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