Document:

EX-10.1.6

EXHIBIT 10.1.6

TENTH AMENDMENT TO THE AMENDED AND RESTATED

KAYDON CORPORATION

EMPLOYEE STOCK OWNERSHIP AND THRIFT PLAN

          This Amendment, made this 18th day of November, 2008, by the duly authorized officers of
Kaydon Corporation (“Employer”).

WITNESSETH:

          WHEREAS, Section 10.1 of the Kaydon Corporation Employee Stock Ownership and Thrift Plan
(“plan”) as amended and restated on February 19, 2002, authorizes the Employer to amend the plan;
and

          WHEREAS, the Employer wishes to amend the plan in order to change the eligibility and
participation requirements for all Employees and add automatic payroll deductions for Participants
who are not covered by a collective bargaining agreement with the Employer;

          WHEREAS, the Employer is required to amend the plan to reflect the final regulations under
Code Section 415;

          WHEREAS, this Amendment is intended as good faith compliance with the requirements of Code
Section 415 and is to be construed in accordance with the guidance issued thereunder; and

          WHEREAS, this Amendment supersedes the provisions of the plan to the extent those provisions
are affected by or inconsistent with the provisions of this Amendment; and

          NOW, THEREFORE, the Employer amends the plan as follows:

     1. The first sentence of Section 2.7 is replaced by the following:

     “Effective January 1, 2009, an Employee is any persons employed by an Employer who receives
compensation for personal services rendered to the Employer which is subject to withholding for
federal income tax purposes, except nonresident aliens who do not receive any earned income (as
defined in Code Section 911(d)(2)) from an Employer which constitutes United States source income
(as defined in Code Section 861(a)(3)), Leased Employees, Temporary employees, interns or co-op
student employees.”

 

 

     2. Section 3.1(a) is replaced in its entirety by the following paragraph:

     “(a) Eligibility Requirements. Effective January 1, 2009, an Employee shall be
eligible to become an Active Participant on the first entry date after the Employee attains age 18
and completes one Hour of Service with the Employer.”

     2. The last sentence in the first paragraph of Section 3.2 is deleted and replaced
by the following sentences:

     “Effective January 1, 2009, an Employee shall become an Active Participant on the first Entry
Date after the Employee satisfies the eligibility requirements to participate in the plan. “Entry
Date” means the first administratively feasible payroll period following satisfaction of the
eligibility requirements. No prior or special rule under subsection (a) or (b) below shall apply
after January 1, 2009 to the extent it would otherwise delay an Employee from becoming an Active
Participant under the plan.”

     3. Section 4.4(g) is amended to add the following:

     “Effective January 1, 2008, Section 415 Compensation includes:

     (i) Elective Contributions. Elective contributions that are excluded from
gross income by Code Sections 125, 132(f)(4), 402(g)(3) or 457;

     (ii) Deemed Section 125 Compensation. Elective contributions
for payment of group health coverage that are not available to a Participant in cash because the
Participant is unable to certify to alternative health coverage but only if the Employer does not
request or collect information regarding the Participant’s alternative health coverage as part of
the enrollment process for the group health plan;

     (iii) Compensation Paid after Employment Terminates.
The following amounts provided they are paid by the later of 2 1/2 months after the Participant’s
employment terminates or the end of the Limitation Year that includes the date of termination:

          (A) Regular Compensation. Regular compensation for services performed during
the Participant’s regular working hours, or compensation for services performed outside the
Participant’s regular working hours (such as overtime or shift differential), commissions, bonuses
or other similar payments, provided they would have been made had the Participant continued in
employment with the Employer;

          (B) Leave Cashouts. Payments made for unused accrued bona fide sick,
vacation, or other leave that the Participant would have been able to use if employment had
continued; or

          (C) Deferred Compensation. Payments made pursuant to a nonqualified unfunded
deferred compensation plan that would have been paid at the same time had employment continued, but
only to the extent the payment is includible in the Participant’s gross income;

