Document:

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                                                                    Exhibit 10.1

                                                           Amended July 30, 2001

                           BENTON OIL AND GAS COMPANY

                    NON-EMPLOYEE DIRECTOR STOCK PURCHASE PLAN

     1. PURPOSE. The Purpose of this Non-Employee Director Stock Purchase Plan
is to advance the interests of Benton Oil and Gas Company (the "Company") by
encouraging non-employee directors of the Company to acquire a greater
proprietary interest in the Company through ownership of Common Stock of the
Company (the "Common Stock"). References to a "director" herein shall mean a
non-employee director.

     2. ELECTION TO RECEIVE STOCK. Each member of the Board of Directors of the
Company who is not an employee of the Company may elect once each year prior to
January 1, to be effective for the following year and until a new election is
made, to receive all or a portion of the fees payable to such director in cash
or in lieu of cash (if not all of the cash amount, in increments of $1,000) in
restricted shares of Common Stock. The number of restricted shares of Common
Stock issuable in accordance with an election hereunder shall be equal to the
product of 1.5 multiplied by the dollar amount of cash that will instead be
received in restricted shares, divided by the Fair Market Value of the Common
Stock on the date (or scheduled date) of payment of the applicable fee, with any
fraction of a share rounded down to a whole number. "Fair Market Value" of the
Common Stock as of any date shall be the closing price on such date (or if no
trades occurred on such date on the next preceding day on which trading
occurred) as reported for consolidated transactions on the principal national
securities exchange on which the Common Stock is listed or admitted to trading
or on the NASDAQ Market System, or if not so listed or admitted to trading, the
average of the high bid and low asked prices of the Common Stock on such date in
the over-the-counter market as reported by the NASDAQ reporting system or other
system then in use. Notwithstanding the foregoing, no single director may
acquire more than one percent of the shares of Common Stock outstanding as of
the Effective Date of the Plan (as defined herein).

     3. ISSUANCE OF SHARES. On each payment date of directors' fees at which an
election to receive restricted shares of Common stock is effective, for each
director so electing a stock certificate evidencing the appropriate number of
restricted shares shall be issued and registered in the name of the director.
The stock certificates evidencing such shares shall be held in custody by the
Company until the restrictions thereon shall have lapsed, after which such
certificates shall be delivered to the appropriate director. The Company shall
not be required to issue shares hereunder until such shares have been listed or
admitted to trading on the appropriate stock exchange or trading market and the
Company has complied with applicable federal and state securities laws.

     4. RESTRICTIONS. Each share of Common Stock issued to a director pursuant
to the Plan may not be sold, assigned, transferred, pledged, hypothecated or
otherwise disposed of until a period of one year from the date of issuance or,
if earlier, on the date of termination of such director as a member of the Board
of Directors as a result of his death, disability, removal or failure to be
nominated for an additional term as a member of the Board of Directors.

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     5. VOTING AND DIVIDEND RIGHTS. During the period in which the restrictions
provided herein are applicable to the shares of Common Stock, the director shall
have the right to vote such shares and to receive any dividends paid in cash or
other property with respect to such shares. Shares of Common Stock distributed
by the Company as a result of any stock dividend, stock split, reclassification
or other similar capital or corporate structure change shall be subject to the
same restrictions as the shares with respect to which they were distributed.

     6. TERMINATION OF PLAN. The Plan may be terminated at any time upon a vote
of a majority of the Board of Directors to terminate the Plan. Upon termination
of the Plan, restrictions on shares of Common Stock shall continue in effect and
shall lapse in accordance with the terms of the Plan at the time of issuance of
such shares.

     7. EFFECTIVE DATE. The Plan shall become effective on January 5, 2001.

                                      -2-<PAGE>
                                                                   Exhibit 10.28

                       AMENDMENT NO. 3 TO CREDIT AGREEMENT

         THIS AMENDMENT NO. 3 TO CREDIT AGREEMENT is dated as of November 9,
2001 (this "Amendment") among the following:

                  (i) HAWK CORPORATION, a Delaware corporation (the "Borrower");

                  (ii) the Lenders a party to the Credit Agreement, as
         hereinafter defined; and

                  (iii) KEYBANK NATIONAL ASSOCIATION, a national banking
         association, as the Administrative Agent under the Credit Agreement
         (the "Administrative Agent").

         PRELIMINARY STATEMENTS:

         (1) The Borrower, the Lenders and the Administrative Agent entered into
the Credit Agreement, dated as of May 1, 1998 (as amended and as the same may
from time to time be further amended, restated or otherwise modified, the
"Credit Agreement"; the terms defined therein are used herein as so defined).

         (2) The parties hereto desire to modify certain terms and provisions of
the Credit Agreement, all as more fully set forth below.

         NOW, THEREFORE, the parties hereby agree as follows:

         SECTION 1. AMENDMENTS, ETC.

