KAYDON CORP
EX-10.1
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>k47759exv10w1.htm
<DESCRIPTION>EX-10.1
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<TITLE>EX-10.1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt"><B>Exhibit&nbsp;10.1</B>
</DIV>


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>ELEVENTH AMENDMENT TO THE AMENDED AND RESTATED<BR>
KAYDON CORPORATION<BR>
EMPLOYEE STOCK OWNERSHIP AND THRIFT PLAN</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ELEVENTH AMENDMENT to the above Plan made by the duly authorized officers of the Company
effective as provided below.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Recitation.</U> The Employer has determined that an amendment to the
Plan
is desirable to suspend matching contributions under the Plan at Tridan
International, Inc. and Indiana Precision, Inc.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Amendment.</U> The Plan is amended at Appendix&nbsp;J as follows:</TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) At Section&nbsp;4.1(f), to suspend Matching Contributions for
Participants employed at Tridan International, Inc. or Indiana Precision,
Inc. based on elective deferral contributions made out of Compensation
earned on or after March&nbsp;29, 2009; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At Section&nbsp;6.2(f), to suspend any allocation of Matching
Contributions to Participants employed at Tridan International, Inc. or
Indiana Precision, Inc. based on elective deferral contributions made out
of Compensation earned on or after March&nbsp;29, 2009.
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Substitution.</U> The Amendment is incorporated in revised plan pages
which
are attached to this Amendment. The pages have been substituted for
their respective counterparts in the Plan as amended. The pages deleted
shall be preserved, attached to the Amendment and marked in the upper
right hand corner to indicated that they were AMENDED by this
Amendment.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="5" valign="top" align="left">KAYDON CORPORATION</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Tony Behrman
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Tony Behrman</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">VP &#150; Human Resources</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">And
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ Debra Crane</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Debra Crane</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Its
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">V. P., General Counsel</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
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</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: Helvetica,Arial,sans-serif">


<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U><B>APPENDIX J</B></U>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Canfield Technologies, Inc.</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Tridan International, Inc. and</B>

</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Indiana Precision, Inc.</B>

</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 10pt">The following sections of the Plan are added or modified as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;1.1</U> to add the following sentence:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Employees of Canfield Technologies, Inc., Tridan International, Inc. and
Indiana Precision, Inc. are added to the Plan effective October&nbsp;1, 2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;2.7</U> to add the following sentence:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Employee also excludes persons included in a collective bargaining unit
at Canfield Technologies, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Section&nbsp;2.7A</U> is added as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7A <U>Employee Group.</U> The Employee Groups are:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U>Canfield.</U> Employees of Canfield Technologies, Inc.
not included in a collective bargaining unit.</div>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Tridan.</U> Employees of Tridan International, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Indiana Precision.</U> Employees of Indiana Precision, Inc.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Other Non-Bargaining Unit.</U> Employees of all other Employers
not included in a collective bargaining unit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Other Bargaining Unit.</U> Employees of all other Employers
included in a participating collective bargaining unit.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Section&nbsp;2.10A</U> is added as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10A <U>Matching Contribution.</U> A Matching Contribution
is any Employer Contribution made to the Plan on behalf of an Active
Participant on
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">account of an Elective Contribution made by the Active Participant for the Plan Year
or any forfeiture allocated on the basis of Matching or Elective Contributions,
excluding any contribution or allocation used to meet the top heavy minimum
contribution or benefit requirement of Code Section&nbsp;416 and any Matching Contribution
to the extent considered for purposes of Code Section&nbsp;401 (k)&nbsp;testing.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;2.17(c)</U> to add the following sentence:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;A Year of Service also includes Years of Service credited prior to October&nbsp;1,
2000 with Canfield Technologies, Inc., Tridan International, Inc., or Indiana
Precision, Inc.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Subsections 3.2(b)(v), (vi)&nbsp;and (vii)</U> are added as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <U>Canfield.</U> Each Employee who was a participant in the Canfield
Technologies, Inc. Simple IRA on August&nbsp;27,2000 who was employed by an Employer on
October&nbsp;1, 2000 became an Active Participant in this Plan on October&nbsp;1, 2000;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) <U>Tridan.</U> Each Employee who was a participant in the Tridan
International, Inc. 401 (k)&nbsp;Profit Sharing Plan on August&nbsp;27, 2000 who was employed
by an Employer on October&nbsp;1, 2000 became an Active Participant in this Plan on
October&nbsp;1, 2000; and
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) <U>Indiana Precision.</U> Each Employee who was a participant in the
Indiana Precision, Inc. 401 (k)&nbsp;Profit Sharing Plan on August&nbsp;27, 2000 who was
employed by an Employer on October&nbsp;1, 2000 became an Active Participant in this Plan
on October&nbsp;1, 2000.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;4.1</U> (b)&nbsp;is deleted and replaced with new Section&nbsp;4.1 (b)&nbsp;as follows:
</DIV>

