Document:

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               AMENDED AND RESTATED LIMITED LIABILITY COMPANY
                               OPERATING AGREEMENT

                                       of

                               IDT HOLDING, L.L.C.

                           Dated as of December 10, 1999

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                                TABLE OF CONTENTS

<Table>
<Caption>

                                                                            PAGE
<S>                                                                         <C>
ARTICLE I      DEFINITIONS...................................................1

ARTICLE II     FORMATION.....................................................6

ARTICLE III    CLASSES OF MEMBERSHIP, CONTRIBUTIONS AND CAPITAL
               ACCOUNTS......................................................7

ARTICLE IV     ALLOCATIONS AND DISTRIBUTIONS.................................8

ARTICLE V      RIGHTS AND DUTIES OF MEMBERS.................................13

ARTICLE VI     INDEMNIFICATION OF MEMBERS...................................15

ARTICLE VII    MANAGEMENT...................................................16

ARTICLE VIII   DISPOSITION OF MEMBERSHIP INTERESTS; OTHER RIGHTS............17

ARTICLE IX     ACCOUNTING AND RECORDS; CERTAIN TAX MATTERS..................20

ARTICLE X      WITHDRAWALS; ACTION FOR PARTITION; BREACHES..................21

ARTICLE XI     DISSOLUTION AND WINDING UP...................................22

ARTICLE XII    AMENDMENT....................................................23

Article XIII   MISCELLANEOUS PROVISIONS.....................................23
</Table>

                                      -i-
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     Amended and Restated Limited Liability Company Operating Agreement

                                       of

                               IDT Holding, L.L.C.

            This Amended and Restated Limited Liability Company Operating
Agreement of IDT Holding, L.L.C. (the "COMPANY"), a limited liability company
organized pursuant to the Delaware Limited Liability Company Act (the "ACT"), is
entered into and shall be effective as of December 10, 1999, by and among The
Veritas Capital Fund, L.P., a Delaware limited partnership ("VERITAS"), those
employees of PEI Electronics , Inc., a Delaware corporation ("PEI"), listed on
the signature page hereof and on SCHEDULE A and SCHEDULE B hereto (the "PEI
EMPLOYEES") and those employees of Sierra Tech., Inc., a Delaware corporation
("Sierra"), listed on the signature page hereof and on SCHEDULE A and SCHEDULE B
hereto (the "SIERRA EMPLOYEES").

            WHEREAS, pursuant to the Limited Liability Company Operating
Agreement, dated as of August 6, 1999 (the "EXISTING OPERATING AGREEMENT"),
among Veritas and certain named employees of PEI (collectively, the "ORIGINAL
MEMBERS"), the Company was originally formed; and

            WHEREAS, the Original Members desire to admit Additional Members
upon the terms and conditions set forth herein;

            NOW, THEREFORE, in consideration of the mutual terms, covenants and
conditions contained herein, the parties hereby agree that the Existing
Operating Agreement is hereby amended and restated in its entirety as follows:

                                    ARTICLE I

                                   DEFINITIONS

            For purposes of this Agreement unless the context clearly indicates
otherwise, the following terms shall have the following meanings:

            "ACT" is defined in the Preamble.

            "ADJUSTED INVESTED CAPITAL" means at any time the sum of all amounts
paid by any Class A Member in consideration for Integrated Defense Technologies
Shares plus any additional Capital Contribution made by such Class A Member,
less all distributions made up to the time of reference to such Class A Member
pursuant to SECTION 4.4(b).

            "ADDITIONAL MEMBERS" means those Persons admitted as Members of the
Company pursuant to SECTION 3.3.

            "AFFILIATE" means, with respect to any Person, any Person directly
or indirectly controlling, controlled by or under common control with such
Person.

<Page>

            "AGREEMENT" means this Amended and Restated Limited Liability
Company Operating Agreement, as originally executed and as amended from time to
time, as the context requires. Words such as "herein", "hereinafter", "hereto",
"hereby" and "hereunder", when used with reference to this Agreement, refer to
this Agreement as a whole, unless the context otherwise requires.

            "AVAILABLE CASH" means the gross cash proceeds of the Company from
all sources less all amounts used to pay or establish reserves for all Company
expenses, all as determined by the Manager. "Available Cash" shall not be
reduced by depreciation, amortization, cost recovery deductions or similar
allowances, but shall be increased by any reductions of reserves previously
established pursuant to the first sentence of this definition.

            "BANKRUPTCY" means, with respect to a Person, the occurrence of any
of the following events: (a) the filing by that Person of a petition commencing
a voluntary case in bankruptcy under applicable bankruptcy laws; (b) entry
against that Person of an order for relief under applicable bankruptcy laws; (c)
written admission by that Person of its inability to pay its debts as they
mature, or an assignment by that Person for the benefit of creditors; or (d)
appointment of a receiver for the property or affairs of that Person.

            "BUSINESS DAY" means each day of the calendar year other than days
on which banks are required or authorized to close in the State of Delaware.

            "CAPITAL ACCOUNT" means the account maintained for a Member
determined in accordance with ARTICLE III.

            "CAPITAL CONTRIBUTION" means the amount of capital to be contributed
by the Members to the Company as set forth on SCHEDULE A or SCHEDULE B, as the
case may be, as may be modified or supplemented from time to time.

            "CERTIFICATE OF FORMATION" means the document filed with the
Secretary of State of Delaware and through which the Company is formed and any
duly authorized, executed and filed amendments or restatements thereof.

            "CHANGE OF CONTROL" is defined in SECTION 4.2(b).

            "CLASS A MEMBER" means a Member identified on SCHEDULE A at the time
of reference.

            "CLASS A MEMBERSHIP INTEREST" means each Class A Membership Interest
described in SECTION 3.1.

            "CLASS A PERCENTAGE INTEREST" means, with respect to any Class A
Member, the percentage interest set forth opposite such Class A Member's name on
SCHEDULE A, as it may be modified or supplemented from time to time.

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            "CLASS B MEMBER" means a Member identified on SCHEDULE B at the time
of reference.

            "CLASS B MEMBERSHIP INTEREST" means each Class B Membership Interest
described in SECTION 3.1.

            "CLASS B PERCENTAGE INTEREST" means, with respect to any Class B
Member, the percentage interest set forth opposite such Class B Member's name on
SCHEDULE B, as it may be modified or supplemented from time to time.

            "CODE" means the Internal Revenue Code of 1986, as amended from time
to time (or any corresponding provisions of succeeding law).

            "COMPANY" is defined in the Preamble.

            "DISTRIBUTION" means a transfer of property to a Member on account
of a Membership Interest as described in ARTICLE IV.

            "EXISTING OPERATING AGREEMENT" is defined in the Preamble.

            "FAIR MARKET VALUE" is defined in SECTION 8.4(b).

            "FISCAL YEAR" means the fiscal year of the Company, as determined by
the Manager.

            "INTEGRATED DEFENSE TECHNOLOGIES" means Integrated Defense
Technologies, Inc., a Delaware corporation and the holder of all of the issued
and outstanding shares of capital stock of PEI and Sierra.

            "INTEGRATED DEFENSE TECHNOLOGIES SHARES" means shares of common
stock, par value $.01 per share, of Integrated Defense Technologies.

            "INVESTED CAPITAL" means the amount paid by any Class A Member in
consideration for Integrated Defense Technologies Shares plus any additional
Capital Contribution made by such Class A Member.

            "INVESTED CAPITAL CONTRIBUTION DATE" means the date any Class A
Member made a contribution of Invested Capital.

            "MANAGER" means the Member that will have the authority and powers
set forth in ARTICLE VII.

            "MEMBER" means each Person who is a Class A Member or a Class B
Member.

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            "MEMBERSHIP INTEREST" means the rights of a Member in Distributions
(liquidating or otherwise) and allocations of the profits, losses, gains,
deductions, and credits of the Company.

            "NET PROFITS" - and "NET LOSS" means, for each Fiscal Year or other
period, an amount equal to the Company's taxable income or loss for such year or
period, determined in accordance with Code Section 703(a) (for this purpose, all
items of income, gain, loss or deduction required to be stated separately
pursuant to Code Section 703(a)(1) shall be included in taxable income or loss),
with the following adjustments:

            (a) any income of the Company that is exempt from federal income tax
      not otherwise taken into account in computing Net Profits or Net Loss
      shall be added to such taxable income or loss; and

            (b) any expenditures of the Company described in Code Section
      705(b)(2)(B) or treated as Code Section 705(b)(2)(B) expenditures pursuant
      to Regulations Section 1.704-1(b)(2)(iv)(i) and not otherwise taken into
      account in computing Net Profits or Net Loss shall be subtracted from such
      taxable income or loss.

            "ORIGINAL MEMBERS" is defined in the Preamble.

            "PEI" is defined in the Preamble.

            "PEI CLASS B MEMBER" means a Class B Member employed by PEI.

            "PEI EMPLOYEES" is defined in the Preamble.

            "PEI REDUCTION PERCENTAGE" is defined in SECTION 4.2(a).

            "PEI EMPLOYMENT DATE" is defined in SECTION 4.2(a).

            "PEI TERMINATION DATE" is defined in SECTION 4.2(a).

            "PERCENTAGE INTEREST" means, with respect to any Member, the total
percentage interest set forth opposite each Member's name on SCHEDULE A or
SCHEDULE B as the case may be, as it may be modified or supplemented from time
to time.

            "PERMITTED TRANSFEREE" is defined in SECTION 8.1.

            "PERSON" means an individual, trust, estate, or any
incorporated or unincorporated organization permitted to be a member of a
limited liability company under the laws of the State of Delaware.

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            "PRIORITY RETURN" means a sum sufficient to result in a pre-tax 15%
per annum internal rate of return (compounded annually) on the Adjusted Invested
Capital of the Class A Members. Such rate of return shall be calculated
commencing from the Invested Capital Contribution Date.

            "PROCEEDING" means any administrative, judicial, or adversary
proceeding, including, without limitation, litigation, arbitration,
administrative adjudication, mediation, and appeal or review of any of the
foregoing.

            "PROPERTY" means all of the assets of the Company, both tangible and
intangible or any portion thereof.

            "REGULATIONS" means, except where the context indicates otherwise,
the permanent, temporary, proposed, or proposed and temporary regulations of the
Department of the Treasury under the Code, as such regulations may be lawfully
changed from time to time (including corresponding provisions of succeeding
regulations).

            "RULE 144" is defined in SECTION 5.2(i).

            "SALE TRANSACTION" is defined in SECTION 8.2.

            "SECURITIES ACT" means the Securities Act of 1933, as amended.

            "SIERRA" is defined in the Preamble.

            "SIERRA CLASS B MEMBER" means a Class B Member employed by Sierra.

            "SIERRA EMPLOYEES" is defined in the Preamble.

            "SIERRA REDUCTION PERCENTAGE" is defined in SECTION 4.2(B).

            "SIERRA EMPLOYMENT DATE" is defined in SECTION 4.2(B).

            "SIERRA TERMINATION DATE" is defined in SECTION 4.2(B).

            "SUBSIDIARY" means, with respect to any Person, a corporation or
other entity of which more than 50% of the voting power of the voting equity
securities or equity interest is owned, directly or indirectly, by such Person.
Unless otherwise qualified, all references to a "Subsidiary" or to
"Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of
Integrated Defense Technologies.

            "TRANSFER" means, as a noun, any voluntary or involuntary transfer,
sale, or other disposition and, as a verb, voluntarily or involuntarily to sell,
assign, transfer, grant, give away, hypothecate, pledge or otherwise dispose of
and shall include any transfer by will, gift or intestate succession.

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            "VERITAS" is defined in the Preamble.

                                   ARTICLE II

                                    FORMATION

            This Limited Liability Company Operating Agreement of IDT Holding,
L.L.C., is entered into and shall be effective as of the date first above
written by and among the Members set forth on the signature pages hereof,
pursuant to the provisions of the Act, on the following terms and conditions:

      2.1 ORGANIZATION. The Members hereby organize the Company as a Delaware
limited liability company pursuant to the provisions of the Act.

      2.2 NAME. The name of the Company is "IDT Holding, L.L.C.". All business
conducted in the State of Delaware shall be conducted under such name. All
business of the Company shall be conducted under that name or under any other
name, but in any case, only to the extent permitted by applicable law. The
Company shall hold all of its property in the name of the Company and not in the
name of any Member.

      2.3 TERM. The Company shall be dissolved and its affairs wound up in
accordance with the Act and this Agreement on December 31, 2020, unless the
Company shall be sooner dissolved and its affairs wound up in accordance with
the Act or this Agreement.

      2.4 REGISTERED AGENT AND OFFICE. The registered agent for the service of
process and the registered office shall be that Person and location reflected in
the Certificate of Formation as filed in the office of the Secretary of State of
Delaware. The Company may, from time to time, change the registered agent or
office through appropriate filings with the Secretary of State. In the event the
registered agent ceases to act as such for any reason or the registered office
shall change, the Company shall promptly designate a replacement registered
agent or file a notice of change of address, as the case may be.

      2.5 PRINCIPAL OFFICE. The principal office of the Company shall be located
c/o Veritas at 660 Madison Avenue, New York, New York 10021, or at such other
place as may be determined by Veritas. The Company may also have such other
offices as the Veritas may determine.

      2.6 PURPOSE. The purpose of the Company is to hold Integrated Defense
Technologies Shares and to engage in any and all lawful businesses and in all
activities necessary, customary, convenient, or incidental to any of the
foregoing.

      2.7 STATUTORY COMPLIANCE. The Company shall exist under and be governed
by, and this Agreement shall be construed in accordance with, the applicable
laws of the State of Delaware. The Members shall make all filings and
disclosures required by, and shall otherwise

                                      -6-
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comply with, all such laws. The Members shall execute and file in the
appropriate records any assumed or fictitious name certificates and other
documents and instruments as may be necessary or appropriate with respect to the
formation of, and conduct of business by, the Company.

      2.8 TITLE TO PROPERTY. All real and personal property owned by the Company
shall be owned by the Company as an entity and no Member shall have any
ownership interest in such property in its individual name or right, and each
Member's interest in the Company shall be deemed personal property for all
purposes. Except as otherwise provided in this Agreement, the Company shall hold
all of its real and personal property in the name of the Company and not in the
name of any Member.

