Document:

<PAGE>

                                AMENDMENT NO.1
                            TO NOTE AGREEMENT FOR
                         7.29% SENIOR NOTES DUE 2007

                   BROWN & SHARPE MANUFACTURING COMPANY

                                                                October 28, 1999

To each of the Holders of the
7.29% Senior Notes due 2007 of
Brown & Sharpe Manufacturing Company

Ladies and Gentlemen:

     Brown & Sharpe Manufacturing Company (the "Company") has heretofore issued
its 7.29% Senior Notes due November 10, 2007 (the "Notes") in the aggregate
principal amount of $50,000,000 under and pursuant to the Note Agreement, dated
as of November 10, 1997, among the Company and the original purchasers of the
Notes (the "Note Agreement"). Terms used herein which are defined in the Note
Agreement are used herein as so defined.

                             Preliminary Statement

     The Company was not in compliance with the provisions of paragraph 6D of
the Note Agreement (Interest Coverage Ratio) for the period ended September 30,
1999 (the "Interest Coverage Default") and expects to be unable to effect
compliance with such provisions for the period ending December 31, 1999. The
Company was not in compliance with the provisions of paragraph 6E of the Note
Agreement (Debt to EBITDA Ratio) for the periods ended June 30, 1999 and
September 30, 1999 (the "Debt to EBITDA Default") and expects to be unable to
effect compliance with such provisions for the period ending December 31, 1999.
The Company also expects to be unable to effect compliance with the provisions
of paragraphs 6A (Maintenance of Adjusted Consolidated Net Worth) and 6F
(Consolidated Fixed Charges Coverage Ratio) of the Note Agreement for the
quarter ending December 31, 1999. As a consequence of the Interest Coverage
Default and the Debt to EBITDA Default, Events of Default have occurred and are
continuing under paragraph 7 A(v) of the Note Agreement. In addition a further
Event of Default has occurred and is continuing under paragraph 7 A(iii) of the
Note Agreement (the "Bank Cross Default") as a consequence of certain existing
defaults under the New Bank Facility (the "Existing Bank Defaults").

     In connection with the foregoing the Company is requesting certain
amendments to, and consents and waivers under and in respect of, the Note
Agreement and, subject to the terms and provisions hereof, each undersigned
holder of Notes is agreeable thereto. Accordingly, the Company agrees with you
as follows:

<PAGE>

     Section 1. Waivers and Consents. Each undersigned holder of Notes hereby
(i) waives the application of the provisions of paragraph 6D of the Note
Agreement for the period ended September 30, 1999 and agrees that the Interest
Coverage Default shall not constitute an Event of Default, (ii) waives the
application of the provisions of paragraph 6E of the Note Agreement for the
periods ended June 30, 1999 and September 30, 1999 and agrees that the Debt to
EBITDA Default shall not constitute an Event of Default, (iii) waives the
application of the provisions of paragraphs 6A, 6D, 6E and 6F of the Note
Agreement for the quarter ending December 31, 1999, (iv} consents and agrees to
the execution and delivery of an amendment to the New Bank Facility in
substantially the form of Amendment No.1 and Waiver Agreement dated as of
November __, 1999 (MTH&M Draft 11/01/99) heretofore delivered to the holders of
the Notes (the "Bank Amendment") and (v) agrees that the Bank Cross Default
arising as a result of the Existing Bank Defaults shall not constitute an Event
of Default.

     Section 2. Amendments. (a) The Note Agreement is hereby amended by
adding a new paragraph 5I thereto reading as follows:

          5I. Incorporated Debt Provisions. If the Company shall enter into,
     assume or otherwise be or become liable under (a "Debt Incurrence") any
     agreement or instrument executed and delivered in connection with any
     outstanding Debt (or pursuant to any revolving credit or similar
     arrangement under which Debt may be outstanding) (herein called an "Other
     Debt Agreement") containing one or more Additional Covenants or Additional
     Defaults (the "Incorporated Debt Provisions"), such Incorporated Debt
     Provisions shall ipso facto be incorporated herein as if fully set forth
     at this place with such changes mutatis mutandis to make such Incorporated
     Debt Provisions applicable to this Agreement and the Notes without any
     further requirement for notice or action on the part of the Company or any
     holder of a Note. The Company agrees that upon any such Debt Incurrence it
     will (x) give notice thereof, together with a copy of the applicable
     Incorporated Debt Provisions, to the holders of the Notes and (y) execute
     and deliver at its expense (including, without limitation, the fees and
     expenses of counsel for the holders of the Notes) an amendment to this
     Agreement evidencing the amendment of this Agreement to include such
     Incorporated Debt Provisions, provided that such execution and delivery
     shall not be necessary for or a condition to the incorporation of the
     Incorporated Debt Provisions as provided in the preceding sentence. Any
     amendment or deletion of any Additional Covenant or Additional Default
     arising out of any amendment to, or termination of, the relevant Other Debt
     Agreement shall become effective to effect the same amendment to (or
     deletion of) such Additional Covenant or Additional Default, as the case
     may be, on the 180th day following the Company's giving notice thereof to
     the holders of the Notes; provided, that no Default or Event of Default
     shall have occurred and be continuing on such 180th day.

                                       2
<PAGE>

          (b) Paragraph 6B of the Note Agreement is amended by deleting the word
     "and" at the end of clause (ix), replacing the period at the end of clause
     (x) with a semicolon and adding new clauses (xi) and (xii) reading as
     follows:
               (xi) Liens securing the Notes and other payment obligations of
          the Company hereunder and (to the extent equally and ratably secured
          with the Notes and such other payment obligations) the Debt and other
          payment obligations of the Company outstanding from time to time under
          the New Bank Facility; and

               (xii) Liens on the computer software known as "PC-DMIS" and all
          future revisions, upgrades and enhancements thereto in favor of
          William Wilcox, Mark Cluff and The Church of Jesus Christ of
          Latter-Day Saints securing obligations not in excess of the sum of
          $8,500,000 plus $131 for each copy of PC-DMIS sold within five years
          of the consummation of the stock acquisition referred to in clause
          (ii) of the definition of Restricted Investment.

