Document:

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                                                                   EXHIBIT 10.12

                              EMPLOYMENT AGREEMENT

            EMPLOYMENT AGREEMENT (the "Agreement"), dated as of October 4, 2004,
by and between VISKASE COMPANIES, INC., a Delaware corporation (the "Company"),
and ROBERT L. WEISMAN (the "Executive").

                              W I T N E S S E T H:

            WHEREAS the Company desires to induce the Executive to enter into
employment with the Company for the period provided in this Agreement, and the
Executive is willing to accept such employment with the Company on a full-time
basis, all in accordance with the terms and conditions set forth below;

            NOW, THEREFORE, for and in consideration of the premises hereof and
the mutual covenants contained herein, the parties hereto hereby covenant and
agree as follows:

            1.    Employment. (a) The Company hereby employs the Executive, and
the Executive hereby accepts such employment with the Company, for the period
set forth in Section 2 hereof, all upon the terms and subject to the conditions
hereinafter set forth.

            (b)   The Executive affirms and represents that he is under no
obligation to any former employer or other party that is in any way inconsistent
with, or that imposes any restriction upon, the Executive's acceptance of
employment hereunder with the Company, the employment of the Executive by the
Company or the performance of such employment, or the Executive's undertakings
under this Agreement.

            2.    Term of Employment. Unless earlier terminated as provided in
this Agreement, the term of the Executive's employment under this Agreement
shall be for a three (3) year period commencing on October 4, 2004 and
concluding on October 4, 2007. The period from October 4, 2004 to October 4,
2007 or, in the event that the Executive's employment hereunder is earlier
terminated as provided herein, such shorter period, as the case may be, is
hereinafter called the "Employment Term." The Executive's employment by the
Company shall be on an "at will" basis and may be terminated at any time at the
option of the Company or the Executive, as the case may be, on the terms and
subject to the conditions set forth in this Agreement.

            3.    Duties. The Executive shall be employed as the President and
Chief Executive Officer of the Company, shall faithfully perform and discharge
such duties as inhere in such positions and as may be specified in the Bylaws of
the Company with respect to, and consistent with, such positions, and shall also
perform and discharge such other duties and responsibilities consistent with
such positions as the Board of Directors of the Company (the "Board of
Directors") shall from time to time determine. Except as may otherwise be
approved in advance by the Board of Directors, and except during vacation
periods and reasonable periods of absence due to sickness, personal injury or
other disability, the Executive shall devote his full business time throughout
the Employment Term to the services required of him hereunder and shall not
engage in any other business activity without the prior approval of the Board of

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Directors. The Executive shall render his business services exclusively to the
Company and its subsidiaries during the Employment Term and shall use his good
faith efforts, judgment and energy to improve and advance the business and
interests of the Company and its subsidiaries in a manner consistent with the
duties of his position. Nothing in this Agreement shall preclude the Executive
from engaging in charitable and community affairs or from managing his personal
investments, provided that such activities do not interfere with the Executive's
performance of his obligations to the Company under this Agreement.

            4.    Compensation.

            (a)   Salary. As compensation for the performance by the Executive
of the services to be performed by the Executive hereunder during the Employment
Term, the Company shall pay the Executive a base salary (the "Base Salary") at
the annual rate of Two Hundred and Fifty Thousand Dollars ($250,000)
(proportionately adjusted for partial years). The Base Salary shall be subject
to review from time to time in the discretion of the Board of Directors or the
compensation committee of the Board of Directors. The Base Salary may be
increased, but shall not be decreased, as a result of such review. Any Base
Salary payable hereunder shall be paid in regular intervals in accordance with
the Company's payroll practices from time to time in effect.

            (b)   Bonus. The Executive shall be eligible to receive bonus
compensation from the Company for each calendar year occurring during the
Employment Term, including the partial year in 2004 (the "Bonus"). The target
for the Bonus for each calendar year shall be 100% of Base Salary
(proportionately adjusted for partial years), based on the achievement of
performance-based targets and criteria for each such calendar year as
established with respect to the Company's management incentive plan or otherwise
established by the Board of Directors in consultation with the Executive. Such
performance-based targets and criteria shall include both quantitative and
qualitative objectives, shall be based on the audited financial results of the
Company for the applicable period and shall in any event be consistent with the
Company's compensation policies established by the Board of Directors from time
to time for senior executives of the Company.

            (c)   Withholding, Etc. The payment of any Salary, Bonus, or other
amounts required to be paid to the Executive under this Agreement shall be
subject to applicable withholding and payroll taxes and such other deductions as
may be required under the Company's employee benefit plans.

            5.    Other Benefits; Stock Option Grant.

            (a) General. During the Employment Term, the Executive shall:

            (i)   be eligible to participate in any employee fringe or other
employee benefits and pension and/or profit sharing plans that may be provided
by the Company for its senior executive employees, including any medical and
health plans (to include coverage of the Executive, together with the
Executive's spouse and dependents), and any vacation, sick leave,

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sick pay and disability benefits, all in accordance with the provisions of any
such plans, as the same may be in effect from time to time; and

            (ii)  be entitled to reimbursement for all reasonable and necessary
out-of-pocket business expenses incurred by the Executive in the performance of
his duties hereunder in accordance with the Company's policies applicable to
senior executive employees from time to time in effect.

