Document:

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                                                                    Exhibit 10.9

                           CHANGE-IN-CONTROL AGREEMENT

         AGREEMENT, made and entered into as of the first day of May, 2001 (the
"Effective Date"), by and between Teal Electronics Corporation, a California
corporation (the "Company"), and James C. Taylor (the "Employee").

         WHEREAS, the Employee is the President of the Company, a subsidiary of
SL Industries, Inc., a New Jersey corporation ("SL"); and

         WHEREAS, the Company desires to provide certain protection to the
Employee in the event of a change-in-control of the Company or SL in order to
induce the Employee to remain in the employ of the Company notwithstanding any
risks and uncertainties created by a potential change-in- control;

         NOW, THEREFORE, in consideration of the premises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, the Company and the Employee agree as follows:

1.       EFFECTIVENESS; TERM

         This Agreement shall become effective as of the date hereof and shall
terminate on the tenth anniversary of the date hereof, or on such other date as
the parties hereto mutually agree in writing.

2.       TERMINATION OF EMPLOYMENT FOLLOWING A CHANGE-IN-CONTROL

         (a)      If the Employee's employment is terminated by the Company or
its successor without Cause (as hereinafter defined), or the Employee terminates
his employment with the Company or its successor for Good Reason (as hereinafter
defined), and either termination occurs within one year following a
Change-in-Control (as hereinafter defined), or within one year following
execution by the Company of a definitive agreement contemplating a
Change-in-Control that occurs, whichever is later (the date of such termination
hereinafter the "Termination Date"), the Employee shall be entitled to receive a
Change-in-Control Payment (as hereinafter defined) with respect to such
termination.

         (b)      Notwithstanding the foregoing, the Employee shall not be
entitled to receive the Change-in-Control Payment if any of the Circumstances of
Ineligibility (as hereinafter defined) apply to the Employee.

         (c)      "Change-in-Control Payment" means the product of two times the
Employee's annual base salary in effect as of the Termination Date. In the case
of a termination of employment for Good Reason based on a reduction of the
Employee's annual base salary, the annual base salary shall be calculated as the
Employee's annual base salary in effect immediately prior to such reduction.

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         (d)      "Change-in-Control" means that any of the following has
occurred:

                  (i)      the stockholders of the Company approve (aa) the sale
                           of the Company; (bb) the sale of all or substantially
                           all of the assets of the Company; or (cc) a
                           consolidation or merger of the Company with another
                           corporation, the consummation of which would result
                           in the stockholders of the Company immediately before
                           the occurrence of the consolidation or merger owning,
                           in the aggregate, fifty percent (50%) or less of the
                           Voting Stock of the surviving entity; and such
                           transaction occurs;

                  (ii)     the stockholders of SL approve (aa) the sale of SL;
                           (bb) the sale of all or substantially all of the
                           assets of SL; or (cc) a consolidation or merger of SL
                           with another corporation, the consummation of which
                           would result in the stockholders of SL immediately
                           before the occurrence of the consolidation or merger
                           owning, in the aggregate, fifty percent (50%) or less
                           of the Voting Stock of the surviving entity; and such
                           transaction occurs;

                  (iii)    any person or other entity, including any person as
                           defined in Section 13(d)(3) of the Securities
                           Exchange Act of 1934 as amended (the "Exchange Act"),
                           becomes the beneficial owner, as defined in Rule
                           13d-3 under the Exchange Act, directly or indirectly,
                           of at least thirty percent (30%) or more of the total
                           combined voting power of all classes of capital stock
                           of SL entitled to vote for the election of directors
                           of SL (the "Voting Stock"); or

                  (iv)     a change in SL's Board of Directors occurs with the
                           result that the members of such Board on the
                           Effective Date (the "Incumbent Directors") no longer
                           constitute a majority of such Board, provided that
                           any person becoming a director (other than a director
                           whose initial assumption of office is in connection
                           with an actual or threatened election contest or the
                           settlement thereof, including but not limited to a
                           consent solicitation relating to the election of
                           directors of the Company) whose election or
                           nomination for election was supported by two-thirds
                           (2/3) of the then Incumbent Directors shall be
                           considered an Incumbent Director for purposes hereof.