      2.9 PAYMENTS OF INDIVIDUAL OBLIGATIONS. The Company's credit and assets
shall be used solely for the benefit of the Company, and no asset of the Company
shall be transferred or encumbered for or in payment of any individual
obligation of a Member.

                                   ARTICLE III

         CLASSES OF MEMBERSHIP, CONTRIBUTIONS AND CAPITAL ACCOUNTS

      3.1 TWO CLASS OF MEMBERSHIP INTEREST. The Company shall have two classes
of Membership Interests, Class A Membership Interests and Class B Membership
Interests. Each of the Class A Membership Interests and Class B Membership
Interests shall have identical rights, obligations and privileges, except as
otherwise provided in this Agreement.

      3.2 CONTRIBUTIONS. The names, addresses, Capital Contributions and Class A
Percentage Interests of the Class A Members are set forth on SCHEDULE A. The
names, addresses, Capital Contributions and Class B Percentage Interests of the
Class B Members are set forth on SCHEDULE B.

      3.3 ADDITIONAL MEMBERS. Following formation, the Company may admit one or
more Additional Members from time to time. The Capital Contributions and
Percentage Interests of any Additional Members shall be determined by the
Manager. Upon the admission to the Company of any Additional Members who are
allocated Membership Interests, the Membership Interests of the other Members
shall be reduced accordingly on a PRO RATA basis. SCHEDULE A and SCHEDULE B
shall be amended from time to time in accordance with the foregoing provisions
of this SECTION 3.3 effective as of the effective date of the admission of an
Additional Member to the Company. As a condition to being admitted to the
Company, each Additional Member shall execute an agreement to be bound by the
terms and conditions of this Agreement. In no event shall the aggregate Class B
Percentage Interests exceed 7.5%.

      3.4 MAINTENANCE OF CAPITAL ACCOUNTS. The Company shall establish and
maintain Capital Accounts for each Member. Each Member's Capital Account shall
be increased by (i) the amount of any money actually contributed by the Member
to the capital of the Company, (ii) the fair market value of any property
contributed by the Member, as determined by the Company

                                      -7-
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and the contributing Member at arm's length at the time of contribution (net of
liabilities assumed by the Company or subject to which the Company takes such
property), and (iii) the Member's share of Net Profits. Each Member's Capital
Account shall be decreased by (i) the amount of any money actually distributed
to the Member from the capital of the Company, (ii) the fair market value of any
property distributed to the Member, as determined by the Company and the
contributing Member at arm's length at the time of distribution (net of
liabilities of the Company assumed by the Member or subject to which the Member
takes such property), and (iii) the Member's share of Net Loss.

            The foregoing provisions and the other provisions of this Agreement
relating to the maintenance of Capital Accounts are intended to comply with
Regulations Section 1.704-1(b), and shall be interpreted and applied in a manner
consistent with such Regulations and any amendment or successor provision
thereto.

      3.5 ADDITIONAL CAPITAL CONTRIBUTIONS. Other than contributions by
Additional Members, no Member shall be required to make any Capital
Contributions to the Company in excess of the amounts set forth in SCHEDULE A
and SCHEDULE B without the unanimous consent of all of the Members.

      3.6 TRANSFERS OF MEMBERSHIP INTERESTS. In the event any Member Transfers
any Membership Interest in accordance with the terms of this Agreement, the
transferee shall succeed to the Capital Account, Capital Contributions, Invested
Capital and Adjusted Invested Capital of the transferor to the extent it relates
to the transferred Interest.

      3.7   OTHER MATTERS.

      (a) Except as otherwise provided in this Agreement, no Member shall demand
or receive a return of his Capital Contributions or withdraw from the Company.
No Member shall have the right to withdraw any part of his Capital Contributions
from the Company prior to its liquidation and termination, unless such
withdrawal is permitted under this Agreement.

      (b) No Member shall receive any interest, salary, or drawing with respect
to his Capital Contributions or his Capital Account or for services rendered on
behalf of the Company or otherwise in his capacity as a Member, except as
otherwise provided in this Agreement or agreed to by the Members.

                                   ARTICLE IV

                          ALLOCATIONS AND DISTRIBUTIONS

      4.1 ALLOCATION OF NET PROFITS AND NET LOSS OF THE COMPANY. Net Profits and
Net Loss of the Company in each Fiscal Year shall be allocated to the Members as
follows:

      (a)  NET PROFITS.  Net Profits shall be allocated among the Members
as follows:

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                (i) first to offset any Net Loss allocated to a Member,

                (ii)next to the Class A Members PRO RATA in accordance with
           their respective Class A Percentage Interests in an amount equal to
           their Priority Return,

                (iii) next to the Class B Members PRO RATA in accordance with
           their respective Class B Percentage Interests in an amount equal to
           the quotient of (A) the aggregate Class B Percentage Interests and
           (B) 100%, times the Priority Return allocated under SECTION
           4.1(A)(II) and

                (iv)thereafter among the Members PRO RATA in accordance with
           their respective Percentage Interests.

      (b)  NET LOSS.  Net Loss shall be allocated in proportion to the
Members' positive Capital Account balances.

      4.2 REDUCTION OF CLASS B PERCENTAGE INTERESTS. (a) Subject to SECTION
4.2(C), in the event that prior to November 1, 2003 or the fifth anniversary of
the date the subject PEI Class B Member was employed by PEI (the "PEI EMPLOYMENT
DATE"), whichever is later, the employment of a PEI Class B Member by Integrated
Defense Technologies or any of its Subsidiaries on a full time basis terminates
for any reason, then as of the date of such termination of employment (the "PEI
TERMINATION DATE"), the Class B Percentage Interest of such PEI Class B Member
shall be reduced by the following percentage (the "PEI REDUCTION PERCENTAGE"):

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<Table>
<Caption>

                  PEI Termination Date                                 PEI Reduction Percentage
                  --------------------                                 ------------------------
<S>                                                                    <C>
                  Prior to November 1, 1999 or the first
                     anniversary of the PEI Employment
                     Date, whichever is later...................................100%
                  After October 31, 1999 or the first anniversary of the PEI
                     Employment Date, whichever is later, but prior to November
                     1, 2000 or the second anniversary of the PEI Employment
                     Date, whichever is later....................................80%
                  After October 31, 2000 or the second anniversary of the PEI
                     Employment Date, whichever is later, but prior to November
                     1, 2001 or the third anniversary of the PEI Employment
                     Date, whichever is later....................................60%
                  After October 31, 2001 or the third anniversary of the PEI
                     Employment Date, whichever is later, but prior to November
                     1, 2002 or the fourth anniversary of the PEI Employment
                     Date, whichever is later....................................40%
                  After October 31, 2002 or the fourth anniversary of the PEI
                     Employment Date, whichever is later, but prior to November
                     1, 2003 or the fifth anniversary of the PEI Employment
                     Date, whichever is later....................................20%
                  After October 31, 2003 or the fifth
                     anniversary of the PEI Employment
                     Date, whichever is later.....................................0%
</Table>

      By way of example, if a PEI Class B Member whose EPI Employment Date was
prior to November 1, 1998 were to terminate his employment with Integrated
Defense Technologies or any of its Subsidiaries on December 31, 2001, his Class
B Percentage Interest would be reduced by 40%.

      (b) Subject to SECTION 4.2(c), in the event that prior to August 7, 2004
or the fifth anniversary of the date the subject Sierra Class B Member was
employed by Sierra (the "SIERRA EMPLOYMENT DATE"), whichever is later, the
employment of a Sierra Class B Member by Integrated Defense Technologies or any
of its Subsidiaries on a full time basis terminates for any reason, then as of
the date of such termination of employment (the "SIERRA TERMINATION DATE"),

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the Class B Percentage Interest of such Sierra Class B Member shall be reduced
by the following percentage (the "SIERRA REDUCTION PERCENTAGE"):

<Table>
<Caption>

                  Sierra Termination Date                              Sierra Reduction Percentage
                  -----------------------                              ---------------------------

<S>                                                                    <C>
                  Prior to August 7, 2000 or the first
                     anniversary of the Sierra Employment
                     Date, whichever is later ..................................100%
                  After August 6, 2000 or the first anniversary of the Sierra
                     Employment Date, whichever is later, but prior to August 7,
                     2001 or the second anniversary of the Sierra Employment
                     Date, whichever is later................................... 80%
                  After August 6, 2001 or the second anniversary of the Sierra
                     Employment Date, whichever is later, but prior to August 7,
                     2002 or the third anniversary of the Sierra Employment
                     Date, whichever is later................................... 60%
                  After August 6, 2002 or the third anniversary
                     of the Sierra Employment Date, whichever
                     is later, but prior to August 7, 2003 or the
                     fourth anniversary of the Sierra Employment
                     Date, whichever is later................................... 40%
                  After August 6, 2003 or the fourth anniversary of the Sierra
                     Employment Date, whichever is later, but prior to August 7,
                     2004 or the fifth anniversary of the Sierra Employment
                     Date, whichever is later................................... 20%
                  After August 6, 2004 or the fifth
                     anniversary of the Sierra Employment
                     Date, whichever is later...................................  0%
</Table>

      By way of example, if a Sierra Class B Member whose Sierra Employment Date
was prior to August 7, 1999 were to terminate his employment with Integrated
Defense Technologies or any of its Subsidiaries on December 31, 2002, his Class
B Percentage Interest would be reduced by 40%

                                      -11-
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      (c) Upon a Change of Control, the PEI Reduction Percentage and the Sierra
Reduction Percentage shall be 0%. For purposes of this agreement, "CHANGE OF
CONTROL" means the occurrence of any of the following events:

                  (i)   Veritas ceases to be the owner of a majority of
            the outstanding Percentage Interests;

                  (ii) Integrated Defense Technologies ceases to be the record
            or beneficial owner (as such term is defined in Rules 13d-3 and
            13d-5 under the Securities Exchange Act of 1934, as amended) of a
            majority in the aggregate of the total voting power of all classes
            of capital stock of PEI and Sierra then outstanding and normally
            entitled to vote on the election of directors; or

                  (iii) the sale of all or substantially all of the assets of
            PEI and Sierra to a third party not Affiliated with Veritas.

      (d) Upon a reduction in the Class B Percentage Interest of a Class B
Member in accordance with SECTION 4.2(a) or SECTION 4.2(b), the portion of such
Class B Member's Class B Percentage Interest which is so reduced shall be
allocated to the Class A Members in proportion to their respective Class A
Percentage Interests. In the event of such reduction, such Class B Member shall
be entitled to no payment whatsoever as compensation for such reduction in his
or her Class B Percentage Interest.

      4.3   AVAILABLE CASH.  Any distributions of Available Cash shall be
made as soon as practicable following the receipt thereof by the Company.

      4.4   DISTRIBUTIONS.  Available Cash shall be distributed to the
Members as follows:

      (a) FIRST, to the Class A Members in proportion to their unpaid Priority
Returns until such time as they have received cumulative distributions under
this SECTION 4.4 equal to their Priority Return;

      (b) SECOND, to the Class A Members in proportion to their unreturned
Invested Capital until such time as they have received cumulative distributions
under this SECTION 4.4 equal to all of their Invested Capital;

      (c) THIRD to the Class B Members PRO RATA in accordance with their
respective Class B Percentage Interests until such time as they have received an
amount equal to the sum allocated under SECTION 4.1(a)(iii); and

      (d) THEREAFTER, to the Members PRO RATA in accordance with their
respective Percentages Interests.

                                      -12-
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      4.5 AMOUNTS WITHHELD. All amounts withheld pursuant to the Code or any
provision of any state or local tax law with respect to any payment,
distribution or allocation to the Company or the Members shall be treated as
amounts distributed to the Members pursuant to this Section for all purposes
under this Agreement. The Company is authorized to withhold from distributions,
or with respect to allocations, to the Members and to pay over to any federal,
state, or local government any amounts required to be so withheld pursuant to
the Code or any provisions of any other federal, state or local law and shall
allocate such amounts to the Members with respect to which such amount was
withheld.

                                    ARTICLE V

                          RIGHTS AND DUTIES OF MEMBERS

      5.1 LIABILITY OF MEMBERS. No Member shall be liable as such for the
liabilities of the Company. The failure of the Company to observe any
formalities or requirements relating to the exercise of its powers or management
of its business or affairs under this Agreement or the Act shall not be grounds
for imposing personal liability on the Members for liabilities of the Company.

      5.2   REPRESENTATIONS AND WARRANTIES.  As of the date of this
Agreement, each of the Members hereby represents and warrants to each of
the other Members and the Company as follows:

      (a) The Membership Interest being acquired by such Member is being
purchased for such Member's own account and not with a view to, or for sale in
connection with, any distribution or public offering thereof within the meaning
of the Securities Act or any applicable state securities laws. Such Member
understands that his, her or its Membership Interest has not been registered
under the Securities Act or any state securities laws by reason of their
contemplated issuance in transactions exempt from the registration and
prospectus delivery requirements thereof and that the reliance of the Company
and others upon such exemptions is predicated in part by the representations and
warranties of such Member contained herein. No other Person has any right with
respect to or interest in the Membership Interest acquired by such Member, nor
has such Member agreed to give any Person any such interest or right in the
future.

      (b) Such Member has the requisite power and authority (whether corporate
or otherwise) and legal capacity to enter into, and to carry out his, her or its
obligations under, this Agreement. The execution and delivery by such Member of
this Agreement and the consummation by such Member of the transactions
contemplated hereby have been duly authorized by all necessary action (corporate
or otherwise) on the part of such Member.

      (c) This Agreement has been duly executed and delivered by such Member and
constitutes a valid and binding obligation enforceable against such Member in
accordance with its terms.

                                      -13-
<Page>

      (d) Such Member is not subject to, or obligated under, any provision of
(i) any agreement, contracts, arrangement or understanding, (ii) any license,
franchise or permit, or (iii) any law, regulation, order, judgment or decree,
that would be breached or violated, or in respect of which a right of
termination or acceleration or any encumbrance or other lien on any of such
Member's assets would be created, by such Member's execution, delivery and
performance of this Agreement or the consummation of the transactions
contemplated hereby.