            (b) Stock Option Grant. The Company will issue a non-qualified stock
option (the "Stock Option") to the Executive with respect to a total of 500,000
shares of Common Stock, par value $0.01 per share, of the Company (the "Common
Stock"). The Stock Option shall be issued either pursuant to a new incentive
plan to be adopted by the Board of Directors or pursuant to a stock option
agreement between the Company and the Executive. The Stock Option shall have an
exercise price equal to $2.40 per share (the closing price of the Common Stock
on September 29, 2004, which was the trading day immediately prior to the verbal
agreement of the parties with respect to the terms of this Agreement). The Stock
Option shall vest (i) with respect to 1/3 of the shares of Common Stock covered
thereby on the first anniversary of the date of this Agreement, (ii) with
respect to an additional 1/3 of the shares of Common Stock covered thereby on
the second anniversary of the date of this Agreement and (iii) with respect to
an additional 1/3 of the shares of Common Stock covered thereby on the third
anniversary of the date of this Agreement; provided, however, that if the
Executive's employment is terminated by the Company pursuant to clause (iv) of
Section 7(a) below (x) after the six-month but before the first anniversary of
the date of this Agreement, the portion of the Stock Option that would otherwise
vest on the first anniversary of the date of this Agreement shall vest on the
last day of the Employment Term, (y) after the first anniversary but before the
second anniversary of the date of this Agreement, the portion of the Stock
Option that would otherwise vest on the second anniversary of the date of this
Agreement shall vest on the last day of the Employment Term and (z) after the
second anniversary but before the third anniversary of the date of this
Agreement, the portion of the Stock Option that would otherwise vest on the
third anniversary of the date of this Agreement shall vest on the last day of
the Employment Term; provided, further, that if the Company experiences a change
of control, and in connection with or following such change of control the
Executive ceases to be the principal executive officer of the Company, then the
Stock Option shall become fully vested. The Stock Option will cease vesting on
the last day of the Employment Term. The Stock Option shall terminate on the
fifth anniversary of the date of issuance. The Stock Option shall provide that
the Stock Option may be exercised by the Executive or by the Executive's estate
for a period of time (to be established by the Board of Directors or the
compensation committee of the Board of Directors and set forth in the
documentation for the Stock Option) following the Executive's termination of
employment for any reason other than for "Cause" (as defined below). The Stock
Option shall contain customary anti-dilution provisions with respect to the
exercise price and number of shares of Common Stock subject to the Stock Option.
The Stock Option shall have such other provisions with respect to termination,
acceleration of vesting, anti-dilution adjustments, the definition of change of
control and other matters as the Board of Directors or the compensation
committee of the Board of Directors may establish in its discretion.

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            6.    Confidential Information. The Executive hereby covenants,
agrees and acknowledges as follows:

            (a)   The Executive has and will have access to and will participate
in the development of or be acquainted with confidential or proprietary
information and trade secrets related to the business of the Company and any
present or future subsidiaries or affiliates thereof (collectively with the
Company, the "Company Group"), including but not limited to the following: (i)
customer lists; related records and compilations of information; the identity,
lists or descriptions of new or prospective customers, referral sources or
organizations; financial statements; cost reports or other financial
information; contract proposals or bidding information; business plans; training
and operations methods and manuals; personnel records; software programs;
reports and correspondence; and management systems, policies or procedures,
including related forms and manuals; (ii) information pertaining to future
developments such as future marketing or acquisition plans or ideas, and
potential new business locations; and (iii) all other tangible and intangible
property used in the business and operations of the Company Group and not
otherwise made public by the Company Group. The information and trade secrets
relating to the business of the Company Group described hereinabove in this
paragraph (a) are the property of the Company Group and are hereinafter referred
to collectively as the "Confidential Information", provided that the term
Confidential Information shall not include any information (x) that is or
becomes generally publicly available (other than as a result of violation of
this Agreement by the Executive), (y) that the Executive receives on a
non-confidential basis from a source (other than the Company Group or its
representatives) that is not known by him to be bound by an obligation of
secrecy or confidentiality to any member of the Company Group or (z) that was in
the possession of the Executive prior to disclosure by any member of the Company
Group.

            (b)   The Executive shall not disclose, use or make known for his or
another's benefit any Confidential Information or use such Confidential
Information in any way except as is in the best interests of the Company Group
in the performance of the Executive's duties under this Agreement. The Executive
may disclose Confidential Information when required by a third party under
applicable law or judicial process, but only after providing (i) immediate
notice to the Company of any third party's request for such information, which
notice shall include the Executive's intent to disclose any Confidential
Information with respect to such request, and (ii) sufficient opportunity for
the Company to challenge or limit the scope of the disclosure on behalf of the
Company Group, the Executive or both.

            (c)   The Executive acknowledges and agrees that a remedy at law for
any breach or threatened breach of the provisions of this Section 6 would be
inadequate and, therefore, agrees that any member of the Company Group shall be
entitled to injunctive relief (without necessity of a bond) in addition to any
other available rights and remedies in case of any such breach or threatened
breach by the Executive; provided, however, that nothing contained herein shall
be construed as prohibiting any member of the Company Group from pursuing any
other rights and remedies available for any such breach or threatened breach.

            (d)   The Executive agrees that upon termination of his employment
with the Company for any reason, the Executive shall immediately return to the
Company all Confidential

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Information in whatever form maintained (including, without limitation, computer
discs and other electronic media), including without limitation any and all
Confidential Information maintained on personal computers and/or other
non-Company property.

            (e)   The obligations of the Executive under this Section 6 shall,
except as otherwise provided herein, survive the termination of the Employment
Term and the expiration or termination of this Agreement.

            (f)   Without limiting the generality of Section 8 hereof, the
Executive hereby expressly agrees that the foregoing provisions of this Section
6 shall be binding upon the Executive's heirs, successors and legal
representatives.

            7.    Termination.

            (a)   The Executive's employment hereunder shall be terminated upon
the occurrence of any of the following:

            (i)   death of the Executive;

            (ii)  the Executive's inability to perform his duties on account of
      disability or incapacity for a period of ninety (90) or more days, whether
      or not consecutive, within any period of twelve (12) consecutive months;

            (iii) the Company giving written notice, at any time, to the
      Executive that the Executive's employment is being terminated for "Cause";

            (iv)  the Company giving written notice, at any time (including,
      without limitation, following a change of control of the Company or a sale
      of substantially all of the assets of the Company), to the Executive that
      the Executive's employment is being terminated, other than pursuant to
      clause (i), (ii) or (iii) above; or

            (v)   a termination of the Executive's employment hereunder by the
      Executive at any time for any reason whatsoever (whether by reason of
      retirement, resignation or otherwise).

