Document:

ex10_22.htm

    
      
Exhibit
10.22

    DEBT
SUBORDINATION AGREEMENT

     

    
      This Debt
Subordination Agreement is entered into as of May 13, 2008 (“Agreement”),
by Wachovia Bank, National
Association, a national banking association, whose address is 12 East
49th Street, 43rd Floor, New York, New York 10017 ("Bank"), Qualytextil S.A., with an
address of Avenida Bernardino de Campos, no 98, sala 09, 14o andar, CEP
04004-040, São Paulo, São Paulo, Brazil ("Creditor"), and Lakeland Industries, Inc.,
whose address is 701-07 Koehler Avenue, Ronkonkoma, New York 11779
("Borrower").

      

      Bank has
agreed to extend or renew credit to the Borrower on the condition that Creditor
enter into this Agreement and to induce the Bank to extend such credit to the
Borrower, the Creditor has agreed to enter into this Agreement and to
subordinate indebtedness owed it by the Borrower as provided
herein.

      

      In
consideration of Bank's extension or renewal of credit to Borrower, Bank,
Creditor and Borrower agree as follows:

      

      Subordinated Debt:  All
indebtedness of any kind now existing or hereafter contracted and all renewals,
extensions and modifications thereof owing by Borrower to Creditor are
hereinafter referred to as “Subordinated Debt”.

      

      Bank Debt:  All indebtedness of any
kind now existing or hereafter contracted and all renewals, extensions and
modifications thereof owing by Borrower to Bank are herein after referred to as
"Bank Debt".

      

      Agreement to
Subordinate:  Creditor and Borrower agree that Bank Debt shall
be superior to and, except as otherwise provided herein, shall be paid before
any part of the Subordinated Debt is paid.

      

      Payment of Subordinated Debt
Prohibited:  Borrower shall not, directly or indirectly, make
or permit any payment or transfer of property or release any collateral for
credit in reduction of Subordinated Debt; Creditor shall not demand, accept or
receive any payment in reduction of Subordinated Debt or additional collateral
for Subordinated Debt nor act to collect (including but not limited to, making
demand or commencing litigation, bankruptcy, reorganization or liquidation
proceedings against the Borrower), cancel, set-off, forgive, release, or
otherwise discharge any Subordinated Debt.  In the event of Borrower’s
bankruptcy, Bank shall be paid all principal, pre- and post- petition interest
and pre- and post- petition costs and expenses to which Bank is entitled under
the Bank Debt without regard to the application bankruptcy law or other
insolvency law prior to any payment of Subordinated Debt or from any payment or
distribution on account of subordinated debt made to
Creditor.  Creditor agrees that any sums or property received in
reduction of the Subordinated Debt shall be received in trust for Bank and
delivered immediately to Bank.

      

      Assignment of Subordinated Debt and
Collateral: To secure payment and performance of Bank Debt by
Borrower, Creditor hereby grants Bank a security interest in and assigns to Bank
all Subordinated Debt and all collateral of any kind and guarantees therefor
including all instruments evidencing Subordinated Debt.  Bank may file
financing statements concerning the security interest hereby
created.

      

      Bank appointed
attorney-in-fact:  Bank is hereby irrevocably appointed
attorney-in-fact for Creditor with full power to act in stead of Creditor to
sign financing statements reflecting the assignment of Subordinated Debt and
collateral and guarantees therefor and to act in all matters concerning the
Subordinated Debt including the right to make, present, file and vote proofs of
claim against Borrower on account of all or part of the Subordinated Debt and
receive and collect any dividends thereon, foreclose under any mortgage or
security agreements or otherwise take possession of and sell collateral and
collect against any guarantees and apply proceeds of such dividends, sale or
collection to reduction of Subordinated Debt and to compromise or settle any
claim related thereto.

