Document:

Exhibit 10(P)

 

CARPENTER TECHNOLOGY CORPORATION

 

STOCK-BASED INCENTIVE COMPENSATION PLAN

FOR OFFICERS AND KEY EMPLOYEES

 

THREE-YEAR PERFORMANCE STOCK UNIT

AWARD AGREEMENT

 

AGREEMENT, effective as of [DATE] (the “Award Date”) by and between CARPENTER TECHNOLOGY CORPORATION (the “Company”) and [                                ] (the “Participant”). Capitalized terms that are not defined in this Agreement have the same meaning as defined in the CARPENTER TECHNOLOGY CORPORATION STOCK-BASED INCENTIVE COMPENSATION PLAN FOR OFFICERS AND KEY EMPLOYEES (the “Plan”), a copy of which is attached. The terms, conditions and provisions of the Plan are   applicable to this Award Agreement and are incorporated by reference.

 

1.  Grant of Award. Participant has been granted an Award of Performance Stock Units under the Plan comprised of an aggregate of the number of Performance Stock Units set forth below (collectively, the “Units”).

 

2.  Performance Goal.  Performance Stock Units awarded hereunder shall become Earned Units based on the attainment of the Performance Goals during the Performance Period, both as  set forth on Schedule A, provided that the Participant remains continuously employed by the Company or a Subsidiary throughout the Performance Period, except as otherwise provided in Section 4 hereof. Any Performance Stock Units which do not become Earned Units shall be forfeited.

 

3.  Conditions of Forfeiture. Subject to the provisions of Section 4 hereof, the Units are subject to forfeiture by Participant at any time during the Performance Period immediately upon termination of Participant’s employment with the Company and its Subsidiaries.  Upon any such forfeiture, all rights of Participant with respect to the forfeited Units shall terminate and Participant shall have no further interest of any kind therein.

 

4.  Lapse of Restrictions on Death, Disability or Retirement. Notwithstanding any provision hereof to the contrary, in the event of termination of Participant’s employment prior to the end of the Performance Period by reason of (i) death, (ii) Disability or (iii) unless otherwise determined by the Committee, Retirement, the Units shall not be forfeited and the Participant shall be vested in not less than a pro rata portion of the Units that become Earned Units at the expiration of the Performance Period, based on the number of days during the applicable Performance Period during which the Participant was employed.  Upon a Participant’s Retirement all unvested Earned Units shall be forfeited; provided however, that the Committee reserves the right to vest unvested Earned Units.

 

5.  Time and Form of Payment. Payment of vested Earned Units shall be made as soon as practicable (but not later than 30 days) following the close of the Performance Period; provided, however, that in the event of a Participant’s death, Disability or Retirement that constitutes a

 

 

“Separation from Service” within the meaning of Code Section 409A during the Performance Period, payment of the vested Earned Units shall be made within ninety (90) days following the end of the Performance Period. Payment shall be in the form of a number of shares of Common Stock equal to the number of Earned Units subject hereto.

 

Notwithstanding anything herein to the contrary, if the Participant’s Award is subject to the application of Code Section 409A and if the Participant is a “Specified Employee” within the meaning of Code Section 409A and the Treasury regulations and other guidance thereunder, the Participant may not receive payment with respect to any Earned Units that are payable as a result of the Participant’s separation from service, earlier than 6 months following the Participant’s separation from service, except that in the event of the Participant’s earlier death, such Earned Units shall be paid within 30 days after the Company receives notice of the Participant’s death.

 

6.  Voting Rights. The Participant will not have the right to vote with respect to the Units prior to payment of Common Stock in satisfaction of the Earned Units.

 

7. Change in Control. Upon the occurrence of a Change in Control, any remaining conditions on forfeiture with respect to the Units shall immediately lapse and the Performance Goals will be deemed satisfied at the target level of performance pursuant to Section 8 of the Plan.

 

8.  Tax Withholding. Participant authorizes the Company to deduct, to the extent required by statute or regulation, from payments of any kind due to Participant or anyone claiming through Participant, the aggregate amount of any federal, state, local or other taxes required to be withheld in respect of any present or future Award under the Plan.

 

9.  Non-competition Covenant. This Section 9 shall be and become effective upon the Participant’s termination of Company employment or otherwise at the Committee’s (as defined in the Plan) discretion.

 

(a). Participant’s Promises. Participant shall not for a period of eighteen (18) months after termination of Company employment, either himself/herself or together with other persons, directly or indirectly, (i) own, manage, operate, join, control or participate in the ownership, management, operation or control of or become the employee, consultant or independent contractor of any business engaged in the research, development, manufacture, sale, marketing or distribution of stainless steel, titanium, specialty alloys, or metal fabricated parts or components similar to or competitive with those manufactured by the Company as of the date the Participant’s Company employment ends; (ii) offer services to any business that is or has been at any time during a period of three (3) years prior to the Participant’s termination of Company employment a customer, vendor or contractor of the Company; or (iii) solicit any employee of the Company to terminate his or her employment with the Company for purposes of hiring such employee or hire any person who is an employee of the Company.

