Document:

Unassociated Document

     

    
      
        
          	
                  

                	
                     

                	
                   
      Colfax Corporation

                
	 
      	
                  8730
      Stony Point Parkway

                
	 
      	
                  Suite
      150

                
	 
      	
                  Richmond,
      VA  23235

                
	 
      	
                  USA

                
	 
      	
                  Tel:  (804)
      560-4070

                
	
                  October
      8, 2010

                	
                  Fax:  (804)
      560-4076

                
	 
      	
                  www.colfaxcorp.com

                

        

      

    

    

    Mr. G.
Scott Faison

    Chief
Financial Officer

    Colfax
Corporation

    14215
Hickory Oaks Lane

    Ashland,
Virginia 23005

    

    Dear
Scott,

    

    On behalf
of the Board of Directors of Colfax Corporation (the “Company”), I agree that
your employment is terminating pursuant to the Section 1.1(c) of the employment
agreement between you and the Company dated as of April 29, 2008.  In
that connection, you will be terminating your employment at the beginning of
business on October 18, 2010.  Immediately following your termination
date of October 18, 2010 (the “Termination Date”), you will be retained as a
financial advisor to the Company on a monthly consulting basis.  This
letter agreement (the “Letter Agreement”) sets forth the terms and conditions of
your engagement as a financial advisor.

    

    
      	
              1)

            	
              Term

            

    

    

    The term
of your engagement as a financial advisor shall begin immediately following the
Termination Date and continue through February 28, 2011 or, if later, the filing
of the Company’s Annual Report on Form 10-K for the period ending December 31,
2010 (the “Term”).  This agreement can be terminated in accordance
with Section 6, below, by the Company should you fail to perform the services
provided for under the Letter Agreement or breach the terms of the Employment
Agreement dated April 29, 2008.  This agreement can be terminated by
you should the Company fail to perform its obligations under the Letter
Agreement or breach the terms of the Employment Agreement.

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      	
              2)

            	
              Duties

            

    

    

    During
the Term, you will provide assistance to the Company as needed and requested in
connection with financial advice, counsel, information, transition and
compliance matters, including, but not limited to providing assistance in the
preparation and implementation of the 2011 budget and accounting for the costs
and liabilities associated with asbestos litigation.  In this
connection, you agree to reasonably cooperate in the preparation of all Company
Securities and Exchange Commission filings through the filing of the Form 10-K
for the year ending December 31, 2010, including the provision of any internal
certifications that the Company may reasonably request relating to the Company’s
internal controls, results of operations and financial condition for the periods
prior to the Termination Date, in a form similar to the certification attached
hereto as Exhibit A.  You will report to the Company’s Chief Financial
Office.  You may also report to other members of senior management as
the Chief Executive Officer may designate from time to time.  You are
not required to perform your duties at any specific location but are generally
expected to perform services at the Company’s headquarters.  You will
retain your current laptop computer and cellphone, for use in connection with
providing the services hereunder, and will be provided with access to the Colfax
e-mail system, with appropriate security and provision for indicating in e-mail
communications that you are an independent contractor, to the extent reasonable
and convenient for the provision of your services hereunder.

    

    
      	
              3)

            	
              Compensation

            

    

    

    You will
be paid on an hourly rate of $275.00 during the Term of this Letter Agreement,
no less frequently than monthly, and will be required to provide a statement of
the hours you worked, the matter on which you worked and a brief description of
the work performed.  Whether you work the hours or not, you will be
paid for a minimum of 104 hours per month for the Term of the Letter
Agreement.  Further as agreed to, your personal goals score for 2010
MIP bonus calculation will be a 1.0.

    

    
      	
              4)

            	
              Equity
      Grants

            

    

    

    The
actions of this Section 4 will become effective on November 15,
2010.  The deferred delivery of all remaining 2001 Phantom Stock
shares of Company common stock (12,483 shares) will be accelerated and delivered
to you on or about November 15, 2010.  Vesting will be accelerated for
15,401 stock options from your 2009 stock option grants and for 9,670 stock
options from your 2010 stock option grants.  The post-termination of
employment exercise period for all vested stock options that you hold on the
November 15, 2010 will be extended to two years from November 15, 2010 but, in
no event beyond the remaining term of the stock option.