    
      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Subordinated Legend: The parties hereto will
cause any note and any other instrument which may evidence Subordinated Debt
from time to time to be endorsed with the following legend:

      

      "The
indebtedness evidenced by this instrument is subordinated to the prior payment
of the Bank Debt (as defined in the Debt Subordination Agreement hereinafter
referred to) pursuant to, and to the extent provided in, the Debt Subordination
Agreement dated as of May 13, 2008, in favor of Wachovia Bank, National
Association."

      

      The
parties hereto each will further mark the appropriate books of account to
reflect the effect of this Agreement.  Creditor agrees to deliver to
Bank, upon written request, all instruments evidencing Subordinated Debt or
collateral or guarantees therefor endorsed in blank.

      

      Limitation on Modification of
Subordinated Debt:  Borrower and Creditor shall not, without
the prior written consent of Bank, modify, extend, supplement or increase
Subordinated Debt.

      

      No Limitation on Modification of Bank
Debt:  Bank may, without notice to Creditor, extend, renew,
modify or increase Bank Debt and may substitute, exchange or release collateral
or letters of credit securing payment of Bank Debt and may add or release any
guarantor or surety on Bank Debt.

      

      Further
Assurance:  Creditor and Borrower shall execute and deliver to
Bank such further instruments and shall take such further action as Bank may
from time to time reasonably request in order to carry out the provisions and
intent of this Agreement and to confirm that Bank Debt is entitled to the
benefits of this Agreement and shall not act or permit any action prejudicial to
or inconsistent with the priority position of Bank Debt over Subordinated Debt
created by this Agreement.

      

      Rights of
Subrogation:  Creditor agrees that no payment or distribution
to Bank pursuant to the provisions of this Agreement shall entitle the Creditor
to exercise any rights of subrogation in respect thereof until Bank Debt is
finally and unavoidably paid in full.

      

      Representations, Warranties and
Covenants:  Creditor represents, warrants and covenants that
now and until all Bank Debt is fully paid, the Subordinated Debt is owned solely
by Creditor and shall not be subject to any set off, security interests, liens,
charges, subordinations other than this Agreement, assignments or encumbrances;
is payable solely to Creditor; is not and shall not be subject to any guaranty
or surety; and is not in default.  Creditor covenants that Creditor
shall not sell, assign or otherwise transfer Subordinated
Debt.  Borrower represents and warrants that the Subordinated Debt is
due and payable according to its terms.

      

      Termination of
Subordination:  This Agreement and the subordination granted
herein shall terminate when Bank Debt is finally and unavoidably
paid.  Bank Debt shall be deemed not to be paid in full, for purposes
of this Agreement, so long as the Bank has any obligation with respect to the
Bank Debt, to make further advances to Borrower.  However, this
Agreement and the subordination granted herein shall continue to be effective or
be reinstated if any payment of Bank Debt is rescinded, avoided, or for any
reason returned by Bank because of any adverse claim or threatened action as
though such payment had not been made.

      

      Remedies:  Upon
violation of this Agreement by Creditor or Borrower, Bank may accelerate the
maturity of Bank Debt and Subordinated Debt so that all Bank Debt and
Subordinated Debt is immediately due and payable.  Creditor shall pay
to Bank all sums received by Creditor paid in violation of this Agreement and
Bank shall have all remedies of Creditor against collateral for Subordinated
Debt.  Bank is entitled to specific performance of this Agreement and
Borrower and Creditor waive any defense based upon adequacy of remedy at law
which may be asserted as a bar to the remedy of specific
performance.  No failure on the part of Bank to exercise or delay in
exercising any right or remedy hereunder shall operate as a waiver thereof nor
shall any partial exercise of any rights or remedies hereunder preclude any
other or further exercise of such or additional rights or
remedies.  The remedies provided herein are cumulative of any other
remedies provided by law or otherwise held against Borrower.

