Document:

<PAGE>

                                                                Exhibit 10.20(A)

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<CAPTION>

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<S>                                          <C>                                           <C>
TRAINING DEVICES, INC.                       AIMS COMMUNITY COLLEGE FOUNDATION
7367 S. REVERE PARKWAY BLDG 2C               P.O. BOX 69                                   Loan Number:
ENGLEWOOD, CO 80112-3931                     GREELEY, CO 80631-0069                                     -----------------
                                                                                           Date SEPTEMBER 14, 1999
                                                                                                -------------------------
                                                                                           Maturity Date DEC. 1, 2000
                                                                                                         ----------------
                                                                                           Loan Amount $ 2,020,000.00
                                                                                                         ----------------
                                                                                           Renewal Of
                                                                                                      -------------------

    BORROWER'S NAME AND ADDRESS                     LENDER'S NAME AND ADDRESS
"I" includes each borrower above, joint      "You" means the lender, its successors
and severally.                               and assigns.
---------------------------------------------------------------------------------------------------------------------------
</TABLE>

For value received, I promise to pay to you, or your order, at your address
listed above the PRINCIPAL sum of TWO MILLION TWENTY THOUSAND AND NO/100* * *
                                  -------------------------------------------
* * * * * Dollars $ 2,020,000.00
---------           ------------

/ / Single Advance: I will receive all of this principal sum on
                                                             ----------------.
No additional advances are contemplated under this note.

/X/ Multiple Advance: The principal sum shown above is the maximum amount of
principal I can borrow under this note. On SEP. 14, 1999             I will
                                           ------------------------
receive the amount of $                          and future principal advances
                       -------------------------
are contemplated.

    Conditions: The conditions for future advances are AS PER DRAW REQUEST
                                                       -----------------------

------------------------------------------------------------------------------

------------------------------------------------------------------------------

    / / Open End Credit: You and I agree that I may borrow up to the maximum
        amount of principal more than one time. This feature is subject to
        all other conditions and expires on
                                           -------------------------.
    /X/ Closed End Credit: You and I agree that I may borrow up to the
        maximum only one time (and subject to all other conditions).
INTEREST: I agree to pay interest on the outstanding principal balance from
SEP. 14, 1999 at the rate of 8.250% per year until FIRST CHANGE DATE.
-------------                -----                 --------------------------

/X/ Variable Rate: This rate may then change as stated below.

    /X/ Index Rate: The future rate will be EQUAL TO the following index
                                            --------
rate: THE NATIONAL PRIME RATE AS PUBLISHED IN THE "WALL STREET JOURNAL"
      ------------------------------------------------------------------------

      ------------------------------------------------------------------------
    / / No Index: The future rate will not be subject to any internal or
        external index. It will be entirely in your control.
    /X/ Frequency and Timing: The rate on this note may change as often as
        DAILY.
        ------
          A change in the interest rate will take effect ON THE SAME DAY.
                                                         ---------------------

    /X/ Limitations: During the term of this loan, the applicable annual
        interest rate will not be more than 21.000% or less than          %.
                                            ------                --------
        The rate may not change more than              % of each
                                          ------------           -------------.
    Effect of Variable Rate: A change in the interest rate will have the
    following payments:
    /X/ The amount of each scheduled payment will change.  /X/ The amount of
    the final payment will change.
    / /
       -----------------------------------------------------------------------
ACCRUAL METHOD: Interest will be calculated on a     ACTUAL/360      basis.
                                                -------------------
POST MATURITY RATE: I agree to pay interest on the unpaid balance of this
note owing after maturity, and until paid in full, as stated below:
    / / on the same fixed or variable rate basis in effect before maturity
        (as indicated above).
    /X/ at a rate equal to 4% OVER THE CONTRACT NOTE RATE
                           ---------------------------------------------------.
/ / LATE CHARGE: If a payment is made more than       days after it is due, I
                                                -----
agree to pay a late charge of
                              ------------------------------------------------

    --------------------------------------------------------------------------.
/X/ ADDITIONAL CHARGES: In addition to interest, I agree to pay the following
    charges which are /X/ are /X/ are not included in the principal amount
    above: $20,000 LOAN FEE; FEES NOT FINANCED $30 FILING FEE $65 CORP SEARCH.
           -------------------------------------------------------------------
PAYMENTS: I agree to pay this note as follows:
/X/ Interest: I agree to pay accrued interest ON THE 1ST DAY OF EACH THIRD
                                              --------------------------------
    MONTH BEGINNING DECEMBER 1, 1999
    --------------------------------------------------------------------------
/X/ Principal: I agree to pay the principal DECEMBER 1, 2000
                                            ----------------------------------

    --------------------------------------------------------------------------
/ / Installments: I agree to pay this note in         payments. The first
                                              -------
    payment will be in the amount of $                   and will be due
                                      ------------------
    ------------------------- A payment of $           will be due
                                            ----------             -----------
    thereafter. The final payment of the entire unpaid balance of principal and
    interest will be due
                         ------------------------------------------------------.
ADDITIONAL TERMS:

THIS NOTE IS SECURED BY SECURITY AGREEMENT DATED SEPTEMBER 14, 1999 COVERING
ALL ACCOUNTS, CONTRACT RIGHTS, GENERAL INTANGIBLES, INVENTORY, EQUIPMENT,
PRODUCTS AND PROCEEDS OF COLLATERAL NOW OWNED OR HEREAFTER ACQUIRED.

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<S>                                                                     <C>
/ / SECURITY: This note is separately secured by (describe separate     PURPOSE: The purpose of this loan is BUSINESS: CONSTRUCT
document by type and date):                                                                                  -------------------
                                                                        FLIGHT SIMULATOR
                                                                        --------------------------------------------------------
                                                                        SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE INCLUDING
(This section is for your internal use. Failure to list a separate      THOSE ON PAGE 2). I have received a copy on today's date.
security document does not mean the agreement will not secure this
note.)
-------------------------------------------------------------------

Signature for Lender                                                    TRAINING DEVICES, INC.
                                                                        --------------------------------------------------------

X                                                                       BY:
-------------------------------------------------------------------     --------------------------------------------------------
RON ELLINGTON, CEO                                                      RON ELLINGTON, CEO

X                                                                       BY:
-------------------------------------------------------------------     --------------------------------------------------------
BRUCE BETSCHART, PRESIDENT                                              BRUCE BETSCHART, PRESIDENT

UNIVERSAL NOTE                                                          --------------------------------------------------------
-Copyright- 1984,1991 Banters Systems, Inc., St. Cloud, MN                                                      (page 1 of 2)
(1-800-397-2341) Form UN 1/17/96
</TABLE>

<PAGE>

DEFINITIONS: As used on page 1, "/X/" means the terms that apply to this loan.
"I", "me" or "my" means each BORROWER who signs this note and each other
person or legal entity (including guarantors, endorsers, and sureties) who
agrees to pay this note (together referred to as "us"). "You" or "your" means
the Lender and its successors and assigns.

APPLICABLE LAW: The law of the state in which you are located will govern
this note. Any term of this note which is contrary to applicable law will not
be effective, unless the law permits you and me to agree to such a variation.
If any provision of this agreement cannot be enforced according to its terms,
this fact will not affect the enforceability of the remainder of this
agreement. No modification of this agreement may be made without your express
written consent. Time is of the essence in this agreement.

PAYMENTS: Each payment I make on this note will first reduce the amount I owe
you for charges which are neither interest nor principal. The remainder of
each payment will then reduce accrued unpaid interest, and then unpaid
principal. If you and I agree to a different application of payments, we will
describe our agreement on this note. I may prepay a part of, or the entire
balance of this loan without penalty, unless we specify to the contrary on
this note. Any partial prepayment will not excuse or reduce any later
scheduled payment until this note is paid in full (unless, when I make the
prepayment, you and I agree in writing to the contrary).

