Document:

<PAGE>

                                                                   Exhibit 4.2.2

                       FIFTH AMENDMENT TO LOAN AGREEMENT
                       ---------------------------------

          THIS FIFTH AMENDMENT TO LOAN AGREEMENT, dated as of March 28, 2001
(this "Amendment"), is among NUMATICS, INCORPORATED, a Michigan corporation (the
"Company"), NUMATICS LTD., a corporation organized and existing under the laws
of Canada ("Numatics Ltd."), and NUMATICS GMBH, a corporation organized and
existing under the laws of the Federal Republic of Germany ("Numatics GmbH")
(the Company, Numatics Ltd. and Numatics GmbH, the "Borrowers") the lenders set
forth on the signature pages hereof (collectively, the "Lenders"), BANK ONE,
MICHIGAN, a Michigan banking corporation, as administrative agent for the
Lenders (in such capacity, the "Administrative Agent"), and FLEET NATIONAL BANK,
formerly known as BANKBOSTON, N.A., a national banking association, as
documentation agent for the Lenders (in such capacity, the "Documentation
Agent", and together with the Administrative Agent, collectively, the "Agents").

                                   RECITALS
                                   --------

          A.   The Borrowers, the Agents and the Lenders are parties to an
Amended and Restated Loan Agreement dated as of March 23, 1998, as amended (the
"Loan Agreement").

          B.   The Borrowers are in default under the Loan Agreement, have
requested the Agent and the Lenders amend the Loan Agreement and desire to amend
the Loan Agreement set forth herein, and the Agents and the Lenders are willing
to do so strictly in accordance with the terms hereof.

                                     TERMS
                                     -----

          In consideration of the premises and of the mutual agreements herein
contained, the parties agree as follows:

ARTICLE I.  AMENDMENTS.  Upon fulfillment of the conditions set forth in Article
            ----------
III hereof, the Loan Agreement shall be amended as follows:

          1.1  The following new definitions are added to Section 1.1 in
appropriate alphabetical order:

          "Fifth Amendment" shall mean the Fifth Amendment to this Agreement
           ---------------
dated as of March 28, 2001 among the Borrowers, the Lenders and the Agents.

          "Fifth Amendment Effective Date" shall mean the effective date of the
           ------------------------------
Fifth Amendment.

          1.2  The definitions of "Applicable Margin", "Fixed Charge Coverage
Ratio", "Maturity Date A", "Maturity Date B" and "Termination Date" contained in
Section 1.1 are restated as follows:

                                      -1-
<PAGE>

          "Applicable Margin" shall mean, as of the Fifth Amendment Effective
           -----------------
Date and thereafter, (a) 4.00% with respect to each Revolving Credit Loan and
Term Loan A that is a LIBOR Loan and the S/L/C fee, (b) 4.00% with respect to
each Term Loan B that is a LIBOR Loan, (c) 1.50% with respect to each Prime Rate
Loan and (d) 0.50% with respect to commitment fees.

          "Fixed Charge Coverage Ratio" shall mean, as of the end of any month,
           ---------------------------
the ratio of (a) EBITDA for the three consecutive months then ending minus
Capital Expenditures for such period of three months, to (b) without
duplication, Consolidated Interest Expense, plus cash tax payments, plus all
payments on Funded Debt (excluding prepayments required pursuant to 3.1(d)),
plus all cash dividends paid or required to be paid with respect to any Capital
Stock of the Company and all redemptions of any Capital Stock, in each case as
determined for such three months.

          "Maturity Date A" shall mean the earlier to occur of (a) the date on
           ---------------
which the maturity of Term Loan A is accelerated pursuant to Section 6.2 and (b)
June 30, 2002.

          "Maturity Date B" shall mean the earlier to occur of (a) the date on
           ---------------
which the maturity of Term Loan B is accelerated pursuant to Section 6.2 and (b)
June 30, 2002.

          "Termination Date" shall mean the earlier to occur of (a) June 30,
           ----------------
2002 and (b) the date on which the Revolving Credit Commitments shall be
terminated pursuant to Sections 2.2 or 6.2.

          1.3    Section 4.21 is restated as follows:

      0.21  Management Group.  The Management Group owns 93.88% of the issued
            -----------------
and outstanding Capital Stock of the Company as described on Schedule 4.21-A,
                                                             ---------------
and Harvard owns 6.12% of the issued and outstanding Capital Stock of the
Company as described on Schedule 4.21-A.  All shareholder agreements and other
                        ---------------
agreements relating to the ownership, transfer, control or otherwise relating to
the Capital Stock of the Company or any of the Guarantors are listed on Schedule
                                                                        --------
4.21-B hereto.
------

          1.4    Section 5.1(d)(xi) is re-designated as 5.1(d)(xiv) and the
following three new subsections are added immediately prior thereof:

          (xi)   As soon as available and in any event within three Business
Days after the end of each month, a rolling ninety day cash flow forecast with
projected borrowing base information in form and detail satisfactory to the
Agents;

          (xii)  Within 10 Business Days after the end of each month, a report
(subject to any confidentiality requirements of the prospective new lenders or
investors) on the progress of the Company in finding a source of financing or
equity to refinance the Indebtedness and other obligations hereunder in full,
which report shall be in form and detail satisfactory to the Agents;

