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AGREEMENT

Employee Retention Agreement

AGREEMENT | Document Parties: IEH CORPORATION You are currently viewing:
This Employee Retention Agreement involves

IEH CORPORATION

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Title: AGREEMENT
Date: 9/4/2009
Industry: Electronic Instr. and Controls     Sector: Technology

AGREEMENT, Parties: ieh corporation
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                                    AGREEMENT
                                    ---------

         THIS AGREEMENT dated as of this 1st day of September, 2009, between IEH
Corporation, a New York corporation maintaining its principal place of business
at 140 58th Street, Brooklyn, New York, 11220 (the "Company"), and ROBERT KNOTH,
residing at _________________________________________________ ("Executive").

         WHEREAS, the Company desires to continue Executive in its employ and in
order to make it attractive for Executive to remain in its employment, desires
to provide him with certain family and retirement benefits, and desires to
assure that, if and when Executive retires from fulltime employment, the
services of Executive will continue to be made available to the Company for
advice and consultation on management matters.

         NOW, THEREFORE, the parties hereto, each in consideration of the
promises of the other, agree as follows:

         1. Employment Periods. The employment of the Executive by the Company
            ------------------
shall be divided into (a) the "Active Period", and (b) the "Retirement Period"
(each as defined below):

                  (a) The Active Period is defined as such period of time until
         the Executive attains the age of 70 years, or further period of
         employment beyond such date if extended by mutual agreement of
         Executive and the Company; and

                  (b) The "Retirement Period" is defined as the period beginning
         with the Executive attaining the age of 70 years and continuing until
         ten (10) years thereafter, unless his employment has been previously
         terminated or extended by mutual agreement of Executive and the
         Company. The Retirement Period shall take effect only on termination of
         the Active Period pursuant to the provisions of Section 2 below.

         2.   Termination of Employment Periods.
              ---------------------------------

                  (a) The Active Period shall terminate with the first to occur
         of any of the following events:

<PAGE>

                           (i) Expiration of the later of either the original
                  time limit for such Active Period, or the renewal or extension
                  thereof by the Company.

                           (ii) Executive attaining the age of 70 years, unless
                  his Active Period of employment has been extended by mutual
                  agreement of Executive and the Company.

                           (iii) Death of Executive before attaining an age of
                  70 years.

                           (iv) Disability of Executive before attaining an age
                  of 70 years. For purposes of this subsection (a)(4),
                  "Disability" shall mean (i) Executive's incapacity due to
                  physical or mental illness that results in his being
                  substantially unable to perform his duties to the Company for
                  six (6) consecutive months (or for six (6) months out of any
                  nine (9) month period) or (ii) a qualified independent
                  physician mutually acceptable to the Company and Executive
                  determines that Executive is mentally or physically disabled
                  so as to be unable to regularly perform the duties of his
                  position and such condition is expected to be of a permanent
                  duration.

                           (v) Termination of Executive by mutual consent of
                  Executive and the Company before attaining age 70 years.

                           (vi) The passage of sixty (60) days following receipt
                  by Executive of notice in writing from Company's intention to
                  terminate the employment relationship for cause. "Cause" means
                  (i) willful malfeasance or willful misconduct by Executive in
                  connection with his employment; (ii) Executive's gross
                  negligence in performing any of his duties under this
                  Agreement; (iii) Executive's conviction of, or entry of a plea
                  of guilty to, or entry of a plea of nolo contendre with
                  respect to, any crime other than a traffic violation or
                  infraction which is a misdemeanor; (iv) Executive's material
                  breach of any written policy applicable to all Executives
                  adopted by the Company which is not cured to the reasonable
                  satisfaction of the Company within thirty (30) business days
                  after notice thereof; or (v) material breach by Executive of
                  any of his obligations in this Agreement which is not cured to
                  the reasonable satisfaction of the Company within thirty (30)
                  business days after notice thereof.

                                       2
<PAGE>

                  (b) The Retirement Period shall terminate with the first to
         occur of either of the following events:

                           (i) Expiration of the time limit for such Retirement
                  Period.

                           (ii) The death of Executive, subject to the
                  provisions of Section 6(a).

                           (iii) Violation by Executive of Sections 3 and 4 of
                  this Agreement, such termination being a termination for
        &n 


 
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