Document:

<PAGE>   1
                                                                    EXHIBIT 10.9

                         OFFICER'S EMPLOYMENT AGREEMENT

                              Amended and Restated

     THIS AGREEMENT, is made and entered into as of this ___ day of ________,
by and between KENNAMETAL INC., a corporation organized under the laws of the
Commonwealth of Pennsylvania (hereinafter referred to as "Kennametal" or the
"Corporation"), for and on behalf of itself and on behalf of its subsidiary
companies, and _________________ an individual (hereinafter referred to as
"Employee").

                                   WITNESSETH:

     WHEREAS, Employee acknowledges that by reason of employment by Kennametal,
it is anticipated that Employee will work with, add to, create, have access to
and be entrusted with trade secrets and confidential information belonging to
Kennametal which are of a technical nature or business nature or pertain to
future developments, the disclosure of which trade secrets or confidential
information would be highly detrimental to the interests of Kennametal; and

     WHEREAS, in order to have the benefit of Employee's assistance, Kennametal
is desirous of employing or continuing the employment of Employee; and

     WHEREAS, Kennametal and Employee have heretofore entered into and executed
an Officer Employment Agreement, as amended (the "Employment Agreement"); and

     WHEREAS, Kennametal and Employee desire to amend and restate the Employment
Agreement on the terms and conditions hereinafter expressed.

     NOW, THEREFORE, Kennametal and Employee, each intending to be legally bound
hereby, do mutually covenant and agree as follows:

1. (a) Subject to the terms and conditions set forth herein, Kennametal hereby
   agrees to employ Employee as of the date hereof, and Employee hereby accepts
   such employment and agrees to devote his full time and attention to the
   business and affairs of Kennametal, in such capacity or capacities and to
   perform to the best of his ability such services as shall be determined from
   time to time by the Chief Executive Officer and the Board of Directors of
   Kennametal until the termination of his employment hereunder.

   (b) Employee's base salary, the size of bonus awards, if any, granted to him
   and other emoluments for his services, if any, shall be determined by the
   Board of Directors or its Committee on Executive Compensation, as
   appropriate, from time to time in their sole discretion.

2. In addition to the compensation set forth or contemplated elsewhere herein,
Employee, subject to the terms and conditions of this agreement, shall be
entitled to participate in all group insurance programs, retirement income
(pension) plans, thrift plans and vacation and holiday programs normally
provided for other executives of Kennametal. Nothing herein contained shall be
deemed to limit or prevent Employee, during his employment hereunder, from being
reimbursed by Kennametal for out-of-pocket expenditures incurred for travel,
lodging, meals, entertainment expenses or any other expenses in accordance with
the policies of Kennametal applicable to the executives of Kennametal.

3. Employee's employment may be terminated with or without any reason for
termination by either party hereto at any time by giving the other party prior
written notice thereof, provided, however, that any termination on the part of
Kennametal shall occur only if specifically authorized by its Board of
Directors; provided, further, that termination by Kennametal for Cause (as
hereinafter defined) shall be made by written notice which states that it is a
termination for Cause; and provided, further, that termination by Employee,
other than termination for Good Reason (as hereafter defined) following a
Change-in-Control (as hereafter defined), shall be on not less than 30 days
prior written notice to Kennametal.

4. (a) In the event that Employee's employment is terminated by Kennametal prior
   to a Change-in-Control (as hereinafter defined) and other than for Cause,
   Employee will receive as severance pay, in

<PAGE>   2
   addition to all amounts due him at the Date of Termination (as hereinafter
   defined), an amount, payable promptly after the Date of Termination, equal to
   three months' base salary at the annual rate in effect on the Date of
   termination.

   (b) In the event that Employee's employment is terminated (i) due to the
   death of the Employee or (ii) by Employee following a Change-in-Control (as
   hereafter defined) without Good Reason (as such term in defined in paragraph
   4(h)) or prior to a Change-in-Control (as hereinafter defined), Employee will
   not be entitled to receive any severance pay in addition to the amounts, if
   any, due him at the Date of Termination (as hereinafter defined).

   (c) In the event at or after a Change-in-Control and prior to the third
   anniversary of the date of the Change-in-Control that Employee's employment
   is terminated by Employee for Good Reason or by Kennametal other than for
   Cause or Disability pursuant to paragraph 5, Employee will receive as
   severance pay (in addition to all other amounts due him at the Date of
   Termination) an amount equal to the product of:

         (i)   the lesser of

               (x) two and eight tenths (2.8),

               (y) a number equal to the number of calendar months remaining
               from the Date of Termination to the Employee's Retirement Date
               (as such term is hereafter defined) divided by twelve (12), or

               (z) a number equal to the product obtained by multiplying thirty-
               six (36) less the number of completed months after the date of
               the Change-in-Control during which the Employee was employed and
               did not have Good Reason for termination times one-twelfth
               (1/12);

         times

         (ii)  the sum of

               (x) Employee's base salary at the annual rate in effect on the
               Date of Termination (or, at Employee's election, at the annual
               rate in effect on the first day of the calendar month immediately
               prior to the Change-in-Control), plus

               (y) the average of any bonuses which Employee was entitled to or
               paid during the three most recent fiscal years ending prior to
               the Date of Termination.

          Such severance pay shall be paid by delivery of a cashier's or
     certified check to the Employee at Kennametal's executive offices on a date
     which is no later than five business days following the Date of
     Termination.

          In addition to the severance payments provided for in this paragraph
     4(c), Employee also will receive the same or equivalent medical, dental,
     disability and group insurance benefits as were provided to the Employee at
     the Date of Termination, which benefits shall be provided to Employee for a
     three year period commencing on the Date of Termination. The Employee shall
     also be deemed and shall be credited for computing benefits, for vesting
     and for all other purposes under any pension or retirement income plan of
     Kennametal and under the Supplemental Executive Retirement Plan to have
     continuously remained in the employment of Kennametal for the three year
     period (or, if clause (i)(y) or clause (i)(z) above of this paragraph 4(c)
     is applicable to determine the severance payments to be made, the lesser
     period measured in years equal to clause (i)(y) or clause (i)(z) above,
     whichever is applicable) following the Date of Termination at an annual
     compensation equal to the sum of the base salary and bonus which were used
     to compute the payment due the Employee under the first paragraph of this
     Paragraph 4(c).

     (d) If for any reason, whether by law or provisions of Kennametal's
     employee medical, dental or group insurance, pension or retirement plan or
     other benefit plans, any benefits which the Employee would be entitled to
     under the foregoing subparagraph (c) of this Paragraph 4 cannot be paid
     pursuant to such employee benefit plans, then Kennametal hereby
     contractually agrees to pay to the Employee the difference between the
     benefits which the Employee would have received in accordance with the
     foregoing subparagraphs of this paragraph 4 if the relevant employee
     medical, dental or group insurance or pension or retirement plan or other
     benefit plan could have paid such benefit and the amount of

                                      -2-
<PAGE>   3
     benefits, if any, actually paid by such employee medical, dental or group
     insurance or pension or retirement plan or other benefit plan. Kennametal
     shall not be required to fund its obligation to pay the foregoing
     difference.