      (e) No authorization, consent or approval of, waiver or exemption by, or
filing or registration with, any public body, court or other governmental
authority or any other third party is necessary on such Member's part for the
consummation of the transactions contemplated by this Agreement that has not
previously been obtained by such Member.

      (f) No Person has or will have, as a result of any act or omission by such
Member, any right, interest or valid claim against the Company or any other
Member for any commission, fee or other compensation as a finder or broker, or
in any similar capacity, in connection with any of the transactions contemplated
by this Agreement.

      (g) Neither such Member nor any of its Affiliates is, nor will the Company
as a result of such Member holding an interest in the Company be, an "investment
company" as defined in, or subject to regulation under, the Investment Company
Act of 1940, as amended.

      (h) Such Member is acquiring his, her or its interest in the Company based
upon his, her or its own investigation, and the exercise by such Member of his,
her or its rights and the performance of his, her or its obligations under this
Agreement will be based upon his, her or its own investigation, analysis and
expertise. Such Member has such knowledge and experience in financial and
business matters such that such Member is capable of evaluating the merits and
risks of the investment contemplated by this Agreement and such Member is able
to bear the economic risk of his, her or its investment in the Company
(including a complete loss of his, her or its investment). During negotiation of
the transactions contemplated herein, such Member has been afforded full and
free access to books, financial statements, records, contracts, documents and
other information concerning the Company and Integrated Defense Technologies and
its Subsidiaries, and has been afforded the opportunity to ask questions
concerning the business, operations, financial condition, assets and liabilities
of the Company and Integrated Defense Technologies and its Subsidiaries and
other relevant matters as such Member has deemed necessary or desirable and has
been provided with all such information as has been requested.

      (i) Such Member recognizes that no public market exists for the Membership
Interest acquired hereunder, and no representation has been made to such Member
that any such public market will exist in the future. Such Member understands
that he, she or it must bear the economic risk of such Member's investment in
the Company indefinitely unless such Member's Membership Interest is registered
pursuant to the Securities Act or an exemption from such registration is
available, and unless the disposition of such Membership Interest is registered
or qualified under applicable state securities laws or an exemption from such
registration or qualification is available, and that the Company has no
obligation or intention of so registering or

                                      -14-
<Page>

qualifying such Membership Interest. Such Member understands that there is no
assurance that any exemption from the Securities Act will be available, or, if
available, that such exemption will allow such Member to dispose of or otherwise
Transfer any of or all such Member's Membership Interest, in the amounts or at
the times any such Member might desire. Such Member understands that at the
present time Rule 144 (other than Rule 144(k) promulgated under the Securities
Act by the Securities and Exchange Commission ("RULE 144")) is not applicable to
sale of any of or all such Member's Membership Interest because such Membership
Interest is not registered under Section 12 of the Securities Exchange Act of
1934, as amended, and the information concerning the Company specified in Rule
144 is not publicly available. Such Member acknowledges that the Company is not
presently under any obligation to register under Section 12 of the Securities
Exchange Act of 1934, as amended, or to make publicly available the information
specified in Rule 144 and that it may never be required to do so.

                                   ARTICLE VI

                           INDEMNIFICATION OF MEMBERS

      6.1 GENERAL. The Company, its receiver or its trustee (to the extent of
the Company's assets) shall indemnify, save harmless, and pay all judgments and
claims against each Member or any officers, directors or partners of such Member
relating to any liability or damage incurred by reason of any act performed or
omitted to be performed by such Member, officer or director in connection with
the business of the Company, including attorneys' fees and expenses incurred by
such Member, officer or director in connection with the defense of any action
based on any such act or omission, which attorneys' fees and expenses may be
paid as incurred, including all such liabilities under federal and state
securities laws (including the Securities Act) as permitted by law.

      6.2 COMPANY EXPENSES. The Company shall indemnify, save harmless, and pay
all expenses, costs, or liabilities of any Member who for the benefit of the
Company makes any deposit, acquires any option, or makes any other similar
payment or assumes any obligation in connection with any property proposed to be
acquired by the Company, which action shall have been consented to by Veritas,
and who suffers any financial loss as the result of such action.

      6.3   LIMITATIONS.

      (a) Notwithstanding anything to the contrary in SECTIONS 6.1 and 6.2
above, no Member shall be indemnified from any liability for fraud, bad faith,
willful misconduct, or gross negligence.

      (b) Notwithstanding anything to the contrary in SECTIONS 6.1, 6.2 and
6.3(a) above, in the event that any provision of such Sections is determined to
be invalid in whole or in part, the remainder of such Section shall be
enforceable to the maximum extent permitted by law.

                                      -15-
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                                   ARTICLE VII

                                   MANAGEMENT

      7.1   MANAGEMENT AND AUTHORITY.

      (a)  THE MANAGER.  The Company shall be managed by Veritas (the
"MANAGER").  The Manager shall have such rights, duties and powers as are
specified in this Agreement and the Act.

      (b) GENERAL RIGHTS, DUTIES AND POWERS OF THE MANAGER. The Manager is the
general manager and chief executive officer of the Company and shall have
complete and exclusive control over the management of the business of the
Company.

      (c) SPECIFIC POWERS AND DUTIES OF THE MANAGER. In addition to the general
powers given to the Manager by law and by this Agreement, except as expressly
limited by the provisions of this Agreement, the Manager shall have the power to
enter into, make, sign, seal, deliver and perform all agreements, contracts,
documents, instruments and other undertakings and to engage in all activities
and transactions as may be necessary or desirable, in the sole discretion of the
Manager, in order to carry out the business of the Company, all on behalf of the
Company, including, without limitation, the following:

           (i) to admit Additional Members;

           (ii) to acquire, hold, sell, transfer, exchange, pledge and dispose
      of Integrated Defense Technologies Shares and exercise all rights, powers,
      privileges, and other incidents of ownership or possession with respect
      thereto (including voting such stock);

           (iii)  to open, maintain and close bank accounts and draw
      checks or other orders for the payment of money;

           (iv) to borrow or raise monies and to secure the payment or
      performance of obligations of the Company by mortgage, hypothecation,
      pledge or other security assignment of all or any part of the assets of
      the Company; and

      (d)  to otherwise deal in any manner with the assets of the Company.

      7.2  MANAGER'S STANDARD OF CARE. The Manager's duty of care in the
performance of its duties to the Company and the other Members is limited to the
performance of such duties in good faith and with that degree of care that an
ordinarily prudent Person in a like position would use under similar
circumstances. In performing such duties, the Manager shall be entitled to rely
on information, opinions, reports or statements, including financial statements
and other financial data, in each case presented or prepared by (i) one or more
agents or employees of the Company, or (ii) counsel, public accountants or other
Persons as to matters that the Manager believes to be within such Person's
professional or expert competence. Except in the case of gross negligence

                                      -16-
<Page>

or willful misconduct, the Manager shall not be liable to the Company or any
Member for damages for any act or omission taken or suffered by the Manager in
connection with this Agreement or the conduct of the business of the Company.

      7.3   COMPENSATION OF MANAGER.

      (a)  The Manager shall not receive any fees for its services in
administering the Company.

      (b) The Manager shall be entitled to reimbursement from the Company for
all out-of-pocket costs and expenses incurred by it, in its reasonable
discretion, for or on behalf of the Company.

                                  ARTICLE VIII

             DISPOSITION OF MEMBERSHIP INTERESTS; OTHER RIGHTS

      8.1 RESTRICTIONS ON TRANSFER. No Member, other than Veritas and its
Transferees, may directly or indirectly, Transfer all or a portion of his or her
Membership Interest except to a Permitted Transferee or as otherwise expressly
provided in this Agreement. Any purported Transfer in violation of this
Agreement shall be null and void AB INITIO and the Company shall not recognize
any such Transfer or accord to any purported transferee any rights as a Member
of the Company. Each individual Member shall have the right during his or her
lifetime and in the event of his or her death to Transfer any or all of the
Membership Interest owned by him or her, to a Permitted Transferee, provided
that at the time of any such Transfer, each such transferee agrees in writing
(in form and substance satisfactory to the Company) to be bound by all of the
provisions of this Agreement applicable to the Transferring individual Member so
long as he, she or it continues to own any of the Membership Interest so
Transferred. As used herein, "PERMITTED TRANSFEREE" means such individual
Member's spouse or issue, including adopted children, or to a trust for the
exclusive benefit of such individual Member's spouse or issue.

      8.2 TAG-ALONG RIGHTS. In the event of a proposed Sale Transaction, Veritas
shall not Transfer any portion of its Membership Interest until the other
Members have been given the opportunity, at their option, exercisable within 10
days after the date of Veritas' written notice of the proposed Sale Transaction,
to sell to the proposed Transferee at the same price and upon the same terms and
conditions offered to Veritas, up to that percentage of the Membership Interest
held by the other Members as is equivalent to the percentage of the Membership
Interest held by Veritas that Veritas proposes to Transfer. In order to be
entitled to exercise their rights to sell their Membership Interests pursuant to
this SECTION 8.2, the other Members must agree to make to the Transferee
substantially the same representations, warranties, covenants, indemnities and
agreements as Veritas agrees to make in connection with the proposed Sale
Transaction.

            As used herein, "SALE TRANSACTION" means the Transfer by Veritas
and/or any of its Transferees, in one transaction or a series of transactions
(other than pursuant to a public

                                      -17-
<Page>

offering under the Securities Act or pursuant to Rule 144 ), of all or any
portion of its or their Membership Interests to one or more Persons or group of
Persons (other than an Affiliate) and, as a result of which, such Person or
group of Persons would own a majority of the outstanding Percentage Interests of
the Company.

      8.3 DRAG-ALONG RIGHTS. In the event of a proposed Sale Transaction,
Veritas and/or its Transferees may require that each other Member Transfer his
or her Membership Interest in the Sale Transaction. Each Member will receive in
the Sale Transaction in respect of his or her Membership Interest his or her PRO
RATA portion of the entire consideration to be received by all the Members in or
following the Sale Transaction. Veritas and/or its Transferees shall notify the
other Members at least 10 days in advance of entering into a definitive
agreement in connection with a proposed Sale Transaction. In any such agreement,
the other Members will be required to make the same representations, warranties,
covenants, indemnities and agreements Veritas and/or its Transferees agree to
make in connection with the proposed Sale Transaction.

      8.4   PURCHASE RIGHT.

      (a) Veritas (and/or its Transferees) is hereby granted the right to
purchase the entire Membership Interest (or at the discretion of Veritas any
portion of the Membership Interest) held by any Member who is a PEI Employee or
a Sierra Employee or who is a Permitted Transferee of a PEI Employee or a Sierra
Employee in the event the employment of such Member (or the transferor of such
Member) by PEI or Sierra, as the case may be, on a full time basis terminates
(i) for cause or such Member voluntarily terminates his employment, with respect
to such Member's Class A Membership Interest, or (ii) for any reason, with
respect to such Member's Class B Membership Interest. Veritas may exercise this
right at any time within the 60-day period immediately following the date such
Member (or transferor of such Member) ceases to be a full-time employee of PEI
or Sierra, as the case may be.

      (b) For purposes hereof, "TERMINATION FOR CAUSE" means termination of such
Member's employment by PEI or Sierra, as the case may be, by reason of (i) such
Member's willful dishonesty towards, fraud upon, or deliberate injury or
attempted injury to, or breach of fiduciary duty to PEI or Sierra, as the case
may be; or (ii) conduct by such Member, in connection with the performance of
the duties contemplated that would result in serious prejudice to the interests
of PEI or Sierra, as the case may be, if such Member were to continue to be
employed, including, without limitation, the conviction of a felony or a good
faith determination by the Board of Directors of PEI or Sierra, as the case may
be, that such Member has committed acts involving moral turpitude; or (iii) such
Member's failure to follow reasonable instructions or directions of the Board of
Directors of PEI or Sierra, as the case may be, or any policy, rule or procedure
of PEI or Sierra, as the case may be, in force from time to time.

      (c) The purchase price at which Veritas may exercise its purchase right
shall be (i) with respect to any Class A Membership Interest, (x) for any period
until the third anniversary of the Invested Capital Contribution Date, the
Invested Capital of the Member plus 50% of the amount by which, if any, the Fair
Market Value of the Class A Membership Interest exceeds the Invested

                                      -18-
<Page>

Capital of the Member, or the Fair Market Value of the Class A Membership
Interest, whichever is lower, and (y) for any period after the third anniversary
of the Invested Capital Contribution Date, the Fair Market Value of the Class A
Membership Interest; and (ii) with respect to any remaining Class B Membership
Interest after application of the PEI Reduction Percentage or the Sierra
Reduction Percentage, as the case may be, the Fair Market Value of the Class B
Membership Interest. For purposes of this Agreement "FAIR MARKET VALUE" of the
Membership Interest shall be determined by the Board of Directors of Integrated
Defense Technologies based on the most recent financial statements of PEI and
Sierra available on the date such Member ceases to be a full time employee of
PEI or Sierra, as the case may be.

      (d) The purchase right shall be exercisable by written notice delivered to
the Member prior to the expiration of the 60-day purchase period referred to in
SECTION 8.4(a). The notice shall indicate the portion of the Membership Interest
to be purchased, the purchase price and the date on which the purchase is to be
effected, such date to be not more than 30 days after the date of notice.

      8.5         MANDATORY SALE.

      (a) Any Member who is a PEI Employee or a Sierra Employee or who is a
Permitted Transferee of a PEI Employee or a Sierra Employee shall sell his
entire Class A Membership Interest to Veritas at a purchase price equal to the
Invested Capital of the Member or the Fair Market Value of the Membership
Interest, whichever is greater, in the event the employment of such Member (or
the transferor of such Member) by PEI or Sierra, as the case may be, is
terminated without cause (as defined in SECTION 8.4(b) above).

      (b) The sale shall take place within 60 days following the termination of
such Member's employment by PEI or Sierra, as the case may be.

