Document:

Exhibit 4.3

                         MIKRON INSTRUMENT COMPANY, INC.

                          OMNIBUS STOCK INCENTIVE PLAN

                                    ARTICLE I

                                   DEFINITIONS

1.01. Agreement means a written agreement between the Company and a Participant
or any written instrument issued by the Company to a Participant (including any
amendment or supplement thereto) specifying the terms and conditions of an award
of Restricted Shares or Performance Shares or a grant of an Option or SAR made
to such Participant.

1.02. Board means the Board of Directors of the Company.

1.03. Code means the Internal Revenue Code of 1986, as amended.

1.04. Committee means the Compensation Committee of the Board, consisting solely
of not less than two non-employee directors who have been appointed to
administer the Plan.

1.05. Common Stock means the Company's common stock, one-third cent par value.

1.06. Company means Mikron Instrument Company, Inc.

1.07. Corresponding SAR means a SAR that is granted in relation to a particular
Option and that can be exercised only upon the surrender to the Company,
unexercised, of that portion of the Option to which the SAR relates.

1.08. Date of Exercise means (i) with respect to an Option, the date that the
Option price is received by, and (ii) with respect to a SAR, the date that the
notice of exercise is received by, the Company.

1.09. Fair Market Value of the Common Stock shall be the mean between the
following prices, as applicable, for the date as of which fair market value is
to be determined, as quoted in The Wall Street Journal (or in such other
reliable publication as the Committee, in its discretion, may determine to rely
upon): (a) if the Common Stock is listed on the New York Stock Exchange, the
highest and lowest sales prices per share of the Common Stock as quoted in the
NYSE-Composite Transactions listing for such date, (b) if the Common Stock is
not listed on such exchange, the highest and lowest sales prices per share of
Common Stock for such date on (or on any composite index including) the
principal United States securities exchange registered under the Exchange Act on
which the Common Stock is listed, or (c) if the Common Stock is not listed on
any such exchange, the
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highest and lowest sales prices per share of the Common Stock for such date on
the Nasdaq Stock Market or any successor thereto ("Nasdaq"). If there are no
such sale price quotations for the date as of which fair market value is to be
determined, but there are such sale price quotations within a reasonable period
both before and after such date, then fair market value shall be determined by
taking a weighted average of the means between the highest and lowest sales
prices per share of the Common Stock as so quoted on the nearest date before and
the nearest date after the date as of which fair market value is to be
determined. The average should be weighted inversely by the respective numbers
of trading days between the selling dates and the date as of which fair market
value is to be determined. If there are no such sale price quotations on or
within a reasonable period both before and after the date as of which fair
market value is to be determined, then fair market value of the Common Stock
shall be the mean between the bona fide bid and asked prices per share of Common
Stock as so quoted for such date on Nasdaq, or if none, the weighted average of
the means between such bona fide bid and asked prices on the nearest trading
date before and the nearest trading date after the date as of which fair market
value is to be determined, if both such dates are within a reasonable period.
The average is to be determined in the manner described above in this paragraph.
If the fair market value of the Common Stock cannot be determined on the basis
previously set forth in this paragraph on the date as of which fair market value
is to be determined, the Committee shall in good faith determine the fair market
value of the Common Stock on such date. Fair market value shall be determined
without regard to any restriction other than a restriction which, by its terms,
will never lapse.

1.10. Incentive Stock Option shall have the meaning given to it by Section 422
of the Code.

1.11. Initial Value means, with respect to a SAR, the Fair Market Value of one
share of Common Stock on the date of grant, as set forth in an Agreement.

1.12. Involuntary Termination means a Termination of Employment for a reason
other than death, Retirement, Total Disability or voluntary resignation.

1.13. Non-Employee Director means a director who:

      (a) is not currently an officer of the Company or a parent or subsidiary
of the Company, or otherwise currently employed by the Company or a parent or
subsidiary of the Company;

      (b) does not receive compensation, either directly or indirectly, for
services rendered as a consultant or in any capacity other than as a director,
except for an amount which does not exceed the dollar amount for which
disclosure would be required pursuant to any provision of Regulations S-K
promulgated by the Commission;

      (c) does not possess an interest in any other transaction for which
disclosure

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would be required by any provision of said Regulation S-K; and

      (d) is not engaged in a business relationship for which disclosure would
be required by any provision of said Regulation S-K.

1.13 Nonstatutory Option means any Option granted by the Company pursuant to
this Plan which is not an Incentive Stock Option.

1.14. Option means any stock option that entitles the holder to purchase from
the Company a stated number of shares of Common Stock at the price set forth in
an Agreement including, but not limited to, an Incentive Stock Option, a
Nonstatutory Option and a Performance Option..

1.15. Participant means an employee of the Company, or of a Subsidiary,
including an employee who is a member of the Board, or a non-employee director,
and any other person who satisfies the requirements of Article IV and is
selected by the Committee or by the Board to receive a Restricted Share or
Performance Share award, an Option, a SAR, or a combination thereof.

1.16 Performance Option means an Option entitling the Participant to purchase
from the Company a stated number of shares of Common Stock at the price set
forth in an Agreement, the exercise of which is conditioned upon the achievement
of one or more of the Performance Targets set forth in such Option or the
Agreement.

1.17 Performance Period means an accounting period of the Company or a
Subsidiary of not less than one year, as determined by the Committee in its
discretion.

1.18. Performance Share means an award, expressed in dollars or shares of Common
Stock, granted to a Participant with respect to a Performance Period. Awards of
Performance Shares expressed in dollars may be established as fixed dollar
amounts, as a percentage of salary, as a percentage of a pool based on earnings
of the Company, a Subsidiary or Subsidiaries or any branch, department or other
portion thereof or in any other manner determined by the Committee in its
discretion, provided that the amount thereof shall be capable of being
determined as a fixed dollar amount as of the close of the Performance Period.

1.19 Performance Target means that level of performance established by the
Committee which must be met in order for an award of Performance Shares to be
fully earned. The Performance Target may be expressed in terms of earnings per
share, return on assets, asset growth, ratio of capital to assets or such other
level or levels of accomplishment by the Company, a Subsidiary or Subsidiaries,
any branch, department or other portion thereof or the Participant individually
as may be established or revised from time to time by the

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Committee.

1.20. Plan means the Mikron Instrument Company, Inc. Omnibus Stock Incentive
Plan.

1.21. Restricted Shares means shares of Common Stock awarded to a Participant
under Article VII. Shares of Common Stock shall cease to be Restricted Shares
when, in accordance with the terms of the applicable Agreement, they become
transferable and free of substantial risks of forfeiture.

1.22. Retirement means a Termination of Employment by reason of a Participant's
cessation of employment (or, in the case of a non-employee director, the
cessation of his or her tenure as such), other than by reason of a Total
Disability or Termination for Cause.

1.23. SAR means a stock appreciation right that entitles the holder to receive,
with respect to each share of Common Stock encompassed by the exercise of such
SAR, the amount determined by the Committee and specified in an Agreement. In
the absence of such a determination, the holder shall be entitled to receive,
with respect to each share of Common Stock encompassed by the exercise of such
SAR, the excess of the Fair Market Value on the Date of Exercise over the
Initial Value. References to "SARs" include both Corresponding SARs and SARs
granted independently of Options, unless the context requires otherwise.

1.24. Subsidiary means any "subsidiary corporation" as such term is defined in
Code section 424.

1.25. Termination of Employment means with respect to (a) Participants who are
employees of the Company or a Subsidiary, the time when the employee-employer
relationship between the Participant and the Company ceases to exist for any
reason including, but not limited to termination by resignation, discharge,
death, Total Disability or Retirement; and (b) Participants who are non-employee
directors, the time when the Participant ceases to be a director by reason of
his or her resignation, failure to stand for re-election or dismissal.