    

    
      

      
        
           

        

        
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2

          
            

          

        

        
           

        

      

      Miscellaneous: Waiver of
Notice:  Creditor waives notice of the acceptance of this
Agreement by Bank.  Severability:  If
any provision of this Agreement is found to be invalid or unenforceable, the
remainder of such provision and all other provisions of this Agreement shall be
valid and enforceable as if such unenforceable provision were not
written.  Notices:  Any
notices, demands or requests shall be sufficiently given Creditor whose address
is listed on the first page hereof or Bank if in writing and mailed or delivered
to Wachovia Bank, National Association, Mail Code VA7628, P. O. Box
13327, Roanoke, VA 24040 or Wachovia Bank, National Association, Mail Code VA7628, 10 South
Jefferson Street, Roanoke, VA  24011 or to another address as provided
herein and in the event either party hereto changes its address at prior to the
date Bank Debt paid in full, that party shall promptly give written notice to
the other party of such change of address by registered or certified mail,
return receipt requested, all charges prepaid.  Notices to Bank must
include the mail code.  Continuing
Agreement:  This Agreement shall be binding upon the parties
and their respective successors and assigns.  Assignment:  Bank
may assign or transfer its rights with respect to any Bank Debt to any person or
entity, and such transferee shall thereupon become vested with all the rights in
respect thereof granted to Bank herein.  Modification:  This
Agreement is irrevocable and no waiver or modification of any provision of this
Agreement shall be valid unless in writing and signed by all parties
hereto.  LIMITATION
ON LIABILITY; WAIVER OF PUNITIVE DAMAGES. EACH OF THE PARTIES HERETO,
INCLUDING BANK BY ACCEPTANCE HEREOF, AGREES THAT IN ANY JUDICIAL, MEDIATION OR
ARBITRATION PROCEEDING OR ANY CLAIM OR CONTROVERSY BETWEEN OR AMONG THEM THAT
MAY ARISE OUT OF OR BE IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE LOAN
DOCUMENTS OR ANY OTHER AGREEMENT OR DOCUMENT BETWEEN OR AMONG THEM OR THE
OBLIGATIONS EVIDENCED HEREBY OR RELATED HERETO, IN NO EVENT SHALL ANY PARTY HAVE
A REMEDY OF, OR BE LIABLE TO THE OTHER FOR, (1) INDIRECT, SPECIAL OR
CONSEQUENTIAL DAMAGES OR (2) PUNITIVE OR EXEMPLARY
DAMAGES.   EACH OF THE PARTIES HEREBY EXPRESSLY WAIVES ANY RIGHT
OR CLAIM TO PUNITIVE OR EXEMPLARY DAMAGES THEY MAY HAVE OR WHICH MAY ARISE IN
THE FUTURE IN CONNECTION WITH ANY SUCH PROCEEDING, CLAIM OR CONTROVERSY, WHETHER
THE SAME IS RESOLVED BY ARBITRATION, MEDIATION, JUDICIALLY OR
OTHERWISE.  FINAL
AGREEMENT.  This Agreement and the
other Loan Documents represent the final agreement between the parties and may
not be contradicted by evidence of prior, contemporaneous or subsequent oral
agreements of the parties.  There are no unwritten oral agreements
between the parties.

      

      WAIVER OF JURY
TRIAL.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF CREDITOR AND
BORROWER BY
EXECUTION HEREOF AND BANK BY ACCEPTANCE HEREOF, KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY RIGHT EACH MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT, THE LOAN DOCUMENTS OR ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN
CONNECTION WITH THIS AGREEMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS OF ANY PARTY WITH RESPECT HERETO.  THIS PROVISION IS A
MATERIAL INDUCEMENT TO BANK TO ACCEPT THIS AGREEMENT. EACH OF THE PARTIES AGREES
THAT THE TERMS HEREOF SHALL SUPERSEDE AND REPLACE ANY PRIOR AGREEMENT RELATED TO
ARBITRATION OF DISPUTES BETWEEN THE PARTIES CONTAINED IN ANY LOAN DOCUMENT OR
ANY OTHER DOCUMENT OR AGREEMENT HERETOFORE EXECUTED IN CONNECTION WITH, RELATED
TO OR BEING REPLACED, SUPPLEMENTED, EXTENDED OR MODIFIED BY, THIS
AGREEMENT.

