EX-10.1



 Exhibit 10.1 
 EMPLOYMENT AGREEMENT 
 THIS AGREEMENT made as
of the 6th day of May 2013, by and between UNIVERSAL
STAINLESS & ALLOY PRODUCTS, INC., a Delaware corporation (the “Company”), and Michael D. Bornak (the “Executive”). 
 WITNESSETH: 
 In consideration of the covenants and agreements herein
contained, and intending to be legally bound hereby, the Company and Executive agree as follows: 
 Article 1. - Employment

 1.1. Employment. The Company agrees to employ Executive, and Executive agrees to serve the Company, for the
period stated in Article 2 hereof (the “Term of Employment”) and upon the other terms and conditions herein provided. 

1.2. Position and Responsibilities. The Company employs Executive, and Executive agrees to serve as Vice President of Finance,
Chief Financial Officer and Treasurer of the Company and to accept such other responsibilities as may be assigned to Executive by the Company from time to time during the Term of Employment. 

1.3. Duties. During the Term of Employment, Executive shall devote all of his business time, attention, skill and efforts to the
faithful performance of his duties hereunder. 
 Article 2. - Term 

The Term of Employment shall commence as of June 3, 2013 (the “Effective Date”), and shall continue until May 31,
2014 (the “Initial Term”). Thereafter, subject to the termination provisions of this Agreement, this Agreement will be automatically extended for successive one year terms unless either party provides written notice to the other party on
or before April 1 of any year, of his or its election not to extend the term of this Agreement. 
 Article 3. -
Compensation 
 3.1. Salary. As compensation to the Executive for the performance of services hereunder, the
Company shall pay to the Executive an annual base salary (the “Salary”) of $230,000.00. Installments of the Salary shall be paid to the Executive in accordance with the standard procedure of the Company, which at the present time is once
every two weeks. During the period of this Agreement, Executive’s salary shall be reviewed at least annually and may be increased if the Board of Directors of the Company acting after approval of the Compensation Committee, determines that an
increase is appropriate on the basis of the types of factors it generally takes into account in increasing the salaries of employees similarly situated in the Company. 
 3.2. Reimbursement of Expenses. The Company will reimburse the Executive for those customary and necessary business expenses incurred by him in the performance of his duties and activities on
behalf of the Company. Except as provided in this Agreement, such expenses will be reimbursed only on presentation by the Executive of appropriate documentation to substantiate such expenses pursuant to the policies and procedures of the Company
governing reimbursement of business expenses to its executives. 
 3.3. Participation in Plans. The Executive shall be
entitled to participate in any life, medical, dental, health, hospitalization, travel, accident and/or disability insurance plans and in any sick leave and/or salary continuation plan, vacation (which shall not be less than three (3) weeks per
calendar year), holiday pay, retirement or employee benefit plan or program generally offered by the Company to its salaried employees. In addition, Executive shall be entitled to participate in the variable incentive compensation plan


  
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and the perquisites described on Schedule A attached hereto. 

Article 4. - Termination of Employment 
 4.1. Definitions. For the purposes hereof: 
 (a)
“Disability” shall be deemed to have occurred when the Executive is eligible, due to a health condition, to collect benefits under the Company’s short term disability plan and has been determined by the Board of Directors to be
unable to perform substantially the duties associated with the Executives position for a period of three months. 
 (b)
“Cause” shall mean any of the following: (i) Executive’s personal dishonesty or willful misconduct; (ii) Executive’s willful violation of any law or material rule or regulation, provided that such violation is
demonstrably injurious to the assets, operations or business prospects of the Company; (iii) the conversion or embezzlement for the personal benefit of the Executive of corporate funds or property or a material business opportunity of the
Company; (iv) the misuse by the Executive for his personal benefit of any trade secrets or other information of the Company in violation of the provisions of Article 7 of this Agreement; or (v) Executive’s material breach of any other
provision of this Agreement which is not cured within thirty (30) days of receipt of notice of such breach from Company. 

