
               Companies, except that the Companies may (i) merge with each
               other and/or (ii) change their corporate name or address;
               provided that in any instance under clauses (i) and (ii) (x) the
               Companies shall give CITBC thirty (30) days prior written notice
               thereof and (y) the Companies shall execute and deliver prior to
               or simultaneously with any such action any and all documents and
               agreements requested by CITBC (including, without limitation, any
               and all U.C.C. financing statements) to confirm (A) the
               assumption by the surviving corporation of all Obligations to
               CITBC of the other Company so merged, (B) the continuation and
               preservation of all security interests and liens granted to CITBC
               hereunder and (C) that such surviving corporation adopts,
               ratifies and confirms its agreement to be bound by and comply
               with this Financing Agreement;

          F.   Assume, guarantee, endorse, or otherwise become liable upon the
               obligations of any person, firm, entity or corporation, except by
               the endorsement of negotiable instruments for deposit or
               collection or similar transactions in the ordinary course of
               business;

          G.   Make any advance or loan to, or any investment in, any firm,
               entity, person or corporation, except for: (i) loans and advances
               by and among the Companies; and (ii) after repayment in full of
               the Term Loan and any Revolving Loans to AII, amounts in an
               aggregate not to exceed $500,000 per

                                       35
<PAGE>   38
               Fiscal Year if, after giving effect thereto, the Companies have
               aggregate Availability of at least $2,000,000.

     10. Until termination of the Financing Agreement and payment and
satisfaction in full of all Obligations hereunder, the Companies shall:

         (a) not have net income (determined in accordance with GAAP) for any
         Fiscal Quarter of less than zero.

         (b) maintain at the end of each Fiscal Quarter a consolidated Fixed
         Charge Coverage Ratio of the Companies of not less than the following:

         Fiscal Quarter ended 3/31/00 - 0.90:1.00
         Fiscal Quarter ended 6/30/00 - 1.15:1.00
         Fiscal Quarter ended 9/30/00 - 1.10:1.00
         Fiscal Quarter ended 12/31/00 - 1.20:1.00
         Thereafter, calculated on a rolling four quarter basis - 1.25:1.00

         (c) maintain, on a cumulative basis, at the end of each Fiscal Quarter
         EBITDA of at least the following amounts:

         Fiscal Quarter ended 3/31/00  - $3,000,000
         Fiscal Quarter ended 6/30/00  - $6,000,000
         Fiscal Quarter ended 9/30/00  - $9,000,000
         Fiscal Quarter ended 12/31/00 - $12,000,000
         Thereafter, calculated on a rolling four quarter basis - $12,000,000

         (d) maintain at the end of each month EBITDA of at least $500,000.

         (e) in the event that the stock or all or substantially all of assets
         of AIC shall have been sold, together with CITBC, reset the financial
         covenant amounts in Sub-Paragraph (c) above to take into account the
         effects of such sale, which reset shall include both a change in such
         amounts prospectively as to the projected financial performance of AIC
         and retrospectively to the beginning of the then current Fiscal Year to
         the extent of the then Fiscal Year-to-date actual financial performance
         of AIC.

     11. Without the prior written consent of CITBC, the Companies will not: a)
enter into any Operating Lease (other than with respect to real property) if
after giving effect thereto the aggregate obligations with respect to Operating
Leases of the Companies during any Fiscal Year would exceed $200,000 or b)
contract for, purchase, make expenditures for, lease pursuant to a Capital Lease
or otherwise incur obligations with

                                       36
<PAGE>   39
respect to Capital Expenditures (whether subject to a security interest or
otherwise) during any period below in the aggregate amount for the Companies in
excess of the amount set forth for such period:

         a)       $3,000,000 for the Fiscal Year ending December 31, 2000;
         b)       $3,500,000 for the Fiscal Year ending December 31, 2001;
         c)       $4,000,000 for the Fiscal Year ending December 31, 2002;
                  and for each Fiscal Year thereafter.

     12. In the event the Divestiture has not yet occurred by January 31, 2000,
then the Companies shall maintain a minimum amount of unused Availability of
$1,000,000, and if the Divestiture has not occurred by February 29, 2000, then
the Companies shall maintain a minimum amount of unused Availability of
$2,000,000.

     13. The Companies agree to advise CITBC in writing of: a) all expenditures
(actual or anticipated) in excess of $150,000.00 for x) environmental clean-up,
y) environmental compliance or z) environmental testing and the impact of said
expenses on the Companies' Working Capital; and b) any notices the Companies
receive from any local, state or federal authority advising the Companies of any
environmental liability (real or potential) stemming from the Companies'
operations, premises, waste disposal practices, or waste disposal sites used by
the Companies and to provide CITBC with copies of all such notices if so
required.

     14. Without the prior written consent of CITBC, the Companies agree that
they will not enter into any transaction, including, without limitation, any
purchase, sale, lease, loan or exchange of property with the Parent, any of the
Companies or any subsidiary or affiliate of either the Companies or Parent
unless any such transaction is conducted on an arms-length basis and on terms no
less beneficial to the Companies than the Companies would have obtained from any
entity that was not related in any fashion with the Companies.

     15. The Companies shall take all action reasonably necessary to assure that
their computer-based systems are able to effectively process date-sensitive data
functions. The Companies represent and warrant that the "Year 2000" problem
(that is, the inability of certain computer applications to recognize and
properly perform date-sensitive functions involving certain dates on or about or
subsequent to December 31, 1999) will not result in a material adverse effect on
their business, assets or operations. The Companies reasonably anticipate that
all computer applications which are material to their business will, on a timely
basis, be able to properly perform date-sensitive functions for all dates on and
after January 1, 2000. Upon CITBC's request from time to time, the Companies
shall provide to CITBC assurances that the Companies' computer systems and
software are or will be Year 2000 compliant on a timely basis, all in form and
substance reasonably satisfactory to CITBC.

                                       37
<PAGE>   40
SECTION 8.  INTEREST, FEES AND EXPENSES

     1(a). Interest on the Revolving Loan shall be payable monthly as of the end
of each month and shall be an amount equal to (a) the Chase Bank Rate per annum
on the average of the net balances owing by the Companies to CITBC in the
Companies' Revolving Loan Account(s) at the close of each day during such month
on balances other than Libor Loans and (b) two and four-tenths percent (2.4%)
plus the applicable Libor on any Libor Loan, on a per annum basis, on the
average of the net balances owing by the Companies to CITBC in the Companies'
Revolving Loan Account(s) at the close of each day during such month. In the
event of any change in said Chase Bank Rate, the rate under clause (a) above
shall change, as of the first of the month following any change, so as to remain
equal to the Chase Bank Rate. The rate hereunder shall be calculated based on a
360-day year. CITBC shall be entitled to charge the Companies' Revolving Loan
Account(s) at the rate provided for herein when due until all Obligations have
been paid in full. Notwithstanding the foregoing, in the event that the
Divestiture has not occurred within 60 days following the Closing Date and the
Term Loan, and the Revolving Loans advanced to AII then outstanding, have not
been repaid in full, then the rate of interest applicable to all Revolving Loans
shall be the Chase Bank Rate plus three percent (3%) per annum until such time
as the Divestiture has been consummated, and the Term Loan and Revolving Loans
to AII have been repaid, at which time the interest rate applicable to the
Revolving Loans shall revert to the rate otherwise applicable hereunder.

     (b) Notwithstanding any provision to the contrary contained in this Section
8, in the event that the sum of the outstanding balance of (i) Revolving Loans
and (ii) Letters of Credit exceeds the lesser of (x) as to any Company the
maximum amount thereof available under Sections 3 and 5 of this Financing
Agreement or (y) for all Companies the Line of Credit: (A) as a result of
Revolving Loans and/or Letters of Credit advanced by CITBC at the request of a
Company (herein "Requested Overadvances"), for any one (1) or more days in any
month hereafter or (B) for any other reason whatsoever (herein "Other
Overadvances") and such Other Overadvances continuing for five (5) or more
consecutive days in any month hereafter, the average net balance of all
Revolving Loans owing by the Companies to CITBC for such month shall bear
interest at the Overadvance Rate. Upon and after the occurrence of an event of
Default and the giving of any required notice by CITBC in accordance with the
provisions of Section 10, Paragraph 2 hereof, all Obligations shall bear
interest at the Default Rate of Interest.

     2. Interest on the Term Loan shall be payable monthly as of the end of each
month on the unpaid balance or on payment in full prior to maturity in an amount
equal to three percent (3.0%) plus the Chase Bank Rate per annum. In the event
of any change in said Chase Bank Rate, the rate under this Paragraph 2 shall
change, as of the first of the month following any change, so as to remain three
percent (3.0%) above the Chase Bank Rate. The rate hereunder shall be calculated
based on a 360 day year. CITBC shall be entitled

                                       38
<PAGE>   41
to charge the Companies' Revolving Loan Account(s) at the rate provided for
herein when due until all Obligations have been paid in full.

     3. INTENTIONALLY OMITTED.

     4. INTENTIONALLY OMITTED.

     5. The Companies may elect to use Libor as to any other outstanding
Revolving Loans provided A) there is then no Default or Event of Default, B) the
Companies have so advised CITBC of their election to use Libor and the Libor
Period selected no later than three (3) Business Days preceding the first day of
a Libor Period and C) the election and Libor shall be effective, provided, there
is then no Default or Event of Default, on the fourth Business Day following
said notice. The Libor elections must be for $1,000,000 or whole multiples
thereof and there shall be no more than four (4) Libor Loans outstanding at one
time. If no such election is timely made or can be made, or if the Libor rate
can not be determined, then CITBC shall use the Chase Bank Rate to compute
interest. In the event the Companies request any Libor election the Companies
shall pay to CITBC a $500 processing fee upon the effective date of each such
Libor election hereunder. In addition, the Companies shall pay to CITBC, upon
the request of CITBC such amount or amounts as shall compensate CITBC for any
loss, costs or expenses incurred by CITBC (as reasonably determined by CITBC) as
a result of: (i) any payment or prepayment on a date other than the last day of
a Libor Period for such Libor Loan, or (ii) any failure of the Companies to
borrow a Libor Loan on the date for such borrowing specified in the relevant
notice; such compensation to include, without limitation, an amount equal to any
loss or expense suffered by CITBC during the period from the date of receipt of
such payment or prepayment or the date of such failure to borrow to the last day
of such Libor Period if the rate of interest obtained by CITBC upon the
reemployment of an amount of funds equal to the amount of such payment,
prepayment or failure to borrow is less than the rate of interest applicable to
such Libor Loan for such Libor Period. The determination by CITBC of the amount
of any such loss or expense, when set forth in a written notice to the
Companies, containing CITBC calculations thereof in reasonable detail, shall be
conclusive on the Companies, in the absence of manifest error. Calculation of
all amounts payable to the CITBC under this paragraph with regard to Libor Loans
shall be made as though CITBC had actually funded the Libor Loans through the
purchase of deposits in the relevant market and currency, as the case may be,
bearing interest at the rate applicable to such Libor Loans in an amount equal
to the amount of the Libor Loans and having a maturity comparable to the
relevant interest period provided, however, that CITBC may fund each of the
Libor Loans in any manner the CITBC see fit and the foregoing assumption shall
be used only for calculation of amounts payable under this paragraph. In
addition, notwithstanding anything to the contrary contained herein, CITBC shall
apply all proceeds of Collateral, including the Accounts, and all other amounts
received by it from or on behalf of the Companies (i) initially to the Chase
Bank Rate loans and (ii) subsequently to Libor

                                       39
<PAGE>   42
Loans; provided, however, x) upon the occurrence of an Event of Default or y) in
the event the aggregate amount of outstanding Libor Rate Loans exceeds
Availability or the applicable maximum levels set forth therefor, CITBC may
apply all such amounts received by it to the payment of Obligations in such
manner and in such order as CITBC may elect in its reasonable business judgment.
In the event that any such amounts are applied to Revolving Loans which are
Libor Loans, such application shall be treated as a prepayment of such loans and
CITBC shall be entitled to indemnification hereunder.

     6. In consideration of the Letter of Credit Guaranty of CITBC, the
Companies shall jointly and severally pay CITBC the Letter of Credit Guaranty
Fee which shall be an amount equal to one and one-half percent (1-1/2%) per
annum, payable monthly, on the face amount of each Letter of Credit less the
amount of any and all amounts previously drawn under the Letter of Credit.

     7. Any charges, fees, commissions, costs and expenses charged to CITBC for
the Companies' account by any Issuing Bank in connection with or arising out of
Letters of Credit issued pursuant to this Financing Agreement or out of
transactions relating thereto will be charged to the Companies' account in full
when charged to or paid by CITBC and when made by any such Issuing Bank shall be
conclusive on CITBC.

     8. The Companies shall jointly and severally reimburse or pay CITBC, as the
case may be, for: i) all Out-of-Pocket Expenses of CITBC and ii) any applicable
Documentation Fee; provided that, after the Closing Date, such Out-of Pocket
Expenses shall not exceed $20,000 per Fiscal Year excluding anticipated
post-closing conditions and similar matters or extraordinary matters, or any
items arising after an Event of Default.

     9. Upon the last Business Day of each month, commencing with the last day
of the month in which this Financing Agreement is executed the Companies shall
jointly and severally pay CITBC the Unused Line Fee.

     10. To induce CITBC to enter into this Financing Agreement and to extend to
the Companies the Revolving Loan, Letters of Credit, and the Term Loan, the
Companies shall jointly and severally pay to CITBC, a Loan Facility Fee in the
amount of $500,000, fully earned and payable on the Closing Date; provided that
if the Closing Date shall occur after December 31, 1999, such fee shall be
reduced to $400,000.

     11. Upon the date hereof and on each annual anniversary hereof the
Companies shall jointly and severally pay to CITBC the Administrative Management
Fee, which shall be fully earned and not refundable or rebatable when due.

     12. The Companies shall jointly and severally pay CITBC's standard charges
for, and the fees and expenses of, the CITBC personnel used by CITBC for
reviewing the books

                                       40
<PAGE>   43
and records of the Companies and for verifying, testing, protecting,
safeguarding, preserving or disposing of all or any part of the Collateral
provided, however, that the foregoing (other than Out-of-Pocket Expenses) shall
not be payable until the occurrence of an Event of Default if the Companies are
paying an Administrative Management Fee.

