Document:

exv10w1

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT (the “Agreement”) is entered into as of June 29, 2010 (the
“Effective Date”), by and between SL Industries, Inc. (the “Company”), having its principal place
of business at 520 Fellowship Road, Suite A-114, Mt. Laurel, New Jersey 08054 and William Fejes
(“Executive,” and the Company and the Executive collectively referred to herein as the “Parties”).

W I T N E S S E T H:

WHEREAS, the Company desires to hire Executive and to employ him as the Chief Executive
Officer (“CEO”) of the Company, and the Parties desire to enter into this Agreement embodying the
terms of such employment and will begin work on June 28, 2010;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and promises of the
Parties contained herein, the Parties, intending to be legally bound, hereby agree as follows:

1. Title and Job Duties.

(a) Subject to the terms and conditions set forth in this Agreement, the Company agrees to
employ Executive as CEO. In this capacity, Executive shall have the duties, authorities and
responsibilities commensurate with the duties, authorities and responsibilities of persons in
similar capacities in similarly sized companies, and such other duties, authorities and
responsibilities as the Board of Directors of the Company (the “Board”) shall designate from time
to time that are not inconsistent with the Executive’s position as CEO. Executive shall report
directly to the Board. All employees of the Company shall report directly to Executive or his
designee.

(b) Executive accepts such employment and agrees, during the term of his employment, to devote
his full business and professional time and energy to the Company. Executive agrees to carry out
and abide by all lawful directions of the Board and the Chairman of the Board that are consistent
with his position as Chief Executive Officer.

(c) Without limiting the generality of the foregoing, Executive shall not, without the written
approval of the Company, render services of a business or commercial nature on his own behalf or on
behalf of any other person, firm, or corporation, whether for compensation or otherwise, during his
employment hereunder, provided that the foregoing shall not prevent the Executive from (i) serving
on the boards of directors of non-profit organizations and, with the prior written approval of the
Board, other for profit companies (provided that no such written approval is necessary for
Executive’s continued service on the board of directors of Broadwind Energy Inc.), (ii)
participating in charitable, civic, educational, professional, community or industry affairs, and
(iii) managing Executive’s passive personal investments so
long as such activities in the aggregate do not materially interfere or conflict with
Executive’s duties hereunder or create a potential business or fiduciary conflict.

 

 

 

(d) Executive may own passive investments in Competing Businesses, defined below, (including,
but not limited to, indirect investments through mutual funds), provided the securities of the
Competing Business are publicly traded and Executive does not own or control more than one percent
(1%) of the outstanding voting rights or equity of the Competing Business. “Competing Business”
means any corporation, partnership, limited liability company or other entity or person (other than
the Company) which is engaged in any business (i) presently carried on by the Company, or (ii) in
which the Company, the Board and senior management together consider engaging in the twelve (12)
months prior to the termination of Executive’s employment.

2. Salary and Additional Compensation.

(a) Base Salary. The Company shall pay to Executive an annual base salary of
$350,000, less applicable withholdings and deductions, in accordance with the Company’s normal
payroll procedures. The Board may increase the Executive’s annual base salary from time to time in
its sole and absolute discretion (such salary as increased from time to time, the “Base Salary”).

(b) Bonus. Executive shall be eligible for an annual bonus of up to one-hundred
percent (100%) of Executive’s annual Base Salary (“Target Bonus”), at the sole discretion of the
Board. Such Target Bonus shall be payable in a manner that is consistent with the then current SL
Industries, Inc. Annual Bonus Plan (the “Bonus Plan”).

(c) Options. On the later of the Effective Date or the date upon which the
Compensation Committee of the Board approves such a grant, the Company shall grant to Executive an
option to purchase 100,000 shares of the Company’s common stock (“Options”) under the 2008
Incentive Stock Plan (the “Plan”), pursuant to terms and conditions of the Plan, this Agreement and
the stock option award agreement attached hereto as Exhibit A (the “Stock Option
Agreement”), which Options shall be granted at the Fair Market Value (as such term is defined in
the Plan) on the date of the grant, and shall vest according to the following schedule: Thirty-four
percent (34%) of the Options shall vest on the first anniversary of the Effective Date,
thirty-three percent (33%) of the Options shall vest on the second anniversary of the Effective
Date, and thirty-three percent (33%) of the Options shall vest on the third anniversary of the
Effective Date. In the event that the Company declares and pays an extraordinary cash dividend to
its stockholders on or prior to the third anniversary of the Effective Date, then Executive shall
receive a payment on the third anniversary of the Effective Date equal to the product of (x) the
amount of such extraordinary cash dividend (reduced dollar for dollar by any reduction to the
exercise price of the Options made in connection with such dividend), and (y) the number of shares
subject to outstanding and unexercised Options granted pursuant to this Section 2(c).

(d) Future Equity Awards. The Executive shall be eligible to participate in future
grants pursuant to the Plan and other Company performance incentive plans extended to senior
executives of the Company generally, at levels commensurate with Executive’s position.

 

 

 

3. Expenses. In accordance with Company policy, the Company shall reimburse Executive
for all reasonable business expenses properly and reasonably incurred and paid by Executive in the
performance of his duties under this Agreement upon his presentment of detailed receipts in the
form required by the Company’s policy.

4. Benefits.

(a) Vacation. Executive shall be entitled to vacation in accordance with the
Company’s standard vacation policy extended to senior executives of the Company generally, at
levels commensurate with Executive’s position.

(b) Health Insurance and Other Plans. Executive shall be eligible to participate in
the Company’s medical, dental, long term incentive plan, and other employee benefit programs, if
any, that are provided by the Company for its employees generally, at levels commensurate with
Executive’s position, in accordance with the provisions of any such plans, as the same may be in
effect from time to time.

5. Term. Except as otherwise provided herein, the terms set forth in this Agreement
will commence on the Effective Date hereof and shall remain in effect for an initial term of one
(1) year and shall automatically renew for subsequent one (1) year periods unless Executive or the
Company is notified of non-renewal upon no less than thirty (30) days’ written notice by the other
party (the initial term and subsequent terms are referred to collectively as the “Term”).

6. Termination.

(a) Termination at the Company’s Election.

