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

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