Document:

STOCK PURCHASE AGREEMENT

      This Stock Purchase Agreement (this "Agreement") is made as of the 10th
day of January, 2000, by and among Airport Systems International, Inc., a Kansas
corporation with its principal office at 11300 West 89th Street, Overland Park,
Kansas, 66214 (the "Buyer"), DCI, Inc., a Kansas corporation with its principal
office at 15301 W. 109th Street, Lenexa, Kansas 66219 (the "Company"), Chris I.
Hammond, Larry C. Klusman and William D. Cook (collectively referred to herein
as the "Sellers").

                                    RECITALS

      1. The Sellers own all of the issued and outstanding shares of the common
stock, $1.00 par value per share, of the Company (the "Company Shares").

      2. The Buyer desires to purchase, and the Sellers desire to sell, the
Company Shares and certain intangible assets owned by them and relating to the
business of the Company for the consideration set forth below, subject to the
terms and conditions of this Agreement.

      NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth and other good and valuable consideration, the receipt of which is hereby
acknowledged, the parties hereby agree as follows:

     1. PURCHASE AND SALE OF THE COMPANY SHARES AND INTANGIBLE ASSETS

     1.1 PURCHASE OF THE COMPANY SHARES AND INTANGIBLE ASSETS FROM THE SELLERS.
Subject to and upon the terms and conditions of this Agreement, at the closing
of the transactions contemplated by this Agreement (the "Closing"):

          (a) the Sellers shall sell, transfer, convey, assign and deliver to
     the Buyer, and the Buyer shall purchase, acquire and accept from Sellers,
     all of the Company Shares; and

          (b) the Sellers shall sell, assign and deliver to Buyer and Buyer
     shall purchase and accept from Sellers, all of Seller's right, title and
     interest to all of the intangible assets necessary to conduct or used by
     Sellers in connection with the operation of the Company's business
     including, but not limited to, the ongoing business and customer
     relationships possessed by Sellers, Sellers' industry knowledge and
     Sellers' familiarity and relationships with suppliers (collectively
     referred to herein as the "Intangible Assets").

     1.2  PURCHASE PRICE FOR THE COMPANY SHARES AND INTANGIBLE ASSETS.

          (a) The consideration to be paid for the Company Shares and the
     Intangible Assets shall be the sum of Two Million Nine Hundred Thirty-Two
     Thousand Dollars ($2,932,000), subject to adjustment after Closing pursuant
     to Section 1.4(b) hereof (the "Purchase Price").

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          (i) At Closing, Buyer shall pay to the Sellers the portion of the
     Purchase Price equal to $1,234,000 by wire transfer of immediately
     available funds to accounts designated by the Sellers; and

          (ii) At Closing, the Buyer shall issue to the Sellers shares of
     Buyer's common stock ("ASII Common Stock"), $.01 par value per share. Buyer
     shall deliver a certificate or certificates representing 150,000 shares of
     ASII Common Stock, to be allocated among the Sellers as instructed by the
     Sellers and imprinted with the Sellers' names.

          (iii) At Closing, the Buyer shall deliver to Seller a four-year
     promissory note in the amount of $1,248,000 (the "Note"). The Note shall be
     secured by a second position on the assets of DCI which second position
     shall be subordinated to any security interests granted at Closing or any
     future security interest granted on such assets for cash committed to Buyer
     on any future financings, and shall bear interest (payable quarterly) at
     eight percent (8%) with principal payable semi-annually in eight (8) equal
     payments of $156,000. The Note shall also be secured by a third position on
     the assets currently owned by KHC of Lenexa L.L.C. (the "KHC Assets"),
     which third position shall be subordinated as described above and shall be
     subordinated to the security interests for industrial revenue bond
     financing currently in place. In addition, the Note shall require payment
     in full upon the occurrence of a change of control, as therein defined.

     1.3 CLOSING. The Closing shall take place at the offices of Blackwell
Sanders Peper Martin LLP, 2300 Main Street, Suite 1100, Kansas City, Missouri
64108 at 10:00 a.m., local time, on February 4th, 2000, or at such other place,
time or date as may be mutually agreed upon in writing by the parties (such date
and time being referred to herein as the "Closing Date"). The transfer of the
Company Shares and the ASII Common Stock shall be deemed to occur at 10:00 a.m.,
central standard time, on the Closing Date.

     1.4 ALLOCATION OF PURCHASE PRICE. The aggregate amount of the Purchase
Price shall be allocated among the Company Shares and the Intangible Assets in a
manner mutually acceptable to the parties and as set forth on SCHEDULE 1.4
attached hereto.

     1.5 DELIVERY OF SHARES. At the Closing, Sellers shall deliver to the Buyer
certificates evidencing the Company Shares duly endorsed in blank or with stock
powers duly executed by the Sellers.

     2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND EACH OF THE SELLERS

     The Company and each of the Sellers hereby represents and warrants to the
Buyer as follows:

     2.1 TITLE TO SHARES. The Sellers have good and marketable title to the
Company Shares which are to be transferred to the Buyer by the Sellers pursuant
hereto, free and clear of any and all covenants, conditions, restrictions,
voting trust arrangements, liens, charges, encumbrances, options and adverse
claims or rights whatsoever.

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     2.2 AUTHORITY. The Sellers have the full right, power and authority to
enter into this Agreement and to transfer, convey and sell to the Buyer at the
Closing the Company Shares to be sold by the Sellers hereunder and, upon
consummation of the purchase contemplated hereby, the Buyer will acquire from
the Sellers good and marketable title to the Company Shares, free and clear of
all covenants, conditions, restrictions, voting trust arrangements, liens,
charges, encumbrances, options and adverse claims or rights whatsoever.

     2.3 EXECUTION AND DELIVERY. The Sellers are not a party to, subject to or
bound by any agreement or any judgment, order, writ, prohibition, injunction or
decree of any court or other governmental body which would prevent the execution
or delivery of this Agreement by the Sellers or the transfer, conveyance and
sale of the Company Shares to be sold by the Sellers to the Buyer pursuant to
the terms hereof.

     2.4 BROKERS. No broker or finder has acted for the Sellers in connection
with this Agreement or the transactions contemplated hereby, and no broker or
finder is entitled to any brokerage or finder's fee or other commissions in
respect of such transactions based upon agreements, arrangements or
understandings made by or on behalf of the Sellers.

     2.5 CAPITALIZATION OF THE COMPANY. The Company's authorized capital stock
consists of 500 shares of common stock, $1.00 par value per share, of which 300
shares are issued and outstanding on the date hereof and held of record and
beneficially by the Sellers in the amounts allocated as set forth on SCHEDULE
2.5 attached hereto. All such issued and outstanding shares of common stock have
been and, on the Closing Date, will be duly and validly issued and are, or will
be on such date, fully paid and non-assessable. Except as set forth in SCHEDULE
2.5 attached hereto, there are not, and on the Closing Date there will not be,
outstanding (a) any options, warrants or other rights to purchase from the
Company any capital stock of the Company, (b) any securities convertible into or
exchangeable for shares of such stock; or (c) any other commitments of any kind
for the issuance of additional shares of capital stock or options, warrants or
other securities of the Company.

     2.6 ORGANIZATION AND STATUS OF THE COMPANY. The Company is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Kansas, and has all requisite power and authority (corporate or
otherwise) to execute and deliver this Agreement and the agreements contemplated
herein, and to consummate the transactions contemplated hereby and thereby. The
Company has all requisite corporate power to own its properties and carry on its
business as now being conducted and is duly qualified to do business in each
jurisdiction in which the nature of its business or properties make such
qualification necessary. The jurisdictions where the Company is so qualified are
set forth in SCHEDULE 2.6. Complete and correct copies of the Articles of
Incorporation and By-Laws, each as amended to the date hereof, for the Company
are set forth in SCHEDULE 2.6.

     2.7 NO SUBSIDIARIES OR AFFILIATED ENTITIES. Except as set forth in SCHEDULE
2.7, the Company does not own an equity interest representing 50 percent or more
of the capital stock or other equity interest in any corporation, partnership,
joint venture or other entity.

     2.8 AUTHORIZATION. The execution and delivery by the Company of this
Agreement and the agreements to be executed by the Sellers and/or the Company
hereunder and to be

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delivered by the Sellers and/or the Company at Closing, and the consummation by
the Company and Sellers of all transactions contemplated hereunder and
thereunder by the Company, have been duly authorized by all requisite corporate
action and necessary shareholder approval (none of which actions or approvals
has been modified or rescinded and all of which actions and approval are in full
force and effect.) This Agreement has been duly executed by the Company and the
Sellers. This Agreement and all other agreements and obligations entered into
and undertaken in connection with the transactions contemplated hereby to which
the Company or the Sellers is a party constitute the valid and legally binding
obligations of the Company and the Sellers, enforceable against them in
accordance with their respective terms. The execution, delivery and performance
by the Company and the Sellers of this Agreement and the agreements provided for
herein, and the consummation by the Company and the Sellers of the transactions
contemplated hereby and thereby, will not, with or without the giving of notice
or the passage of time or both, (a) violate the provisions of any law, rule or
regulation applicable to the Company or the Sellers; (b) violate the provisions
of the Articles of Incorporation or Bylaws of the Company; (c) violate any
judgment, decree, order or award of any court, governmental body or arbitrator;
or (d) conflict with or result in the breach or termination of any term or
provision of, or constitute a default under, or cause any acceleration under, or
cause the creation of any lien, charge or encumbrance upon the properties or
assets of the Company or the Company Shares pursuant to any indenture, mortgage,
deed of trust or other instrument or agreement to which the Company or any of
the Sellers is a party or by which the Company or any of the Sellers or any of
their respective properties is or may be bound. SCHEDULE 2.8 attached hereto
sets forth a true, correct and complete list of all consents and approvals of
third parties that are required in connection with the consummation of the
transactions contemplated by this Agreement.

     2.9 FINANCIAL STATEMENTS.

          (a) The Sellers has previously delivered to the Buyer the unaudited
     balance sheet of the Company as of December 31, 1998 and 1997 (the "Prior
     Year Balance Sheets") and the related statements of income, shareholder's
     equity, retained earnings and changes in financial condition of the Company
     for the fiscal year then ended (collectively, the "Prior Year Financial
     Statements"). The Sellers have also delivered to the Buyer, prior to the
     Closing Date, the unaudited balance sheet of the Company as of September
     30, 1999 (the "Current Balance Sheet") and the related statements of
     income, shareholder's equity, retained earnings and changes in financial
     condition of the Company for the three-month period then ended
     (collectively, the "Current Financial Statements"). The Prior Year
     Financial Statements and the Current Financial Statements (collectively,
     the "Financial Statements") have been prepared in accordance with generally
     accepted accounting principles, applied consistently, with past practices
     and have been (or will be) certified by the Company's chief financial
     officer. The date of the Prior Year Balance Sheets is hereinafter referred
     to as the "Balance Sheet Date."

          (b) To the best knowledge of the Sellers, the Financial Statements
     fairly present, as of their respective dates, the financial condition,
     retained earnings, assets and liabilities of the Company and the results of
     operations of the Company's business for the periods indicated. With
     respect to contracts and commitments for the sale of goods or the provision
     of services by the Company, the Financial Statements contain and reflect
     adequate reserves consistent with previous reserves taken for all
     reasonably anticipated

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     material losses and costs and expenses. The amounts shown as accrued for
     current and deferred income and other taxes in the Financial Statements are
     sufficient for the payment of all accrued and unpaid federal, state and
     local taxes, interest, penalties, assessments or deficiencies applicable to
     the Company, whether disputed or not, for the applicable period then ended
     and periods prior thereto.

     2.10 ABSENCE OF UNDISCLOSED LIABILITIES. Except as and to the extent (a)
reflected and reserved against in the Current Balance Sheet, (b) set forth on
SCHEDULE 2.10 attached hereto, or (c) incurred in the ordinary course of
business after the date of the Current Balance Sheet and not material in amount,
either individually or in the aggregate, to the best knowledge of the Sellers,
the Company does not have any liability or obligation, secured or unsecured,
whether accrued, absolute, contingent, unasserted or otherwise, which is
material to the condition (financial or otherwise) of the assets, properties,
business or prospects of the Company taken as a whole. For purposes of this
Agreement, "material" means any amount in excess of $25,000.

     2.11 LITIGATION. Except as set forth on SCHEDULE 2.11 attached hereto, (a)
there is no action, suit or proceeding to which the Company is a party (either
as a plaintiff or defendant) pending or, to the best knowledge of the Sellers,
threatened before any court or governmental agency, authority, body or
arbitrator and, to the best knowledge of the Sellers, there is no basis for any
such action, suit or proceeding; (b) neither the Company, nor, to the best
knowledge of the Sellers, any officer, director or employee of any of the
Company, has been permanently or temporarily enjoined by any order, judgment or
decree of any court or any governmental agency, authority or body from engaging
in or continuing any conduct or practice in connection with the business,
assets, or properties of the Company; and (c) there is not in existence on the
date hereof any order, judgment or decree of any court, tribunal or agency
related to the Company. Except as set forth on SCHEDULE 2.11 attached hereto,
there is no action, suit or proceeding to which one or more of the Sellers is a
party that may impact the contemplated transactions or the Company Shares.

     2.12 INSURANCE. SCHEDULE 2.12 attached hereto sets forth a true, correct
and complete list of all fire, theft, casualty, general liability, workers'
compensation, business interruption, environmental impairment, product
liability, automobile and other insurance policies maintained by the Company and
of all life insurance policies maintained on the lives of any of their
employees, specifying the type of coverage, the amount of coverage, the premium,
the insurer and the expiration date of each such policy (collectively, the
"Insurance Policies") and all claims made under such Insurance Policies since
January 1, 1997. True, correct and complete copies of all Insurance Policies
have been previously delivered by the Sellers or the Company to the Buyer. The
Insurance Policies are in full force and effect and are in amounts of a nature
which are adequate and customary for the Company's business. All premiums due on
the Insurance Policies or renewals thereof have been paid and there is no
default under the Insurance Policies. Except as set forth on SCHEDULE 2.12, the
Company has not received any notice or other communication from any issuer of
the Insurance Policies since January 1, 1999 canceling or materially amending
any of the Insurance Policies, materially increasing any deductibles or retained
amounts thereunder, or materially increasing the annual or other premiums
payable thereunder, and, to the best knowledge of the Sellers, no such
cancellation, amendment or increase of deductibles, retainages or premiums is
threatened. Except as set forth on SCHEDULE 2.12, the Company does not have has
any outstanding claims or any dispute with any

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insurance carrier regarding claims, settlements or premiums, and the Company has
not failed to give any notice or present any claim under any Insurance Policy in
due and timely fashion. There are no outstanding requirements or recommendations
by any issuer of the Insurance Policies or by any Board of Fire Underwriters or
other similar body exercising similar functions or by any governmental authority
exercising similar functions which requires or recommends any changes in the
conduct of the business of, or any repairs or other work to be done on or with
respect to any of the properties or assets owned or leased by, the Company.

     2.13 PERSONAL PROPERTY. SCHEDULE 2.13 attached hereto sets forth (i) a
true, correct and complete list of all items of tangible personal property owned
by the Company as of the date hereof having either a net book value per unit or
an estimated fair market value per unit in excess of $2,500; or not owned by the
Company but in the possession of or used in the business of the Company and
having rental payments therefor in excess of $250 per month or $3,000 per year
(collectively, the "Personal Property"); and (ii) a description of the owner of,
and any agreement relating to the use of, each item of Personal Property not
owned by the Company and the circumstances under which such Property is used.
Except as disclosed in SCHEDULE 2.13:

          (a) The Company has good and marketable title to each item of Personal
     Property free and clear of all liens, leases, encumbrances, claims under
     bailment and storage agreements, equities, conditional sales contracts,
     security interests, charges and restrictions, except for liens, if any, for
     personal property taxes not due;

          (b) No officer, director, employee nor any of the Sellers of the
     Company nor any spouse, child or other relative or affiliate thereof, owns
     directly or indirectly, in whole or in part, any of the Personal Property
     described in SCHEDULE 2.13;

          (c) Each item of Personal Property not owned by the Company is in such
     condition that upon the return of such property to its owner in its present
     condition at the end of the relevant lease term or as otherwise
     contemplated by the applicable agreement between the Company and the owner
     or lessor thereof, the obligations of the Company to such owner or lessor
     will be discharged;

          (d) The Personal Property is in good operating condition and repair,
     normal wear and tear excepted, is currently used by the Company in the
     ordinary course of its business, and normal maintenance has been
     consistently performed with respect to the Personal Property; and

          (e) The Company owns or otherwise has the right to use all of the
     Personal Property now used by it in the operation of its business or the
     use of which is necessary for the performance of any material contract,
     letter of intent or proposal to which it is a party.

     2.14 INTANGIBLE PROPERTY. SCHEDULE 2.14 attached hereto sets forth: (i) a
true, correct and complete list and, where appropriate, a description of, all
items of intangible property owned by, or used in the business of, the Company,
including, but not limited to, trade secrets, United States and foreign patents,
trade names, trademarks, trade name and trademark registrations, copyrights and
copyright registrations, and applications for any of the foregoing (the
"Intangible

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Property"); and (ii) a true, correct and complete list of all licenses or
similar agreements or arrangements to which the Company is a party, either as
licensee or licensor, with respect to the Intangible Property. Except as
otherwise disclosed in SCHEDULE 2.14:

          (a) The Company is the sole and exclusive owner of all right, title
     and interest in and to the Intangible Property and all designs, permits,
     and instruction and procedures manuals, used on or in connection therewith,
     free and clear of all liens, security interests, charges, encumbrances,
     equities and other adverse claims;

          (b) The Company has the right and authority to use the Intangible
     Property in connection with the conduct of its business in the manner
     presently conducted, and such use does not conflict with, infringe upon or
     violate any rights of any other person, corporation or entity;

          (c) Neither the Company nor the Sellers have received notice of, or
     have any knowledge of any basis for, a pending or threatened claim,
     interference action or other judicial or adversarial proceeding against the
     Company that any of the Company's operations, activities, products,
     services or publications infringes any patent, trademark, trade name,
     copyright, trade secret or other property right of a third party, or that
     it is illegally or otherwise using the trade secrets or property rights of
     others;

          (d) There are no outstanding, nor to the best knowledge of the
     Sellers, any threatened disputes or other disagreements with respect to any
     licenses or similar agreements or arrangements described in SCHEDULE 2.14
     or with respect to infringement by a third party of any of the Intangible
     Property;

          (e) The Intangible Property owned or licensed by the Company is
     sufficient to conduct the Company's business as presently conducted;

          (f) The Company has taken all steps reasonably necessary to protect
     its right, title and interest in and to the Intangible Property; and

          (g) No officer, director, employee nor any of the Sellers of the
     Company, nor any spouse, child or other relative or affiliate thereof, owns
     directly or indirectly, in whole or in part, any of the Intangible
     Property.

     2.15 LEASES. SCHEDULE 2.15 attached hereto sets forth (a) a true, correct
and complete list as of the date hereof of all leases of real property,
identifying separately each ground lease, to which the Company is a party
(collectively, the "Leases"). The real property that is the subject of all such
Leases shall be referred to herein as the "Real Estate." True, correct and
complete copies of all Leases and all amendments, modifications and supplemental
agreements thereto, have previously been delivered by the Sellers or the Company
to the Buyer. The Leases are in full force and effect, are binding and
enforceable against each of the parties thereto in accordance with their
respective terms and, except as set forth on SCHEDULE 2.15, have not been
modified or amended since the date of delivery to the Buyer. No party to any
Lease has sent written notice to the other claiming that such party is in
default thereunder and that such default remains uncured. Except as set forth on
SCHEDULE 2.15, there has not occurred any event which would constitute a breach
of or default in the performance of any covenant, agreement or condition
contained in any

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Lease, nor has there occurred any event which with the passage of time or the
giving of notice or both would constitute such a breach or material default. The
Company is not obligated to pay any leasing or brokerage commission relating to
any Lease and, except as set forth on SCHEDULE 2.15, will not have any
obligation to pay any leasing or brokerage commission upon the renewal of any
Lease. Except as set forth on SCHEDULE 2.15, no construction, alteration or
other leasehold improvement work with respect to any of the Leases remains to be
paid for or to be performed by the Company. The Financial Statements contain
adequate reserves to provide for the restoration of the property subject to the
Leases at the end of the respective Lease terms, to the extent required by the
Leases.

