Document:

SYNALLOY CORPORATION, INC

SYNALLOY CORPORATION, INC.

1998 Long Term Incentive Stock Plan

 

	Purpose.  This 1998 Long Term Incentive Stock Plan (the "Plan") is intended to provide key executive employees of Synalloy Corporation (the "Company", which term shall include Synalloy Corporation and any of its affiliates or
subsidiaries) with the opportunity to participate in the Company's future prosperity and growth by purchasing stock of the Company.  The purpose of the Plan is to provide long-term incentive for gain through outstanding service to the Company and its
shareholders and to assist in attracting and retaining executives of ability and initiative.

	Administration.  The Plan shall be administered by the Compensation and Long Term Incentive Committee (the "Committee") which shall consist of three members of the Company's Board of Directors who are Non-Employee Directors.
 Members of the Committee are not eligible to participate in the Plan (or any other option or incentive plan of the Company) while serving on the Committee, nor shall they have been so eligible for the twelve (12) months immediately preceding such
appointment.  A Non-Employee Director shall mean a director who (1) is not currently an officer of the Company (as defined in 17 CFR § 240.16a-1(f)) or a parent or subsidiary of the Company, or otherwise currently employed by the Company or a parent
or subsidiary of the Company; (2) does not receive compensation, either directly or indirectly, from the Company or a parent or subsidiary of the Company, for services rendered as a consultant or in any capacity other than as a director, except for an
amount that does not exceed the dollar amount for which disclosure would be required pursuant to 17 CFR § 229.404(a); (3) does not possess an interest in any other transaction for which disclosure would be required pursuant to 17 CFR §
229.404(a); and (4) is not engaged in a business relationship for which disclosure would be required pursuant to 17 CFR § 229.404(b).

The Committee shall have complete authority and discretion to interpret all provisions of this Plan consistent with law, to prescribe the form of instruments evidencing the stock options granted under the Plan, to adopt, amend, and
rescind general and special rules and regulations for its administration, and to make all other determinations necessary or advisable for the administration of the Plan.  No member of the Committee shall be liable for any action or determination in
respect thereto, if made in good faith, and shall be entitled to indemnification by the Company with respect to all matters arising from his service on the Committee to the fullest extent allowable under applicable law.

	Eligibility.  Any salaried employee of the Company who in the judgment of the Committee occupies a management position in which his efforts contribute to the profit and growth of the Company may be granted one or more
options under the Plan.  The Committee will designate employees to whom options are to be granted and will specify the number of shares subject to each option.  The Committee shall have the discretion to determine to what extent, if any, persons employed
on a part-time or consulting basis will be eligible to participate in the Plan; provided however, that an employee who, immediately before an option is granted, owns more than 10% of the combined voting power of the Company, shall not be eligible for an
option grant.

4.Stock.  The stock to be subject to options under the Plan shall be shares of the Company's common stock of the par value of $1.00 per share (the "common stock"), and may be either authorized and unissued or held in the
treasury of the Company.  The total amount of stock on which options may be granted under the Plan shall not exceed 350,000 shares, subject to adjustment to reflect any change in the capitalization of the Company, as more fully provided in Section 10
hereof.  The Committee will maintain records showing the cumulative total of all shares subject to options outstanding under this Plan.

If any option is terminated, in whole or in part, for any reason other than the exercise thereof, the shares allocated to the option or portion thereof so terminated may be reallocated to another option or options to be granted under
this Plan.

