Document:

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                                                                   EXHIBIT 10.50

                      [BTU INTERNATIONAL, INC. LETTERHEAD]

                                February 7, 2003

BY HAND DELIVERY

Mr. Paul van der Wansem
c/o BTU International, Inc.
23 Esquire Road
North Billerica, Massachusetts 01862

Dear Paul:

         As we discussed, we have mutually agreed that it is appropriate for you
to transition out of your employment relationship with BTU International, Inc.
(the "Company"). As a result, your employment with the Company will end on June
30, 2003 (the "Separation Date"). In light of your knowledge and experience,
however, and your potential to make significant contributions to the Company,
the Company wishes to retain your services as a consultant and as Chairman of
the Board of Directors (the "Board") for a period of time following the
Separation Date. The purpose of this letter is to confirm the agreement between
you and the Company:

         1. TRANSITION PERIOD. Provided that you continue to meet your
obligations under this Agreement and under the Company's Corporate Code of
Conduct (the "Code of Conduct"), the Company will continue your employment from
the date of this letter through the Separation Date (the "Transition Period").
During the Transition Period, the Company (a) will continue to pay you your base
salary, at your current base rate of pay; (b) will continue your participation
in all benefit plans in which you were enrolled as of December 31, 2002; and (c)
will continue to provide you with all other benefits you were receiving as of
December 31, 2002.

         2. PAYMENTS. The Company has provided you the following:

                  (a) UNRESTRICTED STOCK GRANT. On December 17, 2002, the
Compensation Committee of the Board granted you seventy five thousand (75,000)
shares of unrestricted common stock of the Company pursuant to the 1993 Equity
Incentive Plan (the "Equity Incentive Plan").

                  (b) STOCK OPTIONS. On December 17, 2002, the Compensation
Committee of the Board granted you an option to purchase fifty thousand (50,000)
shares of unrestricted common stock of the Company at a price per share of $1.86
(the "December 17, 2002 Options"). The December 17, 2002 Options are not
intended to qualify as incentive stock options under Section 422 of the Internal
Revenue Code of 1986, as amended. The December 17, 2002 Options shall vest and
become exercisable as set forth in the Equity Incentive Plan and the applicable
option certificate. The December 17, 2002 Options shall be subject to the Equity
Incentive Plan.

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                  (c) BONUS PAYMENT. The Company provided you with one lump sum
payment in the amount of One Hundred Thousand Dollars ($100,000).

         3. CONSULTING AND CHAIRMANSHIP PERIODS. Provided that you continue to
meet your obligations under this Agreement and under the Code of Conduct, (i)
the Company hereby engages your services as a consultant to the Company for the
period commencing as of the Separation Date and terminating on June 30, 2007,
unless earlier terminated as provided in Paragraph 4 hereof (the "Consulting
Period"), and (ii) the Company will nominate you to serve as a Director of the
Company and, if you are elected by the Company's shareholders to serve as a
Director of the Company, you will serve as Chairman of the Board for the period
terminating June 30, 2007, unless earlier terminated as provided in Paragraph 4
hereof (the "Chairmanship Period"); provided that if the Chairmanship Period
terminates prior to June 30, 2007 pursuant to Paragraphs 4(b), 4(c), 4(d) or
4(f) hereof, the Company will continue to nominate you to serve as a Director of
the Company at each applicable shareholders' meeting until June 30, 2007. If the
Company chooses to nominate you to serve as a Director of the Company after June
30, 2007, and if you are so elected by the Company's shareholders, you will
serve as a Director of the Company for the term to which you were elected, and
you will receive compensation equal to the stipend provided annually to other
members of the Board.

                  (a) FEES. As compensation for your services as Chairman of the
Board during the Chairmanship Period, the Company shall pay you a fee at the
rate of One Hundred Thousand Dollars ($100,000) per year from July 1, 2003
through the remainder of the Chairmanship Period, payable bi-weekly (the
"Chairman Fee"). As compensation for your making yourself available to provide
consulting services during the Consulting Period, regardless of whether the
Company chooses to utilize your services, the Company shall pay you a consulting
fee of Two Hundred Four Thousand Dollars ($204,000) per year during the
Consulting Period, payable bi-weekly (the "Consulting Fee"). Because you will be
an independent contractor and not an employee after the Separation Date, the
Consulting Fee and the Chairman Fee are not subject to withholding for Social
Security, unemployment, Medicare, federal, state or local income or other taxes,
and all taxes and other legally required payments shall be your sole
responsibility.

                  (b) SERVICES. During the Chairmanship Period, you shall devote
as much business time as is necessary to discharge your duties and
responsibilities as Chairman. In addition, during the Consulting Period, you
shall make yourself available for up to six hundred (600) hours per contract
year (July 1 through June 30) to provide such advice and consulting services,
reasonably related to your skills and experience and consistent with your former
duties as Chief Executive Officer, that the Company may, through its Chief
Executive Officer or Board, from time to time request, including but not limited
to advice relating to transition issues and special projects. You agree to
advise the Company of any periods of your unavailability due to vacations or
other reasonable absences, and the Company agrees to coordinate with you any
periods during which your availability will be required, so as to continue to
meet your needs and those of the Company throughout the Consulting Period and
Chairmanship Period.

