Document:

sec document

                                                                    Exhibit 10.7

                              EMPLOYMENT AGREEMENT

     THIS AGREEMENT, dated and effective as of February 6, 2006, is entered into
by and among WHX CORPORATION ("WHX"), a corporation organized under the laws of
the State of Delaware, HANDY & HARMAN ("H&H"), a corporation organized under the
laws of the State of New York, each with principal offices located at 555
Theodore Fremd Avenue, Rye, New York 10580 (collectively, the "Companies"), and
ELLEN HARMON (the "Executive"), an individual with a residence at 16 Hillandale
Road, Rye Brook, New York 10573.

     NOW, THEREFORE, in consideration of the promises and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

     1.   EMPLOYMENT; TERM.

          (a) Executive's employment with each of the Companies shall begin as
of the date of this Agreement (the "Effective Date") pursuant to the terms and
conditions contained herein. The Executive shall hold the office of Vice
President, Secretary and General Counsel of each of the Companies. The Executive
shall perform all the duties consistent with these positions as set forth in
each of the Companies' By-Laws, as well as any other duties commensurate with
the Executive's positions that are assigned to the Executive from time to time
by the respective Board of Directors of each of the Companies (the "Boards").

     The Executive shall devote her full working time, attention and energies to
the business of each of the Companies and shall not, during the term of this
Agreement, be engaged in any other business activity, whether or not such
business activity is pursued for gain, profit or other pecuniary advantage;
however, this shall not be construed as preventing the Executive from investing
her personal assets in any business or venture which does not compete, directly
or indirectly, with either of the Companies in any manner, in such form or

manner as will not require any services on the part of the Executive in the
operation of the affairs of the entities in which such investments are made and
in which the Executive's participation is solely that of an investor, and the
Executive may purchase securities in any corporation for which securities are
regularly traded, provided, that such purchase shall not result in the Executive
beneficially owning at any one time one percent (1%) or more of the equity
securities of any corporation engaged in a business directly competitive with
either of the Companies.

          (b) The term of this Agreement shall commence on the date hereof and
shall continue in full force and effect until the first anniversary of the
Effective Date, at which time, and on each anniversary of the Effective Date
thereafter, the term of this Agreement shall be extended for a one (1) year
period until the next anniversary thereafter (such period, as it may be extended
from time to time, the "Term"), unless one party hereto shall provide notice of
termination to the other party hereto no less than thirty (30) days prior to
such anniversary or on such earlier date as this Agreement is terminated in
accordance with the provisions set forth below.

     2.   COMPENSATION. Subject to the terms and conditions of this Agreement,
the Companies shall collectively pay to the Executive, as aggregate compensation
for the duties to be performed by the Executive under this Agreement, the
following:

          (a) A base salary of $260,000 per annum, to be paid in equal
installments no less frequently than monthly.

          (b) The Executive shall also be entitled to such annual bonus, if any,
as the Board or the Compensation Committee of WHX, in its sole and absolute
discretion, shall determine, in accordance with the terms of any bonus plan of
each of the Companies applicable to Executive.

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          (c) WHX agrees to grant Executive 25,000 options (the "Options") to
purchase WHX's common stock, pursuant to the draft 2006 WHX Corporation
Incentive Stock Plan (the "Plan"). Such Options shall be made available to
Executive as soon as practicable after March 31, 2006 (but in no event earlier
than WHX's receipt of shareholder approval for the Plan and the filing of a
Registration Statement on Form S-8 registering the securities to be issued
thereunder), and if such approval and registration is not obtained on or prior
to September 30, 2006, then Executive shall be issued 25,000 "phantom" options
in lieu of such Options, with such "phantom" options to have the same strike
price and vesting provisions as the Options would have had on September 30, 2006
had the Plan been approved by WHX's shareholders as of that date.

     3.   VACATION. The Executive shall be entitled to vacation, with pay, of
four (4) weeks in each calendar year. This vacation time shall be pro-rated for
partial employment in the final calendar year of employment.

     4.   BENEFITS. The Executive shall receive the benefits made available to
executives of each of the Companies, including without limitation the following:

          (a) Health insurance coverage, if and to the extent provided to all
other employees of each of the Companies;

          (b) A car allowance of $600.00 per month; and

          (c) Life insurance, disability insurance and 401-K benefits, if and to
the extent provided to executives of either of the Companies (excluding any
benefits anyone else is entitled to under any supplemental executive retirement
program).

     Executive acknowledges that to the extent that any of the compensation and
benefits described herein constitute wages or other taxable income to the

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Executive, such wages or other taxable income shall be subject to applicable
income and employment tax withholding, as required.

     5.   TERMINATION OF AGREEMENT BY EACH OF THE COMPANIES. This Agreement may
be terminated by either of the Companies by providing notice to the Executive
pursuant to Section 12 below upon the occurrence of any of the following:

          (a) For Cause (as defined below);

          (b) Death of the Executive;

          (c) Disability (as defined below) of the Executive; or

          (d) Without Cause.

