Document:

ex10-2.htm

    Exhibit
10.2

    [Kaydon
Letterhead]

    

    [Executive
Officer]

    

    Re:           Change
in Control Compensation Agreement

    

    Dear
_________:

    

    You are a
party to a Change in Control Compensation Agreement dated ________, 20__ with
Kaydon Corporation (“Kaydon”), which provides for certain payments upon your
termination following a Change in Control, as defined therein.  You
are also a participant under the Kaydon Executive Management Bonus Program, as
amended (the “Bonus Program”).

     

    Pursuant
to your Change in Control Compensation Agreement, if payments are triggered as a
result of your termination following a Change in Control, you are entitled to,
among other things, payment of (a) an amount equal to [one/three] times the
greater of (i) the average bonus payable to you over the most recent three year
fiscal period (or the period during which you have been employed by Kaydon if
less than three years) or (ii) your target bonus for the year in which the
termination of employment occurs and (b) a pro rated bonus for each month or
partial month in the current fiscal year prior to the month of termination,
based on the greater of (i) the projected incentive compensation plan award for
the year in which termination of employment occurs or (ii) the incentive
compensation plan award to you for the most recently ended
year.  Further, pursuant to the Bonus Program, if a Change in Control,
as defined by the Bonus Program, occurs you will be entitled under Section 8(b)
of the Bonus Program to payment of a pro rated bonus for the fiscal year in
which the Change in Control occurs, whether or not your employment
terminates.

     

    By
execution of this letter you confirm and acknowledge that the operation of your
Change in Control Compensation Agreement and the Bonus Program is not intended
to result in a double payment of bonus amounts to you for the fiscal year in
which a Change in Control occurs, if you are terminated following such Change in
Control during such same fiscal year.  Therefore, by execution of this
Letter Agreement you hereby confirm and acknowledge that any bonus amount paid
pursuant to Section 2b.i.B. of the Change in Control Compensation Agreement
shall be made net of any pro rated bonus amount previously paid to you pursuant
to Section 8(b) of the Bonus Program that is attributable to the same fiscal
year in which you are terminated following a Change in Control.

     

    To the
extent necessary to give effect to the terms set forth herein, this Letter
Agreement shall be considered an amendment of your Change in Control
Compensation Agreement.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    
      
        	 	Very
      truly yours, 	 
	 
      	 
      	 
      
	 
      	KAYDON
      CORPORATION  	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	
                Name:

              	 
      	 
      
	 
      	
                Title:

              	 
      	 
      

      

       

    Acknowledged
and accepted   ________, 20__

    

    ___________________________________

    Name:ex10-3.htm

    Exhibit
10.3

    [Kaydon
Letterhead]

    

    

    James
O’Leary

    

    Re:           Employment
Agreement

    

    Dear Mr.
O’Leary:

    

    You are a
party to an Employment Agreement dated March 23, 2007 and amended on February
14, 2008 with Kaydon Corporation (“Kaydon”), which provides for certain payments
upon your termination including following a Change in Control, as defined
therein.  You are also a participant under the Kaydon Executive
Management Bonus Program, as amended (the “Bonus Program”).

     

    Pursuant
to Sections 4 and 5(b) of the Employment Agreement, upon certain events of
termination, including certain termination events following a Change in Control,
you are entitled to, among other things, payment of a pro rated bonus for the
fiscal year in which termination occurs.  Further, pursuant to the
Bonus Program, if a Change in Control, as defined by the Bonus Program, occurs
you will be entitled under Section 8(b) of the Bonus Program to payment of a pro
rated bonus for the fiscal year in which the Change in Control occurs, whether
or not your employment terminates.

     

    By
execution of this letter you confirm and acknowledge that the operation of your
Employment Agreement and the Bonus Program is not intended to result in a double
payment of bonus amounts to you upon termination or for the fiscal year in which
a Change in Control occurs, if you are terminated following such Change in
Control during the same fiscal year.  Therefore, by execution of this
Letter Agreement you hereby confirm and acknowledge that any bonus amounts paid
pursuant to Section 5(b) of the Employment Agreement shall be calculated taking
into account, and net of, any pro rated bonus amount previously paid to you
pursuant to the Bonus Program, including under Section 8(b) of the Bonus
Program, to the extent such amount is attributable to the same fiscal year in
which you are terminated.  Further, to the extent your Employment
Agreement specifies treatment of payments under the Bonus Plan upon any of the
termination events described in Section 8(a) of the Bonus Plan, the provisions
of Section 8(a) of the Bonus Plan shall not apply to you and the Employment
Agreement will control.

