Document:

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                                                                   EXHIBIT 10.6

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT, dated as of April 14, 2000, is between IDEX CORPORATION, a
Delaware corporation with its executive offices at 630 Dundee Road, Suite 400,
Northbrook, Illinois 60062 (the "Corporation"), and DENNIS K. WILLIAMS, an
individual residing at 10 Triton Way, Mashpee, MA 02649 (the "Executive").

                                    RECITALS:

     A. The Executive will be employed as the Chairman of the Board, President
and Chief Executive Officer of the Corporation.

     B. The Corporation and the Executive desire to set forth the terms upon
which the Executive will be employed by the Corporation.

     NOW, THEREFORE, in consideration of the promises and of the covenants
contained in this Agreement, the Corporation and the Executive agree as follows:

     1. DEFINITIONS. The following definitions apply for purposes of this
Agreement.

     (a) "Board of Directors" or "Board" means the Board of Directors of the
Corporation.

     (b) "Cause" means a finding by the Board of Directors that any of the
following conditions exist:

         (i)   The Executive's willful and continued failure substantially to
     perform his material duties under this Agreement (other than as a result of
     his Disability) if such failure is not substantially cured within 15 days
     after written notice is provided to the Executive.

        (ii)   The Executive's willful breach in a substantive and material
     manner of his fiduciary duty or duty of loyalty to the Corporation which is
     injurious to the financial condition in more than a de minimus manner or
     the business reputation of the Corporation.

         (iii) The Executive's indictment for a felony offense under the laws
     of the United States or any state thereof (other than for a violation of
     motor or vehicular laws).

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         (iv)  A material breach by the Executive of any restrictive covenant
     contained in Sections 13 and 14 of this Agreement.

For purposes of this definition, no act or failure to act will be deemed
"willful" unless effected by the Executive not in good faith and without a
reasonable belief that his action or failure to act was in or not opposed to the
Corporation's best interests.

     (c) A "Change in Control " means the occurrence of (i) any transaction or
series of transactions which within a 12-month period constitute a change of
management or control where (A) at least 51 percent of the then outstanding
shares of common stock of the Corporation are (for cash, property (including,
without limitation, stock in any corporation), or indebtedness, or any
combination thereof) redeemed by the Corporation or purchased by any person(s),
firm(s) or entity(ies), or exchanged for shares in any other corporation whether
or not affiliated with the Corporation, or any combination of such redemption,
purchase or exchange, or (B) at least 51 percent of the Corporation's assets are
purchased by any person(s), firm(s) or entity(ies) whether or not affiliated
with the Corporation for cash, property (including, without limitation, stock in
any corporation) or indebtedness or any combination thereof, or (C) the
Corporation is merged or consolidated with another corporation regardless of
whether the Corporation is the survivor (except any such transaction solely for
the purpose of changing the Corporation's domicile or which does not change the
ultimate beneficial ownership of the equity interests in the Corporation), or
(ii) any substantial equivalent of any such redemption, purchase, exchange,
change, transaction or series of transactions, acquisition, merger or
consolidation constituting such a change of management or control. For purposes
hereof, the term "control" shall have the meaning ascribed thereto under the
Securities Exchange Act of 1934, as amended and the regulations thereunder, and
the term "management" shall mean the chief executive officer of the Corporation.
For purposes of clause (i)(B) above or as appropriate for purposes of clause
(ii) above, the Corporation shall be deemed to include on a consolidated basis
all subsidiaries and other affiliated corporations or other entities with the
same effect as if they were divisions.

     (d) "Code" means the Internal Revenue Code of 1986, as amended.

     (e) "Corporation" means IDEX Corporation.

     (f) "Disability" means a disability that has existed for a period of six
(6) consecutive months and because of which the Executive is physically or
mentally unable to substantially perform his regular duties as Chairman of the
Board, President or Chief Executive Officer of the Corporation, as the case may
be.

     (g) "Effective Date" means April 14, 2000, the date on which this Agreement
is executed.

     (h) "Employment Date" means May 1, 2000.

     (i) "Good Reason" means:

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         (i)   There has been a material diminution in the Executive's
     responsibilities, duties, title, reporting responsibilities within the
     business organization, status, role or authority which is not restored
     within 15 days after written notice is provided to the Corporation.

         (ii)  Removal from, or failure to re-elect, the Executive to the
     position of Chairman of the Board, President or Chief Executive Officer.

         (iii) A requirement, in the Executive's reasonable judgment, that the
     services required to be performed by the Executive would necessitate the
     Executive moving his residence from the Chicago, Illinois area.

         (iv)  A material breach by the Corporation of any of the material terms
     of this Agreement if such breach is not substantially cured within 15 days
     after written notice is provided to the Corporation.

     2. EMPLOYMENT; DUTIES. Subject to the terms and conditions set forth in
this Agreement, the Corporation hereby agrees to employ the Executive, and the
Executive hereby accepts employment, and, as of the Employment Date, will assume
the roles as Chairman of the Board, President and Chief Executive Officer of the
Corporation, in full charge of the operation of its business and affairs,
subject to the provisions of the by-laws of the Corporation in respect of the
duties and responsibilities assigned from time to time by the Board of Directors
to the Chairman of the Board, President and Chief Executive Officer, and subject
also at all times to the control of the Board of Directors. Subject to the
yearly election by the Board of Directors in the exercise of its judgment, it is
contemplated that the Executive will continue to be elected to the positions of
Chairman of the Board, President and Chief Executive Officer. The Executive will
perform those duties and discharge those responsibilities as are commensurate
with his position, and as the Board of Directors may from time to time
reasonably direct, commensurate with his position. The Executive agrees to
perform his duties and discharge his responsibilities in a faithful manner and
to the best of his ability and to use all reasonable efforts to promote the
interests of the Corporation. The Executive may not accept other gainful
employment except with the prior consent of the Board of Directors. With the
prior consent of the Board of Directors, the Executive may become a director,
trustee or other fiduciary of other corporations, trusts or entities.
Notwithstanding the foregoing, the Executive may manage his passive investments
and be involved in charitable, civic and religious interests so long as they do
not materially interfere with the performance of the Executive's duties
hereunder.

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     3. COMPENSATION.

     (a) During the term of the Executive's employment under this Agreement, the
Executive will receive a base salary at the rate of $650,000 per year, payable
in equal monthly installments. On an annual basis, the Board of Directors will,
in good faith, review the base salary of the Executive to consider appropriate
increases (but not decreases) in the base salary. If the Executive dies during
the period of time of his service under this Agreement, service for any part of
the month of his death will be considered service for the entire month.