     The term "Cause," as used herein, means: (i) the Executive's engaging in
conduct which is materially injurious to either of the Companies or any of their
respective customer or supplier relationships, monetarily or otherwise; (ii) the
Executive's engaging in any act of fraud, misappropriation or embezzlement or
sexual or other harassment of any employee of either of the Companies; (iii) the
Executive's engagement in any act which would or does constitute a felony; (iv)
the willful or continued failure by the Executive to substantially perform her
duties, including, but not limited to, willful misconduct, gross negligence or
other acts of dishonesty; or (v) the Executive's material violation or breach of
this Agreement.

     The term "Disability," as used herein, means the Executive's absence from
the full-time performance of her duties hereunder for a period of at least
ninety (90) days, whether or not consecutive, within any twelve (12) consecutive
month period as a result of any incapacity due to physical or mental illness.

     If the Agreement is terminated pursuant to Sections 5 (a), (b), or (c),
then Executive shall be entitled to receive from each of the Companies the

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aggregate of any due but unpaid compensation through the date of termination; if
pursuant to Section 5(b), all life insurance proceeds to which her estate is
entitled pursuant to any life insurance program maintained by either of the
Companies in which she is a participant; if pursuant to Section 5(c), any
disability insurance payments to which she is entitled pursuant to any
disability insurance program maintained by either of the Companies in which she
is a participant; and any expenses incurred and submitted for reimbursement, in
accordance with Section 8, but not paid prior to such termination. Executive
shall receive no further benefits or compensation, except as required by law.

     6.   TERMINATION OF AGREEMENT BY THE EXECUTIVE.

          (a) This Agreement may be terminated by the Executive by providing
written notice to either of the Companies within sixty (60) days following a
Material Diminution (as defined below) of the Executive's position, duties,
responsibilities or base salary compensation with either of the Companies or the
relocation of WHX's headquarters to a location more than 50 miles from Rye, New
York (a "Material Diminution or Relocation Termination Election"). In the case
of a Material Diminution or Relocation Termination Election by the Executive,
such Company or Companies shall have ten (10) business days following their
receipt of written notice of termination from the Executive to cure such
Material Diminution or Relocation. In the case of a Material Diminution or
Relocation Termination Election, if such Company or Companies do not cure such
Material Diminution or Relocation within the ten (10) business days following
its receipt of such Material Diminution or Relocation Termination Election from
the Executive, pursuant to this Section, termination of Executive's employment
shall be effective at the end of such ten (10) business day period.

                                       5

     "Material Diminution" shall only mean a situation in which the Executive is
no longer employed as the Vice President, Secretary and General Counsel of both
of the Companies, or employed or offered employment in substantially equivalent
positions of substantially equivalent companies, regardless of what, if any,
additional positions Executive may from time to time hold or not hold with each
of the Companies or its subsidiaries or affiliates, or the material diminution
of the duties or responsibilities commensurate with the positions of Vice
President, Secretary and General Counsel of each of the Companies, or a
reduction of the Executive's base salary compensation below the amount set forth
herein.

          (b) In all other instances, the Executive may voluntarily terminate
her employment upon thirty (30) days prior written notice to each of the
Companies.

     7. SEVERANCE AND OTHER PAYMENTS.

          (a) In the event the Executive's employment is terminated by either of
the Companies pursuant to Section 5(d) of this Agreement, which termination
shall include the giving of notice not to extend the Term pursuant to Section
1(b), the Companies collectively agree to pay to the Executive as aggregate
compensation: (i) a lump-sum cash payment equal to her then current annual base
salary (the "Severance Payment"); (ii) monthly COBRA payments of any
health-related benefits (medical, dental, and vision) as are then in effect for
either a 12-month period following termination or until the Executive obtains or
is eligible for coverage through a subsequent employer, whichever is earlier;
(iii) any bonus payment that Executive may be entitled to pursuant to any bonus
plans as are then-in-effect; and (iv) a car allowance, as provided pursuant to
Section 4(b), for a one year period after termination. Prior to, and as a
precondition to the payment of the Severance Payment, the Executive shall