     13. Each of the Companies hereby authorizes CITBC to charge its Revolving
Loan Account with CITBC with the amount of all payments due hereunder as such
payments become due. Each of the Companies confirms that any charges which CITBC
may so make to the Companies' account as herein provided will be made as an
accommodation to the Companies and solely at CITBC's discretion. CITBC may in
its sole and absolute discretion allocate any of the above fees and/or any other
payments due under this Financing Agreement to the Companies' respective
Revolving Loan Accounts in any proportion that CITBC may decide.

SECTION 9. POWERS

     Each of the Companies hereby constitutes CITBC or any person or agent CITBC
may designate as its attorney-in-fact, at the Companies' cost and expense, to
exercise all of the following powers, which being coupled with an interest,
shall be irrevocable until all of the Companies' Obligations to CITBC have been
paid in full:

     (a) To receive, take, endorse, sign, assign and deliver, all in the name of
CITBC or the Companies, any and all checks, notes, drafts, and other documents
or instruments relating to the Collateral;

     (b) To receive, open and dispose of all mail addressed to the Companies and
to notify postal authorities to change the address for delivery thereof to such
address as CITBC may designate;

     (c) To request from customers indebted on Accounts at any time, in the name
of CITBC or the Companies or that of CITBC's designee, information concerning
the amounts owing on the Accounts;

     (d) To transmit to customers indebted on Accounts notice of CITBC's
interest therein and to notify customers indebted on Accounts to make payment
directly to CITBC for the Companies' account; and

     (e) To take or bring, in the name of CITBC or the Companies, all steps,
actions, suits or proceedings deemed by CITBC necessary or desirable to enforce
or effect collection of the Accounts.

                                       41
<PAGE>   44
     Notwithstanding anything hereinabove contained to the contrary, the powers
set forth in (b), (d) and (e) above may only be exercised after the occurrence
of an Event of Default and until such time as such Event of Default is waived in
writing by CITBC or cured to CITBC's satisfaction. In addition, the powers set
forth in (c) above will only be exercised in the name of the Companies or a
certified public accountant designated by CITBC prior to the occurrence of such
Event of Default.

SECTION 10.  EVENTS OF DEFAULT AND REMEDIES

     1. Notwithstanding anything hereinabove to the contrary, CITBC may
terminate this Financing Agreement immediately upon the occurrence of any of the
following (herein "Events of Default"):

     a)   cessation of the business of the Companies, or any one of them, or the
          calling of a meeting of the creditors of the Companies, or any one of
          them, for purposes of compromising their debts and obligations;

     b)   the failure of the Companies, or any one of them, to generally meet
          debts as they mature;

     c)   the commencement by or against the Companies, or any one of them, of
          any bankruptcy, insolvency, arrangement, reorganization, receivership
          or similar proceedings under any federal or state law, provided that
          in the event of any involuntary proceeding commenced against the
          Companies such proceeding is not dismissed or discharged within thirty
          (30) days after commencement thereof;

     d)   breach by the Companies, or any one of them, of any warranty,
          representation or covenant contained herein (other than those referred
          to in sub-paragraph e below) or in any other written agreement between
          the Companies and CITBC, provided that such breach by the Companies of
          any of the warranties, representations or covenants referred in this
          clause d shall not be deemed to be an Event of Default unless and
          until such breach shall remain unremedied to CITBC's satisfaction for
          a period of ten (10) days from the date of such breach;

     e)   breach by the Companies, or any one of them, of any warranty,
          representation or covenant of Section 3, Paragraphs 3 (other than the
          third sentence of paragraph 3) and 4; Section 6, Paragraphs 3 and 4
          (other than the first sentence of paragraph 4); Section 7, Paragraphs
          1,5,6, and 9 through 11;

     f)   failure of the Companies to pay any of the Obligations within five (5)
          Business Days of the due date thereof, provided that nothing contained
          herein shall prohibit CITBC from charging such amounts to the
          Companies' Revolving Loan Accounts on the due date thereof;

     g)   INTENTIONALLY OMITTED;

                                       42
<PAGE>   45
     h)   the Companies, or any one of them, shall i) engage in any "prohibited
          transaction" as defined in ERISA, ii) have any "accumulated funding
          deficiency" as defined in ERISA, iii) have any Reportable Event as
          defined in ERISA, iv) terminate any Plan, as defined in ERISA or v) be
          engaged in any proceeding in which the Pension Benefit Guaranty
          Corporation shall seek appointment, or is appointed, as trustee or
          administrator of any Plan, as defined in ERISA, and with respect to
          this sub-paragraph h such event or condition x) remains uncured for a
          period of thirty (30) days from date of occurrence and y) could, in
          the reasonable opinion of CITBC, subject the Companies to any tax,
          penalty or other liability material to the business, operations or
          financial condition of the Companies;

     i)   except as otherwise permitted hereunder, without the prior written
          consent of CITBC, the Companies or any holder of any Subordinated Debt
          shall x) amend or modify the Subordinated Debt, or y) make or accept,
          as applicable, any payment on account of the Subordinated Debt except
          as permitted in the Subordination Agreement or, with respect to the
          Subordinated Debt outstanding under the 1997 Indenture, except as
          permitted thereunder (but in no event any prepayments under the 1997
          Indenture), or z) breach, rescind or revoke any provision of the
          Subordination Agreement; or, with respect to the LLCP Debt, the
          Companies shall make any prepayment (other than prepayment of the LLCP
          Term Loan A Debt upon consummation of the Divestiture or other sale of
          the stock or assets of a subsidiary of Simula if the Term Loan shall
          have been repaid in full) thereof;

     j)   the occurrence of any default or event of default (after giving effect
          to any applicable grace or cure periods) under any instrument or
          agreement evidencing (x) Subordinated Debt or (y) any other
          Indebtedness (including the LLCP Debt) of the Companies having a
          principal amount in excess of $250,000;

     k)   any breach by LLCP in any material respect of any of its covenants
          under the Intercreditor Agreement;

     l)   there shall occur any Change of Control (as defined in the Securities
          Purchase Agreement, dated on or about the date hereof, respecting the
          LLCP Debt).

     2. Upon the occurrence of a Default and/or an Event of Default, at the
option of CITBC, all loans, advances and extensions of credit provided for in
Sections 3, 4 and 5 of this Financing Agreement shall be thereafter in CITBC's
sole discretion and the obligation of CITBC to make Revolving Loans, and/or open
Letters of Credit shall cease unless such Default or Event of Default is waived
in writing by CITBC or cured to CITBC's satisfaction, and at the option of CITBC
upon the occurrence of an Event of Default: i) all Obligations shall become
immediately due and payable; ii) CITBC may charge the Companies the Default Rate
of Interest on all then outstanding or thereafter incurred Obligations in lieu
of the interest provided for in Section 8 of this Financing Agreement provided
that respect

                                       43
<PAGE>   46
to this clause "ii)" a) CITBC has given the Companies written notice of the
Event of Default, provided, however, that no notice is required if the Event of
Default is the Event listed in paragraph 1(c) of this Section 10 and b) the
Companies have failed to cure the Event of Default within ten (10) days after x)
CITBC deposited such notice in the United States mail or y) the occurrence of
the Event of Default listed in paragraph 1(c) of this Section 10; and iii) CITBC
may immediately terminate this Financing Agreement upon notice to the Companies,
provided, however, that no notice of termination is required if the Event of
Default is the Event listed in paragraph 1(c) of this Section 10. The exercise
of any option is not exclusive of any other option which may be exercised at any
time by CITBC.

     3. Immediately upon the occurrence of any Event of Default, CITBC may to
the extent permitted by law: (a) remove from any premises where same may be
located any and all documents, instruments, files and records, and any
receptacles or cabinets containing same, relating to the Accounts, or CITBC may
use, at the Companies' expense, such of the Companies' personnel, supplies or
space at the Companies' places of business or otherwise, as may be necessary to
properly administer and control the Accounts or the handling of collections and
realizations thereon; (b) bring suit, in the name of the Companies or CITBC, and
generally shall have all other rights respecting said Accounts, including
without limitation the right to: accelerate or extend the time of payment,
settle, compromise, release in whole or in part any amounts owing on any
Accounts and issue credits in the name of the Companies or CITBC; (c) sell,
assign and deliver the Collateral and any returned, reclaimed or repossessed
merchandise, with or without advertisement, at public or private sale, for cash,
on credit or otherwise, at CITBC's sole option and discretion, and CITBC may bid
or become a purchaser at any such sale, free from any right of redemption, which
right is hereby expressly waived by the Companies; (d) foreclose the security
interests created herein by any available judicial procedure, or to take
possession of any or all of the Inventory, Equipment and/or Other Collateral
without judicial process, and to enter any premises where any Inventory,
Equipment and/or Other Collateral may be located for the purpose of taking
possession of or removing the same and (e) exercise any other rights and
remedies provided in law, in equity, by contract or otherwise. CITBC shall have
the right, without notice or advertisement, to sell, lease, or otherwise dispose
of all or any part of the Collateral whether in its then condition or after
further preparation or processing, in the name of the Companies or CITBC, or in
the name of such other party as CITBC may designate, either at public or private
sale or at any broker's board, in lots or in bulk, for cash or for credit, with
or without warranties or representations, and upon such other terms and
conditions as CITBC in its sole discretion may deem advisable, and CITBC shall
have the right to purchase at any such sale. If any Inventory and Equipment
shall require rebuilding, repairing, maintenance or preparation, CITBC shall
have the right, at its option, to do such of the aforesaid as is necessary, for
the purpose of putting the Inventory and Equipment in such saleable form as
CITBC shall deem appropriate. The Companies agree, at the request of CITBC, to
assemble the Inventory and Equipment and to make it available to CITBC at
premises of the Companies or elsewhere and to make

                                       44
<PAGE>   47
available to CITBC the premises and facilities of the Companies for the purpose
of CITBC's taking possession of, removing or putting the Inventory and Equipment
in saleable form. However, if notice of intended disposition of any Collateral
is required by law, it is agreed that ten (10) days notice shall constitute
reasonable notification and full compliance with the law. The net cash proceeds
resulting from CITBC's exercise of any of the foregoing rights, (after deducting
all charges, costs and expenses, including reasonable attorneys' fees) shall be
applied by CITBC to the payment of the Companies' Obligations, whether due or to
become due, in such order as CITBC may elect, and the Companies shall remain
liable to CITBC for any deficiencies, and CITBC in turn agrees to remit to the
Companies or their successors or assigns, any surplus resulting therefrom. The
enumeration of the foregoing rights is not intended to be exhaustive and the
exercise of any right shall not preclude the exercise of any other rights, all
of which shall be cumulative. The mortgage(s), deed(s) of trust and/or
assignment(s) on the Real Estate shall govern the rights and remedies of CITBC
thereto.

SECTION 11. TERMINATION

     Except as otherwise permitted herein, the Companies or CITBC may terminate
this Financing Agreement and the Line of Credit only as of the initial or any
subsequent Anniversary Date and then only by giving the other at least sixty
(60) days prior written notice of termination. Notwithstanding the foregoing
CITBC may terminate the Financing Agreement immediately upon the occurrence of
an Event of Default, provided, however, that if the Event of Default is an event
listed in paragraph 1(c) of Section 10 of this Financing Agreement, CITBC may
regard the Financing Agreement as terminated and notice to that effect is not
required. This Financing Agreement, unless terminated as herein provided, shall
automatically continue from Anniversary Date to Anniversary Date.
Notwithstanding the foregoing, the Companies may terminate this Financing
Agreement and the Line of Credit prior to any applicable Anniversary Date upon
sixty (60) days' prior written notice to CITBC, provided that the Companies pay
to CITBC immediately on demand, an Early Termination Fee, if applicable.
Termination by any of the Companies shall constitute termination with respect to
all Companies. All Obligations shall become due and payable as of any
termination hereunder or under Section 10 hereof and, pending a final
accounting, CITBC may withhold any balances in the Companies' accounts (unless
supplied with an indemnity satisfactory to CITBC) to cover all of the Companies'
Obligations, whether absolute or contingent. All of CITBC's rights, liens and
security interests shall continue after any termination until all Obligations
have been paid and satisfied in full.

SECTION 12.  MISCELLANEOUS

     1. Each of the Companies hereby waives diligence, demand, presentment and
protest and any notices thereof as well as notice of nonpayment. No delay or
omission

                                       45
<PAGE>   48
of CITBC or the Companies to exercise any right or remedy hereunder, whether
before or after the happening of any Event of Default, shall impair any such
right or shall operate as a waiver thereof or as a waiver of any such Event of
Default. No single or partial exercise by CITBC of any right or remedy precludes
any other or further exercise thereof, or precludes any other right or remedy.

     2. This Financing Agreement and the documents executed and delivered in
connection therewith constitute the entire agreement between the Companies and
CITBC; supersede any prior agreements; can be changed only by a writing signed
by both the Companies and CITBC; and shall bind and benefit the Companies and
CITBC and their respective successors and assigns.

     3. In no event shall the Companies, upon demand by CITBC for payment of any
indebtedness relating hereto, by acceleration of the maturity thereof, or
otherwise, be obligated to pay interest and fees in excess of the amount
permitted by law. Regardless of any provision herein or in any agreement made in
connection herewith, CITBC shall never be entitled to receive, charge or apply,
as interest on any indebtedness relating hereto, any amount in excess of the
maximum amount of interest permissible under applicable law. If CITBC ever
receives, collects or applies any such excess, it shall be deemed a partial
repayment of principal and treated as such; and if principal is paid in full,
any remaining excess shall be refunded to the Companies. This paragraph shall
control every other provision hereof and of any other agreement made in
connection herewith.

     4. If any provision hereof or of any other agreement made in connection
herewith is held to be illegal or unenforceable, such provision shall be fully
severable, and the remaining provisions of the applicable agreement shall remain
in full force and effect and shall not be affected by such provision's
severance. Furthermore, in lieu of any such provision, there shall be added
automatically as a part of the applicable agreement a legal and enforceable
provision as similar in terms to the severed provision as may be possible.

     5. THE COMPANIES AND CITBC EACH HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY
IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS FINANCING AGREEMENT. EACH OF THE
COMPANIES HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO
SERVICE OF PROCESS BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED.