                                      -2-
<PAGE>

          (xiii)  As soon as available and in any event on or before May 31,
2001, appraisal reports, performed by independent third party appraisers
acceptable to the Required Lenders and at the expense of the Company, covering
substantially all of the machinery and equipment and real estate of the Company
and each of its Subsidiaries; and

          1.5     Section 5.1(e) is restated as follows:

          (e)     Accounting, Access to Records, Books, Etc.  Maintain a
                  -----------------------------------------
system of accounting established and administered in accordance with sound
business practices to permit preparation of financial statements in accordance
with Generally Accepted Accounting Principles and to comply with the
requirements of this Agreement and, at any reasonable time and from time to
time, (i) permit any Lender or the Administrative Agent, or any agents or
representatives thereof, to examine and make copies of and abstracts from the
records and books of account of, and visit the properties of, the Company and
its Subsidiaries, and to discuss the affairs, finances and accounts of the
Company and its Subsidiaries with their respective directors and officers, and,
after notice to the Company, employees and independent auditors, and by this
provision the Company does hereby authorize such persons to discuss such
affairs, finances and accounts with any Lender or the Administrative Agent, and
(ii) permit the Administrative Agent or any of its agents or representatives to
conduct a comprehensive field audit of its books, records, properties and
assets, including without limitation all collateral subject to the Security
Documents, real estate appraisals and site access, at the Company's expense,
provided that (x) Company shall not be liable for the charges, costs and
expenses of more than three such comprehensive field audits per fiscal year
prior to the occurrence and continuance of an Event of Default and (y) at the
request of the Required Lenders, the Administrative Agent or any of its agents
or representatives shall conduct up to three such comprehensive field audits per
fiscal year.

          1.6     Section 5.1(g) is amended by adding the following to the end
thereof: "In addition, at any time after the difference of (a) the lesser of the
Aggregate Tranche A Revolving Credit Commitments (which is $32,000,000 as of the
Fifth Amendment Effective Date) or the Borrowing Base minus (b) the aggregate
Revolving Credit Advances is less than $4,000,000, if requested by the Agents,
the Borrowers and the Guarantors shall direct all customers and other account
debtors to make all payments in connection with any obligations of any Borrower
or Guarantor directly to a lock-box account, which account shall be a non-
interest bearing account over which the Administrative Agent shall have the
power of application and withdrawal, and all amounts received in such lock-box
account shall be promptly applied to the Advances on such terms reasonably
required by the Agents (with such amounts applied to the Revolving Credit Loans
if payments on the other Advances and obligations under the Loan Agreement are
not then due, and applied in a manner to minimize any obligations of the
Borrowers under Section 3.9), and the Borrowers and the Guarantors shall
promptly execute such lock-box agreements, dominion of funds agreements and
related agreements in connection therewith, each in form and substance
satisfactory to the Agents."

          1.7     A new Section 5.1(h) is hereby added as follows:

                                      -3-
<PAGE>

          (h)     Refinancing.  Use its best efforts to find an alternative
                  -----------
source of financing or equity to refinance the indebtedness and other
obligations hereunder and terminate the Commitments as soon as possible.

          1.8     Sections 5.2(a), (b) and (c) are restated as follows:

          (a)     Fixed Charge Coverage Ratio.  Permit or suffer the Fixed
                  ---------------------------
Charge Coverage Ratio to be less than 1.0 to 1.0 as of the end of any month.

          (b)     Minimum Availability.  Permit or suffer the difference of
                  --------------------
(a) the lesser of the Aggregate Tranche A Revolving Credit Commitments (which is
$32,000,000 as of the Fifth Amendment Effective Date) or the Borrowing Base
minus (b) the aggregate Revolving Credit Advances, to be less than $8,000,000 as
of July 30, 2001, $8,000,000 as of August 31, 2001, $10,000,000 as of January
31, 2002 or $10,000,000 as of February 28, 2002.

          (c)     [intentionally omitted]

          1.9     Section 5.2(e)(vii) is restated as follows:

          (vii)   [intentionally omitted].

          1.10    Section 5.2(g) is restated as follows:

          (g)     Merger; Acquisitions; Etc.  Purchase or otherwise acquire, or
                  --------------------------
permit or suffer any Subsidiary to purchase or otherwise acquire, whether in one
or a series of transactions, all or a substantial portion of the business
assets, rights, revenues or property, real, personal or mixed, tangible or
intangible, of any person, or all or a substantial portion of the capital stock
of or other ownership interest in any other person; nor merge or consolidate or
amalgamate with any other person or take any other action having a similar
effect, nor enter into any joint venture or similar arrangement with any other
person.

          1.11    Section 5.2(h) is restated as follows:

          (h)     Disposition of Assets; Etc.  Sell, lease, license, transfer,
                  --------------------------
assign or otherwise dispose of all or a material portion of its business,
assets, rights, revenues or property, real, personal or mixed, tangible or
intangible, whether in one or a series of transactions, other than inventory
sold in the ordinary course of business upon customary credit terms and sales of
scrap or obsolete material or equipment, and shall not permit or suffer any
Subsidiary to do any of the foregoing; provided, however, that this Section
                                       --------  -------
5.2(h) shall not prohibit sales as to which proceeds are used to make optional
prepayments on the Term Loans pursuant to Section 3.1.