     (e) In the event of a termination of employment under the circumstances
     above described in Paragraph 4(c), Employee shall have no duty to seek any
     other employment after termination of Employee's employment with Kennametal
     and Kennametal hereby waives and agrees not to raise or use any defense
     based on the position that Employee had a duty to mitigate or reduce the
     amounts due him hereunder by seeking other employment whether suitable or
     unsuitable and should Employee obtain other employment, then the only
     effect of such on the obligations of Kennametal hereunder shall be that
     Kennametal shall be entitled to credit against any payments which would
     otherwise be made for medical, dental or group insurance or similar
     benefits (excluding, however, any credit against Kennametal payments
     relating to pension or retirement benefits or the Supplemental Executive
     Retirement Plan) pursuant to the benefit provisions set forth in the second
     paragraph of Paragraph 4(c) hereof, any comparable payments to which
     Employee is entitled under the employee benefit plans maintained by
     Employee's other employer or employers in connection with services to such
     employer or employers after termination of his employment with Kennametal.

     (f) The term "Change-in-Control" shall mean a change in control of a nature
     that would be required to be reported in response to Item 6(e) of Schedule
     14A promulgated under the Securities Exchange Act of 1934 as in effect on
     the date hereof ("1934 Act"), or if Item 6(e) is no longer in effect, any
     regulations issued by the Securities and Exchange Commission pursuant to
     the 1934 Act which serve similar purposes; provided that, without
     limitation, such a change in control shall be deemed to have occurred if
     (A) Kennametal shall be merged or consolidated with any corporation or
     other entity other than a merger or consolidation with a corporation or
     other entity all of whose equity interests are owned by Kennametal
     immediately prior to the merger or consolidation, or (B) Kennametal shall
     sell all or substantially all of its operating properties and assets to
     another person, group of associated persons or corporation, or (C) any
     "person" (as such term is used in Sections 13(d) and 14(d) of the 1934
     Act), is or becomes a beneficial owner, directly or indirectly, of
     securities of Kennametal representing 25% or more of the combined voting
     power of Kennametal's then outstanding securities coupled with or followed
     by the existence of a majority of the board of directors of Kennametal
     consisting of persons other than persons who either were directors of
     Kennametal immediately prior to or were nominated by those persons who were
     directors of Kennametal immediately prior to such person becoming a
     beneficial owner, directly or indirectly, of securities of Kennametal
     representing 25% or more of the combined voting power of Kennametal's then
     outstanding securities.

     (g) For purposes of this agreement "Date of Termination" shall mean:

          (i) if Employee's employment is terminated due to his death or
          retirement, the date of death or retirement, respectively; or

          (ii) if Employee's employment is terminated for any other reason, the
          date on which the termination becomes effective as stated in the
          written notice of termination given to or by the Employee.

     (h) The term "Good Reason" for termination by the Employee shall mean the
     occurrence of any of the following at or after a Change-in-Control:

          (i) without the Employee's express written consent, the assignment to
          the Employee of any duties materially and substantially inconsistent
          with his positions, duties, responsibilities and status with
          Kennametal immediately prior to a Change-in-Control, or a material
          change in his reporting responsibilities, titles or offices as in
          effect immediately prior to a Change-in-Control, or any removal of the
          Employee from or any failure to re-elect the Employee to any of such
          positions, except in connection with the termination of the Employee's
          employment due to Cause (as hereinafter defined) or as a result of the
          Employee's death;

          (ii) a reduction by Kennametal in the Employee's base salary as in
          effect immediately prior to any Change-in-Control;

                                      -3-
<PAGE>   4
          (iii) a failure by Kennametal to continue to provide incentive
          compensation, under the rules by which incentives are provided,
          comparable to that provided by Kennametal immediately prior to any
          Change-in-Control;

          (iv) the failure by Kennametal to continue in effect any benefit or
          compensation plan, stock option plan, pension plan, life insurance
          plan, health and accident plan or disability plan in which Employee is
          participating immediately prior to a Change-in-Control (provided,
          however, that there shall not be deemed to be any such failure if
          Kennametal substitutes for the discontinued plan, a plan providing
          Employee with substantially similar benefits) or the taking of any
          action by Kennametal which would adversely affect Employee's
          participation in or materially reduce Employee's benefits under any of
          such plans or deprive Employee of any material fringe benefit enjoyed
          by Employee immediately prior to a Change-in-Control;

          (v) the failure of Kennametal to obtain the assumption of this
          Agreement by any successor as contemplated in paragraph 11 hereof;

          (vi) the relocation of the Employee to a facility or a location more
          than 50 miles from the Employee's then present location, without the
          Employee's prior written consent; or

          (vii) any purported termination of the employment of Employee by
          Kennametal which is not for Cause as provided in paragraph 5.

5. In the event that Employee (a) shall be guilty of malfeasance, willful
misconduct or gross negligence in the performance of the services contemplated
by this agreement, or (b) shall not make his services available to Kennametal on
a full time basis in accordance with paragraph 1 hereof for any reason
(including Disability) other than arising from Employee's incapacity due to
physical or mental illness or injury which does not constitute Disability and
other than by reason of the fact Employee's employment has been terminated under
the circumstances described in paragraph 4(a), or (c) shall breach the
provisions of paragraph 8 hereof (the matters described in subparagraphs (a),
(b) and (c) are collectively referred to as "Cause"), Kennametal shall have the
right, exercised by resolution adopted by a majority of its Board of Directors,
to terminate Employee's employment for Cause by giving prior written notice to
Employee of its election so to do. In that event, Employee's employment shall be
deemed terminated for Cause, Employee shall not be entitled to the benefits set
forth in paragraph 4 which shall not be paid or payable and Kennametal only
shall have the obligation to pay Employee the unpaid portion of Employee's base
salary for the period from the last period from which Employee was paid to the
Date of Termination; provided, however, that if Employee's employment is
terminated as a result of the Disability of Employee, the benefits set forth in
paragraph 4 shall not be paid or payable but Employee shall be entitled to
receive the annual supplement under the Supplemental Executive Retirement Plan
and Employee's employment by Kennametal shall not be deemed terminated for
purposes of the Long-Term Disability Plan, Retirement Income Plan for US
Salaried Employees or any other benefit plan which so provides. For purposes of
this agreement "Disability" shall mean such incapacity due to physical or mental
illness or injury which results in the Employee's being absent from his
principal office at Kennametal's offices for the entire portion of 180
consecutive business days. Prior to a Change-in-Control, a decision by the Board
of Directors of Kennametal that "Cause" exists shall be in the discretion of the
Board of Directors and shall be final and binding upon the Employee and his
rights hereunder. After a Change-in-Control, "Cause" shall not be deemed to
include opposition by Employee to such a Change-in-Control or any matter
incidental thereto and any determination by the Board of Directors that "Cause"
existed shall not be final or binding upon the Employee or his rights hereunder
or entitled to any deference in any court or other tribunal.

6. Employee understands and agrees that, except to the extent Employee is
entitled to the benefits provided in paragraph 4(c) hereof, in the event
Employee resigns or his employment is terminated for any reason other than death
or Disability prior to his "Retirement Date" (as hereinafter defined), he will
forfeit any interest he may have in any Kennametal retirement income plan
(except to the extent vested by actual service to date of separation as per the
plan provisions), and all other benefits dependent upon continuing service. The
term "Retirement Date" shall mean the first day of the month following the day
on which Employee attains his sixty-fifth birthday, or at Employee's request,
any other day that Kennametal's Board of Directors may approve in writing.