1.26. Termination for Cause means an Involuntary Termination of a Participant:
(a) if the Participant has a written employment agreement with the Company or
any Subsidiary, "for cause" as that or a similar term is defined in the
employment agreement; or (b) if the Participant does not have a written
employment agreement with the Company or any Subsidiary, by reason of (i) the
Participant's dishonesty or misconduct (including substance abuse) in the
performance of his or her duties; or (ii) a wilful failure by the Participant to
perform his or her assigned duties which adversely affects the Company; of (iii)
the conviction of the Participant of a felony or other criminal act. All
determinations of whether or not a Termination for Employment is "for cause"
will be made by the

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Committee in its sole and absolute discretion.

1.27. Total Disability means the inability of a Participant to engage in any
substantial gainful activity by reason of a medically determinable physical or
mental impairment which can be expected to result in death or which has lasted
or can be expected to last for a continuous period of not less than 12 months.
All determinations as to the date and extent of disability of a Participant will
be made by the Committee in its sole and absolute discretion.

                                   ARTICLE II

                                    PURPOSES

      The Plan is intended to assist the Company in recruiting and retaining
employees and directors with ability and initiative by enabling them to
participate in its future success and to associate their interests with those of
the Company and its shareholders. The Plan is intended to permit the award of
Restricted Shares, the award of Performance Shares, the grant of SARs, and the
grant of Performance Options, Incentive Stock Options and Nonstatutory Options.
The proceeds received by the Company from the sale of Common Stock pursuant to
this Plan shall be used for general corporate purposes.

                                   ARTICLE III

                                 ADMINISTRATION

      Except as provided in this Article III, the Plan shall be administered by
the Committee. The Committee shall have authority to award Restricted Shares and
Performance Shares and to grant Options and SARs upon such terms (not
inconsistent with the provisions of this Plan) as the Committee may consider
appropriate. Such terms may include conditions (in addition to those contained
in this Plan) on the exercisability of all or any part of an Option or SAR or on
the transferability or forfeitability of Restricted Shares. Notwithstanding any
such conditions, the Committee may, in its discretion, accelerate the time at
which any Option or SAR may be exercised or the time at which Restricted Shares
may become transferable or nonforfeitable. In addition the Committee shall have
complete authority to interpret all provisions of this Plan; to prescribe the
form of Agreements; to adopt, amend, and rescind rules and regulations
pertaining to the administration of the Plan; and to make all other
determinations necessary or advisable for the administration of this Plan. The
express grant in the Plan of any specific power to the Committee shall not be
construed as limiting any power or authority of the Committee. Any decision
made, or action taken, by the Committee or in connection with the administration
of this Plan shall be final and conclusive. No member of the Committee

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shall be liable for any act done in good faith with respect to this Plan or any
Agreement, or Option, SAR, Restricted Share award or Performance Share award.
All expenses of administering this Plan shall be borne by the Company.

      The Committee, in its discretion, may delegate to one or more officers of
the Company all or part of the Committee's authority and duties with respect to
Participants who are not subject to the reporting and other provisions of
Section 16 of the Securities Exchange Act of 1934, as in effect from time to
time (the "Exchange Act"). In the event of such delegation, and as to matters
encompassed by the delegation, references in the Plan to the Committee shall be
interpreted as a reference to the Committee's delegate or delegates. The
Committee may revoke or amend the terms of a delegation at any time, but such
action shall not invalidate any prior actions of the Committee's delegate or
delegates that were consistent with the terms of the Plan.

      In addition to, and not in substitution or replacement of, the powers and
authority conferred upon the Committee pursuant to this Plan, the Board shall
also be entitled to award Restricted Shares or Performance Shares and/or to
grant one or more Options, SARs, or Options and SARs to any eligible
Participant, and when it makes such awards and/or grants, all of the provisions
of this Plan which pertain to the Committee shall be construed as though the
word "Board" appeared in place of the word "Committee," and the Board shall
have, and shall be entitled to exercise, all of the powers and authority
conferred upon the Committee when making, amending, modifying canceling,
settling or rescinding any of such awards and/or grants.

                                   ARTICLE IV

                                   ELIGIBILITY

4.01. General. Any employee of the Company or of any Subsidiary (including any
corporation that becomes a Subsidiary after the adoption of this Plan) is
eligible to participate in this Plan if the Committee, in its sole discretion,
determines that such person has contributed or can be expected to contribute to
the profits or growth of the Company or a Subsidiary. Any such employee may be
awarded Restricted Shares or Performance Shares or may be granted one or more
Options, SARs, or Options and SARs. A director of the Company who is an employee
of the Company or a Subsidiary, and a non-employee director of the Company or a
Subsidiary, may be awarded Restricted Shares and Performance Shares and may be
granted Options or SARs under this Plan. Further, the Committee may from time to
time in its sole discretion award Restricted Shares and Performance Shares and
may grant Options or SARs to non-employees or non-key employees in conjunction
with mergers and acquisition transactions.

4.02. Grants. The Committee will designate individuals to whom Restricted Shares
and

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Performance Shares are to be awarded and to whom Options and SARs are to be
granted and will specify the number of shares of Common Stock subject to each
award or grant. An Option may be granted with or without a related SAR. The
Committee may grant Incentive Stock Options and Nonstatutory Options to the same
Participant, but not in tandem. A SAR may be granted with or without a related
Option. All Restricted Shares and Performance Shares awarded, and all Options
and SARs granted, under this Plan shall be evidenced by Agreements which shall
be subject to the applicable provisions of this Plan and to such other
provisions as the Committee may adopt. No Participant may be granted Incentive
Stock Options or related SARs (under all Incentive Stock Option plans of the
Company and its Subsidiaries) which are first exercisable in any year for Common
Stock having an aggregate Fair Market Value (determined as of the date an Option
is granted) exceeding $100,000.

                                    ARTICLE V

                          COMMON STOCK SUBJECT TO PLAN

5.01. Source of Shares. Upon the award of Restricted Shares and when a
Performance Share is earned, the Company may issue authorized but unissued
shares of Common Stock. Upon the exercise of an Option or SAR, the Company may
deliver to the Participant (or the Participant's broker if the Participant so
directs), authorized but unissued Common Stock.

5.02. Maximum Number of Shares. The maximum aggregate number of shares of Common
Stock that may be issued pursuant to the exercise of Options and SARs and the
award of Restricted Shares and the settlement of Performance Shares under this
Plan is 857,140, subject to increases and adjustments as provided in Article IX.

5.03. Forfeitures, etc. If an Option or SAR is terminated, in whole or in part
for any reason other than its exercise, the number of shares of Common Stock
allocated to the Option or SAR or portion thereof may be reallocated to other
Options, SARs granted, or Restricted Shares and Performance Share awards to be
granted under this Plan. Any Restricted Shares that are forfeited or Performance
Shares that are unearned may be reallocated to other Options or SARs granted, or
Restricted Shares awarded, under this Plan.

                                   ARTICLE VI

                      OPTIONS AND STOCK APPRECIATION RIGHTS

6.01. Nonstatutory Options. The Committee may grant Nonstatutory Options under
this Plan. Such Nonstatutory Stock Options must comply with all applicable
requirements of this Plan except for those which pertain solely to Incentive
Stock Options.

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6.02. Incentive Stock Options. The Committee may grant Incentive Stock Options
under this Plan which shall comply with all of the restrictions and limitations
set forth in Section 422 of the Code. To the extent that any Option does not
qualify as an Incentive Stock Option, it shall constitute a Nonstatutory Stock
Option.

6.03. Performance Options. The Committee may grant Performance Options under
this Plan. All such options shall be Nonstatutory Options.

6.04. Vesting of Options. The Participant's Agreement shall specify the date or
dates on which the Participant may begin to exercise all or a portion of his
Option. Subsequent to such dates or dates, the Option shall be deemed "vested."
Notwithstanding the terms of any Agreement, the Committee at any time may
accelerate such date or dates and otherwise waive or amend any conditions of the
grant.

