<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

            This Agreement is made and entered into as of September 17, 1998,
between ANADIGICS, INC., a Delaware corporation (the "Company"), and BAMDAD
(BAMI) BASTANI (the "Executive").

            WHEREAS, the Company desires to employ the Executive on the terms
and subject to the conditions set forth herein.

            WHEREAS, the Executive is willing to accept employment on such terms
and conditions.

            NOW, THEREFORE, in consideration of the mutual covenants contained
in this Agreement, the parties hereby agree as follows:

                                       I.

                                   EMPLOYMENT

            A. The Company agrees to employ the Executive and the Executive
agrees to be employed by the Company for the term of employment as provided in
Article II below and upon the terms and conditions provided in this Agreement.

            B. The Executive represents and warrants to the Company that by
entering into and performing the Executive's obligations under this Agreement,
the Executive has not breached and will not breach duties or obligations
(whether fiduciary, contractual or arising by operation of law or otherwise)
owed to any third party in connection with any prior employment or position.

                                       II.

                                      TERM

            The Executive's term of employment under this Agreement shall
commence on October 2, 1998 (the "Closing Date") and shall terminate as provided
in Article VI hereof (the "Stated Term of Employment").
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                                       -2-


                                      III.

                          POSITION AND RESPONSIBILITIES

            A. During the Stated Term of Employment, the Executive agrees to
serve as President and Chief Executive Officer of the Company and each
subsidiary of the Company and to serve as a member of the Company's Board of
Directors (the "Board") and to be responsible for the general management of the
operations of the Company and its subsidiaries, subject to the direction of the
Board. The Executive shall report directly to the Board.

            B. During the Stated Term of Employment, the Executive shall devote
all of his business time, attention and skill exclusively to the business and
affairs of the Company and its subsidiaries and as otherwise approved by the
Board. Subject to the Board's consent, which shall not be unreasonably withheld,
the Executive may engage in civic or charitable activities and serve on the
boards of directors of other corporations. The Executive shall perform
faithfully the duties which may be assigned to him from time to time by the
Board and shall use his best efforts and skills to promote the Company's and its
subsidiaries' business and shall follow, at all times during the course of his
employment hereunder, prudent and ethical business practices. During the
continuance of the Executive's employment hereunder the Executive shall comply
with all reasonable requests and directions from time to time given to the
Executive (consistent with his position as the President and Chief Executive
Officer) by the Board and with all rules and regulations from time to time
promulgated by the Company and its subsidiaries concerning its employees.

                                       IV.

                                  COMPENSATION

            For services rendered by the Executive hereunder, the Executive
shall be compensated as follows:

            A. Base Salary

            The Company shall pay the Executive a fixed base salary of $420,000
per calendar year (or prorated portion thereof), subject to increase in the sole
discretion of the
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                                       -3-


Board (the "Base Salary"), payable in installments on the Company's regular
payroll dates commencing on the Closing Date. If, in the sole discretion of the
Board, the Executive's Base Salary is increased, such increased Base Salary
shall then constitute the "Base Salary" for purposes of this Agreement.

            B. Sign-on Bonus

            The Company shall pay the Executive a sign-on bonus of $100,000 on
the Closing Date.

            C. Performance Bonus

            In addition to the Base Salary, the Executive shall be eligible for
bonuses as well as other incentive compensation as may be authorized from time
to time by the compensation committee of the Board (the "Compensation
Committee"). The bonuses shall be based upon satisfactory achievement of the
Company's operational and strategic business plan and financial projections
("Plan"), proposed by the Executive to the Board and agreed to by the Board,
with the targeted annual bonus being 100% of the Executive's then annual Base
Salary for achieving Plan and 120% of Base Salary for exceeding Plan, subject to
determinations of the Compensation Committee. The bonus shall be earned and paid
out quarterly with respect to achieving or exceeding Plan for such quarter.

            D. Business Related Expenses

            The Company shall reimburse the Executive, in accordance with
Company policy, for all actual documented out-of-pocket travel, entertainment,
business and other expenses reasonably and properly incurred by the Executive in
performing his duties and obligations under this Agreement.