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</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Regular Profit Sharing.</U> May contribute a Regular Profit Sharing
Contribution. The amount of the contribution, if any, is determined by the Board of
Directors of each Employer for its Employee Group or Groups in its discretion (or as
required by the applicable collective bargaining agreements), subject to the maximum
limitations of this Plan. The tentative contribution is reduced by the amount of
forfeitures to be reallocated to Employer Accounts on the Allocation Date after the
allocation of forfeitures as Matching Contribution. A Regular Profit Sharing
Contribution is allocated under Article&nbsp;VI and is subject to the applicable Vesting
Schedule.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Section&nbsp;4.1(f)</U> is added as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Matching.</U> For Canfield Technologies, Inc., Tridan International, Inc.
and Indiana Precision, Inc. only, contribute a Matching Contribution which is the sum
of $0.25 for each dollar of each eligible Participant&#146;s Elective Contributions
(excluding Catch-Up Contributions) which do not exceed the appropriate limits, except
that no Matching Contribution shall be made for Participants employed at Tridan
International, Inc. or Indiana Precision, Inc. based on elective deferral
contributions made out of Compensation earned on or after March&nbsp;29, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The tentative contribution is reduced by the amount of forfeitures to be
reallocated to Employer Accounts on the Allocation Date. The Matching Contribution is
allocated under Article&nbsp;VI and is subject to the applicable Vesting Schedule.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;6.1(a)(i)</U> to add the following sentence:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;This Account also includes prior plan profit-sharing amounts rolled-over into
this Plan.&#148;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Subsection 6.1 (a)(viii)</U> is added as follows:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) <U>Employer Matching Contributions Account.</U> The Accounts to which
any Employer Matching Contributions and amounts rolled-over to this Plan are
credited;
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The preface of Section&nbsp;6.2</U> is deleted and replaced with a new preface as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <U>Allocation of Employer Contributions.</U> Employer Regular Profit Sharing
Contributions for the Plan Year are allocated to the Employer Regular Profit Sharing
Accounts of Active Participants who complete one thousand (1,000) Hours of Service
during the Plan Year and are Employees in the designated Employee Group of the
Employer making the contribution on the last day of that Plan Year, or who are
Employees in that Employee Group during the Plan Year but who retire, die, or become
Disabled during the Plan Year, first, to each Employee Group as provided in a
resolution of the Employer and, second, within each Employee Group in the proportion
which the Compensation of each Active Participant within that Employee Group for the
Plan Year bears to the aggregate of the Compensation of the Active Participants within
that Employee group for the Plan Year (or as otherwise required by an applicable
collective bargaining agreement), subject to the Testing Adjustment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Subsection 6.2(f)</U> is added as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Matching.</U> Matching Contributions are allocated to the Matching
Account of each Active Participant employed by Canfield Technologies, Inc., Tridan
International, Inc. or Indiana Precision, Inc. eligible for an allocation of Employer
Regular Profit Sharing Contributions for the Plan Year based on each eligible Active
Participant&#146;s Elective Contributions for the year which are eligible for a Matching
Contribution as provided under Article&nbsp;IV. The amount allocated is $0.25 for each
dollar of the Participant&#146;s Elective Contributions up to the maximum Elective
Contribution allowed the
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">Participant for the year, except that no Matching Contribution shall be allocated to
Participants employed at Tridan International, Inc. or Indiana Precision, Inc. based
on elective deferral contributions made out of Compensation earned on or after March
29, 2009.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;6.3 is</U> deleted and replaced with new Section&nbsp;6.3 as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <U>Allocation of Forfeitures.</U> Forfeitures from the Non-Vested Accounts
of participants who have incurred five (5)&nbsp;consecutive Breaks in Service, received a
distribution of their entire Vested Account Balance, or died after terminating
employment during the Plan Year are first allocated to reduce any Forfeiture
Restoration Contribution. Any remaining forfeitures are allocated first in the same
manner as Matching Contributions and next in the same manner as Employer Regular
Profit Sharing Contributions. Forfeitures allocated as Contributions reduce the
contribution of the Employer for the year.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>The preface of Section&nbsp;6.5</U> is deleted and replaced with a new preface as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <U>Vesting.</U> The Account Balance in each Account other than the Employer
Regular Profit Sharing and the Employer Matching Contributions Account, if any, is
fully vested and nonforfeitable at all times. The Account Balance in each Employer
Regular Profit Sharing Account and each Employer Matching Contributions Account is
fully vested and nonforfeitable upon the Participant&#146;s attainment of Normal Retirement
Age, Death, or Disability while an employee of the Employer (or Affiliated Employer)
and under one or a combination of the following Vesting Schedules:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Subsection 6.5(e)</U> is added as follows:
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Matching.</U> Effective for Matching Contributions attributable to Plan
Year beginning on and after January&nbsp;1, 2002, the schedule applicable to Employer
Matching contributions is:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Years of Service for Vesting Purposes</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3">Percentage</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">To Date Employment Terminated</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 1px solid #000000">Vested</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less than 1&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1&nbsp;year but less than 2&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">10</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">2&nbsp;year but less than 3&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">20</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">3&nbsp;year but less than 4&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">40</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">4&nbsp;year but less than 5&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">60</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5&nbsp;year but less than 6&nbsp;year</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">80</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">6&nbsp;year or more</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">&nbsp;</TD>