INTEREST: Interest accrues on the principal remaining unpaid from time to
time, until paid in full. If I receive the principal in more than one
advance, each advance will start to earn interest only when I receive the
advance. The interest rate in effect on this note at any given time will
apply to the entire principal advanced at that time. Notwithstanding anything
to the contrary, I do not agree to pay and you do not intend to charge any
rate of interest that is higher than the maximum rate of interest you could
charge under applicable law for the extension of credit that is agreed to
here (either before or after maturity), if any notice of interest accrual is
sent and is in error, we mutually agree to correct it, and if you actually
collect more interest than allowed by law and this agreement, you agree to
refund it to me.

INDEX RATE: The index rate will serve only as a device for setting the rate on
this note. You do not guarantee by selecting this index, or the margin, that
the rate on this note will be the same rate you charge on any other loans or
class of loans to me or other borrowers.

ACCRUAL METHOD: The amount of interest that I will pay on this loan will be
calculated using the interest rate and accrual method stated on page 1 of
this note. For the purpose of interest calculation, the accrual method will
determine the number of days in a "year." If no accrual method is stated,
then you may use any reasonable accrual method for calculating interest.

POST MATURITY RATE: For purposes of deciding when the "Post Maturity Rate"
(shown on page 1) applies, the term "maturity" means the date of the last
scheduled payment indicated on page 1 of this note or the date you accelerate
payment on the note, whichever is earlier.

SINGLE ADVANCE LOANS: If this is a single advance loan, you and I expect that
you will make only one advance of principal. However, you may add other
amounts to the principal if you make any payments described in the "PAYMENTS
BY LENDER" paragraph below.

MULTIPLE ADVANCE LOANS: If this is a multiple advance loan, you and I expect
that you will make more than one advance of principal. If this is closed and
credit repaying a part of the principal will not entitle me to additional
credit.

PAYMENTS BY LENDER: If you are authorized to pay, on my behalf, charges I am
obligated to pay (such as property insurance premiums) than you may treat
those payments made by you as advances and add them to the unpaid principal
under this note, or you may demand immediate payment of the charges.

SET-OFF: I agree that you may set off any amount due and payable under this
note against any right I have to receive money from you.

     "Right to receive money from you" means:
     (1)  any deposit account balance I have with you;
     (2)  any money owed to me on an item presented to you or in your
          possession for collection or exchange; and
     (3)  any repurchase agreement or other non-deposit obligation.
     "Any amount due and payable under this note" means the total amount of
which you are entitled to demand payment under the terms of this note at the
time you set off. This total includes any balance the due date for which you
properly accelerate under this note.
     If my right to receive money from you is also owned by someone who has
not agreed to pay this note, your right of set-off will apply to my interest
in the obligation and to any other amounts I could withdraw on my sole request
or endorsement. Your right to set-off does not apply to an account or other
obligation where my rights are only as a representative. It also does not
apply to any individual Retirement Account or other tax-deferred retirement
accounts.
     You will not be liable for the dishonor of any check when the dishonor
occurs because you set off this debt against any of my accounts. I agree to
hold you harmless from any such claims arising as a result of your exercise
of your right of set-off.

REAL ESTATE OR RESIDENCE SECURITY: If this note is accrued by real estate or
a residence that is personal property, the existence of a default and your
remedies for such a default will be determined by applicable law, by the
terms of any separate instrument creating the security interest and, to the
extent not prohibited by law and not contrary to the terms of the separate
security instrument, by the "Default" and "Remedies" paragraphs herein.

DEFAULT: I will be in default if any one or more of the following occur: (1)
I fail to make a payment on time or in the amount due; (2) I fail to keep the
property insured, if required; (3) I fail to pay, or keep any promise, on any
debtor agreement I have with you; (4) any other creditor of mine attempts to
collect any debt I owe him through court proceedings; (5) I die, am declared
incompetent, make an assignment for the benefit of creditors, or become
insolvent (either because my liabilities exceed my assets or I am unable to
pay my debts as they become due; (6) I make any written statement or provide
any financial information that is untrue or inaccurate at the time it was
provided; (7) I do or fail to do something which causes you to believe that
you will have difficulty collecting the amount I owe you; (8) any collateral
securing this note is used in a manner or for a purpose which threatens
confiscation by a legal authority; (9) I change my name or assume an
additional name without first notifying you before making such a change; (10)
I fail to plant, cultivate and harvest crops in due season if I am a producer
of crops; (11) any loan proceeds are used for a purpose that will contribute
to excessive erosion of highly erodible land or to the conversion of wetlands
to produce an agricultural commodity, as further explained in 7 C.F.R. Part
1940. Subpart G, Exhibit M.

REMEDIES: If I am in default on this note you have, but are not limited to,
the following remedies:
     (1) You may demand immediate payment of all I owe you under this note
         (principal, accrued unpaid interest and other accrued charges).
     (2) You may set off this debt against any right I have to the payment of
         money from you, subject to the terms of the "Set-Off" paragraph
         herein.
     (3) You may demand security, additional security, or additional parties
         to be obligated to pay this note as a condition for not using any
         other remedy.
     (4) You may refuse to make advances to me or allow purchases on credit by
         me
     (5) You may use any remedy you have under state or federal law.
By selecting any one or more of these remedies you do not give up your right
to later use any other remedy. By waiving your right to declare an event to
be a default, you do not waive your right to later consider the event as a
default if it continues or happens again.

COLLECTION COSTS AND ATTORNEY'S FEES: I agree to pay all costs of collection,
replevin or any other similar type of cost if I am in default. In addition,
if you hire an attorney to collect this note, I also agree to  pay any fee
you incur with such attorney plus court costs (except where prohibited by
law). To the extent permitted by the United States Bankruptcy Code, I also
agree to pay the reasonable attorney's fees and costs you incur to collect
this debt awarded by any court exercising jurisdiction under the Bankruptcy
Code.

WAIVER: I give up my rights to request you to do certain things. I will not
require you to:
     (1) demand payment of amounts due (presentment):
     (2) obtain official certification of nonpayment (protest); or
     (3) give notice that amounts due have not been paid (notice of dishonor)
     I waive my defenses I have based on suretyship or impairment of
     collateral.
OBLIGATIONS INDEPENDENT: I understand that I must pay this note even if
someone else has also agreed to pay it (by, for example, signing this form as
a separate guarantee or endorsement). You may sue me alone, or anyone else
who is obligated on this note, or any number of us together, to collect this
note. You may do so without any notice that it has not been paid (notice of
dishonor). You may without notice release any party to this agreement without
releasing any other party, if you give up any of your rights, with or without
notice, it will not affect my duty to pay this note. Any extension of new
credit to any of us, or renewal of this note by all or less than all of us
will not release me from my duty to pay it. (Of course, you are entitled to
only one payment in full). I agree that you may at your option extend this
note or the debt represented by this note, or any portion of the note or debt,
from time to time without limit or notice and for any term without affecting
my liability for payment of the note. I will not assign my obligation under
this agreement without your prior written approval.

CREDIT INFORMATION: I agree and authorize you to obtain credit information
about me from time to time (for example, by requesting a credit report) and to
report to others your credit experience with me (such as a credit reporting
agency). I agree to provide you, upon request, any financial statement of
information you may deem necessary. I warrant that the financial statements
and information I provide to you are or will be accurate, correct and complete.

NOTICE: Unless otherwise required by law, any notice to me shall be given by
delivering it or by mailing it first class mail addressed to me at my last
known address. My current address is on page 1. I agree to inform you in
writing of any change in my address. I will give any notice to you by
mailing it first class to your address stated on page 1 of this agreement, or
to any other address that you have designated.