         (e)      "Cause" means, and shall be subject to the procedures set
forth herein:

                  (i)      conviction of the Employee for (x) any crime
                           constituting a felony in the jurisdiction in which
                           committed, (y) any crime involving moral turpitude
                           (whether or not a felony) or (z) any criminal act
                           against the Company or any affiliate of the Company
                           involving dishonesty whether or not a felony;

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                  (ii)     substance abuse (including drunkenness) by the
                           Employee which is repeated after written notice from
                           the Company to the Employee identifying such abuse;

                  (iii)    the failure or the refusal of the Employee to follow
                           lawful and proper directives of the Board of
                           Directors or Chief Executive Officer of SL which is
                           not corrected within thirty (30) days after written
                           notice from such Board or Chief Executive Officer to
                           the Employee identifying such failure or refusal; or

                  (iv)     willful malfeasance or gross misconduct by the
                           Employee which may discredit or damage the Company or
                           any affiliate of the Company.

         (f)      "Good Reason" means the occurrence of any of the following
without the prior written consent of the Employee:

                  (i)      removal from the most senior position held by the
                           Employee with respect to the Company on the 181st day
                           prior to the Change-in-Control or any more senior
                           position that the Employee subsequently achieves (the
                           "Measuring Position");

                  (ii)     the assignment of duties or responsibilities
                           materially inconsistent with those customarily
                           associated with the Measuring Position, or any other
                           action by the Company or a successor that results in
                           a material diminution of the Employee's position,
                           authority, duties or responsibilities compared to the
                           Measuring Position, other than an isolated action
                           that is not taken in bad faith and is remedied by the
                           Company or a successor promptly after receipt of
                           written notice thereof from the Employee;

                  (iii)    a reduction in the Employee's annual base salary, any
                           portion of the Employee's target bonus, or any other
                           material benefit provided to the Employee by the
                           Company at the time of the Change-in-Control; or

                  (iv)     the involuntary relocation of the Employee's
                           principal place of employment to a location more than
                           thirty (30) miles from the Employee's principal place
                           of employment immediately prior to the
                           Change-in-Control, except for required travel on the
                           Company's business to an extent substantially
                           consistent with the Employee's business travel
                           obligations as of such date.

         (g)      "Circumstances of Ineligibility" means any one or more of the
following circumstances:

                  (i)      if the Employee's employment with the Company or its
                           successor is terminated due to death or disability
                           (defined as the inability or incapacity of the
                           Employee, due to any medically determined physical or
                           mental impairment, to perform the Employee's duties
                           and responsibilities for the Company for a total of
                           one hundred eighty (180) days);

                  (ii)     if the Employee elects to voluntarily terminate the
                           Employee's employment, including a termination due to
                           retirement, with the Company or its successor, unless
                           such termination by the Employee is for Good Reason;
                           or

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                  (iii)    if the Employee's employment with the Company or a
                           successor is terminated for Cause at any time
                           preceding or following a Change-in-Control.

3.       TIME OF PAYMENT OF CHANGE-IN-CONTROL PAYMENT

         (a)      Any Change-in-Control Payment to which the Employee is
entitled under Section 2 above shall be paid to the Employee in cash (subject to
appropriate withholding) in a lump sum. Such payment shall be made no later than
the effective date of the release of claims executed by the Employee pursuant to
Section 6(c) below, or the thirtieth day after the Termination Date, whichever
date is later.

         (b)      The Employee shall be paid interest, compounded daily, at the
prime lending rate as announced from time to time by PNC Bank or its successor
on all or any part of the Change-in-Control Payment that is not paid when due.

4.       CONTINUATION OF WELFARE BENEFITS

         Notwithstanding anything contained herein to the contrary, if the
Employee is entitled to receive the Change-in-Control Payment, the Company or
its successor shall continue to pay premiums on behalf of the Employee, as if
the Employee were still an employee of the Company, in the medical, dental,
hospitalization and life insurance programs and/or arrangements of the Company
or any of its subsidiaries in which the Employee was participating on the
Termination Date on the same terms and conditions as other employees under such
plans, programs and/or arrangements until the earlier of (i) the end of the
24-month period following the Termination Date or (ii) the date, or dates, the
Employee is entitled to receive substantially equivalent coverage and benefits
under the plans, programs and/or arrangements of a subsequent employer (such
coverage and benefits to be determined on a coverage-by-coverage or
benefit-by-benefit basis). The Employee shall be eligible to continue his
benefits through COBRA at his own expense, to the extent provided by law.