     

    To the
extent necessary to give effect to the terms set forth herein, this Letter
Agreement shall be considered an amendment of your Employment
Agreement.

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    
      
        	 	Very
      truly yours,	 
	 
      	 
      	 
      
	 
      	KAYDON
      CORPORATION  	 
      
	 
      	 
      	 
      
	 
      	
                By:

              	 
      	 
      
	 
      	
                Name:

              	 
      	 
      
	 
      	
                Title:

              	 
      	 
      

      

       

    

    Acknowledged
and accepted   ________, 20__

    

    ___________________________________

    Name:ex10-4.htm

    Exhibit
10.4

    

    KAYDON
CORPORATION

    2003
NON-EMPLOYEE DIRECTORS EQUITY PLAN

    (Amended
and Restated Effective May 6, 2008)

    

    1.           Establishment, Purpose and Term of
Plan.  This Kaydon Corporation 2003 Non-Employee Directors
Equity Plan (the “Plan”) shall be effective as of the date of its approval by
the stockholders of the Company (the “Effective Date”).  The purpose
of this Plan is to advance the interests of the Company and its stockholders by
providing an incentive to attract and retain highly qualified persons to serve
as Non-Employee Directors of the Company and by creating additional incentives
for Non-Employee Directors to promote the growth and profitability of the
Company.  This Plan shall continue in effect until the earlier of its
termination by the Board or the date on which all of the shares of Stock
available for issuance under the Plan have been issued and all restrictions on
such shares under the terms of the Plan and the agreements evidencing Options
granted under the Plan have lapsed.

     

    2.           Definitions and
Construction.  Whenever used herein, the following terms shall
have their respective meanings set forth below:

     

    “Board”
means the Board of Directors of the Company.

     

    “Change
in Control” means the occurrence of any of the following events:

     

    (a)           50%
Stock.  The acquisition, by a person or Persons Acting as a
Group, of stock of the Company that together with stock held by such person or
group constitutes more than 50% of the total fair market value or total voting
power of the stock of Company;

     

    (b)           35%
Stock.  The acquisition, by a person or Persons Acting as a
Group, of ownership of stock of the Company that constitutes 35% or more of the
total voting power of Company’s stock in a single transaction or within a twelve
month period ending with the most recent acquisition;

     

    (c)           Directors.  The
majority of members of the Board being replaced during any twelve month period
by directors whose appointment or election is not endorsed by a majority of the
members of the Board prior to the date of appointment or election;

     

    (d)           Assets.  The
acquisition, by a person or Persons Acting as a Group, of the Company’s assets
that have a total gross fair market value equal to or exceeding forty percent
(40%) of the total gross fair market value of Company’s assets in a single
transaction or within a twelve month period ending with the most recent
acquisition.  For the purpose of this section, gross fair market value
means the value of the assets of the corporation, or the value of the assets
being disposed of, determined without regard to any liabilities associated with
such assets; or

     

    (e)           Merger.  A
reorganization, merger or consolidation of the Company, the substantive effect
of which is a Change in Control under any of subsections (a), (b), (c) or (d)
above, unless with or into a Permitted Successor.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    “Code”
means the Internal Revenue Code of 1986, as amended, and any applicable
regulations promulgated thereunder.

     

    “Committee”
means the Compensation Committee of the Board, or any other committee of the
Board duly appointed to administer the Plan and having such powers as shall be
specified by the Board.  Unless the powers of the Committee have been
specifically limited, the Committee shall have all of the powers of the Board
granted herein, including, without limitation, the power to amend or terminate
the Plan at any time, subject to the terms of the Plan and any applicable
limitations imposed by law.

     

    “Company”
means Kaydon Corporation, a Delaware corporation, or any successor corporation
thereto.

     

    “Continuing
Directors” are the individuals constituting the Board as of the date this
Amended and Restated Plan was adopted by the Board and any subsequent directors
whose election or nomination for election by the Company’s stockholders was
approved by a vote of two-thirds of the individuals who are then Continuing
Directors, but specifically exclud­ing any individual whose initial
assumption of office occurs as a result of either an actual or threatened
election contest (as the term is used in Rule 14a-11 of Regula­tion 14A
issued under the  Exchange Act) or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board.