          (c) Clause (ii) of paragraph 6C of the Note Agreement is amended in
     its entirety to read as follows:

               (ii) Debt in respect of the New Bank Facility limited to
          $30,000,000 aggregate principal amount at any time outstanding
          thereunder and the Subordinated Debt (as that term is defined in
          Section 6 of Amendment No. 1, dated October 28, 1999, to this
          Agreement);

          (d) The last sentence of paragraph 6C of the Note Agreement is amended
     in its entirety to read as follows:

               In addition, the (Company will not permit any Subsidiary to
          create, incur, assume or permit to exist Debt or issue any Preferred
          Stock except (1) as permitted under clauses (ii), (iii) and (v) above,
          (2) borrowings made by one or more Foreign Subsidiaries (which may be
          consolidated subsidiaries, but which shall not be Wholly-Owned
          Subsidiaries) transacting business in the Peoples Republic of China
          (each a "Chinese Borrowing Subsidiary" and collectively ("Chinese
          Borrowing Subsidiaries") in the local Chinese currency ("Chinese
          Borrowings") in an aggregate amount for all Chinese Borrowing
          Subsidiaries not exceeding the Dollar equivalent of $6,000,000 which
          borrowings are not directly or indirectly recourse to the Company or
          any other Subsidiary or any of their respective assets (by way of
          Guarantee or otherwise) and (3) Debt or Preferred Stock which when
          combined with outstanding Debt and the aggregate liquidation value of
          all Preferred Stock of all Subsidiaries then outstanding (other than
          Debt under clause (v) above and Debt referred to in the preceding
          clause (2)) does not exceed the sum of $20,000,000 and 5% of Adjusted
          Consolidated Net Worth as at the end of the most recently concluded
          fiscal quarter of the Company.

                                       3
<PAGE>

          (e) Anything in the Note Agreement to the contrary notwithstanding,
     during the Interim Period (as defined below):

               (i) the Company and its Subsidiaries shall not be permitted to
          make (x) any Investments pursuant to clause (vii) of the definition of
          "Permitted Investments" in paragraph 10B of the Note Agreement
          (without prejudice to their entitlement to hold Investments made
          pursuant to said clause prior to the date hereof) or (y) any
          Restricted Investments or Restricted Payments (without prejudice to
          their entitlement to hold Restricted Investments made pursuant to
          paragraph 6L prior to the date hereof);

               (ii) the Company and its Subsidiaries shall not be permitted to
          create, incur or assume any Debt pursuant to clause (iv) of paragraph
          6C of the Note Agreement (without prejudice to any Debt created,
          incurred or assumed thereunder and outstanding immediately prior to
          the date hereof); and

               (iii) the Company and its Subsidiaries shall not be permitted to
          create, incur or assume any Lien pursuant to clause (ix) of paragraph
          6B of the Note Agreement (without prejudice to any Lien created,
          incurred or assumed thereunder and outstanding immediately prior to
          the date hereof).

As used herein, the term "Interim Period" means the period from the date hereof
until the Company is again in compliance with each of paragraphs 6A, 6D, 6E and
6F of the Note Agreement (without giving effect to any waiver hereunder) and no
Event of Default has occurred and is continuing

     The Company agrees that any failure to observe any of its obligations
under this Section 2(e) shall be an Event of Default for all purposes of the
Note Agreement.

          (f) Clause (v) of paragraph 7A of the Note Agreement is amended
     in its entirety to read as follows:

               (v) the Company fails to perform, observe or comply with any
          agreement contained in paragraph 4F or 4G, in the last sentence of
          paragraph 5A, in paragraph 5B, 5F or 5H or in paragraph 6 or in any
          Additional Covenant incorporated herein as provided in paragraph 5I,
          or any event constituting an Additional Default incorporated herein as
          provided in paragraph 5I shall have occurred and be continuing, or the
          Company shall not have (x) consummated the Subordinated Debt Placement
          referred to in Section 6 of Amendment No. 1, dated October 28, 1999,
          to this Agreement ("Amendment No. 1") on or prior to the date
          specified in said Section 6 or prepaid the Notes as required by said
          Section 6

                                       4
<PAGE>

          from the proceeds of such Subordinated Debt Placement or (y) complied
          with the provisions of Section 7 or Section 9 of Amendment No. 1;

          (g) The definition of "Restricted Investment" in paragraph 10B of the
     Note Agreement is hereby amended in its entirety to read as follows;

                "Restricted Investment" shall mean any expenditure or the
          incurrence of any liability to make any expenditure for an Investment
          other than (i) a Permitted Investment and (ii) expenditures by the
          Company in connection with the acquisition of shares of capital stock
          of Wilcox Associates Inc., a Delaware Corporation, that the Company
          does not own as of October 20, 1999, so long as such expenditures do
          not exceed $8,500,000 plus $131 for each copy of PC-DMIS sold within
          five years of the consummation of such acquisition.

          (h) Paragraph 10B of the Note Agreement is further amended by adding
     thereto the following additional terms in proper alphabetical order:

               "Additional Covenant" shall mean any affirmative or negative
          covenant or similar restriction applicable to the Company or any
          Subsidiary (regardless of whether such provision is labeled or
          otherwise characterized as a covenant) the subject matter of which
          either (i) is similar to that of the covenants in paragraphs 5 and 6
          of this Agreement, or related definitions in paragraph 10 of this
          Agreement, but contains one or more percentages, amount or formulas
          that is more restrictive than those set forth herein or more
          beneficial to the holder or holders of the Debt created or evidenced
          by the document in which such covenant or similar restriction is
          contained (and such covenant or similar restriction shall be deemed an
          "Additional Covenant" only to the extent that it is more restrictive
          or more beneficial) or (ii) provides for (x) restrictions on the
          incurrence of Debt, sales of assets or the making of Restricted
          Payments or (y) the maintenance of financial ratios or of any balance
          sheet item at any particular level in a manner which is different from
          the subject matter of the covenants in paragraph 5 and 6 of this
          Agreement, or related definitions in paragraph 10 of this Agreement.