         1.1. Section 1.1 of the Credit Agreement is hereby amended to delete
the definitions of "Applicable Eurodollar Margin", "Borrowing Base",
"Consolidated EBIT", "Consolidated Net Worth", "Maximum Available Revolving
Commitment" and "Pricing Grid Table" therefrom and to insert in place thereof,
respectively, the following:

                  "Applicable Eurodollar Margin" shall mean:

                  (a) for any date prior to November 9, 2001, as such margin
         shall have been determined in accordance with section 2.8(h) of this
         Agreement as in effect prior to November 9, 2001;

                  (b) from November 9, 2001 through March 31, 2002, (i) three
         hundred (300) basis points for General Revolving Loans, and (ii) three
         hundred fifty (350) basis points for Term Loans; and

                  (c) commencing with the fiscal quarter of the Borrower ended
         December 31, 2001, and continuing with each fiscal quarter thereafter,
         the number of basis points determined by the Administrative Agent in
         accordance with the Pricing Grid Table, based upon the Adjusted
         Leverage Ratio. Changes in the Applicable Eurodollar Margin shall

                                       1
<PAGE>
         become effective on the first day of the month following the receipt by
         the Administrative Agent, pursuant to Section 8.1(a) or (b) of the
         financial statements of the Borrower.

         Notwithstanding the foregoing, unless otherwise agreed by the Required
         Lenders and subject to section 2.8(d), during any period when (A) the
         Borrower shall have failed to timely deliver its financial statements
         referred to in Section 8.1(a) or (b), (B) a Default under Section
         10.1(a) shall have occurred and be continuing, or (C) an Event of
         Default shall have occurred and be continuing, the Applicable
         Eurodollar Margin for all Loans that are Eurodollar Loans shall be the
         highest number of basis points indicated therefor in the Pricing Grid
         Table, regardless of the Adjusted Leverage Ratio at such time. Any
         changes in the Applicable Eurodollar Margin for Loans shall be
         determined by the Administrative Agent in accordance with the above
         provisions and the Administrative Agent shall promptly provide notice
         of such determinations to the Borrower and the Lenders, which
         determination by the Administrative Agent shall be conclusive and
         binding absent manifest error.

                  "Borrowing Base" shall mean an amount not in excess of (a) the
         sum of (i) eighty-five percent (85%) of the amount due and owing on
         Eligible Accounts Receivable, plus (ii) the lesser of (A) sixty percent
         (60%) of the aggregate of the cost or market value (whichever is lower)
         of Eligible Inventory, or (B) Eighteen Million Dollars ($18,000,000),
         minus (b) the aggregate principal amount of all Term Loans then
         outstanding.

                  "Consolidated EBIT" shall mean, for any period, Consolidated
         Net Income for such period; plus (a) the sum of the amounts for such
         period included in determining such Consolidated Net Income of (i)
         Consolidated Interest Expense, (ii) Consolidated Income Tax Expense,
         (iii) amortization or write-off of deferred financing costs and charges
         for prepayment penalties on prepayment of Indebtedness (all of which
         amounts do not in the aggregate exceed in the 1998 fiscal year a
         maximum of $5,500,000 on a pre-tax basis), and (iv) extraordinary and
         other non-recurring non-cash losses and charges; less (b) gains on
         sales of assets and other extraordinary gains and other non-recurring
         non-cash gains; all as determined for the Borrower and its Subsidiaries
         on a consolidated basis in accordance with GAAP; provided, however,
         that in computing Consolidated Net Income for purposes of this
         definition, there shall be excluded therefrom (A) any non-cash gains or
         losses recorded in accordance with SFAS 133, Accounting for
         Derivatives, (B) the effects of any non-cash gains or losses as a
         result of foreign currency translation adjustments, (C) non-cash
         charges associated with the write-off of goodwill in accordance with
         SFAS 142, all as determined for the Borrower and its Subsidiaries on a
         consolidated basis and in accordance with GAAP, (D) the income, (or
         loss) of any entity (other than Subsidiaries of the Borrower) in which
         the Borrower or any of its Subsidiaries has a joint interest, except to
         the extent of the amount of dividends or other distributions actually
         paid to the Borrower or any of its Subsidiaries during such period, and
         (E) the income of any Subsidiary of the Borrower to the extent that the
         declaration or payment of dividends or similar distributions by that
         Subsidiary of that income is not at the time permitted by operation of
         the terms of its charter or any agreement, instrument, judgment,
         decree, order, statute, rule or governmental regulation applicable to
         that Subsidiary.

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                  "Consolidated Net Worth" shall mean at any time for the
         determination thereof all amounts that, in conformity with GAAP, would
         be included under the caption "total stockholders' equity" (or any like
         caption) on a consolidated balance sheet of the Borrower as at such
         date; provided, however, that the calculation of Consolidated Net Worth
         shall exclude (a) any amounts in respect of Redeemable Stock and (b)
         non-cash charges associated with the write-off of goodwill in
         accordance with SFAS 142.

                  "Maximum Available Revolving Commitment" shall mean at any
         time an amount equal to the lesser of (a) the Total General Revolving
         Commitment, or (b) (i) the Borrowing Base plus (ii) the Alternate
         Currency Outstandings.