     (b) During the term of the Executive's employment under this Agreement, the
Executive will be entitled to receive an annual cash bonus from the Corporation
calculated pursuant to the Corporation's Management Incentive Compensation
Program (the "MICP") in effect from time to time. The Target Incentive Amount
for the Executive, as defined in the MICP, will be 120% of his base salary for
fiscal periods of the Corporation subsequent to December 31, 2000. The maximum
bonus to be awarded under the MICP will not exceed 200% of his base salary. The
Board of Directors, in its discretion, may award bonuses to the Executive in
addition to those provided for above, as it may from time to time determine.
Notwithstanding the foregoing, for the fiscal period ending December 31, 2000
the Executive will receive an annual cash bonus from the Corporation, which will
be paid in January 2001, of an amount not less than 80% and not more than 120%
of his base salary for that period as determined in the discretion of the Board.
It is recognized and agreed to by the Executive that for fiscal periods
commencing after December 31, 2000 the MICP will need to be modified and receive
shareholder approval to preserve the deductibility of bonus payments under
Section 162(m) of the Code. The Executive will have substantial input in the
modification of the MICP which will be considered by the Board.

     (c) On or before the Effective Date, the IDEX Corporation Compensation
Committee will meet and award the Executive 350,000 options on the Corporation's
common stock. The price of the options will be the closing share price of the
Corporation's common stock, as reported by the New York Stock Exchange, as of
the immediately previous business day. A copy of the Option Agreement pursuant
to which the options will be awarded to the Executive is attached hereto as
Exhibit A. It is acknowledged that the Corporation's failure to award the
options to the Executive shall constitute a material breach of this Agreement.
The Executive will be annually considered for additional awards of options
which, if awarded, will be granted on terms no less favorably than the Option
Agreement attached hereto as Exhibit A.

     (d) Simultaneously with the execution of this Agreement, the Corporation
and the Executive shall enter into a Restricted Stock Award in the form attached
hereto as Exhibit B.

     (e) The Corporation will reimburse the Executive for all reasonable moving
expenses incurred by the Executive in relocating to the Chicago, Illinois area.
For purposes of clarification, "reasonable moving expenses incurred" will
include lease or rental expenses on the Executive's current residence in Italy,
temporary housing expenses in the Chicago, Illinois area, travel expenses of the
Executive and his wife to or from the Chicago, Illinois area and payment of

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an amount equal to one month base salary for incidental expenses. If any such
reimbursements are not excludible from the income of the Executive because a
corresponding deduction would not be allowable under Section 217 of the Code,
then the Corporation will make an additional payment to the Executive in an
amount such that after payment by the Executive of all taxes imposed on the
additional payment and the amount of the reimbursement includable in income, the
Executive retains an amount equal to the amount of the reimbursement includable
in income.

     (f) The Corporation will deduct or withhold from all salary and bonus
payments, and from all other payments made to the Executive pursuant to this
Agreement, all amounts that may be required to be deducted or withheld under any
applicable Social Security contribution, income tax withholding or other similar
law now in effect or that may become effective during the term of this
Agreement.

     4. OTHER BENEFITS AND TERMS. During the term of the Executive's employment
under this Agreement, the Executive will be entitled to the following other
benefits and terms:

     (a) The Executive will be entitled to participate in the Corporation's
ChoiceComp health and medical benefit plans, any pension, profit sharing and
retirement plans, and any insurance policies or programs from time to time
generally offered to all or substantially all executive employees who are
employed by the Corporation. These plans, policies and programs are subject to
change at the sole discretion of the Corporation. Notwithstanding the foregoing,
life insurance benefits will be provided at an amount not less than one times
base salary. Notwithstanding anything to the contrary, for purposes of
determining the Executive's benefits under the IDEX Corporation Supplemental
Executive Retirement Plan, the Executive's "compensation" shall include income
recognized by him with respect to the Restricted Stock Award under Section 3(d)
of this Agreement.

     (b) The Executive will be entitled to any other fringe benefit from time to
time generally offered to all or substantially all senior executive employees
who are employed by the Corporation.

     (c) The Corporation will provide the Executive with the use of an
automobile or an auto use allowance that is commensurate with his position.

     (d) The Corporation will pay on behalf of or reimburse the Executive for
personal legal and financial advice an amount not to exceed $15,000 in any
calendar year.

     (e) Except as specifically provided in Sections 9(a)(i), 9(c)(i), 9(d)(i),
9(e) and 9(f)(i), or as required by law, the Executive acknowledges that he, his
spouse and dependents will not receive health and medical benefits following any
termination of his employment.

     5. VACATIONS. The Executive will be entitled to five weeks of paid vacation
each year. Unused vacation in any year may not be carried over to subsequent
years.

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     6. REIMBURSEMENT FOR EXPENSES. The Corporation will reimburse the Executive
for expenses which the Executive may from time to time reasonably incur on
behalf of the Corporation in the performance of his responsibilities and duties
including, but not limited to, professional dues and attendance at professional
conferences.

     7. PERIOD OF EMPLOYMENT. Subject to the provisions of this Section, the
period of employment of the Executive under this Agreement will begin on the
Employment Date and continue until April 30, 2005. Upon the expiration of the
initial period, the period of employment will be automatically extended for 12
consecutive month periods thereafter, unless either party provides 120 days
prior written notice to the other party that it does not wish to extend the
Executive's employment period beyond its then present term.

     Notwithstanding the foregoing:

     (a) The Executive's employment will automatically terminate upon the death
or Disability of the Executive. The foregoing is subject to the duty of the
Corporation to provide reasonable accommodation under the Americans with
Disabilities Act.

     (b) The Corporation may, at its sole option, terminate the Executive's
employment at any time and for any reason by delivering written notice to the
Executive.

     (c) The Executive, at his sole option, may terminate his employment for
Good Reason by providing written notice to the Corporation at least 30 days
prior to the effective date of the termination of employment specified in the
notice.

     (d) The Executive, at his sole option, may terminate his employment absent
Good Reason by providing written notice to the Corporation at least 90 days
prior to the effective date of the termination of employment specified in the
notice.

     Any notice of termination of employment given by a party must specify the
particular termination provision of this Agreement relied upon by the party and
must set forth in reasonable detail the facts and circumstances that provide a
basis for the termination.

     8. INDEMNIFICATION. The Corporation will enter into an indemnity agreement
with the Executive substantially in the form contained in Exhibit C of this
Agreement.

     9. BENEFITS UPON TERMINATION. The Corporation will provide the following
benefits upon the termination of the Executive's employment with the
Corporation.

