Document:

Exhibit 10.04

EXHIBIT 10.04

PERFORMANCE SHARES TERMS AND CONDITIONS

1. Award of Performance Shares. The Executive Organization & Compensation Committee (the
“Committee”) of the Board of Directors of Applied Industrial Technologies, Inc. (“Applied”) may
award Performance Shares (the “Award”) to key senior officers of Applied who have broad
policy-making functions and who directly contribute to the long-term success and profitability of
Applied. The Committee has awarded you an Award with an Effective Date. The terms and conditions
are set forth herein (the “Terms”) and together with the Applied Industrial Technologies, Inc. 2007
Long-Term Performance Plan (the “Plan”) govern your rights with respect to the Award.
Notwithstanding the foregoing, however, in the event of any conflict between the provisions of the
Plan and the Terms, the provisions of the Plan shall govern. Moreover, it should be noted that
unless otherwise provided herein, capitalized words in the Terms shall have the same meanings as
set forth in the Plan.

2. Rights during Performance Period. You shall not have the right to sell, exchange,
transfer, pledge, hypothecate, or otherwise encumber your Award until all conditions with respect
to vesting and distribution have been met. Nevertheless, after the first anniversary of the
Effective Date and so long as no forfeiture has occurred, you shall be entitled to receive cash
payments equal to the dividends and cash distributions paid on the Shares underlying the Award
(“Dividend Equivalents”) to the same extent and on the same date as if the Shares, if any,
attributable to your Award had been payable to you; provided, however, that no Dividend Equivalents
shall be payable to you with respect to dividends or distributions for which the record date occurs
on or after (i) the date on which forfeiture of the Award has occurred; (ii) the date on which the
Performance Period has expired; or (iii) the date on which the issuance of shares of Applied common
stock (“Shares”) to you in settlement of your Award has occurred. Until the issuance of Shares in
settlement of your Award has occurred, you shall not be treated as a shareholder with respect to
the Shares.

3. Performance Period. The term “Performance Period” shall mean, for purposes of the Terms,
the period from the Effective Date until the third year anniversary of the Effective Date.

4. Vesting. Subject to the provisions of Section 6, your Award will be 100% vested at the end
of the Performance Period, in whole or in part based upon the achievement of the performance goals
set by the Committee.

5. Separation from Service or Termination of Executive Officer Status. If, during the
Performance Period, you incur a Separation from Service (as defined in Section 409A) from Applied
due to death or Disability (as defined in Section 409A), then, promptly following the availability
of audited financial statements for the final year of the Performance Period, you (or your
beneficiary whom you have designated to Applied in writing) shall be entitled to receive a pro rata
payment under the Award equal to (i) a fraction the numerator of which is the number of fiscal
quarters (including a portion of a quarter) elapsed in the Performance Period prior to the date of
your Separation from Service and the denominator of which is twelve, multiplied by (ii) what would
have been your Award for the Performance Period based on the actual achievement of the performance
goals, if you had not incurred a Separation from Service during the Performance Period. In the
event, however, that during the Performance Period, you incur a Separation from Service from
Applied for any reason other than (i) those specifically set forth above or in Section 6 hereof, or
(ii) termination after attaining age 55 and completing at least ten years of service with Applied,
then your Award will be forfeited and no amount shall be due or payable to you pursuant to the
Award. In addition, if, during the Performance Period, you cease to be a Board-elected executive
officer of Applied (but remain an employee of Applied), then your Award shall be forfeited and
no amount shall be due or payable to you pursuant to the Award. Since Awards are intended to
create an incentive for recipients to act in Applied’s best interests, notwithstanding anything in
the Terms to the contrary:

(a) Your Award may be terminated or rescinded, and if applicable, you may be required
immediately to repay all Shares (and any dividends and distributions thereon) issued
pursuant to the Award within the previous six months (or any proceeds thereof), if the
Committee determines, in good faith, that during your employment with Applied or during the
period ending six months following your Separation from Service, you have committed an act
inimical to Applied’s interests. Acts inimical to Applied’s interest shall include willful
inattention to duty; willful violation of Applied’s published policies; acts of fraud or
dishonesty involving Applied’s business; solicitation of Applied’s employees, customers or
vendors to terminate or alter their relationship with Applied to Applied’s detriment;
unauthorized use or disclosure of information regarding Applied’s business, employees,
customers, and vendors; and competition with Applied. All determinations by the Committee
shall be effective at the time of your act.

