Document:

<PAGE>   1
                                                                    EXHIBIT 10.1

                     MICROWAVE COMPONENTS ENTERPRISES, INC.

                             1996 STOCK OPTION PLAN

                                    --------

                           Effective October 23, 1996

Dykema Gossett PLLC
400 Renaissance Center
Detroit, Michigan  48243

<PAGE>   2
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>

                                                                                              Page
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     <S>     <C>                                                                               <C>
      1.      Purpose                                                                           1

      2.      Certain Definitions                                                               1

      3.      Administration                                                                    1

      4.      Participants                                                                      1

      5.      Stock; Available Shares                                                           1

      6.      Grant of Options                                                                  2

      7.      Incentive Stock Options                                                           2

      8.      Option Price                                                                      3

      9.      Exercise of Stock Options                                                         3

      10.     Payment for Option Shares                                                         3

      11.     Effect of Termination of Services or Death                                        3

      12.     Employment with Competitor                                                        4

      13.     Adjustments -- Stock Dividend, Reclassification, Etc.                             4

      14.     Change in Control; Golden Parachutes                                              5

      15.     Rights Prior to Issuance of Shares                                                5

      16.     Non-Assignability                                                                 6

      17.     Securities Laws                                                                   6

      18.     Withholding Taxes                                                                 6

      19.     Effect on Employment/Services                                                     6

      20.     Termination and Amendment                                                         6

      21.     Use of Proceeds                                                                   7

      22.     Captions                                                                          7

      23.     Approval of Plan                                                                  7
</TABLE>

<PAGE>   3

                     MICROWAVE COMPONENTS ENTERPRISES, INC.

                             1996 STOCK OPTION PLAN

      Subject to shareholder approval, effective October 23, 1996, the stock
option plan described herein is hereby adopted as the Microwave Components
Enterprises, Inc. 1996 Stock Option Plan (the "Plan").

      1.  PURPOSE.  The purpose of the Plan is to promote the best interests
of Microwave Components Enterprises, Inc., a Michigan corporation (the
"Company"), and its shareholders by encouraging participants to acquire a
proprietary interest in the Company, thus identifying their interests with those
of its shareholders and encouraging the participants to make greater efforts on
behalf of the Company.

      2.  CERTAIN DEFINITIONS. As used in this Plan, the term "subsidiary" of
the Company means any "subsidiary corporation" as defined in Section 424(f) of
the Internal Revenue Code of 1986, as amended (the "Code"), the term "employee"
means an individual with an "employment relationship" with the Company or any
subsidiary as defined in Regulation 1.421-7(h) of the Income Tax Regulations,
and the term "employment" means employment with the Company or any subsidiary of
the Company.

      3.  ADMINISTRATION. The Plan shall be administered by the Compensation
Committee of the Board of Directors of the Company (the "Committee"). The
Committee shall interpret the Plan, prescribe, amend, and rescind rules and
regulations relating to the Plan, and make all other determinations necessary or
advisable for its administration. The decision of the Committee on any question
concerning the interpretation of the Plan or any option granted under the Plan
shall be final and binding upon all participants.

      4.  PARTICIPANTS. Participants in the Plan shall be such key employees
(including employees who are directors) and non-employee directors of the
Company or any of its subsidiaries as the Committee may select from time to
time. The Committee may grant incentive stock options to an individual upon the
condition that the individual become an employee of the Company or any
subsidiary, provided that such option shall be deemed to be granted only on the
date the individual becomes an employee.

      5.  STOCK; AVAILABLE SHARES. The stock subject to options under the Plan
shall be the Common Stock, without par value, of the Company ("Common Stock"),
and may be either authorized and unissued shares or shares reacquired by the
Company. The total amount of Common Stock on which options may be granted under
the Plan shall not exceed 22,094 shares, subject to adjustment in accordance
with Section 13 hereof. Shares subject to any unexercised portion of a
terminated, cancelled or expired option granted under the Plan may again be
subjected to options under the Plan.

<PAGE>   4

      6.  GRANT OF OPTIONS. The Committee, at any time and from time to time,
subject to Section 20, may grant options to such participants and for such
number of shares of Common Stock as it shall designate. The Committee shall
determine the general terms and conditions of exercise, including any applicable
vesting requirement and any performance requirement. The Committee may designate
any option granted as either an incentive stock option or a nonqualified stock
option, or the Committee may designate a portion of an option as an incentive
stock option or a nonqualified stock option. An incentive stock option is an
option intended to meet the requirements of Section 422 of the Code. A
nonqualified stock option is an option granted under the Plan other than an
incentive stock option. Each option granted under the Plan shall meet all of the
terms and conditions of the Plan, except that an incentive stock option shall
comply with the additional requirements of Section 7. Any participant may hold
more than one option under the Plan and any other stock option plan or other
incentive stock plan of the Company. The date on which an option is granted
shall be the date of the Committee's authorization of the option or such later
date as shall be determined by the Committee at the time the option is
authorized. Each option shall be evidenced by a stock option agreement in such
form and containing such provisions not inconsistent with the Plan as the
Committee shall direct (the "Agreement").