     6. Except as otherwise herein provided, any notice or other communication
required hereunder shall be in writing, and shall be deemed to have been validly
served, given or delivered when hand delivered or sent by telegram or telex, or
three days after deposit in the United State mails, with proper first class
postage prepaid and addressed to the party to be notified as follows:

                                       46
<PAGE>   49
         (A) if to CITBC, at:

             The CIT Group/Business Credit, Inc.
             300 South Grand Avenue, 3rd Floor
             Los Angeles, California  90071
             Attn: Vice President and Regional Credit Manager
             Fax No.: (213) 613-2501

         (B) if to the Companies at:

             Simula, Inc.
             2700 North Central Avenue, Suite 1000
             Phoenix, Arizona  85004
             Attn: Mr. James Dodd, Chief Financial Officer
             Fax No.: (602) 631-9005

or to such other address as any party may designate for itself by like notice.

     7. THE VALIDITY, INTERPRETATION AND ENFORCEMENT OF THIS FINANCING AGREEMENT
SHALL BE GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA.

     IN WITNESS WHEREOF, the parties hereto have caused this Financing Agreement
to be executed and delivered by their proper and duly authorized officers as of
the date set forth above. This Financing Agreement shall take effect as of the
date set forth above after being accepted below by an officer of CITBC after
which, CITBC shall forward to the Companies a fully executed original for their
files.

                                                    Very truly yours,

                                                    THE CIT GROUP/BUSINESS
                                                    CREDIT, INC.

                                                    By /s/ Thomas Heyes
                                                           Senior Vice President

                                       47
<PAGE>   50
Read and Agreed to:

SIMULA, INC.

By   /s/ James C. Dodd

Title:  Executive Vice President & CFO

AIRLINE INTERIORS, INC.

By       /s/ James C. Dodd

Title:  Treasurer

ARTCRAFT INDUSTRIES CORP.

By       /s/ James C. Dodd

Title:  Treasurer

SIMULA TRANSPORTATION
EQUIPMENT CORPORATION
(formerly known as INTAERO INC.)

By       /s/ James C. Dodd

Title:  Treasurer

INTERNATIONAL CENTER FOR
SAFETY EDUCATION, INC.

By       /s/ James C. Dodd

Title:  Treasurer

                                       48
<PAGE>   51
SIMULA AUTOMOTIVE SAFETY
DEVICES, INC.

By       /s/ James C. Dodd

Title:  Treasurer

SIMULA COMPOSITES
CORPORATION

By       /s/ James C. Dodd

Title:  Treasurer

SIMULA POLYMER SYSTEMS, INC.

By       /s/ James C. Dodd

Title:  Treasurer

SIMULA SAFETY SYSTEMS, INC.

By       /s/ James C. Dodd

Title:  Treasurer

SIMULA TECHNOLOGIES, INC.

By       /s/ James C. Dodd

Title:  Treasurer

                                       49
<PAGE>   52
SIMULA AUTOMOTIVE SAFETY
DEVICES, LIMITED

By       /s/ James C. Dodd

Title:  Treasurer

CCEC CAPITAL CORP.

By       /s/ James C. Dodd

Title:  Treasurer

                                       50
<PAGE>   53
                                                              Exhibit 10.41b

                             STOCK PLEDGE AGREEMENT

To:          THE CIT GROUP/BUSINESS CREDIT, INC.

Address:     300 South Grand Avenue, 3rd Floor
             Los Angeles, California  90071

                                December 30, 1999

Gentlemen:

Reference is made to a certain Financing Agreement dated of even date herewith,
as amended (herein called the "Financing Agreement") between you and the
undersigned (collectively, "Pledgor"), together with the subsidiaries and
affiliates of the undersigned which are parties thereto (herein collectively
called the "Company"). Capitalized terms used herein and defined in the
Financing Agreement shall have the same meanings as set forth therein unless
otherwise specifically defined herein. As security for: (a) the full and
indefeasible payment and performance when due of all now existing and future
Obligations of the Company to you, whether absolute or contingent, however
acquired by you, and whether arising under the Financing Agreement as now
written or as amended or supplemented or augmented hereafter, or by virtue of
any guaranty now or hereafter executed by Pledgor in your favor, in law or
otherwise; (b) any liability or indebtedness you may incur because of any
guaranty you may issue at the request of the Company, including, without
limitation, any Letter of Credit Guaranty; (c) the amount of all expenses
(including reasonable attorneys' fees) incurred by you in collecting or
attempting to collect any of the Company's obligations to you whether from the
Company or any other obligor or in realizing upon collateral; and (d) any
interest from the due date at the Default Rate of Interest specified in the
Financing Agreement on all amounts payable to you hereunder (all of which are
herein called the "Secured Obligations"), Pledgor hereby pledges, assigns,
transfers, delivers and sets over to you all of its right, title and interest in
and to the securities listed on the attached schedule, issued as indicated on
said schedule (the "Securities").

This pledge includes all right, title and interest in and to and a continuing
lien upon and security interest in, all of said Securities together with any and
all rights, coupons, warrants or rights to subscribe, options, dividends,
liquidating dividends, splits, dividends paid in stock, dividends paid in
Securities, new or reclassified Securities, or any other property which Pledgor
is or may hereafter become entitled to receive on account of such Securities,
any and all increments, substitutions,

                                      - 1 -
<PAGE>   54
additions or replacements thereof, and any and all proceeds thereof (all
collectively hereinafter referred to as the "Pledged Collateral").

This Stock Pledge Agreement is executed as an inducement to you to make loans or
advances to the Company or issue guaranties at the request of the Company, or
otherwise to extend credit or financial accommodations to the Company or to
enter into or continue a financing arrangement with the Company, and is executed
in consideration of your doing or having done any of the foregoing.

Pledgor agrees that any of the foregoing shall be deemed to have been done or
extended by you in consideration of and in reliance upon the execution of this
Stock Pledge Agreement.

Pledgor shall be in default under this Pledge Agreement upon the occurrence of
any Event of Default under the Financing Agreement (herein any such default
shall be referred to as an "Event of Default").

In the event of the happening of any such Event of Default, then on ten (10)
days prior notice to Pledgor, without the curing of such default within such
time, you may, without demand of performance, advertisement or notice of
intention to sell, or of the time or place of sale, and without notice to
redeem, or other notice or demand whatsoever to or upon Pledgor (all and each of
which demands, advertisements and/or notices are hereby expressly waived),
forthwith or at any time or times thereafter, transfer to and/or register in
your name, or the name of your nominee, any or all of the Pledged Collateral
and/or collect, receive, appropriate and realize upon said Pledged Collateral.
In addition, and also without any of the aforesaid demands, advertisements,
and/or notices, upon the occurrence of any Event of Default as defined herein,
you may sell, assign, transfer and deliver the whole or any part of the Pledged
Collateral then held by you under this Stock Pledge Agreement or subject to this
Stock Pledge Agreement in one or more parcels, at public or private sale or
sales, at any Exchange Broker's Board, at your office or elsewhere, on such
terms and conditions, and at such prices as you may deem advisable, for cash,
upon credit, or for future delivery, with the right on your part to become the
purchaser thereof at any such sale or sales, free and clear of any right to
equity of redemption (which right or equity is hereby expressly waived and
released). Any notice of sale, disposition, or other intended action by you
required by applicable law and sent to Pledgor at least ten (10) days prior to
such action shall constitute reasonable notice to Pledgor. Prior to exercising
your rights contained herein you may in your discretion forward the various
coupons coming due on any bonds covered hereby directly to Pledgor for
collection.

Net proceeds of any such disposition as aforesaid, after deduction all costs,
including reasonable attorney's fees and expenses of every kind incurred
therein,

                                      -2-
<PAGE>   55
shall be applied to the payment in whole or in part, in such order as you may
elect, of any of the Secured Obligations, whether then due or not due. You agree
to pay over and return any remaining balance to Pledgor or to any person
entitled thereto, upon proper demand being made therefor, and if there be any
deficiency, Pledgor shall continue to be fully liable for same.

Further, you are hereby expressly granted the right and irrevocable proxy, in
the event of the happening of any Event of Default (as defined herein), and on
ten (10) days prior notice to Pledgor, without the curing of such Event of
Default within such time, to transfer to yourself or to your nominee any or all
of the Pledged Collateral or to register same in your name on the books of
Pledgor or entity issuing same; to receive cash dividends, coupons and income
thereon and to hold the same as additional collateral security hereunder, or to
apply it against the Secured Obligations and to exercise any voting rights with
respect to said Collateral for any purposes as you in your discretion deem
advisable, and to otherwise exercise as to such Pledged Collateral, all rights,
powers and remedies as the owner thereof.

Pledgor hereby represents and warrants that the Pledged Collateral is owned by
Pledgor absolutely, and is free and clear of all liens and encumbrances except
for the pledge in your favor and except for Permitted Encumbrances (as defined
in the Financing Agreement); that there are no restrictions upon the pledge or
transfer of any of the Pledged Collateral; that Pledgor has full right to pledge
and transfer the same in accordance with the terms and conditions of this Stock
Pledge Agreement, free of all encumbrances (except said Permitted Encumbrances)
and without the consent of any other person, firm, entity or corporation and
without the need to notify the issuing company and/or obtain their consent to
the pledge; and that said Pledged Collateral is not subject to any assessment.
Pledgor agrees to defend its title to the Pledged Collateral at its own cost and
expense, and to pay, satisfy and discharge and any all assessments, liens or
charges now or thereafter placed upon the Pledged Collateral.

In the event that it becomes necessary to comply with any Federal or State law
or regulation or to make or file any registration thereunder in order for you to
exercise any of your rights hereunder, Pledgor expressly agrees to do or will
cause to be done all acts and prepare and execute all documents necessary to
affect such compliance or registration, and to bear all reasonable costs in
connection therewith. Pledgor agrees to indemnify and to hold you harmless from
and against any claim or liability; and to hold you harmless from and against
any claim or liability caused by (i) any untrue statement of material fact, or
omission to state a material fact (as required in any registration or
prospectus) or (ii) a failure to register or comply with any such law or
regulation.

                                      -3-
<PAGE>   56
Pledgor recognizes that you may be unable to effect a public sale of any or all
of the Collateral, by reason of certain prohibitions contained in the Securities
Act of 1933 and applicable state securities law or otherwise, and may be
compelled to resort to one or more private sales thereof to a restricted group
of purchasers which will be obligated to agree, among other things, to acquire
such securities for their own account for investment and not with a view to the
distribution or resale thereof. Pledgor acknowledges and agrees that any such
private sale may result in prices and other terms less favorable to you than if
such sale were a public sale and agrees that such circumstances shall not, in
and of themselves, result in a determination that such sale was not made in a
commercially reasonable manner. You shall be under no obligation to delay a sale
of any of the Pledged Collateral for the period of time necessary to permit the
issuer to register such securities for public sale under the Securities Act of
1933, or under applicable state securities laws, even if the issuer agrees to do
so.

Pledgor affirms and certifies that the Secured Obligations were not, and will
not be, incurred for the purpose of providing or obtaining any credit for
purchasing or trading in registered equity securities or other marketable
securities.

Pledgor hereby agrees at your request to execute all necessary stock powers in
blank, to have the signatures on said powers guaranteed, to execute a letter or
other form confirming that the Pledged Collateral is not being pledged to you
for the purpose of providing or obtaining any credit for purchasing or trading
in registered equity securities or other marketable securities, and to execute
any further documents or papers whatsoever in order to carry out the intent and
purpose of this Stock Pledge Agreement.

The pledge provided for herein shall be in addition to, and shall not be deemed
to affect, modify or limit any other rights, collateral, agreements or security
which you may now or hereafter hold whether granted or given to you by Pledgor
or by any other person, firm or corporation.

It is understood and agreed that the rights and remedies herein enumerated are
not intended to be exhaustive but are in addition to any other rights or
remedies at law or in equity. You shall have the absolute right in your sole
discretion to determine the order in which your rights and remedies are to be
exercised, and your exercise of any right or remedy shall not preclude the
exercise of any other rights or remedies or be deemed to be a waiver thereof. No
act of forbearance, or agreement to forebear the enforcement of, or extension of
the date of maturity of, any Secured Obligation, shall in any way constitute a
release of, or a waiver or relinquishment of any of your rights or remedies.

                                      -4-
<PAGE>   57
This Stock Pledge Agreement is to be governed by the laws of the State of
California shall be binding on the heirs, administrators, executors, successors
and assigns of Pledgor, and shall inure to the benefit of you and your
successors and assigns.

Very truly yours,

SIMULA, INC.

By /s/ James C. Dodd
   ----------------------
Title: Executive Vice President and CFO
       --------------------------------

AIRLINE INTERIORS, INC.

By /s/ James C. Dodd
   ----------------------
Title: Treasurer
       --------------------------------

ARTCRAFT INDUSTRIES CORP.

By /s/ James C. Dodd
   ----------------------
Title: Treasurer
       --------------------------------

SIMULA TRANSPORTATION
EQUIPMENT CORPORATION
(formerly known as INTAERO INC.)

By /s/ James C. Dodd
   ----------------------
Title: Treasurer
       --------------------------------

                                      -5-
<PAGE>   58
INTERNATIONAL CENTER FOR
SAFETY EDUCATION, INC.

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       --------------------------------

SIMULA AUTOMOTIVE SAFETY
DEVICES, INC.

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       --------------------------------

SIMULA COMPOSITES
CORPORATION

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       --------------------------------

SIMULA POLYMER SYSTEMS, INC.

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       --------------------------------

SIMULA SAFETY SYSTEMS, INC.
   -----------------------
By /s/ James C. Dodd

Title: Treasurer
       --------------------------------

                                      -6-
<PAGE>   59
SIMULA TECHNOLOGIES, INC.

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       -------------------

SIMULA AUTOMOTIVE SAFETY
DEVICES, LIMITED

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       -------------------

CCEC CAPITAL CORP.

By /s/ James C. Dodd
   -----------------------
Title: Treasurer
       -------------------

                                      -7-
<PAGE>   60
                                   SCHEDULE TO
                             STOCK PLEDGE AGREEMENT
                   BETWEEN THE CIT GROUP/BUSINESS CREDIT, INC.
     AND SIMULA, INC. AND CERTAIN SUBSIDIARIES (COLLECTIVELY, THE "PLEDGOR")

<TABLE>
<CAPTION>
        Issuer                          Owner                    Certificate#               # of Shares
        ------                          -----                    ------------               -----------

<S>                                     <C>                      <C>                        <C>
1.      Simula Safety                   Simula, Inc.                 1                         5000
        Systems, Inc.