                  "Pricing Grid Table" shall mean the following pricing grid
table:

<TABLE>
<CAPTION>
                                                   Applicable
                                 Applicable        Prime Rate
                              Eurodollar Margin    Margin for       Applicable          Applicable
                                     for             General        Eurodollar          Prime Rate          Applicable
                              General Revolving     Revolving       Margin for       Margin for Term       Facility Fee
  Adjusted Leverage Ratio           Loans             Loans         Term Loans            Loans                Rate
------------------------------------------------------------------------------------------------------------------------
<S>                          <C>                   <C>          <C>                 <C>                 <C>
Greater than 4.00 to 1.00     300 basis points      175 basis    350 basis points    225 basis points    50 basis points
                                                     points
Greater than 3.50 to 1.00     275 basis points      150 basis    325 basis points    200 basis points    50 basis points
but less than 4.00 to 1.00                           points
Greater than 3.00 to 1.00     250 basis points      125 basis    300 basis points    175 basis points    50 basis points
but less than or equal to                            points
3.50 to 1.00
Greater than 2.50 to 1.00     225 basis points      100 basis    275 basis points    150 basis points    50 basis points
but less than or equal to                            points
3.00 to 1.00
Greater than 2.00 to 1.00     200 basis points      75 basis     250 basis points    125 basis points    50 basis points
but less than or equal to                            points
2.50 to 1.00
Less than or equal to 2.00   187.5 basis points     50 basis     225 basis points    100 basis points       37.5 basis
to 1.00                                              points                                                   points
</TABLE>

         1.2. Section 1.1 of the Credit Agreement is hereby amended to delete
the definition of "Interest Coverage Period" therefrom.

         1.3. Section 1.1 of the Credit Agreement is hereby amended to add the
following new definitions thereto:

                  "Account" shall mean an account, as defined in Chapter 1309 of
         the Ohio Revised Code as in effect from time to time.

                  "Account Debtor" shall mean any Person obligated to pay all or
         any part of any Account in any manner and includes (without limitation)
         any guarantor thereof.

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<PAGE>
                  "Adjusted Interest Coverage Ratio" shall mean, for the most
         recently completed four fiscal quarters of the Borrower, the ratio of
         (a) Consolidated EBITDA to (b) Consolidated Interest Expense.

                  "Applicable Prime Rate Margin" shall mean:

                  (a) for any date prior to November 9, 2001, 0 basis points;

                  (b) from November 9, 2001 through March 31, 2002, (i) one
         hundred seventy-five (175) basis points for General Revolving Loans,
         and (ii) two hundred twenty-five (225) basis points for Term Loans; and

                  (c) commencing with the fiscal quarter of the Borrower ended
         December 31, 2001, and continuing with each fiscal quarter thereafter,
         the number of basis points determined by the Administrative Agent in
         accordance with the Pricing Grid Table, based upon the Adjusted
         Leverage Ratio. Changes in the Applicable Prime Rate Margin shall
         become effective on the first day of the month following the receipt by
         the Administrative Agent, pursuant to Section 8.1(a) or (b) of the
         financial statements of the Borrower.

         Notwithstanding the foregoing, unless otherwise agreed by the Required
         Lenders and subject to section 2.8(d), during any period when (A) the
         Borrower shall have failed to timely deliver its financial statements
         referred to in Section 8.1(a) or (b), (B) a Default under Section
         10.1(a) shall have occurred and be continuing, or (C) an Event of
         Default shall have occurred and be continuing, the Applicable Prime
         Rate Margin for all Loans that are Prime Rate Loans shall be the
         highest number of basis points indicated therefor in the Pricing Grid
         Table, regardless of the Adjusted Leverage Ratio at such time. Any
         changes in the Applicable Prime Rate Margin for Loans shall be
         determined by the Administrative Agent in accordance with the above
         provisions and the Administrative Agent shall promptly provide notice
         of such determinations to the Borrower and the Lenders, which
         determination by the Administrative Agent shall be conclusive and
         binding absent manifest error.

                  "Borrowing Base Certificate" shall mean a certificate,
         substantially in the form of the attached Annex VIII.

                  "Eligible Account Receivable" shall mean an Account of the
         Borrower or any of its Subsidiaries (other than a Foreign Subsidiary)
         to the extent arising out of completed sales by Borrower or any of its
         Subsidiaries (other than a Foreign Subsidiary) in accordance with the
         terms and conditions of all purchase orders, contracts and other
         documents relating thereto, which, at all times until it is collected
         in full, continuously meets the following requirements: (a) to the
         extent not subject to any claim for credit, allowance or adjustment by
         the Account Debtor or any set-off or counterclaim; (b) arose in the
         ordinary course of business of the Borrower or any of its Subsidiaries
         from the performance (fully completed) of services or bona fide sale of
         goods that have been shipped to the Account Debtor, and not more than
         90 days from the due date as specified in the invoice relating to such
         account receivable have elapsed with respect to such account
         receivable; (c) is not due

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<PAGE>
         from any Account Debtor with respect to which the Borrower of any of
         its Subsidiaries has received any notice or has any knowledge of
         insolvency, bankruptcy or financial impairment; (d) is not subject to
         an assignment, pledge, claim, mortgage, lien, or security interest of
         any type except that granted to or in favor of the Administrative Agent
         and the Lenders; (e) does not relate to any goods rejected or returned,
         or acceptance of which has been revoked or refused; (f) is not the
         subject of any instrument or chattel paper offered in payment thereof;
         (g) has not been determined by the Administrative Agent, in its sole
         discretion, to be unsatisfactory in any respect; (h) is not a
         Government Account Receivable, unless the security interest of the
         Administrative Agent and the Lenders in such Government Account
         Receivable is filed in accordance with the Federal Assignment of Claims
         Act; (i) is not an account receivable due from any Affiliate,
         shareholder or employee of the Borrower or any of its Subsidiaries; (j)
         is not a Foreign Account Receivable; (k) is not evidenced by a
         promissory note or any other negotiable instrument; (l) is not an
         account receivable owed to the Borrower or any of its Subsidiaries by
         an Account Debtor that has failed to pay more than 50% of its currently
         outstanding accounts receivable within 90 days from the due date
         thereof as specified in the invoice with respect to such accounts
         receivable; and (m) is an Account in which the Administrative Agent,
         for the benefit of the Lenders, has a valid and enforceable first
         security interest.