               "Additional Default" shall mean any provision contained in any
          document or instrument creating or evidencing Debt of the Company
          which permits the holder or holders of Debt to accelerate (with the
          passage of time or giving of notice or both) the maturity thereof or
          otherwise requires the Company or any Subsidiary to purchase such Debt
          prior to the stated maturity thereof and which either (i) is similar
          to the Defaults and Events of Default contained in paragraph 7 of
          this Agreement, or related definitions in paragraph 10 of this
          Agreement, but contains one or more percentages, amounts

                                       5
<PAGE>

          or formulas that is more restrictive or has a shorter grace period
          than those set forth herein or is more beneficial to the holder or
          holders of such other Debt (and such provision shall be deemed an
          "Additional Default" only to the extent that it is more restrictive,
          has a shorter grace period or is more beneficial) or (ii) is different
          from the subject matter of the Defaults and Events of Default
          contained in paragraph 7 of this Agreement, or related definitions in
          paragraph 10 of this Agreement; provided, however that no such
          provision that arises solely as the result of a violation of any
          affirmative or negative covenant or similar restriction contained in
          such document or instrument (whether or not the same is an Additional
          Covenant) shall be an Additional Default.

     Section 3. Increased Interest Rates. The Company agrees that the interest
rate on the Notes is hereby increased to an annual rate of 8.79% with effect
from and after July 1, 1999, and the amount of interest payable on overdue
payments on the Notes shall be a rate per annum equal to the greater of (i)
10.79% and (ii) 2.0% over the rate of interest publicly announced by Morgan
Guaranty Trust Company of New York from time to time in New York City as its
Prime Rate.

     Section 4. Representations and Warranties. The Company represents and
warrants to the holders of the Notes as follows:

          (a) Except as described above no Default or Event of Default exists
     nor will any Default or Event of Default exist after giving effect to the
     effectiveness of this Agreement.

          (b) None of the statements, documents or other information (including,
     without limitation, the financial statements and related certificates most
     recently provided to the holders of the Notes pursuant to paragraph 5A of
     the Note Agreement) furnished by, or on behalf of, the Company to the
     holders of the Notes in connection with the negotiation, execution and
     delivery of this Agreement contain any untrue statement of a material fact
     or omit a material fact necessary to make the statements contained therein
     or herein not misleading in light of the circumstances in which they were
     made. There is no fact which the Company has not disclosed to the holders
     of the Notes which materially affects adversely or, so far as the Company
     can now foresee, will materially affect adversely the business, prospects,
     profits, properties or condition (financial or otherwise) of the Company
     and its Subsidiaries, taken as a whole.

          (c) In making the solicitation of the holders of the Notes in
     connection with the execution of this Agreement the Company is in
     compliance with the provisions of paragraph 11C of the Note Agreement.

                                       6
<PAGE>

     Section 5. Effectiveness. The consents and waivers under, and the
amendments to, the Note Agreement set forth in Section 1 and Section 2 shall
become effective (the "Amendment Effective Date") when (i) the Company shall
have received counterparts of this letter executed by the Required Holders, (ii)
the Company shall have entered into the New Bank Amendment which shall have the
effect of permanently waiving the Existing Bank Defaults (at least to the same
extent as Events of Default under the Note Agreement are waived hereunder) and
the same shall have become effective (except for the satisfaction of any
condition therein that this Agreement shall have become effective) and (iii)
each holder of Notes shall have received an amount equal to 0.25% of the
outstanding principal amount of Notes held by such holder. The amendments to the
Notes set forth in Section 3 shall become effective when the Company shall have
received counterparts of this letter executed by the Required Holders. The
Company shall give notice of the effectiveness hereof to all of the holders of
the Notes as provided in paragraph 11C of the Note Agreement.

     Section 6. Senior Subordinated Debt Offering. The Company is requesting the
execution and delivery of this Agreement in anticipation of an offering of
approximately $35,000,000 aggregate principal amount of its senior subordinated
debt (the "Subordinated Debt") with warrants for the purchase of common stock of
the Company (the "Subordinated Debt Placement"). The Company confirms that the
Subordinated Debt will be subordinated to the Notes such that (i) no principal
payments will be made thereon prior to the payment in full of the Notes, (ii) no
payments of any kind will be made thereon if a Default or Event of Default
exists, and (iii) no payments will be made in respect thereof in any bankruptcy
proceeding involving the Company until all payments of principal, interest
(including post-petition interest), Yield Maintenance Amount and other amounts
payable under the Note Agreement shall have been paid in full in cash. The final
terms of the Subordinated Debt (including without limitation covenant levels,
defaults and subordination provisions) shall be subject to the prior written
approval of the Required Holders. Unless the Required Holders shall otherwise
agree, the Company covenants that (i) it will consummate the Subordinated Debt
Placement with the issuance of not less than $30,000,000 of Subordinated Debt
within 90 days after the Amendment Effective Date as provided in Section 5 (but
in any event not later than January 31, 2000) and (ii) it will apply a portion
of the proceeds of the Subordinated Debt Placement to the prepayment of at least
$10,000,000 principal amount of the Notes (or, if the Permanent Amendment
Proposal and the Intercreditor Requirement shall not have been implemented and
satisfied as contemplated by the provisions of Section 8 hereof, a principal
amount of Notes equal to 62.5% of the Subordinated Debt so issued) pursuant to
the provisions of paragraph 4B of the Note Agreement.

     Section 7. Undertakings. In order to induce the holders of the Notes to
grant the waivers and agree to the amendments provided for in Sections 1 and 2,
the Company agrees (for the benefit of the holders of the Notes from time to

                                       7
<PAGE>

time outstanding) that not later than November 19, 1999, the Company will, and
will cause each of its Material Domestic Subsidiaries to, grant to the
Collateral Agent for the benefit of the Secured Parties as defined in the
Intercreditor Agreement a perfected first priority interest in all of their
respective tangible property (including plants, improvements and fixtures) that
is located in the United States and all of their respective intangible personal
property pursuant to documentation (including appropriate security agreements,
legal opinions, filings and recordations) in form and substance satisfactory to
the Required Holders; provided, that (i) the Company need not grant or perfect a
security interest in a particular property if the granting of such security
interest would violate the obligations of the Company under any agreement or
instrument to which it is a party (but the Company will use its best efforts to
obtain all such third-party consents as may be required in order to grant such
security interest) or if in the sole opinion of the Required Holders the
obtaining or perfecting of a security interest in such property would be unduly
costly or burdensome, and (ii) such security interest shall be subject to any
security interest in such property as of the date of this Agreement.

