Document:

<PAGE>

                     PROMISSORY NOTE AND SECURITY AGREEMENT

                                                            PHOENIX, ARIZONA
$2,500,000                                                  DECEMBER 23, 1999

1.   FUNDAMENTAL PROVISIONS.

     The following terms will be used as defined terms in this Promissory Note
     and Security Agreement (as it may be amended, modified, extended and
     renewed from time to time, the "Note"):

<TABLE>
<S>                               <C>
LENDER:                           Reginald D. Fowler

BORROWER:                         Training Devices International, Inc., a Colorado corporation

PRINCIPAL AMOUNT:                 Two Million Five Hundred Thousand Dollars
                                  ($2,500,000)

INTEREST RATE:                    Twelve percent (12%) per annum, fixed for the
                                  Term

LOAN FEE:                         Two Hundred Fifty Thousand Dollars ($250,000)
                                  payable to Lender on February 1, 2001

REVENUE PARTICIPATION PREMIUM:    Seven Hundred Fifty Thousand Dollars ($750,000) payable to Lender,
                                  commencing on February 1, 2001 in sixty (60) equal monthly
                                  installments of $12,500

PRINCIPAL MATURITY DATE:          February 1, 2001

COLLATERAL:                       Beech 1900D Level C Full Flight Simulator, having the Serial No. of
                                  NEX-TDI-002, including all parts, accessories, sub-assemblies, visual
                                  and motion systems and the right to use all related general
                                  intangibles as are necessary to operate or sell the Simulator,
                                  whether now owned or hereafter acquired, including but not limited
                                  to, applications

                           Page 1 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                    ----------------
<PAGE>

                                  for patents, copyrights, trademarks, trade secrets, trade names, permits
                                  and franchises, (the "Simulator"), a non-exclusive license of Simulator
                                  System Software defined in Section 8 of this Note and all of Borrower's
                                  general accounts receivable (as specified in an Intercreditor
                                  Agreement between Lender and 1st Choice Bank).

PERMITTED EXCEPTIONS:             (a) A security interest in Borrower's accounts receivable and the
                                  software and the general intangibles with respect to the flight
                                  simulator 1900D Level C Serial No. NEX-TDI-001 in favor of 1st Choice
                                  Bank; (b) a first priority security interest in any visual and motion
                                  system granted to the vendor of such system; or (c) a first priority
                                  security interest in any subsequent simulators and the accounts
                                  receivable arising from the sale or lease of a simulator or a
                                  fractional ownership interest in a simulator (other than the
                                  Simulator constituting the Collateral) granted to any party that
                                  provides a loan for all or part of the cost to develop and
                                  manufacture that particular simulator.  It is understood by the
                                  parties that Lender's security interest in the visual and motion
                                  systems and such simulators and accounts receivable may in these
                                  instances be subordinate to the first priority security interests,
                                  and Lender will execute such documents as may be reasonably necessary
                                  to subordinate Lender's security interest to those first priority
                                  security interests.

BUSINESS DAY:                     Any day other than a Saturday, Sunday or legal holiday on which banks
                                  in the State of Arizona are closed for business.
</TABLE>

2.    PROMISE TO PAY.

      For value received, Borrower promises to pay to the order of Lender, at
      its address at 7100 W. Erie St., Chandler, Arizona 85226, or at such other
      place as the Lender hereof may from time to time designate in writing, the
      Principal Amount, or so much thereof as is actually disbursed pursuant
      hereto, together with accrued interest from the date of disbursement on
      the unpaid principal balance at the Interest Rate.

                           Page 2 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                    ----------------

<PAGE>

3.    LAWFUL MONEY.

      Principal and interest are payable in lawful money of the United States of
      America.

4.    DISBURSAL AND LOAN PURPOSE

      The Loan shall be disbursed according to Exhibit "A" on or about the dates
      provided therein to Borrower for the purpose of building the Simulator.
      These funds can be used for no other purpose.

5.    PAYMENTS

      Commencing on the first day of the month following the date of funding by
      Lender and continuing on the same day each month thereafter, Borrower
      shall make monthly installments of interest in the amounts as defined in
      Exhibit "A", and herein incorporated as part of this Note. Said
      installments shall not be subject to or limited to any source of funds of
      Borrower.

      On the Maturity Date, Borrower shall make a payment of the outstanding
      principal balance, all accrued interest and the Loan Fee. In addition,
      commencing on the Maturity Date and on the first day of each month
      thereafter, Borrower shall make sixty (60) equal monthly payments of the
      Revenue Participation Premium with the final payment of such Revenue
      Participation Premium due and payable on January 1, 2006.

      If any payment due hereunder is not received by Lender within five (5)
      days after its due date, then, in addition to the other rights and
      remedies of Lender, a per day late charge of Five Hundred Dollars
      ($500.00) will be charged to Borrower without notice. Such charge shall be
      immediately due and payable.

6.    PREPAYMENT.

      Borrower may, at any time within the Note term, prepay this Note
      (including the Loan Fee and the Revenue Participation Premium) in full or
      in part without incurring any premium or penalty. This Note is not
      considered paid in full until all principal, accrued interest, the Loan
      Fee, the Revenue Participation Premium, and any other amounts due
      hereunder have been paid in full. Borrower may prepay all or part of the
      Revenue Participation Premium by paying to Lender an amount equal to the
      present value of the Revenue Participation Premium at the time of
      prepayment; in calculating the present value, Borrower shall use a
      discount rate of seven percent (7%).

                          Page 3 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

7.    SECURITY AGREEMENT.

      As security for the payment and performance of this Note, the Loan and all
      other present and future debts, obligations and liabilities of any nature
      whatsoever of any one or more of Borrower to Lender, and all
      modifications, renewals, replacements and extensions thereof (collectively
      the "Obligations"), Borrower hereby assigns to Lender and grants to Lender
      a first priority security interest in all of the Collateral subject only
      to the Permitted Exceptions. Borrower will execute any security
      agreements, collateral assignments, financing statements for filing and/or
      recording and any other lien writings required by Lender to evidence,
      create and perfect the liens and security interest of Lender. A carbon,
      photographic or other reproduced copy of this Note and/or any financing
      statement relating hereto shall be sufficient for filing and/or recording
      as a financing statement.

      Unless an Event of Default has occurred and is continuing, Lender's
      security interest in the Collateral will be released in full, except for
      its interest in Simulator accounts receivable, upon the Borrower's payment
      of (1) $2,500,000 plus interest at 12% per annum accrued but unpaid to
      Maturity Date and (2) the $250,000 Loan Fee. In addition, before or
      concurrent with a third party's purchase of any fractional ownership
      interest in the Simulator, Lender shall grant a release of such interest
      from the Collateral upon Borrower's repayment of a percentage of the
      Principal Amount and Loan fee that is equal to the percentage sold of the
      Simulator. For example, Borrower would repay 1/7th of the Principal Amount
      and Loan Fee if 1/7th fractional ownership interest in the Simulator was
      sold. Lender shall continue to maintain a first priority security interest
      in the accounts receivable generated by the sale of the fractional
      ownership interest in the Simulator until the Revenue Participation
      Premium is fully repaid.