          1.12    Section 5.2(j) is restated as follows:

                                      -4-
<PAGE>

          (j)     Dividends and Other Restricted Payments.  Make, pay, declare
                  ---------------------------------------
or authorize any dividend, payment or other distribution in respect of any class
of is capital stock or any dividend, payment or distribution in connection with
the redemption, purchase, retirement or other acquisition, directly or
indirectly, or any shares of its Capital Stock other than such dividends,
payments or other distributions to the extent payable solely in shares of
Capital Stock of the Borrower.

          1.13    Section 5.2(m) is restated as follows:

          (m)     Contingent Liabilities.  Create, incur, assume or in any
                  ----------------------
manner become liable in respect of, or suffer to exist, any Contingent
Liabilities other than Contingent Liabilities incurred prior to the Fifth
Amendment Effective Date in an aggregate amount not to exceed $500,000.

          1.14    Clause (v) of Section 5.2(k) is restated as follows:
[intentionally omitted].

          1.15    Section 5.2(s) is restated as follows:

          (s)     Capital Expenditures.  Make any Capital Expenditures if the
                  --------------------
aggregate amount thereof made by the Company or any of its Subsidiaries for any
consecutive three month period would exceed, on a consolidated basis, $900,000.

          1.16    Section 5.2(t) is restated  as follows:

          (t)     EBITDA  Permit or suffer EBITDA, as of the last day of each
                  ------
month and as calculated for the three consecutive months then ending, to be less
than the amounts set forth below for the month end indicated:

<TABLE>
<CAPTION>
-----------------------------------------------------------------------------
 Month End Date                                    EBITDA
 --------------                                    ------
-----------------------------------------------------------------------------
 <S>                                               <C>
 March 31, 2001                                    $5,500,000
-----------------------------------------------------------------------------
 April 30, 2001                                    $5,500,000
-----------------------------------------------------------------------------
 May 31, 2001                                      $5,900,000
-----------------------------------------------------------------------------
 June 30, 2001                                     $5,900,000
-----------------------------------------------------------------------------
 July 31, 2001                                     $6,400,000
-----------------------------------------------------------------------------
 August 31, 2001                                   $6,400,000
-----------------------------------------------------------------------------
 September 30, 2001                                $6,700,000
-----------------------------------------------------------------------------
 October 31, 2001                                  $6,700,000
-----------------------------------------------------------------------------
 November 30, 2001                                 $6,700,000
-----------------------------------------------------------------------------
 December 31, 2001                                 $6,700,000
-----------------------------------------------------------------------------
 January 31, 2002                                  $7,000,000
-----------------------------------------------------------------------------
 February 28, 2002                                 $7,000,000
-----------------------------------------------------------------------------
 March 31, 2002                                    $7,000,000
-----------------------------------------------------------------------------
 April 30, 2002                                    $7,000,000
-----------------------------------------------------------------------------
</TABLE>

                                      -5-
<PAGE>

<TABLE>
<S>                                                <C>
-----------------------------------------------------------------------------
 May 31, 2002                                      $7,000,000
-----------------------------------------------------------------------------
 June 30, 2002                                     $7,000,000
-----------------------------------------------------------------------------
</TABLE>

          1.17    A new Section 5.2(u) is added as follows:

          (u)     Annual EBITDA  Permit or suffer EBITDA, as of December 31,
                  -------------
2001 and as calculated for the twelve consecutive months then ending, to be less
than $35,000,000.

          1.18    Schedules 4.4, 4.21-A and 4.21-B to the Loan Agreement are
replaced with Schedules 4.4, 4.21-A and 4.21-B attached hereto.

ARTICLE II.  REPRESENTATIONS.  Each Borrower represents and warrants to the
             ---------------
Agents and the Lenders that:

          2.1     The execution, delivery and performance of this Amendment is
within its powers, has been duly authorized and is not in contravention with any
law, of the terms of its Articles of Incorporation or By-laws, or any
undertaking to which it is a party or by which it is bound.

          2.2     This Amendment is the legal, valid and binding obligation of
the Borrowers enforceable against it in accordance with the terms hereof.

          2.3     After giving effect to the amendments and waivers herein
contained, the representations and warranties contained in Article IV of the
Loan Agreement are true on and as of the date hereof with the same force and
effect as if made on and as of the date hereof.

          2.4     After giving effect to the amendments and waivers herein
contained, no Event of Default or Unmatured Event exists or has occurred and is
continuing on the date hereof.

ARTICLE III.  CONDITIONS OF EFFECTIVENESS.  This Amendment shall not become
              ---------------------------
effective until each of the following has been satisfied:

          3.1     This Amendment shall be signed by the Borrowers and the
Required Lenders.

          3.2     Each of the Guarantors shall have executed the Consent and
Agreement at the end of this Amendment.

          3.3     Each of the Borrowers and the Guarantors shall have delivered
a board resolution approving this Amendment and all the transactions
contemplated hereby.

          3.4     The Borrowers and the Guarantors shall have delivered such
other agreements and documents requested by either Agent.

