Document:

Exhibit 10.1

                       AGREEMENT AND PLAN OF MERGER

                                  BETWEEN

                         PRECISION STANDARD, INC.
                         (a Colorado corporation)

                                    AND

                        PEMCO AVIATION GROUP, INC.
                         (a Delaware corporation)

     This AGREEMENT AND PLAN OF MERGER (this "Agreement") is made and
entered into as of April 20, 2000 between Precision Standard, Inc.
("Precision Standard"), a Colorado corporation, and Pemco Aviation Group,
Inc. ("Pemco"), a Delaware corporation.

                                 RECITALS

     WHEREAS, Precision Standard is a corporation duly organized and
existing under the laws of the State of Colorado;

     WHEREAS, Pemco is a corporation duly organized and existing under the
laws of the State of Delaware; and

     WHEREAS, the Board of Directors of each of Precision Standard and
Pemco deem it desirable to merge Precision Standard with and into Pemco so
that Pemco is the surviving corporation on the terms provided herein (the
"Merger").

     NOW, THEREFORE, in consideration of the mutual agreements contained
herein and other good and valuable consideration, the receipt of which is
hereby acknowledged, the parties hereto agree as follows:

                                 ARTICLE I

                                  MERGER

     1.1  The Merger.  Upon the Effective Date (as defined in Section 1.5)
and subject to and upon the terms and conditions provided in this
Agreement and the applicable provisions of the General Corporation Law of
the State of Delaware (the "DGCL") and the Colorado Business Corporation
Act (the "CBCA"), Precision Standard will merge with and into Pemco, the
separate corporate existence of Precision Standard shall cease, and Pemco
shall be the surviving corporation.  Pemco is hereinafter sometimes
referred to as the "Surviving Corporation."  To the extent the merger
constitutes a transaction for federal income tax purposes, the parties
intend that the merger qualify as a reorganization described in Section
368(a)(1)(F) of the Internal Revenue Code of 1986, as amended.

     1.2  Constituent Corporations.    The name of each of the constituent
corporations is as follows:

          (a)   Precision Standard, Inc., a Colorado corporation, is the
parent corporation of Pemco Aviation Group, Inc.; and

          (b)   Pemco Aviation Group, Inc., a Delaware corporation, is a
wholly-owned subsidiary of Precision Standard, Inc.

     1.3  Surviving Corporation.  Pemco Aviation Group, Inc., a Delaware
corporation, shall be the Surviving Corporation.

     1.4  Address of Principal Office of Surviving Corporation.  The
address of the principal office of the Surviving Corporation shall be 1943
North 50th Street, Birmingham, Alabama 35212.

     1.5  Closing;  Effective Date.  The Merger shall be effective (the
"Effective Date"), in accordance with Section 7-111-104(5) of the CBCA, on
the date upon which the last of the following shall have been completed:

          (a)  This Agreement and the Merger shall have been adopted by
the board of directors of Precision Standard and approved by a majority of
the outstanding shares of Precision Common Stock (as defined in Section
2.1), in accordance with the requirements of the DGCL and the CBCA;

          (b)  This Agreement and the Merger shall have been adopted and
approved by the board of directors of Pemco, in accordance with the
requirements of the DGCL; no vote of stockholders of Pemco is necessary to
authorize this Agreement and the Merger because there are no currently
existing stockholders of Pemco;

          (c)  The effective date of the Merger as stated in the executed
Articles of Merger filed with the Secretary of State of the State of
Colorado; and

          (d)  An executed Certificate of Merger or an executed
counterpart of this Agreement meeting the requirements of the DGCL shall
have been filed with the Secretary of State of the State of Delaware.

     1.6  Effect of the Merger. The effect of the Merger shall be as
provided in this Agreement, the Certificate of Merger, and the applicable
provisions of the DGCL and the CBCA.  Without limiting the foregoing, on
the Effective Date, all the property, rights, privileges, powers and
franchises of Precision Standard shall vest in Pemco, as the Surviving
Corporation, and all debts, liabilities and duties of Precision Standard
shall become the debts, liabilities and duties of Pemco, as the Surviving
Corporation.

