Document:

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                                                                   EXHIBIT 10.18

                        SPLIT-DOLLAR INSURANCE AGREEMENT

      THIS PLAN is adopted by agreement between the Company and the Owner:

DEFINITIONS:

A.      "Company": Telect, Inc., a Washington corporation, of Liberty Lake,
        Washington.

B.      "Insured": Judith A. Williams.

C.      "Insurer": The Northwestern Mutual Life Insurance Company, Milwaukee,
        Wisconsin.

D.      "Owner": Williams Family Irrevocable Trust

E.      "Policy": The policy of insurance on the life of the Insured issued by
        the Insurer and listed on Exhibit "An annexed hereto together with any
        supplementary contracts issued by the Insurer in conjunction therewith.

F.      "Premium Advance": The Company's Premium Advance shall be an amount
        equal to the cumulative total of its share of premiums paid on the
        Policy.

                                    RECITALS:

A.      The Owner is the owner of the Policy, and the Insured is a valuable
        employee of the Company. The Company wishes to continue this employment
        relationship and, as an inducement thereto, is willing to assist the
        Owner in the payment of premiums on the Policy as an additional form of
        compensation to the Insured as its employee.

B.      In exchange for such premium assistance, the Owner is willing to return
        to the Company its Premium Advance as provided herein.

C.      This Plan is intended to qualify as a life insurance employee benefit
        plan as described in Revenue Ruling 64-328.

THEREFORE, for value received, it is agreed as follows:

1.      PREMIUM PAYMENTS

        (a)     Each annual premium on the Policy shall be paid as follows:

                (1)     The Owner --

                        (A)     shall pay a portion of each premium equal to the
                                current term rate for the Insured's age
                                multiplied by the excess of the current death
                                benefit over the Company's current Policy
                                Interest. The "current term rate" shall mean the
                                lesser of the Insurer's annual term insurance
                                rate or the rates specified in the Revenue
                                Rulings 64-328 and 66-110; and

                        (B)     may elect to pay part or all of any additional
                                premium by policy loan or other borrowing, and
                                shall deliver notice of such election to the
                                Company on or before the premium due date.

                (2)     The Company shall pay all premium amounts not paid by
                        Owner.

        (b)     The Owner's premium share (other than that paid with policy
                loans) and the Company's premium share shall be remitted to the
                Insurer before expiration of the grace period.

        (c)     Dividends on the Policy shall be applied as elected to the
                Owner.

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        (d)     The Policy may, at the Owner's discretion, provide for the
                waiver of premiums on the Insured's disability. If it does so
                provide, the cost thereof shall be borne by the Owner, the prior
                provisions of this Section 1 to the contrary notwithstanding.

2.      RIGHTS OF PARTIES

        (a)     The Owner shall be the sole and exclusive owner of the Policy.
                This includes all the rights of "Owner" under the terms of the
                Policy including, but not limited to, the right to designate
                beneficiaries, select settlement and dividend options, borrow on
                the security of the Policy and to surrender the Policy. All such
                rights may be exercised by the Owner without the Company's
                consent.

        (b)     In exchange for the Company's payment of its premium
                contribution under Section 1, the Owner agrees to return to the
                Company the amount of its Premium Advance on the earlier of:

                (1) Termination of this Plan as provided in Section 4; or
                (2) The Insured's death.

                Provided, however, that nothing herein shall give the Company
                any interest whatsoever in any of the assets of the Owner,
                including but not limited to, the Policy.

3.      THE OWNER -- The Owner shall have the right to assign any part or all of
        the Owner's retained interest in the Policy and this Plan to any person,
        entity or trust by execution of a written assignment delivered to the
        Insurer.

4.      TERMINATION OF PLAN -- This Plan shall terminate on the first to occur
        of the following:

        (a)     Surrender of the Policy by the Owner, who has the sole and
                exclusive right of surrender.

        (b)     Delivery by the Owner of written notice of termination to the
                Company.

        (c)     Failure of the Owner to make a premium contribution as required
                by Section 1.

5.      THE INSURER -- The Insurer shall be bound only by the provisions of and
        endorsements of the Policy, and any payments made or actions taken by it
        in accordance therewith shall fully discharge it from all claims, suits
        and demands of all persons whatsoever. It shall in no way be bound by or
        be deemed to have notice of the provisions of this Plan.

6.      AMENDMENT OF PLAN -- The Owner and the Company can mutually agree to
        amend this Plan and such amendment shall be in writing and signed by the
        Owner and the Company.

7.      SPECIAL PROVISION -- The following provisions are part of this Plan and
        are intended to meet the requirements of the Employee Retirement Income
        Security

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        Act of 1974:

        (a)     The named fiduciary of this Plan is the Secretary of the
                Company.

        (b)     The funding policy under this Plan is that all premiums on the
                Policy be remitted to the Insurer when due.