2.      Simula Transportation           Simula, Inc.                 1                         5000
        Equipment Corporation

3.      Simula Automotive               Simula, Inc.                 1                         5000
        Safety Devices, Inc.

4.      Simula                          Simula, Inc.                 1                         5000
        Technologies, Inc.

5.      Simula Polymer                  Simula, Inc.                 1                         5000
        Systems, Inc.

6.      Airline Interiors, Inc.         Simula Transportation        1                         5000
                                        Equipment Corporation

7.      Artcraft Industries Corp.       Simula Transportation        1                         5000
                                        Equipment Corporation

8.      Simula Composites               Simula Transportation        1                         1000
        Corporation                     Equipment Corporation

9.      Simula Automotive               Simula Automotive            2                         1
        Safety Devices, Limited         Safety Devices, Inc.

10.     International Center            Simula Technologies, Inc.    1                         5000
        For Safety
        Education, Inc.

11.     CCEC Capital Corp.              Simula Transportation        1                         5000
                                        Equipment Corporation
</TABLE>

                                      -8-
<PAGE>   61
                                                            Exhibit 10.41c

                             SUBORDINATION AGREEMENT

     THIS SUBORDINATION AGREEMENT, made and entered into the 30th day of
December, 1999, by and between STANLEY DESJARDINS ("Subordinating Creditor")
with an address at 2700 North Central Avenue, Suite 1000, Phoenix, Arizona
85004, and THE CIT GROUP/BUSINESS CREDIT, INC. ("CIT") with a place of business
at 300 South Grand Avenue, 3rd Floor, Los Angeles, California 90071.

                                   WITNESSETH:

     WHEREAS, Simula, Inc. (the "Company") has executed and delivered to
Subordinating Creditor its promissory note, dated, October 17, 1999 in the
principal amount of $1,000,000 (the "Subordinated Note");

     WHEREAS, the Company desires to borrow certain sums from CIT pursuant to a
certain Financing Agreement ("Financing Agreement") and a certain Promissory
Note in the amount of $5,000,000 (the "CIT Note") executed in conjunction
therewith to evidence the Term Loan extended by CIT to the Company Simula, Inc.
thereunder;

     WHEREAS, the extension of credit by CIT to the Company will benefit the
Subordinating Creditor;

     NOW THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Subordinating Creditor hereby agrees with CIT as follows:

     1. SUBORDINATION. The Subordinating Creditor hereby subordinates and defers
the payment (including without limitation in any Insolvency Proceeding) of any
and all amounts which may be now or hereafter owing by the Company to the
Subordinating Creditor pursuant to the Subordinated Note and/or any promissory
notes now or hereafter executed and delivered by the Company to the
Subordinating Creditor in payment of or as evidence of amounts now or hereafter
owing by the Company to the Subordinating Creditor arising pursuant to or in
connection with said Subordinated Note (the "Subordinated Debt") to the prior
payment and satisfaction in full of any and all Senior Debt which may be now or
hereafter owing to CIT by the Company. "Senior Debt," as used herein, shall mean
all Obligations (as defined in the Financing Agreement), including, without
limitation, any and all now existing and future indebtedness, obligations or
liabilities of the Company to CIT, whether direct or indirect, absolute or
contingent, secured or unsecured, arising under the Financing Agreement or the
CIT Note or any guaranty executed by the Company in favor of CIT, as now written
or as amended or supplemented hereafter, or by operation of law or otherwise,
including any and all expenses (including reasonable attorneys' fees) incurred
in connection therewith and any interest thereon, including, without limitation,
any post petition interest accruing on such Senior Debt after the Company
becomes subject to an Insolvency Proceeding (whether or not such interest is
enforceable against the Company or recoverable against the Company or its
bankruptcy estate).

                                      -1-
<PAGE>   62
Senior Debt shall also include all indebtedness, obligations and liabilities of
the Company (i) arising in connection with any advances made to the Company as a
debtor-in-possession, or a trustee for the Company under any Insolvency
Proceeding and (ii) to repay any amount previously paid by the Company pursuant
to the Financing Agreement which amounts have been returned to the Company or to
a trustee pursuant to sections 547 or 548 of the Bankruptcy Code.

     "Insolvency Proceeding" shall mean (i) any insolvency or bankruptcy case or
proceeding or any receivership, liquidation, reorganization, readjustment,
composition or other similar case or proceeding relating to the Company or its
assets, (ii) any liquidation, dissolution, reorganization or winding up of the
Company, whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy proceedings or (ii) any assignment for the benefit or
creditors or any other marshalling of the Company's assets.

     2. REPRESENTATIONS AND WARRANTIES. The Subordinating Creditor hereby
warrants and represents:

     2.1 That the Company owes to the Subordinating Creditor, as of the date
hereof, the Subordinated Debt; that the Subordinated Debt is not and will not be
subject to any defense, offset or counterclaim; that the Subordinating Creditor
is the exclusive owner of the Subordinated Debt; that there are, and will be, no
guarantees or collateral or security for said Subordinated Debt; and that
neither the Subordinated Debt nor any collateral or guarantees (if any) therefor
is now, nor will be subject to any lien, security interest, guarantees,
subordination or assignment except the subordination in favor of CIT.

     2.2 That until such time as this Subordination Agreement is terminated as
herein below provided, the Subordinating Creditor will not, directly or
indirectly, demand or receive payment of; exchange, forgive, or modify; request
or obtain collateral or security or guarantees for; effect a subordination or
transfer to others of; grant any security interest in or lien on; or assert, or
participate in, or bring any sort of action, suit or proceeding (including
without limitation bankruptcy or insolvency proceedings) either at law or in
equity for the enforcement, collection or realization on: the whole or any part
of, the Subordinated Debt (herein "Commence Legal Action").

     3. INDUCEMENT. This Subordination Agreement is executed as an inducement to
CIT to make loans or advances to the Company or otherwise to extend credit or
financial accommodations to the Company, and to enter into and continue a
financing arrangement with the Company and is executed in consideration of CIT's
doing or having done any of the foregoing. The Subordinating Creditor agrees
that any of the foregoing shall be done or extended by CIT in its sole
discretion and shall be deemed to have been done or extended by CIT in
consideration of and in reliance upon the execution of this Subordination
Agreement, but that nothing herein shall obligate CIT to do any of the
foregoing.

     4. TERMINATION. This Subordination Agreement may be terminated only upon
(i) payment and satisfaction in full of all Senior Debt and termination of the
Financing Agreement and CIT's obligation to make loans, advances and/or
extensions of credit thereunder, or (ii) as of

                                      -2-
<PAGE>   63
an Anniversary Date, as defined in the Financing Agreement, and then only upon
actual receipt by an officer of CIT of at least one hundred and twenty (120)
days prior written notice of termination sent by registered or certified mail;
provided, however, that in the event of termination of this Subordination
Agreement, the Subordinating Creditor, shall remain bound hereunder, and this
Subordination Agreement shall continue in full force and effect with respect to
any and all Senior Debt created or arising prior to the effective date of such
termination and with respect to any and all extensions, renewals or
modifications of said pre-existing Senior Debt. This is a continuing agreement
and written notice as above provided shall be the only means of termination,
notwithstanding the fact that for certain periods of time there may be no Senior
Debt owing to CIT by the Company. Subordinating Creditor acknowledges and agrees
that any such termination shall constitute an Event of Default under the
Financing Agreement.

     5. RIGHTS IN INSOLVENCY PROCEEDINGS. The Subordinating Creditor irrevocably
authorizes and empowers CIT in any Insolvency Proceeding involving or relating
to the Subordinated Debt to file proof of its claim in behalf of the
Subordinating Creditor with respect to the Subordinated Debt if the
Subordinating Creditor fails to file proof of its claims prior to 30 days before
the expiration of the time period during which such claims must be submitted, to
accept and receive any payment or distribution which may be payable or
deliverable at any time upon or in respect of the Subordinated Debt in an amount
not in excess of the Senior Debt then outstanding and to take such other action
as may be reasonably necessary to effectuate the foregoing. The Subordinating
Creditor shall provide to CIT all information and documents necessary to present
claims or seek enforcement as aforesaid. The Subordinating Creditor agrees that
while it shall retain the right to vote its claims and otherwise act in any such
Insolvency Proceeding relative to the Company (including, without limitation,
the right to vote to accept or reject any plan of partial or complete
liquidation, reorganization, arrangement, composition, or extension), the
Subordinating Creditor shall not take any action or vote in any way so as to
contest (i) the validity or the enforceability of the Financing Agreement, the
CIT Note, or the liens and security interests to the extent granted to CIT with
respect to the Senior Debt, (ii) the rights and duties of CIT established in the
Financing Agreement or any security documents with respect to such liens and
security interests, or (iii) the validity or enforceability of this
Subordination Agreement or any agreement or instrument to the extent evidencing
or relating to the Senior Debt. CIT agrees that while it shall retain the right
to vote its Senior Debt and otherwise act in any such reorganization proceeding
relative to the Company (including, without limitation, the right to vote or
accept or reject any plan of partial or complete liquidation, reorganization
arrangement, composition or extension), CIT shall not take any action or vote in
any way so as to contest the enforceability of this Subordination Agreement, the
Subordinated Note or any other agreement or instrument to the extent evidencing
or relating to Subordinated Debt.

     6. NO LIABILITY; OVERPAYMENT. CIT shall in no event be liable for any
failure to prove the Subordinated Debt; for failure to exercise any rights with
respect thereto; or for failure to collect any sums payable thereon or for
failure to take any affirmative action in connection therewith. If any dividends
or payments received by CIT on the Subordinated Debt, when added to the
dividends received directly by CIT on the Senior Debt, shall exceed the total
Senior Debt, CIT agrees to pay the excess to the Subordinating Creditor.

                                      -3-
<PAGE>   64
     7. ARRANGEMENTS WITH THE COMPANY. It is agreed that CIT may enter into any
agreement or arrangements with respect to the Financing Agreement and/or the CIT
Note, and any amendments, thereto, with the Company as CIT may deem proper;
extend the time for payment of and/or renew any or all Senior Debt; surrender
any security, collateral or guarantees underlying all or any of such Senior
Debt, and make any settlements and compromises thereof; all without notice to or
consent from the Subordinating Creditor and without in any way impairing or
affecting this Subordination Agreement thereby.

     8. PAYMENTS TO THE SUBORDINATING CREDITOR. (a) Subject to the provisions of
subparagraph (b) hereof, should any payment with respect to the Subordinated
Debt be received by the Subordinating Creditor in any form and from any source
whatsoever (including, without limitation, any payment or distribution of
collateral security (if any ) or the proceeds of any such collateral security)
prior to the satisfaction in full of all of the Senior Debt, the Subordinating
Creditor shall immediately deliver to CIT any monies, securities or other
property received by it, or its equivalent in cash, with proper endorsements or
assignments, if necessary; and pending such delivery the Subordinating Creditor
shall hold such monies, securities or other property as trustee for the account
of CIT.

     (b) Notwithstanding anything to the contrary stated herein, the Company may
make payments of (i) interest when due, strictly in accordance with the terms
and provisions of the Subordinated Note as in effect on the date hereof, and
(ii) after full and final payment of the CIT Note, principal installments
strictly in accordance with the terms and provisions of the Subordinated Note as
in effect on the date hereof, all without prepayment or acceleration of the
Subordinated Debt, and the Subordinating Creditor may demand, receive and retain
said payments unless CIT has notified the Subordinating Creditor in writing that
an Event of Default has occurred under the Financing Agreement (a "Default
Notice"). Upon receipt of a Default Notice, and at all times thereafter until
such Event of Default shall have been cured or waived and CIT shall have
provided written notice thereof to the Subordinating Creditor, (i) the
Subordinating Creditor may not take, demand, receive or accelerate any payment
of principal or interest with respect to the Subordinated Debt and the Company
shall not give, make or permit any such payment and (ii) the Subordinating
Creditor shall not Commence Legal Action. However, notwithstanding the
foregoing, should any Insolvency Proceeding occur at any time, the Subordinated
Debt shall be subordinated to the prior payment of all Senior Debt in accordance
with paragraph 1 hereof and the aforesaid provisions of subparagraph (a) of this
paragraph.

     9. ACCELERATION RIGHTS AND REMEDIES. The Subordinating Creditor shall have
no right to accelerate the Subordinated Debt or Commence Legal Action to enforce
collection of all, or any part of, the Subordinated Debt, except that the
Subordinating Creditor may accelerate and Commence Legal Action in the event
that the Company commences or has commenced against it (other than by the
Subordinating Creditor) an Insolvency Proceeding, provided that any such
involuntary Insolvency Proceeding which is commenced against the Company is not
dismissed or discharged within 60 days after commencement thereof; provided,
however that any amount received by the Subordinating Creditor as a result of
any such acceleration, prior to payment in

                                      -4-
<PAGE>   65
full of the Senior Debt, shall be held in trust and paid to CIT in accordance
with the provisions of this Subordination Agreement.

     10. ACTION AGAINST. If the Subordinating Creditor in violation of this
Subordination Agreement shall assert or bring any action, suit or proceeding
against the Company, the Company may interpose as a defense or dilatory plea the
making of this Subordination Agreement, and CIT is hereby irrevocably authorized
to intervene and to interpose such defense or plea in its name or in Company's
name. If the Subordinating Creditor shall attempt to enforce, collect or realize
upon any Subordinated Debt or, any collateral, security or guarantees (if any),
securing the Subordinated Debt in violation of this Subordination Agreement, the
Company may, by virtue of this Subordination Agreement, restrain any such
enforcement, collection or realization, or upon failure to do so, CIT may
restrain any such enforcement, collection or realization, either in its own name
or in the name of the Company.

     11. ENDORSEMENT OF NOTE; OTHER DOCUMENTS. The Subordinating Creditor agrees
to mark the Subordinated Note evidencing the Subordinated Debt with a notation
in substantially the following form:

     "This Note is subject to the terms and provisions of Subordination
Agreement executed by the Payee in favor of The CIT Group/Business Credit,
Inc.", and to deliver such Subordinated Note to CIT.