     1.7  Certificate of Incorporation; Bylaws.

          (a)    From and after the Effective Date, the Certificate of
Incorporation of Pemco as in effect immediately prior to the Effective
Date, shall be the Certificate of Incorporation of the Surviving
Corporation.

          (b)    From and after the Effective Date, the Bylaws of Pemco as
in effect immediately prior to the Effective Date, shall be the Bylaws of
the Surviving Corporation.

     1.8  Directors and Officers of the Surviving Corporation.  From and
after the Effective Date, the directors or officers of Pemco serving as
directors or officers of Pemco immediately prior to the Effective Date,
shall be the directors and officers of the Surviving Corporation.

                                ARTICLE II

                           CONVERSION OF SHARES

     2.1  Conversion of Stock.    Upon the Effective Date, by virtue of
the Merger and without any action on the part of the holders of any
outstanding shares of capital stock or other securities of Precision
Standard, each share of common stock of Precision Standard, par value
$0.0001 per share ("Precision Common Stock"), issued and outstanding
immediately prior to the Effective Date shall be converted into one (1)
fully paid and nonassessable share of Common Stock, par value $0.0001 per
share, of the Surviving Corporation ("Pemco Common Stock").  Upon the
Effective Date, each certificate (each, an "Old Certificate" and
collectively the "Old Certificates") representing a share or shares of
Precision Common Stock will represent the right to receive from Pemco a
certificate (each a "New Certificate" and collectively the "New
Certificates") representing an equivalent number of shares of Pemco Common
Stock.

     2.2  Exchange of Certificates.

          (a)  At the Effective Date, Pemco shall deposit with an exchange
agent  designated  by  it  for such purpose ("Exchange  Agent"),  for  the
benefit   of   holders  of  Precision  Common  Stock,   New   Certificates
representing the Pemco Common Stock to be issued pursuant to  Section  2.1
in exchange for outstanding Precision Common Stock.

          (b)  Promptly after the Effective Date, Pemco shall cause the
Exchange Agent to provide to the holder of an Old Certificate instructions
on the exchange of such Old Certificate for a New Certificate.

          (c)  Until so surrendered, each Old Certificate shall be deemed
for all purposes to represent the number of shares of Pemco Common Stock
into which it is converted pursuant to Section 2.1, and the holder of such
Old Certificate shall have and be entitled to exercise any voting and
other rights with respect to, and to receive dividends and other
distributions upon, the Pemco Common Stock into which such Old Certificate
was converted pursuant to Section 2.1.  If any New Certificate is to be
issued in a name other than that on the Old Certificate, it shall be a
condition to the issuance of the New Certificate that the Old Certificate
so surrendered shall be properly endorsed and otherwise in proper form for
transfer, that such transfer otherwise be proper and comply with
applicable securities laws and that the person requesting such transfer
establish to the satisfaction of Pemco that all transfer or other taxes
payable by reason of the issuance of such New Certificate in a name other
than that of the registered holder of the Old Certificate surrendered has
been paid or is not payable.

     2.3  Precision Standard Employee Plans and Options.

           (a)   Upon the Effective Date, Pemco shall assume and  continue
Precision  Standard's  1989 Nonqualified Stock Option  Plan,  as  amended.
Each  outstanding and unexercised option or other right to purchase  or  a
security convertible into Precision Common Stock shall become an option or
right to purchase or a security convertible into Pemco Common Stock on the
basis  of  one  share  of Pemco Common Stock for each share  of  Precision
Common  Stock  issuable pursuant to such option, stock purchase  right  or
convertible security, on the same terms and conditions and at an  exercise
price  per  share  equal  to the exercise price  applicable  to  any  such
Precision Standard option, stock purchase right or convertible security on
the Effective Date.  There are no options or stock purchase rights for  or
securities convertible into the preferred stock of Precision Standard, par
value $0.01 per share.