 

 

     (iv) Salary Continuation. To the extent directed by the Administrator in a
uniform and nondiscriminatory manner, salary continuation payments to:

          (A) Qualified Military Service. A Participant who does not currently
perform services for the Employer due to Qualified Military Service to the extent the payments do
not exceed the amounts the Participant would have received if services had continued to be
performed rather than entering Qualified Military Service; or

          (B) Disability. A Participant who is permanently and totally disabled (as defined in
Code Section 22(e)(3)) for a fixed or determinable period; and

     (v) Amounts Paid in Next Plan Year. The
Administrator may elect to include amounts earned but not paid during the Limitation Year solely
because of the timing of pay periods and pay dates, provided the amounts are paid during the first
few weeks of the next Limitation Year, the amounts are included on a uniform and consistent basis
with respect to all similarly situated employees, and no amount is included in more than one
Limitation Year.”

     4. Section 4.5 is amended to read as follows:

     “4.5 Excess Additions. Effective January 1, 2008, the following rules shall
apply to Excess Additions.

     (a) Before Contribution. If the Annual Additions limitation will be exceeded
for a Participant, the Employer Contribution for the Plan Year may be reduced before payment to the
Trustee to the maximum amount permitted under Section 4.4.

     (b) After Contribution. If the Annual Additions limitation under Section 4.4
is exceeded for a Plan Year, the Employer will follow the requirements of the Employee Plans
Compliance Resolution System (EPCRS) or any successor procedures issued by the Internal Revenue
Service to correct the excess Annual Addition.”

     5. The following sentence is added to the end of Section 5.1(a)(iv):

     “Notwithstanding anything in this section or the plan to the contrary, effective January 1,
2008, for purposes of determining Elective Contributions, the contributions corresponding to a
Participant’s payroll deductions may only apply against amounts that are, or could be, considered
compensation under Code Section 415(c)(3) and Regulations Section 1.415(c)-2.”

     6. Section 5.2(a) is amended to add subsection (iv) below.

     “(iv) Automatic Payroll Deductions. Effective January 1, 2009, the
Compensation of each Employee who is eligible to become an Active Participant and is not covered by
the terms of a collective bargaining agreement shall be subject to automatic payroll deductions as
provided below.

          (A) New Participants After December 31, 2008. The
Compensation of each Employee who becomes eligible to participate after December 31,

 

 

2008 (including Employees rehired after this date) shall be reduced by 3% pretax payroll
deductions, unless and until the Employee elects a higher or lower deduction rate or elects no
payroll deduction. Automatic payroll deductions shall begin as soon as administratively feasible
after the Employee becomes eligible to participate, but no earlier than 30 days after the
Employee’s date of hire.

          (B) Existing Employees. The Compensation of each Employee who is not making
Elective Contributions as of January 1, 2009 shall be reduced by 3% pretax payroll deductions,
unless and until the Employee elects a higher or lower deduction rate or elects no payroll
deduction. Automatic payroll deductions shall begin as soon as administratively feasible after
January 1, 2009, but no earlier than 30 days after that date.

          (C) Automatic Payroll Deduction Notice. Within a reasonable
period before automatic payroll deductions begin and before the first day of each Plan Year
thereafter, the Employer must provide notice to each affected Employee describing the automatic
payroll deduction and the Employee’s right to elect no payroll deduction or a different deduction
rate, including the procedure for exercising that right and the timing for implementation of any
such election.

     7. Section 5.7(c) is amended to read as follows:

     “(c) ADP Compensation. Effective January 1, 2009, ADP Compensation means the Employee’s
compensation as defined in Code Section 414(s) and Regulations for the applicable Plan Year. In
accordance with the Regulations, the Employer may elect to determine ADP Compensation for a Plan
Year based on the calendar year ending within that Plan Year. ADP Compensation shall not exceed
the Annual Compensation Limit.”