7. Nothing herein contained shall affect the right of Employee to participate in
and receive benefits under and in accordance with the then current provisions of
any retirement income, profit-sharing, additional year-end or periodic
remuneration or bonus, incentive compensation, insurance or any other employee
welfare plan or

                                      -4-
<PAGE>   5
program of Kennametal and all payments hereunder shall be in addition to any
benefits received thereunder (including long term disability payments).

8. During the period of employment of Employee by Kennametal and for three years
thereafter, (provided, however, that this paragraph 8 shall not apply to the
Employee following a termination of Employee's employment (x) if a
Change-in-Control, shall have occurred prior to the Date of Termination or (y)
if Employee's employment is terminated by Kennametal other than for Cause), he
will not, in any geographic area in which Kennametal is offering its services
and products, without the prior written consent of Kennametal:

     (a) directly or indirectly engage in, or

     (b) assist or have an active interest in (whether as proprietor, partner,
     investor, shareholder, officer, director or any type of principal
     whatsoever), or

     (c) enter the employ of, or act as agent for, or advisor or consultant to,
     any person, firm, partnership, association, corporation or business
     organization, entity or enterprise which is or is about to become directly
     or indirectly engaged in, any business which is competitive with any
     business of Kennametal or any subsidiary or affiliate thereof in which
     Employee is or was engaged; provided, however, that the foregoing
     provisions of this paragraph 8 are not intended to prohibit and shall not
     prohibit Employee from purchasing, for investment, not in excess of 1% of
     any class of stock or other corporate security of any company which is
     registered pursuant to Section 12 of the Securities Exchange Act of 1934.

     Employee acknowledges that the breach by him of the provisions of this
paragraph 8 would cause irreparable injury to Kennametal, acknowledges and
agrees that remedies at law for any such breach will be inadequate and consents
and agrees that Kennametal shall be entitled, without the necessity of proof of
actual damage, to injunctive relief in any proceedings which may be brought to
enforce the provisions of this paragraph 8. Employee acknowledges and warrants
that he will be fully able to earn an adequate livelihood for himself and his
dependents if this paragraph 8 should be specifically enforced against him and
that such enforcement will not impair his ability to obtain employment
commensurate with his abilities and fully acceptable to him.

     If the scope of any restriction contained in this paragraph 8 is too broad
to permit enforcement of such restriction to its full extent, then such
restriction shall be enforced to the maximum extent permitted by law and
Employee and Kennametal hereby consent and agree that such scope may be
judicially modified in any proceeding brought to enforce such restriction.

9.   (a) Employee acknowledges and agrees that in the course of his employment
     by Kennametal, Employee may work with, add to, create or acquire trade
     secrets and confidential information ("Confidential Information") which
     could include, in whole or in part, information:

          (i) of a technical nature such as, but not limited to, Kennametal's
          manuals, methods, know-how, formulae, shapes, designs, compositions,
          processes, applications, ideas, improvements, discoveries, inventions,
          research and development projects, equipment, apparatus, appliances,
          computer programs, software, systems documentation, special hardware,
          software development and similar items; or

          (ii) of a business nature such as, but not limited to, information
          about business plans, sources of supply, cost, purchasing, profits,
          markets, sales, sales volume, sales methods, sales proposals, identity
          of customers and prospective customers, identity of customers' key
          purchasing personnel, amount or kind of customers' purchases and other
          information about customers; or

          (iii) pertaining to future developments such as, but not limited to,
          research and development or future marketing or merchandising.

          Employee further acknowledges and agrees that (i) all Confidential
     Information is the property of Kennametal; (ii) the unauthorized use,
     misappropriation or disclosure of any Confidential Information would
     constitute a breach of trust and could cause irreparable injury to
     Kennametal; and (iii) it is essential to the protection of Kennametal's
     goodwill and to the maintenance of its competitive position that all
     Confidential Information be kept secret and that Employee not disclose any
     Confidential Information to others or use any Confidential Information to
     the detriment of Kennametal.

                                      -5-
<PAGE>   6
          Employee agrees to hold and safeguard all Confidential Information in
     trust for Kennametal, its successors and assigns and Employee shall not
     (except as required in the performance of Employee's duties), use or
     disclose or make available to anyone for use outside Kennametal's
     organization at any time, either during employment with Kennametal or
     subsequent thereto, any of the Confidential Information, whether or not
     developed by Employee, without the prior written consent of Kennametal.

     (b) Employee agrees that:

          (i) he will promptly and fully disclose to Kennametal or such officer
          or other agent as may be designated by Kennametal any and all
          inventions made or conceived by Employee (whether made solely by
          Employee or jointly with others) during employment with Kennametal (1)
          which are along the line of the business, work or investigations of
          Kennametal, or (2) which result from or are suggested by any work
          which Employee may do for or on behalf of Kennametal; and

          (ii) he will assist Kennametal and its nominees during and subsequent
          to such employment in every proper way (entirely at its or their
          expense) to obtain for its or their own benefit patents for such
          inventions in any and all countries; the said inventions, without
          further consideration other than such salary as from time to time may
          be paid to him by Kennametal as compensation for his services in any
          capacity, shall be and remain the sole and exclusive property of
          Kennametal or its nominee whether patented or not; and

          (iii) he will keep and maintain adequate and current written records
          of all such inventions, in the form of but not necessarily limited to
          notes, sketches, drawings, or reports relating thereto, which records
          shall be and remain the property of and available to Kennametal at all
          times.

     (c) Employee agrees that, promptly upon termination of his employment, he
     will disclose to Kennametal, or to such officer or other agent as may be
     designated by Kennametal, all inventions which have been partly or wholly
     conceived, invented or developed by him for which applications for patents
     have not been made and shall thereafter execute all such instruments of the
     character hereinbefore referred to, and will take such steps as may be
     necessary to secure and assign to Kennametal the exclusive rights in and to
     such inventions and any patents that may be issued thereon any expense
     therefor to be borne by Kennametal.

     (d) Employee agrees that he will not at any time aid in attacking the
     patentability, scope, or validity of any invention to which the provisions
     of subparagraphs (b) and (c), above, apply.

10. In the event that (a) Employee institutes any legal action to enforce his
rights under, or to recover damages for breach of this agreement, or (b)
Kennametal institutes any action to avoid making any payments due to Employee
under this agreement, Employee, if he is the prevailing party, shall be entitled
to recover from Kennametal any actual expenses for attorney's fees and other
disbursements incurred by him in relation thereto.

11. The terms and provisions of this agreement shall be binding upon, and shall
inure to the benefit of, Employee and Kennametal, it subsidiaries and affiliates
and their respective successors and assigns.

12. This agreement constitutes the entire agreement between the parties hereto
and supersedes all prior agreements and understandings, whether oral or written,
among the parties with respect to the subject matter hereof. This agreement may
not be amended orally, but only by an instrument in writing signed by each of
the parties to this agreement.

13. The invalidity or unenforceability of any provision of this agreement shall
not affect the other provisions hereof, and this agreement shall be construed in
all respects as if such invalid or unenforceable provision were omitted.

14. Any pronoun and any variation thereof used in this agreement shall be deemed
to refer to the masculine, feminine, neuter, singular or plural, as the identity
of the parties hereto may require.

15. Kennametal shall be entitled as a condition to paying any severance pay or
providing any benefits hereunder upon a termination of the Employee's employment
to require the Employee to deliver on or before the making of any severance
payment or providing of any benefit a release in the form of Exhibit A attached
hereto.

