Document:

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                                                                    Exhibit 10.1

                             MKS INSTRUMENTS, INC.

                 SECOND RESTATED 1995 STOCK INCENTIVE PLAN

1.    PURPOSE

The purpose of this Second Restated 1995 Stock Incentive Plan (the "Plan") of
MKS Instruments, Inc., a Massachusetts corporation (the "Company"), is to
advance the interests of the Company's stockholders by enhancing the Company's
ability to attract, retain and motivate persons who make (or are expected to
make) important contributions to the Company by providing such persons with
equity ownership opportunities and performance-based incentives and thereby
better aligning the interests of such persons with those of the Company's
stockholders. Except where the context otherwise requires, the term "Company"
shall include any present or future subsidiary corporations of MKS Instruments,
Inc. as defined in Section 424(f) of the Internal Revenue Code of 1986, as
amended, and any regulations promulgated thereunder (the "Code").

2.    ELIGIBILITY

All of the Company's employees, officers, directors, consultants and advisors
are eligible to be granted options, restricted stock, or other stock-based
awards (each, an "Award") under the Plan. Any person who has been granted an
Award under the Plan shall be deemed a "Participant."

3.    ADMINISTRATION, DELEGATION

      a.    ADMINISTRATION BY BOARD OF DIRECTORS. The Plan will be administered
by the Board of Directors of the Company (the "Board"). The Board shall have
authority to grant Awards and to adopt, amend and repeal such administrative
rules, guidelines and practices relating to the Plan as it shall deem advisable.
The Board may correct any defect, supply any omission or reconcile any
inconsistency in the Plan or any Award in the manner and to the extent it shall
deem expedient to carry the Plan into effect and it shall be the sole and final
judge of such expediency. All decisions by the Board shall be made in the
Board's sole discretion and shall be final and binding on all persons having or
claiming any interest in the Plan or in any Award. No director or person acting
pursuant to the authority delegated by the Board shall be liable for any action
or determination relating to or under the Plan made in good faith.

      b.    DELEGATION TO EXECUTIVE OFFICERS. To the extent permitted by
applicable law, the Board may delegate to one or more executive officers of the
Company, who are also members of the Board, if required by law, the power to
make Awards and exercise such other powers under the Plan as the Board may
determine, provided that the Board shall fix the maximum number of shares
subject to Awards and the maximum number of shares for any one Participant to be
made by such executive officers. The Chief Executive Officer of the Company may
grant Awards to non-executive officer employees of the Company in amounts not to
exceed 35,000 shares to any one employee.

      c.    APPOINTMENT OF COMMITTEES. To the extent permitted by applicable
law, the Board may delegate any or all of its powers under the Plan to one or
more committees or
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subcommittees of the Board (a "Committee"). If and when the common stock, no par
value per share, of the Company (the "Common Stock) is registered under the
Securities Exchange Act of 1934 (the "Exchange Act"), the Board shall appoint
one such Committee of not less than two members, each member of which shall be
an "outside director" within the meaning of Section 162(m) of the Code and a
"non-employee director" as defined in Rule 16b-3 promulgated under the Exchange
Act." All references in the Plan to the "Board" shall mean the Board or a
Committee of the Board or the executive officer referred to in Section 3(b) to
the extent that the Board's powers or authority under the Plan have been
delegated to such Committee or executive officer.

4.    STOCK AVAILABLE FOR AWARDS

      a.    NUMBER OF SHARES. Effective January 1, 2002 and subject to
adjustment under Section 4(c), the number of shares of Common Stock available
for Awards under the Plan: (i) shall annually increase by 5% of the total shares
of the Company's outstanding Common Stock on January 1 of each year; and (ii) in
the event of an increase in the total shares of the Company's Common Stock after
January 1 of any such year in connection with the acquisition of any
corporation, partnership or other business entity by the Company (whether by
merger, stock purchase or otherwise), shall increase by 5% of such increased
amount. Such increases shall occur until such time as the aggregate number of
shares of Common Stock which may be issued under the Plan is 15,000,000 shares,
subject to adjustment under Section 4(c)." If any Award expires or is
terminated, surrendered or canceled without having been fully exercised or is
forfeited in whole or in part or results in any Common Stock not being issued,
the unused Common Stock covered by such Award shall again be available for the
grant of Awards under the Plan, subject, however, in the case of Incentive Stock
Options (as hereinafter defined), to any limitation required under the Code.
Shares issued under the Plan may consist in whole or in part of authorized but
unissued shares or treasury shares. All share amounts set forth in this plan
reflect the 2,110-for-1 stock split approved by the Board of Directors of the
Company on December 31, 1997 (the "1997 Stock Split").

      b.    PER-PARTICIPANT LIMIT. Subject to adjustment under Section 4(c), for
Awards granted after the Common Stock is registered under the Exchange Act, the
maximum number of shares with respect to which Awards may be granted to any
Participant under the Plan shall be 1,350,000 per calendar year. The
per-participant limit described in this Section 4(b) shall be construed and
applied consistently with Section 162(m) of the Code.

      c.    ADJUSTMENT TO COMMON STOCK. In the event of any stock split, stock
dividend, recapitalization, reclassification, reorganization, merger,
consolidation, combination, exchange of shares, liquidation, spin-off or other
similar change in capitalization or event, or any distribution to holders of
Common Stock other than a normal cash dividend, (i) the number and class of
securities available under this Plan, (ii) the number and class of security and
exercise price per share subject to each outstanding Option, (iii) the
repurchase price per security subject to each outstanding Restricted Stock
Award, (iv) the per-Participant limit set forth in Section 4(b) and (v) the
terms of each other outstanding stock-based Award shall be appropriately
adjusted by the Company (or substituted Awards may be made, if applicable) to
the extent the Board shall determine, in good faith, that such an adjustment (or
substitution) is necessary and
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appropriate. If this Section 4(c) applies and Section 8(e)(1) also applies to
any event, Section 8(e)(1) shall be applicable to such event and this Section
4(c) shall not be applicable.