          (b)  A number of shares of Pemco Common Stock shall be reserved
for issuance upon the exercise of options, stock purchase rights and
convertible securities equal to the number of shares of Precision Common
Stock so reserved immediately prior to the Effective Date.

                                ARTICLE III

                      REPRESENTATIONS AND WARRANTIES

     3.1  Representations and Warranties of Precision Standard.  Precision
Standard hereby covenants and agrees that it:

          (a)  Is a corporation duly organized, validly existing and in
good standing under the laws of the State of Colorado, and has all the
requisite power and authority to own, lease and operate its properties and
assets and to carry on its business as it is now being conducted;

          (b)  Is duly qualified to do business as a foreign person, and
is in good standing, in each jurisdiction where the character of its
properties or the nature of its activities make such qualification
necessary;

          (c)  Is not in violation of any provisions of its articles of
incorporation or bylaws; and

          (d)  Has full corporate power and authority to execute and
deliver this Agreement and, assuming the approval of the Merger by the
stockholders of Precision Standard in accordance with the CBCA, consummate
the Merger and the other transactions contemplated by this Agreement.

     3.2  Representations and Warranties of Pemco.   Pemco hereby
covenants and agrees that it:

          (a)  Is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware, and has all the
requisite power and authority to own, lease and operate its properties and
assets and to carry on its business as it is now being conducted;

          (b)  Is duly qualified to do business as a foreign person, and
is in good standing, in each jurisdiction where the character of its
properties or the nature of its activities make such qualification
necessary;

          (c)  Is not in violation of any provisions of its certificate of
incorporation or bylaws; and

          (d)  Has full corporate power and authority to execute and
deliver this Agreement and consummate the Merger and the other
transactions contemplated by this Agreement.

                                ARTICLE IV

                                TERMINATION

     4.1  Termination.    At any time prior to the Effective Date, this
Agreement may be terminated and the Merger abandoned for any reason
whatsoever by the Board of Directors of either Precision Standard or
Pemco, or both of them, notwithstanding the approval of this Agreement and
the Merger by a majority of the outstanding shares of Precision Standard
entitled to vote.

                                 ARTICLE V

                            FURTHER ASSURANCES

     5.1  Further Assurances as to Precision Standard.    From time to
time, as and when required by Pemco or by its successors or assigns, there
shall be executed and delivered on behalf of Precision Standard such deeds
and other instruments, and there shall be taken or caused to be taken by
Pemco such further and other actions as shall be appropriate or necessary
in order to vest or perfect in or conform of record or otherwise by Pemco
the title to and possession of all the property, interests, assets,
rights, privileges, immunities, powers, franchises and authority of
Precision Standard and otherwise to carry out the purposes of this
Agreement, and the officers and directors of Pemco are fully authorized in
the name and on behalf of Precision Standard or otherwise to take any and
all such action and to execute and deliver any and all such deeds and
other instruments.

                                ARTICLE VI

                               MISCELLANEOUS

     6.1  Amendment.    Subject to applicable law, at any time prior to
the Effective Date, this Agreement may be amended, modified or
supplemented only by the written agreement of Precision Standard and
Pemco.

     6.2  Assignment; Third Party Beneficiaries.    Neither this
Agreement, nor any right, interest or obligation hereunder shall be
assigned by any of the parties hereto without the prior written consent of
the other parties.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.
This Agreement is not intended to confer any rights or benefits upon any
person other than the parties hereto.

     6.3  Registered Office.     The registered office of the Surviving
Corporation in the State of Delaware shall be 1013 Centre Road, City of
Wilmington, County of New Castle, 19801, and Corporation Service Company
shall be the registered agent of the Surviving Corporation at such
address.

     6.4  Executed Agreement.    Executed copies of this Agreement will be
on file at the principal place of business of the Surviving Corporation at
Pemco Aviation Group, Inc., 1943 North 50th Street, Birmingham, Alabama
35212 and copies of this Agreement will be furnished to any stockholder of
any of the parties hereto, upon request and without cost.