                                      -6-
<PAGE>   7
16. (a) At the time of making payment to an Employee entitled to receive the
    severance payment computed in accordance subsection 4(c)(i) and
    4(c)(ii) of this agreement, the Corporation shall determine whether the
    Employee is expected to be subject to the tax (the "Excise Tax") imposed by
    section 4999 of the Internal Revenue Code of 1986, as amended (the "Code"),
    with respect to any payment or benefit received, or to be received, by
    Employee under this agreement or in connection with a change in control of
    the Corporation, or the termination of the Employees' employment (whether
    pursuant to the terms of this agreement or any other plan, arrangement or
    agreement with the Corporation, any person whose actions result in a change
    in control or any person affiliated with the Corporation or such person)
    (collectively, the "Total Payments"). If the Corporation determines that the
    Employee will be subject to the Excise Tax, the Corporation shall
    immediately send a written notice to the Employee which sets forth that the
    Employee will be subject to the Excise Tax and the Corporation's computation
    of the Total Payments, of the amount of Total Payments which constitute
    "parachute payments" as defined in section 28OG(b)(2) of the Code
    ("parachute payments") resulting in the imposition of the Excise Tax, and of
    the amount of Total Payments which the Employee would retain after giving
    effect to the Employee's receipt of the Excise Tax Payment (as hereafter
    defined) and payment of applicable taxes. Employee shall have five (5)
    business days after receipt of the foregoing notice and computation to
    deliver a written waiver to the Corporation irrevocable waiving the
    Employee's right to receive an amount of Total Payments equal to the
    "parachute payments" from any specified type of the Total Payments. If the
    Corporation had already withheld any Contract Payments due to the Excise Tax
    prior to receipt of such waiver, the Corporation upon receipt of such waiver
    shall immediately pay to Employee any withheld Contract Payments which would
    have been paid had the Corporation had the Employee's written waiver prior
    to the date the Corporation withheld any such payments.

    (b) If

        (i)  after giving effect to any waiver by the Employee pursuant to
             subsection (a) above, the Employee will be subject to the Excise
             Tax with respect to any portion of the Total Payments and

        (ii) the Employee After Tax Net (as hereafter defined) would be less
             than the Minimum Amount (as hereafter defined),

    then the Corporation shall pay to Employee an additional amount (the "Excise
    Tax Payment") such that the Employee After Tax Net shall be equal to the
    Minimum Amount. The Excise Tax Payment, if any, under this subsection shall
    be made to Employee within fifteen (15) business days of Employee's Date of
    Termination.

    (c) The "Employee After Tax Net" is the portion of the Total Payments which
    the Employee retains or would retain after payment of all federal and any
    state and local income taxes on the Total Payments and of the Excise Tax.
    The "Minimum Amount" is an amount equal to the severance pay computed in
    accordance with subsection 4(c)(i) and 4(c)(ii) of this agreement less the
    federal, state and/or local income taxes which would be owing by the
    Employee on such severance pay (ignoring any Excise Tax Payment). For
    purposes of determining whether any of the Total Payments will be subject to
    the Excise Tax and the amount of such Excise Tax, (i) all Total Payments
    shall be treated as parachute payments and all "excess parachute payments"
    within the meaning of Section 280G(b)(1) shall be treated as subject to the
    Excise Tax, unless in the opinion of tax counsel selected by the Board of
    Directors, such Total Payments (in whole or in part) do not constitute
    parachute payments, or such excess parachute payments (in whole or in part)
    represent reasonable compensation for services actually rendered within the
    meaning of Section 280G(b)(4) of the Code in excess of the base amount
    within the meaning of Section 280G(b)(3) of the Code, or are otherwise not
    subject to the Excise Tax, (ii) the amount of the Total Payments which shall
    be treated as subject to the Excise Tax shall be equal to the lesser of (A)
    the total amount of the Total Payments or (B) the amount of excess parachute
    payments within the meaning of Section 280G(b)(1) (after applying clause
    (i), above) of the Code, and (iii) the value of any non-cash benefits or any
    deferred payment or benefit shall be determined by the Corporation's
    independent auditors in accordance with the principles of Section 280G(d)(3)
    and (4) of the Code. For purposes of determining the Minimum Amount and the
    Excise Tax Payment, Employee shall be deemed to pay federal income taxes at
    Employee's highest

                                      -7-
<PAGE>   8
    marginal rate of federal income taxation in the calendar year in which the
    Excise Tax Payment is to be made and state and local income taxes at
    Employee's highest marginal rate of taxation in the state and locality of
    Employee's residence on the Date of Termination, net of the maximum
    reduction in federal income taxes which could be obtained from deduction of
    such state and local taxes.

    (d) In the event that the Excise Tax is subsequently determined to be less
    than the amount taken into account in arriving at any payment made pursuant
    to subsection (b) above, Employee shall repay to the Corporation at the time
    that the amount of such reduction in Excise Tax is finally determined the
    portion of the Excise Tax Payment attributable to such reduction (plus the
    portion of the Excise Tax Payment attributable to the Excise Tax and federal
    and state and local income tax imposed on the Excise Tax Payment being
    repaid by Employee if such repayment results in a reduction in Excise Tax
    and/or a federal and state and local income tax deduction) plus interest on
    the amount of such repayment from the date the Excise Tax Payment was
    initially made to the date of repayment at the rate provided in Section
    1274(b)(2)(B) of the Code (the "Applicable Rate"). In the event that the
    Excise Tax is determined to exist although the Corporation did not believe
    it existed in arriving at its determination in subsection (a) above or
    although the Corporation believed it existed but the actual amount exceeds
    the amount taken into account in arriving at any payment made pursuant to
    subsection (b) above (including by reason of any payment the existence or
    amount of which cannot be determined at the time of the Excise Tax Payment),
    the Corporation shall make an additional Excise Tax Payment in respect of
    such amount or such excess (plus any interest or penalties payable with
    respect thereto) at the time that the amount of such excess is finally
    determined.

17. This agreement shall be governed by the laws of the Commonwealth of
Pennsylvania.

    WITNESS the due execution hereto as of the day and year first above written.

ATTEST:                                KENNAMETAL INC.

________________________________      By:_________________________________

WITNESS:                              Employee:

________________________________      By:_________________________________(Seal)

                                      -8-
<PAGE>   9
                                                                       Exhibit A

                                     RELEASE

     KNOW ALL MEN BY THESE PRESENTS that the undersigned for good and valuable
consideration, the receipt of which is hereby acknowledged, and intending to be
legally bound, hereby releases, remises, quitclaims and discharges completely
and forever Kennametal Inc. and its directors, officers, employees, subsidiaries
and affiliates from any and all claims, causes of action or rights which the
undersigned has or may have, whether arising by virtue of contract or of
applicable state laws or federal laws, and whether such claims, causes of action
or rights are known or unknown; provided, however, that this Release shall not
release, remise, quitclaim or discharge any claims, causes of action or rights
which the undersigned may have (i) under that certain Amended and Restated
Employment Agreement dated as of __________, ____, between the undersigned and
Kennametal Inc., (ii) to any unreimbursed expense account or similar
out-of-pocket reimbursement amounts owing the undersigned, or (iii) under the
bylaws of Kennametal Inc. or the applicable state corporate statutes to
indemnification for having served as an officer and/or employee of Kennametal
Inc. and/or its subsidiaries.