                                      -2-
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                  (c) OTHER TERMS. The following terms and conditions shall
apply to your relationship with the Company:

                           (i) After the Separation Date, you will not
participate in, or receive benefits under, any bonus or other compensation plan,
any stock option plan, any employee benefit plan or other employee plan, program
or arrangement of the Company, except as expressly provided in this Agreement or
as expressly provided by the Board; nor will you be eligible to earn paid time
off. You may elect to continue your participation and that of your eligible
dependents in the Company's group health plan or other eligible plans under the
federal law known as COBRA by paying the full premium cost, with no additional
administrative fee.

                           (ii) The Company will reimburse you, in accordance
with Company policies regarding reimbursement of business expenses as amended
from time to time, for all business expenses which you necessarily and
reasonably incur in performing your duties hereunder.

                           (iii) You and the Company will execute, no later than
the date you sign this Agreement, a Collateral Assignment Agreement in the form
attached hereto as EXHIBIT 1 (the "Collateral Assignment Agreement") regarding
the split-dollar life insurance policy issued by New York Life Insurance
Company, identified as Policy Number 40-572-487 (the "Split Dollar Policy").
Further, you agree to execute promptly any documents requested by New York Life
Insurance Company in connection with the Collateral Assignment Agreement.

                                (A) The Collateral Assignment Agreement is
expressly intended to supersede any collateral assignment agreements or other
agreements regarding the Company's rights with respect to Policy Number
40-572-487 that have been executed previously by you, by the Company, or by you
and the Company. Under the Collateral Assignment Agreement, which is expressly
incorporated herein, you assign to the Company an amount of the cash value of
the Split Dollar Policy equal to the amount of the Company contribution to
payment of the premiums of the Split Dollar Policy (the "Company Interest") and
you retain all ownership of the remaining cash value of the Split Dollar Policy
(the "Insured Interest"). The premiums on the Split Dollar Policy will continue
to be paid using the dividends on the Split Dollar Policy, provided that you
will be responsible for payment of the premiums in the event that the dividends
are insufficient to pay the premiums. The Company Interest and the Insured
Interest will continue to grow pro rata (based on their respective percentages
of the cash value of the Split Dollar Policy) as additional premiums are paid on
the Split Dollar Policy, provided that if, in the event that dividends on the
Split Dollar Policy are insufficient to pay the premiums, you pay the balance of
any premium due yourself, and New York Life Insurance Company demonstrates that
any increase in the cash value of the Split Dollar Policy is solely attributable
to a payment made by you to cover the difference between the premium due and the
dividend on the Split Dollar Policy, such increase in the cash value shall be
apportioned solely to the Insured Interest.

                                (B) In the event of your death at any time prior
to your buy-out of the Company Interest as described below, the Company will
receive a benefit equal to the sum of the Company Interest as of January 1, 2003
(Two Hundred Thirty Two Thousand Dollars

                                      -3-
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($232,000)) and any amount of cash build-up that accumulated in the Company
Interest subsequent to January 1, 2003 as a result of the pro rata growth
formula set forth in Paragraph 3(c)(iii)(A) above. You will continue to maintain
the Split Dollar Policy at least until such time as you buy out the Company
Interest. To buy out the Company Interest, you must pay to the Company an amount
equal to the sum of the Company Interest as of January 1, 2003 (Two Hundred
Thirty Two Thousand Dollars ($232,000)) and any amount of cash build-up that
accumulated in the Company Interest subsequent to January 1, 2003 as a result of
the pro rata growth formula set forth in Paragraph 3(c)(iii)(A) above,
discounted by a rate of 3% over a period equal to the number of remaining years
in your life expectancy at the time you buy out the Company Interest, as set
forth in trade publications for the life insurance industry.

                                (C) The Company agrees that it will not borrow
against the Company Interest and/or any amount of cash build-up that accumulates
in the Company Interest subsequent to January 1, 2003 as a result of the pro
rata growth formula set forth in Paragraph 3(c)(iii)(A) above, at any time
following the effective date of this Agreement.

                           (iv) All options to purchase the common stock of the
Company that have been granted to you, whether pursuant to Paragraph 2(b) hereof
or otherwise (the "Options"), will continue to vest and become exercisable in
accordance with the vesting schedules set forth in the Equity Incentive Plan and
the applicable option certificates, provided this is consistent with applicable
law.

                                (A) Notwithstanding any provision to the
contrary in the Equity Incentive Plan or the applicable option certificates: (i)
upon termination of the Consulting Period or Chairmanship Period pursuant to
Paragraphs 4(d) or 4(e) hereof, all of the outstanding Options will immediately
vest and become exercisable, and will remain exercisable for one year from the
date of termination of the Consulting Period or the Chairmanship Period, as
appropriate; (ii) upon termination pursuant to Paragraphs 4(b), 4(f), 4(g) or
4(h) hereof, all of the outstanding Options in which you are vested on the date
of termination will remain exercisable for one year from the date of
termination, and all of the outstanding Options in which you are not vested on
the date of termination will continue to vest in accordance with the Equity
Incentive Plan and applicable option certificates, and will be exercisable for
ninety (90) days from the respective date of vesting; and (iii) in the event of
termination pursuant to Paragraphs 4(a) or 4(c) hereof, you shall have ninety
(90) days to exercise any of the Options in which you were vested as of the date
of termination, and all unvested Options shall be forfeited.