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deliver to each of the Companies a general release of each of the Companies,
their subsidiaries and affiliates, and each of their officers, directors,
employees, agents, successors and assigns (but excluding a release of each of
the Companies' continuing obligations under this Agreement and/or pursuant to
its continuing indemnification obligations to Executive under their charters,
bylaws, resolutions of each of the Board of Directors and under applicable
insurance policies), in a form acceptable to each of the Companies and provide a
Director Resignation (as defined below), if applicable. The Severance Payment
and bonus payment referred to in Section 7(a)(iii) shall be made no later than
ten (10) business days following the delivery by the Executive of the release
referred to above and the Director Resignation (if applicable), and if said
release and the Director Resignation are not so delivered within sixty (60) days
of the termination of the Executive's employment, then the Executive shall not
be entitled to receive any Severance Payment or other benefits described herein.
In all other instances, including termination of the Executive's employment for
Cause, termination pursuant to Sections 5(b) or 5(c) above, or if the Executive
voluntarily leaves the employment of each of the Companies (other than for a
reason set forth in Section 6(a) above), the Executive shall not be eligible or
entitled to, and neither of the Companies shall be obligated to make, any
payment following the Executive's termination, including the Severance Payment,
except as otherwise provided in Section 5 or Section 7(b), and each of the
Companies shall have no further obligations to the Executive including the
obligation for a car allowance. Executive agrees that, upon the termination of
her employment with each of the Companies, she shall immediately resign her
positions, if any, as an officer and director of each of the Companies and each
of its subsidiaries (the "Director Resignation").

          (b) In the event the Executive terminates her employment pursuant to
Section 6(a), and either of the Companies does not cure timely the situation as

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provided in Section 6(a) under which the Executive has elected to terminate her
employment, then the Executive shall be entitled to receive from such Company or
Companies the same payments and benefits as provided for in the first sentence
of Section 7(a) above, subject to the same terms and conditions set forth for
the receipt of such payments and benefits as provided for in Section 7(a) above.

          (c) The Executive's entitlement to the Severance Payment and other
payments listed in the first sentence of Section 7(a) (except for COBRA payments
as provided therein), described in Sections 7(a) and 7(b) above, shall not be
impacted or otherwise effected by other employment the Executive may obtain and
the Executive shall be under no obligation to seek other employment in order to
receive such Severance Payment and other payments listed in the first sentence
of Section 7(a).

     8.   EXPENSES. Any ordinary and necessary expenses reasonably incurred by
the Executive in connection with her employment by each of the Companies, and
which are directly connected with or pertaining to the furtherance of the
business of each of the Companies in accordance with each of the Companies'
Travel & Expense Policy, shall be reimbursed to the Executive by each of the
Companies, within thirty (30) days from the date of the receipt of an expense
report, attaching receipts stating: (i) the amount of such expense; (ii) the
time and place that the expense was incurred; (iii) the business purpose of the
expense; and (iv) the business relationship to each of the Companies of persons
entertained, if any.

     9.   DISCLOSURE OF INFORMATION.

          (a) The Executive will not at any time, whether during or after the
termination of her employment, divulge, use, furnish, disclose or make available
to any person or entity, any non-public information concerning each of the
Companies' business, including without limitation, its marketing plans and
strategies, pricing policies, planned strategies related to sources of supply,
methods of delivery, customer names, purchasing needs and/or priorities of

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customers, and the finances or financial information of each of the Companies,
so far as such information has come to her knowledge as a result of or
subsequent to her employment by each of the Companies, except to the extent that
disclosure may be required by law or to the extent that such information is in
the public domain through no fault of the Executive. The Executive acknowledges
that such information, including without limitation, information regarding each
of the Companies' customers, their purchasing needs and priorities, each of the
Companies' sources of supply, their business plans and financial condition, is
non-public, proprietary, and confidential and that the disclosure of such
information may cause each of the Companies substantial harm. Executive hereby
agrees to keep confidential all matters of such nature entrusted to her and
agrees not to use or attempt to use any such information in any manner that may
harm or cause injury to each of the Companies. In addition, copies of all data
files on Executive's own media must be deleted and a letter stating such must be
sent to each of the Companies promptly following the termination of Executive's
employment with each of the Companies, but no later than five business days
after receiving notice from either of the Companies demanding such deletion.

          (b) Executive agrees that upon termination of her employment with each
of the Companies she will immediately surrender and turn over to each of the
Companies all books, forms, records, reports, lists and all other papers and
writings, including items storing computer memory (except computer hard drives
from which items relating to each of the Companies and its business have been
deleted), relating to each of the Companies and their business, and all other
property belonging to each of the Companies, it being understood and agreed that
the same are solely the property of each of the Companies.

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          (c) The provisions of this Section shall survive the expiration and
termination of this Agreement.