     6.5  Governing Law.   This Agreement shall in all respects be
interpreted by, and construed, interpreted and enforced in accordance with
and pursuant to the laws of the State of Delaware and, so far as
applicable, by the provisions of the CBCA.

     6.6  Counterparts.     This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

     6.7  Entire Agreement; Modification.    This Agreement and the
documents referred to herein are intended by the parties as a final
expression of their agreement with respect to the subject matter hereof,
and are intended as a complete and exclusive statement of the terms and
conditions of that agreement, and there are not other agreements or
understandings, written or oral, among the parties, relating to the
subject matter hereof.  This Agreement supercedes all prior agreements and
understandings, written or oral, among the parties with respect to the
subject matter hereof.

                            [SIGNATURE PAGE FOLLOWS]

     IN WITNESS WHEREOF, the undersigned, intending to be legally bound
hereby, have duly executed this Agreement as of the date first stated
above.

                                   PRECISION STANDARD, INC.
                                   (A Colorado corporation)

                                      By:     /s/    Ronald   A    Aramini
-------------------------
                                   Name:  Ronald A. Aramini
                                   Title:   President and Chief  Executive
                                   Officer

                                   PEMCO AVIATION GROUP, INC.
                                   (A Delaware corporation)

                                   By:  /s/ Ronald A. Aramini
                                   --------------------------
                                   Name:  Ronald A. Aramini
                                   Title:  President and Chief
                                   Executive OfficerEXHIBIT 10.1

                FIFTH AMENDMENT TO CREDIT AND SECURITY AGREEMENT

            This Fifth Amendment, dated as of June __, 2000, is made by and
between MEDAMICUS, INC., a Minnesota corporation (the "Borrower") and WELLS
FARGO CREDIT, INC. f/k/a Norwest Credit, Inc., a Minnesota corporation (the
"Lender").

                                    Recitals

            The Borrower and the Lender have entered into a Credit and Security
Agreement dated as of March 5, 1996, as amended by a First Amendment to Credit
and Security Agreement dated as of June 27, 1997, a Second Amendment to Credit
and Security Agreement dated as of May __, 1998, a Third Amendment to Credit and
Security Agreement dated as of June 17, 1998, and a Fourth Amendment to Credit
and Security Agreement dated as of April 29, 1999 (as amended, the "Credit
Agreement"). Capitalized terms used in these recitals have the meanings given to
them in the Credit Agreement unless otherwise specified.

            The Borrower has requested that certain amendments be made to the
Credit Agreement, which the Lender is willing to make pursuant to the terms and
conditions set forth herein.

            NOW, THEREFORE, in consideration of the premises and of the mutual
covenants and agreements herein contained, it is agreed as follows:

            1. Defined Terms. Capitalized terms used in this Amendment which are
defined in the Credit Agreement shall have the same meanings as defined therein,
unless otherwise defined herein.

            (a) The definition of "Eligible Inventory" is hereby amended as
      follows:

                  (i) Subparagraph (iii) is hereby deleted and replaced with the
            following "(iii) Work-in-process Inventory, including subassemblies;
            " and

                  (ii) The following new subparagraph is added immediately
            following subparagraph (x): "(xi) Introducers Inventory."

            (b) In addition, Section 1.1 of the Credit Agreement is further
      amended by adding or amending, as the case may be, the following
      definitions:

                  "'Borrowing Base' means, at any time and subject to change
            from time to time in the Lender's sole discretion, the lesser of:

<PAGE>

                  (a)   the Maximum Line; or

                  (b)   the sum of

                        (i)   85% of Eligible Accounts;

                        (ii)  the lesser of

                              (A)   the sum of (1) 25% of Eligible Inventory
                                    plus (2) the lesser of (a) 50% of
                                    Introducers Inventory or (b) $350,000, or

                              (B)   $700,000; and

                        (iii) the lesser of (A) the Fixed Asset Percentage of
                              Eligible Fixed Assets or (B) $229,000."