    <TD align="right">100</TD>
    <TD nowrap>%</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>New Section</U> 7.16 is added as follows:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.16 Loans. An Active Participant, a participant who is a party in interest under
ERISA with respect to the Plan, or a beneficiary of a deceased participant who was a
party in interest (other than an Owner-Employee or Shareholder-Employee) may maintain
a loan rolled-over to this Plan from a plan maintained by Canfield Technologies,
Inc., Tridan International, Inc. or Indiana Precision, Inc. which was qualified under
Section&nbsp;401 (a)&nbsp;of the Code in which the participant was not an owner-employee or a
shareholder-employee. The Committee may authorize continuation of the loan on the
terms and conditions prescribed in this Section and in Appendix&nbsp;J.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">(a) <U>Maximum Amount.</U> A loan is limited to the lesser of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">(i) <U>Maximum Dollar Amount.</U> $50,000.00, reduced by the
excess of:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <U>Prior Balance.</U> The highest outstanding balance
of loans from the Plan during the 1 -year period ending on the day
before the date on which the loan is made, over
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 8%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <U>Outstanding Balance.</U> The outstanding balance
of loans from the Plan on the date on which the loan is made;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>One-Half Vested Account.</U> One-half (1/2) of the participant&#146;s Vested
Account Balance; or
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <U>Aggregation.</U> The amount tentatively determined in (i)&nbsp;or (ii)&nbsp;above
reduced by the aggregate outstanding principal balance of all loans from any qualified plans
maintained by the Employer (or Affiliated Employer).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U>Spousal Consent.</U> The Committee may accept the loan only if
spousal consent of any Qualifying Spouse was obtained within ninety (90)
days before the loan or the Committee determines that spousal consent was
not required.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U>Conditions.</U> Loans: constitute an investment of the participant&#146;s
Account; must be evidenced by a promissory note bearing a reasonable rate
of interest, providing for level amortization and having a definite maturity date
or repayment schedule with payments not less frequently than quarterly; and
must be secured by a mortgage, pledge, guarantee or other adequate
collateral. The participant must demonstrate a realistic plan and intention for
repayment of any loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U>Term.</U> The term for repayment of the note must not exceed five
(5)&nbsp;years unless the participant or beneficiary certified that the proceeds of
the loan would be used for the acquisition or construction of a structure which
was used, within a reasonable time determined at the time the loan was
made, as the principal residence of the participant.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <U>Set Off.</U> If a participant or beneficiary dies, retires, is totally and
permanently disabled, terminates employment, revokes a payroll deduction
payment authorization, requests a distribution which would cause the
remaining Account Balance to fail to be adequate security under ERISA, or
defaults under the terms of the loan or any agreement securing the loan, or if
the Plan is terminated, with all or a portion of the note (including principal and
interest) outstanding, the balance in the Account and all benefits payable
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">under the Plan are reduced by the outstanding amount at the earliest time which will not
cause disqualification of the Plan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U>Accounting.</U> For purposes of allocating earnings, losses and
adjustments in value of the Trust, the participant&#146;s Account is reduced by the
principal amount of any loan outstanding. Interest paid on the loan is credited
directly to the participant&#146;s Account.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U>Suspension of Loan Payments.</U> If permitted by the
administrator, loan payments shall be suspended for a period that a
Participant is on a leave of absence either without compensation or at a level
of compensation that is less than the amount of the installment payments
required under the terms of the loan.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">(i) <U>Length of Suspension/Due Date.</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) <U>Military Leave of Absence.</U> If a Participant is
performing service in the uniformed services (as defined in
Chapter&nbsp;43 of Title 38 of the United States Code), whether or
not Qualified military Service, loan payments shall be
suspended until the end of the leave of absence. The loan,
including accrued interest, must be repaid by the end of the
period that equals the original term of the loan plus the period
of military service.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 10%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) <U>General Leave of Absence.</U> For all other leaves
of absences, loan payments shall be suspended for the period
of the leave of absence, but not longer than one year. The
loan, including accrued interest, must be repaid by the latest
date permitted under (c)(ii) above.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Payments on Resumption.</U> The installment payments due at the end of the
suspension must be at least equal to, and as frequent as, those required under the
original terms of the loan. If installment
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: Helvetica,Arial,sans-serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">KSOP 3.09
</DIV>



<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">payments are not increased on resumption of payment, the Participant must
repay the entire remaining balance of the loan on the due date specified in
(i)&nbsp;above.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Section&nbsp;9.9</U> to add the following sentence:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 6%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Expenses not paid by Kaydon Corporation shall be charged against
participants&#146; accounts in a reasonable manner.&#148;
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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