     2.16 INVENTORY. SCHEDULE 2.16 attached hereto sets forth a summary of the
inventory of the Company (the "Inventory"), with aggregate dollar amounts for
each category of Inventory, as of the date hereof. The Inventory consists of
items of a quality and quantity which are usable or saleable, without discount,
in the ordinary course of the business conducted by the Company, assuming sales
are at current levels. The value of all items of obsolete materials and of
materials of below standard quality have been written down to realizable market
value and the values at which such inventory is carried reflect the normal
Inventory valuation policy of the Company of stating Inventory at the lower of
cost or market value in accordance with generally accepted accounting
principles.

     2.17 ACCOUNTS RECEIVABLE. SCHEDULE 2.17 attached hereto sets forth a true,
correct and complete list of the accounts and notes receivable of the Company
(the "Accounts Receivable"), including the aging thereof as of the date hereof.
All Accounts Receivable arose out of the sales of inventory or services in the
ordinary course of business and are collectible in the face value thereof within
90 days after the date of invoice, using normal collection procedures, net of
the reserve for doubtful accounts set forth thereon, which reserve is adequate
and was calculated in accordance with generally accepted accounting principles
consistently applied.

     2.18 TAX MATTERS.

          (a) Except as set forth on SCHEDULE 2.18 attached hereto:

               (i) within the times and in the manner prescribed by law, the
          Company has filed all federal, state and local tax returns and all tax
          returns for foreign countries, provinces and other governing bodies
          having jurisdiction to levy taxes upon them which are required to be
          filed;

               (ii) the Company has paid all taxes, interest, penalties,
          assessments and deficiencies which have become due or which have been
          claimed to be due, including without limitation income, franchise,
          real estate, sales and withholding taxes and other employee benefits,
          taxes and imports;

               (iii) all tax returns filed by the Company for the taxable years
          ending December 31, 1994 through December 31, 1998 constitute complete
          and accurate representations of the tax liabilities of the Company for
          such years and accurately set forth all items (to the extent required
          to be included or reflected in such

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          returns) relevant to their future tax liabilities, including the tax
          bases of their properties and assets;

               (iv) the Company has not waived or extended any applicable
          statute of limitations relating to the assessment of federal, state,
          local or foreign taxes;

               (v) no examinations of the federal, state, local or foreign tax
          returns of the Company is currently in progress nor, to the best
          knowledge of the Sellers, threatened, and no deficiencies have been
          asserted or assessed against the Company as a result of any audit by
          the Internal Revenue Service or any state or local taxing authority
          and no such deficiency has been proposed or threatened;

               (vi) the Company has not filed a consent pursuant to Section
          341(f) of the Internal Revenue Code of 1986, as amended (the "Code")
          relating to collapsible corporations nor has the Company agreed to
          have Section 341(f)(2) of the Code apply to any disposition of a
          Section (f) asset (as such term is defined in Section 341(f)(4) of the
          Code); and

               (vii) since January 1, 1996, the Company has not participated in
          or cooperated with an international boycott, within the meaning of
          Section 999 of the Code, nor has the Company had operations which are
          or may hereafter become reportable under Section 999 of the Code.

          (b) SCHEDULE 2.18 attached hereto sets forth those taxable years for
     which the tax returns of the Company have been reviewed or audited by
     applicable federal, state, local and foreign taxing authorities and those
     tax years for which said tax returns have received clearances or other
     indications of approval from applicable federal, state, local and foreign
     taxing authorities. No issue or issues have been raised in connection with
     any prior or pending review or audit of said federal, state, local or
     foreign tax returns which the Sellers reasonably believe may be expected to
     be raised in the future by such taxing authorities in connection with the
     audit or review of the tax returns of the Company.

     2.19 BOOKS AND RECORDS. The general ledgers and books of account of the
Company and all federal, state and local income, franchise, property and other
tax returns filed by the Company are in all material respects complete and
correct and have been maintained in accordance with good business practice and
in accordance with all applicable procedures required by laws and regulations.

     2.20 CONTRACTS AND COMMITMENTS.

          (a) SCHEDULE 2.20 attached hereto contains a true, complete and
     correct list and description of the following contracts and agreements,
     whether written or oral (collectively, the "Contracts"):

               (i) All loan agreements, indentures, mortgages and guaranties to
          which the Company is a party or by which the Company or any of its
          property is

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          bound including but not limited to, the Company's third party loans
          with Bank of America;

               (ii) All pledges, conditional sale or title retention agreements,
          security agreements, equipment obligations, personal property leases
          and lease purchase agreements to which the Company is a party or by
          which the Company or any of its property is bound;

               (iii) All contracts, agreements, commitments, purchase orders or
          other understandings or arrangements to which the Company is a party
          or by which the Company or any of its property is bound which (A)
          involve aggregate payments or receipts by the Company of more than
          $2,500 in the case of any single contract, agreement, commitment,
          understanding or arrangement under which full performance (including
          payment) has not been rendered by all parties thereto or (B) which may
          materially adversely affect the condition (financial or otherwise) or
          the properties, assets, business or prospects of the Company;

               (iv) All collective bargaining agreements, employment and
          consulting agreements, executive compensation plans, bonus plans,
          deferred compensation agreements, pension plans, retirement plans,
          employee stock option or stock purchase plans and group life, health
          and accident insurance and other employee benefit plans, agreements,
          arrangements or commitments to which the Company is a party or by
          which the Company or any of its property is bound;

               (v) All agency, distributor, sales representative, franchise or
          similar agreements to which the Company is a party or by which the
          Company or any of its property is bound;

               (vi) All contracts, agreements or other understandings or
          arrangements between the Company and the Sellers (including, but not
          limited to, any tax sharing arrangements) or their affiliates;

               (vii) All leases, whether operating, capital or otherwise, under
          which the Company is lessor or lessee;

               (viii) All contracts, agreements and other documents or
          information relating to past disposal of waste (whether or not
          hazardous);

               (ix) All contracts, agreements or other arrangements imposing a
          non-competition or non-solicitation obligation on the Company or any
          of its employees; and

               (x) Any other material agreements or contracts entered into by
          the Company.

     (b) Except as set forth on SCHEDULE 2.20:

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               (i) Each Contract is a valid and binding agreement of the
          Company, enforceable against the Company in accordance with its terms;
          and the Company does not have any knowledge that any Contract is not a
          valid and binding agreement of the other parties thereto;

               (ii) The Company has fulfilled all material obligations required
          pursuant to the Contracts to have been performed by the Company on its
          part prior to the date hereof; and the Company has no reason to
          believe that it will not be able to fulfill, when due, all of its
          obligations under the Contracts which remain to be performed after the
          date hereof;

               (iii) The Company is not in breach of or default under any
          Contract, and no event has occurred which with the passage of time or
          giving of notice or both would constitute such a default, result in a
          loss of rights or result in the creation of any lien, charge or
          encumbrance, thereunder or pursuant thereto;

               (iv) To the best knowledge of the Sellers, there is no existing
          breach or default by any other party to any Contract, and no event has
          occurred which with the passage of time or giving of notice or both
          would constitute a default by such other party, result in a loss of
          rights or result in the creation of any lien, charge or encumbrance
          thereunder or pursuant thereto;

               (v) There are not and, since January 1, 1998, have not been, any
          claims of a non-routine nature relating to the Company by customers of
          the Company;

               (vi) The Company is not restricted by any Contract from carrying
          on its business anywhere in the world;

               (vii) The Company does not have any written or oral contracts to
          sell products or perform services that are expected to be performed
          at, or to result in, a loss;

               (viii) The Company has not experienced any shortages of
          components or other supplies (collectively "Supplies") or qualified
          employees within the 12-month period preceding the date hereof, and
          the Company has on hand, or has reason to believe it can timely
          obtain, a sufficient quantity of Supplies and employees to satisfy all
          outstanding orders heretofore received and all orders anticipated to
          be received from the date hereof through the Closing Date; and (ix)
          The Company has not experienced any shortages of raw materials ("Raw
          Materials") within the 12-month period preceding the date hereof, and
          the Company has on hand, or has reason to believe it can timely
          obtain, a sufficient quantity of Raw Materials to satisfy all
          outstanding orders heretofore received and all orders anticipated to
          be received through the Closing Date.

          (c) True, correct and complete copies of all Contracts have previously
     been delivered by the Company or the Sellers to the Buyer.

                                       11
<PAGE>

     2.21 COMPLIANCE WITH AGREEMENTS AND LAWS.

          (a) The Company has all requisite licenses, permits and certificates,
     including environmental, health and safety permits, from federal, state and
     local authorities necessary to conduct its business and own and operate its
     assets (collectively, the "Permits"). SCHEDULE 2.21 attached hereto sets
     forth a true, correct and complete list of all such Permits, copies of
     which have previously been delivered by the Company or the Sellers to the
     Buyer. The Company has not received written notice that it is in violation
     of any law, regulation or ordinance (including, without limitation, laws,
     regulations or ordinances relating to building, zoning, environmental,
     disposal of hazardous substances, land use or similar matters) relating to
     its properties. To the best knowledge of the Sellers, the business of the
     Company as conducted since January 1, 1998 has not violated, and on the
     date hereof does not violate, in any material respect, any federal, state,
     local or foreign laws, regulations or orders (including, but not limited
     to, any of the foregoing relating to employment discrimination,
     occupational safety, environmental protection, hazardous waste,
     conservation, or corrupt practices, including the Foreign Corrupt Practices
     Act), the enforcement of which would have a material adverse effect on the
     results of operations, condition (financial or otherwise), assets,
     properties, business or prospects of the Company. Except as set forth on
     SCHEDULE 2.21, the Company has not had notice or communication from any
     federal, state or local governmental or regulatory authority or otherwise
     of any such violation or noncompliance.

     2.22 ENVIRONMENTAL.

          (a) For purposes of this Section:

               (i) "Hazardous Materials" means any hazardous, infectious or
          toxic substance, chemical, pollutant, contaminant, emission or waste
          which is regulated by any local, state, federal or foreign authority.
          Hazardous Materials include, without limitation, anything which is:
          (i) defined as a "pollutant" pursuant to 33 U.S.C. Section 1362(6);
          (ii) defined as a "hazardous waste" pursuant to 42 U.S.C. Section
          6921; (iii) defined as a "regulated substance" pursuant to 42 U.S.C.
          Section 6991; (iv) defined as a "hazardous substance" pursuant to 42
          U.S.C. Section 9601(14); (v) defined as a "pollutant or contaminant"
          pursuant to 42 U.S.C. Section 9601(33); (vi) petroleum; (vii)
          asbestos; and (viii) polychlorinated biphenyl.

               (ii) "Environmental Laws and Regulations" means all limitations,
          restrictions, conditions, standards, prohibitions, requirements,
          obligations, schedules and timetables contained in any Laws relating
          to pollution, nuisance, health, safety or the environment including,
          without limitation, (i) the Federal Clean Air Act, 42 U.S.C. Sections
          7401 ET SEQ.; (ii) the Comprehensive Environmental Response,
          Compensation, and Liability Act, 42 U.S.C. Sections 9601 ET SEQ.;
          (iii) the Federal Emergency Planning and Community Right-to-Know Act,
          42 U.S.C. Sections 1101 ET SEQ.; (iv) the Federal Insecticide,
          Fungicide and Rodenticide Act, 7 U.S.C. Sections 136 ET SEQ.; (v) the
          Federal Water Pollution Control Act, 33 U.S.C. Sections 1251 ET SEQ.;
          (vi) the Solid

                                       12
<PAGE>

          Waste Disposal Act, 42 U.S.C. Sections 6901 ET SEQ.; (vii) the Toxic
          Substances Control Act, 15 U.S.C. Sections 2601 ET seq.; (viii) Laws
          relating in whole or part to emissions, discharges, releases, or
          threatened releases of any Hazardous Material; and (ix) Laws relating
          in whole or part to the manufacture, processing, distribution, use,
          coverage, disposal, transportation, storage or handling of any
          Hazardous Material.

          (b) To the best knowledge of Sellers, the operations and activities of
     Sellers and the Company have complied, and until the Closing Date will
     comply, in all respects, with all Environmental Laws and Regulations.

          (c) To the best knowledge of Sellers, there is no civil, criminal,
     administrative or other action, suit, demand, claim, hearing, notice of
     violation, proceeding, investigation, notice or demand pending, received,
     or threatened against the Sellers or the Company relating in any way to any
     Environmental Laws and Regulations.

          (d) Neither the Sellers nor the Company have received notice or
     indication from any Governmental Authority or private or public entity
     advising it that it is or may be responsible for any investigation or
     response costs with respect to a release, threatened release or cleanup of
     chemicals or materials produced by or resulting from any business,
     commercial or industrial activities, operations or processes, including,
     without limitation, any Hazardous Materials.

     2.23 EMPLOYEE RELATIONS.

          (a) To the best knowledge of Sellers, the Company is in compliance
     with all federal, state and municipal laws respecting employment and
     employment practices, terms and conditions of employment, and wages and
     hours, and is not engaged in any unfair labor practice, and there are no
     arrears in the payment of wages or social security taxes.

          (b) To the best knowledge of Sellers, except as set forth on SCHEDULE
     2.23 attached hereto:

               (i) None of the employees of the Company is represented by any
          labor union;

               (ii) There is no unfair labor practice complaint against the
          Company pending before the National Labor Relations Board or any state
          or local agency;

               (iii) There is no pending labor strike or other material labor
          trouble affecting the Company (including, without limitation, any
          organizational drive);

               (iv) There is no material labor grievance pending against the
          Company;

               (v) There is no pending union representation effort respecting
          the employees of the Company;

                                       13
<PAGE>

               (vi) There are no pending arbitration proceedings arising out of
          or under any collective bargaining agreement to which the Company is a
          party, or to the best knowledge of the Sellers, any basis for which a
          claim may be made under any collective bargaining agreement to which
          the Company is a party; and

               (vii) The Company does not have any continuing obligation for
          health, life, medical insurance or other similar fringe benefits to
          any former employee of the Company.

          (c) The Company has provided to the Buyer a true, correct and complete
     list of the current payroll of the Company, including the job descriptions
     and salary or wage rates for each department manager, showing separately
     for each such person the amounts paid or payable as salary and bonus
     payments for the fiscal year ended December 31, 1998.

          (d) For purposes of this Section 2.23, the term "employee" shall be
     construed to include sales agents and other independent contractors who
     spend a majority of their working time on the business of the Company.

     2.24 EMPLOYEE BENEFIT PLANS.

            (a) EMPLOYEE PLANS. SCHEDULE 2.24 attached hereto contains a true,
      correct and complete list of all pension, benefit, profit sharing,
      retirement, deferred compensation, welfare, insurance, disability, bonus,
      vacation pay, severance pay and other similar plans, programs and
      agreements, whether reduced to writing or not ("Employee Plans"), relating
      to the employees of the Company, or maintained at any time since January
      1, 1997 by the Company or by any member of any controlled group of
      corporations, group of trades or businesses under common control, or
      affiliated service group (as defined for purposes of Section 414(b), (c)
      and (m), respectively, of the Code) (the "Company Employee Plans") of
      which it is or has been a member which shall be referred to herein as a
      "Member of the Controlled Group") and, except as set forth on SCHEDULE
      2.24, the Company has no obligations, contingent or otherwise, past or
      present, under applicable law or the terms of any Employee Plan. The
      Company has not contributed to, and does not have any past or present
      obligation to contribute to, any stock option or stock purchase plan or
      other plan designed to hold the stock of the Company or any of its
      affiliates. No employee of the Company participates in an Employee Plan
      that is sponsored or maintained by an entity other than the Company and no
      one other than Company employees and their beneficiaries or dependents
      participate in an Employee Plan sponsored or maintained by the Company.

          (b) PROHIBITED TRANSACTIONS. Neither the Company nor any of its
     directors, officers, employees or agents, or any "party in interest" or
     "disqualified person", as such terms are defined in Section 3 of the
     Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and
     Section 4975 of the Code has, with respect to any Employee Plan, engaged in
     or been a party to any nonexempt "prohibited transaction", as such term is
     defined in Section 4975 of the Code or Section 406 of ERISA, in connection
     with which, directly or indirectly, the Buyer or any of its affiliates,
     directors or employees or

                                       14
<PAGE>

     any Employee Plan or any related funding medium could be subject to either
     a penalty assessed pursuant to Section 502(i) of ERISA or a tax imposed by
     Section 4975 of the Code.

          (c) COMPLIANCE. To the best knowledge of Sellers, with respect to all
     Company Employee Plans, the Company is in compliance with the terms of the
     plans and the requirements prescribed by any and all statutes, orders or
     governmental rules or regulations currently in effect, including, but not
     limited to, ERISA and the Code, applicable to such Company Employee Plans.
     To the best knowledge of Sellers, the Company has in all respects performed
     all obligations required to be performed by it under, and is not in
     violation in any respect of, and there has been no default or violation by
     any other party with respect to, any of the Company Employee Plans. Except
     as set forth on SCHEDULE 2.24, none of the Company Employee Plans which are
     subject to Title IV of ERISA has been or will be terminated in whole or in
     part within the meaning of ERISA or the Code; no liability has been
     incurred to, nor has any event or circumstance occurred, nor will any event
     or circumstance occur prior to the Closing Date, which could result in such
     a liability being asserted by, the Pension Benefit Guaranty Corporation
     with respect to any Company Employee Plan (other than the payment of annual
     premiums under Section 4007 of ERISA); nor has any Company Employee Plan
     that is subject to Part 3 of Subtitle B of Title I of ERISA or Section 412
     of the Code, or both, incurred any "accumulated funding deficiency" (as
     defined in ERISA), whether or not waived; nor has the Company failed to pay
     any amounts due and owing as required by the terms of any Company Employee
     Plan; nor has there been any "reportable event" within the meaning of
     Section 4043(b)(l)-(9) of ERISA, or any event described in Section 4063(a)
     of ERISA, with respect to any Company Employee Plan, other than as
     disclosed herein or on accompanying schedules.

          (d) MULTI EMPLOYER PLANS. Except as set forth on SCHEDULE 2.24,
     neither the Company nor any Member of the Controlled Group has ever been
     obligated to contribute to any "multi employer plan", as such term is
     defined in Section 3(37) of ERISA. Neither the Company nor any Member of
     the Controlled Group has any "withdrawal liability", as computed under
     Section 4211 of ERISA, with respect to any such plan and the Company and
     each Member of the Controlled Group has made all contributions to any such
     plan as are required through the Closing Date under the terms of any such
     plans or applicable statutes, regulations, rulings and other applicable
     law; and no event has occurred, or can occur prior to the Closing Date,
     which could give rise to any other liability (other than a continuing
     obligation to contribute to such plan(s) under the terms of any applicable
     collective bargaining agreements) on the part of the Company or any Member
     of the Controlled Group, the Buyer, or their affiliates, officers,
     employees or directors with respect to such plan(s).