6.05. Grant and Exercise of SARs. SARs may be granted to Participants by the
Committee independently of any Option granted pursuant to this Article or as a
Corresponding SAR. In the case of a Corresponding SAR granted in tandem with a
Nonstatutory Option, such SAR may be exercised either at or after the time of
the exercise of such Nonstatutory Option. In the case of a Corresponding SAR
granted in tandem with an Incentive Stock Option, such SAR may be exercised only
at the time of the exercise of such Incentive Stock Option.

A Corresponding SAR, shall terminate and no longer be exercisable upon the
termination or exercise of related Option. However, if a Corresponding SAR is
granted with respect to less than the full number of shares covered by a related
Option, such SAR shall terminate only if and to the extent that the number of
shares covered by the exercise or termination of the related Option exceeds the
number of shares not covered by such SAR.

6.06. Exercise of Options and SARs Conditioned on Continuous Employment. Except
as otherwise provided in this Plan or by the Compensation Committee, no
Participant may exercise an Option or SAR unless at the time of exercise he or
she has been continuously in the employ of the Company or a Subsidiary since the
date of grant thereof.

6.07. Terms and Conditions of Stock Appreciation Rights. SARs shall be subject
to such terms and conditions as shall be determined from time to time by the
Committee and embodied in the Agreements and in procedures established by the
Committee. The Committee at any time may accelerate the exercisability of any
SAR and otherwise waive or amend any conditions of the grant of a SAR.

6.08. Maximum Option or Stock Appreciation Right Period. The maximum period in
which an Option or SAR may be exercised shall be determined by the Committee on
the date of grant except that no Option that is an Incentive Stock Option and
any

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Corresponding SAR that relates to such Option shall be exercisable after the
expiration of ten years from the date the Option or SAR was granted. The terms
of any Option or SAR may provide that it is exercisable for a period less than
such maximum period.

6.09. Option Exercise Price. The price per share for Common Stock purchased on
the exercise of an Option shall not be less than 100% of the Fair Market Value
of the Common Stock on the date the Option is granted.

6.10. Payment of Option Exercise Price. Unless otherwise provided by the
Agreement, payment of the Option exercise price shall be made in cash or a cash
equivalent acceptable to the Committee. If the Agreement so provides, payment of
all or part of the exercise price may be made by surrendering shares of Common
Stock to the Company. If Common Stock is used to pay all or part of the exercise
price, the shares surrendered must have a Fair Market Value (determined as of
the day preceding the Date of Exercise) that is not less than such price or part
thereof.

6.11. Determination of Payment of Cash and/or Common Stock Upon Exercise of SAR.
At the Committee's discretion, the amount payable as a result of the exercise of
a SAR may be settled in cash, Common Stock, or a combination of cash and common
Stock. A Fractional share shall not be deliverable upon the exercise of a SAR
but a cash payment will be made in lieu thereof.

6.12. Reload Options. The Committee shall have the authority to specify at the
time of grant that a Participant shall be granted another Option (a "Reload
Option") in the event such Participant exercises all or part of a Nonstatutory
Option (an "Original Option") by surrendering in accordance with Section 6.10
hereof already owned shares of Common Stock in full or partial payment of the
exercise price under such Original Option, subject to the availability of shares
of Common Stock under the Plan at the time of exercise. Each Reload Option shall
cover a number of shares of Common Stock equal to the number of shares of Common
Stock surrendered in payment of the exercise price, shall have an exercise price
per share of Common Stock equal to the Fair Market Value of the Common Stock on
the date of grant of such Reload Option and shall expire on the stated
expiration date of the Original Option. A Reload Option shall be exercisable at
any time and from time to time from and after the date of grant of such Reload
Option (or, as the Committee, in its sole discretion, shall determine at the
time of grant, at such time or times as shall be specified in the Reload
Option); provided, however, that a Reload Option granted to a Participant
subject to the provisions of Section 16(b) of the Exchange Act shall not be
exercisable during the first six months from the date of grant of such Reload
Option. The first such Reload Option may provide for the grant, when exercised,
of one subsequent Reload Option to the extent and upon such terms and

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conditions, consistent with this Section 6.12, as the Committee, in its sole
discretion, shall specify at or after the time of grant of such Reload Option. A
Reload Option shall contain such other terms and conditions which may include a
restriction on the transferability of the number of shares of Common Stock
received upon exercise of the Original Option reduced by a number of shares
equal in value to the tax liability incurred upon exercise as the Committee, in
its sole discretion, may deem desirable which may be set forth in the Agreement
evidencing the Reload Option.

6.13. Nontransferability. Any Option or SAR granted under this Plan shall be
nontransferable except by will or by the laws of descent and distribution. In
the event of any such transfer, the Option and any Corresponding SAR that
relates to such Option must be transferred to the same person or persons or
entity or entities. During the lifetime of a Participant to whom an Option or
SAR is granted, the Option or SAR may be exercised only by the Participant. No
right or interest of a Participant in any Option or SAR shall be liable for, or
subject to, any lien, obligation, or liability of such Participant.

6.14. Cancellation and New Grant of Options. The Committee shall have the
authority to effect, at any time, and from time to time, with the consent of the
affected Participants, the cancellation of any or all outstanding Options under
the Plan and the grant in substitution therefor of new Options under the Plan
covering the same or different numbers of shares of Common Stock having an
Option exercise price per share which may be lower or higher than the exercise
price per share of the canceled Options.

6.15. Shareholder Rights. No Participant shall have any rights as a shareholder
with respect to shares subject to an Option or SAR until the Date of Exercise of
such Option or SAR.

6.16. Retirement of Holder of Options or Stock Appreciation Rights. If there is
a Termination of Employment of a Participant to whom an Option and/or SAR has
been granted due to Retirement, each Incentive Stock Option held by the retired
Participant, whether or not then vested, may be exercised until the earlier of
(a) the end of the three month period immediately following the date of such
Termination of Employment; or (b) the expiration of the term specified in the
Option or SAR. In the case of a Nonstatutory Option, there shall be substituted
the words, "the end of the twelve month period" for the words "the end of the
three month period" in the immediately preceding sentence.

6.17. Total Disability of Holder of Options or Stock Appreciation Rights. If
there is a Termination of Employment of a Participant to whom an Option and/or a
SAR has been granted by reason of his or her Total Disability, each Option
and/or SAR held by the Participant, whether or not then vested, may be exercised
until the earlier of: (a) the end of the twelve month period immediately
following the date of such Termination of Employment; or (b) the expiration of
the term specified in the Option or SAR.

6.18. Death of Holder of Options or Stock Appreciation Rights. If there is a
Termination

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of Employment of a Participant to whom an Option or SAR has been granted by
reason of his or her death, or (b) the death of a former employee within three
months following the date of his or her Retirement (or, in the case of a
Non-statutory Option, within twelve months following the date of his or her
Retirement), or (c) the death of a former employee within twelve months
following the date of his or her Termination of Employment by reason of Total
Disability, then each Option and SAR held by the person at the time of his or
her death, whether or not then vested, may be exercised by the person or persons
to whom the Option or SAR shall pass by will or by the laws of descent and
distribution (but by no other persons) until the earlier of (i) the end of the
twelve month period immediately following the date of death (or such longer
period as is permitted by the Committee); and (ii) the expiration of the term
specified in the Option or SAR.

6.19. Termination of Employment for Cause: Voluntary Termination Prior to
Retirement. If there is a Termination of Employment for Cause of a Participant
to whom an Option or SAR has been granted under this Plan, or if a Participant
voluntarily terminates his or her employment prior to Retirement (other than by
reason of Total Disability), then all Options and SARs held by such Participant,
whether or not then vested, shall automatically be canceled at the time of such
Termination of Employment and shall be of no further force or effect thereafter.
This section shall not affect any Common Stock acquired by the Participant upon
exercise of Options or SARs prior to such Termination of Employment by the
Participant.