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    DATE OF      PRINCIPAL    BORROWER'S    PRINCIPAL   PRINCIPAL   INTEREST   INTEREST   INTEREST
  TRANSACTION     ADVANCE      INITIAL      PAYMENTS     BALANCE      RATE     PAYMENTS     PAID
                           (Not Required)                                                 THROUGH
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  <S>            <C>       <C>              <C>         <C>         <C>        <C>        <C>
    /  /         $                         $            $                %     $            /  /
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    /  /         $                         $            $                %     $            /  /
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    /  /         $                         $            $                %     $            /  /
------------------------------------------------------------------------------------------------------
    /  /         $                         $            $                %     $            /  /
------------------------------------------------------------------------------------------------------
    /  /         $                         $            $                %     $            /  /
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<PAGE>

                                                                Exhibit 10.20(B)

-------------------------------------------------------------------------------
TRAINING DEVICES, INC.                     AIMS COMMUNITY COLLEGE FOUNDATION
---------------------------------------    P.O. BOX 69
7367 S. REVERE PARKWAY BLDG 2C             GREELEY, CO 80631-069
---------------------------------------
ENGLEWOOD, CO 80112-3931
---------------------------------------

---------------------------------------
TAXPAYER I.D. NUMBER:-
---------------------------------------     SECURITY PARTY'S NAME AND ADDRESS
 DEBTOR'S NAME, ADDRESS AND SSN OR TIN       ("You" means the Secured Party,
  ("I" means each Debtor who signs.)          its successors and assigns.)
-------------------------------------------------------------------------------

I am entering into this security agreement with you on SEPTEMBER 14, 1999
(date).

SECURED DEBTS. I agree that this security agreement will secure the payment
  and performance of the debts, liabilities or obligations described below
  that (Check one)  / /  /XX/  (name)  TRAINING DEVICES, INC. owe(s) to you
  now or in the future:

  (Check one below):
    /X/ Specific Debt(s). The debt(s), liability or obligations evidenced by
        (describe): A PROMISSORY NOTE IN AMOUNT OF $2,020,000.00 DATED
        SEPTEMBER 14, 1999 and all extensions, renewals, refinancings,
        modifications and replacements of the debt, liability or obligation.

    / / All Debt(s). Except in those cases listed in the "LIMITATIONS"
        paragraph on page 2, each and every debt, liability and obligation
        of every type and description (whether such debt, liability or
        obligation now exists or is incurred or created in the future and
        whether it is or may be direct or indirect, due or to become due,
        absolute or contingent, primary or secondary, liquidated or
        unliquidated, or joint, several or joint and several).

Security Interest. To secure the payment and performance of the above
  described Secured Debts, liabilities and obligations, I give you a security
  interest in all of the property described below that I now own and that I
  may own in the future (including, but not limited to, all parts,
  accessories, repairs, improvements, and accessions to the property),
  wherever the property is or may be located, and all proceeds and products
  from the property.

  /X/ Inventory: All inventory which I hold for ultimate sale or lease, or
      which has been or will be supplied under contracts of service, or
      which are raw materials, work in process, or materials used or
      consumed in my business.

  /X/ Equipment: All equipment including, but not limited to, all machinery,
      vehicles, furniture, fixtures, manufacturing equipment, farm machinery
      and equipment, shop equipment, office and recordkeeping equipment, and
      parts and tools. All equipment described in a list or schedule which I
      give to you will also be included in the secured property, but such a
      list is not necessary for a valid security interest in my equipment.

  / / Farm Products: All farm products including, but not limited to:
      (a) all poultry and livestock and their young, along with their
          products, produce and replacements.
      (b) all crops, annual, perennial, and all products of the crops; and
      (c) all feed, seed, fertilizer, medicines, and other supplies used or
          produced in my farming operations.

  /X/ Accounts,Instruments, Documents, Chattel Paper and Other Rights to
      Payment: All rights I have now and that I may have in the future to the
      payment of money including, but not limited to:
      (a) payment for goods and other property sold or leased or for services
          rendered, whether or not I have earned such payment by performance;
          and
      (b) rights to payment arising out of all present and future debt
          instruments, chattel paper and loans and obligations receivable.
      The above include any rights and interests (including all liens and
      security interest(s) which I may have by law or agreement against any
      account debtor or obligor of mine.

  /X/ General Intangibles: All general intangibles including, but not limited
      to, tax refunds, applications for patents, patents, copyrights,
      trademarks, trade secrets, good will, trade names, customer lists,
      permits and franchises, and the right to use my name.

  / / Government Payments and Programs: All payments, accounts, general
      intangibles, or other benefits including, but not limited to, payments
      in kind, deficiency payments, letters of entitlement, warehouse
      receipts, storage payments, emergency assistance payments, diversion
      payments, and conservation reserve payments, which I now have and in
      the future may have any rights or interest and which arise under or as
      a result of any preexisting, current or future Federal or state
      governmental program including, but not limited to, all programs
      administered by the Commodity Credit Corporation and the ASCS).

  / / The secured property includes, but is not limited by, the following:

If this agreement covers timber to be cut, minerals (including  oil and gas),
futures or crops growing or to be grown, the legal description is:

-------------------------------------------------------------------------------

I am a(n) / / individual / / partnership /X/ corporation
          / / _________________________________________________________________
/ / If checked, file this agreement in the real estate records.
Record Owner (if not me): _____________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

The property will be used for / / personal /X/ business / / agricultural
          / /_________________________________________________________ reasons.

_______________________________________________________________________________
                          (Secured Party's Name)

By: ___________________________________________________________________________

Title: ________________________________________________________________________

I AGREE TO THE TERMS SET OUT ON BOTH PAGE 1 AND PAGE 2 OF THIS AGREEMENT. I
have received a copy of this document on today's date.

                       TRAINING DEVICES, INC.
-------------------------------------------------------------------------------
                          (Debtor's Name)

By: ___________________________________________________________________________
    RON ELLINGTON

Title:  CEO
       ------------------------------------------------------------------------

By: ___________________________________________________________________________
    BRUCE BETSCHART

Title:  PRESIDENT
       ------------------------------------------------------------------------

-COPYRIGHT- 1986. 1990 BANKERS SYSTEMS, INC.,
ST. CLOUD, MN (1-800-397-2341)
SECURITY AGREEMENT FORM 5A 8/5/91                                 (PAGE 1 OF 2)

<PAGE>

GENERALLY - "You" means the Secured Party identified on page 1 of this
agreement. "I," "me" and "my" means each person who signs this security
agreement as Debtor and who agrees to give the property described in this
agreement as security for the Secured Debts. All terms and duties under this
agreement are joint and individual. No modification of this security
agreement is effective unless made in writing and signed by you and me. This
security agreement remains in effect, even if the note is paid and I owe no
other debt to you until discharged in writing. Time is of the essence in this
agreement.

APPLICABLE LAW - I agree that this security agreement will be governed by
the law of the state in which you are located. If property described in this
agreement is located in another state, this agreement may also, in some
circumstances, be governed by the law of the state in which this property is
located.

     To the extent permitted by law, the terms of this agreement may vary
applicable law. If any provision of applicable law may not be varied by
agreement, any provision of this agreement that does not comply with that law
will not be effective. If any provision of this agreement cannot be enforced
according to its terms, this fact will not affect the enforceability of the
remainder of this agreement.

OWNERSHIP AND DUTIES TOWARD PROPERTY - I represent that I own all of the
property, or to the extent this is a purchase money security interest I will
acquire ownership of the property with the proceeds of the loan. I will
defend it against any other claim. YOUR CLAIM TO THE PROPERTY IS AHEAD OF THE
CLAIMS OF ANY OTHER CREDITOR. I agree to do whatever you require to protect
your security interest and to keep your claim in the property ahead of the
claims of other creditors. I will not do anything to harm your position.

     I will keep books, records and accounts about the property and my
business in general. I will let you examine these records at any reasonable
time. I will prepare any report or accounting you request, which deals with
the property.

     I will keep the property in my possession and will keep it in good
repair and use it only for the purpose(s) described on page 1 of this
agreement. I will not change this specified use without your express written
permission. I represent that I am the original owner of the property and, if
I am not, that I have provided you with a list of prior owners of the
property.

     I WILL KEEP THE PROPERTY AT MY ADDRESS LISTED ON PAGE 1 OF THIS
AGREEMENT, UNLESS WE AGREE I MAY KEEP IT AT ANOTHER LOCATION. If the property
is to be used in another state, I will give you a list of those states. I
WILL NOT TRY TO SELL THE PROPERTY UNLESS IT IS INVENTORY OR I RECEIVE YOUR
WRITTEN PERMISSION TO DO SO. IF I SELL THE PROPERTY I WILL HAVE THE PAYMENT
MADE PAYABLE TO THE ORDER OF YOU AND ME.