          (e) COPIES OF COMPANY EMPLOYEE PLANS AND RELATED DOCUMENTS. The
     Sellers or the Company have previously delivered to the Buyer true, correct
     and complete copies of all Company Employee Plans which have been reduced
     to writing and written descriptions of all Company Employee Plans which
     have not been reduced to writing, and all agreements, including trust
     agreements and insurance contracts, related to such Company Employee Plans,
     and the Summary Plan Description and all modifications

                                       15
<PAGE>

     thereto for each Company Employee Plan communicated to employees. With
     respect to each Company Employee Plan that is a "defined benefit plan", as
     such term is defined in Section 3(35) of ERISA (the "Defined Benefit
     Plans"), true, correct and complete copies of (i) the annual actuarial
     valuation reports for the last five years, (ii) the Form 5500 and Schedule
     A or B thereto, or both, filed for the last five years and (iii) any
     filings made with the Pension Benefit Guaranty Corporation, Internal
     Revenue Service or Department of Labor, or any correspondence with or from
     such agencies, regarding the termination of any such Defined Benefit Plan,
     have been delivered to the Buyer.

          (f) QUALIFICATIONS. Each Company Employee Plan and all amendments
     thereto intended to qualify under Section 401(a) of the Code have been
     determined by the Internal Revenue Service to so qualify, and the trusts
     created thereunder have been determined to be exempt from tax under the
     provisions of Section 501(a) of the Code, and copies of all determination
     letters with respect to each such Company Employee Plan have been
     previously delivered by the Sellers or the Company to the Buyer, and
     nothing has since occurred, or will occur prior to the Closing Date, which
     might cause the loss of such qualification or exemption, no such Company
     Employee Plan has been operated in a manner which would cause it to be
     disqualified in operation, and all such Company Employee Plans have been
     administered in compliance with and consistent with all applicable
     requirements of the Code and ERISA, including, without limitation, all
     reporting and disclosure requirements.

(g)   FUNDING STATUS.

               (i) There is no Company Employee Plan that is a funded Defined
          Benefit Plan.

               (ii) With respect to each Company Employee Plan which is a
          qualified profit-sharing or stock bonus plan, as defined in ERISA, all
          employer contributions accrued for plan years ending prior to the
          Closing Date under the Company Employee Plan terms and applicable law
          have been made by the Company.

               (iii) All premiums or other payments required by the terms of any
          group or individual insurance policies and programs maintained by the
          Company Employee Plan with respect to all periods up to and including
          the Closing Date have been fully paid for the length of the
          obligation.

          (h) CLAIMS AND LITIGATION. There are no threatened or pending claims,
     suits or other proceedings by present or former employees of the Company or
     their affiliates, plan participants, beneficiaries or spouses of any of the
     above, including claims against the assets of any trust, involving any
     Company Employee Plan, or any rights or benefits thereunder, other than
     ordinary and usual claims for benefits by participants or beneficiaries.

          (i) NO IMPLIED RIGHTS. Nothing expressed or implied herein shall
     confer upon any past or present employee of the Company, its
     representatives, beneficiaries,

                                       16
<PAGE>

     successors and assigns, nor upon any collective bargaining agent, any
     rights or remedies of any nature, including, without limitation, any rights
     to employment or continued employment with the Buyer, the Company, or any
     successor or affiliate; nor shall the Buyer, the Company or their
     affiliates be precluded or prevented from terminating or amending any
     Company Employee Plan.

          (j) TRANSFER. The Company shall take any actions as may be necessary
     or appropriate in the reasonable opinion of the Buyer and the Buyer's
     counsel under all applicable laws and the terms of the Company Employee
     Plans to establish the Buyer, or an affiliate of the Buyer, as having all
     rights and obligations with respect to the Company Employee Plans assumed
     pursuant to this Agreement, including, without limitation, rights with
     respect to all annuity or insurance contracts which form a part of any of
     such Company Employee Plans, together with all other Company Employee Plan
     assets. The Sellers shall obtain as of the Closing Date any and all
     consents from trustees required to effect any transfer of any trust(s)
     related to such assumed Company Employee Plans to such Trustee(s) as may be
     appointed by the Buyer.

     2.25 ABSENCE OF CERTAIN CHANGES OR EVENTS.

          (a) Except as set forth on SCHEDULE 2.25 attached hereto, since the
     Current Balance Sheet Date, the Company has not entered into any
     transaction that is not in the usual and ordinary course of business, and,
     without limiting the generality of the foregoing, the Company has not:

               (i) incurred any material obligation or liability for borrowed
          money;

               (ii) discharged or satisfied any lien or encumbrance or paid any
          obligation or liability other than liabilities paid in the ordinary
          course of business;

               (iii) mortgaged, pledged or subjected to lien, charge or other
          encumbrance any of their respective properties or assets;

               (iv) sold or purchased, agreed to sell or purchase, assigned or
          transferred any of its material, tangible assets or canceled any debts
          or claims, except for inventory sold and raw materials purchased in
          the ordinary course of business;

               (v) made any material amendment to or termination of any Contract
          or done any act or omitted to do any act which would cause the breach
          of any Contract;

               (vi) suffered any losses of personal or real property, whether
          insured or uninsured, and whether or not in the control of the Company
          in excess of $5,000 in the aggregate, or waived any rights of any
          value;

               (vii) authorized any declaration or payment of dividends by the
          Company which is not wholly owned by the Company, or paid any such

                                       17
<PAGE>

          dividends, or authorized any transfer of assets of any kind whatsoever
          by the Company to the Sellers with respect to any shares of capital
          stock;

               (viii) authorized or issued recall notices for any of its
          products or initiated any safety investigations;

               (ix) received notice of any litigation, warranty claim or
          liability claim;

               (x) made any material change in the terms, status or funding
          condition of any Employee Plan, as defined in Section 2.24 hereof;

               (xi) made, or committed to make, any changes in the compensation
          payable to any officer, director, employee or agent of the Company, or
          any bonus payment or similar arrangements made to or with any of such
          officers, directors, employees or agents;

               (xii) incurred any capital expenditure in excess of $2,500 in any
          instance or $10,000 in the aggregate except in relation to and in
          connection with the completion of the work in process in the clean
          room at the Lenexa facility;

               (xiii) made any material alteration in the manner of keeping the
          books, accounts or records of the Company or in the accounting
          practices therein reflected;

               (xiv) suffered any material adverse change in the results of
          operations, condition (financial or otherwise), assets, liabilities
          (whether absolute, accrued, contingent or otherwise), business or
          prospects of the Company; or

               (xv) made any payments or distributions to the Sellers, any
          family member of the Sellers, or any entity controlled directly or
          indirectly by any of the Sellers, including as a dividend, accrued
          bonus, payment for outstanding shares or other rights in the Company,
          or otherwise.

          (b) Neither the Company nor the Sellers have knowledge of any existing
     or threatened occurrence, event or development which, as far as can be
     reasonably foreseen, could have a material adverse effect on the business,
     properties, assets, condition (financial or otherwise) or prospects of the
     Company.

     2.26 CUSTOMERS. SCHEDULE 2.26 attached hereto sets forth a true, correct
and complete list of the names of each customer of the Company which accounted
for more than 10 percent of the revenues of the Company in the fiscal year ended
December 31, 1998 and for the nine months ended September 30, 1999. Except as
set forth on SCHEDULE 2.26, the Company has good customer relations and none of
the customers of the Company has notified the Company that it intends to
discontinue its relationship with the Company.

     2.27 SUPPLIERS. SCHEDULE 2.27 attached hereto sets forth a true, correct
and complete list of (a) the names of each of the suppliers of the Company which
accounted for a dollar volume of purchases by the Company in excess of $25,000
for the fiscal year ended December

                                       18
<PAGE>

31, 1998, and (b) the present sole source suppliers of significant goods or
services, other than utilities, for any product with respect to which practical
alternative sources of supply are not available on comparable terms and
conditions, indicating the contractual arrangements for continued supply from
each such supplier. Except as set forth on SCHEDULE 2.27, (i) the Company has
good relations with all of its suppliers, (ii) the Company is not more than 30
days in arrears in any trade accounts payable or other payments owing to any
supplier, and (iii) no sole source supplier has indicated an inability or
unwillingness to supply significant goods or services for any product for the
next twelve months.

     2.28 WARRANTY AND PRODUCT LIABILITY CLAIMS. SCHEDULE 2.28 attached hereto
contains a true, correct and complete list of all warranty and liability claims
made against the Company from January 1, 1997 through the date hereof and other
than in the ordinary course of business and not material in amount, the current
status of all such claims and the costs of all actions taken in satisfaction of
such claims. All information relative to such claims and those arising
thereafter shall be available to the Buyer from and after the date hereof. To
the best knowledge of Sellers, there exist no claims pending or threatened
against the Company for injury to person, property, its employees or any third
party suffered as a result of the sale of any product or the performance of any
service by the Company, including, but not limited to, claims arising out of the
defective or unsafe nature of its products or services. To the best knowledge of
Sellers, the Company has full and adequate insurance coverage for potential
liability claims against it. The Buyer acknowledges that the Company will have
an obligation to honor warranty and liability claims made against the Company
after the Closing.

     2.29 PREPAYMENTS AND DEPOSITS. SCHEDULE 2.29 attached hereto sets forth all
prepayments and deposits in excess of $5,000 received by the Company as of the
date hereof from customers for products to be shipped or services to be
performed after the Closing Date.

     2.30 INDEBTEDNESS TO AND FROM OFFICERS, DIRECTORS AND SELLERS. Except as
set forth on SCHEDULE 2.30 attached hereto, the Company is not indebted,
directly or indirectly, to any person who is an officer, director or Seller of
the Company or any affiliate of any such person in any amount whatsoever other
than for salaries for services rendered, accrued bonuses or reimbursable
business expenses, all of which have been reflected on the Current Financial
Statements, and no such officer, director, Seller or affiliate is indebted to
the Company except for advances made to employees of the Company in the ordinary
course of business to meet reimbursable business expenses anticipated to be
incurred by such obligor.

     2.31 BANKING FACILITIES. SCHEDULE 2.31 attached hereto sets forth a true,
correct and complete list of:

          (a) each bank, savings and loan or similar financial institution in
     which the Company has an account or safety deposit box and the numbers of
     the accounts or safety deposit boxes maintained by the Company thereat; and

          (b) the names of all persons authorized to draw on each such account
     or to have access to any such safety deposit box facility, together with a
     description of the authority (and conditions thereof, if any) of each such
     person with respect thereto.

                                       19
<PAGE>

     2.32 POWERS OF ATTORNEY AND SURETYSHIPS. Except as set forth on SCHEDULE
2.32 attached hereto, the Company does not have any general or special powers of
attorney outstanding (whether as grantor or grantee thereof) or has any
obligation or liability (whether actual, accrued, accruing, contingent or
otherwise) as guarantor, surety, consignor, endorser, co-maker, indemnitor or
otherwise in respect of the obligation of any person, corporation, partnership,
joint venture, association, organization or other entity, except as endorser or
maker of checks or letters of credit, respectively, endorsed or made in the
ordinary course of business.

     2.33 CONFLICTS OF INTEREST. Except as set forth on SCHEDULE 2.33 attached
hereto, no officer, director or any of the Sellers of the Company nor, to the
best knowledge of the Sellers, any affiliate of any such person, now has or
within the last three years had, either directly or indirectly:

          (a) an equity or debt interest in any corporation, partnership, joint
     venture, association, organization or other person or entity which
     furnishes or sells, or during such period furnished or sold, services or
     products to the Company, or purchases or during such period purchased from
     the Company any goods or services, or otherwise does or during such period
     did business with the Company; or

          (b) a beneficial interest in any contract, commitment or agreement to
     which the Company is or was a party or under which any of them is or was
     obligated or bound or to which any of their respective properties may be or
     may have been subject.

     2.34 REGULATORY APPROVALS. All consents, approvals, authorizations or other
requirements prescribed by any law, rule or regulation which must be obtained or
satisfied by the Company and which are necessary for the execution and delivery
by the Sellers and the Company of this Agreement or any documents to be executed
and delivered by the Sellers or the Company in connection herewith are set forth
on SCHEDULE 2.34 attached hereto and have been, or prior to the Closing Date
will be, obtained and satisfied.

     2.35 OFFICERS AND DIRECTORS. SCHEDULE 2.35 attached hereto sets forth the
names of all of the officers and directors of the Company.

     2.36 REAL ESTATE. SCHEDULE 2.36 attached hereto sets forth a legal
description of all real property owned by the Company or used in the conduct of
the Company's operations as of the Closing Date. All such owned properties are
free and clear of all Liens except for those Liens set forth in SCHEDULE 2.36
attached hereto. For the purposes of this paragraph, "Liens" shall mean any
lien, pledge, mortgage, security interest, lease, charge, option, right of first
refusal, easement, servitude, transfer restriction under any shareholder or
similar agreement, or any encumbrance.

     2.37 DISCLOSURE. The information concerning the Company and the Sellers set
forth in this Agreement, the Exhibits and Schedules attached hereto and any
document, statement or certificate furnished or to be furnished to the Buyer
pursuant hereto, does not and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated herein or
therein or necessary to make the statements and facts contained herein or
therein, in light of the circumstances in which they are made, not false and
misleading. The Sellers and the Company have disclosed to the Buyer all material
facts pertaining to the transactions

                                       20
<PAGE>

contemplated by this Agreement and the Exhibits hereto. Copies of all documents
heretofore or hereafter delivered or made available to the Buyer pursuant to
this Agreement were or will be complete and accurate copies of such documents.

     2.38 YEAR 2000 ISSUES. Except as set forth on SCHEDULE 2.38, all aspects of
the Company have been verified by the Company and the Sellers to be, and are,
Year 2000 Compliant. As used in this Section, "Year 2000 Compliant" shall mean
that any and all communications equipment, computer hardware (including but not
limited to mainframe computers, personal computers, servers, telephone systems
and related equipment), computer software, programming languages, code,
electronic applications and systems (including but not limited to LANs, WANs,
inter/intranet systems and client/server systems), programs, files, databases,
chips, microprocessors and any and all electronic or mechanical functionalities
in any way used in connection with, relied upon or relating to a specified
subject matter (E.G., a business, product or service) accurately and completely
process (in the manner intended, including but not limited to calculating,
comparing and sequencing) on a timely basis any and all data which are in any
way dependent upon usage of calendar dates, including but not limited to dates
on or after January 1, 2000, or time.

     2.39 OMRON. Prior to Closing, any and all obligations of the Company
pursuant to the terms and conditions of a certain License Agreement between
Omron Corporation and Seller dated September 11, 1995 shall be paid in full.

     2.40 KTEC. Prior to Closing, any and all obligations of the Company
pursuant to the terms and conditions of a certain Applied Research Matching Fund
Agreement between the Company and Kansas Technology Enterprise Corporation
("KTEC") dated September 27, 1994 shall be paid in full.

     2.41 ADVANCED DISPLAY SYSTEMS, INC. Pursuant to the terms and conditions of
a certain License Agreement between the Company and Advanced Display Systems,
Inc. dated January 1, 1999, Gross Revenues (as such term is defined in such
agreement) as of the current date are zero. There are no obligations or royalty
payments due in accordance with the terms and conditions of such agreement,
until year 2000 at which time a minimum royalty payment is due.

     3. REPRESENTATIONS OF THE BUYER

     The Buyer represents and warrants to the Sellers as follows:

     3.1 ORGANIZATION AND AUTHORITY. The Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Kansas, and
has all requisite power and authority (corporate or otherwise) to own its
properties and to carry on its business as now being conducted. The Buyer has
full corporate power to execute and deliver this Agreement and the agreements
contemplated herein, and to consummate the transactions contemplated hereby and
thereby. Certified copies of the Article of Incorporation and the Bylaws of the
Buyer, as amended to date, are available to the Sellers, are complete and
correct, and no amendments have been made thereto or have been authorized since
the date thereof.

     3.2 CAPITALIZATION OF THE BUYER. On the date hereof, the Buyer's authorized
capital stock consists of 5,000,000 shares of common stock, $.01 par value, of
which 2,230,500 shares

                                       21
<PAGE>

are issued and outstanding. All of the outstanding shares of capital stock of
the Buyer have been and on the Closing Date will be duly and validly issued and
are, or will be, fully paid and non-assessable.

     3.3 AUTHORIZATION. The execution and delivery of this Agreement by the
Buyer, and the agreements to be executed by the Buyer hereunder and to be
delivered by the Buyer at Closing, and the consummation of the transactions
contemplated hereby and thereby, have been duly authorized by all requisite
corporate action and shareholder approval (none of which actions or approvals
has been modified or rescinded and all of which actions and approval are in full
force and effect. This Agreement and all such other agreements and written
obligations entered into and undertaken in connection with the transactions
contemplated hereby constitute the valid and legally binding obligations of the
Buyer, enforceable against the Buyer in accordance with their respective terms.
The execution, delivery and performance of this Agreement and the agreements
provided for herein, and the consummation by the Buyer of the transactions
contemplated hereby and thereby, will not, with or without the giving of notice
or the passage of time or both, (a) violate the provisions of any law, rule or
regulation applicable to the Buyer; (b) violate the provisions of the Buyer's
Articles of Incorporation or Bylaws; (c) violate any judgment, decree, order or
award of any court, governmental body or arbitrator; or (d) conflict with or
result in the breach or termination of any term or provision of, or constitute a
default under, or cause any acceleration under, or cause the creation of any
lien, charge or encumbrance upon the properties or assets of the Buyer pursuant
to, any indenture, mortgage, deed of trust or other agreement or instrument to
which the Buyer is a party or by which the Buyer is or may be bound. SCHEDULE
3.3 attached hereto sets forth a true, correct and complete list of all consent
and approvals of third parties that are required in connection with the
consummation by the Company of the transactions contemplated by this Agreement.

     3.4 REGULATORY APPROVALS. All consents, approvals, authorizations and other
requirements prescribed by any law, rule or regulation which must be obtained or
satisfied by the Buyer and which are necessary for the consummation of the
transactions contemplated by this Agreement have been, or will be prior to the
Closing Date, obtained and satisfied.

     3.5 DISCLOSURE. No representation or warranty by the Buyer in this
Agreement or in any Exhibit hereto, or in any list, statement, document or
information set forth in or attached to any Schedule delivered or to be
delivered pursuant hereto, contains or will contain any untrue statement of a
material fact.

     4. ACCESS TO INFORMATION; PUBLIC ANNOUNCEMENTS

     4.1 ACCESS TO MANAGEMENT, PROPERTIES AND RECORDS.

          (a) From the date of this Agreement until the Closing Date, the
     Sellers and the Company shall afford the officers, attorneys, accountants
     and other authorized representatives of the Buyer free and full access upon
     reasonable notice and during normal business hours to all management
     personnel, offices, books and records of the Company so that the Buyer may
     have full opportunity to make such investigation as it shall desire to make
     of the management, and affairs of the Company, and the Buyer shall be
     permitted to make abstracts from, or copies of, all such books and records.
     The

                                       22
<PAGE>

     Sellers and the Company shall furnish to the Buyer such information as to
     the Company as the Buyer shall reasonably request.

          (b) If the Buyer, at its option and expense, elects within ten days
     following the date hereof, to have a report or reports prepared by an
     engineer or other professional selected by the Buyer, certifying that the
     Real Estate (i) complies with all applicable federal, state and local
     environmental and wetlands laws, rules and regulations and that there is
     not now, and never has been, manufacture, storage, or disposal of hazardous
     wastes at the Real Estate in violation of said laws, rules and regulations;
     (ii) complies with all applicable building, health and fire codes, and
     subdivision control laws, rules and regulations; and (iii) does not contain
     any friable asbestos, the Sellers and the Company shall cooperate with such
     engineer or professional to the extent necessary to prepare such reports,
     including, without limitation, providing such engineer or professional
     access to the Real Estate and necessary records, and arranging interviews
     with employees of the Company.

          (c) The Sellers and the Company shall authorize the release to the
     Buyer of all files pertaining to the business or operations of the Company
     held by any federal, state, county or local authorities, agencies or
     instrumentalities. The Sellers' and the Company's authorization shall
     specifically waive all previous claims of privilege or other restrictions,
     and in any case where a release by a present or former employee of the
     Company is necessary, the Sellers and the Company shall exercise their best
     efforts to obtain such a release.

