FIRST AMENDMENT TO SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT AND AMENDMENT TO AGREEMENTS
Exhibit 10.4
This First Amendment to the Second Amended and Restated Employment Agreement and to the
Amendment to Agreements (the “Amendment”), dated as of December 1, 2010, is made and entered into
by and between Xxxxxx X. Xxxxxxxx, an individual (the “Executive” and “Xxxxxxxx”), and Hawk
Corporation, a Delaware corporation (“Hawk”).
RECITALS
1. Hawk and the Executive are parties to the Amendment to Agreements, dated October 14, 2010
(the “Amendment to Agreements”) and the Second Amended and Restated Employment Agreement, dated
March 31, 2009 (the “Employment Agreement” and together with the Amendment to Agreements, the
“Agreements”) which provide that if the Executive is terminated that the Executive is entitled to
certain benefits including severance in exchange for the Executive’s agreement to abide by certain
restrictive covenants, including a covenant not to compete set forth in Section 8(a) of the
Employment Agreement for a period of two years following the termination of the Executive’s
employment with Hawk (the “Non-Compete Covenant”).
2. On October 14, 2010, Carlisle Companies Incorporated (“Carlisle”), and Carlisle’s wholly
owned subsidiary, HC Corporation, a Delaware corporation (the “Purchaser”), entered into an
Agreement and Plan of Merger (the “Merger Agreement”) with Hawk. Pursuant to the Merger Agreement,
Carlisle and the Purchaser commenced a tender offer to purchase all of the issued and outstanding
shares of the Company’s Class A common stock, including the associated Rights (as defined in the
Merger Agreement), at a purchase price of $50.00 per share in cash to be followed by a merger of
the Purchaser with and into Hawk (the “Merger”).
3. In exchange for a certain payment to the Executive from Hawk, the Executive desires and has
agreed to extend the term of his Non-Compete Covenant by an additional six (6) month period and
subject such payments to Section 8 of the Employment Agreement.
4. Hawk and the Executive desire to amend the Agreements in connection with the extension of
the term of the Executive’s Non-Compete Covenant.
AGREEMENT
NOW, THEREFORE, in consideration of the premises, the covenants, conditions, representations,
and agreements contained herein, the consummation by Carlisle of the transactions contemplated by
the Merger Agreement and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Executive covenants and agrees with Hawk as follows:
1. Non-Compete. In exchange for the payment described in paragraph 2 below, the Executive has
agreed to extend the term of the Non-Compete Covenant by an additional six (6) month period and in
accordance with Sections 8(a) and 11 of the Employment Agreement, to subject such payment to, and
condition such payment upon, the Executive’s compliance with, the
Restrictive Covenants unless the
Restrictive Covenants have expired under the terms of the
Employment Agreement. Therefore, the Executive and Hawk agree that the term of the Non-Compete
Covenant as set forth in Section 8(a) of the Employment Agreement shall be thirty (30) months (the
“Extended Non-Compete Covenant”). For purposes of the “Restricted Period” definition, the
Restricted Period shall be thirty (30) months for purposes of Section 8(a) of the Employment
Agreement only, and the Restricted Period shall remain two (2) years for all other purposes of the
Employment Agreement.
2. Additional Consideration. In consideration of the Executive’s agreement in paragraph 1
above with respect to the Extended Non-Compete Covenant, Hawk and the Executive expressly agree and
acknowledge that the certain previously-disclosed additional payment to the Executive totaling One
Hundred Seven Thousand Dollars ($107,000) shall be in exchange for the Executive’s agreement to be
subject to the Extended Non-Compete Covenant. This payment shall be within 5 days following the
closing of the merger pursuant to the Merger Agreement.
3. Accountants’ Report. The following shall be added as new Paragraph 9 of the Amendment to
Agreements:
9. Hawk agrees to provide Xxxxxxxx with a copy of the report, including all schedules and
backup to such report and all data utilized in the preparation of such report, prepared by
Hawk’s accountants (Ernst & Young LLP) regarding the determination of any and all
compensation and benefits, including severance, in connection with Xxxxxxxx’x termination
from employment and taxes related thereto.
4. Taxes. The Executive agrees that he alone shall be liable for, and shall release and hold
Hawk and its affiliates harmless from, any and all taxes solely imposed on the Executive relating
to the Payments (as defined below), including any income taxes, excise taxes, interest or penalties
that may be imposed on the Executive. The term “Payments” means any payments or benefits received
pursuant to the Agreements, as well as any other payments or benefits received in connection with a
change in control or the Executive’s termination of employment (whether pursuant to the Agreements
or any other plan, arrangement or agreement between the Executive and Hawk).
5. Agreements. The Employment Agreement and the Amendment to Agreements, as amended by this
Amendment, shall remain in full force and effect in accordance with their terms.
6. Capitalized Terms. Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them in the Employment Agreement or the Amendment to the Agreements, as the case may
be.
7. Counterparts. This Amendment may be executed and delivered (including, without limitation,
by facsimile transmission) in counterparts, each of which shall be deemed an original, but all of
which shall constitute the same instrument.
IN WITNESS WHEREOF, the Executive has executed this Amendment, and Hawk has caused this
Amendment to be duly executed on its behalf, as of the date first written above.
| HAWK CORPORATION |
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| By: | /s/ Xxxx X. Xxxxxx | |||
| Its: Assistant Secretary | ||||
| EXECUTIVE: |
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| /s/ Xxxxxx X. Xxxxxxxx | ||||
| XXXXXX X. XXXXXXXX | ||||