      Borrower agrees that any and all funds received from its Initial Public
      Offering (the "IPO"), herein specified as the effective date of the IPO,
      shall be used to remove any senior liens on the motion and visual systems.

      Lender shall have no duty or obligation to protect, insure, collect or
      realize upon the Collateral or preserve rights in it against prior
      parties. Borrower releases Lender from, and shall indemnify Lender against
      any liability for any act or omission relating to the Collateral, except
      for any liability directly resulting from Lender's negligence or willful
      misconduct, as determined in a final non-appealable judgment.

      Borrower agrees as follows:

            (a)  Borrower (1) shall keep the Collateral free from all liens
                 other than the Permitted Exceptions, (2) shall defend the
                 Collateral against all claims and legal proceedings by persons
                 other than Lender, (3) shall pay and discharge when due all
                 taxes, levies and other charges upon the Collateral; (4) shall
                 not permit the Collateral to be used in violation of any policy
                 of insurance.

                          Page 4 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

            (b)  Borrower shall pay all expenses and, upon Lender's request,
                 execute all writings and take all other actions reasonably
                 deemed advisable by Lender to preserve the Collateral or to
                 establish and determine priority of perfection, continued
                 perfection or enforce Lender's interest in the Collateral.

            (c)  Lender may examine and conduct audits of the Collateral and
                 Borrower's records concerning it, wherever located, and make
                 copies of such records, at any time during normal business
                 hours with two days advance notice, and Borrower shall assist
                 Lender in so doing. Borrower shall keep accurate complete and
                 current records respecting the Collateral.

For so long as the Note is secured by the Collateral, Borrower hereby makes,
constitutes and appoints Lender the true and lawful attorney-in-fact of
Borrower, in the name, place and stead of Borrower, other otherwise upon the
occurrence of any Event of Default until the default is cured as defined in
Section 16.

         (a)  To take all actions and to execute, acknowledge, obtain and
              deliver any and all writings necessary or deemed advisable by
              Lender in order to exercise any rights of Borrower with respect to
              the Collateral or to receive and enforce any payment or
              performance due to Borrower with respect to the Collateral;

         (b)  To give any notices, instructions or other communications to any
              Person or entity in connection with the Collateral;

         (c)  To demand and receive all performances due under or with respect
              to the Collateral and to take all lawful steps to enforce such
              performances and to compromise and settle any claim or cause of
              action of Borrower arising from or related to the Collateral and
              give acquittances and other discharges relating thereto; and

         (d)  To file any claim or proceeding or to take any other action, in
              the name of Lender, Borrower or otherwise, to enforce performances
              due under or related to the Collateral or to protect and preserve
              the right, title and interest of Lender thereunder.

The foregoing power of attorney is a power coupled with an interest and shall be
irrevocable and unaffected by the disability of the principal so long as the
Note is secured by the Collateral. Lender shall have no obligation to exercise
any of the foregoing rights and powers in any event.

                          Page 5 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

8.    SIMULATOR SYSTEM SOFTWARE AND INTELLECTUAL PROPERTIES.

      Borrower hereby grants and conveys to Lender, a non-exclusive,
      irrevocable, worldwide license to use Borrower's proprietary system
      software that Borrower has developed to run and operate the Simulator (the
      "System Software"), subject to the following:

                  (a)  Except in an Event of Default, Lender may not convey
                       this license or otherwise transfer its interest in,
                       or grant to any third parties any interest in or
                       right to use the System Software.

     Borrower shall indemnify and hold Lender, his successors and assigns,
     harmless from and against any claims of third parties, which assert that
     any of the System Software infringes a proprietary right of another party.

     This license agreement shall be governed by, interpreted and construed
     under, and enforceable in accordance with the laws of the State of
     Colorado.

     Borrower shall deposit with Lender two (2) full sets of all System Software
     and documentation and instructions thereto, to be held by Lender as
     Collateral and in accordance with the terms and conditions set forth in
     Section 7 and herein this Section 8.

9.    SIMULATOR AND SOFTWARE WARRANTIES.

      This Note and Agreement shall not alter, modify, restrict or encroach upon
      any warranties provided by Borrower.

10.   INDEMNIFICATION.

      Borrower hereby agrees to indemnify, hold harmless and to defend Lender,
      his successors and assigns for any and all claims, actions, causes of
      action arising out of or related to the Collateral herein, except that
      Borrower shall have no indemnification obligations for claims, actions or
      causes of action arising out of Lender's negligence or willful misconduct.
      The amount payable under this indemnification provision shall be reduced
      by the proceeds of applicable insurance coverage, if any, actually
      received by Lender. Borrower shall not be liable for any settlement amount
      in regard to such claims, actions or causes of action unless Borrower has
      consented to the settlement, which consent shall not be unreasonably
      withheld.

11.   WAIVERS.

      This Note and Agreement shall not alter, modify restrict or encroach upon
      the obligations, responsibilities and requirements of the Borrower to
      Lender.

                          Page 6 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

12.   COMPROMISE OF CLAIMS.

      No liability, fault or wrongdoing of any kind is hereby admitted by any
      party hereto as a result of negotiating or executing this Note and
      Agreement, including any and all statements and communications by the
      parties, their attorneys or representatives.

13.   SEVERABILITY.

      Should any of the terms of this Note and Agreement or its application to
      any person or circumstances become invalid or unenforceable to any extent,
      the remainder of this Note and Agreement shall not be affected thereby,
      and each term and provision hereof shall be valid and enforceable to the
      fullest extent permitted by law.

14.   BUSINESS RISK.

      Borrower and Lender (by its acceptance of this Note) hereby affirm, agree
      and acknowledge that because of the inherent business risk to Lender in
      the financing involved in this transaction, the Interest Rate, the Loan
      Fee and the Revenue Participation Premium provided in this Note constitute
      a fair and reasonable return to Lender in light of such business risk.

15.   INTEREST RATE LIMITATION.

      Borrower hereby agrees to pay an effective rate of interest that is the
      sum of the Interest Rate provided for herein, together with any additional
      rate of interest resulting from any other charges of interest or in the
      nature of interest paid or to be paid in connection with the Loan,
      including, without limitation, the Loan Fee, the Revenue Participation
      Premium and any other fees to be paid by Borrower pursuant to the
      provisions of the Note. Lender and Borrower agree that none of the terms
      and provisions contained herein shall be construed to create a contract
      for the use, forbearance or detention of money requiring payment of
      interest at a rate in excess of the maximum interest rate permitted to be
      charged by the laws of the State of Arizona. In such event, if any holder
      of this Note shall collect monies which are deemed to constitute interest
      that would otherwise increase the effective interest rate on this Note to
      a rate in excess of the maximum rate permitted to be charged by the laws
      of the State of Arizona, all such sums deemed to constitute interest in
      excess of the such maximum rate shall, at the option of the holder, be
      credited to the payment of other amounts payable under this Note or
      returned to Borrower.