     (a) Upon Termination By The Corporation Other Than For Cause Or By The
Executive With Good Reason. Upon the Executive's termination of his employment
for Good Reason or the Corporation's termination of the Executive's employment
other than for Cause, the Corporation will provide the following:

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         (i)   Salary And Fringe Benefits. The Executive will receive his full
     salary and fringe benefits through the effective date of termination
     together with any unpaid bonus for a prior period. The Executive will also
     receive (i) his full salary, (ii) medical, health and life insurance, and
     (iii) other miscellaneous fringe benefits (including, but not limited to,
     the personal accident plan at the level in effect on the date of
     termination, and the use of the Corporation provided automobile or auto use
     allowance) ((ii) and (iii) are hereinafter referred to as "Fringe
     Benefits") as in effect on the date of either the Corporation's or the
     Executive's receipt of a notice of termination from the other party for a
     period of 24 months beginning with the month next following the month
     during which his employment terminates. If the Executive dies during the 24
     month period, the balance of the salary payments will be paid as provided
     in Section 15 and any dependent health or medical Fringe Benefits will be
     provided for the balance of the 24 month period.

         (ii)  Bonus. The Executive will receive a bonus payment equal to the
     sum of (A) 240% of his base salary in effect in the year of the termination
     of his employment, plus (B) an amount determined by multiplying 120% of his
     base salary by a fraction the numerator of which is the number of full and
     partial calendar months in the calendar year that precedes the date of the
     termination of his employment and the denominator of which is 12.

         (iii) Accrued Vacation. The Executive will receive payment for accrued
     but unused vacation, which payment will be equitably prorated based on the
     period of active employment for that portion of the fiscal year in which
     the Executive's termination of employment becomes effective. Payment for
     accrued but unused vacation will be payable in one lump sum on the
     effective date of the termination of employment.

     (b) Upon Termination By The Executive Absent Good Reason Or By The
Corporation For Cause. Upon the Executive's termination of employment absent
Good Reason or by the Corporation for Cause, the Corporation will provide the
following:

         (i)   Salary And Fringe Benefits. The Executive will receive his full
     salary and Fringe Benefits through the effective date of termination
     together with any unpaid bonus for a prior period.

         (ii)  Accrued Vacation. The Executive will receive payment for accrued
     but unused vacation, which payment will be equitably prorated based on the
     period of active employment for that portion of the fiscal year in which
     the Executive's termination of employment becomes effective. Payment for
     accrued but unused vacation will be payable in one lump sum on the
     effective date of the termination of employment.

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     (c) Upon Termination For Disability. Upon termination of the Executive's
employment because of Disability, the Corporation will provide the following:

         (i)   Salary And Fringe Benefits. The Executive will receive his full
     salary and Fringe Benefits through the effective date of termination
     together with any unpaid bonus for a prior period. The Executive will also
     receive his full salary and Fringe Benefits, as in effect on the date
     immediately before the Disability, for a period of 18 months commencing
     with the month following the month during which his Disability commences.
     If the Executive dies during the 18 month period, the balance of the salary
     payments will be paid as provided in Section 15 and any dependent health or
     medical Fringe Benefits will be provided for the balance of the 18 month
     period.

         (ii)  Bonus. The Executive will receive a bonus payment equal to the
     sum of (A) 180% of his base salary in effect in the year of the termination
     of his employment, plus (B) an amount determined by multiplying 120% of his
     base salary by a fraction the numerator of which is the number of full and
     partial calendar months in the calendar year that precedes the date of the
     termination of his employment and the denominator of which is 12.

         (iii) Accrued Vacation. The Executive will receive payment for accrued
     but unused vacation, which payment will be equitably prorated based on the
     period of active employment for that portion of the fiscal year in which
     the Executive's Disability commences. Payment for accrued but unused
     vacation will be payable in one lump sum on the date the Disability
     commences (or as soon thereafter as practicable).

     (d) Upon Termination For Death. Upon termination of the Executive's
employment because of his death, the Corporation will provide the following:

         (i)   Salary And Fringe Benefits. The (i) Executive's full salary and
     Fringe Benefits through the effective date of termination, (ii) any unpaid
     bonus for a prior period and (iii) his full salary, on the date immediately
     before his death, for a period of 18 months beginning with the month next
     following the month during which he died will be paid as provided in
     Section 15. Any dependent health or medical Fringe Benefits will be
     provided for the 18-month period following the month in which he died.

         (ii)  Bonus. The Executive's successor as provided in Section 15 will
     receive a bonus payment equal to the sum of (A) 180% of his base salary in
     effect in the year of the termination of his employment, plus (B) an amount
     determined by multiplying 120% of his base salary by a fraction the
     numerator of which is the

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     number of full and partial calendar months in the calendar year that
     precedes the date of the termination of his employment and the denominator
     of which is 12.

         (iii) Accrued Vacation. The Executive's successor as provided in
     Section 15 will receive payment for accrued but unused vacation, which
     payment will be equitably prorated based on the period of active employment
     for that portion of the fiscal year in which the Executive died. Payment
     for accrued but unused vacation will be payable in one lump sum on the date
     of the Executive's death (or as soon thereafter as practicable).

     (e) Upon Termination Following A Change In Control. Upon the Executive's
termination of employment by the Corporation without Cause or the Employee's
termination with Good Reason which, in either case, occurs in contemplation of
or within the 24 month period following a Change in Control, the Corporation
will provide the Executive compensation and benefits under the agreement
attached hereto as Exhibit D, the terms of which, if in conflict with this
Agreement will be controlling.

     (f) Upon Expiration Of Term. Upon the expiration of the term of this
Agreement pursuant to the first paragraph of Section 7, the Corporation will
provide the following:

         (i)   Salary And Fringe Benefits. The Executive will receive his full
     salary and fringe benefits through the effective date of termination
     together with any unpaid bonus for a prior period. The Executive will also
     receive (i) his full salary, (ii) medical, health and life insurance, and
     (iii) other miscellaneous fringe benefits (including, but not limited to,
     the personal accident plan at the level in effect on the date of
     termination, and the use of the Corporation provided automobile or auto use
     allowance) ((ii) and (iii) are hereinafter referred to as "Fringe
     Benefits") as in effect on the date of either the Corporation's or the
     Executive's receipt of a notice of termination from the other party for a
     period of 12 months beginning with the month next following the month
     during which his employment terminates. If the Executive dies during the 12
     month period, the balance of the salary payments will be paid as provided
     in Section 15 and any dependent health or medical Fringe Benefits will be
     provided for the balance of the 12 month period.

         (ii)  Bonus. The Executive will receive a bonus payment equal to (A)
     120% of his base salary in effect in the year of the termination of the
     Executive's employment, plus (B) an amount determined by multiplying 120%
     of his base salary by a fraction the numerator of which is the number of
     full and partial calendar months in the calendar year that precedes the
     date of the termination of his employment and the denominator of which is
     12.

