Document:

exv10w3

Exhibit 10.3

[FORM OF OPTION CANCELLATION LETTER]

October 14, 2010

[Optionee]

[Address]

	 	Re: 	 Your Options under the Hawk Corporation 1997 Stock Option Plan and/or the Hawk Corporation
Amended and Restated 2000 Long-Term Incentive Plan

Dear [________]:

As you know, Hawk Corporation is negotiating an agreement and plan of merger with Carlisle
Companies Incorporated (“Carlisle”) and HC Corporation (the “Merger Agreement”). The Merger
Agreement will provide, among other things, that Carlisle will commence a tender offer to purchase
all of the outstanding shares of Class A common stock of Hawk (the “Shares”) at a price of $50.00
in cash per share (the “Offer”). Following the consummation of the Offer, HC Corporation would
merge with and into Hawk and Hawk will become a wholly-owned subsidiary of Carlisle and each share
of Class A common stock of Hawk that was not tendered in the Offer would thereupon be cancelled and
converted into the right to receive $50.00 in cash (the “Merger”). The Merger would affect the
stock options you have been granted (the “Options”) under the Hawk Corporation 1997 Stock Option
Plan or the Hawk Corporation Amended and Restated 2000 Long-Term Incentive Plan (the “Plans”). The
treatment of your Options in connection with the Merger is explained below.

Under the Merger Agreement, your Options will be cancelled and you will receive a single lump sum
cash payment equal to the net value of all your outstanding Options, whether vested or unvested.
In other words, for each Share you are eligible to purchase under an Option agreement, you would be
entitled to receive $50.00 less the per share exercise price, less applicable federal and state
withholding taxes (the “Cash-Out Payment”). For example, if on the date the Merger is completed
you hold an Option to purchase 100 Shares and the exercise price is $5.00 per Share, you would
receive a Cash-Out Payment equal to $45.00 per Option Share ($50.00 – $5.00) for a total of
$4,500.00, less applicable withholding taxes.

According to our records, upon cancellation of your Options, you would be entitled to receive a
Cash-Out Payment of $___________, less applicable withholding taxes. Exhibit A attached
hereto shows each of your currently outstanding Options, and how your payment was calculated.
Please carefully review Exhibit A and contact Tom Gilbride, at tgilbride@hawkcorp.com or
216-861-3559 if you believe it does not accurately reflect the number of Options you hold or the
per share exercise price of the Options. The Cash-Out Payment will be made promptly following the
completion of the Merger. In the event that the Merger is not completed, your Options will not be
cancelled and you will not receive any cash payment for them.

 

 

Finally, please note that prior to the closing of the Offer, you may exercise your vested Options
in accordance with their terms and the standard procedures for exercising Option established by
Hawk, including Hawk’s trading window policy, the insider trading policy and Federal securities
laws in general. All of your Options will vest upon the closing of the Offer and you may exercise
your vested Options after the Offer, and prior to the Merger, in accordance with their terms and
the standard procedures for exercising Option established by Hawk, including Hawk’s trading window
policy, the insider trading policy and Federal securities laws in general. The current terms and
standard procedures applicable to your Options also continue to apply in the event you die or
otherwise terminate your employment or relationship with Hawk prior to the closing of the Merger.
If you wish to exercise vested Options prior to the Merger, please consult your personal tax
advisor. If you are a company insider, remember that all such exercises must be pre-cleared by Tom
Gilbride.

If you agree to the cancellation of your Options in exchange for your Cash-Out Payment, please sign
this letter below and return it to me as soon as possible.

Sincerely,

HAWK CORPORATION

Thomas A. Gilbride

Vice President — Finance

	 	 	 	 	 
	AGREED AND ACCEPTED
 	 
	 
	 	 
	[Option Holder Name] 	 

Dated: October __, 2010exv10w4

Exhibit 10.4

AMENDMENT TO AGREEMENTS

     THIS AMENDMENT TO AGREEMENTS (this “Amendment”) is made and entered into as of this 14th day
of October, 2010, by and between HAWK CORPORATION, a Delaware corporation (“Hawk” or the
“Company”), FRICTION PRODUCTS CO., an Ohio corporation (“Friction”), and RONALD E. WEINBERG
(“Weinberg”).

