<PAGE>   1

                                                                   Exhibit 10.22

                             As of January 9, 1997


Mr. Eugene W. Teeter
15814 Rothbury Lane
San Antonio, Texas 78232

Dear Mr. Teeter:

         The Board of Directors of Meyer Machine Company, a Delaware
corporation (the "Company"), which is an indirect wholly-owned subsidiary of
TCC Industries, Inc., a Texas corporation ("TCC"), has approved an agreement
between the Company and you in order to provide to you a severance payment as
additional incentive to continue your employment with the Company. Accordingly,
the Board has authorized such an agreement, and the terms thereof follow:

         1.      In the event that you terminate your employment with the
         Company as a result of one or more of the following events
         (collectively, the "Terminating Events" and each a "Terminating
         Event"): (i) a Change in Control of the Company as defined in
         paragraph 5, below; (ii) a Change of Circumstances as defined in
         paragraph 6, below; (iii) the Company ceases to do business; (iv) in
         the event (an "Insolvency Event") of the Company's bankruptcy,
         insolvency or any assignment for the benefit of creditors, or any
         other act by the Company to take advantage of any law providing for
         relief to debtors, provided that you terminate your employment with
         the Company within one (1) year of the occurrence of one or more of
         the Terminating Events, you will be entitled to: (x) a lump-sum
         payment (the "Special Severance Payment") equal to the sum of (A) the
         highest one month's base salary in effect during the three year period
         immediately preceding such termination, multiplied by the number of
         full years you have then been employed by the Company or any affiliate
         of the Company (including without limitation, TCC), (B) any bonuses
         accrued but unpaid as of the effective date of termination, including,
         without limitation, an amount equal to (i) the amount that would have
         been earned under the TCC Industries, Inc. Annual Incentive Plan, as
         amended from time to time (the "AIP"), for the fiscal year in which 
         such termination occurs had the Incentive Award (as defined in the AIP)
         for that year not been subject to being forfeited due to termination,
         i.e., you will be considered to have been employed for the entire such
         year, (ii) multiplied by a fraction the numerator of which is the
         number of days elapsed in such calendar year as of the date of such
         termination, and the denominator of which is 365 (such amount to be
         paid in the first quarter of the calendar year following the year in
         which such termination occurs), and (C) any other compensation owed
         to you by the Company as of the effective date of termination, and (y)
         fringe benefits for a period of one year following such termination,
         such as health insurance, auto allowance, any premiums becoming due
         during such one year period with respect to any life insurance policy
         on your life for which the Company, TCC or an affiliate of TCC has
         previously made the premium payments, and payment for any unpaid
         vacation not taken and accrued as of such termination, but excluding
         any employer contribution under the Meyer Machine Company Profit
         Sharing Plan for the



                                       1
<PAGE>   2
         year in which such termination occurs. Upon any such termination the
         Company shall take such action and otherwise cooperate with you in
         promptly causing the (1) beneficiary of such life insurance policy to
         be changed from the Company to someone designated by you, and (2)
         ownership of any such life insurance policy to be transferred to you,
         including the right to designate the beneficiary. In addition, any
         portion of any stock options granted by TCC which have not then vested
         shall become exercisable in full for a period of six months following
         the effective date of termination, or such lesser period as the option
         would have been exercisable had your employment with the Company not
         been terminated. Notwithstanding the foregoing, if the only
         Terminating Event that occurs is a Terminating Event specified in
         clause (iv) (relating to an Insolvency Event), then upon the voluntary
         termination by you of your employment as a result of such Insolvency
         Event, you shall be entitled to only one-half of the payments and
         benefits provided for in clauses (x) and (y) above. To the extent
         necessary, this letter shall constitute an amendment to any stock
         options granted to you by TCC such that the vesting and exercise
         provisions thereof shall be consistent with the first sentence of this
         paragraph 1. In the event of the occurrence of any of the Terminating
         Events and the voluntary termination of your employment by you within
         one (1) year of such Terminating Event you shall be deemed to have
         terminated your employment as a result of such Terminating Event;
         provided that if the Terminating Event specified in clause (iv) (being
         an Insolvency Event) occurs and one of the other Terminating Events
         specified in clauses (i), (ii) or (iii) also occurs, you shall be
         deemed to have terminated your employment as a result of such clause
         (i), (ii) or (iii), and not clause (iv)."