     12. MODIFICATIONS TO THE SUBORDINATED NOTE. Without obtaining the prior
written consent of CIT, the Subordinated Note shall not be amended for (i) any
increase in the rate of interest charged thereunder (ii) any increase in the
principal amount of the Subordinated Note or any installment due thereunder,
(iii) any change of the maturity date of any payment for principal or interest
which would have the effect of accelerating payment thereof, (iv) amendment of
the form or method of payment, (v) the granting or obtaining of any collateral
security or obtaining any lien in any collateral, (vi) providing for any
additional financial covenants or events of default or making more restrictive
any existing covenants or events of default applicable to the Company, or (vii)
any other amendment which would have a material adverse effect on the operations
of the Company, CIT's security interest in the Collateral or CIT's Senior Debt.

     13. NO IMPAIRMENT OF COMPANY'S OBLIGATION. Subject to all of CIT's rights
as expressly provided in this Subordination Agreement, nothing contained in this
Subordination Agreement shall impair, as between the Company and the
Subordinating Creditor, the obligation of the Company, which is unconditional
and absolute, to pay the Subordinated Debt to the Subordinating Creditor as and
when all or any portion thereof shall become due and payable in accordance with
its terms or prevent the Subordinating Creditor, upon any default under the
Subordinated Debt, from exercising all rights, powers and remedies otherwise
provided therein or by applicable law.

     14. SUBROGATION. Until such time as all Senior Debt is paid in full and
this Subordination Agreement is terminated as herein provided the Subordinating
Creditor shall not assert or be entitled to any subrogation rights. Subject to
the prior sentence, if any payment or distribution to

                                      -5-
<PAGE>   66
which the Subordinating Creditor would otherwise have been entitled (but for the
provisions of this Subordination Agreement) shall have been turned over to CIT
or otherwise applied to the payment of the Senior Debt pursuant to the
provisions of this Subordination Agreement, then the Subordinating Creditor
shall be entitled to receive from CIT any payments or distributions received by
CIT in excess of the amount sufficient to pay all Senior Debt in full, and upon
such payment in full of the Senior Debt shall be subrogated (without any
representation by, or any recourse whatsoever to CIT) to all rights of CIT to
receive all further payments or distributions applicable to the Senior Debt
until the Subordinated Debt shall have been paid in full. For purposes of the
Subordinating Creditor's subrogation rights hereunder, payments to CIT with
respect to the Senior Debt which the Subordinating Creditor would have been
entitled to receive with respect to the Subordinated Debt but for the provisions
of this Subordination Agreement shall not, as between the Company, its creditors
(other than CIT) and the Subordinating Creditor, be deemed payments with respect
to the Senior Debt. CIT makes absolutely no representation or warranty
whatsoever in connection with such rights or Senior Debt, including without
limitation any representation or warranty as to the enforceability of the
Financing Agreement, the Senior Debt, or any lien upon Collateral therefor, or
the collectability of said Senior Debt.

     15. ENTIRE AGREEMENT. This Subordination Agreement embodies the whole
agreement of the parties and may not be modified except in writing. CIT's
failure to exercise any right hereunder shall not be construed as a waiver of
the right to exercise the same or any other rights at any other time and from
time to time thereafter, and such rights shall be considered as cumulative
rather than alternative. No knowledge of any breach or other non-observance by
the Subordinating Creditor of the terms and provisions of this Subordination
Agreement shall constitute a waiver thereof, nor a waiver of any obligations to
be performed by the Subordinating Creditor hereunder.

     16. WAIVER OF NOTICE. The Subordinating Creditor hereby waives any and all
demands, presentments or notices (other than notices specifically provided for
in this Subordination Agreement) to which it might otherwise be entitled
(including, without limitation, any and all notice of the creation or accrual of
any Senior Debt; of any extension, modification, or renewal of any of said
Senior Debt, and of CIT's reliance on this Subordination Agreement).

     17. NOTICES All notices and other communications hereunder shall be in
writing or by telex, telegram or telecopy, and shall be deemed to have been duly
made when delivered in person or sent by telex, telegram, telecopy, same day or
overnight carrier, or when deposited in the United States first class or
registered or certified mail return receipt requested, postage prepaid. Notices
shall be sent:

         If to the Subordinating Creditor:

         Mr. Stanley Desjardins
         2700 North Central Avenue, Suite 1000
         Phoenix, Arizona  85004
         Fax: 602.631.9005

                                      -6-
<PAGE>   67
         If to the Company:

         Simula, Inc.
         2700 North Central Avenue, Suite 1000
         Phoenix, Arizona  85004
         Attention: Mr. James Dodd, Chief Financial Officer
         Fax:  602.631.9005

         If to CIT:

         The CIT Group/Business Credit, Inc.
         300 South Grand Avenue, 3rd Floor
         Los Angeles, California  90071
         Attention: Mr. Thomas Hayes, Vice President, Regional Credit Manager
         Fax:  213.613.2501

     18. GENERAL PROVISIONS. When used in this Subordination Agreement all
pronouns shall, wherever applicable, be deemed to include the plural as well as
the masculine and feminine gender. This Subordination Agreement: shall inure to
the benefit of CIT, its successors and assigns and any parent, subsidiary or
affiliate of CIT; shall be binding upon the respective successors and assigns of
the Subordinating Creditor; and shall pertain to the Company and its successors
and assigns. This Subordination Agreement may be executed in any number of
counterparts, each of which when so executed shall be deemed an original, and
such counterparts shall together constitute but one and the same document.

     19. CHOICE OF LAW. THIS SUBORDINATION AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.

                                      -7-
<PAGE>   68
     IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Subordination Agreement effective as of the date above set forth.

                                    /s/ Stanley Desjardins
                                    ----------------------
                                       Stanley Desjardins

THE CIT GROUP/BUSINESS CREDIT, INC.

By
   ---------------------------
Title:

                                      -8-
<PAGE>   69
     The undersigned, the Company referred to in the foregoing Subordination
Agreement, hereby agrees to comply with all of the terms and provisions of said
Subordination Agreement in all respects. In the event of a breach by either the
Company or Subordinating Creditor in the performance of any of the terms of the
said Subordination Agreement, all of said Senior Debt shall, without notice or
demand, become immediately due and payable. The Company hereby covenants that it
will not make any payment on account of, recognize any forgiveness, assignment
or transfer of, nor give any security for, the Subordinated Debt while said
Subordination Agreement is in effect or until CIT's Senior Debt has been
satisfied in full and said Subordination Agreement is terminated as herein
provided.

                           SIMULA, INC.

                           By  /s/ James C. Dodd
                              ------------------
                           Title:

                                      -9-
<PAGE>   70
                                                                  Exhibit 10.41d

                                    GUARANTY

                                                        Dated: December 30, 1999

To:       THE CIT GROUP/BUSINESS CREDIT, INC.

Address:  300 South Grand Avenue, 3rd Floor
          Los Angeles, California 90071

Gentlemen:

     Reference is made to that certain Financing Agreement dated of even date
herewith, as amended (herein the "Agreement") between you and each of the
undersigned (herein each a "Guarantor" and collectively the "Guarantors"). Each
of the Guarantors hereby unconditionally jointly and severally guarantees and
agrees to be liable for the full and indefeasible payment and performance when
due of all now existing and future indebtedness, obligations or liabilities of
the other Guarantors to you, howsoever arising, whether direct or indirect,
absolute or contingent, secured or unsecured, whether arising under the
Agreement as now written or as amended or supplemented hereafter, or by
operation of law or otherwise, including, without limitation, all Obligations
(as defined in the Agreement). Further each of the Guarantors agrees to pay to
you on demand the amount of all expenses (including reasonable attorney's fees)
incurred by you in collecting or attempting to collect any of the Obligations
(as hereinafter defined), whether from such Guarantor, or from the other
Guarantors or any other obligor, or in realizing upon any collateral; and agrees
to pay any interest at the highest lawful rate on all amounts payable to you
hereunder, even if such amount cannot be collected from any other obligor. (All
of the aforementioned obligations, liabilities, expenses and interest are
hereinafter collectively called the "Obligations"). To the extent you receive
payment on account of Obligations guaranteed hereby, which payment is thereafter
set aside or required to be repaid by you in whole or in part, then, to the
extent of any sum not finally retained by you (regardless of whether such sum is
recovered from you by any Guarantor, its trustee, or any other party acting for,
on behalf of or through any Guarantor or its representative), the Guarantors'
obligation to you under this Guaranty, as amended, modified or supplemented,
shall remain in full force and effect (or be reinstated) until the Guarantors
have made payment to you therefor, which payment shall be due upon demand.

     This Guaranty is executed as an inducement to you to enter into or continue
the financing arrangement under the Agreement and to make the loans, advances,

                                       1
<PAGE>   71
extensions of credit or financial accommodations described therein, and is
executed in consideration of your doing or having done any of the foregoing.
Each of the Guarantors agrees that any of the foregoing shall be done or
extended by you in your sole discretion, and shall be deemed to have been done
or extended by you in consideration of and in reliance upon the execution of
this Guaranty, but that nothing herein shall obligate you to do any of the
foregoing.

     Notice of acceptance of this Guaranty, the making of loans or advances, or
the extension of credit under the Agreement, the amendment, execution or
termination of the Agreement or any other agreements in connection therewith,
and presentment, demand, protest, notice of protest, notice of non-payment and
all other notices to which the Guarantors may be entitled (whether under this
Guaranty or the Agreement), and your reliance on this Guaranty are hereby
waived. Each of the Guarantors also waives notice of: changes in terms or
extensions of the time of payment, the taking and releasing of collateral or
guarantees (including the release of any of the Guarantors) and the settlement,
compromise or release of any Obligations, and agree that, as to each of the
Guarantors, the amount of the Obligations shall not be diminished by any of the
foregoing. Each of the Guarantors also agrees that you need not attempt to
collect any Obligations from the other Guarantors or any other obligor or to
realize upon any collateral, but may require the Guarantors to make immediate
payment of Obligations to you when due or at any time thereafter. You shall not
be liable for failure to collect Obligations or to realize upon any collateral
or security therefor, or any part thereof, or for any delay in so doing, nor
shall you be under any obligation to take any action whatsoever with regard
thereto.

     This Guaranty is absolute, unconditional and continuing, regardless of the
validity, regularity or enforceability of any of the Obligations or the fact
that a security interest or lien in any collateral or security therefor may not
be enforceable by you or may otherwise be subject to equities or defenses or
prior claims in favor of others or may be invalid or defective in any way and
for any reason, including any action, or failure to act, on your part. Payment
by the Guarantors shall be made to you at your office from time to time on
demand as Obligations become due, and one or more successive or concurrent
actions may be brought hereon against the Guarantors (or any one or more of
them) either in the same action or in separate actions. In the event any claim
or action, or action on any judgment, based on this Guaranty, is made or brought
against the Guarantors, each of the Guarantors agrees not to assert against you
any set-off or counterclaim which the other Guarantors may have, and, further,
each of the Guarantors agrees not to deduct, set-off, or seek to counterclaim
for or recoup, any amounts which are or may be owed by you to such Guarantor, or
for any loss of contribution from any other guarantor. Furthermore, in any
litigation based on the Guaranty in which you and any of the Guarantors shall be
adverse parties, the Guarantors hereby waive trial by jury and waive the right
to interpose any defense

                                       2
<PAGE>   72
based upon any Statute of Limitations or any claim of laches and waive the
performance of each and every condition precedent to which the Guarantors might
otherwise be entitled by law. Each of the Guarantors hereby consents to the in
personam jurisdiction of the courts of the State of California. In the event
that you bring any action or suit in any court of record of New York State or
the Federal Government to enforce any or all liabilities of the Guarantors
hereunder, service of process may be made on the Guarantors by mailing a copy of
the summons to the Guarantors at the address below set forth.

     All sums at any time to the credit of the Guarantors and any property of
the Guarantors on which you at any time have a lien or security interest, or of
which you at any time have possession, shall secure payment and performance of
all Obligations and any and all other obligations of the Guarantors to you
however arising. The Guarantors shall have no right of subrogation,
indemnification or recourse to any Obligations or collateral or guarantees
therefor, or to any assets of any of the Guarantors.

     This Guaranty may be terminated as to any one of the Guarantors only as of
any Anniversary Date (as defined in the Agreement) and then only upon actual
receipt by one of your officers of at least ninety (90) days prior written
notice of termination sent by registered or certified mail; provided however,
that any of the Guarantors so terminating this Guaranty shall remain bound
hereunder, and this Guaranty shall continue in full force and effect, with
respect to any and all Obligations created or arising prior to the effective
date of such termination and with respect to any and all extensions, renewals or
modifications of said pre-existing Obligations. Termination as to any one of the
Guarantors shall not affect the obligations of any of the other Guarantors, nor
relieve the one giving such notice from liability for any post termination
collection expenses or interest. This is a continuing agreement and written
notice as above provided shall be the only means of termination, notwithstanding
the fact that for certain periods of time there may be no Obligations owing to
you under the Agreement. Guarantors acknowledge and agree that termination of
this Guaranty is an Event of Default under and as defined in the Agreement.

     Your books and records showing the loan account(s) maintained under the
Agreement shall be admissible in evidence in any action or proceeding as prima
facie proof of the items therein set forth. Your monthly statements rendered
under the Agreement shall be binding upon the Guarantors (whether or not the
Guarantors received copies thereof) and shall constitute an account stated
unless you shall have received a written statement of the exceptions thereto
within thirty (30) days after the statement was mailed by you.

     Each of the Guarantors expressly waives any and all rights of subrogation,

                                       3
<PAGE>   73
reimbursement, indemnity, exoneration, contribution or any other claim which it
may now or hereafter have against the other Guarantors or any other person
directly or contingently liable for the Obligations guaranteed hereunder, or
against or with respect to any Guarantors property (including, without
limitation, property collateralizing its Obligations to you) arising from the
existence or performance of this Guaranty.