 

 

 

(b) The Committee may, in its sole discretion, require you immediately to repay Shares (and
any dividends and distributions thereon) issued pursuant to the Award within the previous 36
months (or any proceeds thereof) if (I) Applied restates its historical consolidated
financial statements and (II) the Committee determines, in good faith, that (x) the
restatement is a result of your, or another executive officer’s, willful misconduct that is
unethical or illegal, and (y) your earnings pursuant to the Award were based on materially
inaccurate financial statements or materially inaccurate performance metrics that were
invalidated by the restatement.

6. Change in Control. Notwithstanding the provisions of Section 4, upon the occurrence of a
Change in Control (as defined under Section 409A) during the Performance Period, you shall be 100%
vested and entitled to receive a pro rata amount of Shares under the Award equal to (i) a fraction
the numerator of which is the number of fiscal quarters (including a portion of a quarter) elapsed
in the Performance Period prior to the date of the Change in Control and the denominator of which
is twelve, multiplied by (ii) your target award amount.

7. Settlement of Award. Your Award shall be settled, based upon achieved performance goals,
in Shares. Except as specifically provided otherwise in this Section 7, any Shares payable with
respect to your Award shall be settled within the 75-day period after the end of the Performance
Period. Notwithstanding the foregoing, in the event that your Award becomes vested due to a Change
in Control, your Award shall be settled in Shares within the 75-day period after such vesting. In
the event that any such 75-day period begins in one calendar year and ends in another, you shall
not have the right to designate the calendar year of payment. Moreover, notwithstanding the
foregoing, if you are a Specified Employee, a distribution of Shares, but only to the extent that
such distribution is deemed to be deferred compensation under Section 409A, may not be made until
within the 30-day period commencing with the first day of the seventh month following the month of
any Separation from Service for reasons other than Change in Control, or if earlier, your death,
except as may be otherwise permitted under Section 409A.

8. Payments of Taxes. Upon or immediately prior to the vesting of the Award, you will be
required to pay to Applied, or make arrangements satisfactory to the Committee regarding payment
of, any federal, state or local taxes of any kind required by law to be withheld by Applied
attributable to the Award granted hereunder.

9. Discretionary
Adjustment Following Certain Events. In the event that, during the
Performance Period, Applied merges, consolidates, sells or acquires a substantial amount of assets,
issues a substantial amount of its capital stock, reorganizes, or engages in any other transaction
or series of transactions, the Committee, in its sole discretion, may change the performance goals
upon which the
vesting of your Award is conditioned, in order to prevent diminution or enlargement of the
benefits intended to be conferred by the Award in such manner as the Committee may determine is
equitably required by the changes or events. In the event (a) of a stock dividend or stock split
or (b) Shares are changed into or exchanged for a different number or kind of securities of Applied
or another entity, then the target Award opportunity shall be equitably adjusted. In the event
other changes or events relating to the Shares fundamentally change the value of the Shares, then
the Committee may make, in its sole discretion, such adjustments in the terms of the Award as the
Committee may determine is equitably required by the change or event.

 

 

 

10. Limitation
on Rights. The Award shall not confer upon you any rights whatsoever other
than those expressly set forth herein, in the Plan or in policies adopted by the Committee,
including without limitation any rights as a shareholder in respect of Shares that may become
issuable pursuant to the Award until and unless Applied has issued a certificate or certificates
for the Shares. Nothing in the Terms shall (i) interfere with or limit in any way Applied’s right
to terminate your employment at any time, (ii) confer upon you any right to continued employment
with Applied, or (iii) create any contractual or other right to receive additional awards or other
Plan benefits in the future.