     Section 8. Permanent Amendments. Primarily as a result of various
restructuring charges taken or to be taken by the Company in connection with the
realignment of its business and a change in focus of its overall business
strategy, the Company has asked the holders of the Notes to enter into
negotiations to effect permanent amendments to the financial covenants and
certain other provisions under the Note Agreement (the "Permanent Amendment
Proposal"). In that connection the Company acknowledges and agrees that the
holders of the Notes and the lenders which are parties to the New Bank Facility
(the "Facility Banks") will enter into Intercreditor arrangements (for such
periods and on such terms as shall be mutually agreeable between the Facility
Banks and the holders of the Notes) which will provide in substance that the
holders of the Notes and the Facility Banks will share in recoveries on the
total Debt under the Notes and the Note Agreement and under the New Bank
Facility (upon realization upon collateral, exercise of rights of set-off and
otherwise) in the ratio of 62.5% (holders of Notes) and 37.5% (Facility Banks)
(which may result in an ultimate reallocation of amounts paid from proceeds of
the Subordinated Debt Placement described above) (the "Intercreditor
Requirement").

     The Company acknowledges that the execution and delivery of this Agreement
is being sought by the Company without the holders of the Notes having had the
necessary time to (i) reach agreement with the Facility Banks on the specifics
of the intercreditor arrangements referred to in this Section 8 or (ii) review
and investigate the business and operations of the Company and its Subsidiaries
and the changes proposed therein by the Company which are necessary in order to
complete a considered and responsible analysis of the Permanent Amendment
Proposal. Notwithstanding anything to the contrary contained herein, the
implementation of the Permanent Amendment Proposal (and the respective forms of
agreements and instruments required in connection therewith) will require the

                                       8
<PAGE>

concurrence and the approval of the Required Holders (which concurrence and
approval as to any individual holder may be given or withheld in its sole and
absolute discretion).

     Section 9. Actions in respect of New Bank Facility. As of the date of this
Agreement the Company has borrowed an aggregate of $27,400,000 and there are
undrawn letters of credit in the aggregate amount of $253,632 outstanding
thereunder (collectively, the "Outstanding Bank loans"). The Company agrees
that unless and until the Permanent Amendment Proposal is approved and put into
place as contemplated by Section 8 hereof, the Company will not repay any of the
Outstanding Bank Loans (or permit any payment thereof to occur as the result of
the exercise of any rights of set off or otherwise) unless either (x) the
Required Holders shall consent thereto or (y) the Company shall prepay a
principal amount of Notes pursuant to the provisions of paragraph 4B of the Note
Agreement in an amount equal to 167% of the amount of Outstanding Bank Loans so
repaid.

     Section 10. Miscellaneous.

     (a) Successors and Assigns. This Agreement shall be binding upon, and shall
inure to the benefit of, the successors and assigns of the parties hereto and
the holders from time to time of the Notes.

     (b) Survival. All warranties, representations, certifications and
covenants made by the Company in this Agreement or in any certificate or other
instrument delivered by it or on its behalf under this Agreement shall be
considered to have been relied upon by the holders of the Notes and shall
survive the execution of this Agreement, regardless of any investigation made by
or on behalf of any holder of a Note. All such statements made herein or in any
such certificate or other instrument shall constitute warranties and
representations of the Company under this Agreement and the Note Agreement.

     (c) Governing Law. This Agreement shall be construed, interpreted and
enforced in accordance with, and governed by, the laws of the State of New York,
excluding choice-of-law principles of the law of such State that would require
the application of the laws of a jurisdiction other than such State.

     (d) Section Headings, etc. The titles of the Sections hereof appear as a
matter of convenience only, do not constitute a part hereof and shall not affect
the construction hereof. The words "herein," "hereof," "hereunder" and "hereto"
refer to this Agreement as a whole and not to any particular Section or other
subdivision. References to Sections are, unless otherwise specified, references
to Sections of this Agreement.

     (e) Counterparts. This Agreement may be executed in one or more
counterparts and shall be effective when at least one counterpart shall have
been executed by each party hereto, and each set of counterparts which,

                                       9
<PAGE>

collectively, show execution by each such party hereto shall constitute one
duplicate original. Any party hereto may execute and deliver a counterpart of
this Agreement by delivering by facsimile transmission a signature page of this
Agreement signed by such party, and such facsimile signature shall be treated in
all respects as having the same effect as an original signature.

     (f) Affirmation of Note Agreement and Notes. Except as expressly amended
hereby, the Note Agreement and the Notes shall continue in full force and effect
in accordance with the provisions thereof.

                                       10
<PAGE>

     If you are in agreement with the foregoing, please sign the form of
acceptance on an enclosed counterpart of this letter and return the same to the
Company, whereupon this letter shall become a binding agreement between us
(subject to effectiveness as aforesaid).

                                        BROWN & SHARPE MANUFACTURING COMPANY

                                        By: ________________________________
                                            Title:

                                       11
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

THE PRUDENTIAL LIFE INSURANCE COMPANY
    OF AMERICA

By: ______________________________
    Title:

PRUCO LIFE INSURANCE COMPANY

By: ______________________________
    Title:

U.S. PRIVATE PLACEMENT FUND

By: Prudential Private Placement Investors, L.P.,
        Investment Advisor

    By: Prudential Private Placement Investors, Inc.,
        its General Partner

    By: __________________________
        Title:

                                       12
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

HARTFORD LIFE INSURANCE COMPANY

By: Hartford Investment Services, Inc.
    Its Agent and Attorney-in-Fact

By: __________________________________
    Title:

                                       13
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

THE GUARDIAN LIFE INSURANCE COMPANY
    OF AMERICA

By: __________________________________
    Title:

FORT DEARBORN LIFE INSURANCE COMPANY

By: Guardian Asset Management Corp.

