Document:

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                                  EXHIBIT 10.10

                               GUARANTY AGREEMENT

         THIS GUARANTY AGREEMENT, made and entered into as of this 30th day of
October, 2003, by Aero Systems Engineering, Inc., a Minnesota corporation,
(hereinafter referred to herein as the "Guarantor") in favor of M&I Marshall &
Ilsley Bank, ("Lender"), whose address is 651 Nicollet Mall, Minneapolis,
Minnesota 55402.

                                    RECITALS

         A.       Pursuant to a Credit Agreement dated the date hereof (together
with any amendment thereto, the "Credit Agreement"), Automation, Manufacturing &
Robotic Technologies, LLC (the "Borrower"), and the Lender have agreed that the
Lender will make a loan (hereinafter referred to as the "Loan") to the Borrower
in the aggregate principal amount not to exceed Five Hundred Thousand and no/100
Dollars ($500,000.00).

         B.       The Loan is evidenced by a Promissory Note, dated as of the
date hereof, from the Borrower to the Lender (hereinafter said Promissory Note
as it now exists and as the same may be hereafter amended or extended from time
to time is referred to herein as the "Note").

         C.       To secure payment of the Note, the Borrower has executed and
delivered to the Lender a Security Agreement, dated as of the date hereof
(together with any amendment thereto, the "Security Agreement") and such other
documents as Lender has required (the Credit Agreement, the Note, the Security
Agreement and such other documents are hereinafter collectively referred to as
the "Loan Documents").

         D.       In order to induce the Lender to make the Loan and enter into
the Loan Documents, and as additional security for the Loan and all other monies
to be advanced under the Note and the other Loan Documents, the Guarantor has
agreed to give this Guaranty.

         E.       The Lender has refused to make the Loan unless this Guaranty
is executed by the Guarantor and delivered to Lender.

         NOW, THEREFORE, in consideration of the recitals and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Guarantor hereby covenants and agrees with the Lender as
follows:

         1.       The Note and the other Loan Documents are hereby made a part
of this Guaranty by reference thereto with the same force and effect as if fully
set forth herein and all representations and warranties made by the Borrower in
the Loan Documents are true and correct.

         2.       The Guarantor hereby irrevocably, unconditionally and
absolutely guarantees to the Lender the due and prompt payment (and not just
collectibility) and performance of all of the following (hereinafter being
collectively referred to as the "Obligations Guaranteed"):

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                  (a)      All amounts due under the Note and the other Loan
                           Documents;

                  (b)      All obligations of the Borrower under the Loan
                           Documents; and

                  (c)      All costs and expenses incurred by Lender to collect
         any sums due hereunder or under the Loan Documents, including
         reasonable attorneys' fees whether or not suit is commenced.

         3.       The Guarantor hereby agrees that the Lender may from time to
time without notice to or consent of the Guarantor upon such terms and
conditions as the Lender may deem advisable and without affecting this Guaranty:
(a) release any maker, surety or other person liable for payment of all or any
part of the Obligations Guaranteed; (b) make any agreement extending or
otherwise altering the time for or the terms of payment of all or any part of
the sums due under the Note, the other Loan Documents or the Obligations
Guaranteed; (c) modify, waive, compromise, release, subordinate, resort to,
exercise or refrain from exercising any right the Lender may have hereunder,
under the Note or any of the other Loan Documents; (d) accept additional
security or guarantees of any kind; (e) endorse, transfer or assign the Note and
the other Loan Documents to any other party; (f) accept from the Borrower or any
other party partial payment or payments on account of the Obligations
Guaranteed; (g) from time to time hereafter further loan monies or give or
extend credit to or for the benefit of the Borrower; or (h) release, settle or
compromise any claim of the Lender against the Borrower, or against any other
person, firm or corporation whose obligation is held by the Lender as collateral
security for repayment of the Note or for the Obligations Guaranteed.

         4.       The Guarantor hereby unconditionally and absolutely waives:
(a) any obligation on the part of the Lender to protect, secure or insure any of
the security given for the payment of the sums due under the Note and the other
Loan Documents or for payment of the Obligations Guaranteed; (b) the invalidity
or unenforceability of the Obligations Guaranteed; (c) the release of any of the
security given for the payment of the Note; (d) notice of acceptance of this
Guaranty by the Lender; (e) notice of presentment, demand for payment, notice of
non-performance, protest, notices of protest and notices of dishonor, notice of
non-payment or partial payment; (f) notice of any defaults under the Note or in
the performance of any of the covenants and agreements contained therein or in
any other Loan Document given as security for the Note; (g) any limitation or
exculpation of liability on the part of the Borrower whether contained in the
Note or otherwise; (h) the transfer or sale by the Borrower of any security
given for the Note, the other Loan Documents or the Obligations Guaranteed or
the diminution in value thereof, (i) any failure, neglect or omission on the
part of the Lender to realize on or protect any security given for the Note, the
other Loan Documents or the Obligations Guaranteed; (j) any right to insist that
the Lender prosecute collection of the Note or resort to any instrument or
security given to secure the Obligations Guaranteed or to proceed against the
Borrower or against any other guarantor or surety prior to enforcing this
Guaranty; provided, however, at its sole discretion the Lender may either in a
separate action or an action pursuant to this Guaranty pursue its remedies
against the Borrower or any other guarantor or surety, without affecting its
rights under this Guaranty; (k) notice to the Guarantor of the existence of or
the extending to the Borrower of the Obligations Guaranteed; (l) any order,
method or manner of application of any payments on the Obligations Guaranteed;
(m) any right to insist that the Lender disburse the full principal amount of
the Note to Borrower or the order, method, manner or amounts disbursed

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under the Note; or (n) any right of subrogation against the Borrower in respect
of this Guaranty until all the Obligations Guaranteed have been fully and
finally paid.

         5.       Without limiting the generality of the foregoing, the
Guarantor will not assert against the Lender any defense of waiver, release,
discharge in bankruptcy, statute of limitations, res judicata, statute of
frauds, anti-deficiency statute, fraud, ultra vires acts, usury, illegality or
unenforceability which may be available to the Borrower in respect of the Note
or any other Loan Document, or any setoff available against the Lender to the
Borrower whether or not on account of a related transaction, and the Guarantor
expressly agrees that the Guarantor shall be and remain liable for the
Obligations Guaranteed to the extent that it constitutes a deficiency remaining
after foreclosure of any security interest securing the Note, notwithstanding
any provisions of law that may prevent the Lender from enforcing such deficiency
against the Borrower. The liability of the Guarantor shall not be affected or
impaired by any voluntary or involuntary dissolution, sale or other disposition
of all or substantially all the assets, marshaling of assets and liabilities,
receivership, insolvency, bankruptcy, assignment for the benefit of creditors,
reorganization, arrangement, composition or readjustment of, or other similar
event or proceeding affecting the Borrower or any of its assets. The Guarantor
further agrees that no act or thing, except for payment in full, which but for
this provision might or could in law or in equity act as a release of the
liabilities of the Guarantor hereunder shall in any way affect or impair this
Guaranty and Guarantor agrees that this shall be a continuing, absolute and
unconditional Guaranty and shall be in full force and effect until all sums due
on the Note and the other Loan Documents as well as all Obligations Guaranteed
have been paid in full.

         6.       The Guarantor agrees that all indebtedness, liability or
liabilities now or at any time or times hereafter owing by Borrower to the
Guarantor are hereby subordinated to the Obligations Guaranteed and any payment
of indebtedness of the Borrower to the Guarantor, if the Lender so requests,
shall be received by the Guarantor as trustee for the Lender on account of the
Obligations Guaranteed. The Guarantor agrees that the payment of any amount or
amounts by Guarantor pursuant to this Guaranty shall not in any way entitle the
Guarantor whether at law, in equity or otherwise to any right to participate in
any security held by the Lender for the payment of the Obligations Guaranteed,
any right to direct the application or disposition of any such security or any
right to direct the enforcement of any such security. Performance by the
Guarantor under this Guaranty shall not entitle Guarantor to be subrogated to
any of the Obligations Guaranteed or to any security therefor until all the
Obligations Guaranteed have been fully and finally paid. Notwithstanding the
above, Guarantor may, upon demand by Lender for payment under this Guaranty,
purchase the Note and all other Loan Documents from the Bank for the total
amount outstanding under the Note and such other Loan Documents.

         7.       The Guarantor hereby warrants and represents unto Lender that
(a) this Guaranty has been duly authorized, executed and delivered by the
Guarantor in compliance with the Guarantor's Articles of Incorporation and
Bylaws, (b) any and all balance sheets, net worth statements and other financial
statements and data which have heretofore been given to Lender with respect to
Guarantor fairly and accurately represent the financial condition of the
Guarantor as of the date hereof, and, since the date thereof, there has been no
material adverse change in the financial condition of the Guarantor, (c) except
as may be set out on any exhibit attached hereto, (i) there are no legal
proceedings, material claims or demands pending against, or to the knowledge of
the Guarantor threatened against, Guarantor or any of Guarantor's assets which
if

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determined adversely to the Guarantor would have a material adverse affect on
the Guarantor's ability to perform his obligations hereunder, (ii) the Guarantor
is not in breach or default of any obligation to pay money, and (iii) no event
(including specifically the Guarantor's execution and delivery of this Guaranty)
has occurred which, with or without the lapse of time or action by a third
party, constitutes or could constitute a material breach or material default
under any document evidencing or securing any obligation to pay money or under
any other contract or agreement to which the Guarantor is a party, and (d) the
Guarantor has knowledge of the Borrower's financial condition and affairs and of
all other circumstances which bear upon the risk assumed by the Guarantor under
this Guaranty (the Guarantor hereby agreeing to continue to keep himself
informed thereof while this Guaranty is in force and agreeing that Lender does
not have and will not have any obligation to investigate the financial condition
or affairs of Borrower for the benefit of the Guarantor or to advise the
Guarantor of any fact respecting, or any change in, the financial condition or
affairs of Borrower or any other circumstance which may bear upon the
Guarantor's risk hereunder which come to the knowledge of Lender, its directors,
officers, employees or agents of any time, whether or not Lender knows, believes
or has reason to know or to believe that any such fact or change is unknown to
the Guarantor or might or does materially increase the risk of the Guarantor
hereunder). The Guarantor shall not transfer any of its assets for the purpose
of preventing Lender from satisfying any judgment rendered under this Guaranty
therefrom, either before or after the entry of any such judgment.