(i) For Cause. At the election of the Company, Executive’s employment may be
terminated for Cause (as defined below) upon written notice to Executive pursuant to Section 13 of
this Agreement. For purposes of this Agreement, “Cause” for termination shall mean that Executive:
(A) pleads “guilty” or “no contest” to or is indicted for or convicted of a felony under federal or
state law or as a crime under federal or state law which involves Executive’s fraud or dishonesty;
(B) in carrying out his duties, engages in conduct that constitutes gross negligence or willful
misconduct; (C) engages in misconduct that causes material harm to the reputation of the Company;
or (D) materially breaches any term of this Agreement or material written policy of the Company,
provided that if the Company provides written notice of Cause pursuant to (D), the Executive shall
be given thirty (30) days from the date of such written notice to cure such breach.

(ii) Upon Disability, Death or Without Cause. At the election of the Company,
Executive’s employment may be terminated without Cause: (A) should Executive become physically or
mentally unable to perform his duties for the Company hereunder and such incapacity has continued
for a total of ninety (90) consecutive days or any one hundred eighty (180) days in a period of
three hundred sixty-five (365) consecutive days (a “Disability”); (B) upon Executive’s death
(“Death”); or (C) upon thirty (30) days’ written notice for any other reason.

 

 

 

(b) Termination at Executive’s Election.

(i) For Good Reason. At Executive’s election, Executive’s employment may be
terminated for Good Reason (as defined below) by providing notice to the Company pursuant to
Section 13 of this Agreement. For purposes of this Agreement, “Good Reason” shall be deemed to
exist if the following actions occur without Executive’s consent: (A) a material diminution in
Executive’s Base Salary; (B) a material diminution in Executive’s authority, duties or
responsibilities under this Agreement, provided that removal of Executive as a director of the
Board (if Executive is appointed to the Board at any time), shall not constitute a material
diminution in Executive’s authority, duties or responsibilities under this Agreement; or (C) any
other action or inaction that constitutes a material breach of the terms of this Agreement by the
Company. In the event any of the occurrences in (A) through (C) above have occurred, the Company
shall be given written notice by Executive of Executive’s intention to so terminate Executive’s
employment, such notice: (i) to state in detail the particular acts or failures to act that
constitute the grounds on which the proposed termination for Good Reason is based, and (ii) to be
given within sixty (60) days after the first occurrence of such acts or failures to act. The
Company shall have thirty (30) days following receipt of such notice to cure such acts or failures
to act in all material respects. If the Company has not cured such acts or failures to act within
the thirty (30) day cure period, and Executive has not withdrawn the notice, then the Executive’s
employment shall be immediately terminated for Good Reason.

(ii) Voluntary Resignation. Notwithstanding anything contained elsewhere in this
Agreement to the contrary, Executive may terminate his employment hereunder at any time and for any
reason whatsoever or for no reason at all in Executive’s sole discretion by giving thirty (30) days
written notice pursuant to Section 13 of this Agreement.

7. Payments Upon Termination of Employment.

(a) Termination for Cause or Resignation Without Good Reason. If, prior to the
expiration of the Term, the Executive’s employment is terminated by the Company for “Cause” or if
the Executive resigns from his employment hereunder other than for “Good Reason”, the Executive
shall be entitled to the following amounts only: (A) payment of his Base Salary accrued up to and
including the date of termination or resignation within thirty (30) days following termination, (B)
payment in lieu of any accrued but unused vacation time, in accordance with the Company’s vacation
policy, and (C) payment of any unreimbursed expenses in accordance with the Company’s business
reimbursement policy, and (D) payments and benefits under any Company benefit plan, program or
policy that Executive participated in during employment and paid pursuant to the terms of such
plan, program and policy (collectively, the “Accrued Obligations”).

 

 

 

(b) Termination for Reasons other than Cause or Voluntary Resignation. If Executive’s
employment is terminated, at his or the Company’s election at any time due to his Death or
Disability, due to the expiration or non-renewal of the Agreement prior to the Executive’s
65th birthday, or for reasons other than Cause or Voluntary Resignation and Section 7(c)
is not applicable at the time of Executive’s termination of employment, Executive shall be entitled
to receive the Accrued Obligations and, provided he executes a General Release in the form annexed
hereto as Exhibit B (the “General Release”), severance payments and benefits
equal to the following: (i) subject to Section 20, one (1) year of Executive’s Base Salary
paid in installments in accordance with the Company’s regular payroll practices (the “Severance
Payment”); (ii) reimbursement for the premium associated with one (1) year continuation of health
insurance coverage pursuant to COBRA, (iii) immediate vesting of any Options that are scheduled to
vest, pursuant to Section 2(c), within one year of the date of termination of employment, provided
that Executive may exercise vested Options until the earlier of (y) thirty (30) days following
termination of employment and (z) the scheduled expiration of the Options (“Post Termination
Exercise Period”); (iv) unpaid bonuses with respect to the fiscal year ending on or preceding the
date of termination, if any, provided Executive is employed on December 31 of that year and the
Bonus Plan is in full force and effect, shall be paid pursuant to the terms of the Bonus Plan
(“Accrued Bonus”), provided that such payment shall be paid at the same time as other employees
receive their bonuses and no later than December 31 of the year after the year in which the bonus
was earned; and (v) unpaid bonus through the termination or resignation date, if any, or, if the
full bonus has not been earned, a pro-rata portion of such bonus, pursuant to the terms of the
Bonus Plan. Payment of the Base Salary component of Executive’s severance shall be made on regular
paydays. Subject to Executive’s execution and delivery of a general release (that has not been
revoked and is no longer subject to revocation under applicable law) of the Company, its parents,
subsidiaries and affiliates and each of its officers, directors, employees, agents, successors and
assigns in the form attached hereto as Exhibit B (the “General Release”) all payments
and/or grants under this Section 7(b) shall begin sixty (60) days following termination of
employment provided, that the first payment for severance payments described in Section 7(b)(i)
shall include payment of any amounts otherwise due as of the date of termination and all payments
and benefits that are not considered deferred compensation under Code Section 409A, shall be
commenced, made or provided, as applicable, as soon as administratively feasible after the General
Release becomes effective, provided, further that if Executive’s employment terminates due to Death
or Disability, Executive (or his legal representative or estate) shall not be required to execute
and deliver the General Release in order to receive severance payments and benefits provided in
this Section 7(b).

(c) Termination of the Term. If Executive’s employment terminates on the expiration
of the Term as provided in Section 5, and the Executive is age 65 or older on the date of
expiration of the Term, then Executive shall only be entitled to the Accrued Obligations.

