Document:

Form of Restricted Unit Award Agreement

  
 Exhibit 10(B)

 CARPENTER TECHNOLOGY CORPORATION 
 STOCK-BASED INCENTIVE COMPENSATION PLAN 
 FOR OFFICERS AND KEY EMPLOYEES

 RESTRICTED STOCK UNIT AWARD AGREEMENT 

AGREEMENT, effective as of [DATE] (the “Award Date”) by and between CARPENTER TECHNOLOGY CORPORATION (the
“Company”) and [EMPLOYEE NAME] (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 Restricted Stock Units under the Plan for Fiscal Year [20XX],
comprised of an aggregate of the number of Restricted Stock Units set forth below (collectively, the “Units”). 
 2.
Duration of Restriction Period. The Restriction Period with respect to the Units will lapse [check applicable box]: 
  

	 	 ̈	One Year Performance-Based/Graded Vesting.                 ,
20         for 50% of the Units and                 , 20         for
the remainder of the Units. 

  

	 	x	Time-Based/Cliff Vesting. [VEST DATE = 3 YEARS AFTER GRANT]. 

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 applicable Restriction Period immediately upon termination of Participant’s employment with the Company. 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 vesting by reason of (i) death, (ii) Disability, or (iii) Retirement, the Units will not be
forfeited and the Participant shall become vested with respect to the Units on the same date as such death, Disability or Retirement. 
 5. Time and Form of Payment. Payment of Units shall be made as soon as practicable (but not later than 30 days) following the close of the Restriction Period or, if earlier, within 30 days
following the earlier of the Participant’s death, Disability, or Retirement that constitutes a “Separation from Service” within the meaning of Code Section 409A. Payment shall be in the form of a number of shares of Common Stock
equal to the number of 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 Units earlier than 6 months following the Participant’s separation from service,
except that in the event of the Participant’s earlier death, such 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 Units. 
 7. Dividend Equivalencies. The Company will pay, with respect to dividends paid on Common Stock prior to payment of Common Stock in satisfaction of the Units, an amount equivalent to the dividend
that would have been paid on the Common Stock subject to the Units. The dividend equivalencies provided hereunder shall be paid within 30 days following the date the dividend was paid to the holders of the Company’s Common Stock and shall be in
the form of (a) cash or (b) additional Units, which shall be subject to the provisions of this Award Agreement and added to the number of Units awarded hereunder. Notwithstanding the preceding, a dividend equivalent shall be forfeited if
the Participant terminates employment with the Company for any reason prior to the payment date of the dividend equivalent. 

8. Change in Control. Upon the occurrence of a Change in Control, any remaining conditions on forfeiture with respect to the Units
shall immediately lapse pursuant to Section 8 of the Plan. 
 9. 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. Participant acknowledges and agrees that FICA (Social Security and Medicare) taxes shall become due immediately upon the Participant’s attainment of Retirement-eligibility during the Restriction
Period, regardless of whether Participant actually incurs Retirement. 
 10. Non-competition Covenant. This
Section 10 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. 

Participant’s Promises. Participant shall not for a period of eighteen (18) months after termination of Company
employment, 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 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. 
 Remedies. Participant acknowledges and agrees that in the event that Participant breaches any of the
covenants in this Section 10, 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
Section 10, 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. 

  
 11.
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. 
 12. 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. 
 13. 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 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:	 	/s/ William A. Wulfsohn	 		 	Date:	 	 
		 	 William A. Wulfsohn
 President
and Chief Executive Officer
	 		 		 	
		 	  
 PARTICIPANT
	 		 		 	
					
		 	 	 		 	Date:	 	 
		 	[EMPLOYEE NAME]	 		 		 	

 Number of Award Units:Employment Letter Agreement of David Strobel

  
 Exhibit 10(C)

 

 

 Carpenter Technology Corporation 
 PO Box 14662 
 Reading, PA 19612-4662 

Tel: 610.208.2000 

September 2, 2010 
 Via Hand
Delivery 
  

	 	Re:	Employment as SVP – Global Operations 

 Dear David Strobel, 
 On behalf of Carpenter Technology Corporation (the
“Company”), we are pleased to confirm our promotional offer to you on the terms below stated. 
  

			
	Title and Reporting	  	You will serve as the Company’s SVP – Global Operations, reporting directly to me.
		
	Effective Date	  	September 7, 2010
		
	Annual Base Salary	  	$250,000
		
	Annual Bonus	  	 You will be eligible to participate in the Company’s Executive Bonus Compensation Plan, or such successor arrangement (if any) as
the Board may from time to time establish. Your target annual bonus opportunity for the fiscal year ending June 30, 2011 will be 80% of your annual base salary received during the fiscal year. Zero to 200% of target will be earned based on
achievement of Return on Net Assets (RONA), Operating Income, Revenue, On-Time Delivery and Safety performance objectives during the fiscal year ending June 30, 2011. The relevant corporate performance objectives are determined by the Board or its
Human Resources Committee each fiscal year.
  

  
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	Annual Equity Awards	  	 The Company generally makes equity awards to its senior executives annually. The terms of those awards are determined by the Board or
its Human Resources Committee. You will receive the following equity incentives for fiscal year 2011:
  
 1) A non-qualified stock option to purchase common stock of the Company with a grant date fair value, as determined by the Company, equal to $37,500. This award is in addition to 2,956 stock options
previously received at the beginning of the fiscal year. The number of stock options will be determined by using Black-Scholes valuation, which is based on the strike price on the grant date. The exercise price of this option will be the closing
price of the Company’s common stock on the grant date. This option will vest and become exercisable as follows: 1/3 per year on each of the first, second and third anniversaries of the grant date, subject in each case to your continued service
through the applicable vesting date.
  