         8.       The Guarantor agrees this Guaranty is executed in order to
induce the Lender to make and disburse the Loan and with the intent that it be
relied upon by the Lender in making and disbursing the Loan. Disbursement of any
part of the Loan without any further action or notice, shall constitute
conclusive evidence of the reliance hereon by the Lender. This Guaranty shall
run with the Note and other Loan Documents and without the need for any further
assignment of this Guaranty to any subsequent holder of the Note or the need for
any notice to Guarantor thereof. Upon endorsement or assignment of the Note to
any subsequent holder, said subsequent holder of the Note may enforce this
Guaranty as if said holder had been originally named as Lender hereunder.

         9.       The Guarantor submits and consents to personal jurisdiction in
the State of Minnesota for the enforcement of this Guaranty and waives any and
all personal rights under the laws of any state or the United States of America
to object to jurisdiction in the State of Minnesota for the purposes of
litigation to enforce this Guaranty. Litigation may be commenced either in the
court of general jurisdiction of such state or the United States District Court
for the district in that state, at the election of the Lender. Nothing contained
herein shall prevent Lender from bringing any action or exercising any rights
against any security given to Lender by the Guarantor, or against the Guarantor
personally, or against any property of the Guarantor, within any other state.
Commencement of any such action or proceeding in any other state shall not
constitute a waiver of the agreement as to the laws of the state which shall
govern the rights and obligations of the Guarantor and Lender hereunder or of
the submission made by the Guarantor to personal jurisdiction within the State
of Minnesota. The aforesaid means of obtaining personal jurisdiction and
perfecting service of process are not intended to be exclusive but are
cumulative and in addition to all other means of obtaining personal jurisdiction
and perfecting service of process now or hereafter provided by the laws of the
state where an action on this Guaranty is commenced.

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         10.      No right or remedy herein conferred upon or reserved to the
Lender is intended to be exclusive of any other available remedy or remedies but
each and every remedy shall be cumulative and shall be in addition to every
other remedy given under this Guaranty or now or hereafter existing at law or in
equity. No waiver, amendment, release or modification of this Guaranty shall be
established by conduct, custom or course of dealing, but only by an instrument
in writing duly executed by the Lender.

         11.      This Guaranty is delivered in and made in and shall in all
respects be construed pursuant to the laws of the State of Minnesota.

         12.      This Guaranty, and each and every part hereof, shall be
binding upon the Guarantor and upon Guarantor's, administrators,
representatives, executors, successors and assigns and shall inure to the
benefit of each and every future holder of the Note, including the heirs,
administrators, representatives, executors, successors and assigns of the
Lender.

         13.      Any notice which any party hereto may desire or may be
required to give to any other party shall be in writing and the mailing thereof
by certified mail to their respective addresses as set forth herein, or to such
other places any party hereto may hereafter by notice in writing designate,
shall constitute service of notice hereunder. The Guarantor hereby represents
and warrants to the Lender that the address of the Guarantor as specified below
is true and correct and until the Lender shall have actually received a written
notice specifying any such change of address and specifically requesting that
notices be issued to such changed address, the Lender may rely on the address
stated as being accurate. The Guarantor hereby agrees to provide the Lender with
written notice of any change of address of the Guarantor within fifteen (15)
days of such change.

         14.      The Guarantor agrees that if, at any time, all or any part of
any payment previously applied by the Lender to any of the Obligations
Guaranteed must be returned by the Lender for any reason, whether by court
order, administrative order or settlement, the Guarantor shall remain liable for
the full amount returned as if said amount had never been received by the
Lender, notwithstanding any term of this Guaranty or the cancellation or return
of any note or other agreement evidencing the Obligations Guaranteed.

         15.      THE LENDER BY ITS ACCEPTANCE HEREOF AND GUARANTOR HEREBY
VOLUNTARILY KNOWINGLY AND INTENTIONALLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY
JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING UNDER THIS GUARANTY OR CONCERNING
THE OBLIGATIONS GUARANTEED AND/OR ANY COLLATERAL CONTEMPLATED THEREBY,
REGARDLESS OF WHETHER SUCH ACTION OR PROCEEDING CONCERNS ANY CONTRACTUAL OR
TORTIOUS OR OTHER CLAIM. THE GUARANTOR ACKNOWLEDGES THAT THIS WAIVER OF JURY
TRIAL IS A MATERIAL INDUCEMENT TO THE LENDER IN EXTENDING CREDIT TO THE
BORROWER, THAT THE LENDER WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY
TRIAL WAIVER, AND THAT THE GUARANTOR HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS
HAD AN OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS JURY
TRIAL WAIVER AND UNDERSTAND THE LEGAL EFFECT OF THIS WAIVER.

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         [The remainder of this page has been left blank intentionally.]

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         IN WITNESS WHEREOF, the Guarantor has executed this Guaranty as of the
day and year first above written.

                                            AERO SYSTEMS ENGINEERING, INC.

                                            By: /s/ Charles Loux
                                                --------------------------------
                                            Its: President & CEO

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                                  EXHIBIT 10.11

                       AUTOMATION, MANUFACTURING & ROBOTIC
                                TECHNOLOGIES, LLC
                            MEMBER CONTROL AGREEMENT

THIS MEMBER CONTROL AGREEMENT (this "Agreement"), made and entered into
effective as of the 31st day of October, 2003, by and among Automation,
Manufacturing & Robotic Technologies, LLC, a Minnesota limited liability company
(the "Company"), and all of the members of the Company as of the date hereof,
such members being identified on attached Exhibit A (collectively, the
"Members").

                              W I T N E S S E T H:

WHEREAS, the Members constitute all of the current members of the Company;

WHEREAS, the Minnesota Limited Liability Company Act, codified as Chapter 322B
of the Minnesota Statutes (the "Act"), authorizes the adoption of a written
agreement among members concerning the business and affairs of a limited
liability company; and

WHEREAS, each of the parties to this Agreement desires to enter into such an
agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the mutual
promises and covenants hereinafter contained, the parties to this Agreement
agree as follows:

1.       PURPOSE

The purpose of the Company shall be to engage in any lawful business permitted
by the Act.

2.       TERM

The term of the Company shall commence with the filing of the Company's Articles
of Organization with the Minnesota Secretary of State and shall continue
thereafter until statutorily dissolved or otherwise terminated or dissolved as
provided in this Agreement.

3.       CAPITAL

         a.       [INTENTIONALLY OMITTED].

         b.       CAPITAL ACCOUNTS. A separate capital account ("Capital
         Account") shall be maintained for each Member in accordance with
         Section 704(b) of the Internal Revenue Code of 1986, as amended (the
         "Code"), and the Treasury Regulations thereunder, including, without
         limitation, Treasury Regulations Section 1.704-1(b)(2)(iv).

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         c.       CHANGES TO CAPITAL ACCOUNTS. The Capital Account for each
         Member shall consist of the Member's initial capital contribution,
         increased by any additional capital contributions made by the Member,
         by the Member's share of Company profits and by the amount of any
         Company liabilities which the Member is deemed to assume or which are
         secured by any Company property distributed to the Member, and
         decreased by the Member's share of Company losses, by any distributions
         to the Member and by the amount of any liabilities of the Member which
         the Company is deemed to assume or which are secured by property
         contributed by the Member to the Company. A transferee shall succeed to
         the Capital Account of the transferor to the extent that it relates to
         the transferred membership interest.

         d.       NO INTEREST ON CAPITAL CONTRIBUTIONS. No interest shall be
         paid on the initial capital contributions or on any subsequent capital
         contributions.

         e.       ADDITIONAL CAPITAL CONTRIBUTIONS. The Board of Governors of
         the Company shall not be able to require that the Members make
         additional capital contributions into the Company (i.e., the Board of
         Governors shall not have the authority to make any "capital calls" on
         the Members).

         f.       LIMITED LIABILITY. No Member shall be personally liable for
         any of the debts of the Company or be required to contribute any
         capital to the Company other than the contribution required by this
         Section, unless agreed to in writing or required by applicable law.

         g.       CREDITORS. A creditor who makes a nonrecourse loan to the
         Company shall not have or acquire, at any time as a result of making
         the loan, any direct or indirect interest in the profits, capital or
         property of the Company other than as a creditor.

         h.       ADDITIONAL MEMBERS. Additional members may be admitted to the
         Company as Members, and Membership Interest may be created and issued
         to those persons, upon the majority vote of the Board of Governors of
         the Company. Any admission of an additional member is effective only
         after such new member has executed an agreement to be bound
         unconditionally to this Member Control Agreement. Further, the Board of
         Governors may accept capital contributions from current members in such
         amounts, and in consideration for the issuance of such additional
         membership interest units, as the Board of Governors in its discretion
         may determine appropriate, subject to compliance with all requirements
         under the Act which relate to the acceptance of capital contributions
         and the issuance of additional Membership Interest in the Company.

         i.       CARRIERE PREEMPTIVE RIGHTS. Subject to termination as provided
         below, Raymond Carriere ("Carriere") will have "preemptive rights," in
         accordance with Minnesota Statutes Section 322B.33, with respect to any
         issuance of additional membership interest units by the Company after
         the issuance by the Company of membership interest units representing
         an additional 10% ownership interest in the Company. Membership
         interest units issued in a transaction or transactions exempt under
         Minnesota Statutes Section 322B.33, subdivision 4, shall not count
         towards the

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         10% threshold. This provision shall only benefit Carriere, may not be
         assigned or otherwise transferred by Carriere, shall not benefit any
         other Member of the Company (including any successors to or assigns of
         Carriere's Membership Interest) and shall terminate upon the earliest
         to occur of (i) Carriere's death or "disability" (for purposes hereof,
         "disability" shall mean that Carriere shall become unable to perform
         his employment duties as the result of his physical or mental
         impairment for an aggregate of 180 days in any period of 365
         consecutive days), (ii) such time as Carriere no longer owns any
         membership interest units in the Company, or (iii) such time as
         Carriere is no longer employed by the Company as a result of his
         voluntary termination or a termination by the Company "for cause" (as
         such term is defined in his employment agreement with the Company).