     

    “Disability”
means the Non-Employee Director: (i) is unable to engage in any substantial
gainful activity by reason of any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last
for a continuous period of not less than 12 months; or (ii) is, by reason of any
medically determinable physical or mental impairment which can be expected to
result in death or can be expected to last for a continuous period of not less
than 12 months, receiving income replacement benefits for a period of not less
than 3 months under an accident and health plan covering employees of the
Company.  To the extent required hereunder, the determination of
Disability shall be made by a medical board certified physician selected by the
Company and acceptable to the Non-Employee Director (or the Non-Employee
Director’s legal representative, if one has been appointed), provided such
agreement as to acceptability shall not be unreasonably withheld..

     

    “Employee
Benefit Plan” means any plan or program established by the Company or a
Subsidiary for the compensation or benefit of employees of the Company or any of
its Subsidiaries.

     

    “Exchange
Act” means the Securities Exchange Act of 1934, as amended.

     

    “Excluded
Holder” means any Person who at the time this Amended and Restated Plan was
adopted by the Board was the beneficial owner of 20% or more of the outstanding
common stock of the Company; or the Company, a Subsidiary or any Employee
Benefit Plan of the Company or a Subsidiary or any trust holding such common
stock or other securities pursuant to the terms of an Employee Bene­fit
Plan.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Fair
Market Value” means, as of any date, if there is then a public market for the
Stock, the closing price of the Stock as reported on the New York Stock Exchange
(“NYSE”) or such other national or regional securities exchange or market system
constituting the primary market for the Stock.  If the relevant date
does not fall on a day on which the Stock is trading on NYSE or other national
or regional securities exchange or market system, the date on which the Fair
Market Value shall be established shall be the last day on which the Stock was
so traded prior to the relevant date.  If there is then no public
market for the Stock, the Fair Market Value on any relevant date shall be as
determined by the Committee without regard to any restriction other than a
restriction which, by its terms, will never lapse.

     

    “Option”
means a right to purchase Stock, subject to adjustment as provided in Section
4(b), pursuant to the terms and conditions of this Plan.

     

    “Optionee”
means a person who has been granted one or more Options.

     

    “Option
Agreement” means a written agreement between the Company and an Optionee setting
forth the terms, conditions and restrictions of an Option granted to an
Optionee.

     

    “Non-Employee
Director” means a Director of the Company who meets the qualifications set forth
in Rule 16b-3(b)(3)(i).

     

    “Permitted
Successor” means a corporation which, immediately following the consummation of
a transaction specified in the definition of “Change in Control” above,
satisfies each of the following criteria:

     

    (a)           Stock.  Sixty
percent or more of the outstanding common stock of the corporation and the
combined voting power of the outstanding securities of the corporation entitled
to vote generally in the election of directors (in each case determined
immediately following the consummation of the applicable transaction) is
beneficially owned, directly or indirectly, by all or substantially all of the
Persons who were the beneficial owners of Company’s outstanding common stock and
outstanding securities entitled to vote generally in the election of directors
(respectively) immediately prior to the applicable transaction;

     

    (b)           Limitation.  No
Person other than an Excluded Holder beneficially owns, directly or indirectly,
20% or more of the outstanding common stock of the corporation or the combined
voting power of the outstanding securities of the corporation entitled to vote
generally in the election of directors (for these purposes the term Excluded
Holder shall include the corporation, any subsidiary of the corporation and any
Employee Benefit Plan of the corporation or any such subsidiary or any trust
holding common stock or other securities of the corporation pursuant to the
terms of any such Employee Benefit Plan); and

     

    (c)           Board.  At
least a majority of the board of directors is comprised of Continuing
Directors.

     

    “Person”
has the same meaning as set forth in Sections 13(d) and 14(d)(2) of the Exchange
Act.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Persons
Acting as a Group” means owners of a corporation that enters into a merger,
consolidation, purchase or acquisition of stock (or assets), or similar business
transaction with the Company. If a person, including an entity, owns stock in
both corporations that enter into a merger, consolidation, purchase or
acquisition of stock (or assets), or similar transaction, such shareholder is
considered to be acting as a group with other shareholders in a corporation
prior to the transaction giving rise to the change and not with respect to the
ownership interest in the other corporation.  Persons will not be
considered to be acting as a group solely because they purchase or own stock of
the same corporation at the same time or as a result of the same public
offering, or purchase assets of the same corporation at the same
time.