5.    STOCK OPTIONS

      a.    GENERAL. The Board may grant options to purchase Common Stock (each,
an "Option") and determine the number of shares of Common Stock to be covered by
each Option, the exercise price of each Option and the conditions and
limitations applicable to the exercise of each Option, including conditions
relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option which is not intended to be an Incentive Stock
Option (as hereinafter defined) shall be designated a "Nonstatutory Stock
Option."

      b.    INCENTIVE STOCK OPTIONS. An Option that the Board intends to be an
"incentive stock option" as defined in Section 422 of the Code (an "Incentive
Stock Option") shall only be granted to employees of the Company and shall be
subject to and shall be construed consistently with the requirements of Section
422 of the Code. The Company shall have no liability to a Participant, or any
other party, if an Option (or any part thereof) which is intended to be an
Incentive Stock Option is not an Incentive Stock Option.

      c.    EXERCISE PRICE.  The Board shall establish the exercise price
at the time each Option is granted and specify it in the applicable option
agreement.

      d.    DURATION OF OPTIONS.  Each Option shall be exercisable at such
times and subject to such terms and conditions as the Board may specify in
the applicable option agreement.  No Option will be granted for a term in
excess of 10 years.

      e.    EXERCISE OF OPTION.  Options may be exercised only by delivery
to the Company of a written notice of exercise signed by the proper person
together with payment in full as specified in Section 5(f) for the number
of shares for which the Option is exercised.

      f.    PAYMENT UPON EXERCISE.  Common Stock purchased upon the
exercise of an Option granted under the Plan shall be paid for as follows:

            i.    in cash or by check, payable to the order of the Company;

            ii.    except as the Board may otherwise provide in an Option
Agreement, delivery of an irrevocable and unconditional undertaking by a
creditworthy broker to deliver promptly to the Company sufficient funds to pay
the exercise price, delivery by the Participant to the Company of a copy of
irrevocable and unconditional instructions to a creditworthy broker to deliver
promptly to the Company cash or a check sufficient to pay the exercise price, or
by delivery of shares of Common Stock owned by the Participant valued at the
fair market value as determined by the Board in good faith ("Fair Market
Value"), which Common Stock was owned by the Participant at least six months
prior to such delivery;

            iii.    to the extent permitted by the Board and explicitly provided
in an Option Agreement (i) by delivery of a promissory note of the Participant
to the Company on terms determined by the Board, or (ii) by payment of such
other lawful consideration as the Board may determine; or
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            iv.    any combination of the above permitted forms of payment.

6.    RESTRICTED STOCK

      a.    GRANTS. The Board may grant Awards entitling recipients to acquire
shares of Common Stock, subject to the right of the Company to repurchase all or
part of such shares at their issue price or other stated or formula price (or to
require forfeiture of such shares if issued at no cost) from the recipient in
the event that conditions specified by the Board in the applicable Award are not
satisfied prior to the end of the applicable restriction period or periods
established by the Board for such Award (each, "Restricted Stock Award").

      b.    TERMS AND CONDITIONS. The Board shall determine the terms and
conditions of any such Restricted Stock Award, including the conditions for
repurchase (or forfeiture) and the issue price, if any. Any stock certificates
issued in respect of a Restricted Stock Award shall be registered in the name of
the Participant and, unless otherwise determined by the Board, deposited by the
Participant, together with a stock power endorsed in blank, with the Company (or
its designee). At the expiration of the applicable restriction periods, the
Company (or such designee) shall deliver the certificates no longer subject to
such restrictions to the Participant or if the Participant has died, to the
beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the
Participant's death (the "Designated Beneficiary"). In the absence of an
effective designation by a Participant, Designated Beneficiary shall mean the
Participant's estate.

7.    OTHER STOCK-BASED AWARDS

The Board shall have the right to grant other Awards based upon the Common
Stock, having such terms and conditions as the Board may determine including the
grant of shares based upon certain conditions, the grant of securities
convertible into Common Stock and the grant of stock appreciation rights.

8.    GENERAL PROVISIONS APPLICABLE TO AWARDS

      a.    TRANSFERABILITY OF AWARDS. Except as the Board may otherwise
determine or provide in an Award, Awards shall not be sold, assigned,
transferred, pledged or otherwise encumbered by the person to whom they are
granted, either voluntarily or by operation of law, except by will or the laws
of descent and distribution, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent
relevant in the context, shall include references to authorized transferees.

      b.    DOCUMENTATION.  Each Award under the Plan shall be evidenced
by a written instrument in such form as the Board shall determine.  Each
Award may contain terms and conditions in addition to those set forth in
the Plan.

      c.    BOARD DISCRETION.  Except as otherwise provided by the Plan,
each type of Award may be made alone or in addition or in relation to any
other type of Award.  The terms of each type of Award need not be
identical, and the Board need not treat Participants uniformly.

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      d.    TERMINATION OF STATUS. The Board shall determine the effect on an
Award of the disability, death, retirement, authorized leave of absence or other
change in the employment or other status of a Participant and the extent to
which, and the period during which, the Participant, the Participant's legal
representative, conservator, guardian or Designated Beneficiary may exercise
rights under the Award.

      e.    ACQUISITION EVENTS

            (1)   CONSEQUENCES OF ACQUISITION EVENTS. Upon the occurrence of an
Acquisition Event (as defined below), or the execution by the Company of any
agreement with respect to an Acquisition Event, the Board shall take any one or
more of the following actions with respect to then outstanding Awards: (i)
provide that outstanding Options shall be assumed, or equivalent Options shall
be substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), provided that any such Options substituted for Incentive Stock Options
shall satisfy, in the determination of the Board, the requirements of Section
424(a) of the Code; (ii) if the acquisition or succeeding corporation refuses or
is unable to assume outstanding Options or grant Options in substitution
therefor pursuant to clause (i), upon written notice to the Participants,
provide that all then unexercised Options will become exercisable in full as of
a specified time (the "Acceleration Time") prior to the Acquisition Event and
will terminate immediately prior to the consummation of such Acquisition Event,
except to the extent exercised by the Participants between the Acceleration Time
and the consummation of such Acquisition Event; (iii) in the event of an
Acquisition Event under the terms of which holders of Common Stock will receive
upon consummation thereof a cash payment for each share of Common Stock
surrendered pursuant to such Acquisition Event (the "Acquisition Price"),
provide that all outstanding Options shall terminate upon consummation of such
Acquisition Event and each Participant shall receive, in exchange therefor, a
cash payment equal to the amount (if any) by which (A) the Acquisition Price
multiplied by the number of shares of Common Stock subject to such outstanding
Options (whether or not then exercisable), exceeds (B) the aggregate exercise
price of such Options; (iv) provide that all Restricted Stock Awards then
outstanding shall become free of all restrictions prior to the consummation of
the Acquisition Event; and (v) provide that any other stock-based Awards
outstanding (A) shall become exercisable, realizable or vested in full, or shall
be free of all conditions or restrictions, as applicable to each such Award,
prior to the consummation of the Acquisition Event, or (B), if applicable, shall
be assumed, or equivalent Awards shall be substituted, by the acquiring or
succeeding corporation (or an affiliate thereof).

            An "Acquisition Event" shall mean: (a) any merger or consolidation
which results in the voting securities of the Company outstanding immediately
prior thereto representing immediately thereafter (either by remaining
outstanding or by being converted into voting securities of the surviving or
acquiring entity) less than 50% of the combined voting power of the voting
securities of the Company or such surviving or acquiring entity outstanding
immediately after such merger or consolidation; (b) any sale of all or
substantially all of the assets of the Company; or (c) the complete liquidation
of the Company.

