Employment Agreement between Ronson Corporation and Louis V. Aronson II (2007)

Summary

This agreement is between Ronson Corporation and Louis V. Aronson II, appointing Aronson as General Manager, President, and CEO for a two-year term starting January 1, 2008, with automatic annual renewals unless either party gives twelve months' notice. Aronson will manage all company operations, receive a base salary with potential annual increases, benefits, expense reimbursement, and use of a company car. The agreement includes provisions for compensation in case of death or disability and requires any successor entity to honor its terms. The contract is binding on both parties and their successors.

EX-10.A 2 ex10-a.txt Page 1 of 3 THIS AGREEMENT made and entered into this 17th day of May 2007, by and between RONSON CORPORATION, a corporation of the State of New Jersey, having its principal place of business at Corporate Park III, Campus Drive, Post Office Box 6707, Somerset, New Jersey ###-###-#### (hereinafter called the "Corporation"), and LOUIS V. ARONSON II, residing at P.O. Box 9, Oldwick, New Jersey 08858 (hereinafter called "Aronson"): W I T N E S S E T H : WHEREAS, the November 24, 2003 agreement by its terms expires on December 31, 2007; and WHEREAS, the Corporation desires to continue in its employ Aronson and Aronson is willing to accept continued employment with the Corporation in an executive capacity as General Manager, President and Chief Executive Officer of all domestic and foreign operations; and WHEREAS, the Corporation is cognizant of Aronson's substantial contribution to the Corporation's operations and the importance of having him continue in the discharge of his present duties; and WHEREAS, the Corporation and Aronson desire to fix and determine the terms and conditions of such employment; NOW, THEREFORE, for and in consideration of the promises and mutual covenants and agreements herein contained, the parties agree as follows: 1. The Corporation agrees to and does hereby employ Aronson to do and perform all duties and services of a managerial and executive character as General Manager, President and Chief Executive Officer of the Corporation's manufacturing, marketing, financial and other operations which may be required of Ronson by the Board of Directors of the Corporation for a period of two (2) years, beginning January 1, 2008 and ending December 31, 2009. The Corporation further agrees that this Agreement will continue after December 31, 2009 from year to year - that is to say: from January 1, 2010 to December 31, 2010 and for each succeeding year following 2009, subject to the same terms and conditions herein contained unless the employment shall be terminated by not less than twelve months prior notice in writing given by either party to the other, or unless the parties agree to a new employment contract prior to the expiration date of this Agreement. The earliest termination date, however, shall be December 31, 2009. 2. Aronson shall have the general control and management of the business of the Corporation and all persons employed in or about the same. 3. Aronson shall be entitled to four (4) weeks vacation with full compensation in each year. Page 2 of 3 4. Aronson hereby accepts such employment and agrees that during the aforementioned period of two (2) years, or extensions thereof, he will serve the Corporation faithfully and to the best of his ability, and that during the term of such employment he will devote his energy and abilities to the fulfillment of the duties and services to be performed by him, as set forth in this Agreement. 5. For the services to be rendered by Aronson to the Corporation during the aforementioned two-year period of his employment, the Corporation agrees that it will, during the term hereof: (a) Pay Aronson an annual base salary, commencing with January 1, 2008 equivalent to the base salary level in 2007 of $572,991, payable semi-monthly or at other stated periods as may be mutually agreed. Said annual base salary shall annually, on January 1, be increased by three and one-half percent (3 1/2%) providing Ronson Corporation consolidated has an operating profit the prior year. In the event Ronson Corporation does not have an operating profit in the preceding year, then the base salary will be the same as the prior year without any increase. (b) Aronson shall be entitled to all benefits provided by the Corporation, and he shall be included in the Corporations' Top Management Incentive Plan (PIE); (c) Reimburse Aronson for all ordinary and reasonable expenses incurred by him in connection with and related to the duties performed and services rendered to the Corporation by him hereunder; (d) Make available to Aronson a suitable automobile for his use and pay all expenses in connection therewith; (e) In the event of the death of Aronson prior to the expiration of this Agreement, the Corporation will pay to the widow of Aronson (or, in the event of her death, to his designated beneficiary or beneficiaries) the equivalent of two (2) full years' compensation, including any of the incentive compensation, deferred or otherwise, that was payable to Aronson during the year immediately preceding his death. These sums of money shall be paid in equal quarterly installments over a period of three (3) years and until these sums of money have been fully paid and satisfied, interest on any unpaid balance shall be at the prime interest rate as determined by Citibank, N.A. (f) In the event Aronson, during the term of this Agreement, is unable to perform his duties because of illness or other reason beyond his control (other than death), he shall continue to receive full compensation, payable monthly during the remainder of this Agreement. If any of the events referred to above takes place in the last twelve months of this Agreement, then, following the end of the term of this Agreement, Aronson shall be Page 3 of 3 entitled to receive one full year of additional compensation, payable monthly, under the terms of this Agreement. 6. In the event of the reorganization, acquisition, merger or consolidation of the corporation with, or sale of substantially all of the assets of the corporation to, any other entity (trust, etc.), the Corporation, or any other successor or entity (trust, etc.) shall undertake and accept the conditions of this Agreement and the obligation to continue the employment of Aronson with such reorganized, acquired, merged or consolidated corporation in accordance with the terms and conditions of this Agreement. 7. This Agreement shall be binding upon and inure to the benefit of Aronson and his heirs and legal representatives and to the Corporations or its successors and assignees. IN WITNESS WHEREOF, the Corporation has caused this instrument to be executed by its duly authorized officers and its corporate seal to be affixed, and Aronson has hereunto set his hand and seal the day and year first above written. ATTEST: RONSON CORPORATION By: - --------------------------- --------------------------- Justin P. Walder, Secretary WITNESS: - --------------------------- --------------------------- Louis V. Aronson II