                                   ARTICLE VII

                             RESTRICTED SHARE AWARDS

7.01. Award. In accordance with the provisions of this Article VII, the
Committee will designate each individual to whom an award of Restricted Shares
is to be made and will specify the number of shares of Common Stock covered by
the award.

7.02. Vesting. The Committee, on the date of the award, may prescribe that a
Participant's rights in the Restricted Shares shall be forfeitable or otherwise
restricted for a period of time set forth in the Agreement. By way of example
and not of limitation, the restrictions may postpone transferability of the
shares or may provide that the shares will be forfeited if the Participant
separates from the service of the Company and its Subsidiaries before the
expiration of a stated term or if the Company and its Subsidiaries or the
Participant fail to achieve stated objectives.

7.03. Shareholder Rights; Escrow. Prior to their forfeiture in accordance with
the terms as the Agreement and while the shares are Restricted Shares, a
Participant will have all rights of a shareholder with respect to Restricted
Shares, including the right to receive

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dividends and vote the shares; provided, however, that (a) a Participant may not
sell, transfer, pledge, exchange, hypothecate, or otherwise dispose of
Restricted Shares, (b) the Company shall retain custody of the certificates
evidencing Restricted Shares and (c) the Participant will deliver to the Company
a stock power, endorsed in blank, with respect to each award of Restricted
Shares. The limitations set forth in the preceding sentence shall not apply
after the shares cease to be Restricted Shares.

7.04 Restricted Share Agreement. Restricted Share awards shall be evidenced by
an Agreement in the form prescribed by the Committee which shall set forth such
terms, conditions and restrictions as the Committee in its discretion deems
appropriate. Restricted Share awards shall be effective only upon execution of
the applicable Agreement on behalf of the Company by the Chief Executive Officer
(if other than the President), the President or any Vice President, and by the
Participant.

                                  ARTICLE VIII

               PERFORMANCE SHARE AWARDS; PERFORMANCE OPTION GRANTS

8.01 Award and Grant. The Committee may award Performance Shares and grant
Performance Options which shall be earned by a Participant based on the level of
performance over a specified period of time by the Company, a Subsidiary or
Subsidiaries, any branch, department or other portion thereof or the Participant
individually, as determined by the Committee.

8.02 Procedure for Earning Award or Grant. A Participant shall earn awarded
Performance Shares, and shall be entitled to exercise granted Performance
Options by meeting the Performance Target for the Performance Period. If the
Minimum Target has not been attained at the end of the Performance Period, no
part of the Performance Share shall have been earned by the Participant, and no
part of the Performance Option grant for such Performance Period shall be
exercisable. If the Minimum Target is attained but the Performance Target is not
attained, the portion of the Performance Share award earned by the Participant,
or the portion of the Performance Option grant which shall be exercisable by the
Participant, shall be determined on the basis of a formula established by the
Committee.

8.03 Adjustments to Awards and Grants. At any time prior to the end of a
Performance Period, the Committee may adjust downward (but not upward) the
Performance Target and/or the Minimum Target as a result of major events
unforeseen at the time of the Performance Share award or Performance Option
grant, such as changes in the economy, the industry, laws affecting the
operations of the Company or a Subsidiary or any other event the Committee
determines would have a significant impact upon the

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probability of attaining the previously established Performance Target.

8.04 Payment of Awards. Payment of earned Performance Shares shall be made to
Participants following the close of the Performance Period as soon as
practicable after the time the amount payable is determined by the Committee.
Payment in respect of earned Performance Shares, whether expressed in dollars or
shares, may be made in cash, in shares of Common Stock, or partly in cash and
partly in shares of Common Stock, as determined by the Committee at the time of
payment. For this purpose, Performance Shares expressed in dollars shall be
converted to shares, and Performance Shares expressed in shares shall be
converted to dollars, based on the Fair Market Value of the Common Stock as of
the date the amount payable is determined by the Committee.

8.04 Effects of Termination of Employment. If prior to the close of the
Performance Period the employment of a Participant who received an award of
Performance Shares or a grant of Performance Options is voluntarily terminated
with the consent of the Company or a Subsidiary or the Participant retires, or
if the Participant dies during employment, (a) the Committee may in its absolute
discretion determine to pay all or any part of the Performance Share award based
upon the extent to which the Committee determines the Performance Target or
Minimum Target has been achieved as of the date of termination of employment,
retirement or death, the period of time remaining until the close of the
Performance Period and/or such other factors as the Committee may deem relevant;
and (b) the exercisability of the Performance Option shall be governed by the
applicable provisions of Article VI, unless the Committee, in its absolute
discretion, determines otherwise. If the Committee in its discretion determines
that all or any part of the Performance Share award shall be paid, payment shall
be made to the Participant or his or her estate as promptly as practicable
following such determination and may be made in cash, in shares of Common Stock,
or partly in cash and partly in shares of Common Stock, as determined by the
Committee at the time of the payment. For this purpose, Performance Shares
expressed in dollars shall be converted to shares, and Performance Shares
expressed in shares shall be converted to dollars, based on the Fair Market
Value of the Common Stock as of the date the amount payable is determined by the
Committee.

      If, prior to the close of a Performance Period, a Termination of
Employment of a Participant who received an award of Performance Shares occurs
for any reason other than voluntary termination with the consent of the Company
or a Subsidiary, Retirement or death, the Performance Shares of the Participant
shall be deemed not to have been earned, and no portion of such Performance
Shares may be paid. Whether Termination of Employment is a voluntary termination
with the consent of the Company or a Subsidiary shall be determined, in its
discretion, by the Committee. Any determination by the Committee on any matter
with respect to Performance Shares shall be final and binding on both the
Company and the awardee.

                                       13
<PAGE>

8.05 Performance Share Agreement. Performance Share awards shall be evidenced by
an Agreement in the form prescribed by the Committee which shall set forth the
amount or manner of determining the amount of the Performance Shares, the
Performance Period, the Performance Target and any Minimum Target and such other
terms and conditions as the Committee in its discretion deems appropriate.
Performance Share awards shall be effective only upon execution of the
applicable Performance Share Agreement on behalf of the Company by the Chief
Executive Officer (if other than the President), the President or any Vice
President, and by the Participant.

                                   ARTICLE IX

                     ADJUSTMENT UPON CHANGE IN COMMON STOCK

      The maximum number of shares that may be issued pursuant to the exercise
of Options and SARs and the award of Restricted Shares and the settlement of
Performance Shares under this Plan shall be proportionately adjusted, and the
terms of outstanding Restricted Share awards, Performance Share Awards, Options,
and SARs shall be adjusted, as the Committee shall determine to be equitably
required in the event that (a) the Company (i) effects one or more stock
dividends, stock split-ups, subdivisions or consolidations of shares or (ii)
engages in a transaction to which Code section 424 applies or (b) there occurs
any other event which, in the judgment of the Committee necessitates such
action. Any determination made under this Article IX by the Committee shall be
final and conclusive.

      The issuance by the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, for cash or property, or for
labor or services, either upon direct sale or upon the exercise of rights or
warrants to subscribe therefor, or upon conversion of shares or obligations of
the Company convertible into such shares or other securities, shall not affect,
and no adjustment by reason thereof shall be made with respect to, outstanding
awards of Restricted Shares, Performance Shares, Options or SARs.

      The Committee may award Restricted Shares and Performance Shares, may
grant Options, and may grant SARs in substitution for stock awards, stock
options, stock appreciation rights, or similar awards held by an individual who
becomes an employee of the Company or a Subsidiary in connection with a
transaction described in the first paragraph of this Article IX. Notwithstanding
any provision of the Plan (other than the limitations of Article V), the terms
of such substituted Restricted Share and Performance Share awards and Option or
SAR grants shall be as the Committee, in its discretion, determines is
appropriate.