            (2)   ASSUMPTION OF OPTIONS UPON CERTAIN EVENTS. The Board may grant
Awards under the Plan in substitution for stock and stock-based awards held by
employees of another corporation who become employees of the Company as a result
of a
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merger or consolidation of the employing corporation with the Company or
the acquisition by the Company of property or stock of the employing
corporation. The substitute Awards shall be granted on such terms and conditions
as the Board considers appropriate in the circumstances.

      f.    WITHHOLDING. Each Participant shall pay to the Company, or make
provision satisfactory to the Board for payment of, any taxes required by law to
be withheld in connection with Awards to such Participant no later than the date
of the event creating the tax liability. The Board may allow Participants to
satisfy such tax obligations in whole or in part in shares of Common Stock,
including shares retained from the Award creating the tax obligation, valued at
their Fair Market Value; provided, however, that the total tax withholding where
stock is being used to satisfy such tax obligations cannot exceed the Company's
minimum statutory withholding obligations (based on minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes,
that are applicable to such supplemental taxable income). The Company may, to
the extent permitted by law, deduct any such tax obligations from any payment of
any kind otherwise due to a Participant.

      g.    AMENDMENT OF AWARD. The Board may amend, modify or terminate any
outstanding Award, including but not limited to, substituting therefor another
Award of the same or a different type, changing the date of exercise or
realization, and converting an Incentive Stock Option to a Nonstatutory Stock
Option, provided that the Participant's consent to such action shall be required
unless the Board determines that the action, taking into account any related
action, would not materially and adversely affect the Participant.

      h.    CONDITIONS ON DELIVERY OF STOCK. The Company will not be obligated
to deliver any shares of Common Stock pursuant to the Plan or to remove
restrictions from shares previously delivered under the Plan until (i) all
conditions of the Award have been met or removed to the satisfaction of the
Company, (ii) in the opinion of the Company's counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied,
including any applicable securities laws and any applicable stock exchange or
stock market rules and regulations, and (iii) the Participant has executed and
delivered to the Company such representations or agreements as the Company may
consider appropriate to satisfy the requirements of any applicable laws, rules
or regulations.

      i.    ACCELERATION. The Board may at any time provide that any Options
shall become immediately exercisable in full or in part, that any Restricted
Stock Awards shall be free of all restrictions or that any other stock-based
Awards may become exercisable in full or in part or free of some or all
restrictions or conditions, or otherwise realizable in full or in part, as the
case may be.

9.    MISCELLANEOUS

      a.    NO RIGHT TO EMPLOYMENT OR OTHER STATUS. No person shall have any
claim or right to be granted an Award, and the grant of an Award shall not be
construed as giving a Participant the right to continued employment or any other
relationship with the Company. The Company expressly reserves the right at any
time to dismiss or otherwise terminate its relationship with a Participant free
from any liability or claim under the Plan, except as expressly provided in the
applicable Award.

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      b.    NO RIGHTS AS STOCKHOLDER. Subject to the provisions of the
applicable Award, no Participant or Designated Beneficiary shall have any rights
as a stockholder with respect to any shares of Common Stock to be distributed
with respect to an Award until becoming the record holder of such shares.

      c.    EFFECTIVE DATE AND TERM OF PLAN. The Plan shall become effective on
the date on which it is adopted by the Board, but no Award granted to a
Participant designated as subject to Section 162(m) by the Board shall become
exercisable, vested or realizable, as applicable to such Award, unless and until
the Plan has been approved by the Company's stockholders. No Awards shall be
granted under the Plan after the completion of ten years from the earlier of
(i) the date on which the Plan was adopted by the Board or (ii) the date the
Plan was approved by the Company's stockholders, but Awards previously granted
may extend beyond that date.

      d.    AMENDMENT OF PLAN. The Board may amend, suspend or terminate the
Plan or any portion thereof at any time, provided that no Award granted to a
Participant designated as subject to Section 162(m) by the Board after the date
of such amendment shall become exercisable, realizable or vested, as applicable
to such Award (to the extent that such amendment to the Plan was required to
grant such Award to a particular Participant), unless and until such amendment
shall have been approved by the Company's stockholders.

      e.    STOCKHOLDER APPROVAL.  For purposes of this Plan, stockholder
approval shall mean approval by a vote of the stockholders in accordance
with the requirements of Section 162(m) of the Code.

      f.    GOVERNING LAW.  The provisions of the Plan and all Awards made
hereunder shall be governed by and interpreted in accordance with the laws
of The Commonwealth of Massachusetts, without regard to any applicable
conflicts of law rules or provisions.

                                        Adopted by the Board of Directors on
                                        November 30, 1995

                                        Approved by the Stockholders on May
                                        17, 1996

                                        Amended and Restated by the Board of
                                        Directors on December 31, 1997

                                        Amended and Restated by the
                                        Stockholders on January 9, 1998

                                        Amended and Restated by the Board of
                                        Directors on August 1, 2002<PAGE>
                                                                   EXHIBIT 10.51

                              EMPLOYMENT AGREEMENT

         This Employment Agreement (the "Agreement") is made by and between BTU
International, Inc. (the "Company"), a Delaware corporation, and Mark R.
Rosenzweig (the "Executive"), effective as of this 14th day of June, 2002.

         WHEREAS, the operations of the Company and its Affiliates are a complex
matter requiring direction and leadership in a variety of arenas, including
financial, strategic planning, regulatory, community relations and others;

         WHEREAS, the Executive is possessed of certain experience and expertise
that qualify him to provide the direction and leadership required by the Company
and its Affiliates; and

         WHEREAS, subject to the terms and conditions hereinafter set forth, the
Company therefore wishes to employ the Executive as its Chief Executive Officer
and the Executive wishes to accept such employment;

         NOW, THEREFORE, in consideration of the foregoing premises and the
mutual promises, terms, provisions and conditions set forth in this Agreement,
the parties hereby agree:

         1.       EMPLOYMENT. Subject to the terms and conditions set forth in
this Agreement, the Company hereby offers and the Executive hereby accepts
employment.

         2.       TERM. Subject to earlier termination as hereafter provided,
this Agreement shall have an original term of twenty-four (24) months commencing
on the first day of the Executive's employment hereunder (the "First Day of
Employment") and shall be automatically extended thereafter for an indefinite
term, unless either party provides written notice to the other at least six
months prior to the expiration of the original term that the Agreement is not to
be extended. The term of this Agreement, as may be extended or renewed, is
hereafter referred to as "the term of this Agreement" or "the term hereof."