     Each of the Guarantors consents and agrees that, without notice to or by
such Guarantor and without affecting or impairing in any way the obligations or
liability of such Guarantor hereunder, you may, from time to time, exercise any
right or remedy you may have with respect to the Obligations or any property
securing any or all of the Obligations or any guaranty thereof, including
without limitation, judicial foreclosure, nonjudicial foreclosure, exercise of a
power of sale, and taking a deed, assignment or transfer in lieu of foreclosure
as to any such property, and each Guarantor expressly waives any defense based
upon the exercise of any such right or remedy, notwithstanding the effect
thereof upon any of such Guarantor's rights, including without limitation, any
destruction of Guarantor's right of subrogation against any Borrower under the
Agreement and any destruction of such Guarantor's right of contribution or other
right against any other guarantor of any or all of the Obligations or against
any other person, whether by operation of Sections 580a, 580d or 726 of the
California Code of Civil Procedure, or any comparable provisions of the laws of
any other jurisdiction, or any other statutes or rules of law now or hereafter
in effect, or otherwise. Pursuant to Section 2856 of the California Civil Code,
each Guarantor waives all rights and defenses that such Guarantor may have
because the Obligations are secured by real property. This means, among other
things: (a) you may collect from any Guarantor without first foreclosing on any
real or personal property collateral pledged by any Borrower or any other
guarantor; and (b) if you forecloses on any real property collateral pledged by
any Borrower or any other guarantor: (i) the amount of the Obligations may be
reduced only by the price for which that collateral is sold at the foreclosure
sale, even if the collateral is worth more than the sale price; and (ii) you may
collect from such Guarantor even if you, by foreclosing on such real property
collateral, has destroyed any right such Guarantor may have to collect from any
Borrower or such other guarantor. This is an unconditional and irrevocable
waiver of any rights and defenses each Guarantor may have because the
Obligations are secured by real property. These rights and defenses include, but
are not limited to, any rights or defenses based upon Section 580a, 580b, 580d,
or 726 of the California Code of Civil Procedure.

     This Guaranty embodies the whole agreement of the parties and may not be
modified except in writing, and no course of dealing between you and any of the
Guarantors shall be effective to change or modify this Guaranty. Your failure to
exercise any right hereunder shall not be construed as a waiver of the right to
exercise the same or any other right at any other time and from time to time
thereafter, and

                                       4
<PAGE>   74
such rights shall be considered as cumulative rather than alternative. No
knowledge of any breach or other nonobservance by any of the Guarantors of the
terms and provisions of this Guaranty shall constitute a waiver thereof, nor a
waiver of any obligations to be performed by the Guarantors hereunder.

     This Guaranty may be assigned by you and shall be for your benefit and for
the benefit of any of your assignees or transferees, and shall cover any
Obligations owed to you at the time of assignment or transfer as well as any and
all future Obligations, loans, advances or extensions of credit made under the
Agreement by, or otherwise owed to, such assignee or transferee.

     This instrument is executed and given in addition to, and not in
substitution, reduction, replacement, or satisfaction of, any other endorsements
or guarantees of the Obligations, now existing or hereafter executed by any or
all of the Guarantors or others in your favor.

     When used in this agreement, all pronouns shall, wherever applicable, be
deemed to include the singular and plural as well as the masculine, feminine,
and neuter genders. This agreement shall inure to the benefit of you, your
successors and assigns and any parent, subsidiary or affiliate of yours; shall
be binding jointly and severally upon the Guarantors and upon the respective
heirs, executors, administrators, successors and assigns of each of the
Guarantors.

     This Guaranty may be executed in any number of counterparts, each of which
when so executed shall be deemed an original and such counterparts shall
together constitute but one and the same document.

     This Guaranty shall be governed by and construed in accordance with the
laws of the State of California.

     IN WITNESS WHEREOF the Guarantors have executed and delivered this Guaranty
effective as of the date above set forth.

SIMULA, INC.

By   /s/ James C. Dodd
     -----------------
Title: Executive Vice President and CFO
       --------------------------------

                                       5
<PAGE>   75
AIRLINE INTERIORS, INC.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

ARTCRAFT INDUSTRIES CORP.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

SIMULA TRANSPORTATION
EQUIPMENT CORPORATION
(formerly known as INTAERO INC.)

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

INTERNATIONAL CENTER FOR
SAFETY EDUCATION, INC.

By   /s/ James C. Dodd
     -----------------
Title: Treasurer
       ---------

SIMULA AUTOMOTIVE SAFETY
DEVICES, INC.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

                                       6
<PAGE>   76
SIMULA COMPOSITES
CORPORATION

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

SIMULA POLYMER SYSTEMS, INC.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

SIMULA SAFETY SYSTEMS, INC.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

SIMULA TECHNOLOGIES, INC.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

SIMULA AUTOMOTIVE SAFETY
DEVICES, LIMITED

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

INTAERO LTD.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

                                       7
<PAGE>   77
CCEC CAPITAL CORP.

By   /s/ James C. Dodd
    ------------------
Title: Treasurer
       ---------

                                       8
<PAGE>   78
                                                                  Exhibit 10.41e

                             INTERCREDITOR AGREEMENT

     THIS INTERCREDITOR AGREEMENT is entered into as of the 30th day of
December, 1999 (this "Agreement"), by and between LEVINE LEICHTMAN CAPITAL
PARTNERS II, L.P., a California limited partnership ("Term Lender"), and THE CIT
GROUP/ BUSINESS CREDIT, INC. ("Revolving/Term Lender").

                                 R E C I T A L S

     A. SIMULA, INC., an Arizona corporation ("Simula"), Simula's subsidiaries
(such subsidiaries, together with Simula, being collectively referred to as
"Debtors," and Simula or any such subsidiary being individually referred to as
"Debtor") and Term Lender are parties to the Securities Purchase Agreement dated
of even date herewith (as amended, supplemented or otherwise modified from time
to time, the "Securities Purchase Agreement") pursuant to which, on the date
hereof, Debtors are jointly and severally issuing and selling to Term Lender,
and Term Lender is purchasing from Debtors, Secured Senior Notes dated of even
date herewith in the aggregate principal amount of $20,000,000 (the "Senior Term
Notes"), and Simula is issuing and selling to the Purchaser, and the Purchaser
is purchasing from Simula, a Warrant to Purchase 850,000 Shares of Common Stock
of Debtor (the "Warrant"), all on the terms and subject to the conditions
contained in the Securities Purchase Agreement.

     B. In addition, concurrently with the execution of this Agreement,
Revolving/Term Lender is providing to Debtors a senior, secured revolving and
term credit facility in the aggregate principal amount of up to $22,000,000
pursuant to the Financing Agreement dated of even date herewith (the
"Revolving/Term Loan Agreement") among Revolving/Term Lender and Debtors.

     C. Revolving/Term Lender and Term Lender are each unwilling to enter into
their respective financing transactions with Debtors unless the other enters
into this Agreement.

     D. Term Lender hereby acknowledges and affirms that Revolving/Term Lender's
financial accommodations to Debtors constitute valuable consideration to Term
Lender. Revolving/Term Lender hereby acknowledges and affirms that Term Lender's
financial accommodations to Debtors also constitute valuable consideration to
Revolving/Term Lender.

                                A G R E E M E N T

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereby agree as
follows:

                                       1
<PAGE>   79
     1.  Definitions. In addition to the capitalized terms defined elsewhere in
this Agreement, the following capitalized terms shall have the following
respective meanings (such meanings to be equally applicable to the singular and
the plural forms thereof):

         "Affiliate" shall mean, with respect to any specified Person, (i) any
other Person that, directly or indirectly, owns or controls, or has the right to
acquire, five percent (5%) or more of the Capital Stock of such specified
Person, or (ii) any other Person that, directly or indirectly, controls, is
controlled by, is under direct or indirect common control with, such specified
Person or any Affiliate of such specified Person.

         "Collateral" shall mean all assets and property of Debtors or any of
its or their Subsidiaries, whether real or personal, tangible or intangible, now
existing or hereafter acquired, that is or may at any time be or become subject
to a Lien in favor of Revolving/Term Lender to secure the Revolving/Term
Indebtedness.

         "Foreclosure Remedy" shall mean the right to enforce a lien or security
interest through foreclosure proceeding pursuant to chapter 5 of Article 9 of
the Uniform Commercial Code, through judicial or non-judicial foreclosure with
respect to real property collateral security, or through any other exercise of
rights under a lien or through a security interest against collateral by the
holder of the lien or security interest.

         "Insolvency Proceeding" shall mean any liquidation, bankruptcy,
receivership, assignment for the benefit of creditors, or any other judicial,
equitable, or administrative action or proceeding commenced by or against any
Person or any of its assets or property under federal or state law and involving
the adjustment, restructuring, or liquidation of any or all of the assets,
obligations, business, or property of such Person.

         "Lien" means, with respect to any assets or property, any security
deed, mortgage, deed to secure debt, deed of trust, lien, pledge, assignment,
charge, security interest, title retention agreement, negative pledge, levy,
execution, seizure, attachment, garnishment, or other encumbrance of any kind in
respect of such property, whether or not choate, vested, or perfected.

         "Person" shall mean any individual, partnership, joint venture, trust,
unincorporated organization, association, corporation, limited liability
company, limited liability partnership, or governmental (whether federal, state,
local, foreign, or otherwise, including any instrumentality, division, agency,
body or department thereof) or other entity.

         "Pledged Stock" shall mean the capital stock of any Subsidiary of any
Debtor that constitutes Collateral.

         "Proceeds" shall mean any cash, securities, or other property received
upon the sale, transfer, lease or other disposition or collection of any of the
Collateral, whether pursuant to foreclosure, voluntary disposition, sale or
other disposition or collection in the ordinary course of business, or
otherwise.

                                       2
<PAGE>   80
         "Revolving/Term Indebtedness" shall mean all indebtedness, liabilities
and other obligations of Debtors and any Revolving/Term Loan Guarantor, now
existing or hereafter arising under the Revolving/Term Loan Agreement and the
other Revolving/Term Loan Documents, as each may from time to time be amended,
supplemented, extended, renewed, modified or restated in accordance with the
terms of this Agreement, whether for principal, premium, interest, fees,
expenses, indemnities or otherwise.

         "Revolving/Term Loan Default" shall mean a "Default" as defined in the
Revolving/Term Loan Agreement.

         "Revolving/Term Loan Documents" shall mean (a) the Revolving/Term Loan
Agreement, (b) the Guaranty dated of even date herewith executed by the Debtors
in favor of Revolving/Term Lender, and (c) any other agreements, security
agreements, pledge agreements, instruments and documents executed on the date
hereof and delivered to, or in favor of, Revolving/Term Lender in connection
therewith.

         "Revolving/Term Loan Event of Default" shall mean an "Event of Default"
as defined in the Revolving/Term Loan Agreement.

         "Revolving/Term Loan Guarantor" shall mean any Person which has
guaranteed the Revolving/Term Loan.

         "Senior Indebtedness" shall mean the Term Loan Indebtedness, the
Revolving/Term Loan Indebtedness or both, as applicable.

         "Senior Lender" shall mean Term Lender, Revolving/Term Lender or both,
as applicable.

         "Senior Loan Documents" shall mean the Term Loan Documents or the
Revolving/Term Loan Documents, as applicable.

         "Standstill Notice" shall mean a written notice furnished by
Revolving/Term Lender to Term Lender that a Revolving/Term Loan Event of Default
has occurred and is continuing and containing in all capital letters the
following text: "THIS IS A STANDSTILL NOTICE UNDER THE TERMS OF THE
INTERCREDITOR AGREEMENT DATED DECEMBER 30, 1999."

         "Standstill Period" shall mean the period commencing with the date of
receipt by Term Lender of a Standstill Notice and ending on the earliest to
occur of the following:

         (a) Payment in full, in cash, and satisfaction of all the
Revolving/Term Indebtedness;

                                       3
<PAGE>   81
         (b) Acceleration of all or any portion of the Revolving/Term
Indebtedness or any exercise of any Foreclosure Remedy by Revolving/Term Lender;

         (c) The initiation of any Insolvency Proceeding involving Debtor;

         (d) The end of the 135-day period starting with the date of receipt of
the Standstill Notice by Term Lender; or

         (e) The date which is five (5) days following the date of receipt by
Debtors of written notice from Revolving/Term Lender of its intent to terminate
or suspend its obligation to Debtor to make further advances or loans or allow
the incurrence of letter of credit obligations.

         "Term Indebtedness" shall mean all indebtedness, liabilities and other
obligations of Debtors and any Term Loan Guarantor, now existing or hereafter
arising under the Term Loan Agreement and the other Term Loan Documents, as each
may from time to time be amended, supplemented, extended, renewed, modified or
restated in accordance with the terms of this Agreement, whether for principal,
premium, interest, fees, expenses, indemnities or otherwise.

         "Term Loan Default" shall mean a "Default" as defined in the Securities
Purchase Agreement.

         "Term Loan Documents" shall mean (i) the Securities Purchase Agreement,
(ii) the Senior Term Notes, (iii) the Guaranty; (iv) the Security Agreement
among Debtors and Term Lender, (v) the security agreement with respect to
intellectual property of even date herewith between Debtors and Term Lender,
(vi) the Stock Pledge Agreement of even date herewith between Debtors and Term
Lender, (vii) such other documents, agreements and instruments as are executed
and delivered in connection with the foregoing.

         "Term Loan Event of Default" shall mean an "Event of Default" as
defined in the Securities Purchase Agreement.

         "Term Loan Guarantor" shall mean any Person which has guaranteed the
Senior Term Notes.

         "Term Loan Payments" shall mean all payments of any amounts due
pursuant to the Senior Term Notes or any other Term Loan Document, whether of
principal, interest or otherwise.

     2.  No Subordination of Indebtedness. The Revolving/Term Indebtedness and
the Term Indebtedness shall rank pari passu in right to payment with one another
and neither shall be subordinate in right of payment to the other; provided,
however, in no event shall such pari passu right to payment affect the priority
of Revolving/Term Lender as against Term Lender with respect to the Collateral
and the Proceeds as hereinafter set forth.

                                       4
<PAGE>   82
     3. Priority of Security Interests and of Rights to Proceeds; Release of
Liens; Insurance Proceeds.

         (a) Notwithstanding the timing, order or manner of the grant or
perfection of any of their respective Liens, the Liens now or hereafter held by
Revolving/Term Lender in any Collateral and Proceeds to secure the
Revolving/Term Indebtedness shall be senior and prior to any Liens now or
hereafter held by or for the benefit of Term Lender in or to any of the
Collateral and Proceeds. The priorities set forth in this Agreement shall be
effective notwithstanding anything to the contrary contained in the
Revolving/Term Loan Documents, the Term Loan Documents, or any plan of
reorganization or similar document filed by or on behalf of any Debtor or any
Affiliate of any Debtor under any Insolvency Proceeding of any Debtor, including
any prior perfection of a Lien under the provisions of the Uniform Commercial
Code or any other applicable laws of any jurisdiction, or the existence of any
present or future filing of financing statements under the Uniform Commercial
Code or other applicable laws of any jurisdiction in which such filing has been
made, or any other recordation or filing of any document.