 

(b). Remedies. Participant acknowledges and agrees that in the event that Participant breaches any of the covenants in this Section 9, the Company will suffer immediate and irreparable harm and injury for which the Company will have no adequate remedy at law.

 

 

Accordingly, in the event that Participant breaches any of the covenants in this Section 9, the Company shall be absolutely entitled to obtain equitable relief, including without limitation temporary restraining orders, preliminary injunctions, permanent injunctions, and specific performance. The foregoing remedies and relief shall be cumulative and in addition to any other remedies available to the Company. In addition to the other remedies in this Section to which the Company may be entitled, the Company shall receive attorneys’ fees and any other expenses incident to its maintenance of any action to enforce its rights under this Agreement.

 

10. Severability. The covenants in this Agreement are severable, and if any covenant or portion thereof is held to be invalid or unenforceable for any reason, such covenant or portion thereof shall be modified to the extent necessary to cure such invalidity or unenforceability and all other covenants and provisions shall remain valid and enforceable.

 

11. Notices to Participant. Any notices or deliveries to Participant hereunder or under the Plan shall be directed to Participant at the address reflected for Participant on the Company’s payroll records or at such other address as Participant may designate in writing to the Company.

 

12. Binding Effect. Subject to the terms of the Plan, this Agreement shall be binding upon and inure to the benefit of the Company and its assigns, and Participant, his/her heirs and personal representatives.

 

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date(s) set forth below.

 

 

CARPENTER TECHNOLOGY CORPORATION

 

 

	
By:
    	

    	
 
    	
Date:
    	
 
    
	
 
    	
William A. Wulfsohn
    	
 
    	
 
    	
 
    
	
 
    	
President and Chief Executive Officer
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
PARTICIPANT
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    

 

Number of Award Units:

 

[UP TO [MAX NUMBER] AS DETERMINED PURSUANT TO SCHEDULE A]

 

 

SCHEDULE A

PERFORMANCE GOALS AND PERFORMANCE PERIOD

 

Performance Period            Fiscal Year 20

 

Performance Goals             The number of Performance Stock Units that become Earned Units is determined based on the level of achievement during the Performance Period based on the following metric(s):

 

	
 
    	
 
    	
 
    	
 
    	
Earned Units
    	
 
    	
 
    	
 
    
	
Metric
    	
 
    	
Threshold
   (25%)
    	
 
    	
Target
   (50%)
    	
 
    	
Maximum
   (100%)Exhibit 10(AA)

 

NON-COMPETITION AGREEMENT

 

This Non-Competition Agreement, made this 31st day of December, 2012 (“Agreement”), is by and between Carpenter Technology Corporation (the “Company”), and Mark S. Kamon (hereinafter the “Employee”).

 

WHEREAS, the relationship between the Company and the Employee is one in which the Company reposes special trust and confidence in the Employee and the Employee is exposed to confidential and proprietary information not previously known to Employee; and

 

WHEREAS, Employee already is subject to an eighteen (18) month Non-competition Covenant as a result of entering into Restricted Stock Award Agreements with the Company in 2009, 2010, 2011 and 2012; and

 

WHEREAS, the parties wish to extend the term of the Non-competition Covenant for an additional period of time.

 

NOW, THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties, intending to be legally bound, hereby agree as follows:

 

1.             Non-Competition. In consideration of the acceptance of the terms and conditions set forth in this Agreement, Employee’ existing eighteen (18) month Non-competition Covenant shall be extended for an additional eighteen (18) months for a total of thirty-six (36) months from the date the Employee’s employment with the Company terminates.

 

2.             Employee’s Promises. During this thirty-six (36) month period after the date the Employee’s employment with the Company terminates, Employee shall not either himself or together with other persons, directly or indirectly, (i) own, manage, operate, join, control or participate in the ownership, management, operation or control of or become the employee, consultant or independent contractor of any business engaged in the research, development, manufacture, sale, marketing or distribution of stainless steel, titanium, specialty alloys, or metal fabricated parts or components similar to or competitive with those manufactured by the Company as of the date the Employee’s Company employment ends; (ii) offer services to any business that is or has been at any time during a period of three (3) years prior to the Employee’s termination of Company employment a customer, vendor or contractor of the Company; or (iii) solicit any employee of the Company to terminate his or her employment with the Company for purposes of hiring such employee or hire any person who is an employee of the Company.