      8.6 LEGENDS. If at any time Membership Interests are represented by
certificates, then each such certificate shall have stamped, printed or typed
thereon, in addition to any other legend required by law, the following legends:

         THIS CERTIFICATE AND THE MEMBERSHIP INTEREST REPRESENTED HEREBY ARE
         SUBJECT TO AND SHALL BE TRANSFERABLE ONLY IN ACCORDANCE WITH THE
         PROVISIONS OF A CERTAIN AMENDED AND RESTATED LIMITED LIABILITY COMPANY
         OPERATING AGREEMENT OF IDT HOLDING, L.L.C. DATED AS OF AUGUST 7, 1999,
         AMONG THE MEMBERS NAMED THEREIN, A COPY OF WHICH IS ON FILE AT THE
         OFFICE OF THE COMPANY.

         THE MEMBERSHIP INTEREST REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN
         REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THE RULES
         AND REGULATIONS THEREUNDER (THE "ACT"), OR UNDER

                                      -19-
<Page>

         THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED,
         ASSIGNED, HYPOTHECATED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF AN
         EFFECTIVE REGISTRATION STATEMENT FOR THE MEMBERSHIP INTEREST UNDER THE
         ACT AND APPLICABLE STATE LAWS OR AN EXEMPTION THEREFROM.

                                   ARTICLE IX

                ACCOUNTING AND RECORDS; CERTAIN TAX MATTERS

      9.1   RECORDS TO BE MAINTAINED.

      (a) The Company shall maintain at its principal office separate books of
account for the Company which shall reflect a true and accurate record of all
costs and expenses incurred, all charges made, all credits made and received,
and all income derived in connection with the operation of the Company business
in accordance with generally accepted accounting principles consistently applied
and, to the extent inconsistent therewith, in accordance with this Agreement.
Each Member shall, at his sole expense, have the right, at any time without
notice to any other Member, to examine, copy, and audit the Company's books and
records during normal business hours.

      (b)   The Company shall maintain the following records at its
principal office:

            (i)   A current list of the full name and last known business
      address of Member;

            (ii)  A copy of the Certificate of Formation and all
      amendments thereto;

            (iii) Copies of the Company's federal, foreign, state and local
      income tax returns and reports, if any, for the six most recent years;

            (iv)  Copies of this Agreement, including all amendments
      thereto;

            (v)   Any financial statements of the Company for the six most
      recent Fiscal Years;

            (vi) A writing or other data compilation from which information can
      be obtained through retrieval devices into reasonably usable form setting
      forth the following:

                  (A) the amount of cash and a description and statement of the
            agreed value of the other property or services contributed by each
            Member and which each Member has agreed to contribute;

                                      -20-

<Page>

                  (B) any right of a Member to receive, or of the Company to
            make, distributions to a Member which include a return of all or any
            part of Member's Capital Contribution; and

                  (C) any events upon the happening of which the Company is to
            be dissolved and its affairs wound up.

      9.2         REPORTS.

      (a) The Company shall be responsible for the preparation of financial
reports of the Company and the coordination of financial matters of the Company
with the Company's accountants.

      (b) Within ninety (90) days after the end of each Fiscal Year and within
sixty (60) days after the end of any fiscal quarter, the Company shall cause
each Member to be furnished with a copy of the balance sheet of the Company as
of last day of the applicable period, a statement of income or loss of the
Company such period, and a statement of the Company's cash flow for such period.
Annual statements shall also include a statement of the Members' Capital
Accounts and changes therein for such Fiscal Year. Annual statements shall be
reviewed by the accountants.

      9.3 TAX RETURNS; INFORMATION. The Company shall arrange for the
preparation of all income and other tax returns of the Company and shall cause
the same to be filed in a timely manner. The Company shall furnish to each
Member a copy of each such return, together with any schedules or other
information each Member may require in connection with such Member's own tax
affairs.

      9.4   TAX MATTERS MEMBER.  Veritas is specifically authorized to act
as the Tax Matters Member under the Code and in any similar capacity under
state or local law.

                                    ARTICLE X

                WITHDRAWALS; ACTION FOR PARTITION; BREACHES

      10.1 WAIVER OF PARTITION. No Member shall, either directly or indirectly,
take any action to require partition, file a bill for Company accounting or
appraisement of the Company or of any of its assets or properties or cause the
sale of any Company property; and, notwithstanding any provisions of applicable
law to the contrary, each Member (and each of his legal representatives,
successors, or assigns) hereby irrevocably waives any and all rights it may have
to maintain any action for partition or to compel any sale with respect to his
Company interest, or with respect to any assets or properties of the Company,
except as expressly provided in this Agreement.

                                      -21-
<Page>

      10.2 COVENANT NOT TO WITHDRAW OR DISSOLVE. Notwithstanding any provision
of the Act, but except as otherwise provided in this Agreement, each Member
hereby covenants and agrees that the Members have entered into this Agreement
based on their mutual expectation that all Members will continue as Members and
carry out the duties and obligations undertaken by them hereunder and that,
except as otherwise expressly required or permitted hereby, each Member hereby
covenants and agrees not to (a) take any action to file a certificate of
dissolution or its equivalent with respect to itself, (b) take any action that
would cause voluntary bankruptcy of such Member, (c) withdraw or attempt to
withdraw from the Company, (d) exercise any power under the Act to dissolve the
Company, (e) transfer all or any portion of his interest in the Company, (f)
petition for judicial dissolution of the Company, or (g) demand a return of such
Member's contributions or profits (or a bond or other security for the return of
such contributions or profits) without the unanimous consent of the Members.

                                   ARTICLE XI

                           DISSOLUTION AND WINDING UP

      11.1  DISSOLUTION; LIQUIDATING EVENTS.  The Company shall be
dissolved and its affairs wound up upon the first to occur of the
following events:

      (a)  the expiration of the term of this Agreement, unless the
business of the Company is continued with the written consent of the
Manager;

      (b)  the determination the Manager; and

      (c)  the sale of substantially all of the assets of the Company.

      11.2 EFFECT OF DISSOLUTION. Upon dissolution, the Company shall cease
carrying on as distinguished from the winding up of the Company business, but
the Company is not terminated, but continues until the winding up of the affairs
of the Company is completed and the certificate of dissolution has been issued
by the Secretary of State of the State of Delaware.

      11.3  DISTRIBUTION OF ASSETS ON DISSOLUTION.  Upon the winding up of
the Company, the Company's assets shall be distributed:

      (a)   to creditors, including Members who are creditors to the
extent by law, in satisfaction of Company liabilities; and

      (b) to Members in accordance with SECTION 4.4. Such distributions shall be
in cash or property (which need not be distributed proportionately) or partly in
both, as determined by the Manager.

      11.4 WINDING UP AND CERTIFICATE OF DISSOLUTION. The winding up of the
Company shall be completed when all debts of the Company have been paid and
discharged or reasonably adequate provision therefor has been made, and all of
the remaining assets of the Company have

                                      -22-
<Page>

been distributed to the Members. Upon the completion of winding up of the
Company, a certificate of dissolution shall be delivered to the Secretary of
State of the State of Delaware for filing. The certificate of dissolution shall
set forth the information required by the Act.

                                   ARTICLE XII

                                    AMENDMENT

      12.1 AGREEMENT MAY BE AMENDED. This Agreement may be amended by Veritas;
provided, however, that no such amendment may, except as otherwise herein
provided, (a) adversely affect a Member's Percentage Interest, or (b) adversely
affect any payments to which a Member or a former Member has become entitled
pursuant to this Agreement.

                                  ARTICLE XIII

                            MISCELLANEOUS PROVISIONS

      13.1 ENTIRE AGREEMENT. This Agreement represents the entire agreement
among all the Members and between the Members and the Company with respect to
the subject matter hereof, and supersedes any and all prior agreements and
understandings with respect to the subject matter hereof.

      13.2  LOANS BY MEMBERS.  Loans by Members to the Company shall be
made voluntarily and only upon such terms and conditions as the Members
may determine.

      13.3 NO PARTNERSHIP INTENDED FOR NONTAX PURPOSES. The Members have formed
the Company under the Act, and expressly do not intend hereby to form a
partnership under any partnership or limited partnership act. The Members do not
intend to be partners one to another, or partners as to any third party. To the
extent any Member, by word or action, represents to another person that any
other Member is a partner or that the Company is a partnership, the Member
making such wrongful representation shall be liable to any other Member who
incurs personal liability by reason of such wrongful representation.

      13.4 RIGHTS OF CREDITORS AND THIRD PARTIES UNDER AGREEMENT. This Agreement
is entered into among the Company and the Members for the exclusive benefit of
the Company, its Members, and their successors and assigns. This Agreement is
expressly not intended for the benefit of any creditor of the Company or any
other Person. Except and only to the extent provided by applicable statute, no
such creditor or third party shall have any rights under this Agreement or any
agreement between this Company and any Member with respect to any Capital
Contribution or otherwise.

      13.5 NO EMPLOYMENT OR SERVICE CONTRACT. Nothing in this Agreement shall
confer upon any Member any right to continue in the service of Integrated
Defense Technologies, PEI or Sierra (or any parent corporation, Subsidiary, or
Affiliate thereof) for any period of time

                                      -23-
<Page>

or restrict in any way the rights of the Integrated Defense Technologies, PEI or
Sierra (or any parent corporation, Subsidiary or Affiliate thereof), to
terminate any such Member's employment at any time for any reason whatsoever,
with or without cause.

      13.6 NO WAIVER. The failure of the Company or Veritas (or assignees of the
Company or Veritas) in any instance to exercise any rights granted under this
Agreement shall not constitute a waiver of any other rights that may
subsequently arise under the provisions of this Agreement or any other agreement
between or among the Company, Veritas and a Member. No waiver of any breach or
condition of this Agreement shall be deemed to be a waiver of any other or
subsequent breach or condition, whether of like or different nature.

      13.7 NOTICES. Any notice, payment, demand, or communication required or
permitted to be given by any provision of this Agreement shall be in writing and
sent by overnight courier, or by telephone or facsimile, if such telephone
conversation or facsimile is followed by a hard copy of the telephone
conversation or facsimilied communication sent by overnight courier, charges
prepaid, addressed as reflected on SCHEDULE A or SCHEDULE B or to such other
address as such Person may from time to time specify by notice to the Members.
Any such notice shall be deemed to be delivered, given, and received as of the
date so delivered.

      13.8 BINDING EFFECT. Except as otherwise provided in this Agreement, every
covenant, term and provision of this Agreement shall be binding upon and inure
to the benefit of the Members and their respective successors, transferees and
assigns.

      13.9 CONSTRUCTION. Every covenant, term, and provision of this Agreement
shall be construed simply according to its fair meaning and not strictly for or
against any Member.

      13.10 HEADINGS. Section and other headings contained in this Agreement are
for reference purposes only and are not intended to describe, interpret, define,
or limit the scope, extent, or intent of this Agreement or any provision hereof.

      13.11 SEVERABILITY. Every provision of this Agreement is intended to be
severable. If any term or provision hereof is illegal or invalid for any reason
whatsoever, such illegality or invalidity shall not affect the validity or
legality of the remainder of this Agreement.

      13.12 INCORPORATION BY REFERENCE.  Each Schedule attached to this
Agreement and referred to herein is incorporated in this Agreement by
reference and made a part hereof as if fully set forth herein.

      13.13 FURTHER ACTION. Each Member agrees to perform all further acts and
execute, acknowledge, and deliver any documents which may be reasonably
necessary, appropriate, or desirable to carry out the provisions of this
Agreement.

                                      -24-
<Page>

      13.14 VARIATION OF PRONOUNS.  All pronouns and any variations
thereof shall be deemed to refer to masculine, feminine, or neuter,
singular or plural, as the identity of the Person or Persons may require.

      13.15 GOVERNING LAW. The laws of the State of Delaware (without reference
to its choice of laws principles) shall govern the validity of this Agreement,
the construction of its terms, and the interpretation of the rights and duties
of the Members.

      13.16 COUNTERPART EXECUTION.  This Agreement may be executed in any
number of counterparts with the same effect as if all of the Members had
signed the same document.  All counterparts shall be construed together
and shall constitute one agreement.

      13.17 CONSENT TO JURISDICTION. Each Member hereby irrevocably and
unconditionally consents to submit to the exclusive jurisdiction of the courts
of the State of New York or the United States of America located in New York
City for any actions, suits or proceedings arising out of or relating to this
Agreement and the transactions contemplated hereby and agrees not to commence
any action, suit or proceeding relating hereto except in such courts, and
further agrees that service of any process, summons, notice or document by
United States registered or certified mail shall be effective service of process
for any action, suit or proceeding brought in any court. Each of the parties
hereto hereby irrevocably and unconditionally waives any objection to personal
jurisdiction and the laying of venue of any action, suit or proceeding arising
out of this Agreement or the transactions contemplated hereby, in the courts of
the State of New York or the United States of America located in the New York
City, and hereby further irrevocably and unconditionally waives and agrees not
to plead or claim in any such court that any such action, suit or proceeding
brought in any such court has been brought in an inconvenient forum.

                                      -25-
<Page>

            IN WITNESS WHEREOF, the parties have duly executed this Agreement as
of the date first above written.

                                    THE VERITAS CAPITAL FUND, L.P.

                                    By Veritas Capital Management, L.L.C.
                                          General Partner

                                    By: /s/ Robert B. McKeon
                                       -----------------------------------
                                           Robert B. McKeon, Member

                    [PEI EMPLOYEES AND PERMITTED TRANSFEREES]

                   [SIERRA EMPLOYEES AND PERMITTED TRANSFEREES]

                                    -26-

<Page>

                           Amendment No. 1 to the
   Amended and Restated Limited Liability Company Operating Agreement of
                            IDT Holding, L.L.C.

      This Amendment No. 1 (this "AMENDMENT") to the Amended and Restated
Limited Liability Company Operating Agreement of IDT Holding, L.L.C., a Delaware
limited liability company (the "COMPANY"), is entered into as of February 25,
2000 by and among The Veritas Capital Fund, L.P., a Delaware limited partnership
("Veritas"), and the Persons listed as Additional Members on the signature page
hereof (the "ADDITIONAL MEMBERS").