     10.  COVENANTS NOT TO COMPETE OR INTERFERE.

          (a) During her employment with each of the Companies, and for a one
year period following the termination of Executive's employment, the Executive
will not (i) directly or indirectly, own an interest in, operate, join, control,
or participate in, or be connected as an officer, employee, agent, independent
contractor, consultant, partner, shareholder, or principal of any corporation,
partnership, proprietorship, firm, association, person, or other entity engaged
in a business which sells, manufactures or produces the products sold,
manufactured or produced by each of the Companies and/or any of their
subsidiaries (the "Products") at the time of the termination of the Executive's
employment under this Agreement or which otherwise competes, directly or
indirectly, with each of the Companies or their subsidiaries (a "Competing
Business"), or (ii) knowingly solicit or accept business for a Competing
Business (x) from any customer of each of the Companies, or their subsidiaries,
(y) from any former customer of each of the Companies, or their subsidiaries,
who purchased any Products during the twelve months preceding the termination of
the Executive's employment under this Agreement, or (z) from any prospect of
each of the Companies, or their subsidiaries, with whom the Executive met to
solicit or with whom the Executive discussed the sale of any Products during the
twelve months preceding the termination of the Executive's employment under this
Agreement. Executive acknowledges that each of the Companies' sales of the
Products is national in scope. Notwithstanding the foregoing, the Executive may
own up to 1% of the outstanding common stock of any class of common equity of a
publicly traded entity provided the Executive's role with the entity is passive
in nature.

                                       10

          (b) During her employment with the Company, and for a two year period
following the termination of Executive's employment, the Executive will not
directly or indirectly, as a sole proprietor, member of a partnership or
stockholder, investor, officer or director of a corporation, or as an employee,
agent, associate or consultant of any person, firm or corporation, induce or
solicit, or attempt to induce or solicit, any employee of either of the
Companies or its subsidiaries or affiliates to terminate his or her employment
with either of the Companies or in any way interfere with the relationship
between either of the Companies, or their subsidiaries or affiliates, and the
employee, and will not solicit, hire, retain or enter into any business
arrangements, with or enter into any discussion to do the same, with any person
working for, or independent contractor of, either of the Companies, or their
subsidiaries or affiliates.

          (c) During her employment with each of the Companies, and for a one
year period following the termination of Executive's employment, the Executive
will not directly or indirectly hire, engage, send any work to, place orders
with, or in any manner be associated with any supplier, contractor,
subcontractor or other business relation of each of the Companies, or their
subsidiaries or affiliates, if such action would have a reasonably foreseeable
adverse effect on the business, assets or financial condition of either of the
Companies or their subsidiaries or affiliates or materially interfere with the
relationship between any such person or entity and either of the Companies or
their subsidiaries or affiliates.

          (d) It is the desire and intent of the parties that the provisions of
this Section 10 shall be enforced to the fullest extent permissible under the
laws and public policies applied in each jurisdiction in which enforcement is
sought. Accordingly, if any particular portion of this Section 10 shall be
adjudicated to be invalid or unenforceable, then this Section 10 shall be deemed

                                       11

amended to delete therefrom the portion that is adjudicated to be invalid or
unenforceable. The provisions of this Section 10 are intended to and shall
survive the termination or expiration of this Agreement.

     11.  INJUNCTIVE RELIEF. In addition to the remedies available to each of
the Companies, the Executive acknowledges that any breach by the Executive of
the provisions of Sections 9 or 10 of this Agreement, would cause irreparable
injury to each of the Companies for which there may be no adequate remedy at
law. In addition to all of the rights and remedies to which each of the
Companies may be entitled, each of the Companies shall also be entitled to
obtain a temporary restraining order and/or a preliminary or permanent
injunction which would prevent the Executive from violating or attempting to
violate any such provisions. In seeking such an order, any requirement to post a
bond or other undertaking shall be waived. In any action brought to enforce
these restrictive covenants, each of the Companies shall be entitled to an award
of all reasonable costs and fees incurred in bringing such an action, including
reasonable attorney's fees. Nothing herein shall be construed as prohibiting
each of the Companies from pursuing any other remedies for such breach or
threatened breach.

     12.  NOTICES. All notices, requests, demands and other communications
hereunder must be in writing and shall be deemed to have been duly given upon
delivery if delivered by hand, sent by telecopier, facsimile or overnight
courier, and three (3) days after such communication is mailed within the
continental United States by first class certified mail, return receipt
requested, postage prepaid, to the other party, in each case addressed as
provided in the introduction to this Agreement. Addresses may be changed by
written notice sent to the other party at the last recorded address of that
party.

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     13.  INSURANCE. Each of the Companies may, at its election and for its
benefit, insure the Executive against accidental loss or death, and the
Executive shall submit to such physical examinations and supply such information
as may be reasonably required in connection therewith.

     14.  AUTHORITY. The Executive represents and warrants that she is not
subject to any agreement, understanding, arrangement, order, judgment or decree
of any kind, or any other restrictive agreement or arrangement, which would
prevent her from entering into this Agreement, or from providing the services
she is expected to provide as an employee of each of the Companies pursuant to
this Agreement, or which would be breached by the Executive executing this
Agreement. The Executive agrees to indemnify and hold each of the Companies
harmless from and for any liability to each of the Companies arising from a
breach of this representation and warranty.