      7.  INCENTIVE STOCK OPTIONS.  Any option intended to constitute an
incentive stock option shall comply with the following requirements:

          (a)   Subject to subsection (c) below, no incentive stock option
shall be granted with an exercise price below its fair market value on the date
of grant or with an exercise term that extends beyond ten (10) years from the
date of grant;

          (b)   No incentive stock option shall be granted to a non-employee
director of the Company or any of its subsidiaries;

          (c)   No incentive stock option shall be granted to any participant
who owns (within the meaning of Section 424(d) of the Code) stock of the Company
or its subsidiaries possessing more than 10% of the total combined voting power
of all classes of stock of the Company and its subsidiaries unless (i) at the
date of grant of an option to such a participant, the exercise price for the
option is at least 110% of the fair market value of the shares subject to the
option, and (ii) the option, by its terms, is not exercisable more than five (5)
years after the date of grant; and

          (d)   The aggregate fair market value of the underlying Common Stock
(determined as of the time the options are granted) as to which incentive stock
options under the Plan (or a plan of a subsidiary corporation) may first be
exercised by a participant in any one calendar year shall not exceed $100,000.
To the extent that a participant shall receive aggregate incentive stock options
to purchase Common Stock that first become exercisable in one calendar year with
a fair market value at the grant date in excess of $100,000, the portion of the
options in excess of $100,000 shall be treated as nonqualified stock options,
which shall be determined by the order in which the options were granted.

<PAGE>   5
      8.   OPTION PRICE.  The Committee shall determine the option price per
share for each option granted under the Plan. Subject to Section 7 above, all
incentive stock options shall have an option price equal to at least 100% of the
fair market value of the Common Stock on the date of grant. The Committee, at
its discretion, may grant nonqualified stock options with an exercise price
below 100% of the fair market value of the Common Stock on the date of grant.

      9.   EXERCISE OF STOCK OPTIONS.

           (a)  The Committee, at its discretion, shall determine the general
terms and conditions of exercise, which shall be set forth in a participant's
Agreement.

           (b)  No stock option shall be exercisable after the tenth
anniversary of the date of grant, or such lesser period as the Committee may
specify from time to time.

           (c)  The Committee, in its sole discretion, may accelerate the time
at which any option may be exercised in whole or in part.

           (d)  The Committee may permit and, if so permitted, shall establish
procedures for, the partial exercise of options granted under the Plan.

           (e)  All shares of Common Stock issued upon the exercise of an option
shall be subject to such shareholder agreements regarding restrictions on
transfer, etc., as the Committee shall determine, including, without limitation,
the Stockholder Agreement, dated July 23, 1996, among the Company, National City
Capital Corporation, Hanifen Imhoff Mezzanine Fund, L.P. and the several holders
of Common Stock named therein.

      10.  PAYMENT FOR OPTION SHARES.  The purchase price for shares of Common
Stock to be acquired upon exercise of an option granted hereunder shall be paid
in full in cash or by personal check, bank draft or money order at the time of
exercise.

      11.  EFFECT OF TERMINATION OF SERVICES OR DEATH.

           (a)  If, prior to the date that any option shall first become
exercisable, the participant's services shall be terminated, with or without
cause, or by the act, death, disability (as defined in Section 22(e) of the
Code), or retirement of the participant, the participant's right to exercise the
option shall terminate and all rights thereunder shall cease.

           (b)  If, on or after the date that any option shall first become
exercisable, a participant's services shall be terminated for any reason other
than death or disability (as defined in Section 22(e) of the Code), the
participant shall have the right, within the earlier of (i) the expiration of
the option, or (ii) three months after such termination of services, to exercise
the option to the extent that it shall have been exercisable and is unexercised
on the date of such termination of services, subject to any other limitation on
the exercise of the option in effect at the date of exercise; provided, however,
that the term of the option may be extended further at the discretion of the
Committee, but not beyond the expiration date stated in the original grant.

<PAGE>   6
           (c)  If, on or after the date that any option shall first become
exercisable, the participant shall die (either while employed by the Company or
within three months after termination) or become disabled (as defined in Section
22(e) of the Code), the participant, or the person or persons to whom the option
shall have been transferred by will or by the laws of descent and distribution
(in the case of a participant's death), shall have the right, within the earlier
of (i) the expiration of the option, or (ii) one year from the date of the
participant's termination of services due to death or disability to exercise the
option to the extent that it was exercisable and unexercised on such date,
subject to any other limitation on exercise in effect at the date of exercise;
provided, however, that the term of the option may be extended further, at the
discretion of the Committee, but not beyond the expiration date stated in the
original grant.

           (d)  The transfer of an employee from one corporation to another
among the Company and any of its subsidiaries, or a leave of absence with the
written consent of the Company or subsidiary shall not be a termination of
services for purposes of the Plan.

      12.  EMPLOYMENT WITH COMPETITOR.

           (a)  If a participant accepts employment with a competitor of the
Company or a subsidiary at any time within two (2) years after the exercise of
an option hereunder, the participant shall be obligated to promptly return to
the Company a cash amount equal to the option spread on the date of exercise
(i.e., the difference between the exercise price and the fair market value on
the date of exercise).

           (b)  The determination as to whether a participant's employer is a
competitor of the Company or a subsidiary shall be made by the Committee in its
sole discretion acting.

      13.  ADJUSTMENTS -- STOCK DIVIDEND, RECLASSIFICATION, ETC.

           (a)  The total amount of Common Stock for which options may be
granted under the Plan, and the number of shares subject to any option granted
to a participant (both as to the number of shares of Common Stock and the option
price), shall be appropriately adjusted for any increase or decrease in the
number of outstanding shares of Common Stock resulting from payment of a stock
dividend on Common Stock, a subdivision or combination of shares of Common
Stock, a stock split or a reclassification of Common Stock, and in the event of
a merger, consolidation or share exchange in which the Company shall be the
surviving corporation.