      WHEREAS, the Company was formed pursuant to that certain Limited Liability
Company Operating Agreement dated as of August 6, 1999 among Veritas and certain
named employees of PEI, as amended by that certain Amended and Restated Limited
Liability Company Operating Agreement dated as of December 10, 1999 among
Veritas and certain named employees of PEI and Sierra (the "OPERATING
AGREEMENT");

      WHEREAS, the Members desire to admit the Additional Members to the
Company, including, without limitation non-employee directors of Integrated
Defense Technologies ("DIRECTOR CLASS B MEMBERS"), and to make certain
amendments to the Operating Agreement;

      NOW, THEREFORE, in consideration of the mutual agreements made herein, the
Members hereby agree to amend the Operating Agreement as follows:

      1. Unless otherwise defined herein, capitalized terms shall have the
meanings ascribed to them in the Operating Agreement.

      2. Effective as of the date hereof, the Persons listed as Additional
Members on the signature page hereof are hereby admitted to the Company.

      3. SCHEDULE A and SCHEDULE B to the Operating Agreement are hereby amended
in the forms annexed hereto to reflect the names, addresses, Capital
Contributions, Class A Percentage Interests and Class B Percentage Interests of
the Members after the admission of the Additional Members to the Company, the
increased Class B Percentage Interest of certain Class B Members and the
decreased Class B Percentage Interest of certain Class B Members.

      4. For purposes of the Operating Agreement, employees of Excalibur Systems
Limited, an Ontario corporation and a wholly-owned subsidiary of Sierra
("EXCALIBUR"), shall be deemed to be Sierra Employees. The Sierra Employment
Date of the Additional Member who is an employee of Excalibur shall be deemed to
be January 31, 2000 for purposes of Section 4.2(c) of the Operating Agreement.

      5.    Section 4.2(c) is hereby amended to read in its entirety as
follows:

            "(c) Upon a Change of Control, the PEI Reduction Percentage, the
      Sierra Reduction Percentage and the Director Reduction Percentage (as
      defined in Section

<Page>

      4.2(e)) shall be 0%. For purposes of this Agreement, "CHANGE OF
      CONTROL" means the occurrence of any of the following events:

                  (i)   Veritas ceases to be the owner of a majority of
            the outstanding Percentage Interests;

                  (ii) Integrated Defense Technologies ceases to be the record
            or beneficial owner (as such term is defined in Rules 13d-3 and
            13d-5 under the Securities Exchange Act of 1934, as amended) of a
            majority in the aggregate of the total voting power of all classes
            of capital stock of PEI and Sierra then outstanding and normally
            entitled to vote on the election of directors; or

                  (iii) the sale of all or substantially all of the assets of
            PEI and Sierra to a third party not Affiliated with Veritas."

      6.    Section 4.2(d) is hereby amended to read in its entirety as
follows:

            "(d) Upon a reduction in the Class B Percentage Interest of a Class
      B Member in accordance with SECTION 4.2(a), SECTION 4.2(b) or SECTION
      4.2(e), the portion of such Class B Member's Class B Percentage Interest
      which is so reduced shall be allocated to the Class A Members in
      proportion to their respective Class A Percentage Interests. In the event
      of such reduction, such Class B Member shall be entitled to no payment
      whatsoever as compensation for such reduction in his or her Class B
      Percentage Interest."

      7.    A new Section 4.2(e) is hereby added to read as follows:

            "(e) Subject to SECTION 4.2(c), in the event that prior to August 7,
      2004 or the fifth anniversary of the date the subject Director Class B
      Member became a director of Integrated Defense Technologies (the
      "DIRECTORSHIP DATE"), whichever is later, a Director Class B Member ceases
      to be a director of Integrated Defense Technologies for any reason, then
      as of the date of the termination of such directorship (the "DIRECTORSHIP
      TERMINATION DATE"), the Class B Percentage Interest of such Director Class
      B Member shall be reduced by the following percentage (the "DIRECTOR
      REDUCTION PERCENTAGE"):

                                      -2-
<Page>

<Table>
<Caption>

                  Directorship Termination Date                        Director Reduction Percentage
                  -----------------------------                        -----------------------------
<S>                                                                            <C>
                  Prior to August 7, 2000 or the first
                     anniversary of the Directorship
                     Date, whichever is later ..................................100%
                  After August 6, 2000 or the first anniversary of the
                     Directorship Date, whichever is later, but prior to August
                     7, 2001 or the second anniversary of the Directorship Date,
                     whichever
                     is later................................................... 80%
                  After August 6, 2001 or the second anniversary of the
                     Directorship Date, whichever is later, but prior to August
                     7, 2002 or the third anniversary of the Directorship Date,
                     whichever
                     is later................................................... 60%
                  After August 6, 2002 or the third anniversary
                     of the Directorship Date, whichever
                     is later, but prior to August 7, 2003 or the
                     fourth anniversary of the Directorship
                     Date, whichever is later................................... 40%
                  After August 6, 2003 or the fourth anniversary of the
                     Directorship Date, whichever is later, but prior to August
                     7, 2004 or the fifth anniversary of the Directorship Date,
                     whichever is later......................................... 20%
                  After August 6, 2004 or the fifth
                     anniversary of the Directorship
                     Date, whichever is later...................................  0%
</Table>

            By way of example, if a Director Class B Member whose Directorship
      Date was on or prior to August 7, 1999 were to cease serving as a director
      of Integrated Defense Technologies on December 31, 2002, his Class B
      Percentage Interest would be reduced by 40%."

      8.    A new Section 8.4(e) is hereby added to read as follows:

            "(e) Veritas (and/or its Transferees) is hereby granted the right to
      purchase any remaining Class B Membership Interest held by any Director
      Class B Member (or any

                                       -3-

<Page>

      Permitted Transferee of any Director Class B Member) after application
      of the Director Reduction Percentage (or at the discretion of Veritas
      any portion thereof) in the event such Director Class B Member ceases
      to be a director of Integrated Defense Technologies for any reason at
      the Fair Market Value thereof (as determined in accordance with SECTION
      8.4(c)). This purchase right shall be exercisable by written notice
      delivered to the Director Class B Member within the 60-day period
      immediately following the date such Director Class B Member ceases to
      be a director of Integrated Defense Technologies."

      9. All other terms of the Operating Agreement shall remain in full force
and effect and by their execution of this Amendment, the Additional Members make
the representations and warranties set forth in Section 5.2 of the Operating
Agreement and agree to be bound by all of the terms and conditions of the
Operating Agreement applicable to the Members.

      10. This Amendment may be executed in several counterparts, and all
counterparts so executed shall constitute one agreement, binding on all of the
parties hereto, notwithstanding that all of the parties are not signatory to the
original or the same counterpart.

                                      -4-
<Page>

      IN WITNESS WHEREOF, each of Veritas and the Additional Members has
executed this Amendment as of the date first above written.

                                 THE VERITAS CAPITAL FUND, L.P.

                                 By: /s/ Robert B. McKeon
                                    -------------------------------
                                    Authorized Signature

                               ADDITIONAL MEMBERS:

[Director Class B Member]

[PEI Class B Members]

                                      -5-
<Page>

                           Amendment No. 2 to the
   Amended and Restated Limited Liability Company Operating Agreement of
                            IDT Holding, L.L.C.

      This Amendment No. 2 (this "AMENDMENT") to the Amended and Restated
Limited Liability Company Operating Agreement of IDT Holding, L.L.C., a Delaware
limited liability company (the "COMPANY"), is entered into as of June 1, 2000 by
and among The Veritas Capital Fund, L.P., a Delaware limited partnership
("Veritas"), and the Persons listed as Additional Members on the signature page
hereof (the "ADDITIONAL MEMBERS").

      WHEREAS, the Company was formed pursuant to that certain Limited Liability
Company Operating Agreement dated as of August 6, 1999 among Veritas and certain
named employees of PEI, as amended by that certain Amended and Restated Limited
Liability Company Operating Agreement dated as of December 10, 1999 among
Veritas and certain named employees of PEI and Sierra, and as further amended by
Amendment No. 1 to the Amended and Restated Limited Liability Company Operating
Agreement dated as of February 25, 2000 among Veritas and the Additional Members
named therein (the "OPERATING AGREEMENT");

      WHEREAS, the Members desire to admit the Additional Members to the
Company, to increase the Class B Percentage Interest of certain Class B Members,
and to eliminate the Class B Interest of a certain Class B Member;

      NOW, THEREFORE, in consideration of the mutual agreements made herein, the
Members hereby agree to amend the Operating Agreement as follows:

      1. Unless otherwise defined herein, capitalized terms shall have the
meanings ascribed to them in the Operating Agreement.

      2. Effective as of the date hereof, the Persons listed as Additional
Members on the signature page hereof are hereby admitted to the Company.

      3. SCHEDULE A and SCHEDULE B to the Operating Agreement are hereby amended
in the forms annexed hereto to reflect the names, addresses, Capital
Contributions, Class A Percentage Interests and Class B Percentage Interests of
the Members after the admission of the Additional Members to the Company, the
increased Class B Percentage Interest of certain Class B Members and the
elimination of the Class B Percentage Interest of a certain Class B Member.

      4. All other terms of the Operating Agreement shall remain in full force
and effect and by their execution of this Amendment, the Additional Members make
the representations and warranties set forth in Section 5.2 of the Operating
Agreement and agree to be bound by all of the terms and conditions of the
Operating Agreement applicable to the Members.

      5. This Amendment may be executed in several counterparts, and all
counterparts so executed shall constitute one agreement, binding on all of the
parties hereto, notwithstanding that all of the parties are not signatory to the
original or the same counterpart.

<Page>

      IN WITNESS WHEREOF, each of Veritas and the Additional Members has
executed this Amendment as of the date first above written.

                                    THE VERITAS CAPITAL FUND, L.P.

                                    By: /s/ Robert b. McKeon
                                       -------------------------------
                                          Authorized Signature

                               ADDITIONAL MEMBERS:

[PEI Class B Members]

[Sierra Class B Members]

                                      -2-
<Page>

                           Amendment No. 3 to the
   Amended and Restated Limited Liability Company Operating Agreement of
                            IDT Holding, L.L.C.

      This Amendment No. 3 (this "AMENDMENT") to the Amended and Restated
Limited Liability Company Operating Agreement of IDT Holding, L.L.C., a Delaware
limited liability company (the "COMPANY"), is entered into as of September 29,
2000 by and among The Veritas Capital Fund, L.P., a Delaware limited partnership
("Veritas"), and the Persons listed as Additional Members on the signature page
hereof (the "ADDITIONAL MEMBERS").

      WHEREAS, the Company was formed pursuant to that certain Limited Liability
Company Operating Agreement dated as of August 6, 1999 among Veritas and certain
named employees of PEI, as amended by that certain Amended and Restated Limited
Liability Company Operating Agreement dated as of December 10, 1999 among
Veritas and certain named employees of PEI and Sierra, as further amended by
Amendment No. 1 to the Amended and Restated Limited Liability Company Operating
Agreement dated as of February 25, 2000 among Veritas and the Additional Members
named therein, and as further amended by Amendment No. 2 to the Amended and
Restated Limited Liability Company Operating Agreement dated as of June 1, 2000
among Veritas and the Additional Members named therein (collectively, the
"OPERATING AGREEMENT");

      WHEREAS, the Members desire to amend the Operating Agreement to reflect an
increased Capital Contribution from Veritas and to admit the Additional Members
to the Company;

      NOW, THEREFORE, in consideration of the mutual agreements made herein, the
Members hereby agree to amend the Operating Agreement as follows:

      1. Unless otherwise defined herein, capitalized terms shall have the
meanings ascribed to them in the Operating Agreement.

      2. Effective as of the date hereof, (a) Veritas shall increase its Capital
Contribution as reflected on SCHEDULE A hereto and (b) the Persons listed as
Additional Members on the signature page hereof are hereby admitted to the
Company.

      3. SCHEDULE A and SCHEDULE B to the Operating Agreement are hereby amended
in the forms annexed hereto to reflect the names, addresses, Capital
Contributions, Class A Percentage Interests and Class B Percentage Interests of
the Members after the increased Capital Contribution of Veritas, the admission
of the Additional Members to the Company and the termination of employment of a
certain PEI Class B Member effective as of the date hereof.

      4. The definition of "Change of Control" in Article I of the Operating
Agreement is hereby amended to read in its entirety as follows:

            "'CHANGE OF CONTROL' is defined in SECTION 4.2(c)."

      5. The definition of "Fair Market Value" in Article I of the Operating
Agreement is hereby amended to read in its entirety as follows:

<Page>

            "'FAIR MARKET VALUE' is defined in SECTION 8.4(c)."

      6. The first sentence of Section 8.1 of the Operating Agreement is hereby
amended to read as follows:

                  "No Member, other then Veritas and its Transferees, may
            directly or indirectly, Transfer all or a portion of his, her or its
            Membership Interest except to a Permitted Transferee or as otherwise
            expressly provided in this Agreement; PROVIDED, HOWEVER, that
            Veritas and any other Class A Member that is not an individual may
            Transfer all or a portion of their Membership Interests to
            Affiliates."

      7. Section 11.3(b) of the Operating Agreement is hereby amended to read in
its entirety as follows:

                  "(b) to Members in accordance with SECTION 4.4. Such
            distribution shall be in cash or property (which shall be
            distributed proportionally) or partly in both, as determined in good
            faith by the Manager."

      8. All other terms of the Operating Agreement shall remain in full force
and effect and by their execution of this Amendment, the Additional Members make
the representations and warranties set forth in Section 5.2 of the Operating
Agreement and agree to be bound by all of the terms and conditions of the
Operating Agreement applicable to the Members.

      9. This Amendment may be executed in several counterparts, and all
counterparts so executed shall constitute one agreement, binding on all of the
parties hereto, notwithstanding that all of the parties are not signatory to the
original or the same counterpart.

                                       -2
<Page>

      IN WITNESS WHEREOF, each of Veritas and the Additional Members has
executed this Amendment as of the date first above written.

                                    THE VERITAS CAPITAL FUND, L.P.

                                    By: /s/ Robert B. McKeon
                                       -------------------------------
                                          Authorized Signature

                                      -3-
<Page>

                               [ADDITIONAL MEMBERS]

                                      -4-
<Page>

                           Amendment No. 4 to the
   Amended and Restated Limited Liability Company Operating Agreement of
                            IDT Holding, L.L.C.