5.Option Price.  The price per share for shares purchased upon the exercise of any option granted under the Plan will be one hundred percent (100%) of the fair market value per share of such shares on the date of grant of
the option.  Payment shall be made to the Company either (i) in cash or, at the discretion of the Committee; (ii) by delivery to the Company of shares of common stock owned by the option holder and having a fair market value on the date of exercise equal
to the fair market value of the shares covered by the option on the date of the grant of the option, or (iii) a combination of cash and the value of such shares mentioned in (ii) above.  As used in this Plan "fair market value" per share of the common
stock shall mean the average of the bid and ask prices at the closing of the common stock on the day before the date of the grant as reported on NASDAQ National Market System (or such other exchange or market on which such value is being determined) or,
if the Exchange shall be closed on that date, then on the last preceding date on which the Exchange was open for trading.  In determining fair market value, the Committee may rely upon sales information reported on the consolidated tape or other
consolidated reporting system and, in the absence of any sale or sales on the dates referred to in the preceding sentence, or a recognized market for the Company's common stock, the Committee may determine fair market value by whatever recognized method
it deems appropriate.

6.Grant of Options.  The Committee, at any time, during the duration of the Plan, may authorize the granting of options to employees of the Company eligible under Section 3 hereof, subject to the limitations provided herein.
 The date on which an option shall be granted shall be the date the Committee authorizes such grant or such later date as may be determined by the Committee at the time such grant is authorized.  Any employee may hold more than one option.

7.Exercise of Options.  Options granted under the Plan shall be exercisable only in the following manner; provided, however, that in no event shall an option be exercisable more than ten years of the date of grant as set
forth in paragraph 6 above.

	By an Employee During Continuous Employment.  The aggregate fair market value of the shares of the Company's common stock, as determined at the time of grant, as to which options are exercisable for the first time by an
employee during any calendar year shall not exceed $100,000.00.  Subject to this limitation, an employee may exercise any option during the applicable Exercise Periods in accordance with the following schedule:

	

Time from Grant Date

(Exercise Period)
	
Percentages of Options

Granted Which may be 

Exercisable in that Exercise

Period (including those

previously exercised)

	
Up to One Year
	
0%

	
One to Two Years
	
20%

	
Two to Three Years
	
40%

	
Three to Four Years
	
60%

	
Four to Five Years
	
80%

	
Five to Ten Years
	
100%

An employee may not exercise any part of an option granted under this Plan unless, at the time of such exercise, he has been in the continuous employment of the Company since the date the option was granted.  The Committee may decide
in each case to what extent leaves of absence for government or military service, illness, temporary disability, or other reasons shall not for this purpose be deemed interruptions of continuous employment.

	By a Former Employee.  No person may exercise an option after he ceases to be an employee of the Company unless he ceases to be an employee of the Company as a result of normal retirement, early retirement, or disability
retirement, either physical or mental, or on account of physical or mental disability.  In these instances, the option may be exercised by him, his attorney-in-fact, or his guardian, as appropriate, at any time after the date on which he ceased to be an
employee, but not later than the end of the fixed term of the option and no earlier (except in the event of a cessation of employment by reason of disability) than one year from the date the option was granted.

	In Case of Death.  If any employee or former employee who was granted an option dies, and at the time of death was entitled to exercise any option granted under this Plan, pursuant to Sub-Sections A and B above, the option
may be exercised within six (6) months after the death of the employee or former employee (but no later than the end of the fixed term of the option) by his estate, or by a person who acquired the right to exercise the option by bequest or inheritance.

	Sale or Merger.  Notwithstanding the limitation on the Exercise Period set forth in Section 7A above, (except as pertains to the $100,000 per year limitation), an employee may exercise all options then exercisable by him as
provided for in Section 7A above plus fifty percent (50%) of the options granted to him but which are not then exercisable because the requisite time from the date of grant has not lapsed in the event that either (i) all or substantially all of the assets
or common stock of the Company (or a subsidiary or division of the Company in which he is employed) is sold to an entity not affiliated with the Company, (ii) a merger or share exchange with an unaffiliated party occurs in which the Company is not the
surviving entity or (iii) a similar sale or exchange transaction occurs which in the Committee's sole discretion justifies such exercise right.