RECITALS

     A. Hawk, Friction and Weinberg are parties to a certain Amended and Restated Employment
Agreement, dated as of March 31, 2009, with respect to Weinberg’s employment by Hawk and Friction
as Hawk’s Chief Executive Officer and/or Chairman of the Board for a period which terminates on
December 31, 2014 (the “Employment Agreement”).

     B. Hawk and Weinberg are parties to a certain Split-Dollar Agreement, dated as of January 23,
1998, as amended by First Amendment to Split-Dollar Agreement, dated as of December 30, 2008, with
respect to two life insurance policies with Massachusetts Mutual Life (the “Split-Dollar Agreement”
and collectively with the Employment Agreement, the “Agreements”).

     C. Hawk has entered into an Agreement and Plan of Merger, dated as of even date herewith
(“Merger Agreement”), pursuant to which Hawk will become a wholly-owned subsidiary of Carlisle
Companies Incorporated at the Effective Time (as that term is defined in the Merger Agreement) (the
“Transaction”).

     D. Hawk and Weinberg anticipate the termination of Weinberg’s employment with Hawk and
Friction post-Transaction.

     E. In connection with the Transaction and immediately after the Effective Time (as that term
is defined in the Merger Agreement), Hawk, Friction and Weinberg desire to terminate Weinberg’s
employment with Hawk and Friction, the Employment Agreement and the Split-Dollar Agreement and
provide for Weinberg to receive (i) $1.6 million in a lump sum payment (the “Severance Payment”),
(ii) the use of his current administrative assistant, his current office at Hawk’s corporate
headquarters in downtown Cleveland and his current email account until June 30, 2011, (iii) the
continuation of his medical benefits for his COBRA period, and (iv) the assignment of the policies
under the Split-Dollar Agreement without any payment (including applicable taxes) by Weinberg in
exchange for the termination of the Employment Agreement.

     ACCORDINGLY, in consideration of the promises hereinafter set forth in this Agreement, the
parties agree as follows:

     1. One business day following the Effective Time, as that term is defined in the Merger
Agreement (the “Employment Agreement Termination Date”), Weinberg’s employment with Hawk and
Friction shall terminate and Hawk shall:

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     (a) pay to Weinberg the Severance Payment in immediately available funds, less any
applicable withholding taxes;

     (b) cause Weinberg to have, until June 30, 2011, (i) the use of his current
administrative assistant (even if Weinberg is working from a location different from (ii)),
(ii) the use of his current office at Hawk’s corporate headquarters in downtown Cleveland,
and (iii) the access to Hawk’s email system with his current email address, each at no cost
to Weinberg;

     (c) provided that Weinberg timely elects COBRA, continue to provide medical coverage at
the same level to which Weinberg is currently entitled under the existing Hawk medical plans
for the duration of Weinberg’s COBRA period and pay for Weinberg’s COBRA premiums;

     (d) allow Weinberg to retain his cell phone, his cell phone number, his computer, all
personal property in his office, and the phone numbers 216-861-4540 and 216-861-4541;

     (e) assign Massachusetts Mutual Life policy numbers 6251966 and 71395270 in the face
amounts of $3,800,000 and $271,397, respectively (the “Policies”) to Weinberg pursuant to
Section 10(a) of the Split-Dollar Agreement and all right, title and interest in and to the
Policies shall be transferred to Weinberg (the “Assignment”); and

     (f) make the Assignment, pursuant to the Irrevocable Assignment attached hereto as
Exhibit A, based on the current cash surrender value of the Policies under Section
10(a) of the Split-Dollar Agreement, without any payment from Weinberg, net of any tax
obligations of Weinberg arising from the Assignment.

For purposes of clauses (b), (c) and (d) above, to the extent such benefits must be imputed as
taxable income to Weinberg, Weinberg is responsible for all applicable taxes. For purposes of
clauses (e) and (f) above, Hawk and Weinberg agree that the value of the Assignment as determined
by Hawk is approximately $781,000 (such amount to be finally determined on the Employment Agreement
Termination Date which final amount shall be net of any tax obligations of Weinberg arising from
the Assignment), and such value is less than the aggregate dollar amount of all of the benefits
that Weinberg has agreed to forego in connection with the termination of the Employment Agreement
and the Split-Dollar Agreement, pursuant to Section 2 of this Amendment.

     2. In consideration of the payments and promises in Section 1 of this Amendment, as of the
Employment Agreement Termination Date, (a) the Employment Agreement will terminate and be of no
further effect, except for Sections 8, 9, 10, 11, 12 and 13 of the Employment Agreement (which
sections shall survive termination), and (b) the Split-Dollar Agreement will terminate and be of no
further effect.