           (b)  The foregoing adjustments, and their application to particular
circumstances, shall be determined by the Committee in its sole discretion. Any
such adjustment may provide for the elimination of any fractional share which
might otherwise become subject to an option.

<PAGE>   7
      14.  CHANGE IN CONTROL; GOLDEN PARACHUTES.

           (a)  Notwithstanding any other provisions to the contrary in this
Plan, upon a Change in Control (as defined below), all outstanding options
immediately shall become exercisable in full and the Committee, at its
discretion, may make appropriate arrangements for the substitution of a new
option for a participant's options or an assumption of the participant's options
in a transaction that provides equivalent value to the participant and meets the
requirements of Section 424(a) of the Code; provided, however, that to the
extent that the acceleration of a grant is deemed to constitute a "golden
parachute payment" under Section 280G of the Code and such payment, when
aggregated with other golden parachute payments to the participant results in an
"excess golden parachute payment" under Section 280G of the Code, any
accelerated payment under this Section 13 shall be reduced to the highest
permissible amount that shall not subject the participant to an excess golden
parachute excise tax under Section 4999 of the Code and shall entitle the
Company to retain its full compensation tax deduction for the payment.

           (b)   As used herein "Change in Control" means the occurrence of any
one of the following events:

                 (i)  If any person or group of persons acting in concert,
      other than the Company, a subsidiary, the holders of Common Stock as of
      the date hereof or an employee benefit plan or employee benefit plan trust
      maintained by the Company or a subsidiary, becomes the "beneficial owner"
      (as such term is defined in Rule 13d-3 of the Securities Exchange Act of
      1934, as amended, except that a person also shall be deemed the beneficial
      owner of all securities which such person may have a right to acquire,
      whether or not such right is presently exercisable), directly or
      indirectly, of securities of the Company representing fifty percent (50%)
      or more of the combined voting power of the Company's then outstanding
      securities ordinarily having the right to vote in the election of
      directors; or

           (ii)  A liquidation or dissolution of the Company, sale of all or
      substantially all of the assets of the Company, or a merger,
      consolidation, share exchange or other combination in which the Company is
      not the survivor; or

           (iii) The addition of new members to the Board of Directors of
      the Company within any consecutive twenty-four (24) month period, which
      members constitute a majority of the Board, unless a majority of the Board
      consists of incumbent members of the Board in office prior to the
      commencement of such twenty-four (24) month period, plus new members who
      were recommended or appointed by a majority of the incumbent directors in
      office immediately prior to the addition of such new members to the Board.

      15. RIGHTS PRIOR TO ISSUANCE OF SHARES. No participant shall have any
rights as a shareholder with respect to any shares covered by an option until
the issuance of a stock certificate to the participant for such shares. Without
limiting the generality of the foregoing, no adjustment shall be made for
dividends or other rights with respect to such shares for which the record date
is prior to the date such certificate is issued.

<PAGE>   8

      16.   NON-ASSIGNABILITY. No option shall be transferable by a participant
except by will or the laws of descent and distribution. During the lifetime of a
participant, an option shall be exercised only by the participant. No transfer
of an option by will or by the laws of descent and distribution shall be
effective to bind the Company unless the Company shall have been furnished with
written notice thereof and a copy of the will or such evidence as the Company
may deem necessary to establish the validity of the transfer and the acceptance
by the transferee of the terms and conditions of the option or stock
appreciation right.

      17.   SECURITIES LAWS.

            (a)   Notwithstanding anything to the contrary herein, the Company's
obligation to sell and deliver Common Stock pursuant to the exercise of an
option is subject to such compliance with federal and state laws, rules and
regulations applying to the authorization, issuance or sale of securities as the
Company deems necessary or advisable. The Company shall not be required to sell
and deliver stock unless and until it receives satisfactory assurance that the
issuance or transfer of such shares shall not violate any provisions of any
federal or state law, rule or regulation governing the sale of securities, or
that there has been compliance with the provisions of such laws, rules and
regulations.

            (b)   The Committee may impose such restrictions on any shares of
Common Stock acquired pursuant to the exercise of an option under the Plan as it
may deem advisable, including, without limitation, restrictions under applicable
federal securities law or under any applicable state securities or "blue sky"
laws.

      18.   WITHHOLDING TAXES.  The Company shall have the right to withhold
from a participant's compensation or require a participant to remit sufficient
funds to the Company to satisfy any applicable withholding requirements for
income and employment taxes in the event of the exercise of an option.

      19.   EFFECT ON EMPLOYMENT/SERVICES. Neither the adoption of the Plan nor
the granting of any option pursuant to it shall be deemed to create any right in
any individual to be retained or continued in the employment (or services as a
director) of the Company or any of its subsidiaries.

      20.   TERMINATION AND AMENDMENT.

            (a)  The Board of Directors of the Company may terminate the Plan,
or the granting of options under the Plan, at any time. No option shall be
granted under the Plan ten (10) years after adoption of the Plan by the Board of
Directors of the Company or approval of the Plan by the shareholders of the
Company, whichever is earlier. Termination of the Plan shall not affect the
rights of the holders of any options previously granted and then outstanding.