      This Amendment No. 4 (this "AMENDMENT") to the Amended and Restated
Limited Liability Company Operating Agreement of IDT Holding, L.L.C., a Delaware
limited liability company (the "COMPANY"), is entered into as of June 1, 2001 by
and among The Veritas Capital Fund, L.P., a Delaware limited partnership
("Veritas"), and the Persons listed as Additional Members on the signature page
hereof (the "ADDITIONAL MEMBERS").

      WHEREAS, the Company was formed pursuant to that certain Limited Liability
Company Operating Agreement dated as of August 6, 1999 among Veritas and certain
named employees of PEI, as amended by that certain Amended and Restated Limited
Liability Company Operating Agreement dated as of December 10, 1999 among
Veritas and certain named employees of PEI and Sierra, as further amended by
Amendment No. 1 to the Amended and Restated Limited Liability Company Operating
Agreement dated as of February 25, 2000 among Veritas and the Additional Members
named therein, as further amended by Amendment No. 2 to the Amended and Restated
Limited Liability Company Operating Agreement dated as of June 1, 2000 among
Veritas and the Additional Members named therein, and as further amended by
Amendment No. 3 to the Amended and Restated Limited Liability Company Operating
Agreement dated as of September 29, 2000 among Veritas and the Additional
Members named therein (the "OPERATING AGREEMENT");

      WHEREAS, on September 29, 2000 Integrated Defense Technologies acquired
Metric Systems Corporation, a Florida corporation ("METRIC"), Enterprise
Electronics Corporation, an Alabama corporation ("ENTERPRISE"), and Continental
Electronics Corporation, a Nevada corporation ("CONTINENTAL");

      WHEREAS, the Members desire to admit the Additional Members to the
Company, including, without limitation certain employees of Metric, Enterprise
and Continental, and to make certain amendments to the Operating Agreement;

      NOW, THEREFORE, in consideration of the mutual agreements made herein, the
Members hereby agree to amend the Operating Agreement as follows:

      1. Unless otherwise defined herein, capitalized terms shall have the
meanings ascribed to them in the Operating Agreement.

      2. Effective as of the date hereof, the Persons listed as Additional
Members on the signature pages hereof are hereby admitted to the Company.

      3. SCHEDULE A and SCHEDULE B to the Operating Agreement are hereby amended
in the forms annexed hereto to reflect the names, addresses, Capital
Contributions, Class A Percentage Interests and Class B Percentage Interests of
the Members after the admission of the Additional Members to the Company and the
decreased or eliminated Class B Percentage Interests of certain Class B Members.

<PAGE>

      4. For purposes of the Operating Agreement, employees of Integrated
Defense Technologies shall be deemed to be PEI Employees and Class B Members
employed by Integrated Defense Technologies shall be deemed to be PEI Class B
Members.

      5. Article I is hereby amended by adding the following definitions:

            "'CONTINENTAL CLASS B MEMBER' means a Class B Member employed by
      Continental."

            "'ENTERPRISE CLASS B MEMBER' means a Class B Member employed by
      Enterprise."

            "'IDT EMPLOYEE' means a Member who is an employee of Integrated
      Defense Technologies or any of its Subsidiaries."

            "'METRIC CLASS B MEMBER' means a Class B Member employed by Metric."

      6. Section 4.2(c) is hereby amended to read in its entirety as follows:

            "(c) Upon a Change of Control, the PEI Reduction Percentage, the
      Sierra Reduction Percentage, the Director Reduction Percentage (as defined
      in Section 4.2(e)) and the Metric/Enterprise/Continental Reduction
      Percentage (as defined in Section 4.2(f)) shall be 0%. For purposes of
      this Agreement, "CHANGE OF CONTROL" means the occurrence of any of the
      following events:

                  (i) Veritas ceases to be the owner of a majority of the
            outstanding Percentage Interests;

                  (ii) Integrated Defense Technologies ceases to be the direct
            or indirect beneficial owner (as such term is defined in Rules 13d-3
            and 13d-5 under the Securities Exchange Act of 1934, as amended) of
            a majority in the aggregate of the total voting power of all classes
            of capital stock of PEI, Sierra, Metric, Enterprise and Continental
            then outstanding and normally entitled to vote on the election of
            directors; or

                  (iii) the sale of all or substantially all of the assets of
            Integrated Defense Technologies and its Subsidiaries to a third
            party not Affiliated with Veritas."

      7. Section 4.2(d) is hereby amended to read in its entirety as follows:

                                      -2-
<PAGE>

            "(d) Upon a reduction in the Class B Percentage Interest of a Class
      B Member in accordance with SECTION 4.2(a), SECTION 4.2(b), SECTION
      4.2(e), or SECTION 4.2(f), the portion of such Class B Member's Class B
      Percentage Interest which is so reduced shall be allocated to the Class A
      Members in proportion to their respective Class A Percentage Interests. In
      the event of such reduction, such Class B Member shall be entitled to no
      payment whatsoever as compensation for such reduction in his or her Class
      B Percentage Interest."

      8. A new Section 4.2(f) is hereby added to read as follows:

            "(f) Subject to SECTION 4.2(c), in the event that prior to September
      30, 2005 or the fifth anniversary of the date the subject Metric Class B
      Member, Enterprise Class B Member or Continental Class B Member was
      employed by Metric, Enterprise or Continental, as the case may be (the
      "METRIC/ENTERPRISE/CONTINENTAL EMPLOYMENT DATE"), whichever is later, the
      employment of a Metric Class B Member, Enterprise Class B Member or
      Continental Class B Member by Integrated Defense Technologies or any of
      its Subsidiaries on a full time basis terminates for any reason, then as
      of the date of the termination of such employment (the
      "METRIC/ENTERPRISE/CONTINENTAL TERMINATION DATE"), the Class B Percentage
      Interest of such Metric Class B Member, Enterprise Class B Member or
      Continental Class B Member, as the case may be, shall be reduced by the
      following percentage (the "METRIC/ENTERPRISE/CONTINENTAL REDUCTION
      PERCENTAGE"):

                                      -3-
<PAGE>

<TABLE>
<CAPTION>
                  Metric/Enterprise/Continental                                  Metric/Enterprise/Continental
                  Termination Date                                                    Reduction Percentage
                  ----------------                                                    --------------------

<S>                                                                              <C>
                  Prior to September 30, 2001 or the first
                     anniversary of the Metric/Enterprise/
                     Continental Employment Date,
                     whichever is later .....................................................100%
                  After September 30, 2001 or the first anniversary of the
                     Metric/Enterprise/ Continental Employment Date, whichever
                     is later, but prior to September 30, 2002 or the second
                     anniversary of the Metric/Enterprise/
                      Continental Employment Date,
                     whichever is later...................................................... 80%
                  After September 30, 2002 or the second
                     anniversary of the Metric/Enterprise/
                     Continental Employment Date, whichever is later, but prior
                      to September 30, 2003 or the third anniversary of the
                      Metric/ Enterprise/Continental Employment
                      Date, whichever is later............................................... 60%
                  After September 30, 2003 or the third
                     anniversary of the Metric/Enterprise/
                     Continental Employment Date, whichever is later, but prior
                      to September 30, 2004 or the fourth anniversary of the
                      Metric/ Enterprise/Continental Employment Date,
                      whichever is later..................................................... 40%
                  After September 30, 2004 or the fourth
                     anniversary of the Metric/Enterprise/
                     Continental Employment Date, whichever is later, but prior
                      to September 30, 2005 or the fifth anniversary of the
                      Metric/ Enterprise/Continental Employment Date,
                     whichever is later...................................................... 20%
                  After September 30, 2005 or the fifth
                     anniversary of the Metric/Enterprise/
                     Continental Employment Date,
                     whichever is later......................................................  0%
</TABLE>

                                      -4-
<PAGE>

            By way of example, if a Metric Class B Member whose
      Metric/Enterprise/Continental Employment Date was on or prior to September
      30, 2000 were to terminate his employment with Integrated Defense
      Technologies or any of its Subsidiaries on December 31, 2003, his Class B
      Percentage Interest would be reduced by 40%."

      9. Section 8.4(a) is hereby amended to read in its entirety as follows:

            "(a) Veritas (and/or its Transferees) is hereby granted the right to
      purchase the entire Membership Interest (or at the discretion of Veritas
      any portion of the Membership Interest) held by any Member who is an IDT
      Employee, or who is a Permitted Transferee of an IDT Employee, in the
      event the employment of such Member (or the Transferor of such Member) by
      Integrated Defense Technologies or any of its Subsidiaries on a full time
      basis terminates (i) for cause or such Member voluntarily terminates his
      employment, with respect to such Member's Class A Membership Interest, or
      (ii) for any reason, with respect to such Member's Class B Membership
      Interest. Veritas may exercise this right at any time within the 60-day
      period immediately following the date such Member (or Transferor of such
      Member) ceases to be a full-time employee of Integrated Defense
      Technologies or any of its Subsidiaries."

      10. Section 8.4(b) is hereby amended to read in its entirety as follows:

            "(b) For purposes hereof, "TERMINATION FOR CAUSE" means termination
      of such Member's employment by Integrated Defense Technologies or any of
      its Subsidiaries by reason of (i) such Member's willful dishonesty
      towards, fraud upon, or deliberate injury or attempted injury to, or
      breach of fiduciary duty to Integrated Defense Technologies or any of its
      Subsidiaries; or (ii) conduct by such Member, in connection with the
      performance of the duties contemplated that would result in serious
      prejudice to the interests of Integrated Defense Technologies or any of
      its Subsidiaries, if such Member were to continue to be employed,
      including, without limitation, the conviction of a felony or a good faith
      determination by the Board of Directors of Integrated Defense Technologies
      or any of its Subsidiaries that such Member has committed acts involving
      moral turpitude; or (iii) such Member's failure to follow reasonable
      instructions or directions of the Board of Directors of Integrated Defense
      Technologies or any of its Subsidiaries, or any policy, rule or procedure
      of Integrated Defense Technologies or any of its Subsidiaries, in force
      from time to time."

      11. Section 8.4(c) is hereby amended to read in its entirety as follows:

            "(c) The purchase price at which Veritas may exercise its right
      shall be (i) with respect to any Class A Membership Interest, (x) for any
      period until the third anniversary of the Invested Capital Contribution
      Date, the Invested Capital of the Member plus 50% of the amount by which,
      if any, the Fair Market Value of the Class A Membership Interest exceeds
      the Invested Capital of the Member, or the Fair Market Value of the

                                      -5-
<PAGE>

      Class A Membership Interest, whichever is lower, and (y) for any period
      after the third anniversary of the Invested Capital Contribution Date, the
      Fair Market Value of the Class A Membership Interest; and (ii) with
      respect to any remaining Class B Membership Interest after application of
      the PEI Reduction Percentage, the Sierra Reduction Percentage or the
      Metric/Enterprise/Continental Reduction Percentage, as the case may be,
      the Fair Market Value of the Class B Membership Interest. For purposes of
      this Agreement "FAIR MARKET VALUE" of the Membership Interest shall be
      determined by the Board of Directors of Integrated Defense Technologies
      based on the most recent financial statements of Integrated Defense
      Technologies and its Subsidiaries available on the date such Member ceases
      to be a full time employee of Integrated Defense Technologies or any of
      its Subsidiaries."

      12. Section 8.5 is hereby amended to read in its entirety as follows:

            "8.5  MANDATORY SALE.

            (a) Any Member who is an IDT Employee or who is a Permitted
      Transferee of an IDT Employee shall sell his entire Class A Membership
      Interest to Veritas at a purchase price equal to the Invested Capital of
      the Member or the Fair Market Value of the Membership Interest, whichever
      is greater, in the event the employment of such Member (or the Transferor
      of such Member) by Integrated Defense Technologies or any of its
      Subsidiaries, is terminated without cause (as defined in SECTION 8.4(b)
      above).

            (b) The sale shall take place within 60 days following the
      termination of such Member's employment by Integrated Defense Technologies
      or any of its Subsidiaries."

      13. All other terms of the Operating Agreement shall remain in full force
and effect and by their execution of this Amendment, the Additional Members make
the representations and warranties set forth in Section 5.2 of the Operating
Agreement and agree to be bound by all of the terms and conditions of the
Operating Agreement applicable to the Members.

      14. This Amendment may be executed in several counterparts, and all
counterparts so executed shall constitute one agreement, binding on all of the
parties hereto, notwithstanding that all of the parties are not signatory to the
original or the same counterpart.

                                      -6-
<PAGE>

         IN WITNESS WHEREOF, each of Veritas and the Additional Members has
executed this Amendment as of the date first above written.

                                    THE VERITAS CAPITAL FUND, L.P.

                                    By: /s/ Robert B. McKeon
                                       -------------------------------
                                          Authorized Signature

                               ADDITIONAL MEMBERS:

[DIRECTOR CLASS B MEMBER]

[PEI CLASS B MEMBERS]

[METRIC CLASS B MEMBERS]

[ENTERPRISE CLASS B MEMBERS]

[CONTINENTAL CLASS B MEMBERS]

                                      -7-
<Page>

                           Amendment No. 6 to the
   Amended and Restated Limited Liability Company Operating Agreement of
                            IDT Holding, L.L.C.

      This Amendment No. 6 (this "AMENDMENT") to the Amended and Restated
Limited Liability Company Operating Agreement of IDT Holding, L.L.C., a Delaware
limited liability company (the "COMPANY"), is entered into as of February 5,
2002 by and among The Veritas Capital Fund, L.P., a Delaware limited partnership
("VERITAS"), and the Members listed on the signature page hereof (the
"MEMBERS").