         3.       CAPACITY AND PERFORMANCE.

                  (a)      During the term hereof, the Executive shall serve the
Company as its Chief Executive Officer. The Executive shall comply with the
lawful directives of the Board of Directors of the Company (the "Board") and
shall perform such duties and responsibilities, commensurate with his position
as

<PAGE>

         Chief Executive Officer, on behalf of the Company and its Affiliates as
may from time to time be prescribed by the Board or its designee(s). In
addition, the Company shall obtain all of the necessary director and/ or
stockholder approvals required to elect the Executive to the Company's Board of
Directors to serve for an initial period beginning on the [First Day of
Employment], and ending on the date of the next annual meeting of stockholders
of the Company. During the term hereof, the Company shall use its best efforts
to assure that the nomination of the Executive is included as part of the
Company's slate of directors to be recommended for election by the stockholders
at each appropriate annual meeting of the stockholders, provided that the
Executive is otherwise eligible for such election; however, the failure of the
stockholders to so elect the Executive shall not constitute Good Reason for
termination by the Executive hereunder. The Company shall have the right to
remove the Executive from the Board of Directors at the time his employment
hereunder is terminated for any reason, including expiration of the term set
forth in Paragraph 2.

                  (b)      During the term hereof, the Executive shall be
employed by the Company on a full-time basis and shall perform and discharge,
faithfully, diligently and to the best of his ability, his duties and
responsibilities hereunder.

                  (c)      During the term hereof, the Executive shall devote
his full business time and his best efforts, business judgment, skill and
knowledge exclusively to the advancement of the business and interests of the
Company and its Affiliates and to the discharge of his duties and
responsibilities hereunder. The Executive shall not engage in any other business
activity or serve in any industry, trade, professional, governmental or academic
position during the term of this Agreement, except as may be expressly approved
in advance by the Board in writing, which approval shall not be unreasonably
withheld; provided, however, that the Executive shall not be prohibited from
devoting time to non-business related activities, so long as such activities do
not prevent or interfere with the Executive's performance of his obligations
hereunder.

         4.       COMPENSATION AND BENEFITS. As compensation for all services
performed by the Executive under and during the term hereof and subject to
performance of the Executive's duties and of the obligations of the Executive to
the Company and its Affiliates, pursuant to this Agreement or otherwise:

                  (a)      BASE SALARY. During the term hereof, the Company
shall pay the Executive a base salary at the rate of Three Hundred Thirty
Thousand Dollars ($330,000) per annum, payable in accordance with the payroll
practices of the Company for its executives (the "Base Salary"); provided,
however, that the Base Salary will be subject to any reduction in effect from
time to time that applies to executives of the Company generally. Such Base
Salary shall be subject to increase in the sole discretion of the Board, based
upon review of the Executive's performance by the Board from time to time, but
in no event shall the Board review the Executive's performance less than
annually.

                  (b)      BONUS COMPENSATION. During the term hereof, the
Executive shall be entitled to participate in the Company's Executive Bonus Plan
(the "Plan") in accordance with the terms thereof, as such terms may be modified
or amended by the Company from time to

<PAGE>

time. In accordance with the Plan, the amount of bonus compensation will be
determined by the Board, based on its assessment, in its sole discretion, of the
Company's achievement of performance targets which will be established annually
by the Board after consultation with the Executive (the "Performance Targets").
The amount of bonus compensation for which the Executive will be eligible each
fiscal year will range from zero to seventy percent (70%) of the sum paid to the
Executive as salary over that fiscal year (the "Paid-Out Salary"), and will be
thirty-five percent (35%) of the Paid-Out Salary if the Board determines that
the Company has achieved all of the Performance Targets (the "Bonus"). For
fiscal year 2002, the Bonus, if any, will be pro-rated based on the number of
days during fiscal year 2002 the Executive was employed by the Company. In
accordance with the Plan, except as set forth in Paragraphs 5(a), 5(b), 5(d) and
5(f) below, the Executive shall not be eligible to receive any portion of the
Bonus for any fiscal year in which he is not employed by the Company on the date
that bonus compensation payments are distributed.

                  (c)      STOCK OPTIONS. Promptly following the First Day of
Employment, the Company shall grant to the Executive an option to purchase One
Hundred Fifty Thousand (150,000) shares of the common stock of the Company at a
price per share equivalent to the fair market value on the First Day of
Employment (the "Options"). The Options are not intended to qualify as incentive
stock options under Section 422 of the Internal Revenue Code of 1986. The shares
which are subject to the Options shall vest and become exercisable over a four
year period and shall expire on the fifth (5th) anniversary of the day
immediately preceding the date the Options were granted, as set forth in the
Company's 1993 Equity Incentive Plan, as may be amended from time to time (the
"Equity Incentive Plan") and the option certificates. The Option shall be
subject to a stock option grant agreement, the Equity Incentive Plan and such
other restrictions as are generally applicable to stock options issued to
employees of the Company, as each may be amended from time to time. The grant of
stock options to the Executive under this Agreement is subject to the Executive
signing the applicable stock option grant agreement. The Executive shall not be
eligible to receive any stock options, restricted stock or other equity of the
Company, whether under an equity incentive plan or otherwise, except as
expressly provided in this Agreement or as otherwise expressly authorized for
him individually by the Board.

                  (d)      RESTRICTED STOCK. Promptly following the First Day of
Employment, the Company shall grant to the Executive Twenty Thousand (20,000)
shares of restricted common stock of the Company (the "Restricted Shares"). The
Restricted Shares will vest during the Executive's employment hereunder in
accordance with the following schedule: (i) ten thousand (10,000) Restricted
Shares will vest twelve months after the First Day of Employment; and (ii) the
remaining ten thousand (10,000) Restricted Shares will vest twenty-four months
after the First Day of Employment. The Restricted Shares shall be subject to all
terms and provisions of any applicable agreement or plan relating to restricted
stock of the Company, including the Equity Incentive Plan and other restrictions
as are generally applicable to restricted stock issued to employees of the
Company, as each may be amended from time to time. Notwithstanding anything to
the contrary contained herein or in any applicable agreement or plan relating to
restricted stock of the Company, if the Executive has made a timely election
pursuant to Section 83(b) of the Internal Revenue Code, as amended, with respect
to the Restricted Shares (the "83(b) Election"), then, upon the termination of
the
<PAGE>

Executive's employment hereunder: (A) pursuant to Sections 5(a), 5(b), or 5(d)
of this Agreement, the Company shall either, in its sole discretion: (i) cause
to immediately vest and become fully exercisable all of the Restricted Shares
that are not yet vested and exercisable; or (ii) immediately cancel the
Restricted Shares that are not yet vested and exercisable and reimburse the
Executive for the amount of taxes he paid to the Internal Revenue Service in
connection with the 83(b) Election, provided the Executive submits satisfactory
substantiation and documentation as requested by the Company; (B) pursuant to
Section 5(f) of this Agreement during the first year of the Executive's
employment hereunder, the Company shall either, in its sole discretion: (i)
cause to immediately vest and become fully exercisable the Restricted Shares
described in 4(d)(i) above, or (ii) immediately cancel the Restricted Shares
described in 4(d)(i) above and reimburse the Executive for the amount of taxes
he paid to the Internal Revenue Service in connection with the 83(b) Election
with respect to such shares, provided the Executive submits satisfactory
substantiation and documentation as requested by the Company, and, in either
case, cause to immediately vest and become fully exercisable the Restricted
Shares described in 4(d)(ii) above; or (C) pursuant to Section 5(f) of this
Agreement during the second year of the Executive's employment hereunder, the
Company shall cause to immediately vest and become fully exercisable the
Restricted Shares described in Section 4(d)(ii) above (the "Restricted Stock
Benefit").