11. Nonassignability. The Award and the rights granted thereunder are not assignable or
transferable, in whole or in part, and may not be otherwise disposed of by you, other than by will
or by the laws of descent and distribution.

12. Section 409A Compliance. It is intended that payments under the Award are “short-term
deferrals” (as is defined under Section 409A) and, therefore, exempted from coverage under Section
409A, and any interpretations of these Terms shall be consistent with this intent. Notwithstanding
such intention, in the event that the Terms, or any portion thereof, and the Award, or any portion
thereof, shall be deemed to be governed by Section 409A, such Terms and Award, or portion thereof,
shall be interpreted, to the extent applicable, as complying with the provisions of Section 409A.

13. Committee Authority. The Committee shall have conclusive authority, subject to the
express provisions of the Plan as in effect from time to time and the Terms, to construe the Terms
and the Plan, to establish, amend and rescind rules and regulations relating to the Plan, and to
make all other determinations in the Committee’s judgment necessary or desirable for the Plan’s
administration. The Committee may correct any defect or supply any omission or reconcile any
inconsistency in the Plan or the Terms in the manner and to the extent it deems expedient to carry
the Plan into effect. Notwithstanding any provisions hereof, the Terms and the Award shall be
subject to all of the Plan’s provisions in effect from time to time, which are incorporated herein
by reference.

14. Relationship to the Plan. The Terms is subject to the provisions of the Plan and any
administrative policies adopted by the Committee. If there is any inconsistency between the Terms
and the Plan or such policies, the Plan and the policies, in that order, shall govern. Reference
in the Terms to Applied shall include Applied’s subsidiaries.

15. Severability. The provisions of the Terms are severable and if any one or more provisions
are determined to be illegal or otherwise unenforceable, in whole or in part, the remaining
provisions shall nevertheless be binding and enforceable.

 

 

 

16. Requirements of Law. The granting of the Award hereunder shall be subject to all
applicable laws, rules and regulations, and to such approvals by any governmental agency, national
securities exchange, or automated quotation system as may be required. Notwithstanding any other
provision of the Plan or the Terms, Applied shall not be obligated to issue, deliver or transfer
any Shares, make any distribution of benefits under the Plan or the Terms, or take any other
action, unless such delivery,
distribution, or action, unless such delivery, distribution, or action is in compliance with
all applicable laws, rules and regulations (including, but not limited to, the requirements of the
Securities Act and Section 409A).

17. Successors. All obligations of Applied under the Terms with respect to the Award shall be
binding upon any successor to Applied, whether the existence of such successor is the result of a
direct or indirect purchase, merger, consolidation, or otherwise, of all, or substantially all, of
the business and/or assets of Applied. Notwithstanding the provisions of Section 4, in the event
any such successor does not agree to be bound by the Terms, the Award granted hereunder shall
immediately become vested.

18. Applicable Law. The validity, construction, interpretation and enforceability of these
terms and conditions shall be determined and governed by the laws of the State of Ohio without
giving effect to the principles of conflicts of law.

(September 2009)exv10w1

Exhibit 10.1

CONSULTING AND RELEASE AGREEMENT

     THIS CONSULTING AGREEMENT (“Agreement”) is made and entered into by and between the
undersigned Neenah Enterprises, Inc. and its related entities (“Company”) and the undersigned, John
Andrews, as an individual (“Consultant” or “Andrews”).

     WHEREAS, Andrews will be retiring as the Corporate Vice President of Manufacturing of the
Company on May 1, 2010; and

     WHEREAS, the Company and Consultant wish to enter into an agreement which provides for an
orderly and amicable ending of the employment relationship; and

     WHEREAS, the Company desires thereafter to retain the services of Andrews for a period of time
as a consultant in order to provide transitional assistance to the Company regarding
responsibilities previously performed by Andrews in his role of Corporate Vice President and to
further provide consultative efforts to the Company for the purposes of furthering and developing
the business; and

     WHEREAS, Andrews is desirous of entering into such an arrangement,

     NOW THEREFORE, in consideration of the mutual covenants and agreements contained herein, the
parties mutually agree as follows:

     1. PERFORMANCE BY CONSULTANT:

     A. AVAILABILITY: Consultant agrees to provide consultative services to the Company during
the term of this Agreement. The specific schedule of availability and the compensation
arrangements associated with same are outlined in 2. below (Compensation).