<PAGE>   9
            (b) The Board of Directors of the Company may amend or modify the
Plan at any time and from time to time, but no amendment or modification,
without the approval of the shareholders of the Company, shall (i) increase the
amount of Common Stock as to which options may be granted, except as otherwise
permitted under Section 13, (ii) change the minimum option price, or (iii)
change the provisions relating to the eligibility of individuals to whom options
may be granted. No amendment, modification, or termination of the Plan shall in
any manner affect any option granted under the Plan without the consent of the
participant holding the option.

      21.   USE OF PROCEEDS.  The proceeds received from the sale of Common
Stock pursuant to the Plan will be used for general corporate purposes of the
Company.

      22.   CAPTIONS.  The captions and headings of the sections and the
subsections have been inserted as a matter of convenience and reference only and
shall not control or affect the meaning or construction of this Plan.

      23.   APPROVAL OF PLAN. The Plan shall be subject to the approval of the
holders of at least a majority of the shares of Common Stock of the Company
present and entitled to vote at a meeting of shareholders of the Company held
within twelve (12) months after adoption of the Plan by the Board of Directors.
No option granted under the Plan may be exercised in whole or in part until the
Plan has been approved by the shareholders as provided herein. If not approved
by shareholders within such twelve-month period, the Plan and any options
granted hereunder shall become void and of no effect.

                                    MICROWAVE COMPONENTS ENTERPRISES, INC.

                                    By: /s/ JOHN K. CANNON
                                       ----------------------------------------
                                        Chairman of the Compensation Committee

                                          *   *   *

                          BOARD APPROVAL:         October 23, 1996

                          SHAREHOLDER APPROVAL:   April 15, 1997

<PAGE>   10
                               MCE COMPANIES, INC.

                                 AMENDMENT NO. 1
                                       TO
                             1996 STOCK OPTION PLAN

         Effective as of July 20, 2000, Section 5 of the 1996 Stock Option Plan
(the "Plan") adopted by MCE Companies, Inc., a Michigan corporation f/k/a
Microwave Components Enterprises, Inc. (the "Company"), is amended and restated
to read in its entirety as follows:

         "    5. STOCK; AVAILABLE SHARES. The stock subject to options under the
Plan shall be the Common Stock, without par value, of the Company ("Common
Stock"), and may be either authorized and unissued shares or shares reacquired
by the Company. The total amount of Common Stock on which options may be granted
under the Plan shall not exceed 11,047 shares, subject to adjustment in
accordance with Section 13 hereof. Shares subject to any unexercised portion of
a terminated, cancelled or expired option granted under the Plan may again be
subjected to options under the Plan."

         Capitalized terms not otherwise defined herein shall have the
respective meanings set forth in the Plan.

         Except as set forth above with respect to Section 5 of the Plan, all of
the terms and conditions of the Plan shall continue and remain in full force and
effect.

         This Amendment No. 1 was approved by the Board of Directors of the
Company at its meeting held July 20, 2000 and is hereby executed on behalf of
the Company to be effective as of the 20th day of July, 2000.

                                  MCE COMPANIES, INC.

                                  By: /s/ John L. Smucker
                                      ------------------------------------
                                           John L. Smucker, President

                                  By: /s/ John K. Cannon
                                      ------------------------------------
                                           John K. Cannon, Chairman of the
                                              Compensation Committee<PAGE>   1
                                                                    EXHIBIT 10.3

                              EMPLOYMENT AGREEMENT

         This EMPLOYMENT AGREEMENT (the "Agreement"), dated as of December 30,
1996, is made between MICROWAVE COMPONENTS ENTERPRISES, INC., a Michigan
corporation (the "Company"), and JOHN L. SMUCKER (the "Employee").

                                    Recitals

         A. For the period prior to the date hereof, (i) the Employee has served
the Company as a director and as the President, as well as being a significant
shareholder, (ii) the Employee has served each of Inmet Corporation, a Michigan
corporation and a wholly-owned subsidiary of the Company ("Inmet"), KDI/Triangle
Corporation, a Michigan corporation and a wholly-owned subsidiary of the Company
("KDI"), and Weinschel Corporation, a Michigan corporation and a wholly-owned
subsidiary of the Company ("Weinschel"), variously as a director and the
Chairman of the Board, and (iii) until September 1996, the Employee had not
served as an employee of the Company or its subsidiaries.

         B. Each of the subsidiaries of the Company are parties to a Management
Consulting Agreement with Merchant Financial, Inc., a Michigan corporation and
an affiliate of the Employee ("MFI"), pursuant to which, among other things, MFI
provided consulting services to each of the subsidiaries in exchange for the
following (collectively, the "Management Consulting Agreements"):

         -        Inmet -- payment of a monthly management fee of $7,000 and
                  additional payments to MFI based on the phantom participation
                  by it in the Inmet Corporation Management Bonus Plan and the
                  Inmet Corporation Stock Appreciation Rights Plan;

         -        KDI -- payment of a monthly management fee of $10,000 and
                  additional payments to MFI based on the phantom participation
                  by it in any Management Bonus Plan and any Stock Appreciation
                  Rights Plan similar to those adopted by Inmet which are
                  adopted by KDI; and

         -        Weinschel -- payment of a monthly management fee of $7,000 and
                  additional payments to MFI based on the phantom participation
                  by it in any Management Bonus Plan and any Stock Appreciation
                  Rights Plan similar to those adopted by Weinschel which are
                  adopted by Weinschel.