16.   EVENT OF DEFAULT.

      Occurrence of one or more of the following shall constitute an Event of
      Default under this Note:

                          Page 7 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

         (a) Any failure of the Borrower to pay Lender any amounts due under
         this Note within ten days of the due date without notification, or in
         the case of amounts due on the Maturity Date, the failure of Borrower
         to pay Lender those amounts on or before ninety (90) days after Federal
         Aviation Administration (the "FAA") qualification of the Simulator; or

         (b) Any failure or neglect of the Borrower to perform or observe any of
         the terms, provisions, conditions or covenants of this Note within ten
         (10) days of Borrower's receipt of written notice of each non-monetary
         default; or

         (c) If Borrower shall become insolvent; shall make an assignment for
         the benefit of creditors; shall fail generally to pay its debts as they
         become due; shall have a receiver, trustee, custodian or conservator
         appointed with respect to all or part of its assets; or if a petition
         for relief under any chapter of the federal Bankruptcy Code (or any
         similar debtor relief laws to which the parties may be subject) is
         filed by or against any Borrower and, if an involuntary petition, such
         petition is not dismissed within sixty (60) days of filing; or

         (d) If any tax lien or levy, attachment, garnishment, replevin,
         execution, or other statutory or judicial lien is filed, levied or
         claimed against all or any portion of or any interest in the Collateral
         and such claim or lien is not discharged, satisfied or bonded over to
         Lender's satisfaction before the earlier of: (1) forty-five (45) days
         thereafter; and (2) not less than five (5) Business Days prior to any
         sale of any portion of or interest in the collateral pursuant thereto;
         or

         (e) If Borrower shall fail to provide and maintain the insurance as
         provided in Section 17 of this Note.

17.   REMEDIES.

      If any Event of Default occurs or if any Obligation matures by its terms
      and is not then fully paid within any applicable grace period as specified
      in Section 16, Lender may, without any further notice (except as may be
      required by specific applicable laws such as those requiring notices of
      intended dispositions of certain Collateral) do one or more of the
      following in such order and manner as Lender, in its sole discretion, may
      elect to:

                  (a) Cause the entire then unpaid amount of the Obligations or
                      any portion(s) thereof to be and become immediately due
                      and payable; or

                  (b) Exercise any or all of the remedies of a secured party
                      under the Arizona (and/or any other relevant state(s)
                      Uniform Commercial Code (the "UCC") with respect to the
                      Collateral. If Lender should proceed to dispose of or
                      otherwise realize upon any such Collateral in

                          Page 8 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

                      accordance with the provisions of the UCC, unless the
                      Collateral is perishable or threatens to decline
                      speedily in value, seven (7) days notice by Lender
                      to Borrower or any other "debtor" described in the
                      UCC shall be deemed to be commercially reasonable
                      notice under any provision of the UCC requiring notice;
                      or

                  (c) Avail itself of any other relief to which Lender may be
                      legally or equitably entitled.

18.   INSURANCE.

      For so long as the Collateral secures this Note, Borrower shall name
      Lender as "Additionally Named Insured" on Borrower's general liability
      insurance policy of not less than $3,000,000 and Borrower's umbrella
      liability policy of not less than $5,000,000 and shall provide Lender with
      a binder within ten (10) days of execution of this Note.

19.   WAIVER.

      Borrower, endorsers, guarantors, and sureties of this Note hereby waive
      diligence, demand for payment, presentment for payment, protest, notice of
      protest, and notice of dishonor, and all other notices or demands of any
      kind (except notices specifically provided for herein).

20.   CHANGE, DISCHARGE, TERMINATION, OR WAIVER.

      No provision of this Note may be changed, discharged, terminated, or
      waived except in a writing signed by the party against whom enforcement of
      the change, discharge, termination or waiver is sought. No failure on the
      part of the Lender to exercise and no delay by the Lender in exercising
      any right or remedy under this Note or under the law shall operate as a
      waiver thereof.

21. ATTORNEYS' FEES.

      If this Note is not paid when due or if any Event of Default occurs,
      Borrower promises to pay all costs of enforcement and collection and
      preparation therefor, including but not limited to, reasonable attorneys'
      fees, whether or not any action or proceeding is brought to enforce the
      provisions hereof.

22.   CHOICE OF LAW.

      This note shall be governed by and construed in accordance with the laws
      of the State of Arizona without giving effect to conflict of laws
      principles.

                          Page 9 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   ----------------
<PAGE>

23.   BORROWER WARRANTIES TO LENDER

      Borrower warrants to Lender that his Note does not violate any Corporate
      Bylaws of Borrower or Securities and Exchange Regulations of Disclosures,
      and Borrower shall provide to Lender certified copies of Corporate
      Resolutions attached hereto as Exhibit "B" and Borrower shall indemnify
      and defend Lender of this Note against any and all encumbrances,
      attachments and adversaries of Lender's positional rights of security
      aforementioned herein.

24.   ENTIRE AGREEMENT.

      This Note and Agreement constitutes the entire agreement between the
      parties relating to the subject hereof, and any prior agreements
      pertaining thereto, whether oral or written, have been merged with and
      integrated into this Note.

25.   NOTICES.

      Any notices which a party desires or is required to give hereunder shall
      be in writing and shall be deemed given when delivered personally to each
      party, or three days after deposited in the United States mails, postage
      prepaid, either registered or certified, return receipt requested, to the
      parties at the following addresses:

      Lender:    REGINALD D. FOWLER
                 7100 West Erie Street
                 Chandler, AZ 85228

      Borrower:  TRAINING DEVICES INTERNATIONAL, INC.
                 Attention President
                 7367 South Revere Parkway, Building 2C
                 Englewood, CO 80112

                                       BORROWER

                                       TRAINING DEVICES INTERNATIONAL, INC.

                                       By: /s/ Ronald C. Ellington
                                            ----------------------------------
                                            Ronald C. Ellington, Chairman and
                                            Chief Executive Officer

                          Page 10 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                    ----------------
<PAGE>

                                 ATTACHMENT A

<TABLE>
<CAPTION>

---------------------------------------------------------------------------------
FOWLER AGREEMENT
---------------------------------------------------------------------------------
CASH FLOW DATA
---------------------------------------------------------------------------------
EVENT          START DATE         AMOUNT        NUMBER     PERIOD     END DATE
---------------------------------------------------------------------------------
<S>            <C>             <C>              <C>        <C>        <C>
 1 Loan        01/01/2000      1,000,000.00       1
 3 Payment      02/1/2000         10,000.00       2        Monthly     03/01/2000
 4 Loan         03/1/2000        500,000.00       1
 5 Payment      04/1/2000         15,000.00       3        Monthly     06/01/2000
 6 Loan         06/1/2000        500,000.00       1
 7 Payment      07/1/2000         20,000.00       3        Monthly     09/01/2000
 8 Loan         09/1/2000        500,000.00       1
 9 Payment      10/1/2000         25,000.00       5        Monthly     02/01/2001
10 Payment     02/01/2001      2,750,000.00       1
11 Payment     02/01/2001         12,500.00      60        Monthly     01/01/2006

</TABLE>

                          Page 11 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                   -----------------
<PAGE>

                              CONSENT CERTIFICATE

The undersigned hereby certify as follows:

1.  They are all of the directors of Training Devices International, Inc., a
    Colorado corporation (hereinafter called the "Company"), entitled to vote
    with respect to the subject matter hereof.