By: __________________________________
    Title:

                                       14
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

NATIONWIDE LIFE INSURANCE COMPANY

By: __________________________________
    Title

                                       15
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

CUMMINGS & CO.
(Nominee for The Canada Life Assurance Company)

By: __________________________________
    Title:

                                       16
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

CUMMINGS & CO.
(Nominee for Canada Life Insurance
Company of New York)

By: ___________________________________
    Title:

                                       17
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

CUMMINGS & CO.
(Nominee for Canada Life Insurance
Company of America)

By: __________________________________
    Title:

                                       18
<PAGE>

The foregoing Amendment No. 1
relating to the 7.29% Senior Notes of
Brown & Sharpe Manufacturing
Company is hereby accepted:

PROVIDENT MUTUAL LIFE AND ANNUITY
INSURANCE COMPANY

By: __________________________________
    Title:

                                       19<PAGE>

EXHIBIT 10.8  RECOGNITION AND RETENTION PLAN AND TRUST AGREEMENT

                                    FORM OF

                            KINGFIELD SAVINGS BANK

              RECOGNITION AND RETENTION PLAN AND TRUST AGREEMENT

                                  ARTICLE  I
                      ESTABLISHMENT OF THE PLAN AND TRUST

     1.01 Kingfield Savings Bank (the "Bank") hereby establishes the Recognition
and Retention Plan (the "Plan") and Trust (the "Trust") upon the terms and
conditions hereinafter stated in this Recognition and Retention Plan and Trust
Agreement (the "Agreement").

     1.02 The Trustee hereby accepts this Trust and agrees to hold the Trust
assets existing on the date of this Agreement and all additions and accretions
thereto upon the terms and conditions hereinafter stated.

                                  ARTICLE  II
                              PURPOSE OF THE PLAN

     2.01 The purpose of the Plan is to retain employees and officers of
experience and ability by providing such persons with a proprietary interest in
the Company as compensation for their contributions to the Bank and its
Affiliates and as an incentive to make such contributions and to promote the
Bank's growth and profitability in the future.

                                 ARTICLE  III
                                  DEFINITIONS

     The following words and phrases when used in this Plan with an initial
capital letter, unless the context clearly indicates otherwise, shall have the
meanings set forth below. Whenever appropriate, the masculine pronoun shall
include the feminine pronoun and the singular shall include the plural.

     3.01  "Affiliate" means the Company and those subsidiaries of the Bank or
Company which, with the consent of the Board, agree to participate in this Plan.

     3.02  "Bank" means Kingfield Savings Bank.

     3.03 "Beneficiary" means the person or persons designated by a Recipient to
receive any benefits payable under the Plan in the event of such Recipient's
death. Such person or persons shall be designated in writing on forms provided
for this purpose by the Committee and may be changed from time to time by
similar written notice to the Committee. In the absence of a written
designation, the Beneficiary shall be the Recipient's surviving spouse, if any
or if none, his estate.

                                      C-1

<PAGE>

     3.04  "Board" means the Board of Directors of the Bank.

     3.05 "Committee" means the Plan Committee of the Board which shall consist
solely of non-employee directors, all of whom are "disinterested directors" as
that term so defined under Rule 16b-3 under the Securities and Exchange Act of
1934, as amended promulgated by the Securities and Exchange Commission.

     3.06 "Common Stock" means shares of the common stock. $.01 par value per
share, of the Company.

     3.07 "Company" shall mean KSB Bancorp, Inc., the parent holding
company for the Bank.

     3.08 "Conversion" shall mean the conversion of the Bank from the mutual to
stock form of organization and the acquisition of the Bank by the Company.

     3.09 "Disability" means the permanent and total inability by reason of
mental or physical infirmity, or both, of an employee to perform the work
customarily assigned to him. Additionally, a medical doctor selected or approved
by the Board of Directors must advise the Committee that it is either not
possible to determine when such Disability will terminate or that it appears
probable that such Disability will be permanent during the remainder of the said
participant's lifetime.

     3.10 "Employee" means any person who is currently employed on a full time
basis by the Bank or an Affiliate, including officers, but such term shall not
include Outside Directors.

     3.11  "Executive Officer" shall mean the President, Executive Vice
President, and any Senior Vice President of the Bank.

     3.12  "Plan Shares" means shares of Common Stock held in the Trust and
issued or issuable to a Recipient pursuant to the Plan.

     3.13  "Plan Share Award" means a right granted under this Plan to earn Plan
Shares.

     3.14 "Plan Share Reserve" means the shares of Common Stock held by the
Trustee pursuant to Sections 5.03 and 5.04.

     3.15  "Recipient" means an Employee who receives a Plan Share Award under
the Plan.

     3.16 Retirement" means termination of employment or service which
constitutes normal retirement, or early retirement under any qualified
retirement plan maintained by the Bank, or by reaching age 65.

                                      C-2
<PAGE>

     3.17 "Trustee" means that person(s) or entity nominated by the Committee
and approved by the Board pursuant to Sections 4.01 and 4.02 to hold legal title
to the Plan assets for the purposes set forth herein.

                                  ARTICLE IV
                          ADMINISTRATION OF THE PLAN

     4.01 Role of the Committee. The Plan shall be administered and interpreted
by the Committee, which shall have all of the powers allocated to it in this and
other Sections of the Plan. The interpretation and construction by the Committee
of any provisions of the Plan or of any Plan Share Award granted hereunder shall
be final and binding. The Committee shall act by vote or written consent of a
majority of its members. Subject to the express provisions and limitations of
the Plan, the Committee may adopt such rules, regulations and procedures as it
deemes appropriate for the conduct of its affairs. The Committee shall report
its actions and decisions with respect to the Plan to the Board at appropriate
times, but in no event less than one time per calendar year. The Committee shall
recommend to the Board one or more persons or entity to act as Trustee(s) in
accordance with the provision of this Plan and Trust and the terms of Article
VIII hereof.

     4.02 Role of the Board. The members of the Committee and the Trustee or
Trustees shall be appointed or approved by, and will serve at the pleasure of,
the Board. The Board may in its discretion from time to time remove members
from, or add members to, the Committee, and may remove, replace or add Trustees.
The Board shall have all of the powers allocated to it in this and other
Sections of the Plan.

     4.03 Limitation on Liability. No members of the Board or the Committee or
the Trustee(s) shall be liable for any determination made in good faith with
respect to the Plan or any Plan Shares or Plan Share Awards granted under it. If
a member of the Board or the Committee or any Trustee is a party or is
threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative, by
reason of anything done or not done by him in such capacity under or with
respect to the Plan, the Bank shall indemnify such member against expense
(including attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonable incurred by him in connection with such action, suit or
proceeding if he acted in good faith and in a manner he reasonably believed to
be in the best interests of the Bank and its Affiliates and, with respect to any
criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful.