<PAGE>   2

Beginning with the effective time of the Employee's employment with the Company
in September 1996, each of the subsidiaries stopped paying the consulting fees
to MFI under their respective Management Consulting Agreements and, as a result
thereof, began up-streaming to the Company sufficient monies for purposes of
enabling the Company to pay Mr. Smucker, as an employee, an annual salary of
$250,000.

         C. Section 8.03 of the Note, Warrant and Preferred Stock Purchase
Agreement (the "Purchase Agreement"), dated July 23, 1996, among the Company,
National City Capital Corporation ("NCCC") and Hanifen Imhoff Mezzanine Fund,
L.P. ("HI") provides, in pertinent part, that, on or before December 31, 1996,
(i) the Company and the Employee shall have entered into an employment agreement
with a term of at least five (5) years in form and substance reasonable
satisfactory to NCCC and HI, it being acknowledged and agreed that the
compensation related thereto shall be at least equal to the aggregate of all
compensation (including incentive compensation) set forth in the Management
Consulting Agreements and shall not exceed 115% thereof, and (ii) the Company
and the Employee shall have terminated the Management Consulting Agreements.

                                    Agreement

         NOW, THEREFORE, in consideration of the premises and the mutual
promises and agreements hereinafter set forth, the parties hereto agree as
follows:

         1.  Employment. The Company hereby agrees to employ the Employee, and
the Employee hereby accepts employment with the Company, as the President of the
Company, upon the terms and conditions contained herein. The Employee agrees to
perform the duties and responsibilities normally incident to the position of
President and to follow the directives of the Board of Directors and perform all
job assignments communicated to him by the Board of Directors. The Employee
shall devote such of his business and professional time and efforts to the
performance of his duties for the Company hereunder as the Board of Directors
shall deem prudent. Without limiting the generality of the foregoing, and
notwithstanding anything herein to the contrary, nothing herein shall obligate
the Employee to discontinue his affiliation with and his performance of services
on behalf of MFI.

         2.  Term. The term of employment under this Agreement shall commence on
January 1, 1997 and shall expire on December 31, 2001 unless sooner terminated
as provided herein (the "Term"). Neither the Employee nor the Company is under
any obligation to renew or extend the Employee's employment beyond the term of
this Agreement.

         3.  Compensation.  During the term of employment, the Employee's
compensation shall be as follows:

<PAGE>   3

                  (a) Salary. For all services to be performed by the Employee
under this Agreement (including, without limitation, services, if any, as an
officer, director, employee, and/or member of any committee of the Company or
any division or subsidiary of the Company), the Employee shall receive an annual
salary in an amount equal to $250,000, provided that such salary is subject to
increase from time to time by the Board of Directors of the Company in its sole
discretion. The salary shall be payable in accordance with the Company's
customary payroll practices.

                  (b) Bonus. The Employee shall be entitled receive such
bonuses, if any, as shall be awarded from time to time by the Board of Directors
in their sole discretion.

                  (c) Incentive Compensation.

                       (i) Management Bonus Plans.  It is acknowledged
and agreed that, with respect to the Management Bonus Plans in effect at or to
be adopted by Inmet, KDI, Weinschel and any other subsidiaries of the Company,
comparable incentive compensation shall be paid to the Employee as if he were a
participant in each of such Plans on the basis of the same percentage of
compensation paid as a bonus to the management employees of such subsidiaries
applied to the salary payable herein which the Board of Directors determines
from time to time is allocable to each such subsidiary; initially, the parties
agree that 29.167%, 41.666% and 29.167% of the salary payable hereunder shall be
allocated to Inmet, KDI and Weinschel, respectively.

                      (ii) Stock Appreciation Rights Plans.  It is acknowledged
and agreed that the Employee shall not be eligible to participate in the Stock
Appreciation Rights Plans in effect at or to be adopted by Inmet, KDI, Weinschel
and any other subsidiaries of the Company.

                     (iii) Incentive Stock Plans.  It is acknowledged and agreed
that the Employee shall be eligible to participate in such incentive stock plans
as the Company shall adopt form time to time during the Term, including, without
limitation, the 1996 Stock Option Plan effective as of October 23, 1996 and the
grant, effective December 10, 1996, of an incentive stock option thereunder for
the purchase of 11,047 shares of Common Stock.

                  (d)      Reimbursement of Expenses.  The Employee shall be
reimbursed for all reasonable business expenses incurred in the performance of
his duties hereunder.

                  (e)      Employee Benefit and Profit Sharing Programs. In the
event that the Company makes available any health, dental, disability, profit
sharing or other similar employee benefit programs to any of its employees, the
Company shall also make available the same or substantially the same employee
benefit programs to the Employee on the same or substantially the same terms and
conditions. The Company reserves the right to, with or without cause or notice,
modify, amend or terminate such employee benefit programs or to select or change
the insurance carriers (or to self-insure) with respect to such employee benefit
programs. Terms and conditions of the insurance policies are controlling and
final determination or eligibility for benefits is the responsibility of the
applicable insurance carrier.

<PAGE>   4

                  (f)     Vacation.  The Employee shall be eligible for thirty
(30) regular working days of paid vacation per calendar year.