	 	 	 	 	 
	 	KAYDON CORPORATION

By Debra K. Crane

 	 
	 	                  /s/ Debra K. Crane
 	 
		Its Vice President, General Counsel 	
		and Secretary 	
	 
	 	And 

Anthony T. Behrman

 	 
	 	                        /s/ Anthony T. Behrman
 	 
	 	Its Vice President — Human ResourcesEX-10.2

EXHIBIT 10.2

KAYDON CORPORATION

EXECUTIVE MANAGEMENT BONUS PROGRAM

(Amended and Restated Effective February 19, 2009)

	 	1.	 	Definitions. The following terms have the meanings indicated unless a different meaning is
clearly required by the context:

     “Approval Date” means March 2, 2005, which is the date on which this Bonus Plan was approved
by the Board of Directors of the Company.

     “Bonus Plan” means this Kaydon Corporation Executive Bonus Program, as amended from time to
time.

     “Cause” means:

	 	(i)	 	any act or failure to act by Participant done with the intent to harm in any material
respect the financial interests or reputation of the Company or any affiliated companies;
	 
	 	(ii)	 	Participant being convicted of (or entering a plea of guilty or nolo contendere to) a
felony (other than a felony involving a motor vehicle not involving alcohol or drugs);
	 
	 	(iii)	 	Participant’s dishonesty, misappropriation or fraud with regard to the Company or any
affiliated companies, including (but not limited to) any falsification of company records or
reports (other than good faith expense account disputes);
	 
	 	(iv)	 	a grossly negligent act or failure to act by Participant which has a material adverse
effect on the Company or any affiliated companies; or
	 
	 	(v)	 	the continued refusal to follow the directives of the Board or its designees which are
consistent with Participant’s duties and responsibilities; provided that the foregoing refusal
shall not be “cause” if Participant in good faith believes that such direction is illegal,
unethical or immoral and promptly so notifies the Board in writing.

     “Change in Control” means (i) the failure of the Continuing Directors at any time to
constitute at least a majority of the Board of Directors of the Company, (ii) the acquisition by
any Person other than an Excluded Holder of beneficial ownership (within the meaning of Rule 13d-3
issued under the Securities Exchange Act of 1934, as amended) of 20% or more of the outstanding
Common Stock of the Company of the combined voting power of the Company’s outstanding voting
securities, (iii) the approval by the stockholders of the Company of a reorganization, merger or
consolidation unless with a Permitted Successor, or (iv) the approval by the stockholders of the
Company of a complete liquidation or dissolution of the Company or a sale or disposition of all or
substantially all of its assets other than to a Permitted Successor.

     “Committee” means the Compensation Committee of the Company’s Board of Directors, each of the
members of which is a “non-employee director” within the meaning of Rule 16b-3.

     “Company” means Kaydon Corporation and any of its wholly-owned subsidiaries or affiliates.

     “Continuing Directors” means the individuals constituting the Board of Directors of the
Company on the Approval Date, and any subsequent directors whose election or nomination for
election was approved by a vote of 2/3 or more of the individuals who are then Continuing
Directors, but specifically excluding any individual whose initial assumption of office occurs as a
result of either an actual or threatened election contest or other
actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the
Board of Directors of the Company.

 

 

     “Excluded Holder” means any Person who on the Approval Date was the beneficial owner of 20% or
more of the outstanding Common Stock of the Company, a subsidiary of the Company, any employee
benefit plan of the Company or any subsidiary of the Company or any trust holding such Common Stock
pursuant to the terms of an employee benefit plan of the Company.

     “Executive Officer” means the Chief Executive Officer (“CEO”), the Chief Financial Officer,
the Chief Operating Officer and such other Senior Vice Presidents or other senior executive
officers of the Company as the Committee shall designate from time to time.