     

    “Restricted
Stock” means any shares of Stock granted under Section 5(c) of this
Plan.

     

    “Restricted
Stock Agreement” means a written agreement between the Company and a
Non-Employee Director setting forth the terms, conditions and restrictions
relating to Shares of Restricted Stock granted to such director.

     

    “Retirement”
means a voluntary Termination of Service by a Non-Employee Director that occurs
on or after the director’s sixty-fifth (65th)
birthday.

     

    “Rule
16b-3” means Rule 16b-3 as promulgated under the Exchange Act, as amended from
time to time, or any successor rule or regulation.

     

    “Stock”
means the common stock, par value $0.10 per share, of the Company, as adjusted
from time to time in accordance with Section 4(b).

     

    “Subsidiary”
means any corporation or other entity of which 50% or more of the outstanding
voting stock or voting ownership interest is directly or indirectly owned or
controlled by the Company or by one or more Subsidiaries of the
Company.

     

    “Termination
of Service” means a cessation of the director’s service on the Board for any
reason, including, but not limited to, a cessation of service due to
resignation, death, Disability, Retirement or non-reelection to the
Board.

     

    3.           Administration.  This
Plan shall be administered by the Committee.  All questions of
interpretation of the Plan or of any Option or Restricted Stock shall be
determined by the Committee, and such determinations shall be final and binding
upon all persons having an interest in the Plan or such Option or Restricted
Stock.  Except as otherwise provided herein, the Committee shall have
no authority, discretion, or power to (a) select the Non-Employee Directors who
will receive Options, (b) set the exercise price of the Options, (c) determine
the number of shares of Stock to be subject to an Option, (d) determine the
number of shares of Restricted Stock to be granted, (e) determine the time at
which an Option or shares of Restricted Stock shall be granted, (f) establish
the duration of an Option, or (g) alter any other terms or conditions specified
in the Plan, except in the sense of administering the Plan subject to the
provisions of the Plan.

     

    4.           Shares Subject to
Plan.

     

    (a)           Maximum Number of Shares
Issuable.  Subject to adjustment as provided in Section 4(b),
the maximum aggregate number of shares of Stock that may be

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    issued
under the Plan, pursuant to Options or in the form of Shares of Restricted Stock
awarded hereunder, shall be three hundred thousand (300,000) and shall consist
of authorized but unissued shares or reacquired shares of Stock or any
combination thereof.  If an outstanding Option for any reason expires
or is terminated or canceled or if shares of Restricted Stock are forfeited for
any reason, the shares of Stock allocable to the unexercised portion of such
Option, or such forfeited shares of Restricted Stock shall again be available
for issuance under this Plan.

     

    (b)           Adjustments for Changes in Capital
Structure.  In the event of any stock dividend, stock split,
reverse stock split, recapitalization, combination, reclassification or similar
change in the capital structure of the Company, appropriate adjustments shall be
made in the number and class of shares subject to this Plan, to any outstanding
Options (including their exercise price), to any previously issued shares of
Restricted Stock and to the number of Options or Shares of Restricted Stock that
may be granted pursuant to Section 5.  If a majority of the shares
which are of the same class as the shares that are subject to outstanding
Options are exchanged for, converted into, or otherwise become (whether or not
pursuant to a Change in Control) shares of another corporation (the “New
Shares”), the Committee may unilaterally amend the outstanding Options to
provide that such Options are exercisable for New Shares.  In the
event of any such amendment, the number of shares subject to, and the exercise
price of, the outstanding Options shall be adjusted in a fair and equitable
manner as determined by the Committee, in its sole
discretion.  Notwithstanding the foregoing, any fractional share
resulting from an adjustment pursuant to this Section 4(b) shall be rounded down
to the nearest whole number, and in no event may the exercise price of any
Option be decreased to an amount less than the par value, if any, of the stock
subject to the Option.

     

    5.           Automatic Grant of Options and/or
Restricted Stock.

     

    (a)           Options.  Options
shall be granted only to a person who, at the time of grant, is a Non-Employee
Director.  Options shall be nonstatutory stock options, which means
that they will not be treated as “incentive stock options” within the meaning of
Section 422(b) of the Code.