     3. This Amendment shall be of no force and effect in the event the Transaction is not
consummated and the Effective Time does not occur.

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     4. Except for the payments and promises in Section 1 of this Amendment and as may be necessary
to enforce the provisions of the Employment Agreement that survive pursuant to Section 2 of this
Amendment, upon the Employment Agreement Termination Date, Weinberg hereby releases and waives any
and all claims he might have to any compensation or benefits pursuant to the Employment Agreement
or the Split-Dollar Agreement or arising out of or related to termination of the employment
relationship between Weinberg and Hawk and Friction.

     5. Nothing in this Amendment shall interfere or diminish in any manner any rights to
indemnification, advancement of expenses, be held harmless, or directors’ and officers’ insurance
or any similar rights of Weinberg under Hawk’s Second Amended and Restated Certificate of
Incorporation, Hawk’s Amended and Restated By-laws, the Merger Agreement or otherwise.

     6. The parties intend that the validity, performance and enforcement of this Amendment shall
be governed by the laws of the State of Ohio. In the event of any claim arising out of or related
to this Amendment, or the breach thereof, the parties intend to and hereby confer jurisdiction to
enforce the terms of this Amendment upon the courts of any jurisdiction within the State of Ohio,
and hereby waive any objections to venue in said courts.

     7. This Amendment shall inure to the benefit of and be binding upon the parties hereto, their
heirs, representatives and successors.

     8. This Amendment may be executed in any number of counterparts, each of which, when executed,
shall be deemed to be an original and all of which together shall be deemed to be one and the same
instrument.

<Signature page follows>

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     IN WITNESS WHEREOF, the undersigned have hereunto set their hand as of the date first written
above.

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	HAWK CORPORATION	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	By:

	 	/s/ Byron S. Krantz
	 	 	 	/s/ Ronald E. Weinberg	 
	 

	 	 
	 	 	 	 	 
	 

	 	Byron S. Krantz 

Secretary
	 	 	 	RONALD E. WEINBERG	 
	 
	 	 	 	 	 	 	 
	FRICTION PRODUCTS CO.	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	By:

	 	/s/ Byron S. Krantz	 	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Byron S. Krantz 

Secretary	 	 	 	 	 

[Signature page: Amendment to Agreements]

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EXHIBIT A

IRREVOCABLE ASSIGNMENT OF SPLIT-DOLLAR POLICIES

THIS ASSIGNMENT, dated this      
                day of   
                   
                   ,
                    .

WITNESSETH THAT:

WHEREAS, HAWK CORPORATION (the “Company”) and Ronald E. Weinberg (“Weinberg”) are parties to that
certain Split-Dollar Agreement, dated as of January 23, 1998, as amended (the “Agreement”), which
Agreement confers upon Weinberg certain rights and benefits with regard to one or more policies of
insurance insuring Weinberg’s life;

WHEREAS, Weinberg and the Company have entered into an Amendment to Agreements, dated as of October
14, 2010 (the “Amendment”) pursuant to which the Company will assign Massachusetts Mutual Life
policy numbers 6251966 and 71395270 in the face amounts of $3,800,000 and $271,397, respectively
(the “Policies”) to Weinberg pursuant to Section 10(a) of the Agreement and all right, title and
interest in and to the Policies shall be transferred to Weinberg (the “Assignment”);

NOW, THEREFORE, pursuant to the Amendment, the Company, hereby absolutely and irrevocably assigns,
gives, grants and transfers to Weinberg all of the right, title and interest in and to the
Policies, intending that, from and after this date, the Company Assignor shall neither have nor
retain any right, title or interest therein or have any further obligations under the Policies.

	 	 	 	 	 	 	 

	 	 	HAWK CORPORATION	 	 
	 	 	the Assignor	 	 
	 
	 	 	 	 	 	 
	 	 	   	 	 
	 

	 	By:	 	 	 	 
	 

	 	Its:	 	 	 	 

ACCEPTANCE OF ASSIGNMENT

     Ronald E. Weinberg hereby accepts the above assignment of all right, title and interest of the
Policies and assumes all obligations under the Policies.

	 	 	 	 	 	 	 	 	 

	 

	 	 	 	 	 	 

“Assignee”
	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 

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