 The grant date for your stock option
award will be the effective date of your promotion. You will receive an award agreement setting forth the number of options granted, the exercise price and vesting terms after your promotion date.

 
 2) A one-year performance unit opportunity that, at target levels of performance,
will result in the grant of 3,005 units that convert to common stock of the Company on a 1:1 basis. This is the total target level of units, not in addition to the target units previously communicated at the beginning of the fiscal year. Zero
to 200% of these units will be earned based on the achievement of Earnings Per Share (EPS) performance objectives during the fiscal year ending June 30, 2011 and, to the extent earned, will vest as follows:  1/2 per year on each of June 30, 2012 and June 30, 2013,
subject in each case to your continued service through the applicable vesting date. The relevant corporate performance objectives are determined by the Board or its Human Resources Committee each fiscal year.

 
 3) A three-year performance unit opportunity that, at target levels of performance,
will result in the grant of 3,434 shares of common stock of the Company. This is the total target level of units, not in addition to the target units previously communicated at the beginning of the fiscal year. Zero to 200% of these units
will be earned based on your continued service and the achievement of Total Shareholder Return (TSR) performance objectives during the three year period ending June 30, 2013. The shares subject to the award will only be issued, if at all, once
earned and will be fully vested upon issuance. The relevant corporate performance objectives will be determined by the Board or its Human Resources Committee each fiscal year.

 

  
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	Employee Benefits	  	 You will continue to be eligible to participate in the employee benefit programs applicable to our salaried employees generally. Under
current programs, this would include in your case $250,000 of Company-paid group term life insurance and Accidental Death & Dismemberment, and an opportunity to purchase, at your own cost, supplemental term life insurance coverage.1

 
 In addition, you will continue participation in the Supplemental Retirement Plan for
Executives of Carpenter Technology, Corp.. As previously communicated, accruals in that plan will cease on December 31, 2012. You will also continue to participate in the Deferred Compensation Plan for Officers and Key Employees of Carpenter
Technology Corporation as well as the three excess benefit plans maintained for certain Company employees whose qualified plan benefits are curtailed by Internal Revenue Code (“Code”) limits.

 
 The Company reserves the right to amend, modify or terminate all these plans and
programs at any time, in its discretion.
  
 Except as herein provided, or as
may be hereafter approved by the Board or its Human Resources Committee, you will not be entitled to further compensation or benefits.
  

		
	 Executive Severance
 Plan
	  	 Your employment by the Company is “at will” and may be terminated by the Company or by you at any time. However, if your
employment terminates due to a termination by the Company without “cause” or a resignation by you with “good reason” (each, as defined in the attached Plan document), you will be entitled to receive the severance benefits
included in the Severance Pay Plan for Executives of Carpenter Technology Corporation attached hereto as Exhibit A.
  

		
	 Change in Control
 Severance
	  	 You will be entitled to severance benefits in the event of a change in control, details of which will be provided to you in the coming
weeks. For avoidance of doubt, benefits under this section will be in lieu of, not in addition to, the severance benefits described in the Severance Pay Plan for Executives of Carpenter Technology Corporation.

 

		
	 Intellectual

Property,
 Confidentiality
and
 Restrictive

Covenants
	  	 In your capacity as SVP – Global Operations, you will be exposed to the Company’s most sensitive and proprietary information
and technology, and will be provided with access to the Company’s most valuable and carefully cultivated business relationships. Accordingly, your employment is conditioned upon your execution of the Intellectual Property, Confidentiality and
Restrictive Covenant Agreement attached hereto as Exhibit B.
  
  

		
	Indemnification	  	 To address your right to indemnification for acts performed in your capacity as an Officer, the Company will enter into an
Indemnification Agreement with you substantially in the form attached hereto as Exhibit C.
  

 

	1	 At present, the maximum supplemental term life insurance coverage available is the lesser of (i) four times base salary or (ii) $2,000,000
less the basic Company-paid coverage amount. 

  
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	Miscellaneous	  	 You represent and warrant that there are no restrictions, agreements or understandings whatsoever that would prevent or make unlawful
your execution of this letter, that would be inconsistent or in conflict with this letter or your obligations hereunder, or that would otherwise prevent, limit or impair your ability to be employed by the Company.

 
 Your ownership of or transactions in securities of the Company will be subject to
the Company’s insider trading policies and stock ownership guidelines from time to time in effect.
  
 Reimbursement by the Company of any expense will be subject to Company policies and practices in effect from time to time and will be further subject to the requirements of Treas. Reg.
§§ 1.409A-3(i)(1)(iv)(A)(3), (4) and (5).
  
 Any payment or
transfer of property to you will be subject to tax withholding to the extent required by applicable law.
  
 This letter constitutes our entire agreement and understanding regarding the matters addressed herein, and merges and supersedes all prior or contemporaneous discussions, agreements, and understandings of
every nature between us regarding these matters.
  
 This letter will be
governed by, and enforced in accordance with, the laws of the Commonwealth of Pennsylvania, without regard to the application of the principles of conflicts of laws.

 

 Congratulations on your new role. 

 

			
	Sincerely,
	
	CARPENTER TECHNOLOGY CORPORATION
		
	By:	 	/S/ WILLIAM A. WULFSOHN
		 	William A. Wulfsohn
		 	President & CEO

 Acknowledged and agreed to
on 
 this 2nd day of September, 2010: 
  

	
	
	/S/ DAVID L. STROBEL
	David L. Strobel

  
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