            E. Stock Options

            The Company shall, in connection with the Executive's employment
under this Agreement, grant to the Executive options to purchase that number of
shares of the Company's Common Stock, par value $.01 per share (the "Common
Stock"), as set forth on Annex A attached hereto. The options are subject to the
terms and conditions of the Stock Option Agreement attached hereto as Exhibit A.
The Board intends to review Executive's performance under this Agreement with a
view to the possible grant of additional stock options to Executive on an annual
basis to reward Executive for performance hereunder.
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                                      -4-


            F. Relocation Expenses

            As consideration for Executive's relocating his residence to the
East Coast from California, the Company agrees to reimburse Execute for:

            1.    reasonable storage costs up to six months for household items;

            2.    reasonable moving expenses from California, including three
                  cars, and transportation of one or two horses;

            3.    mortgage costs on Executive's California residence up to six
                  months from the Closing Date (not to exceed $6,000 per month)
                  until the residence is sold;

            4.    realtor fees and closing costs (including up to three points)
                  associated with the sale of the California residence and
                  purchase of a new residence on the East Coast;

            5.    costs of a temporary residence and car rental on the East
                  Coast for 60 days (not to exceed $200 per day); and

            6.    12 round trip first class airplane tickets between California
                  and the East Coast.

To the extent that the Company's payments under this Section IV.F are includible
in the Executive's taxable income, the Company shall increase such payments by
an additional amount calculated to ensure that the Executive's net proceeds,
after paying federal, state and local income taxes on such payments and such
additional amount, are equal to the Executive's expenses described in this
Section IV.F.

            G. General Benefits

            During the term of this Agreement, the Executive will be eligible to
receive such benefits as are generally provided to executive officers of the
Company as determined from time to time by the Board.

            The Executive will be entitled to normal sick leave during the term
of this Agreement, when the Executive is not Disabled, as that term is defined
in Section VI.A.
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                                       -5-


                                       V.

                                  RESTRICTIONS

            A. Non-Interference and Non-Solicitation

            1. During the Stated Term of Employment and for a period of two
years thereafter with respect to clause (i) below and for a period of one year
thereafter with respect to clauses (ii) and (iii) below, the Executive shall not
directly or indirectly:

            (i) encourage or solicit any officer or employee of the Company or
      any of its subsidiaries to leave the employ of any such entity;

            (ii) interfere with or otherwise disrupt in any material respect (A)
      the relationships between the Company and its subsidiaries, on the one
      hand, and any customer of the Company and its subsidiaries, on the other
      hand, or (B) the supply to the Company and its subsidiaries of any
      services by any supplier or agent who during the period of twenty-four
      (24) months immediately preceding the Executive's termination shall have
      supplied product or services to the Company or any of its subsidiaries,
      nor will the Executive interfere with the terms on which such supply or
      agency services during such period as aforesaid have been made or provided
      or cause any such supplier, agent or broker to discontinue its
      relationship with the Company and its subsidiaries; or

            (iii) solicit away from the Company or any of its subsidiaries the
      business of any person, firm or company who during the period of
      twenty-four (24) months preceding the date of the Executive's termination
      was a customer of the Company.

            2. As used in this Article V, "customer" shall include any third
party with whom the Company or any of its subsidiaries was during the said
period in substantive negotiation in respect of the sale of products by the
Company or any of its subsidiaries or to whom the Company or any of its
subsidiaries had (during the said period) made or been requested to make an
offer to sell products or provide services.

            3. While the restrictions set forth in this Article V are considered
by both parties to be reasonable in all the
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                                       -6-


circumstances it is recognized that restrictions of the nature in question may
fail for reasons unforeseen and accordingly it is hereby declared and agreed
that if any of such restrictions shall be adjudged to be void as going beyond
what is reasonable in all the circumstances for the protection of the interests
of the Company and its subsidiaries but would be valid if part of the wording
thereof were deleted and/or the periods (if any) thereof reduced and/or the area
dealt with thereby reduced in scope then said restrictions shall apply with such
modifications as may be necessary to make them valid and effective.

            4. The limitations on the Executive set forth in this Article V
shall also apply to any agent or other representative acting in his or her
capacity as an agent or representative of the Executive.