     YOU MAY DEMAND IMMEDIATE PAYMENT OF THE DEBT(S) IF THE debtor is not a
natural person and without your prior written consent (1) a beneficial
interest in the debtor is sold or transferred or (2) there is a change in
either the identity or number of members of a partnership or (3) THERE IS A
CHANGE IN OWNERSHIP OF MORE THAN 25 PERCENT OF THE VOTING STOCK OF A
CORPORATION.

     I will pay all taxes and charges on the property as they become due. You
have the right of reasonable access in order to inspect the property. I will
immediately inform you of any loss or damage to the property.

LIMITATIONS - This agreement will not secure a debt described in the section
entitled "Secured Debts" on page 1:
     1) if you fail to make any disclosure of the existence of this security
        interest required by law for such other debt;
     2) if this security interest is in my principal dwelling and you fail to
        provide (to all persons entitled) any notice of right of rescission
        required by law for such other debt;
     3) to the extent that this security interest is in household goods and
        the other debt to be secured is a "consumer" loan (as those terms are
        defined in applicable federal regulations governing unfair and deceptive
        credit practices);
     4) if this security interest is in margin stock subject to the
        requirements of 12 C.F.A. Section 207 or 221 and you do not obtain a
        statement of purpose if required under these regulations with respect
        to that debt; or
     5) if this security interest is unenforceable by law with respect to
        that debt.

PURCHASE MONEY SECURITY INTEREST - For the sole purpose of determining the
extent of a purchase money security interest arising under this security
agreement (a) payments on any non-purchase money loan also secured by this
agreement will not be deemed to apply to the purchase money loan(s) and (b)
payments on the purchase money loan will be deemed to apply first to the
non-purchase money portion of the loan, if any, and then to the purchase
money obligations in the order in which the items of collaterals were
acquired or if acquired at the same time, in the order specified by you. No
security interest will be terminated by application of this formula.
"Purchase money loan" means any loan the proceeds of which, in whole or in
part, are used to acquire any collateral securing the loan and all
extensions, renewals, consolidations and refinancings of such loan.

AUTHORITY OF SECURED PARTY TO MAKE ADVANCES AND PERFORM FOR DEBTOR - I agree
to pay you on demand any sums you advanced on my behalf including, but not
limited to, expenses incurred in collecting, insuring, conserving, or
protecting the property or in any inventories, audits, inspections or other
examinations by you in respect to the property. If I fail to pay such sums,
you may do so for me, adding the amount paid to the other amounts secured by
this agreement. All such sums will be due on demand and will bear interest at
the highest rate provided in any agreement, note or other instrument
evidencing the Secured Debt(s) and permitted by law at the time of the
advance.

     If I fail to perform any of my duties under this security agreement, or
any mortgage, deed or trust, lien or other security interest, you may without
notice to me perform the duties or cause them to be performed. I understand
that this authorization includes, but is not limited to, permission to: (1)
prepare, file, and sign my name to any necessary reports or accountings; (2)
notify any account debtor of your interest in this property and tell the
account debtor to make the payments to you or someone else you name, rather
than me; (3) place on any chattel paper a note indicating your interest in
the property; (4) in my name, demand, collect, receive and give a receipt
for, compromise, settle, and handle any suits or other proceedings involving
the collateral; (5) take any action you feel is necessary in order to realize
on the collateral, including performing any part of a contract or endorsing
it in any name, and (6) make an entry on my books and records showing the
existence of the security agreement. Your right to perform for me shall not
create an obligation to perform and your failure to perform will not preclude
you from exercising any of your other rights under the law or this security
agreement.

INSURANCE - I agree to buy insurance on the property against the risks and
for the amounts you require and to furnish you continuing proof of coverage.
I will have the insurance company name you as loss payee on any such policy.
You may require added security if you agree that insurance proceeds may be
used to repair or replace the property. I will buy insurance from a firm
licensed to do business in the state where you are located. The firm will be
reasonably acceptable to you. The insurance will last until the property is
released from this agreement. If I fail to buy or maintain the insurance (or
fail to name you as loss payee) you may purchase it yourself.

WARRANTIES AND REPRESENTATIONS - IF THIS AGREEMENT INCLUDES ACCOUNTS, I WILL
NOT SETTLE ANY ACCOUNT FOR LESS THAN ITS FULL VALUE WITHOUT YOUR WRITTEN
PERMISSION. I will collect all accounts until you tell me otherwise. I will
keep the proceeds from all the accounts and any goods which are returned to
me or which I take back in trust for you. I will not mix them with any other
property of mine. I will deliver them to you at your request. If you ask me
to pay you the full price on any returned items or items retaken by myself, I
will do so.

     If this agreement covers inventory, I will not dispose of it except in
my ordinary course of business at the fair market value for the property, or
at a minimum price established between you and me.

     If this agreement covers farm products I will provide you, at your
request, a written list of the buyers, commission merchants or selling agents
to or through whom I may sell my farm products. In addition to those parties
named on this written list, I authorize you to notify at your sole discretion
any additional parties regarding your security interest in my farm products.
I remain subject to all applicable penalties for selling my farm products in
violation of my agreement with you and the Food Security Act. In this
paragraph the terms farm products, buyers, commission merchants and selling
agents have the meanings given to them in the Federal Food Security Act of
1985.

DEFAULT - I will be in default if any one or more of the following occur: (1)
I fail to make a payment on time or in the amount due; (2) I fail to keep the
property insured; if required; (3) I fail to pay, or keep any promise, on any
debt or agreement I have with you; (4) any other creditor of mine attempts to
collect any debt I owe him through court proceedings; (5) I die, am declared
incompetent, make an assignment for the benefit of creditors, or become
insolvent (either because my liabilities exceed my assets or I am unable to
pay my debts as they become due); (6) I make any written statement or provide
any financial information that is untrue or inaccurate at the time it was
provided; (7) I do or fail to do something which causes you to believe that
you will have difficulty collecting the amount I owe you; (8) I change my
name or assumed an additional name without first notifying you before making
such a change; (9) failure to plant, cultivate and harvest crops in due
season; (10) if any loan proceeds are used for a purpose that will contribute
to excessive erosion of highly erodible land or to the conversion of wetlands
to produce an agricultural commodity, as further explained in 7 C.F.R. Part
1940, Subpart G, Exhibit M.

REMEDIES - If I am in default on this agreement, you have the following
remedies:
     1) You may demand immediate payment of all I owe you under any
        obligation secured by this agreement.
     2) You may set off any obligation I have to you against any right I have
        to the payment of money from you.
     3) You may demand more security or new parties obligated to pay any debt
        I owe you as a condition of giving up any other remedy.
     4) You may make use of any remedy you have under state or federal law.
     5) If I default by failing to pay taxes or other charges, you may pay
        them (but you are not required to do so). If you do, I will repay to
        you the amount you paid plus interest at the highest contract rate.
     6) You may require me to gather the property and make it available to
        you in a reasonable fashion.
     7) You may repossess the property and sell it as provided by
        law. You may repossess the property so long as the repossession does
        not involve a breach of the peace or an illegal entry onto my
        property. You may sell the property as provided by law. You may apply
        what you receive from the sale of the property to: your expenses; your
        reasonable attorneys' fees and legal expenses (where not prohibited
        by law); any debt I owe you. If what you receive from the sale of the
        property does not satisfy the debts, you may take me to court to
        recover the difference (where permitted by law).
        I agree that 10 days written notice sent to my address listed on page 1
        by first class mail will be reasonable notice to me under the Uniform
        Commercial Code.
        If any items, not otherwise subject to this agreement are contained in
        the property when you take possession, you may hold these items for
        me at my risk and you will not be liable for taking possession of them.
     8) In some cases, you may keep the property to satisfy the debt.
        You may enter upon and take possession of all or any part of my
        property, so long as you do not breach the peace or illegally enter
        onto the property, including lands, plants, buildings, machinery, and
        equipment as may be necessary to permit you to manufacture, produce,
        process, store or sell or complete the manufacture, production,
        processing, storing or sale of any of the property and to use and
        operate the property for the length of time you feel is necessary to
        protect your interest, all without payment or compensation to me.
     By choosing any one or more of these remedies, you do not waive your
right to later use any other remedy. You do not waive a default if you choose
not to use any remedy, and, by electing not to use any remedy, you do not
waive your right to later consider the event a default and to immediately use
any remedies if it continues or occurs again.