DATE:____________________________     ___________________________<PAGE>   1
                                                                   EXHIBIT 10.23

                                    AGREEMENT

     THIS AGREEMENT, is made and entered into this 21st day of January, 2000, by
and between JLK DIRECT DISTRIBUTION INC., a corporation organized under the laws
of the Commonwealth of Pennsylvania (hereinafter referred to as "JLK" or the
"Corporation"), and RICHARD J. ORWIG, an individual (hereinafter referred to as
"Employee").

                                   WITNESSETH:

     WHEREAS, Employee acknowledges that by reason of employment by JLK, it is
anticipated that Employee will work with, add to, create, have access to and be
entrusted with trade secrets and confidential information belonging to JLK and
Kennametal Inc. ("Kennametal") which are of a technical nature or business
nature or pertain to future developments, the disclosure of which trade secrets
or confidential information would be highly detrimental to the interests of JLK
and Kennametal; and

     WHEREAS, in order to have the benefit of Employee's assistance, JLK is
desirous of continuing to employ Employee.

     NOW, THEREFORE, JLK and Employee, each intending to be legally bound
hereby, do mutually covenant and agree as follows:

1.   (a) Subject to the terms and conditions set forth herein, JLK hereby agrees
     to continue to employ Employee and Employee hereby accepts such continued
     employment and agrees to devote his full time and attention to the business
     and affairs of JLK, in such capacity or capacities and to perform to the
     best of his ability such services as shall be determined from time to time
     by the Board of Directors of JLK until the termination of his employment
     hereunder.

     (b) Employee's base salary, the size of bonus awards, if any, granted to
     him and other emoluments for his services, if any, shall be determined by
     the Board of Directors of JLK or its Executive Compensation Committee, as
     appropriate, from time to time in their sole discretion.

2. In addition to the compensation set forth or contemplated elsewhere herein,
Employee, subject to the terms and conditions of this Agreement, shall be
entitled to continue to participate in all group insurance programs, retirement
income (pension) plans, thrift plans and vacation and holiday programs normally
provided for other executives of Kennametal and its subsidiaries for so long as
JLK remains a subsidiary of Kennametal. Nothing herein contained shall be deemed
to limit or prevent Employee, during his employment hereunder, from being
reimbursed by JLK for out-of-pocket expenditures incurred for travel, lodging,
meals, entertainment expenses or any other expenses in accordance with the
policies of JLK applicable to the executives of JLK.

3. Employee's employment may be terminated with or without any reason for
termination by JLK or Employee at any time by giving the other party prior
written notice thereof; provided, however, that any termination on the part of
JLK shall occur only if specifically authorized by its Board of Directors;
provided, further, that termination by JLK for Cause (as hereinafter defined)
shall be made by written notice which states that it is a termination for Cause;
and provided, further, that termination by Employee, other than termination for
Good Reason (as hereafter defined) following a Change-in-Control (as hereafter
defined), shall be on not less than 30 days prior written notice to JLK.

4.   (a) In the event that Employee's employment is terminated by JLK prior to a
     Change-in-Control and other than for Cause, Employee will receive as
     severance pay from JLK, in addition to all amounts due him at the Date of
     Termination (as hereinafter defined), an amount, payable promptly after the
     Date of Termination, equal to three months' base salary at the annual rate
     in effect on the Date of Termination.

     (b) In the event that Employee's employment is terminated (i) due to the
     death of the Employee or (ii) by Employee following a Change-in-Control
     without Good Reason or (iii) by Employee prior to a Change-in-Control,
     Employee will not be entitled to receive any severance pay in addition to
     the amounts, if any, due him at the Date of Termination.
<PAGE>   2
     (c) In the event that at or after a Change-in-Control and prior to the
     third anniversary of the date of the Change-in-Control Employee's
     employment is terminated by Employee for Good Reason or by JLK other than
     for Cause or Disability pursuant to paragraph 5, Employee will receive as
     severance pay (in addition to all other amounts due him at the Date of
     Termination) from JLK an amount equal to the product of

          (i)  the lesser of

               (x) two and eight tenths (2.8),

               (y) a number equal to the number of calendar months remaining
               from the Date of Termination to the Employee's Retirement Date
               (as such term is hereafter defined) divided by twelve (12), or

               (z) a number equal to the product, if positive, obtained by
               multiplying (AA) thirty-six (36) less the number of completed
               months after the date of the Change-in-Control during which the
               Employee was employed and did not have Good Reason for
               termination times (BB) one-twelfth (1/12);

          times

          (ii) the sum of

               (x) Employee's base salary at the annual rate in effect on the
               Date of Termination (or, at Employee's election, at the annual
               rate in effect on the first day of the calendar month immediately
               prior to the Change-in-Control), plus

               (y) the average of any bonuses which Employee was entitled to or
               paid during the three most recent fiscal years ending prior to
               the Date of Termination (or, at Employee's election, the average
               of any bonuses which Employee was entitled to or paid for the
               three fiscal years preceding the fiscal year in which the
               Change-in-Control occurred).

          Such severance pay shall be paid by delivery of a cashier's or
     certified check to the Employee at JLK's executive offices on a date which
     is no later than five business days following the Date of Termination.

     (d) If Employee is entitled to receive the severance payment set forth in
     paragraph 4(c), Employee also will receive from JLK the same or equivalent
     medical, dental, disability and group insurance benefits as were provided
     to the Employee by JLK at the Date of Termination, which benefits shall be
     provided by JLK to Employee for a three year period commencing on the Date
     of Termination. Pursuant to the terms of Kennametal's various benefit
     plans, Employee will not following a Change-in-Control have any rights to
     receive from Kennametal or from any medical, dental, disability, group
     insurance, retirement or pension plan or other benefit plan maintained or
     sponsored by Kennametal any benefits or other sums other than (i) to
     receive from the Kennametal Inc. Retirement Income Plan and Kennametal's
     Supplemental Executive Retirement Plan any vested benefits to the extent
     and at the times payable under the terms of the Kennametal Inc. Retirement
     Income Plan and Kennametal's Supplemental Executive Retirement Plan, (ii)
     to receive from the Kennametal Inc. Thrift Plan any vested benefits to the
     extent and at the times payable under the terms of the Kennametal Inc.
     Thrift Plan and (iii) to exercise any stock options held under Kennametal's
     stock option plans to the extent, if any, exerciseable and in accordance
     with the terms of Kennametal's stock option plans.

          If for any reason, whether by law or provisions of any employee
     medical, dental or group insurance, or other benefit plan of JLK in which
     the Employee is eligible to participate, any benefits which the Employee
     would be entitled to under the foregoing paragraph of this subparagraph (d)
     cannot be paid pursuant to such employee benefit plans, then JLK hereby
     contractually agrees to pay to the Employee the difference between the
     benefits which the Employee would have received in accordance with the
     foregoing paragraph of this subparagraph (d) if the relevant employee
     medical, dental or group insurance or pension or retirement plan or other
     benefit plan could have paid such benefit and the amount of benefits, if
     any, actually paid by such employee medical, dental or group insurance or
     pension or retirement plan or other benefit plan. JLK shall not be required
     to fund its obligation to pay the foregoing difference.