     15.  ASSIGNMENT. The services to be rendered and the obligations to be
performed by the Executive under this Agreement are special and unique, and all
such services and obligations and all of the Executive's rights under this
Agreement are personal to the Executive and shall not be assignable or
transferable and any purported assignment or transfer thereof shall not be valid
or binding upon each of the Companies. However, in the event of the Executive's
death during the term of this Agreement, the Executive's estate shall be
entitled to receive salary and any other payment due and accrued through the
date of the Executive's death and all payments due to the Executive pursuant to
the provisions of Sections 5 and 7. Each of the Companies may assign this
Agreement and any and all of its rights under this Agreement to any person, firm
or corporation succeeding to the business of either of the Companies, provided

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that such successor entity shall assume (by contract or by operation of law)
that Company's obligations under this Agreement, at which point such Company
shall be relieved of its obligations hereunder.

     16.  WAIVER OF BREACH. The waiver by either of the Companies or the
Executive of a breach of any provision of this Agreement shall not operate or be
construed as a waiver of any subsequent breach by either of the Companies or the
Executive.

     17.  AMENDMENTS. No amendments or variations of the terms and conditions of
this Agreement shall be valid unless the same is in writing and signed by all of
the parties hereto.

     18.  COMPLETE AGREEMENT. This Agreement constitutes the entire
understanding between the parties hereto relating to the matters contained
herein, and supersedes any prior agreements, arrangements or understandings,
whether oral or written, relating to the employment of the Executive by each of
the Companies.

     19.  HEADINGS. The section headings contained herein are for convenience
purposes only and shall not in any way affect the interpretations or
enforceability of any provision of this Agreement.

     20.  SEVERABILITY. The invalidity or unenforceability of any provision of
this Agreement, whether in whole or in part, shall not in any way affect the
validity and/or enforceability of any other provision herein contained. Any
invalid or unenforceable provision shall be deemed severable to the extent of
any such invalidity or unenforceability.

     21.  COUNSEL. It is acknowledged by the Executive that she has had the
opportunity to be represented by counsel of her choosing in connection with the
negotiation and execution of this Agreement.

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     22.  GOVERNING LAW. This Agreement and all matters concerning its
interpretation, performance, or the enforcement hereof, shall be governed in
accordance with the laws of the State of New York, without regard to conflict of
law principles.

     23.  JURISDICTION. Each of the parties hereto hereby irrevocably and
unconditionally submits to the exclusive jurisdiction of any state or federal
court sitting in the County of New York, State of New York, and each of the
parties hereto hereby irrevocably and unconditionally agrees that any and all
claims which arise out of or relate to this Agreement or to the Executive's
employment with each of the Companies shall be heard and determined in any such
court. Each of the parties hereto irrevocably and unconditionally waives any
objection that either of them may now or hereinafter have to the venue of any
suit, action or proceeding arising out of or relating to this Agreement or to
the Executive's employment with each of the Companies in any state or federal
court sitting in New York County. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court. Each of
the parties hereto irrevocably waives the right to a trial by jury and each of
the parties irrevocably consents to service of process by first class certified
mail, return receipt requested, postage prepaid, to the address at which such
party is to receive notice in accordance with Section 12.

     24.  EXPENSES. In the event that either of the Companies or the Executive
incurs expenses in connection with the enforcement of this Agreement, the
prevailing party shall be entitled to recover all expenses incurred in
connection with such enforcement of this Agreement from the non-prevailing party
including, without limitation, reasonable attorneys' fees.

     25.  COUNTERPARTS. This Agreement may be executed in one or more
counterparts with each counterpart considered as an original.

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     26.  DUPLICATIVE PAYMENTS AND BENEFITS NOT INTENDED. For the avoidance of
doubt, all payments due and benefits recited hereunder are the joint and several
obligation of each of the Companies, and under no circumstance shall any payment
or benefit be provided to Executive by either Company as a duplicative payment
or benefit.

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

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                 [SIGNATURE PAGE TO HARMON EMPLOYMENT AGREEMENT]

                                            EXECUTIVE

                                            Ellen Harmon

                                            WHX CORPORATION

                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                            HANDY & HARMAN

                                            By:
                                               ---------------------------------
                                               Name:
                                               Title:

                                       17sec document

                                                                    Exhibit 10.9

                    SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN
               (As Amended and Restated as of January 1, 1998)

            This  Supplemental  Executive  Retirement  Plan  (the  "Supplemental
Plan") was adopted and established, effective September 28, 1989 and amended and
restated  effective  as of  January  1,  1995,  by  Handy &  Harman,  a New York
corporation  (the  "Company"),  for Eligible  Executives who  participate in the
Handy & Harman Pension Plan (the "Pension  Plan") which Pension Plan is intended
to satisfy the  requirements  of the Internal  Revenue Code of 1986,  as amended
(the "Code"). The Supplemental Plan is hereby amended and restated, effective as
of January 1, 1996.