     “Good Reason” means (a) the assignment of a Participant to any duties or responsibilities that
are a reduction of, or are materially inconsistent with, the Participant’s position, duties,
responsibilities or status on the Participation Date, (b) a change in a Participant’s reporting
responsibilities or titles in effect on the Participation Date that results in a reduction of the
Participant’s responsibilities or position, (c) the reduction of a Participant’s annual salary,
level of benefits (except for a reduction uniformly applicable to all similarly situated
executives), or projected Supplemental Executive Retirement Plan benefits, or (d) transfer of the
Participant to a location more than forty (40) miles from the Participant’s location of employment
on the Participation Date which requires a change in residence or a material increase in the amount
of travel normally required of the Participant in connection with his employment or such other
definition as is provided in any Employment Agreement between the Company and a Participant.

     “Participation Date” means the date on which a Participant first becomes a participant under
the Bonus Plan.

     “Permitted Successor” means a corporation that immediately after the consummation of a
transaction described in the definition of “Change in Control” satisfies all of the following
criteria: (a) at least 60% of the voting securities of such corporation is beneficially owned by
Persons who were the beneficial owners of the Company’s Common Stock immediately prior to such
transaction, (b) no Person other than an Excluded Holder beneficially owns, directly or indirectly,
20% or more of the outstanding voting securities of such corporation and (c) at least a majority of
the Board of Directors of such corporation is comprised of Continuing Directors.

     “Person” means a natural person, corporation, partnership, limited liability company,
government or political subdivision, agency or instrumentality of a government.

	 	2.	 	Purpose. The purpose of this Bonus Plan is to provide annual incentives to certain senior
executive officers in a manner designed to reinforce the Company’s performance goals; to link a
significant portion of participants’ compensation to the achievement of such goals; and to continue
to attract, motivate and retain key executives on a competitive basis.
	 
	 	3.	 	Participation. Participants in this Bonus Plan are the Executive Officers of the Company.
The Committee shall determine the effective date of a Participant’s participation in this Bonus
Plan and shall notify all Participants of their selection for participation in writing.
	 
	 	4.	 	Performance Metric and Adjustments. The metric, or benchmark, against which Company
performance shall be measured for purposes of determining whether bonuses shall be awarded to
Participants, and the amount of such bonuses, shall be earnings before interest, taxes,
depreciation and amortization, as further adjusted or defined by the Committee from time to time
(“EBITDA”) from continuing operations.
	 
	 	5.	 	Performance Objective. The performance objective for each year will be Target EBITDA, which
shall be determined by the Committee each year at a regular Board of Directors meeting occurring
prior to the 90th day of the year for which Target EBITDA is to be determined. In conjunction with,
or promptly after, the presentation of the annual budget for the following year, management will
present to the Committee a recommended Target EBITDA for the following fiscal year. The Committee
shall evaluate the recommended Target EBITDA and Budget and may
determine the final Target EBITDA utilizing this information and any
additional information that it deems relevant.

 

 

	 	6.	 	Bonus Calculations. Participant bonuses shall be based on the level of EBITDA achieved for
the fiscal year, compared to Target EBITDA for that year, in accordance with the following:

	 	(a)	 	No Bonus payout shall be made if EBITDA achieved is equal to or less than 85% of Target
EBITDA;
	 
	 	(b)	 	Bonus payments will equal 4% of base salary for each Participant other than the CEO
(“Non-CEO Participants”), and 6.7% of base salary for the CEO, for each 1% that EBITDA achieved for
the year exceeds 85% of Target EBITDA (or 6.6% of base salary for the CEO for the 1% incremental
achieved at 87%, 90%, 93%, 96% and 99% of Target EBITDA), up to 100% of Target EBITDA, and 4% of
base salary for Non-CEO Participants, and 10% of base salary for the CEO, for each 1% that EBITDA
achieved exceeds 100% of Target EBITDA. An example would be:

	 	(i)	 	if EBITDA is 86% of Target EBITDA, the bonus will be 4.0% of a Non-CEO Participant’s base
salary and 6.7% of the CEO’s base salary;
	 
	 	(ii)	 	if EBITDA is 90% of Target EBITDA, the bonus will be 20% of a Non-CEO Participant’s base
salary and 33.3% of the CEO’s base salary;
	 
	 	(iii)	 	if EBITDA is 100% of Target EBITDA, the bonus will be 60% of a Non-CEO Participant’s
base salary; and 100% of the CEO’s base salary and
	 
	 	(iv)	 	if EBITDA is 110% of Target EBITDA, the bonus will be 100% of a Non-CEO Participant’s
base salary and 200% of the CEO’s base salary.