5.       NON-COMPETE AND NON-SOLICITATION

         (a)      In consideration of the Company entering into this Agreement
and providing the compensation and benefits to be provided by the Company to the
Employee, the Employee agrees that the Employee will not, from the Effective
Date until one year after the Termination Date, engage in any Competitive
Activity. For purposes of this Agreement, the term "Competitive Activity" shall
mean (i) serving as a director of any Competitor (as hereinafter defined); (ii)
directly or indirectly through one or more intermediaries, either (x)
controlling any Competitor or (y) owning any equity or debt interests in any
Competitor (other than equity or debt instruments that are public traded and, at
the time of any acquisition, when combined with other holdings, do not exceed
five percent (5%) of the particular class of interests outstanding) (it being
understood that, if interests in any Competitor are owned by an investment
vehicle or other entity in which the Employee owns an equity interest, a portion
of the interests in such Competitor owned by such entity shall be attributed to
the Employee, such portion determined by applying the percentage of the equity
interest in such entity); (iii) employment by (including serving as an officer
or partner of), providing consulting services to (including, without limitation,
as an independent contractor), or managing or operating the business or affairs
of, or being a lender to, any Competitor; or (iv) participating in the
ownership, management, operation or control of any Competitor. For purposes of
this Agreement, the term "Competitor" shall mean any person (other than the
Company or any majority-owned subsidiary of the Company) that engages in any
Business (as determined at the time of termination of employment) in the United
States in competition with the Company. For purposes of this Agreement, the term
"Business" shall mean the design, manufacture and

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marketing of power conditioning and distribution units.

         (b)      The Employee agrees that, if the Employee receives a
Change-in-Control Payment as set forth in Section 2 above, the Employee shall
not directly or indirectly through another entity (i) induce or attempt to
induce any employee of the Company or of any affiliate of the Company to leave
the employ of the Company or such affiliate, or in any way interfere with the
relationship between the Company and such affiliate and any employee thereof, or
(ii) induce or attempt to induce any customer, supplier, licensee, licensor,
franchisee or other business relation of the Company (or any affiliate of the
Company) to cease doing business with the Company (or any affiliate of the
Company), or in any way interfere with the relationship between such customer,
supplier, licensee or business relation of the Company (or any affiliate of the
Company). For purposes of this Agreement, a customer, supplier, licensee,
licensor, franchisee or business relation means any person or entity which at
the time of determination is, or has been within one (1) year prior to such
time, a customer, supplier, licensee, licensor, franchisee or other business
relation of the Company (or any affiliate of the Company).

         (c)      In the event of a Change-in-Control Payment, the Company may
value the non-competition and non-solicitation covenants and allocate the
Payment accordingly.

         (d)      The Employee agrees that any violation of this Agreement will
cause immediate and irreparable harm to the Company, the amount of which will be
impossible to estimate or determine. The Employee further agrees that the
Company shall have the right to equitable relief by injunction or otherwise
(without the necessity of posting bond or other security) and the Employee
hereby knowingly waives the claim or defense that the Company has an adequate
remedy at law. The rights and remedies of the Company under this Agreement are
cumulative and are in addition to all other rights and remedies the Company may
have under any local, state or federal law, rule or regulation or otherwise. It
shall not be a defense to the Company's enforcement of this Agreement that the
Company did breach or may have breached this Agreement or any other agreement
with the Employee, any such defense to the Company's enforcement of this
Agreement being hereby waived.

6.       MISCELLANEOUS

         (a)      NO EMPLOYMENT AGREEMENT. This Agreement does not constitute a
contract of employment or impose on the Company any obligation to retain the
Employee as an employee.

         (b)      DEDUCTIONS AND WITHHOLDING. The Employee agrees that the
Company shall withhold from any and all compensation required to be paid to the
Employee pursuant to this Agreement all federal, state, local and/or other taxes
which the Company determines are required to be withheld in accordance with
applicable statutes and regulations from time to time in effect.

         (c)      WAIVER AND RELEASE. The Employee acknowledges that (i) this
Agreement provides benefits greater than the benefits that the Employee would
otherwise be entitled to receive under any employment or severance agreement,
plan, program or arrangement of the Company or between the Company and the
Employee, and (ii) the Company has no obligation to enter into this Agreement.
In consideration of the Company assuming these additional obligations and
entering into this Agreement, the Employee agrees to execute a release of all
claims related to the Employee's employment or termination thereof prior to
payment of the Change-in-Control Payment. Such release will become effective on
the eighth day after it has been executed by the Employee, unless it has been
revoked beforehand.

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         (d)      ARBITRATION. Except for enforcement of the Employee's
covenants under Section 5, any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration
conducted in San Diego, California under the Commercial Arbitration Rules then
prevailing of the American Arbitration Association and such submission shall
request the American Arbitration Association to: (i) appoint an arbitrator
experienced and knowledgeable concerning the matter then in dispute; (ii)
require the testimony to be transcribed; (iii) require the award to be
accompanied by findings of fact and a statement of reasons for the decision; and
(iv) request the matter to be handled by and in accordance with the expedited
procedures provided for in the Commercial Arbitration Rules. The determination
of the arbitrators, which shall be based upon a de novo interpretation of this
Agreement, shall be final and binding and judgment may be entered on the
arbitrators' award in any court having jurisdiction. All costs of the American
Arbitration Association and the arbitrator shall be borne by the Company, unless
the position advanced by the Employee is determined by the arbitrator to be
frivolous in nature.