            5. Nothing contained in this Article V shall limit in any manner any
additional obligations to which the Executive may be bound pursuant to any other
agreement or any applicable law, rule or regulation.

            B. Proprietary Rights; Confidentiality

            1. The Executive agrees that the products of the Company and its
subsidiaries shall constitute the exclusive property of the Company and its
subsidiaries. The Executive hereby assigns to the Company and its subsidiaries
all of the Executive's right, title and interest, if any, pertaining to the
products developed or improved upon by the Executive for the businesses that are
being conducted or developed by the Company or any of its subsidiaries while
employed by the Company, including any patent, trademark, trade name, copyright
or other right that may pertain thereto. As used herein, "products" shall
include prospective products under development during the Executive's employment
with the Company.

            2. For the avoidance of doubt, all trademarks, trade names, service
marks, designs, utility models, copyrights, know-how and confidential
information, applications for registration of any of the foregoing and the right
to apply for them in any part of the world (whether any of the foregoing shall
be registered or unregistered) created or discovered or participated in by the
Executive during the course of his employment with the Company or under the
instructions of the Company for the businesses that are being conducted or
developed by the Company or any of its subsidiaries shall be the absolute
property of the Company.
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                                       -7-


            3. The Executive recognizes and acknowledges that, by reason of his
employment with the Company, he may have acquired, and will acquire, information
of a proprietary, confidential, or secret nature regarding the Company and its
subsidiaries and their respective businesses and operations, including but not
limited to, information concerning trade secrets, know-how, software, data
processing systems, inventions, designs, processes, formulae, notations,
improvements, financial information, business plans, prospects, referral
sources, lists of suppliers and customers and other information with respect to
the affairs, business, customers, agents or other business relationships of the
Company and its subsidiaries, (the "Confidential Information"). The Executive
shall hold in a fiduciary capacity for the benefit of the Company, all
Confidential Information relating to the Company and any of its subsidiaries and
their respective businesses, which shall have been obtained by the Executive
during his employment by the Company. The Executive agrees that he will not,
during, or for a period of three (3) years after, his employment with the
Company, disclose the Confidential Information, or any part thereof, to any
person, firm, corporation, association or other entity for any reason or purpose
whatsoever. Notwithstanding the foregoing, the provisions of this Section V.B.3
shall not apply to Confidential Information which (a) becomes or is generally
available to the public (other than by acts of the Executive or his
representatives); (b) becomes known to the Executive on a non-confidential basis
from a source other than the Company, provided that such source is not bound by
a confidentiality agreement with or other obligation of secrecy to the Company;
or (c) the Executive is required to disclose in a judicial, administrative or
governmental proceeding (any such proceeding, a "Legal Proceeding"). In the
event the Executive is required to disclose Confidential Information in a Legal
Proceeding, the Executive shall provide the Company with prompt notice of such
request so that the Company may timely seek an appropriate protective order or
waive compliance with this Section V.B.3.

            C. Remedies

            The Executive acknowledges that the Company will suffer irreparable
injury, not readily susceptible of valuation in monetary damages, if the
Executive breaches his obligations under this Article V. Accordingly, the
Executive agrees that notwithstanding Section VII.D, the Company will be
entitled, in addition to any other available remedies, to obtain injunctive
relief against any breach or prospective breach by the Executive of his
obligations under this Article V in any Federal or
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                                       -8-


state court sitting in the State of New Jersey, or, at the Company's election,
in any other jurisdiction in which the Executive maintains his principal
residence or his principal place of business. The Executive hereby submits to
the exclusive jurisdiction of all those courts, regardless of where the
Executive may be resident, for the purposes of any actions or proceedings
instituted by the Company to obtain that injunctive relief, and the Executive
agrees that process in any or all of those actions or proceedings may be served
by registered mail, addressed to the last address of the Executive known to the
Company, or in any other manner authorized by law.

                                       VI.