                                (B) In the event of a consolidation or merger in
which the Company is not the surviving entity, the Company will, if so requested
by you, exercise reasonable efforts to obtain for you a replacement stock option
award from the surviving entity, equivalent in value to the value of the
outstanding Options on the date the consolidation or merger becomes effective.
If the Company is unable to secure a replacement stock option award for you, all
of the outstanding Options will vest and become exercisable immediately prior to
the consolidation or merger.

                                      -4-
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Except as otherwise expressly provided in this Paragraph 3(c)(iv), the terms and
conditions of the Options shall remain unchanged and shall be governed by the
terms of the Equity Incentive Plan and any other applicable stock option grant
certificate.

                           (v) In connection with your services to the Company
under this Agreement: (A) through June 30, 2004, the Company will continue to
provide you with your present office at the Company and will continue to allow
you to utilize the services of the individual currently employed as your
executive assistant, or a replacement for your current assistant; and (B) after
June 30, 2004, the Company will provide you with appropriate office space and
secretarial support at the Company's Billerica, Massachusetts location or
elsewhere, as agreed to by you and the Company.

                           (vi) The Company will continue as the beneficiary and
will continue to pay the premiums due on the key man term life insurance policy
that is maintained by First Colony Life Insurance Company, identified as Policy
Number 2692639 (the "Key Man Policy"), if any such premiums are due, through
June 30, 2003. On July 1, 2003, the Company will discontinue payment of the
premiums, at which time you shall have the option of assuming ownership, and
becoming the beneficiary, of the Key Man Policy and continuing payment of the
premiums yourself.

         4. TERMINATION OF THE TRANSITION PERIOD, CONSULTING PERIOD AND
CHAIRMANSHIP PERIOD. Notwithstanding the provisions of Paragraphs 1 and 3
hereof, the Transition Period, Consulting Period and/or Chairmanship Period will
terminate under the following circumstances:

                  (a) BY THE COMPANY FOR CAUSE. The Company may terminate the
Transition Period, Consulting Period and/or the Chairmanship Period for Cause at
any time upon notice to you setting forth in reasonable detail such Cause. The
following, as determined by the Board in its reasonable judgment, shall
constitute Cause:

                           (i) material breach by you of any provision of this
Agreement, which breach, if susceptible to cure, remains uncured for thirty (30)
days after written notice from the Company specifying the nature of such breach;

                           (ii) fraud, embezzlement or other material dishonesty
with respect to the Company or any of its Affiliates; or

                           (iii) conviction of, or plea of nolo contendre or
guilty to, a felony or other crime involving moral turpitude.

Upon the giving of notice of termination for Cause, the Company shall have no
further obligation to you, other than for any base salary, Chairman Fees or
Consulting Fees that were earned but not paid through the date of notice, or as
expressly set forth in this Agreement.

                  (b) BY THE COMPANY OTHER THAN FOR CAUSE. The Company may
terminate the Consulting Period and/or the Chairmanship Period other than for
Cause under the following circumstances:

                                      -5-
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                           (i) Beginning on July 1, 2004, the Board may elect to
terminate the Consulting Period at any time upon three months' prior written
notice. In the event of such termination, in addition to any Consulting Fees
that were earned but unpaid prior to the termination date, the Company shall pay
you one lump sum in an amount representing the remainder of the Consulting Fees
that would have been due had the Consulting Period continued through June 30,
2007.

                           (ii) Beginning on July 1, 2005, the Board may elect
to terminate the Chairmanship Period at any time upon three months' prior
written notice, provided that the Board may not terminate the Chairmanship
Period if it has not simultaneously or previously terminated the Consulting
Period. In the event of such termination, in addition to any Chairman Fees that
were earned but unpaid prior to the termination date, the Company shall pay you
one lump sum in an amount representing the remainder of the Chairman Fees that
would have been due had the Chairmanship Period continued through June 30, 2007.
If the Board elects to terminate the Chairmanship Period pursuant to this
paragraph 4(b)(ii), you will have the option of remaining on the Board as a
Member with the title of Chairman Emeritus until June 30, 2007, without any
additional compensation.

