| A.   | Employer      and Employee are parties to an Employment Agreement dated as of August 14,      2006 (the “Original Agreement”). |
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| B.   | Employer,      Employee and Hawk Corporation, a Delaware corporation which maintains a      place of business at 200 Public Square, Suite 1500, Cleveland Ohio 44114,      amended the Original Agreement in Amendment to Agreements dated as of      November 10, 2006 (the “OA Amendment No. 1,” and together with the      Original Agreement, the “Amended Original  Agreement”). |
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| C.   | In      order to ensure compliance with Section 409A of the Internal Revenue Code      of 1986, as amended, and the U.S. Department of Treasury regulations and      other interpretive guidance issued thereunder, Employer and Employee      desire to further amend the Amended Original Agreement as set forth in      this Amendment. |
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| (a)   | The      first two sentences of Section 5(b) are deleted from the Amended Original      Agreement in their entirety and are replaced by the    following: |
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| (b)   | The      first sentence of Section 5(c) is deleted from the Amended Original      Agreement in its entirety and is replaced by the  following: |
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| (c)   | The      third sentence of Section 5(c) is deleted from the Amended Original      Agreement in its entirety and is replaced by the  following: |
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| (d)   | Section      5(e) of the Amended Original Agreement is deleted from the Amended      Original Agreement in its entirety and is replaced by the following new      Section 5(e): |
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| (e)   | The      following is added in its entirety as Section 5(f) of the      Agreement: |
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| (a)   | Section      6 of the Amended Original Agreement is redesignated in its entirety as      Section 6(a). |
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| (b)   | The      following is added in its entirety as Section 6(b) of the Amended Original      Agreement: |
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| (a)   | To      the extent applicable, this Agreement shall be interpreted in accordance      with Section 409A. |
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| (b)   | If      Employee is a “specified employee” (within the meaning of Treasury      Regulation Section 1.409A-1(i)), as determined by Employer in accordance      with Section 409A,  as of the date of Employee’s separation from      service (within the meaning of Treasury Regulation Section 1.409A-1(h)),      to the extent that any payments or benefits under this Agreement are      subject to Section 409A and the delayed payment or distribution of all or      any portion of such amounts to which Employee is entitled under this      Agreement is required in order to avoid a prohibited distribution under      Section 409A(a)(2)(B)(i) of the Code, then such portion deferred under      this Section 20(b) shall be paid or distributed (without interest) to      Employee in a lump sum on the earlier of (i) the date that is six (6)      months following termination of Employee’ s employment, (ii) a date that      is no later than thirty (30) days after the date of Employee’s death or      (iii) the earliest date as is permitted under Section 409A.  For      purposes of clarity, the six (6) month delay shall not apply in the case      of severance pay contemplated by Treasury Regulation Section      1.409A-1(b)(9)(iii) to the extent of the limits set forth      therein.  Any remaining payments due under this Agreement shall      be paid as otherwise providedherein. |
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| (c)   | Notwithstanding      anything to the contrary in this Agreement, Employer shall be under no      obligation to provide the Severance Benefits described in Section 5(b) of      this Agreement unless Employee shall have executed the Release and the      Severance Waiver (and the applicable revocation period shall expired)      within fifty-five (55) days following the date of Employee’s termination      of employment.  The payment of the amounts payable under Section      5(b)(i) shall begin no later than sixty (60) days following the date of      termination of employment or death, as  applicable. |
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| (d)   | For purposes      of Section 409A (including, without limitation, for purposes of Treasury      Regulation Section 1.409A-2(b)(2)(iii)), Employee’s right to      receive the installment payments described in Sections 5(b)(i)      and 7(a) shall be treated as a right to receive a      series of separate payments and,      accordingly, each installment payment shall at all times be considered a      separate and distinctpayment. |
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| (e)   | Notwithstanding      anything herein to the contrary, to the extent any of the amounts payable under Sections 5(b) and 7(a)      are treated as non-qualified      deferred compensation subject to Section 409A, then no portion of such      amounts shall be payable to Employee until Employee’s termination of      employment constitutes a “separation from service,” as defined in Treasury      Regulation Section 409A-1(h) (and any successor provision      thereto).” |
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|   | (f) | To      the maximum extent permitted by applicable law, the amounts payable to Employee under this Agreement      shall be made in reliance upon Treasury Regulation Section      1.409A-1(b)(9) (with respect to separation pay plans) or Treasury      Regulation Section 1.409A-1(b)(4) (with respect to short-term      deferrals). |
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| (g)   | As      provided in Internal Revenue Notice 2007-86, notwithstanding any other      provision of this Agreement, with respect to an election or amendment to      change a time and form of payment under this Agreement that is subject to      Section 409A made on or after January 1, 2008 and on or before December      31, 2008, the election or amendment may apply only to amounts that would      not otherwise be payable in 2008 and may not cause an amount to be paid in      2008 that would not otherwise be payable in  2008. |
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