     4.2 CONFIDENTIALITY.

          (a) The existence and terms of the transaction contemplated hereby and
     any information furnished by the Company, the Sellers or the Buyer to the
     other party or parties in connection therewith ("Confidential Information")
     shall be kept confidential by the receiving party and shall not be
     disclosed to any third party except as set forth in subsection (b) below;
     provided, however, that Confidential Information shall not include (i)
     information known to the receiving party when received or (ii) information
     that becomes generally available to the general public other than as a
     result of a disclosure by the receiving party or parties or any of its or
     their representatives in violation of this Agreement.

          (b) Confidential Information may be disclosed (i) to the respective
     directors, officers, employees, attorneys, accountants or financial
     advisors of the receiving party or parties who need to know such
     information for the purpose of consummating the transaction contemplated by
     this Agreement (it being understood that such representatives of a
     receiving party or parties shall be informed of the confidential nature of
     such information and shall be directed to treat such information
     confidentially and in accordance with this Agreement), (ii) with the
     written consent of the disclosing party or parties, and (iii) as required
     by law pursuant to the terms of a subpoena, order, civil investigative
     demand, or similar process issued by a court of competent jurisdiction or
     by any governmental or regulatory body or agency.

                                       23
<PAGE>

          (c) In the event that the transaction contemplated by this Agreement
     is not consummated, each party agrees to return all physical manifestations
     of the Confidential Information in its possession to the party or parties
     furnishing such Confidential Information (including, to the extent
     reasonably practicable, all copies, extracts, or other reproductions
     thereof) and neither party or parties shall at any time thereafter,
     directly or indirectly, disclose to third parties or use any Confidential
     Information of the other party or parties.

     4.3 PUBLIC ANNOUNCEMENTS. The parties agree that, prior to the Closing
Date, any and all general public pronouncements, other general public
communications, and internal communications to the Company's employees, in each
case concerning this Agreement and the purchase and sale of the Company Shares
by the Buyer, and the timing, manner and content of such disclosures, shall be
subject to the mutual agreement of the Company and the Buyer; provided, however,
that the Buyer, without prior consultation with the Sellers or the Company,
shall be entitled to file any and all public documents and make any and all
public disclosures as may be required of it under applicable securities laws.

     5. PRE-CLOSING COVENANTS OF THE PARTIES

     5.1 CONDUCT OF BUSINESS. From and after the date hereof and until the
Closing Date, except as otherwise contemplated by this Agreement, until the
Closing, the Sellers shall cause the Company to operate and carry on its
business only in the ordinary course consistent with past practices, and,
without limiting the generality of the foregoing, pending the Closing:

          (a) PRESERVATION OF BUSINESS. The Sellers shall cause the Company to
     use its best efforts to preserve the properties, assets and goodwill of its
     business.

     5.2 ABSENCE OF MATERIAL CHANGES. Without limiting the generality of the
covenants in Section 5.1, and without the prior written consent of the Buyer,
the Company shall not:

          (a) take any action to amend its charter documents or bylaws;

          (b) issue any stock, bonds or other corporate securities or grant any
     option or issue any warrant to purchase or subscribe for any of such
     securities or issue any securities convertible into such securities;

          (c) incur any obligation or liability (absolute or contingent), except
     current liabilities incurred and obligations under contracts entered into
     in the ordinary course of business;

          (d) declare or make any payment or distribution to the Sellers with
     respect to its stock or purchase or redeem any shares of its capital stock;

          (e) mortgage, pledge, or subject to any lien, charge or any other
     encumbrance any of their respective assets or properties;

          (f) sell, assign, or transfer any of its assets, except for (i)
     inventory sold in the ordinary course of business, at a normal profit
     margin, and for not less than replacement

                                       24
<PAGE>

     cost and (ii) the LCD manufacturing facility located at 14812 W. 117th
     Street, Olathe, Kansas 66062;

          (g) cancel any debts or claims, except in the ordinary course of
     business;

          (h) merge or consolidate with or into any corporation or other entity;

          (i) make, accrue or become liable for any bonus, profit sharing or
     incentive payment, except for accruals under existing plans, if any, or
     increase the rate of compensation payable or to become payable by it to any
     of its officers, directors or employees, other than increases in the
     ordinary course of business consistent with past practice;

          (j) make any election or give any consent under the Code or the tax
     statutes of any state or other jurisdiction or make any termination,
     revocation or cancellation of any such election or any consent or
     compromise or settle any claim for past or present tax due;

          (k) waive any rights of material value;

          (l) modify, amend, alter or terminate any of its executory contracts
     of a material value or which are material in amount;

          (m) take or permit any act or omission constituting a breach or
     default under any contract, indenture or agreement by which it or its
     properties are bound;

          (n) fail to (i) preserve the possession and control of its assets and
     business, (ii) keep in faithful service its present officers and key
     employees, (iii) preserve the goodwill of its consumers, suppliers, agents,
     brokers and others having business relations with it, and (iv) keep and
     preserve its business existing on the date hereof until the Closing Date;

          (o) fail to operate its business and maintain its books, accounts and
     records in the customary manner and in the ordinary and regular course of
     business and maintain in good repair its business premises, fixtures,
     machinery, furniture and equipment;

          (p) enter into any lease, contract, agreement or understanding;

          (q) incur any capital expenditure in excess of $5,000 in any instance
     or $20,000 in the aggregate except for those expenses related to and in
     connection with the completion of the work in process in the clean room at
     the Lenexa facility;

          (r) engage any new management level employee;

          (s) materially alter the terms, status or funding condition of any
     Employee Plan;

          (t) commit or agree to do any of the foregoing in the future; or

                                       25
<PAGE>

          (u) except as set forth on SCHEDULE 5.2 attached hereto, make any
     payments or distributions to the Sellers, any family member of any of the
     Sellers, or any entity controlled directly or indirectly by any of the
     Sellers.

     5.3 COMMUNICATIONS WITH CUSTOMERS, SUPPLIERS AND EMPLOYEES.

          (a) Unless instructed otherwise by the Buyer in writing, the Company
     will continue to accept customer orders and enter into agreements to
     provide services in the ordinary course of business and consistent with
     past practice for all products and services offered by the Company but
     expected to be shipped or rendered, as the case may be, after the Closing
     Date.

          (b) The Company and the Buyer will cooperate in communications with
     suppliers, customers and employees concerning the transfer of the Company
     Shares to the Buyer on the Closing Date.

     5.4 COMPLIANCE WITH LAWS. The Company will comply with all laws and
regulations applicable to it or to the conduct of its business and will perform
and comply with all contracts, commitments and obligations by which they are
bound.

     5.5 CONTINUED TRUTH OF REPRESENTATIONS AND WARRANTIES. Neither the Sellers
nor the Company will take any actions that may result in any of the
representations or warranties set forth in Sections 2 hereof being untrue.

      5.6 CONTINUING OBLIGATION TO INFORM. From time to time prior to the
Closing, the Sellers will deliver or cause to be delivered to the Buyer
supplemental information concerning events subsequent to the date hereof which
would render any statement, representation or warranty in this Agreement or any
information contained in any Schedule attached hereto inaccurate or incomplete
in any material respect at any time after the date hereof until the Closing
Date; PROVIDED, that none of such supplemental information shall constitute an
amendment of any statement, representation or warranty in this Agreement or any
Schedule, Exhibit or document furnished pursuant hereto.

     5.7 EXCLUSIVE DEALING. Neither the Sellers nor the Company will, directly
or indirectly, through any officer, director, agent or otherwise, (a) solicit,
initiate or encourage submission of proposals or offers from any person relating
to an acquisition or purchase of all or a material portion of the assets of or
an equity interest in the Company or any merger, consolidation or business
combination with the Company, or (b) participate in any discussions or
negotiations regarding, or furnish to any other person, any non-public
information with respect to or otherwise cooperate in any way with, or assist or
participate in, facilitate or encourage, any effort or attempt by any other
person to do or seek any of the foregoing. The Sellers and the Company agree to
promptly notify the Buyer of any such proposal or offer, or any inquiry or
contact with respect thereto received by the Company or the Sellers.

     5.8 REPORTS, TAXES. The Company will duly and timely file all reports or
returns required to be filed with federal, state, local and foreign authorities
and will promptly pay all federal, state, local and foreign taxes, assessments
and governmental charges levied or assessed

                                       26
<PAGE>

upon them or any of its properties (unless contesting such in good faith and
adequate provision has been made therefor).

     5.9 NO SECURITIES TRADING. Sellers acknowledges that Buyer is a publicly
held company and that either (i) the improper dissemination of information
concerning this Agreement and the transactions contemplated herein, or (ii) the
trading in ASII Common Stock by any party to the Agreement or by any party
receiving information concerning the Agreement or the transactions contemplated
herein from any party to this Agreement prior to the proper public release or
announcement of the Agreement could result in a violation of the Securities
Exchange Commission's insider trading regulations. Sellers agree to refrain from
disseminating such information or engaging in such trading without the prior
written consent of Buyer.

     5.10 ACKNOWLEDGMENT OF RELATED DOCUMENTS.

          (a) The Sellers acknowledge and agree, in their individual capacity,
     that they shall, simultaneously with the execution of this Agreement, cause
     KHC of Lenexa, L.L.C. (a Kansas limited liability company wholly owned by
     the Sellers) ("KHC"), to execute a certain Asset Purchase Agreement by and
     between Company and KHC to be dated as of the Closing Date (the "Asset
     Purchase Agreement");

          (b) The parties acknowledge that the transactions contemplated by the
     Asset Purchase Agreement are vital to this Agreement and to the continued
     performance of the business activities and operations of Buyer; and

          (c) ASII, pursuant to the transaction contemplated herein, shall
     acquire 100% of the outstanding and issued shares of stock of the Company
     and ASII shall cause the Company to promptly execute the Asset Purchase
     Agreement immediately following the execution of this Agreement. The
     parties anticipate closing the Asset Purchase Agreement on the Closing
     Date.

     6. BEST EFFORTS TO OBTAIN SATISFACTION OF CONDITIONS

     6.1 BEST EFFORTS. The Sellers, the Company and the Buyer covenant and agree
to use their best efforts to obtain the satisfaction of the conditions to
Closing specified in this Agreement.

     6.2 FURTHER ASSURANCES. The Buyer and the Sellers shall each cooperate with
each other, and execute and deliver, or cause to be executed and delivered, all
such other instruments, including instruments of conveyance, assignment and
transfer, and take all such other actions as another party may reasonably be
requested to take by the other party from time to time, consistent with the
terms of this Agreement in order to effectuate the provisions and purposes of
this Agreement.

     7. CONDITIONS TO OBLIGATIONS OF THE BUYER

     The obligations of the Buyer under this Agreement are subject to the
fulfillment, at the Closing Date, of the following conditions precedent, each of
which may be waived in writing in the sole discretion of the Buyer:

                                       27
<PAGE>

     7.1 CONTINUED TRUTH OF REPRESENTATIONS AND WARRANTIES OF THE SELLERS AND
THE COMPANY; COMPLIANCE WITH COVENANTS AND OBLIGATIONS. The representations and
warranties of the Sellers shall be true on and as of the Closing Date as though
such representations and warranties were made on and as of such date (even
though they purport to have been given on a date prior to the Closing Date),
except for any changes permitted by the terms hereof or consented to in writing
by the Buyer. The Sellers and the Company shall have performed and complied with
all terms, conditions, covenants, obligations, agreements and restrictions
required by this Agreement to be performed or complied with by each of them
prior to or at the Closing Date.

     7.2 PERFORMANCE BY THE SELLERS AND THE COMPANY. The Sellers shall have
tendered to the Buyer certificates transferring all of the Company Shares duly
endorsed or accompanied by duly executed stock powers (in blank) and with any
required transfer stamps affixed.

     7.3 GOVERNMENTAL APPROVALS. All governmental agencies, departments,
bureaus, commissions and similar bodies, the consent, authorization or approval
of which is necessary under any applicable law, rule, order or regulation for
the consummation by the Sellers or the Company of the transactions contemplated
by this Agreement and the operation of the business of the Company by the Buyer
shall have consented to, authorized, permitted or approved such transactions.

     7.4 CONSENT OF LENDERS, LESSORS AND OTHER THIRD PARTIES. The Sellers and
the Company shall have received all requisite consents and approvals of all
third parties whose consent or approval is required in order for the Sellers and
the Company to consummate the transactions contemplated by this Agreement,
including without limitation, those set forth on SCHEDULE 2.8 attached hereto.

     7.5 BOARD OF DIRECTORS AND SHAREHOLDER APPROVAL. The Board of Directors and
the shareholders (if necessary) of the Buyer shall have duly authorized the
transactions contemplated by this Agreement.

     7.6 ADVERSE PROCEEDINGS. No action or proceeding by or before any court,
administrative agency or other governmental body shall have been instituted or
threatened by any governmental body or person whatsoever which shall seek to
restrain, prohibit or invalidate the transactions contemplated by this Agreement
or which might affect the right of the Buyer to own the Company Shares or to own
or operate the business of the Company after the Closing.

     7.7 OPINION OF COUNSEL. The Buyer shall have received an opinion of counsel
to the Sellers and the Company dated as of the Closing Date, in substantially
the form attached hereto as Exhibit A, and as to such other matters as may be
reasonably requested by the Buyer or its counsel.

     7.8 UPDATE. The Company and the Sellers shall have provided the Buyer with
a true, correct and complete list and amount, as of the last business day
immediately preceding the Closing Date, of:

          (a) the Personal Property;

                                       28
<PAGE>

          (b) the Real Property Leases;

          (c) the Inventory;

          (d) the Accounts Receivable, including an aging thereof;

          (e) the Contracts;

          (f) trade accounts payable and accrued liabilities;

          (g) unfilled customer orders;

          (h) all shipments made during the period from the date of this
     Agreement to the Closing Date; and

          (i) long-term and short-term debt.

None of the information with respect to the items referred to in clauses (a)
through (h) above shall be materially adverse from the information supplied by
the Sellers as of the date hereof and, with respect to clause (i) above, none of
such information shall reflect greater debt than is set forth in the Current
Balance Sheet. For purposes of this Section 7.8, the term "materially adverse"
shall mean any change, other than those specifically contemplated by or
permitted pursuant to the terms of this Agreement, having an economic value in
excess of $2,500.

     7.9 DUE DILIGENCE. The Buyer shall have been satisfied, in its sole and
reasonable opinion, with the results of its investigation of the Company and the
Sellers. Buyer's due diligence shall in no way limit Sellers' representations,
warranties and agreements contained in this Agreement.

     7.10 NONCOMPETITION AGREEMENT. Mr. Cook shall have executed and delivered
to Buyer a noncompetition agreement, substantially in the form attached hereto
as Exhibit B (the "Noncompetition Agreement").

     7.11 EMPLOYMENT AGREEMENTS. Mr. Hammond and Mr. Klusman shall have executed
and delivered to Buyer employment agreements, substantially in the form attached
hereto as Exhibit C (the "Employment Agreements").

     7.12 EMPLOYMENT AGREEMENT OF LARRY SHELTON. Mr. Shelton shall have executed
and delivered to Buyer an employment agreement, as agreed to by Mr. Shelton and
Buyer, and on no less favorable economic terms to Mr. Shelton than he currently
enjoys.

     7.13 FINANCING. Buyer shall have obtained financing on satisfactory terms
and conditions to cover the obligations under Section 1.2.

     7.14 REGISTRATION. At Closing, the Sellers shall have executed and
delivered a Registration Rights Agreement, substantially in the form attached
hereto as Exhibit D (the "Registration Agreement").

                                       29
<PAGE>

     7.15 COMPANY AND SELLERS' APPROVAL. The Company expressly waives its rights
to purchase the stock of the Sellers and all other rights set forth in Section
26 of the Company's bylaws. Each of the Sellers hereby expressly consents to the
sale of the Company Shares by both of the other Sellers.

     7.16 CLOSING DELIVERIES. The Buyer shall have received at or prior to the
Closing such documents, instruments or certificates as the Buyer may reasonably
request including, without limitation:

          (a) the stock certificates representing the Company Shares duly
     endorsed in accordance with Section 1.1 of this Agreement;

          (b) such certificates of the Company's officers and of the Sellers and
     such other documents evidencing satisfaction of the conditions specified in
     this Section 7 as the Buyer shall reasonably request;

          (c) certificates of the Secretary of State of the State of Kansas as
     to the legal existence and good standing (including tax) of the Company in
     Kansas;

          (d) a cross receipt executed by the Buyer and the Sellers;

          (e) such documents as are necessary to transfer to the Buyer control
     over all banking accounts and safety deposit boxes of the Company;

          (f) all blank stock certificates and the original stock transfer
     records, the minute book and the seal of the Company, all other books,
     records, surveys, data, documents, files and other information including
     books of account related to the operation of the Company's business, or its
     properties or assets and hard copies of any books or records or other
     documents or information relating to the operation of the Company's
     business or its properties or assets stored on any electronic media,
     including computers;

          (g) valid and binding resignations of all officers and directors of
     the Company as of the Closing Date;

          (h) duly executed Noncompetition Agreement;

          (i) duly executed Employment Agreements from Mr. Hammond, Mr. Klusman
     and Mr. Shelton; and

          (j) duly executed Registration Agreement.

     8. CONDITIONS TO OBLIGATIONS OF THE SELLERS

     The obligations of the Sellers under this Agreement are subject to the
fulfillment, at the Closing Date, of the following conditions precedent, each of
which may be waived in writing in the sole discretion of the Sellers.

                                       30
<PAGE>

     8.1 CONTINUED TRUTH OF REPRESENTATIONS AND WARRANTIES OF THE BUYER;
COMPLIANCE WITH COVENANTS AND OBLIGATIONS. The representations and warranties of
the Buyer in this Agreement shall be true on and as of the Closing Date as
though such representations and warranties were made on and as of such date,
except for any changes consented to in writing by the Sellers. The Buyer shall
have performed and complied with all terms, conditions, covenants, obligations,
agreements and restrictions required by this Agreement to be performed or
complied with by it prior to or at the Closing Date.

     8.2 CORPORATE PROCEEDINGS. All corporate and other proceedings required to
be taken on the part of the Buyer to authorize or carry out this Agreement shall
have been taken.

     8.3 GOVERNMENTAL APPROVALS. All governmental agencies, departments,
bureaus, commissions and similar bodies, the consent, authorization or approval
of which is necessary under any applicable law, rule, order or regulation for
the consummation by the Buyer of the transactions contemplated by this Agreement
shall have consented to, authorized, permitted or approved such transactions.

     8.4 ADVERSE PROCEEDINGS. No action or proceeding by or before any court or
other governmental body shall have been instituted or threatened by any
governmental body or person whatsoever which shall seek to restrain, prohibit or
invalidate the transactions contemplated by this Agreement or which might affect
the right of the Sellers to transfer the Company Shares.

     8.5 CLOSING DELIVERIES. The Sellers shall have received at or prior to the
Closing such documents, instruments or certificates as the Sellers may
reasonably request including, without limitation:

          (a) such certificates of the Buyer's officers and such other documents
     evidencing satisfaction of the conditions specified in this Section 8 as
     the Sellers shall reasonably request;

          (b) payment of the Purchase Price, including a duly executed stock
     certificate or certificates for the number of shares of ASII Common Stock
     specified in Section 1.2 hereof;

          (c) duly executed Noncompetition Agreements;

          (d) duly executed Employment Agreements;

          (e) duly executed Registration Agreement;

          (f) a cross receipt executed by the Buyer and the Sellers; and

          (g) a release from all lenders to the Company releasing the Sellers
     from any and all personal liability they may have related to loans made to
     the Company.