8.Method of Exercise.  Each option granted under the Plan shall be deemed exercised when the holder shall so notify the Company in writing, addressed to the Company's secretary, together with payment in full for the shares
for which the option is exercised, and tender of any related agreements or instruments, as required by the Committee, and shall comply with such other reasonable requirements as the Committee may establish pursuant to Section 12 of the Plan.  However,
this provision shall not preclude exercise of, or payment for, an option by any other proper method specifically approved by the Committee.  No person, estate, or other entity shall have or exercise any of the rights of a shareholder with reference to
shares subject to an option until a certificate or certificates for the shares has been duly issued and delivered.

An option granted under this Plan may be exercised for any lesser number of shares than the full amount for which it could be exercised.  Such a partial exercise of an option shall not affect the right to exercise the option from time
to time in accordance with the Plan for the remaining shares subject to the option.

9.Assignability.  Options granted under the Plan to an employee shall not be transferable by him except by will or the laws of descent and distribution.

10.Adjustment upon Change of Shares.  In the event of a reorganization, merger, consolidation, reclassification, recapitalization, combination or exchange of shares, stock split, stock dividend, rights offering or other
event affecting shares of the Company, the number and class of shares for which options may thereafter be granted, the number and class of shares then subject to options previously granted, and the price per share payable upon exercise of such options
shall be equitably adjusted by the Committee to reflect the change.

11.Compliance with Law and Approval of Regulatory Bodies.  No option shall be exercisable and no shares shall be delivered under the Plan except in compliance with all applicable Federal and state laws and regulations
including, without limitation, compliance with applicable withholding tax requirements and with the rules of all domestic stock exchanges on which the Company's shares may be listed.  Any share certificate issued to evidence shares may be listed on any
domestic stock exchange authorized by the Company.  Any share certificate issued to evidence shares for which an option is exercised may bear legends and statements, and be subject to such restrictions, as the Company shall deem advisable to assure
compliance with Federal and state laws and regulations.  No options shall be exercisable, and no shares will be delivered under the Plan, until the Company has obtained such consents or approvals from regulatory bodies, Federal or state, having
jurisdiction over such matters as the Company may deem advisable.

In the case of the exercise of an option by a person or estate acquiring the right to exercise the option by bequest or inheritance, the Committee may require reasonable evidence as to the ownership of the option and may require
consents and releases of taxing authorities that it may deem advisable.

12.General Provisions.  Neither the adoption of the Plan nor its operation, nor any document describing or referring to the Plan, or any part thereof, shall confer upon any employee any right to continue in the employ of the
Company or any subsidiary, or shall in any way affect the right and power of the Company to terminate the employment of any employee at any time with or without assigning a reason therefor to the same extent as the Company might have done if the Plan had
not been adopted.

13.Effective Date of the 1998 Plan.  This Plan was adopted by the Board of Directors of the Company effective March 5, 1998, which will be the effective date of the Plan if and when approved by shareholders holding a
majority of the Company's outstanding shares of common stock entitled to vote on the Plan at the Annual Meeting of Shareholders in 1998.

14.Amendment to the Plan.  The Board of Directors of the Company may alter, amend, or terminate the Plan from time to time.  Such action by the Board of Directors, however, will not be effective to change or modify the Plan,
unless approved by shareholders holding a majority of the Company's outstanding shares of common stock, if such changes or modifications in the Plan would:

	Increase the total number of shares of stock on which options may be granted under the Plan, except as contemplated in Section 10;

	Change the manner of determining the option price;

	Assign the administration of the Plan otherwise than to a committee of the Board of Directors;

	Permit any person while a member of the Committee or any other committee of the Board of Directors administering the Plan to be eligible to receive or hold an option under the Plan or permit a person who is not a key employee of
the Company at the time of grant to be granted an option; or

	Extend the term of this Plan.

15.Duration of the Plan.  Unless previously terminated by the Board of Directors, the Plan shall be effective for a period of ten years from the effective date of the Plan, and no option shall be granted after such date.
Options granted before that date shall remain valid thereafter in accordance with their terms.STATE OF SOUTH CAROLINA  )

RESTATED EMPLOYMENT AGREEMENT

This Restated Agreement, is effective the 1st day of January, 2001, by and between Synalloy Corporation, a corporation organized under the laws of the State of  South Carolina (the "'Corporation"'), and James G. Lane, Jr. a
resident of Greenville, South Carolina ( the "'Employee"').