      WHEREAS, the Company was formed pursuant to that certain Limited Liability
Company Operating Agreement dated as of August 6, 1999 among Veritas and certain
named employees of PEI, as amended by that certain Amended and Restated Limited
Liability Company Operating Agreement dated as of December 10, 1999 among
Veritas and certain named employees of PEI and Sierra, as further amended by
Amendment No. 1 to the Amended and Restated Limited Liability Company Operating
Agreement dated as of February 25, 2000 among Veritas and the Additional Members
named therein, as further amended by Amendment No. 2 to the Amended and Restated
Limited Liability Company Operating Agreement dated as of June 1, 2000 among
Veritas and the Additional Members named therein, as further amended by
Amendment No. 3 to the Amended and Restated Limited Liability Company Operating
Agreement dated as of September 29, 2000 among Veritas and the Additional
Members named therein, as further amended by Amendment No. 4 to the Amended and
Restated Limited Liability Company Operating Agreement dated as of June 1, 2001
among Veritas and the Additional Members named therein, and as further amended
by Amendment No. 5 to the Amended and Restated Limited Liability Operating
Agreement dated as of October 1, 2001 among Veritas and the Additional Members
named therein (the "OPERATING AGREEMENT");

      WHEREAS, Integrated Defense Technologies, Inc., a subsidiary of the
Company, proposes to offer shares of its common stock ("IDT SHARES") in an
initial public offering (the "IPO"); and

      WHEREAS, Veritas and the Members have determined to amend the
Operating Agreement in light of the IPO;

      NOW, THEREFORE, in consideration of the mutual agreements made herein,
Veritas and the Members hereby agree to amend the Operating Agreement as
follows:

      1. Unless otherwise defined herein, capitalized terms shall have the
meanings ascribed to them in the Operating Agreement.

      2. The last sentence of Section 3.3 is hereby amended to read as follows:

            "In no event shall the aggregate Class B Percentage Interests exceed
5.8816%."

<PAGE>

3. Section 4.1(a) is hereby amended to read in its entirety as follows:

            "4.1 ALLOCATION OF NET PROFITS AND NET LOSS OF THE COMPANY. Net
Profits and Net Loss of the Company in each Fiscal Year shall be allocated to
the Members as follows:

                  (a) NET PROFITS.  Net Profits shall be allocated among the
Members as follows:

                        (i) first to offset any Net Loss allocated to a Member;

                        (ii) next to the Class B Members PRO RATA in accordance
                  with their respective Class B Percentage Interests in an
                  amount equal to the quotient of (A) the aggregate Class B
                  Percentage Interests and (B) 100%, times the amounts
                  distributed to the Class A Members under Section 4.4(a) and to
                  the Class B Members under Section 4.4(b)(ii); and

                        (iii) thereafter among the Members PRO RATA in
                  accordance with their respective Percentage Interests."

4. Section 4.4 is hereby amended to read in its entirety as follows:

            "4.4  DISTRIBUTIONS.  Available  Cash  shall be  distributed  to the
Members as follows:

            (a) FIRST to the Class A Members in proportion to their unreturned
Invested Capital until such time as they have received cumulative  distributions
under this SECTION 4.4 equal to all of their Invested Capital;

            (b) SECOND to the Class B Members PRO RATA in accordance with their
respective Class B Percentage Interests until such time as they have received an
amount equal to (i) the quotient of (A) the aggregate Class B Percentage
Interests and (B) 100%, times the amount distributed to the Class A Members
under Section 4.4(a) plus (ii) such additional amounts so that the distributions
to the Class B Members under this Section 4.4(b) divided by the total amounts
distributed under Sections 4.4(a) and 4.4(b) equals the aggregate of the Class B
Percentage Interests, when expressed as a percentage; and

            (c) THEREAFTER, to the Members PRO RATA in accordance with their
respective Percentage Interests."

5. A new Section 4.6 is hereby added to read as follows:

                                       2
<PAGE>

            4.6 SPECIAL RESTRICTIONS ON POST-IPO SALES BY AFFECTED CLASS A
      MEMBERS AND CLASS B MEMBERS. Notwithstanding the foregoing provisions of
      this Article IV, the Class A Members identified on SCHEDULE 1 to this
      Amendment (the "AFFECTED CLASS A MEMBERS") and the Class B Members shall
      not be allocated income from or be entitled to distributions from the sale
      of IDT Shares occurring within 180 days after the public offering date set
      forth on the final prospectus used to sell IDT Shares in connection with
      the IPO (the "RESTRICTION PERIOD"). After the termination of the
      Restriction Period, distributions and allocations will be made first to
      the Affected Class A Members and the Class B Members in amounts they would
      have been allocated and received but for the application of this Section
      4.6 (the "IPO MAKEUP"). After the IPO Makeup and the expiration of the
      Restriction Period, the Affected Class A Members and the Class B Members
      shall participate under this Article IV as if this Section 4.6 had not
      been in effect."

      6. A new Section 4.7 is hereby added to read as follows:

            "4.7 DISTRIBUTION OF TAX ADVANCES. Veritas, in its discretion, may
      cause the Company to make an advance ("TAX ADVANCE") to the Class A
      Members and/or for the Class B Members as a group to the extent that cash
      distributions are insufficient to pay the combined Federal, state and
      local income tax liabilities of such Members assuming for this purpose
      that all such Members are required to pay Federal, state and local income
      tax on such income at the highest rate applicable to such income. Tax
      Advances shall be repaid by reducing the amount of current or succeeding
      distributions which would otherwise be paid to such Members, or if such
      distributions are not sufficient for that purpose, by reducing the
      proceeds of liquidation otherwise payable to such Members."

      7. SCHEDULE A and SCHEDULE B to the Operating Agreement are hereby amended
in the forms attached hereto to reflect the names, addresses, Capital
Contributions, Class A Percentage Interests and Class B Percentage Interests of
the Member after giving effect to the amendments to the Operating Agreement
effected by this Amendment.

      8. All other terms of the Operating  Agreement  shall remain in full force
and effect.

      9. This Amendment may be executed in several counterparts, and all
counterparts so executed shall constitute one agreement, binding on all of the
parties hereto, notwithstanding that all of the parties are not signatory to the
original or the same counterpart.

                                       3
<PAGE>

      IN WITNESS WHEREOF, each of Veritas and the Members has executed this
amendment as of the date first above written.

                                    THE VERITAS CAPITAL FUND, L.P.

                                    By: /s/ Robert B. McKeon
                                       -------------------------------
                                           Authorized Signature

            [MEMBERS]

                                       4<Page>

                                                                    Exhibit 10.1

                         ASBURY AUTOMOTIVE GROUP L.L.C.

                               1999 OPTION PLAN

               As Amended and Restated Effective December 1, 2001

                  The purpose of the Asbury Automotive Group L.L.C. Option Plan
(the "Plan") is to provide designated officers and other key employees of Asbury
Automotive Group L.L.C., a Delaware limited liability company (the "Company"),
and its subsidiaries with the opportunity to receive grants of options to
purchase equity interests in the Company. The Company believes that the Plan
will encourage the participants to contribute materially to the growth of the
Company, attract talented management personnel and align the economic interests
of the participants with those of the owners. Capitalized terms used herein
without definition shall have the meanings assigned thereto in the Second
Amended and Restated Limited Liability Company Agreement of the Company, dated
December 31, 1998, as amended from time to time (the "LLC Agreement").

                  1. ADMINISTRATION. (a) COMMITTEE. The Plan shall be
administered and interpreted by a committee of two or more individuals (the
"Committee") appointed by the Board of Directors of the Company (the "Board");
however, the Board itself may ratify or approve any grants as the Board deems
appropriate.

                  (b) COMMITTEE AUTHORITY. The Committee shall have the sole
authority to (i) determine the individuals to whom grants shall be made under
the Plan, (ii) determine the type, size and terms of the grants to be made to
each such individual, (iii) determine the time when the grants will be made and
the duration of any applicable exercise or restriction period, including the
criteria for exercisability and the acceleration of exercisability, (iv) amend
the terms of any previously issued grant, (v) determine the initial Membership
Account of any Membership Interest (as defined below) issued pursuant to an
Option and (vi) deal with any other matters arising under the Plan.

                  (c) COMMITTEE DETERMINATION. The Committee shall have full
power and authority to administer and interpret the Plan, to make factual
determinations and to adopt or amend such rules, regulations, agreements and
instruments for implementing the Plan and for the conduct of its business as it
deems necessary or advisable, in its sole discretion. The Committee's
interpretations of the Plan and all determinations made by the Committee
pursuant to the powers vested in it hereunder shall be conclusive and binding on
all persons having any interest in the Plan or in any grants awarded hereunder.
All powers of the Committee shall be executed in its sole discretion, in the
best interest of the Company, not as a fiduciary, and in keeping with the
objectives of the Plan and need not be uniform as to similarly situated
individuals.

<Page>
                                                                               2

                  2. GRANTS. Awards under the Plan shall consist of grants
(each, a "Grant") of nonqualified options (the "Options"), as described in
Section 5. All Grants shall be subject to the terms and conditions set forth
herein and to such other terms and conditions consistent with this Plan as the
Committee deems appropriate and as are specified in writing by the Committee to
the individual in a grant instrument or an amendment to the grant instrument
(the "Grant Instrument"). The Committee shall approve the form and provisions of
each Grant Instrument. Grants need not be uniform as among the Grantees (as
defined below).

                  3. MEMBERSHIP INTERESTS SUBJECT TO THE PLAN. (a) NATURE OF
OPTIONS GRANTED. Each Option granted under the Plan shall provide the Grantee
solely the right to acquire a limited liability company interest in the Company
(a "Membership Interest") in exchange for a dollar amount (the "Exercise Price")
specified in such Option.

                  (b) AMENDMENTS AND ADJUSTMENTS. Notwithstanding anything
herein to the contrary, in the event (i) of an initial public offering under the
Securities Act of 1933 of equity interests in the Company or an Affiliate
thereof or (ii) that the Company desires to cause (x) a transfer of all or a
substantial portion of (A) the assets of the Company or (B) the equity interests
in the Company to a stock corporation or other business entity ("Newco"), (y) a
merger or consolidation of the Company into or with a Newco or (Z) any
restructuring of all or substantially all of the assets or equity interests of
the Company into a Newco, in any case as part of a "roll-up" into a Newco of all
or at least a majority of the motor vehicle dealerships and related businesses
owned directly or indirectly by the Company and its Affiliates (a "Roll-up"),
this Plan, all Grant Instruments, all Options and all Membership Interests
subject to an Option shall be amended to provide for each Grantee benefits
comparable, in the sole discretion of the Committee, to the benefits intended to
be provided hereunder and each Grantee and holder of such a Membership Interest
shall take such steps to effect such transfer, merger, consolidation or other
restructuring as may be requested by the Company, including, without limitation,
consenting to the amendment of the Plan, the relevant Grant Instrument and of
the LLC Agreement, transferring or tendering his or her Membership Interest to
Newco in exchange or consideration for shares of capital stock or other equity
interests of Newco, and retransferring, tendering or exchanging such interests
for different interests.

                  4. ELIGIBILITY FOR PARTICIPATION. (a) ELIGIBLE PERSONS. All
officers and other key employees of the Company and its Subsidiaries
("Employees") shall be eligible to participate in the Plan.

                  (b) SELECTION OF GRANTEES. The Committee shall select the
Employees who receive Grants under this Plan (the "Grantees").

<Page>
                                                                               3

                  5. GRANTING OF OPTIONS. (a) AMOUNT OF EXERCISE PRICE. The
Committee shall determine the Exercise Price with respect to each Option at the
time of grant, which, except as the Committee may otherwise provide, shall not
be less than the Fair Market Value (as defined below) of the Membership Interest
in respect of which the Option is granted. The aggregate Exercise Price of all
Options issued under this Plan shall not, in the aggregate, exceed $18 million.

                  (b) TYPE OF OPTION. Grants shall be "nonqualified options"
that are not intended to satisfy the provisions of Section 422 of the Code and
shall be made in accordance with the terms and conditions set forth herein.

                  (c) OPTION TERM. The Committee shall determine the term of
each Option. The term of any Option shall not exceed 10 years from the date of
Grant.

                  (d) EXERCISABILITY OF OPTIONS; CONDITIONS. Options shall
become exercisable in accordance with such terms and conditions, consistent with
the Plan, as may be determined by the Committee and specified in the Grant
Instrument. The Committee may accelerate the vesting or exercisability of any or
all outstanding Options at any time for any reason. Unless the Committee
provides otherwise in the Grant Instrument, only Options that are vested may be
exercised and Options shall vest, subject to the continuous employment of the
Grantee by the Company, at the rate of 33-1/3% for each year the Grantee is
employed by, or rendering services to, the Company following the date of Grant;
PROVIDED that, unless the Committee provides otherwise in the Grant Instrument,
no Option shall vest until the Grantee has been employed by, or rendering
services to, the Company for a period of one year following the date of Grant.
On or before the date upon which any Grantee will exercise any exercisable
Option, such Grantee shall, at the request of the Committee, execute the LLC
Agreement, as amended to reflect, INTER ALIA, the qualifications set forth in
Section 6 hereof, with respect to the Membership Interest to be acquired by such
Grantee upon exercise of such Option.

                  (e) TERMINATION OF EMPLOYMENT, DISABILITY OR DEATH. (i) Except
as provided below or as otherwise provided by the Committee in the Grant
Instrument, an Option may only be exercised while the Grantee is employed by, or
providing services to, the Company as an Employee, consultant or member of the
Board. Unless the Committee provides otherwise in the Grant Instrument, in the
event that a Grantee ceases to be employed by, or provide services to, the
Company for any reason other than resignation (except resignation in connection
with retirement) or termination for Cause (as defined below), any Option which
is otherwise vested and exercisable by the Grantee shall terminate unless
exercised within 90 days after the date on which the Grantee ceases to be
employed by, or provide services to, the Company (or within such other period of
time as may be specified by the Committee), but in any event no later than the
date of expiration of the Option term. Except as otherwise provided by the
Committee, any of the Grantee's Options that are not otherwise vested and
exercisable as of the date on which the Grantee ceases to be employed by, or
provide services to, the Company shall terminate as of such date.

                  (ii) Except as otherwise provided by the Committee, in the
event that the Grantee ceases to be employed by, or provide services to, the
Company on account of a resignation (except resignation in connection with
retirement) or a termination for Cause by the Company,

<Page>
                                                                               4

any Option held by the Grantee (whether or not then vested and exercisable)
shall terminate and be canceled as of the date the Grantee ceases to be employed
by, or provide services to, the Company. Except as otherwise provided by the
Committee, any of the Grantee's Options that are not otherwise vested and
exercisable as of the date on which the Grantee ceases to be employed by, or
provide services to, the Company shall terminate as of such date.

                  (iii) For purposes of Section 5(d), Section 5(e) and Section
         7:

                  (A) The term "Company" shall mean the Company and its
         Affiliates.