                                      -6-
<PAGE>

ARTICLE IV.  EVENTS OF DEFAULT AND WAIVER.
             ----------------------------

          4.1     The Borrowers acknowledge that Event of Defaults have occurred
because the Borrowers have failed to comply with Sections 5.2(a), (b) and (c) of
the Credit Agreement (the "Previously Existing Defaults"). The Borrowers
acknowledge that the Required Lenders have the ability to accelerate all
indebtedness and exercise all of their rights and remedies under the Credit
Agreement and that the Lenders do not have any obligation to make any Advances
under the Credit Agreement. In consideration of the execution of this Amendment
and subject to the satisfaction of all conditions required by Article III
hereof, the Agents and the Required Lenders agree to waive the Previously
Existing Defaults, provided that such waiver shall waive only the Previously
Existing Defaults on or prior to the date hereof, and does not waive any other
Default, including without limitation any Default caused by any violation of
Section 5.2(a), (b) and (c) at any time on or after the date hereof, and this
waiver shall not be deemed to be a waiver, or a consent to any modification or
amendment, of any other term or condition of the Credit Agreement or any term or
condition of any other Loan Document, or to prejudice any present or future
right or rights which the Agents or any of the Lenders now have or may have
thereunder.

ARTICLE V.  MISCELLANEOUS.
            -------------

          5.1     References in the Loan Agreement or in any note, certificate,
instrument or other document to the Loan Agreement shall be deemed to be
references to the Loan Agreement as amended hereby and as further amended from
time to time.

          5.2     The Borrowers agree to pay and to save the Agent harmless for
the payment of all costs and expenses arising in connection with this Amendment,
including the reasonable fees of counsel to the Agent in connection with
preparing this Amendment and the related documents.

          5.3     Each Borrower and Guarantor acknowledges and agrees that the
Agent and the Lenders have fully performed all of their obligations under all
documents executed in connection with the Loan Agreement, the Notes, the
Security Documents and all other documents and agreements executed by a Borrower
in connection with the Loan Agreement and all actions taken by the Agent and the
Lenders are reasonable and appropriate under the circumstances and within their
rights under the Loan Agreement and all other documents executed in connection
therewith and otherwise available. Each Borrower and Guarantor represents and
warrants that it is not aware of any claims or causes of action against either
Agent or any Lender or any of their successors or assigns. Notwithstanding this
representation and a further consideration for the agreements and understandings
herein, each Borrower and each Guarantor and their respective successors and
assigns hereby release each Agent, each Lender and their respective successors
and assigns from any liability, claim, right or cause of action which now exists
or hereafter arises, whether known or unknown, arising from or in any way
related to facts in existence as of the date hereof to any agreements or
transactions among the Agents, the Lenders, the Borrowers, the Guarantors or any
of them, or to any acts or omissions of the Agents or the Lenders in connection
therewith or otherwise related thereto in any way.

          5.4     Except as expressly amended hereby, each Borrower agrees that
the Loan Agreement, the Notes, the Security Documents and all other documents
and agreements executed by a

                                      -7-
<PAGE>

Borrower in connection with the Loan Agreement in favor of the Agent or any
Lender are ratified and confirmed and shall remain in full force and effect and
that it has no set off, counterclaim, defense or other claim or dispute with
respect to any of the foregoing. Terms used but not defined herein shall have
the respective meanings ascribed thereto in the Loan Agreement.

          5.5     On the date of this Amendment, the Company agrees to pay to
each Lender signing this Amendment on or before 12:00 noon, Detroit time, on the
date hereof a fee equal to 0.25% of such Lender's Commitments.

          5.6     This Amendment may be signed upon any number of counterparts
with the same effect as if the signatures thereto and hereto were upon the same
instrument, and telecopied signatures shall be enforceable as originals.

                                      -8-
<PAGE>

          IN WITNESS WHEREOF, the parties signing this Amendment have caused
this Amendment to be executed and delivered as of the day and year first above
written.

                                           NUMATICS, INCORPORATED

                                           By: /s/ Robert P. Robeson
                                              ---------------------------------
                                              Its: Vice President

                                           NUMATICS LTD.

                                           By: /s/ Robert P. Robeson
                                              ---------------------------------
                                              Its: Secretary

                                           NUMATICS GMBH

                                           By: /s/ John H. Welker
                                              ---------------------------------
                                              Its: General Manager

                                      -9-
<PAGE>

                                    BANK ONE, MICHIGAN, as Administrative Agent
                                     and as a Lender

                                    By: /s/ Thomas A. Lakocy
                                        ------------------------------------
                                        Its: First Vice President

                                    BANK ONE, NA

                                    By: /s/ Thomas A. Lakocy
                                        ------------------------------------
                                        Its: First Vice President

                                    BANK ONE, CANADA

                                    By: /s/ Thomas A. Lakocy
                                        ------------------------------------
                                        Its: First Vice President

                                    FLEET NATIONAL BANK, as Documentation Agent
                                     and as a Lender

                                    By: /s/ Peggy Perkham
                                        ------------------------------------
                                        Its: Senior Vice President

                                    COMERICA BANK

                                    By: /s/ Aaron Miller
                                        ------------------------------------
                                        Its: Account Officer

                                      -10-
<PAGE>

                                           MAPLEWOOD (CAYMAN) LIMITED

                                           By: _______________________________

                                             Its: ____________________________

                                           MASSACHUSETTS MUTUAL LIFE
                                           INSURANCE COMPANY

                                           By: _______________________________

                                             Its: ____________________________

                                           BLACK DIAMOND CLO 2000-LTD.