         (e)      LEGAL FEES. Except for legal fees the Employee incurs in
defending Company's enforcement of the Employee's covenants under Section 5, the
Company or its successor shall pay to the Employee all reasonable legal fees and
expenses incurred by the Employee in disputing in good faith any issues
hereunder relating to the termination of the Employee's employment, or in
seeking in good faith to obtain or enforce any benefit or right provided by this
Agreement. Such payments shall be made within 30 days after delivery of the
Employee's written request for payment accompanied with such evidence of fees
and expenses incurred as the Company reasonably may require.

         (f)      NO DUTY TO MITIGATE/SET-OFF. The Company agrees that in order
for the Employee to receive payments or benefits under this Agreement, the
Employee shall not be required to seek other employment. Further, the amount of
any such payment or benefit shall not be reduced by any compensation earned by
the Employee or any benefit provided to the Employee as the result of employment
by another employer or otherwise, except as provided in Section 4 or 6(g)
hereof. The Company's obligations to make any payment or provide any benefit
under this Agreement shall not be affected by any circumstances, including,
without limitation, any set-off, counterclaim, recoupment, defense or other
right which the Company or a successor may have against the Employee.

         (g)      OFFSET. The Change-in-Control Payment shall be reduced by any
severance cash payment made by the Company or any subsidiary of the Company to
the Employee pursuant to (i) any severance plan, program, policy or arrangement
of the Company or any subsidiary of the Company, (ii) any employment or
consulting agreement between the Company or any subsidiary of the Company and
the Employee, and (iii) any federal, state or local statute, rule, regulation or
ordinance.

         (h)      ENTIRE AGREEMENT. This Agreement embodies the entire agreement
of the parties with respect to any payment and benefit which may become due or
owing to the Employee in the event of a termination in connection with a
Change-in-Control and supersedes any other prior oral or written agreements
between the Employee and the Company with respect thereto, including the
provision captioned "CHANGE IN CONTROL" in the letter agreement dated December
16, 1999, between the Employee and the Company. To the extent that any payment
or benefit conferred upon the Employee herein are invalidated or rendered
unenforceable by a court of competent jurisdiction, the payment or benefit
provided in such other agreements shall remain in full force and effect.

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         (i)      OTHER AGREEMENTS. Except as provided in paragraph (h) above,
nothing in this Agreement shall affect or modify (i) any obligations the
Employee has under any agreement with the Company with respect to confidential
information, assignment of inventions and discoveries, non-solicitation of
employees and/or customers, non-competition, or otherwise or (ii) any payments
or benefits the Employee may be entitled to receive under any agreement with
respect to severance payments, the acceleration of options or other Stock
Awards, or otherwise, and all such agreements shall remain in full force and
effect.

         (j)      AMENDMENTS. No party may amend, modify or terminate this
Agreement without the express written consent of the other party.

         (k)      BINDING AGREEMENT. This Agreement shall be binding upon the
Company and its successors and assigns and shall inure to the benefit of and be
enforceable by the Employee's personal or legal representatives, executors,
administrators, heirs, distributees, devises and legatees and the Company's
successors and assigns.

         (l)      LEGAL ADVICE. The Employee acknowledges that (i) he has been
strongly encouraged by the Company to review this Agreement with his personal
attorney and has either done so or has knowingly and voluntarily waived his
right to do so and (ii) he understands all of the terms and conditions of this
Agreement and agrees to be bound by its terms and conditions.

         (m)      GOVERNING LAW; VENUE AND JURISDICTION. This Agreement shall be
governed and construed in accordance with the laws of the State of California
without reference to conflict of laws principles. The Employee does hereby
irrevocably consent that any legal action or proceeding arising out of or in any
manner relating to this Agreement, or any other document delivered in connection
herewith, shall be brought exclusively in any state court in San Diego County,
or in any federal court in the Southern District of California. The Employee
further irrevocably consents to the service of any complaint, summons, notice or
other process relating to any such action or proceeding by delivery thereof to
the Employee by hand or by any other manner provided for below. The Employee
hereby expressly and irrevocably waives any claim or defense in any such action
or proceeding based on any alleged lack of personal jurisdiction, improper venue
or forum non conveniens or any similar basis.

