Document:

Deferred Stock Units Award Agreement

 EXHIBIT 10.1 
  

  

			
		  	PRECISION CASTPARTS CORP.
	Notice of Grant of Stock Options                	  	ID: 93-0460598
	and Option Agreement	  	4650 S.W. MACADAM AVENUE, SUITE #440
		  	PORTLAND, OR 97239-4262

  

  

	
	Option Number:
	Plan:                         05

  

 Effective                     , you have been granted a(n) Non-Qualified Stock Option to buy
                         shares of PRECISION CASTPARTS CORP. (the Company) stock at
$                             per share. 
 The total option price of the shares granted is
$                                    . 
 Shares in each period will become fully vested on the date shown. 
  

							
	 Shares
	  	 Vest Type
	  	 Full Vest
	  	 Expiration

	  
	  	On Vest Date	  	  
	  	  

	  
	  	On Vest Date	  	  
	  	  

	  
	  	On Vest Date	  	  
	  	  

	  
	  	On Vest Date	  	  
	  	  

  

 By your signature and the Company’s signature below, you and the Company agree that these options are granted under and governed by the terms and conditions of the Company’s Stock Option Plan as amended and the Option Agreement,
all of which are attached and made a part of this document. 
  

  

			
	  
	  	  

	PRECISION CASTPARTS CORP.	  	Date
		
	  
	  	  

		  	Date

 PRECISION CASTPARTS CORP. 
 DEFERRED STOCK UNITS 
 AWARD AGREEMENT 
 THIS AWARD AGREEMENT (the “Agreement”) is entered into as of
                     (the “Grant Date”), by and between PRECISION CASTPARTS CORP., an Oregon corporation (the “Company”),
and
                                        
(the “Director”), an outside director of the Company’s board of directors for the grant of deferred stock units with respect to the Company’s Common Stock (“Common Stock”). 
 IN CONSIDERATION of the mutual covenants and agreements set forth in this Agreement, the parties agree to the following. 
 1. Grant of and Terms of Deferred Stock Units. The Company grants to Director under the Company’s 2001 Stock Incentive Plan (the
“Plan”)
                                        
deferred stock units, subject to the restrictions, terms, and conditions set forth in this Agreement. 
 (a) Rights under Deferred Stock
Units. A deferred stock unit (a “DSU”) represents the unsecured right to require the Company to deliver to Director one share of Common Stock for each DSU. The number of shares of Common Stock deliverable with respect to each DSU is
subject to adjustment as determined by the Board of Directors of the Company as to the number and kind of shares of stock deliverable upon any merger, reorganization, consolidation, recapitalization, stock dividend, spin-off, or other change in the
corporate structure affecting the Common Stock generally. 
 (b) Vesting and Delivery Dates. The DSUs issued under this Agreement
shall initially be 100% unvested and subject to forfeiture. Subject to this Section 1(b), the DSUs shall become vested as follows: 
  

							
	 Vesting Date
	  	 Portion of DSUs subject to this Agreement
	  	 	  	 
	 Immediately after ______
	  	1/3	  		  	
	 annual meeting
	  		  		  	
				
	 Immediately after ______
	  	Additional 1/3	  		  	
	 annual meeting
	  		  		  	
				
	 Immediately after ______
	  	Additional 1/3	  		  	
	 annual meeting
	  		  		  	

 The DSUs shall become vested on the vesting date only if Director continues to be a director of the Company
immediately after adjournment of the referenced annual meeting. The delivery date for the DSU shall be the date on which Director ceases to be a director for any reason, including death, resignation or termination of Director’s term without
re-election, unless deferred pursuant to Section 1(h). 

 (c) Acceleration before Vesting Date. 
 (1) Acceleration on Death or Total Disability. If Director ceases service with the Company by reason of Director’s death or total disability
(as defined in Section 6.5-2 of the Plan), all outstanding but unvested DSUs shall become immediately vested. If Director’s delivery date for a DSU has not been deferred pursuant to Section 1(h), the delivery date shall also
accelerate, subject to compliance with Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). 
 (2)
Acceleration on Normal Retirement. If Director terminates service on the Company’s Board of Directors following normal retirement under the Company’s director retirement policy (currently, age 71), all outstanding but unvested DSUs
shall become immediately vested. If Director’s delivery date for a DSU has not been deferred pursuant to Section 1(h), the delivery date shall also accelerate, subject to compliance with Section 409A. 
 (3) Acceleration on Change in Control. If there is a change in control of the Company, all outstanding but unvested DSUs shall become immediately
vested. If Director’s delivery date for a DSU has not been deferred pursuant to Section 1(h), the delivery date shall also accelerate. For purposes of this Agreement, a “change in control” of the Company shall be deemed to have
occurred if there has been a change in ownership of the Company under (i), a change in effective control of the Company under (ii), or a change in the ownership of a substantial portion of the Company’s assets under (iii): 
 (i) A change in ownership occurs on the date that any one person or more than one person acting as a group acquires ownership of stock of the Company
that, together with stock already held by such person or group, constitutes more than 50 percent of the total fair market value or total voting power of the Company’s stock. 
 (1) A change in ownership will not be deemed to occur if, before the person or group acquires additional Company stock, the person or
group acquiring Company stock owned, or is treated as owning, more than 50 percent of the total fair market value or total voting power of Company stock. 
 (2) An increase in the ownership percentage of the person or group as a result of a transaction in which the Company redeems its stock for cash or other property will be treated as an acquisition by the person or
group. 
 (3) Ownership of stock will be determined by applying the rules in Section 318(a) of the Internal Revenue Code
and by treating stock underlying a vested option as owned by the individual who holds the vested option, unless the stock to which the option applies is not substantially vested as defined in Treasury regulation section 1.83-3(b) and (j).