                                           By: /s/ David Dyer
                                               -------------------------------
                                             Its: Director

                                      -11-
<PAGE>

                             CONSENT AND AGREEMENT
                             ---------------------

          As of the date and year first above written, each of the undersigned
hereby:

     (a)  fully consents to the terms and provisions of the above Amendment and
the consummation of the transactions contemplated hereby and agrees to all terms
and provisions of the above Amendment applicable to it;

     (b)  agrees that each Guaranty and all other agreements executed by any of
the undersigned in connection with the Loan Agreement or otherwise in favor of
the Agents or the Lenders, or any of them (collectively, the "Guarantor
Documents") are hereby ratified and confirmed and shall remain in full force and
effect, and each of the undersigned acknowledges that it has no setoff,
counterclaim, defense or other claim or dispute with respect to any Guarantor
Document; and

     (c)  acknowledges that its consent and agreement hereto is a condition to
the Lenders' obligation under this Amendment and it is in its interest and to
its financial benefit to execute this consent and agreement.

                                           MICRO-FILTRATION, INC.

                                           By: /s/ Robert P. Robeson
                                               -------------------------------
                                               Its: Secretary

                                           NUMATION, INC.

                                           By: /s/ Robert P. Robeson
                                               -------------------------------
                                               Its: Secretary

                                           NUMATECH, INC.

                                           By: /s/ Robert P. Robeson
                                               -------------------------------
                                               Its: Secretary

                                      -12-
<PAGE>

                                           ULTRA AIR PRODUCTS, INC.

                                           By: /s/ Robert P. Robeson
                                               -------------------------------
                                               Its: Secretary

                                           MICROSMITH, INC.

                                           By: /s/ Robert P. Robeson
                                               -------------------------------
                                               Its: Secretary

                                           EMPIRE AIR SYSTEMS, INC.

                                           By: /s/ Robert P. Robeson
                                               -------------------------------
                                               Its: Secretary

                                      -13-
<PAGE>

                                 SCHEDULE 4.4

                                 Subsidiaries
                                 ------------

<TABLE>
<CAPTION>
                                 Jurisdiction
                                 of
Name of Subsidiary               Incorporation          Percentage Owned
------------------               -------------          ----------------
<S>                              <C>                    <C>
I.A.E. Incorporated              Michigan                        100%
Micro-Filtration, Inc.           Michigan                        100%
Numation Inc.                    Michigan                         90%
Numatech, Inc.                   Michigan                         88%
Ultra Air Products, Inc.         Michigan                        100%
Microsmith, Inc.                 Arizona                         100%
Empire Air Systems, Inc.         New York                        100%
Numatics B.V.                    Netherlands                     100%
Numatics S.A. de C.V.            United States                    99%*
                                  of Mexico
Numatics S.A.R.L.                France                           99%*
Numatics Ltd.                    Canada                          100%
Numatics, Limited                United Kingdom                   99%*
NAC Beteilingungs Gmbh           Federal Republic                100%
                                  of Germany
Numatics Gmbh                    Germany                         100%
Numatics K.F.T.                  Hungary                         100%
Numatics Ltd.                    Taiwan                           91%*
Numatics S.R.L.                  Italy                            99%*
Univer Gmbh                      Germany                         100%
Numatics Spain S.L.              Spain                           100%
</TABLE>

* 1% share held by John H. Welker

                                      -14-
<PAGE>

                                SCHEDULE 4.21-A

                       Management Group Stock Ownership
                       --------------------------------

                            NUMATICS, INCORPORATED
                            OWNERSHIP OF SECURITIES

<TABLE>
<CAPTION>
              Stockholder                         Shares              Percent
              -----------                         ------              -------
<S>                                            <C>                  <C>
John H. Welker                                 1,971,196.25             75.60%
David K. Dodds                                   112,881.25              4.33%
Donald E. McGeachy                               112,881.25              4.33%
Henry Fleischer                                   97,201.25              3.73%
Robert P. Robeson                                 78,391.25              3.01%
John Acuff                                        56,441.25              2.16%
David King                                        18,750.00              0.72%
Harvard Private Capital Holdings, Inc.           159,575.00              6.12%
                                               ------------            ------
                                               2,607,317.50            100.00%
                                               ============            ======
</TABLE>

                                      -15-
<PAGE>

                                SCHEDULE 4.21-B

                            Shareholder Agreements
                            ----------------------

1.   Voting Agreement dated November 29, 1990, as supplemented, among Numatics
     Acquisition Corporation (the "Company") and the Shareholders.

2.   Amended and Restated Stock Transfer Agreement dated December 28, 1995.

3.   NUMATION, INC., a Michigan corporation
     --------------

     Stock Transfer Agreement by and among Jeffrey R. Schneid and Numatics,
     Incorporated, and Numation, Inc. dated September 1, 1994

4.   NUMATECH, INC., a Michigan corporation
     --------------

     Stock Transfer Agreement by and among Richard L. Dalton, Jr. and Numatics,
     Incorporated, and Numatech, Inc. dated September 1, 1994

5.        As a condition to exercising any option granted under the Numatics,
Incorporated Incentive Plan adopted June 29, 2000, each option holder will be
required to enter into a Stock Transfer Agreement in substantially the form
filed as an exhibit to the Company's Quarterly Report on Form 10-Q for the
quarter ended September 30

                                      -16-Employment Agreement

         THIS Employment Agreement (hereinafter referred to as this "Agreement")
is entered into  effective  the 1st day of January,  2001,  by and between Camco
Financial Corporation, a savings and loan holding company incorporated under the
laws  of the  State  of  Delaware  (hereinafter  referred  to as  "Camco"),  the
principal office of which is located at 6901 Glenn Highway, Cambridge, Ohio, and
Richard C. Baylor  (hereinafter  referred to as the  "Employee"),  an individual
whose residential address is 156 Hawthorne Drive, New Concord, Ohio 43762.