            (b)   The following actions, failures and events by or affecting the
Executive shall constitute "Cause" for termination within the meaning of clause
(iii) above of Section 7(a): (A) the commission by the Executive of a felony or
a crime involving moral turpitude; the Board of Directors may, in its good faith
and using reasonable judgment, determine the fact of the commission of the
felony or the crime by Executive without recourse to or reliance upon any
judicial proceeding or judicial determination; (B) the commission by the
Executive of any other act or omission involving dishonesty, disloyalty or fraud
with respect to any member of the Company Group or any of their respective
employees, customers, affiliates or suppliers, or adversely affecting their
reputation or standing, all as determined by the Board of Directors in its good
faith and using reasonable judgment; (C) the willful failure of the Executive to
perform duties as reasonably directed by the Board of Directors of the Company
which are within the

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control of the Executive; (D) gross negligence, reckless or willful misconduct
by the Executive with respect to the Company or any of its subsidiaries, all as
determined by the Board of Directors, in its good faith and using reasonable
judgment; or (E) any other material breach by the Executive of this Agreement or
company policy reasonably established by the Board of Directors, which breach,
if curable, is not cured within 15 days after written notice thereof to the
Executive as determined by the Board of Directors, in its good faith and using
reasonable judgment.

            (c)   In the event that the Executive's employment is terminated by
the Company pursuant to clause (iv) of Section 7(a) above, then, subject to
receipt of an executed general release as described below, (i) the Company shall
continue to pay to the Executive, as severance pay or liquidated damages or
both, his Base Salary for a period of six (6) months after such termination (the
"Continuation Period") at the rate per annum of his Base Salary at the time of
such termination, payable in installments during the Continuation Period in
accordance with the Company's payroll practices (but no less often than
monthly), (ii) the Company shall provide the Executive and his spouse with
medical and health insurance coverage at levels comparable to those in effect
prior to such termination for a period from the date of such termination to the
earlier to occur of (x) the end of the Continuation Period or (y) the date upon
which the Executive becomes eligible to be covered for such benefits through his
employment with another employer and (iii) the Executive shall be entitled to a
pro rata portion of the Bonus for the year in which the termination occurs, with
criteria based on the Executive's performance to be measured through the date of
termination and with criteria based on the Company's performance to be measured
for the entire fiscal year during which the termination occurs, such pro rata
portion of the Bonus to be paid following the completion of the fiscal year
during which the termination occurs and at such time as bonuses are paid to the
Company's senior executives generally. Notwithstanding anything in this Section
7(c) to the contrary, the Company shall have no obligation whatsoever to make
any payments or to provide any medical or health insurance benefits under this
Section 7(c) unless the Executive shall have executed and delivered to the
Company, and not revoked, a general release and waiver of claims in form and
substance reasonably satisfactory to the Company no more than 30 days after the
later of (i) the date of such termination or (ii) the date the Company provides
the form of the release to the Executive.

            (d)   Notwithstanding anything to the contrary expressed or implied
herein, except as set forth in Section 7(c) above, no member of the Company
Group shall be obligated to make any payments to the Executive or on his behalf
of whatever kind or nature by reason of the Executive's cessation of employment
(including, without limitation, by reason of termination of the Executive's
employment by the Company for "Cause"), other than (i) such amounts, if any, of
his Base Salary as shall have accrued and remained unpaid as of the date of said
cessation and (ii) such other amounts, if any, which may be then otherwise
payable to the Executive pursuant to the terms of the Company's benefits plans
or pursuant to clause (a)(ii) of Section 5 above.

            (e)   No interest shall accrue on or be paid with respect to any
portion of any payments hereunder.

            8.    Non-Assignability.

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            (a)   Neither this Agreement nor any right or interest hereunder
shall be assignable by either party without the other party's prior written
consent, and any purported assignment without such consent shall be null and
void; provided, however, that nothing in this Section 8(a) shall preclude the
Executive from designating a beneficiary to receive any benefit payable
hereunder upon his death or incapacity. For purposes of this Section 8(a),
neither a merger, consolidation, stock sale or other business combination shall
be deemed to be an assignment.

            (b)   Except as permitted by Section 8(a) above or as required by
law, no right to receive payments under this Agreement shall be subject to
anticipation, commutation, alienation, sale, assignment, encumbrance, charge,
pledge or hypothecation or to exclusion, attachment, levy or similar process or
to assignment by operation of law, and any attempt, voluntary or involuntary, to
effect any such action shall be null, void and of no effect.

            9.    Restrictive Covenants.

            (a)   Competition. During the Employment Term and for a period of
twelve (12) months thereafter (the "Non-Compete Period"), the Executive will not
directly or indirectly (as a director, officer, executive, employee, manager,
consultant, independent contractor, advisor or otherwise) engage in competition
with, or own any interest in, perform any services for, participate in or be
connected with any business or organization which engages in, or which during
the Non-Compete Period could reasonably be expected to engage in, competition
with any member of the Company Group in any geographical location where the
Company does business or where the Executive knows the Company reasonably plans
to do business. The provisions of this Section 9(a) shall not be deemed to
prohibit the Executive's ownership of not more than two percent (2%) of the
total shares of all classes of stock outstanding of any publicly held company,
or ownership, whether through direct or indirect stock holdings or otherwise, of
not more than one percent (1%) of any other business.

            (b)   Non-Solicitation. During the Employment Term and for a period
of twelve (12) months thereafter (the "Non-Solicitation Period"), the Executive
will not directly or indirectly induce or attempt to induce any employee or
independent contractor of any member of the Company Group to leave the
employment of or engagement by such member of the Company Group, or in any way
interfere with the relationship between any member of the Company Group and any
employee or independent contractor thereof.