     

    (b)           Initial Option
Grant.  Subject to execution by a Non-Employee Director of an
Option Agreement, a person who first becomes a Non-Employee Director within the
six month period immediately following an annual meeting of the Company’s
stockholders shall be granted an initial Option to purchase five thousand
(5,000) shares of Stock as of the date such person is initially elected or
appointed (the “Initial Grant Date”); provided, however, that a
person serving as a director of the Company who does not qualify as an
Non-Employee Director shall not receive an initial Option in the event that such
person subsequently becomes a Non-Employee Director.  In addition, a
person who becomes a Non-Employee Director after the six-month period following
an annual meeting of the Company’s stockholders shall not receive an initial
Option.

     

    (c)           Annual Option and Restricted Stock
Grant.  Subject to execution by a Non-Employee Director of an
Option Agreement and a Restricted Stock Agreement, each Non-Employee Director
(including any director of the Company who previously did not qualify as a
Non-Employee Director but who subsequently becomes an Non-Employee Director) who
is a Non-Employee Director on the day following the annual meeting
of

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    stockholders
of the Company shall be granted on the day immediately following such annual
meeting of stockholders (the “Annual Grant Date”), commencing with the Annual
Grant Date in 2003, an Option to purchase three thousand five hundred (3,500)
shares of Stock and one thousand (1,000) shares of Restricted
Stock.

     

    6.           Terms and Conditions of
Options.  Options shall be evidenced by an Option Agreement
specifying the number of shares of Stock covered, in such form as the Committee
shall from time to time approve.  Option Agreements may incorporate
all or any of the terms of this Plan by reference and shall comply with and be
consistent with the following terms and conditions:

     

    (a)           Exercise Price.  The
exercise price per share of Stock subject to an Option shall be the Fair Market
Value of a share of Stock on the Initial Grant Date or the Annual Grant Date, as
applicable.

     

    (b)           Exercisability.  Each
Initial Option shall become fully vested and exercisable on the first
anniversary of the Initial Grant Date.  Each Annual Option shall
become fully vested and exercisable on the first anniversary of the Annual Grant
Date.

     

    Notwithstanding
the foregoing, if a Non-Employee Director incurs a Termination of Service other
than due to death, Disability or Retirement, any Options that are not
exercisable at the date of such Termination of Service shall never become
exercisable and shall be immediately forfeited.  If a Non-Employee
Director incurs a Termination of Service due to Disability or Retirement, any
Options held by such person shall continue to become exercisable in accordance
with the foregoing schedule, but the exercise thereof shall be subject to the
provisions of Section 6(c) below, and, in addition, any Options shall be
cancelled and forfeited if the Committee at any time thereafter determines that
the former Non-Employee Director has engaged in any activity detrimental to the
interests of the Company.

    

    (c)           Expiration of
Options.  Each Option shall terminate and cease to be
exercisable on the first to occur of the following events:

     

    (i)           the
date which is the tenth (10th)
anniversary of the applicable Grant Date unless earlier terminated pursuant to
clause (iii) below or pursuant to the terms of the applicable Option
Agreement;

     

    (ii)           the
expiration of one (1) month from the date of a person’s Termination of Service
for any reason other than death, Disability or Retirement; or

     

    (iii)           the
expiration of five (5) years from the date of a person’s death, whether before
or after a Termination of Service.

     

    (d)           Acceleration of
Exercisability.  If an Optionee incurs a Termination of Service
due to death or dies following a Termination of Service while holding Options
that are unexercisable, then 100% of his or her Options shall immediately become
exercisable.  The exercisability of Options shall also be accelerated
as provided in Section 8.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (e)           Payment of Exercise
Price.  Except as otherwise provided below, payment of the
exercise price for the number of shares of Stock being purchased pursuant to any
Option shall be made (i) in cash, by check, or cash equivalent, (ii) by tender
to the Company of shares of Stock owned by the Optionee having a Fair Market
Value not less than the exercise price or (iii) by any combination
thereof.  Notwithstanding the foregoing, an Option may not be
exercised by tender to the Company of shares of Stock to the extent such tender
of Stock would constitute a violation of the provisions of any law, regulation
or agreement restricting the redemption of the Company’s
stock.  Unless otherwise provided by the Board, an Option may not be
exercised by tender to the Company of shares of Stock unless such shares either
have been owned by the Optionee for more than six (6) months or were not
acquired, directly or indirectly, from the Company.