                                   WITNESSETH:

         WHEREAS, the Employee has assumed the responsibilities of President and
Chief Executive Officer of Camco effective January 1, 2001; and

         WHEREAS,  as  a  result  of  the  skill,   knowledge,   experience  and
performance of the Employee, Camco desires to continue to retain the services of
the Employee as President and Chief  Executive  Officer in  accordance  with the
terms and conditions of this Agreement;

         NOW,  THEREFORE,  in  consideration  of  the  mutual  covenants  herein
contained  and  other  good  and  valuable   considerations,   the  receipt  and
sufficiency  of which is hereby  acknowledged,  Camco and the Employee  agree as
follows:

         1.  Employment  and Term. The Employee is employed as the President and
Chief Executive Officer of Camco, and the Employee hereby accepts  employment as
the  President  and  Chief  Executive  Officer  of  Camco,  upon the  terms  and
conditions of this  Agreement.  The term of  employment  shall be for the period
commencing on January 1, 2001,  and shall end on December 31, 2003 (the "Term").
At the end of each year of the Term,  the  Agreement may be extended for periods
of one  year  each by  Camco's  Board  of  Directors  ("Board")  at its sole and
exclusive  discretion,  subject to the Employee's  acceptance thereof.  Prior to
consenting  to  any  such  extension,  the  Board  will  conduct  a  performance
evaluation of the Employee, and the results of such review shall be noted in the
minutes of the meeting of the Board.  The Term of this Agreement,  together with
each extension period, is hereinafter referred to as the "Employment Term".

         2.       Duties of Employee.

                  (a) General  Duties and  Responsibilities.  The Employee shall
serve as the President and Chief Executive  Officer of Camco;  shall perform the
duties  and  responsibilities  customary  for  such  offices  to the best of his
ability and in  accordance  with (i) the policies  established  by the Board and
(ii) all applicable  laws and  regulations;  and shall perform such other duties
not  inconsistent  with his position as may be assigned to him from time to time
by the Board.

<PAGE>
                  (b) Devotion of Time to Camco's  Business.  The Employee shall
devote his entire productive time,  ability and attention during normal business
hours  throughout the Employment Term to the faithful  performance of his duties
under this Agreement  subject to the direction of the Board.  The Employee shall
not  directly or  indirectly  render any services of a business,  commercial  or
professional  nature to any person or  organization  without  the prior  written
consent  of the  Board;  provided,  however,  that  the  Employee  shall  not be
precluded  from:  (i) vacations and other leave time in accordance  with Section
3(d) hereof; (ii) reasonable  participation in community,  civic,  charitable or
similar  organizations;   (iii)  reasonable  participation  in  industry-related
activities  including,  but not limited to,  directorship of a Federal Home Loan
Bank,  attending  industry trade association  (national and state)  conventions,
conferences  and committee  meetings,  and holding  positions of  responsibility
therein; (iv) serving as an officer and/or director of Camco's subsidiaries;  or
(v) the pursuit of personal  investments  that do not interfere or conflict with
the performance of the Employee's duties for Camco.

         3.       Compensation, Benefits and Reimbursements.

                  (a)  Salary.  The  Employee  shall  receive  an annual  salary
payable in equal  installments  not less often than  monthly.  The amount of the
annual salary shall be $160,000 until changed by the Board. Each year throughout
the  Employment  Term,  the  amount of the  Employee's  annual  salary  shall be
reviewed  by the Board,  and shall be set at an amount  not less than  $160,000,
based upon the Employee's  responsibilities  and individual  performance and the
overall  profitability  and financial  condition of Camco (the "Annual Review").
The result of the Annual  Review shall be reflected in the minutes of the Board.
Any  directors'  fees  received by Employee,  whether paid by Camco or any other
entity,  shall be in addition to the salary  provided for in this  Agreement and
may be retained by Employee in their entirety.

                  (b) Expenses.  In addition to any compensation  received under
Section  3(a),  Camco shall pay or reimburse  the  Employee  for all  reasonable
travel, entertainment and miscellaneous expenses incurred in connection with the
performance  of his  duties  under this  Agreement  including  participation  in
industry-related activities. Such reimbursement shall be made in accordance with
the existing  policies and procedures of Camco  pertaining to  reimbursement  of
expenses to senior management officials.

                  (c) Employee Benefit Program.  During the Employment Term, the
Employee shall be entitled to participate in all formally  established  employee
benefit,  bonus,  pension and profit-sharing plans and similar programs that are
maintained  by Camco  from  time to time,  including  programs  regarding  group
health,   disability  or  life   insurance,   salary   continuation   insurance,
reimbursement of membership fees in civic, social and professional organizations
and all employee benefit plans or programs  hereafter  adopted in writing by the
Board,  for which  senior  management  personnel  are  eligible,  including  any
employee  stock  ownership plan or stock option plan  (hereinafter  collectively
referred to as the "Benefit  Plans").  Notwithstanding  the foregoing  sentence,
Camco  may  discontinue  at any time any such  Benefit  Plans  now  existing  or
hereafter adopted, to the extent permitted by the terms of such plans, and shall
not be required to  compensate  the  Employee  for the  elimination  of any such
Benefit Plans.