     9. INDEMNIFICATION

                                       31
<PAGE>

     9.1 BY THE SELLERS AND THE COMPANY. If the Closing occurs, the Sellers and
the Company hereby indemnify and hold harmless the Buyer, from and against all
claims, damages, losses, liabilities, costs and expenses (including, without
limitation, settlement costs and any legal, accounting or other expenses for
investigating or defending any actions or threatened actions) (collectively, the
"Losses") in connection with each and all of the following:

          (a) any material misrepresentation or breach of any representation or
     warranty made by the Sellers and the Company in this Agreement;

          (b) any material breach of any covenant, agreement or obligation of
     the Sellers and the Company contained in this Agreement or any other
     agreement, instrument or document contemplated by this Agreement;

          (c) any misrepresentation contained in any statement, certificate or
     schedule furnished by the Sellers and the Company pursuant to this
     Agreement or in connection with the transactions contemplated by this
     Agreement; and

          (d) any claim relating to the Company's business or operation prior to
     the Closing Date, other than any warranty or other claim relating to a
     product manufactured or sold by the Company prior to the Closing Date.

     9.2 BY THE BUYER. If the Closing occurs, the Buyer hereby indemnifies and
holds harmless the Sellers and the Company, from and against all claims,
damages, losses, liabilities, costs and expenses (including, without limitation,
settlement costs and any legal, accounting or other expenses for investigating
or defending any actions or threatened actions) (collectively, the "Losses") in
connection with each and all of the following:

          (a) any misrepresentation or breach of any representation or warranty
     made by the Buyer in this Agreement;

          (b) any breach of any covenant, agreement or obligation of the Sellers
     contained in this Agreement or any other agreement, instrument or document
     contemplated by this Agreement;

          (c) any misrepresentation contained in any statement, certificate or
     schedule furnished by the Buyer pursuant to this Agreement or in connection
     with the transactions contemplated by this Agreement; and

          (d) any claim relating to (i) products manufactured or sold by the
     Company after the Closing Date or (ii) the Company's business or operation
     after the Closing Date.

     9.3 CLAIMS FOR INDEMNIFICATION. Whenever any claim shall arise for
indemnification under this Section 9, the Buyer, the Sellers or the Company, as
the case may be, seeking indemnification (the "Indemnified Party"), shall
promptly notify the other party (the "Indemnifying Party") the claim and, when
known, the facts constituting the basis for such claim. In the event of any such
claim for indemnification hereunder resulting from or in connection with any
claim or legal proceedings by a third party, the notice shall specify, if known,
the amount or an estimate of the amount of the liability arising therefrom. The

                                       32
<PAGE>

Indemnified Party shall not settle or compromise any claim by a third party for
which it is entitled to indemnification hereunder without the prior written
consent, which shall not be unreasonably withheld or delayed, of the
Indemnifying Party; provided, however, that if suit shall have been instituted
against the Indemnified Party and the Indemnifying Party shall not have taken
control of such suit after notification thereof as provided in Section 9.3 of
this Agreement, the Indemnified Party shall have the right to settle or
compromise such claim upon giving notice to the Indemnification Party as
provided in Section 9.3.

     9.4 DEFENSE BY THE INDEMNIFYING PARTY. In connection with any claim which
may give rise to indemnity hereunder resulting from or arising out of any claim
or legal proceeding by a person other than the Indemnifying Party, at the sole
cost and expense of the Indemnifying Party, may, upon written notice to the
Indemnified Party, assume the defense of any such claim or legal proceeding if
the Indemnifying Party acknowledges to the Indemnified Party in writing the
obligation of the Indemnifying Party to indemnify the Indemnified Party with
respect to all elements of such claim. If the Indemnifying Party assume the
defense of any such claim or legal proceeding, the Indemnifying Party shall
select counsel reasonably acceptable to the Indemnified Party to conduct the
defense of such claims or legal proceedings and at the sole cost and expense of
the Indemnifying Party shall take all steps necessary in the defense or
settlement thereof. The Indemnified Party shall thereafter be entitled to
participate in and assume control of the defense of any such action if the
Indemnified Party has a reasonable basis for concluding that its interests would
be better served. The Indemnifying Party shall not consent to a settlement of,
or the entry of any judgment arising from, any such claim or legal proceeding,
without the prior written consent of the Indemnified Party (which consent shall
not be unreasonably withheld or delayed). The Indemnified Party shall be
entitled to participate in (but not control) the defense of any such action,
with its own counsel and at its own expense. If the Indemnifying Party do not
assume the defense of any such claim or litigation resulting therefrom within 30
days after the date such claim is made: (a) the Indemnified Party may defend
against such claim or litigation in such manner as it may deem appropriate,
including, but not limited to, settling such claim or litigation, after giving
notice of the same to the Indemnifying Party, on such terms as the Indemnified
Party may deem appropriate, and (b) the Indemnifying Party shall be entitled to
participate in (but not control) the defense of such action, with its counsel
and at its own expense. If the Indemnifying Party or the Indemnifying Party
thereafter seeks to question the manner in which the Indemnified Party defended
such third party claim or the amount or nature of any such settlement, the
Indemnifying Party shall have the burden to prove by a preponderance of the
evidence that the Indemnified Party did not defend or settle such third party
claim in a reasonably prudent manner.

     9.5 PAYMENT OF INDEMNIFICATION OBLIGATION. All indemnification by the
Buyer, Sellers or the Company hereunder, as the case may be (to the extent not
satisfied in the manner specified in the preceding sentence), and any
indemnification by the Sellers, Buyer or the Company, as the case may be, if the
Closing does not occur, shall be effected by payment of cash or delivery of a
cashier's or certified check in the amount of the indemnification liability.
Buyer shall, in addition to other remedies then available to it, have the right
to offset the amount of such indemnification claim against payments due from
Buyer to Seller. Buyer shall only be entitled to receive payment for Losses for
which it is otherwise entitled to be compensated under this Section 9 to the
extent such Losses in the aggregate exceed $25,000 (the "Basket Amount"). If
such Losses in the aggregate exceed the Basket Amount, Buyer shall be entitled
to payment of all losses pursuant to this Section 9 that are in excess of the
Basket Amount.

                                       33
<PAGE>

     9.6 SURVIVAL OF REPRESENTATIONS. All representations and warranties made by
the Sellers and the Company in this Agreement, or in any instrument or document
furnished in connection with this Agreement or the transactions contemplated
hereby, excluding those listed below, shall survive the Closing and any
investigation at any time made by or on behalf of the Indemnified Party for a
period of eighteen months. The representations and warranties provided in
Section 2.18 shall survive the Closing and any investigation at any time made by
or on behalf of the Indemnified Party for a period of three (3) years. The
representations and warranties provided in Section 2.22 shall survive the
Closing and any investigation at any time made by or on behalf of the
Indemnified Party for a period of five (5) years.

     10. TERMINATION OF AGREEMENT; OPTION TO PROCEED; DAMAGES

     10.1 TERMINATION BY LAPSE OF TIME. This Agreement shall terminate at 5:00
p.m., local time, on January 31, 2000, if the transactions contemplated hereby
have not been consummated, unless such date is extended by the written consent
of the Company, the Buyer and the Sellers.

     10.2 TERMINATION BY AGREEMENT OF THE PARTIES. This Agreement may be
terminated by the mutual written agreement of the parties hereto. In the event
of such termination by agreement, the Buyer shall have no further obligation or
liability to the Sellers under this Agreement, and the Sellers shall have no
further obligation or liability to the Buyer under this Agreement.

     10.3 TERMINATION BY REASON OF BREACH. This Agreement may be terminated by
the Sellers if at any time prior to the Closing there shall occur a material
breach of any of the representations, warranties or covenants of the Buyer or
the failure by the Buyer to perform any condition or obligation hereunder, and
may be terminated by the Buyer, if at any time prior to the Closing there shall
occur a material breach of any of the representations, warranties or covenants
of the Sellers, the Company or the failure of the Sellers, or the Company to
perform any condition or obligation hereunder.

     10.4 AVAILABILITY OF REMEDIES AT LAW. In the event this Agreement is
terminated by the Buyer or the Sellers, pursuant to the provisions of this
Section 10, the parties hereto shall have available to them all remedies
afforded to them by applicable law.

     11. NOTICES

     Any notices or other communications required or permitted hereunder shall
be sufficiently given if delivered personally or sent by federal express,
registered or certified mail, facsimile, postage prepaid, addressed as follows
or to such other address of which the parties may have given notice:

                                       34
<PAGE>

            To the Buyer:

                  Airport Systems International, Inc.
                  11300 W. 89th Street
                  Overland Park, Kansas  66214
                  Facsimile No.:  (913) 492-0870
                  Attention:  Thomas C. Cargin
                              Vice President and Chief Financial Officer

            With a copy to:

                  Blackwell Sanders Peper Martin LLP
                  Two Pershing Square, Suite 1000
                  2300 Main Street
                  P.O. Box 419777
                  Kansas City, Missouri  64141-6777
                  Facsimile No.:  (816) 983-8080
                  Attention:  Steven F. Carman

            To the Sellers:

                  Mr. Chris Hammond
                  15301 W. 109th Street
                  Lenexa, Kansas  66219
                  Facsimile No.: (913) 982-5766

            With a copy to:

                  Mr. James R. Hubbard
                  Norton, Hubbard, Ruzicka & Kramer L.C.
                  130 North Cherry
                  Olathe, Kansas  66051
                  Facsimile No.: (913) 782-2012

Unless otherwise specified herein, such notices or other communications shall be
deemed (a) received on the date delivered, if delivered personally, (b)
effective upon confirmation of transmission, if by facsimile, or (c) received
three business days after being sent, if sent by registered or certified mail.

                                       35
<PAGE>

     12. SUCCESSORS AND ASSIGNS

     This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns, except that the
Buyer, on the one hand, and the Sellers and the Company on the other hand, may
not assign their respective obligations hereunder without the prior written
consent of the other party; provided, however, that Buyer may assign this
Agreement and its rights and interests hereto to a financial lending institution
without the prior consent of the Sellers or the Company. Any assignment in
contravention of this provision shall be void. No assignment shall release the
Buyer, the Sellers, or the Company from any obligation or liability under this
Agreement.

     13. ENTIRE AGREEMENT; AMENDMENTS; ATTACHMENTS

          (a) This Agreement, all Schedules and Exhibits hereto, and all
     agreements and instruments to be delivered by the parties pursuant hereto
     represent the entire understanding and agreement between the parties hereto
     with respect to the subject matter hereof and supersede all prior oral and
     written and all contemporaneous oral negotiations, commitments and
     understandings between such parties. The Buyer, by the consent of its Board
     of Directors or officers authorized by such Board, and the Sellers may
     amend or modify this Agreement, in such manner as may be agreed upon, by a
     written instrument executed by the Buyer and such majority of the Sellers.

          (b) If the provisions of any Schedule or Exhibit to this Agreement are
     inconsistent with the provisions of this Agreement, the provisions of the
     Agreement shall prevail. The Exhibits and Schedules attached hereto or to
     be attached hereafter are hereby incorporated as integral parts of this
     Agreement.

     14. SEVERABILITY

     Any provision of this Agreement which is invalid, illegal or unenforceable
in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity, illegality or unenforceability, without affecting in any way
the remaining provisions hereof in such jurisdiction or rendering that or any
other provision of this Agreement invalid, illegal or unenforceable in any other
jurisdiction.

     15. EXPENSES

     Except as otherwise expressly provided herein, the Buyer, on the one hand,
and the Sellers on the other hand, will pay all fees and expenses (including,
without limitation, legal and accounting fees and expenses) incurred by them in
connection with the transactions contemplated hereby. In no event will any of
the fees or expenses incurred in connection with this transaction by the Sellers
including, without limitation, the fees and expenses of counsel to the Sellers,
be billed to or paid by the Company. The Sellers shall be responsible for
payment of all sales or transfer taxes arising out of the conveyance of the
Company Shares owned by the Sellers.

     16. HEALTH INSURANCE

                                       36
<PAGE>

      For a period of six years following the Closing Date, Buyer shall use
commercially reasonable efforts to make available to William D. Cook, at Mr.
Cook's expense, the family group medical insurance coverage generally available
from time to time to the employees of the Company.

     17. GOVERNING LAW

     This Agreement shall be governed by and construed in accordance with the
laws of the State of Kansas.

     18. SECTION HEADINGS

     The section headings are for the convenience of the parties and in no way
alter, modify, amend, limit, or restrict the contractual obligations of the
parties.

     19. COUNTERPARTS

     This Agreement may be executed in one or more counterparts, each of which
shall be deemed to be an original, but all of which shall be one and the same
document.

     IN WITNESS WHEREOF, this Agreement has been duly executed by the parties
hereto as of and on the date first above written.

                              AIRPORT SYSTEMS INTERNATIONAL, INC.

                              By:_________________________________
                              Name:_______________________________
                              Title:______________________________

                              DCI, INC.

                              By:_________________________________
                              Name:_______________________________
                              Title:______________________________

                                       37
<PAGE>

                              SELLERS

                              ________________________________
                              Chris I. Hammond

                              ________________________________
                              William D. Cook

                              ________________________________
                              Larry C. Klusman

                                       38
<PAGE>

                            STOCK PURCHASE AGREEMENT

                                  BY AND AMONG

                                   DCI, INC.,

                  CHRIS HAMMOND, WILLIAM COOK, LARRY KLUSMAN

                                       AND

                       AIRPORT SYSTEMS INTERNATIONAL, INC.

<PAGE>

                                TABLE OF CONTENTS

1. PURCHASE AND SALE OF THE COMPANY SHARES AND INTANGIBLE ASSETS.............1

   1.1 PURCHASE OF THE COMPANY SHARES AND INTANGIBLE ASSETS FROM THE
   SELLERS...................................................................1

   1.2 PURCHASE PRICE FOR THE COMPANY SHARES AND INTANGIBLE ASSETS...........2

   1.3 CLOSING...............................................................2

   1.4 ALLOCATION OF PURCHASE PRICE..........................................2

   1.5 DELIVERY OF SHARES....................................................2

2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY AND EACH OF THE SELLERS.....3

   2.1 TITLE TO SHARES.......................................................3

   2.2 AUTHORITY.............................................................3

   2.3 EXECUTION AND DELIVERY................................................3

   2.4 BROKERS...............................................................3

   2.5 CAPITALIZATION OF THE COMPANY.........................................3

   2.6 ORGANIZATION AND STATUS OF THE COMPANY................................3

   2.7 NO SUBSIDIARIES OR AFFILIATED ENTITIES................................4

   2.8 AUTHORIZATION.........................................................4

   2.9 FINANCIAL STATEMENTS..................................................4

   2.10 ABSENCE OF UNDISCLOSED LIABILITIES...................................5

   2.11 LITIGATION...........................................................5

   2.12 INSURANCE............................................................5

   2.13 PERSONAL PROPERTY....................................................6

   2.14 INTANGIBLE PROPERTY..................................................7

   2.15 LEASES...............................................................8

   2.16 INVENTORY............................................................8

   2.17 ACCOUNTS RECEIVABLE..................................................8

   2.18 TAX MATTERS..........................................................9

   2.19 BOOKS AND RECORDS...................................................10

   2.20 CONTRACTS AND COMMITMENTS...........................................10

   2.21 COMPLIANCE WITH AGREEMENTS AND LAWS.................................12

   2.22 ENVIRONMENTAL.......................................................12

<PAGE>

   2.23 EMPLOYEE RELATIONS..................................................13

   2.24 EMPLOYEE BENEFIT PLANS..............................................14

   2.25 ABSENCE OF CERTAIN CHANGES OR EVENTS................................17

   2.26 CUSTOMERS...........................................................19

   2.27 SUPPLIERS...........................................................19

   2.28 WARRANTY AND PRODUCT LIABILITY CLAIMS...............................19

   2.29 PREPAYMENTS AND DEPOSITS............................................19

   2.30 INDEBTEDNESS TO AND FROM OFFICERS, DIRECTORS AND SELLERS............20

   2.31 BANKING FACILITIES..................................................20

   2.32 POWERS OF ATTORNEY AND SURETYSHIPS..................................20

   2.33 CONFLICTS OF INTEREST...............................................20

   2.34 REGULATORY APPROVALS................................................20

   2.35 OFFICERS AND DIRECTORS..............................................21

   2.36 REAL ESTATE.........................................................21

   2.37 DISCLOSURE..........................................................21

   2.38 YEAR 2000 ISSUES....................................................21

   2.39 OMRON...............................................................21

   2.40 KTEC................................................................21

   2.41 ADVANCED DISPLAY SYSTEMS, INC.......................................22

3. REPRESENTATIONS OF THE BUYER.............................................22

   3.1 ORGANIZATION AND AUTHORITY...........................................22

   3.2 CAPITALIZATION OF THE BUYER..........................................22

   3.3 AUTHORIZATION........................................................22

   3.4 REGULATORY APPROVALS.................................................23

   3.5 DISCLOSURE...........................................................23

4. ACCESS TO INFORMATION; PUBLIC ANNOUNCEMENTS..............................23

   4.1 ACCESS TO MANAGEMENT, PROPERTIES AND RECORDS.........................23

   4.2 CONFIDENTIALITY......................................................24

   4.3 PUBLIC ANNOUNCEMENTS.................................................24

5. PRE-CLOSING COVENANTS OF THE PARTIES AND THE COMPANY.....................25

   5.1 CONDUCT OF BUSINESS..................................................25

<PAGE>

   5.2 ABSENCE OF MATERIAL CHANGES..........................................25

   5.3 COMMUNICATIONS WITH CUSTOMERS, SUPPLIERS AND EMPLOYEES...............26

   5.4 COMPLIANCE WITH LAWS.................................................27

   5.5 CONTINUED TRUTH OF REPRESENTATIONS AND WARRANTIES....................27

   5.6 CONTINUING OBLIGATION TO INFORM......................................27

   5.7 EXCLUSIVE DEALING....................................................27

   5.8 REPORTS, TAXES.......................................................27

   5.9 NO SECURITIES TRADING................................................27

   5.10 ACKNOWLEDGMENT OF RELATED DOCUMENTS.................................28

6. BEST EFFORTS TO OBTAIN SATISFACTION OF CONDITIONS........................28

   6.1 BEST EFFORTS.........................................................28

   6.2 FURTHER ASSURANCES...................................................28

7. CONDITIONS TO OBLIGATIONS OF THE BUYER...................................28

   7.1 CONTINUED TRUTH OF REPRESENTATIONS AND WARRANTIES OF THE SELLERS
   AND THE COMPANY; COMPLIANCE WITH COVENANTS AND OBLIGATIONS...............28

   7.2 PERFORMANCE BY THE SELLERS AND THE COMPANY...........................29

   7.3 GOVERNMENTAL APPROVALS...............................................29

   7.4 CONSENT OF LENDERS, LESSORS AND OTHER THIRD PARTIES..................29

   7.5 BOARD OF DIRECTORS AND SHAREHOLDER APPROVAL..........................29

   7.6 ADVERSE PROCEEDINGS..................................................29

   7.7 OPINION OF COUNSEL...................................................29

   7.8 UPDATE...............................................................29

   7.9 DUE DILIGENCE........................................................30

   7.10 NONCOMPETITION AGREEMENTS...........................................30

   7.11 EMPLOYMENT AGREEMENTS...............................................30

   7.12 EMPLOYMENT AGREEMENT OF LARRY SHELTON...............................30

   7.13 FINANCING...........................................................30

7.14 Registration...........................................................30

   7.15 COMPANY AND SELLERS' APPROVAL.......................................31

   7.16 CLOSING DELIVERIES..................................................31

8. CONDITIONS TO OBLIGATIONS OF THE SELLERS.................................31
<PAGE>

   8.1 CONTINUED TRUTH OF REPRESENTATIONS AND WARRANTIES OF THE BUYER;
   COMPLIANCE WITH COVENANTS AND OBLIGATIONS................................32