     

    (f)           Tax
Withholding.  The Company shall have the right, but not the
obligation, to deduct from the shares of Stock issuable upon the exercise of an
Option, or to accept from the Optionee the tender of, a number of whole shares
of Stock having a Fair Market Value equal to all or any part of the federal,
state, local and foreign taxes, if any, required by law to be withheld by the
Company with respect to such Option or the shares acquired upon exercise
thereof.  Alternatively or in addition, in its sole discretion, the
Company shall have the right to require the Optionee to make adequate provision
for any such tax withholding obligations of the Company arising in connection
with the Option or the shares acquired upon exercise thereof.  The
Company shall have no obligation to deliver shares of Stock until the Company’s
tax withholding obligations have been satisfied.

     

    (g)           Nontransferability of Options;
Exercise Following Death.  No Option shall be assignable or
transferable by the Optionee, except by will or by the laws of descent and
distribution or pursuant to a “qualified domestic relations order” (as defined
in the Code).  During the lifetime of the Optionee, an Option shall be
exercisable only by the Optionee, the Optionee’s guardian or legal
representative or an alternate payee pursuant to a qualified domestic relations
order.

     

    7.           Terms and Conditions of Restricted
Stock.  Shares of Restricted Stock shall be subject to
restrictions on transferability and on the right of a Non-Employee Director to
receive certificates evidencing Shares of Restricted Stock, as set forth in a
Restricted Stock Agreement in such form as the Committee shall from time to time
approve.  Subject to such restrictions and the provisions of such
Restricted Stock Agreement and this Plan, Non-Employee Directors who receive
awards of Restricted Stock shall have all of the rights of a stockholder with
respect to such Shares of Restricted Stock.  Restricted Stock granted
under this Plan may be evidenced in such manner as the Committee may deem
appropriate, including, without limitation, book-entry registration or issuance
of stock certificates.

     

    (a)           Forfeiture.  Except as
otherwise determined by the Committee, if a Non-Employee Director incurs a
Termination of Service other than by reason of death, Disability or Retirement,
all Shares of Restricted Stock theretofore awarded which are still subject to
restrictions shall upon such Termination of Service be forfeited and transferred
back to the Company.  In addition, if a former Non-Employee Director
continues to hold Restricted Stock following his or her Termination of Service
due to his

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    or her
Retirement, the Shares of Restricted Stock which remain subject to restrictions
shall nonetheless be forfeited and transferred back to the Company if the
Committee at any time thereafter determines that the former Non-Employee
Director has engaged in any activity detrimental to the interests of the
Company.

     

    (b)           Lapse of
Restrictions.  The restrictions on transferability and any
other restrictions contained in a Restricted Stock Agreement shall lapse with
respect to all Shares of Restricted Stock awarded to a Non-Employee Director on
an Annual Grant Date on the January 5th
following the Annual Grant Date for such award.  The lapse of
restrictions on transferability and any other restrictions contained in a
Restricted Stock Agreement shall also be accelerated as provided in Sections
7(d) and 8.

     

    (c)           Delivery of
Shares.  At the time all restrictions have lapsed with respect
to Shares covered by an award of Restricted Stock, the Company shall deliver the
Shares as to which such restrictions have lapsed as follows:

     

    (i)           if
an assignment to a trust has been made, to such trust; or

     

    (ii)           if
the Restricted Period has expired by reason of death and a beneficiary has been
designated in a form approved by the Company, to the beneficiary so designated;
or

     

    (iii)           in
all other cases, to the Participant or the legal representative of the
Participant’s estate.

     

    (d)           Acceleration of Lapsing Only Upon
Death or Disability.  Notwithstanding the provisions of Section
7(b), if an Non-Employee Director incurs a Termination of Service due to death
or Disability, or if a former Non-Employee Director dies following a Termination
of Service, then all restrictions in effect at the date of such Termination of
Service or at such date of death shall immediately lapse and all Shares shall be
free of, and no longer subject to, any restrictions.  If a
Non-Employee Director incurs a Termination of Service due to Retirement, any
restrictions on Shares of Restricted Stock remaining at the time of Retirement
shall continue in effect and shall lapse as provided in Section
7(b).

     

    (e)           Tax Withholding. The Company
shall have the right to require a Non-Employee Director to make adequate
provision for any federal, state, local or foreign taxes, if any, required by
law to be withheld by the Company with respect to the income realized by such
director as a result of the lapsing of restrictions with respect to Shares of
Restricted Stock.  The Company shall have no obligation to deliver
Shares of Stock that were previously Restricted Stock until the Company’s tax
withholding obligations have been satisfied.