                  (c) BY YOU OTHER THAN FOR GOOD REASON. You may terminate the
Consulting Period and/or the Chairmanship Period under the following
circumstances:

                           (i) Beginning on July 1, 2004, you may elect to
terminate the Consulting Period at any time upon three months' prior written
notice. In the event of such termination, in addition to any Consulting Fees
that were earned but unpaid prior to the termination date, the Company shall pay
you one lump sum in an amount representing the remainder of the Consulting Fees
that would have been due had the Consulting Period continued through June 30,
2007, less a discount equal to three percent (3%) per year for each year (and at
the same rate for any partial year) of such remaining payments (the "Consulting
Lump Sum Payment"); provided that if, at the time you provide notice of
termination under this Paragraph 4(c)(i), the Company is in a state of financial
duress as determined by the Board, in good faith after consultation with you,
the Board may choose to delay the Consulting Lump Sum Payment, in which case you
will have the option of either (A) receiving bi-weekly payments of the
Consulting Fee, as described in Paragraph 3(a) hereof, until such time as the
Company is no longer in a state of financial duress, as determined by the Board,
in good faith after consultation with you, at which time the Company will pay
you the remaining balance due on the Consulting Lump Sum Payment; or (B)
receiving the entire value of the Consulting Lump Sum Payment, or a portion of
such value to be designated by you, in shares of the Company's unrestricted
common stock, the number of shares to be calculated using the fair market value
of such shares on the date you choose to exercise the option set forth in this
Paragraph 4(c)(i)(B), such shares to be transferred to you within ten (10)
business days of the date you make the election. If you elect the option
described in Paragraph 4(c)(i)(B) and elect to receive any portion less than
100% of the Consulting Lump Sum Payment in shares of unrestricted common stock,
the remaining balance of the Consulting Lump Sum Payment will be paid to you in
bi-weekly payments as described in Paragraph 3(a) hereof, until such time as you
have received the entire value of the Consulting Lump Sum Payment through the
combination of unrestricted common stock and bi-

                                      -6-
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weekly payments. If the Board notifies you that it has elected to delay the
Consulting Lump Sum Payment due to financial duress, you must inform the Board
in writing whether you choose to proceed under Paragraph 4(c)(i)(A) or Paragraph
4(c)(i)(B) within twenty-one (21) business days of such notification. If you do
not inform the Board of your choice in a timely manner, you will receive
bi-weekly payments in accordance with Paragraph 4(c)(i)(A).

                           (ii) Beginning on July 1, 2005, you may elect to
terminate the Chairmanship Period at any time upon three months' prior written
notice. If you elect to terminate the Chairmanship Period pursuant to this
Paragraph 4(c)(ii), you will have the option of remaining on the Board as a
Member with the title of Chairman Emeritus until June 30, 2007, without any
additional compensation. In the event of such termination pursuant to this
Paragraph 4(c)(ii), in addition to any Chairman Fees that were earned but unpaid
prior to the termination date, the Company shall pay you one lump sum in an
amount representing the remainder of the Chairman Fees that would have been due
had the Chairmanship Period continued through June 30, 2007, less a discount
equal to three percent (3%) per year for each year (and at the same rate for any
partial year) of such remaining payments (the "Chairmanship Lump Sum Payment").

                  (d) BY YOU FOR GOOD REASON. You may terminate the Transition
Period (at any time before June 30, 2003), the Consulting Period (at any time
before July 1, 2004) and/or the Chairmanship Period (at any time before July 1,
2005), for Good Reason upon notice to the Company setting forth in reasonable
detail such Good Reason. The following shall constitute Good Reason to terminate
the Transition Period, the Chairmanship Period and/or the Consulting Period: (i)
a material failure of the Company to provide you with compensation and benefits
in accordance with the terms this Agreement which is not cured within ten (10)
days after the Company receives written notice from you describing such material
failure; or (ii) a material breach of this Agreement by the Company which breach
causes harm to you. In the event of termination of the Transition Period,
Consulting Period and/or Chairmanship Period pursuant to this Paragraph 4(d), in
addition to any amounts earned but unpaid prior to the termination date, the
Company shall pay you a lump sum in the amount representing the remainder of the
Consulting Fees and/or Chairman Fees, as applicable, through June 30, 2007.

                  (e) UPON A CHANGE OF CONTROL. If a Change of Control, as
defined in Paragraph 7(b) hereof, occurs during the Chairmanship Period or the
Consulting Period, then, in lieu of any other payments due you under this
Agreement, the Company shall provide you, immediately prior to the Change of
Control, the following benefits: (i) the Company shall pay you one lump sum in
an amount representing the remainder of the Consulting Fees and Chairman Fees
through June 30, 2007; and (ii) all of the outstanding Options described in
Paragraph 3(c)(iv) hereof shall vest and become exercisable.

                  (f) UPON FAILURE TO BE ELECTED TO THE BOARD. In the event
that, at any time before June 30, 2007, the shareholders of the Company fail to
elect you to the Board, the Chairmanship Period and the Consulting Period shall
immediately terminate. In the event of such termination, in addition to any base
salary, Consulting Fees and Chairman Fees that were earned but unpaid prior to
the termination date, the Company shall pay you one lump sum in an

                                      -7-
<PAGE>

amount representing the remainder of the Consulting Fees and Chairman Fees
through June 30, 2007.

                  (g) DEATH. In the event of your death prior to June 30, 2003:
(A) the Chairmanship Period and the Transition Period shall immediately
terminate, and (B) in addition to any base salary that was earned but unpaid
prior to the termination date, the Company shall pay to your designated
beneficiary or, if no beneficiary has been designated, to your estate, one lump
sum in an amount representing the remainder of the Consulting Fees and Chairman
Fees through June 30, 2007, such lump sum to be funded through the Key Man
Policy referenced in Paragraph 3(c)(vi) above. In the event of your death
subsequent to June 30, 2003, the Chairmanship Period and the Consulting Period
shall immediately terminate, and the Company shall pay to your designated
beneficiary or, if no beneficiary has been designated, to your estate, any
Consulting Fees and Chairman Fees that were earned but unpaid prior to the
termination date.