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         (iii) Accrued Vacation. The Executive will receive payment for accrued
     but unused vacation, which payment will be equitably prorated based on the
     period of active employment for that portion of the fiscal year in which
     the Executive's termination of employment becomes effective. Payment for
     accrued but unused vacation will be payable in one lump sum on the
     effective date of the termination of employment.

     (g) Reduction In Fringe Benefits. Medical and health Fringe Benefits under
this Section will be reduced to the extent of any medical and health fringe
benefits provided by and available to the Executive from any subsequent
employer.

     (h) Determination Of Disability. Any question as to the existence of a
physical or mental condition which would give rise to the Disability of the
Executive upon which the Executive and the Corporation cannot agree will be
determined by a qualified independent physician selected by the Executive and
reasonably acceptable to the Corporation (or, if the Executive is unable to make
a selection, the selection of the physician will be made by any adult member of
his immediate family). The physician's written determination to the Corporation
and to the Executive will be final and conclusive for all purposes of this
Agreement.

     (i) Continuation Of Healthcare Coverage. For purposes of COBRA continuation
healthcare coverage, the "qualifying event" will be deemed to have occurred at
the end of the period during which health and medical benefits are provided
under Sections 9(a)(i), 9(c)(i), 9(d)(i), 9(e) and 9(f)(i).

     10. ADDITIONAL PAYMENTS. Notwithstanding anything in this Agreement or any
other agreement to the contrary, in the event it is determined that any payments
or distributions by the Corporation or any affiliate (as defined under the
Securities Act of 1933, as amended, and the regulations thereunder) thereof or
any other person to or for the benefit of the Executive, whether paid or payable
pursuant to the terms of this Agreement, or pursuant to any other agreement or
arrangement with the Corporation or any such affiliate ("Payments"), would be
subject to the excise tax imposed by Section 4999 of the Code, or any successor
provision, or any interest or penalties with respect to the excise tax (the
excise tax, together with any interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then the Executive will be
entitled to receive an additional payment from the Corporation (a "Gross-Up
Payment") in an amount that after payment by the Executive of all taxes
(including, without limitation, any interest or penalties imposed with respect
to such taxes and any Excise Tax) imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments. The amount of the Gross-Up Payment will be calculated
by the Corporation's independent accounting firm, engaged immediately prior to
the event that triggered the payment, in consultation with the Corporation's
outside legal counsel. For purposes of making the calculations required by this
Section, the accounting firm may make reasonable assumptions and approximations
concerning applicable taxes and may rely on reasonable, good faith
interpretations concerning the application of Sections 280G and 4999 of the
Code, provided that the accounting firm's determinations must be made with
substantial authority (within the

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meaning of Section 6662 of the Code). The Gross-Up Payment will be paid on the
Executive's last day of employment or on the occurrence of the event that
results in the imposition of the Excise Tax, if later. If the precise amount of
the Gross-Up Payment cannot be determined on the date it is to be paid, an
amount equal to the best estimate of the Gross-Up Payment will be made on that
date and, within 10 days after the precise calculation is obtained, either the
Corporation will pay any additional amount to the Executive or the Executive
will pay any excess amount to the Corporation, as the case may be. If
subsequently the Internal Revenue Service (the "IRS") claims that any additional
Excise Tax is owing, an additional Gross-Up Payment will be paid to the
Executive within 30 days of the Executive providing substantiation of the claim
made by the IRS. After payment to the Executive of the Gross-Up Payment, the
Executive will provide to the Corporation any information reasonably requested
by the Corporation relating to the Excise Tax, the Executive will take those
actions as the Corporation reasonable requests to contest the Excise Tax,
cooperate in good faith with the Corporation to effectively contest the Excise
Tax and permit the Corporation to participate in any proceedings contesting the
Excise Tax. The Corporation will bear and pay directly all costs and expenses
(including any interest or penalties on the Excise Tax), and indemnify and hold
the Executive harmless, on an after-tax basis, from all such costs and expenses
related to such contest. Should it ultimately be determined that any amount of
an Excise Tax is not properly owed, the Executive will refund to the Corporation
the related amount of the Gross-Up Payment.

     11. NON-EXCLUSIVITY OF RIGHTS. Except as otherwise specifically provided,
nothing in this Agreement will prevent or limit the Executive's continued or
future participation in any benefit, incentive, or other plan, practice, or
program provided by the Corporation and for which the Executive may qualify. Any
amount of vested benefit or any amount to which the Executive is otherwise
entitled under any plan, practice, or program of the Corporation will be payable
in accordance with the plan, practice, or program, except as specifically
modified by this Agreement.

     12. NO OBLIGATION TO SEEK OTHER EMPLOYMENT. The Executive will not be
obligated to seek other employment or to take other action to mitigate any
amount payable to him under this Agreement and, except as provided in Section
9(g), amounts owed to him hereunder shall not be reduced by amounts he may
receive from another employer.

     13. CONFIDENTIALITY. During the course of his employment, the Executive
will have access to confidential information relating to the lines of business
of the Corporation, its trade secrets, marketing techniques, technical and cost
data, information concerning customers and suppliers, information relating to
product lines, and other valuable and confidential information relating to the
business operations of the Corporation not generally available to the public
(the "Confidential Information"). The parties hereby acknowledge that any
unauthorized disclosure or misuse of the Confidential Information could cause
irreparable damage to the Corporation. The parties also agree that covenants by
the Executive not to make unauthorized use or disclosures of the Confidential
Information are essential to the growth and stability of the business of the
Corporation. Accordingly, the Executive agrees to the confidentiality covenants
set forth in this Section.

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     The Executive agrees that, except as required by his duties with the
Corporation or as authorized by the Corporation in writing, he will not use or
disclose to anyone at any time, regardless of whether before or after the
Executive ceases to be employed by the Corporation, any of the Confidential
Information obtained by him in the course of his employment with the
Corporation. The Executive shall not be deemed to have violated this Section 13
by disclosure of Confidential Information that at the time of disclosure (a) is
publicly available or becomes publicly available through no act or omission of
the Executive, or (b) is disclosed as required by court order or as otherwise
required by law, on the condition that notice of the requirement for such
disclosure is given to the Corporation prior to making any disclosure.

     The Executive agrees that since irreparable damage could result from his
breach of the covenants in this Section, in addition to any and all other
remedies available to the Corporation, the Corporation will have the remedies of
a restraining order, injunction or other equitable relief to enforce the
provisions thereof. The Executive consents to jurisdiction in Lake County,
Illinois on the date of the commencement of any action for purposes of any
claims under this Section. In addition, the Executive agrees that the issues in
any action brought under this Section will be limited to claims under this
Section, and all other claims or counterclaims under other provisions of this
Agreement will be excluded.