FILING - A carbon, photographic or other reproduction of this security
agreement or the financing statement covering the property described in this
agreement may be used as a financing statement where allowed by law. Where
permitted by law, you may file a financing statement which does not contain
my signature, covering the property secured by this agreement.

CO-MAKERS - If more than one of us has signed this agreement, we are all
obligated equally under the agreement. You may sue any one of us or any of
us together if this agreement is violated. You do not have to tell me if any
term of the agreement has not been carried out. You may release any co-signer
and I will still be obligated under this agreement. You may release any of the
security and I will still be obligated under this agreement. Waiver by you of
any of your rights will not affect my duties under this agreement. Extending
this agreement or new obligations under this agreement will not affect my
duty under the agreement.

BANKERS SYSTEMS, INC., ST. CLOUD, MN (1-800-397-2341)
SECURITY AGREEMENT FORM SA 8/5/91                                (page 2 of 2)
<PAGE>

                                                                Exhibit 10.20(C)

<TABLE>
<CAPTION>

<S>                                     <C>                                    <C>
-----------------------------------------------------------------------------------------------------------------------
TRAINING DEVICES, INC.                  AIMS COMMUNITY COLLEGE FOUNDATION
------------------------------          P.O. BOX 69
7367 S. REVERE PARKWAY BLDG 2C          GREELEY, CO 80631-0069                 Line of Credit No.________________
------------------------------
ENGLEWOOD, CO 80112-3931
------------------------------

------------------------------
BORROWER'S NAME AND ADDRESS              LENDER'S NAME AND ADDRESS             Date September 14, 1999
"I" includes each borrower              "You" means the lender, its                 ------------------
above, jointly and severally.           successors and assigns.                Max. Credit Amt. $2,020,000.00
                                                                                               --------------
                                                                               Loan Ref. No.
                                                                                             ----------------
-----------------------------------------------------------------------------------------------------------------------
</TABLE>

You have extended to me a line of credit in the
AMOUNT OF  TWO MILLION TWENTY THOUSAND AND NO/100   $  2,020,000.00
           --------------------------------------   ---------------
You will make loans to me from time to time until   5:00    P m. on
                                                 ---------  ---
DECEMBER 1, 2000. Although the line of credit expires on that date, I will
-----------------
remain obligated to perform all my duties under this agreement as long as I
owe you any money advanced according to the terms of this agreement, as
evidenced by any note or notes I have signed promising to repay these amounts.

     This line of credit is an agreement between you and me. It is not
intended that any third party receive any benefit from this agreement,
whether by direct payment, reliance for future payment or in any other
manner. This agreement is not a letter of credit.

1. AMOUNT:  This line of credit is:

     / / OBLIGATORY: You may not refuse to make a loan to me under this line
         of credit unless one of the following occurs:
         a.  I have borrowed the maximum amount available to me;
         b.  This line of credit has expired;
         c.  I have defaulted on the note (or notes) which show my
             indebtedness under this line of credit;
         d.  I have violated any term of this line of credit or any note or
             other agreement entered into in connection with this line of
             credit.
         e.  _________________________________________________________________
             _________________________________________________________________
             ________________________________________________________________.
     /X/ DISCRETIONARY: You may refuse to make a loan to me under this line
of credit once the aggregate outstanding advances equal or exceed
ONE AND NO/100     $1.00    .
--------------   -----------

Subject to the obligatory or discretionary limitations above, this line of
credit is:
     / / OPEN-END (Business or Agricultural only); I may borrow up to the
         maximum amount of principal more than one time.
     /X/ CLOSED-END: I may borrow up to the maximum only one time.

2.  PROMISSORY NOTE: I will repay any advances made according to this line of
    credit agreement as set out in the promissory note, I signed on
    September 14, 1999, or any note(s) I sign at a later time which represent
    advances under this agreement. The note(s) set(s) out the terms relating
    to maturity, interest rate, repayment and advances. If indicated on the
    promissory note, the advances will be made as follows:

AS PER DRAW REQUEST
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

3.  RELATED DOCUMENTS: I have signed the following documents in connection
    with this line of credit and note(s) entered into in accordance with
    this line of credit.

    /X/ security agreement dated SEPTEMBER 14, 1999
                                -------------------- / / ---------------------

    / / mortgage dated
                      ------------------------------ / / ---------------------

    / / guaranty dated
                      ------------------------------ / / ---------------------

4.  REMEDIES: If I am in default on the note(s) you may:
       a.  take any action as provided in the related documents
       b.  without notice to me, terminate this line of credit.
           By selecting any of these remedies you do not give up on your
       right to later use any other remedy. By deciding not to use any remedy
       should I default, you do not waive your right to later consider the
       event a delay if it happens again.

5.  COSTS AND FEES: If you hire an attorney to enforce this agreement I will
    pay your reasonable attorney's fees, where permitted by law. I will also
    pay your court costs and costs of collection, where permitted by law.

6.  COVENANTS: For as long as this line of credit is in effect or I owe you
    money for advances made in accordance with the line of credit, I will do
    the following:
    a.  maintain books and records of my operations relating to the need for
        this line of credit;
    b.  permit you or any of your representatives to inspect and/or copy
        these records;
    c.  provide to you any documentation requested by you which support the
        reason for making any advance under this line of credit;
    d.  permit you to make any advance payable to the seller (or seller and
        me) of any items being purchased with that advance;
    e.  ______________________________________________________________________
        ______________________________________________________________________
        ______________________________________________________________________

7.  NOTICES: All notices or other correspondence with me should be sent to my
    address stated above. The notice or correspondence shall be effective when
    deposited in the mail, first class or delivered to me in person.

8.  MISCELLANEOUS: This line of credit may not be changed except by a written
    agreement signed by you and me. The law of the state in which you are
    located will govern this agreement. Any term of this agreement which is
    contrary to applicable law will not be effective, unless the law permits
    you and me to agree to such a variation.

                                         SIGNATURES: I AGREE TO THE TERMS OF
                                                     THIS LINE OF CREDIT. I
                                                     HAVE RECEIVED A COPY ON
                                                     TODAY'S DATE.

FOR THE LENDER

  PAULANN DOANE      PAT THOMAS          TRAINING DEVICES, INC.
--------------------------------         -------------------------------
TITLE  EXEC DIR      PRESIDENT           BY:
--------------------------------         -------------------------------
                                            RON ELLINGTON, CEO

                                         BY:
                                         -------------------------------
                                            BRUCE BETSCHART, PRESIDENT

                                                             (Page 1 of 1)<PAGE>
                                                                  EXHIBIT 10.5

                          DOT HILL SYSTEM CORPORATION

                             1995 INCENTIVE PROGRAM

         The 1995 Incentive Program (the "PROGRAM") provides for the grant to
officers, directors and employees of Hill Systems Corporation and its direct and
indirect subsidiaries (collectively, the "COMPANY"), and certain consultants to
the Company, certain rights to acquire shares of the Company's common stock, par
value $.01 per share (the "COMMON STOCK"). The Company believes that this
Program will cause those persons to contribute materially to the growth and
success of the Company, thereby benefitting its stockholders.

1.       ADMINISTRATION.

         The Program shall be administered and interpreted by the Board of
Directors of the Company or by one or more Committees appointed by the Board of
Directors of the Company from among its members (the "PLAN ADMINISTRATOR"). The
Board of Directors may appoint different Committees to handle different duties
under the Program. The Plan Administrator's decisions shall be final and
conclusive with respect to the interpretation and administration of the Program
and any Grant made under it.