4.       ALLOCATION OF PROFITS AND LOSSES

         a.       GENERAL. The profits and losses of the Company shall be
         credited or charged, as the case may be, to each of the Members in
         accordance with the membership interest percentages for each Member.
         The actual percentage membership interest of a given Member in the
         Company is determined by dividing the number of membership interest
         units owned by the Member by the total number of membership interest
         units owned by all Members of the Company, including such Member (such
         membership interest percentages are referred to in this Agreement as
         the "Membership Interests"). The number of membership interest units
         owned by each Member and the Membership Interest of each Member as the
         date of this Agreement is as set forth on attached Exhibit A.

         b.       QUALIFIED INCOME OFFSET. If any Member unexpectedly receives
         any adjustments, allocations or distributions described in Treasury
         Regulations Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-1(b)(2)(ii)(d)(5),
         or 1.704-1(b)(2)(ii)(d)(6), items of Company income and gain shall be
         specifically allocated to such Member in an amount and manner
         sufficient to eliminate a deficit in the Member's capital account
         created by such adjustments, allocations or distributions as quickly as
         possible. This Section 4(b) is intended to constitute a "qualified
         income offset" within the meaning of Treasury Regulations Section
         1.704-1(b)(2)(ii)(d)(3).

         c.       MINIMUM GAIN CHARGEBACK. If there is a net decrease in
         Partnership Minimum Gain (as defined in Treasury Regulations Section
         1.704-2(b)(2)) during any Company fiscal year, each Member shall be
         allocated items of Company income and gains in accordance with Treasury
         Regulations Section 1.704-2(f)(1) for such year (and, if necessary,
         subsequent years) in an amount equal to such Member's share of such net
         decrease in Partnership Minimum Gain determined in accordance with
         Treasury Regulations Section 1.704-2(g)(2). This Section 4(c) is
         intended to comply with the minimum gain chargeback requirement in
         Treasury Regulations Section 1.704-2(f)(1) and shall be interpreted
         consistently therewith.

         d.       RECAPTURE INCOME. Any recapture income resulting from the sale
         or other taxable disposition of any Company assets shall be allocated,
         to the extent possible,

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         among the Members in the same proportion that the deductions directly
         or indirectly giving rise to such recapture income were allocated.

         e.       LIMITATION UPON MEMBER'S LOSS ALLOCATIONS. Company losses
         shall not be allocated to a Member if such allocation of losses would
         cause the Member to have a negative balance in the Member's Capital
         Account in excess of the sum of (i) the amount, if any, the Member is
         obligated to restore to the Company under this Agreement and (ii) the
         amount the Member is deemed to be obligated to restore to the Company
         pursuant to the penultimate sentences of Treasury Regulations Sections
         1.704-2(g)(1) and 1.704-2(i)(5). Company losses which cannot be
         allocated to a Member shall be allocated to the other Members;
         provided, however, that if no Member may be allocated Company losses
         due to the limitations of this Section 4(e), Company losses will be
         allocated to all Members in accordance with their respective Membership
         Interests.

         f.       CODE SECTION 704(c) ALLOCATIONS. In accordance with Code
         Sections 704(b) and 704(c) and the Treasury Regulations promulgated
         thereunder, Company income, gains, deductions, and losses with respect
         to any property contributed to the capital of the Company shall be
         allocated among the Members so as to take account of any variation
         between the adjusted basis of such property to the Company for federal
         income tax purposes and its fair market value at that time (computed in
         accordance with the Treasury Regulations). In the event Company
         property is revalued in accordance with Treasury Regulations Section
         1.704-1(b)(2)(iv) at any time, subsequent allocations of Company
         income, gains, deductions, and losses with respect to such property
         shall take into consideration any variation between such property's
         revaluation and its adjusted basis for federal income tax purposes in
         the same manner as under Code Section 704(c) and the Treasury
         Regulations thereunder. Any elections or other decisions relating to
         such allocations shall be made by the Board of Governors in any manner
         that reasonably reflects the purpose and intention of this Agreement.

5.       DISTRIBUTIONS

Distributions shall be made to the Members in accordance with the following:

         a.       NON-LIQUIDATING DISTRIBUTIONS. All non-liquidating
         distributions of cash and other property shall be made to the Members
         of the Company, pro rata, in accordance with their respective
         Membership Interests. All non-liquidating distributions shall be made
         in such amounts and at such times as may be determined by the Company's
         Board of Governors. The Board of Governors may establish reasonable
         reserves as determined necessary to provide funds for improvements,
         contingencies or working capital of the Company. No distribution shall
         be made if the distribution would leave the Company unable to pay its
         debts as they become due in the usual course of business. Subject to
         the above limitations, the Company shall distribute pro rata to all
         Members (taking into account prior year losses), in accordance with the
         Members' respective Membership Interests, on an as-needed basis
         (including quarterly distributions if required), funds necessary to
         cover any income tax liability of the Members resulting from
         allocations of Company income to the Members, and the Board of
         Governors shall establish, from time

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         to time as appropriate, the assumed taxable rate (which shall be the
         same for all Members) to be used to calculate the amount of these
         distributions.

         b.       LIQUIDATING DISTRIBUTIONS. Whether or not the distribution by
         the Company shall constitute a "liquidating distribution" shall be
         determined by the Board of Governors of the Company, in its sole and
         absolute discretion. In the event that a distribution is a liquidating
         distribution, the distribution shall be made and allocated among the
         Members as follows:

                  i.       POSITIVE CAPITAL ACCOUNTS. Distribution shall first
                  be made to all Members with positive Capital Account balances
                  (after such balances have been adjusted to reflect the
                  allocation of Company profit or loss arising from such event),
                  in proportion to and to the extent of such positive balances.

                  ii.      REMAINING AMOUNTS. Distribution, if any, shall next
                  be made to all Members of the Company, pro rata, in proportion
                  to their respective Membership Interests in the Company.

         c.       RESTORATION OF DEFICIT CAPITAL ACCOUNTS. A Member with a
         deficit balance in its Capital Account after all the allocations and
         distributions pursuant to Sections 4 and 5 of this Agreement have been
         made upon liquidation of the Company or its Membership Interest shall
         not be obligated to contribute property or cash to the Company in order
         to restore such deficit Capital Account balance.

         d.       AMOUNTS WITHHELD. All amounts withheld pursuant to the Code or
         any provision of any other federal, state, local or foreign tax law
         with respect to any payment, distribution or allocation to the Company
         or the Members shall be treated as amounts distributed to the Members
         pursuant to this Section 5 for all purposes under this Agreement. The
         Chief Manager is authorized to withhold from distributions made to the
         Members and to pay over to any federal, state, local or foreign
         government any amounts required to be so withheld pursuant to the Code
         or any provisions of any other federal, state, local or foreign law.

6.       CONFLICTS OF INTEREST, SALARIES AND DRAWINGS

Any Member, or his affiliates, may deal with, perform services for, and sell
goods to the Company without limitation; provided, however, that any
compensation for such services or goods shall be limited to amounts and rates
determined by the Board of Governors. There shall be no set salaries or drawings
allowed and paid to the Members unless the same are duly authorized at a meeting
held for such purpose by the Board of Governors.

7.       VOTING OF MEMBERSHIP INTERESTS

As to matters to be voted on by the Members, each Member shall have the right to
cast one vote for each membership interest unit owned by the Member. Except to
the extent otherwise

                                      - 5 -

<PAGE>

specified in this Agreement, each Member shall be free to vote its membership
interest units in its discretion.

8.       MANAGEMENT, DUTIES AND RESTRICTIONS

         a.       GENERAL MANAGEMENT. The general management and day-to-day
         operations of the Company shall be the responsibility of those managers
         appointed by the Board of Governors for such purpose. It is understood
         that the Board of Governors may appoint Governors as managers. All
         matters of general policy of the Company shall be decided by the Board
         of Governors.

         b.       BOARD OF GOVERNORS. The Company's Board of Governors shall
         consist of the number of persons as provided in the Bylaws. The Members
         shall elect the Governors by the vote of the Members holding a majority
         of the Membership Interests. Notwithstanding the foregoing, Carriere
         shall have the right to nominate and have elected one (1) governor.
         Each Member agrees to vote its Membership Interest in favor of the
         nominee so designated by Carriere and each Member shall take no action
         to prevent the individual so nominated from being elected to the Board
         of Governors. Vacancies on a Board of Governors relating to the
         governor nominated by Carriere shall be filled as designated by
         Carriere. This right of Carriere shall only benefit Carriere, may not
         be assigned or otherwise transferred by Carriere, shall not benefit any
         other Member of the Company (including any successors to or assigns of
         Carriere's Membership Interest) and shall terminate upon the earliest
         to occur of (i) Carriere's death or "disability" (for purposes hereof,
         "disability" shall mean that Carriere shall become unable to perform
         his employment duties as the result of his physical or mental
         impairment for an aggregate of 180 days in any period of 365
         consecutive days), (ii) such time as Carriere no longer owns 20% or
         more of the membership interest units of the Company or (iii) such time
         as Carriere is no longer employed by the Company as a result of his
         voluntary termination or a termination by the Company "for cause" (as
         such term is defined in his employment agreement with the Company).

         c.       CHIEF MANAGER/PRESIDENT. An affirmative vote of the Board of
         Governors shall be required to appoint a person as the Company's Chief
         Manager or President. The Chief Manager shall manage the affairs of the
         Company in a prudent and businesslike fashion and shall use his best
         efforts to carry out the purposes and character of the business of the
         Company. The Chief Manager shall have the responsibilities set forth in
         the Company's Bylaws. If no Chief Manager is elected, then the
         President of the Company shall perform the duties and discharge the
         responsibilities of the Chief Manager.

         d.       RESTRICTED ACTIVITIES. Notwithstanding any of the provisions
         of this Section, neither the Chief Manager, the President nor any
         Member may take any of the following actions without the consent of all
         of the Members:

                  i.       Perform any act in contravention of this Agreement;

                                      - 6 -

<PAGE>

                  ii.      Possess Company property or assign any rights in
                  specific Company property for other than a Company purpose;
                  and

                  iii.     Commingle Company funds with any Member's own funds.

         e.       FULL TIME NOT REQUIRED. In their capacity as Members of the
         Company, the Members shall devote such of their time to the Company's
         business as each deems necessary to accomplish the Member's
         responsibilities and the Company's purpose, and shall not be obligated
         to devote their full time to the Company's business. This limitation
         does not limit obligations which a Member may otherwise have to the
         Company in connection with, for example, that Member's employment by
         the Company. Furthermore, any Member or an affiliate of any Member may
         engage in or possess an interest in other business ventures of any
         nature or description independently or with others and neither the
         Company nor any Member shall have any rights in or to such independent
         venture or the income or profits derived therefrom.

         f.       MEMBER SERVICES/COMPENSATION. It is expected and understood
         that Edward J. Drenttel, Laurence E. Gamst and Richard A. Hoel
         (collectively, the "Hoel Group"), each a Member of the Company, will be
         providing consulting services to the Company on an ongoing basis. These
         consulting services will include management, financial and oversight
         responsibilities, and providing operational direction on a regular
         basis. A consulting fee of $10,000 per month will be paid by the
         Company to the Hoel Group for these consulting services. This
         arrangement will be reviewed by the Board of Governors on an annual
         basis. Additionally, it is expected and understood that personnel of
         another Member of the Company, Aero Systems Engineering, Inc. ("ASE"),
         will be performing services for the Company on an as requested, as
         needed basis. ASE will be compensated on a time and materials basis at
         the same rates typically used by ASE to internally allocate its costs
         for such services. For example, engineering time is currently
         internally allocated at 210% of the engineer's hourly rate of
         compensation. Services anticipated to be provided by ASE personnel
         include, but are not limited to, engineering, accounting and payroll.
         ASE will not be compensated for executive oversight services.