 

3.             Remedies. Employee acknowledges and agrees that in the event that Employee breaches any of the covenants in this Agreement, the Company will suffer immediate and irreparable harm and injury for which the Company will have no adequate remedy at law. Accordingly, in the event that Employee breaches any of the covenants in this Agreement, the Company shall be absolutely entitled to obtain equitable relief, including without limitation temporary restraining orders, preliminary injunctions, permanent injunctions, and specific performance. The foregoing remedies and relief shall be cumulative and in addition to any other remedies available to the Company. In addition to the other remedies in this Section to which the Company may be entitled, the Company shall receive attorneys’ fees and any other expenses incident to its maintenance of any action to enforce its rights under this Agreement.

 

1

 

In the event that any of the provisions of this Section 1 should be adjudicated to exceed the time, geographic, product or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in such jurisdiction to the maximum time, geographic, product or other limitations permitted by applicable law.

 

4.             Consideration and Survival. As consideration for extending the Non-competition Covenant for an additional eighteen (18) months, Employee shall receive a lump sum payment of $115,002.00, to be paid within sixty (60) days of Employee’s voluntary termination of employment but in no event later than June 30, 2013.

 

5.             Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable under present or future laws effective during the term hereof; such provision will be fully severable and this Agreement will be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof, and the remaining provisions hereof will remain in full force and effect and will not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there will be added automatically as part of this Agreement a provision as similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable, as determined by a court of competent jurisdiction. It is the intent of the parties that the covenants contained in Section 1 of this Agreement be enforced to the fullest extent permitted by applicable law.

 

6.             Choice of Forum. In light of the parties substantial contacts with the Commonwealth of Pennsylvania, each of the parties hereto consents to the in personam jurisdiction of any state court in the County of Berks, Pennsylvania and in any federal court in the Eastern District of Pennsylvania and waives any objection to the venue of any such suit, action or proceeding. In the event that any party hereto (the “Instituting Party”) institutes a proceeding involving this Agreement in a jurisdiction outside those designated, the Instituting Party will indemnify any other party hereto for any losses and expenses incurred by such other party that may result from the fact that the Instituting Party instituted such proceeding in a court outside those designated including without limitation any additional expenses incurred as a result of litigating in such other jurisdiction, such as reasonable fees and expenses of local counsel and travel and lodging expenses for parties, witnesses, experts and support personnel. However, an Instituting Party instituting a proceeding in a court outside the designated places will not be required to indemnify the other parties pursuant to the provisions of this Section 6 if the Instituting Party is determined to be the prevailing party.

 

7.             Notice. Any notice or communication hereunder must be in writing and given by depositing the same in the United States mail, addressed to the party to be notified, postage prepaid and registered or certified with return receipt requested or by delivering the same in person. Such notice will be deemed received on the date on which it is hand-delivered or on the third business day following the date on which it is so mailed. For purposes of notice, the addresses and numbers of the parties will be:

 

	
If   to the Company: 
    	
Carpenter   Technology Corporation 
    
	
 
    	
P.O.   Box 14662
    
	
 
    	
Reading,   PA 19612-4662
    

 

2

 

	
 
    	
Attn:
    	
General   Counsel
    
	
 
    	
 
    	
 
    
	
If   to Kamon:
    	
 
    	
Mark   S. Kamon
    
	
 
    	
 
    	
14015   RIVERVIEW LN 
   KENNEDYVILLE, MD 21645
    

 

Any party may change its address for notice by written notice given to the other parties in accordance with this Section

 

8.             Service of Process. Service of any and all process that may be served on any party hereto in any suit, action or proceeding arising out of this Agreement may be made in the manner and to the address set forth in Section 7 and service thus made will be taken and held to be valid personal service upon such party by any party hereto on whose behalf such service is made.

 

9.             Governing Law. This Agreement and the rights and obligations of the parties hereto will be governed by and construed and enforced in accordance with the substantive laws (but not the rules governing conflicts of laws) of the Commonwealth of Pennsylvania.

 

Employee acknowledges that the Company has given Employee, and Employee has received, full and adequate consideration for the promises made and the restrictions contained herein. The promises and restrictions contained in this section shall run in favor of the Company and its successors and assigns, subsidiaries and affiliates, and shall survive the expiration, termination and/or non-renewal of this Agreement and/or the termination of Employee’s employment with the Company. Employee further agrees that any breach of the non-competition obligations set forth in Section 1 of this Agreement will extend the term of the non-compete obligation by the amount of time that Employee has breached this agreement so that Employee honors the non-competition provision for thirty-six (36) full and continuous months.

 

I have read, understand and accept the terms of the Covenant Not To Compete extended to me by Carpenter Technology Corporation.

 

 

	
/s/   Mark S. Kamon
    	
 
    	
12/20/2012
    
	
Mark   S. Kamon
    	
 
    	
Date
    

 

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