     B. REPORTING: The Consultant shall report directly to the president of the Company, Robert
Ostendorf or his designee.

     2. COMPENSATION:

     The Consultant will be paid $11,126.25 per month during the term of this Agreement in addition
to any supplemental daily fees as defined below.

     In exchange for this payment of $133,515.00, the Consultant agrees to provide ten (10) days of
consultative onsite services to the Company per month of this Agreement. If the Consultant is
required to spend more than ten (10) days in any one month in order to provide consultative
services, the Consultant shall be paid for each supplemental additional day the sum of $1,335.15.

     The Company will additionally reimburse the Consultant for all necessary expenses associated
with the performance of his duties including lodging, meals and travel if same is required to
provide said services.

     The Consultant agrees to provide the Company with a reasonable itemization including receipts
if requested to substantiate all business related expenses.

     3. TAXES:

	 	(a)	 	Income Taxes. Consultant shall pay all taxes and fees (including
penalties and interest) imposed by any Federal, Provincial, State or local government
on account of the receipt of income by Consultant for Services rendered under this
Agreement. Company shall, as required by law, provide Consultant with IRS Form 1099
(US).

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	 	(b)	 	Insurance and Indemnification. The Company hereby agrees to ensure and
to indemnify and hold harmless the Consultant from any and all claims and causes of
action arising out of the performance of his duties for the Company as a Consultant to
the same extent that it ensures and indemnifies its officers and directors.

             The Consultant shall be provided authorization to continue to use the Company gas
credit card to provide payment for automobile expenses including fuel.

             The Company further agrees that at option of the Consultant it shall, upon expiration
of the Consulting Agreement, transfer title to the corporate vehicle that has been assigned
to him to utilize during the term of the Consulting Agreement consistent with the Corporate
policy that applies to transferring such vehicles to executives.

     4. TERM OF AGREEMENT:

     The term of this Agreement shall be for one (1) year commencing upon May 1, 2010 and expiring
April 30, 2011.

     5. REASONABLE EFFORTS:

     Consultant shall perform Services and consultative efforts in compliance with all applicable
laws and regulations and further shall make every reasonable effort to perform Services hereunder
in a prompt, competent and diligent manner consistent with Company’s standards.

     6. PROPRIETARY RIGHTS:

     Consultant agrees that all information, discoveries, inventions, improvements, strategies or
overall business plan concepts arising from the services Consultant provides herein under this
Agreement, shall be the sole property of the Company.

     7. ENTIRE AGREEMENT:

     This Agreement sets forth the entire agreement between the parties hereto with respect to the
consulting relationship. This Agreement may not be changed orally, but only by an agreement in
writing signed by the parties hereto. Nothing in this Agreement is intended to, nor shall it be
construed as affecting, any right, interest or benefit that Andrews is entitled to as a result of
his employment with the Company and/or his retirement from the Company on May 1, 2010. Nor is
anything herein intended to supersede or impair any right, interest or benefit of Andrews under his
employment agreement with the Company dated October 8, 2003 and as amended thereafter, including,
but not limited to Andrew’s right to continued pay or severance in the event of a change of
control.

     8. GOVERNING LAW:

     This Agreement shall be governed for all purposes by the laws of the State of Wisconsin. If
any provision of this Agreement is declared void, such provision shall be deemed severed from this
Agreement which shall otherwise remain in full force and effect. Proper venue for any actions
arising out of the breach of this Agreement shall be in a court of competent jurisdiction within
Outagamie County, State of Wisconsin.

     9. AGREEMENT:

     The Consultant, by his signature hereto, confirms the following:

     (a) the Consultant has an employer identification number and/or social security number.

     (b) the Consultant by this Agreement will perform specific services for specific amounts of
money under which Consultant controls the means of the performance of services work.