                  (h) DISABILITY. The Company may terminate the Consulting
Period upon notice to you, in the event that you become disabled through any
illness, injury, accident or condition of either a physical or psychological
nature and, as a result, are unable to perform substantially all of your duties
and responsibilities hereunder for one hundred twenty (120) consecutive calendar
days during any period of three hundred and sixty-five (365) consecutive
calendar days. During any period of your disability, you shall continue to
receive the Consulting Fees until termination of the Consulting Period pursuant
to this Paragraph 4(h). In the event of such termination, in addition to any
Consulting Fees that were earned but unpaid prior to the termination date, the
Company shall continue to pay you sixty percent (60%) of the Consulting Fees
through June 30, 2007.

         5. TAXATION. Except as otherwise provided herein, all payments by the
Company under this Agreement shall be reduced by all taxes and other amounts
which the Company is legally required to withhold and all other deductions
authorized by you.

         6. ACKNOWLEDGMENTS. You agree that, except as expressly provided in
this Agreement, no further compensation is owed to you. Without limiting the
generality of the preceding sentence, you acknowledge that you will not be
eligible to receive any bonus compensation other than that expressly provided
under Paragraph 1(c) above. You will not continue to earn vacation or other paid
time off after the Separation Date and, other than any right you may have to
continue participation in the Company's group health and benefit plans at your
cost under the federal law known as COBRA following the Separation Date, your
participation in all Company employee benefit plans and programs will end as of
the Separation Date, in accordance with the terms of those plans and programs.
You will not receive any stock options, restricted stock, unrestricted stock, or
other equity of the Company, whether under an equity incentive plan or
otherwise, except as expressly provided in this Agreement or expressly provided
by the Board of Directors.

                                      -8-
<PAGE>

         7. DEFINITIONS. As used in this Agreement,

                  (a) "Affiliates" means all persons and entities directly or
indirectly controlling, controlled by or under common control with the Company,
where control may be by equity interest or otherwise, but excluding the present
or future management of the Company.

                  (b) "Change of Control" means the occurrence of any of the
following: (i) any Person or "group" (within the meaning of Section 13(d)(3) or
14(d)(2), as amended, of the Securities Exchange Act of 1934 (the "Exchange
Act")), other than the Company or any of its Affiliates or any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
one of its Affiliates, becomes a beneficial owner (within the meaning of Rule
13d-3, as amended, as promulgated under the Securities Exchange Act of 1934),
directly or indirectly, in one or a series of transactions, of securities
representing more than fifty percent (50%) of the combined voting power of the
then outstanding securities of the Company; (ii) there occurs a closing of a
sale or other disposition by the Company of all or substantially all of the
assets of the Company other than to one of more of the Company's Affiliates or
any trustee or other fiduciary holding securities under an employee benefit plan
of the Company or any of its Affiliates; or (iii) a merger or consolidation in
which the Company is not the surviving corporation.

         8. MISCELLANEOUS PROVISIONS. This letter and the Collateral Assignment
Agreement attached as EXHIBIT 1 contain the entire agreement between you and the
Company and replace all prior and contemporaneous agreements, communications and
understandings, whether written or oral, with respect to your employment and its
termination and all related matters, excluding only the Code of Conduct, the
Equity Incentive Plan, and the stock option certificates applicable to the
Options, which shall remain in full force and effect in accordance with their
terms. This Agreement may not be modified or amended, and no breach shall be
waived, unless agreed in writing, signed by you and an expressly authorized
representative of the Company. This Agreement may not be assigned without the
written consent of both parties. This Agreement shall be binding upon, and shall
inure to the benefit of, the parties and their respective successors, heirs,
executors, and permitted assigns. Provisions of this Agreement shall survive
termination of this Agreement if so provided in this Agreement or if necessary
for the enforcement of other surviving provisions. This Agreement may be
executed in two or more counterparts, each of which shall be an original and all
of which together shall constitute one and the same instrument. This is a
Massachusetts contract and shall be governed by and construed in accordance with
the laws of the Commonwealth of Massachusetts, without regard to the conflict of
law principles thereof.

         9. REPRESENTATIONS. In signing this Agreement, you give the Company
assurance that you have signed it voluntarily and with a full understanding of
its terms; that you have had sufficient opportunity to consider this Agreement
and to consult with anyone of your choosing before signing; and that, in signing
this Agreement, you have not relied on any promises or representations, express
or implied, that are not set forth here expressly.

                                      -9-
<PAGE>

         Intending to be legally bound, the parties have signed this Agreement
under seal on the dates indicated below.

BTU INTERNATIONAL, INC.