2.       GRANTS.

         Incentives under the Program shall consist of incentive stock options,
non-qualified stock options, stock appreciation rights in tandem with stock
options or freestanding, and restricted stock grants (any of the foregoing, in
any combination, collectively, "GRANTS"). All Grants shall be subject to the
terms and conditions set out herein and to such other terms and conditions
consistent with this Program as the Plan Administrator deems appropriate. The
Plan Administrator shall approve the form and provisions of each Grant. Grants
under a particular section of the Program need not be uniform, and Grants under
two or more sections may be combined in one instrument.

3.       ELIGIBILITY FOR GRANTS.

         Grants may be made to any employee, officer, key executive, director,
professional or administrative employee, consultant or advisor to the Company or
any subsidiary of the Company selected by the Plan Administrator to receive
Grants under the Program (persons so selected, the "GRANTEES").

4.       SHARES AVAILABLE FOR GRANT.

         (a) SHARES SUBJECT TO ISSUANCE OR TRANSFER. Subject to adjustment as
provided in Section 4(b), the aggregate number of shares of Common Stock (the
"SHARES") that may be issued or transferred under the Program is 1,000,000
Shares plus, (i) any Shares which are forfeited under the Program after the
Program becomes effective; plus (ii) any Shares surrendered to the Company in
payment of the exercise price of options issued under the Program. However, no
award may be issued that would bring the total of all outstanding awards

                                  1.

<PAGE>

under the Program to more than 20% of the total number of Shares of Common
Stock of the Company at the time outstanding. The Shares may be authorized
but unissued Shares or Treasury Shares. The number of Shares available for
Grants at any given time shall be reduced by the aggregate of all Shares
previously issued or transferred pursuant to the Program plus the aggregate
of all Shares which may become subject to issuance or transfer under
then-outstanding and then-currently exercisable Grants. Notwithstanding
anything to the contrary contained herein, all share amounts referred to
herein shall be deemed to reflect the 200,000-for-one stock split with regard
to the Common Stock of the Company approved by the Board of Directors of the
Company on May 23, 1995 regardless of when the necessary documents to effect
such stock split shall be filed with the applicable state officials and
regardless of when any associated Charter Amendment shall be deemed effective.

         (b) ADJUSTMENTS UPON CHANGES IN CAPITALIZATION OR OTHER EVENTS. Upon
changes in the Common Stock of the Company by reason of a stock dividend, stock
split, reverse split, recapitalization, merger, consolidation, combination or
exchange of shares, separation, reorganization or liquidation, the number and
class of Shares available under the Program as to which Grants may be made (both
in the aggregate and to any one Grantee), the number and class of Shares under
each then-outstanding Stock Option and the Option Price per share of such
options, and the terms of stock appreciation rights shall be correspondingly
adjusted by the Plan Administrator, such adjustments to be made in the case of
outstanding Stock Options without change in the total price applicable to such
options. In the event of a merger, consolidation, combination, reorganization or
other transaction in which the Company will not be the surviving corporation, or
in which the Company becomes a wholly-owned subsidiary of the new corporation, a
Grantee of Stock Options under the Program shall be entitled to options on that
number of shares of stock in the new corporation which the Grantee would have
received had the Grantee exercised all of the unexercised options available to
the Grantee under the Program, whether or not then exercisable, at the instant
immediately prior to the effective date of such transaction, and, if such
unexercised options had related stock appreciation rights, the Grantee also will
receive new stock appreciation rights related to the new options. Thereafter,
adjustments as provided above shall relate to the options or stock appreciation
rights of the new corporation. Except as otherwise specifically provided in the
instrument of Grant, in the event of a Change in Control (as defined below),
merger, consolidation, combination, reorganization or other transaction in which
the shareowners of the Company will receive cash or securities (other than
Common Stock) or in the event that an offer is made to the holders of Common
Stock of the Company to sell or exchange such Common Stock for cash, securities
or stock of another corporation and such offer, if accepted, would result in the
offeror becoming the owner of (a) at least 50% of the outstanding Common Stock
of the company or (b) such lesser percentage of the outstanding Common Stock
which the Plan Administrator in its sole discretion determines will materially
adversely affect the market value of the Common Stock after the tender or
exchange offer, the Plan Administrator shall have the right, but not the
obligation, in the exercise of its business judgment, prior to the shareowners'
vote on such transaction or prior to the expiration date (without extensions) of
the tender or exchange offer, (i) accelerate the time of exercise so that all
Stock options and stock appreciation rights which are outstanding shall become
immediately exercisable in full, and all Restricted Stock Grants shall
immediately vest in full, without regard to any limitations of time, performance
or amount otherwise contained in the Program or in the instruments of Grant
and/or (ii) determine that the options and stock appreciation rights shall be
adjusted and make such adjustments by substituting for Common

                                  2.
<PAGE>

Stock of the Company subject to options and stock appreciation rights, common
stock of the surviving corporation or offeror if such stock of such
corporation is publicly traded or, if such stock is not publicly traded, by
substituting common stock of a parent of the surviving corporation or offeror
if the stock of such parent is publicly traded, in which event the aggregate
option price shall remain the same and the number of shares subject to
outstanding grants shall be the number of shares which could have been
purchased on the closing day of such transaction or the expiration date of
the offer with the proceeds which would have been received by the Grantee if
the option had been exercised in full prior to such transaction or expiration
date and the Grantee had exchanged all of such shares in the transaction or
sold or exchanged all of such shares pursuant to the tender or exchange
offer, and if any such option has related stock appreciation rights, the
stock appreciation rights shall likewise be adjusted. For purposes of this
Section 4(b), "CHANGE IN CONTROL" means (i) any "PERSON", as such term is
used in Section 13(d) and 14(d) of the Securities Exchange Act of1934, as
amended (the "EXCHANGE ACT") (other than the Company, any trustee or other
fiduciary holding securities under an employee benefit plan of the Company,
or any corporation owned, directly or indirectly, by the shareowners of the
Company in substantially the same proportion as their ownership of stock of
the Company), is or becomes the "BENEFICIAL OWNER" (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
representing 30% or more of the combined voting power of the Company's then
outstanding securities without the approval of the Board of Directors of the
Company; (ii) during any period of two consecutive years, individuals who at
the beginning of such period constitute the Board, and any new director
(other than a director designated by a person who has entered into an
agreement with the Company to effect a transaction described in clause (i),
(iii), or (iv) of this sentence) whose election by the Board or nomination
for election by the Company's shareowners was approved by a vote of at least
two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved cease for any reason to constitute at
least a majority thereof; (iii) the shareowners of the Company approve a
merger or consolidation of the Company with any other company, other than (1)
a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either
by remaining outstanding or by being converted into voting securities of the
surviving entity) more than 50% of the combined voting power of the voting
securities of the Company or such surviving entity outstanding immediately
after such merger or consolidation or (2) a merger or consolidation effected
to implement a recapitalization of the Company (or similar transaction) in
which no "PERSON" (as hereinabove defined) acquires more than 50% of the
combined voting power of the Company's then outstanding securities; or (iv)
the shareowners of the Company approve a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or
substantially all of the Company's assets and properties.

5.       STOCK OPTIONS.

         The Plan Administrator may grant options qualifying as incentive stock
options under the Internal Revenue Code of 1986, as amended ("INCENTIVE STOCK
OPTIONS"), or non-qualified options not entitled to special tax treatment under
Section 422 of the Internal Revenue Code of 1986 (the "CODE"), as amended
(collectively, "STOCK OPTIONS"). The following provisions of this Section 5 are
applicable to Stock Options:

                                   3.

<PAGE>

         (a) EXERCISE OF OPTION. A Grantee may exercise a Stock Option by
delivering a notice of exercise to the Company, either with or without
accompanying payment of the option price (the "OPTION PRICE"). The notice of
exercise, once delivered, shall be irrevocable.