            (c)   Non-Interference. During the Employment Term and for a period
of twelve (12) months thereafter (the "Non-Interference Period"), the Executive
will not directly or indirectly or in any manner be associated with the clients
or prospective clients of any member of the Company Group, if such action by him
would, or could reasonably be expected to, have an adverse effect on the
business, assets or financial condition of any member of the Company Group, or
materially interfere with the relationship between any such person or entity and
any member of the Company Group.

            (d)   Certain Representations of the Executive. In connection with
the foregoing provisions of this Section 9, the Executive covenants, represents
and warrants that his

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experience, capabilities and circumstances are such that such provisions will
not prevent him from earning a livelihood.

            10.   Reasonableness, Survivability and Enforcement of Limitations.
The Executive agrees that the limitations set forth in Sections 6 and 9 hereof
(including, without limitation, time and territorial limitations) are reasonable
and properly required for the adequate protection of the current and future
businesses of the members of the Company Group. It is understood and agreed that
the covenants, representations and warranties made by the Executive in Sections
6 and 9 hereof shall survive the expiration or termination of this Agreement.
The Executive acknowledges and agrees that a remedy at law for any breach or
threatened breach of the provisions of Sections 6 and 9 hereof would be
inadequate and, therefore, agrees that any member of the Company Group shall be
entitled to injunctive relief (without necessity of a bond) in addition to any
other available rights and remedies in cases of any such breach or threatened
breach; provided, however, that nothing contained herein shall be construed as
prohibiting any member of the Company Group from pursuing any other rights and
remedies available for any such breach or threatened breach.

            11.   Assignment of Intellectual Property. The Executive agrees that
he will hold in trust for the sole right and benefit of the Company, and hereby
assigns to the Company or its designee, all his right, title and interest
throughout the world in and to any and all inventions, original works of
authorship, developments, concepts, know-how, improvements or trade secrets,
whether or not patentable or registrable under copyright or similar laws,
relating to the business of the Company, which he may solely or jointly conceive
or develop or reduce to practice, or cause to be conceived or developed or
reduced to practice, during the period of time in which he is employed by or a
consultant to the Company.

            12.   Binding Effect. Without limiting or diminishing the effect of
Section 8 hereof, this Agreement shall inure to the benefit of and be binding
upon the parties hereto and their respective heirs, successors, legal
representatives and assigns.

            13.   Notices. All notices which are required or may be given
pursuant to the terms of this Agreement shall be in writing and shall be
sufficient in all respects if given in writing and (i) delivered personally,
(ii) mailed by certified or registered mail, return receipt requested and
postage prepaid, (iii) sent via a nationally recognized overnight courier or
(iv) sent via facsimile confirmed in writing to the recipient, if to the Company
to the attention of the Chairman of the Board of Directors at the Company's
principal place of business, and if to the Executive, at his home address most
recently filed with the Company, or to such other address or addresses as either
party shall have designated in writing to the other party hereto, provided,
however, that any notice sent by certified or registered mail shall be deemed
delivered on the date of delivery as evidenced by the return receipt.

            14.   Law Governing. This Agreement, and all claims arising out of
or relating to it, shall be governed by and construed and enforced in accordance
with the laws of the State of Illinois without giving effect to its conflict of
laws principles.

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            15.   Severability. The Executive agrees that in the event that any
court of competent jurisdiction shall finally hold that any provision of Section
6 or 9 hereof is void or constitutes an unreasonable restriction against the
Executive, the provisions of such Section 6 or 9 shall not be rendered void but
shall apply with respect to such extent as such court may judicially determine
constitutes a reasonable restriction under the circumstances. If any part of
this Agreement other than Section 6 or 9 is finally held by a court of competent
jurisdiction to be invalid, illegible or incapable of being enforced in whole or
in part by reason of any rule of law or public policy, such part shall be deemed
to be severed from the remainder of this Agreement for the purpose only of the
particular legal proceedings in question and all other covenants and provisions
of this Agreement shall in every other respect continue in full force and effect
and no covenant or provision shall then be deemed dependent upon any other
covenant or provision.

            16.   Waiver. Failure to insist upon strict compliance with any of
the terms, covenants or conditions hereof shall not be deemed a waiver of such
term, covenant or condition, nor shall any waiver or relinquishment of any right
or power hereunder at any one or more times be deemed a waiver or relinquishment
of such right or power at any other time or times.

            17.   Entire Agreement; Modifications. This Agreement constitutes
the entire and final expression of the agreement of the parties with respect to
the subject matter hereof and supersedes all prior agreements and
understandings, oral and written, between the parties hereto with respect to the
subject matter hereof. This Agreement may be varied, modified or amended only by
an instrument in writing signed by both parties hereto.

            18.   Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

            19.   Jurisdiction. Both parties to this Agreement irrevocably
consent to the jurisdiction of the state and federal courts sitting in Cook
County, Illinois with respect to any action or proceeding arising under this
Agreement. Both parties to this Agreement further agree that such courts are a
convenient forum, and that they shall not assert any challenge to jurisdiction
or venue of such courts nor assert that any such action or proceeding is in an
inconvenient forum or should be transferred. Both parties agree that service of
process in any such action or proceeding may be made by certified mail, return
receipt requested, without prejudice to use of other methods of service.

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                  [Remainder of Page Intentionally Left Blank]

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      IN WITNESS WHEREOF, the Company and the Executive have duly executed and
delivered this Agreement as of the day and year first above written.

                             VISKASE COMPANIES, INC.

                             By:________________________________________
                             Name:
                             Title:

                             ___________________________________________
                             Robert L. Weisman

                                       10<PAGE>

                                                                   EXHIBIT 10.13

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT is effective as of the 29th day of November,
2001 by and among Viskase Companies, Inc. ("VCI"), a Delaware corporation,
Viskase Corporation ("Viskase"), a Pennsylvania corporation, both with principal
offices at 625 Willowbrook Centre Parkway, Willowbrook, IL 60527 (VCI and
Viskase shall be collectively referred to herein as the "Company") and Gordon S.
Donovan, an individual ("Executive") (hereinafter together referred to as "the
parties").