     In addition, the Executive will sign and be bound by the terms of the
attached "Employee Inventions and Proprietary Information Agreement" attached
hereto as Exhibit E. To the extent that the provisions of Exhibit E conflict
with this Agreement, the terms of this Agreement will be controlling.

     14. NON-COMPETITION. In consideration of the compensation and other
benefits to be paid to the Executive under and in connection with this
Agreement, the Executive agrees that, beginning on the date of this Agreement
and continuing until the Covenant Expiration Date (as defined in Subsection (b)
below), he will not, directly or indirectly, for his own account or as agent,
employee, officer, director, trustee, consultant, partner, stockholder or equity
owner of any corporation or any other entity (except that he may passively own
securities constituting less than 1% of any class of securities of a public
company), or member of any firm or otherwise, (i) engage or attempt to engage,
in the Restricted Territory (as defined in Subsection (d) below), in any
business activity which is directly or indirectly competitive with the business
conducted by the Corporation or any Affiliate at the Reference Date (as defined
in Subsection (c) below), (ii) employ or solicit the employment of any person
who is employed by the Corporation or any Affiliate at the Reference Date or at
any time during the six-month period preceding the Reference Date, except that
the Executive will be free to employ or solicit the employment of any such
person whose employment with the Corporation or any Affiliate has terminated for
any reason (without any interference from the Executive) and who has not been
employed by the Corporation or any Affiliate for at least six (6) months, (iii)
canvass or solicit business in competition with any business conducted by the
Corporation or any Affiliate at the Reference Date from any person or entity who
during the six-month period preceding the Reference Date was a customer of the
Corporation or any Affiliate or from any person or entity which the Executive
has reason to

                                       12

<PAGE>   13

believe might in the future become a customer of the Corporation or any
Affiliate as a result of marketing efforts, contacts or other facts and
circumstances of which the Executive is aware, (iv) willfully dissuade or
discourage any person or entity from using, employing or conducting business
with the Corporation or any Affiliate or (v) intentionally disrupt or interfere
with, or seek to disrupt or interfere with, the business or contractual
relationship between the Corporation or any Affiliate and any supplier who
during the six-month period preceding the Reference Date shall have supplied
components, materials or services to the Corporation or any Affiliate.

     Notwithstanding the foregoing, the restrictions imposed by this Section
shall not in any manner be construed to prohibit, directly or indirectly, the
Executive from serving as an employee or consultant of the Corporation or any
Affiliate.

     For purposes of this Agreement, the following terms have the meanings given
to them below:

     (a) "Affiliate" means any joint venture, partnership or subsidiary now or
hereafter directly or indirectly owned or controlled by the Corporation. For
purposes of clarification, an entity shall not be deemed to be indirectly or
directly owned or controlled by the Corporation solely by reason of the
ownership or control of such entity by shareholders of the Corporation.

     (b) "Covenant Expiration Date" means the date which is two (2) years after
the Termination Date (as defined in this Section).

     (c) "Reference Date" means (A) for purposes of applying the covenants set
forth in this Section at any time prior to the Termination Date, the then
current date, or (B) for purposes of applying the covenants set forth in this
Section at any time on or after the Termination Date, the Termination Date.

     (d) "Restricted Territory" means anywhere in the world where the
Corporation or any Affiliate conducts or plans to conduct the business of the
Corporation or any other business activity, as the case may be, at the Reference
Date.

     (e) "Termination Date" means the date of termination of the Executive's
employment with the Corporation; provided however that the Executive's
employment will not be deemed to have terminated so long as the Executive
continues to be employed or engaged as an employee or consultant of the
Corporation or any Affiliate, even if such employment or engagement continues
after the expiration of the term of this Agreement, whether pursuant to this
Agreement or otherwise.

     15. SUCCESSORS. This Agreement is personal to the Executive and may not be
assigned by the Executive other than by will or the laws of descent and
distribution. This Agreement will inure to the benefit of and be enforceable by
the Executive's legal representatives or successors in interest. Notwithstanding
any other provision of this Agreement, the Executive

                                       13

<PAGE>   14

may designate a successor or successors in interest to receive any amounts due
under this Agreement after the Executive's death. If he has not designated a
successor in interest, payment of benefits under this Agreement will be made to
his wife, if surviving, and if not surviving, to his estate. A designation of a
successor in interest must be made in writing, signed by the Executive, and
delivered to the Employer in accordance with Section 19. Except as otherwise
provided in this Agreement, if the Executive has not designated a successor in
interest, payment of benefits under this Agreement will be made to the
Executive's estate. This Section will not supersede any designation of
beneficiary or successor in interest made by the Executive or provided for under
any other plan, practice, or program of the Employer. This Agreement will inure
to the benefit of and be binding upon the Corporation and its successors and
assigns. The Corporation will require any successor (whether direct or indirect,
by acquisition of assets, merger, consolidation or otherwise) to all or
substantially all of the operations or assets of the Corporation or any
successor and without regard to the form of transaction used to acquire the
operations or assets of the Corporation, to assume and agree to perform this
Agreement in the same manner and to the same extent that the Corporation would
be required to perform it if no succession had taken place. As used in this
Agreement, "Corporation" means the Corporation and any successor to its
operations or assets as set forth in this Section that is required by this
clause to assume and agree to perform this Agreement or that otherwise assumes
and agrees to perform this Agreement.

     16. BENEFIT CLAIMS. In the event the Executive, or his beneficiaries, as
the case may be, and the Corporation disagree as to their respective rights and
obligations under this Agreement, and the Executive or his beneficiaries are
successful in establishing, privately or otherwise, that his or their position
is substantially correct, or that the Corporation's position is substantially
wrong or unreasonable, or in the event that the disagreement is resolved by
settlement, the Corporation will pay all costs and expenses, including counsel
fees, which the Executive or his beneficiaries may incur in connection therewith
directly to the provider of the services or as may otherwise be directed by the
Executive or his beneficiaries. The Corporation will not delay or reduce the
amount of any payment provided for hereunder or setoff or counterclaim against
any such amount for any reason whatsoever; it is the intention of the
Corporation and the Executive that the amounts payable to the Executive or his
beneficiaries hereunder will continue to be paid in all events in the manner and
at the times herein provided. All payments made by the Corporation hereunder
will be final and the Corporation will not seek to recover all or any part of
any portion of any payments hereunder for any reason.

     17. FAILURE, DELAY OR WAIVER. No course of action or failure to act by the
Corporation or the Executive will constitute a waiver by the party of any right
or remedy under this Agreement, and no waiver by either party of any right or
remedy under this Agreement will be effective unless made in writing.