                                    ARTICLE X

                                       14
<PAGE>

              COMPLIANCE WITH LAW AND APPROVAL OF REGULATORY BODIES

      No Option or SAR shall be exercisable, no Common Stock shall be issued, no
certificates for shares of Common Stock shall be delivered, and no payment shall
be made under this Plan except in compliance with all applicable federal and
state laws and regulations (including, without limitation, withholding tax
requirements) and the rules of all domestic stock exchanges on which shares may
be listed. The Company shall have the right to rely on an opinion of its counsel
as to such compliance. Any share certificate issued to evidence Common Stock for
which Restricted Shares are awarded, Performance Shares were earned or for which
an Option or SAR is exercised may bear such legends and statements as the
Committee may deem advisable to assure compliance with federal and state laws
and regulations. No Option or SAR shall be exercisable, no Common Stock shall be
issued, no certificate for shares shall be delivered, and no payment shall be
made under this Plan until the Company has obtained such consent or approval as
the Committee may deem advisable from regulatory bodies having jurisdiction over
such matters.

                                   ARTICLE XI

                               GENERAL PROVISIONS

11.01. Effect on Employment. Neither the adoption of this Plan, its operation,
nor any documents describing or referring to this Plan (or any part thereof)
shall confer upon any employee any right to continue in the employ of the
Company or a Subsidiary or in any way affect any right and power of the Company
or a Subsidiary to terminate the employment of any employee at any time with or
without assigning a reason therefor.

11.02. Unfunded Plan. The Plan, insofar as it provides for grants and awards,
shall be unfunded, and the Company shall not be required to segregate any assets
that may at any time be represented by grants or awards under this Plan. Any
liability of the Company to any person with respect to any grant under this Plan
shall be based solely upon any contractual obligations that may be created
pursuant to this Plan. No such obligation of the Company shall be deemed to be
secured by any pledge of, or other encumbrance on, any property of the Company
or any Subsidiary

11.03. Rules of Construction. Headings are given to the articles and sections of
this Plan solely as a convenience to facilitate reference. The reference to any
statute, regulation, or other provision of law shall be construed to refer to
any amendment to or successor of such provision of law.

11.04. Employee Status. For purposes of determining the applicability of Code
section 422 (relating to Incentive Stock Options), or in the event that the
terms of any Option or SAR

                                       15
<PAGE>

provide that it may be exercised or that awards of Restricted Shares or
Performance Shares may become vested or earned only during employment or within
a specified period of time after Termination of Employment, the Committee may
decide to what extent leaves of absence for governmental or military service,
illness, temporary disability, or other reasons shall not be deemed
interruptions of continuous employment.

11.05 Tax Withholding. Each Participant shall, no later than the date as of
which the value of a grant of an Option or SAR, or an award of any Restricted
Shares or Performance Shares or other amount received thereunder first becomes
includable in the gross income of the Participant for Federal income tax
purposes, pay to the Company, or make arrangements satisfactory to the Committee
regarding payment of any Federal, state, or local taxes of any kind required by
law to be withheld with respect to such income. The Committee may permit payment
of such taxes to be made through the tender of cash or Common Stock, the
withholding of Common Stock or cash to be received through grants or awards of
any other arrangement satisfactory to the Committee. The Company and its
Subsidiaries shall, to the extent permitted by law, have the right to deduct any
such taxes from any payment of any kind otherwise due to the Participant.

11.06 Indemnification. No member of the Board or the Committee shall be liable
for any action or determination taken or made in good faith with respect to this
Plan nor shall any member of the Board or the Committee be liable for any
Agreement issued pursuant to this Plan or any grants or awards made under it.
Each member of the Board and the Committee shall be indemnified by the Company
against any losses incurred in such administration of the Plan, unless his or
her action constitutes serious and willful misconduct.

11.07 Other Compensation Plans. The adoption of the Plan shall not affect any
other existing or future incentive or compensation plans for directors, officers
or employees of the Company or its Subsidiaries. Moreover, the adoption of this
Plan shall not preclude the Company or its Subsidiaries from: (a) establishing
any other forms for incentive or other compensation for directors, officers or
employees of the Company or its Subsidiaries; or (b) assuming any forms of
incentives or other compensation of any person or entity in connection with the
acquisition or the business or assets, in whole or in part, of any person or
entity.

11.08 Non-Contravention of Securities Laws. Notwithstanding anything to the
contrary expressed in this Plan, any provisions hereof that vary from or
conflict with any applicable Federal or State securities laws (including any
regulations promulgated thereunder) shall be deemed to be modified to conform to
and comply with such laws.

11.09 Unenforceability of a Particular Provision. The unenforceability of any
particular provision of this document shall not affect the other provisions, and
the document shall be

                                       16
<PAGE>

construed in all respects as if such unenforceable provision were omitted.

                                   ARTICLE XII

                                    AMENDMENT

      The Board may amend or terminate this Plan from time to time; provided,
however, that no amendment may become effective until shareholder approval is
obtained if (i) the amendment increases the aggregate number of shares of Common
Stock that may be issued under the Plan or (ii) the amendment changes the class
of individuals eligible to become Participants. No amendment shall, without a
Participant's consent, adversely affect any rights of such Participant under any
outstanding Restricted Share or Performance Share award or under any Option or
SAR outstanding at the time such amendment is made.

                                  ARTICLE XIII

                                DURATION OF PLAN

      No Restricted Shares or Performance Shares may be awarded and no Option or
SAR may be granted under this Plan after October 31, 2004. Restricted Share and
Performance Share awards and Option and SAR grants made before that date shall
remain valid in accordance with their terms.

      Restricted Shares and Performance Shares may be awarded and Options and
SARs may be granted under this Plan upon its adoption by the Board, provided
that no Restricted Share or Performance Share award, or Option or SAR grant will
be effective unless this Plan is approved by a majority of the Company's
shareholders voting either in person or by proxy at a duly held shareholders'
meeting within twelve months of such adoption.

                                       17Exhibit 10.13

      EMPLOYMENT AGREEMENT made and entered into as of May 3, 1999, between
MIKRON INSTRUMENT COMPANY, INC., a New Jersey corporation (the "Company") and
GERALD D. POSNER (the "Executive").

                              W I T N E S S E T H:

      WHEREAS, the Company desires to employ the Executive, and the Executive
desires to be employed by the Company, upon the terms and conditions hereinafter
provided,

      NOW, THEREFORE, the parties hereto hereby agree as follows:

1. Employment

      (a) The Company hereby employs the Executive as an executive of the
Company (as his duties are more particularly described in paragraph 1(b) hereof)
for the period commencing on May 17, 1999 and terminating on May 16, 2003,
unless Executive's employment is terminated earlier pursuant to Article 4 of
this Agreement (the "Employment Period").

      (b) During the Employment Period, (i) the Executive shall serve as the
Company's President and Chief Executive Officer, reporting directly and solely
to the Board of Directors of the Company (the "Board"); (ii) the Executive shall
devote substantially all of his time and efforts to the Company's business,
provided, however, that the Executive may serve on a reasonable number of boards
of directors, trade associations and public service organizations, committees
and commissions; (iii) the Board shall nominate the Executive for election to
the Board; and (iv) the Executive shall stand for election as a Director of the
Company at the annual meetings of shareholders held throughout the term of his
service under this Agreement.

      (c) The Executive accepts such employment, and agrees to perform such
services as may from time to time be assigned to him by, or pursuant to the
authorization of, the Board, consistent with his position as President and Chief
Executive Officer. The Executive agrees that during the Employment Period he
will not, directly or indirectly, engage or participate in, or become employed
by, or render advisory or other services to, any business entity which competes
directly with the Company's current business, i.e., the development,
manufacture, marketing and servicing of infrared non-contact temperature
measurement devices, temperature sensors, calibration sources and thermal
imaging systems, except in the performance of his duties for the Company.