9.       ACCOUNTING

The Company shall prepare or have prepared an annual financial report for the
Company as soon as practicable after the end of each fiscal year of the Company.
These financial statements shall be delivered to all of the Members and shall
include all necessary federal income tax information needed in the preparation
of the individual tax returns of each Member. Financial statements need not be
based upon a certified audit.

10.      RESTRICTIONS ON TRANSFERABILITY

         a.       GENERAL. Except as otherwise expressly provided or permitted
         by this Agreement, no Member shall assign, transfer, sell, exchange,
         give by gift, hypothecate, mortgage, encumber or otherwise dispose of
         all or any portion of the Membership Interest of the Member or suffer
         the same to be encumbered, charged or taken

                                      - 7 -

<PAGE>

         involuntarily (collectively, a "Disposition"). Any Disposition by a
         Member of any portion of the Membership Interest of the Member must
         involve a transfer of both the financial rights and the governance
         rights relating to the transferred Membership Interest, unless such
         transfer is approved by the Board of Governors. Any Disposition which
         is not made pursuant to and in accordance with the terms and conditions
         of this Agreement shall be void and of no effect and shall vest no
         right, title or interest in the transferee.

         b.       PERMITTED TRANSFERS. Notwithstanding anything in this
         Agreement to the contrary, subject to the satisfaction of the
         additional conditions specified in this Section 10(b), transfers of
         part or all of a Membership Interest by a Member to or from their
         respective "Permitted Transferees" (as such term is defined below) and
         between or among their respective Permitted Transferees or between
         Members are hereby specifically permitted, will not require the advance
         written consent of the Members or the Board of Governors and will not
         trigger or create any purchase options or other options or obligations
         under this Agreement (collectively, "Permitted Transfers"). For
         purposes of this provision, "Permitted Transferee" means, with respect
         to any Member, any entity controlled by the Member, with "control"
         constituting the ability to control at least eighty percent (80%) of
         the voting power of such entity, directly or indirectly (including, but
         not limited to, trusts where the beneficiaries of the trust consist of
         his spouse, children, stepchildren, grandchildren or step-grandchildren
         and where the trustee of such trust is the transferring Member). In
         each such situation, the Disposition will only be permitted if, prior
         to completion of such Disposition, the following shall be provided to
         the Board of Governors:

                  i.       A written agreement of the transferee, in form and
                  substance satisfactory to the Board of Governors, to be bound
                  by this Agreement, which shall include an agreement by the
                  transferee to execute any and all other documents that the
                  Board of Governors may deem necessary or appropriate to effect
                  and evidence such transfer and the agreements indicated above.
                  If the transferee does not provide such a written agreement,
                  the transferee shall retain the "financial rights" which
                  relate to the transferred Membership Interest, but shall be
                  deemed to have forfeited all "governance rights" which relate
                  to the transferred Membership Interest.

                  ii.      An opinion of counsel, satisfactory in form and
                  substance to the Board of Governors, that the Permitted
                  Transfer will not terminate the Company or impair its ability
                  to be taxed as a partnership, and that the transfer
                  constitutes an exempt transaction and does not require
                  registration under applicable securities laws.

         c.       VOLUNTARY TRANSFERS. A Member may not voluntarily assign or
         transfer all or any portion of the Membership Interest of the Member
         except in accordance with the following:

                  i.       NOTICE REQUIRED. A Member proposing to transfer all
                  or a portion of the Membership Interest of the Member (the
                  "Transferring Member") shall be

                                      - 8 -

<PAGE>

                  required to provide written notice to all other Members and
                  the Board of Governors of the Company. The written notice (the
                  "Transfer Notice") shall specify the Membership Interest
                  proposed to be transferred (the "Transfer Interest"), the name
                  and address of the proposed transferee, the price and payment
                  terms, and any other terms and conditions of the transfer,
                  together with a representation, covenant and warranty that the
                  proposed transferee's offer to purchase the Transfer Interest
                  is genuine.

                  ii.      GENERAL - MEMBER RIGHT OF FIRST REFUSAL. Except as
                  provided under Section 10(c)(iii) below, delivery of the
                  Transfer Notice to the Members shall create an option in favor
                  of all Members other than the Transferring Member (the
                  "Remaining Members") to acquire all, but not less than all, of
                  the Transfer Interest. Terms of this option shall be the same
                  as those specified in the Transfer Notice. Allocation exercise
                  of the option among the Remaining Members shall be as follows:

                           (1)      ASE AS A REMAINING MEMBER. If ASE is one of
                           the Remaining Members, this option shall first be
                           exercisable by ASE. ASE shall have a period of thirty
                           (30) days, from receipt of the Transfer Notice,
                           within which to exercise this option. Exercise of the
                           option shall be made by ASE delivering written notice
                           thereof to the Board of Governors and the
                           Transferring Member. The other Remaining Members
                           shall then have a period of thirty (30) days
                           following expiration of the 30-day option period
                           provided to ASE within which to exercise their option
                           to acquire that portion, if any, of the Transfer
                           Interest not elected to be acquired by ASE. Exercise
                           of the option by the other Remaining Members may only
                           be made with respect to all of the Transfer Interest
                           which was not elected to be purchased by ASE.
                           Exercise of the option shall be made by written
                           notice delivered to the Board of Governors and the
                           Transferring Member. Unless otherwise agreed among
                           the other Remaining Members, each such Remaining
                           Member may purchase that percentage of the Transfer
                           Interest not purchased by ASE which bears the same
                           ratio as the Membership Interest of such Remaining
                           Member bears to the Membership Interest of all
                           Remaining Members (excluding ASE). In the event that
                           a Remaining Member does not purchase the full amount
                           of the Transfer Interest that such Remaining Member
                           is entitled to purchase, the other Remaining Members
                           (other than ASE) may purchase the excess on a
                           pro-rata basis, and the 30-day period specified above
                           shall be extended as necessary to accommodate this
                           process.

                           (2)      ASE NOT AS A REMAINING MEMBER. If ASE is not
                           a Remaining Member, then all of the Remaining Members
                           shall have a period of thirty (30) days, from receipt
                           of the Transfer Notice, within which to exercise the
                           option. Exercise of the option shall be made by
                           written notice delivered to the Board of Governors
                           and the Transferring Member. Unless otherwise agreed
                           among the Remaining Members, each Remaining

                                      - 9 -

<PAGE>

                           Member may purchase that percentage of the Transfer
                           Interest which bears the same ratio as the Membership
                           Interest of such Remaining Member bears to the
                           Membership Interests of all Remaining Members. In the
                           event that a Remaining Member does not purchase the
                           full amount of the Transfer Interest that such
                           Remaining Member is entitled to purchase, the other
                           Remaining Members may purchase the excess on a pro
                           rata basis, and the 30-day period specified above
                           shall be extended as necessary to accommodate this
                           process.

                           (3)      FAILURE TO EXERCISE OPTION. Absent exercise
                           of the option by all or a portion of the Remaining
                           Members with respect to the entire Transfer Interest,
                           any partial acceptance shall be invalid and, upon
                           expiration of the option period provided to the
                           Remaining Members in Section 10(c)(ii)(1) or (2), as
                           the case may be, the Transferring Member may then
                           transfer the Transfer Interest as proposed, provided
                           (x) such transfer is completed within thirty (30)
                           days thereafter, (y) such transfer does not occur on
                           terms more favorable to the transferee than the terms
                           upon which the Transfer Interest was offered to the
                           Remaining Members, and (z) prior to completion of
                           such transfer, the following shall be provided to the
                           Board of Governors:

                                    (a)      A written agreement of the proposed
                                    transferee, in form and substance
                                    satisfactory to the Board of Governors, to
                                    be bound by this Agreement and all other
                                    agreements applicable to the Members, which
                                    shall include an agreement by the proposed
                                    transferee to execute any and all other
                                    documents that the Board of Governors may
                                    deem necessary or appropriate to effect and
                                    evidence such transfer and to confirm that
                                    the proposed transferee and the Transfer
                                    Interest are subject to and bound by this
                                    Agreement. If the proposed transferee does
                                    not provide such a written agreement, the
                                    proposed transferee shall retain the
                                    "financial rights" which relate to the
                                    Transfer Interest, but shall be deemed to
                                    have forfeited all "governance rights" which
                                    relate to the Transfer Interest.

                                    (b)      An opinion of counsel, satisfactory
                                    in form and substance to the Board of
                                    Governors, that the transfer will not
                                    terminate the Company or impair its ability
                                    to be taxed as a partnership and that the
                                    transfer constitutes an exempt transaction
                                    and does not require registration under
                                    applicable securities laws.

                  iii.     ASE TRANSFER OF GREATER THAN TWENTY-FIVE PERCENT -
                  TAG-ALONG/DRAG-ALONG OPTIONS. If the proposed voluntary
                  transfer involves the transfer by ASE of greater than
                  twenty-five percent (25%) of the total membership interest
                  units owned by all Members of the Company, Section

                                     - 10 -

<PAGE>

                  10(c)(ii) shall not apply and delivery of the Transfer Notice
                  by ASE to the Members shall create the following options:

                           (1)      TAG-ALONG OPTION. At the option of each
                           Member other than ASE (collectively, the "Remaining
                           Members"), ASE agrees to condition its sale to the
                           proposed transferee upon acquisition by the proposed
                           transferee of a "proportionate share" of the
                           Membership Interest of the Remaining Member, at the
                           same per unit price and under the same terms and
                           conditions involved in the sale of the Transfer
                           Interest by ASE. For purposes of this provision, a
                           "proportionate share" shall be the percentage equal
                           to the ratio of (i) the number of membership interest
                           units to be sold by ASE to the proposed transferee,
                           divided by (ii) the total number or membership
                           interest units owned by ASE prior to such sale. As to
                           each Remaining Member, this option must be exercised,
                           if at all, by the Remaining Member providing ASE with
                           written notice thereof within fifteen (15) days from
                           receipt of the notice from the Board of Governors.