                  "Eligible Inventory" shall mean all Inventory of the Borrower
         or any of its Subsidiaries in which the Administrative Agent, for the
         benefit of the Lenders, has a valid and enforceable first security
         interest, except Inventory that is (a) located outside of the United
         States, (b) in the possession of a bailee or a third party, (c)
         damaged, defective, or obsolete, (d) held by the Borrower or any of its
         Subsidiaries or a third party on consignment, or (e) determined by the
         Administrative Agent, in its sole discretion, to be unsatisfactory in
         any respect.

                  "Foreign Account Receivable" shall mean any Account that
         arises out of contracts with or orders from an Account Debtor that is
         not a resident of the United States.

                  "Government Account Receivable" shall mean any Account that
         arises out of contracts with or orders from the United States or any of
         its departments, agencies or instrumentalities.

                  "Inventory" shall mean inventory, as defined in Chapter 1309
         of the Ohio Revised Code as in effect from time to time.

                  "Required Supermajority Lenders" shall mean the holders of at
         least 75% of the aggregate amount of the Commitments (other than the
         Swing Line Revolving Commitment), or, if there shall be any borrowing
         hereunder, the holders of at least 75% of the aggregate amount
         outstanding under the Notes (other than the Swing Line Revolving Note).

         1.4. Section 2A of the Credit Agreement is hereby amended so that all
references therein to Eligible Subsidiary shall be deemed to be references only
to S.K. Wellman S.p.A. The Borrower, the Administrative Agent and the Lenders
agree that, effective as of the date of this Amendment, no other Foreign
Subsidiary of the Borrower shall become an Eligible Subsidiary.

                                       5
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Concurrently with the execution and delivery of this Amendment, each Eligible
Subsidiary (other than S.K. Wellman S.p.A.) shall have delivered to the
Administrative Agent an Election to Terminate and shall in no event be able to
request an Alternative Currency Advance regardless of whether or not such
Eligible Subsidiary shall have delivered to the Administrative Agent an Election
to Terminate.

         1.5. Section 2.8 of the Credit Agreement is hereby amended to delete
subpart (a) therefrom and to insert in place thereof the following:

                  (a) Interest on Prime Rate Loans. The unpaid principal amount
         of each Loan that is a Prime Rate Loan shall bear interest from the
         date of Borrowing thereof until maturity (whether by acceleration or
         otherwise) at a fluctuating rate per annum that shall at all times be
         equal to the Prime Rate in effect from time to time plus the Applicable
         Prime Rate Margin.

         1.6. Section 5.3 of the Credit Agreement is hereby amended to add the
following new subpart (f) thereto:

                  (f) Mandatory Prepayment Event.

                  (i) In addition to any prepayment required pursuant to
         subparts (a) through (d) above, if the Borrower or any Subsidiary shall
         effect a Mandatory Prepayment Event (which Mandatory Prepayment Event
         shall only be permitted in accordance with the terms of this
         Agreement), then, unless otherwise agreed to in writing by the Required
         Supermajority Lenders, the Prepayment Proceeds of such Mandatory
         Prepayment Event shall be paid, on the date of such Mandatory
         Prepayment Event, by the Borrower (or the applicable Subsidiary) to the
         Administrative Agent to be applied, first, on a pro rata basis to the
         outstanding principal balance of the Term Loans (to be applied on a pro
         rata basis to the Scheduled Repayments thereof in the inverse order of
         maturity), and, second, to the outstanding principal balance of the
         Revolving Loans (or, if there shall be no Revolving Loans outstanding
         or if the outstanding Revolving Loans shall have been paid in full,
         then, first, to the outstanding principal balance of the Swing Line
         Revolving Loans, second, to the outstanding principal balance of the
         Alternate Currency Outstandings, and, third, to the Stated Amount of
         the Letter of Credit Outstandings to be held and applied by the
         Administrative Agent as security for the reimbursement obligations in
         respect thereof), with the Total General Revolving Commitments being
         permanently reduced by the amount of such Prepayment Proceeds, whether
         or not there shall be any Revolving Credit Exposure.

                  (ii) As used in this section 5.3(f), "Mandatory Prepayment
         Event" shall mean the receipt by the Borrower or any Subsidiary of (i)
         any funds, in excess of the aggregate amount of $250,000 for any single
         casualty event from (A) insurance losses, returns or unearned premiums
         under any policy of insurance, (B) any condemnation, eminent domain or
         other proceeding relating to the Real Property, or (C) any litigation,
         settlement or other legal proceeding; (ii) the proceeds of a public or
         private offering of equity or debt securities (other than pursuant to
         section 9.4(c) (i) or (ii)) by the Borrower or any

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<PAGE>
         Subsidiary; or (iii) the proceeds of any Significant Asset Disposition;
         "Prepayment Proceeds" shall mean the proceeds of any Mandatory
         Prepayment Event minus taxes, fees and expenses actually paid in
         connection with such Mandatory Prepayment Event; and "Significant Asset
         Disposition" shall mean the sale, lease, transfer or other disposition
         of assets (other than a sale in the ordinary course of business or
         other than a sale, lease transfer or other disposition permitted
         pursuant to section 9.2(a)) by the Borrower or any Subsidiary for which
         the aggregate fair market value or book value, whichever is greater, of
         the assets sold, leased, transferred or otherwise disposed of shall be
         greater than or equal to $250,000.