    
 

    
      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
      
        	
                5)

              	
                Independent
      Contractor

              

      

    

    

    At all
times during the term of this Letter Agreement and while performing Services
hereunder, you are and will remain an independent contractor in its relationship
to the Company.  As such, the Company shall not be responsible for
withholding taxes with respect to any compensation paid to you
hereunder.  Additionally, you shall have no claim against the Company
hereunder for vacation pay, sick leave, retirement benefits, social security,
worker’s compensation, health or disability benefits, unemployment insurance
benefits, or employee benefits of any kind, provided, however, that this in no
way limits your entitlement to certain severance, retirement and welfare
benefits pursuant to the terms of the Employment Agreement or otherwise as a
terminated employee.  You acknowledge and agree that the Company will
not deduct income, Social Security or other taxes on any payments made to you
hereunder.  You further agree that it is solely your responsible for
the payment of any such taxes due to the proper taxing
authorities.  You shall indemnify, defend and hold the Company
harmless for any assessments of such taxes, including any interest and
penalties, imposed upon the Company by reason of your failure to pay such
taxes.  The Company agrees to indemnify you pursuant to the same terms
as the indemnification policy of the Company that was applicable to you prior to
your Termination Date as if the services you provide pursuant to this Letter
Agreement were being provided by you as an employee.  You warrant that
the services provided pursuant to this Letter Agreement will be performed in a
professional and workmanlike manner, and the Company agrees that you will have
no liability to the Company arising out of the services provided pursuant to
this Letter Agreement except in the case of your willful misconduct or gross
negligence.

    

    
      
        	
                6)

              	
                Early
      Termination

              

      

    

    

    The
Company may terminate your services hereunder should you fail to perform the
services provided for under the Letter Agreement or you breach the terms of the
Employment Agreement.  Such termination shall be made by written
notice delivered to you effective as stated in such notice but no earlier than
15 days following the date of the notice.   You will not be
deemed to have failed to perform the services provided for under the Letter
Agreement or breached the terms of the Employment Agreement if such failure or
breach can be remedied and is remedied within 15 calendar days after written
demand for substantial performance or cure of the breach is delivered by the
Company which specifically identifies the manner in which the Company believes
that you have not substantially performed your duties or have breached the
Employment Agreement.

    

    
      	
              7)

            	
              Successors
      and Assigns

            

    

    

    This
Agreement cannot be assigned by the Company, other than in connection with a
merger, acquisition or other similar corporate transaction, without your
consent.  This Agreement shall be binding upon and shall inure to your
benefit and the benefits of your heirs, executors, administrators and
beneficiaries, and shall be binding upon and inure to the benefit of the Company
and its successors and assigns.

    

    
      	
              8)

            	
              Governing
      Law

            

    

    

    This
Agreement is governed by and is to be construed, administered, and enforced in
accordance with the laws of the Commonwealth of Virginia without regard to
conflicts of law principles.

    

    The
Company very much appreciates your willingness to work as the role of financial
advisor.  Please sign a copy of this Letter Agreement to indicate your
agreement to the terms and conditions set forth above.

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        	
                Very
      truly yours,

              
	 
      
	
                /s/ Clay H. Kiefaber

              
	
                Clay
      H. Kiefaber

              
	
                President
      and Chief Executive Officer

              

      

    

    

    AGREED
AND ACCEPTED as of the date indicated below:

    

    
      
        	
                /s/ G. Scott Faison

              
	
                G.
      Scott Faison

              

      

    

    

    
      
        	
                October 11, 2010

              
	
                Date

              

      

    

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    

    EXHIBIT
A

    

    CERTIFICATION

    

    I hereby certify that I have read the
[Annual Report on Form 10-K][Quarterly Report on Form 10-Q] and that no facts
have come to my attention that cause me to believe that the Chief Financial
Officer of Colfax Corporation should not sign the certifications required under
Section 302 and Section 906 of the Sarbanes-Oxley Act of 2002.

    

    
      
        
          
            
              
                
                  	
                          Dated:

                        	
                              

                        	 
      	 
      
	 
      	 
      	 
      	
                          G.
      Scott
FaisonUnassociated Document

    
      
        
          
             

          

        

      

    

    
      
        	
                

              	 
      	
                Colfax
      Corporation

              
	
                 
      8730
      Stony Point Parkway

              
	
                 
      Suite
      150

              
	
                 
      Richmond,
      VA  23235

              
	 
      USA
	
                 
      Tel:  (804)
      560-4070

              
	
                
                  September
      16, 2010

                

              	
                Fax:  (804)
      560-4076

              
	