(d) No Mitigation; No Set-Off. The Company’s obligation to pay Executive the amounts
provided and to make the arrangements provided hereunder shall not be subject to set-off,
counterclaim or recoupment of amounts owed by Executive to the Company or its affiliates.
Executive shall not be required to mitigate the amount of any payment provided for pursuant to this
Agreement by seeking other employment, and no amounts otherwise
earned shall be set-off against
the amounts due hereunder.

 

 

 

8. Confidentiality Agreement and Assignment of Intellectual Property.

(a) Executive understands that during the Term, he may have access to unpublished and
otherwise confidential information both of a technical and non-technical nature, relating to the
business of the Company and any of its parents, subsidiaries, divisions, affiliates (collectively,
“Affiliated Entities”), or clients, including without limitation any of their actual or anticipated
business, research or development, any of their technology or the implementation or
exploitation thereof, including without limitation information Executive and others have
collected, obtained or created, information pertaining to clients, accounts, vendors, prices,
costs, materials, processes, codes, material results, technology, system designs, system
specifications, materials of construction, trade secrets and equipment designs, including
information disclosed to the Company by others under agreements to hold such information
confidential (collectively, the “Confidential Information”). Executive agrees to observe all
Company policies and procedures concerning such Confidential Information. Executive further agrees
not to disclose or use, either during his employment or at any time thereafter, any Confidential
Information for any purpose, including without limitation any competitive purpose, unless
authorized to do so by the Company in writing, except that he may disclose and use such information
in the good faith performance of his duties for the Company. Executive’s obligations under this
Agreement will continue with respect to Confidential Information, whether or not his employment is
terminated, until such information becomes generally available from public sources through no fault
of Executive or any representative of Executive. Notwithstanding the foregoing, however, Executive
shall be permitted to disclose Confidential Information as may be required by a subpoena or other
governmental order, provided that he first notifies the Company of such subpoena, order or other
requirement and such that the Company has the opportunity to obtain a protective order or other
appropriate remedy.

(b) During Executive’s employment, upon the Company’s request, or upon the termination of his
employment for any reason, Executive will promptly deliver to the Company all documents, records,
files, notebooks, manuals, letters, notes, reports, customer and supplier lists, cost and profit
data, e-mail, apparatus, computers, blackberries or other PDAs, hardware, software, drawings,
blueprints, and any other material of the Company or any of its Affiliated Entities or clients,
including all materials pertaining to Confidential Information developed by Executive or others,
and all copies of such materials, whether of a technical, business or fiscal nature, whether on the
hard drive of a laptop or desktop computer, in hard copy, disk or any other format, which are in
his possession, custody or control. Executive may retain the Executive’s rolodex and similar
address books, including in electronic form, provided, that such items only include contact
information.

(c) Executive will promptly disclose to the Company any idea, invention, discovery or
improvement, whether patentable or not (“Creations”), conceived or made by him alone or
with others at any time during his employment. Executive agrees that the Company owns any such
Creations, conceived or made by Executive alone or with others at any time during his employment,
and Executive hereby assigns and agrees to assign to the Company all rights he has or may acquire
therein and agrees to execute any and all applications, assignments and other instruments relating
thereto which the Company deems necessary or desirable. These obligations shall continue beyond
the termination of his employment with respect to Creations and derivatives of such Creations
conceived or made during his employment with the Company. The Company and Executive understand
that the obligation to assign Creations to the Company shall not apply to any Creation which is
developed entirely on his own time without using any of the Company’s equipment, supplies,
facilities, and/or Confidential Information unless such Creation (a) relates in any way to the
business or to the current or anticipated research or development of the Company or any of its
Affiliated Entities; or (b) results in any way from his work at the Company.

 

 

 

(d) Executive will not assert any rights to any invention, discovery, idea or improvement
relating to the business of the Company or any of its Affiliated Entities or to his duties
hereunder as having been made or acquired by Executive prior to his work for the Company, except
for the matters, if any, described in Exhibit C to this Agreement.

(e) During his employment with the Company, if Executive incorporates into a product or
process of the Company or any of its Affiliated Entities anything listed or described in
Exhibit C, the Company is hereby granted and shall have a non-exclusive, royalty-free,
irrevocable, perpetual, worldwide license (with the right to grant and authorize sublicenses) to
make, have made, modify, use, sell, offer to sell, import, reproduce, distribute, publish, prepare
derivative works of, display, perform publicly and by means of digital audio transmission and
otherwise exploit as part of or in connection with any product, process or machine.

(f) Executive agrees to cooperate fully with the Company, both during and after his employment
with the Company, with respect to the procurement, maintenance and enforcement of copyrights,
patents, trademarks and other intellectual property rights (both in the United States and foreign
countries) relating to such Creations. Executive shall sign all papers, including, without
limitation, copyright applications, patent applications, declarations, oaths, formal assignments,
assignments of priority rights and powers of attorney, which the Company may deem necessary or
desirable in order to protect its rights and interests in any Creations. Executive further agrees
that if the Company is unable, after reasonable effort, to secure Executive’s signature on any such
papers, any officer of the Company shall be entitled to execute such papers as his agent and
attorney-in-fact and Executive hereby irrevocably designates and appoints each officer of the
Company as his agent and attorney-in-fact to execute any such papers on his behalf and to take any
and all actions as the Company may deem necessary or desirable in order to protect its rights and
interests in any Creations, under the conditions described in this paragraph.

9. Non-solicitation; non-competition.

 (a) Executive agrees that while he is employed
and for a period of one (1) year after the termination of his employment, Executive will not,
directly or indirectly, including on behalf of any person, firm or other entity, employ or solicit
for employment any employee of the Company, or anyone who was an employee of the Company or any of
its Affiliated Entities within the twelve (12) months prior to the termination of Executive’s
employment, or induce any such employee to terminate his or her employment with the Company.

(b) Executive further agrees that while he is employed and for a period of one (1) year after
the termination of his employment, Executive will not, directly or indirectly, including on behalf
of any person, firm or other entity, without the express written consent of an authorized
representative of the Company, (i) perform services within the Territory (as defined below) for any
Competing Business (as defined below), whether as an employee, consultant, agent, contractor or in
any other capacity, (ii) hold office as an officer or director or like position in any Competing
Business, (iii) request any present or future customers or suppliers of the Company or any of its
Affiliated Entities to curtail or cancel their business with the Company or any of its Affiliated
Entities, and (iv) solicit or accept business from such present or future customers or suppliers of
the Company or any of its Affiliated Entities. These obligations will
continue for the specified period regardless of whether the termination of Executive’s
employment was voluntary or involuntary or with or without Cause.