      WHEREAS, the Company wishes to provide incentive to Executive to remain in
the employ of the Company during the period of restructuring and thereafter;

      WHEREAS, Executive has served as Vice President, Chief Financial Officer
and Treasurer of VCI and Vice President, Chief Financial Officer and Treasurer
of Viskase; and

      WHEREAS, the Company and Executive desire that Executive continue to serve
as Vice President, Chief Financial Officer and Treasurer of VCI and Vice
President, Chief Financial Officer and Treasurer of Viskase, respectively, on
the terms set forth herein.

      NOW, THEREFORE, in consideration of the mutual agreements and covenants of
the parties contained herein, the parties agree as follows:

      1.    Employment Term. The Company shall employ Executive and Executive
agrees to be employed by the Company; pursuant to the terms and conditions
hereof; for the period (the "Employment Term") commencing on the date hereof and
ending on December 31, 2004; provided, however, that on January 1, 2003 and on
each subsequent anniversary thereof, the Employment Term shall automatically be
extended for a period of one year unless either party shall have given written
notice to the other party not less than thirty days prior to January 1, 2003 or
any subsequent anniversary thereof that the Employment Term shall not be so
extended.

      2.    Duties. During the Employment Term, Executive shall serve as Vice
President, Chief Financial Officer and Treasurer of each of VCI and Viskase.
Executive shall perform such services and duties prescribed for such positions
by VCI's and Viskase's Bylaws and as are otherwise incident to such positions
and such other services and duties not inconsistent with such positions as may
be determined from time to time by the President of VCI and Viskase or the Board
of Directors of VCI ("VCI Board") or the Board of Directors of Viskase (the
"Board"). Subject to the terms and conditions of this Agreement, Executive shall
devote his full business time, attention and skills, to the best of his
abilities, to the performance of such services and duties, and use his best
efforts to promote the interests of the Company and its subsidiaries. Nothing in
this Agreement shall preclude Executive from engaging in charitable and
community affairs, from managing his personal investments or, except as
otherwise provided in Sections 8(b) and (c), from serving as a member of the
board of directors or a trustee of other companies, associations or entities,
provided, however, that such activities do not interfere in any material respect
with Executive's performance of his obligations to the Company hereunder.

      3.    Compensation. In consideration of the performance by Executive of
his obligations hereunder, the Company shall pay Executive the amounts
hereinafter set forth.

            (a)   During the Employment Term, the Company shall pay Executive

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(i) a salary (the "Base Salary") at an annual rate of not less than $178,728
payable in substantially equal installments in accordance with the normal
payroll practices of the Company then in effect for other officers of the
Company. Thereafter, Executive's Base Salary shall be increased by such amount
as shall be determined by the President of the Company in a manner consistent
with its most recent determination of increases in base salary of other senior
officers of the Company.

            (b)   During the Employment Term, Executive will be eligible to
participate in the Executive Auto Allowance Program, Viskase Companies, Inc.
Non-Qualified Parallel Plan, the Management Incentive Plan or any replacement
thereof, and the 1993 Stock Option Plan and any replacement thereof.

      4.    Benefits. During the Employment Term, Executive shall be entitled to
participate in any employee benefit plans (including, but not limited to, any
life insurance, disability, medical, dental, hospitalization, savings,
retirement and other benefit plans of the Company) then in effect for executive
officers of the Company and to receive any other fringe benefits that the
Company then provides to executive officers of the Company.

      5.    Vacations. During the Employment Term, Executive shall be entitled
to paid vacations of no less than five (5) weeks per year. In addition,
Executive's vacation entitlement shall increase in accordance with the Company's
general vacation policy.

      6.    Termination. Executive's employment hereunder may be terminated
under the following circumstances:

            (a)   Death. Executive's employment hereunder shall terminate
automatically upon Executive's death.

            (b)   Disability. The Company or Executive may terminate Executive's
employment after having established Executive's Disability. For purposes of this
Agreement, "Disability" shall be established if Executive shall be unable to
perform fully his duties hereunder because of illness, physical or mental
disability or other incapacity, as confirmed by medical evidence satisfactory to
the Company, that is expected to prevent him from returning to the full
performance of his duties hereunder for six months or longer.

            (c)   Cause. The Company may terminate Executive's employment for
"Cause." Cause shall mean a finding adopted in good faith by the Board that
Executive (i) willfully failed to substantially perform his services or duties
for the Company (other than a failure resulting from Executive's Disability) and
such failure continues for 30 days after the Board has given written notice to
Executive providing a reasonable description of the basis for the determination
that Executive has failed to perform his services or duties, (ii) has been
convicted of (or plead nolo contendere to) a felony or to a misdemeanor
involving moral turpitude or the use of a controlled substance, (iii) has
breached this Agreement in any material respect if such breach is not cured or
remedied within 30 days after the Board has given written notice to Executive
providing a reasonable description of the breach, or (iv) engaged in
embezzlement or misappropriation of the assets of the Company or any of its
subsidiaries or (v) engaged in conduct constituting willful malfeasance in
connection with his employment which is materially injurious to the Company and
its subsidiaries taken as a whole. Notwithstanding anything contained in this
Agreement to the contrary, no failure to perform by Executive after Notice of
Termination (as hereinafter defined) is given by Executive shall constitute
Cause for purposes of this Agreement. No act, or failure to act, on Executive's
part, shall be

<PAGE>

considered "willful" for purposes of (i) or (v) above unless he has acted or
failed to act with an absence of good faith and without a reasonable belief that
his action or failure to act was in the best interests of the Company. Any
action of the Board to terminate Executive for cause under clause (i), (iii),
(iv) or (v) of the preceding sentence shall not be made until after Executive
and his legal advisors have been provided an opportunity to meet with the Board,
contest the basis for such termination and to demonstrate that Executive's
continued employment is in the best interests of the Company.