                                   ARTICLE V
                      CONTRIBUTIONS;  PLAN SHARE RESERVE

     5.01  Amount and Timing of Contributions.  The Bank shall contribute to the
Trust an amount sufficient to purchase two and two percent (2.0%) of the shares
of Common Stock issued by the Company in connection with the Conversion.  No
contributions by Employees shall be permitted.

                                      C-3
<PAGE>

     5.02 Initial Investment. Any amounts held by the Trust prior to the
conversion of the Bank from a mutual to a stock savings bank, or until such
amounts are invested in accordance with Section 5.03, shall be invested by the
Trustee in such interest-bearing account or accounts at the Bank as the Trustee
shall determine to be appropriate.

     5.03 Investment of Trust Assets Upon the Conversion: Creation of Plan Share
Reserve. Upon the conversion of the Bank to a stock savings bank, the Trustee
shall invest all of the Trust's assets exclusively in Common Stock except as
otherwise provided below; provided, however, that the Trust shall not invest in
more than two percent (2.0%) of the shares of Common Stock issued in the
Conversion which shall constitute the "Plan Share Reserve". In the event that
all or a portion of such shares of Common Stock are not available for purchase
by the Trust in Conversion, the Trustee, in accordance with applicable rules and
regulations, shall purchase shares of Common Stock in the open market or, in the
alternative, shall purchase authorized by unissued shares of the Common Stock
from the Company sufficient to fund the Plan share Reserve. Any earnings
received with respect to Common Stock held in the Reserve shall be held in an
interest-bearing account. Any earnings received with respect to Common Stock
subject to a Plan Share Award shall be held in an interest-bearing account on
behalf of the individual Recipient.

     5.04 Effect of Allocations, Returns and Forfeitures Upon Plan Share
Reserves. Upon the allocation of Plan Share Awards under Section 6.02, or the
decision of the Committee to return Plan Shares to the Bank, the Plan Share
Reserve shall be reduced by the number of Shares subject to the Awards so
allocated or returned. Any Shares subject to an Award which may not be earned
because of a forfeiture by the Recipient pursuant to Section 7.01 shall be
returned (added) to the Plan Share Reserve.

                                  ARTICLE  VI
                           ELIGIBILITY; ALLOCATIONS

     6.01  Eligibility.  Employees of the Bank and its Affiliates are eligible
to receive Plan Share Awards.

     6.02 Allocations. The Committee may determine which of the Employees
referenced in Section 6.01 above will be granted Plan Share Awards and the
number of Shares covered by each Award, provided, however, that the number of
Shares covered by such Awards may not exceed the number of Shares in the Plan
Share Reserve immediately prior to the grant of such Awards, and provided
further, that in no event shall any Awards be made which will violate the Stock
Charter and Bylaws of the Bank or any applicable federal or state law or
regulation. In the event Plan Shares are forfeited for any reason, the Committee
may, from time to time, determine which of the Employees referenced in Section
6.01 above will be granted additional Plan Share Awards to be awarded from
forfeited Plan Shares. In selecting those Employees to whom Plan Share Awards
will be granted and the number of Plan Shares covered by such Awards, the
Committee shall consider the position and responsibilities of the eligible
Employees, the length and value of their services to the Bank and its
Affiliates, the compensation paid to the Employees and any other factors the
Committee may deem relevant, and the Committee may

                                       C-4
<PAGE>

request the written recommendation of the Chief Executive Officer and other
senior executive officers of the Bank and its Affiliates. All allocations by the
Committee shall be subject to review, and approval or rejection, by the Board.

     6.03 Form of Allocation. As promptly as practicable after a determination
is made pursuant to Section 6.02 that a Plan Share Award has been granted, the
Committee shall notify the Recipient in writing of the grant of the Award, the
number of Plan Shares covered by the Award, and the terms upon which the Plan
Shares subject to the Award may be earned. The date on which the Committee so
notifies the Recipient shall be considered the date of grant of the Plan Share
Awards. The Committee shall maintain records as to all grants of Plan Share
Awards under the Plan.

     6.04 Allocations Not Required. Notwithstanding anything to the contrary in
Sections 6.01 and 6.02, no Employee shall have any right or entitlement to
receive a Plan Share Award hereunder, such Awards being at the total discretion
of the Committee and the Board, nor shall the salaried Employees as a group have
such a right. The Committee may, with the approval of the Board (or, if so
directed by the Board, may) return all Common Stock in the Plan Share Reserve to
the Company at any time, and cease issuing Plan Share Awards.

                                  ARTICLE VII
            EARNING AND DISTRIBTUION OF PLAN SHARES; VOTING RIGHTS

     7.01  Earning Plan Shares; Forfeitures.

     (a) General Rules. Unless the Committee shall specifically state to the
contrary at the time a Plan Share Award is granted, Plan Shares subject to an
Award shall be earned at the rate of twenty percent of the aggregate number of
Shares covered by the Award upon the first year anniversary of the effective
date of grant of the Award, and thereafter at the rate of twenty percent at the
end of each full twelve months of consecutive employment with the Bank or an
Affiliate. Notwithstanding the preceding, the Committee may provide for a less
or more rapid earnings rate than that set forth herein for all Awards or for any
given Award. If the employment of a Recipient is terminated prior to the
Recipient fully earning an Award for any reason (except as specifically provided
in Subsections (b) and (c) below), the Recipient shall forfeit the right to earn
any Shares subject to the Award which have not theretofore been earned.

     In determining the number of Plan Shares which are earned, fractional
shares shall be rounded down to the nearest whole number, provided that such
fractional shares shall be aggregated and earned on the date the final
installment of the Award is earned.

     (b) Exception for Terminations Due to Death, Disability and Retirement.
Notwithstanding the general rule contained in Section 7.01(a) above, Plan Shares
subject to a Plan Share Award held by a Recipient whose employment with the Bank
or an Affiliate terminates due to death, Disability or Retirement, or any part
thereof which have not theretofore been earned, shall be deemed earned as of the
Recipients' last day of employment with the Bank or an Affiliate.