     18. SEVERABILITY. Whenever possible, each provision of this Agreement will
be interpreted in such a manner as to be enforceable under applicable law.
However, if any provision of this Agreement is deemed unenforceable under
applicable law by a court having jurisdiction, the provision will be
unenforceable only to the extent necessary to make it enforceable without
invalidating the remainder thereof or any of the remaining provisions of this
Agreement.

                                       14

<PAGE>   15

     19. NOTICE. All written communications to parties required hereunder must
be in writing and (a) delivered in person, (b) mailed by registered or certified
mail, return receipt requested, (such mailed notice to be effective four (4)
days after the date it is mailed) or (c) sent by facsimile transmission, with
confirmation sent by way of one of the above methods, to the party at the
address given below for the party (or to any other address as the party
designates in a writing complying with this Section, delivered to the other
party):

     If to the Corporation:

         IDEX Corporation
         Suite 400
         630 Dundee Road
         Northbrook, IL  60062
         Attention:       Vice President - General Counsel
         Telephone:       847-498-7070
         Telecopier:      847-498-9123

     with a copy to:

         Hodgson, Russ, Andrews, Woods & Goodyear, LLP
         2000 One M&T Plaza
         Buffalo, New York  14203
         Attention:       Richard E. Heath, Esq. and Richard W. Kaiser, Esq.
         Telephone:       716-856-4000
         Telecopier:      716-849-0349

     If to the Executive:

         Dennis K. Williams
         10 Triton Way
         Mashpee, MA  02649
         Telephone:       508-477-5216
         Telecopier:      508-477-6045

     with a copy to:

         Kronish Lieb Weiner & Hellman, LLP
         1114 Avenue of the Americas
         New York, New York  10036-7798
         Attention:       Paul M. Ritter, Esq.
         Telephone:       212-479-6000
         Telecopier:      212-479-6275

                                       15

<PAGE>   16

     20. MISCELLANEOUS. This Agreement (a) may not be amended, modified or
terminated orally or by any course of conduct pursued by the Corporation or the
Executive, but may be amended, modified or terminated only by a written
agreement duly executed by the Corporation and the Executive, (b) is binding
upon and inures to the benefit of the Corporation and the Executive and each of
their respective heirs, representatives, successors and assignees, except that
the Executive may not assign any of his rights or obligations pursuant to this
Agreement, (c) except as provided in Sections 4 and 11 of this Agreement,
constitutes the entire agreement between the Corporation and the Executive with
respect to the subject matter of this Agreement, and supersedes all oral and
written proposals, representations, understandings and agreements previously
made or existing with respect to such subject matter, and (d) will be governed
by, and interpreted and construed in accordance with, the laws of the State of
Illinois, without regard to principles of conflicts of law.

     21. TERMINATION OF THIS AGREEMENT. This Agreement will terminate when the
Corporation has made the last payment provided for hereunder; provided, however,
that the obligations set forth under Sections 8, 9, 10, 12, 13, 14 and 16 of
this Agreement will survive any termination and will remain in full force and
effect.

     22. MULTIPLE COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. Any party may execute
this Agreement by facsimile signature and the other party shall be entitled to
rely on such facsimile signature as evidence that this Agreement has been duly
executed by such party. Any party executing this Agreement by facsimile
signature shall immediately forward to the other party an original page by
overnight mail.

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

                                    IDEX CORPORATION

                                    By /s/ Frank J. Notaro
                                       ----------------------------------------
                                       Frank J. Notaro
                                       Vice President - General Counsel
                                          and Secretary

                                    EMPLOYEE

                                    /s/ Dennis K. Williams
                                       ----------------------------------------
                                    Dennis K. Williams

                                       16

<PAGE>   17

                                    EXHIBIT A

                          Stock Option Award Agreement

<PAGE>   18

                                    EXHIBIT B

                             Restricted Stock Award

<PAGE>   19

                                    EXHIBIT C

                               Indemnity Agreement

<PAGE>   20

                                    EXHIBIT D

                           Policy on Change in Control

<PAGE>   21

                                    EXHIBIT E

            Employee Inventions and Proprietary Information Agreement<PAGE>   1

                                                                   EXHIBIT 10.7

                                 April 24, 2000

PERSONAL AND CONFIDENTIAL

Mr. Wayne P. Sayatovic
91 West Mallard Lane
Lake Forest, Illinois  60045

Dear Wayne:

         Re:      Severance Agreement

         This is to confirm that in the event of your Termination from Service,
as hereafter defined, with IDEX Corporation or its successors ("IDEX"), within
twenty-four (24) months following, or, directly or indirectly, in connection
with, or in anticipation of, a Change of Control, as hereinafter defined, you
will be entitled to the following benefits as a severance payment (hereinafter
referred to individually as a "Severance Benefit" and collectively as "Severance
Benefits"):

         1)       Payment of your base salary and vacation pay (for vacation not
                  taken, including vacation carryover from the prior year plus a
                  pro rata accrual for the current year) accrued but unpaid
                  through the date of termination of employment payable in a
                  single lump sum payment on the last day employed or as soon
                  thereafter as practicable.

         2)       Any amount earned under the Management Incentive Compensation
                  Plan ("MICP") for the calendar year preceding the year in
                  which the termination of employment occurs which has not been
                  paid will be paid in a single lump sum payment on the last day
                  employed or as soon thereafter as practicable.

         3)       An amount equal to three times the sum of (a) your annual base
                  salary, at the rate in effect on the Determination Date, as
                  hereinafter defined, and (b) your full year's bonus under the
                  MICP at your Target Incentive Amount in effect on the
                  Determination Date, calculated in accordance with the practice
                  in effect on the Determination Date. This amount will be paid
                  in a single lump sum payment on the last day employed or as
                  soon thereafter as practicable.

<PAGE>   2

         4)       A proportionate bonus, as described in this subparagraph,
                  under the MICP. The portion of the bonus payable will be the
                  amount determined by multiplying a full year's MICP bonus, at
                  your Target Incentive Amount in effect on the Determination
                  Date, calculated in accordance with the practice in effect on
                  the Determination Date, by a fraction the numerator of which
                  is the number of full and partial calendar months in the
                  calendar year which precede the date of the termination of
                  employment and the denominator of which is 12. This amount
                  will be paid in a single lump sum payment on the last day
                  employed or as soon thereafter as practicable.

         5)       Fringe benefits for a continuing period of twenty-four (24)
                  months following the date of termination of employment.
                  Covered fringe benefits for purposes of this agreement
                  include: (a) term life insurance in an amount in effect on the
                  Determination Date, (b) medical benefits at the level in
                  effect on the Determination Date, (c) to the extent coverage
                  is available under the insurance policy in effect, the
                  personal accident plan at the level in effect on the
                  Determination Date, (d) the use of an IDEX-provided
                  automobile, plus related expenses, comparable to that provided
                  to you on the Determination Date, and (e) other miscellaneous
                  fringe benefits in effect on the Determination Date. Medical
                  benefits will be reduced to the extent of coverage provided by
                  subsequent employers. For purposes of COBRA health care
                  continuation coverage, the "qualifying event" will be deemed
                  to have occurred at the end of the twenty-four (24) month
                  period following termination of employment.