         (b) Revolving/Term Lender and Term Lender acknowledge and agree that,
pursuant to the Revolving/Term Loan Documents all of the cash flow of Debtors is
administered by Revolving/Term Lender, is derived from the sale of inventory and
other Collateral and the collection of accounts receivable (also constituting
Collateral), is deposited into deposit accounts which are also Collateral, and,
therefore, all of the foregoing constitutes Collateral and Proceeds. As
Collateral and Proceeds, such cash flow and other assets are all subject to the
rights of Revolving/Term Lender as the holder of the senior and prior Lien in
the Collateral and the Proceeds, and, pursuant to the administration of the
Revolving/Term Indebtedness under the terms of the Revolving/Term Loan
Documents, all such cash flow and Proceeds are paid over and delivered, or
caused to be paid over and delivered, by Debtors to Revolving/Term Lender for
application against the Revolving/Term Indebtedness, subject to the Debtors'
right to repay and reborrow Revolving/Term Indebtedness under the Revolving/Term
Loan Documents.

         (c) In connection with: (i) any sale or other disposition of assets
other than the capital stock of a Debtor or all or a substantial portion of the
assets of a Debtor (collectively, a "Non-Material Asset Sale"); or (ii) the sale
or other disposition of the capital stock of a Debtor or all or a substantial
portion of the assets of a Debtor (a "Material Asset Sale") occurring after the
declaration by Revolving/Term Lender of a Revolving/Term Lender Event of Default
and during the continuance thereof, arising from or associated with the
existence of overadvances under (and as defined in Section 3(1) of) the
Revolving/Term Loan Agreement (hereinafter "Overadvances"), the commencement of
an Insolvency Proceeding by any Debtor, or any similar material Revolving/Term
Lender Event of Default, or the initiation of a Foreclosure Remedy against any
of the Collateral by Revolving/Term Lender, then, in the case of either of the
foregoing clauses (i) or (ii), if Revolving/Term Lender releases any of its
Liens on any part of the Collateral in connection with any such sale or other
disposition, Term

                                       5
<PAGE>   83
Lender agrees that it shall unconditionally and simultaneously release its liens
thereon and Term Lender shall execute and deliver to Revolving/Term Lender or
the Debtors, as applicable, such termination statements, releases and other
documents as Revolving/Term Lender or the Debtors may reasonably request to
effectuate such release; provided, however it is expressly understood and agreed
that the Lien granted to Term Lender shall, subject to all of the provisions of
this Agreement, continue in the Proceeds arising from any such sale or other
disposition if such Proceeds are not applied to the Revolving/Term Indebtedness
in accordance with the Revolving/Term Loan Documents, subject to the Debtors'
right to repay and reborrow Revolving/Term Indebtedness under the Revolving/Term
Loan Documents; provided, further, however, it is further understood and agreed
that any such release of Lien by Term Lender shall not be deemed to be a waiver
of or consent to any violation or breach of any provision of the Term Loan
Documents caused by any such sale or other disposition of such Collateral and
Term Lender shall continue to be entitled to all of its rights and remedies to
enforce its rights to payments of the Term Indebtedness under the Term Loan
Documents. Notwithstanding the foregoing provisions of this subsection (c), in
connection with any sale or disposition of either Non-Material Assets or
Material Assets at a time when no Revolving/Term Lender Event of Default has
occurred and is continuing, the Revolving/Term Lender's term loan under the
Revolving/Term Loan Agreement as of the date hereof has been repaid, or will be
repaid from the Proceeds of such sale or disposition, in full, in cash, and the
Term Lender's LLCP Term Loan A Debt (as defined in the Revolving/Term Loan
Agreement) has not been repaid in full, in cash, then if Term Lender releases
any of its Liens on any part of the Collateral in connection with any such sale
or disposition thereof, Revolving/Term Lender agrees that it shall
unconditionally and simultaneously release its liens thereon and consent thereto
as not constituting a Revolving/Term Loan Event of Default, and Revolving/Term
Lender shall execute and deliver to Term Lender or the Debtors, as applicable,
such termination statements, releases and other documents as Term Lender or the
Debtors may reasonably request to effectuate such release; provided that, in
light of the relative Lien priorities, the Proceeds of any such sale or
disposition shall be applied first to Revolving/Term Lender to repay such of
Revolving/Term Lender's revolving loan advances as are then outstanding as were
advanced against the assets being sold or disposed of, second to Revolving/Term
Lender in repayment of the its term loan, third to Term Lender in repayment of
the LLCP Term Loan A Debt, and finally to Revolving/Term Lender for application
against the Revolving/Term Indebtedness , subject to the Debtors' right to repay
and reborrow Revolving/Term Indebtedness under the Revolving/Term Loan
Documents.

         (d) Unless and until the Revolving/Term Indebtedness is paid in full,
in cash, Revolving/Term Lender shall have the sole and exclusive right, subject
to the rights of the Debtors under the Revolving/Term Loan Documents, to adjust
settlement of claims under any insurance policy covering the Collateral in the
event of any loss thereunder and to approve any award granted in any
condemnation or similar proceeding affecting the Collateral, and all payments of
claims and awards are Proceeds hereunder. Notwithstanding the foregoing
provisions of this subsection (d), with respect to the key-man life insurance
policies respecting certain officers, directors and principals of the Debtors,
Term Lender shall have the sole and

                                       6
<PAGE>   84
exclusive right to settle and adjust any claims and to receive proceeds of such
policies for application against the Term Indebtedness.

     4. Standstill. During a Standstill Period, Term Lender shall not have any
right to enforce any Liens in, foreclose, levy or execute upon, or attach any
Collateral, whether by private or judicial action or otherwise. The preceding
sentence is only for the benefit of Revolving/Term Lender and, as between Term
Lender and Debtors or any Term Loan Guarantor, shall not constitute a waiver by
Term Lender of any default or event of default or of its rights, powers or
remedies with respect to Debtor or any Term Loan Guarantor.

     5. Consent to Liens. Revolving/Term Lender hereby consents to the grant or
creation of Liens on the Collateral and any other assets of Debtors in favor of
Term Lender under the Term Loan Documents and agrees that the grant, perfection,
maintenance or existence of such Liens does not and shall not constitute a
Revolving/Term Loan Default or a Revolving/Term Loan Event of Default. In
addition, Term Lender hereby consents to the grant or creation of Liens on the
Collateral in favor of Revolving/Term Lender under the Revolving/Term Loan
Documents, and agrees that the grant or existence of such Liens does not and
shall not constitute a Term Loan Default or a Term Loan Event of Default.

     6. Standstill Notices. Only one (1) Standstill Notice may be given within
any 365-day period, regardless of the number of Revolving/Term Loan Events of
Default which occur within or outside of any Standstill Period.

     7. Amendment of Documents.

         (a) The Revolving/ Term Loan Documents shall not be amended without the
prior written consent of Term Lender (which consent will not be unreasonably
withheld) for (i) a change in the amount of the "Line of Credit" (as defined in
the Revolving/ Term Loan Documents), (ii) an amendment of the definitions of
"Availability," "Availability Reserve," "Eligible Accounts Receivable" or
"Eligible Inventory," in each case as set forth in the Revolving/ Term Loan
Documents on the date hereof (or any of the definitions of the defined terms
used in such definitions), (iii) an amendment to increase the rate of interest
set for Revolving Loans pursuant to the Revolving/ Term Loan Documents or the
Default Rate of Interest (as each term is defined in the Revolving/ Term Loan
Documents on the date hereof (provided, that the foregoing shall not apply to
the application of the Default Rate of Interest in accordance with the
Revolving/ Term Loan Documents as in effect on the date hereof); (iv) a
reduction of the maturity date of any payment of principal or interest, (v) an
extension of the final maturity date of the Revolving/Term Indebtedness of three
years from the date hereof other than up to two extensions of 90 days each if
Debtors shall have failed to arrange for refinancing or other repayment in full,
in cash, of the Revolving/Term Indebtedness by such date, (vi) an amendment of
the Revolving/ Term Loan Documents as in effect as of the date hereof to either
add or amend an Event of Default (as defined in the Revolving/ Term Loan
Documents) (or any of the definitions used therein) to make, or have the effect
of making, such Event of Default more restrictive on the business or operations
of the Debtors; or (vii) an

                                       7
<PAGE>   85
amendment to the Revolving/ Term Loan Documents as in effect on the date hereof
to amend any of the financial covenants set forth therein (or any of the
definitions used therein). Revolving/Term Lender shall not make any voluntary
Overadvances under the Revolving/Term Loan Documents in excess of $1,700,000
other than Overadvances, in Revolving/Term Lender's reasonable business
judgment, necessary to pay the actual, necessary costs and expenses of
preserving the Collateral (and Revolving/Term Lender shall give Term Lender
written notice with respect to any such costs and expenses as soon and as
frequently as practicable).

         (b) The Term Loan Documents shall not be amended without obtaining the
prior written consent of Revolving/Term Lender (which consent will not be
unreasonably withheld) for (i) an amendment to increase the rate of interest set
for the Term Indebtedness (provided, that the foregoing shall not apply to the
application of the Default Rate in accordance with the Term Loan Documents),
(ii) any increase in the principal amount of the Term Indebtedness in excess of
$2,000,000 (which additional amount shall be permitted only if the maturity date
of such additional amount is no earlier than the maturity date of the Term
Indebtedness under the Term Loan Documents in effect as of the date hereof) or
any installment of principal due thereunder, (iii) reduction of the maturity
date of any payment of principal or interest, (iv) providing for any additional
financial covenants or events of default or making more restrictive any existing
covenants or events of default applicable to the Debtors. In addition, Term
Lender will not request or obtain any additional collateral or security for the
Term Indebtedness except to the extent that Revolving/Term Lender has been
offered a senior Lien to secure the Revolving/Term Indebtedness on such
collateral in writing.

     8.  Senior Indebtedness Owed Only to Senior Lenders. Each Senior Lender
represents and warrants that it has not previously assigned any interest in its
Senior Indebtedness or Senior Loan Documents, that no other Person owns an
interest in any of such Senior Indebtedness or Senior Loan Documents (whether as
joint holders, participants or otherwise), and that such entire Senior
Indebtedness is owing only to such Senior Lender.

     9.  Pledged Stock. As an accommodation only, Revolving/Term Lender hereby
agrees that it shall hold the Pledged Stock for its own benefit and for the
benefit of Term Lender solely, as to Term Lender, for the purpose of perfecting
Term Lender's security interest therein, and, upon full and final payment, in
cash, of the Revolving/Term Indebtedness, Revolving/Term Lender shall deliver to
Term Lender any and all certificates or other documents representing such
Pledged Stock, or as otherwise directed by Term Lender or order of any court. It
is expressly acknowledged and agreed that Revolving/Term Lender may deal with
such Pledged Stock in accordance with its usual practices in the ordinary course
of business and shall adhere to the same standards of conduct as would be the
case if there were no subordinate Liens thereon, and Revolving/Term Lender shall
have no liability to Term Lender with respect to Revolving/Term Lender's
possession of such pledged stock except for acts or omissions of Revolving/Term
Lender which are grossly negligent or constitute willful misconduct.

                                       8
<PAGE>   86
     10. Reinstatement. The provisions of this Agreement shall continue to be
effective or be reinstated, and the Revolving/Term Indebtedness shall not be
deemed to be paid in full, in cash, as the case may be, if at any time any
payment of Revolving/Term Indebtedness is rescinded or avoided, or must
otherwise be returned by Revolving/Term Lender pursuant to any Insolvency
Proceeding or otherwise, all as though such payment had not been made.

     11. Nonimpairment. No right of either party enforce the provisions hereof
shall at any time in any way be prejudiced or impaired by any act or failure to
act by the other party or Debtors or any guarantor, or any noncompliance by
Debtors or by the other Person with the terms and provisions and covenants
herein contained, regardless of any knowledge thereof that the party may have or
with which the party may otherwise be charged.

     12. Instrument Legends. Each Senior Lender shall forthwith inscribe on the
face of any promissory note and any other instrument evidencing its Senior
Indebtedness or any portion thereof a legend conspicuously indicating that it is
subject to the terms of this Agreement, and shall forthwith deliver copies
thereof to the other Senior Lender. For purposes of this Section 12, the
following legend (or a substantially similar legend) shall be acceptable:

     "PAYMENT OF THE INDEBTEDNESS EVIDENCED BY THIS SECURITY, INCLUDING
     PRINCIPAL, PREMIUM, IF ANY, AND INTEREST, IS SUBJECT TO THE TERMS AND
     CONDITIONS OF AN INTERCREDITOR AGREEMENT DATED OF EVEN DATE HEREWITH
     BETWEEN LEVINE LEICHTMAN CAPITAL PARTNERS II, L.P., AS THE INITIAL
     HOLDER OF THIS SECURITY, AND THE CIT GROUP/ BUSINESS CREDIT, INC. A
     COPY OF SUCH INTERCREDITOR AGREEMENT MAY BE OBTAINED FROM THE ISSUER
     UPON REQUEST."

     13. Additional Remedies. If either party violates any of the terms of this
Agreement, in addition to any remedies in law, at equity or otherwise, the other
party may restrain such violation in any court of law or equity and may
interpose this Agreement as a defense in any action by the violating party.

     14. Certain Waivers.

         (a) All Senior Indebtedness shall be deemed to have been made or
incurred in reliance upon the terms and other provisions of this Agreement. Each
Senior Lender waives all notice of the acceptance by the other Senior Lender of
the provisions of this Agreement and agrees that the other Senior Lender has
made no representations or warranties with respect to the legality, validity,
enforceability, collectability or perfection of any Senior Indebtedness or any
liens held by it in connection therewith.

                                       9
<PAGE>   87
         (b) Each Senior Lender shall be entitled to manage and supervise its
loans or other financial accommodations to Debtors in accordance with applicable
laws and its normal business practices, modified from time to time as it deems
appropriate under the circumstances, without regard to the existence of any
rights that the other Senior Lender may now or hereafter have in or to any
Collateral, except that each Senior Lender shall comply with the terms of this
Agreement.