      

    

    
      
         

      

      
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3

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, Bank, Creditor and Borrower have signed and sealed this
Agreement as of the day and year first above written.

    

    
      
        
          	 
      	
                  Qualytextil
      S.A.

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   /s/ Miguel G.
      Bastos

                
	 
      	 
      	
                  Miguel
      G. Bastos, CFO

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  Lakeland
      Industries, Inc.

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   /s/ Gary A.
      Pokrassa

                
	 
      	 
      	
                  Gary
      A. Pokrassa, Chief Financial Officer

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  Wachovia
      Bank, National Association

                
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
                  By:

                	
                   /s/ Roger
      Grossman

                
	 
      	 
      	
                  Roger
      Grossman, Vice President

                
	 
      	 
      	 
      

        

      

    

    

    

    State of
New York

    County
of

    Corporate
Acknowledgment

     

    
      On the ____ day of April, in the year
2008, before me, the undersigned, a Notary Public in and for said State,
personally appeared Gary A. Pokrassa, Director of Qualytextil S.A., a Brazilian
corporation, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument, the individual, or the person upon behalf of
which the individual acted, executed the instrument.

    

    

    

    
      	 
      	 
      	
              ,Notary
      Public

            
	
              Notary
      Seal

            	 
      	 
      
	 
      	 
      	 
      
	 
      	
              (Printed
      Name of Notary)

            
	 
      	 
      	 
      
	 
      	
              My
      Commission Expires:

            	 
      	 
      

    

    

      
        
           

        

        
          Page
4

          
            

          

        

        
           

        

      

    

     

    State of
New York

    County
of

    

    Corporate
Acknowledgment

    

    
      On the ____ day of April, in the year
2008, before me, the undersigned, a Notary Public in and for said State,
personally appeared Gary A. Pokrassa, Chief Financial Officer of Lakeland
Industries, Inc., a Delaware corporation, personally known to me or proved to me
on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity, and that by his signature on the instrument, the
individual, or the person upon behalf of which the individual acted, executed
the instrument.
  

     

    
      	 
      	 
      	
              ,Notary
      Public

            
	
              Notary
      Seal

            	 
      	 
      
	 
      	 
      	 
      
	 
      	
              (Printed
      Name of Notary)

            
	 
      	 
      	 
      
	 
      	
              My
      Commission Expires: 

            	 
      	 
      

    

    

    

    State of
New York

    County
of

    

    Corporate
Acknowledgment

     

    
      On the ____ day of April, in the year
2008, before me, the undersigned, a Notary Public in and for said State,
personally appeared ____________________________, Vice President of Wachovia
Bank, National Association, personally known to me or proved to me on the basis
of satisfactory evidence to be the individual whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
capacity, and that by his signature on the instrument, the individual, or the
person upon behalf of which the individual acted, executed the
instrument.
 

     

    
      	 
      	 
      	
              ,Notary
      Public

            
	
              Notary
      Seal

            	 
      	 
      
	 
      	 
      	 
      
	 
      	
              (Printed
      Name of Notary)

            
	 
      	 
      	 
      
	 
      	
              My
      Commission Expires: 

            	 
      	 
      

    

     

    
Page 5ex1018to10q06447_03312008.htm

    Exhibit
10.18

     

    EMPLOYMENT
AGREEMENT

     

    THIS
AGREEMENT, dated and effective as of  April 7, 2008 is entered into by and
between WHX Corporation (“WHX” or the “Company”), a corporation organized under
the laws of the State of Delaware, with an address at 1133 Westchester Avenue,
Suite North 222, White Plains, New York 10604, and Peter T. Gelfman (the
“Executive”), an individual with a residence at 106 Brite Avenue, Scarsdale, New
York 10583.

    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 the Company shall begin on or before April 1, 2008 (the
“Effective Date”) pursuant to the terms and conditions contained
herein.  The Executive shall hold the titles of General Counsel and
Secretary of the Company.  The Executive shall perform all the duties
consistent with this position as set forth in the Company’s By-Laws, as well as
any other duties commensurate with the Executive’s position that are assigned to
the Executive from time to time by the Board of Directors of the Company (the
“Board”).