            1.    PURPOSE.  The Supplemental  Plan shall provide for the payment
                  of supplementary retirement benefits to compensate an Eligible
                  Executive  for the  amount of the  reduction,  if any,  in his
                  benefits  under  the  Pension  Plan  on  account  of  (i)  the
                  application of Section  401(a)(17) or Section 415 of the Code,
                  or (ii) the  exclusion  from "Pay," as defined in Section 3.10
                  of the Pension Plan of amounts  received  under the  Company's
                  Management Incentive Plan ("MIP").

            2.    PARTICIPATION.  As used in the  Supplemental  Plan,  the  term
                  "Eligible  Executive" shall mean any corporate  officer of the
                  Company who participates in the Pension Plan and is designated
                  by  the   Committee  (as  defined  in  Section  6  hereof)  to
                  participate  herein.  Subject to the  provisions of Section 10
                  hereof,  (i) no payment of any benefit accrued hereunder shall
                  commence to a  Participant  prior to the time  payments  would
                  otherwise  commence  under the terms of the  Pension  Plan and
                  (ii) no payment shall he payable  hereunder to any Participant
                  who has not been a  corporate  officer of the  Company  for at
                  least five (5) years.

            3.    RETIREMENT BENEFITS. The Participant's Accrued Monthly Pension
                  under the Supplemental  Plan shall be equal to the excess,  if
                  any, of (a) over (b), where:

            (a)   equals the Participant's Accrued Monthly Pension pursuant to
                  the Pension Plan determined without regard to the limits of
                  Section 401(a)(17) or Section 415 of the Code and including
                  within the definition of "Pay" under the Pension Plan either
                  (x) fifty percent (50%) of the amounts awarded to the Eligible
                  Executive pursuant to the MIP in respect of MIP plan years up
                  to and including 1994, or (y) twenty-five percent (25%) of the
                  amounts awarded to the Eligible Executive pursuant to the MIP
                  in respect of MIP plan years including 1995 and thereafter
                  (with the MIP award included in Pay for the plan year in which
                  it is paid); and

            (b)   equal the Participant's  Accrued Monthly Pension as calculated
                  under the Pension Plan.

            Except as  provided  in  Section 10 hereof,  the  pension  under the
Supplemental Plan shall become payable at the same time as the pension under the
Pension Plan.

            A  Participant  may elect a form of payment  under the  Supplemental
Plan that is different  than the pension  payable  under the Pension  Plan.  The
following forms of pensions are available under the Supplemental Plan.

                  (i)   the  optional  forms of  pension  benefit  listed in the
                        Pension Plan

                  (ii)  the lump  sum  option  described  in  Section  11 of the
                        Supplemental Plan

                  (iii) any other form of monthly  pension  that is  approved by
                        the Committee

            Upon the death of an  Eligible  Executive  who has been a  corporate
officer of the Company for at least five years and has been  married for the one
year period ending on the date of his death,  a monthly  pension will be payable
to his  surviving  spouse during the same period that the  preretirement  spouse
pension is payable to the surviving spouse under the Pension Plan. The amount of
the monthly pension to the surviving spouse will be equal to the excess, if any,
of (c) over (d), where:

            (c)   equals the monthly  pension that is based on the amount of the
                  Participant's  Accrued  Monthly  Pension as  described  in (a)
                  above and  converted  to a  Preretirement  Spouse  Pension  as
                  described in the Pension Plan assuming that the spouse pension
                  is payable on the 100% Joint and Survivor Pension basis, and

            (d)   equals the amount of monthly pension payable under the Pension
                  Plan.

            The amount of  Supplemental  Plan pension payable to the Participant
or to the  surviving  spouse  shall not be adjusted by cost of living  increases
provided under the Pension Plan and the  Supplemental  Plan pension shall not be
decreased  by any  increase  in the Pension  Plan  pension due to cost of living
increases under the Pension Plan.

                                      -2-

            4. SOURCE OF BENEFITS.  The benefits  payable under the Supplemental
Plan  shall be paid  exclusively  from the  Company's  general  assets.  In this
regard.  the Company may create a grantor  trust  (within the meaning of section
671 of the Code) in connection with the Supplemental Plan to which it shall from
time to time contribute  amounts to accumulate a reserve against its obligations
hereunder. Such trust and any assets held by such trust to assist the Company in
meeting its obligations  under the Supplemental  Plan shall conform to the terms
of the model trust as  described in Internal  Revenue  Service  Procedure  92-64
(I.R.B.  1992-33).  Notwithstanding  the  creation of such trust,  the  benefits
hereunder shall be a general obligation of the Company. Payment of benefits from
such trust shall, to that extent, discharge the Company's obligations under this
Supplemental  Plan.  Eligible  Executives shall have only a contractual right as
general  creditors of the Company to the amounts,  if any, payable hereunder and
such right shall not be secured by any assets of the Company or the trust.