(c) “Good Reason” shall, absent the Executive’s consent to such action, mean the occurrence of any one of the
following: (i) following a Change of Control, the removal of the Executive as Vice President of Finance, Chief Financial Officer and Treasurer (by reason other than death, Disability or Cause); (ii) any breach by the Company of a material
obligation under this Agreement; (iii) a substantial and material alteration in the nature or status of Executive’s duties and responsibilities that renders the Executive’s position to be of substantially less responsibility or scope;
(iv) a material reduction by the Company in the Executive’s Salary, except for proportional across-the-board salary reductions similarly affecting all senior executives of the Company; or (v) any material reduction by the Company of
the benefits, taken as a whole, enjoyed by the Executive on the date of this Agreement under any savings, life insurance, medical, health and accident, disability or other employee welfare benefit plans or programs, including vacation programs,
provided that this paragraph (v) shall not apply to any proportional across the board reduction or action similarly affecting all senior executives of the Company. 
 Notwithstanding the foregoing, no event of “Good Reason” shall be deemed to have occurred unless Executive provides to the Chairman of the Compensation Committee of the Board of Directors of the
Company written notice of the facts and circumstances which Executive believes constitutes Good Reason under this Section 4.1(c) within 30 days of such initial occurrence and such facts and circumstances are not corrected or otherwise cured by
the Company within thirty (30) days of receipt thereof. Termination by Executive for Good Reason must occur within 90 days of the initial occurrence of the Good Reason event. 
 For purposes of this Agreement, a Change of Control shall be deemed to have occurred on the earlier of (x) if, in any transaction or series of related transactions consummated in a ninety day period,
more than fifty percent (50%) of the then outstanding voting common stock of the Company is sold to a person or group; (y) a merger or consolidation of the Company and another entity in which the Company is not the surviving corporation or
in which more than fifty percent(50%) of the equity ownership of the Company changes, or (z) the sale of 50% or more of all of the assets of the Company. 
 (d) “Notice of Termination” shall mean written notice which shall indicate the specific termination or resignation provisions in this Agreement relied upon and shall set forth in
reasonable detail the facts and circumstances claimed to provide a basis for such termination or resignation under the provision so indicated and the Company shall submit to the Executive a certified statement signed by the Chairman of the
Compensation Committee of the Board of Directors of the Company approving such termination in the case of a Termination by the Company for Cause or Without Cause. 

  
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 (e) “Date of Termination” shall mean the date specified in the Notice of
Termination as the effective date the Executive’s employment is terminated for any reason or the Executive’s effective date of resignation, whichever is earlier. 
 Article 5. - Compensation Upon Termination 
 5.1. Death. If
the Executive’s employment hereunder terminates by reason of his death, his beneficiaries shall be entitled to receive from the Company such amounts as are then provided pursuant to plans, programs or arrangements currently in effect or as
approved from time to time by the Board of Directors. 
 5.2. Disability. If the Executive’s employment hereunder
terminates by reason of his Disability, the Executive shall be entitled to receive such amounts as are then provided pursuant to Company’s then existing disability plans, programs or arrangements. Notwithstanding any provisions herein to the
contrary, the Executive shall be entitled to receive all benefits to which the Executive is entitled as a terminated employee under the terms of any of the Company’s qualified employee benefit plans and any other plan, program or arrangement
relating to retirement or other benefits including, without limitation, any employee stock ownership plan or any plan now in effect or which is established (with approval of the Board of Directors) as a supplement to any of the forenamed plans,
except as otherwise provided in such plans as a result of the Executive’s termination of employment. 
 5.3. Cause.
If the Executive’s employment hereunder is terminated by the Company for Cause, the Company shall pay to the Executive his full base Salary through the Date of Termination but at a rate no greater than that in effect at the time Notice of
Termination is given, and the Company shall have no further obligations to the Executive under this Agreement. 
 5.4. By the
Company Without Cause or by the Executive by Resignation for Good Reason. If the Executive’s employment hereunder is terminated by the Company without Cause or is terminated by the Executive pursuant to his resignation for Good Reason, then
the Executive shall be entitled to the benefits provided below, which shall constitute complete satisfaction of the obligations of the Company to the Executive under this Agreement: 