        (c)     Direct payment by the Insurer is the basis of payment of
                benefits under this Plan, with those benefits in turn being
                based on the payment of premiums as provided in this Plan.

        (d)     For claims procedure purposes, the "Claims Manager" of this Plan
                is the Secretary of the Company.

                (1)     If for any reasons a claim for benefits under this Plan
                        is denied by the Company, the Claims Manager shall
                        deliver to the claimant a written explanation setting
                        forth the specific reasons for denial, pertinent
                        references to the Plan section on which the denial is
                        based, such other data as may be pertinent and
                        information on the procedures to be followed by the
                        claimant in obtaining a review of his or her claim,
                        written in a manner calculated to be understood by the
                        claimant. For this purpose:

                        (A)     The claimant's claim shall be deemed filed when
                                presented orally or in writing to the Claims
                                Manager.

                        (B)     The Claims Manager's explanation shall be in
                                writing delivered to the claimant within 90 days
                                of the date the claim is filed.

                (2)     The claimant shall have 60 days following his or her
                        receipt of the denial of the claim to file with the
                        Claims Manager a written request for review of the
                        denial. For such review, the claimant or his or her
                        representative may submit pertinent documents and
                        written issues and comments.

                (3)     The Claims Manager shall decide the issue on review and
                        furnish the claimant with a copy within 60 days of
                        receipt of the claimant's request for review of his or
                        her claim. The decision on review shall be in writing
                        and shall include specific reasons for the decision
                        written in a manner calculated to be understood by the
                        claimant, as well as specific references to the
                        pertinent Plan provisions on which the decision is
                        based. If a copy of the decision is not so furnished to
                        the claimant within such 60 days, the claim shall be
                        deemed denied on review.

        IN WITNESS WHEREOF the parties have signed this Plan this 1st day of
July, 1994.

                                       3
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                                     COMPANY

                                     TELECT, INC.

                                       By:
                                          --------------------------------------
                                             President

                                       4
<PAGE>   5

                                      OWNER

                                      WILLIAMS FAMILY IRREVOCABLE
                                      TRUST

                                       By:
                                          --------------------------------------
                                             Trustee

                                       5
<PAGE>   6

                                   EXHIBIT "A"

                                 LIFE INSURANCE

POLICY NUMBER                                                        FACE AMOUNT

12987012                                                           $2,500,000.00

                                       6<PAGE>   1
                                                                   EXHIBIT 10.19

                        SPLIT-DOLLAR INSURANCE AGREEMENT

      THIS PLAN is adopted by agreement between the Company and the Owner:

DEFINITIONS:

A.      "Company": Telect, Inc., a Washington corporation, of Liberty Lake,
        Washington.

B.      "Insureds": Bill B. Williams, Jr. and Judith A. Williams.

C.      "Insurer": The Northwestern Mutual Life Insurance Company, Milwaukee,
        Wisconsin.

D.      "Owner": Williams Family Irrevocable Trust

E.      "Policy": The policy of insurance on the lives of the Insureds issued by
        the Insurer and listed on Exhibit "A" annexed hereto together with any
        supplementary contracts issued by the Insurer in conjunction therewith.

F.      "Premium Advance": The Company as Premium Advance shall be an amount
        equal to the cumulative total of its share of premiums paid on the
        Policy.

                                    RECITALS:

A.      The Owner is the owner of the Policy, and the Insureds are valuable
        employees of the Company. The Company wishes to continue this employment
        relationship and, as an inducement thereto, is willing to assist the
        Owner in the payment of premiums on the Policy as an additional form of
        compensation to the Insureds as its employees.

B.      In exchange for such premium assistance, the Owner is willing to return
        to the Company its Premium Advance as provided herein.

C.      This Plan is intended to qualify as a life insurance employee benefit
        plan as described in Revenue Ruling 64-328.

THEREFORE, for value received, it is agreed as follows:

1.      PREMIUM PAYMENTS

        (a)     Each annual premium on the Policy shall be paid as follows:

                (1)     The Owner --

                        (A)     shall pay a portion of each premium equal to the
                                current term rate for the Insureds' ages
                                multiplied by the excess of the current death
                                benefit over the Company as current Policy
                                Interest. The "current term rate" shall mean the
                                lesser of the Insurer's annual term insurance
                                rate or the rates specified in the Revenue
                                Rulings 64-328 and 66-110; and

                        (B)     may elect to pay part or all of any additional
                                premium by policy loan or other borrowing, and
                                shall deliver notice of such election to the
                                Company on or before the premium due date.

                (2)     The Company shall pay all premium amounts not paid by
                        Owner.

        (b)     The Owner's premium share (other than that paid with policy
                loans) and

                                       1
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                the Company's premium share shall be remitted to the Insurer
                before expiration of the grace period.

        (c)     Dividends on the Policy shall be applied as elected to the
                Owner.