 

 

 

(c) “Territory” shall mean (i) throughout the United States, but if such area is determined by
judicial action to be too broad, then it shall mean (ii) throughout the states of New Jersey,
Massachusetts, Wisconsin, Minnesota and California.

(d) Executive agrees that in the event a court determines the length of time or the geographic
area or activities prohibited under this Section 9 are too restrictive to be enforceable, the court
may reduce the scope of the restriction to the extent necessary to make the restriction
enforceable.

10. Legal Fees. The Company shall pay directly to Executive’s legal counsel or
reimburse Executive for up to $15,000 for legal fees incurred by Executive relating to negotiating,
drafting and execution of this Agreement and any related equity award agreements.

11. Representation and Warranty. Executive represents and warrants to the Company
that he is not subject to any agreement restricting his ability to enter into this Agreement and
fully carry out his duties and responsibilities hereunder. To the extent that Executive continues
to be bound by confidentiality, non-disparagement obligations with regard to his former employer,
the Company and Executive agree that neither shall require Executive to disclose any confidential
information of any prior employer of Executive or misappropriate any intellectual property
belonging to any other person or entity during the Term.

12. Injunctive Relief. Without limiting the remedies available to the Company,
Executive acknowledges that a breach of any of the covenants contained in Sections 8 and 9 above
may result in material irreparable injury to the Company for which there is no adequate remedy at
law, that it will not be possible to measure damages for such injuries precisely and that, in the
event of such a breach or threat thereof, the Company shall be entitled, without the requirement to
post bond or other security, to obtain a temporary restraining order and/or injunction restraining
Executive from engaging in activities prohibited by this Agreement or such other relief as may be
required to specifically enforce any of the covenants in Sections 8 and 9 of this Agreement.

13. Notice. Any notice or other communication required or permitted to be given to
the Parties shall be deemed to have been given if personally delivered, if sent by nationally
recognized overnight courier or if mailed by certified or registered mail, return receipt
requested, first class postage prepaid, and addressed as follows:

	 	 	 	 	 
	 

	 	(a)
	 	If to Executive, to:
	 
	 
	 

	 	 	 	the address shown on the records of the Company.
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 
	 

	 	 	 	Dechert LLP
1775 I Street, NW
	 

	 	 	 	Washington, DC 20006
	 

	 	 	 	Attn: David E. Schulman, Esq.

 

 

 

	 	 	 	 	 
	 

	 	(b)
	 	If to the Company, to:
	 
	 
	 

	 	 	 	SL Industries, Inc.
520 Fellowship Road
	 

	 	 	 	Suite A114
	 

	 	 	 	Mt. Laurel, New Jersey 08054
	 

	 	 	 	Attention: Chairman of the Board
	 
	 	 	 	 
	 

	 	 	 	with a copy to:
	 
	 	 	 	 
	 

	 	 	 	Olshan Grundman Frome Rosenzweig & Wolosky LLP
65 East 55th Street
	 

	 	 	 	New York, New York 10022
	 

	 	 	 	Attention: Adam W. Finerman, Esq.

14. Severability. If any provision of this Agreement is declared void or
unenforceable by a court of competent jurisdiction, all other provisions shall nonetheless remain
in full force and effect.

15. Governing Law and Arbitration. This Agreement shall be governed by, and construed
and enforced in accordance with, the laws of the State of New Jersey, without regard to the
conflict of laws provisions thereof. Any action, suit or other legal proceeding that is commenced
to resolve any matter arising under or relating to any provision of this Agreement shall be
submitted to the exclusive jurisdiction of any state or federal court in Burlington County, New
Jersey.

16. Liability Insurance. The Company shall cover Executive under the directors’ and
officers’ liability insurance during the Term in the same amount and to the same extent as the
Company covers its other officers and directors.

17. Waiver. The waiver by either Party of a breach of any provision of this Agreement
shall not be or be construed as a waiver of any subsequent breach. The failure of a Party to
insist upon strict adherence to any provision of this Agreement on one or more occasions shall not
be considered a waiver or deprive that Party of the right thereafter to insist upon strict
adherence to that provision or any other provision of this Agreement. Any waiver must be in
writing.

18. Assignment. This Agreement is a personal contract and Executive may not sell,
transfer, assign, pledge or hypothecate his rights, interests and obligations hereunder. Except as
otherwise herein expressly provided, this Agreement shall be binding upon and shall inure to the
benefit of Executive and his personal representatives and shall inure to the benefit of and be
binding upon the Company and its successors and assigns, except that the Company may not assign
this Agreement without the Executive’s prior written consent, except to an acquirer of all or
substantially all of the assets of the Company other than the real estate assets and upon written
assumption of the obligations of this Agreement.

 

 

 

19. Entire Agreement. This Agreement (together with the Exhibits attached hereto)
embodies all of the representations, warranties, and agreements between the Parties relating to
Executive’s employment with the Company. No other representations, warranties, covenants,
understandings, or agreements exist between the Parties relating to Executive’s employment. This
Agreement shall supersede all prior agreements, written or oral, relating to Executive’s
employment. This Agreement may not be amended or modified except by a writing signed by the
Parties.

20. Code Section 409A Compliance.

(a) The intent of the parties is that payments and benefits under this Agreement comply with,
or be exempt from, Internal Revenue Code (“Code”) Section 409A and the regulations and guidance
promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum
extent permitted, this Agreement shall be interpreted to be in compliance therewith. If the
Executive notifies the Company (with specificity as to the reason therefore) that the Executive
believes that as a result of subsequent published guidance issued by the I.R.S. upon which
taxpayers generally rely, any provision of this Agreement (or of any award of compensation,
including equity compensation or benefits) would cause Executive to incur any additional tax or
interest under Code Section 409A and the Company concurs with such belief or the Company
independently makes such determination, the Company shall, after consulting with the Executive,
reform such provision to try to comply with Code Section 409A through good faith modifications to
the minimum extent reasonably appropriate to conform with Code Section 409A, and to the extent
applicable, IRS Notice 2010-6. To the extent that any provision hereof is modified in order to
comply with Code Section 409A, such modification shall be made in good faith and shall, to the
maximum extent reasonably possible, maintain the original intent and economic benefit to the
Executive and the Company and is tax neutral to the Company of the applicable provision without
violating the provisions of Code Section 409A.