    The
Executive shall devote his full working time, attention and energies to the
business of the Company 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 restriction
shall not be construed as preventing the Executive from (i) serving as a board
member or performing other volunteer work for any civic, non-profit or
charitable organization so long as it does not prevent the Executive from
fulfilling his work obligations; (ii) investing his personal assets in any
business or venture which does not compete, directly or indirectly, with WHX or
its subsidiaries 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 (iii)
purchasing 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
WHX or its subsidiaries.

    (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 automatically 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 written 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 Company 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
salary of $300,000 per annum, to be paid in equal installments no less
frequently than monthly, less applicable withholdings and
deductions.  Executive’s salary shall be reviewed annually beginning
on February 1, 2009 in accordance with the applicable policies of the
Company.

     

    
      
        
        

      

      
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    (b)           A
car allowance of $7,200 per annum, to be paid in equal installments no less
frequently than monthly, less applicable withholdings and
deductions.  Such amount shall not be considered part of base salary
for the purpose of determining Executive’s bonus pursuant to paragraph 2(c)
below and the Severance Payment pursuant to 7(a) below.

    (c)           An
annual bonus with a target of 75% of the Executive’s base salary earned in such
year, to be determined and payable pursuant to the Company’s Long Term Incentive
Plan and Short Term Incentive Plan and other bonus plans if such
exist.  Executive’s base salary shall only include the amount referred
to in paragraph 2(a) above and any increases thereto, and shall not include
Executive’s car allowance.  The bonus for 2008 will not be less than
$100,000 provided that the Executive has not been terminated for Cause (as
defined in Section 5(a) below) or terminated his employment pursuant to Section
6(b) below prior to April 1, 2009.

    (d)           Subject
to prior approval of the compensation committee of the Board, the Executive
shall receive a grant of 50,000 options on his first day of employment which
will be priced at the greater of the fair market value at the close of the
market on the business day immediately prior to the date of grant or $9.00, one
third of which will vest on the grant date, one third of which will vest on the
first anniversary of the grant date, and the final one third of which will vest
on the second anniversary of the grant date.  The grant shall be
governed by the terms of WHX’s 2007 Incentive Stock Plan.

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

     

    
      
        
        

      

      
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    4.           Benefits.  The
Executive shall receive the benefits made available to executives of the
Company, including without limitation the following:

    (a)           Health,
dental and vision insurance coverage, if and to the extent provided to all other
employees of the Company;

    (b)           Life
insurance, short term disability insurance and 401-K benefits, if and to the
extent provided to executives of the Company (excluding any benefits anyone else
is entitled to under any supplemental executive retirement program);
and

    (c)           Executive
acknowledges that to the extent that any of the compensation and benefits
described herein constitute wages or other taxable income to the Executive, such
wages or other taxable income shall be subject to applicable income and
employment tax withholding, as required by law.

    5.           Termination of Agreement by
the Company.  This Agreement may be terminated by the Company
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 the Company or its 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 the Company; (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 his 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.

     

    
      
        
        

      

      
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    The term
“Disability,” as used herein, means the Executive’s absence from the full-time
performance of his 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 the Company the aggregate of any due but
unpaid compensation through the date of termination; if terminated pursuant to
Section 5(b), all life insurance proceeds to which his estate is entitled
pursuant to any life insurance program maintained by the Company in which he is
a participant; if terminated pursuant to Section 5(c), any disability insurance
payments to which he is entitled pursuant to any disability insurance program
maintained by the Company in which he is a participant.  Upon
termination of this Agreement, Executive will also be entitled to repayment for
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 the
Company within sixty (60) days following a Material Diminution (as defined
below) of the Executive’s position, duties, responsibilities or base salary
compensation with the Company or the relocation of WHX’s headquarters or the
permanent relocation of Executive’s assigned place of work to a location more
than 50 miles from White Plains, New York (a “Material Diminution or Relocation
Termination Election”).  In the case of a Material Diminution or
Relocation Termination Election by the Executive, the Company shall have ten
(10) business days following its receipt of written notice of termination from
the 

     

    
      
        
        

      

      
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    Executive
to cure such Material Diminution or Relocation.  In the case of a
Material Diminution or Relocation Termination Election, if the Company does 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.