         (b) SATISFACTION OF OPTION PRICE. The Grantee shall pay the option
Price in cash or by delivering shares of Common Stock which have been owned by
the Grantee for a minimum of six (6) months and which have a Fair Market Value
on the date of exercise equal to the Option Price, or a combination of cash and
Shares. The Grantee shall pay the Option Price not later than thirty (30) days
after the date of a statement from the Company following exercise setting forth
the Option Price, Fair Market Value of Common Stock on the exercise date, the
number of shares of Common Stock that may be delivered in payment of the Option
Price, and the amount of withholding tax due, if any. If the Grantee fails to
pay the option Price within the thirty (30) day period, the Plan Administrator
shall have the right to take whatever action it deems appropriate, including
voiding the option exercise. The Company shall not issue or transfer shares of
Common Stock upon exercise of a Stock Option until the Option Price is fully
paid.

         (c) SHARE WITHHOLDING. With respect to any non-qualified option or SAR
(as defined below), the Plan Administrator may, in its discretion and subject to
such rules as the Plan Administrator may adopt (including, without limitation,
rules relating to minimum holding periods for Common Stock), permit the Grantee
to satisfy,, in whole or in part, any withholding tax obligation which may arise
in connection with the exercise of the non-qualified option or SAR by electing
to have the Company withhold shares of Common Stock having a Fair Market Value
equal to the amount of the withholding tax. Notwithstanding the foregoing, as a
condition of the Grant of any Stock Option or SAR to any officer or director of
the Company subject to the reporting requirements (a "REPORTING PERSON") of
Section 16 promulgated under the Securities Exchange Act of 1934, as amended
(the "EXCHANGE ACT"), the Plan Administrator shall require, upon the exercise of
any Stock Option or SAR by any Reporting Person, at a time when the Company
shall be required to file periodic reports under Section 13 of the Exchange Act,
that the number of shares of Common Stock otherwise issuable upon the exercise
of such Stock Option or SAR shall be reduced by the number of shares of Common
Stock having an aggregate Fair Market Value equal to the amount of the Reporting
Person's liability for any and all taxes required by law to be withheld.

         (d) PRICE AND TERM. The option Price per share, term and other
provisions of Stock Options granted under the Program shall be specified by the
Grant, as limited, in the case of Incentive Stock Options, by the provisions of
Section 5(e) below, if granted pursuant to such Section. In addition, the Plan
Administrator may prescribe such other conditions as it may deem appropriate,
which conditions shall be specified in the instrument of Grant.

         (e) LIMITS ON INCENTIVE STOCK OPTIONS. The aggregate fair market value
of the stock covered by Incentive Stock Options granted under the Program or any
other stock option plan of the Company or any subsidiary or parent of the
Company that become exercisable for the first time by any employee in any
calendar year shall not exceed $100,000. The aggregate Fair Market Value will be
determined at the time of grant. The period for exercise of an Incentive Stock
Option shall not exceed ten (10) years from the date of the Grant (or five years
if the Grantee is also a 10% stockholder). The Option Price at which Common
Stock may be purchased by the Grantee under an Incentive Stock Option shall be
the Fair Market Value (or

                                   4.
<PAGE>

110% of the Fair Market Value if the Grantee is a 10% stockholder) of the
Common Stock on the date of the Grant. Incentive Stock Options may only be
granted to employees of the Company or any subsidiary or parent of the
Company. Incentive Stock Options by their terms shall not be transferrable by
the Grantee other than by the laws of descent and distribution, and shall be
exercisable, during the lifetime of the Grantee, only by the Grantee.

         (f) RESTORED OPTIONS. Stock Options granted under the Program may, with
the Plan Administrator's permission, include the right to acquire a restored
option (a "RESTORED OPTION"). If a Stock Option grant contains a Restored Option
feature and if a Grantee pays all or part of the Option Price of such Stock
Option with shares of Common Stock held by the Grantee, then upon exercise of
such Stock Option the Grantee shall be granted a Restored Option to purchase, at
the Fair Market Value of the Common Stock as of the date of the grant of the
Restored Option, the number of shares of Common Stock of the Company equal to
the sum of the number of whole shares used by the Grantee in payment of the
Option Price and the number of whole shares, if any, withheld by the Company as
payment for withholding taxes. A Restored Option may be exercised between the
date of grant and the date of expiration, which will be the same as the date of
expiration of the Stock Option to which such Restored Option is related.

6.       STOCK APPRECIATION RIGHT.

         The Plan Administrator may grant a Stock Appreciation Right ("SAR")
either independently or in conjunction with any Stock Option granted under the
Program. The following provisions are applicable to each SAR:

         (a) OPTIONS TO WHICH RIGHT RELATES. Each SAR which is issued in
conjunction with a Stock Option shall specify the Stock Option to which the SAR
is related, together with the Option Price and number of option shares subject
to the SAR at the time of its grant.

         (b) REQUIREMENT OF EMPLOYMENT. An SAR may be exercised only while the
Grantee is in the employment of the Company, except that the Plan Administrator
may provide for partial or complete exceptions to this requirement as it deems
equitable.

         (c) EXERCISE. A Grantee may exercise an SAR in whole or in part by
delivering a notice of exercise to the Company, except that the Plan
Administrator may provide for partial or complete exceptions to this requirement
as it deems equitable.

         (d) PAYMENT AND FORM OF SETTLEMENT. If a Grantee exercises an SAR which
is issued in conjunction with a Stock Option, he shall receive the aggregate of
the excess of the fair market value of each share of Common Stock with respect
to which the SAR is being exercised over the Option Price of each such share.
Payment, in any event, may be made in cash, Common Stock which has been held by
the Grantee for at least six (6) months or a combination of the two, in the
discretion of the Plan Administrator. Fair Market Value shall be determined as
of the date of exercise.

         (e) EXPIRATION AND TERMINATION. Each SAR shall expire on a date
determined by the Plan Administrator at the time of grant. If a Stock option is
exercised in whole or in part, any SAR related to the Shares purchased in
connection with such exercise shall terminate immediately.

                               5.
<PAGE>

7.       RESTRICTED STOCK GRANTS.

         The Plan Administrator may issue or transfer shares of Common Stock
("RESTRICTED STOCK") to a Grantee under a Restricted Stock Grant. Shares of
Restricted Stock are subject to forfeiture unless and until specified employment
vesting and/or performance vesting conditions are met, as determined by the Plan
Administrator. Until the shares vest or are forfeited, as the case may be, the
Grantee shall be entitled to vote the shares and to receive any dividends paid.
The following provisions are applicable to Restricted Stock Grants:

         (a) REQUIREMENT OF EMPLOYMENT. If the Grantee's employment terminates
prior to the fulfillment of the conditions for vesting of the Restricted Stock,
as set forth in the specific instrument of Grant, all shares of Restricted Stock
held by him or her and still subject to restriction will be forfeited and must
be returned immediately to the Company. However, the Plan Administrator may
provide for partial or complete exceptions to this requirement as it deems
equitable.

         (b) RESTRICTIONS OF TRANSFER AND LEGEND ON STOCK CERTIFICATE. Prior to
the fulfillment of the conditions for vesting, a Grantee may not sell, assign,
transfer, pledge, or otherwise dispose of the shares of Common Stock except to a
Successor Grantee under Section 9(a). Each certificate for shares issued or
transferred under a Restricted Stock Grant shall contain a legend giving
appropriate notice of the restrictions applicable to the Grant. The Plan
Administrator may, in its sole discretion, require that such certificates be
placed into escrow with the Company until vesting.

         (c) LAPSE OF RESTRICTIONS. All restrictions imposed under a Restricted
Stock Grant shall lapse upon the fulfillment of the conditions for vesting set
forth in the instrument of Grant provided that all of the conditions stated in
Sections 7(a) and (b) have been met as of the date of such lapse. The Grantee
shall then be entitled to have the legend removed from the certificate.