(b) A termination of employment shall not be deemed to have occurred for purposes of any
provision of this Agreement providing for the payment of any amounts or benefits upon or following
a termination of employment that are considered “nonqualified deferred compensation” under Code
Section 409A unless such termination is also a “separation from service” within the meaning of Code
Section 409A and, for purposes of any such provision of this Agreement, references to a
“termination,” “termination of employment” or like terms shall mean “separation from service.” If
the Executive is deemed on the date of termination to be a “specified employee” within the meaning
of that term under Code Section 409A(a)(2)(B), then with regard to any payment that is considered
non-qualified deferred compensation under Code Section 409A payable on account of a “separation
from service,” such payment or benefit shall be made or provided at the date which is the earlier
of (A) the expiration of the six (6)-month period measured from the date of such “separation from
service” of the Executive, and (B) thirty (30) days from the date of the Executive’s death (the
“Delay Period”). Upon the expiration of the Delay Period, all payments and benefits
delayed pursuant to this Section 20 (whether they would have otherwise been payable in a
single sum or in installments in the absence of such delay) shall be paid or reimbursed to the
Executive in a lump sum and any remaining payments and benefits due under this Agreement shall be
paid or provided in accordance with the normal payment dates specified for them herein.

 

 

 

(c) For purposes of Code Section 409A, the Executive’s right to receive any installment
payments pursuant to this Agreement shall be treated as a right to receive a series of separate and
distinct payments.

(d) All reimbursements under this Agreement (including without limitation under Sections
3, 7 and 10) shall be made as soon as practicable following submission of a reimbursement
request, but no later than the end of the year following the year during which the underlying
expense was incurred.

21. Limitation on Benefits. Notwithstanding anything to the contrary contained in
this Agreement, to the extent that any of the payments and benefits provided for under this
Agreement or any other agreement or arrangement between the Company and Executive, or any
arrangement or agreement with any person whose actions result in a change of ownership of effective
control or a change in ownership of a substantial portion of the assets of the corporation covered
by Section 280G(b)(2) (collectively, the “Payments”) (i) constitute a “parachute payment” within
the meaning of Section 280G of the Code and (ii) but for this Section 21, would be subject to the
excise tax imposed by Section 4999 of the Code, then the Payments shall be payable either (i) in
full or (ii) as to such lesser amount which would result in no portion of such Payments being
subject to excise tax under Section 4999 of the Code; whichever of the foregoing amounts, taking
into account the applicable federal, state and local income taxes, payroll taxes and the excise tax
imposed by Section 4999, results in Executive’s receipt on an after-tax basis, of the greater
amount of payment and benefits. Any reduction under clause (ii) of the preceding sentence shall be
done first by reducing any cash severance payments with the last payment reduced first; next any
equity or equity derivatives that are included at full value rather than accelerated value; next
any equity or equity derivatives based on acceleration value shall be reduced with the highest
value reduced first. Notwithstanding the foregoing, to the extent that the Company and Executive
agree that it would not violate Code Section 409A or impact the ability of the parties to reduce
the amounts receivable, the Executive may prescribe a different order of reduction. Unless
Executive and the Company otherwise agree in writing, any determination required under this Section
shall be made in writing by the Company’s independent public accountants (the “Accountants”), whose
determination shall be conclusive and binding upon Executive and the Company for all purposes. For
purposes of making the calculations required by this Section, the Accountants may make reasonable
assumptions and approximations concerning applicable taxes and may rely in reasonable, good faith
interpretations concerning the application of Section 280G and 4999 of the Code. The Company and
Executive shall furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section. The Company shall bear all
costs the Accountants may reasonably incur in connection with any calculations contemplated by this
Section. If the limitation set forth in this Section 21 is applied to reduce an amount payable to
Executive, and the Internal Revenue Service successfully asserts that, despite the reduction,
Executive has nonetheless received payments which are in excess of the maximum amount that could
have been paid to Executive without being subjected to any excise tax, then, unless it would be
unlawful for the Company to make such a loan or similar extension of credit to Executive, Executive
shall repay such excess amount to the Company as though such amount constitutes a loan to Executive
made at the date of payment of such excess amount, bearing interest at 120% of the applicable
federal rate (as determined under section 1274(d) of the Code in respect of such loan), provided
that if the recalculation of the higher
amount was then redone based on the IRS position and the Executive would net more if no
reduction took place, such reduction shall be cancelled and the full amount paid to Executive in a
lump sum within thirty (30) days of the IRS assessment becoming final, unless this proviso would
negate the ability to use the reduction if this was not implemented or caused a violation of Code
Section 409A, in which case this proviso shall be null and void.

[Signature page follows]

 

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered
on the date above.

	 	 	 	 	 
	 	SL INDUSTRIES, INC.

 	 
	 	By:  	/s/ Glen Kassan
 	 
	 	 	Name:  	Glen Kassan 	 
	 	 	Title:  	Chairman of the Board 	 

Agreed to and Accepted:

	 	 	 	 	 
	 	/s/ William Fejes, Jr.
 	 
	 	William Fejes 	 

 

 

 

EXHIBIT A

Stock Option Agreement

 

 

 

EXHIBIT B

AGREEMENT AND RELEASE

Agreement and Release (“Agreement”) executed this
 _____day of
 _____, 20_____, by and between
William Fejes (“Executive”) with an address at                      and SL Industries, Inc., its
parents, subsidiaries and affiliates (the “Company”) with an address at
                                                            .

1. Executive’s employment shall be terminated effective
 _____ 
(“Termination Date”). As of
that date, Executive’s duties, responsibilities, office and title shall cease. Capitalized terms
used without definition in this Agreement shall have the meanings set forth in the Employment
Agreement by and between Executive and the Company, dated [June [•], 2010] (the “Employment
Agreement”).

2. (a) If Executive’s employment terminates pursuant to Section 6(a)(ii) (Death, Disability or
without Cause) or 6(b)(i) (for Good Reason) of the Employment Agreement, then provided the Release
Effective Date, defined below, has passed, on the sixtieth (60th) day following the
Termination Date the Company shall begin to pay to Executive the payments and benefits described in
Section 7(b) of the Employment Agreement in accordance with the Company’s standard payroll
procedures and on regular paydays, provided however that Executive shall receive the Accrued
Obligations regardless of whether he executes this Agreement.

(b) The Company and Executive agree that in the event that any of the payments in this Section
2 constitute deferred compensation within the meaning of Section 409(A) of the Internal Revenue
Code of 1986, as amended (the “Code”), and Executive is at such time a specified employee, such
payment or payments that constitute nonqualified deferred compensation within the meaning of the
Code shall not be made prior to the date which is the earlier of (A) the expiration of the six
(6)-month period measured from the date of such “separation from service” of the Executive, and (B)
thirty (30) days from the date of the Executive’s death (within the meaning of the Code).