(a) The Company shall pay the Executive his prorated annual base Salary through the Date of Termination at the rate in effect at the time
Notice of Termination is given. 
 (b) Subsequent to the Date of Termination: if the Executive has been
employed by the Company for less than twelve full months the Company shall pay as severance pay to the Executive, a lump sum severance payment equal to the number of full months that the Executive was employed by the Company at the rate in
effect at the time Notice of Termination is given; if the Executive was employed by the Company for twelve full months or more, the Company shall pay as severance pay to the Executive, a lump sum severance payment equal to 12 months of the
Executive’s base monthly Salary at the rate in effect at the time Notice of Termination is given. Any such payment referred to in this section shall be less applicable taxes and mandatory deductions, paid on or before the 30th calendar day after the Date of Termination. 

(c) The Company will provide health care benefits under the group policies covering the other corporate employees covering Medical,
Dental, Vision and Prescription Drugs, subject to any changes made to the group policies, as provided prior to the Date of Termination for the Executive and eligible dependents, that were covered prior to any Date of Termination, for a period of :
if the Executive has been employed by the Company for less than twelve full months the Company, the number of full months that the Executive was employed by the Company at no cost to the Executive; if the Executive was employed by the Company for
twelve full months or more, twelve (12) months at no cost to the Executive. This period of coverage will not reduce the eligible COBRA period. 
 (d) The Executive shall not be required to mitigate the amount of any payments provided for in this Agreement by seeking other employment or otherwise, nor shall the amount of any payment provided for in
this Agreement be reduced by any compensation earned by the Executive as the result of employment by another employer, or otherwise. 

  
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 (e) Notwithstanding any provisions herein to the contrary, the Executive shall be entitled
to receive all benefits to which the Executive is entitled as a terminated employee under the terms of any of the Company’s qualified employee benefit plans and any other plan, program or arrangement relating to retirement or other benefits
including, without limitation, any employee stock ownership plan or any plan now in effect or which is established (with approval of the Board of Directors) as a supplement to any of the forenamed plans, except as otherwise provided in such plans as
a result of the Executive’s termination of employment. 
 Article 6. - Duties of Executive After 

Termination of Employment 
 Following any termination of Executive’s employment and for a period of ninety (90) days thereafter, the Executive shall fully cooperate with the Company in all matters relating to the winding
up and orderly transfer of the Executive’s work on behalf of the Company. Not later than the effective date of any termination of the employment, the Executive will immediately deliver to the Company any and all of the Company’s property
of any kind or nature whatsoever in the Executive’s possession, custody or control, including, without limitation any and all Confidential Information as that term is defined in Section 7 of this Agreement. 