                            TERMINATION OF EMPLOYMENT

            A. Termination Due to Death or Disability

            The Company may terminate the Executive's employment hereunder due
to Disability. For purposes of this Agreement, "Disability" shall occur if the
Executive is unable (other than by reason of death), in the view of the Board,
to perform the duties of his occupation hereunder for at least 180 days during
any twelve month period. In the event of the Executive's death or a termination
of the Executive's employment by the Company due to Disability, the Executive,
his estate or his legal representative, as the case may be, shall be entitled
to:

            (a) any Base Salary accrued or earned but not yet paid as of the
      date of termination;

            (b) any bonus earned but not yet paid;

            (c) reimbursement for all out-of-pocket expenses that are
      reimbursable pursuant to Section IV.C and that are incurred, but not yet
      paid, prior to such death or Disability; and

            (d) any short- or long-term disability or death benefits provided
      under the Company's plans.

            B. Resignation by Executive or Termination by the Company for Cause

            (a) The Executive may resign, or the Company may terminate the
Executive's employment hereunder for Cause (as
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                                       -9-


defined below) as provided in this Section VI.B. If the Executive resigns or the
Company terminates the Executive's employment hereunder for Cause, the Executive
shall be entitled to (i) reimbursement for all out-of-pocket expenses that are
reimbursable pursuant to Section IV.D and that are incurred, but not yet paid,
prior to such termination of employment; and (ii) any Base Salary and bonuses
accrued or earned but not yet paid as of the date of termination. All stock
options held by Executive that have not yet vested as of the date of resignation
or termination shall be canceled. The Executive may exercise his vested stocks
options within six (6) months of the date of resignation or termination.

            (b) If the Executive is to be terminated for Cause as provided in
this Section VI.B, the Executive shall be given thirty (30) days written notice
of such termination. Such written notice shall specify the particular act or
acts, or failure to act, which is or are the basis for the termination of the
Executive's employment for Cause. The Executive shall be given the opportunity
during such thirty-day period to correct such act or failure to act. Upon
failure of the Executive, within such thirty-day period, to correct such act or
failure to act, or to provide the Board with a corrective action plan acceptable
to the Board, the Executive's employment by the Company shall automatically be
terminated under this Section VI.B for Cause.

            C. Termination Without Cause or Termination for Good Reason

            The Company may terminate the Executive's employment hereunder
without Cause (as defined below) and the Executive may terminate his employment
hereunder for Good Reason (as defined below). If the Company terminates the
Executive's employment hereunder without Cause, other than due to death or
Disability, or if the Executive terminates his employment for Good Reason, the
Executive shall be entitled to:

            (a) an amount equal to (x) 200% of the sum of (A) his then annual
      Base Salary plus (B) his bonus, if any, earned during the immediately
      preceding calendar year (assuming for the purposes of this paragraph that
      Executive's bonus for 1998 is deemed to be equal to Executive's annual
      Base Salary for 1998) for any termination occurring on or prior to
      December 31, 2001 or (y) 200% of his then annual Base Salary if such
      termination occurs subsequent to December 31, 2001, such payments to be
      paid out within
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                                      -10-


      thirty (30) days from the date of termination of employment under this
      Section VI.C;

            (b) any Base Salary accrued or earned but not yet paid as of the
      date of termination;

            (c) any annual bonus earned but not yet paid;

            (d) reimbursement for all out-of-pocket expenses that are
      reimbursable pursuant to Section IV.D and that are incurred, but not yet
      paid, prior to such termination of employment;

            (e) continuation of the Executive's and his dependent's health
      benefits, if any, at the level in effect on the date of termination
      through the earlier to occur of (i) twenty-four (24) months from such
      termination of employment or (ii) the date Executive commences employment
      with another entity; and

            (f) immediate vesting of Executive's stock options; Executive may
      exercise such options within twelve (12) months of the date of termination
      of employment.

            If the Executive intends to terminate his employment for Good
Reason, the Executive shall give written notice to the Company which notice
shall specify the particular act or acts, or failure to act, which is or are the
purported basis for the termination of his employment for Good Reason. The
Company shall be given the opportunity for a period of forty-five days after its
receipt of such notice to correct such act or acts or failure to act. Upon
failure of the Company, within such forty-five day period, to correct such act
or failure to act, the Executive's employment by the Company shall automatically
be terminated under this Section VI.C for Good Reason.