         (c) No Senior Lender shall have any liability to the other Senior
Lender as a result of any and all lawful actions not in breach of this Agreement
that such Senior Lender takes or omits to take (including actions with respect
to the creation, perfection or continuation of its liens, actions with respect
to the occurrence of a default or event of default under its Senior Loan
Documents, actions with respect to the foreclosure, sale, release or failure to
realize upon, any Collateral (except that each Senior Lender shall deal with any
Collateral in its possession in accordance with its usual practices in the
ordinary course of business and shall have no liability to the other except for
acts or omissions of which are grossly negligent or constitute willful
misconduct), and actions with respect to the collection of any claim for all or
any part of its Senior Indebtedness from any account debtor of Debtor or any
other Person). Without limiting the generality of the foregoing, Term Lender
waives any otherwise valid legal or equitable right (i) to require
Revolving/Term Lender to marshal any portion of the Collateral or otherwise to
seek satisfaction from any particular property of Debtor or from any other
Person, (ii) to oppose any motion or application by Revolving/Term Lender or
Debtor to allow use of cash collateral, provide adequate protection of
Revolving/Term Lender's interest in the Collateral, or grant relief from
automatic stay to permit Revolving/Term Lender to enforce its rights and
remedies with respect to the Collateral, or (iii) otherwise to prohibit, delay,
control, or limit in any manner the sale or other disposition by Revolving/Term
Lender of any portion of the Collateral.

     15. Other Waivers. No waiver shall be deemed to be made by Revolving/Term
Lender or Term Lender of any of their respective rights hereunder unless it is
in writing signed by the waiving party. Each such waiver shall be a waiver only
with respect to the specific instance involved and shall in no way impair the
rights of the waiving party or the obligations of the other party to the waiving
party in any other respect at any other time.

     16. Information Concerning Financial Condition. Except as otherwise
expressly provided for in this Agreement, each Senior Lender acknowledges that
the other Senior Lender has no obligation to keep it informed of the financial
condition of Debtors or of other circumstances bearing upon the risk of
nonpayment of the Revolving/Term Indebtedness or Term Indebtedness. Each of
Revolving/Term Lender and Term Lender hereby agree that the other shall have no
duty to advise it of information known to it regarding such condition or any
such circumstances. In the event Revolving/Term Lender or Term Lender (the
"providing party"), in its sole discretion, undertakes, at any time or from time
to time, to provide any such information to the other (the "receiving party"),
the providing party shall be under no obligation to (a) provide any such
information to the receiving party on any subsequent occasion, (b) undertake any
investigation not a part of its regular business routine, or

                                       10
<PAGE>   88
(c) disclose any information that, pursuant to its commercial finance practices,
the providing party wishes to maintain as confidential. Notwithstanding the
foregoing, this paragraph is subject to the notices required by Section 18.

     17. Third-Party Beneficiaries; Termination.

         (a) This Agreement is solely for the benefit of Revolving/Term Lender,
Term Lender and their respective successors and permitted assigns, and neither
Debtor nor any other Person is intended to be a third-party beneficiary
hereunder or to have any right, benefit, priority or interest under, or because
of the existence of, or to have any right to enforce, this Agreement. This
Agreement is intended solely for the purpose of defining the relative rights of
Revolving/Term Lender and Term Lender and is not intended to or will impair, as
between Debtor, any Revolving/Term Loan Guarantor, any Term Loan Guarantor and
their respective creditors other than Revolving/Term Lender and Term Lender, the
respective obligations, which are absolute and unconditional, of Debtor, the
Revolving/Term Loan Guarantors and the Term Loan Guarantors to Revolving/Term
Lender or Term Lender.

         (b) Revolving/Term Lender and Term Lender shall have the right to
modify or terminate this Agreement at any time without notice to or approval of
Debtor or any other Person upon the written consent of Term Lender and
Revolving/Term Lender. In addition, Term Lender may terminate this Agreement
upon the full payment and satisfaction of the Revolving/Term Indebtedness and
termination of the Revolving/Term Loan Documents.

     18. Notices.

         (a) Revolving/Term Lender shall use it best efforts to give prompt
written notice to Term Lender of (i) the declaration by Revolving/Term Lender of
any Revolving/Term Loan Event of Default or (ii) the expiration of any
Standstill Period (including notice of the issuance of the notice to Debtors
under clause (e) of the definition of Standstill Period set forth hereinabove);
provided that any failure by Revolving/Term Lender to provide such notice shall
not affect Revolving/Term Lender's rights arising from any such Revolving/Term
Loan Event of Default, and shall not result in any liability to Term Lender
other than liability for any such failure where such failure was a result of
gross negligence or wilful misconduct (and an mere inadvertent omission to give
such notice shall not be deemed to be either gross negligence or willful
misconduct). Term Lender shall use its best efforts to give prompt written
notice to Revolving/Term Lender of the declaration by Term Lender of any Term
Loan Event of Default; provided that any failure by Term Lender to provide such
notice shall not affect Term Lender's rights arising from such Term Loan Event
of Default or result in any liability to Revolving/Term Lender other than
liability for any such failure where such failure was a result of gross
negligence or wilful misconduct (and an mere inadvertent omission to give such
notice shall not be deemed to be either gross negligence or willful misconduct).

                                       11
<PAGE>   89
         (b) Term Lender shall have the right, but not the obligation, to cure
any default under the Revolving/Term Loan Documents which, after notice or lapse
of time or both would become Revolving/Term Loan Event of Default at any time
prior to such default becoming a Revolving/Term Loan Event of Default. In
addition, Term Lender shall have the right, but not the obligation, to cure any
Revolving/Term Loan Event of Default, if curable.

         (c) Whenever it is provided herein that any notice, demand, request,
consent, approval, declaration or other communication shall or may be given to
or served upon any of the parties by any other parties, or whenever any of the
parties desires to give or serve upon any other parties any communication with
respect to this Agreement, each such notice, demand, request, consent, approval,
declaration or other communication shall be in writing and shall be deemed to
have been validly served, given or delivered (a) upon the earlier of actual
receipt and three (3) business days after deposit in the United States Mail,
registered or certified mail, return receipt requested, with proper postage
prepaid, (b) upon transmission, when sent by telecopier or other similar
facsimile transmission (with such telecopy or facsimile promptly confirmed by
delivery of a copy by personal delivery or United States Mail as otherwise
provided in this section), (c) one business day after deposit with a reputable
overnight courier with all charges prepaid, or (d) when delivered, if
hand-delivered by messenger, all of which shall be addressed to the party to be
notified and sent to the address or facsimile number as follows:

                                    If to Term Lender, to:

                                    Levine Leichtman Capital Partners II, L.P.
                                    c/o Levine Leichtman Capital Partners, Inc.
                                    335 North Maple Drive, Suite 240
                                    Beverly Hills, CA  90210
                                    Attention:  Arthur E. Levine, President
                                    Telephone:  (310) 275-5335
                                    Telecopier: (310) 275-1441

                                    If to Revolving/Term Lender, to:

                                    The CIT Group/Business Credit, Inc.
                                    300 S. Grand Avenue, 3rd Floor
                                    Los Angeles, CA  90071
                                    Attention:  Thomas Hayes
                                    Telephone:  (213) 613-2505
                                    Telecopier: (213) 613-2501

                                    If to any Debtor, to:

                                    Simula, Inc.
                                    2700 N. Central Avenue, Suite 1000

                                       12
<PAGE>   90
                                    Phoenix, AZ 85004
                                    Attention: Donald W. Townsend
                                    Telephone:   (602) 631-4005
                                    Telecopier:  (602) 631-9005

The giving of any notice required hereunder may be waived in writing by the
party entitled to receive such notice.

     19. Costs and Attorneys' Fees. If any action, suit or proceeding is
commenced by or between any of the parties in connection with this Agreement,
neither party shall be entitled to recover from the other any costs, expenses or
attorneys' fees incurred in connection therewith.

     20. Successors and Assigns. This Agreement shall be binding on, and shall
inure to the benefit of, the parties and their respective successors and assigns
(including, in the case of any Insolvency Proceeding, any receiver, assignee for
the benefit of creditors, trustee or debtor in possession on behalf of such
Person), except as otherwise provided herein. This Agreement is freely
assignable at any time by Revolving/Term Lender or Term Lender, provided that
any such assignment is in conjunction with the assignment or refinancing in
whole or in part of the Revolving/Term Indebtedness or Term Indebtedness, as the
case may be, and that such assignment is subject to the terms of this Agreement.

     21. Integrated Agreement. This Agreement sets forth the entire
understanding of the parties with respect to the matters set forth herein and
may not be modified or amended except in a writing signed by all parties.

     22. Interpretation. The captions in this Agreement are for convenience of
reference only, do not constitute a part of this Agreement and are not to be
considered in construing or interpreting this Agreement. All section, preamble,
recital, exhibit, schedule, disclosure schedule, annex, clause and party
references are to this Agreement unless otherwise stated. No party, nor its
counsel, shall be deemed the drafter of this Agreement for purposes of
construing the provisions of this Agreement, and all provisions of this
Agreement shall be construed in accordance with their fair meaning, and not
strictly for or against any party.

     23. Authority. Each of the signatories hereto certifies that such party has
all necessary authority to execute this Agreement.

     24. Counterparts. This Agreement may be executed in two or more
counterparts and by facsimile, each of which shall be deemed an original, but
all of which together shall constitute one instrument.

     25. GOVERNING LAW. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE, THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA

                                       13
<PAGE>   91
APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE (WITHOUT REGARD TO THE
CHOICE OF LAW OR CONFLICT OF LAW PROVISIONS THEREOF) AND ANY APPLICABLE LAWS OF
THE UNITED STATES OF AMERICA.

     26. CONSENT TO JURISDICTION AND VENUE. REVOLVING/TERM LENDER AND TERM
LENDER HEREBY CONSENT AND AGREE THAT ALL ACTIONS, SUITS OR OTHER PROCEEDINGS
ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED
IN STATE OR FEDERAL COURTS LOCATED IN THE CITY OF LOS ANGELES, COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, WHICH COURTS SHALL HAVE EXCLUSIVE JURISDICTION TO
HEAR AND DETERMINE ANY AND ALL CLAIMS, CONTROVERSIES AND DISPUTES ARISING OUT OF
THIS AGREEMENT OR ANY OTHER MATTER ARISING OUT OF OR RELATED TO THIS AGREEMENT.

     REVOLVING/TERM LENDER AND TERM LENDER HEREBY (A) IRREVOCABLY SUBMIT TO THE
JURISDICTION OF ANY SUCH COURT AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN
ANY ACTION, SUIT OR OTHER PROCEEDING COMMENCED IN ANY SUCH COURT, (B) WAIVE ANY
RIGHT IT MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR ANY
OBJECTION THAT SUCH PERSON MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION OR
IMPROPER VENUE AND (C) CONSENT TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF
AS IS DEEMED APPROPRIATE BY SUCH COURT. REVOLVING/TERM LENDER AND TERM LENDER
HEREBY WAIVE PERSONAL SERVICE OF THE SUMMONS, COMPLAINT OR OTHER PROCESS ISSUED
IN ANY SUCH ACTION, SUIT OR OTHER PROCEEDING AND AGREES THAT SERVICE OF SUCH
SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL
ADDRESSED TO SUCH PARTY AT THE ADDRESS SET FORTH IN SECTION 18 (NOTICES) AND
THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE EARLIER OF SUCH PERSON'S
ACTUAL RECEIPT THEREOF OR FIVE DAYS AFTER DEPOSIT IN THE UNITED STATES MAILS,
PROPER POSTAGE PREPAID.

     27. WAIVER OF JURY TRIAL. EACH TERM LENDER AND REVOLVING/TERM LENDER WAIVES
THE RIGHT TO A TRIAL BY JURY IN ANY ACTION UNDER THIS GUARANTY OR ANY ACTION OR
ACTIONS ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY OR BY ANY OTHER
INVESTMENT DOCUMENT, REGARDLESS OF WHICH PARTY INITIATES SUCH ACTION OR ACTIONS.

                                       14
<PAGE>   92
     IN WITNESS WHEREOF, this Agreement has been duly executed as of the date
first written above.

"TERM LENDER"

LEVINE LEICHTMAN CAPITAL PARTNERS II, L.P.,
a California limited partnership

By:   LLCP California Equity Partners II, L.P.,
a California limited partnership, its General Partner

     By:  Levine Leichtman Capital Partners, Inc., a California corporation, its
          General Partner

                  By: /s/ Lauren B. Leichtman
                      -----------------------
                          Lauren B. Leichtman
                          Chief Executive Officer

"REVOLVING/TERM LENDER"

THE CIT GROUP/ BUSINESS CREDIT, INC.

By:    /s/ Thomas Heyes
      -----------------
Name:      Thomas Heyes
         --------------
Title:     Senior Vice President
         -----------------------

                                       15
<PAGE>   93
                                 ACKNOWLEDGMENT

     Each of the undersigned hereby acknowledges and consents to the foregoing
Intercreditor Agreement and agrees to cooperate with the parties thereto to
insure enforcement of the priorities and other provisions specified therein.

Dated as of December 30, 1999

"DEBTORS"

SIMULA, INC., an Arizona corporation

By:      /s/ James C. Dodd
         -----------------
Title:   Executive Vice President and CFO
         --------------------------------

AIRLINE INTERIORS, INC.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

ARTCRAFT INDUSTRIES CORP.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

SIMULA TRANSPORTATION
EQUIPMENT CORPORATION
(formerly known as INTAERO INC.)

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

INTERNATIONAL CENTER FOR
SAFETY EDUCATION, INC.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

                                       16
<PAGE>   94
SIMULA AUTOMOTIVE SAFETY
DEVICES, INC.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

SIMULA COMPOSITES
CORPORATION

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

SIMULA POLYMER SYSTEMS, INC.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

SIMULA SAFETY SYSTEMS, INC.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

SIMULA TECHNOLOGIES, INC.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

SIMULA AUTOMOTIVE SAFETY
DEVICES, LIMITED

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

CCEC CAPITAL CORP.

By:      /s/ James C. Dodd
         -----------------
Title:   Treasurer
         ---------

                                       17

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