Document:

exv10w1

	 	 	 	 	 

Exhibit 10.1

August 12, 2009

Jeffrey P. Gotschall

Chairman of the Board and

Chief Executive Officer

SIFCO Industries, Inc.

970 East 64th Street

Cleveland, Ohio 44103

          Re: Terms of Employment

Dear Jeff:

This letter memorializes the terms of your continued employment with SIFCO Industries, Inc. (the
“Company”) following your retirement as Chief Executive Officer effective August 31, 2009. We are
entering into this letter based on your request for retirement and our common recognition that the
Company will require your assistance in its executive succession to a new management team.

	 	1.	 	Employment Status and Term. Following your resignation as Chief Executive
Officer, you will continue as an employee of the Company. You will also continue your
service as the non-executive Chairman of the Board of the Company, having such
responsibility and authority as normally accompanies such office, subject to the Company’s
Regulations as currently constituted and to your election as a director by the Company’s
shareholders. So long as you continue to satisfy any published director qualifications or
requirements, the Nominating Committee will consider your nomination to the Board for every
election until your 65th birthday. You shall be employed by the Company until your
65th birthday, unless earlier terminated for “Cause” (as defined below) in the
good faith determination by the Board (the “Term”). “Cause” shall mean an act or acts of
fraud or dishonesty by you intended to result in gain or personal enrichment to you at the
expense of the Company; unlawful conduct or gross misconduct that is materially injurious
to the Company or your conviction of, or plea of nolo contendere to, a felony or to a
misdemeanor involving fraud, dishonesty, or moral turpitude; or your engagement in a
material breach of your responsibilities to the Company that results in a material injury
to the Company.
	 
	 	2.	 	Responsibilities. Your responsibilities will include advising the Board
regarding strategic and operational issues relating to the Company’s business and
performing such other duties that the Board or the Interim CEO may request. Your
responsibilities also will include continued oversight of The SIFCO Foundation. We have
agreed that you will maintain your office at your home, but you shall be available to the
Board and the Interim CEO as needed by the Company. You will be reimbursed for reasonable
expenses necessary to maintain a home office, including but not limited to your cell phone,
office supplies and computer expenses.
	 
	 	3.	 	Compensation. You shall be entitled, in consideration of your services as an
employee of the Company, to an annual salary during the Term of $220,000, which shall be
payable in

 

 

	 	 	 	accordance with the Company’s normal payroll policies. You shall also be entitled to
participate in any health and welfare benefits (including, without limitation, life
insurance, medical insurance (including medical benefits reimbursement account), long term
disability and other benefits), as well as retirement benefits (such as 401(k) Plan,
including any company contributions) maintained, from time to time, by the Company on such
terms as are generally available to salaried employees of the Company. You shall not be
eligible to participate in any future incentive or bonus compensation plan maintained by the
Company; however, you will be eligible for your fiscal year 2009 bonus on the terms already
established, and your existing equity incentive awards will continue to vest in accordance
with their terms.

	 	4.	 	Confidentiality and Noncompetition. During the Term and for a period of two
years following the term, you shall not directly or indirectly compete with the Company as
an owner, director, employee or consultant of any business that provides competitive or
similar products or services as the Company; provided that nothing herein shall preclude
you from owning the securities, representing less than 2% of the voting power, of any
publicly-traded company that may be competitive. You shall keep all nonpublic information
regarding the Company, its business and its customers confidential and you shall not use or
disclose such information, except in connection with your employment with the Company or
your service as a director; provided that the foregoing shall not apply to any information
that is (i) generally available to the public other than as a result of a disclosure by
you, or (ii) was or becomes available to you on a non-confidential basis from a source
other than the Company that is not bound by a confidentiality agreement with the Company or
otherwise prohibited from transmitting the information to you by a contractual, legal or
fiduciary obligation.
	 
	 	5.	 	Other Agreements and Arrangements. This letter supersedes all other
employment, severance and change in control agreements between you and the Company.
Without limiting the generality of the foregoing, this agreement will terminate the Change
in Control Severance Agreement between you and the Company dated as of July 30, 2002.

I am pleased that you have agreed to continue your employment with the Company during this period
of transition. As a duly authorized representative of the Company, the Company is pleased to
confirm our mutual agreement as set forth herein. Your continued service is vital to a successful
management transition and the continued success of the Company.

	 	 	 
	Sincerely,
	 	 
	 
	 	 
	/s/ J. Douglas Whelan
 

J. Douglas Whelan

	 	  
	Chair of Compensation Committee
	 	 
	 
	 	 
	ACCEPTED AND AGREED TO

as of the date first above written:
	 	 
	 
	 	 
	/s/ Jeffrey P. Gotschall
 

Jeffrey P. Gotschallexv10w3

Exhibit 10.3

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

          This SECOND AMENDMENT (the “Amendment”) by and between DPS Holdings, Inc., f/k/a CBI Holdings
Inc., (the “DPS”), and Larry Young (the “Executive”), effective as of August 11, 2009, is an
amendment to that certain Employment Agreement by and between DPS and the Executive, dated as of
October 15, 2007, as amended by the Amendment to Employment Agreement, effective as of February 11,
2009 (collectively, the “Employment Agreement”). Capitalized terms used herein but not defined
shall have the meaning set forth in the Employment Agreement.