   8.2 CORPORATE PROCEEDINGS................................................32

   8.3 GOVERNMENTAL APPROVALS...............................................32

   8.4 ADVERSE PROCEEDINGS..................................................32

   8.5 CLOSING DELIVERIES...................................................32

9. INDEMNIFICATION..........................................................33

   9.1 BY THE SELLERS AND THE COMPANY.......................................33

   9.2 BY THE BUYER.........................................................33

   9.3 CLAIMS FOR INDEMNIFICATION...........................................33

   9.4 DEFENSE BY THE INDEMNIFYING PARTY....................................34

   9.5 PAYMENT OF INDEMNIFICATION OBLIGATION................................34

   9.6 SURVIVAL OF REPRESENTATIONS..........................................35

10. TERMINATION OF AGREEMENT; OPTION TO PROCEED; DAMAGES....................35

   10.1 TERMINATION BY LAPSE OF TIME........................................35

   10.2 TERMINATION BY AGREEMENT OF THE PARTIES.............................35

   10.3 TERMINATION BY REASON OF BREACH.....................................35

   10.4 AVAILABILITY OF REMEDIES AT LAW.....................................35

11. NOTICES.................................................................35

12. SUCCESSORS AND ASSIGNS..................................................37

13. ENTIRE AGREEMENT; AMENDMENTS; ATTACHMENTS...............................37

14. SEVERABILITY............................................................37

15. EXPENSES................................................................37

16. HEALTH INSURANCE........................................................38

17. GOVERNING LAW...........................................................38

18. SECTION HEADINGS........................................................38

19. COUNTERPARTS............................................................38

<PAGE>

Schedules to be provided by the Sellers and the Company:

Schedule 2.5 -   Capitalization of the Company
Schedule 2.7 -   Affiliated Entities
Schedule 2.10    -   Undisclosed Liabilities
Schedule 2.11    -   Litigation
Schedule 2.12    -   Insurance
Schedule 2.13    -   Personal Property
Schedule 2.14    -   Intangible Property
Schedule 2.15    -   Leases
Schedule 2.16    -   Inventory
Schedule 2.17    -   Accounts Receivable
Schedule 2.18    -   Tax matters
Schedule 2.20    -   Contracts
Schedule 2.23    -   Employee Relations

Schedule 2.24    -   Company Employee Plans
Schedule 2.25    -   Certain Changes and Events
Schedule 2.26    -   Customer List
Schedule 2.27    -   Suppliers
Schedule 2.28    -   Warranty and Product Liability Claims
Schedule 2.29    -   Prepayments and Deposits
Schedule 2.30    -   Affiliated Indebtedness
Schedule 2.31    -   Banking Facilities
Schedule 2.32    -   Powers of Attorney and Suretyships
Schedule 2.33    -   Conflicts of Interest
Schedule 2.34    -   Regulatory Approvals

Schedule to be provided by the Buyer:

Schedule 7.11    -   Employment Agreements

<PAGE>

Exhibits

  A   -     Opinion of Sellers' Counsel
  B   -     Noncompetition Agreement
  C   -     Employment Agreements
  D   -     Registration Rights Agreement

<PAGE>

                         INDEX OF CERTAIN DEFINED TERMS

      The terms set forth below shall have the meanings ascribed thereto in the
referenced sections:

<PAGE>

Accounts Receivable                                    Section 2.17
Affiliates                                             Section 2.20
Balance Sheet Date                                     Section 2.20
Closing                                                Section 1.1
Closing Date                                           Section 1.3
Code                                                   Section 2.18
Contracts                                              Section 2.20
Current Balance Sheet                                  Section 2.9
Current Financial Statements                           Section 2.9
Defined Benefit Plans                                  Section 2.24
Company Employee Plans                                 Section 2.24
ERISA                                                  Section 2.24
Financial Statements                                   Section 2.9
Insurance Policies                                     Section 2.12
Intangible Property                                    Section 2.14
Inventory                                              Section 2.16
Leases                                                 Section 2.15
1997 Balance Sheet                                     Section 2.9
Personal Property                                      Section 2.13
Purchase Price                                         Section 1.2
Real Estate                                            Section 2.36
Shares                                                 Section 1.1INVESTMENT AGREEMENT

      THIS INVESTMENT AGREEMENT, dated as of February 7, 2000, is entered into
by and between KCEP VENTURES II, L.P., a Kansas limited partnership
("Purchaser"), and AIRPORT SYSTEMS INTERNATIONAL, INC., a Kansas corporation
("Company").

                                    RECITALS

      A.    Company  is in  the  business  of  developing,  manufacturing  and
marketing  navigational  aids,  and is entering  the  business  of  electronic
contract manufacturing and acquiring related entities.

      B. Immediately prior to the consummation of the transactions contemplated
herein, the Company will consummate the transactions contemplated by that
certain Stock Purchase Agreement by and among the Company, DCI, Inc. ("DCI"),
Chris I. Hammond, Larry C. Klusman and William D. Cook in which DCI will become
a wholly-owned subsidiary of the Company (the "Stock Purchase Agreement"),
followed by consummation of the transactions contemplated by that certain Asset
Purchase Agreement by and among DCI, KHC of Lenexa, L.L.C. ("KHC"), Hammond,
Klusman and Cook (the "Asset Purchase Agreement"). The purchases under both the
Stock Purchase Agreement and Asset Purchase Agreement shall be financed by Bank
of America, N.A. ("BOA"), which financing shall be evidenced by a Loan and
Security Agreement by and among the Company, DCI and BOA (the "Loan Agreement")
and the Assignment and Assumption among DCI, BOA, KHC, UMB Bank, N.A., and the
City of Lenexa (the "Assignment Agreement"). The Stock Purchase Agreement, the
Asset Purchase Agreement, the Loan Agreement and the Assignment Agreement and
any and all documents contemplated therein to be executed and delivered shall be
collectively referred to as the "Transaction Documents."

      C.    Purchaser  desires to invest in Company  pursuant to the terms and
conditions of this Agreement.

                                    AGREEMENT

      In consideration of the mutual promises and covenants contained in this
Agreement and other good and valuable consideration, the receipt and sufficiency
of which is hereby acknowledged, the parties hereto agree as follows:

      1.    AUTHORIZATION AND SALE OF COMMON STOCK, DEBENTURE AND WARRANT.

            1.1 AUTHORIZATION. Company has, or on or before the Closing (as
defined in Section 2 below) will have, duly authorized and reserved for issuance
as described below:

                  (a)   COMMON  STOCK.  Up to  410,715  shares  of its  voting
common  stock,  $.01 par  value  (the  "Common  Stock"),  having  the  rights,
restrictions,  privileges,  and  preferences  set  forth  in the  Articles  of
Incorporation of the Company, as amended (the "Articles of Incorporation");

<PAGE>

                  (b)   CONVERTIBLE   SUBORDINATED  DEBENTURE.  A  convertible
subordinated  debenture  (the  "Convertible  Subordinated  Debenture")  in  an
amount  of  $500,000,  with  a  conversion  price  of  $3.00  per  share  (the
"Debenture  Price"),  in substantially  the form attached hereto as Exhibit A;
and

                  (c) WARRANT. A warrant (the "Warrant") granting Purchaser the
right to purchase 45,635 shares of Common Stock for $150,595.50 (or $3.30 per
share) (the "Warrant Price"), in substantially the form attached hereto as
Exhibit B.

            1.2 SALE OF THE COMMON STOCK. Subject to the terms and conditions of
this Agreement, at the Closing (as defined in Section 2 below) Company will sell
and issue to Purchaser, and Purchaser will acquire, 198,413 shares of Common
Stock for $500,000 (or $2.52 per share) (the "Common Stock Purchase Price").

            1.3 SALE OF CONVERTIBLE SUBORDINATED DEBENTURE. Subject to the terms
and conditions of this Agreement, at the Closing (as defined in Section 2 below)
Company will sell and issue to Purchaser, and Purchaser will acquire, the
Convertible Subordinated Debenture in the amount of $500,000.

            1.4 SALE OF WARRANT TO PURCHASE COMMON STOCK. Subject to the terms
and conditions of this Agreement, Company will execute and deliver to Purchaser,
and Purchaser will acquire, at the Closing (as defined in Section 2 below), the
Warrant. Together, the shares of Common Stock acquired pursuant to Section 1.2,
the Convertible Subordinated Debenture and the Warrant are referred to herein as
the "Securities."

            1.5   USE OF PROCEEDS.

                  (a) WORKING CAPITAL. Company will use the proceeds from the
sale of the Securities for general working capital purposes and to fund
acquisitions in the electronic contract manufacturing business pursuant to the
acquisition plan, attached hereto as Exhibit C, agreed to between Company and
Purchaser. Pending such use, Company shall place such proceeds in one or more
federally insured deposit accounts.

                  (b) LIMITATIONS. Notwithstanding anything herein to the
contrary, no portion of the proceeds from the sale of the Securities sold will
be used (i) for relending or reinvesting, if Company's primary purpose involves,
directly or indirectly, providing funds to others, (ii) for the purchase of debt
obligations, factoring, or the long-term leasing of equipment with no provision
for maintenance or repair, (iii) to, directly or indirectly, provide capital or
financing to a company licensed under the Small Business Investment Act of 1958,
as amended (together with the rules and regulations thereunder, the "SBI Act"),
(iv) to acquire, or to pay obligations relating to the prior acquisition of,
land or improved real estate to be held, without prompt and substantial
improvement, for resale or leasing to others, (v) outside the United States
(except that all or any portion of such proceeds may be used by Company in the
domestic production of products for distribution abroad or to acquire abroad
materials used in such production, provided the major portion of the assets and
activities of Company after such proceeds are so employed remains within the
territorial jurisdiction of the United States), (vi) for any purpose contrary to
the public interest (including but not limited to activities which are in

                                       -2-
<PAGE>

violation of law or inconsistent with free competitive enterprise), (vii) to
purchase goods or services from a supplier that is an "associate" (as defined in
Section 107.50 of Title 13 of the Code of Federal Regulations (the "CFR")) of
Purchaser if 50% or more of such proceeds will be used to purchase goods or
services from any such supplier (provided, however, that (A) in no event may
such proceeds be used to purchase capital goods from an associate supplier, and
(B) such goods and services shall be at a price no greater than that charged
other customers of the associate supplier), or (viii) to acquire "farm land" (as
that term is defined in Section 107.720 of Title 13 of the CFR).

                  (c) UNAUTHORIZED DIVERSION. Unless specifically consented to
by Purchaser, any (i) diversion by Company of the proceeds from the sale of the
Securities from the purposes set forth in this Section 1.5 or (ii) change in
Company's business activity within the 12-month period following the Closing (as
defined in Section 2 below) that renders the Securities an ineligible investment
for Purchaser pursuant to Section 107.760(b) of Title 13 of the CFR shall
constitute an event of default under this Agreement. Upon the occurrence of such
event of default, Purchaser shall have the right to demand immediate repurchase
of, and Company shall immediately repurchase, (i) all the Common Stock acquired
pursuant to Section 1.2 above and held by Purchaser, at a per share purchase
price equal to $2.52, (ii) the Convertible Subordinated Debenture held by
Purchaser, at face value plus all accrued interest thereon, (iii) any shares of
Common Stock held by Purchaser as a result of the conversion of the Convertible
Subordinated Debenture, at a per share purchase price equal to $3.00 for any
Common Stock issued to Purchaser, and (iv) any purchased and issued Common Stock
acquired pursuant to the Warrant, at a per share purchase price equal to $3.30.
In addition, the Warrant shall be cancelled.

      2.    THE CLOSING.

            2.1 THE CLOSING. The closing of the sale and purchase of the Common
Stock, Convertible Subordinated Debenture and the Warrant (the "Closing") under
this Agreement shall take place at the offices of Blackwell Sanders Peper Martin
LLP ("Legal Counsel's Offices"), 2300 Main, Suite 1100, Kansas City, Missouri
64108 at 10:00 a.m., Central Time, on February 7, 2000 (the "Closing Date"), or
at such other time, date and place as are mutually agreeable to Company and
Purchaser, but in no event later than 5:00 p.m., Central Time, on March 15,
2000. At the Closing, Company will deliver to Purchaser a certificate or
certificates for 198,413 Common Stock shares registered in the name of Purchaser
against receipt by Company, as consideration, of the Common Stock Purchase Price
by wire transfer, check, or other method acceptable to Company. At the Closing,
Company will deliver to Purchaser the Convertible Subordinated Debenture in the
name of the Purchaser against receipt by Company, as consideration, of the
Debenture Price, by wire transfer, check or other method acceptable to Company.
At the Closing, Company will deliver to Purchaser the Warrant in the name of the
Purchaser. In addition, the Company will pay the Purchaser a commitment fee in
the amount of $20,000 at the Closing.

            2.2 If at Closing any of the applicable conditions specified in
Section 5 hereof shall not have been fulfilled, Purchaser shall, at its
election, be relieved of its obligations to purchase Securities at such Closing
without thereby waiving any other rights it may have by reason of such failure
or such non-fulfillment.

                                       -3-
<PAGE>

      3.    REPRESENTATIONS  OF  COMPANY.  Subject to and except as  disclosed
by Company in the schedules  attached  hereto,  Company hereby  represents and
warrants to Purchaser as follows:

            3.1 ORGANIZATION AND STANDING. Company is a corporation duly
organized, validly existing, and in good standing under the laws of the State of
Kansas and has full corporate power and authority to conduct its business as
presently conducted and as proposed to be conducted by it, to enter into and
perform this Agreement, and to carry out the transactions contemplated by this
Agreement. Company is duly qualified to do business as a foreign corporation in
every other jurisdiction in which the failure to so qualify would have a
material adverse effect on Company's operations or financial condition.

            3.2 CAPITALIZATION. The authorized capital stock of Company
(immediately prior to the Closing) will consist of: 5,000,000 shares of common
stock, $.01 par value, of which (i) 198,413 shares are reserved for issuance of
Common Stock, (ii) 166,667 shares are reserved for issuance upon the conversion
of the Convertible Subordinated Debenture (iii) 45,635 shares are reserved for
issuance upon the exercise of the Warrant, (iv) 475,000 shares are reserved for
issuance pursuant to the Company's option plan, and (v) 2,230,500 shares are
issued and outstanding, with 150,000 shares to be issued to three individuals
pursuant to that certain Stock Purchase Agreement (as defined below).

All of the issued and outstanding shares of Common Stock have been duly
authorized and validly issued and are fully paid and nonassessable. Except as
otherwise provided in this Agreement or as set forth on SCHEDULE 3.2 hereto: (i)
no subscription, warrant, option, convertible security, or other right
(contingent or otherwise) to purchase or acquire any shares of capital stock of
Company is authorized or outstanding, (ii) there is not any commitment of
Company to issue any subscription, warrant, option, convertible security, or
other such right or to issue or distribute to holders of any shares of its
capital stock any evidences of indebtedness or assets of Company, and (iii)
Company has no obligation (contingent or otherwise) to purchase, redeem, or
otherwise acquire any shares of its capital stock or any interest therein or to
pay any dividend or make any other distribution in respect thereof. Except as
otherwise provided in this Agreement or as set forth on SCHEDULE 3.2 hereto, no
person or entity is entitled to (i) any preemptive or similar right with respect
to the issuance of any capital stock of Company or (ii) any rights with respect
to the registration of any capital stock of Company under the Securities Act of
1933, as amended (the "Securities Act"). All of the issued and outstanding
shares of Common Stock have been offered, issued, and sold by Company in
compliance with applicable federal and state securities laws.

            3.3 SUBSIDIARIES. Except as set forth on SCHEDULE 3.3 hereto,
Company has no subsidiaries nor owns or controls, directly or indirectly, any
other corporation, association or business entity.

            3.4 DEBTHOLDERS AND STOCKHOLDERS LIST AND STOCKHOLDERS' AGREEMENTS.
The Company has no debt securities outstanding other than those notes disclosed
on SCHEDULE 3.4 hereto. Except as set forth on SCHEDULE 3.4 hereto, there are no
agreements, written or oral, between Company and any holder of its capital
stock. No provision of this Agreement activates, or will activate, the rights or
obligations of any party under a stockholder rights plan or voting agreement to
which the Company is a party. The transactions contemplated herein, including
the

                                       -4-
<PAGE>

conversion and exercise of the Convertible Subordinated Debenture and the
Warrant, respectively, shall not result in any loss by the Purchaser of the
right to vote as a stockholder of the Company any shares of common stock
acquired hereunder pursuant to the provisions set forth in section 17-1286 et.
al, Control Shares Acquisitions, of the Kansas statutes.

            3.5 ISSUANCE OF SECURITIES. The issuance, sale, and delivery of the
Securities in accordance with this Agreement, and the issuance and delivery of
the shares of Common Stock issuable upon conversion of the Convertible
Subordinated Debenture and exercise of the Warrant, have been or will be, on or
prior to the applicable Closing, duly authorized and reserved for issuance, as
the case may be, by all necessary corporate action on the part of Company, and
the shares when so issued, sold, and delivered against payment therefor in
accordance with the provisions of this Agreement, and the shares of Common Stock
issuable upon conversion or exercise of the Convertible Subordinated Debenture,
when issued upon such conversion or exercise, will be duly and validly issued,
fully paid, and nonassessable.

            3.6 AUTHORITY FOR AGREEMENT. The execution, delivery, and
performance by Company of this Agreement and all other agreements required to be
entered into pursuant to this Agreement have been or will be, on or prior to the
applicable Closing, duly authorized by all necessary corporate action, and duly
executed and delivered by Company. This Agreement and such other agreements
constitute valid and binding obligations of Company enforceable in accordance
with their respective terms. The execution and performance of the transactions
contemplated by this Agreement and such other agreements to be executed and
delivered by Company hereunder and compliance with their provisions by Company
will not violate any provision of law and will not conflict with or result in
any breach of any of the terms, conditions or provisions of, or constitute a
default under, its Articles of Incorporation or bylaws, any indenture, lease,
agreement, or other instrument to which Company is a party or by which it or any
of its properties is bound, or any decree, judgment, order, statute, rule or
regulation applicable to Company.

            3.7 GOVERNMENTAL CONSENTS. No consent, approval, order, or
authorization of, or registration, qualification, designation, declaration, or
filing with, any governmental authority is required on the part of Company in
connection with the execution and delivery of this Agreement, the offer, issue,
sale and delivery of the Securities, or the other transactions to be consummated
at the applicable Closing, as contemplated by this Agreement, except such
filings as shall have been made prior to and shall be effective on and as of
such Closing. Based on the representations made by Purchaser in Section 4 of
this Agreement, the offer and sale of the Securities to Purchaser will be exempt
from registration under applicable federal and state securities laws.

            3.8 LITIGATION. Except as set forth on SCHEDULE 3.8, there is no
action, suit, proceeding, or investigation pending, or, to the best of Company's
knowledge, any basis therefor or threat thereof, against Company which questions
the validity of this Agreement or Company's right to enter into it, or which
might result, either individually or in the aggregate, in any material adverse
change in Company's assets, condition (financial or otherwise), business, or
prospects, nor is there any litigation pending, or, to the best of Company's
knowledge, any basis therefor or threat thereof, against Company by reason of
the past employment relationships, the proposed activities of Company, or
negotiations by Company with possible investors in Company.