          If Employee is entitled to receive the severance payment set forth in
     paragraph 4(c), JLK shall also make

                                      -2-
<PAGE>   3
     supplemental pension payments to Employee equal in amount to the difference
     between the pension payable to Employee pursuant to the terms of the
     Kennametal Inc. Retirement Income Plan and Kennametal's Supplemental
     Executive Retirement Plan (as both plans are in existence on the date of
     the Change-in-Control) and any increased pension which would have been
     payable to Employee under the terms of the Kennametal Inc. Retirement
     Income Plan and Kennametal's Supplemental Executive Retirement Plan (as
     both plans are in existence on the date of the Change-in-Control) assuming
     (i) JLK had remained a subsidiary of Kennametal and (ii) Employee had
     remained continuously in the employment of JLK for the three year period
     (or, if clause (i)(y) or clause (i)(z) of paragraph 4(c) is applicable to
     determine the severance payment to be made, the lesser period measured in
     years and fractions thereof rounded to the nearest one-twelfth which equals
     the number determined by clause (i)(y) or clause (i)(z) above, whichever is
     applicable) following the Date of Termination at an annual compensation
     equal to the sum of the base salary and bonus which were used to compute
     the severance payment due the Employee under the first paragraph of
     paragraph 4(c) and had attained the age of 60 at the end of such period.
     Such supplemental pension payments shall be paid by JLK to Employee ratably
     at the times when pension payments are made under the Kennametal Inc.
     Retirement Income Plan and Kennametal's Supplemental Executive Retirement
     Plan. JLK shall not be required to fund its obligation to pay the foregoing
     difference.

     (e) In the event of a termination of employment under the circumstances
     above described in paragraph 4(c), Employee shall have no duty to seek any
     other employment after termination of Employee's employment with JLK and
     JLK hereby waives and agrees not to raise or use any defense based on the
     position that Employee had a duty to mitigate or reduce the amounts due him
     hereunder by seeking other employment whether suitable or unsuitable and
     should Employee obtain other employment, then the only effect of such on
     the obligations of shall be that JLK shall be entitled to credit against
     any payments which would otherwise be made for medical, dental or group
     insurance or similar benefits (excluding, however, any credit against
     payments relating to pension or retirement benefits) pursuant to the
     benefit provisions set forth in paragraph 4(e) hereof, any comparable
     payments to which Employee is entitled under the employee benefit plans
     maintained by Employee's other employer or employers in connection with
     services to such employer or employers after termination of his employment
     with JLK.

     (f) The term "Change-in-Control" shall mean that all of the following
     conditions shall have occurred: (i) JLK is no longer a direct or indirect
     subsidiary of Kennametal, (ii) Kennametal and its affiliates no longer own
     any shares of Class B Common Stock of JLK and (iii) one or more persons
     (other than Kennametal or its subsidiaries) have acquired control of a
     nature that would be required to be reported by JLK in response to Item
     6(e) of Schedule 14A promulgated under the Securities Exchange Act of 1934
     as in effect on the date hereof (the "1934 Act"), or if Item 6(e) is no
     longer in effect, any regulations issued by the Securities and Exchange
     Commission pursuant to the 1934 Act which serve similar purposes; provided
     that, without limitation, the third condition set forth in subclause (iii)
     of this sentence shall be deemed to have occurred if (A) JLK shall be
     merged or consolidated with any corporation or other entity other than a
     merger or consolidation with a corporation or other entity all of whose
     equity interests are owned (1) by JLK immediately prior to the merger or
     consolidation or (2) by Kennametal and/or its subsidiaries if JLK is at the
     time of such merger or consolidation a direct or indirect subsidiary of
     Kennametal or if Kennametal and its affiliates at the time of such merger
     or consolidation own shares of Class B Common Stock of JLK, or (B) JLK
     shall sell all or substantially all of its operating properties and assets
     to another person, group of associated persons or corporation other than
     Kennametal or its subsidiaries.

     (g) For purposes of this Agreement "Date of Termination" shall mean:

          (i) if Employee's employment is terminated due to his death or
          retirement, the date of death or retirement, respectively; or

          (ii) if Employee's employment is terminated for any other reason, the
          date on which the termination becomes effective as stated in the
          written notice of termination given to or by the Employee.

     (h) The term "Good Reason" for termination by the Employee shall mean the
     occurrence of any of the following at or after a Change-in-Control:

          (i) without the Employee's express written consent, the assignment to
          the Employee of any duties materially and substantially inconsistent
          with his positions, duties, responsibilities and status with JLK
          immediately prior to a Change-in-Control, or a material change in his
          reporting responsibilities, titles or offices as in effect immediately
          prior to a Change-in-Control, or any removal of the Employee from or
          any

                                      -3-
<PAGE>   4
          failure to re-elect the Employee to any of such positions, except in
          connection with the termination of the Employee`s employment due to
          Cause or as a result of the Employee's death;

          (ii) a reduction by JLK in the Employee's base salary as in effect
          immediately prior to any Change-in-Control;

          (iii) a failure by JLK to continue to provide incentive compensation
          comparable to that provided by JLK immediately prior to any
          Change-in-Control;

          (iv) in the event of a Change-in-Control, the failure to continue in
          effect any benefit or compensation plan, stock option plan, pension
          plan, life insurance plan, health and accident plan or disability plan
          of JLK in which Employee is participating immediately prior to a
          Change-in-Control (provided, however, that there shall not be deemed
          to be any such failure (x) due to Employee's no longer participating
          in any plan of Kennametal or (y) if JLK substitutes for the
          discontinued plan, a plan providing Employee with substantially
          similar benefits) or the taking of any action by JLK which would
          adversely affect Employee's participation in or materially reduce
          Employee's benefits under any of such plans or deprive Employee of any
          material fringe benefit enjoyed by Employee immediately prior to a
          Change-in-Control;

          (v) the failure of JLK to obtain the assumption of this Agreement by
          any successor as contemplated in paragraph 11 hereof;

          (vi) the relocation of the Employee to a facility or a location more
          than 50 miles from the Employee's then present location, without the
          Employee's prior written consent; or

          (vii) any purported termination of the employment of Employee by JLK
          which is not for Cause as provided in paragraph 5.

     (i) Employee shall not be entitled to receive any severance payment from
     Kennametal and Kennametal shall have no obligation to pay any severance to
     Employee upon a termination of Employee's employment.

5. In the event that Employee (a) shall be guilty of malfeasance, willful
misconduct or gross negligence in the performance of the services contemplated
by this Agreement; or (b) shall not make his services available to JLK on a full
time basis in accordance with paragraph 1 hereof for any reason (including
Disability) other than arising from Employee's incapacity due to physical or
mental illness or injury which does not constitute Disability and other than by
reason of the fact Employee's employment has been terminated under the
circumstances described in paragraph 4(a); or (c) shall breach the provisions of
paragraph 8 hereof (each of the matters described in subparagraphs (a), (b) and
(c) shall be "Cause"), JLK shall have the right, exercised by resolution adopted
by a majority of its Board of Directors, to terminate Employee's employment for
Cause by giving written notice to Employee of its election so to do. In that
event, Employee's employment shall be deemed terminated for Cause, Employee
shall not be entitled to the benefits set forth in paragraph 4 which shall not
be paid or payable and JLK only shall have the obligation to pay Employee the
unpaid portion of Employee's base salary for the period from the last period
from which Employee was paid to the Date of Termination; provided, however, that
if Employee's employment is terminated as a result of the Disability of
Employee, the benefits set forth in paragraph 4 shall not be paid or payable but
Employee's employment by JLK shall not be deemed terminated for purposes of any
benefit plan of JLK. For purposes of this Agreement "Disability" shall mean such
incapacity due to physical or mental illness or injury which results in the
Employee's being absent from his principal office at JLK's offices for the
entire portion of 180 consecutive business days. Prior to a Change-in-Control, a
decision by the Board of Directors of JLK that "Cause" exists shall be in the
discretion of the Board of Directors and shall be final and binding upon the
Employee and his rights hereunder. After a Change-in-Control, "Cause" shall not
be deemed to include opposition by Employee to such a Change-in-Control or any
matter incidental thereto and any determination by the Board of Directors that
"Cause" existed shall not be final or binding upon the Employee or his rights
hereunder or entitled to any deference in any court or other tribunal.