            For purposes of this Agreement, "Cause" means

            (i) Unauthorized use or disclosure of the confidential information
      or trade secrets of the Company in violation of Article V;

            (ii) Conviction of, or a plea of "guilty" or "no contest" to, a
      felony under the laws of the United States or any state thereof;

            (iii) Embezzlement or misappropriation off the assets of the
      Company; or
<PAGE>

                                      -11-


            (iv) Misconduct or gross negligence in the performance of duties
      assigned to the Executive under this Agreement.

            For purposes of this Agreement, "Good Reason" means and shall be
deemed to exist if, without the prior express written consent of the Executive,
(a) the Executive is assigned any duties or responsibilities inconsistent in any
material respect with the scope of the duties or responsibilities associated
with the Executive's titles or positions, as set forth and described in Article
III of this Agreement; (b) the Executive suffers a reduction in the duties,
responsibilities or authority associated with his titles and positions, as set
forth and described in Article III of this Agreement; (c) the Executive is not
appointed to, or is removed from the offices provided for in Article III of this
Agreement or (d) the Executive's compensation is reduced in violation of Article
IV hereof.

            D. Termination Upon Change of Control

            (i) In addition to the Executive's rights under Article VI(C) of
this Agreement in the event of a Change in Control (as defined below) of the
Company and the termination of the Executive's employment by Executive under
this paragraph, the Executive shall be entitled to the severance compensation
set forth in clauses (a)-(f) of Article VI(C) of this Agreement. The following
shall constitute termination under this paragraph:

      The Executive terminates his employment under this Agreement pursuant to a
      written notice to that effect delivered to the Board within twelve (12)
      months after the occurrence of the Change in Control.

            (ii) For purposes of this paragraph, the term "Change in Control"
shall mean the following occurring after the date of this Agreement:

      1.    Any person or group (as such terms are used in Section 13(d) and
            14(d) of the Securities Exchange Act of 1934, as amended ("Exchange
            Act")), directly or indirectly, becomes the "beneficial owner" (as
            defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly
            or indirectly, of 50% or more of the total number of shares of
            Common Stock then issued and outstanding; or
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                                      -12-


      2.    Any "person" (as such term is used in Sections 13(d) and 14(d) of
            the Exchange Act) is or becomes the beneficial owner (as defined in
            clause (g)(ii)(1) above, except that for purposes of this clause (2)
            such person shall be deemed to have "beneficial ownership" of all
            shares that any such person has the right to acquire, whether such
            right is exercisable immediately or only after the passage of time),
            directly or indirectly, of more than 50% of the total voting power
            represented by all the Common Stock then outstanding; or

      3.    During any period of two consecutive years, individuals who at the
            beginning of such period constituted the Board of the Company
            (together with any new directors whose election by such Board or
            whose nomination for election by the shareholders of the Company was
            approved by a vote of 66 2/3% of the directors of the Company then
            still in office who were either directors at the beginning of such
            period or whose election or nomination for election was previously
            so approved) cease for any reason to constitute a majority of the
            Board then in office; or

      4.    The merger or consolidation of the Company with or into another
            person or the merger or consolidation of another person with or into
            the Company, or the sale of all or substantially all the assets of
            the Company to another person, and, in the case of any such merger
            or consolidation, the securities of the Company that are outstanding
            immediately prior to such transaction and which represent 100% of
            the aggregate voting power of the Common Stock are changed into or
            exchanged for cash, securities or property); or

      5.    The consummation of a merger or consolidation of the Company with or
            into another entity or any other corporate reorganization, if more
            than 50% of the combined voting power of the continuing or surviving
            entity's securities outstanding immediately after such merger,
            consolidation or other reorganization is owned by persons who were
            not stockholders of the Company immediately prior to such merger,
            consolidation or other reorganization.

            (iii) In the event that it is determined that any payment or
distribution of any type to or for the benefit of the Executive made by the
Company, by any of its affiliates, by any
<PAGE>
                                      -13-


person who acquires ownership or effective control of the Company or ownership
of a substantial portion of the Company's assets (within the meaning of section
280G of the Internal Revenue Code of 1986, as amended (the "Code"), and the
regulations thereunder) or by any affiliate of such person, whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise (the "Total Payments"), would be subject to the excise tax imposed
by section 4999 of the Code or any interest or penalties with respect to such
excise tax (such excise tax, together with any such interest or penalties, are
collectively referred to as the "Excise Tax"), then the Executive shall be
entitled to receive an additional payment (a "Gross-Up Payment") in an amount
that shall fund the payment by the Executive of any Excise Tax on the Total
Payments as well as all income taxes imposed on the Gross-Up Payment, any Excise
Tax imposed on the Gross-Up Payment and any interest or penalties imposed with
respect to taxes on the Gross-Up Payment or any Excise Tax.