                                       C-5
<PAGE>

     (c) Exception for Terminations After a Change in Control. Notwithstanding
the general rule contained in Section 7.01 (a) above, all Plan Shares subject to
a Plan Share Award held by a Recipient whose employment with the Bank or an
Affiliate terminates following a Charge in Control of the Bank or Company, shall
be deemed earned as of the Recipient's last day of employment with the Bank or
an Affiliate. For purposes of this Plan, "Change in Control of the Bank of the
Company" shall mean an event of a nature that (i) would be required to be
reported in response to Item 1(a) of the current report on Form 8-K, as in
effect on the date hereof, pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 (the "Exchange act"); or (ii) results in a Change in
Control of the Bank or the Company within the meaning of the Change in Bank
Control Act and the Rules and Regulations promulgated by the Federal Deposit
Insurance Corporation ("FDIC") at 12 C.F.R. (S) 303.4(a) with respect to the
Bank and the Board of Governors of the Federal Reserve System ("FRB") at 12
C.F.R. (S) 225.41(b) with respect to the Company, as in effect on the date
hereof: (iii) results in a transaction requiring prior FRB approval under the
Bank Holding Company Act of 1956 and the regulations promulgated thereunder by
the FRB at 12 C.F.R. (S) 225.11, as in effect on the date hereof; or (iv)
without limitation such a Change in Control shall be deemed to have occurred at
such time as (a) any "person" (as the term is used in Sections 13(d) and 14(d)
of the Exchange Act) is or becomes the "beneficial owner" (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of securities of the Bank
or the Company representing 20% or more of the combined voting power of the
Bank's or the Company's outstanding securities except for any securities of the
Bank purchased by the Company in connection with the conversion of the Bank to
the stock form and any securities purchased by any tax qualified employee
benefit plans of the Bank; or (b) individuals who constitute the Board on the
date hereof (the "Incumbent Board") cease for any reason to constitute at least
a majority thereof, provided that any person becoming a director subsequent to
the date hereof whose election was approved by a vote of at least three-quarters
of the directors comprising the Incumbent Board, or whose nomination for
election by the Company's stockholders was approved by the same Nominating
Committee serving under an Incumbent Board, shall be, for purposes of this
clause (b), considered as though he were a member of the Incumbent Board; or (c)
a plan or reorganization, merger, consolidation, sale of all or substantially
all of the assets of the Bank or the Company or similar transaction has been
approved by the Incumbent Board and the Shareholders, or otherwise occurs, and
in which the Bank or Company is not the resulting entity.

     (d) Revocation for Misconduct. Notwithstanding anything hereinafter to the
contrary, the Board may by resolution immediately revoke, rescind and terminate
any Plan Share Award, or portion thereof, previously awarded under this Plan, to
the extent Plan Shares have not been delivered thereunder to the Recipient,
whether yet earned, in the case of an Employee who is discharged from the Bank
or an Affiliate for cause (as herein defined), or who is discovered after
termination of employment to have engaged in conduct that would have justified
termination for cause. "Cause" shall mean the termination because of personal
dishonesty, willful misconduct, any breach of fiduciary duty involving personal
profit, intentional failure to perform stated duties, or the willful violation
of any law, rule or regulation (other than traffic violations or similar
offenses) which result in a material loss to the Bank or final cease and desist
order.

                                       C-6
<PAGE>

     7.02 Accrual of Dividends. Whenever Plan Shares are paid to a Recipient or
Beneficiary under Section 7.03, such Recipient or Beneficiary shall also be
entitled to receive, with respect to each Plan Share paid, an amount equal to
any cash dividends and a number of shares of Common Stock equal to any stock
dividends, declared and paid with respect to a share of Common Stock between the
date the relevant Plan Share Award was granted and the date the Plan Shares are
being distributed. There shall also be distributed an appropriate amount of net
earnings, if any, of the Trust with respect to any cash dividends so paid out.

     7.03  Distribution of Plan Shares.

     (a) Timing of Distributions: General Rule. Except as provided in Subsection
(b) below, Plan Shares shall be distributed to the Recipient or his Beneficiary,
as the case may be, as soon as practicable after they have been earned.

     (b) Form of Distribution. All Plan Shares, together with any shares
representing stock dividends, shall be distributed in the form of Common Stock.
One share of Common Stock shall be given for each Plan Share earned and payable.
Payments representing accumulated cash dividends (and earning thereon) shall be
made in cash.

     (c) Withholding. The Trustee may withhold from any payment or distribution
made under this Plan sufficient amounts of cash or shares Common Stock to cover
any applicable withholding and employment taxes, and if the amount of such
payment is insufficient, the Trustee may require the Recipient or Beneficiary to
pay to the Trustee the amount required to be withheld as a condition of
delivering the Plan Shares. Alternatively, a Recipient may pay to the Trustee
the amount of cash necessary to be withheld for taxes in lieu of any withholding
of payments or distribution under this Plan. The Trustee shall pay over to the
Bank or Affiliate which employs or employed such Recipient any such amount
withheld from or paid by the Recipient or Beneficiary. If a Recipient elects to
have such taxes withheld, the elections must be made in compliance with Rule
16b-3 in order to receive exemptive treatment.

     7.04 Voting of Plan Shares. After a Plan Share Award has been granted, the
Recipient shall be entitled to direct the Trustee as to the voting of the Plan
Shares which are covered by the Plan Share Award and which have not yet been
earned and distributed to him pursuant to Section 7.03, subject to rules and
procedures adopted by the Committee for this purpose. All shares of Common Stock
held by the Trust as to which Recipients are not entitled to direct, or have not
directed, the voting, shall be voted by the Trustee in the same proportion as
Plan Shares which have been awarded and voted.

                                 ARTICLE  VIII
                                     TRUST

     8.01 Trust. The Trustee shall received, hold, administer, invest and make
distributions and disbursements from the Trust in accordance with the provisions
of the Plan and Trust and the applicable directions, rules, regulations,
procedures and policies established by the committee pursuant to the Plan.

                                       C-7
<PAGE>

     8.02 Management of Trust. It is the intent of this Plan and Trust that,
subject to the provisions of this Plan, the Trustee shall have complete
authority and discretion with respect to the management, control and investment
of the Trust, and that Trustee shall invest all assets of the Trust, except
those attributable to cash dividends paid with respect to Plan Shares, in Common
Stock to the fullest extent practicable, and except to the extent that the
Trustee determines that the holding of monies in cash or cash equivalents is
necessary to meet the obligation of the Trust. In performing their duties, the
Trustees shall have the power to do all things and execute such instruments as
may be deemed necessary or proper, including the following powers:

     (a) To invest up to one hundred percent (100%) of all Trust assets in
Common Stock without regard to any law now or hereafter in force limiting
investments for Trustees or other fiduciaries. The investment authorized herein
constitutes the only investment of the Trust, and in making such investment, the
Trustees are authorized to purchase Common Stock from the Company or an
Affiliate or from any other source, and such Common Stock so purchased may be
outstanding, newly issued, or Treasury shares.

