Exhibit 10.5(a)

                       ENVIRONMENTAL ELEMENTS CORPORATION
                         SUPPLEMENTAL PENSION AGREEMENT


                  THIS  AGREEMENT  is made  this 1st day of July,  1996,  by and
between Environmental  Elements Corporation  ("Corporation") and John C. Nichols
("Executive").

                  WHEREAS,  the Executive  performed  valuable  services for the
Corporation  and the  Corporation  desires to provide the Executive with certain
supplemental  retirement  benefits  to  replace  a benefit  shortfall  under the
Retirement Plan of Environmental  Elements Corporation  ("Retirement Plan") that
will occur as a result of benefit limitations imposed by changes in the law, the
imposition of salary caps under the  Retirement  Plan and changes in the benefit
formula under the Retirement Plan.

                  NOW,  THEREFORE,  in  consideration of the premises and of the
mutual  covenants and  undertakings  hereinafter  set forth,  and other good and
valuable consideration, receipt of which is hereby acknowledged, the Corporation
and the Executive hereby agree as follows:

                  1.  Recitals.  The foregoing  recitals are made a part of this
Agreement.

                  2. Supplemental Pension Payment.  Commencing July 1, 1996, the
Corporation shall pay the amount of $146.95 per month as a supplemental  pension
payment to the Executive for the remainder of the Executive's life. Each monthly
supplemental  pension  payment  shall be paid on or before the first day of each
calendar month to which the payment is attributable.

                  3. Corporation's  Obligations To be Unsecured. The Corporation
and the Executive understand and agree that the Corporation's  obligations under
this Agreement shall not be secured in any manner.  The Corporation shall not be
required to reserve or otherwise set aside, physically or legally, any funds for
the payment of its  obligations  hereunder.  Neither the Executive nor any other
person shall be deemed to have any property interest, legal or equitable, in any
specific  asset of the  Corporation  as a result of entering into this Agreement
and, to the extent that any person acquires any rights to receive payments under
the  provisions of this  Agreement,  such rights shall be no greater  than,  nor
shall they have any  preference  or priority  over,  the rights of any unsecured
creditor of the Corporation.

                  4. Other Plans.  Nothing in this Agreement  shall be construed
to affect the rights of the  Executive,  other  beneficiaries,  or his estate to
receive any  retirement or death benefits  under any pension,  insurance,  other
deferred compensation, or other retirement plans of the Corporation.



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                  5.  Non-Alienation  Provision.  Neither the  Executive nor any
other  person or persons who may become  entitled to payment of any amount under
this Agreement shall have any right to anticipate,  commute,  pledge,  encumber,
alienate,  sell,  transfer,  assign or otherwise dispose of the right to receive
payments  hereunder,  all of which payments and the rights thereto are expressly
hereby declared to be  non-assignable  and not subject to the debts,  contracts,
liabilities, engagements or torts of the Executive or such persons.

                  6. Withholding of Taxes. The Corporation  shall have the right
to withhold  from all amounts  payable  pursuant to this  Agreement any federal,
state or local taxes of any kind required by law to be withheld.

                  7.  Amendments.  This  Agreement  shall  not  be  amended  nor
modified otherwise than by a written agreement executed by the parties hereto or
their respective successors, assigns and legal representatives.

                  8. Binding Agreement. This Agreement shall be binding upon and
shall inure to the benefit of the parties hereto,  and their  respective  heirs,
legatees,    beneficiaries,    personal    representatives   and   other   legal
representatives, successors and assigns.

                  9.   Controlling   Law.  This  Agreement  shall  be  construed
according to the laws of the State of Maryland,  other than the conflict of laws
principles thereof.

                  IN WITNESS  WHEREOF,  the  parties  hereto  have  caused  this
Agreement to be executed under seal as of the day and year first above written.


ATTEST:                            ENVIRONMENTAL ELEMENTS CORPORATION


/s/ Blair A. Freed                     /s/ Edward H. Verdery
_______________________            By:__________________________________(SEAL)
                                   Edward H. Verdery
                                   President and Chief Executive Offer


WITNESS:


/s/ Barbara Williams               /s/ John C. Nichols
_______________________            _____________________________________(SEAL)
                                   John C. Nichols