RECITALS

          DPS and the Executive have previously entered into the Employment Agreement to provide for
terms and conditions of the Executive’s employment by DPS; and

          DPS and the Executive desire to modify the Employment Agreement to increase certain payments
to the Executive in the event that the Executive’s employment is terminated Without Cause or for
Good Reason.

          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

	 	1.	 	The first sentence of Section 6(c)(i) is deleted in its
entirety and replaced with the following:

“Salary. DPS shall pay to Executive an amount equal to fifteen (15)
months of Executive’s annual base salary.”

	 	2.	 	The first sentence of Section 6(c)(ii) is deleted in its
entirety and replaced with the following:

“AIP. DPS shall pay to Executive an amount equal to 1.25 times
Executive’s Target AIP award, as defined in Section 1(a).”

	 	3.	 	Section 6(c)(iii) is deleted in its entirety and replaced with the following:

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“Continuation Payments. Subject to offset as provided in the last
sentence of this Section 6(c)(iii), DPS shall pay Executive an amount equal
to the aggregate of fifteen (15) months of Executive’s annual base salary
plus 1.25 times Executive’s Target AIP, as defined in Section 1(a), in effect
on the Date of Termination. Such amount will be paid ratably by DPS to
Executive within the regular payroll cycles during the fifteen (15) month
period following the Date of Termination, unless such amount exceeds an
amount (“Unrestricted Amount”) equal to two times the lesser of (A) the
Executive’s annual compensation based on the annual rate of pay from DPS for
the calendar year preceding the calendar year of the Date of Termination
(adjusted for any increase in such annual rate of pay during the calendar
year of the Date of Termination that was expected to continue indefinitely if
the Executive had not terminated employment) and (B) the maximum amount that
can be taken into account under a qualified plan pursuant to Section
401(a)(17) of the Code. If the amount exceeds the Unrestricted Amount, then
no more than the Unrestricted Amount may be paid in the six months following
the Executive’s Date of Termination and the monthly pro rata payments shall
be reduced to comply with this limitation. If the monthly payments are
reduced to comply with such limitation, any amount not paid in the initial
six months following the Date of Termination shall be paid in a lump sum six
months and two days after the Date of Termination and thereafter the ratable
payments shall continue through the remainder of the fifteen (15) month
period following the Date

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of Termination. If Executive secures full time employment within such
fifteen (15) month period, then commencing on the date of such new
employment, the payments under this Section 6(c)(iii) shall be offset by the
base salary Executive earns from such new employer and the target annual
bonus or other cash bonus established for Executive by such new employer, in
each case pro-rated to reflect the amount of such new base salary and bonus
which is allocable to the remainder of such fifteen (15) month period.”

	 	4.	 	The first sentence of Section 6(c)(iv) is deleted in its
entirety and replaced with the following:

“DPS shall continue Executive’s participation in the medical, dental and
vision plans of DPS (or shall provide equivalent benefits) for a period of
fifteen (15) months following the Date of Termination at the same rates as
an active employee or, if earlier, the commencement of equivalent benefits
by Executive’s new employer; provided that if Executive shall die before the
expiration of the period during which DPS would be required to continue
Executive’s participation in such plans, the participation of Executive’s
surviving spouse and family in such plans shall continue throughout such
period at the same rates as an active employee to Executive’s surviving
spouse and family.”

	 	5.	 	Section 6(c)(vii) is deleted in its entirety and replaced with
the following:

“Outplacement and Job Search Expenses. DPS will, at its expense,
make available to Executive the services of an outplacement firm designated
by

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DPS. In addition, DPS will reimburse Executive for reasonable
out-of-pocket job search expenses incurred by Executive for a period of up
to fifteen (15) months following the Date of Termination, provided that
such expenses shall not exceed $300 per month and shall be properly
documented.”

     6. This Amendment shall not affect any terms or provisions of the Employment Agreement
other than those amended hereby and is only intended to amend, alter or modify the Employment
Agreement as expressly stated herein. Except as amended hereby, the Employment Agreement
remains in effect, enforceable against each of the parties, and is hereby ratified and
acknowledged by each of the parties. The Employment Agreement, as amended by this Amendment,
constitutes the entire agreement among the parties with respect to the subject matter hereof and
supersedes any prior or contemporaneous agreements, whether oral or written, among the parties
with respect to the subject matter hereof. No amendment or modification of this Amendment shall
be effective unless made in writing and duly executed by the parties.

          IN WITNESS WHEREOF, the Executive has hereunto set his hand and, pursuant to the authorization
from its Board of Directors, DPS has caused these presents to be executed in its name on its
behalf, on this 11th day of August, but effective as of the date written above.

	 	 	 	 	 	 	 
	 	 	DPS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	   /s/ James L. Baldwin, Jr.
	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	James L. Baldwin, Jr.	 	 
	 

	 	Title:
	 	Executive Vice President	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	   /s/ Larry Young	 	 
	 	 	 	 	 
	 	 	Larry Young	 	 

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