                           (2)      DRAG-ALONG OPTION. In connection with any
                           sale which triggers a tag-along option pursuant to
                           Section 10(c)(iii)(1), ASE shall have the option to
                           require that one or more Remaining Members sell a
                           "proportionate share" of the Membership Interests of
                           the Remaining Members to the proposed transferee, at
                           the same per unit price and under the same terms and
                           conditions involved in the sale of the Transfer
                           Interest by ASE; provided that if the sale also
                           involves the sale of affiliates of the Company, the
                           allocation of the aggregate purchase price among the
                           Company and its affiliates shall be commercially
                           reasonable to reflect the relative values of the
                           Company and its affiliates. For purpose of this
                           provision, a "proportionate share" shall be the
                           percentage equal to the ratio of (i) the number of
                           membership interest units to be sold by ASE to the
                           proposed transferee, divided by (ii) the total number
                           of membership interest units owned by ASE prior to
                           such sale. If exercised, written notice must be
                           provided to the affected Remaining Members within
                           fifteen (15) days from receipt of the notice from the
                           Board of Governors.

         d.       INVOLUNTARY TRANSFERS.

                  i.       GENERAL. In the event of any involuntary sale or any
                  other involuntary Disposition whatsoever of part or all of the
                  Membership Interest of any Member other than as permitted by
                  this Agreement (hereinafter referred to as the "Involuntary
                  Transfer"), the Member whose Membership Interest is subject to
                  such Involuntary Transfer shall be required to send written
                  notice to the Board of Governors and all Members describing in
                  reasonable detail such Involuntary Transfer, including the
                  identity of the involuntary transferee (the "Involuntary
                  Transferee") and the circumstances of the Involuntary Transfer
                  (for example, foreclosure of pledge, divorce decree or
                  bankruptcy filing).

                                     - 11 -

<PAGE>

                  ii.      PURCHASE OPTION. Upon the occurrence of an
                  Involuntary Transfer, the remaining Members (the "Remaining
                  Members") shall have the option, exercisable by written notice
                  to the Member undergoing the Involuntary Transfer (hereinafter
                  referred to as the "Involuntary Transferor") or to his or its
                  successor or legal representative, as appropriate, to purchase
                  all or any portion of the Membership Interest of the
                  Involuntary Transferor which is subject to the Involuntary
                  Transfer (the "Transfer Interest"). The purchase price to be
                  paid to the Involuntary Transferor shall be as set forth in
                  Section 11 herein, and the payment terms shall be as set forth
                  in Section 12 herein; provided however, that for purposes of
                  establishing the purchase price to be paid for the Transfer
                  Interest, the following shall apply:

                           (1)      Immediately upon occurrence of the
                           Involuntary Transfer, the parties shall commence the
                           Section 11 process for determining the purchase price
                           for the Transfer Interest;

                           (2)      The "selling party" under Section 11 shall
                           be the Involuntary Transferee, and the "purchasing
                           party" under Section 11 shall be the Remaining
                           Members; and

                           (3)      Decisions to be made by the purchasing party
                           shall be as decided by those Remaining Members
                           representing a majority of the Membership Interests
                           held by all Remaining Members.

                  iii.     EXERCISE AND ALLOCATION OF OPTION AMONG MEMBERS.

                           (1)      ASE AS A REMAINING MEMBER. If ASE is one of
                           the Remaining Members, this option shall first be
                           exercisable by ASE. ASE shall have until fifteen (15)
                           days after determination of the purchase price within
                           which to exercise all or any portion of this option,
                           it being expressly understood that less than all of
                           the Transfer Interest may be purchased. Exercise of
                           the option shall be made by ASE delivering written
                           notice thereof to the Board of Governors and the
                           Involuntary Transferor. The other Remaining Members
                           shall then have a period of thirty (30) days
                           following expiration of the option period provided to
                           ASE within which to exercise their option to acquire
                           all or any portion of the Transfer Interest not
                           elected to be acquired by ASE. Exercise of the option
                           shall be made by written notice delivered to the
                           Board of Governors and the Transferring Member.
                           Unless otherwise agreed among the other Remaining
                           Members, each such Remaining Member may purchase that
                           percentage of the Transfer Interest not purchased by
                           ASE which bears the same ratio as the Membership
                           Interest of such Remaining Member bears to the
                           Membership Interest of all Remaining Members
                           (excluding ASE). In the event that a Remaining Member
                           does not purchase the full amount of the Transfer
                           Interest that such Remaining Member is entitled to
                           purchase, the other Remaining Members (other than
                           ASE) may purchase the excess on a pro-

                                     - 12 -

<PAGE>

                           rata basis, and the 30-day period specified above
                           shall be extended as necessary to accommodate this
                           process.

                           (2)      ASE NOT AS A REMAINING MEMBER. If ASE is not
                           a Remaining Member, then all of the Remaining Members
                           shall have until fifteen (15) days after
                           determination of the purchase price within which to
                           exercise all or any portion of this option, it being
                           expressly understood that less than all of the
                           Transfer Interest may be purchased. Exercise of the
                           option shall be made by written notice delivered to
                           the Board of Governors and the Involuntary
                           Transferor. Unless otherwise agreed among the
                           Remaining Members, each Remaining Member may purchase
                           that percentage of the Transfer Interest which bears
                           the same ratio as the Membership Interest of such
                           Remaining Member bears to the Membership Interests of
                           all Remaining Members. In the event that a Remaining
                           Member does not purchase the full amount of the
                           Transfer Interest that such Remaining Member is
                           entitled to purchase, the other Remaining Members may
                           purchase the excess on a pro rata basis, and the
                           15-day period specified above shall be extended as
                           necessary to accommodate this process.

                  iv.      FAILURE TO EXERCISE OPTION. Upon expiration of the
                  option period provided to the Remaining Members under Section
                  10(d)(iii) above, an Involuntary Transfer of that portion of
                  the Transfer Interest not elected to be purchased by the
                  Remaining Members will occur, and such interest shall be
                  transferred in accordance with the provisions set forth in the
                  Act. The Involuntary Transferee shall be obligated to provide
                  the following to the Board of Governors:

                           (1)      A written agreement of the Involuntary
                           Transferee, in form and substance satisfactory to the
                           Board of Governors, to be bound by this Agreement and
                           all other agreements applicable to the Members, which
                           shall include an agreement by the Involuntary
                           Transferee to execute any and all other documents
                           that the Board of Governors may deem necessary or
                           appropriate in order to effect and evidence such
                           transfer and to confirm that the Involuntary
                           Transferee and the Transfer Interest are subject to
                           and bound by this Agreement. If the Involuntary
                           Transferee does not provide such a written agreement,
                           the Involuntary Transferee shall retain the
                           "financial rights" which relate to the Transfer
                           Interest, but shall be deemed to have forfeited all
                           "governance rights" which relate to the Transfer
                           Interest.

                           (2)      An opinion of counsel, satisfactory in form
                           and substance to the Board of Governors, that the
                           Involuntary Transfer will not terminate the Company
                           or impair its ability to be taxed as a partnership
                           and that the Involuntary Transfer constitutes and
                           exempt transaction that does not require registration
                           under applicable securities laws.

                                     - 13 -

<PAGE>

         e.       DEATH. Upon the death of a Member (the "Deceased Member"), the
         successors, heirs, devisees, legal representatives, guardians or
         assigns, as the case may be, of the Deceased Member (the "Succeeding
         Members") shall succeed to the Membership Interest of the Deceased
         Member and each shall be considered a Member of the Company. Except as
         provided in this Section 10(e), the Members agree that the Succeeding
         Members shall assume all "financial rights" and all "governance rights"
         formerly associated with the Deceased Member's Membership Interest.
         Notwithstanding anything in this Agreement to the contrary, the
         Succeeding Members shall be bound by this Agreement as if original
         signatories hereto and shall execute a written agreement, in form and
         substance satisfactory to the Board of Governors, to be bound by this
         Agreement. If a given Succeeding Member does not provide such a written
         agreement, that Succeeding Member shall retain the "financial rights"
         which relate to the Deceased Member's Membership Interest but shall be
         deemed to have forfeited all "governance rights" formerly associated
         with the Deceased Member's Membership Interest. This Section 10(e) is
         intended to only apply to individual Members and shall not apply to
         entity Members. The dissolution of a Member, other than in connection
         with a Permitted Transfer, shall be considered an Involuntary Transfer
         and shall trigger purchase options as provided in Section 10(d) above.

         f.       TERMINATION OF CARRIERE EMPLOYMENT PRIOR TO 2007.
         Notwithstanding anything contained in this Agreement to the contrary,
         upon the termination of Carriere's employment with the Company on or
         prior to December 31, 2006 as a result of (i) his voluntary
         termination, (ii) his termination of employment by the Company "for
         cause" (as such term is defined in his employment agreement with the
         Company) or (iii) as a result of his death or "disability" (for
         purposes hereof, "disability" shall mean that Carriere shall become
         unable to perform his employment duties as the result of his physical
         or mental impairment for an aggregate of 180 days in any period of 365
         consecutive days), ASE will have the right to acquire all, some or none
         of the Membership Interest of Carriere on the terms indicated below:

                  i.       OFFER CREATED. Upon termination of Carriere's
                  employment with the Company as indicated above, the Membership
                  Interest owned by Carriere (the "Carriere Interest") shall be
                  offered for sale to ASE. The offer shall be made at a purchase
                  price determined as follows:

                           (1)      Carriere, the Hoel Group and ASE previously
                           entered into that certain Membership Interest
                           Purchase Agreement, dated October 31, 2003, pursuant
                           to which ASE and the Hoel Group acquired from
                           Carriere 60% of the issued and outstanding membership
                           interest units of the Company (the "Purchase
                           Agreement").

                           (2)      Immediately following termination of
                           Carriere's employment as indicated above, the Company
                           shall calculate and determine the aggregate purchase
                           price paid to and received by Carriere from ASE and
                           the Hoel Group (collectively, the "Buyers") under the
                           Purchase Agreement through the date of the
                           termination of Carriere's employment with the Company
                           (it

                                     - 14 -

<PAGE>

                           being understood that this amount may be less than
                           the aggregate "purchase price" to be paid to Carriere
                           by the Buyers under the Purchase Agreement). This
                           amount is hereinafter referred to as the "Aggregate
                           To-Date Payments."