                  (e)      VACATIONS. During the term hereof, the Executive
shall be entitled to up to four (4) weeks of vacation per year, to be taken at
such times and intervals as shall be determined by the Executive, subject to the
reasonable business needs of the Company. Vacation shall otherwise be governed
by the policies of the Company, as in effect from time to time.

                  (f)      OTHER BENEFITS. During the term hereof and subject to
any contribution therefor generally required of executives of the Company, the
Executive shall be entitled to participate in any and all employee benefit plans
from time to time in effect for executives of the Company generally, except to
the extent such plans are in a category of benefit otherwise provided to the
Executive (e.g., severance pay). Such participation shall be subject to the
terms of the applicable plan documents and generally applicable Company
policies. The Company may alter, modify, add to or delete its employee benefit
plans at any time as it, in its sole judgment, determines to be appropriate,
without recourse by the Executive. In addition, during the term hereof, the
Company shall: (i) lease on behalf of the Executive, or reimburse the Executive
for the cost equivalent of leasing, a Mercedes E320 or equivalent automobile;
and (ii) reimburse the Executive for the cost of gasoline, routine maintenance
and automobile insurance associated with the leased automobile; provided the
Executive submits satisfactory documentation as may be specified by the Company
(the "Automobile Benefit"). In addition, during the term hereof, the Company
shall provide for an additional term life insurance benefit for the Executive
with a death benefit not less than two (2) times the Executive's Base Salary, to
be payable to such beneficiaries as shall be designated by the Executive (the
"Life Insurance Benefit").

                  (g)      BUSINESS EXPENSES. The Company shall pay or reimburse
the Executive for all reasonable business expenses incurred or paid by the
Executive in the performance of his duties and responsibilities hereunder,
subject to any reasonable limit and

<PAGE>

other reasonable restrictions on such expenses set by the Board and subject to
such reasonable substantiation and documentation as may be specified by the
Company from time to time.

         5.       TERMINATION OF EMPLOYMENT AND SEVERANCE BENEFITS.
Notwithstanding the provisions of Section 2 hereof, the Executive's employment
hereunder shall terminate prior to the expiration of the term under the
following circumstances:

                  (a)      DEATH. In the event of the Executive's death during
the term hereof, the Executive's employment hereunder shall immediately and
automatically terminate. For purposes of this Agreement, the date of termination
of the Executive's employment hereunder is referred to as the "Separation Date."
In such event, the Company shall pay to the Executive's designated beneficiary
or, if no beneficiary has been designated by the Executive, to his estate, (i)
the Base Salary earned but not paid through the Separation Date, (ii) pay for
any vacation time earned but not used through the Separation Date, (iii) any
Bonus for the fiscal year preceding the year in which the Separation Date occurs
that was earned but had not yet been paid; (iv) provided that the Executive was
employed for at least one hundred eighty (180) days during the fiscal year in
which the Separation Date occurs, any Bonus for such fiscal year, pro-rated
based on the number of days during such fiscal year the Executive was employed
by the Company; and (v) any business expenses incurred by the Executive but that
had not yet been reimbursed on the Separation Date, provided that such expenses
and the required substantiation and documentation are submitted within thirty
(30) days of termination and that such expenses are reimbursable under Company
policy (all of the foregoing, "Final Compensation)." In addition, if the
Executive made an 83(b) Election, the Company shall provide the Restricted Stock
Benefit to the Executive's designated beneficiary or, if no beneficiary has been
designated by the Executive, to his estate. The Company shall have no further
obligation to the Executive hereunder.

                  (b)      DISABILITY.

                           (i)      The Company may terminate the Executive's
         employment hereunder, upon notice to the Executive, in the event that
         the Executive becomes disabled during his employment hereunder through
         any illness, injury, accident or condition of either a physical or
         psychological nature and, as a result, is unable to perform
         substantially all of his duties and responsibilities hereunder, with or
         without reasonable accommodation, for ninety (90) consecutive calendar
         days or an aggregate of one hundred twenty (120) days during any period
         of three hundred and sixty-five (365) consecutive calendar days. In the
         event of such termination, the Company shall have no further obligation
         to the Executive, other than for payment of Final Compensation and, if
         the Executive made an 83(b) Election, the Company shall provide the
         Restricted Stock Benefit to the Executive.

                           (ii)     The Board may designate another employee to
         act in the Executive's place during any period of the Executive's
         disability. Notwithstanding any such designation, the Executive shall
         continue to receive the Base Salary in accordance with Section 4(a) and
         benefits in accordance with Section 4(f), to the extent permitted by
         the then-current terms of the applicable benefit plans, until the

<PAGE>

         Executive becomes eligible for disability income benefits under the
         Company's disability income plan or until the termination of his
         employment, whichever shall first occur.

                           (iii)    While receiving disability income payments
         under the Company's disability income plan, the Executive shall not be
         entitled to receive any Base Salary under Section 4(a) hereof, but
         shall continue to participate in Company benefit plans in accordance
         with Section 4(f) and the terms of such plans, until the termination of
         his employment.

                           (iv)     If any question shall arise as to whether
         during any period the Executive is disabled through any illness,
         injury, accident or condition of either a physical or psychological
         nature so as to be unable to perform substantially all of his duties
         and responsibilities hereunder, the Executive may, and at the request
         of the Company shall, submit to a medical examination by a physician
         selected by the Company to whom the Executive or his duly appointed
         guardian, if any, has no reasonable objection to determine whether the
         Executive is so disabled and such determination shall for the purposes
         of this Agreement be conclusive of the issue. If such question shall
         arise and the Executive shall fail to submit to such medical
         examination, the Company's determination of the issue shall be binding
         on the Executive.