     (b) To invest any Trust assets not otherwise invested in accordance with
(a) above in such deposit accounts, and certificates of deposit (including those
issued by the Bank), obligations of the United States government or its agencies
or such other investments as shall be considered the equivalent of cash.

     (c) To sell, exchange or otherwise dispose of any property at any time held
or acquired by the Trust.

     (d) To cause stocks, bonds or other securities to be registered in the name
of a nominee, without the addition of words indicating that such security is an
asset of the Trust (but accurate records shall be maintained showing that such
security is an asset of the Trust.)

     (e) To hold cash without interest in such amounts as may be in the opinion
of the Trustee reasonable for the proper operation of the Plan and Trust.

     (f) To employ brokers, agents, custodians, consultants and accountants.

     (g) To hire counsel to render advice with respect to their rights, duties
and obligations hereunder, and such other legal services or representation as
they may deem desirable.

     (h) To hold funds and securities representing the amounts to be distributed
to a Recipient or his Beneficiary as a consequence of a dispute as to the
disposition thereof, whether in a segregated account or held in common with
other assets of the Trust.

     Notwithstanding anything herein contained to the contrary, the Trustee
shall not be required to make any inventory, appraisal or settlement or report
to any court or to secure any order of court for the exercise of any power
herein contained, or give bond.

                                       C-8
<PAGE>

     8.03 Records and Accounts. The Trustee shall maintain accurate and detailed
records and accounts of all transactions of the Trust, which shall be available
at all reasonable times for inspection by any legally entitled person or entity
to the extent required by applicable law, or any other person determined by the
Committee.

     8.04 Earnings. All earnings, gains and losses with respect to Trust assets
shall be allocated, in accordance with a reasonable procedure adopted by the
Committee, to bookkeeping accounts for Recipients or to the general account of
the Trust, depending on the nature and allocation of the assets generating such
earnings, gains and losses. In particular, any earnings on cash dividends
received with respect to shares of Common Stock shall be allocated to accounts
for Recipients, if such shares are subject of outstanding Plan Share Awards, or,
otherwise to the Plan Share Reserve.

     8.05 Expenses. All costs and expenses incurred in the operation and
administration of this Plan, including those incurred by the Trustee, shall be
borne by the Bank.

     8.06 Indemnification. The Bank shall indemnify, defend and hold the Trustee
harmless against all claims, expenses and liabilities arising out of or related
to the exercise of the Trustee's powers and the discharge of their duties
hereunder, unless the same shall be due to their gross negligence or willful
misconduct.

                                  ARTICLE  IX
                                 MISCELLANEOUS

     9.01 Adjustments for Capital Changes. In the event of any change in the
outstanding shares of Common Stock of the Company by reason of any stock
dividend or split, recapitalization, merger, consolidation, spin-off,
reorganization, combination or exchange of shares, or other similar corporate
change, or other increase or decrease in such shares effected without receipt or
payment of consideration by the Company, the Committee shall adjust the
aggregate number of Plan Shares available for issuance pursuant to the Plan and
shall adjust the number of shares to which any Plan Share Award relates to
prevent dilution or enlargement of the rights granted to the Recipient under the
Plan.

     9.02 Amendment and Termination of Plan. The Board may, by resolution, at
any time amend or terminate the Plan and Trust. The power to amend or terminate
shall include the power to direct the Trustee to return to the Bank all or any
part of the assets of the Trust, including shares of Common Stock held in the
Plan Share Reserve, as well as shares of Common Stock and other assets subject
to Plan Share Awards but not yet earned by the Employees to whom they are
allocated; provide that any shares of Common Stock held by the Trust as part of
its assets must be disposed of by the Trustee prior to returning the proceeds
representing such assets to the Bank. However, the termination of the Trust
shall not affect a Recipient's right to earn Plan Share Awards and to the
distribution of Common Stock relating thereto, including earnings thereon, in
accordance with the terms of this Plan and the grant by the Committee or Board.

                                       C-9
<PAGE>

     9.03   Nontransferable.  Plan Share Awards and rights to Plan Shares shall
not be transferable by a Recipient, and during the lifetime of the Recipient,
Plan Shares may only be earned by and paid to the Recipient who was notified in
writing of the Award by the Committee pursuant to Section 6.03.

    9.04 Employment Rights. Neither the Plan nor any grant of a Plan Share Award
or Plan Shares hereunder nor any action taken by the Trustee, the Committee or
the Board in connection with the Plan shall create any right on the part of any
Employee to continue in the employ of the Bank or an Affiliate thereof, or the
Company.

    9.05 Voting and Dividend Rights. No Recipient shall have any voting or
dividend rights or other rights of a shareholder in respect of any Plan Shares
covered by a Plan Share Award, except as expressly provided in Sections 7.02 and
7.04 above, prior to the time said Plans Shares are actually distributed to him.

    9.06 Governing Law. The validity, interpretation, performance and
enforcement of the Plan and Trust shall be governed by the laws of the State of
Maine.

    9.07 Effective Date. This Plan is effective as of the effective date of the
conversion of the Bank from the mutual to capital stock form of organization.
Following Conversion, the Plan shall be presented to shareholders of the Company
for ratification for purposes of (i) obtaining favorable treatment under Section
16(b) of the Securities Exchange Act of 1934; and (ii) maintaining (if listed)
listing on the Nasdaq Small-Cap Market; provided, however, that the failure to
obtain shareholder ratification will not affect the validity of the Plan and the
Plan Share Awards thereunder.

    9.08 Term of Plan. This Plan shall remain in effect until the earlier of (1)
21 years from the Effective Date, (2) termination by the Board of Directors of
the Company, or (3) the distribution of all assets of the Trust. Termination of
the Plan shall not affect any Plan Share Awards previously granted, and such
Awards shall remain valid and in effect until they have been earned and paid, or
by their terms expire or are forfeited.

                                       C-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]