                  (B) "Employed by, or provide services to, the Company" shall
         mean employment or service as an employee, consultant or Board member
         (so that, for purposes of exercising Options, a Grantee shall not be
         considered to have terminated employment or service until the Grantee
         ceases to be an employee, consultant or Board member), unless the
         Committee determines otherwise.

                  (C) "Cause" shall mean, except to the extent specified
         otherwise by the Committee in the Grant Instrument, a finding by the
         Committee that the Grantee (i) has breached his or her employment or
         service contract with the Company, (ii) has engaged in disloyalty to
         the Company, including, without limitation, fraud, embezzlement, theft,
         commission of a felony or proven dishonesty in the course of his or her
         employment or service, (iii) has disclosed trade secrets or
         confidential information of the Company to persons not entitled to
         receive such information or (iv) has engaged in such other behavior
         detrimental to the interests of the Company as the Committee
         determines.

                  (f) EXERCISE OF OPTIONS. Except as otherwise provided by the
Committee in the Grant Instrument, a Grantee may exercise an Option that has
become vested and exercisable, in whole or in part, by delivering a notice of
exercise to the Company with payment of the Exercise Price (plus the amount of
any withholding tax due at the time of exercise after the application of Section
7 hereof) and (i) executing the LLC Agreement, as amended to reflect, INTER
ALIA, the qualifications set forth in Section 6 hereof, thereby becoming a
Member of the Company or (ii) taking such other action as the Committee may
request or approve. Except as otherwise provided by the Committee in the Grant
Instrument, upon exercise of an Option, such Grantee shall have a Membership
Account (and other economic rights) equal to the Membership Account (and other
economic rights) such Grantee would have had if, on the date such Option was
granted, the Grantee had made a Capital Contribution to the Company in an amount
equal to the Exercise Price paid upon the exercise of such Option.

<Page>
                                                                               5

                  6. RIGHTS AND OBLIGATIONS OF GRANTEES WHO ACQUIRE MEMBERSHIP
INTERESTS. (a) IN GENERAL. Unless the Committee provides otherwise in the Grant
Instrument, subject to the other provisions of this Section 6, a Grantee who
acquires a Membership Interest upon the exercise of any Option shall have the
same rights and obligations under the LLC Agreement as Gibson FP, PROVIDED that
(i) such Grantee shall not have the rights and obligations of Gibson FP relating
to the Gibson FP Carried Interest Amount and (ii) the consent of such Grantee to
any amendment, supplement, waiver or consent of or with regard to the LLC
Agreement shall not be required so long as such amendment, supplement, waiver or
consent does not affect such Grantee, in the sole discretion of the Committee,
in any way differently than it affects Gibson FP.

                  (b) COMPANY'S RIGHT TO REPURCHASE MEMBERSHIP INTERESTS. Unless
the Committee provides otherwise in the Grant Instrument, in the event that a
Grantee terminates employment from, or ceases to render services to, the
Company, the Company shall have the right to purchase all Membership Interests
then owned by such Grantee, or such Grantee's successor, that were acquired upon
the exercise of an Option (which right or obligation may be assigned to the
members of the Company on a pro rata basis among the purchasing members, if
any), at any time after such termination, but not prior to the six-month
anniversary of the date of such exercise, at a price equal to the Fair Market
Value of the Membership Interest. As used in this Plan, "Fair Market Value"
shall mean, unless otherwise defined in a Grant Instrument, as of any date, the
fair market value on such date of a Membership Interest as determined in good
faith by the Committee.

                  (c) If any transfer of all or any portion of an Option or
Membership Interest acquired upon the exercise of an Option, or of any
beneficial interest therein, upon default, foreclosure, forfeit, bankruptcy
(voluntary or involuntary), court order, levy of attachment, execution or
otherwise than voluntarily (an "Involuntary Transfer") or a transfer in
violation of this Plan, the applicable Grant Instrument or the LLC Agreement has
occurred and not been cured within 30 days after written notice has been given
to the person transferring such Option or Membership Interest (the "Transferor")
or to the person to whom or to which such Option or Membership Interest is
transferred (the "Transferee"), the Company shall have the right, in the case of
an Option, to terminate such Option without consideration, or, in the case of a
Membership Interest, to purchase all of such Membership Interest at a purchase
price equal to the Fair Market Value thereof as of the date of such event. The
closing date of any purchase described in this Section 6(c) shall be on the 30th
day after a determination of the Fair Market Value of the Membership Interest to
be purchased is made.

                  (d) In the event the Company is converted from a limited
liability company to a corporation and (i) outstanding Options are adjusted to
provide the right to purchase shares of Newco capital stock and/or (ii) future
options provide the right to purchase shares of Newco capital stock, all rights
of the Company under the Plan shall apply with respect to such adjusted Options
and Newco capital stock and shall inure to the benefit of the Company and any
successor entities.

                  7. WITHHOLDING OF TAXES. Each Grant (and each issuance of a
Membership Interest pursuant to the exercise of any Option) shall be subject to
applicable federal (including FICA), state and local tax withholding
requirements. The Company shall have the right to

<Page>
                                                                               6

deduct from other wages paid to the Grantee any federal, state or local taxes
required by law to be withheld with respect to such Grants, or the exercise
thereof, or require that the Grantee or other person receiving or exercising
Grants pay to the Company the amount of any federal, state or local taxes that
the Company is required to withhold with respect to such Grants or exercise and
the Company may defer issuance of the Membership Interest until such
requirements are satisfied.

                  8. NONTRANSFERABILITY OF GRANTS. Except as provided below,
only the Grantee may exercise rights under a Grant during the Grantee's
lifetime. A Grantee may not transfer those rights except by will or by the laws
of descent and distribution. When a Grantee dies, the personal representative or
other person entitled to succeed to the rights of the Grantee ("Successor
Grantee") may exercise such rights. A Successor Grantee must furnish proof
satisfactory to the Company of his or her right to receive the Grant under the
Grantee's will or under the applicable laws of descent and distribution.

                  9. REQUIREMENTS FOR ISSUANCE OF MEMBERSHIP INTEREST. Except as
otherwise provided by the Committee in the Grant Instrument, no Membership
Interest shall be issued in connection with any Grant hereunder unless and until
(i) if the Company so requests, the Grantee executes the LLC Agreement, as
amended to reflect, INTER ALIA, the qualifications set forth in Section 6
hereof, and thereby becomes a Member of the Company and (ii) all legal
requirements applicable to the issuance of such Membership Interest have been
complied with to the satisfaction of the Committee. The Committee shall have the
right to condition any Grant made to any Grantee hereunder on such Grantee's
undertaking in writing to comply with such restrictions on his or her subsequent
disposition of such Membership Interest as the Committee shall deem necessary or
advisable, and the certificates, if any, representing such Membership Interest
may be legended to reflect any such restrictions.

                  10. CHANGE OF CONTROL OF THE COMPANY. Unless otherwise defined
in the Grant Instrument, a "Change of Control" shall be deemed to have occurred
if Ripplewood Holdings L.L.C., or its affiliates, cease to control the Company
or its business.

                  (a) NOTICE AND ACCELERATION. Unless otherwise set forth in the
Grant Instrument, upon a Change of Control (i) the Company shall provide each
Grantee with outstanding Grants written notice of such Change of Control and
(ii) all outstanding Options shall automatically accelerate and become fully
exercisable unless otherwise determined by the Committee.

                  (b) ASSUMPTION OF GRANTS. Unless otherwise set forth in the
Grant Instrument, upon a Change of Control where the Company is not the
surviving entity (or survives only as a subsidiary of another entity), unless
the Committee determines otherwise, all outstanding Options that are not
exercised shall be assumed by, or replaced with comparable options or rights by,
the surviving entity, and other outstanding Grants shall be converted to similar
grants of the surviving entity.

<Page>
                                                                               7

                  11. AMENDMENT AND TERMINATION OF THE PLAN. (a) AMENDMENT. The
Board may amend or terminate the Plan at any time.

                  (b) TERMINATION OF PLAN. The Plan shall terminate on December
31, 2008, unless the Plan is terminated earlier by the Board or is extended by
the Board.

                  (c) TERMINATION AND AMENDMENT OF OUTSTANDING GRANTS. A
termination or amendment of the Plan that occurs after a Grant is made shall not
materially impair the rights of a Grantee unless the Grantee consents. The
termination of the Plan shall not impair the power and authority of the
Committee with respect to an outstanding Grant. Whether or not the Plan has
terminated, an outstanding Grant may be terminated or amended (i) by the Company
as provided hereunder or (ii) by agreement of the Company and the Grantee
consistent with the Plan.

                  (d) GOVERNING DOCUMENT. This Plan shall be the controlling
document. No other statements, representations, explanatory materials or
examples, oral or written, may amend this Plan in any manner, except for
termination or amendment pursuant to Section 11(c) hereof. This Plan shall be
binding upon and enforceable against the Company and its successors and assigns.

                  12. FUNDING OF THE PLAN. This Plan shall be unfunded. The
Company shall not be required to establish any special or separate fund or to
make any other segregation of assets to assure the payment of any Grants under
this Plan. In no event shall interest be paid or accrued on any Grant, including
unpaid installments of Grants.

                  13. RIGHTS OF PARTICIPANTS. Nothing in this Plan shall entitle
any Employee or other person to any claim or right to be granted a Grant under
this Plan. Neither this Plan nor any action taken hereunder shall be construed
as giving any individual any rights to be retained by or in the employ of the
Company or any other employment rights.

                  14. HEADINGS. Section headings are for reference only. In the
event of a conflict between a heading and the content of a Section, the content
of the Section shall control.

                  15. EFFECTIVE DATE OF THE PLAN. The amended and restated Plan
shall be effective for grants made on or after December 1, 2001.

                  16. MISCELLANEOUS. (a) COMPLIANCE WITH LAW. The Plan, the
exercise of Options and the obligations of the Company to issue Membership
Interests under Grants shall be subject to all applicable laws and to approvals
by any governmental or regulatory agency as may be required, including national
or foreign securities exchanges. The Committee may revoke any Grant if it is
contrary to law, including the federal securities laws and any applicable state
or foreign securities laws or modify a Grant to bring it into compliance with
any valid and mandatory government regulation. The Committee may also adopt
rules regarding the withholding of taxes on payments to Grantees. The Committee
may, in its sole discretion, agree to limit its authority under this Section.

                  (b) GOVERNING LAW. THE VALIDITY, CONSTRUCTION, INTERPRETATION
AND EFFECT OF THE PLAN AND GRANT INSTRUMENTS ISSUED UNDER THE PLAN SHALL BE
GOVERNED AND CONSTRUED BY AND DETERMINED IN ACCORDANCE

<Page>
                                                                               8

WITH THE LAWS OF THE STATE OF DELAWARE WITHOUT GIVING EFFECT TO THE CONFLICT OF
LAWS PROVISIONS THEREOF.

                  (c) INDEMNIFICATION. Each person who is or shall have been a
member of the Board or the Committee shall be indemnified and held harmless by
the Company to the fullest extent permitted by law against and from any loss,
cost, liability or expense (including any related attorney's fees and advances
thereof) in connection with, based upon or arising or resulting from any claim,
action, suit or proceeding to which such person may be made a party or in which
such person may be involved by reason of any action taken or failure to act
under or in connection with the Plan or any Grant Instrument and from and
against any and all amounts paid by such person in settlement thereof, with the
Company's approval, or paid by such person in satisfaction of any judgment in
any such action, suit or proceeding against such person, provided that he or she
shall give the Company an opportunity, at its own expense, to handle and defend
the same before he or she undertakes to handle and defend it on his or her own
behalf. The foregoing right of indemnification shall not be exclusive and shall
be independent of any other rights of indemnification to which such persons may
be entitled under the LLC Agreement, by contract, as a matter of law or
otherwise.

                  (d) NO LIMITATION ON COMPENSATION. Nothing in the Plan shall
be construed to limit the right of the Company to establish other plans or to
pay compensation to its employees in cash or property, in a manner which is not
expressly authorized under the Plan.

                  (e) NO IMPACT ON BENEFITS. Options granted under the Plan are
not compensation for purposes of calculating an employee's rights under any
employee benefit plan, except to the extent provided in any such plan.

                  (f) FREEDOM OF ACTION. Subject to Section 11, nothing in the
Plan or any Grant Instrument shall be construed as limiting or preventing the
Company or any of its Affiliates from taking any action with respect to the
operation or conduct of its or their business that it deems appropriate or in
its best interest.

                  (g) NO RIGHT TO PARTICULAR ASSETS. Nothing contained in this
Plan and no action taken pursuant to this Plan shall create or be construed to
create a trust of any kind or any fiduciary relationship between the Company and
its Affiliates, on the one hand, and any Grantee or executor, administrator or
other personal representative or designated beneficiary of such Grantee, on the
other hand, or any other persons. Any reserves that may be established by the
Company or its Affiliates in connection with this Plan shall continue to be held
as part of the general funds of the Company or such Affiliate, and no individual
or entity other than the Company or such Affiliate shall have any interest in
such funds until paid to a Grantee. To the extent that any Grantee or such
Grantee's executor, administrator or other personal representative, as the case
may be, acquires a right to receive any payment from the Company or any of its
Affiliates pursuant to this Plan, such right shall be no greater than the right
of an unsecured general creditor of the Company or such Affiliate.

                  (h) NOTICES. Each Grantee shall be responsible for furnishing
the Committee with his or her current and proper address for the mailing of
notices and delivery of agreements. Any notices required or permitted to be
given shall be deemed given if directed to the person to whom

<Page>
                                                                               9

addressed at such address and mailed by regular United States mail, first-class
and prepaid. If any item mailed to such address is returned as undeliverable to
the addressee, mailing will be suspended until the Grantee furnishes the proper
address.

                  (i) SEVERABILITY OF PROVISIONS. If any provision of this Plan
shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and this Plan shall be construed
and enforced as if such provision had not been included.

                  (j) INCAPACITY. Any benefit payable to or for the benefit of a
minor, an incompetent person or other person incapable of receiving such benefit
shall be deemed paid when paid to such person's guardian or to the party
providing or reasonably appearing to provide for the care of such person, and
such payment shall fully discharge the Board, the Committee, the Company, its
Affiliates and other parties with respect thereto.

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