                  (c)      BY THE COMPANY FOR CAUSE. The Company may terminate
the Executive's employment hereunder for Cause at any time upon notice to the
Executive setting forth in reasonable detail the nature of such Cause. The
following events shall constitute Cause for termination:

                           (i)      The final written determination by the Board
         of Directors of the Company, after 30 days' prior written notice to the
         Executive and the opportunity for the Executive to be heard by the
         Board of Directors, that the Executive has materially failed to perform
         his duties and responsibilities to the Company or any of its Affiliates
         (other than by reason of disability), or acted in a materially
         negligent manner with respect to his duties and responsibilities to the
         Company or any of its Affiliates;

                           (ii)     The final written determination by the Board
         of Directors of the Company, after 30 days' prior written notice to the
         Executive and the opportunity for the Executive to be heard by the
         Board of Directors, that the Executive has materially breached any
         material provision of this Agreement or any other agreement with the
         Company or any of its Affiliates;

                           (iii)    The commission of fraud, embezzlement or
         theft by the Executive with respect to the Company or its Affiliates;
         or

                           (iv)     The commission by the Executive of any
         felony or any other crime involving dishonesty or moral turpitude.
<PAGE>
Upon the giving of notice of termination of the Executive's employment hereunder
for Cause, the Company shall have no further obligation to the Executive, other
than for (i) the Base Salary earned but not paid through the Separation Date,
(ii) pay for any vacation time earned but not used through the Separation Date,
(iii) any Bonus for the fiscal year preceding the year in which the Separation
Date occurs that was earned but had not yet been paid; and (iv) any business
expenses incurred by the Executive but that had not yet been reimbursed on the
Separation Date, provided that such expenses and the required substantiation and
documentation are submitted within thirty (30) days of termination and that such
expenses are reimbursable under Company policy Final Compensation.

                  (d)      BY THE COMPANY OTHER THAN FOR CAUSE AND TERMINATION
BY THE EXECUTIVE FOR GOOD REASON. The Company may terminate the Executive's
employment hereunder other than for Cause at any time. For purposes hereof, the
election by the Company not to renew the term of this Agreement pursuant to
Section 2 above shall for all purposes be deemed a termination by the Company
other than for Cause, and in such event, the Executive shall be entitled to all
of the rights and benefits set forth in this Paragraph 5(d) as of the expiration
of the term of this Agreement. The Executive may terminate this Agreement at any
time for Good Reason. "Good Reason" shall mean any of the following
circumstances unless remedied by the Company within thirty (30) days after
receipt of written notification from the Executive that such circumstances exist
or have occurred: (i) material diminution in the nature or scope of the
Executive's responsibilities, duties or authority; provided, however, that any
diminution of the business of the Company or any of its Affiliates shall not
constitute Good Reason; (ii) material reduction of the Executive's compensation
and/or benefits, other than any reduction in effect from time to time that
applies to the base salaries of executives of the Company generally, as provided
in Paragraph 4(a); or (iii) any material failure by the Company to comply with
any of the material provisions of this Agreement.

         In the event of such termination by the Company other than for Cause or
by the Executive for Good Reason: (A) during the first year of the Executive's
employment hereunder, in addition to Final Compensation, for the number of
months equal to the difference between (y) twenty-four (24) and (z) the number
of months the Executive was employed hereunder, the Company shall continue to
pay the Executive the Base Salary at the rate in effect on the Separation Date;
or (B) during the second year of the Executive's employment hereunder, in
addition to Final Compensation, for a period of twelve months following the
Separation Date the Company shall continue to pay the Executive the Base Salary
at the rate in effect on the date of termination; or (C) during any extension
term of this Agreement, in addition to Final Compensation, for a period of
twelve months following the Separation Date the Company shall continue to pay
the Executive the Base Salary at the rate in effect on the date of termination,
provided the Executive makes himself available to perform a reasonable amount of
transition services during the first three months following the Separation Date
(all of the foregoing, "Severance Payments"). In addition, if the Executive made
an 83(b) Election, the Company shall provide the Restricted Stock Benefit to the
Executive. The Severance Payments will be calculated using the Base Salary in
effect on the Separation Date, as modified by any reduction then in effect with
respect to the base salaries of executives of the Company generally. The
Severance Payments will be offset by any amount the Executive earns through
other employment while receiving the Severance Payments.
<PAGE>

         In addition to the benefits outlined above, the Company shall continue
the Automobile Benefit and the Life Insurance Benefit for a period of three
months, and shall continue the Executive's coverage under the Company's medical
and dental plans until the earlier of the date that is six months after the
Separation Date or the date that the Executive obtains other employment that
offers comparable medical and dental insurance, subject to the Executive's
compliance with the substantiation and documentation requirements set forth in
Paragraph 4(f) and subject to the terms of the applicable benefit plans and
applicable law. Any obligation of the Company to the Executive hereunder is
conditioned, however, upon the Executive signing a release of claims in the form
provided by the Company (the "Employee Release") within twenty-one days (or such
greater period as the Company may specify) following the later of the date on
which the Executive receives notice of termination of employment or the date the
Executive receives a copy of the Employee Release and upon the Executive not
revoking the Employee Release in a timely manner thereafter. Base Salary to
which the Executive is entitled hereunder shall be payable in accordance with
the normal payroll practices of the Company and will begin at the Company's next
regular payroll period which is at least five business days following the
effective date of the Employee Release, but shall be retroactive to next
business day following the Separation Date.

                  (e)      BY THE EXECUTIVE. After the original term hereof
expires, during any extension term, the Executive may terminate his employment
hereunder at any time other than for Good Reason upon four months' notice to the
Company. Upon the effective date of such termination of the Executive's
employment hereunder, the Company shall have no further obligation to the
Executive, other than for any Final Compensation due to him.

                  (f)      UPON A CHANGE OF CONTROL. If a Change of Control, as
defined in Paragraph 13 below, occurs and, within four (4) months prior to or
following such Change of Control, the Company terminates the Executive's
employment other than for Cause as a result of such Change of Control, then, in
lieu of any payments to the Executive under Paragraph 5(d) hereof, and provided
that the Executive signs the Employee Release as specified in Paragraph 5(d),
the Company shall: (i) in addition to the Final Compensation, for a period which
is the greater of (A) the remaining portion of the initial term of this
Agreement; and (B) eighteen months following the Separation Date, continue to
pay the Executive the Base Salary at the rate in effect on the Separation Date,
as modified by any reduction then in effect with respect to the base salaries of
executives of the Company generally; and (ii) cause all shares subject to the
Option, as defined in Paragraph 4(c) above, that are not exercisable on the
Separation Date to immediately vest and become fully exercisable (the
"Accelerated Options"). The Accelerated Options will remain exercisable until
that date which is three months from the Separation Date (or, if the Separation
Date occurs prior to the date the Change of Control occurs, until that date
which is three months from the date the Change of Control occurs), after which
date any Accelerated Options not exercised shall be forfeited and shall
terminate. Except as otherwise expressly provided in this Paragraph 5(f), the
terms and conditions of the Accelerated Options shall remain unchanged and shall
be governed by the terms of the applicable stock option grants, agreements and
plans and other restrictions or
<PAGE>

provisions generally applicable to options granted to Company employees, as
these may be amended from time to time by the Company. In addition, provided
that the Executive was employed for at least one hundred eighty (180) days
during the fiscal year in which the Separation Date occurs, the Company shall
pay the Executive any Bonus for such fiscal year, pro-rated based on the number
of days during such fiscal year the Executive was employed by the Company. If
the Executive made an 83(b) Election, the Company shall provide the Restricted
Stock Benefit to the Executive.