            (d)   Good Reason. Executive may terminate his employment for "Good
Reason." For purposes of this Agreement, Good Reason shall mean the occurrence
of one of the following events within a period of twenty-four (24) months
following a Change of Control (as hereinafter defined) or consolidation or
elimination of the corporate office:

                  (i)   a reduction in Executive's base compensation and
incentive bonus opportunity from that in effect on the day immediately before
the effective date of a Change of Control;

                  (ii)  a reduction in Executive's principal responsibilities
from those in effect on the day immediately before the effective date of a
Change of Control;

                  (iii) any change in Executive's work location which is
different than that on the day immediately before the effective date of a Change
of Control by more than fifty (50) miles; and

                  (iv)  a material breach of this Agreement by the Company which
is not cured within thirty (30) days written notice thereof.

                  As used in this Section 7(d), the term "Company" shall also
refer to its successor entity or any entity which has acquired control of VCI or
Viskase as a result of a Change of Control.

            (e)   Notice of Termination. Any purported termination of
Executive's employment hereunder shall be communicated by a written Notice of
Termination to the other. For purposes of this Agreement, a "Notice of
Termination" shall mean a notice which indicates the specific termination
provision in this Agreement relied upon as a basis for termination. For purposes
of this Agreement, no such purported termination of employment shall be
effective without such Notice of Termination.

            (f)   Termination Date. "Termination Date" shall mean in the case of
Executive's death, his date of death, or in all other cases, the date specified
in the Notice of Termination; provided, however, that if the Company terminates
Executive's employment other than for Cause, or Executive terminates his
employment for any reason other than Good Reason, the date specified in the
Notice of Termination shall be no less than 30 days from the date the Notice of
Termination is given to Executive.

      7.    Compensation Upon Termination. Upon termination of Executive's
employment during the Employment Term, Executive shall be entitled to the
following benefits:

            (a)   If Executive's employment is terminated by the Company for
Cause, or by Executive for any reason other than Good Reason, the Company shall
pay to Executive all amounts earned or accrued hereunder through the Termination
Date but not paid as of the Termination Date, including (i) Base Salary, (ii)
accrued but unpaid vacation pay, (iii) any earned or awarded and

<PAGE>

vested, but unpaid bonus for any fiscal year of the Company ending prior to the
year in which such termination occurs and (iv) any previous compensation which
Executive has previously deferred (including any interest earned or credited
thereon) (collectively, "Accrued Compensation"). Executive's entitlement to any
other benefits shall be determined in accordance with the Company's employee
benefit plans and other applicable programs and practices then in effect.

            (b)   Subject to Section 7(c), if Executive's employment is
terminated by the Company for any reason other than for Cause, death or
Disability, or by Executive for Good Reason, the Company shall pay to Executive
an amount equal to (i) all Accrued Compensation, plus (ii) 200% of Executive's
Base Salary, plus (iii) the bonus which would have been payable to Executive
under the Management Incentive Plan in respect of the year of the Employment
Term in which the Termination Date occurs and calculated as if Executive were
employed by the Company as of the end of such year (but, to the extent the bonus
is contingent on the achievement of performance targets, based on whether such
targets were actually achieved as of the Termination Date) multiplied by a
fraction, the numerator of which shall be the number of days in such year which
have elapsed prior to the Termination Date and the denominator of which shall be
the number of days in such year. The Company shall also provide outplacement
services consistent with outplacement services provided to executive officers in
the past; provided, however, no payment shall be made to Executive in lieu of
outplacement services. In addition, Executive shall be entitled to coverage for
twenty-four (24) calendar months following the month on which the Termination
Date occurs under the life insurance, medical, dental and hospitalization
benefits which Executive would have been entitled to receive if he had continued
his employment with the Company for such period, on the terms and conditions
applicable to other executive officers of the Company as in effect from time to
time during such period. Executive's entitlement to any other benefits shall be
determined in accordance with the Company's employee benefit plans and other
programs and practices then in effect. All outstanding stock options granted or
issued pursuant to this Agreement shall become exercisable, vested and
nonforfeitable.

            (c)   If Executive's employment by the Company is terminated by the
Company following a Change of Control other than for Cause, death or Disability,
or by Executive for Good Reason, then Executive shall be entitled to the amounts
described in paragraph (b) above, except that in applying clause (iii) thereof,
it shall be assumed that the bonus to which the Executive shall be entitled
shall be equal to 40% of Base Salary irrespective of the Company's performance
or the date on which the termination occurs.

            (d)   For purposes of this Agreement, a "Change of Control" shall
mean any of the following events:

                  (1)   any Person (an "Acquiring Person") becomes the
"beneficial owner" (as such term is defined in Rule 13d3 promulgated under the
Exchange Act, a "Beneficial Owner"), directly or indirectly, of securities of
VCI or Viskase representing 20% or more of the combined voting power of VCI's or
Viskase's then outstanding securities, other than beneficial ownership by VCI or
Viskase, any employee benefit plan of VCI or Viskase or any person or entity
organized, appointed or established pursuant to the terms of any such benefit
plan;

                  (2)   VCI's or Viskase's stockholders approve an agreement to
merge or consolidate VCI or Viskase with another corporation, or an agreement
providing for the sale of substantially all of the assets of VCI or Viskase to
one or more corporations, in any case other than with or to a corporation

<PAGE>

50% or more of which is controlled by or is under common control with, VCI or
Viskase;

                  (3)   during any two-year period, individuals who at the date
on which the period commences constitute a majority of the VCI Board cease to
constitute a majority thereof for any reason; provided, however, that a director
who was not a director at the beginning of such period shall be deemed to have
satisfied the two-year requirement if such director was elected by, or on the
recommendation of, at least a majority of the directors who were directors at
the beginning of such period (either actually or by prior operation of this
provision), other than any director who is so approved in connection with any
actual or threatened contest for election to positions on the VCI Board; or

                  (4)   at any time, a majority of the members of the VCI Board
shall consist of individuals who were not nominated for election to the VCI
Board by VCI's Compensation and Nominating Committee or such other committee of
the VCI Board (including the VCI Board itself) as shall, from time to time, be
performing the function of proposing nominees for election to the VCI Board.