                  "'Fifth Amendment' means that certain Fifth Amendment to
            Credit and Security Agreement, dated as of June __, 2000, by and
            between the Borrower and the Lender."

                  "'Fixed Asset Percentage' means (i) 75% from the date of the
            Fifth Amendment to June 30, 2000; and (ii) beginning on August 1,
            2000 and on the first day of each month thereafter the percentage
            will decrease by 1% each month."

                  "'Introducers Inventory' means raw materials used in the
            assembly of introducer kits, including but not limited to, plastic
            and metal trays, syringes and needles, work-in-process introducer
            kits consisting of assembled kits needing only sterilization and
            shrink-wrapping introducer kits, and shrink-wrapped, sterilized
            introducer kits"

                  "'Maturity Date' means June 30, 2001."

                  "'Maximum Line' means $2,500,000."

                  "'Note' means the Borrower's Revolving Note dated as of the
            date of the Fifth Amendment, in the form attached as Exhibit A to
            the Fifth Amendment."

            2. Minimum Interest. Section 2.2(b) of the Credit Agreement is
hereby amended in its entirety and replaced with the following:

                                      -2-
<PAGE>

                  "(b) Reserved."

            3. Book Net Worth Covenant. Section 6.7 of the Credit Agreement is
hereby amended in its entirety and replaced with the following:

            "Section 6.7 Minimum Book Net Worth. The Borrower will at all times
      maintain during each period described below, its Book Net Worth (on an
      unconsolidated, Borrower-only basis), determined as of the end of each
      month, of at least the amount set forth opposite such period:

            ------------------------------ ---------------------------
                        Period               Minimum Book Net Worth
                        ------               ----------------------
            ------------------------------ ---------------------------
                 May 31, 2000 through
                   August 30, 2000                 $2,100,000
            ------------------------------ ---------------------------
                  September 1, 2000
                       through
                   November 30, 2000               $2,400,000
            ------------------------------ ---------------------------
                December 1, 2000 and
                     thereafter                    $2,800,000
            ------------------------------ ---------------------------

            4. Compliance Certificate. Exhibit A to the Credit Agreement is
amended to read as Exhibit B attached hereto.

            5. No Other Changes. Except as explicitly amended by this Amendment,
all of the terms and conditions of the Credit Agreement shall remain in full
force and effect and shall apply to any advance or letter of credit thereunder.

            6. Conditions Precedent. This Amendment shall be effective when the
Lender shall have received an executed original hereof, together with each of
the following, each in substance and form acceptable to the Lender in its sole
discretion:

            (a) The Note substantially in the form of Exhibit A hereto, duly
      executed on behalf of the Borrower.

            (b) A Certificate of the Secretary of the Borrower certifying as to
      (1) the resolutions of the board of directors of the Borrower approving
      the execution and delivery of this Fifth Amendment and the Note, (2) the
      fact that the Articles of Incorporation and Bylaws of the Borrower, which
      were certified and delivered to the Lender pursuant to the Certificate of
      the Borrower's Secretary dated as of March 26, 1996, continue in full
      force and effect and have not been amended or otherwise modified except as
      set forth in Certificates previously delivered or the Certificate to be
      delivered, and (3) certifying that the officers and agents of the Borrower
      who have

                                      -3-
<PAGE>

      been certified to the Lender, pursuant to the Certificate of Authority of
      the Borrower's Secretary dated as of March 26, 1996, as being authorized
      to sign and to act on behalf of the Borrower continue to be so authorized
      or setting forth the sample signatures of each of the officers and agents
      of the Borrower authorized to execute and deliver this Fourth Amendment
      and all other documents, agreements and certificates on behalf of the
      Borrower.

            (c) Such other matters as the Lender may require.