         6.       EFFECT OF TERMINATION. The provisions of this Section 6 shall
apply to termination due to the expiration of the term hereof, pursuant to
Section 5 or otherwise.

                  (a)      Payment by the Company of any Base Salary or other
specified amounts that may be due the Executive, the continuation of the
Automobile Benefit and any acceleration of the exercise date of any shares of
the Option to which the Executive may be entitled under the applicable
termination provision of Section 5 shall constitute the entire obligation of the
Company and its Affiliates to the Executive.

                  (b)      Except as otherwise provided in this Agreement and by
applicable law, benefits shall terminate pursuant to the terms of the applicable
benefit plans based on the date of termination of the Executive's employment
without regard to any continuation of Base Salary or other payment to the
Executive following such date of termination.

                  (c)      Provisions of this Agreement shall survive any
termination if so provided herein or if necessary or desirable to accomplish the
purposes of other surviving provisions, including without limitation the
obligations of the Executive under Paragraphs 7, 8 and 9 hereof. The obligation
of the Company to make payments to or on behalf of the Executive under Paragraph
5 hereof is expressly conditioned upon the Executive's continued full
performance of obligations under Paragraphs 7, 8 and 9 hereof. The Executive
recognizes that, except as expressly provided in Paragraph 5, no compensation is
earned after termination of employment.

         7.       CONFIDENTIAL INFORMATION.

                  (a)      The Executive acknowledges that the Company and its
Affiliates continually develop Confidential Information, that the Executive may
develop Confidential Information for the Company or its Affiliates and that the
Executive may learn of Confidential Information during the course of employment.
The Executive will comply with the policies and procedures of the Company and
its Affiliates for protecting Confidential Information and shall not disclose to
any Person or use, other than as required by applicable law or for the proper
performance of his duties and responsibilities to the Company and its
Affiliates, any Confidential Information obtained by the Executive incident to
his employment or other association with the Company or any of its Affiliates.
The Executive understands that this restriction shall continue to apply after
his employment terminates, regardless of the reason for such termination.

                  (b)      All documents, records, tapes and other media of
every kind and description relating to the business, present or otherwise, of
the Company or its Affiliates and

<PAGE>

any copies, in whole or in part, thereof (the "Documents"), whether or not
prepared by the Executive, shall be the sole and exclusive property of the
Company and its Affiliates. The Executive shall safeguard all Documents and
shall surrender to the Company at the time his employment terminates, or at such
earlier time or times as the Board or its designee may specify, all Documents
then in the Executive's possession or control.

         8.       ASSIGNMENT OF RIGHTS TO INTELLECTUAL PROPERTY. The Executive
shall promptly and fully disclose all Intellectual Property, as defined in
Paragraph 13 below, to the Company. The Executive hereby assigns and agrees to
assign to the Company (or as otherwise directed by the Company) the Executive's
full right, title and interest in and to all Intellectual Property. The
Executive agrees to execute any and all applications for domestic and foreign
patents, copyrights or other proprietary rights and to do such other acts
(including without limitation the execution and delivery of instruments of
further assurance or confirmation) requested by the Company to assign the
Intellectual Property to the Company and to permit the Company to enforce any
patents, copyrights or other proprietary rights to the Intellectual Property.
The Executive will not charge the Company for time spent in complying with these
obligations. All copyrightable works that the Executive creates shall be
considered "work made for hire".

         9.       RESTRICTED ACTIVITIES. The Executive agrees that some
restrictions on his activities during and after his employment are necessary to
protect the goodwill, Confidential Information and other legitimate interests of
the Company and its Affiliates:

                  (a)      While the Executive is employed by the Company,
during the period during which the Executive is receiving the Severance
Payments, and for an additional eighteen months thereafter (in the aggregate,
the "Non-Competition Period"), the Executive shall not, directly or indirectly,
own, manage, operate, control or participate in any manner in the ownership,
management, operation or control of, or be connected as an officer, employee,
partner, director, principal, consultant, agent or otherwise with, or have any
financial interest in, or aid or assist anyone else in the conduct of, any
business, venture or activity which competes with any Business of the Company or
its Affiliates, in the United States or any other geographic area where such
Business is being conducted or actively being planned to be conducted at or
prior to the Separation Date. For the purposes of this Section 9, the Business
of the Company and its Affiliates shall include all Products and the Executive's
undertaking shall encompass all items, products and services that may be used in
substitution for Products. In no case shall the Non-Competition Period last for
more than twenty four (24) months after the Separation Date. Notwithstanding the
foregoing, ownership of not more than five percent of any class of equity
security of any publicly held corporation shall not, of itself, constitute a
violation of this Paragraph 9.

                  (b)      The Executive agrees that, during his employment with
the Company, he will not undertake any outside activity, whether or not
competitive with the business of the Company or its Affiliates, that could
reasonably give rise to a conflict of interest or otherwise interfere with his
duties and obligations to the Company or any of its Affiliates.

                  (c)      The Executive further agrees that while he is
employed by the Company and during the Non-Competition Period, the Executive
will not hire or attempt to

<PAGE>

hire any employee of the Company or any of its Affiliates, assist in such hiring
by any Person, encourage any such employee to terminate his or her relationship
with the Company or any of its Affiliates, or solicit or encourage any customer
or vendor of the Company or any of its Affiliates to terminate or diminish its
relationship with them, or, in the case of a customer, to conduct with any
Person any business or activity which such customer conducts or could conduct
with the Company or any of its Affiliates.

         10.      NOTIFICATION REQUIREMENT. During the Non-Competition Period,
the Executive shall give notice to the Company of each new business activity he
plans to undertake which business is the same as or similar to the business of
the Company, as soon as reasonably practicable after the Executive finalizes his
intention to engage in such activity. The Executive shall provide the Company
with such other pertinent information concerning such business activity as the
Company may reasonably request in order to determine the Executive's continued
compliance with his obligations under Sections 7, 8 and 9 hereof.

