bel BEL FUSE INC.
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198 Van Vorst Street, Jersey City, New Jersey 07302 o 201-432-0463
TWX 710-730-5301
FAX 201-432-9542
October 29, 1997
Mr. Elliot Bernstein
Ridge Road
Glen Cove, New York 11542
Re: EMPLOYMENT AGREEMENT
Dear Elliot:
The Board of Directors of Bel Fuse Inc. ("Bel" or the "Company") have
requested that we submit to you the following Agreement concerning your
continued employment by the Company.
1. DUTIES: The Company shall continue to employ you in the capacity of
Chairman of the Board of Directors. Your duties shall include those normally
performed by individuals employed by a public company in such capacity. In
addition, Bel requests that you continue to provide to the Company, your
expertise in the development of products and production. You shall not be
responsible to perform any tasks as may be required in the day-to-day
administrative management of the Company.
2. COMPENSATION: The Company shall pay to you compensation (base salary)
during the term of this Agreement, at an annual rate of $350,000.00.
3. TERM: The Company agrees to continue to employ you and you hereby agree
to continue to serve the Company until October 31,2000, unless further extended
or sooner terminated as hereinafter provided. On the last day of the month of
October in the year 2000, and on the last day of such month in each preceding
year, the term of this employment agreement shall be automatically extended for
one additional year unless, prior to such date, Bel shall given you or you shall
have given Bel written notice that this employment agreement shall not be
extended.
4. BENEFITS: In addition to your base salary, the Company shall continue to
provide to you all benefits that you are presently receiving including, but not
limited to, the health care and insurance benefits now provided to you.
5. PERMANENT DISABILITY OR DEATH: If you shall become disabled, the Company
shall continue to pay your base salary for a maximum of twelve (12) months.
Should you become disabled and be prevented from performing your duties under
this agreement for a period of twelve (12) consecutive months, this agreement
shall
bel BEL FUSE INC.
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198 Van Vorst Street, Jersey City, New Jersey 07302 o 201-432-0463
TWX 710-730-5301
FAX 201-432-9542
terminate at the option of the Company, at the end of such twelve (12) month
period. However, the Company shall continue to pay your base salary after the
termination for the balance of the term of this agreement in effect at the time
of termination.
In the event of your death during the period of your employment, this
agreement shall automatically terminate. However, the Company shall continue to
pay your base salary after your death for the balance of the term of this
agreement in effect at the time of your death. Such payment shall be made to
your widow, or, if she is not then living, to your estate. This payment is in
addition to any other rights that you may have with respect to pensions, profit
sharing or other employee benefits.
6. NON-COMPETITION: During the term of this agreement or any extension
thereof and for a period of one year after termination of your employment, you
agree not to directly or indirectly own, manage, operate, control, participate
in, or be connected in any manner with the ownership, management, operation or
control of any business similar to the type of business conducted by Bel Fuse
Inc., and/or its subsidiaries or affiliates at the time of termination of
employment.
7. APPLICABLE LAW: This agreement shall be subject to and governed by the
laws of the State of New Jersey.
If you are in agreement with the abovementioned terms, please signify your
approval on the enclosed copy of this letter and return it to me.
Sincerely yours,
BEL FUSE INC.
By /s/ PETER GILBERT
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PETER GILBERT
Compensation Committee
By /s/ ROBERT E. SIMANDL
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ROBERT E. SIMANDL
Compensation Committee
Approved and Accepted,
/s/ ELLIOT BERNSTEIN
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ELLIOT BERNSTEIN
Dated: October 29th, 1997