            (e)   If Executive's employment by the Company is terminated by
reason of Executive's death, Executive's estate or designated beneficiaries
shall receive:

                  (i) all of Executive's Accrued Compensation; and

                  (ii) and any death benefits provided under the employee
            benefits plans specified in Section 4 hereof; and

            (f)   If Executive's employment by the Company is terminated by the
Company or Executive by reason of Executive's Disability, Executive shall be
entitled to receive those amounts provided for under the Company's short-term
and long-term disability plans.

            (g)   The amounts (other than any life insurance and medical, dental
and hospitalization coverage) provided for in this Section 7 shall be paid
within five (5) business days after Executive's Termination Date. The
continuation of any life insurance, medical, dental or hospitalization benefits
pursuant to Section 7(b) or 7(c) shall be in satisfaction of the Company's
obligations under Section 4980B of the Internal Revenue Code of 1986, or any
similar state law requiring continuation of such insurance or benefits, with
respect to the period of time during which such insurance or benefits are
continued hereunder.

            (h)   The Company shall use its best efforts to ensure that shares
of the Company's common stock obtained by Executive from the Company by reason
of the exercise of stock options shall be covered by an effective registration
statement on Form S-8 (or similar or successor form) with the intention that
Executive may sell such shares in compliance with the Securities Act of 1933
(whether or not he is employed by the Company at the time of the sale).

      8.    Nondisclosure of Confidential Information; Non-Competition.

            (a)   Executive shall not, without the prior written consent of the
Company, divulge, disclose or make accessible to any other person, firm,
partnership, corporation or other entity any Confidential Information pertaining
to the business of the Company, except (i) while employed by the

<PAGE>

Company, in the business of and for the benefit of the Company, or (ii) when
required to do so by a court of competent jurisdiction, by any governmental
agency having supervisory authority over the business of the Company, or by any
administrative body or legislative body (including a committee thereof) with
purported or apparent jurisdiction to order Executive to divulge, disclose or
make accessible such information. When Executive shall cease to be employed by
the Company, the Executive shall surrender to the Company all Confidential
Information obtained by him or entrusted to him during the course of his
employment hereunder (together with all copies thereof) which pertain
specifically to any of the businesses covered by the covenants in this paragraph
or which were paid for by the Company or any of its subsidiary; provided,
however, that the Executive may retain copies of such documents as necessary for
the Executive's personal records for federal income tax purposes. For purposes
of this Section 9(a), "Confidential Information" shall mean nonpublic
information concerning the financial data of the Company or any subsidiary,
strategic business plans, product development, bidding information (or other
proprietary product data), customer lists, marketing plans and other proprietary
and confidential information of the Company or any of its subsidiaries, in each
case which is not otherwise available to the public.

            (b)   During the Employment Term and for a period of two years
thereafter, except with the prior written consent of the Board, the Executive:

                  (1)   shall not engage in any activities whether as employer,
proprietor, partner, stockholder (other than the holder of less than 5% of the
stock of a corporation the securities of which are traded on a national
securities exchange or in the over-the-counter market), director, officer,
employee or otherwise, in competition with (1) the businesses conducted at the
date hereof by the Company or any of its subsidiaries or affiliates over which
he shall have exercised, directly or indirectly, any supervisory, management,
fiscal or operating control during the Employment Term (the "Managed
Companies"), or (2) any business in which the Managed Companies are
substantially engaged at any time during the Employment Period;

                  (2)   shall not solicit, in competition with the Company, any
person who is a customer of the businesses conducted by the Managed Companies at
the date hereof or of any business in which the Managed Companies are
substantially engaged at any time during the Employment Period; and

                  (3)   shall not induce or attempt to persuade any employee of
the Managed Companies to terminate his employment relationship in order to enter
into competitive employment.

            (c)   For purposes of Section 8(b) hereof, a business shall be
deemed to be in competition with the Company if it is significantly involved in
the sale of any product or the rendering of any service significantly sold or
rendered by the Company or its subsidiaries. Nothing in this Section 8 shall be
construed so as to preclude Executive from investing in any publicly held
company, provided Executive's beneficial ownership of any class of such
company's securities does not exceed 5% of the outstanding securities of such
class.

            (d)   The following provisions shall apply to the covenants of the
Executive contained in Sections 8.01 and 8.02

                  (1)   the covenants contained in paragraphs (A) and (B) of
Section 8(1)(b).01 shall apply within all territories in which any of the
Managed Companies are actively engaged in the conduct of business during the

<PAGE>

Employment Term, including, without limitation, the territories in which
customers are then being solicited;

                  (2)   without limiting the right of the Company to pursue all
other legal and equitable remedies available for violation by the Executive of
the covenants contained in Sections 8(a) and 8(b), it is expressly agreed by the
Executive and the Company that such other remedies cannot fully compensate the
Company for any such violation and that the Company shall be entitled to
injunctive relief to prevent any such violation or any continuing violation
thereof;

                  (3)   each party intends and agrees that if in any action
before any court or agency legally empowered to enforce the covenants contained
in Sections 8(a) and 8(b) any term, restriction, covenant or promise contained
therein is found to be unreasonable and accordingly unenforceable, then such
term, restriction, covenant or promise shall be deemed modified to the extent
necessary to make it enforceable by such court or agency; and

                  (4)   the covenants contained in Sections 8(a) and 8(b) shall
survive the conclusion of Executive's Employment by the Company.