         11.      ENFORCEMENT OF COVENANTS. The Executive acknowledges that he
has carefully read and considered all the terms and conditions of this
Agreement, including the restraints imposed upon him pursuant to Sections 7, 8
and 9 hereof. The Executive agrees that said restraints are necessary for the
reasonable and proper protection of the Company and its Affiliates and that each
and every one of the restraints is reasonable in respect to subject matter,
length of time and geographic area. The Executive further acknowledges that,
were he to breach any of the covenants contained in Sections 7, 8 or 9 hereof,
the damage to the Company would be irreparable. The Executive therefore agrees
that the Company, in addition to any other remedies available to it, shall be
entitled to preliminary and permanent injunctive relief against any breach or
threatened breach by the Executive of any of said covenants, without having to
post bond. The parties further agree that, in the event that any provision of
Section 7, 8 or 9 hereof shall be determined by any court of competent
jurisdiction to be unenforceable by reason of its being extended over too great
a time, too large a geographic area or too great a range of activities, such
provision shall be deemed to be modified to permit its enforcement to the
maximum extent permitted by law.

         12.      CONFLICTING AGREEMENTS. The Executive hereby represents and
warrants that the execution of this Agreement and the performance of his
obligations hereunder will not breach or be in conflict with any other agreement
to which the Executive is a party or is bound and that the Executive is not now
subject to any covenants against competition or similar covenants or any court
order or other legal obligation that would affect the performance of his
obligations hereunder. The Executive will not disclose to or use on behalf of
the Company any proprietary information of a third party without such party's
consent.

         13.      DEFINITIONS. Words or phrases which are initially capitalized
or are within quotation marks shall have the meanings provided in this Section
and as provided elsewhere herein. For purposes of this Agreement, the following
definitions apply:

                  (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 either management authority or equity interest.
<PAGE>

                  (b)      "Change of Control" means (A) any Person or "group"
(within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934 as amended (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 promulgated under the
Exchange Act), 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 Company's then outstanding securities; (B) any merger or
consolidation involving the Company or any sale of all or substantially all of
the assets of the Company, or any combination of the foregoing; or (C) 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 or 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.

                  (c)      "Confidential Information" means any and all
information of the Company and its Affiliates that is not generally known by
others with whom they compete or do business, or with whom any of them plans to
compete or do business and any and all information, publicly known in whole or
in part or not, which, if disclosed by the Company or its Affiliates would
assist in competition against them. Confidential Information includes without
limitation such information relating to (i) the development, research, testing,
manufacturing, marketing and financial activities of the Company and its
Affiliates, (ii) the Products, (iii) the costs, sources of supply, financial
performance and strategic plans of the Company and its Affiliates, (iv) the
identity and special needs of the customers of the Company and its Affiliates
and (v) the people and organizations with whom the Company and its Affiliates
have business relationships and those relationships. Confidential Information
also includes any information that the Company or any of its Affiliates have
received, or may receive hereafter, belonging to customers or others with any
understanding, express or implied, that the information would not be disclosed.

                  (d)      "Intellectual Property" means inventions,
discoveries, developments, methods, processes, compositions, works, concepts and
ideas (whether or not patentable or copyrightable or constituting trade secrets)
conceived, made, created, developed or reduced to practice by the Executive
(whether alone or with others, whether or not during normal business hours or on
or off Company premises) during the Executive's employment that relate to either
the Products or any prospective activity of the Company or any of its Affiliates
or that make use of Confidential Information or any of the equipment or
facilities of the Company or any of its Affiliates.

                  (e)      "Person" means an individual, a corporation, a
limited liability company, an association, a partnership, an estate, a trust and
any other entity or organization, other than the Company or any of its
Affiliates.

                  (f)      "Products" mean all products planned, researched,
developed, tested, manufactured, sold, licensed, leased or otherwise distributed
or put into use by the Company or any of its Affiliates, together with all
services provided or planned by the Company or any of its Affiliates, during the
Executive's employment.
<PAGE>

         14.      WITHHOLDING. All payments made by the Company under this
Agreement shall be reduced by any tax or other amounts required to be withheld
by the Company under applicable law.

         15.      ASSIGNMENT. Neither the Company nor the Executive may make any
assignment of this Agreement or any interest herein, by operation of law or
otherwise, without the prior written consent of the other; provided, however,
that the Company may assign its rights and obligations under this Agreement
without the consent of the Executive in the event that the Executive is
transferred to a position with any of the Affiliates or in the event that the
Company shall hereafter affect a reorganization, consolidate with, or merge
into, any Person or transfer all or substantially all of its properties or
assets to any Person. This Agreement shall inure to the benefit of and be
binding upon the Company and the Executive, their respective successors,
executors, administrators, heirs and permitted assigns.

         16.      SEVERABILITY. If any portion or provision of this Agreement
shall to any extent be declared illegal or unenforceable by a court of competent
jurisdiction, then the remainder of this Agreement, or the application of such
portion or provision in circumstances other than those as to which it is so
declared illegal or unenforceable, shall not be affected thereby, and each
portion and provision of this Agreement shall be valid and enforceable to the
fullest extent permitted by law.

         17.      WAIVER. No waiver of any provision hereof shall be effective
unless made in writing and signed by the waiving party. The failure of either
party to require the performance of any term or obligation of this Agreement, or
the waiver by either party of any breach of this Agreement, shall not prevent
any subsequent enforcement of such term or obligation or be deemed a waiver of
any subsequent breach.

         18.      NOTICES. Any and all notices, requests, demands and other
communications provided for by this Agreement shall be in writing and shall be
effective when delivered in person or deposited in the United States mail,
postage prepaid, registered or certified, and addressed to the Executive at his
last known address on the books of the Company or, in the case of the Company,
at its principal place of business, attention of [the Chair of the Board], or to
such other address as either party may specify by notice to the other actually
received.

         19.      ENTIRE AGREEMENT. This Agreement constitutes the entire
agreement between the parties and supersedes all prior communications,
agreements and understandings, written or oral, with respect to the terms and
conditions of the Executive's employment.

         20.      AMENDMENT. This Agreement may be amended or modified only by a
written instrument signed by the Executive and by a expressly authorized
representative of the Company.

         21.      HEADINGS. The headings and captions in this Agreement are for
convenience only and in no way define or describe the scope or content of any
provision of this Agreement.
<PAGE>

         22.      COUNTERPARTS. 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.

         23.      GOVERNING LAW. This is a Massachusetts contract and shall be
construed and enforced under and be governed in all respects by the laws of the
Commonwealth of Massachusetts, without regard to the conflict of laws principles
thereof.

         IN WITNESS WHEREOF, this Agreement has been executed as a sealed
instrument by the Company, by its duly authorized representative, and by the
Executive, as of the date first above written.

THE EXECUTIVE:                              BTU INTERNATIONAL, INC.

____________________                        By:  _________________________
Mark R. Rosenzweig
                                            Name: Paul J. van der Wansem
                                            Title:  President & CEO

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