    “Material
Diminution” shall only mean a situation in which the Executive is no longer
employed as the General Counsel and Secretary of the Company, 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 the Company or its subsidiaries or
affiliates, or the material diminution of the duties or responsibilities
commensurate with the positions of General Counsel and Secretary of the Company,
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 his employment upon
thirty (30) days prior written notice to the Company.

    7.           Severance and Other
Payments.

    (a)           In
the event the Executive’s employment is terminated by the Company pursuant to
Section 5(d) of this Agreement, which termination shall include the giving of
thirty (30) days prior written notice not to extend the Term pursuant to Section
1(b), the Company agrees to pay to the Executive as aggregate
compensation:  (i) a lump-sum cash payment equal to one (1) year of
his 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 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) all expenses
incurred by Executive and payable pursuant to Section 8 of 

     

    
      
        
        

      

      
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    this
Agreement.  Prior to, and as a precondition to the payment of the
Severance Payment, the Executive shall deliver to the Company a general release
of the Company, its subsidiaries and affiliates, and each of its officers,
directors, employees, agents, successors and assigns (but excluding a release of
the Company’s continuing obligations under this Agreement and/or pursuant to its
continuing indemnification obligations to Executive under its charters, bylaws,
resolutions of the Board of Directors and under applicable insurance
policies),  in a form acceptable to the Company and provide a Director
Resignation (as defined below), if applicable.  The Severance Payment
referred to in Section 7(a)(i) 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), provided that if the bonus payment cannot be
calculated at that time, it will be paid within ten (10) business days of the
date the calculation is known.  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 

     

    
      
        
        

      

      
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    if the
Executive voluntarily leaves the employment of the Company (other than for a
reason set forth in Section 6(a) above), the Executive shall not be eligible or
entitled to, and the Company shall not 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 the Company shall have
no further obligations to the Executive.  Executive agrees that, upon
the termination of his employment with the Company, he shall immediately resign
his positions, if any, as an officer and director of the Company and each of its
subsidiaries (the “Director Resignation”).

    (b)           In
the event the Executive terminates his employment pursuant to Section 6(a), and
the Company does not cure timely the situation as provided in Section 6(a) under
which the Executive has elected to terminate his employment, then the Executive
shall be entitled to receive from the Company 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.  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).

    (d)           Notwithstanding
the foregoing, Executive agrees that in the event that all or a portion of any
payment described in Subparagraphs (a) and (b) of this Paragraph 7 constitutes
nonqualified deferred compensation within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”), such payment or payments
shall not be made prior to the date which is six months after the date the
Employee separates from service (within the meaning of Section 409A of the
Code).

     

    
      
        
        

      

      
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    8.           Expenses.  Any
ordinary and necessary expenses reasonably incurred by the Executive in
connection with his employment by the Company, and which are directly connected
with or pertaining to the furtherance of the business of the Company in
accordance with the Company’s Travel & Expense Policy, shall be reimbursed
to the Executive by the Company, 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 the
Company of persons entertained, if any.

    9.           Disclosure of
Information.

    (a)           The
Executive will not at any time, whether during or after the termination of his
employment, divulge, use, furnish, disclose or make available to any person or
entity, any non-public information concerning WHX’s or its subsidiaries’
businesses, including without limitation, any of their marketing plans and
strategies, pricing policies, planned strategies related to sources of supply,
methods of delivery, customer names, purchasing needs and/or priorities of
customers, and the finances or financial information of WHX or its subsidiaries,
so far as such information has come to his knowledge as a result of or
subsequent to his employment by the Company, 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 WHX’s or its subsidiaries’ customers, any of their purchasing needs
and priorities, WHX’s or its subsidiaries’ sources of supply, any of their
business plans and financial condition, is non-public, proprietary, and
confidential and that the disclosure of such information may cause WHX or its
subsidiaries substantial harm.  Executive 