2.  The following resolutions are consented to by the undersigned as such
    directors as and for their unanimous act and the act of the Company as
    provided in and in accordance with the provisions of the Colorado Business
    Corporation Act:

         WHEREAS, the Company wishes to borrow Two Million Five Hundred
         Thousand Dollars ($2,500,000.00) from Reginald D. Fowler and the
         officers of the Company are negotiating agreements for this purpose;
         now therefore be it

         RESOLVED, that the President of the Company, the Chief Executive
         Officer of the Company and any Vice President of the company, and
         each of them, are hereby authorized to execute and deliver on behalf
         of the Company the promissory note and security agreement (a draft
         of which is attached to this Certificate) for a total indebtedness of
         Two Million five Hundred Thousand Dollars ($2,500,000.00), plus
         Interest, Loan Fee, and Revenue Participation Premium to Reginald D.
         Fowler, with such terms and conditions and with such changes to the
         draft documents as the officer executing the same shall approve
         (whose execution shall conclusively evidence that approval);

         RESOLVED, that the officers of the Company are hereby authorized and
         directed to take such actions and execute such documents as may be
         necessary (1) to effectuate the foregoing resolutions, (2) to
         consummate the transactions contemplated by the above-described loan
         documents, and (3) to perform and comply with the terms and
         conditions of the final above-described loan documents.

3.  This Certificate shall be deemed to be fully executed and delivered when
    each of the undersigned has executed at least one counterpart, but not
    necessarily the same counterpart, hereof.

4.  The undersigned have executed this Certificate as of October 25, 1999.

                                       /s/ Ronald C. Ellington
                                       -------------------------------
                                       Ronald C. Ellington, Director

                                       /s/ Bruce S. Betschart
                                       -------------------------------
                                       Bruce S. Betschart, Director

                                       /s/ Robert E. Sawyer, Jr.
                                       -------------------------------
                                       Robert E. Sawyer, Jr., Director

                                       /s/ Leonard Hawkins
                                       ------------------------------
                                       Leonard Hawkins, Director

                          Page 12 of 12      Lender /s/ RF /  /s/ RE  Borrower
                                                    ----------------<PAGE>

                                 FINAL CONTRACT

                         Revision 03, November 17, 1999

                                     between
                       TRAINING DEVICES INTERNATIONAL INC.
                              7367 S.REVERE PARKWAY
                                    BLDG. 2C
                         ENGLEWOOD, COLORADO 80112-3931
                            UNITED STATES OF AMERICA

                       - hereinafter referred to as "TDI"

                                       and

                      HYDRAUDYNE SYSTEMS & ENGINEERING B.V.
                        KRUISBROEKSESTRAAT 1, P.O. BOX 32
                                 5280 AA BOXTEL
                                 THE NETHERLANDS

                    - hereinafter referred to as "HYDRAUDYNE"

                   CONCERNING THE MANUFACTURE AND DELIVERY OF
                    TWO (2) LEVEL C/D MOTION SYSTEMS FOR THE
                          FULL FLIGHT SIMULATOR PROGRAM
                            OF BEECH 1900 SIMULATORS

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Hydraudyne Systems & Engineering B.V.              Page 1
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<PAGE>

                                TABLE OF CONTENTS
<TABLE>

<S>   <C>                                                                   <C>
1.    EXPLANATION OF TERMS...................................................4

2.    SUBJECT MATTER OF THIS CONTRACT........................................4

3.    TIME SCHEDULE..........................................................5

4.    DEFAULT OF DELIVERY / DELAY............................................5

5.    PLACE OF DESTINATION - INSTRUCTIONS FOR SHIPMENT / TITLE AND RISK......6

6.    LIABILITY INSURANCE....................................................6

7.    WARRANTY...............................................................7

8.    PATENT RIGHTS / OWNERSHIP..............................................7

9.    PRICES.................................................................7

10.   PAYMENT................................................................8

11.   RIGHTS OF USE CONCERNING USER DOCUMENTATION............................8

12.   RIGHTS OF USE CONCERNING COMPUTER SOFTWARE.............................9

13.   EXTRAORDINARY TERMINATION OF CONTRACT, SETTLEMENT OF RESIDUAL CLAIMS...9

14.   SPARES.................................................................9

15.   QUALITY CONTROL.......................................................10

16.   QUALITY INSPECTION, FACTORY TESTING AND ACCEPTANCE....................10

17.   GENERAL ALTERATIONS OF THE CONTRACT...................................11

18.   PARTIAL INVALIDITY....................................................11

19.   VENUE OF JURISDICTION.................................................11

20.   GENERAL PROVISIONS....................................................11

21.   CONTRACT VALIDITY.....................................................12

</TABLE>

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Hydraudyne Systems & Engineering B.V.              Page 2
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<PAGE>

                               LIST OF APPENDICES

Appendix 1  Scope of Supply

Appendix 2  Supply Prices

Appendix 3  Hour Rates Hydraudyne Engineers

Appendix 4  Milestone Schedule Motion System 1 and 2

Appendix 5  Technical Specification HSE-6-MS-60-C-5D

Appendix 6  Master Performance Bond document

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Hydraudyne Systems & Engineering B.V.              Page 3
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<PAGE>

1.     EXPLANATION OF TERMS

In this contract, the following abbreviations shall have the meanings shown
hereafter. Other abbreviations may be introduced and defined in the relevant
sections of this contract.

ABBREVIATION                              EXPLANATION

End User                      End user or owner of simulator

TDI                           Prime contractor, namely:
                              Training Devices International Inc.
                              7367 S. Revere Parkway
                              Bldg. 2C
                              Englewood, Colorado 80112-3931
                              United States of America

HYDRAUDYNE                    Subcontractor of TDI, namely:
                              Hydraudyne Systems & Engineering B.V.,
                              Kruisbroeksestraat 1, P.O. Box 32,
                              5280 AA Boxtel, The Netherlands

RFT                           Shall mean the simulator and its subsystems are
                              Ready For Training as deemed by TDI.

2.     SUBJECT MATTER OF THIS CONTRACT

2.1.   HYDRAUDYNE shall be fully and exclusively responsible to TDI for the
       correct execution of this contract with respect to the deliverable items
       (material and services) to be provided hereunder on the commercial,
       technical, time schedule and quality assurance levels in accordance with
       the provisions of this contract and its appendices.

2.2.   HYDRAUDYNE as a specialist company and having knowledge of the intended
       use of the subject matter of this contract undertakes to provide the
       following services and to supply the following "Works".

2.2.1. Manufacture, installation, commissioning and tuning of the first
       delivered motion system. Manufacture, and installation assistance of the
       second motion system.