                           (3)      The purchase price to be paid under this
                           Section shall be equal to the Aggregate To-Date
                           Payments multiplied by a fraction, the numerator of
                           which is the total number of membership interest
                           units to be acquired pursuant to this Section 10(f)
                           and the denominator of which is 600 (which represents
                           the total number of membership interest units
                           acquired by the Buyers from Carriere under the
                           Purchase Agreement).

                           (4) If Carriere's employment is terminated subsequent
                           to any change in the number of outstanding membership
                           interest units of the Company occurring by reason of
                           any membership interest unit dividend, split, reverse
                           split or similar recapitalization of the Company,
                           there shall be an appropriate adjustment to the 600
                           denominator used to calculate the purchase price so
                           that the purchase price calculation will be the same
                           as if it occurred prior to such membership interest
                           unit dividend, split, reverse split or other similar
                           recapitalization.

                  The Company shall calculate the purchase price to be paid for
                  100% of the Carriere Interest and send written notice thereof
                  to Carriere and ASE. Terms of payment for any purchase of part
                  or all of the Carriere Interest under this Section 10(f) shall
                  require that the entire purchase price be paid in cash at
                  closing.

                  ii.      ACCEPTANCE OF THE OFFER. The offer shall create an
                  option in favor of ASE. ASE shall have until thirty (30) days
                  after its receipt of the written notice from the Company of
                  the purchase price to be paid for 100% of the Carriere
                  Interest within which to exercise all or any portion of this
                  option, it being expressly understood that less than all of
                  the Carriere Interest may be purchased. If less than all of
                  the Carriere Interest is purchased, the aggregate purchase
                  price indicated in the written notice from the Company shall
                  be proportionately reduced as provided under Section 10(f)(i)
                  above. Exercise of the option shall be made by written notice
                  delivered to Carriere.

                  iii.     FAILURE TO EXERCISE OPTION. Upon expiration of the
                  option period provided to ASE under Section 10(f)(ii) above,
                  any portion of the Carriere Interest which has not been
                  elected to be purchased by the Company shall be retained by
                  Carriere, and the rights and interest of Carriere as they
                  relate to the retained portion of the Carriere Interest and
                  the Company shall continue to be governed by and subject to
                  all provisions of this Agreement.

         g.       PUT OPTION. Beginning November 1, 2008, through October 31,
         2013 (the "Put Period"), Carriere shall have the one-time right to
         require that ASE purchase all of the Carriere Interest on the following
         terms:

                                     - 15 -

<PAGE>

                  i.       PUT NOTICE. To exercise this put option, Carriere
                  must deliver written notice thereof to ASE specifically
                  stating his exercise of his put option rights under this
                  Section 10(g) (the "Put Notice").

                  ii.      PURCHASE PRICE. The purchase price shall be equal to
                  the "appraised value" of the Carriere Interest, determined in
                  accordance with the following:

                           (1)      Within thirty (30) days following ASE's
                           receipt of the Put Notice, ASE and Carriere shall
                           each designate a professional appraiser experienced
                           in appraising the value of businesses. The two
                           appraisers shall for a period of thirty (30) days
                           thereafter attempt to agree upon the appraised value
                           of the Carriere Interest. If the two appraisers are
                           able to agree, the agreed upon appraised value shall
                           be the purchase price. If the two appraisers are not
                           able to agree, they shall jointly select a third
                           professional appraiser. Within thirty (30) days
                           thereafter, all three appraisers shall submit their
                           appraised value of the Carriere Interest. The
                           purchase price shall be equal to the average of the
                           two closest appraisals.

                           (2)      If either party fails to identify an
                           appraiser within the 30-day period specified above,
                           the appraiser identified by the other party shall
                           determine the appraised value of the Carriere
                           Interest and the value determined by such appraiser
                           shall be the purchase price.

                           (3)      The appraisers shall be instructed not to
                           apply any minority interest discount, but to apply
                           discounts for lack of marketability if and as
                           appropriate when valuing the Company.

                           (4)      The cost of the appraisal(s) shall be paid
                           one-half by ASE and one-half by Carriere.

                  iii.     ASE ELECTION AND TERMS OF PAYMENT. Upon determination
                  of the purchase price, ASE shall have a period of thirty (30)
                  days thereafter to elect whether or not to purchase the
                  Carriere Interest at the appraised purchase price. ASE's
                  election shall be made by written notice delivered to Carriere
                  within the 30-day period. If ASE fails to so elect within such
                  30-day period, ASE will be deemed to have elected to purchase
                  the Carriere Interest. If ASE elects to purchase the Carriere
                  Interest, the purchase price shall be paid 25% down and the
                  balance pursuant to ASE's execution and delivery of a
                  promissory note in the form attached hereto as Exhibit B;
                  except that the note shall be a three-year promissory note and
                  interest will accrue under the promissory note at the
                  "applicable federal rate" in effect at the time of closing on
                  the purchase, determined in accordance with Internal Revenue
                  Code Section 1274(d).

                  iv.      CONSEQUENCE OF ASE ELECTION TO NOT PURCHASE. If ASE
                  elects to not purchase the Carriere Interest as provided
                  above, ASE commits to then, in good

                                     - 16 -

<PAGE>

                  faith, market and attempt to sell the entire Company. The
                  rights of Carriere under this Section are personal to him, may
                  not be assigned or otherwise transferred by him, shall not
                  benefit any other Member of the Company (including any
                  successors to or assigns of Carriere's Membership Interest)
                  and shall terminate upon the earliest to occur of (i)
                  Carriere's death, (ii) such time as Carriere no longer owns
                  any membership interest units in the Company or (iii) such
                  time as Carriere is no longer employed by the Company as a
                  result of his voluntary termination or termination by the
                  Company "for cause" (as such term is defined in his employment
                  agreement with the Company).

         h.       CALL OPTION. At any time from the date of this Agreement
         through October 31, 2013 (the "Call Period"), ASE shall have the right
         to acquire all, but not less than all, of the Membership Interest held
         by any Member of the Company. ASE may exercise this call option with
         respect to one, some or all of the other Members, and may exercise this
         call option at multiple times with respect to different Members
         throughout the Call Period. However, ASE may only exercise this call
         option with respect to a given Member as to the entire Membership
         Interest of that Member. ASE shall exercise this call option by
         delivering written notice thereof to the Member whose Membership
         Interest is to be acquired. The purchase price to be paid for a given
         Member's Membership Interest shall be equal to $10 million multiplied
         by a fraction, the numerator of which is the number of membership
         interest units then owned by the Member and the denominator of which is
         400; provided if ASE exercises this option subsequent to any change in
         the number of outstanding membership interest units of the Company
         occurring by reason of any membership interest unit dividend, split,
         reverse split or similar recapitalization of the Company, there shall
         be an appropriate adjustment to the denominator used to calculate the
         purchase price so that the purchase price calculation will be the same
         as if it occurred prior to such membership interest unit dividend,
         split, reverse split or other similar recapitalization. Payment terms
         shall require that the entire purchase price be paid in cash at
         closing.

         i.       CLOSING PROCEDURES. The closing of any purchase or sale of a
         Membership Interest pursuant to this Agreement shall take place within
         thirty (30) days following the last to expire applicable option period.
         The closing shall take at the principal business office of the Company.
         At the closing, the selling party shall deliver to the purchasing
         party, in exchange for payment of the purchase price, a full and
         complete assignment of the Membership Interest to be purchased and
         sold, together with any other documents as may be reasonably required
         to transfer full and complete title to the Membership Interest to the
         purchasing party, in form satisfactory to the purchasing party. The
         selling party shall warrant that the selling party has good title to,
         the right to possession of and the right to sell the Membership
         Interest and that the Membership Interest is transferred to the
         purchasing party free and clear of all pledges, liens, encumbrances,
         charges, proxies, restrictions, options, transfers and other adverse
         claims, except those as have been imposed by this Agreement. Each
         selling party shall further warrant that the selling party will
         indemnify and hold harmless the purchasing party for all costs,
         expenses and fees incurred in defending the title to and/or the right
         to possession of such Membership Interest.

                                     - 17 -

<PAGE>

         j.       SALE OF ENTIRE MEMBERSHIP INTEREST. Any Member who makes a
         disposition of all of the Membership Interest of the Member in
         accordance with the terms of this Agreement, or otherwise, shall no
         longer be a party to this Agreement and shall have no further rights or
         interests under this Agreement; provided that a Member who makes a
         disposition other than in compliance with the terms of this Agreement
         shall remain liable to the Company and the other Members for any
         damages resulting from such transfer.

11.      PURCHASE PRICE

Where any provision of this Agreement provides that the purchase price shall be
determined by this Section 11, the purchase price shall be equal to the fair
market value of the Membership Interest to be sold, determined in accordance
with the following:

         a.       MUTUAL AGREEMENT. The selling party and the purchasing party
         shall, for a period of fifteen (15) days after the occurrence of the
         event which triggered the purchase option (except in the case of death,
         where such 15-day period shall commence upon the later to occur of (i)
         the appointment of the personal representative of the Deceased Member
         or (ii) sixty (60) days after the death of the Deceased Member),
         attempt to mutually agree upon the fair market value of the Membership
         Interest to be sold. If the selling party and the purchasing party are
         not able to agree within this fifteen (15) day period, fair market
         value shall be determined by appraisal.

         b.       APPRAISAL. For a period of seven (7) days following expiration
         of the 15-day period specified in Section 11(a) above, the selling
         party and the purchasing party shall attempt to mutually agree upon an
         appraiser. If the parties agree upon the identity of the appraiser, the
         appraiser shall determine the fair market value of the Membership
         Interest to be sold, and the value determined by such appraiser shall
         be the purchase price. If the parties are not able to reach agreement
         within such 7-day period, each shall within seven (7) days thereafter
         identify an appraiser. If one party fails to identify an appraiser
         within such 7-day period, the appraiser identified by the other party
         shall determine the fair market value of the Membership Interest to be
         sold, and the value determined by such appraiser shall be the purchase
         price. If both parties identify an appraiser within such 7-day period,
         the two appraisers shall select a third appraiser and the third
         appraiser shall determine the fair market value of the Membership
         Interest to be sold. The value determined by such third appraiser shall
         be the purchase price. The costs and expense of the appraiser(s) shall
         be paid one-half by the selling party and one-half by the purchasing
         party.

         c.       DETERMINATION OF FAIR MARKET VALUE. The fair market value of a
         Membership Interest shall be determined without application of minority
         interest discounts. Thus, the fair market value of the Membership
         Interest of a Member in the Company shall be determined by appraising
         the fair market value of the Company as a whole, and multiplying the
         result by a fraction, the numerator of which is the number of
         membership interest units represented by the Membership Interest to be
         sold, and the denominator of

                                     - 18 -

<PAGE>

         which is the total number of membership interest units owned by all
         Members of the Company.