     

    
      
        
        

      

      
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    hereby
agrees to keep confidential all matters of such nature entrusted to him and
agrees not to use or attempt to use any such information in any manner that may
harm or cause injury to WHX or its subsidiaries.  In addition, copies
of all data files on Executive’s own media must be deleted and a letter stating
such must be sent to the Company promptly following the termination of
Executive’s employment with the Company, but no later than five business days
after receiving notice from the Company demanding such deletion.

    (b)           Executive
agrees that upon termination of his employment with the Company, he will
immediately surrender and turn over to the Company 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 WHX or
its subsidiaries and their businesses have been deleted), relating to WHX or its
subsidiaries and their businesses, and all other property belonging to WHX or
its subsidiaries, it being understood and agreed that the same are solely the
property of WHX or its subsidiaries.

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

    10.           Covenants Not to Compete or
Interfere.

    (a)           During
his employment with the Company, and for the greater of the balance of the
remaining term of his contract, or a one (1) 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 WHX and/or any of its 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 WHX or its subsidiaries (a
“Competing Business”), or (ii) knowingly solicit or accept business for a
Competing Business (x) from any customer of WHX or its subsidiaries, (y) from
any former customer of WHX or its subsidiaries, who purchased any Products

     

    
      
        
        

      

      
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    during
the twelve months preceding the termination of the Executive’s employment under
this Agreement, or (z) from any prospect of WHX or its 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 WHX’s and/or its subsidiaries’ sales of the Products are 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.

    (b)           During
his 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 WHX or its subsidiaries or
affiliates to terminate his employment with WHX, or any of its subsidiaries, or
in any way interfere with the relationship between WHX, or its subsidiaries or
affiliates, and the employee 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, WHX, or its subsidiaries
or affiliates.

    (c)           During
his employment with the Company, 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 WHX or its subsidiaries or affiliates, if such action would have a
reasonably foreseeable adverse effect on the business, assets or financial
condition of WHX or its subsidiaries or affiliates or materially interfere with
the relationship between any such person or entity and WHX or its 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 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 the Company,
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 WHX or its
subsidiaries for which there may be no adequate remedy at law.  In
addition to all of the rights and remedies to which the Company may be entitled,
the Company shall also be entitled to obtain a temporary restraining order
and/or a preliminary or permanent injunction which would prevent the

     

    
      
        
        

      

      
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    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, the Company 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 the Company
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.

    13.           Insurance.  The
Company 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 he 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 him from entering into
this Agreement, or from providing the services he is expected to provide as an
employee of the Company pursuant to this Agreement, or which would be breached
by the Executive executing this Agreement.  The Executive agrees to
indemnify and hold the Company harmless from and for any liability to the
Company arising from a breach of this representation and warranty.

     

    
      
        
        

      

      
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    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 the
Company.  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.  The Company 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 the Company, provided 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 the Company 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 the Company 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 the
Company.

     

    
      
        
        

      

      
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    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 he has had the opportunity to be
represented by counsel of his choosing in connection with the negotiation and
execution of this Agreement.

    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 the Company 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 the
Company 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.

     

    
      
        
        

      

      
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    24.           Expenses.  In
the event that the Company 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.

    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 Gelfman Employment Agreement]

     

    
      	 
      	
              EXECUTIVE

            
	 
      	 
      
	 
      	 
      
	 
      	/s/
      Peter
      T. Gelfman
	 
      	
              Peter
      T. Gelfman

            
	 
      	 
      
	 
      	 
      
	 
      	
              WHX
      Corporation

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 /s/
      Glen
      Kassan
	 
      	 
      	
              Glen
      Kassan

            
	 
      	 
      	
              Chief
      Executive Officer

            

    

     

     

    
      
        
        

      

      
        16

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