By:  ______________________                          Date:    February ___, 2003
     David Brown
     Compensation Committee Chairman

Accepted and Agreed:

____________________________                         Date:    February ___, 2003
Paul van der Wansem

                                      -10-

<PAGE>
                                    EXHIBIT 1

                         COLLATERAL ASSIGNMENT AGREEMENT

         For value received, I hereby assign unto BTU International, Inc., North
Billerica, Massachusetts (the "Assignee"), the policy of Insurance known as
40-572-487 issued by new York Life Insurance Company (the "Policy") on the life
of Paul J. van der Wansem (the "Owner"), as collateral security to the extent of
the indebtedness of the Owner to the Assignee.

         This Collateral Assignment Agreement is expressly intended to supersede
any collateral assignment agreements or other agreements regarding Policy Number
40-572-487 that have been executed previously by the Owner, by the Assignee, or
by the Owner and the Assignee.

         Except as expressly herein granted to the Assignee, the Owner shall
retain all incidents of ownership in the policy.

_______________________________                      Dated: February ___, 2003
Paul J. van der Wansem

Accepted and Agreed:

BTU International, Inc.

By:  _________________________                       Dated: February ___, 2003
     David Brown
     Compensation Committee Chairman<PAGE>
                                                                   EXHIBIT 10.26

                              EMPLOYMENT AGREEMENT

EMPLOYMENT AGREEMENT dated 14 Sept 92 (Employment Agreement") by and between
MKS Instruments, Inc., a Massachusetts Corporation (the "Corporation"), and John
Smith of Cheshire, UK. (the "Employee").

WHEREAS, the Corporation and the Employee desire to provide for the employment
of the Employee by the Corporation:

NOW, THEREFORE, in consideration of the premises and the mutual promises
contained herein, the Corporation and the Employee hereby agree as follows:

     (1)  Term of Employment.  The Corporation hereby employs the Employee, and
the Employee hereby accepts employment with the Corporation, for a period
commencing as of 14 SEPT 92 and continuing from month to month thereafter until
terminated as provided in this Section (1). Either the Corporation or the
Employee may terminate the employment of the Employee under this Employee
Agreement at any time after 14 SEPT 92 by giving written notice to the other
party stating its or his election to terminate the employment of the Employee
under this Employment Agreement thirty (30) days after the date of receipt by
the other party of such notice and the employment of the Employee under this
Employment Agreement shall terminate ninety (90) days after the date of receipt
by the other party of such notice; provided, however, that the employment of the
Employee under this Employment Agreement is subject to prior termination as
hereinafter provided in Section (5).
<PAGE>
     (2)  Capacity. The Employee shall serve in such capacity as may be
assigned to him consistent with his training and experience for the term of
employment under this Employment Agreement and shall have such authority as is
delegated to him by the President of NGS or his designee.

     (3)  Extent of Services. During the term of employment of the Employee
under this Employment Agreement, the Employee shall devote his full time to,
and his best efforts in the furtherance of, the business of the Corporation and
shall not engage in any other business activity, which interferes in any way
with the Employee performance of his duties to the Corporation, whether or not
such business activity is pursued for gain or any other pecuniary advantage,
without the prior written consent of the Corporation.

     (4)  Compensation. In consideration of the services to be rendered by the
Employee under this Employment Agreement, the Corporation agrees to pay, and
the Employee agrees to accept, the following compensation:

          (a) Base Salary:  A base salary at the rate of ninety five thousand
dollars ($95,000.00) per year for the term of employment of the Employee under
this Employment Agreement. The base salary shall be payable in equal weekly
installments subject to usual withholding requirements. No overtime pay will be
paid to the Employee by the Corporation.

          (b) Profit Sharing Plan:  The Employee shall be eligible to become a
participant under the profit sharing plan of the Corporation on fulfilling the
conditions set forth in the Profit Sharing Plan of the Corporation. This
section shall be amended by the provision set forth in attachment A.

                                       2
<PAGE>
          (c)  Vacation:  The Employee shall be entitled to an annual vacation
leave of 15 days at full pay during each year of this Employment Agreement,
subject to the Employee arranging such vacation so as not to affect adversely
the ability of the Corporation to transact its necessary business.

          (d)  Life Insurance:  The Corporation shall provide, and pay all of
the premiums for, term life insurance for the Employee during the term of
employment of the Employee under this Employment Agreement in accordance with
the term life insurance plan of the Corporation.

          (e)  Health Insurance:  The Corporation shall provide group medical
insurance for the Employee under the Medical Reimbursement Plan of the
Corporation applicable to the Employee during the term of employment of the
Employee under this Employment Agreement.

     (5)  Termination.  The employment of the Employee under this Employment
Agreement shall terminate:

          (a)  On the expiration of the period of employment as provided in
Section (1).

          (b)  Upon the death of the Employee.

          (c)  At the election of the Corporation (i) if the Employee shall
fail, or refuse, to perform the services required of him under this Employment
Agreement, or (ii) if the Employee shall fail, or refuse, to perform the other
covenants and agreements required of him under this Employment Agreement, or
(iii) for "cause", which term shall mean acts or actions detrimental to the
best interests of the Corporation.

                                       3

<PAGE>
     (6)  Payment Upon Termination.