3. Executive agrees and acknowledges that the payments and/or benefits provided in Paragraph 2
above exceed any payments and benefits to which Executive would otherwise be entitled under any
policy, plan, and/or procedure of the Company absent his signing this Agreement. Executive
acknowledges that he has been paid for work performed up to and including the Termination Date and
for accrued but unused vacation.

4. Executive shall have up to twenty-one (21) days from the date of his receipt of this
Agreement to consider the terms and conditions of this Agreement. Executive may accept this
Agreement at any time within the twenty-one (21) day period by executing it before a notary and
returning it to the Chairman of the Board of Directors, SL Industries, Inc. [ADDRESS], no later
than 5:00 p.m. on the twenty-first (21st) day after Executive’s receipt of this Agreement.
Thereafter, Executive will have seven (7) days to revoke this Agreement by stating his desire to do
so in writing to the Chairman of the Board of Directors at the address listed above, and delivering
it to the Chairman of the Board of Directors no later than 5:00 p.m. on the seventh
(7th) day following the date Executive signs this Agreement. The effective date of
this Agreement shall be the eighth (8th) day following Executive’s signing of this
Agreement (the “Release Effective Date”), provided the Executive does not revoke the Agreement
during the revocation period. In the event Executive does not accept this Agreement as set forth
above, or in the event Executive revokes this Agreement during the revocation period, this
Agreement, including but not limited to the obligation of the Company and its subsidiaries and
affiliates to provide the payment and/or benefits referred to in Paragraph 2 above, shall
automatically be deemed null and void.

 

 

 

5. (a) In consideration of the payment and/or benefits referred to in Paragraph 2 above,
Executive for himself and for his heirs, executors, and assigns (hereinafter collectively referred
to as the “Releasors”), forever releases and discharges the Company and any and all of its parent
corporations, subsidiaries, divisions, affiliated entities, predecessors, successors and assigns,
and any and all of its or their employee benefit and/or pension plans or funds, and any of its or
their past or present officers, directors, stockholders, agents, trustees, administrators,
employees or assigns (whether acting as agents for such entities or in their individual
capacities), (hereinafter collectively referred to as the “Releasees”), from any and all claims,
demands, causes of action, fees and liabilities of any kind whatsoever (based upon any legal or
equitable theory, whether contractual, common-law, statutory, decisional, federal, state, local or
otherwise), whether known or unknown, which Releasors ever had, now have or may have against the
Releasees by reason of any actual or alleged act, omission, transaction, practice, conduct,
occurrence, or other matter from the beginning of the world up to and including the Release
Effective Date, except for the obligations of the Company under this Agreement and subject to 5(f)
below.

(b) The Company forever releases and discharges Releasors from any and all claims, demands,
causes of action, fees and liabilities of any kind whatsoever (based upon any legal or equitable
theory, whether contractual, common-law, statutory, decisional, federal, state, local or
otherwise), whether known or unknown, which the Company ever had, now has or may have against the
Releasors by reason of any actual or alleged act, omission, transaction, practice, conduct,
occurrence, or other matter from the beginning of the world up to and including the Release
Effective Date except for Executive’s actions that constitute discriminatory practices or illegal
conduct and except for the obligations of Executive under this Agreement.

(c) Without limiting the generality of the foregoing subparagraph (a), this Agreement is
intended to and shall release the Releasees from any and all claims arising out of Executive’s
employment with Releasees and/or the termination of Executive’s employment, including but not
limited to any claim(s) under or arising out of (i) Title VII of the Civil Rights Act of 1964, as
amended; (ii) the Americans with Disabilities Act, as amended; (iii) the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”) (excluding claims for accrued, vested benefits under any
employee benefit plan of the Company in accordance with the terms of such plan and applicable law);
(iv) the Age Discrimination in Employment Act, as amended, or the Older Workers Benefit Protection
Act; (v) the New Jersey law Against Discrimination; (vi) the California Fair Employment Practices
and Housing Act; (vii) the Minnesota Human Rights Act; (viii) the Wisconsin Fair Employment
Practices Act; (ix) the Massachusetts Fair Employment Practices Act; (x) Section 806 of the
Sarbanes Oxley Act of 2002; (xi) alleged discrimination or retaliation in employment (whether based
on federal, state or
local law, statutory or decisional); (xii) the terms and conditions of Executive’s employment
with the Company, the termination of such employment, and/or any of the events relating directly or
indirectly to or surrounding that termination; and (xiii) any law (statutory or decisional)
providing for attorneys’ fees, costs, disbursements and/or the like.

 

 

 

(d) As a further consideration and inducement for this Agreement, to the extent permitted by
law, Executive hereby waives and releases any and all rights under Section 1542 of the California
Civil Code or any analogous state, local, or federal law, statute, rule, order or regulation that
Executive had or may have with respect to the Releasees. California Civil Code Section 1542 reads
as follows:

A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE
MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

Executive hereby expressly agrees that this Agreement shall extend and apply to all unknown,
unsuspected and unanticipated injuries and damages, as well as any that are now disclosed, arising
prior to Executive’s execution of this Agreement. This release does not extend to those rights,
which as a matter of law cannot be waived, including but not limited to unwaivable rights Executive
may have under the California Labor Code. Nothing in this Agreement shall limit Executive’s right
to file a charge or complaint with any state or federal agency or to participate or cooperate in
such a manner.

(e) Notwithstanding the foregoing, nothing in this Agreement shall be construed to prevent
Executive from filing a charge with or participating in an investigation conducted by any
governmental agency, including, without limitation, the United States Equal Employment Opportunity
Commission (“EEOC”) or applicable state or city fair employment practices agency, to the extent
required or permitted by law. Nevertheless, Executive understands and agrees that he is waiving
any relief available (including, for example, monetary damages or reinstatement), under any of the
claims and/or causes of action waived in Paragraphs 6(a) and (b), including but not limited to
financial benefit or monetary recovery from any lawsuit filed or settlement reached by the EEOC or
anyone else with respect to any claims released and waived in this Agreement.