2.2.2. Delivery of Documentation to the extent described in Appendix 1.

2.2.3. FAA certification and tuning support of the first motion system as
       described in Appendix 1, item 13.

2.2.4. Training Courses as described in Appendix 1.

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2.3.  The minimum performance of the system shall conform to Technical
      Specification HSE-6-MS-60-C-5D, Appendix 5 with an enhanced bandwidth
      (frequency response) of 0.1-4 hertz in heave mode, not to exceed
      45 DEG., and FAA AC 120-40B motion criteria for level C/D. Design changes
      are not included in the supply price and have not been taken in
      consideration in the mile stone schedule. Design changes may result in
      an increase of the supply price and/or a delay in delivery time.

3.    TIME SCHEDULE

3.1.  HYDRAUDYNE shall keep the delivery dates as per Appendix 4 (Milestone
      Schedule) for the services and supplies as described in Appendix 1.

4.    DEFAULT OF DELIVERY / DELAY

4.1.  In the event that HYDRAUDYNE is delayed in meeting any date specified
      in the Milestone Schedule, HYDRAUDYNE shall promptly provide to TDI
      possible work-around plans to minimize the delay on the Program. Such
      plans may include the assignment of additional personnel, increase in
      required hours of work, acceleration of effort on parallel tasks, and
      other planned efforts that are designed to overcome the effect of the
      delay.

4.2.  In the event that HYDRAUDYNE anticipates that it will be or actually is
      delayed by a cause that is the result or fault of HYDRAUDYNE from
      meeting any date specified in the Milestone Schedule, HYDRAUDYNE shall
      promptly provide to TDI possible recovery plans to minimize the delay.

4.3.  In the event that dates specified in the Milestone Schedule is not
      observed by sole fault of HYDRAUDYNE or its supplies, HYDRAUDYNE shall
      pay TDI a penalty of 0.5% of the value of the delayed delivery or
      service, per week of delay. If the delay causes the RFT date to be
      delayed, HYDRAUDYNE will pay to TDI $ 500/day until the delay is
      remedied.  If any delay exceeds sixty (60) days, HYDRAUDYNE will be in
      default.  The sum of all penalties shall not exceed 5% of the contract
      value.  If the penalty cap is reached, HYDRAUDYNE will be in default.
      A grace period of one week is extended at the option of TDI only if the
      delay will not effect RFT.

4.4.  The payment of the contract penalty shall not release HYDRAUDYNE from its
      obligations hereunder.

4.5.  HYDRAUDYNE shall not be liable for loss or damage resulting in any
      delay or failure to deliver or complete the works within the time
      specified as a result of acts of God, any civil or military authority,
      civil disturbances, strikes, fires, floods, other catastrophes,
      embargoes, any governmental restrictions and any circumstances beyond
      HYDRAUDYNE' control except delays by its suppliers. In case of such
      events, HYDRAUDYNE shall, within 7 working days after such an event,
      notify TDI of the consequences in writing.

      Where HYDRAUDYNE is prevented from or delayed in performing its
      obligations under this contract by any event under this clause, HYDRAUDYNE
      shall be given such an extension of time as may be reasonable having
      regard to the duration of the mentioned events under this clause, the
      effect of these events on HYDRAUDYNE' operations and HYDRAUDYNE' duty to
      mitigate the

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      consequences of any delay caused by this clause, however, such
      extension of time shall not exceed the period of 3 (three) months (in
      aggregate) following the date of the incident.

4.7.  If HYDRAUDYNE is in default as set forth above, TDI may, in addition to
      any other remedies available under this contract or applicable law
      (whether law or in equity), terminate this contract upon written notice to
      HYDRAUDYNE.

4.8.  In the event of termination, TDI will return all HYDRAUDYNE furnished
      supplies to HYDRAUDYNE and HYDRAUDYNE shall return all monies paid by TDI
      to HYDRAUDYNE.

4.9.  Any claims under this clause must be received by HYDRAUDYNE in writing,
      within seven (7) days after each event.

4.10. The same conditions as mentioned in clause 4.1 - 4.2 and 4.5 - 4.9 under
      this contract will apply in the favor of HYDRAUDYNE in the case that delay
      is caused by TDI or the end user.

5.   PLACE OF DESTINATION - INSTRUCTIONS FOR SHIPMENT / TITLE AND RISK

5.1. The place of destination for the items of delivery as stated in Appendix 1
     shall be the following address:

     Training Devices International Inc.
     7367 S.Revere Parkway
     Bldg. 2C
     Englewood, Colorado 80112-3931
     United States of America

5.2. Title of HYDRAUDYNE' scope of supply will pass from HYDRAUDYNE to TDI upon
     RFT and after all contractual payments described in paragraph 10 have been
     performed.

5.3. Risks of loss of HYDRAUDYNE' scope of supply will be transferred to TDI
     after installation by HYDRAUDYNE at TDI premises.

6.    LIABILITY INSURANCE

6.1  Insurance Provisions

     Hydraudyne shall hold TDI harmless against all claims resulting from our
     product and all legal liabilities towards third parties.

6.2  Certificates of Insurance

     Within thirty (30) days after the date of this Contract, Hydraudyne shall
     provide TDI a certificate of their legal and product liability insurance.

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7.   WARRANTY

7.1.    HYDRAUDYNE as a specialist company and having knowledge of the purpose
        of the subject matter of this contract, shall assume the responsibility
        for all of its contractual obligations as a whole and warrant with
        respect to the subject matter of this contract:

        a) conformity to the contents of the contractual technical documents
        b) completeness and correctness of the documentation to be delivered
        c) quality of material
        d) expert and good workmanship

7.2.    HYDRAUDYNE shall be promptly notified in writing by TDI during the
        warranty period of any defect or non-conformance in the parts of the
        products delivered under this contract.

7.3.    Hydraudyne provides warranty for a period of 12 months after RFT or 18
        months after installation at TDI, which ever comes first.

7.4.    Provided that an examination of defective or non-conforming articles
        (under mutual agreement) discloses that any defect or non-conformance
        was caused by negligency, improper use or installation, normal wear and
        tear, accident, unauthorized repair or alteration by someone other than
        HYDRAUDYNE, the warranty obligations shall not apply.

7.5.    In those cases where, as a consequence of a warranty claim, HYDRAUDYNE
        shall have to furnish new components, the warranty shall also include
        the delivery of new replacement material required, free of any charge.
        The functional compatibility of the replacement material to be adapted
        or to be newly delivered by HYDRAUDYNE shall be ensured.

7.6.    HYDRAUDYNE shall ensure that all parts including recommended spares be
        available (form, fit and function) for the next 10 years.

8.      PATENT RIGHTS / OWNERSHIP

8.1.    HYDRAUDYNE hereby declares that the results of the work are not
        encumbered by rights of third parties, and shall release TDI from any
        claims made by third parties, if the results of the work infringe the
        proprietary rights of third parties.

9.      PRICES

9.1.    The following firm price is agreed for the services and supplies for 2
        (two) motion systems as described in Appendix 1, provided by HYDRAUDYNE
        hereunder:

                  US$ 1,000,000.-

        Excluding any taxes duties and other fees which may be applicable
        outside of the Netherlands.
        Excluding the options as mentioned in Appendix 2.
        The price mentioned above is a firm fixed price motion system #1 CIF
        TDI, Englewood, Colorado, USA, motion system #CIF, (Incoterms
        1990) Boxtel, including the services at Site, as

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        described in Appendix 1. HYDRAUDYNE shall arrange for the shipment of
        motion system #2 from Boxtel to TDI and invoice TDI at cost for the
        shipment.