         2.      In the event that your employment with the Company is
         terminated by or at the instance of the Company at any time and for
         any reason other than for Cause, as defined in paragraph numbered 7
         below, you will be entitled to the Special Severance Payment, together
         with (a) fringe benefits for a period of one (1) year following any
         termination as referenced in (y) in paragraph numbered 1 above, (b)
         the assignment of life insurance policies and benefits described in
         paragraph 1 above, and (c) the acceleration of vesting, and extension
         of date for exercise of stock options as described in paragraph
         numbered 1 above.

         3.      The Company shall pay the Special Severance Pay Payment to you
         within fifteen calendar days of the effective date of your termination
         pursuant to paragraph numbered 1 or paragraph numbered 2, whichever is
         applicable.

         4.      As a condition to the Company's obligation to pay the Special
         Severance Payment in the event of the voluntary termination by you of
         your employment with the Company pursuant to paragraph numbered 1, you
         shalt provide written notice to the Company specifying (i) the
         effective date of the termination, and (ii) which Terminating Event
         constitutes a reason for your voluntary termination.

         5.      Change in Control means: (i) the sale or other disposition of
         the Company or TCC (whether directly or indirectly, and whether by way
         of merger, consolidation, sale of assets or sale of stock of the
         Company or TCC), or the sale by the Company or TCC of all or



                                       2
<PAGE>   3
         substantially all of the assets of the Company or TCC to any person
         (as such term is defined in the Securities Exchange Act of 1934), the
         consolidation of the Company or TCC with any person, or the merger of
         the Company or TCC with any person, as a result of which consolidation
         or merger the Company, TCC or an affiliate of TCC as of the date of
         this letter agreement, is not the surviving entity; (ii) the sale or
         transfer by (A) the Company and/or TCC, and/or any subsidiary of or
         affiliate of TCC then in control, directly or indirectly, of the
         Company (whether one or more, a "Control Affiliate"), or (B) TCC
         and/or one or more of its shareholders, in one or more related or
         unrelated transactions, to one or more persons under circumstances
         whereby any person and its "affiliates" (as hereinafter defined) shall
         own, after such sale or transfer, in excess of one-half of the
         outstanding shares of the Company or TCC, as the case may be; (iii)
         the issuance by the Company, TCC and/or any Control Affiliate, in a
         single transaction or a series of related transactions including a
         merger or consolidation in which the Company, TCC and/or any Control
         Affiliate, as the case may be, is the surviving entity, of shares
         which constitute more than one-half of the shares of the Company, TCC
         or such Control Affiliate, as the case may be, outstanding immediately
         prior to the first such transaction, (iv) the liquidation of the
         Company, TCC or any Control Affiliate, as the case may be, or (v) the
         election of one or more individuals to the Board of Directors of TCC
         which results in a majority of the Directors of TCC be in a persons
         who are not Directors of TCC on January 9, 1997. As used in this
         letter, an "affiliate" shall mean any person that, directly or
         indirectly, through one or more intermediaries, controls, or is
         controlled by, or is under common control with, any other person or
         who, by agreement (whether written or oral), is acting in concert
         with any such person.

         6.      A Chance of Circumstances shall be deemed to have occurred if,
         in your sole judgment, there has been: (i) a material reduction or
         change in your duties or reporting responsibilities or a removal from
         or failure to be elected to a previously held position, including
         without limitation a removal from an officer position in the
         department in which you are now employed or a relocation of your
         employment outside of the San Antonio metropolitan area; (ii) a breach
         by the Company of any provision of this letter; (iii) a material
         reduction in your salary or the fringe benefits of employment made
         available to you by the Company, which reduction is not also
         applicable to all Company employees; (iv) a material diminution in
         your status, working conditions or economic benefits; or (v) any
         action which substantially impairs your prestige in relation to any
         other employee of the Company.