     

    8.           Change in
Control.  In the event of a Change in Control, (i) any
unexercisable Options shall be immediately exercisable and vested in full and
(ii) all restrictions relating to any Shares of Restricted Stock shall lapsed
and be of no further effect, as of the date thirty (30) days prior to the date
of the Change in Control.  The exercise or vesting of any Option and
the lapsing of restrictions with respect to Shares of Restricted Stock that
results solely by reason of this Section 8, shall be conditioned upon the
consummation of the Change in Control.  In addition,

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    the
surviving, continuing, successor, or purchasing corporation or parent
corporation thereof, as the case may be (the “Acquiring Corporation”), may
either assume the Company’s rights and obligations under outstanding Options or
substitute for outstanding Options substantially equivalent options for the
Acquiring Corporation’s stock.  Any Options which are neither assumed
or substituted for by the Acquiring Corporation in connection with the Change in
Control nor exercised as of the date of the Change in Control shall terminate
and cease to be outstanding effective as of the date of the Change in
Control.

     

    9.           Issuance of
Stock.  The issuance or delivery of any Option or any shares of
Stock upon the exercise of an Option or the lapsing of restrictions on
Restricted Stock may be postponed by the Company for any period required to
comply with any applicable requirements under the federal securities laws, any
applicable listing requirement of the NYSE or any other requirements of
applicable laws or regulations.  The Company is not obligated to
deliver or issue any shares of Stock if such delivery or issuance would
constitute a violation of any provision of any law or regulation or any rule of
the NYSE.  So long as the Company’s Stock is listed on the NYSE,
issuance of any Shares of Stock pursuant to an Option, or of any Shares of
Restricted Stock, is conditioned on such Shares to be issued also being listed
on the NYSE.  In addition, if at any time counsel to the Company is of
the opinion that the sale or issuance of Shares of Restricted Stock or Shares of
Stock pursuant to exercise of an Option is or may be unlawful under the
circumstances, the Company shall have no obligation to make such sale or
issuance, and the right of an Optionee to exercise an Option, shall be suspended
until, in the opinion of the Company’s counsel, such sale or issuance is
lawful.  No such suspension shall extend the period of time during
which an Option must be exercised under Section 6(c).

     

    10.           Termination or Amendment of
Plan.  The Board may terminate or amend the Plan at any
time.  However, subject to changes in the law or other legal
requirements that would permit otherwise, without the approval of the Company’s
stockholders, there shall be (i) no increase in the total number of shares of
Stock that may be issued under the Plan, except by operation of the provisions
of Section 4(b), (ii) no change in the number of Options and Shares of
Restricted Stock that will be granted pursuant to Section 5(b) and (c), and
(iii) no expansion in the class of persons eligible to receive Options or Shares
of Restricted Stock.  Furthermore, to the extent required by Rule
16b-3, provisions of the Plan addressing eligibility to participate in the Plan
and the amount, price and timing of Options shall not be amended more than once
every six (6) months, other than to comport with changes in the Code, the
Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder.  In any event, no termination or amendment of this Plan
may adversely affect any outstanding Option or Shares of Restricted Stock
without the consent of the Non-Employee Director, unless such amendment is
necessary to comply with applicable laws or regulations.  This Plan
shall terminate on April 30, 2013, and no further Options or shares of
Restricted Stock shall be granted pursuant to this Plan after such
date.

     

    11.           Construction.  Captions
and titles contained herein are for convenience only and shall not affect the
meaning or interpretation of any provision of this Plan.  Except when
otherwise indicated by the context, the singular shall include the plural, the
plural shall include the singular, and use of the term “or” shall not be
exclusive.  This Plan shall be governed by the law of the State of
Delaware, regardless of the law that might otherwise govern under applicable
Delaware principles of conflict of laws.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

     

    CERTIFICATION

     

    The
undersigned Secretary of the Company certifies that the foregoing Kaydon
Corporation 2003 Non-Employee Directors Equity Plan was duly adopted by the
Board on March 19, 2003, and approved by the stockholders of Kaydon Corporation
on May 9, 2003.  The undersigned Secretary of the Company further
certifies that this Amended and Restated version of the Plan was adopted and
made effective by the Board on May 6, 2008, in compliance with the provision of
Section 10 hereof in a manner not requiring approval of the stockholders of
Kaydon Corporation.

     

    

    

    

    /s/ Debra K.
Crane___________

    Debra K
Crane, Secretary

    

    

     

    10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00142-of-00352.parquet"}]]