9.2.    In the event that, upon request by TDI, HYDRAUDYNE is called upon to
        provide assistance, outside the scope of this Contract, the rate for
        such services shall be as per Appendix 3 (Hour Rates).

10.     PAYMENT

        The parties agree on the following terms of payment:

10.1.   Payment schedule

        The following payment schedule is agreed for the price as mentioned in
        paragraph 9.1:

        1)  15%  of total Contract value as advance payment upon Contract
            Award

        2)  45%  of total Contract value at RFT system 1.

        3)  40%  of total Contract value at RFT system 2.

10.2.   Each milestone payment shall only be due if all conditions of the
        preceding milestones have been fulfilled by HYDRAUDYNE. HYDRAUDYNE will
        provide a Mannesmann Performance Bond of 5% of each system RFT, valid
        from the moment that payment is received by HYDRAUDYNE in its free
        disposal with a validity of six (6) months but not longer than one (1)
        year after installation of each system after which the Performance
        Bond will be null and void. See Appendix 6 for the Performance Bond
        Master document.

10.3.   All payments shall be made net 30 days after invoice date by wire
        transfer

11.     RIGHTS OF USE CONCERNING USER DOCUMENTATION

11.1    HYDRAUDYNE declares that it has no knowledge whatsoever concerning third
        parties' adverse proprietary rights concerning the user documentation.

11.2    Documentation provided will be all that is necessary for the operation,
        calibration, maintenance, repair, tuning, and modification of the motion
        system.

11.3    HYDRAUDYNE grants TDI the right to repackage and redeliver the user
        documentation to the end user.

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12.     RIGHTS OF USE CONCERNING COMPUTER SOFTWARE

12.1.   The software provided will be all that is necessary for the operation,
        calibration, maintenance, repair, tuning, and modification of the motion
        system. TDI recognizes that HYDRAUDYNE' software is proprietary to
        HYDRAUDYNE and title remains in HYDRAUDYNE.

13.     EXTRAORDINARY TERMINATION OF CONTRACT, SETTLEMENT OF RESIDUAL CLAIMS

13.1.   The parties hereunder agree to the right to an extraordinary termination
        with settlement of residual claims.

13.2.   In the case of a rescission of this contract, by TDI, through no fault
        of HYDRAUDYNE, wholly or in part, HYDRAUDYNE is entitled to a
        compensation amounting to the cost incurred by the performance of work
        or to the expenses incurred including lost profits and reasonable
        termination costs.

13.3.   Any claims raised by HYDRAUDYNE shall be justified and documented. In no
        case the payments will exceed the amount to which HYDRAUDYNE would have
        been entitled after fulfillment of the entire contract.

14.     SPARES

14.1.   Hydraudyne shall provide to TDI, within 90 days of Contract award,
        recommendations for spares required to support the supplies delivered
        by HYDRAUDYNE, in the form of a recommended spares list. This list
        shall contain the following information for each recommended spare:

        a. vendor part description
        b. vendor name
        c. vendor part name
        d. level of repair (TDI/Vendor/Expendable)
        e. vendor spare recommendations
        f. spare quantity recommendation

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15.     QUALITY CONTROL

15.1    HYDRAUDYNE undertakes to maintain a quality assurance system for this
        project in accordance with ISO 9001, latest issue.

15.2.   TDI, at own expense, shall be entitled to audit HYDRAUDYNE' quality
        system on a non-interference basis on site, at any time upon
        notification no less than ten (10) working days in advance.

15.3.   HYDRAUDYNE shall maintain adequate record throughout all stages of
        contract performance of inspections, tests, and other control processes.

15.4.   HYDRAUDYNE undertakes to establish similar quality assurance measures
        with its subcontractors.

16.     QUALITY INSPECTION, FACTORY TESTING AND ACCEPTANCE

16.1.   The Quality Assurance of the end user and the Quality Assurance of the
        representatives of TDI respectively shall be authorized to audit the
        quality assurance measures related to the subject matter of this
        contract in accordance with the Quality Assurance Plan of HYDRAUDYNE.
        Quality Assurance Audits shall be held at the HYDRAUDYNE facility on a
        non-interference basis. When possible, notification of Quality Audits
        (inspections) by TDI shall be provided to HYDRAUDYNE 10 (ten) working
        days prior to the scheduled inspection.

16.2.   Prior to delivery to TDI, HYDRAUDYNE shall perform a Factory
        Test (FT) of the subassemblies subject matter of this
        contract. All tests will be carried out in accordance with a Standard
        Factory Test Plan (FTP) for purposes of conducting the FT at
        HYDRAUDYNE on the date which shall be agreed between the parties no
        less than two (2) weeks prior to the commencement of FT.

16.3.   HYDRAUDYNE shall deliver the FTP to TDI for review and comment at least
        six (6) weeks prior to the scheduled date of the first FT. Failure of
        TDI to respond with acceptance or rejection (including complete details
        pertaining to the rejection) within ten (10) working days shall be
        considered deemed acceptance of the FTP.

16.4.   The Quality Assurance representatives of TDI shall be entitled to attend
        the FT performed by HYDRAUDYNE. All costs incurred by TDI (e.g. travel
        & living expenses, TDI labor) shall be to the account of TDI.

16.5.   With completion of the FT, TDI and HYDRAUDYNE together shall
        establish a factory test report with a list of all outstanding
        points. This list shall show all deficiencies identified during the
        testing, if any, and a reasonable schedule for correction of the
        deficiencies. The factory test report shall be signed by both parties
        prior to departure. HYDRAUDYNE then immediately shall start to
        rectify the defects stated in the factory test report.

16.6    HYDRAUDYNE shall notify TDI, a minimum of fourteen (14) days, in
        advance of the time when the Factory Test of the subassemblies of the
        subject matter of this contract shall be carried out.

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16.7    With respect to services performed by HYDRAUDYNE  at TDI's facility,
        TDI shall inspect and test such services, and related products,
        following the completion of the work and shall sign a certificate of
        final acceptance before the departure of HYDRAUDYNE personnel from
        TDI's facility. In the event that testing and inspection identifies
        deficiencies or failure of the services and related products,
        HYDRAUDYNE personnel, prior to departure, shall rectify or submit a
        plan for rectification of said items within a mtutually agreed period
        of time.

17.     GENERAL ALTERATIONS OF THE CONTRACT

17.1.   Alterations of or supplements to this contract shall be valid only if
        agreed upon between HYDRAUDYNE AND TDI in the form of written amendments
        to this contract, countersigned by authorized representatives of the
        parties.

18.     PARTIAL INVALIDITY

18.1.   In the event that it is held by a court of law or other lawful
        authority of competent jurisdiction that any provision of this
        contract or part thereof is void, illegal, invalid or unenforceable
        then such provision or part shall be deemed stricken, and the
        remaining provisions shall be deemed savable and remain valid, in
        full force and effect. In such case the parties to this contract
        shall stipulate provisions having a commercial content as similar as
        possible to the invalid provisions.