Notwithstanding anything to the contrary in this Section 3, during each fiscal
year in the Term, the sum of the salary described in Section 3(a) above and paid
to the Employee, plus the bonuses, if any, described in Section 3(b) above and
paid to the Employee shall not exceed $331,200 (i.e., the product of 115% x
$288,000).

         4.       Termination.

                  (a)     Death or Disability. The Employee's term of employment
hereunder shall terminate upon his death or Disability (as defined herein). As
used herein, "Disability" shall have the meaning set forth in Section 22(e) of
the Internal Revenue Code of 1986, as amended (the "Code"). In the event the
Employee dies during the Term, the Company shall have no further obligation to
make payments to the Employee under this Agreement except to compensate the
Employee in accordance with Section 3 hereof through or as of the date of death.
The Company and Employee acknowledge that, due to the Employee's significant
role in the management of the Company, continuation of the Employee's employment
beyond the disability period would place an undue hardship on the Company. In
the event the Employee suffers a Disability during the Term, the Company shall
pay the Employee one hundred percent (100%) of his salary (less withholding and
payroll taxes) for a period of six (6) months or the remainder of the Term
(which ever is shorter) and, if applicable, after such period, pay the Employee
fifty percent (50%) of his salary (less withholding and payroll taxes) for the
remainder of the Term (the "Disability Payments"). The Company may, in its sole
discretion, maintain disability insurance on behalf of the Employee and, to the
extent the Employee receives any disability insurance benefits therefrom, the
Company's obligation to make the foregoing Disability Payments shall be offset
in a like amount. If the Employee is eligible for benefits under the Workers'
Disability Compensation Act, any such benefits shall be offset against the
Company's obligation to make Disability Payments and any benefits received from
the Company's disability insurance.

                  (b)     With or Without Cause.

                          (i)      For Cause.  The Company may terminate the
Employee's term of employment hereunder immediately without prior written
notice, for Cause (as defined below). In the event of such a termination for
Cause, the Company shall have no further obligation to make payments to the
Employee under this Agreement except to compensate the Employee in accordance
with Section 3 hereof through or as of the effective date of termination. As
used herein, "Cause" shall mean termination by the Company in accordance with
established standards recognized by employment relations arbitrators, including,
but not limited to: (A) the Employee's failure to substantially perform his
services hereunder, other than any such failure resulting from his Disability,
including the failure to comply with the policies, rules or directives of the
Board of Directors of the Company, with such failure to be determined in the
good faith opinion of the Board of Directors by affirmative vote of two-thirds
of the directors (but not including the Employee if the Employee is a Director),
provided that the Employee shall have

<PAGE>   5

received ninety (90) days prior written notice of the Board's concern with
respect to such failure and shall have failed to cure such failure within such
ninety (90) day period; (B) the Employee's engaging in any serious misconduct
which, in the good faith opinion of the Board of Directors by affirmative vote
of two-thirds of the directors (but not including the Employee if the Employee
is a Director), is substantially injurious to the Company's business; (C) the
Employee's performance of any act or acts of dishonesty resulting or intended to
result directly or indirectly in significant gain or personal enrichment at the
expense of the Company, with the foregoing to be determined in the good faith
opinion of the Board of Directors by affirmative vote of two-thirds of the
directors (but not including the Employee if the Employee is a Director); and
(D) the Employee's conviction of a felony, misdemeanor resulting in a jail
sentence or any crime involving moral turpitude.

                  (ii) Without Cause.  The Company may terminate the
Employee's term of employment hereunder without prior written notice, without
Cause. If this Agreement is terminated by the Company without Cause, the
Employee shall be entitled to receive liquidated damages equal to one hundred
percent (100%) of his salary (less withholding and payroll taxes) for the
remainder of the Term.

                  (c)  Termination due to Breach. The Company may terminate the
Employee's term of employment hereunder if the Employee shall have breached one
or more of his agreements with the Company or its subsidiaries, including those
contained in this Agreement, except to the extent such breach or breaches would
not reasonably be likely to have a material and adverse effect on the Company or
its subsidiaries, taken as a whole, with the foregoing to be determined in the
good faith opinion of the Board of Directors by affirmative vote of two-thirds
of the directors (but not including the Employee if the Employee is a Director),
provided that the Employee shall have received thirty (30) days prior written
notice of the Board's concern with respect to such breach and shall have failed
to cure such breach within such thirty (30) day period. In the event of such a
termination due to a breach, the Company shall have no further obligation to
make payments to the Employee under this Agreement except to compensate the
Employee in accordance with Section 3 hereof through or as of the effective date
of termination.

         5.       Noncompetition Matters.

                  (a)  Covenant. The Employee hereby acknowledges and recognizes
the competitive nature of the business of the Company and, accordingly, in
partial consideration of the consummation of this Agreement, the Employee agrees
that, during the Noncompetition Period (as defined below), the Employee will
not, directly or indirectly, whether as an officer, director, executive,
proprietor, employee, partner, investor (other than as a holder of less than
five percent (5%) of the outstanding stock of a publicly traded corporation),
consultant, independent contractor, advisor, agent, or otherwise, engage in any
Business Activities (as defined below) in competition with the Company or its
subsidiaries.

                  (b)  Noncompetition Period. As used herein, the term
"Noncompetition Period" shall mean the period commencing with the date hereof
and ending on the first (1st) anniversary of the termination of the Employee's
employment with the Company or the fifth

<PAGE>   6

(5th) anniversary of the date hereof, which ever is earlier, provided that the
Noncompetition Period shall end immediately if the Company terminates the
Employee's employment under this Agreement without Cause.