        (d)     The Policy may, at the Owner's discretion, provide for the
                waiver of premiums on the Insured's disability. If it does so
                provide, the cost thereof shall be borne by the Owner, the prior
                provisions of this Section 1 to the contrary notwithstanding.

2.      RIGHTS OF PARTIES

        (a)     The Owner shall be the sole and exclusive owner of the Policy.
                This includes all the rights of "Owner" under the terms of the
                Policy including, but not limited to, the right to designate
                beneficiaries, select settlement and dividend options, borrow on
                the security of the Policy and to surrender the Policy. All such
                rights may be exercised by the Owner without the Company's
                consent.

        (b)     In exchange for the Company's payment of its premium
                contribution under Section 1, the Owner agrees to return to the
                Company the amount of its Premium Advance on the earlier of:

                (1) Termination of this Plan as provided in Section 4; or
                (2) The Insured's death.

                Provided, however, that nothing herein shall give the Company
                any interest whatsoever in any of the assets of the Owner,
                including but not limited to, the Policy.

3.      THE OWNER -- The Owner shall have the right to assign any part or all of
        the Owner's retained interest in the Policy and this Plan to any person,
        entity or trust by execution of a written assignment delivered to the
        Insurer.

4.      TERMINATION OF PLAN -- This Plan shall terminate on the first to occur
        of the following:

        (a)     The date of death of the first of the Insureds to die.

        (b)     Surrender of the Policy by the Owner, who has the sole and
                exclusive right of surrender.

        (c)     Delivery by the Owner of written notice of termination to the
                Company.

        (d)     Failure of the Owner to make a premium contribution as required
                by Section 1.

5.      THE INSURER -- The Insurer shall be bound only by the provisions of and
        endorsements of the Policy, and any payments made or actions taken by it
        in accordance therewith shall fully discharge it from all claims, suits
        and demands of all persons whatsoever. It shall in no way be bound by or
        be deemed to have notice of the provisions of this Plan.

6.      AMENDMENT OF PLAN -- The Owner and the Company can mutually agree to
        amend this Plan and such amendment shall be in writing and signed by the
        Owner

                                       2
<PAGE>   3

        and the Company.

7.      SPECIAL PROVISION -- The following provisions are part of this Plan and
        are intended to meet the requirements of the Employee Retirement Income
        Security Act of 1974:

        (a)     The named fiduciary of this Plan is the Secretary of the
                Company.

        (b)     The funding policy under this Plan is that all premiums on the
                Policy be remitted to the Insurer when due.

        (c)     Direct payment by the Insurer is the basis of payment of
                benefits under this Plan, with those benefits in turn being
                based on the payment of premiums as provided in this Plan.

        (d)     For claims procedure purposes, the "Claims Manager" of this Plan
                is the Secretary of the Company.

                (1)     If for any reasons a claim for benefits under this Plan
                        is denied by the Company, the Claims Manager shall
                        deliver to the claimant a written explanation setting
                        forth the specific reasons for denial, pertinent
                        references to the Plan section on which the denial is
                        based, such other data as may be pertinent and
                        information on the procedures to be followed by the
                        claimant in obtaining a review of his or her claim,
                        written in a manner calculated to be understood by the
                        claimant. For this purpose:

                        (A)     The claimant's claim shall be deemed filed when
                                presented orally or in writing to the Claims
                                Manager.

                        (B)     The Claims Manager's explanation shall be in
                                writing delivered to the claimant within 90 days
                                of the date the claim is filed.

                (2)     The claimant shall have 60 days following his or her
                        receipt of the denial of the claim to file with the
                        Claims Manager a written request for review of the
                        denial. For such review, the claimant or his or her
                        representative may submit pertinent documents and
                        written issues and comments.

                (3)     The Claims Manager shall decide the issue on review and
                        furnish the claimant with a copy within 60 days of
                        receipt of the claimant's request for review of his or
                        her claim. The decision on review shall be in writing
                        and shall include specific reasons for the decision
                        written in a manner calculated to be understood by the
                        claimant, as well as specific references to the
                        pertinent Plan provisions on which the decision is
                        based. If a copy of the decision is not so furnished to
                        the claimant within such 60 days, the claim shall be
                        deemed denied on review.

        IN WITNESS WHEREOF the parties have signed this Plan this 1st day of
July, 1994.

                                       3
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                                       COMPANY

                                     TELECT, INC.

                                       By:
                                          --------------------------------------
                                              President

                                       4
<PAGE>   5

                                       OWNER

                                       WILLIAMS FAMILY IRREVOCABLE
                                       TRUST

                                       By:
                                          --------------------------------------
                                               Trustee

                                       5
<PAGE>   6

                                   EXHIBIT "A"

                                 LIFE INSURANCE

POLICY NUMBER                                                        FACE AMOUNT

12987066                                                           $5,000,000.00

                                       6

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