6. Employee understands and agrees that, except to the extent Employee is
entitled to the benefits provided in paragraph 4(d) hereof, in the event
Employee resigns or his employment is terminated for any reason other than death
or Disability prior to his "Retirement Date" (as hereinafter defined), he will
forfeit any interest he may have in any retirement income plan (except to the
extent vested by actual service to date of separation as per the plan
provisions), and all other benefits dependent upon continuing service. The term
"Retirement Date" shall mean the first day of the month following the day on
which Employee attains his sixty-fifth birthday, or at Employee's request, any
other day that JLK's Board of Directors may approve in writing.

                                      -4-

<PAGE>   5
7. Nothing herein contained shall affect the right of Employee to participate in
and receive benefits under and in accordance with and to the extent provided for
in the then current terms and provisions of any retirement income,
profit-sharing, additional year-end or periodic remuneration or bonus, incentive
compensation, insurance or any other employee welfare plan or program of JLK
applicable to Employee and all payments hereunder shall be in addition to any
benefits received thereunder (including long term disability payments).

8. During the period of employment of Employee by JLK and for three years
thereafter, (provided, however, that this paragraph 8 shall not apply to the
Employee following a termination of Employee's employment (x) after a
Change-in-Control shall have occurred or (y) if Employee's employment is
terminated by JLK other than for Cause), he will not, in any geographic area in
which JLK (or Kennametal, if JLK on the Date of Termination is a subsidiary of
Kennametal) is offering its services and products, without the prior written
consent of JLK:

     (a) directly or indirectly engage in, or

     (b) assist or have an active interest in (whether as proprietor, partner,
     investor, shareholder, officer, director or any type of principal
     whatsoever), or

     (c) enter the employ of, or act as agent for, or advisor or consultant to,
     any person, firm, partnership, association, corporation or business
     organization, entity or enterprise which is or is about to become directly
     or indirectly engaged in, any business which is competitive with any
     business of JLK (or Kennametal, if JLK on the Date of Termination is a
     subsidiary of Kennametal) or any subsidiary or affiliate thereof in which
     Employee is or was engaged; provided, however, that the foregoing
     provisions of this paragraph 8 are not intended to prohibit and shall not
     prohibit Employee from purchasing, for investment, not in excess of 1% of
     any class of stock or other corporate security of any company which is
     registered pursuant to Section 12 of the 1934 Act.

     Employee acknowledges that the breach by him of the provisions of this
paragraph 8 would cause irreparable injury to JLK (or Kennametal, if JLK on the
Date of Termination is a subsidiary of Kennametal), acknowledges and agrees that
remedies at law for any such breach will be inadequate and consents and agrees
that JLK (or Kennametal, if JLK on the Date of Termination is a subsidiary of
Kennametal) shall be entitled, without the necessity of proof of actual damage,
to injunctive relief in any proceedings which may be brought to enforce the
provisions of this paragraph 8. Employee acknowledges and warrants that he will
be fully able to earn an adequate livelihood for himself and his dependents if
this paragraph 8 should be specifically enforced against him and that such
enforcement will not impair his ability to obtain employment commensurate with
his abilities and fully acceptable to him.

     If the scope of any restriction contained in this paragraph 8 is too broad
to permit enforcement of such restriction to its full extent, then such
restriction shall be enforced to the maximum extent permitted by law and
Employee and JLK (and Kennametal, if JLK on the Date of Termination is a
subsidiary of Kennametal) hereby consent and agree that such scope may be
judicially modified in any proceeding brought to enforce such restriction.

9. (a) Employee acknowledges and agrees that in the course of his employment by
JLK, Employee may work with, add to, create or acquire trade secrets and
confidential information of JLK or Kennametal ("Confidential Information") which
could include, in whole or in part, information:

          (i) of a technical nature such as, but not limited to, JLK's or
          Kennametal's manuals, methods, know-how, formulae, shapes, designs,
          compositions, processes, applications, ideas, improvements,
          discoveries, inventions, research and development projects, equipment,
          apparatus, appliances, computer programs, software, systems
          documentation, special hardware, software development and similar
          items; or

          (ii) of a business nature such as, but not limited to, information
          about JLK's or Kennametal's business plans, sources of supply, cost,
          purchasing, profits, markets, sales, sales volume, sales methods,
          sales proposals, identity of customers and prospective customers,
          identity of customers' key purchasing personnel, amount or kind of
          customers' purchases and other information about customers; or

          (iii) pertaining to future developments of JLK or Kennametal such as,
          but not limited to, research and development or future marketing or
          merchandising.

     Employee further acknowledges and agrees that (i) all Confidential
Information is the property of JLK and/or Kennametal; (ii) the unauthorized use,
misappropriation or disclosure of any Confidential Information would constitute
a breach of trust and could cause irreparable injury to JLK and/or Kennametal;
and (iii) it is essential to the protection of JLK's and/or Kennametal's good
will and to the maintenance of its competitive position that all Confidential
Information be kept

                                       -5-
<PAGE>   6
secret and that Employee not disclose any Confidential Information to others or
use any Confidential Information to the detriment of JLK or Kennametal.

     Employee agrees to hold and safeguard all Confidential Information in trust
for JLK and Kennametal, each of their successors and assigns and Employee shall
not (except as required in the performance of Employee's duties), use or
disclose or make available to anyone for use outside JLK's or Kennametal's
organization at any time, either during employment with JLK or subsequent
thereto, any of the Confidential Information, whether or not developed by
Employee, without the prior written consent of JLK and Kennametal.

     (b) Employee agrees that:

          (i) he will promptly and fully disclose to JLK or such officer or
          other agent as may be designated by JLK any and all inventions made or
          conceived by Employee (whether made solely by Employee or jointly with
          others) during employment with JLK (1) which are along the line of the
          business, work or investigations of JLK or Kennametal, or (2) which
          result from or are suggested by any work which Employee may do for or
          on behalf of JLK or Kennametal; and

          (ii) he will assist JLK (and Kennametal, if JLK on the Date of
          Termination is a subsidiary of Kennametal) and its nominees during and
          subsequent to such employment in every proper way (entirely at its or
          their expense) to obtain for its or their own benefit patents for such
          inventions in any and all countries; the said inventions, without
          further consideration other than such salary as from time to time may
          be paid to him by JLK as compensation for his services in any
          capacity, shall be and remain the sole and exclusive property of JLK
          (and Kennametal, if JLK on the Date of Termination is a subsidiary of
          Kennametal) or its nominee whether patented or not; and

          (iii) he will keep and maintain adequate and current written records
          of all such inventions, in the form of but not necessarily limited to
          notes, sketches, drawings, or reports relating thereto, which records
          shall be and remain the property of and available to JLK (and
          Kennametal, if JLK on the Date of Termination is a subsidiary of
          Kennametal) at all times.