(f) Nothing in this Agreement shall release Executive’s rights (i) as a stockholder of the
Company; (ii) to any claims that arise following the execution of this Agreement; (ii) to payment
of the Accrued Obligations (as defined in the Employment Agreement); (iii) to payment of the
severance payments and benefits described in Section 2 of this Agreement; (iv) to indemnification
pursuant to the Company’s bylaws as may be in effect from time to time and any other agreements
then in effect indemnifying Executive; (v) to any claims for accrued vested benefits or rights
under any other employee benefit plan, policy or arrangement (whether tax-qualified or not)
maintained by the Company; (vi) to equity awards that are vested or which may vest under any
equity, equity-based, profits interest, stock option, or similar plans, agreements, and/or notices
to the extent set forth in such awards or as otherwise
provided for in such documents, which awards shall be subject to all the terms and conditions
of such document.

 

 

 

6. (a) Executive agrees that he has not and will not engage in any conduct that is injurious
to the Company’s or the Releasees’ reputation or interest, including but not limited to publicly
disparaging (or inducing or encouraging others to publicly disparage) the Company or the Releasees.
The Board of Directors of the Company agrees that it has not and will not engage in any conduct
that is injurious to the Releasee’s reputation or interest, including but not limited to publicly
disparaging (or inducing or encouraging others to publicly disparage) Releasee. The foregoing
shall not be violated by truthful testimony, if provided pursuant to the terms of Section 7(b).

(b) Executive acknowledges that he has returned to the Company any and all originals and
copies of documents, materials, records, credit cards, keys, building passes, computers,
blackberries and other electronic devices or other items in his possession or control belonging to
the Company or containing proprietary information relating to the Company pursuant to Section 8(b)
of the Employment Agreement. Executive may retain the Executive’s rolodex and similar address
books, including in electronic form, provided, that such items only include contact information.

(c) Executive acknowledges that the terms of Section 8, Confidentiality Agreement and
Assignment of Intellectual Property, and Section 9, Non-Solicitation and Non-Competition, of the
Employment Agreement are incorporated herein by reference, and Executive agrees and acknowledges
that he is bound by its terms.

7. (a) Executive will cooperate with the Company and/or its subsidiaries and affiliates and
its/their counsel in connection with any investigation, administrative proceeding or litigation
relating to any matter in which Executive was involved or of which Executive has knowledge.

(b) Executive agrees that, in the event he is subpoenaed by any person or entity (including,
but not limited to, any government agency) to give testimony (in a deposition, court proceeding or
otherwise) that in any way relates to Executive’s employment with the Company, he will give prompt
notice of such request to the Chairman of the Board of Directors, and will make no disclosure until
the Company has had a reasonable opportunity to contest the right of the requesting person or
entity to such disclosure, provided that nothing herein shall prevent Executive from complying with
the requirements of the law.

8. Prior to public announcement, the terms and conditions of this Agreement are and shall be
deemed to be confidential, and shall not be disclosed by Executive to any person or entity without
the prior written consent of the Chairman of the Board of Directors, except if required by law, and
to Executive’s accountants, attorneys, and spouse, provided that they agree to maintain the
confidentiality of this Agreement. Executive further represents that he has not disclosed the
terms and conditions of this Agreement to anyone other than his attorneys, accountants and spouse.

 

 

 

9. The making of this Agreement is not intended, and shall not be construed, as an admission
that one party has violated any federal, state or local law (statutory or decisional), ordinance or
regulation, breached any contract, or committed any wrong whatsoever against the other party.

10. The parties agree that this Agreement may not be used as evidence in a subsequent
proceeding except in a proceeding to enforce the terms of this Agreement.

11. Executive acknowledges that: (a) he has carefully read this Agreement in its entirety; (b)
he has had an opportunity to consider fully the terms of this Agreement; (c) he has been advised by
the Company in writing to consult with an attorney of his choosing in connection with this
Agreement; (d) he fully understands the significance of all of the terms and conditions of this
Agreement and he has discussed it with his independent legal counsel, or has had a reasonable
opportunity to do so; (e) he has had answered to his satisfaction any questions he has asked with
regard to the meaning and significance of any of the provisions of this Agreement; and (f) he is
signing this Agreement voluntarily and of his own free will and assents to all the terms and
conditions contained herein.

12. This Agreement is binding upon, and shall inure to the benefit of, the parties and their
respective heirs, executors, administrators, successors and assigns.

13. If any provision of this Agreement shall be held by a court of competent jurisdiction to
be illegal, void, or unenforceable, such provision shall be of no force and effect. However, the
illegality or unenforceability of such provision shall have no effect upon, and shall not impair
the enforceability of, any other provision of this Agreement; provided, however, that, upon any
finding by a court of competent jurisdiction that the release and covenants provided for by Section
6 above is illegal, void, or unenforceable, Executive agrees to execute a release, waiver and/or
covenant that is legal and enforceable. Finally, any breach of the terms of Sections 7, 8 and/or 9
above shall constitute a material breach of this Agreement as to which the Company may seek
appropriate relief in a court of competent jurisdiction.

14. This Agreement shall be governed by, and construed and enforced in accordance with, the
laws of the State of New Jersey, without regard to the conflict of laws provisions thereof.
Actions to enforce the terms of this Agreement, or that relate to Executive’s employment with the
Company shall be submitted to the exclusive jurisdiction of any state or federal court sitting in
Burlington County, New Jersey.

15. This Agreement may be executed in counterparts, each of which shall be an original, with
the same effect as if the signatures thereto and hereto were upon the same instrument of this
Agreement.

16. This Agreement (including any exhibits attached hereto) constitutes the complete
understanding between the parties with respect to the termination of the Executive’s employment at
the Company and supersedes any and all agreements, understandings, and discussions, whether written
or oral, between the parties. No amendment of any provision of this Agreement shall be valid
unless the same shall be in writing and signed by each of the parties hereto.

[Signature page follows]

 

 

 

[Signature page to Agreement and Release]

	 	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	William Fejes
	 
	 	 	 	 	 	 	 	 
	SL INDUSTRIES, INC.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 	 	 

 

 

 

EXHIBIT C

Intellectual Property Prior to Employmentexv10w2

EXHIBIT 10.2

SL INDUSTRIES, INC.