            5.  CONSTRUCTION.  The Company intends the Supplemental Plan to be a
benefit plan which is unfunded and is  maintained  by an employer  primarily for
the purpose of providing deferred  compensation for a select group of management
or highly compensated  employees,  within the meaning of Title 1 of the Employee
Retirement  Income  Security  Act  of  1974,  as  amended  ("ERISA"),   and  any
ambiguities in construction shall be resolved in favor of interpretations  which
will effectuate such intention.  The Supplemental  Plan shall be governed by and
construed  in  accordance  with the laws of the State of New York to the  extent
such laws are not preempted by ERISA.

            6.  ADMINISTRATION  OF THE SUPPLEMENTAL  PLAN. The Supplemental Plan
shall be administered by the Compensation Committee of the Board of Directors of
the Company  (the  "Committee").  The  Committee  shall have  authority to make,
amend,  interpret  and enforce all  appropriate  rules and  regulations  for the
administration  of the  Supplemental  Plan and  decide  or  resolve  any and all
questions  including  interpretations  of the Supplemental  Plan as may arise in
connection with the  Supplemental  Plan. The Committee shall designate from time
to time those eligible for inclusion in the Supplemental Plan. The Committee may
employ agents and delegate to them such administrative duties as if sees fit and
may consult  with  counsel who may be counsel to the  Company.  The  decision or
action  of the  Committee  in  respect  of  any  question  arising  out of or in

                                      -3-

connection  with  the  administration,  interpretation  and  application  of the
Supplemental  Plan and the rules and regulations  thereunder  shall be final and
conclusive and binding upon all persons having any interest therein.

            7.  TERMINATION  SUSPENSION OR AMENDMENT.  The Board of Directors of
the  Company  in its  sole  discretion  may  terminate,  suspend  or  amend  the
Supplemental  Plan at any  time or from  time to  time,  in  whole  or in  part;
provided,  however,  that no such  termination,  suspension  or amendment  shall
adversely  affect the  benefits of any  corporate  officer of the company who is
vested or eligible for  Disability  Retirement  under the Pension  Plan,  or the
pension to the surviving spouse of such a corporate officer who is then entitled
to a spouse pension.

            8. EFFECTIVE DATE. The effective date of the Supplemental Plan shall
be September 28, 1989, as amended  December 13, 1993, as amended and restated as
of January 1, 1995, and as amended and restated as of January 1, 1996.

            9.  GENERAL  CONDITIONS.  No  interest  of any person and no benefit
payable  hereunder  shall  be  assigned  as  security  for a loan  and any  such
purported  assignment shall be null, void and of no effect.  No such interest or
benefit shall be subject in any manner, either voluntarily or involuntarily,  to
anticipation, sale, transfer, assignment or encumbrance by or through any person
and any such purported action shall be null, void and of no effect.

            No Eligible  Executive  and no other  person shall have any legal or
equitable  right or interest in the  Supplemental  Plan which are not  expressly
granted hereunder. Participation hereunder does not give any person any right to
be retained  in the  service of the  Company or to  continue in its employ,  the
right  and power of the  Company  to  dismiss  or  discharge  any  executive  is
expressly reserved.

            10. ACCELERATION OF PAYMENTS.  In the event a "change of control" of
the Company  (as  hereinafter  defined)  shall  occur,  the lamp sum payment (as
hereinafter defined) of the amount of benefits hereunder shall be determined for
each Eligible Executive and each such person shall be deemed to be 100% vested.

                                      -4-

            The  aggregate  amount of all such lump sum  payments  shall be paid
into a grantor trust (which may include the grantor trust referred to in Section
4 hereof)  established by the Company for payment to such Eligible Executives in
accordance  with the terms of such trust  fund.  Such amount to be paid shall be
reduced  by the value of the  assets in such  grantor  trusts at the time of the
payment  with respect to the persons  reflected  in the lump sum  amounts.  Such
amount shall be paid to the trusts immediately upon the occurrence of the change
of control.

            Each  participant  will  receive  the  amount  of lump  sum  payment
calculated on his behalf  within 30 days of the change of control.  The lump sum
payment to each participant  under this  Supplemental Plan shall be equal to the
excess of (i) over (ii), where:

            (i)   equals  the lump sum  present  value of the  amount of monthly
                  pension  described  in  subsection  (a) of  Section  3 of this
                  Supplemental Plan,  determined as of the date of the change of
                  control,  in  accordance  with the  methodology  set  forth in
                  Section I.1 of the Pension Plan except that the interest  rate
                  for  the  Supplemental  Plan  will  be  equal  to  80%  of the
                  applicable  interest rate for the Pension  Plan,  and the lump
                  sum payment  will be  calculated  on the  assumption  that the
                  pension  would  have  commenced  on the first day of the month
                  following  the  participant's  60th  birthday  (current age if
                  older) and that the  Participant  would have been  entitled to
                  receive such benefits as an Early  Retirement  Benefit on such
                  date, and

            (ii)  equals  the lump sum  present  value of the  amount of monthly
                  pension  described  in  subsection  (b) of  Section  3 of this
                  Supplemental Plan,  determined as of the date of the change of
                  control,  in  accordance  with the  methodology  set  forth in
                  Section 1.1 of the Pension Plan.