12.      PAYMENT TERMS

Unless otherwise agreed to by the parties, where any provision of this Agreement
provides that the payment terms shall be as specified this Section 12, the
purchase price shall be payable to the Transferring Member or his successor or
legal representative as follows:

         a.       the greater of (i) twenty percent (20%) of the purchase price,
         or (ii) where the Membership Interest of a Deceased Member is being
         purchased and the purchasing party is the beneficiary of a life
         insurance policy on the Deceased Member, the amount of such life
         insurance proceeds received by the purchasing party (not to exceed the
         purchase price), shall be payable in cash or certified funds at the
         closing, and

         b.       the remainder shall be payable by delivery of a five-year
         promissory note, the terms of which shall be as set forth in attached
         Exhibit B. Where a purchasing party gives such a note, the purchasing
         party shall pledge the Membership Interest then purchased to secure
         repayment of the note in accordance with and subject to a pledge
         agreement containing terms and conditions substantially as provided on
         attached Exhibit C.

13.      DISSOLUTION

         a.       DISSOLUTION EVENTS. Except as otherwise specifically provided
         herein, the Company shall not be dissolved or required to be wound up
         upon the occurrence of any event set forth in Section 322B.80, Subd.
         1(5) of the Act and such events shall not trigger an event of
         dissolution of the Company. In addition to as otherwise required by
         this Agreement, the Company shall be dissolved and its business wound
         up upon the earliest to occur of the following events:

                  i.       Members representing a majority of the voting power
                  of all Membership Interests shall agree in writing that the
                  Company shall be dissolved or shall vote, at a duly called and
                  held meeting of the Members of the Company, in favor of the
                  dissolution of the Company;

                  ii.      All assets of the Company shall have been distributed
                  to its members as authorized by the Board of Governors of the
                  Company;

                  iii.     The sale of all or substantially all of the Company's
                  assets, except that a deferred payment sale of such assets
                  shall not dissolve the Company and the Company shall continue
                  in existence until the last day of the calendar year in which
                  it shall have received the full amount of principal and
                  interest which it is entitled to receive with respect to such
                  deferred payment sale, whereupon the Company shall be
                  dissolved; and

                                     - 19 -

<PAGE>

                  iv.      The occurrence of any event which, under the laws of
                  the State of Minnesota and in spite of the terms of this
                  Agreement, shall cause the dissolution of the Company.

         b.       SALE OF ASSETS. Upon any dissolution requiring the winding up
         of the business of the Company, the Board of Governors will appoint a
         person to handle the liquidation of the assets of the Company (the
         "Liquidator"). The Board of Governors may replace the Liquidator at any
         time. The method, manner and timing of the liquidation of the assets of
         the Company will be left to the discretion of the Board of Governors
         and the Liquidator.

         c.       CONTRACTUAL OBLIGATIONS. The dissolution of the Company shall
         neither release nor relieve any of the Members of their contractual
         obligations.

14.      DISSOLUTION PROCEDURES

In the event of dissolution of the Company pursuant to Section 13 of this
Agreement or otherwise, the Company name, goodwill or similar intangible assets,
together with all other assets of the Company business, shall be sold and
distributed in the following order:

         a.       First, to the payment of the debts, liabilities and
         obligations of the Company (including any loans or advances that may
         have been made by the Members to the Company) and to the costs and
         expenses of the liquidation;

         b.       Next, to the establishment of such reserves, if any, deemed
         reasonably necessary for any contingent or unforeseen debts,
         liabilities, or obligations of the Company; and

         c.       Next, the balance shall be distributed to the Members as
         provided in Section 5 above.

15.      REMEDIES

In view of the purposes of this Agreement, the Members acknowledge that money
damages in the event of a default in the performance of any provision hereof may
be inadequate, and accordingly, any Member shall have the right, in addition to
any other remedies available, to apply for and receive from any court of
competent jurisdiction, equitable relief by way of restraining order, injunction
or otherwise, prohibitory or mandatory, to prevent a breach of the terms of this
Agreement or by way of specific performance to enforce performance of the terms
of this Agreement, or to rescission thereof, plus reimbursement for costs,
including reasonable attorneys' fees, incurred in the securing of such relief.
However, such right of equitable relief shall not be construed to be in lieu of
the right to seek the remedy at law.

16.      NOTICES

All notices, offers, and communications from any party to another party shall be
in writing, and shall be considered to have been duly given or served if sent by
first class, certified or registered mail, return receipt requested, postage
prepaid, to the party at his or its address as set forth

                                     - 20 -

<PAGE>

below, or to such other address as such party may hereafter designate by written
notice to the other parties:

         a.       If to the Company, or to the Board of Governors, to the
         attention of such party at 358 East Fillmore Avenue, St. Paul,
         Minnesota 55107-1289.

         b.       If to any Member, to the attention of such Member at the
         address specified on the attached signature page for such Member.

Notice shall be deemed to be received, whether actually received or not, two (2)
business days after it has been deposited in the United States mail, unless
actually received prior thereto.

17.      MISCELLANEOUS

         a.       ACKNOWLEDGMENT. Each covenant and agreement on the part of one
         party is understood and agreed to constitute an essential part of the
         consideration for each covenant and agreement on the part of the other
         party.

         b.       WAIVER. The waiver by any party of the breach of any provision
         of this Agreement shall not operate as or be construed as a waiver of
         any subsequent breach of such or any other provision.

         c.       SEVERABILITY. If any part of this Agreement or any part of any
         provision hereof shall be adjudicated to be void or invalid, then the
         remaining provisions hereof not specifically so adjudicated to be
         invalid shall be enforced to the fullest extent permitted.

         d.       GOVERNING LAW. This Agreement shall be subject to and governed
         by the laws of the State of Minnesota.

         e.       HEADINGS. The headings of the Sections of this Agreement are
         for convenience of reference only and do not form a part hereof and in
         no way interpret or construe such Sections.

         f.       BINDING EFFECT. This Agreement shall be binding upon and inure
         to the benefit of the heirs, personal representatives, successors and
         permitted assigns of the respective parties.

         g.       ENTIRE AGREEMENT/AMENDMENT. This Agreement contains the entire
         agreement of the parties. It may not be changed orally but only by an
         agreement in writing signed by the party against whom enforcement of
         any waiver, change, modification, extension or discharge is sought.
         Notwithstanding the foregoing, the Board of Governors of the Company
         may authorize and effect amendments to this Agreement and such
         amendments shall be valid and binding on all parties if such amendments
         are entered into for purposes of documenting and effecting the
         admission of a new member to the Company, the withdrawal or other
         removal of a member from the Company or a change in the relative
         membership interests of the members of the Company.

                                     - 21 -

<PAGE>

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

         i.       ACQUISITIONS OF MEMBERSHIP INTEREST BY THE COMPANY. The
         parties hereto understand and agree that any purchase of a Membership
         Interest by the Company shall be subject to the Company's ability to
         comply with the provisions of Minnesota Statutes, Section 322B.54, as
         amended, with respect to such purchase.

         j.       PREPARATION OF AGREEMENT. Winthrop & Weinstine, P.A. has
         drafted this Agreement at the request of the Company. By signing this
         Agreement, the Members acknowledge that they have been advised that
         Winthrop & Weinstine, P.A. is not representing them individually and
         that their interests under this Agreement may now or hereafter be
         adverse to or in conflict with the interests of the Company and/or with
         each other. The Members further acknowledge that Winthrop & Weinstine,
         P.A. has encouraged them to seek separate counsel because of potential
         conflicts of interest which exist, or which may arise in the future,
         and that the Members have in fact received or have had the opportunity
         to receive separate counsel.

         [THE REMAINDER OF THIS PAGE HAS INTENTIONALLY BEEN LEFT BLANK.
                  SIGNATURES APPEAR ON THE FOLLOWING PAGE(s).]

                                     - 22 -

<PAGE>

[SIGNATURE PAGE TO THAT CERTAIN MEMBER CONTROL AGREEMENT OF AUTOMATION,
MANUFACTURING & ROBOTIC TECHNOLOGIES, LLC, DATED OCTOBER 31, 2003.]

IN WITNESS WHEREOF, the undersigned have executed this signature page effective
as of the day and year indicated on the first page of the Automation,
Manufacturing & Robotic Technologies, LLC Member Control Agreement.

MEMBERS:    COMPANY:

         Automation, Manufacturing & Robotic Technologies, LLC

By: /s/ Charles Loux                            By: /s/ Raymond Carriere
   -----------------------------------             -----------------------------
   Charles H. Loux, President                      Raymond Carriere, President
358 East Fillmore Avenue
St. Paul, Minnesota 55107-1289

 /s/ Edward J. Drenttel
--------------------------------------
Edward J. Drenttel
Winthrop & Weinstine, P.A.
225 South Sixth Street, Suite 3500
Minneapolis, Minnesota  55402

--------------------------------------
Laurence E. Gamst
Divine, Scherzer & Brody, Ltd.
3000 Piper Jaffray Tower
222 South Ninth Street
Minneapolis, MN  55402

 /s/ Richard A. Hoel
--------------------------------------
Richard A. Hoel
Winthrop & Weinstine, P.A.
225 South Sixth Street, Suite 3500
Minneapolis, Minnesota  55402

 /s/ Raymond Carriere
--------------------------------------
Raymond Carriere
2333 Waters Drive
Mendota Heights, MN 55120

                                     - 23 -

<PAGE>

                                                                       EXHIBIT A

<TABLE>
<CAPTION>
                                            MEMBERSHIP INTEREST       MEMBERSHIP INTEREST
        NAME OF MEMBER                          UNITS OWNED               PERCENTAGE
        --------------                          -----------               ----------
<S>                                         <C>                       <C>
Aero Systems Engineering, Inc.                     510                       51%

Raymond Carriere                                   400                       40%

Edward J. Drenttel                                  30                        3%

Laurence E. Gamst                                   30                        3%

RICHARD A. HOEL                                     30                        3%

TOTAL                                            1,000                      100%
</TABLE>

                                     - 24 -

<PAGE>

                                    EXHIBIT B

                                 PROMISSORY NOTE

$__________        _____________, Minnesota

                                                       __________________, 20___

1. FOR VALUE RECEIVED, ________________________________ (the "Borrower"), hereby
promises to pay to the order of ____________________________________________
(the "Holder"), at such location as the Holder may direct, the principal sum of
____________________________ and ___/100 Dollars ($__________) together with
interest on the unpaid principal balance accruing as of the date hereof at a
rate equal to the announced prime lending rate of U.S. Bank National Association
as the same may change from time to time and be adjusted in the manner and at
the times hereinafter provided for.