                 
      www.colfaxcorp.com

              

      

    

     

    Mr.
Thomas M. O’Brien

    Senior
Vice President, General Counsel and Secretary

    Colfax
Corporation

    200
American Metro Blvd., Suite 111

    Hamilton
Township, NJ 08619

    

    Dear
Tom,

    

    On behalf
of the Board of Directors of Colfax Corporation (the “Company”), I accept your
resignation from your position as Senior Vice President, General Counsel and
Secretary of the Company, and from all other officer or director positions with
Company subsidiaries, effective at the close of business on September 26,
2010.  Immediately following your retirement date of October 16, 2010
(the “Retirement Date”), you will be retained as a Legal Advisor to the Company
on an hourly consulting basis.  This letter agreement (the “Letter
Agreement”) sets forth the terms and conditions of your engagement as Legal
Advisor.

    

    
      	
               
      

            	
              1)

            	
              Term

            

    

    

    The term
of your engagement as Legal Advisor shall begin immediately following the
Retirement Date and continue for two (2) years (the “Term”).  This
agreement can be terminated in accordance with Section 6, below, by the Company
should you fail to perform the services provided for under the Letter Agreement
or breach the terms of the Employment Agreement.  This agreement can
be terminated by you should the Company fail to perform its obligations under
the Letter Agreement or breach the terms of the Employment
Agreement.

     

    
      	
               
      

            	
              2)

            	
              Duties

            

    

    

    During
the Term, you will provide assistance to the Company as needed and requested in
connection with litigation and other legal and compliance matters; provided,
however, that you are obligated to provide services in excess of 30 hours per
month only to the extent that you are reasonably available to provide such
services and as provided for in the Employment Agreement. You will report to the
Company’s General Counsel.  You may also report to other members of
senior management as the Chief Executive Officer may designate from time to
time.  You are not required to perform your duties at any specific
location subject to the requirements to be present at meetings, trials and
hearings in connection with the matters that you are handling; provided,
however, that you will be provided access to the Company’s New Jersey office for
as long as the Company operates such office.

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    
       

      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  

                                	 
      	
                                  Colfax
      Corporation

                                
	
                                   
      8730
      Stony Point Parkway

                                
	
                                   
      Suite
      150

                                
	
                                   
      Richmond,
      VA  23235

                                
	 
      USA
	
                                   
      Tel:  (804)
      560-4070

                                
	
                                   

                                	
                                  Fax:  (804)
      560-4076

                                
	
                                   
      www.colfaxcorp.com

                                

                        

                      

                    

                  

                

              

            

          

        

      

       

    

    You will
retain your current laptop computer and cellphone, for use in connection with
providing the services hereunder, and will be provided with access to the Colfax
e-mail system, with appropriate security and provision for indicating in e-mail
communications that you are an independent contractor, to the extent reasonable
and convenient for the provision of your services hereunder.

     

    Further,
you understand and agree that your ongoing obligations under Section 6.4 of the
Executive Employment Agreement dated April 22, 2008, as amended (the “Employment
Agreement”) specifically include, but are not limited to, providing testimony
and other assistance that may be requested in connection with pending
asbestos-related insurance coverage disputes.  Consistent with Section
6.4 of the Employment Agreement, all expenses in providing services under this
Agreement shall be reimbursed upon submission to the Company.

    

    
      	
               
      

            	
              3)

            	
              Compensation

            

    

    

    You will
be paid on an hourly rate of $250.00 during the Term of this Letter Agreement,
no less frequently than monthly, and will be required to provide a statement of
the hours you worked, the matter on which you worked and a brief description of
the work performed.  Whether you work the hours or not you will be
paid for a minimum of 30 hours per month for the Term of the Letter
Agreement.

     

    
      	
               
      

            	
              4)

            	
              Equity
      Grants

            

    

    

    The
deferred delivery of all remaining 2001 Phantom Stock shares of Company common
stock (14,980 shares) will be accelerated and delivered to you on or about the
Retirement Date.]  Vesting will be accelerated for 11,201 stock
options from your 2009 stock option grants and the post-termination of
employment exercise period for all vested stock options that you hold on the
Retirement Date will be extended to two years from the Retirement Date but, in
no event beyond the remaining term of the stock option.