            In  addition to the lump sum payment  described  above,  the Company
shall  reimburse each  participant  who receives such a lump sum payment for any
excise  tax  (and  any   income  and  excise  tax  due  with   respect  to  such
reimbursement)  imposed on such lump sum payments in connection with a change of
control of the Company  pursuant to Section 4999 of the Internal Revenue Code of
1986,  as  amended.  The  basis  for  such  reimbursement  calculation  shall be
consistent with similar  calculations  described in change of control agreements
of the Company.

            For purposes of the  Supplemental  Plan, a "change of control" shall
occur if:

            (a)   any  "Person,"  as such term is used in  Sections  13(d) and
                  14(d) of the  Securities  Exchange  Act of 1934,  as amended
                  (the  "Exchange  Act") (other than the Company,  any trustee
                  or other  fiduciary  holding  securities  under an  employee
                  benefit  plan  of  the  Company  or any  corporation  owned,
                  directly or indirectly,  by the  stockholders of the Company
                  in substantially  the same proportions as their ownership of
                  stock in the Company),  is or becomes the "beneficial owner"
                  (as defined in Rule 13d-3 under the Exchange Act),  directly
                  or  indirectly,  or securities  of the Company  representing
                  25% or more of the combined  voting  power of the  Company's
                  then outstanding securities;

                                      -5-

            (b)   during any period of two  consecutive  years (not  including
                  any period prior to the adoption of the Supplemental  Plan),
                  individuals  who at the beginning of such period  constitute
                  the Board of Directors of the Company,  and any new director
                  (other  than a  director  designated  by a  person  who  has
                  entered  into an  agreement  with the  Company  to  effect a
                  transaction  described  in  clause  (a),  (c) or (d) of this
                  Section)  whose election by the Company's  stockholders  was
                  approved  by a vote  of at  least  two-thirds  (2/3)  of the
                  directors  then still in office who either were directors at
                  the beginning of the period or whose  election or nomination
                  for  election  was  previously  so  approved,  cease for any
                  reason to constitute at least a majority thereof;

            (c)   the   stockholders  of  the  Company  approve  a  merger  or
                  consolidation  of the  Company  with any other  corporation;
                  other than (i) a merger or consolidation  which would result
                  in  the  voting   securities  of  the  Company   outstanding
                  immediately  prior thereto  continuing to represent  (either
                  by remaining  outstanding or by being  converted into voting
                  securities  of the  surviving  entity)  more than 70% of the
                  combined  voting  power  of  the  voting  securities  of the
                  Company or such  surviving  entity  outstanding  immediately
                  after  such  merger  or  consolidation  or (ii) a merger  or
                  consolidation  effected to implement a  recapitalization  of
                  the Company (or  similar  transaction)  in which no "Person"
                  (as  hereinabove  defined)  acquires  more  than  50% of the
                  combined  voting  power of the  Company's  then  outstanding
                  securities; or

            (d)   the  stockholders  of the  Company  approve a plan of complete
                  liquidation  of the  Company or an  agreement  for the sale or
                  disposition by the Company of all or substantially  all of the
                  Company's assets.

            11.   LUMP SUM  OPTION.  Unless  his  benefit is  accelerated  under
                  Section 10 hereunder,  a participant  who has a valid lump sum
                  payment  election in effect at his  termination  of employment
                  date will receive his benefits under the Supplemental  Plan in
                  a lump sum  payment  within the 30-day  period  following  his
                  termination of employment  date or, if later,  upon attainment
                  of age 60.  The  payment  will  be  made as soon as  practical
                  thereafter.  A lump  sum  payment  election  will be  valid if
                  approved by trustee or if either (i) it has been in effect for
                  at  least  12  months  and  is on a  form  authorized  by  the
                  Committee or (ii) in the event of extraordinary circumstances,
                  it has been approved by the Committee,  in as sole discretion,
                  upon  application by the  participant in accordance  with such
                  procedures established by the Committee.

                                      -6-

            The  amount  of the lump sum  payment  will be equal to the  monthly
pension  that is the excess of (a) over (b) as described in Section 3 multiplied
by the applicable  lump sum factor.  The applicable lump sum factor shall be the
same factor as  determined  for single sum amounts in Section 1.1 of the Pension
Plan except that the applicable  interest rate reflected in the  calculation for
the Supplemental  Plan will be equal to 80% of the applicable  interest rate for
the Pension Plan.

                                      -7-

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