19.     VENUE OF JURISDICTION

19.1    The parties to this contract shall endeavor to settle any disputes
        arising therefrom in a spirit of good faith and mutual understanding. In
        case of failure to settle such disputes, then for both parties to this
        contract the sole venue of jurisdiction for all disputes arising
        directly or indirectly from this contract shall be the State of
        Colorado, USA.

20.     GENERAL PROVISIONS

20.1.   In the event of any inconsistency between the documents which form a
        part of this contract, the following priority, in order of descending
        authority, will apply:

        1. Contract
        2. Technical Contract Specification
        3. Milestone Schedule

        These documents shall be part of this contract.

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21.     CONTRACT VALIDITY

21.1.   This document together with all attachments referenced in any ensuing
        contract, constitutes the entire agreement between the parties
        relating to the sale of products or services and supersedes all
        previous communications, representations, or agreements, either oral
        or written, with respect to the subject matter hereof, and no
        representations or statements of any kind made by any representative
        of the parties which are not stated herein, shall be binding to the
        parties.

21.2.   No addition to or modifications of any provision of any contract shall
        be binding on the parties unless made in writing and signed by a duly
        authorized representative of the parties.

        Accepted: X /s/ Peter Waasdorp                      Date:  22-11-99
                    ----------------------------                 --------------
                  Name: Peter Waasdorp

                  Title: Manger Contracts & Finance

                  Hydraudyne Systems & Engineering, BV
                  Boxtel, The Netherlands

        Accepted: X                                         Date:
                    ----------------------------                 --------------

                  Name: Bruce Betschart

                  Title: President

                  Training Device International Inc.
                  Englewood, Colorado,
                  United States of America

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                                   APPENDIX 1
                                 Scope of Supply
                                    (3 pages)

                      SCOPE OF SUPPLY FOR 2 MOTION SYSTEMS

The delivery of two motion systems, type HSE-6-MS-60-C-5D, consists of the
following sub-systems :

01.   2X MOTION BASE ASSEMBLY, each consisting of:
      6x    60 inch stroke (1524 mm) Hydraulic Motion Actuators
      3x    Double Universal Upper Joint Units
      3x    Double Universal Lower Joint Units
      3x    Floor Mounting Pads

02.   2X ACCUMULATOR & FILTER STATIONS, each consisting of:
      3x Subassemblies for two Motion Actuators each consisting of:
            1x    High pressure accumulators
            2x    High pressure filters
            2x    Return line accumulators

03.   2X HYDRAULIC POWER UNIT, each consisting of:
      1x Hydraulic fluid reservoir
      2x Hydraulic pumps for the main flow
      1x Hydraulic pump for cooling and circulation
      1x Power Unit Control Cabinet (PUCC) and maintenance control panel
      1x Hydraulic Fluid Conditioning Unit with water cooler
      1x First filling of system
      1x Provisions for a control loading pump set

04.   2X MOTION CONTROL CABINET (MCC), each consisting of:
      1x Digital drive electronics:
         -  Motion Computer with motion maintenance and actuator control loop
            software
         -  Plug-in cards for digital and analog I/O
         -  Ethernet interface between host computer and motion control computer
      1x Inputs for customer safety interlocks
      1x Inputs and outputs for Access Ramp control
      1x Uninterruptable Power Supply (UPS)
      1x Motion system control Panel
      1x Motion Control Cabinet (MCC) containing the System Electronics.

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05.   2X SET OF INTERCONNECTING HOSES, each consisting of:
      3x Interconnecting hoses between Hydraulic Power Unit
         and Accumulator Filter Stations: 70 ft Motion System #1, 85 ft
         Motion System #2
      6x Interconnecting hoses (length 10 ft) between Accumulator Filter
         Stations and Motion Servo Actuators

06. 2X SET OF INTERCONNECTING CABLING, each consisting of:
    - Cabling between HPU Motion Control Cabinet, length approx. 100 ft.
    - Cabling between Motion Cabinet and Motion Base, length approx. 65 ft.
    - Position transducer cabling between Motion Control Cabinet and Upper
      Joint Units, length approx. 100 ft.

07.   PROJECT ENGINEERING AND MANAGEMENT.
      - Sub-assembly test of actuators, hydraulic power unit and electronics
      - Factory Test of all sub-systems
      - Logistic support

08. QUALITY ASSURANCE AND INSPECTIONS ACCORDING ISO 9001 CERTIFICATION

09.   THREE (3) SETS OF MANUALS, DOCUMENTATION AND DRAWINGS.
      - Operation manual, with start-up and shut-down procedures
      - Maintenance manual, with inspection schemes
      - Parts lists with reference to hydraulic and electrical schemes
      - Interface Control Document
        The ICD will provide all mechanical, electrical and environmental
        interfaces.
      - Main items parts list
      - Proposed spare parts list

10.   PACKING AND SHIPPING.
      - Packing and shipping CIF - TDI, Englewood, Colorado, USA - System #1,
        packing Hydraudyne, Boxtel, The Netherlands - Systems #2.

11. ASSEMBLY AND INSTALLATION ON SITE.
        The first motion system to be delivered at TDI will be assembled by
        Hydraudyne service engineers including travel, board and lodging, for
        which assistance is required of two (2) TDI mechanical engineers for
        hoisting, lifting and drilling activities. Assembly includes the
        hydraulic power supply and the electronic control system.

      One Hydraudyne service engineer will assist the assembly of the second
      motion system to be delivered at TDI. Assembly and installation assistance
      is based on ten (10) working days (Monday till Friday), for one (1)
      Hydraudyne service engineer, including travel, boarding and lodging.

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12.   COMMISSIONING, FINE TUNING AND MAINTENANCE & OPERATION COURSE.
      After completion of the assembly of the first simulator, Hydraudyne system
      engineers will commission the complete motion system. During commissioning
      and fine-tuning the complete motion system will be tested with the full
      payload installed. Activities included:
      - Testing of the motion system functionality
      -  Checking of the complete system (hydraulics, electronics, mechanics and
         software)
      -  Fine tuning of the motion performances, in relation to the applicable
         simulated aircraft type

      During the first delivery a maintenance and operation course for
      maintenance employees and operators is included with the commissioning of
      the motion system. During commissioning and fine-tuning Hydraudyne will
      give an operation course in practice, a one-day course in a classroom and
      a one-day maintenance course.

      Commissioning and fine-tuning is based on five (5) working days (Monday
      till Friday), for one (1) Hydraudyne systems engineer, including travel,
      boarding and lodging.

13.   FAA CERTIFICATION ASSISTANCE
      For FAA Level C/D purposes. Hydraudyne provides TDI, at the time of
      initial FAA evaluation, with a systems engineer for a total period of 5
      working days. The main task of the system engineer is to assist TDI
      with final tuning adjustments to the motion system in order to receive
      certification by the FAA. The FAA assistance includes travel, board
      and lodging for one systems engineer and is based on 5 working days.