Article 7. - Confidential Information; Invention Assignment 

7.1. Confidential Relationship. Executive understands and agrees that all company manuals, company policies, marketing plans and
surveys, product designs, schematics, specifications and product location and installation data, formulae, processes, methods, machines, compositions, customer information, ideas, inventions, financial information and plans of the Company and all
records, correspondence, files, customer lists, data and other information pertaining to or concerning the Company, its principals, vendors and customers (collectively the “Confidential Information”) contain valuable confidential
information that is owned by the Company, and, therefore, that during the period of employment hereunder and at all times thereafter, Executive shall not utilize such Confidential Information for his own benefit or for the benefit of any person or
entity other than the Company, nor shall he divulge or communicate any such Confidential Information to any person or entity without the express authorization of the Company. Confidential Information shall not include any information that is or
becomes generally available to the public other than as a result of a disclosure by Executive. The Executive agrees that, on the termination of his employment, he will immediately surrender to the Company any and all Confidential Information in his
possession pertaining to the Company and its business. 
 7.2. Assignment of Rights. All inventions, discoveries,
designs, developments, technology, computer programs, writings and reports that are made or conceived of by the Executive in the course of his employment with the Company, whether or not patentable or copyrightable, shall become and remain the sole
property of the Company without additional compensation to Executive. The Executive recognizes that all such works shall be considered works-for-hire and hereby transfers and assigns any right, title, copyright and interest that Executive acquires
in such works to the Company and will, from time to time, give the Company all reasonable assistance, execute all papers and do all things that may reasonably be required to protect and preserve the rights of the Company in such works. 

7.3. No Breach of Other Obligations. The Executive represents that, in the course of performing services for the Company, he will
not breach any agreement he may have with others with respect to confidential information, and will not bring to the Company or use in any way any materials or documents obtained from others under an agreement of confidentiality. 

Article 8. - Source of Payments 
 All payments provided for under this Agreement shall be paid in cash from the general funds of the Company and no special or separate fund shall be established and no other segregation of assets shall be
made to assure payment. No trust or fiduciary relationship with respect to payments shall be deemed created hereby and, to the extent that any person acquires a right to receive 

  
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payments hereunder, such right shall be no greater than the rights of a general creditor of the Company. 
 Article 9. - Miscellaneous 
 9.1. Indulgences, Etc. Neither
the failure nor any delay on the part of either party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege
preclude any other or further exercise of the same or of any other right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power
or privilege with respect to any other occurrence. 
 9.2. Notices. All notices or communications hereunder shall be in
writing, addressed as follows: 
 To the Company: 
 Dennis M. Oates, Chairman, CEO and President 
 Universal Stainless & Alloy
Products, Inc. 
 600 Mayer Street 
 Bridgeville, PA 15017 
 To the Executive: 

Mr. Michael D. Bornak 
 153 Penncrest Circle 
 White Oak, PA 15131 

Any such notice or communication shall be sent by certified or registered mail, return receipt requested, postage prepaid, addressed as above (or to such
other address as such party may designate in writing from time to time), and the actual date of receipt, as shown by the receipt therefore, shall determine the time at which notice was given. 

9.3. Assignment; Agreement. This Agreement shall be binding upon and inure to the benefit of the heirs and personal
representatives of the Executive and the successors and assigns of the Company, but neither this Agreement nor any rights hereunder shall be assignable or otherwise subject to hypothecation by the Executive. 

9.4. Entire Agreement; Amendment. This Agreement represents the entire agreement of the parties with respect to the subject matter
hereof. This Agreement may be amended or any provision hereof waived at any time only by written agreement of the parties hereto. 
 9.5. Governing Law. This Agreement and its validity, interpretation, performance and enforcement shall be governed by the laws of the Commonwealth of Pennsylvania, other than the conflict of law
provisions of such laws. 
 9.6. Severability. If, for any reason, any provision of this Agreement is held invalid, such
invalidity shall not affect any other provision of this Agreement not held so invalid, and each such other provision shall to the full extent consistent with law continue in full force and effect. If any provision of this Agreement shall be held
invalid in part, such invalidity shall in no way affect the remainder of such provision that is not held so invalid, and the remainder of such provision, together with all other provisions of this Agreement, shall to the full extent consistent with
law continue in full force and effect. 
 9.7. Headings. The Article and Section headings in this Agreement are for
convenience of reference only; they form no part of this Agreement and shall not affect its interpretation. 

  
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 9.8. Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed an original, and all of which together shall constitute one and the same instrument. 
 IN WITNESS
WHEREOF, the Company and the Executive have duly executed this Agreement as of the day and year first written above. 
  