W I T N E S S E T H:

WHEREAS,  the Corporation and the Employee are parties to that certain agreement dated September 24th, 1986, as amended from time to time, respecting the Employee's employment with the Corporation ( the "'Employment
Agreement"'); and

WHEREAS,  the parties desire to restate the terms of the Employment Agreement so the terms of the original employment agreement and all applicable previously adopted amendments thereto are reflected in one agreement; and

That in consideration of the agreements hereinafter contained, the parties hereto agree as follows:

	Employment.  The Corporation agrees to employ the Employee and the Employee agrees to serve the Corporation as Chief Executive Officer until December 31, 2001, and in such other capacity as the Board of Directors of the
Corporation ( the "'Board"') may designate from time to time.  The Corporation agrees that during the term hereof, it will not require the Employee to relocate his residence in order to perform his duties hereunder.

	Term.  During the term of his employment, the Employee shall devote his full time, attention, skill and efforts to the performance of his duties for the Corporation.

	Compensation.  The Corporation shall pay the Employee beginning January 1, 2001, and continuing during the term of his employment hereunder, a base salary of One Hundred Eighty Thousand and 00/100ths Dollars ($180,000.00)
per year together with compensation payable as provided in Paragraph 4 below, unless forfeited by the occurrence of any of the events of forfeiture specified in Paragraph 8 below.  Salary shall be payable quarterly.

	Bonus.  In addition to the base salary provided for in Paragraph 3 above, for each fiscal year beginning with the fiscal year ending December 31, 2001 and provided Employee is in the employ of the Corporation on the last day
of such fiscal year (except as provided in paragraphs 6 and 7 hereof), the Employee shall be entitled to a bonus equal to four percent (4%) of "'net earnings before income taxes"' in excess of ten percent (10%) of average shareholders' equity.

As used in this Agreement, the term "'net earnings before income taxes"' shall mean the net earnings from all continuing operations of the Corporation after allowances for parent company expenses (other than the bonus-compensation
payable under this Agreement).  Such net earnings before income taxes shall be determined and certified by the independent public accountants regularly retained by the Corporation, in accordance with sound accounting principles and consistent with the
past accounting practices of the Corporation (except as otherwise expressly provided for herein), within ninety (90) days after the end of its fiscal year (December 31), and the determination of such accountants (not only with respect to the amounts
involved, but also with respect to what constituted net earnings from operations) shall be final, binding and conclusive upon the parties hereto.  In making such determination, all gains or losses realized on the sale or other disposition of capital
assets shall be excluded.  The Corporation may at any time or times change or discontinue any or all of its present or future operations, or may close, sell or move any one or more of its plants, facilities or divisions, or may undertake any new or other
operations, or may take any and all other steps which the Board, in its exclusive judgment, shall deem advisable or desirable for the Corporation, and if any such action taken by the Corporation or its Board adversely affects net earnings after before
hereinabove defined, the Employee shall have no claim or recourse by reason of any such action.

	Vacations.  The Employee shall be entitled (each year) to a vacation of four (4) weeks, during which time his compensation shall be paid in full.  Said vacation may be taken by the Employee over a consecutive period or in
several non-consecutive periods, at the discretion of the Employee.