          (a)  If the employment of the Employee is terminated on the
expiration of the period of employment as provided in Section (1), the Employee
shall not be entitled to any compensation, and the Corporation shall have no
obligation to pay the Employee any compensation, except as is provided in this
Employment Agreement.

          (b)  If the employment of the Employee is terminated by death, the
Corporation shall pay to the estate of the Employee the compensation which
would otherwise by payable to the Employee at the end of the month in which his
death occurs.

          (c)  In the event the employment of the Employee is terminated at the
election of the Corporation pursuant to Section (5) (c) hereof, the Employee
shall only be entitled to his base salary through the last day of actual
employment or the date of termination, whichever is earlier.

     (7)  Trade Secrets.  The Employee covenants and agrees that he will
communicate to the Corporation, and will not divulge or communicate to any
other person, partnership, corporation or other entity without the prior
written consent of the Corporation, any trade secrets of the Corporation or
confidential information relating to the business of the Corporation or any one
connected with the Corporation, and that such trade secrets and confidential
information shall not be used by the Employee either on his own behalf or for
the benefit of others or disclosed by the Employee to any one, except to the
Corporation, during or after the term of employment of the Employee under this
Employment Agreement.

                                       4

<PAGE>
     (8)  Inventions and Patents.

          (a)  The Employee shall make prompt full disclosure in writing to the
Corporation of all inventions, improvements and discoveries, whether or not
patentable, which the Employee conceives, devises, makes, discovers, develops,
perfects or first reduces to practice, either alone or jointly with others,
during the term of employment of the Employee under this Employment Agreement,
which relate in any way to the fields, products or business of the Corporation,
including development and research, whether during or out of the usual hours of
work or on or off the premises of the Corporation or by use of the facilities of
the Corporation or otherwise and whether at the request or suggestion of the
Corporation or otherwise (all such inventions, improvements and discoveries
being hereinafter called the "Inventions"), including and Inventions, whether or
not patentable, conceived, devised, made, discovered, developed, perfected or
first reduced to practice by the Employee after the employment of the Employee
under this Employment Agreement is terminated if the Inventions were conceived
by the Employee during the term of employment of the Employee under this
Employment Agreement. Any Inventions, whether or not patentable, conceived,
devised, made, discovered, developed, perfected or first reduced to practice by
the Employee within six (6) months of the date of termination of the employment
of the Employee under this Employment Agreement shall be conclusively presumed
to have been conceived during the term of employment of the Employee under this
Employment Agreement.

          (b)  The Employee agrees that the Inventions shall be the sole and
exclusive property of the Corporation.

          (c)  The Employee agrees to assist the Corporation and its nominees
in every reasonable way (entirely at its or their expense) to obtain for the
benefit of the Corporation letters patent for the

                                       5

<PAGE>
Inventions and trademarks, trade names and copyrights relating to the
Inventions, and any renewals, extensions or reissues thereof, in any and all
countries, and agrees to make, execute, acknowledge and deliver, at the request
of the Corporation, all written applications for letters patent, trademarks,
trade names and copyrights relating to the Inventions and any renewals,
extensions or reissues thereof, in any and all countries, and all documents
with respect thereto, and all powers of attorney relating thereto and, without
further compensation, to assign to the Corporation or its nominee all the
right, title and interest of the Employee in and to such applications and to
any patents, trademarks, trade names or copyrights which shall thereafter issue
on any such applications, and to execute, acknowledge and deliver all other
documents deemed necessary by the Corporation to transfer to or vest in the
Corporation all of the right, title and interest of the Employee in and to the
Inventions, and to such trademarks, trade names, patents and copyrights
together with exclusive rights to make, use, license and sell them throughout
the world.

          (d)  The Employee agrees that even though his employment is
terminated under this Employment Agreement he will, at any time after such
termination of employment, carry out and perform all of the agreements of
Subsections (8) (a) and (8) (c) above, and will at any time and at all times
cooperate with the Corporation in the prosecution and/or defense of any
litigation which may arise in connection with the Inventions, provided,
however, that should such services be rendered after termination of employment
of the Employee under this Employment Agreement, the Employee shall be paid
reasonable compensation on a per diem basis.

          (e)  The Employee agrees to make and maintain adequate and current
written records of all Inventions in the form of notes, sketches, drawings, or
reports relating thereto, which records shall be and remain the property of,
and available to, the Corporation at all times.

                                       6

<PAGE>
          (f)  The Employee agrees that he will, upon leaving the employment of
the Corporation, promptly deliver to the Corporation all originals and copies of
disclosures, drawings, prints, letters, notes, and reports either typed,
handwritten or otherwise memorialized, belonging to the Corporation which are
in his possession or under his control and the Employee agrees that he will not
retain or give away or make copies of the originals or copies of any such
disclosures, drawings, prints, letters, notes or reports.

     (9)  Property of Corporation.  All files, records, reports, documents,
drawings, specifications, equipment, and similar items relating to the business
of the Corporation, whether prepared by the Employee or otherwise coming into
his possession, shall remain the exclusive property of the Corporation and
shall not be removed by the Employee from the premises of the Corporation under
any circumstances whatsoever without the prior written consent of the
Corporation.