2. The rate of interest due hereunder shall initially be determined as of the
date hereof and shall be adjusted on the first anniversary of the date of this
Note and every 12 months thereafter (each such date hereinafter being referred
to as an "Adjustment Date"). All such adjustments to said rate of interest shall
be made and become effective on the next corresponding Adjustment Date and said
rate of interest as adjusted shall remain in effect until the next Adjustment
Date. Interest hereunder shall be computed on the basis of a year of 365 days
and charged for actual days principal is unpaid.

3. This Note shall be due and payable in twenty (20) as nearly equal as possible
consecutive quarterly installments of principal and accrued interest commencing
on the ______ day of __________, 20__, and continuing on the same day of each
third calendar month thereafter until and including ______________, 20__.

4. All payments made by the Borrower shall, at the option of the Holder, be
applied first to costs of collection, if any, second to accrued interest and the
remainder thereof to principal.

5. The Borrower promises to pay all costs of collection, including but not
limited to, attorneys' fees, paid or incurred by the Holder on account of such
collection, whether or not suit is filed with respect thereto and whether or not
such costs are paid or incurred, or to be paid or incurred, prior to or after
the entry of judgment.

6. This Note may be prepaid at any time, either in whole or in part, without
premium or penalty.

7. As used herein, the term "Event of Default" shall mean and include any one or
more of the following events:

         a.       The Borrower shall fail to pay, when due, any amounts required
         to be paid by the Borrower under this Note;

                                     - 25 -

<PAGE>

         b. The Borrower shall file a petition in bankruptcy or for an
         arrangement pursuant to any present or future state or federal
         bankruptcy act or under a similar federal or state law, or shall be
         adjudicated a bankrupt or insolvent, or shall make a general assignment
         for the benefit of creditors, or shall be unable to pay its debts
         generally as they become due; or if an order for relief under any
         present or future federal bankruptcy act or similar state or federal
         law shall be entered against the Borrower; or if a petition or answer
         requesting or proposing the entry of such order for relief or the
         adjudication of the Borrower as a debtor or a bankrupt under a present
         or future state or federal bankruptcy act or a similar federal or state
         law shall be filed in any court and such petition and answer shall not
         be discharged or denied within thirty (30) days after the filing
         thereof; or if a receiver, trustee or liquidator of all or
         substantially all of the assets of the Borrower shall be appointed in
         any proceeding brought against the Borrower and shall not be discharged
         within thirty (30) days of such appointment; or if the Borrower shall
         consent to or acquiesce in such appointment; or if any property of the
         Borrower shall be levied upon or attached in any proceeding;

         c. Final judgment(s) for the payment of money shall be rendered
         against the Borrower and shall remain undischarged for a period of
         thirty (30) days during which execution shall not be effectively
         stayed; or

         d. The Borrower shall be or become insolvent (whether in the
         equity or bankruptcy sense) or, if an individual, shall die.

8.       Upon the occurrence of an Event of Default, the Holder shall give
written notice to the Borrower of such default, specifying the terms thereof,
and the Borrower shall be accorded ten (10) days from the date of the receipt of
such notice within which to cure such default. Such written notice shall be
delivered in writing to Borrower or sent by certified or registered mail to the
following address:

                         ______________________________
                         ______________________________
                         ______________________________

9.       Upon the occurrence of any Event of Default which is not cured by the
Borrower, and at any time and from time to time thereafter, the Holder shall
have the right to set off any and all amounts due hereunder by the Borrower to
the Holder against any indebtedness or obligation of the Holder to the Borrower.
Upon the occurrence of an Event of Default and at any time thereafter, the
unpaid principal balance hereof plus accrued interest hereon plus all other
amounts due hereunder shall, at the option of the Holder, be immediately due and
payable without notice or demand.

10.      Demand, presentment, protest and notice of nonpayment and dishonor of
this Note are hereby waived.

11.      This Note shall be governed by and construed in accordance with the
laws of the State of Minnesota.

                                     - 26 -

<PAGE>

12.      This Note is secured by that certain Pledge Agreement of even date
herewith between the Borrower and the Holder.

                                    BORROWER

                                    By:_________________________________________
                                       Its:_____________________________________

                                     - 27 -

<PAGE>

                                    EXHIBIT C

                                PLEDGE AGREEMENT

THIS AGREEMENT, made and entered into this ____ day of ____________, 20__, by
and between __________________________ (the "Pledgor") and ____________________
___________ (the "Pledgee").

WHEREAS, on the date hereof, Pledgee has made certain financial accommodations
to Pledgor under and pursuant to that certain Member Control Agreement (the
"Member Control Agreement") dated the 31st day of October, 2003, by and among
Pledgor, Pledgee and Automation, Manufacturing & Robotic Technologies, LLC, a
Minnesota limited liability company (the "Company"); and

WHEREAS, under and pursuant to the Member Control Agreement, Pledgor is
obligated to pledge certain membership interests in the Company to the Pledgee
as security for the full and complete performance of Pledgor's obligations under
and pursuant to that certain Promissory Note of even date herewith (the "Note")
in the original principal amount of _______________________ and ___/100 Dollars
($___________) (the "Obligations").

NOW, THEREFORE, in consideration of the foregoing premises, and further in
consideration of the extensions of credit by Pledgee to Pledgor on the date
hereof, Pledgor and Pledgee hereby agree as follows:

1.       PLEDGE. In consideration of Pledgee extending the above-referenced
financial accommodations to Pledgor, receipt of which is hereby acknowledged,
Pledgor hereby grants a security interest to the Pledgee in the membership
interests described on Exhibit A attached hereto evidencing the number of
Membership Interests in the Company specified in said Exhibit A (said membership
interests are hereinafter collectively referred to as the "Pledged Membership
Interests"). Pledgor shall execute and deliver to Pledgee any and all documents
and instruments as Pledgee may determine to be necessary in order to perfect and
maintain the security interest granted hereunder in and to the Pledged
Membership Interests.

2.       DISTRIBUTIONS. During the term of this pledge, and provided no Event of
Default (as defined below) has occurred and is then continuing, Pledgor shall be
entitled to receive all distributions and other amounts payable on or with
respect to the Pledged Membership Interests.

3.       VOTING RIGHTS. During the term of this pledge, and provided no Event of
Default has occurred and is then continuing, Pledgor shall have the right to
vote the Pledged Membership Interests.

4.       REPRESENTATIONS. Pledgor warrants and represents that there are no
restrictions upon the transfer or pledge of any of the Pledged Membership
Interests, other than as set forth in the Member Control Agreement, and that
Pledgor has the right to transfer and pledge such Membership Interests free and
clear of any security interests or other liens or encumbrances whatsoever and
without obtaining the consent of any third party or, if such consent is
required, it has been obtained on or prior to the date hereof.

5.       ADJUSTMENTS. In the event that during the term of this pledge any
reclassification, readjustment, or other change is declared or made in the
capital structure of the entity which has

                                     - 28 -

<PAGE>

issued any of the Pledged Membership Interests, all new, substituted, and
additional Membership Interests, or other securities, issued by reason of any
such change shall be delivered to and held by Pledgee under the terms of this
Pledge Agreement in the same manner as the Membership Interests originally
pledged hereunder.

6.       WARRANTS AND RIGHTS. In the event that during the term of this Pledge
Agreement warrants or any other rights or options shall be issued in connection
with the Pledged Membership Interests, such warrants, rights, and options shall
be immediately assigned and delivered by Pledgee to Pledgor, and if exercised by
Pledgor all new Membership Interests or other securities so acquired by Pledgor
shall be immediately assigned and delivered to Pledgee, in each case, to be held
under the terms of this Pledge Agreement in the same manner as the Membership
Interests originally pledged hereunder.

7.       RELEASE OF PLEDGED MEMBERSHIP INTERESTS. Upon the complete performance
of the Obligations, Pledgee shall release all of its rights in and to the
Pledged Membership Interests hereunder.

8.       DEFAULT. Upon the occurrence of an Event of Default, as that term is
defined in the Note, which is not cured in the manner provided in Section 7 of
the Note, and at any time thereafter, Pledgee shall have the rights and remedies
provided in the Uniform Commercial Code in force in the State of Minnesota and,
in this connection, Pledgee may, upon ten (10) days' written notice to Pledgor
which notice shall be deemed commercially reasonable for purposes of the Uniform
Commercial Code as adopted by the State of Minnesota, and without liability for
any diminution in price which may have occurred, sell all the Pledged Membership
Interests in such manner and for such price as the Pledgee may determine.
Pledgee shall be free to purchase all or any part of the Pledged Membership
Interests. Out of the proceeds of any sale, Pledgee may retain an amount equal
to the principal and accrued interest then due on the Note plus the amount of
the expenses of sale and costs of collection incurred by Pledgee with respect to
the Obligations, and shall pay any balance of such proceeds to Pledgor. In the
event that the proceeds of any sale are insufficient to cover the principal and
interest of the Note plus expenses of the sale and costs of collection, Pledgor
shall remain liable to Pledgee for any deficiency.

9.       WAIVER. No delay or failure by the Pledgee in the exercise of any right
or remedy shall constitute waiver thereof, and no single or partial exercise by
the Pledgee of any right or remedy shall preclude other or further exercise
thereof or the exercise of any other right or remedy.

10.      NOTICES. All notices, requests, demands and other communications
hereunder shall be in writing and shall be deemed to have been given when
personally delivered or deposited in the United States mail, mailed first class,
registered or certified, postage prepaid, addressed to the last known address of
such party.

11.      GOVERNING LAW. This Pledge Agreement shall be governed by and construed
in accordance with the laws of the State of Minnesota.

12.      TAXES. Pledgor shall be responsible for the payment of all state and
federal taxes payable as a result of any sale of all or any number of the
Pledged Membership Interests pursuant to Section 8 hereof.

                                       29

<PAGE>

IN WITNESS WHEREOF, the Pledgor and the Pledgee have executed and delivered this
Pledge Agreement as of the date and year first above-mentioned.

                                    PLEDGOR:

                                    ____________________________________________

                                    PLEDGEE:

                                    ____________________________________________

                                       30

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