                  (c) Business Activities. As used herein, the term "Business
Activities" shall mean designing, manufacturing and marketing catalog and custom
engineered RF and electronic microwave frequency components and subassemblies,
which components and subassemblies are utilized in a wide variety of commercial
applications and defense systems relating to telecommunications, cellular
telephone cell site equipment, radar, navigation, military electronic
countermeasures and medical and industrial monitoring and tracking systems in
air, ground, sea and space environments.

                  (d) Irreparable Harm; Injunctive Relief. The Employee
acknowledges that if he violates the terms of this Section 5, he will cause
severe and irreparable injury to the business and goodwill of the Company, which
injury is not adequately compensable by money damages. Accordingly, in the event
of a breach of this Section 5, the Company shall, in addition to any other
rights and remedies, be entitled to immediate and appropriate injunctive relief,
or a decree of specific performance of this Agreement, without the necessity of
showing any irreparable injury or special damages, in an appropriate court
having equitable jurisdiction in the matter in the State of Michigan.

                  (e) Enforceability. If the terms of this Section 5 shall be
held by a court to be invalid or unenforceable because it is too broad in any
respect, this Agreement shall be narrowed by the court to the extent deemed
necessary by the court to be enforceable.

         6.       Confidentiality.

                  (a) Covenant. The Employee agrees to at all times (i.e.,
during the Term and thereafter without limitation) hold in confidence and keep
secret and inviolate all of the confidential information of the Company (which,
for purposes of this Section 6, includes Inmet, KDI and Weinschel, as well as
any other direct or indirect subsidiary of the Company), including, without
limitation, all unpublished matters relating to the business, property,
accounts, books, records, customers and contracts of the Company which he may or
hereafter come to know; provided, however, that the Employee may (i) disclose
any such information which has otherwise entered the public domain (other than
through a breach of this Agreement) or which he is required to disclose to any
governmental authority by law or subpoena or judicial process, and (ii) disclose
so much of such information to personal tax or financial advisors as may be
required to enable such advisors to render appropriate advice to the Employee.

                  (b) Irreparable Harm; Injunctive Relief. The Employee
acknowledges that if he violates the terms of this Section 6, he will cause
severe and irreparable injury to the business and goodwill of the Company, which
injury is not adequately compensable by money damages. Accordingly, in the event
of a breach of this Section 6, the Company shall, in addition to any other
rights and remedies, be entitled to immediate and appropriate injunctive relief,
or a decree of specific performance of this Agreement, without the necessity of
showing any irreparable injury or special damages, in an appropriate court
having equitable jurisdiction in the matter in the State of Michigan.

<PAGE>   7
         7. Arbitration. The Company and the Employee agree that, except for the
injunctive relief described above in Section 5(d), any and all disputes, claims
or controversies arising in connection with this Agreement shall be finally
settled by arbitration pursuant to the Voluntary Labor Arbitration Rules of the
American Arbitration Association, as then in effect. In the event of any
conflict between such Rules and the provisions of this Agreement, the provisions
of this Agreement shall govern. In selecting the eligible arbitrators, the
American Arbitration Association will give due consideration to the subject
matter of the dispute. The arbitrator's sole authority shall be to interpret and
apply the provisions of this Agreement; the arbitrator shall not change, add to,
or subtract from, any of the provisions of this Agreement. The arbitrator shall
have the power to compel attendance of witnesses at the hearing. The arbitration
hearing shall be conducted in the metropolitan area of Detroit, Michigan. All
expenses of the arbitration shall be divided equally between the Company and the
Employee. Each party will be responsible for its/her own legal fees and other
costs relating to the arbitration proceeding. Any decision, award and/or
judgment rendered by the arbitrators may be entered in and enforced by any court
having competent jurisdiction thereof.

         7. Miscellaneous.

            (a)     Notices. All notices, demands and other communications
hereunder shall be in writing and, unless otherwise specifically provided
herein, shall be deemed to have been duly given and received when physically
delivered, telephonically transmitted via telecopier or other similar means or
five (5) business days after having been deposited in the United States Mail, as
certified mail with return receipt requested and with postage prepaid, addressed
to the recipient, as follows:

                    If to the Employee:

                    John L. Smucker
                    789 Trombley
                    Grosse Pointe Park, Michigan  48230
                           (313-331-5915)

                    If to the Company:

                    Colleen M. Spencer, Treasurer
                    c/o Inmet Corporation
                    300 Dino Drive
                    Ann Arbor, Michigan  48103
                           (313-426-5553; fax 313-426-5557)

                    and to:

                    John K. Cannon, Secretary
                    5410 Osprey Court
                    Sanibel, Florida  33957
                          (941-395-9602 [for fax, push "*"])

                    with a courtesy copy to:

                    Dykema Gossett PLLC
                    400 Renaissance Center
                    Detroit, Michigan 48243
                          (313-568-5374; fax 313-568-6915)
                    Attention: J. Michael Bernard

Such names and addresses may be changed by written notice.

<PAGE>   8
                  (b)    Counterparts.  This Agreement may be executed in
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

                  (c)    Captions. The captions to the sections and subsections
contained in this Agreement are for reference only, do not form a substantive
part of this Agreement and shall not restrict or enlarge substantive provisions
of this Agreement.