         (n)      NOTICES. All notices required or permitted by this Agreement
shall be in writing and shall be given by personal delivery or sent by
registered or certified mail, postage prepaid, return receipt requested, or by
reputable overnight courier, prepaid, receipt acknowledged, to the following
addresses:

                                    If to the Company:

                                    Teal Electronics Corporation
                                    10350 Sorrento Valley Road
                                    San Diego, CA 92121

                                    Attention: James C. Taylor
                                               President

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                                    With a copy to:

                                    SL Industries, Inc.
                                    520 Fellowship Road, Suite A-114
                                    Mt. Laurel, NJ  08054

                                    Attention: Owen Farren
                                               President and CEO

                                    If to the Employee:

                                    James C. Taylor
                                    5549 Havenridge Way
                                    San Diego, CA 92130

         (o)      COUNTERPARTS. This Agreement may be executed and delivered in
separate counterparts, each of which when so executed and delivered shall be
deemed an original and all of which taken together shall constitute one and the
same agreement. Delivery of an executed counterpart of the signature page to
this Agreement by facsimile transmission shall be effective as manual delivery
of an executed counterpart. Any party so delivering this Agreement by facsimile
transmission shall promptly manually deliver an executed counterpart, provided
that any failure to do so shall not affect the validity of the counterpart
delivered by facsimile transmission.

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the date first written above.

                                    TEAL ELECTRONICS CORPORATION

                                    __________________________________
                                    By:     James C. Taylor
                                            President

                                    __________________________________
                                            JAMES C. TAYLOR

                                      F-47<PAGE>

                                                                   Exhibit 10.10

                                    AGREEMENT

THIS AGREEMENT (the "Agreement") is made and entered into as of August 5, 2002,
by and between SL INDUSTRIES, INC., a New Jersey corporation (the "Company"),
with principal offices located at 520 Fellowship Road, Suite A-114, Mount
Laurel, New Jersey 08054, and JAMES C. TAYLOR (the "Executive"), an individual
with a residence at 21 Millneck Lane, Pittsford, New York 14534.

                              W I T N E S S E T H:

WHEREAS, the Executive is the Chief Executive Officer of the SL Industries Power
Electronics Group and President and Chief Executive Officer of Teal Electronics,
Inc.; and

WHEREAS, the Company wishes to retain and encourage the productive efforts of
the Executive who renders valuable service to the Company and its subsidiaries,
and contributes toward the Company's continued growth and success.

NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein set forth and for other good and valuable consideration, the parties
hereto agree as follows:

Bonus. The Executive shall be paid a Bonus in the amount specified herein. The
Bonus shall be paid upon the earlier to occur of (i) the occurrence of a Change
of Control or (ii) the delivery of the Notice pursuant to Section 6 hereof, in
accordance with the terms herein. The Bonus described herein is separate and
distinct from any other bonus program the Executive may participate in or be
entitled to.

Payment of Bonus. (a) Upon the occurrence of a Change of Control, the Change of
Control Bonus Amount shall be paid by the Company to the Executive within ten
(10) business days following such Change of Control. Upon such occurrence,
Executive's right to receive the First Bonus Amount and the Second Bonus Amount
shall terminate.

To trigger the payment of the First Bonus Amount or the Second Bonus Amount, the
Executive shall deliver to the Company a Notice which shall state whether the
Bonus Amount to be paid is the First Bonus Amount or the Second Bonus Amount.
Upon the Company's receipt of the Notice pursuant to Section 6 hereof, the
Company shall make the Bonus Payment to the Executive within twenty (20)
business days following the Company's receipt of the Notice. Following February
5, 2004, a combined Notice with respect to the First Bonus Amount and the Second
Bonus Amount may be sent to the extent a Notice has not previously been sent
with respect to either such Bonus Amount. No Notice shall be delivered until
such time as the Bonus Amount referenced therein is due and payable.

In no event shall the Company make a Bonus Payment in excess of the respective
Bonus Amount or a Bonus Amount which has been terminated. The First Bonus Amount
shall not be earned or payable prior to August 5, 2003 and the Second Bonus
Amount shall not be earned or payable prior to February 5, 2004.

Any determination with respect to the amount or exercisability of the First
Bonus Amount, the Second Bonus Amount and the Change of Control Bonus Amount
shall be made by the Company, whose

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determination shall be binding absent manifest error.

Termination. (a) Upon the occurrence of a Change of Control, the Executive shall
have no further right to deliver a Notice to the Company with respect to the
First Bonus Amount or the Second Bonus Amount and the Company shall have no
further obligation to the Executive other than the Bonus to be paid to the
Executive pursuant to Section 2(a) hereof with respect to the Change of Control
Bonus Amount.