	Disability.  If because of illness, physical or mental disability, or other incapacity, certified by a physician acceptable to the Corporation, Employee shall fail to render the services provided for by this Agreement, or if
Employee contracts an illness or injury, certified by a physician acceptable to the Corporation, which will permanently prevent the performance by him of the services provided for by this Agreement, then the "'base salary"' provided for in Paragraph 3
hereof shall continue to the next anniversary date of the term of this Agreement, but in no event less than three (3) months, with the bonus-compensation for that fiscal year to be prorated to the date Employee's disability commenced; provided, however, should any such disability result from a pre-existing condition of Employee's health at October 1, 1986, then the Corporation, at its option, may terminate the period of employment under this Agreement by notice to
Employee, effective ninety (90) days after the giving of such notice, during which ninety-day notice period Employee's "'base salary"' shall continue, any bonus-compensation to which the Employee may be entitled under Paragraph 3 hereof to be prorated to
the date such ninety (90) day notice of termination is given Employee.

	Death.  If the Employee dies during the term of this Agreement, then the "'base salary"' provided for in Paragraph 3 hereof shall continue to the next anniversary date of the term of this Agreement, but in no event less than
three (3) months, which "'base salary"' shall be paid to the estate of Employee, with the bonus-compensation for that fiscal year to be prorated to the date of Employee's death; provided, however, should the death of Employee result from a pre-existing condition of his health at October 1, 1986, the Corporation may terminate this Agreement upon payment to the estate of Employee of three (3) months "'base salary"'
and that portion of the bonus-compensation prorated to the date of Employee's death.  In the event of Employee's death and the termination of this Agreement on the terms of this paragraph, all obligations of the Corporation under this Agreement shall
cease and terminate.

	Termination for Cause.  Nothing in this Agreement shall be construed to prevent the Corporation from terminating Employee's employment hereunder at any time (a) because of his fraud, dishonesty, gross negligence, willful
misconduct, misappropriation, embezzlement, excessive absences from work (except for reasons of health), or the like, or (b) if he shall have violated any provisions of this paragraph shall not constitute a breach of this Agreement by the Corporation.

	Covenant Not to Compete.  Employee agrees during the term of employment and for a period of two (2) years after his employment terminates, the Employee will not, without the prior written approval of the Board, become an
officer, employee, agent, partner, or director of any business enterprise in substantial, direct competition with the businesses of the Corporation or any subsidiary of the Corporation as they existed on the date his employment terminated and limited to
the States of South Carolina, Tennessee, and Alabama.  However, Employee shall not be prohibited from competing in the insurance and self-insurance industries.

	Severability.  The invalidity of unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision hereof.

	Arbitration.  Any controversy or claim arising out of, or relating to this Agreement, or the breach thereof, shall be settled by arbitration in the City of Spartanburg, State of South Carolina, in accordance with the rules
then obtaining of the American Arbitration Association, and judgment upon the award rendered may be entered in any Court having jurisdiction thereof.

	Notices.  Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if sent by registered or certified mail to his residence in the case of Employee, or to its Executive Offices
in the case of the Corporation.

	Benefit.  This Agreement, in accordance with its terms and conditions, shall inure to the benefit of and be binding upon the Corporation, its successors and assigns, including but not limited to any corporation which may
acquire all or substantially all of the Corporation's assets and business, or with or into which the Corporation may be consolidated or merged, and Employee, his heirs, executors, administrators, and legal representatives, provided that the obligations of
the Employee hereunder may not be delegated.  Employee agrees, however, that any such sale or merger shall not be deemed a termination hereunder provided that the Employee's operational duties are not substantially reduced as a result thereof.

	Situs.  This Agreement shall be construed in accordance with and governed by the laws of the State of South Carolina.

	Entire Agreement.  This instrument contains the entire agreement of the parties hereto.  It may not be changed orally, but only by an agreement in writing signed by the party against whom enforcement of any waiver, change,
modification, extension or discharge is sought.

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

	
WITNESSES
	
SYNALLOY CORPORATION

	 	 	 
	
                                      
      
	
By:
	
                                      
                       

	 	 	
Gregory M. Bowie

	
                                      
      
	
Its:
	
Vice President, Finance

	
As to Synalloy Corporation
	 	 
	 	 	
                                      
                       

	 	 	
James G. Lane, Jr.

	
                                      
      
	 	 
	
As to Synalloy Corporation

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