      9.    Conditional Adjustments in Compensation.

            (a)   Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by the Company
or its affiliated companies to or for the benefit of Executive (whether paid or
payable or distributed or distributable pursuant to the terms of this Agreement
or otherwise ("Total Compensation")), would be subject to the excise tax imposed
by Section 4999 of the Code (the "Excise Tax") and if it is determined that the
amount of Total Compensation remaining after payment of the Excise Tax is less
than the maximum amount of Total Compensation that could be paid without
becoming subject to such Excise Tax, the Total Compensation shall be reduced to
such maximum amount.

            (b)   All determinations required to be made under this Section 9,
and the assumptions to be utilized in arriving at such determination, shall be
made by the Company's public accounting firm (the "Accounting Firm") which shall
provide detailed supporting calculations both to the Company and Executive
within 15 business days of a request therefor by either Executive or the
Company. In the event that the Accounting Firm is serving as accountant or
auditor for the individual, entity or group effecting a Change of Control,
Executive shall appoint another nationally recognized public accounting firm to
make the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. If the Accounting Firm
determines that no Excise Tax is payable by Executive, it shall furnish
Executive with a written opinion that failure to report the Excise tax on
Executive's applicable federal income tax return would not result in the
imposition of a negligence or similar penalty. Any determination by the
Accounting Firm shall be binding upon the Company and Executive.

      10.   Withholding. Anything to the contrary herein notwithstanding, all
payments required to be made by the Company hereunder to Executive, or his
estate or beneficiaries, shall be subject to the withholding of such amounts as
the Company may reasonably determine it should withhold pursuant to any
applicable tax law or regulation.

      11.   Joint and Several Obligation. The obligations of VCI and Viskase

<PAGE>

hereunder shall be joint and several.

      12.   General Release. In order to receive any payment hereunder (other
than Accrued Compensation), Executive shall be required to execute a General
Release, in such form as determined by the Company, which releases the Company
and its subsidiaries, shareholders, directors, officers, employees, successors
and assigns from any existing and future claims except as such claims relate
directly to the payment of any amount under this Agreement.

      13.   Beneficiaries; References. Executive shall be entitled but shall not
be required to select (and change, to the extent permitted under any applicable
law) a beneficiary of beneficiaries to receive any compensation or benefit
payable hereunder following Executive's death, and may change such election, in
either case by giving the Company written notice thereof. In the event of
Executive's death or a judicial determination of his incompetence, reference in
this Agreement to Executive shall be deemed, where appropriate, to refer to his
beneficiary, estate or other legal representative.

      14.   Successors and Assigns.

            (a)   This Agreement shall be binding upon and shall inure to the
benefit of the Company, its successors and assigns, and the Company shall
require any successor or assign to expressly assume and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform if no such succession or assignment had taken place. The
term "the Company" as used herein shall include such successors and assigns. The
term "successors and assigns" as used herein shall mean a corporation or other
entity acquiring all or substantially all of the assets and business of the
Company (including this Agreement) whether by operation of law or otherwise.

            (b)   Neither this Agreement nor any right or interest hereunder
shall be assignable or transferable by Executive, his beneficiaries or legal
representatives, except by will or by the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by Executive's legal
personal representative.

      15.   Notice. For the purposes of this Agreement, notices and all other
communications provided for in this Agreement (including the Notice of
Termination) shall be in writing and shall be deemed to have been duly given
when personally delivered or sent by certified mail return receipt requested,
postage prepaid, addressed to the respective address last given by each party to
the other, provided that all notices to the Company shall be directed to the
attention of the Board with a copy to the Secretary of the Company. All notices
and communications shall be deemed to have been received on the date of delivery
thereof or on the third business day after the mailing thereof, except that
notice of change of address shall be effective only upon receipt.

     16.   Non-Exclusivity of Rights. Nothing in this Agreement shall limit or
reduce such rights as Executive may have under any other agreements with the
Company or any of its subsidiaries concerning any subject matter other than that
which is addressed herein; provided, however, that the payments and benefits
provided under Section 8 shall be in lieu of any other termination benefits
(including severance, notice and pay and salary continuation) to which Executive
may otherwise be entitled, and executive hereby waives any and all rights to
such other termination benefits. Amounts which are vested benefits or which
Executive is otherwise entitled to receive under any plan or program of the
Company or any of its subsidiaries shall be payable in accordance with such plan
or program, except as explicitly modified by this

<PAGE>

Agreement.

      17.   Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification, or discharge is agreed to
in writing and signed by Executive and the Company. No waiver by either party
hereto at any time of any breach by the other party hereto of, or compliance
with, any condition or provision of this Agreement to be performed by such other
party shall be deemed a waiver of similar or dissimilar provisions or conditions
at the same or at any prior or subsequent time. No agreement or representations,
oral or otherwise, express or implied, with respect to the subject matter hereof
have been made by either party which are not expressly set forth in this
Agreement.

      18.   Governing Law. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of Illinois, without
giving effect to the conflict of law principles thereof.

      19.   Severability. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any provision shall not
affect the validity or enforceability of the other provisions hereof.

      20.   Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto and supersedes all prior agreements, if any,
understandings and arrangements, oral or written, between the parties hereto
with respect to the subject matter hereof.

      21.   Attorneys' Fees and Costs. The Company agrees to pay all costs and
expenses, including attorneys' fees, which may be incurred by Executive in
enforcing this Agreement against the Company or in connection with any contest
of the validity or enforceability of this Agreement by the Company or any third
party, including without limitation any rejection of this Agreement in any
bankruptcy or similar procedure.

      IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
by its duly authorized officer and Executive has executed this Agreement as of
the day and year first above written.

                             VISKASE COMPANIES, INC.
                             By: ___________________________
                             Title: ________________________
                             VISKASE CORPORATION
                             By: ___________________________
                             Title: ________________________

                             _______________________________
                             Gordon S. Donovan

10

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