Upon delivery of a Notice to the Company with respect to the First Bonus Amount
or the Second Bonus Amount, the Executive shall have no further right to deliver
a notice to the Company with respect to such Bonus Amount and the Company shall
have no further obligation to the Executive with respect to such Bonus Amount
other than the Bonus Payment to be paid to the Executive pursuant to Section
2(b) hereof with respect to such Bonus Amount.

Upon the termination of the Executive's employment with the Company for any
reason, the Executive shall have no further right to receive a Bonus Payment,
whether upon the occurrence of a Change of Control or the delivery of a Notice
to the Company; provided, however, that (i) to the extent a Change of Control
has occurred prior to such termination (if such termination was without Cause
(as defined below)), then such Change of Control Bonus Payment due to the
Executive pursuant to Section 2 hereof shall be made pursuant to the terms of
Section 2 hereof or (ii) to the extent a Notice is permitted to be delivered
pursuant to Section 2(b) hereof prior to such termination, then a Notice shall
be permitted to be delivered for 30 days following the date of termination (if
such termination was without Cause), and upon delivery of a Notice as provided
herein, if a Bonus Payment is due to the Executive pursuant to Section 2 hereof,
then such Bonus Payment shall be made pursuant to the terms of Section 2 hereof.

In the event of Executive's death during the term of this Agreement, to the
extent a Notice was permitted to be delivered immediately prior to the date of
death pursuant to Section 2(b) hereof, then such Notice shall be deemed to be
delivered as of the date of Executive's death and if a Bonus Payment is due
pursuant to Section 2 hereof, then such Bonus Payment shall be made pursuant to
the terms of Section 2 hereof to the Executive's estate.

In the event Executive shall have undertaken any conduct of the type described
in the definition of the Cause, irrespective of whether Executive shall be
terminated for Cause, then no Bonus shall be due to the Executive hereunder and
this Agreement shall terminate and be of no further force and effect.

Definitions. All capitalized terms used herein shall have the meanings set forth
below.

         (a)      "Base Price" shall mean $5.45.

         (b)      "Bonus" shall mean all compensation paid to the Executive
                  pursuant to the terms of this Agreement in an amount equal to
                  the Bonus Amount.

         (c)      "Bonus Amount" shall mean the following: (i) following August
                  5, 2003, 33,333 multiplied by the amount by which the Stock
                  Price exceeds the Base Price (the "First Bonus Amount"), (ii)
                  following February 5, 2004, 66,667 multiplied by the amount by
                  which the Stock Price exceeds the Base Price (the "Second
                  Bonus Amount"), and (iii) following the occurrence of a Change
                  of Control, 100,000 multiplied by the amount by which the
                  Stock Price exceeds the Base Price (the "Change of Control
                  Bonus Amount").

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<PAGE>

                  Notwithstanding the foregoing, (a) upon the occurrence of
                  Change of Control, the First Bonus Amount and the Second Bonus
                  Amount shall terminate, and (b) in the event a Notice or
                  Notices have been delivered with respect to the First Bonus
                  Amount and the Second Bonus Amount prior to the occurrence of
                  a Change of Control, the Change of Control Bonus Amount shall
                  terminate. Further, in the event a Notice has been delivered
                  with respect to either the First Bonus Amount or the Second
                  Bonus Amount prior to the occurrence of a Change of Control,
                  then the Change of Control Bonus Amount shall mean either
                  66,667 or 33,333, respectively, multiplied by the amount by
                  which the Stock Price exceeds the Base Price.

         (d)      "Bonus Payment" shall mean each payment of the Bonus that is
                  triggered by delivery of the Notice pursuant to this
                  Agreement.

         (e)      "Cause" shall mean (a) any action by Executive which
                  constitutes dishonesty relating to the Company, a willful
                  violation of law (other than traffic offenses and similar
                  minor offenses) or fraud; (b) Executive is charged by
                  indictment for, is convicted of or pleads guilty to a felony
                  or other crime; (c) misappropriation of the Company's funds or
                  assets by Executive; (d) willful misconduct by Executive
                  relating to the Company, including, without limitation,
                  willful failure to perform stated duties, (e) the continual or
                  frequent possession by Executive of an illegal substance or
                  abuse by Executive of a controlled substance or alcohol
                  resulting in a pattern of behavior disruptive to the business
                  operations of the Company (f) failure by Executive to perform
                  Executive's duties and responsibilities to the Company in a
                  competent manner; (g) any material violation by Executive of
                  any of the Company's policies and procedures, including
                  covenants related to confidentiality, and (h) any other
                  willful misconduct which materially injures the Company.