	 	(c)	 	A Non-CEO Participant’s bonus may not exceed 100% of the Non-CEO’s Participant’s base
salary and the CEO’s bonus may not exceed 200% of the CEO’s base salary.

	 	7.	 	Discretionary Bonus Payments. In addition, at the discretion of the Committee, a
discretionary cash bonus may be paid to any Participant in an amount up to 25% of base salary that
shall be in addition to the bonus payment, if any, determined pursuant to Section 6.
	 
	 	8.	 	Payment of Bonus Awards.

	 	(a)	 	Conditions for Payment After Termination of Employment. If a Participant’s employment with
the Company terminates, the following provisions shall apply; provided that such provisions shall
not apply to any Participant who is party to an employment or other form of agreement specifying
the treatment of payments under this Bonus Plan upon any or all of the termination events described
below to the extent covered by such other agreement:

	 	(i)	 	Termination for Cause. If a Participants employment is terminated by the Company for
Cause, no bonus shall be paid to the former Participant for any period prior to the date of
termination.
	 
	 	(ii)	 	Termination by Participant. If a Participant terminates his or her employment without
Good Reason, no bonus shall be paid to the former Participant for any period prior to the date of
termination.
	 
	 	(iii)	 	Termination Following Death, Disability or Retirement. If a Participant’s employment is
terminated due to a Participant’s death, disability or retirement at the normal retirement age
prior to payment of a bonus award for the then completed fiscal year, a bonus award as determined
by the Committee to be payable pursuant to Section 6 hereof for such completed fiscal year shall be
paid (A) in the event of death, to the designated beneficiary of the Participant or, if no
beneficiary shall have been designated, the representative of the

 

 

	 	 	 	Participant’s estate and (B) in the event of disability or retirement, to the former
Participant, and if termination for death, disability or retirement occurs during a fiscal year,
Participant (or Participant’s designated beneficiary or estate) shall receive for that fiscal year
a bonus award, pro rated for that year based on the amount determined by the Committee to have been
payable to Participant for the full fiscal year pursuant to Section 6 hereof multiplied by a
fraction the numerator of which is the number of days in the fiscal year through the date of
termination, and the denominator of which is 365. In each case, such bonus amounts shall be paid
no later than the 15th day of the third month following the close of the fiscal year to which the
performance period relates.

	 	(iv)	 	Termination without Cause or for Good Reason, etc. If a Participant’s employment is
terminated without Cause, or the Participant terminates his or her employment for Good Reason and
prior to the payment of a bonus award for the then completed fiscal year, the Company shall
nevertheless pay to the terminated Participant a bonus award as determined by the Committee to be
payable pursuant to Section 6 hereof for such completed fiscal year. If termination occurs during a
fiscal year, Participant shall receive for that fiscal year a bonus award pro rated for that year
based on the amount determined by the Committee to have been payable to Participant for the full
fiscal year pursuant to Section 6 hereof multiplied by a fraction the numerator of which is the
number of days in the current fiscal year through the date of termination, and the denominator of
which is 365; provided that if such termination occurs after a Change in Control, such pro rated
bonus payment made under this clause (iv) shall be made net of any pro rata bonus amount previously
paid pursuant to Section 8(b) below attributable to the fiscal year in which such termination
without Cause or for Good Reason occurs. In each case, such bonus amounts shall be paid no later
than the 15th day of the third month following the close of the fiscal year to which the
performance period relates.