520 Fellowship Road, Suite A114

Mt. Laurel, NJ 08054

June 29, 2010

To:    William Fejes

We are pleased to inform you that on June 29, 2010 the Compensation Committee (the
“Committee”) of SL Industries, Inc. (the “Company”) granted you (i) an incentive stock option (the
“Incentive Option”), as defined in Section 422 of the Internal Revenue Code of 1986, as amended
(the “Code”), to purchase 25,530 shares of the Company’s common stock, par value $0.20 per share,
and (ii) a non-qualified option (the “Nonqualified Option” and together with the Incentive Option,
the “Options”) to purchase 74,470 shares of the Company’s common stock, each at a price of $11.75
per share and otherwise in accordance with the Company’s 2008 Incentive Stock Plan (the “Plan”).
The shares of Common Stock issuable upon exercise of the Options are referred to hereinafter as the
“Stock.” Notwithstanding any provision to the contrary herein or in the Plan, upon the Executive’s
termination of Employment, the Option shall vest and remain exercisable in accordance the
Employment Agreement between the Executive and the Company dated as of June 29, 2010.

The Options will become exercisable as follows: (i) the Incentive Option: (a) as to 8,510
shares of Stock, on or after June 29, 2011; (b) as to a further 8,510 shares of Stock, on or after
June 29, 2012; and (c) as to the remaining 8,510 shares of Stock, on or after June 29, 2013; and
(ii) the Nonqualified Option: (a) as to 25,490 shares of Stock, on or after June 29, 2011; (b) as
to a further 24,490 shares of Stock, on or after June 29, 2012; and (c) as to the remaining 24,490
shares of Stock, on or after June 29, 2013, and that each such Option will expire on June 28, 2017.

These Options are issued in accordance with and, except as provided in the immediately
preceding paragraph, are subject to and conditioned upon all of the terms and conditions of the
Plan (a copy of which in its present form is attached hereto), as from time to time amended,
provided, however, that no future amendment or termination of the Plan shall, without your consent,
alter or impair any of your rights or obligations under the Options. Reference is made to the
terms and conditions of the Plan, all of which are incorporated by reference in this option
agreement as if fully set forth herein.

Notwithstanding any other provision in this option agreement or the Plan, no Option may be
exercised unless and until the Stock to be issued upon the exercise of the Option has been
registered under the Securities Act of 1933 (the “Securities Act”) and applicable state securities
laws, or are, in the opinion of counsel to the Company, exempt from such registration in the United
States. The Company shall not be under any obligation to register the Stock, although the Company
may in its sole discretion register the Stock at such time as the Company shall determine. If the
Company chooses to comply with an exemption from registration, the Stock may, at the direction of
the Committee, bear an appropriate restrictive legend restricting the transfer or pledge of the
Stock, and
the Committee may also give appropriate stop transfer instructions with respect to the Stock
to the Company’s transfer agent.

 

 

 

You understand and acknowledge that, under existing law, unless at the time of the exercise of
these Options a registration statement under the Securities Act is in effect as to the Stock (i)
any Stock purchased by you upon exercise of these Options may be required to be held indefinitely
unless the Stock is subsequently registered under the Securities Act or an exemption from such
registration is available; (ii) any sales of the Stock made in reliance upon Rule 144 promulgated
under the Securities Act may be made only in accordance with the terms and conditions of that rule
(which, under certain circumstances, restricts the number of shares which may be sold and the
manner in which shares may be sold); (iii) in the case of securities to which Rule 144 is not
applicable, some other exemption will be required; (iv) certificates for Stock to be issued to you
hereunder shall bear a legend to the effect that the Stock has not been registered under the
Securities Act and that the Stock may not be sold, hypothecated or otherwise transferred in the
absence of an effective registration statement under the Securities Act relating thereto or an
opinion of counsel satisfactory to the Company that such registration is not required; (v) the
Company may place an appropriate “stop transfer” order with its transfer agent with respect to the
Stock; and (vi) the Company has undertaken no obligation to register the Stock or to include the
Stock in any registration statement which may be filed by it subsequent to the issuance of the
Stock to you. In addition, you understand and acknowledge that the Company has no obligation to
you to furnish information necessary to enable you to make sales under Rule 144.

These Options (or installment thereof) are to be exercised by delivering to the Company a
written notice of exercise in the form attached hereto as Exhibit A, specifying the number
of shares of Stock to be purchased, together with payment of the purchase price of the Stock to be
purchased. The purchase price is to be paid in cash or, at the discretion of the Committee, by one
of the other means provided in the Plan and referenced on Exhibit A.

Kindly evidence your acceptance of these Options and your agreement to comply with the
provisions hereof and of the Plan by executing this option agreement under the words “Agreed To and
Accepted.”

	 	 	 	 	 
	 	Very truly yours,

SL INDUSTRIES, INC.

 	 
	 	By:  	/s/ Glen Kassan
 	 
	 	 	Name:  	Glen Kassan 	 
	 	 	Title:  	Chairman of the Board 	 

AGREED TO AND ACCEPTED:

	 	 	 	 	 
	 	/s/ William Fejes, Jr.
 	 
	 	William Fejes 	 

 

 

 

	 	 	 	 	 

Exhibit A

SL INDUSTRIES, INC.

520 Fellowship Road, Suite A114

Mt. Laurel, NJ 08054

Gentlemen:

Notice is hereby given of my election to purchase
 _____ 
shares of Common Stock, $0.20 par
value (the “Stock”), of SL Industries, Inc. (the “Company”), at a price of $11.75 per share,
pursuant to the provisions of the stock option granted to me on June 29, 2010 under the Company’s
2008 Incentive Stock Plan. Enclosed in payment for the Stock is:

	 	 	 	 	 	 	 
	 

	 	 	 	o	 	my check in the amount of $_____.
	 
	 	 	 	 	 	 
	 

	 	*
	 	o
	 	                     shares of Stock having a total value of $_____, such value based on the
Fair Market Value (as defined in the Plan) of the Stock.
	 
	 	 	 	 	 	 
	 

	 	*
	 	o
	 	the cancellation of
 _____ 
shares of Stock pursuant to the cashless
exercise provision of the Plan having a total value of $_____, such value
based on the Fair Market Value (as defined in the Plan) of the Stock.
	 
	 	 	 	 	 	 
	 

	 	*
	 	o
	 	a combination of the foregoing, as indicated above.

The following information is supplied for use in issuing and registering the Stock purchased
hereby:

	 	 	 	 	 	 	 
	 

	 	Number of Certificates
and Denominations	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Name	 	 	 	 
	 

	 	 	 	 

	 	 
	 

	 	Address	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 
	 

	 	 	 	 

	 	 
	 

	 	Social Security Number	 	 	 	 
	 

	 	 	 	 

	 	 

Dated:                     

	 	 	 
	 

	 	Very truly yours,
	 
	 	 
	 

	 	 

                    

* Subject to the approval of the Committee.

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