         6)       For a twenty-four (24) month period following the date of your
                  termination of employment, IDEX will promptly pay or reimburse
                  you for expenses, in an aggregate amount not to exceed 10% of
                  your annual base salary, at the rate in effect on the
                  Determination Date, incurred by you for outplacement services,
                  which may include consultants, reasonable travel, rental of an
                  office off IDEX's premises, secretarial support, and
                  photocopying, telephone, and other miscellaneous office
                  expenses.

         7)       For a sixty (60) month period following the date of the
                  Executive's termination of employment, the Corporation will
                  continue any indemnification agreement with the Executive and
                  will provide directors' and officers' liability insurance
                  insuring the Executive.

<PAGE>   3

Mr. Wayne P. Sayatovic
April 24, 2000
Page 3

                  That coverage will have limits and scope of coverage not
                  less than that in effect immediately prior to the change in
                  control. At your request, IDEX will cause a certificate of
                  insurance, in a form satisfactory to you, verifying this
                  coverage to be provided to you on an annual basis.

         8)       You shall be fully vested in your accrued benefit under any
                  qualified or non-qualified pension or profit sharing plan
                  maintained by IDEX, provided, however, if the terms of such
                  plan do not permit acceleration of full vesting, you will
                  receive a lump sum payment on the last day employed, or as
                  soon thereafter as practicable, in an amount equal to the
                  value of your accrued benefit which was not vested.

         9)       Vesting and the ability to exercise stock options granted to
                  you will be governed by the terms of the stock option plan
                  under which the options were granted and the terms of the
                  option agreement.

         Notwithstanding anything in this letter agreement or any other
agreement to the contrary, in the event it is determined that any payments or
distributions by IDEX or any affiliate (as defined under the Securities Act of
1933, as amended, and the regulations thereunder) thereof or any other person to
or for the benefit of you, whether paid or payable pursuant to the terms of this
letter agreement, or pursuant to any other agreement or arrangement with IDEX or
any such affiliate ("Payments"), would be subject to the excise tax imposed by
Section 4999 of the Internal Revenue Code of 1986, as amended, or any successor
provision, or any interest or penalties with respect to such excise tax (such
excise tax, together with any such interest and penalties, are hereinafter
collectively referred to as the "Excise Tax"), then you will be entitled to
receive an additional payment from IDEX (a "Gross-Up Payment") in an amount such
that after payment by you of all taxes (including, without limitation, any
interest or penalties imposed with respect to such taxes and any Excise Tax)
imposed upon the Gross-Up Payment, you retain an amount of the Gross-Up Payment
equal to the Excise Tax imposed upon the Payments. The amount of the Gross-Up
Payment will be calculated by the Corporation's independent accounting firm,
engaged immediately prior to the event that triggered the payment, in
consultation with the Corporation's outside legal counsel. For purposes of
making the calculations required by this Section, the

<PAGE>   4

Mr. Wayne P. Sayatovic
April 24, 2000
Page 4

accounting firm may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith interpretations
concerning the application of Sections 280G and 4999 of the Code, provided that
the accounting firm's determinations must be made with substantial authority
(within the meaning of Section 6662 of the Code). The Gross-Up Payment will be
paid on your last day employed or on the occurrence of the event that results in
the imposition of the Excise Tax, if later. If the precise amount of the
Gross-Up Payment cannot be determined on the date it is to be paid, an amount
equal to the best estimate of the Gross-Up Payment will be made on that date
and, within ten (10) days after the precise calculation is obtained, either IDEX
will pay any additional amount to you or you will pay any excess amount to IDEX,
as the case may be. If subsequently the Internal Revenue Service (IRS) claims
that any additional Excise Tax is owing, an additional Gross-Up Payment will be
paid to you within thirty (30) days of your providing substantiation of the
claim made by the IRS. After payment to you of the Gross-Up Payment, you will
provide to IDEX any information reasonably requested by IDEX relating to the
Excise Tax, you will take such actions as IDEX reasonable requests to contest
such Excise Tax, cooperate in good faith with IDEX to effectively contest the
Excise Tax and permit IDEX to participate in any proceedings contesting the
Excise Tax. IDEX will bear and pay directly all costs and expenses (including
any interest or penalties on the Excise Tax), and indemnify and hold you
harmless, on an after-tax basis, from all such costs and expenses related to
such contest. Should it ultimately be determined that any amount of an Excise
Tax is not properly owed, you will refund to IDEX the related amount of the
Gross-Up Payment.

         For purposes of this letter agreement, "Change of Control" shall have
the same meaning as under the Amended and Restated IDEX Corporation Supplemental
Executive Retirement Plan as in effect on the date of this letter.

         For the purposes of this letter agreement, Termination of Service is
defined as (1) a termination of your employment by IDEX for any reason other
than for Cause, as hereinafter defined; (2) your reasonable belief that there
has been a material diminution in responsibilities, duties, title, reporting
responsibilities within the business organization, status, role or authority
(without limiting the generality of the foregoing, such a material diminution in
responsibilities, duties, title, reporting responsibilities within the business
organization, status, role or authority will be deemed to have taken place if
any of the following occur: (a) you cease to be an officer of a reporting
company under the Securities Exchange Act of 1934, (b) you