     (10) Non-Competition.

          (a)  During the term of employment of the Employee under this
Employment Agreement, and during a period of nine (9) months after termination
of employment of the Employee under this Employment Agreement without regard to
the cause of termination of employment and whether or not such termination of
employment was caused by the Employee or by the Corporation, (i) the Employee
shall not engage, either directly or indirectly, in any manner or capacity, in
any business or activity which is competitive with any business or activity
conducted by the Corporation. For purposes of this Agreement, any business or
activity involving or relating to quadrupole residual gas analyzers similar in
concept to the "PPT" ("Competitive Business") shall be deemed to be business or
activity which is competitive with the business conducted by the Corporation.;
(ii) the Employee shall not work for or employ,

                                       7

<PAGE>
directly or indirectly, or cause to be employed by another, any person who was
an employee, officer or agent of the Corporation or of any of its subsidiaries
at any time during a period of twelve (12) months prior to the termination of
the employment of the Employee under this Employment Agreement nor shall the
Employee form any partnership with, or establish any business venture in
cooperation with, any such person which is competitive with any business or
activity of the Corporation; (iii) the Employee shall not give, sell or lease
any goods or services competitive with the goods or services of the Corporation
or its subsidiaries to any person, partnership, corporation or other entity who
purchased goods or services from the Corporation or its subsidiaries within one
(1) year before the termination of the employment of the Employee under this
Employment Agreement; (iv) the Employee shall not have any financial interest,
or participate as a director, officer, stockholder, partner, employee,
consultant or otherwise, in any corporation, partnership or other entity which
is competitive with any business or activity conducted by the Corporation.

     (b)  The Corporation and the Employee agree that the services of the
Employee are of a personal, special, unique and extraordinary character, and
cannot be replaced by the Corporation without great difficulty, and that the
violation by the Employee of any of his agreements under this Section (10)
would damage the goodwill of the Corporation and cause the Corporation
irreparable harm which could not reasonably or adequately be compensated in
damages in an action at law, and that the agreements of the Employee under this
Section (10) may be enforced by the Corporation in equity by an injunction or
restraining order in addition to being enforced by the Corporation at law.

     (c)  In the event that this Section (10) shall be determined by any court
of competent jurisdiction to be unenforceable by reason of its extending for
too long a period of

                                       8

<PAGE>
time or over too great a range of activities, it shall be interpreted to extend
only over the maximum period of time or range of activities as to which it may
be enforceable.

     (11)    Notice.  Any and all notices under this Employment Agreement shall
be in writing and, if to the Corporation, shall be duly given if sent to the
Corporation by registered or certified mail, postage prepaid, return receipt
requested, at the address of the Corporation set forth under its name below or
at such other address as the Corporation may hereafter designate to the
Employee in writing for the purpose, and if to the Employee, shall be duly
given if delivered to the Employee by hand or if sent to the Employee by
registered or certified mail, postage prepaid, return receipt requested, at the
address of the Employee set forth under his name below or at such other address
as the Employee may hereafter designate to the Corporation in writing for the
purpose.

     (12)    Assignment.  The rights and obligations of the Corporation under
this Employment Agreement shall inure to the benefit of, and shall be binding
upon, the successors and assigns of the Corporation. The rights and obligations
of the Employee under this Employment Agreement shall inure to the benefit of,
and shall be binding upon, the heirs, executors and legal representatives of
the Employee.

     (13)    Entire Agreement and Severability.

             (a) This Employment Agreement, and Attachment A, supersedes any and
all other agreements, either oral or in writing, between the parties hereto with
respect to the employment of the Employee by the Corporation and contains all of
the covenants and agreements between the parties with respect to such
employment. Each party to this Employment Agreement acknowledges that no
representations, inducements, promises or agreements, oral or otherwise, have
been

                                       9
<PAGE>
made by any party, or any one acting on behalf of any party, which are not
embodied herein, and that no other agreement, statement or promise not
contained in this Employment Agreement shall be valid and binding. Any
modification of this Employment Agreement will be effective only if it is in
writing signed by both parties to this Employment Agreement.

           (b)  If any provision in this Employment Agreement is held by a court
of competent jurisdiction to be invalid, void or unenforceable, the remaining
provisions shall nevertheless continue in full force and effect without being
impaired or invalidated in any way.

           (c)  All pronouns used herein shall include the masculine, feminine,
and neuter gender as the context requires.

     (14) Governing Law. This Employment Agreement shall be governed by, and
construed in accordance with, the laws of The Commonwealth of Massachusetts
applicable to contracts made and to be performed entirely within The
Commonwealth of Massachusetts.

                                       10
<PAGE>

IN WITNESS WHEREOF, the parties hereto have executed, in the Commonwealth of
Massachusetts, this Employment Agreement as a sealed instrument, all as of the
day, month and year first written above.

MKS INSTRUMENTS, INC.

By: /s/ John R. Bertucci
    ---------------------
    President

    6 Shattuck Road
    Andover, MA  01810

    /s/ John Smith     LS
    ---------------------
    Address:
        101 North St.
    ---------------------
        Medfield, MA

                                       11

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