                                       -5-
<PAGE>

            3.9 FINANCIAL STATEMENTS; ABSENCE OF LIABILITIES. On or before the
date hereof, Company has furnished to Purchaser a complete and correct copy of
the balance sheet of Company (the "Audited Balance Sheet") as of April 30, 1999
(the "Audited Balance Sheet Date"), and the related statements of operations and
of changes in financial position for the 12 months then ended (collectively, the
"Audited Financial Statements"), a complete and correct copy of the balance
sheet of the Company (the "Unaudited Balance Sheet") as of October 31, 1999 (the
"Unaudited Balance Sheet Date"), and the related unaudited statements of
operations and of changes in financial position for the six months then ended,
(collectively, the "Unaudited Financial Statements"). (The Audited Financial
Statements and the Unaudited Financial Statements are collectively referred to
herein as the "Financial Statements"). The Financial Statements are complete and
correct, are in accordance with the books and records of Company, and present
fairly the financial condition and results of operations of Company, as of the
dates and for the periods indicated, and the Audited Financial Statements have
been prepared in accordance with generally accepted accounting principles
("GAAP") in all material respects. Company did not have, at the Unaudited
Balance Sheet Date, any liabilities of any type which in the aggregate exceeded
$25,000, whether absolute or contingent, which were not fully reflected on the
Unaudited Balance Sheet, and, since the Unaudited Balance Sheet Date, (x) no
material change to Company's net worth has occurred and (y) Company has not
incurred or otherwise become subject to any such liabilities or obligations
except in the ordinary course of business, incurred in connection with
acquisitions publicly disclosed, or in connection with and as disclosed in this
Agreement. Attached as EXHIBIT 3.9 is certain financial and operating
information relating to DCI that was provided by the Company to the Purchaser;
provided, however, that no representation in this Section 3.9 is made as to the
accuracy of any projections, pro formas or forecasts. The projections, pro
formas and forecasts delivered to the Purchaser by the Company were prepared in
good faith on the basis of the assumptions stated therein, which assumptions
were fair in light of conditions existing at the time of delivery.

            3.10 TAXES. Company has set aside sufficient funds for the payment
of all accrued and unpaid federal, state, county, local, and foreign taxes for
all current and prior periods. Company has filed or has obtained presently
effective extensions with respect to all federal, state, county, local, and
foreign tax returns which are required to have been filed by it, such returns
are true and correct and all taxes shown thereon to be due have been timely
paid. Federal income tax returns of Company have not been audited by the
Internal Revenue Service, and no controversy with respect to taxes of any type
is pending or, to Company's knowledge, threatened.

            3.11 PROPERTY AND ASSETS. Company has good title to all of its
material properties and assets, including all material properties and assets
reflected in the Balance Sheet, except those disposed of in the ordinary course
of business, and none of such properties or assets is subject to any mortgage,
pledge, lien, security interest, lease, charge, or encumbrance other than those
encumbrances described in the Balance Sheet or the most recent balance sheet
delivered to Purchaser pursuant to Subsection 7.2(a)(i) below (the "Most Recent
Balance Sheet"), if any.

            3.12 PATENTS AND TRADEMARKS. Company owns or possesses, or can
obtain by payment of royalties in amounts which, in the aggregate, do not
materially and adversely affect Company's proposed business and prospects, all
of the patents, trademarks, service marks, trade

                                      -6-
<PAGE>

names, copyrights, proprietary rights, trade secrets, and licenses or rights to
the foregoing, necessary for the conduct of Company's business as conducted and
as proposed to be conducted. To Company's knowledge, the contract electronics
manufacturing business proposed by Company will not cause Company to infringe or
violate any of the patents, trademarks, service marks, trade names, copyrights,
licenses, trade secrets, or other proprietary rights of any other person or
entity.

            3.13 INSURANCE. Company maintains valid policies of insurance with
respect to its properties and business of the kinds and in amounts not less than
is customarily obtained by corporations of established reputation engaged in the
same or similar business and similarly situated, including, without limitation,
insurance against loss, damage, fire, theft, public liability, and
employment-related accidents of Company's employees.

            3.14 MATERIAL CONTRACTS AND OBLIGATIONS. Company has disclosed to
Purchaser a list of all material agreements of any nature to which Company is a
party or by which it is bound, including, without limitation, (a) each agreement
which requires future expenditures by Company in excess of $100,000 in the
aggregate, (b) all employment and consulting agreements, employee benefit,
bonus, pension, profit-sharing, stock option, stock purchase, and similar plans
and arrangements, and (c) any agreement to which any stockholder, officer, or
director of Company, or any "affiliate" or "associate" of such persons (as such
terms are defined in the rules and regulations promulgated under the Securities
Act), is presently a party, including any agreement or other arrangement
providing for the furnishing of services by, rental of real or personal property
from, or otherwise requiring payments to, any such person or entity. All of such
agreements and contracts are, to Company's knowledge, valid, binding, and in
full force and effect.

            3.15 COMPLIANCE. To Company's knowledge, Company has, in all
material respects, complied with all laws, regulations, and orders applicable to
its present and proposed business and has all material permits and licenses
required thereby. There is no term or provision (other than those requiring
payment of amounts owed) of any material mortgage, indenture, contract,
agreement, or instrument to which Company is a party or by which it is bound,
or, to the knowledge of Company, of any provision of any state or federal
judgment, decree, order, statute, rule, or regulation applicable to or binding
upon Company, which materially and adversely affects or, so far as Company may
now foresee, in the future is reasonably likely to materially and adversely
affect, the business, prospects, condition, affairs, or operations of Company or
any of its properties or assets.

            3.16 ABSENCE OF CHANGES. Since the Unaudited Balance Sheet Date
there has been no material adverse change in the condition, financial or
otherwise, net worth, or results of operations of Company, other than changes
occurring in the ordinary course of business, which changes have not,
individually or in the aggregate, had a material adverse effect on the business,
prospects, properties, or condition, financial or otherwise, of Company.

            3.17 EMPLOYEES. Company is not aware that any employee is obligated
under any contract (including any license, covenant, or commitment of any
nature), or subject to any judgment, decree, or order of any court or
administrative agency, that would interfere with the use of such employee's best
efforts to promote the interests of Company or would conflict with

                                      -7-
<PAGE>

Company's business as conducted. To Company's knowledge, no prior employer of
any employee of Company has any right to or interest in any inventions,
improvements, discoveries, or other information assigned to Company by such
employee. All non-management employees of Company who have access to
confidential or proprietary information of Company have executed and delivered
proprietary information agreements with nondisclosure and assignment of
invention provisions ("Non-Disclosure Agreements"), and all of such agreements
are in full force and effect. None of the employees of Company is represented by
any labor union, and there is no labor strike or other labor trouble pending
with respect to Company (including, without limitation, any organizational
drive) or, to Company's knowledge, threatened.

            3.18 ERISA. To the Company's knowledge, the employee benefit plans
sponsored by the Company and subject to the Employee Retirement Income Security
Act of 1974, as amended ("ERISA"), are in compliance with ERISA. The Company is
not subject to any audit involving any of such plans and such plans are not
subject to any litigation or disputed claims for benefits.

            3.19 BOOKS AND RECORDS. The minute books of Company contain complete
and accurate records of all official meetings and other corporate actions of its
stockholders and its Board of Directors and committees thereof. To the Company's
knowledge, the stock records of Company are complete and reflect all issuances,
transfers, repurchases and cancellations of shares of Company's capital stock.

            3.20 DISCLOSURES. Neither this Agreement nor any exhibit or schedule
hereto, nor any certificate or instrument furnished to Purchaser (or its legal
counsel) in connection with the transactions contemplated by this Agreement when
read together, contains any material misstatement of fact or omits to state a
material fact necessary to make the statements contained herein or therein not
misleading. Company knows of no information or fact which has or would have a
material adverse effect on the financial condition, business or prospects of
Company which has not been disclosed to Purchaser.

            3.21 SMALL BUSINESS CONCERN. Company, together with its "affiliates"
(within the meaning set forth in Section 121.103 of Title 13 of the CFR), is a
"small business concern" (as that term is defined in the SBI Act, including
Section 121.105(a) of Title 13 of the CFR). The information set forth in the
documents provided to Purchaser pursuant to the SBI Act remain accurate and
complete.

            3.22 SECURITIES AND EXCHANGE COMMISSION DOCUMENTS. The Company has
made available to the Purchaser a true and complete copy of each report,
schedule, registration statement and definitive proxy statement filed by the
Company with the Securities and Exchange Commission (the "SEC") since January 1,
1997 (the "Company SEC Documents") which are all the documents (other than
preliminary material) that the Company was required to file with the SEC since
such date. As of their respective dates, the Company SEC Documents complied in
all material respects with the requirements of the Securities Act, or the
Securities and Exchange Act of 1934, as amended, as the case may be, and the
rules and regulations of the SEC thereunder applicable to such Company SEC
Documents, and none of the Company SEC Documents contained any untrue statement
of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under

                                      -8-
<PAGE>

which there were made, not misleading. The financial statements of the Company
included in the Company SEC Documents complied as to form in all material
respects with the published rules and regulations of the SEC with respect
thereto, have been prepared in accordance with GAAP applied on a consistent
basis during the periods involved (except as may be indicated in the notes
thereto) and fairly present in accordance with applicable requirements of GAAP
(subject, in the case of the Unaudited Financial Statements, to normal,
recurring adjustments, none of which are material) the consolidated financial
position of the Company and its consolidated subsidiaries as of their respective
dates and the consolidated results of operations and the consolidated cash flows
of the Company for the periods presented therein.

            3.23  COMPLIANCE WITH SMALL BUSINESS INVESTMENT ACT REQUIREMENTS.

                  (a) The Company has not engaged in any activities and does not
intend to use directly or indirectly the proceeds from the issuance of the
Securities or any other proceeds received from the Purchaser, for any purpose
for which a Small Business Investment Company is prohibited from providing funds
by the Small Business Investment Act and the regulations thereunder, including
Title 13, Code of Federal Regulations, Part 107 (collectively "SBIA").

                  (b) Neither the Company nor any of its officers, directors, or
shareholders or, to the best of the Company's knowledge, its employees directly
or indirectly own or control, or are related to any Person who owns or controls,
any interest in, or is an officer, director, employee, stockholder, or agent of,
the Purchaser or any entity in any way related to or affiliated with the
Purchaser or any other Small Business Investment Company.

                  (c) The Company has not received, is not receiving and has no
intention to apply for any assistance from the Small Business Administration or
any Small Business Investment Company other than the Purchaser.

                  (d) The Company qualifies as a "small business concern" under,
and is in full compliance with, the provisions of SBIA. The aggregate
consolidated net worth of the Company and all other business entities affiliated
with the Company does not exceed $18,000,000, and the Company's average
consolidated net income in each of its last two Fiscal Years has not exceeded
$6,000,000.

            3.24 TRANSACTION DOCUMENTS. The Company has furnished the Purchaser
with complete and correct copies of each Transaction Document and all
appendices, schedules, and exhibits attached thereto. This Agreement and the
Transaction Documents are the only agreements relating to the transactions
contemplated hereby to which the Company is a party. The Company is not, and
after giving effect to the transactions contemplated by this Agreement will not
be, in default of any of its obligations under this Agreement or any Transaction
Document, and no other party to any such Transaction Document is in default on
any covenant or agreement thereunder. In connection with the entering into of
the Transaction Documents, the Company and each opposing party in such
Transaction Document (such opposing parties collectively referred to herein as
the "Third Parties") have made certain representations and warranties to each
other. The Company hereby represents and warrants to the Purchaser that all of
the representations and warranties made by the Company in each of the
Transaction

                                      -9-
<PAGE>

Documents, and in any certificates or schedules or exhibits delivered in
connection therewith, are true and correct in all material respects as of the
date hereof with the same force and effect as though made on and as of the date
hereof, and such representations and warranties are hereby confirmed to the
Purchaser as if such representations and warranties were set forth herein. In
addition, the Company hereby represents and warrants to the Purchaser that the
representations and warranties made by each of the Third Parties in each of the
Transaction Documents, and that any certificates or schedules or exhibits
delivered in connection therewith, are true and correct in all material respects
as of the date hereof with the same force and effect as though made on and as of
the date hereof, and such representations and warranties are hereby confirmed to
the Purchaser in all material respects as if such representations and warranties
were set forth herein. For purposes of the foregoing sentence (the "Pass Through
Representation"), the term "material" shall mean any inaccuracy in any
representation or warranty having an adverse effect on the Company in excess of
$100,000.

      4.    REPRESENTATIONS  OF PURCHASER.  Purchaser  represents and warrants
to Company as follows:

            4.1 INVESTMENT. Purchaser is an "accredited investor" as defined in
Rule 501(a) of Regulation D promulgated pursuant to the Securities Act.
Purchaser has carefully reviewed the representations concerning the Company
contained in this Agreement and has made a detailed inquiry concerning Company,
its business and its personnel. The officers of Company have made available to
Purchaser any and all written information which Purchaser has requested and have
answered to Purchaser's satisfaction all inquiries made by Purchaser. Purchaser
is acquiring the Securities, for its own account for investment and not with a
view to, or for sale in connection with, any distribution thereof, nor with any
present intention of distributing or selling the same. Except as contemplated by
this Agreement and the Exhibits hereto, Purchaser has no present or contemplated
agreement, undertaking, arrangement, obligation, indebtedness, or commitment
providing for the disposition thereof.

            4.2 AUTHORITY. Purchaser has full power and authority to enter into
and perform this Agreement in accordance with its terms. Purchaser has not been
organized specifically for the purpose of investing in Company.

            4.3 EXPERIENCE. Purchaser has carefully reviewed the representations
concerning Company contained in this Agreement and has made a detailed inquiry
concerning Company, its business and its personnel. The officers of Company have
made available to Purchaser any and all written information Purchaser has
requested and have answered to Purchaser's satisfaction all inquiries made by
Purchaser.

            4.4 ACKNOWLEDGMENT OF RELATED TRANSACTIONS. Purchaser acknowledges
that the transactions contemplated by this Agreement are subject to the
consummation of the transactions described in the Stock Purchase Agreement, the
Asset Purchase Agreement and the Loan Agreement. Purchaser acknowledges that the
consummation of the transactions contemplated by those agreements is vital to
this Agreement and is a condition to the obligation of the Company to sell the
Securities as described herein.

                                      -10-
<PAGE>

      5. CONDITIONS TO THE OBLIGATIONS OF PURCHASER. The obligations of
Purchaser to purchase the Securities at the Closing is subject to the
fulfillment, or the waiver by Purchaser, of the following conditions on or
before the Closing Date (except as expressly provided herein):

            5.1 ACCURACY OF REPRESENTATIONS AND WARRANTIES. Each representation
and warranty contained in Section 3 shall be true on and as of the Closing Date
with the same effect as though such representation and warranty had been made on
and as of the Closing Date, with the exception that such representations and
warranties do not take into account the prior closing of the transactions
contemplated by the Transaction Documents.

            5.2 PERFORMANCE. Company shall have substantially performed and
complied with all agreements and conditions contained in this Agreement required
to be performed or complied with by Company prior to or at the Closing.

            5.3 OPINION OF COUNSEL. Purchaser shall have received an opinion
from Blackwell Sanders Peper Martin LLP, counsel for Company, dated the Closing
Date, addressed to Purchaser, and in substantially the form and substance
attached hereto as Exhibit D.

            5.4 INVESTOR'S RIGHTS AGREEMENT. The Investor's Rights Agreement
attached hereto as Exhibit E (the "Investor's Rights Agreement") shall have been
executed and delivered by Company and Purchaser.

            5.5 BOARD OF DIRECTORS. Company's Board of Directors shall comprise
seven members appointed in accordance with the Investor's Rights Agreement.

            5.6 SECURITIES REGISTRATIONS AND EXCHANGE LISTING. Company shall
register the Securities with the securities commissioner of each jurisdiction in
which registration is required (and such registrations shall be in compliance
with the laws of such jurisdiction on the Closing Date), or Company shall be
entitled to rely on an exemption from registration on the Closing Date. The
Company shall, no later than such date as the Securities shall be registered in
accordance with the Investor's Rights Agreement, cause the Common Stock to be
issued at the Closing to be listed for trading on the American Stock Exchange.

            5.7 CERTIFICATES AND DOCUMENTS. All corporate and other proceedings
required to be taken on the part of Company to authorize and carry out this
Agreement shall have been taken, and Company shall have delivered to legal
counsel of Purchaser:

                  (a)   GOOD  STANDING  CERTIFICATE.  The  Certificate,  as of
the  most  recent  practicable  date  prior  to  the  Closing,  issued  by the
Secretary  of State of the State of  Kansas,  confirming  the  corporate  good
standing of Company on such date; and

                  (b) RESOLUTIONS. Resolutions of the Board of Directors of
Company, authorizing and approving all matters in connection with this Agreement
and the transactions contemplated hereby, certified by an officer of Company as
of the Closing Date.

            5.8   SECURITIES  COMPLIANCE.  Company  shall  comply with any and
all required federal and state  securities  rules and regulations  relating to
the transactions contemplated by this Agreement.

                                      -11-
<PAGE>

            5.9 OTHER MATTERS. All corporate and other proceedings in connection
with the transactions contemplated by this Agreement and all documents and
instruments incident to such transactions shall be reasonably satisfactory in
substance and form to Purchaser and its legal counsel, and Purchaser and its
legal counsel shall have received all such counterpart originals or certified or
other copies of such documents as they may reasonably request.

            5.10 DUE DILIGENCE. The Purchaser shall have been satisfied, in its
sole and reasonable opinion with the results of its investigation of Company.
Purchaser's due diligence shall in no way limit Seller's representations,
warranties and agreements contained in this Agreement. Purchaser must also be
satisfied that the transactions contemplated by the Transaction Documents have
closed.

      6. CONDITIONS TO THE OBLIGATIONS OF COMPANY. The obligations of Company
under this Agreement are subject to fulfillment, on or before the Closing Date,
of each of the following conditions:

            6.1 ACCURACY OF REPRESENTATIONS AND WARRANTIES. The representations
and warranties of Purchaser contained in Section 4 shall be true on and as of
the Closing Date with the same effect as though such representations and
warranties had been made on and as of the Closing Date.

            6.2 SECURITIES REGISTRATIONS AND EXCHANGE LISTING. Company shall
register the Securities with the securities commissioner of each jurisdiction in
which registration is required (and such registrations shall be in compliance
with the laws of such jurisdiction on the Closing Date), or Company shall be
entitled to rely on an exemption from registration on the Closing Date. The
Company shall, no later than such date as the Securities shall be registered in
accordance with the Investor's Rights Agreement, cause the Common Stock to be
issued at the Closing to be listed for trading on the American Stock Exchange.

      7.    AFFIRMATIVE COVENANTS OF COMPANY.

            7.1 INSPECTION. So long as the Convertible Subordinated Debenture
remains outstanding, and consistent with but not as a limitation to any similar
rights granted in the Convertible Subordinated Debenture, during normal business
hours following reasonable notice and as often as may be reasonably requested,
Company shall permit Purchaser, or any authorized representative thereof, to
visit and inspect the properties of Company, including its corporate and
financial records (and to make copies thereof and take extracts therefrom), and
to discuss its business and finances with officers of Company. Purchaser shall
be responsible for all expenses relating to all of such visits and inspections.

            7.2   FINANCIAL STATEMENTS AND OTHER INFORMATION.

                  (a)   FINANCIAL  STATEMENTS  AND  BUDGETS.  So  long  as the
Convertible  Subordinated Debenture remains outstanding,  Company will deliver
to Purchaser upon request:

                        (i)   Within  90 days  after  the  end of each  fiscal
year of Company, a balance sheet of Company as of the end of such year and
statements of income and of changes in financial condition of Company for such
year (A) prepared in accordance with

                                      -12-
<PAGE>

generally accepted accounting principles, (B) audited by an independent
accounting firm acceptable to Purchaser, and (C) including (x) verification of
the use of the proceeds from the sale of the Securities for the purposes
intended by the SBI Act and regulations thereunder and (y) such other
information as is necessary to verify the financial condition of Company and the
continued eligibility of Company pursuant to Sections 107.700 to 107.880 of
Title 13 of the CFR;

                        (ii)  Within 30 days  after  the end of each  calendar
month (other than a calendar month during which any fiscal quarter or fiscal
year of Company ends), an unaudited balance sheet of Company as of the end of
such month and unaudited statements of income and of changes in financial
condition of Company for such month and for the current fiscal year to the end
of such month;

                        (iii) As soon as  available,  but in any event  within
30 days after commencement of each new fiscal year, a business plan that shall
contain projected quarterly and annual financial statements and quarterly and
annual operating and capital budgets for such fiscal year, which such plan shall
be submitted to Company's Board of Directors for approval within such time; and

                        (iv)  With   reasonable    promptness,    such   other
information and financial data concerning Company as Purchaser may reasonably
request, including, without limitation, quarterly and annual budgets and
summaries of financial plans.