			
	UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
		
	By:	 	 /s/ Dennis M. Oates

		 	Dennis M. Oates
		 	Chairman, CEO and President
	
	EXECUTIVE
	
	 /s/ Michael D. Bornak

	Michael D. Bornak


  

							
		 		 		 	Schedule A
		 		 		 	Incentive Compensation and Stock Options

 1. Incentive Compensation. Executive will be entitled to participate in the Company’s variable incentive
compensation plan. The maximum award under such plan for the Executive shall be 100% of his annual base Salary. Note the bonus is prorated to length of service in the first year. A guaranteed minimum incentive compensation award for 2013 based
commencing employment on June 3, 2013 and continued employment until the payout is made on or before March 15, 2014, for Executive shall be $115,000.00. In addition, provided that the eligibility requirements are met, the 2014 Variable
Compensation will be guaranteed to be a minimum of $75,000. The applicable guaranteed Variable Compensation shall be payable should following a Change of Control result in your removal as Vice President of Finance, Chief Financial Officer and
Treasurer (by reason other than Death, Disability or Cause). For purposes of this Offer of Employment, a Change of Control shall be deemed to have occurred on the earlier of (x) if, in any transaction or series of related transactions
consummated in a ninety day period, more than fifty percent (50%) of the then outstanding voting common stock of the Company is sold to a person or group; (y) a merger or consolidation of the Company and another entity in which the Company
is not the surviving corporation or in which more than fifty percent(50%) of the equity ownership of the Company changes, or (z) the sale of 50% or more of all of the assets of the Company. 

2. Stock Options. Executive shall be granted 15,000 stock options pursuant to the Company’s stock option plan. The exercise price of the
stock options will be the closing price of the Company’s common stock on the day preceding the Effective Date or, if there were no sales on such date, on the last date preceding such date on which a sale was reported. One fourth of the stock
options will vest on each of the first four anniversaries of the Effective Date. All stock options shall be subject to the terms and conditions of a separate stock option agreement to be entered into by Executive and the Company. The stock options
shall, subject to a Change in Control, vest upon such consummation. 
 For purposes of this provision a Change in Control means, and shall be
deemed to have occurred upon the occurrence of, any one of the following events: 
 (a) The acquisition in one or more transactions, other than
from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other than the Company, a Subsidiary or any 

  
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employee benefit plan (or related trust) sponsored or maintained by the Company or a Subsidiary, of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of a
number of the Company’s Voting Securities in excess of 30% of the Company’s Voting Securities; 
 (b) The consummation (i.e. closing)
of a reorganization, merger or consolidation involving the Company, unless, following such reorganization, merger or consolidation, all or substantially all of the individuals and entities who were the respective beneficial owners of the Outstanding
Common Stock and the Company’s Voting Securities immediately prior to such reorganization, merger or consolidation, following such reorganization, merger or consolidation beneficially own, directly or indirectly, more than 50% of, respectively,
the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors or trustees, as the case may be, of the entity resulting from such
reorganization, merger or consolidation in substantially the same proportion as their ownership of the Outstanding Common Stock and the Company’s Voting Securities immediately prior to such reorganization, merger or consolidation, as the case
may be; 
 (c) The consummation (i.e. closing) of a sale or other disposition of all or substantially all the assets of the Company, unless,
following such sale or disposition, all or substantially all of the individuals and entities who were the respective beneficial owners of the Outstanding Common Stock and the Company’s Voting Securities immediately prior to such sale or
disposition, following such sale or disposition beneficially own, directly or indirectly, more than 50% of, respectively, the then outstanding shares of common stock and the combined voting power of the then outstanding voting securities entitled to
vote generally in the election of directors or trustees, as the case may be, of the entity purchasing such assets in substantially the same proportion as their ownership of the Outstanding Common Stock and the Company’s Voting Securities
immediately prior to such sale or disposition, as the case may be; or 
 (d) A complete liquidation or dissolution of the Company. 

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