            7. Representations and Warranties. The Borrower hereby represents
and warrants to the Lender as follows:

            (a) The Borrower has all requisite power and authority to execute
      this Amendment and the Note and to perform all of its obligations
      hereunder, and this Amendment and the Note have been duly executed and
      delivered by the Borrower and constitute the legal, valid and binding
      obligation of the Borrower, enforceable in accordance with its terms.

            (b) The execution, delivery and performance by the Borrower of this
      Amendment and the Note have been duly authorized by all necessary
      corporate action and do not (i) require any authorization, consent or
      approval by any governmental department, commission, board, bureau, agency
      or instrumentality, domestic or foreign, (ii) violate any provision of any
      law, rule or regulation or of any order, writ, injunction or decree
      presently in effect, having applicability to the Borrower, or the articles
      of incorporation or by-laws of the Borrower, or (iii) result in a breach
      of or constitute a default under any indenture or loan or credit agreement
      or any other agreement, lease or instrument to which the Borrower is a
      party or by which it or its properties may be bound or affected.

            (c) All of the representations and warranties contained in Article V
      of the Credit Agreement are correct on and as of the date hereof as though
      made on and as of such date, except to the extent that such
      representations and warranties relate solely to an earlier date.

            8. References. All references in the Credit Agreement to "this
Agreement" shall be deemed to refer to the Credit Agreement as amended hereby;
and any and all references in the Security Documents to the Credit Agreement
shall be deemed to refer to the Credit Agreement as amended hereby. Upon the
satisfaction of each of the conditions set forth in paragraph 6 hereof, the
definition of "Note" and all references thereto in the Credit Agreement shall be
deemed amended to describe the Note.

            9. No Waiver. The execution of this Amendment and acceptance of the
Note and any documents related hereto shall not be deemed to be a waiver of any
Default or

                                      -4-
<PAGE>

Event of Default under the Credit Agreement or breach, default or event of
default under any Security Document or other document held by the Lender,
whether or not known to the Lender and whether or not existing on the date of
this Amendment.

            10. Release. The Borrower hereby absolutely and unconditionally
releases and forever discharges the Lender and any and all participants, parent
corporations, subsidiary corporations, affiliated corporations, insurers,
indemnitors, successors and assigns thereof, together with all of the present
and former directors, officers, agents and employees of any of the foregoing,
from any and all claims, demands or causes of action of any kind, nature or
description, whether arising in law or equity or upon contract or tort or under
any state or federal law or otherwise, which the Borrower has had, now has or
has made claim to have against any such person for or by reason of any act,
omission, matter, cause or thing whatsoever arising from the beginning of time
to and including the date of this Amendment, whether such claims, demands and
causes of action are matured or unmatured or known or unknown.

            11. Costs and Expenses. The Borrower hereby reaffirms its agreement
under the Credit Agreement to pay or reimburse the Lender on demand for all
costs and expenses incurred by the Lender in connection with the Credit
Agreement, the Security Documents and all other documents contemplated thereby,
including without limitation all reasonable fees and disbursements of legal
counsel. Without limiting the generality of the foregoing, the Borrower
specifically agrees to pay all fees and disbursements of counsel to the Lender
for the services performed by such counsel in connection with the preparation of
this Amendment and the documents and instruments incidental hereto. The Borrower
hereby agrees that the Lender may, at any time or from time to time in its sole
discretion and without further authorization by the Borrower, make a loan to the
Borrower under the Credit Agreement, or apply the proceeds of any loan, for the
purpose of paying any such fees, disbursements, costs and expenses.

            12. Miscellaneous. This Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original and all of which counterparts, taken together, shall constitute one and
the same instrument.

                  IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Amendment to be duly executed as of the date first written above.

WELLS FARGO CREDIT, INC. f/k/a               MEDAMICUS, INC.
  Norwest Credit, Inc.

By                                           By
  ---------------------------------            ---------------------------------
  Diane G. Conley                              James D. Hartman
  Its Assistant Vice President                 Its President

                                      -5-

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