         1.7. Section 8.1 of the Credit Agreement is hereby amended to add the
following new subsection (j) thereto:

                  (j) Borrowing Base Certificate. Within 30 days after the end
         of each month, and at such other time as the Administrative Agent may
         request, (i) a Borrowing Base Certificate prepared by an Authorized
         Officer of the Borrower, and (ii) an Accounts aging report and
         Inventory report, each in form and substance satisfactory to the
         Administrative Agent and signed by a Authorized Officer of Borrower;

         1.8. Section 8.15 of the Credit Agreement is hereby amended to delete
subsection (d) therefrom and to insert in place thereof the following:

                  (d) On or before November 30, 2001, or such later date as may
         be agreed to in writing by the Administrative Agent, the Borrower and
         each Guarantor of Payment (as applicable) shall deliver to the
         Administrative Agent, a landlord's waiver, in form and substance
         satisfactory to the Administrative Agent, for each leased location at
         which the Borrower or such Guarantor of Payment maintains assets (other
         than locations owned by the Borrower or a Guarantor of Payment).

         1.9. Section 8.15 of the Credit Agreement is hereby amended to add the
following new subsection (e) thereto:

                  (e) On or before November 30, 2001, or such later date as may
         be agreed to in writing by the Administrative Agent, the Borrower shall
         have delivered to the Administrative Agent title examinations and
         commitments, in form and detail satisfactory to the Administrative
         Agent, issued by a title insurance company acceptable to the
         Administrative Agent with respect to the Mortgaged Property.

         1.10. Section 9.2 of the Credit Agreement is hereby amended to delete
subsection (b) therefrom and to insert in place thereof the following:

                  (b) Permitted Acquisitions. Prior to November 9, 2001, the
         Borrower or any Subsidiary shall be permitted to make Acquisitions in
         accordance with the terms of this subpart (b) as in effect prior to
         November 9, 2001, and on or after November 9, 2001, neither the
         Borrower nor any of its Subsidiaries shall make any Acquisition without
         the prior written consent of the Administrative Agent and the Required
         Lenders.

                                       7
<PAGE>
         1.11. Section 9.4(c)(A) of the Credit Agreement is hereby amended to
delete "$9,500,000" therefrom and to insert in place thereof "$8,500,000".

         1.12. Section 9.4 of the Credit Agreement is hereby amended to delete
subsection (f) therefrom and to insert in place thereof the following:

                  (f) Additional Unsecured Debt and Guaranty Obligations:
         additional unsecured Indebtedness of the Borrower (including additional
         unsecured Guaranty Obligations of the Borrower) incurred by the
         Borrower on or before November 9, 2001, in an aggregate principal
         amount outstanding at any time not to exceed $4,000,000 (including any
         refinancing, extension or renewal of such Indebtedness so long as the
         principal amount thereof shall not be increased), provided that at the
         time of incurrence thereof, and after giving effect thereto, (i) the
         Borrower would be in compliance with section 9.8; and (ii) no Event of
         Default shall have occurred and be continuing or would result
         therefrom.

         1.13. Section 9 of the Credit Agreement is hereby amended to delete
section 9.8 therefrom and to insert in place thereof the following:

                  9.8. Leverage Ratio. The Borrower shall not permit at any time
         the Leverage Ratio to exceed (i) 3.80 to 1.00 on the Closing Date
         through December 30, 1998, (ii) 3.50 to 1.00 on December 31, 1998
         through June 29, 2001, (iii) 4.10 to 1.00 on June 30, 2001 through
         September 29, 2001, (iv) 4.30 to 1.00 on September 30, 2001 through
         December 30, 2001, (v) 5.00 to 1.00 on December 31, 2001 through March
         30, 2002, (vi) 5.35 to 1.00 on March 31, 2002 through June 29, 2002,
         (vii) 5.10 to 1.00 on June 30, 2002 through September 29, 2002, (viii)
         4.65 to 1.00 on September 30, 2002 through December 30, 2002, and (ix)
         4.25 to 1.00 on December 31, 2002 and thereafter.

         1.14. Section 9.5 of the Credit Agreement is hereby amended to delete
subpart (k) and subpart (iv) that appears immediately following subpart (k) and
to insert in place thereof the following:

                  (k) to the extent not permitted by the foregoing clauses, (i)
         loans and advances by the Borrower or by any Subsidiary of the Borrower
         to, or other investments in, any Subsidiary of the Borrower which is
         (A) a Subsidiary Guarantor, (B) a Wholly-Owned Subsidiary, and (C) not
         a Foreign Subsidiary, and (ii) loans and advances to, and investments
         in, any Foreign Subsidiary, made after March 31, 1998, provided that
         the cumulative aggregate amount thereof which are so made and
         outstanding at any time shall not exceed an aggregate of $13,000,000,
         taking into account the repayment of any loans or advances to such
         Foreign Subsidiaries;

         1.15. Section 9 of the Credit Agreement is hereby amended to delete
section 9.9 therefrom and to insert in place thereof the following:

                  9.9. Interest Coverage Ratio. The Borrower shall not permit at
         any time (a) the Interest Coverage Ratio to be less than (i) 2.00 to
         1.00 on the Closing Date through

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<PAGE>
         June 29, 2001, and (ii) 1.20 to 1.00 on June 30, 2001 through September
         29, 2001, and (b) the Adjusted Interest Coverage Ratio to be less than
         (i) 2.40 to 1.00 on September 30, 2001 through December 30, 2001, (ii)
         2.10 to 1.00 on December 31, 2001 through March 30, 2002, (iii) 1.85 to
         1.00 on March 31, 2002 through June 29, 2002, (iv) 2.05 to 1.00 on June
         30, 2002 through September 29, 2002, (v) 2.20 to 1.00 on September 30,
         2002 through December 30, 2002, and (vi) 2.45 to 1.00 on December 31,
         2002 and thereafter.

         1.16. Section 9 of the Credit Agreement is hereby amended to delete
Section 9.11 therefrom and to insert in place thereof the following:

                  9.11. Prepayments and Refinancings of Other Debt. The Borrower
         shall not, and shall not permit any of its Subsidiaries to, make (or
         give any notice in respect thereof) any voluntary or optional payment
         or prepayment or redemption or acquisition for value of (including,
         without limitation, by way of depositing with the trustee with respect
         thereto money or securities before due for the purpose of paying when
         due) or exchange of, or refinance or refund, any Indebtedness of the
         Borrower or its Subsidiaries that has an outstanding principal balance
         (or Capitalized Lease Obligation, in the case of a Capital Lease)
         greater than $1,000,000 (other than (a) the Obligations and
         intercompany loans and advances among the Borrower and its
         Subsidiaries, and (b) any Indebtedness incurred pursuant to this
         Agreement).

         1.17. The Credit Agreement is hereby amended to add a new Annex VIII
thereto in the form of Annex VIII attached hereto.

         1.18. Pursuant to Section 8.16 of the Credit Agreement, the
Administrative Agent has requested, and the Borrower hereby agrees, that,
concurrently with the execution of this Amendment, the Borrower and each
Guarantor of Payment shall execute and deliver to the Administrative Agent a
Pledge Agreement, dated as of the date hereof, pledging all of the stock or
other equity interest of each Subsidiary (other than a Foreign Subsidiary) of
the Borrower or such Guarantor of Payment.

         1.19. The Borrower hereby agrees that the failure of the Borrower to
deliver any item required pursuant to, or otherwise fail to satisfy the terms
of, section 8.15(d) of the Credit Agreement, section 8.15(e) of the Credit
Agreement or Section 4 of this Amendment, within the time period specified in
such sections, shall constitute an Event of Default and, at the Administrative
Agent's sole option, all outstanding amounts of principal and all accrued but
unpaid interest thereon shall bear interest at the default rate of interest
specified in section 2.8(d) of the Credit Agreement (the "Default Rate") unless
and until the Borrower shall have satisfied, in the opinion of the
Administrative Agent, the requirements of such sections.

         SECTION 2. REPRESENTATIONS AND WARRANTIES.

         The Borrower represents and warrants as follows:

         2.1. Authorization and Validity of Amendment. This Amendment has been
duly authorized by all necessary corporate action on the part of the Borrower,
has been duly executed

                                       9
<PAGE>
and delivered by a duly authorized officer of the Borrower, and constitutes the
valid and binding agreement of the Borrower, enforceable against the Borrower in
accordance with its terms.

         2.2. Representations and Warranties. The representations and warranties
of the Credit Parties contained in the Credit Agreement or in the other Credit
Documents are true and correct in all material respects on and as of the date
hereof, as though made on and as of the date hereof, except to the extent that
such representations and warranties expressly relate to an earlier specified
date, in which case such representations and warranties are hereby reaffirmed as
true and correct in all material respects as of the date when made.

         2.3. No Event of Default. No Default or Event of Default exists or
immediately hereafter will begin to exist.

         2.4. Compliance. The Borrower is in full compliance with all covenants
and agreements contained in the Credit Agreement, as amended hereby, and the
other Credit Documents to which it is a party.

         2.5. No Claims. The Borrower is not aware of any claim or offset
against, or defense or counterclaim to, any of its or any Subsidiary's
obligations or liabilities under the Credit Agreement or any other Credit
Document.

         SECTION 3. RATIFICATIONS.

         Except as expressly modified and superseded by this Amendment, the
terms and provisions of the Credit Agreement are ratified and confirmed and
shall continue in full force and effect.

         SECTION 4. CLOSING DELIVERIES.

         Concurrently herewith:

         (a) the Borrower shall cause each Guarantor of Payment to consent and
agree to and acknowledge the terms of this Amendment;

         (b) the Borrower and each Guarantor of Payment shall execute and
deliver to the Administrative Agent a Pledge Agreement, in form and substance
satisfactory to the Administrative Agent, pursuant to which the Borrower and
each such Guarantor of Payment shall pledge all of the stock or other equity
interest of each Subsidiary (other than a Foreign Subsidiary) of the Borrower or
such Guarantor of Payment, together with the stock certificates pledged
thereunder and accompanying stock transfer powers;

         (c) the Borrower shall deliver to the Administrative Agent such
examinations and reports, in form and detail satisfactory to the Administrative
Agent, with respect to the Mortgaged Property, issued by a title company
satisfactory to the Administrative Agent, that shows each Mortgage to be a valid
first priority Lien on such Mortgaged Property, free and clear of all defects
and encumbrances except such matters of record as permitted pursuant to the
Credit Agreement;