2. Compensation

      (a) Annual Base Salary. The Company shall pay to the Executive, and the
Executive shall accept from the Company, for the Executive's services during the
Employment Period, a salary at the rate of $200,000 per annum. The compensation
to be paid to the Executive as provided for in this paragraph 2(a) shall be
payable in accordance with the Company's customary employee payroll policy as in
effect from time to time during the Employment Period. On or

                                       1
<PAGE>

before November 30 of each year during the Employment Period the Board or a duly
appointed Compensation Committee of the Board (the "Committee") shall review the
Executive's employment performance during the one year (or shorter) period (the
"Review Period") which shall have ended on the immediately preceding October 31
to determine the amount of any merit increase in the Executive's salary. Any
such increase shall be effective for the one year period commencing on November
1 of the year immediately following the Review Period. The Executive's salary
shall not be decreased without his prior consent thereto in writing.

      (b) Benefits. The Executive shall be afforded the opportunity to
participate in all benefit plans established by the Company through which the
Company's employees have been, or shall be, afforded the opportunity to
purchase, or otherwise receive, any life insurance, health insurance,
hospitalization, disability, stock option and/or other fringe benefits.

      (c) Stock Options. The Company shall establish an incentive stock option
plan for the executives, employees and directors of the Company (the "Plan").
The participants in the Plan shall be entitled to purchase, pursuant to the
options to be granted thereunder (which may be "incentive stock options" within
the meaning of Section 422(b) of the Internal Revenue Code, or non-incentive
stock options) an aggregate number of shares of the Company's common stock,
one-third cent par value (the "Common Stock"), as shall be equal to
approximately 20% of the total number of shares of Common Stock which shall be
issued and outstanding upon consummation of the stock purchase agreement dated
of as May 3, 1999 between the Company and the Executive (the "post-agreement
issued and outstanding shares"). As soon as practically possible after the Plan
has been authorized by the Company's shareholders, the Company shall register
the Common Stock to be issued upon exercise of the options to be granted
thereunder for sale by the Company, and for resale by holders thereof, pursuant
to the Securities Act of 1933, as amended.

            The Executive, together with the Company's new Vice President -
Sales and Marketing, Mr. Dennis Stoneman, and such other executives as shall be
hired by the Company during the term of this Agreement upon the advice of the
Executive, shall be entitled to purchase, pursuant to the options to be granted
under the Plan an aggregate number of shares of Common Stock as shall be equal
to 10% of the total number of post-agreement issued and outstanding shares. The
exercise price for each of such options shall be $1.00 per share. The vesting of
such options shall occur at the rate of 25% per annum at the end of each Review
Period during the Employment Period, and the exercise of all vested options
shall be conditioned upon the achievement of a set of pre-determined earnings,
revenue and other performance targets to be formulated mutually by the Executive
and the Board or the committee administering the Plan (the "Performance
Targets"). The term of such options shall be the 51 month period commencing on
the date of commencement of the Employment Period. The Plan and such options
shall provide that, upon the death, disability or termination of employment of
the Executive other than "for cause," all options which shall then have vested,
or which would have vested if such event had occurred on the last day of the
then current Review Period, shall be exercisable by the Executive, or by the
person or persons to whom such options shall pass by will or by the laws of
descent and distribution, as the case may be, during the six month period
following the date of occurrence of such event, provided, that, all applicable
conditions to the exercise of such options shall have been satisfied on or
before the date of exercise thereof. Each

                                       2
<PAGE>

option granted pursuant to the Plan shall also contain such other terms,
limitations and conditions as the Board or the committee administering the Plan
shall deem appropriate pursuant to the provisions of the Plan.

            In the event that the Company's shareholders fail to authorize the
Plan, the options to be granted hereunder shall be issued as non-Plan options in
accordance with, and subject to all of the foregoing terms and conditions.

      (d) Expense Reimbursements. The Company shall reimburse the Executive for
all out of pocket travel, lodging, meal, entertainment and other expenses of a
similar nature that he shall incur while engaged in the Company's business. Such
reimbursements shall be made in accordance with the Company's customary policies
pertaining thereto as in effect from time to time during the Employment Period.

3. Confidentiality

      (a) Definitions. For purposes of this Agreement, the following definitions
shall apply:

            (i) "Inventions" shall mean all infrared non-contact temperature
measurement devices, temperature sensors, calibration sources and thermal
imaging systems, and any and all components thereof or Software incorporated
therein (collectively, the "Devices") invented, conceived or otherwise made or
developed by the Executive, in whole or in part, within the scope of his duties
during his employment by the Company, and all modifications, and enhancements
thereof, whether or not patentable or copyrightable.

            (ii) "Work Product" shall mean all Devices and any and all
components thereof in the process of being created or modified, and all other
documentation, creative works, know-how, and information pertaining to such
Devices or components thereof created or developed, in whole or in part, by the
Executive within the scope of his duties during his employment by the Company,
whether or not copyrightable, patentable or otherwise protectable, excluding
Inventions.

            (iii) "Trade Secrets" shall mean all Devices and any and all
components thereof, documentation, know-how, and information relating to the
past, present, or future business of the Company or any plans therefor, or
relating to the past, present, or future business of a third party or plans
therefor which are disclosed to the Company, which the Company does not disclose
to third parties without restrictions on use or further disclosure; provided,
however, Trade Secrets shall not include the general knowledge and experience
obtained by the Executive during his employment by the Company.

            (iv) "Proprietary Information" shall mean all Inventions, Work
Product, Trade Secrets, and any and all processes, methods, techniques,
projects, developments, plans, research data, financial data, personnel data,
customer lists and supplier lists created by or for the Company which is
maintained in confidentiality and disclosed only to other executives or
employees of the Company on a need to know basis.

                                       3
<PAGE>

            (v) "Software" shall mean each of one or more standard computer
programs (which each may consist of one or more modules or sub-programs),
together with the media upon which it resides, and all accompanying standard
documentation pertaining thereto, as well as all "derivative works" thereof,
i.e., any source code, object code, software instruction or set of software
instructions, or documentation, in human readable or machine readable form,
developed directly or indirectly by the Executive or on his behalf which is in
whole or in part based upon, or derived from, Software.

      (b) The Executive's Obligations Concerning Inventions and Work Product.

            (i) The Executive will make full and prompt disclosure to the
Company of all Inventions, improvements thereon, enhancements thereof, Work
Product, discoveries, methods, developments and works of authorship, whether or
not copyrightable or patentable, which are created, made, developed, conceived
or reduced to practice by the Executive or under his direction or jointly with
others during his employment by the Company, whether or not during normal
working hours or on the premises of the Company (all of which are collectively
referred to in this Agreement as "Developments").

            (ii) The Executive agrees to assign and the Executive does hereby
assign to the Company (or any person or entity designated by the Company) all of
his right, title and interest in and to all Developments and all related
patents, patent applications, copyrights and copyright applications. However,
this sub-paragraph 3(b)(ii) shall not apply to Developments which do not relate
to the present or planned business or research and development of the Company
and which are made and conceived by the Executive other than 1) during normal
working hours, 2) on the Company's premises; and 3) using the Company's
facilities, devices, equipment or Proprietary Information. The Executive
understands that, to the extent this Agreement shall be construed in accordance
with the laws of any state which precludes a requirement in an employment
agreement to assign certain classes of inventions made by an employee, this
sub-paragraph 3(b)(ii) shall be interpreted not to apply to any Development
which a court rules and/or the Company agrees falls within such classes.

            (iii) The Executive agrees to cooperate fully with the Company, both
during and after his employment with the Company, with respect to the
procurement, maintenance and enforcement of copyrights and patents (both in the
United States and foreign countries) relating to Developments. The Executive
shall sign all papers, including, without limitation, copyright applications,
patent applications, declarations, oaths, formal assignments, assignments of
priority rights, and powers of attorney, which the Company may deem necessary or
desirable in order to protect its rights and interests in any Development.