     

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      

                                    	 
      	
                                      Colfax
      Corporation

                                    
	
                                       
      8730
      Stony Point Parkway

                                    
	
                                       
      Suite
      150

                                    
	
                                       
      Richmond,
      VA  23235

                                    
	 
      USA
	
                                       
      Tel:  (804)
      560-4070

                                    
	
                                       

                                    	
                                      Fax:  (804)
      560-4076

                                    
	
                                       
      www.colfaxcorp.com

                                    

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

      

    

    
      	
               
      

            	
              5)

            	
              Independent
      Contractor

            

    

     

    At all
times during the term of this Letter Agreement and while performing Services
hereunder, you are and will remain an independent contractor in its relationship
to the Company.  As such, the Company shall not be responsible for
withholding taxes with respect to any compensation paid to you
hereunder.  Additionally, you shall have no claim against the Company
hereunder for vacation pay, sick leave, retirement benefits, social security,
worker’s compensation, health or disability benefits, unemployment insurance
benefits, or employee benefits of any kind, provided, however, that this in no
way limits your entitlement to certain severance, retirement and welfare
benefits pursuant to the terms of the Employment Agreement or otherwise as a
terminated employee.  You acknowledge and agree that the Company will
not deduct income, Social Security or other taxes on any payments made to you
hereunder.  You further agree that it is solely your responsible for
the payment of any such taxes due to the proper taxing
authorities.  You shall indemnify, defend and hold the Company
harmless for any assessments of such taxes, including any interest and
penalties, imposed upon the Company by reason of your failure to pay such
taxes.  The Company agrees to indemnify you pursuant to the same terms
as the indemnification policy of the Company that was applicable to you prior to
your Retirement Date as if the services you provide pursuant to this Letter
Agreement were being provided by you as an employee.  You warrant
that the services provided pursuant to this Letter Agreement will be
performed in a professional and workmanlike manner, and the Company agrees that
you will have no liability to the Company arising out of the services provided
pursuant to this Letter Agreement except in the case of your willful misconduct
or gross negligence.

     

    
      	
            	
              6)

            	
              Early
      Termination

            

    

     

    The
Company may terminate your services hereunder should you fail to perform the
services provided for under the Letter Agreement or you breach the terms of the
Employment Agreement.  Such termination shall be made by written
notice delivered to you effective as stated in such notice but no earlier than
15 days following the date of the notice.   You will not be
deemed to have failed to perform the services provided for under the Letter
Agreement or breached the terms of the Employment Agreement if such failure or
breach can be remedied and is remedied within 15 calendar days after written
demand for substantial performance or cure of the breach is delivered by the
Company which specifically identifies the manner in which the Company believes
that you have not substantially performed your duties or have breached the
Employment Agreement.

    

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          	
                                  

                                	 
      	
                                  Colfax
      Corporation

                                
	
                                   
      8730
      Stony Point Parkway

                                
	
                                   
      Suite
      150

                                
	
                                   
      Richmond,
      VA  23235

                                
	 
      USA
	
                                   
      Tel:  (804)
      560-4070

                                
	
                                   

                                	
                                  Fax:  (804)
      560-4076

                                
	
                                   
      www.colfaxcorp.com

                                

                        

                      

                    

                  

                

              

            

          

        

      

       

    

    
      	
            	
              7)

            	
              Successors and
      Assigns

            

    

    

    This
Agreement cannot be assigned by the Company, other than in connection with a
merger, acquisition or other similar corporate transaction, without your
consent.  This Agreement shall be binding upon and shall inure to your
benefit and the benefits of your heirs, executors, administrators and
beneficiaries, and shall be binding upon and inure to the benefit of the Company
and its successors and assigns.

    

    
      	
            	
              8)

            	
              Governing
      Law

            

    

    

    This
Agreement is governed by and is to be construed, administered, and enforced in
accordance with the laws of the State of New Jersey, without regard to conflicts
of law principles.

    

    The
Company very much appreciates your willingness to work as the role of Legal
Advisor.  Please sign a copy of this Letter Agreement to indicate your
agreement to the terms and conditions set forth above.

    

    
      
        	 
      	
                Very
      truly yours,

              
	 
      	 
      
	 
      	
                /s/ Clay H. Kiefaber

              
	 
      	
                Clay
      H. Kiefaber

              
	 
      	
                President
      and Chief Executive Officer

              

      

    

    

    AGREED
AND ACCEPTED as of the date indicated below:

    

    
      
        
          	
                  /s/ Thomas M. O’Brien

                
	
                  Thomas
      M. O’Brien

                
	 
      
	
                  September 20,
      2010

                
	
                  Date

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