                                       10
<PAGE>
         (d) the Borrower shall deliver to the Administrative Agent evidence of
insurance on ACORD 27 form, and otherwise satisfactory to the Administrative
Agent, of adequate personal property and liability insurance of each Credit
Party, with the Administrative Agent, on behalf of the Lenders, listed as
mortgagee, loss payee and additional insured;

         (e) the Borrower shall provide to the Administrative Agent and the
Lenders an officer's certificate certifying the names of the officers of the
Borrower and each Guarantor of Payment authorized to sign this Amendment and the
Security Documents that are being executed on the date hereof to which the
Borrower or such Guarantor of Payment is a party, together with the true
signatures of such officers and certified copies of the resolutions of the board
of directors or executive committee of the Borrower or such Guarantor of
Payment, evidencing approval of the execution and delivery of this Amendment and
the Security Documents to which the Borrower or such Guarantor of Payment is a
party;

         (f) the Borrower shall provide to the Administrative Agent and the
Lenders such opinions of counsel for the Borrower and each Guarantor of Payment,
in form and substance satisfactory to the Administrative Agent and the Lenders,
as the Administrative Agent and the Lenders may deem necessary or appropriate;

         (g) pursuant to Section 1.5 of this Amendment, the Borrower shall cause
each Eligible Subsidiary (other than S.K. Wellman S.p.A.) to deliver to the
Administrative Agent an Election to Terminate;

         (h) the Borrower shall pay to the Administrative Agent, for the pro
rata benefit of the Lenders, an amendment fee in the amount of Fifty Thousand
Dollars ($50,000);

         (i) with respect to each parcel of the Mortgaged Property, evidence to
the satisfaction of the Administrative Agent that no portion of any Mortgaged
Real Property is located in a Special Flood Hazard Area or is otherwise
classified as Class A or Class BX on the Flood Maps maintained by the Federal
Emergency Management Agency;

         (j) the Borrower shall pay all legal fees and expenses of the
Administrative Agent in connection with this Amendment and the documents
executed in connection herewith; and

         (k) the Borrower shall provide such other items and shall satisfy such
other conditions as may be reasonably required by the Administrative Agent and
the Lenders.

         SECTION 5. MISCELLANEOUS.

         5.1. Survival of Representations and Warranties. All representations
and warranties made in this Amendment shall survive the execution and delivery
of this Amendment, and no investigation by the Administrative Agent or any
Lender or any subsequent Loan or other Credit Event shall affect the
representations and warranties or the right of the Administrative Agent or any
Lender to rely upon them.

                                       11
<PAGE>
         5.2. Reference to Credit Agreement. The Credit Agreement and any and
all other agreements, instruments or documentation now or hereafter executed and
delivered pursuant to the terms of the Credit Agreement as amended hereby, are
hereby amended so that any reference therein to the Credit Agreement shall mean
a reference to the Credit Agreement as amended hereby.

         5.3. Severability. Any term or provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the term or provision so held to be invalid or unenforceable.

         5.4. Applicable Law. This Amendment shall be governed by and construed
in accordance with the laws of the State of Ohio without regard to conflicts of
laws provisions.

         5.5. Headings. The headings, captions and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.

         5.6. Entire Agreement. This Amendment is specifically limited to the
matters expressly set forth herein. This Amendment and all other instruments,
agreements and documentation executed and delivered in connection with this
Amendment embody the final, entire agreement among the parties hereto with
respect to the subject matter hereof and supersede any and all prior
commitments, agreements, representations and understandings, whether written or
oral, relating to the matters covered by this Amendment, and may not be
contradicted or varied by evidence of prior, contemporaneous or subsequent oral
agreements or discussions of the parties hereto. There are no oral agreements
among the parties hereto relating to the subject matter hereof or any other
subject matter relating to the Credit Agreement. Except as set forth herein, the
Credit Agreement shall remain in full force and effect and be unaffected hereby.

         5.7. Waiver of Claims. The Borrower, by signing below, hereby waives
and releases Administrative Agent and each of the Lenders and their respective
directors, officers, employees, attorneys, affiliates and subsidiaries from any
and all claims, offsets, defenses and counterclaims of which Borrower is aware,
such waiver and release being with full knowledge and understanding of the
circumstances and effect thereof and after having consulted legal counsel with
respect thereto.

         5.8. Counterparts. This Amendment may be executed by the parties hereto
separately in one or more counterparts and by facsimile signature, each of which
when so executed shall be deemed to be an original, but all of which when taken
together shall constitute one and the same agreement.

                  [Remainder of page intentionally left blank.]

                                       12
<PAGE>
         5.9. JURY TRIAL WAIVER. EACH OF THE PARTIES TO THIS AMENDMENT HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE OTHER CREDIT
DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY HERETO
HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER
PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER, AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

         IN WITNESS WHEREOF, this Amendment has been duly executed and delivered
as of the date first above written.