            (iv) All mathematical determinations and all determinations of
whether any of the Total Payments are "parachute payments" (within the meaning
of section 280G of the Code) that are required to be made under this Section
VI.D, including all determinations of whether a Gross-Up Payment is required, of
the amount of such Gross-Up Payment and of amounts relevant to the last sentence
of this Section VI.D, shall be made by the independent accounting firm of Ernst
& Young LLP (the "Accounting Firm"), which shall provide its determination (the
"Determination"), together with detailed supporting calculations regarding the
amount of any Gross-Up Payment and any other relevant matters, both to the
Company and to the Executive within seven business days of the Executive's
termination date, if applicable, or such earlier time as is requested by the
Company or by the Executive (if the Executive reasonably believes that any of
the Total Payments may be subject to the Excise Tax). If the Accounting Firm
determines that no Excise Tax is payable by the Executive, it shall furnish the
Executive with a written statement that such Accounting Firm has concluded that
no Excise Tax is payable (including the reasons therefor) and that the Executive
has substantial authority not to report any Excise Tax on the Executive's
federal income tax return. If a Gross-Up Payment is determined to be payable, it
shall be paid to the Executive within five business days after the Determination
is delivered to the Company or the Executive. Any determination by the
Accounting Firm shall be binding upon the Company and the Executive, absent
manifest error.
<PAGE>
                                      -14-


            E. Other

            1. Upon any termination of the Executive's employment pursuant to
this Article VI, the Executive (or, if applicable, his estate) shall immediately
deliver to the Company all documents, correspondence, memoranda, notes, records,
reports, plans, designs, studies and any other papers or items made or received
by the Executive in connection with his employment with the Company (whether or
not constituting Confidential Information) (including copies of the foregoing),
and all computer equipment, disks and software, keys, credit cards, books and
other property of or relating to the Company or any of its subsidiaries
(including without limitation all documents prepared by the Executive or which
may have come into his possession in the course of the Executive's employment
hereunder including copies thereof) then in the Executive's (or if applicable,
his estate's) possession.

            2. After any termination of the Executive's employment hereunder,
the Executive shall not at any time thereafter represent himself as being in any
way connected with or interested in the business of or employed by the Company
or any of its subsidiaries, or use for trade or other purposes the name of the
Company or of its subsidiaries or any name capable of confusion therewith.

            3. Upon the termination of the Executive's employment for whatever
reason the Executive shall immediately be deemed to have resigned from all
directorships, if any, and offices the Executive holds in the Company or any of
its subsidiaries and any directorships held at the request of or on behalf of
the Company or any of its subsidiaries.

                                      VII.

                            MISCELLANEOUS PROVISIONS

            A. Entire Agreement; Indemnification

            1. Except as provided in paragraph 2 below, this Agreement contains
all the understandings between the parties hereto and supersedes all prior
discussions and agreements between the Company, on the one hand, and the
Executive, on the other hand, with respect to the subject matter hereof.
<PAGE>
                                      -15-


            2. On or before the Closing Date, the Executive and the Company
shall enter into an indemnification agreement providing for the indemnification
of the Executive by the Company to the maximum extent authorized by Section 145
of the Delaware General Corporation Law, as amended.

            B. Modification; Waiver

            This Agreement may not be modified, amended or supplemented except
in writing and signed by the party against whom any modification, amendment or
supplement is sought. No term or condition of this Agreement may be, or will be
deemed to have been, waived except in writing by the party charged with the
waiver. A waiver shall operate only as to the specific term or condition waived
and will not constitute a waiver for the future or act on anything other than
that which is specifically waived.

            C. Severability

            If any one or more of the provisions contained in this Agreement
will be held to be invalid, illegal or unenforceable in any respect, such
invalidity, illegality or unenforceability will not affect any other provision
hereof.