      (c) The Executive's Obligations Concerning Trade Secrets.

            (i) During the term of this Agreement and at all times thereafter,
the Executive shall treat Trade Secrets on a confidential basis and not disclose
them to others without the prior written permission of the Company, or use them
for any purpose other than for the performance of services for the Company.

                                       4
<PAGE>

            (ii) Trade Secrets are the Company's sole and exclusive property and
the Executive shall surrender to the Company possession of all Trade Secrets in
his possession upon any suspension or termination of his employment. If after
the suspension or termination of his employment hereunder, the Executive become
aware of any Trade Secrets in his possession, the Executive shall promptly
surrender possession thereof to the Company.

      (d) The Executive's Obligations Applicable to All Proprietary Information.

            (i) During the term of this Agreement and at all times thereafter,
the Executive shall not disclose any Proprietary Information to others outside
the Company or use the same for any unauthorized purposes without written
approval by the Board of Directors of the Company, unless and until such
Proprietary Information has become public knowledge other than through its
unauthorized dissemination by the Executive.

            (ii) The Executive agrees that all files, letters, memoranda,
reports, records, data, sketches, drawings, notebooks, Software program
diagrams, documentation, schematics and printouts in any tangible media
including, but not limited to, paper, photographs, computer disks and tapes and
other forms of human-readable and machine-readable media, containing Proprietary
Information, whether created by the Executive or others, which shall come into
his custody or possession, shall be and are the exclusive property of the
Company to be used by the Executive only in the performance of his duties for
the Company. All such tangible media or copies thereof and all other tangible
property of the Company in his custody or possession shall be delivered to the
Company, upon the earlier of 1) a request by the Company or 2) termination of
his employment. After such delivery, the Executive shall not retain any such
tangible media or copies thereof or any such other tangible property.

            (iii) The Executive agrees that his obligation not to disclose or to
use information, know-how and records of the types set forth in sub-paragraph
3(d)(i) and (ii) above, and his obligation to return tangible media and other
tangible property, set forth in sub-paragraph 3d(ii) above, also extends to such
types of information, know-how, records and tangible property of customers of
the Company or suppliers to the Company or other third parties who may have
disclosed or entrusted the same to the Company or to the Executive in the course
of the Company's business.

            (iv) The Executive shall provide the Company with all information,
documentation and assistance that it may request to perfect, enforce, or defend
the proprietary rights in or based on the Inventions, Work Product or Trade
Secrets. The Company, in its sole discretion, shall determine the extent of the
proprietary rights, if any, to be protected. All such information, documentation
and assistance shall be provided at reasonable compensation to the Executive, if
provided after any suspension or termination of his employment.

      (e) Other Agreements. The Executive hereby represents that, except as the
Executive has disclosed in writing to the Company, the Executive is not bound by
the terms of any agreement with any previous employer or other party to refrain
from using or disclosing any trade secret or confidential or proprietary
information in the course of his employment with the

                                       5
<PAGE>

Company or to refrain from competing, directly or indirectly, with the business
of such previous employer or any other party. The Executive further represents
that his performance of all the terms of this Agreement and as an employee of
the Company does not and will not breach any agreement to keep in confidence
proprietary information, knowledge or data acquired by the Executive in
confidence or in trust prior to his employment with the Company, and the
Executive will not disclose to the Company or induce the Company to use any
confidential or proprietary information or material belonging to any previous
employer or others.

      (f) United States Government Obligations. The Executive acknowledges that
the Company from time to time may have agreements with other persons or with the
United States Government, or agencies thereof, which impose obligations or
restrictions on the Company regarding Inventions made during the course of work
under such agreements or regarding the confidential nature of such work. The
Executive agrees to be bound by all such obligations and restrictions which are
made known to the Executive and to take all action necessary to discharge the
obligations of the Company under such agreements.

4. Termination:

      (a) Notwithstanding any other provision hereof, each of the Company and
the Executive may terminate the Executive's employment under this Agreement for
cause. The termination shall be evidenced by written notice thereof given by the
terminating party to the other, specifying the cause for termination and the
date of termination. For purposes hereof, the term "cause":

            (i) as it relates to the Executive, shall mean the inability of the
Executive, through medical disability including mental or physical illness, to
perform his duties under this Agreement for a period in excess of one hundred
eighty (180) consecutive days during any period of 12 consecutive months; death
of the Executive; material dishonesty relating to the business of the Company;
refusal to perform or neglect of the substantive duties assigned to the
Executive, or breach of any of the material provisions of this Agreement which,
in each case, shall not be cured within 30 days after the Executive's receipt of
written notice identifying the duties in question or the provision(s) of the
Agreement that have been breached, as the case may be, and setting forth the
facts pertaining thereto; the inability of the Company to achieve total
stockholders' equity for either of the fiscal years ended October 31, 2001 or
2002 (as reflected in the Company's audited financial statements for such years)
which shall not be less than its total stockholders' equity for the fiscal year
ended October 31, 1998; the inability of the Company to achieve the Performance
Targets for either of the fiscal years ended October 31, 2001 or 2002; or
conviction of a felony related to the business of the Company; and

            (ii) as it relates to the Company, shall mean failure to pay
compensation to the Executive when due, diminution of duties or demotion from
the position of President and Chief Executive Officer, relocation of the
Company's principal offices to a place that is located outside of a circle that
has a radius of more than 50 miles from the current address of the Company's
office or breach of any of the material provisions of this Agreement which shall
not be cured within 30 days after the Company's receipt of written notice
identifying the provision(s) of the Agreement that have been breached, and
setting forth the facts pertaining thereto.

                                       6
<PAGE>

      (b) The medical disability referred to in sub-paragraph 4(a)(i) hereof
shall be confirmed and/or rejected by an independent medical examination
performed by a licensed medical doctor located in New York, New York who shall
be chosen jointly by the Company and the Executive. The Executive agrees to
provide the Company, upon request, with all medical reports with regard to
medical disability obtained by the Executive from the Executive's physicians. In
the event the Company and the Executive can not agree on the choice of a doctor,
or either of them disagrees with the determination of the doctor they have
chosen, then the issue of disability shall be determined by arbitration in the
City of New York by the American Arbitration Association by a panel of three
physicians. The administrative costs of such proceedings shall be borne by the
Company. However, each party shall be solely responsible for payment of the fees
and disbursements of his or its respective counsel and witnesses.

      (c) The Company agrees that in the event that the Executive should be
disabled as provided above, he shall be entitled to receive from the Company,
during the periods set forth below, the difference, if any, between any
disability insurance benefits provided pursuant to a policy or policies funded
or paid for by the Company, and 100% of his salary, plus any earned but unpaid
bonus, during the first ninety days of his disability and 80% of said salary and
bonus during the next ninety days of his disability, after which 180 day period
the Executives' compensation under this Agreement shall thereupon cease during
said disability, and the Company may elect to terminate the Executive's
employment pursuant to sub-paragraph 4(a)(i) hereof.

      (d) In the event the Executive is terminated by the Company for cause in
accordance with this Article 4, the obligations of the Company under this
Agreement shall cease, except for any sums owed to the Executive, pursuant to
paragraphs 2(a) and (b) hereof for services rendered prior to such termination.