14.   FINANCIAL ARRANGEMENT

      Hydraudyne will supply a financial arrangement to TDI. TDI will pay 15%
      of the total Contract value at Order Award. Thereafter TDI will not be
      invoiced until the Flight Simulator is ready for training. The total
      period of this financial arrangement is limited to 18 months, starting
      at the date of Order Award. The financial arrangement, as agreed upon
      between Mr. Peter Waasdorp (Manager Contracts & Finance, Hydraudyne) and
      Mr. Ron Ellington (CEO TDI) will form the basis for payments between TDI
      and Hydraudyne regarding this contract. All costs for the financial
      arrangement including interest costs will be taken care of by
      Hydraudyne/Mannesmann Rexroth (see attached side letter of Mr. Peter
      Waasdorp).

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                              [LETTERHEAD]

Re: Contract for two flight Simulator program of Beech 1900 Simulators.

Dear Ron,

As promised we have evaluated the possibility to extend your payment from the
period of delivery of our equipment till the moment the systems are ready for
Training at T.D.I.'s premises. This RFT takes place 6 months after final
tuning by Hydraudyne.

Due to the Milestone Schedule Appendix 4 of our contract the commence of
Tuning is scheduled for system I on June 26th, 2000 and for system II on
September 15, 2000. This means that your payment of 85% for system should take
place before the end of 2000 and for system II before March 2001.
Based on your financial information, which we received on November 12, 1999,
we are willing to accept this payment schedule based on the following
conditions.

-  Hydraudyne reserves the right of Title of the delivered equipment till
   100% payment has been executed by T.D.I.

-  T.D.I. declares in writing that no thrid party can claim property rights
   on the delivered motions systems until title is transferred to T.D.I.

-  T.D.I. shall show Hydraudyne before delivery that they have the financial
   strength to fulfil the financial obligation on the moment the systems are
   ready for training.

-  Hydraudyne will deliver a cost system, type HSE-6-MS-60-C-5D according
   Appendix 5 of the contract.

-  On shipment of the systems T.D.I. will present a duly signed commitment
   letter (no bank draft) stating that TDI will pay Hydraudyne the payment
   milestone of 85% of each system at the moment the systems are ready for
   training. (RFT), however at the latest 6 months after final tuning of the
   systems.

-  Financing costs for this extended payment will be paid by Hydraudyne.

Of course this obligation will come effective in case Hydraudyne fulfils its
contractual obligations. If you can confirm the above statements, the in the
meantime in good co-operation between our companies negotiated contract shall
be effective, and will be signed by both of us not later that November 22,
1999. This letter will be as a part of our side letter of our contract
referring to item 14, page 15.

We thank you in advance for your efforts and we look forward to a good and
frutiful co-operation.

Kind regards,

HDYRAUDYNE SYSTEMS & ENGINEERING B.V.

/s/ Peter Waasdorp

Peter Waasdorp
Manager Contracts & Finance

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<PAGE>
                                   APPENDIX 2
                            Supply Prices and Options
                                    (1 page)

2X TOTAL MOTION SYSTEM TYPE HSE-6-MS-60-C-5D, INCL.:

              Project engineering
              Project management
              QA system
              Documentation conform HYDRAUDYNE standard
              Design reviews for first motion system
              Drawings
              Packing, transport, and delivery of the motion systems
                (conform this contract)
              Assembly + plus assembly assistance on second motion system
              Installation for first motion system (no civil works)
              Commissioning
              Maintenance and operation course (2 days)
              Fine tuning
              FAA Assistance
              Financial arrangement

Total price   US$  1,000,000.- per two (2) systems

Options for two motion systems (not included in scope of supply):

1.    SPARE PARTS PACKAGE, CONSISTING OF:
      1x Hydraulic actuator including servo controlled proportional valve
      1x Digital I/O card
      1x Axial piston pump
      1x Set of air breathers
      1x Set of fuses and bulbs for the Power Unit Control Cabinet and Motion
         Control Cabinet
      1x Packing and transport (CIF, Incoterms 1990) Denver USA, System #1;
         CIF Boxtel, The Netherlands, System #2

      Total supply price:   US$ 46,000

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Hydraudyne Systems & Engineering B.V.              Page 17
Final Contract TDI - Hydraudyne Rev.03                                  17/11/99

<PAGE>

                                   APPENDIX 3

                         Hour Rates Hydraudyne Engineers
                                    (1 page)

HOUR RATES SERVICE ENGINEER

1. Hour rates are valid for travel-, working- and waiting hours.

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

          Rates Zone II       Service Engineer   Systems
                                (Hydraulic)      Engineer
          --------------------------------------------------
          --------------------------------------------------

 1.1      Normal
          working-hours       US$ 60.-         US$  90.-
          07:00 - 17:00
          --------------------------------------------------
          --------------------------------------------------

 1.2      Overtime hours      US$ 72.-         US$ 120.-
          Monday/Friday
          --------------------------------------------------
          --------------------------------------------------

 1.3      Weekend hours       US$ 100.-        US$ 140.-
          Saturday/Sunday
          --------------------------------------------------
          --------------------------------------------------

 1.4      Hours on national
          legal holidays in   US$ 115.-        US$ 155.-
          Holland
          --------------------------------------------------

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Hydraudyne Systems & Engineering B.V.              Page 18
Final Contract TDI - Hydraudyne Rev.03                                  17/11/99
<PAGE>

                                   APPENDIX 4

                               Milestone Schedule
                                    (1 page)

Contract Award                                               November 22, 1999
Kick-Off Meeting - TDI Facility                              December 6, 1999
Preliminary ICD to TDI                                       February 4, 2000
Initial ATP to TDI                                           March 13, 2000
TDI ATP Comments to HYDRAUDYNE                               March 27, 2000
Final ATP                                                    April 10, 2000
Final ICD to TDI                                             April 10, 2000
Electronics and Software (Motion Computer, etc.) to TDI      April 10, 2000
FAT - System #1                                              April 24, 2000
Ship - System #1                                             May 5, 2000
Delivery - System #1 to TDI                                  June 5, 2000
Commence Installation - System #1 at TDI                     June 5, 2000
Receipt of Preliminary Documentation by TDI                  May 29, 2000
Commence Tuning - System #1 at TDI                           June 19, 2000
Training Classes at TDI                                      June 26, 2000
Ship - System #2                                             July 1, 2000
Delivery - System #2 to TDI                                  August 1, 2000
Commence Installation - System #2 at TDI                     August 1, 2000
Receipt of Final Documentation by TDI                        September 15, 2000

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Hydraudyne Systems & Engineering B.V.              Page 19
Final Contract TDI - Hydraudyne Rev.03                                  17/11/99

<PAGE>

                                   APPENDIX 5

                   Technical Specification HSE-6-MS-60-C-5D

--------------------------------------------------------------------------------
Hydraudyne Systems & Engineering B.V.              Page 20
Final Contract TDI - Hydraudyne Rev.03                                  17/11/99
<PAGE>

                                   APPENDIX 6

                        Master document Performance Bond

--------------------------------------------------------------------------------
Hydraudyne Systems & Engineering B.V.              Page 21
Final Contract TDI - Hydraudyne Rev.03                                  17/11/99

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