	 	(b)	 	Change in Control Payment. In the event of a Change in Control of the Company, a pro rata
bonus for the fiscal year in which the Change in Control occurs, together with any unpaid bonus
from the preceding fiscal year determined to be payable pursuant to Section 6 hereof, shall be
immediately payable on the date of the Change in Control, and in no event shall such bonus be paid
later than the 15th day of the third month following the close of the fiscal year to which the
performance period relates. Such pro rated bonus for the then fiscal year shall be determined by
multiplying the bonus payable for achievement of 100% of Target EBITDA by a fraction the numerator
of which is the number of days in the current fiscal year through the date of the Change in
Control, and the denominator of which is 365. The pro rata bonus paid pursuant to this Section
8(b) shall be subtracted from any bonus payable hereunder at the end of the fiscal year in which
such Change in Control occurs.

	 	9.	 	Administrative Provisions. This Bonus Plan shall be administered by the Committee. The
Committee shall have full, exclusive and final authority in all determinations and decisions
affecting this Bonus Plan and Participants, including sole authority to interpret and construe any
provision of this Bonus Plan, to adopt such rules and regulations for administering this Bonus Plan
as it may deem necessary or appropriate under the circumstances, and to make any other
determination it deems necessary or appropriate for the administration of this Bonus Plan.
Decisions of the Committee shall be final and conclusive, and binding on all parties. All expenses
of administering this Bonus Plan shall be borne by the Company. No member of the Committee shall be
liable for any action, omission, or determination relating to this Bonus Plan, and the Company
shall indemnify and hold harmless each member of the Committee and each other director or employee
of the Company or its affiliates to whom any duty or power relating to the administration or
interpretation of this Bonus Plan has been delegated against any cost or expense (including counsel
fees, which fees shall be paid as incurred) or liability (including any sum paid in settlement of a
claim with the approval of the Committee) arising out of or in connection with any action, omission
or determination relating to this Bonus Plan, unless, in each case, such action, omission or
determination was taken or made by such member, director or employee in bad faith and without
reasonable belief that it was in the best interests of the Company.
	 
	 	10.	 	Miscellaneous.

	 	(a)	 	This Bonus Plan was adopted by the Board of Directors on the Approval Date and will be
effective commencing with bonuses payable in respect of the Company’s fiscal year ending December
31, 2005. This Bonus Plan was amended and restated effective February 14, 2008, May 6, 2008 and
February 19, 2009, by action of the Board of Directors, in compliance with the provisions of
Section 10(b).

 

 

	 	(b)	 	The Board of Directors may at any time amend this Bonus Plan in any fashion or terminate
or suspend this Bonus Plan before or after notice to any Participant of his or her participation
under the Bonus Plan.
	 
	 	(c)	 	This Bonus Plan shall be governed by and construed in accordance with the internal laws of
the State of Michigan applicable to contracts made, and to be wholly performed, within such State,
without regard to principles of choice of laws.
	 
	 	(d)	 	All amounts required to be paid under this Bonus Plan shall be subject to any required
Federal, state, local and other applicable withholdings or deductions.
	 
	 	(e)	 	Nothing contained in this Bonus Plan shall confer upon any Participant or any other person
any right with respect to the continuation of employment by the Company or interfere in any way
with the right of the Company at any time to terminate such employment or to increase or decrease
the compensation payable to the Participant from the rate in effect at the commencement of a fiscal
year or to otherwise modify the terms of such Participant’s employment. No person shall have any
claim or right to participate in or receive any award under this Bonus Plan for any particular
fiscal year or any part thereof.
	 
	 	(f)	 	The Company’s obligation to pay a Participant any amounts under this Bonus Plan shall be
subject to setoff, counterclaim or recoupment of amounts owed by a Participant to the Company.
	 
	 	(g)	 	The right of a Participant or of any other person to any payment under this Bonus Plan
shall not be assigned, transferred, pledged or encumbered in any manner, and any attempted
assignment, transfer, pledge or encumbrance shall be null and void and of no force or effect.

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