                  (b) SBA INFORMATION. Company will upon request furnish from
time to time to Purchaser promptly (and in any event within 10 days of the
request) all information necessary, in the opinion of Purchaser, to enable
Purchaser to prepare and file its financial statement and its economic impact
statement on SBA Form 468 and any other information requested or required by any
governmental agency asserting jurisdiction over Purchaser. Notwithstanding any
other provision contained herein to the contrary, the covenants contained in
this subsection 7.2(b) shall continue to be effective for such period of time in
which (i) Purchaser owns or has the option to own any Common Stock, or other
securities convertible into Common Stock, of Company and (ii) Purchaser is a
licensee under the SBI Act.

                  (c) PREPARATION AND DELIVERY. The foregoing financial
statements shall be prepared on a consolidated basis if Company then has any
subsidiaries and shall be accompanied by a certificate of an officer of Company
that, to the best knowledge of such officer, Company is in compliance with the
covenants in this Section 7. The financial statements delivered pursuant to
clause (ii) of paragraph (a) also shall be accompanied by a certificate of an
officer of Company that, to the best knowledge of such officer, such statements
have been prepared in accordance with generally accepted accounting principles,
consistently applied (except as noted), and fairly present the financial
condition of Company at the date thereof and for the periods covered thereby,
subject to changes to reflect year-end adjustments.

            7.3 MATERIAL CHANGES AND LITIGATION. So long as the Purchaser owns
Securities or Common Stock representing not less than fifty percent (50%) of the
total potential amount of Common Stock, with respect to events of which Company
has knowledge, Company promptly will notify Purchaser of any material adverse
change in the business, properties, assets,

                                      -13-
<PAGE>

or condition, financial or otherwise, of Company and of any litigation or
governmental proceeding or investigation pending or, to Company's knowledge,
threatened against Company, or any officer, director, key employee, or principal
stockholder of Company and materially and adversely affecting or which, if
adversely determined, would materially and adversely affect the present or
proposed business, properties, assets, or condition of the Company taken as a
whole.

            7.4 NONDISCLOSURE AGREEMENTS. So long as the Purchaser owns
Securities or Common Stock representing not less than fifty percent (50%) of the
total potential amount of Common Stock, Company will require all persons now or
hereafter employed by Company who have access to confidential or proprietary
information of Company to enter into Non-Disclosure Agreements, unless the Board
of Directors of Company, by unanimous vote, elects to waive such requirement of
an employee of Company.

            7.5 TRANSACTIONS WITH AFFILIATES. So long as the Purchaser owns
Securities or Common Stock representing not less than fifty percent (50%) of the
total potential amount of Common Stock, except as specifically acknowledged and
consented to in this Agreement, Company will not, and will not permit any
subsidiary of Company to, directly or indirectly enter into any transaction or
group of related transactions with any affiliate of Company except pursuant to
the reasonable requirements of Company's or the subsidiary's business and upon
fair and reasonable terms no less favorable to Company or the subsidiary than
would be obtainable in a comparable arm's-length transaction. For purposes of
this Section 7.5, (a) a person that directly or indirectly controls, is
controlled by, or is under common control with another person is an "affiliate"
of such other person, (b) the term "control" means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of a person, whether through the ownership of voting securities, by
contract or otherwise, and (c) a corporation or other entity, a majority of the
voting stock or equity interests having voting rights of which is owned or
controlled by Company, is a "subsidiary" of Company.

            7.6 POST-CLOSING BLUE SKY FILINGS. Company agrees to timely make all
required post-closing filings, if any, with state blue sky authorities and the
American Stock Exchange.

            7.7 CONDUCT OF THE COMPANY PENDING THE CLOSING. Company agrees that
from the date hereof to the Closing Date (subject to written consent by
Purchaser to the contrary):

                  (a)   (i)   Company  will carry on its business in the usual
and ordinary course;

                        (ii)  Company will not,  except in the ordinary course
of its business and consistent  with its past practice,  increase the rates of
pay or benefits from any officers, employees or agents;

                        (iii) Company  will not make any  material  change  to
its material agreements and will not enter into any contract or commitment or
engage in any transaction not in the usual and ordinary course of its business
and the best interest of its business;

                        (iv)  Company  will not take any  actions  that  would
result in any of the  representations  or  warranties  set forth  herein being
untrue;

                                      -14-
<PAGE>

                        (v)   Company  will  deliver or cause to be  delivered
to the Buyer supplemental information concerning events subsequent to the date
hereof that would render any statement, representation or warranty in this
Agreement or any information contained in any Schedule inaccurate or incomplete
in any material respect at any time after the date hereof until the Closing
Date.

                  (b) Company will not, directly or indirectly, through any
officer, director, agent or otherwise (i) solicit, initiate, or encourage
submission of proposals or offers from any person relating to any acquisition or
purchase of all or a material portion of its assets, or any merger,
consolidation or business combination with Company (except as may relate to the
contemplated acquisitions of the stock of DCI, Inc. and the assets of KHC of
Lenexa, L.L.C.), or (b) participate in any discussions or negotiations
regarding, or furnish to any other person, any non-public information with
respect to, or otherwise cooperate in any way with, or assist or participate in,
facilitate or encourage, any effort or attempt by any other person to do or seek
any of the foregoing. Company shall promptly notify Purchaser if any such
proposal or offer, or any inquiry or contact with any person with respect
thereto, is made.

                  (c) Company agrees to use its best efforts to obtain the
satisfaction of the conditions specified in this Agreement.

            7.8 NAME CHANGE. At the next meeting of the stockholders of the
Company following the Closing of the transactions contemplated herein, the Board
of Directors of the Company shall recommend for approval by the stockholders
that the name "Airport Systems International, Inc." be changed to a name
selected by the Board of Directors and undertake a reorganization of the
Company's corporate structure.

            7.9 OBLIGATION RELATING TO PASS THROUGH REPRESENTATION. The Company
shall be deemed not to have breached the Pass Through Representation in Section
3.23 above if it diligently pursues, and the Company agrees that it shall
diligently pursue, its rights and remedies relating to the breach of any
material representation or warranty made by any Third Party described therein.

      8. SUCCESSORS AND ASSIGNS. The provisions of this Agreement shall be
binding upon, and inure to the benefit of, the respective successors, assigns,
heirs, executors and administrators of the parties hereto. Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

      9.    TRANSFERS OF CERTAIN RIGHTS.

                  (a) APPLICABLE PROVISIONS. Without the prior written consent
of Company, only the rights under this Agreement granted to Purchaser under
Section 7 may be transferred by Purchaser and such rights may be transferred
only to a person or entity acquiring at least that portion of the Securities
from the Purchaser that is greater than 50% of the Common Stock or rights or
securities convertible into more than 50% of the Common Stock; PROVIDED,
HOWEVER, that Company is given written notice by the transferee at the time of
such transfer

                                      -15-
<PAGE>

stating the name and address of the transferee and identifying the securities
with respect to which such rights are being assigned; AND, PROVIDED FURTHER that
the transferor shall only retain such rights if, following the transfer, the
transferor retains not less than such threshold amount of the Securities.

                  (b) TRANSFEREES. Any transferee to whom rights under Section 7
are transferred shall, as a condition to such transfer, deliver to Company a
written instrument by which such transferee agrees to be bound by the
obligations imposed upon Purchaser under this Agreement to the same extent as if
such transferee were Purchaser hereunder.

                  (c) SUBSEQUENT TRANSFEREES. A transferee to whom or to which
rights are transferred pursuant to this Section 9 may not again transfer such
rights to any other person or entity, other than as provided in Subsection 9(a)
or (b) above.

      10. CONFIDENTIALITY. Purchaser agrees that it will keep confidential and
will not disclose or divulge any confidential, proprietary, or secret
information that Purchaser may obtain from Company pursuant to financial
statements, reports, and other materials submitted by Company to Purchaser
pursuant to this Agreement, or pursuant to visitation or inspection rights
granted hereunder, unless such information is known, or until such information
becomes known, to the public.

      11.   SURVIVAL  OF  REPRESENTATIONS  AND  WARRANTIES.   All  agreements,
representations  and warranties  contained  herein shall survive the execution
and  delivery  of  this   Agreement  and  the  closing  of  the   transactions
contemplated hereby.

      12. EXPENSES. Company shall pay at the closing all legal and other
out-of-pocket costs incurred by Purchaser with respect to the transaction (in an
aggregate amount not to exceed $30,000), including the reasonable costs and
expenses of Stinson, Mag & Fizzell, P.C. legal counsel representing Purchaser,
in connection with the review of this Agreement and the closing of the
transactions contemplated hereby. If the transaction contemplated herein does
not close, Company shall only be obligated to pay such expenses if the failure
to close is (i) due to the decision by the Company not to proceed, or (ii) due
to the decision by the Purchaser not to proceed if, and only if, the Company
failed to perform a condition of Closing as provided in this Agreement. Upon
receipt of the payment described in the foregoing sentence, Purchaser shall have
no other rights or claims against Company hereunder.

      13. NOTICES. All notices, requests, consents, and other communications
under this Agreement shall be in writing and shall be delivered by hand or
mailed by first class certified or registered mail, return receipt requested,
postage prepaid, or by facsimile, receipt confirmed:

      If to Purchaser,  at 233 West 47th Street,  Kansas City, Missouri 64112,
      facsimile  number (816)  960-1777,  Attention:  David J. Schulte,  or at
      such other  address or  facsimile  number as may have been  furnished to
      Company in writing by Purchaser with a copy to: Stinson,  Mag & Fizzell,
      P.C., 1201 Walnut,  Suite 2800, Kansas City, Missouri 64141,  Attention:
      Lynn Snelgrove, Esq.

      If to Company, at 11300 West 89th Street,  Overland Park, Kansas,  66214
      facsimile number (913) 492-0861,  Attention:  Keith S. Cowan, or at such
      other  address  or  facsimile

                                      -16-
<PAGE>

     number as may have been furnished to Purchaser in writing by Company, with
     a copy to: Blackwell Sanders Peper Martin LLP, 2300 Main Street, Suite
     1000, Kansas City, Missouri 64108, Attention: Steven F. Carman, Esq.; and

Notices provided in accordance with this Section 13 shall be deemed delivered
upon personal delivery, three days after deposit in the mail, or upon facsimile
delivery.

      14. BROKERS. Each of Company and Purchaser (a) represents and warrants to
the other parties hereto that it has retained no finder or broker in connection
with the transactions contemplated by this Agreement and (b) will indemnify and
save the other party harmless from and against any and all claims, liabilities,
or obligations with respect to consulting fees or brokerage or finders' fees or
commissions in connection with the transactions contemplated by this Agreement
asserted by any person on the basis of any statement or representation alleged
to have been made by such indemnifying party.

      15. COMPLIANCE AND FURTHER ASSURANCES. Each party to this Agreement agrees
to execute and deliver, or cause to be executed and delivered, all certificates,
instruments, agreements, and other documents contemplated to be executed and
delivered on or before the Closing Date and such other documents and instruments
as may be requested by such other party to consummate the transactions
contemplated by this Agreement.

      16.   INDEMNIFICATION.

            16.1 INDEMNIFICATION BY THE COMPANY. The Company hereby indemnifies
and holds harmless, for a period of eighteen (18) months from the date hereof,
the Purchaser, its officers, directors, agents, attorneys, and affiliates, and
their respective successors and assigns, from and against any loss, damage, or
expense (including reasonable attorneys' fees) caused by or arising out of:

                  (a) any breach or default in the performance by the Company of
any covenant or agreement of the Company contained in this Agreement or in any
agreement executed in conjunction herewith or transaction contemplated hereby;

                  (b) any breach of any representation or warranty made by the
Company herein, in any Exhibit hereto, or in any certificate or other instrument
delivered by the Company pursuant hereto; or

                  (c) any liability arising out of any and all actions, suits,
proceedings, claims, demands, judgments, costs and expenses (including
reasonable legal and accounting fees) incident to any of the foregoing.

            16.2 INDEMNIFICATION BY PURCHASER. The Purchaser hereby indemnifies
and holds harmless, for a period of eighteen (18) months from the date hereof,
the Company, its officers, directors, agents, attorneys and affiliates, and
their respective successors and assigns from and against any loss, damage, or
expense (including reasonable attorneys' fees) caused by or arising out of:

                                      -17-
<PAGE>

                  (a) any breach of any representation or warranty made by the
Purchaser herein, in any Exhibit hereto, or in any certificate or other
instrument delivered by the Purchaser pursuant hereto; or

                  (b) any liability arising out of any and all actions, suits,
proceedings, claims, demands, judgments, costs and expenses (including
reasonable legal and accounting fees) incident to the foregoing.

            16.3 CONDITIONS OF INDEMNIFICATION. The respective obligations and
liabilities of the Company and the Purchaser to the other under Sections 16.1
and 16.2 hereof with respect to claims resulting from the assertion of liability
by third parties shall be subject to the following terms and conditions:

                  (a) within 10 days (or such earlier time as might be required
to avoid prejudicing the indemnifying party's position) after receipt of notice
of commencement of any action evidenced by service of process or other legal
pleading, or with reasonable promptness after the assertion in writing of any
claim by a third party, the party to be indemnified shall give the indemnifying
party written notice thereof together with a copy of such claim, process, or
other legal pleading, and the indemnifying party shall have the right to
undertake the defense thereof by representatives of its own choosing and at its
own expense; provided, however, that the party to be indemnified may participate
in the defense with counsel of its own choice and at its own expense.

                  (b) in the event that the indemnifying party, by the 30th day
after receipt of notice of any such claim (or, if earlier, by the 10th day
preceding the day on which an answer or other pleading must be served in order
to prevent judgment by default in favor of the person asserting such claim),
does not elect to defend against such claim, the party to be indemnified will
(upon further notice to the indemnifying party) have the right to undertake the
defense, compromise or settlement of such claim on behalf of and for the account
and risk of the indemnifying party and at the indemnifying party's expense,
subject to the right of other indemnifying party to assume the defense of such
claims at any time prior to settlement, compromise or final determination
thereof.

                  (c) anything in this Section 16.3 to the contrary
notwithstanding, the indemnifying party shall not settle any claim without the
consent of the party to be indemnified unless such settlement involves only the
payment of money and the claimant provides to the party to be indemnified a
release from all liability in respect of such claim. If the settlement of the
claim involves more than the payment of money, the indemnifying party shall not
settle the claim without the prior consent of the party to be indemnified, which
consent shall not be unreasonably withheld.

                  (d) the party to be indemnified and the indemnifying party
will each cooperate with all reasonable requests of the other.

      17.   ENTIRE  AGREEMENT.  This Agreement  embodies the entire  agreement
and  understanding  between  the parties  hereto  with  respect to the subject
matter hereof and supersedes all prior agreements and understandings  relating
to such subject matter.

                                      -18-
<PAGE>

      18. AMENDMENTS AND WAIVERS. This Agreement may only be amended and the
observance of any term of this Agreement may only be waived (either generally or
in a particular instance and either retroactively or prospectively) with the
written consent of the parties hereto. Any amendment or waiver effected in
accordance with this Section 18 shall be binding upon each holder of any
Securities (including shares of Common Stock into which such Securities have
been converted), each future holder of all such securities, and Company. No
waivers of or exceptions to any term, condition, or provision of this Agreement,
in any one or more instances, shall be deemed to be, or construed as, a further
or continuing waiver of any such term, condition, or provision.

      19.   COUNTERPARTS.   This   Agreement   may  be   executed  in  several
counterparts,  each of which  shall be  deemed an  original,  but all of which
together shall constitute one and the same instrument.

      20.   HEADINGS;  EXHIBITS.  The headings of the  sections,  subsections,
and  paragraphs of this  Agreement  have been added for  convenience  only and
shall not be  deemed to be a part of this  Agreement.  The  exhibits  attached
hereto are  incorporated  herein by reference  and are part and parcel of this
Agreement.

      21. SEVERABILITY. If any provision of this Agreement or the application
thereof to any person or circumstance shall be invalid or unenforceable to any
extent, the remainder of this Agreement and the application of such provisions
to other persons or circumstances shall not be affected thereby and shall be
enforced to the greatest extent permitted by law.

      22. EQUITABLE REMEDIES. The rights and remedies of any of the parties
hereto shall not be mutually exclusive (i.e., the exercise of one or more of the
provisions hereof shall not preclude the exercise of any other provision
hereof). Each party acknowledges and confirms that its breach or threatened
breach of this Agreement may cause irreparable injury to the one or more of the
other parties for which damages at law (i.e., monetary damages) may be an
inadequate remedy and agrees that, in such event, the respective rights and
obligations hereunder shall be enforceable by specific performance, injunction,
or other equitable remedy; provided, however, that nothing herein contained is
intended to, nor shall it, limit or affect any right or rights at law or by
statute or otherwise of any party aggrieved as against the other for a breach or
threatened breach of any provision hereof, it being the intention hereof to make
clear the agreement of the parties that the respective rights and obligations of
the parties hereunder shall be enforceable in equity as well as at law or
otherwise.

      23.   INTERPRETATION.

            23.1 DIRECTLY OR INDIRECTLY. Any provision of this Agreement which
refers to an action which may be taken by a party hereto, or which a party
hereto is prohibited from taking, shall include any such action taken directly
or indirectly by or on behalf of such party, including by or on behalf of any
affiliate or agent of such party.

            23.2  NO  PRESUMPTION.  In the  event  any claim is made by either
party  hereto  relating  to any  conflict,  omission,  or  ambiguity  in  this
Agreement, no presumption or burden of

                                      -19-
<PAGE>

proof or persuasion shall be implied by virtue of the fact that this Agreement
was prepared by or at the request of a particular party or its counsel.

            23.3 REFERENCES TO THIS AGREEMENT. References to numbered or
lettered articles, sections, and subsections refer to articles, sections and
subsections, respectively, of this Agreement unless otherwise expressly stated.

            23.4 PERSON. Except as otherwise expressly provided in this
Agreement, all references to the word "person" in this Agreement include
individuals, partnerships, corporations, limited liability companies, trusts,
and any other legal entities or associations.

      24. GOVERNING LAW. This Agreement, the rights and obligations of the
parties hereto and their successors and assigns hereunder, shall be interpreted,
construed, and enforced in accordance with the laws of the State of Kansas,
excluding any conflict-of-laws rule or principle that might refer the governance
or construction of this Agreement to the law of another jurisdiction.

      IN WITNESS WHEREOF, the undersigned have hereunto set their hands as of
the day and year first above written.

                                    COMPANY:

                                    AIRPORT SYSTEMS INTERNATIONAL, INC.

                                    By:________________________________
                                          Keith S. Cowan
                                          President

                                   PURCHASER:

                                   KCEP VENTURES II, L.P.

                                   By:   KCEP II, L.C., its General Partner

                                   By:________________________________
                                        Name:  David J. Schulte
                                        Title: Managing Director

                                      -20-
<PAGE>

                                    EXHIBIT A

                       CONVERTIBLE SUBORDINATED DEBENTURE

                                      -21-
<PAGE>

                                    EXHIBIT B

                                     WARRANT

                                      -22-
<PAGE>

                                    EXHIBIT C

                                ACQUISITION PLAN

                                      -23-
<PAGE>

                                    EXHIBIT D

                                  LEGAL OPINION

                                      -24-
<PAGE>

                                    EXHIBIT E

                           INVESTOR'S RIGHTS AGREEMENT

                                      -25-

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