<PAGE>   5

Mr. Wayne P. Sayatovic
April 24, 2000
Page 5

retain the position as an officer of the reporting company but your primary
responsibilities, duties, title, status, role or authority are with an entity
within the business organization which is not the reporting company or (c) your
degree of involvement in executive decision making relating to IDEX has been
materially diminished); (3) IDEX moves your primary worksite to a location
outside of the Northbrook, Illinois region which necessitates, in your
reasonable judgment, your required relocation from your current residence which
you choose not to accept; (4) a reduction in your annual base salary, reduction
in the aggregate compensation provided to you (aggregate compensation to be
determined by taking into consideration, without limitation, the target level of
MICP Awards (other than changes in award amounts which are the result of IDEX
performance), retirement or pension plans, non-qualified deferred compensation
plans, stock option awards, severance benefits, or any other fringe benefit
plan), or degradation in working conditions or (5) if following a Change of
Control where IDEX Corporation is no longer the ultimate parent corporation, the
failure of the then ultimate parent corporation (a) to appoint you to a position
with the then ultimate parent corporation having the same responsibilities,
duties, title, reporting responsibilities within the business organization,
status, role and authority as you now hold with IDEX, (b) to acknowledge and
assume, in writing, this letter agreement at the time of the Change of Control,
or (c) to acknowledge and assume, in writing, the indemnification agreement with
you which is in effect at the time the Change of Control. After notification to
you or your obtaining specific and reliable information which gives rise to your
reasonable belief, that one of the preceding events is to occur in the near
future, you may, after providing reasonable notice, voluntarily terminate your
employment (which, if prior to the happening of the event, must be effective no
earlier than, and be contingent on, the occurrence of the event) and the
termination will be deemed a Termination of Service. If a Change of Control
occurs and your responsibilities, duties, title, reporting responsibilities
within the business organization, status, role or authority are reduced or in
any manner adversely affected prior to the date of the Change of Control
(hereafter referred to as a "Modification"), and if you reasonably demonstrate
that the modification was at the request of a third party who has taken steps
reasonably calculated to effect a Change of Control or otherwise arose, directly
or indirectly, in connection with, or in anticipation of, a Change of Control,
then the level of your responsibilities, duties, title, reporting
responsibilities within the business organization, status, role or authority for
purposes of this letter agreement shall be those in effect on the date
immediately prior to the Modification. If your termination of employment occurs

<PAGE>   6

Mr. Wayne P. Sayatovic
April 24, 2000
Page 6

prior to a Change of Control and if you reasonably demonstrate that the
termination was at the request of a third party who has taken steps reasonably
calculated to effect a Change of Control or otherwise arose, directly or
indirectly, in connection with, or in anticipation of, a Change of Control, then
your termination will be deemed a Termination of Service. If one of the events
which would be a Termination of Service occurs, and if your termination of
employment at that time would be in a period of time during which you would be
unable to exercise stock options or sell shares of IDEX or its successor, either
by law or contractual agreement (a "Restrictive Period"), then you may continue
in employment until a reasonable period after the Restrictive Period ends and
your subsequent termination of employment will be a Termination of Service.

         For purposes of this letter Agreement, "Cause" exists if (1) you
breach, in a substantive and material manner, your fiduciary duty to IDEX, (2)
you commit a felony criminal act, or (3) you fail, after repeated requests of
the Chief Executive Officer of IDEX, which have been documented to you in
writing, to perform the material duties assigned to you (the nature of which
must be consistent with the duties assigned to you prior to the Change of
Control or prior to any modification of your assigned duties made in connection
with, or anticipation of, such Change of Control).

         For purposes of this letter agreement, the term "Determination Date"
means the date immediately prior to the date of (1) payment of any Severance
Benefit, (2) the Change of Control, (3) your Termination of Service, or (4) your
last day of employment, on whichever of the four preceding dates a factor (i.e.
the rate, level, amount, practice, quality or other factor, as the context may
indicate) used to calculate a Severance Benefit under this letter agreement is
the factor which will result, with respect to such Severance Benefit, in the
greatest or largest benefit to be provided. For avoidance of doubt, the
Determination Date may be different with respect to different Severance
Benefits.

         If IDEX, or any entity which has an obligation to you under this letter
agreement, fails to honor any provision of this letter agreement or if a contest
or dispute as to the terms of this letter agreement arises, all legal fees and
expenses incurred by you to enforce this agreement or to contest or dispute its
terms will be paid, or at your request, advanced, by IDEX to you or directly to
your attorney, as you may direct.

<PAGE>   7

Mr. Wayne P. Sayatovic
April 24, 2000
Page 7

         To the extent that this letter agreement provides a larger or greater
separate Severance Benefit than may be provided to you pursuant to any policy,
program, contract or arrangement previously adopted by IDEX prior to your
Termination of Service, this letter agreement will supersede and be in full
substitution of such other policy, program, contract or arrangement with respect
to the larger or greater separate Severance Benefit to be provided. To the
extent that any policy, program, contract or arrangement adopted by IDEX prior
to your Termination of Service provides a larger or greater separate severance
benefit than provided to you pursuant to this letter agreement, such other
policy, program, contract or arrangement will supersede and be in full
substitution of this letter agreement with respect to the larger or greater
separate Severance Benefit to be provided.

         This letter agreement shall apply to a Change of Control that occurs on
or before the date on which IDEX provides written notice to you that the terms
this letter agreement will terminate (the date so specified in the notice will
not be less than two years following the date of such notice), or, if a Change
of Control is pending as of such date, this letter agreement will also apply if
that Change of Control does occur in a reasonable period thereafter. If a Change
of Control has not occurred as of the date specified in the notice, or is
pending as of the date so specified in the notice and is not subsequently
consummated in a reasonable period thereafter, this letter agreement shall be
null and void.

         The terms of this letter agreement will be governed by the laws of the
State of Illinois and will be binding on IDEX and its successors (who consent to
jurisdiction in the State of Illinois with respect to the subject matter of this
letter agreement) and will inure to the benefit of your heirs. You will not be
required to mitigate the amount of any payment or benefit provided for in this
letter agreement by obtaining other employment or other sources of income or
benefits nor will the amount of any payment or benefit be reduced by offset
against any amount claimed to be owed by you to IDEX (except to the extent that
medical benefits are provided by a subsequent employer). For any matter in this
letter agreement wherein the determination of the existence of any fact or other
matter is indicated to be in your reasonable belief, your belief will be
respected and upheld provided you have obtained specific and reliable
information giving rise to your reasonable belief and unless IDEX demonstrates,
by a preponderance of the evidence, that the basis for your belief was arbitrary
or capricious. If any provision of this letter agreement is

<PAGE>   8

Mr. Wayne P. Sayatovic
April 24, 2000
Page 8

held invalid or unenforceable for any reason, all other provisions shall remain
in effect.

         All notices and other communications given pursuant to this letter
agreement will be deemed to have been properly given if hand delivered or
mailed, addressed to the appropriate party at the address as shown on the first
page of this letter agreement, postage prepaid, by certified or registered mail,
return receipt requested and, in the case of notice to IDEX to the attention of
the President. A copy of any notice sent must also be sent to Hodgson, Russ,
Andrews, Woods & Goodyear, LLP, 1800 One M&T Plaza, Buffalo, New York 14203,
Attention: Richard E. Heath, Esq. and Richard W. Kaiser, Esq. Any party may from
time to time designate, by written notice given in accordance with these
provisions, any other address or party to which such notice or communication or
copies thereof shall be sent.

                                Very truly yours,

                               /s/ Frank J. Hansen
                               ---------------------------------------
                               Frank J. Hansen

Agreed to and accepted by:

/s/ Wayne P. Sayatovic
--------------------------
Wayne P. Sayatovic

Date:  April 28, 2000

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