     (c) Employee agrees that, promptly upon termination of his employment, he
     will disclose to JLK (or Kennametal, if JLK on the Date of Termination is a
     subsidiary of Kennametal), or to such officer or other agent as may be
     designated by JLK (or Kennametal, if JLK on the Date of Termination is a
     subsidiary of Kennametal), all inventions which have been partly or wholly
     conceived, invented or developed by him for which applications for patents
     have not been made and will thereafter execute all such instruments of the
     character hereinbefore referred to, and will take such steps as may be
     necessary to secure and assign to JLK (or Kennametal, if JLK on the Date of
     Termination is a subsidiary of Kennametal) the exclusive rights in and to
     such inventions and any patents that may be issued thereon any expense
     therefor to be borne by JLK.

     (d) Employee agrees that he will not at any time aid in attacking the
     patentability, scope, or validity of any invention to which the provisions
     of subparagraphs (b) and (c), above, apply.

10. In the event that (a) Employee institutes any legal action to enforce his
rights under, or to recover damages for breach of this Agreement, or (b) JLK
institutes any action to avoid making any payments due to Employee under this
Agreement, Employee, if he is the prevailing party, shall be entitled to recover
from JLK any actual expenses for attorney's fees and other disbursements
incurred by him in relation thereto.

11. The terms and provisions of this Agreement shall be binding upon Employee
and JLK, and shall inure to the benefit of, Employee, JLK and Kennametal (which
shall be deemed an express third party beneficiary of this Agreement) and their
subsidiaries and affiliates, and the parties respective successors and assigns.
The Employee's employment shall not be deemed terminated for purposes of this
Agreement if the Employee is employed by a successor to JLK, which successor
shall be deemed to be JLK for purposes of this Agreement.

12. This Agreement constitutes the entire agreement between the parties hereto
and supersedes all prior agreements and understandings, whether oral or written,
among the parties with respect to the subject matter hereof. Any prior
employment agreement between the Employee and Kennametal is hereby terminated
and Employee shall not be entitled to any severance or other benefits under any
prior employment agreement with Kennametal. This Agreement may not be amended
orally, but only by an instrument in writing signed by each of the parties to
this Agreement and consented to in writing by Kennametal. This Agreement does
not create any right to continued employment by JLK and the Employee shall
remain an "at will" employee of JLK.

                                      -6-
<PAGE>   7
13. The invalidity or enforceability of any provision of this Agreement shall
not affect the other provisions hereof, and this Agreement shall be construed in
all respects as if such invalid or unenforceable provision were omitted.

14. Any pronoun and any variation thereof used in this Agreement shall be deemed
to refer to the masculine, feminine, neuter, singular or plural, as the identity
of the parties hereto may require.

15. A condition to Employee's right to receive or receipt of any severance pay
or any benefits hereunder upon a termination of the Employee's employment shall
be for the Employee to execute and to deliver to JLK and Kennametal on or before
the making of any severance payment or providing of any benefit a release in the
form of Exhibit A attached hereto.

16. Not withstanding any other provision of this Agreement, in the event that
any payment or benefit received or to be received by Employee in connection with
a change in control of the Corporation or the termination of the Employee's
employment (whether pursuant to the terms of this Agreement or any other plan,
arrangement or agreement with the Corporation, or any person whose actions
result in a change in control or any person affiliated with the Corporation or
such person) (collectively, the "Total Payments") would not be deductible, in
whole or part, as a result of section 280G of the Internal Revenue Code of 1986
(the "Code") by the Corporation, an affiliate or other person making such
payment or providing such benefit, the payments due under this Agreement (the
"Contract Payments") shall be reduced until no portion of the Total Payments is
not deductible, or the Contract Payments are reduced to zero. In the event that
the Corporation or the affiliate or other person making such payment or
providing such benefit determines that the Total Payments would not be
deductible, in whole or part, as a result of section 280G of the Code, the
Corporation or the affiliate or other person making such payment or providing
such benefit shall immediately notify Employee of this determination and the
amount which would not be so deductible as well as a computation of Total
Payments. Employee shall have five (5) business days after receipt of the
foregoing notice and computation to waive in writing all or any portion of any
of the Total Payments and any portion of the Total Payments the receipt or
enjoyment of which Employee shall have effectively waived in writing shall not
be taken into account (and, if the Corporation had already withheld any Contract
Payments prior to receipt of such waiver, the Corporation upon receipt of such
waiver shall immediately pay to Employee any withheld Contract Payments which
would have been paid had the Corporation had the Employee's written waiver prior
to the date the Corporation withheld any such payments). For purposes of this
limitation (i) no portion of the Total Payments shall be taken into account
which in the opinion of tax counsel selected by the Corporation's independent
auditors and acceptable to Employee does not constitute a "parachute payment"
within the meaning of section 280G(b)(2) of the Code, (ii) the Contract Payments
shall be reduced only to the extent necessary so that the Total Payments (other
than those Contract Payments which are waived in writing by the Employee or
referred to in clause (i)) in their entirety constitute reasonable compensation
for services actually rendered within the meaning of section 280G(b)(4) of the
Code or are otherwise not subject to disallowance as deductions, in the opinion
of the tax counsel referred to in clause (i); and (iii) the value of any
non-cash benefit or any deferred payment or benefit included in the Total
Payments shall be determined by the Corporation's independent auditors in
accordance with the principles of section 280G(d)(3) and (4) of the Code.

17. This Agreement shall be governed by the laws of the Commonwealth of
Pennsylvania without regard to its conflicts or choice of law provisions.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -7-
<PAGE>   8
     WITNESS the due execution hereto the day and year first above written.

ATTEST:                      JLK DIRECT DISTRIBUTION INC.

/s/ Kevin G. Nowe            By: /s/ Diana L. Scott
------------------------         ---------------------------------------------
                             Name: Diana L. Scott
                                  --------------------------------------------
                             Title: Vice President and Chief Financial Officer
                                    ------------------------------------------

WITNESS:                     RICHARD J. ORWIG, EMPLOYEE:
/s/ John Beaudoin            /s/ Richard J. Orwig                       (SEAL)
------------------------     -------------------------------------------------

                                      -8-
<PAGE>   9
                                                                       Exhibit A

                                     RELEASE

         KNOW ALL MEN BY THESE PRESENTS that the undersigned for good and
valuable consideration, the receipt of which is hereby acknowledged, and
intending to be legally bound, hereby releases, remises, quitclaims and
discharges completely and forever JLK Direct Distribution Inc. and Kennametal
Inc. and each of their respective directors, officers, employees, subsidiaries
and affiliates from any and all claims, causes of action or rights which the
undersigned has or may have, whether arising by virtue of contract or of
applicable state laws or federal laws, and whether such claims, causes of action
or rights are known or unknown; provided, however, that this Release shall not
release, remise, quitclaim or discharge any claims, causes of action or rights
which the undersigned may have (i) under that certain Employment Agreement dated
January 21, 2000 between the undersigned and JLK Direct Distribution Inc., (ii)
to any unreimbursed expense account or similar out-of-pocket reimbursement
amounts owing the undersigned, or (iii) under the bylaws of JLK Direct
Distribution Inc. or Kennametal Inc. or the applicable state corporate statutes
to indemnification for having served as an officer and/or employee of Kennametal
Inc. and/or its subsidiaries or JLK Direct Distribution Inc., and/or its
subsidiaries.

DATE: January 21, 2000                           /s/ Richard J. Orwig
      --------------------------                 --------------------

                                      -9-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00015-of-00352.parquet"}]]