8.       AMENDMENT AND TERMINATION OF THE PROGRAM.

         (a) AMENDMENT. The Board of Directors of the Company may from time to
time amend, alter, suspend or discontinue the Program, subject to any
requirement of stockholder approval required by applicable law, rule or
regulation, including Section 162(m) of the Code or, if the Common Stock is then
listed or admitted for trading on any United States securities exchange or on
the National Association of Securities Dealers, Inc. Automated Quotation System
("NASDAQ"), any requirement for stockholder approval required under the rules of
such exchange or NASDAQ, as the case may be; provided, however, that no
amendment shall be made without stockholder approval if such amendment would (1)
increase the maximum number of shares of Common Stock available for issuance
under this Program (subject to Section 4(b)), (2) reduce the minimum Option
Price in the case of an option or the base price in the case of an SAR, (3)
effect any change inconsistent with Section 422 of the Code or (4) extend the
term of this Program.

         (b) TERMINATION OF THE PROGRAM. The Program shall terminate on the
tenth anniversary of its effective date unless terminated earlier by the Board
or unless extended by the Board.

                                 6.
<PAGE>

         (c) TERMINATION AND AMENDMENT OF OUTSTANDING GRANTS. A termination or
amendment of the Program that occurs after a Grant is made shall not result in
the termination or amendment of the Grant unless the Grantee consents or unless
the Plan Administrator acts under Section 9(d). The termination of the Program
shall not impair the power and authority of the Plan Administrator with respect
to outstanding Grants. Whether or not the Program has terminated, an outstanding
Grant may be terminated or amended under Section 9(d) or may be amended by
agreement of the Company and the Grantee on terms consistent with the Program.

9.       GENERAL PROVISIONS.

         (a) PROHIBITIONS AGAINST TRANSFER. Only a Grantee or his or her
authorized representative may exercise rights under a Grant. Such persons may
not transfer those rights, except upon the express written consent of the
Company, which may be granted or denied in the Company's discretion. Except as
otherwise expressly provided herein or in the instrument of grant, when a
Grantee dies, the personal representative or other person entitled under a Grant
under the Program to succeed to the rights of the Grantee ("SUCCESSOR Grantee")
may exercise the rights. A Successor Grantee must furnish proof satisfactory to
the Plan Administrator of his or her right to receive the Grant under the
Grantee's will or under the applicable laws of descent and distribution.

         (b) SUITABLE GRANTS. The Plan Administrator may make a Grant to an
employee of another corporation who becomes an Eligible Grantee by reason of a
corporate merger, consolidation, acquisition of stock or property, share
exchange, reorganization or liquidation involving the Company in substitution
for a stock option, stock appreciation right, performance award, or restricted
stock grant previously granted by such corporation (the "ORIGINAL INCENTIVES").
The terms and conditions of the substitute Grant may vary from the terms and
conditions required by the Program and from those of the Original Incentives.
The Plan Administrator shall prescribe the exact provisions of the substitute
Grants, preserving where possible the provisions of the Original Incentives.

         (c) SUBSIDIARIES. The term "SUBSIDIARY" means a corporation in which
the Company owns directly or indirectly 50% or more of the voting power.

         (d) COMPLIANCE WITH LAW. The Program, the exercise of Grants, and the
obligations of the Company to issue or transfer shares of Common Stock under
Grants shall be subject to all applicable laws and to approvals by any
governmental or regulatory agency as may be required. The Plan Administrator may
revoke any Grant if it is contrary to law or modify a Grant to bring it into
compliance with any valid and mandatory government regulation. The Plan
Administrator may also adopt rules regarding the withholding of taxes on payment
to Grantees.

         (e) OWNERSHIP OF STOCK. A Grantee or Successor Grantee shall have no
rights as a stockholder of the Company with respect to any Shares covered by a
Grant until the Shares are issued or transferred to the Grantee or Successor
Grantee on the Company's books.

         (f) NO RIGHT TO EMPLOYMENT. The Program and the Grants under it shall
not confer upon any Grantee the right to continue in the employment of the
Company or affect in any way the right of the Company to terminate the
employment of a Grantee at any time.

                                  7.
<PAGE>

         (g) EFFECTIVE DATE OF THE PROGRAM. The Program shall become effective
upon its approval by the Company's stockholders.

         (h) FAIR MARKET VALUE. For the purposes of the Program, the term Fair
Market Value means, as of any date, the closing price of a share of Common Stock
of the Company on such date. The closing price shall be (i) if the Common Stock
is then listed or admitted for trading on any national securities exchange, or
if not so listed or admitted for trading, is listed or admitted for trading on
NASDAQ, the last sale price of the Common Stock, regular way, or the mean of the
bid and asked prices thereof for any trading day on which no such sale occurred,
in each case as officially reported on the principal securities exchange on
which the Common Stock is listed or admitted for trading or on NASDAQ, as the
case may be, or (ii) if not so listed or admitted for trading on a national
securities exchange or NASDAQ, the mean between the closing high bid and low
asked quotations for the Common Stock in the over-the-counter market as reported
by NASDAQ, or any similar system for the automated dissemination of securities
prices then in common use, if so quoted, as reported by any member firm of the
New York Stock Exchange selected by the Company; PROVIDED, HOWEVER, that if, by
reason of extended or continuous trading hours on any exchange or in any market
or for any other reason, the time, with respect to any trading day, of the close
of trading for the purpose of determining the "last sale price" or the "closing"
bid and asked prices is not objectively determinable, the time on such trading
day used for the purpose of reporting any compilation of last sale prices or
closing bid and asked prices in THE WALL STREET JOURNAL shall be the time on
such trading day as of which the "last sale price" or "closing" bid and asked
prices are determined for purposes of this definition. If the Common Stock is
quoted on a national securities or central market system in lieu of a market or
quotation system described above, the closing price shall be determined in the
manner set forth in clause (i) of the preceding sentence if actual transaction
are reported, and in the manner set forth in clause (ii) of the preceding
sentence if bid and asked quotations are reported but actual transactions are
not. If on the date in question, there is no exchange or over-the-counter market
for the Common Stock, the "fair market value" of such Common Stock shall be
determined by the Plan Administrator acting in good faith.

         (i) APPLICATION OF FUNDS. The proceeds received by the Company from the
issuance of Grants pursuant to the Program will be used for general corporate
purposes.

         (j) NO OBLIGATION TO EXERCISE OPTION. The granting of an option to any
Grantee under the Program shall impose no obligation upon such Grantee to
exercise such option.

         (k) SEVERABILITY. If any provision of the Program, or any term or
condition of any Grant granted or form executed or to be executed thereunder, or
any application thereof to any person or circumstances is invalid, such
provision, term, condition or application shall to that extent be void (or, in
the discretion of the Plan Administrator, such provision, term or condition may
be amended so as to avoid such invalidity or failure), and shall not affect
other provisions, terms or conditions or applications thereof, and to this
extent such provisions, terms and conditions are severable.

         (l) INSTRUMENT OF GRANT. Each Grant under this Program shall be
evidenced by an agreement (i.e., an instrument of Grant) setting forth the terms
and conditions applicable to such Grant. No Grant shall be valid until an
agreement is executed by the Company and the recipient

                                8.
<PAGE>

of such award and, upon execution by each party and delivery of the agreement
to the Company, such award shall be effective as of the effective date set
forth in the Agreement.

         (m) RESTRICTED SHARES. Each award made hereunder shall be subject to
the requirement that if at any time the Company determines that the listing,
registration or qualification of the shares of Common Stock subject to such
award upon any securities exchange or under any law, or the consent or approval
of any governmental body, or the taking of any other action is necessary or
desirable as a condition of, or in connection with, the delivery of shares
thereunder, such shares shall not be delivered unless such listing,
registration, qualification, consent, approval or other action shall have been
effected or obtained, free of any conditions not acceptable to the Company. The
Company may require that certificates evidencing shares of Common Stock
delivered pursuant to any award made hereunder bear a legend indicating that the
sale, transfer or other disposition thereof by the holder is prohibited except
in compliance with the Securities Act of 1933, as amended, and the rules and
regulations thereunder.

         (n) PROGRAM CONTROLS. In the case of any conflict or inconsistency
between the terms of this Program and the terms of any instrument of Grant, the
terms of this Program will control, unless the instrument of grant expressly
provides that the terms of such instrument of grant will control.

                               9.

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