            D. Legal Counsel

            The Executive and the Company acknowledge that this is a legally
binding contract and acknowledge and agree that they have had the opportunity to
consult with legal counsel of their choice in connection with the drafting,
negotiation and execution of this Agreement. The Company agrees to reimburse the
Executive for the reasonable fees of his legal counsel incurred in reviewing
this Agreement not to exceed $10,000.

            E. Rights and Remedies Cumulative

            No right or remedy herein conferred upon the Company is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to
the extent permitted by law, be cumulative and in addition to every other right
and remedy given hereunder or now or hereafter existing at law or in equity or
otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or implementation of any
other appropriate right or remedy.
<PAGE>
                                      -16-


            F. Assignment

            This Agreement shall inure to the benefit of, and be enforceable by,
the Company and its successors and assigns. This Agreement is personal to the
Executive and may not be assigned by him.

            G. Governing Law

            The validity and effects of this Agreement shall be governed by and
construed and enforced in accordance with the laws of the State of New Jersey
without giving effect to its principles of conflicts of laws.

            H. Survivorship

            The respective rights and obligations of the parties hereunder that
specifically provide for such survival shall survive any termination of this
Agreement and the Executive's Stated Term of Employment hereunder for any
reason to the extent necessary to the intended provision of such rights and the
intended performance of such obligations.

            I. Notice

            Any notice or other communications required or permitted to be given
pursuant to this Agreement shall be in writing and shall be sent by registered
or certified mail, return receipt requested, postage prepaid, by hand delivery
(including courier services), or by telex or telecopier, as follows:

            If to the Company:

            ANADIGICS, INC.
            33 Technology Drive
            Warren, NJ 07059
            Telecopy: 908-668-5068
            Attention: Board of Directors

            with copies to:

            Stephen A. Greene, Esq.
            Cahill Gordon & Reindel
            80 Pine Street
            New York, New York 10005
            Telecopy: 2l2-269-5420
<PAGE>
                                      -17-


            If to the Executive:

            Mr. Bamdad (Bami) Bastani
            4254 Quail Run Drive
            Danville, CA 94506
            Telecopy: 925-736-5770

            with a copy to:

            Daniel Niehans, Esq.
            Gunderson Dettmer
            155 Constitution Drive
            Menlo Park, CA 94025
            Telecopy: 650-321-2800

            Any notice or communication shall be deemed given or made (i) when
delivered by hand (or courier service), (ii) when mailed, five business days
after being deposited in the mail, postage prepaid, sent by certified mail,
return receipt requested, (iii) when telexed, answer-back received and (iv) when
telecopied, receipt acknowledged.
<PAGE>
                                      -18-


            IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed by its duly authorized officer and the Executive has hereunto set his
hand as of the day and year first above written.

                                        ANADIGICS, INC.


                                        By: /s/ Ronald Rosenzweig
                                            ------------------------------------
                                            Name:
                                            Title:


                                        /s/ Bamdad Bastani
                                        ----------------------------------------
                                        Bamdad (Bami) Bastani
<PAGE>

                                                                       Exhibit A

                             Stock Option Agreement
<PAGE>

                                                                         Annex A

                                     Options

            As of the Closing Date Executive shall be granted non-qualified
options for the purchase of 450,000 shares of Common Stock of the Company at an
exercise price equal to the last reported sales price of the Company's Common
Stock on the NASDAQ National Market on the business day immediately prior to the
Closing Date. The Options shall have a term of 10 years and shall become
exercisable over a period of three years from the Closing Date: 150,000 shares
on the first anniversary of the Closing Date; 150,000 shares on the second
anniversary of the Closing Date; and 150,000 shares on the third anniversary of
the Closing Date.
<PAGE>

                        Amendment to Employment Agreement

                                For Bami Bastani

Section II F.3. Relocation Expenses

3. Mortgage or residence costs (not to exceed $6,000 per month) on the
Executive's California residence shall be covered until the end of July 1999.


/s/ Bami Bastani                                /s/ Lewis Solomon
------------------------------------            --------------------------------
Bami Bastani                                    Lewis Solomon
Date: 3/11/99                                   Date: 2/10/99