                                          HAWK CORPORATION

                                          By:___________________________
                                          Name:_________________________
                                          Title:  _________________________

                                          KEYBANK NATIONAL
                                          ASSOCIATION,
                                            as the Administrative Agent and as a
                                            Lender

                                          By:____________________________
                                          Name: _________________________
                                          Title: __________________________

                                          NATIONAL CITY BANK

                                          By:____________________________
                                          Name:_________________________
                                          Title:__________________________

                                          LASALLE BANK NATIONAL
                                          ASSOCIATION

                                          By:____________________________
                                          Name:_________________________
                                          Title:__________________________

                              Signature Page 1 of 2
<PAGE>
                                          COMERICA BANK

                                          By:____________________________
                                          Name:_________________________
                                          Title:__________________________

                                          BANK ONE, N.A.

                                          By:___________________________
                                          Name:_________________________
                                          Title:__________________________

                                          HARRIS TRUST AND SAVINGS
                                          BANK

                                          By:____________________________
                                          Name:_________________________
                                          Title:__________________________

                              Signature Page 2 of 2
<PAGE>
                                   ANNEX VIII

                                     FORM OF

                           BORROWING BASE CERTIFICATE

Calculated as of: __________________

Calendar Month Ended:__________________

         I, the undersigned and ________________ of Hawk Corporation, a Delaware
corporation (the "Borrower"), do hereby certify pursuant to Credit Agreement,
dated as of May 1, 1998, as amended (the "Credit Agreement"), among Borrower,
the lending institutions listed on Annex I thereto (collectively, the
"Lenders"), and KeyBank National Association, as administrative agent for the
Lenders (the "Administrative Agent"), that the following calculations have been
made in accordance with the provisions of the Credit Agreement. All capitalized
terms used herein and not defined herein shall have the meaning given to such
terms in the Credit Agreement.

A.        CALCULATIONS

         1.       ACCOUNTS

                  a.  Domestic Accounts Receivable          $________________

                  b.  Ineligible Accounts                   $________________

                  c.  Eligible Accounts Receivable          $_________________
                       (a minus b)

                  d.  85% of Eligible Accounts Receivable   $________________

         2.       INVENTORY

                  a.  Domestic Inventory                    $________________

                  b.  Ineligible Inventory                  $________________

                  c.  Eligible Inventory                    $________________
                       (a minus b)

                  d.  Eligible Inventory                    $________________*
                           *cannot exceed inventory
                             cap of $18,000,000)

                                      A-1
<PAGE>
B.       AVAILABILITY

         1.       Borrowing Base                            $________________
                  (the sum of 1d. and 2d. above)

         2.       Revolving Credit Exposure                 $________________

         3.       Aggregate principal amount of Term        $________________
                  Loans outstanding

         4.       Availability                              $_________________
                  (1 minus 2 and 3 above)

         For purposes of inducing the Administrative Agent and the Lenders to
grant Loans and issue Letters of Credit to the Borrower pursuant to the terms of
the Credit Agreement, I hereby certify that this Borrowing Base Certificate and
the information contained herein is true and correct and that no Default or
Event of Default has occurred under the Credit Agreement.

                                            HAWK CORPORATION

                                            By:_________________________
                                            Name: ______________________
                                            Title: _______________________

                                      A-2
<PAGE>
                            GUARANTOR ACKNOWLEDGMENT

         Each of the undersigned consents and agrees to and acknowledges the
terms of the foregoing Amendment No. 3 to Credit Agreement. The undersigned
specifically agrees to the waivers set forth in such agreement, including, but
not limited to, the jury trial waiver. Each of the undersigned further agrees
that the obligations of the undersigned pursuant to the Guaranty of Payment
executed by the undersigned shall remain in full force and effect and be
unaffected hereby.

         Each of the undersigned hereby waives and releases the Administrative
Agent and the Lenders and the directors, officers, employees, attorneys,
affiliates and subsidiaries of the Administrative Agent and the Lenders from any
and all claims, offsets, defenses and counterclaims of which the undersigned is
aware, such waiver and release being with full knowledge and understanding of
the circumstances and effect thereof and after having consulted legal counsel
with respect thereto.

                                          FRICTION PRODUCTS CO.
                                          S.K. WELLMAN CORP.
                                          HELSEL, INC.
                                          LOGAN METAL STAMPINGS, INC.
                                          HAWK MOTORS, INC. (fka Hutchinson
                                            Products LLC)
                                          SINTERLOY CORPORATION
                                          HAWK BRAKE, INC.
                                          S.K. WELLMAN HOLDINGS, INC.
                                          WELLMAN FRICTION PRODUCTS U.K.
                                            CORP.
                                          CLEARFIELD POWDERED METALS,
                                            INC.
                                          ALLEGHENY POWDER METALLURGY,
                                            INC.
                                          QUARTER MASTER INDUSTRIES, INC.
                                          HAWK MIM, INC.
                                          TEX RACING ENTERPRISES, INC.
                                          NET SHAPE TECHNOLOGIES LLC

                                          By:__________________________________
                                          Name: _______________________________
                                                _____________ of each of the
                                                foregoing companies
<PAGE>
                                CREDIT AGREEMENT

                                   dated as of
                                   May 1, 1998

                                      among

                                HAWK CORPORATION,
                                as the Borrower,

                     THE LENDING INSTITUTIONS NAMED THEREIN,
                                   as Lenders,

                                       and

                          KEYBANK NATIONAL ASSOCIATION
                           as the Administrative Agent

                              ---------------------

                                 AMENDMENT NO. 3
                                       to
                                CREDIT AGREEMENT

                                   dated as of
                                November 9, 2001
                              ---------------------

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