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     (c) the Consultant will receive compensation for work or services performed under this
contract.

     10. RENEWAL:

     This Agreement upon its expiration may be renewed upon terms mutually agreeable to the parties
providing same is reduced to writing and signed by the parties hereto.

     11. CONFIDENTIALITY:

     During the course of providing services, it is possible that the Consultant will obtain
information that is considered to be confidential and proprietary information of the Company. Such
information may include, but is not limited to, compositions, specifications, formula, designs,
manufacturing processes, programs, systems, products, patent applications, marketing, business and
other commercial information. Consultant agrees to maintain as confidential all confidential
information received or obtained as a result of the services provided for a period of five (5)
years from the date on which the Consultant’s services are terminated. At no time shall such
confidential information be disclosed to any third party without the prior written consent of the
Company.

     12. NON-COMPETITION:

     The Consultant hereby agrees that during the term of his Consultant relationship and for a
period of one (1) year upon the cessation of said relationship, the Consultant shall not directly
or indirectly, work as an employee or a consultant on behalf of a competitor of the Company, in a
capacity wherein he would provide any comparable consultative services to the competitor that he
provided to the Company during the period of the Consultant relationship.

     This provision relating to non-competition is not designed to prevent the Consultant from
becoming employed or providing services to a competitor so long as said employment or consultative
effort does not result in the Consultant providing the same or similar services to the competitor
that he provided to the Company during the period of his Consultant relationship with the Company.

     Furthermore, this restriction on employment is limited geographically only to those
competitors who are compete within the continental United States and who have competed during the
period of the consulting agreement or during the three (3) year period prior to the execution of
this Agreement.

     13. MUTUAL RELEASE OF ALL CLAIMS:

     Subject only to the performance by the Company of its promises in this Agreement, the Employee
hereby releases the Company, its officers, directors, agents, members, employees, owners,
shareholders, attorneys and its affiliates (as described above), predecessors, successors, assigns
and all persons acting by, through, under, or in concert with them (the “Released Parties”) from
any and all charges, claims, demands, damages or causes of action whatsoever which the Employee
has, had or might have been able to assert or claim, based on any act, omission or conduct of any
kind on the part of the Released Parties from the inception of any relationships or dealing between
the Employee and any of the Released Parties up through the execution date of this Agreement
including without limitation any and all claims arising under federal, state, or local laws; Title
VII of the Civil Rights Act of 1964 (42 U.S.C. §2000e et seq.); Age Discrimination in Employment
Act of 1967 (29 U.S.C. §621 et seq.); Employee Retirement Income Security Act of 1974 (29 U.S.C.
§1001 et seq.); the Rehabilitation Act of 1973 (29 U.S.C. §791 et seq.); the Americans With
Disabilities Act (42 U.S.C. §12112 et seq.); the Wisconsin Fair Employment Act, all as amended;
refusal to rehire claims and safe place claims under the Wisconsin Workers Compensation Act, as
amended; Older Worker Benefit Protection Act; or under any other applicable federal, state or local
laws or regulations (which claims, if proven, provide for remedies that may include back pay, front
pay, liquidated damages, attorney’s fees and reinstatement); any claims for wrongful discharge or
termination of employment whether arising under a tort, contract, promissory estoppel or statutory
basis or any other legal or equitable theory; or any claims in any way arising directly or
indirectly out of the Employee’s services for the Company, whether as an officer or an employee,
under federal law or any state law including Wisconsin law or any other applicable law. The
Company likewise releases the Consultant from any and all claims which have arisen to date.

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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement as of the 14th day of
September, 2009.

	 	 	 	 	 
	Neenah Enterprises, Inc.	 	 
	 
	 	 	 	 
	By

	 	/s/ Robert Ostendorf	 	 
	 

	 	 

	 	 
	 

	 	Robert Ostendorf	 	 
	 

	 	President	 	 
	 
	 	 	 	 
	Consultant	 	 
	 
	 
	 	/s/ John Andrews	 	 
	 	 	 	 
	Name:

	 	John Andrews	 	 

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