         7.      Cause means conduct which, in the Company's sole opinion,
         constitutes; (i) fraud or dishonesty; (ii) inability to perform due to
         alcoholism; (iii) inability to perform due to improper and illegal use
         of drugs; (iv) excessive absenteeism other than for major illness or
         similar serious situations; or (v) inattention to your duties and
         responsibilities to the Company, after prior written warning by the
         Company.

         8.      This letter shall be construed and enforced in accordance
         with, and the validity and performance hereof shall be governed by the
         laws of the State of Texas.


                                       3
<PAGE>   4
         9.      This letter constitutes the entire agreement between you and
         the Company regarding the subject matter hereof and supersedes all
         prior and contemporaneous agreements and understandings in connection
         herewith.

         10.     The obligations of the Company under this letter agreement are
         undertaken in consideration of your many years of service to the
         Company and in order to induce you to continue those services to the
         Company, and shall not expire until the Company shall have paid and
         performed each of its obligations to you following any termination of
         your employment, regardless of when such termination occurs. The
         parties acknowledge that this letter is intended to be construed
         broadly and liberally in order to confer upon you the specified
         benefits in the event of the termination of your employment.

         11.     The obligations of the Company to you under this letter
         agreement shall be independent of, and shall not be subject to, any
         condition, obligation or offset except as expressly set forth in this
         letter agreement.  In particular, any obligation of the Company to pay
         any liability or amount of money to you shall not be subject to offset
         against any amount owed by you to the Company, except to the extent
         that either (i) you consent to the offset in writing at the time of
         the offset, (ii) the amount so offset has been reduced to final,
         nonappealable, judgment in favor of the Company against you in a court
         having jurisdiction or (iii) such liability or amount is owed by you
         to the Company as a result of a breach by you of any of your fiduciary
         duties to the Company. If any legal action or other proceeding,
         including, an arbitration proceeding instituted pursuant to the next
         succeeding sentence, is brought for the enforcement of this letter
         agreement, or because of an alleged dispute, breach, default or
         misrepresentation in connection with any of the provisions of this
         letter agreement, the successful or prevailing, party will be entitled
         to recover reasonable attorney's fees and other costs incurred in that
         action or proceeding, in addition to any other relief to which it or
         he may be entitled. Except in connection with seeking injunctive
         relief to which any party hereto may reasonably believe it or he is
         entitled hereunder, or as otherwise expressly provided for by this
         letter agreement, any dispute, controversy or claim arising, out of or
         relating to this letter agreement, or the breach, termination or
         invalidity thereof, shall be settled by arbitration in accordance with
         the commercial arbitration rules of the American Arbitration
         Association as then in effect; provided, that the place of the
         arbitration shall be San Antonio, Texas. Any award or determination
         entered in any arbitration initiated pursuant to this letter agreement
         shall be binding, and conclusive on the parties, and shall be
         enforceable in any court having jurisdiction with respect to the
         matter. If it is ultimately determined in any such proceeding that the
         Company wrongfully withheld payment of any portion of the Special
         Severance Payment or other obligation of the Company to you under this
         letter agreement prior to such determination, then you shall be
         entitled to recover from the Company an amount equal to 18% per annum
         on such amount, from the date such amount should have been paid until
         it is paid, and such recovery shall be in addition to such other sums
         to which you are entitled hereunder.  Unless otherwise provided above,
         each Party shall pay its or his own expenses incurred in connection
         with a proceeding pursuant to this paragraph numbered 11.



                                       4
<PAGE>   5
         If you are in agreement with the foregoing, please so indicate by
signing the enclosed copy of this letter and returning the same to the
undersigned.


                                         Meyer Machine Company   
                                                                 
                                         By: /s/ FRANK W. DENIUS  
                                             ----------------------------------
                                                                 
                                         Its: Assistant Secretary
                                             ----------------------------------



Agreed to as of the date of this letter.



/s/ EUGENE W. TEETER
----------------------------------------
Eugene W. Teeter

Agreed to as of the date of this letter.

TCC Industries, Inc.

By: /s/ FRANK W. DENIUS
   -------------------------------------

Its: Secretary
   -------------------------------------





                                       5