Employment Agreement between The LGL Group, Inc. and Ivan Arteaga

Compensation:

Annual Salary.  Your annual base salary will be $48,000, less applicable withholdings and deductions, to be paid in accordance with the Company’s normal payroll procedures.  

Annual Bonus. Beginning in 2020, you will be eligible to receive a discretionary bonus at the discretion of the company Board of Directors, less applicable withholdings, to be paid in accordance with the Company's normal payroll procedures.  

Incentive Award.  You will receive a restricted stock award of 45,000 shares as of the date of this agreement in accordance with LGL’s Amended and Restated 2011 Incentive Plan with a tiered vesting schedule, as follows: 15,000 shares on 1/1/22, 15,000 on 1/1/23, and 15,000 shares on 1/1/24.  The requisite service period for this grant is to be three years beginning 1/1/2020. Should your employment be terminated by the Company for any reason other than for cause, your share award shall be prorated by your length of service as President and CEO, with exception that you will be entitled to a minimum of 10,000 shares, with the prorated shares being earned as of the date of your termination, with the remaining shares being forfeited. If your employment is terminated either voluntarily or for cause, any unvested shares at the date of termination shall be forfeited. Furthermore, your vesting is predicated on your continued

employment with the Company as President and CEO. If you cease to be President and CEO but remain on the board of directors, your prorated portion of the unvested shares earned shall remain unvested until the respective vesting date indicated within the grant. This is intended to meet the requirements and qualify as deferred compensation under IRS rules and regulations, until the dates the shares are released from restriction.

Benefits:

Paid Time Off.  Beginning on your hire date you will accrue up to 15 days per year for personal time off.  You will be eligible to take accrued time off after three (3) months of employment.

Other Benefits.  You will be eligible to participate in the Company’s health and other employee benefit programs that are provided by the Company for its executive employees in accordance with the provisions of any such plans, as the same that may be in effect from time to time.

Severance Benefits - The Company will provide severance benefits equal to twelve (12) weeks of your weekly base salary if, during the first twelve (12) months of employment you are terminated for any reason other than gross misconduct, fraud, or other termination for cause.

Expenses:

Cell Phone.  The Company will provide a cell phone to you at no cost for business use, or you may choose to receive a cell phone stipend of $50 per bi-weekly pay period.  

Travel Expense.  Your business travel expenses will be reimbursed according to the Company’s normal travel expense reimbursement policies.

Reporting Responsibility.  You will report to the Board of Directors of the Company.

“At-Will” Employment.  You acknowledge that you are an employee at-will and may be terminated at any time for any legally permissible reason.