         (f)      "Change in Control" shall be deemed to have occurred if:

                  (i) a tender offer (or series of related offers) shall be made
                  and consummated for the ownership of 50% or more of the
                  outstanding voting securities of the Company, unless as a
                  result of such tender offer more than 50% of the outstanding
                  voting securities of the surviving or resulting corporation
                  shall be owned in the aggregate by the shareholders of the
                  Company (as of the time immediately prior to the commencement
                  of such offer), any employee benefit plan of the Company or
                  its subsidiaries, and their affiliates;

                  (ii) the Company shall be merged or consolidated with another
                  corporation, unless as a result of such merger or
                  consolidation more than 50% of the outstanding voting
                  securities of the surviving or resulting corporation shall be
                  owned in the aggregate by the shareholders of the Company (as
                  of the time immediately prior to such transaction), any
                  employee benefit plan of the Company or its subsidiaries, and
                  their affiliates;

                  (iii) the Company shall sell substantially all of its assets
                  to another corporation that is not wholly owned by the
                  Company, unless as a result of such sale more than 50% of such
                  assets shall be owned in the aggregate by the shareholders of
                  the Company (as of the time immediately prior to such
                  transaction), any employee benefit plan of the Company or its
                  Subsidiaries and their affiliates; provided, however, that so
                  long as the Company shall retain either its Condor D.C. Power
                  Supplies, Inc. ("Condor") or Teal Electronics

                                      F-50
<PAGE>

                  Corporation division, whether in their existing corporate form
                  or otherwise, no Change of Control shall be deemed to have
                  occurred;

                  (iv) a Person (as defined below) shall acquire 50% or more of
                  the outstanding voting securities of the Company (whether
                  directly, indirectly, beneficially or of record), unless as a
                  result of such acquisition more than 50% of the outstanding
                  voting securities of the surviving or resulting corporation
                  shall be owned in the aggregate by the shareholders of the
                  Company (as of the time immediately prior to the first
                  acquisition of such securities by such Person), any employee
                  benefit plan of the Company or its subsidiaries, and their
                  affiliates; or

                  (v) the Company shall sell its Condor division to a Person
                  that is not wholly-owned by the Company, unless as a result of
                  such sale more than 50% of the Condor division shall be owned
                  in the aggregate by the shareholders of the Company (as of the
                  time immediately prior to such transaction), any employee
                  benefit plan of the Company or its subsidiaries and their
                  affiliates.

                  For purposes of this definition, ownership of voting
                  securities shall take into account and shall include ownership
                  as determined by applying the provisions of Rule
                  13d-3(d)(I)(i) (as in effect on the date hereof) under the
                  Securities Exchange Act of 1934, as amended (the "Exchange
                  Act"). In addition, for such purposes, "Person" shall have the
                  meaning given in Section 3(a)(9) of the Exchange Act, as
                  modified and used in Sections 13(d) and 14(d) thereof;
                  however, a Person shall not include (A) the Company or any of
                  its Subsidiaries; (B) a trustee or other fiduciary holding
                  securities under an employee benefit plan of the Company or
                  any of its Subsidiaries; (C) an underwriter temporarily
                  holding securities pursuant to an offering of such securities;
                  or (D) a corporation owned, directly or indirectly, by the
                  shareholders of the Company in substantially the same
                  proportion as their ownership of stock of the Company.
                  Notwithstanding the foregoing, a Change of Control shall not
                  be deemed to have occurred as a result of any acquisition of
                  securities of the Company by any Person arising out of,
                  relating to or as a result of a rights or similar offering by
                  the Company to its stockholders.

         (g)      "Common Stock" shall mean the Company's common stock, par
                  value $.20 per share.

         (h)      "Notice" shall mean the notice attached hereto as Exhibit A.

         (i)      "Stock Price" shall mean the average of the closing price of
                  the Common Stock on the five trading days commencing (i) on
                  the day following the day a Change of Control occurs or (ii)
                  on the day preceding the day the Company receives the Notice,
                  as applicable, on the principal securities exchange on which
                  shares of Common Stock are listed (if the shares of Common
                  Stock are so listed), or on the NASDAQ Stock Market (if the
                  shares of Common Stock are regularly quoted on the NASDAQ
                  Stock Market), or, if not so listed or regularly quoted, the
                  mean between the closing bid and asked prices of publicly
                  traded shares of Common Stock in the over-the-counter market,
                  or, if such bid and asked prices shall not be available, as
                  reported by any nationally recognized quotation service
                  selected by the Corporation, or as determined by the Board of
                  Directors of the Company.