      (e) The Executive and the Company or its successor in interest shall have
the right to terminate this Agreement with thirty (30) days notice upon any
change in control of the Company (whether by merger, stock transfer or
otherwise) provided that the Company or its successor in interest shall notify
the Executive of its intention to terminate no later than ninety (90) days after
the date on which such change in control takes effect. For purposes of the
preceding sentence, a "change in control" shall be deemed to occur if: (i) any
"person" (as such term is defined in the Securities Exchange Act of 1934, as
amended) acting singly or in concert with one or more other persons, acquires
securities representing 50% or more of the combined voting power of the
Company's then outstanding securities; (ii) during any one year period,
individuals who at the beginning of such period constitute the Board and any new
director whose election by the Board or nomination for election by the Company's
shareholders was approved by a vote of at least a majority of the directors then
still in office who either were directors at the beginning of the period or
whose election or nomination for election was previously so approved, cease for
any reason to constitute a majority thereof; (iii) the shareholders of the
Company approve a merger or consolidation of the Company with any other
corporation, other than 1) a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent, in combination with the ownership of any trustee or
other fiduciary holding securities under an employee benefit plan of

                                       7
<PAGE>

the Company, at least 50% of the combined voting power of the voting securities
of the Company or such surviving entity outstanding immediately after such
merger or consolidation, or 2) a merger or consolidation effected to implement a
recapitalization of the Company (or similar transaction) in which no person
acquires more than 50% of the combined voting power of the Company's then
outstanding securities; or (iv) the shareholders approve a plan of complete
liquidation of the Company or an agreement for the sale or disposition by the
Company of all or substantially all of its assets.

      (f) In the event that this Agreement shall be terminated pursuant to the
provisions of paragraph 4(e) hereof, (i) the Company shall pay to the Executive
a lump sum severance payment equal to one year's salary calculated on the basis
of the salary in effect for the year in which termination occurs, plus any bonus
that he would be entitled to receive but for the occurrence of such termination;
and (ii) notwithstanding any provision to the contrary contained elsewhere
herein or on any option instrument evidencing the Executive's ownership of, and
rights and entitlements regarding, the options to be granted to him pursuant to
paragraph 2(c) hereof, all vesting and performance conditions, requirements and
restrictions regarding such options shall thereupon be deemed to have been
satisfied, met or waived, as the case may be, and all of such options shall be
exercisable for a period of not less than 180 days after the date of termination
of this Agreement.

5. Non-Competition:

      (a) The Executive agrees that he shall not, during the Employment Period
and for six (6) months thereafter, (i) solicit for himself, or any other person
or entity, the business of providing or servicing infrared non-contact
temperature measurement devices, temperature sensors, calibration sources and
thermal imaging systems to any customer who did business with the Company or its
affiliates within one year prior to the termination of this Agreement, or cause
any such customer to cease contracting with the Company; (ii) hire, or otherwise
seek to engage the services of, or cause the cessation of employment or
engagement by the Company of, any employee, agent, consultant, wholesaler,
independent contractor, sales or other representative who has performed services
for the Company or any of its affiliates within one year prior to the end of the
Employment Period.

      (b) The obligations in this Article 5 shall survive the termination of
this Agreement for six months. The necessity of protection of the Company
against the competition of the Executive, and the nature and scope of such
protection, has been carefully considered by the parties hereto. The parties
agree and acknowledge that the duration, scope and restrictions applicable to
the covenant not to compete described in this Article V are fair, reasonable and
necessary, that adequate compensation has been received by the Executive for
such obligations, and that these obligations do not prevent the Executive from
earning a livelihood.

      (c) The Executive agrees that if he shall violate any of the provisions of
this Article 5, the Company shall be entitled to an accounting and, if
appropriate to the violation, repayment of all profits, compensation,
commissions or other remuneration that the Executive, directly or indirectly,
may realize arising from or related to any such violation. These remedies shall
be in

                                       8
<PAGE>

addition to, and not in limitation of, any injunctive relief or other rights to
which the Company may be entitled.

6. Miscellaneous

      (a) Notices: All notices, requests, consents and other communications
required or permitted hereunder shall be in writing and shall be delivered by
hand, by facsimile transmission or by guaranteed next day overnight courier:

            (i) If to the Executive, to:

                        Gerald D. Posner
                        8 Victorian Hill
                        Manalapan, New Jersey 07726
                        Fax No. (732) 462-2575

            (ii) If to the Company, to:

                        Mikron Instrument Company, Inc.
                        16 Thornton Road
                        Oakland, New Jersey 07436
                        Attention: Steven N. Bronson, Chairman
                        Fax No. (201) 405-0090

or at such other address as either party may specify by written notice to the
other party, and each such notice, request, consent and other communication
shall for all purposes of the Agreement be treated as being effective or having
been given when delivered.

      (b) Entire Agreement: This Agreement constitutes the entire and exclusive
understanding between the parties with respect to the matters referred to
herein, and no waiver of or modification to the terms hereof shall be valid
unless in writing signed by the party to be charged and only in that specific
instance and to the extent therein set forth. All prior and contemporaneous
agreements, understandings, and representations with respect to the subject
matter of this Agreement are hereby terminated and superseded by this Agreement.

      (c) Severability: If any provision of this Agreement is invalid, illegal
or unenforceable, the balance of this Agreement shall remain in effect, and if
any provision is inapplicable to any person or circumstance, it shall
nevertheless remain applicable to all other persons and circumstances.

      (d) Non-Assignability: This Agreement is for personal services and may not
be assigned by the Executive in any manner, by operation of law or otherwise,
without the written consent of the Company. This Agreement shall be binding on
all successors and assigns of the Company.

                                       9
<PAGE>

      (e) Governing Law: This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of New Jersey applicable to
contracts made and to be performed solely within said state.

      (f) Article Headings: The Article headings herein have been inserted for
convenience of reference only and shall in no way modify, restrict or affect any
of the terms or provisions hereof.

      (g) Benefit. This Agreement will be binding upon and inure to the benefit
of the parties hereto and their respective heirs, executors, administrators
successors and assigns.

      (h) Delays; Omissions; Waivers. No delay or omission by the Company in
exercising any right under this Agreement will operate as a waiver of that or
any other right. A waiver or consent given by the Company on any one occasion is
effective only in that instance and will not be construed as a bar to or waiver
of any right on any other occasion.

      (i) Specific Performance; Indemnification. The Executive acknowledges and
agrees that, because of the unique and extraordinary nature of his services, any
breach or threatened breach of the provisions of Article 3 and this Article 5
hereof will cause irreparable injury and incalculable harm to the Company and
that it shall, accordingly, be entitled to injunctive or other equitable relief.
The foregoing, however, shall not be deemed to waive or to limit in any respect
any other right or remedy which the Company may have with respect to such
breach.

      (j) Form 3 Filing. The Company covenants and agrees that it shall prepare,
and shall timely file with the Securities and Exchange Commission (the
"Commission") an initial statement of beneficial ownership of the Company's
securities by the Executive on Form 3 promulgated by the Commission. The
Executive shall cooperate with the Company in connection with the preparation
and execution of such statement.

      (k) Dispute Resolution. All disputes arising between the parties with
regard to any of the provisions of this Agreement and/or the Executive's
employment by the Company shall be resolved by arbitration proceedings conducted
in accordance with the Commercial Arbitration Rules of the American Arbitration
Association in effect at the time of commencement of such proceedings. Such
arbitration shall be held in New York, New York before a sole arbitrator who
shall be an attorney possessing not less than ten years' experience as a
specialist in matters pertaining to executive employment. If only one party
shall be the prevailing party in any such arbitration proceeding, the arbitrator
shall include in the award to such party an amount calculated to reimburse the
prevailing party for the reasonable fees of his or its counsel (including such
counsel's disbursements) paid or payable by such prevailing party with respect
to the legal services rendered by such counsel in such proceeding.

          [The balance of this page has been left blank intentionally]

                                       10
<PAGE>

      (l) Directors' and Officers' Liability Insurance Coverage. During the term
of this Agreement the Company shall purchase and maintain one or more directors'
and officers' liability insurance policies providing the Executive with such
coverages subject to such limits as the Board may deem appropriate.

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

                                    Mikron Instrument Company, Inc.

                                    By:
                                        -----------------------------

                                        -----------------------------
                                              Gerald D. Posner

                                       11

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