                                      -2-
<PAGE>

                  (d)      Vacation and Sick  Leave.    The  Employee  shall  be
entitled,  without loss of pay, to be absent voluntarily from the performance of
his duties under this Agreement, subject to the following conditions:

                           (i)      The  Employee shall be entitled to an annual
vacation,  the duration of which shall not be less than four weeks each calendar
year;

                           (ii)     Vacation  time  shall  be  scheduled  by the
Employee in a  reasonable  manner and shall be subject to approval by the Board.
The Employee shall not be entitled to receive any additional  compensation  from
Camco in the event of his failure to take the full allotment of vacation time in
any  calendar  year nor shall  unused  vacation  time be  carried  over into any
succeeding calendar year; and

                           (iii)    The  Employee  shal l be  entitled to annual
sick leave as established by the Board for senior management officials of Camco.
In the event  that any sick  leave  time  shall not have  been used  during  any
calendar year, such leave shall accrue to subsequent  calendar years only to the
extent authorized by the Board. Upon termination of his employment, the Employee
shall not be  entitled  to receive any  additional  compensation  from Camco for
unused sick leave.

                  (e)  Employee  shall be  entitled  to the  full-time  use of a
company-owned  automobile.  Camco shall be responsible for the cost of obtaining
collision and liability insurance for the automobile and shall pay for all other
costs of operating the automobile including fuel, maintenance and repair.

                  (f) During the  Employment  Term,  Camco shall pay  Employee's
membership dues at the Cambridge  Country Club and non-resident  membership dues
at the Columbus Club.

         4. Termination of Employment. In addition to Camco's right to terminate
the  employment  of the Employee at the end of the  Employment  Term,  Camco may
terminate the employment of the Employee at any other time during the Employment
Term. In the event that Camco  terminates the employment of the Employee  during
the Employment Term because of the Employee's personal dishonesty, incompetence,
willful  misconduct,   breach  of  fiduciary  duty  involving  personal  profit,
intentional  failure  or refusal  to  perform  the  duties and  responsibilities
assigned in this Agreement,  willful  violation of any law, rule,  regulation or
final   cease-and-desist   order  (other  than  traffic  violations  or  similar
offenses),  conviction  of a felony or for fraud or  embezzlement,  or  material
breach of any provision of this Agreement (hereinafter  collectively referred to
as "Just Cause"),  the Employee shall have no right to receive any  compensation
or other benefits for any period after such termination. If Camco terminates the
employment of the Employee  during the Employment Term for any reason other than
Just Cause, the Employee shall be entitled to the following:

                  (a)  Termination  After Change of Control.  If, in  connection
with or within one year of a Change of Control  (hereinafter  defined) of Camco,
Camco  terminates  the employment of the Employee for any reason other than Just
Cause, then the following shall occur:

                                      -3-
<PAGE>
                           (i)      Camco  shall promptly pay to the Employee or
to his  beneficiaries,  dependents  or estate an amount equal to three times the
Employee's "average annual compensation" as such term is defined in Section 280G
of the Internal Revenue Code of 1986, as amended.

                           (ii)     Camco shall  provide to the Employee and his
eligible dependents health, life and disability insurance benefits substantially
equal to those  being  provided  to the  Employee  and his  eligible  dependents
immediately prior to the occurrence of the Change of Control, at Camco's expense
and as if the Employee were still  employed under this Agreement for a period of
36 months.

                           (iii)    Camco shall promptly  pay to the Employee an
amount equal to all directors'  fees to which the Employee would  otherwise have
been entitled if he had remained a director of Camco or any of its  subsidiaries
for a period of 36 months.

                           The  Employee  shall not be  required to mitigate the
amount of any payment provided for in this Agreement,  whether in this paragraph
or elsewhere in this Agreement,  by seeking other  employment or otherwise,  nor
shall any amounts  received  from other  employment or otherwise by the Employee
offset in any manner the obligations of Camco hereunder,  except as specifically
stated in subsection (ii) of this subsection (a).

                           A  "Change  of  Control"  shall  be  deemed  to  have
occurred in the event that, at any time during the  Employment  Term, (x) either
any person or entity obtains "conclusive control" of Camco within the meaning of
12  C.F.R.ss.574.4(a)  or (y) any person or entity obtains "rebuttable  control"
within  the  meaning of 12  C.F.R.ss.574.4(b)  and has not  rebutted  control in
accordance with 12 C.F.R.ss.574.4(e).

                  (b) Termination  without Change of Control. In the event Camco
terminates  the  employment of the Employee for any reason other than Just Cause
and the  termination  is not covered by the provisions of subsection (a) of this
Section 4, Camco shall be obligated to continue to (i) pay on a monthly basis to
the Employee,  his  designated  beneficiaries  or his estate,  his annual salary
provided  pursuant  to  Section  2 of this  Agreement  for the  number of months
remaining in the  Employment  Term as of the date of the  termination;  and (ii)
provide to the Employee and his eligible dependents, at Camco's expense, health,
life and  disability  insurance  benefits  substantially  equal  to those  being
provided to the Employee and his eligible  dependents at the date of termination
of his employment until the earliest of (A) the end of the Employment Term under
this Agreement pursuant to Section 1 of this Agreement or (B) that date on which
the  Employee  is included in another  employer's  benefit  plans as a full-time
employee.  The Employee may choose,  in lieu of monthly  payments of the amounts
set forth  above,  to receive a lump sum payment  equal to the present  value of
such  payments.  For purposes of computing  such lump-sum  payment,  the parties
shall use a discount rate of five percent (5%) per annum.