                                      F-51
<PAGE>

Bonus Replacement. At the Company's sole option and discretion, it may deliver
options to purchase shares of the Company's common stock, or similar securities,
in an amount and with such terms and conditions as to provide Executive with the
substantially equivalent economic value as Executive would receive under the
terms and provisions of this Agreement (the "Replacement Securities"). Upon the
delivery to the Executive of the Replacement Securities, this Agreement shall
terminate and be of no further force and effect.

No Employment Rights. Nothing herein shall constitute a contract of continuing
employment or in any manner obligate the Company to continue the service of the
Executive or obligate the Executive to continue in the service of the Company,
and nothing herein shall be construed as fixing or regulating the compensation
paid to the Executive.

Notices. All notices, consents, waivers and other communication under this
Agreement must be in writing and will be deemed to have been duly given (a) when
delivered by hand (with written confirmation of receipt), (b) when sent by
telecopier (with written confirmation of receipt) and sent by nationally
recognized overnight mail within 24 hours thereafter, or (c) one day following
being sent by a nationally recognized overnight delivery service (receipt
requested), in each case to the appropriate addresses as set forth at the
beginning of this Agreement.

Capital Change of the Company. In the event of any merger, reorganization,
consolidation, recapitalization, stock split, stock dividend, or other change in
corporate structure affecting the Common Stock, the Board of Directors of the
Company shall make an appropriate and equitable adjustment in the formula of the
Bonus Amount, to the end that after such event the Executive's approximate Bonus
Payment shall be maintained as immediately before the occurrence of such event.

Counterparts. This Agreement may be executed in one or more counterparts, each
of which shall be deemed to be a duplicate original, but all of which, taken
together, shall be deemed to constitute a single instrument.

Binding Effect; Benefits. This Agreement shall inure to the benefit of, and be
binding upon, the parties to it and their respective successors and permitted
assigns. Nothing contained in this Agreement, express or implied, is intended to
confer upon any person other than the parties to it and their respective
successors and permitted assigns, any rights or remedies under or by reason of
this Agreement.

Assignments. This Agreement may not be assigned by any party without the prior
written consent of the other party; provided, however, the Company may assign
this Agreement and all of its rights and obligations under this Agreement to any
person, firm or corporation succeeding to all or a substantial portion of the
business of the Company or any of its subsidiaries, provided said person, firm
or corporation shall assume (by contract or operation of law) the Company's
obligations under this Agreement, at which point the Company shall be relieved
of its obligations hereunder.

Captions. The captions contained in this Agreement are included only for
convenience of reference and do not define, limit, explain or modify this
Agreement or its interpretation, construction or meaning and are in no way to be
construed as a part of this Agreement.

Amendments. Any provision of this Agreement may be amended or waived if, and
only if, such amendment or waiver is in writing and signed, in the case of an
amendment, by all parties hereto, or in the case of a waiver, by the party
against whom the waiver is to be effective.

                                      F-52
<PAGE>

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

Severability. Except as otherwise provided to the contrary herein, each section,
paragraph, part, term and/or provision of this Agreement shall be considered
severable, and if, for any reason, any section, paragraph, part, term and/or
provision herein is determined to be invalid or contrary to, or in conflict
with, any existing or future law or regulation of a court or agency having valid
jurisdiction, such invalidity or conflict shall not impair the operation of, or
otherwise effect, the other sections, paragraphs, parts, terms and/or provisions
of this Agreement as may remain otherwise intelligible, and the latter will
continue to be given full force and effect and bind the parties hereto.

Applicable Law. Jurisdiction over disputes with regard to this Agreement shall
be exclusively in the courts of the State of New York, and this Agreement shall
be construed in accordance with and governed by the laws of the State of New
York.

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

                               SL INDUSTRIES, INC.

                               ______________________________________
                               Name:
                               Title:

                               ______________________________________
                               JAMES C. TAYLOR

                                      F-53
<PAGE>

                                    EXHIBIT A

[Date]

SL Industries, Inc.
520 Fellowship Road, Suite A-114
Mount Laurel, New Jersey 08054

Attn: Corporate Secretary

Dear Sir:

Reference is made to that certain Agreement dated as of September ___, 2002 by
and between SL Industries, Inc. (the "Company") and James C. Taylor (the
"Executive"). Capitalized terms used herein are used as defined in such
Agreement.

By this Notice, I hereby elect to receive the Bonus Payment with respect to the
[First/Second] Bonus Amount. Delivery of the Bonus Payment should be sent to my
address set forth below.

Please contact me if you require any additional information.

                                    Sincerely yours,
                                    _______________________________
                                     James C. Taylor

                                     Address:

                                    _______________________________

                                    _______________________________

                                    _______________________________

                                      F-54

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