                  (d)    Parties in Interest.  This Agreement shall bind and
shall inure to the benefit of the parties hereto, their respective successors
and assigns.

                  (e)    Complete Agreement. This Agreement shall constitute the
entire agreement between the parties hereto and shall supersede all proposals,
oral or written, and all other communications between the parties relating to
the subject matter of this Agreement.

                  (f)    Modifications.  The terms of this Agreement cannot be
modified except in writing and signed by the parties hereto.

                  (g)    Assignment. Except as otherwise expressly provided in
this Agreement, the rights and obligations provided by this Agreement shall not
be assignable by any party without the prior written consent of the other
parties.

                  (h)    Severability. In the event that any one or more of the
provisions of this Agreement should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
contained herein shall not in any way be affected or impaired thereby.

                  (I)    GOVERNING LAW.  THE TERMS OF THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH MICHIGAN LAW.

<PAGE>   9

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                         MICROWAVE COMPONENTS ENTERPRISES, INC.,
                                         the Company

                                         By:      /s/ Colleen M. Spencer
                                                  ------------------------------
                                                  Colleen M. Spencer, Treasurer

                                         By:      /s/ John K. Cannon
                                                  ------------------------------
                                                  John K. Cannon, Secretary

                                         /s/ John L. Smucker
                                         ---------------------------------------
                                         JOHN L. SMUCKER, the Employee

<PAGE>   10
                               MCE COMPANIES, INC.

                                 AMENDMENT NO. 1
                                       TO
                              EMPLOYMENT AGREEMENT

         This AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT ("Amendment No. 1"), dated
as of August 15, 2000, is made between MCE COMPANIES, INC., a Michigan
corporation f/k/a Microwave Components Enterprises, Inc. (the "Company"), and
JOHN L. SMUCKER (the "Employee").

                                    RECITALS

         1. Prior to the date hereof, the parties hereto entered into that
certain Employment Agreement, dated December 30, 1996 (the "Employment
Agreement").

         2. Pursuant to a Consent Agreement, dated as of July 25, 2000, among
the Company, National City Capital Corporation ("NCCC"), and Hanifen Imhoff
Mezzanine Fund, L.P. ("Hanifen" and, together with NCCC, the "1996 Purchasers"),
the 1996 Purchasers have provided their consent under that certain Amended and
Restated Note, Warrant and Preferred Stock Purchase Agreement, dated as of July
21, 2000, among the Company and the 1996 Purchasers with respect to this
Amendment No. 1.

         3. Pursuant to a Consent Agreement, dated as of July 25, 2000, among
the Company, NCCC, Great Lakes Capital Investments I, LLC ("GLCI") and Rocky
Mountain Mezzanine Fund II, L.P. ("RMMF" and, together with NCCC and GLCI, the
"1999 Purchasers"), the 1999 Purchasers have provided their consent under that
certain Senior Subordinated Note and Warrant Purchase Agreement, dated as of
July 28, 1999, as amended, among the Company and the 1999 Purchasers with
respect to this Amendment No. 1.

         4. The parties hereto desire to amend the Employment Agreement in the
manner set forth below.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of these premises and subject to the
terms and conditions contained herein and for the other consideration provided
herein, the parties agree as follows:

         A. Termination of Compensation Cap. The last paragraph of Section 3 of
the Employment Agreement, a copy of which is set forth below, is hereby
terminated and without

<PAGE>   11

further force or effect:

         "Notwithstanding anything to the contrary in this Section 3, during
each fiscal year in the Term, the sum of the salary described in Section 3(a)
above and paid to the Employee, plus the bonuses, if any, described in Section
3(b) above and paid to the Employee shall not exceed $331,200 (i.e., the product
of 115% x $288,000)."

         B.       Miscellaneous.

                  (1) Effective Date. The effective date of this Amendment No. 1
is as of the date first written above.

                  (2) Continuation of Employment Agreement. Except as expressly
modified or amended hereby, all of the terms and conditions of the Employment
Agreement shall continue and remain in full force and effect.

                  (3) Definitions. Capitalized terms not otherwise defined
herein shall have the respective meanings set forth in the Employment Agreement.

                  (4) Counterparts. This Amendment No. 1 may be executed in any
number of counterparts, each of which shall be treated as an original but all of
which, collectively, shall constitute a single instrument.

                  (5) GOVERNING LAW. THIS AMENDMENT NO. 1 SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE DOMESTIC LAWS OF THE STATE OF MICHIGAN
WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE
(WHETHER OF THE STATE OF MICHIGAN OR ANY OTHER JURISDICTION) THAT WOULD CAUSE
THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF
MICHIGAN.

                  (6) Cooperation. In case at any time after the date hereof any
further action is necessary to carry out the purposes of this Amendment No. 1,
each of the parties hereto will take such further action (including the
execution and delivery of such further instruments and documents) as the other
party or parties reasonably may request, all at the sole cost and expense of the
requesting party or parties.

                            [SIGNATURES ON NEXT PAGE]

<PAGE>   12

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Amendment No. 1 as of the day and year first above written.

                               MCE COMPANIES, INC.

                               By: /s/ Jon E. Carlson
                                   -------------------------------------------
                                        Jon E. Carlson, Vice President-Finance

                               /s/ John L. Smucker
                               -----------------------------------------------
                               JOHN L. SMUCKER

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