                  (c) Death of the Employee.  The Employment Term  automatically
terminates  upon the  death of the  Employee.  In the event of such  death,  the
Employee's estate shall be entitled to receive the compensation due the Employee
through the last day of the calendar month in which the death occurred.

                                      -4-
<PAGE>

         5. Consolidation,  Merger or Sale of Assets.  Nothing in this Agreement
shall  preclude  Camco from  voluntarily or  involuntarily  consolidating  with,
merging  into,  or  transferring  all,  or  substantially  all, of its assets to
another  corporation  that assumes all of Camco's  obligations and  undertakings
hereunder.  Upon such a  consolidation,  merger or transfer of assets,  the term
"Camco" as used in this Agreement,  shall mean such other  corporation or entity
and this Agreement shall continue in full force and effect.

         6. Confidential Information.  The Employee acknowledges that during his
employment  he has  learned,  will  learn and will have  access to  confidential
information regarding Camco and its customers and business.  The Employee agrees
and  covenants  not to disclose or use for his own benefit or the benefit of any
other  person or entity  any  confidential  information,  unless or until  Camco
consents to such disclosure or use or such information  becomes common knowledge
in the industry or is otherwise legally in the public domain. The Employee shall
not knowingly  disclose or reveal to any  unauthorized  person any  confidential
information relating to Camco, its subsidiaries or affiliates,  or to any of the
businesses  operated by them,  and the Employee  confirms that such  information
constitutes  the exclusive  property of Camco.  The Employee shall not otherwise
knowingly  act or conduct  himself (i) to the material  detriment of Camco,  its
subsidiaries  or affiliates or (ii) in a manner which is inimical or contrary to
the interests of Camco.

         7.  Nonassignability.  Neither this Agreement nor any right or interest
hereunder  shall be  assignable  by the  Employee,  his  beneficiaries  or legal
representatives without Camco's prior written consent;  provided,  however, that
nothing in this Section 7 shall  preclude (i) the Employee  from  designating  a
beneficiary to receive any benefits payable hereunder upon his death or (ii) the
executors,  administrators or other legal representatives of the Employee or his
estate from  assigning  any rights  hereunder to the person or persons  entitled
thereto.

         8. No  Attachment.  Except  as  required  by law,  no right to  receive
payment  under this  Agreement  shall be subject to  anticipation,  commutation,
alienation, sale, assignment, encumbrance, charge, pledge or hypothecation or to
execution,  attachment,  levy or similar  process of  assignment by operation of
law, and any attempt, voluntary or involuntary,  to effect any such action shall
be null, void and of no effect.

         9.       Binding Agreement.  This Agreement shall be  binding upon, and
inure to the benefit of, the Employee and Camco and their  respective  permitted
successors and assigns.

         10.      Amendment of Agreement.  This Agreement may not be modified or
amended, except by an instrument in writing signed by the parties hereto.

         11. Waiver.  No term or condition of this Agreement  shall be deemed to
have been waived,  nor shall there be an estoppel against the enforcement of any
provision of this Agreement,  except by written  instrument of the party charged

                                      -5-
<PAGE>

with  such  waiver  or  estoppel.  No such  written  waiver  shall  be  deemed a
continuing waiver,  unless  specifically  stated therein,  and each waiver shall
operate  only  as to the  specific  term  or  condition  waived  and  shall  not
constitute  a waiver of such term or  condition  for the future or as to any act
other than the act specifically waived.

         12.  Severability.  If, for any reason, any provision of this Agreement
is held invalid,  such invalidity  shall not affect the other provisions of this
Agreement not held so invalid,  and each such other provision shall, to the full
extent  consistent with applicable  law,  continue in full force and effect.  If
this Agreement is held invalid or cannot be enforced,  then any prior  agreement
between  Camco (or any  predecessor  thereof) and the  Employee  shall be deemed
reinstated  to the full extent  permitted by law, as if this  Agreement  had not
been executed.

         13.      Headings.  The headings of the paragraphs  herein are included
solely  for  convenience  of  reference  and shall not  control  the  meaning or
interpretation of any of the provisions of this Agreement.

         14.      Governing Law.  This Agreement has been executed and delivered
in the  State  of  Ohio,  and  its  validity,  interpretation,  performance  and
enforcement  shall be governed  by the laws of the State of Ohio,  except to the
extent that federal or Delaware law is governing.

         15.      Effect of  Prior  Agreements.   This  Agreement  contains  the
entire  understanding  between  the  parties  hereto  and  supersedes  any prior
Employment  Agreement  between  Camco,  or any  predecessor  of  Camco,  and the
Employee.

         IN WITNESS  WHEREOF,  Camco has caused this Agreement to be executed by
its duly authorized officers, and the Employee has signed this Agreement, all as
of the day and year first above written.

Attest:                                 CAMCO FINANCIAL CORPORATION

/s/ Anita L. Frencik                    By: /s/ Samuel W. Speck
----------------------------               ----------------------------------
Anita L. Frencik                           Samuel W. Speck,
Its Assistant Secretary                    Chairman, Compensation Committee

Witness:

/s/ Larry A. Caldwell                     /s/ Richard C. Baylor
----------------------------              ------------------------------------
Larry A. Caldwell                         Richard C. Baylor

                                      -6-

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