  

 3 

 (4) Persons will be considered as acting as a group to acquire or hold Company stock or
effective control of the Company to the extent provided by applicable regulations or other written guidance published by the Internal Revenue Service. 
 (ii) A change in effective control of the Company shall occur, regardless whether a change in ownership occurs under (i), on the date that an event described in (1) or (2) occurs, subject to (3). 

(1) A change in effective control occurs on the date that any one person or more than one person acting as a group acquires (or has
acquired during the 12-month period that ends on the date of the most recent acquisition by such person or group) ownership of Company stock possessing more than 35-percent of the total voting power of the Company’s stock. 
 (2) A change in effective control also occurs on the date that a majority of the Company’s board of directors is replaced during any
12-month period by directors whose election is not endorsed by a majority of the Company’s board members prior to the date of election or appointment. 
 (3) A change in effective control will not result from the acquisition of additional control of the company by any person or group that,
immediately before such acquisition, owned more than 35 percent of the total voting power of the Company’s stock. 
 (iii) A change in
ownership of a substantial portion of the Company’s assets occurs on the date that any person or more than one person acting as a group acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by
such person or group) Company assets with a total gross fair market value equal to 40 percent or more of the total gross fair market value of all of the Company’s assets immediately prior to the acquisition (or series of acquisitions).

 (1) Gross fair market value for this purpose means the value of the Company’s assets or the value of the assets being
disposed of, without regard to any liabilities associated with such assets. 
 (2) No change in control occurs solely because
the Company transfers assets to an entity controlled by the Company’s shareholders immediately after the transfer. 
 (3) No change in ownership of the Company’s assets is deemed to occur solely by reason of a transfer of the Company’s assets to any of the following: 
 (A) A shareholder of the Company (immediately before the asset transfer) in exchange for the Company’s stock. 
  

 4 

 (B) An entity, half or more of whose total value or voting power is owned by he Company
(directly or indirectly). 
 (C) A person or group that owns (directly or indirectly) 50 percent or more of the value or
voting power of all of the Company’s outstanding shares. 
 (D) An entity, half or more of whose total value or voting
power is owned (directly or indirectly) by a person who owns 50 percent or more of the value or voting power of the Company’s outstanding shares. 
 (d) Forfeiture of DSUs on Other Terminations of Service. If Director terminates service as a director of the Company for any reason that does not result in acceleration of vesting pursuant to Section 1(c),
Director shall immediately forfeit all outstanding but unvested DSUs granted pursuant to this Agreement and Director shall have no right to receive the related Common Stock. 
 (e) Restrictions on Transfer and Delivery on Death. Director may not sell, transfer, assign, pledge, or otherwise encumber or dispose of the DSUs.
Director may designate beneficiaries to receive stock if Director dies before the delivery date by so indicating on Exhibit A, which is incorporated into and made a part of this agreement. If Director fails to designate beneficiaries on
Exhibit A, the shares will be delivered to Director’s estate. 
 (f) Reinvestment of Dividend Equivalents. On each date on
which the Company pays a dividend on shares of Common Stock underlying a DSU, Director shall receive additional whole or fractional DSUs in an amount equal to the value of the dividends that would have been paid on the stock deliverable pursuant to
the DSUs (if such shares were outstanding), divided by the closing stock price on the dividend payment date. 
 (g) Delivery on Delivery
Date. As soon as practicable following the delivery date for each DSU, the Company shall deliver a certificate for the number of shares represented by all vested DSUs having a delivery date on the same date, rounded down to the whole share. No
fractional shares of Common Stock shall be issued. 
 (h) Deferral of Delivery Date. Director may elect to defer the delivery date of
any DSU by so electing on the attached Exhibit B. If, after execution of this Agreement, Director elects to defer the delivery date or to further defer the delivery date, Director may do so by delivering an election form to the Company
following the execution of this agreement at least 12 months before the then scheduled delivery date for the DSUs to which the election applies provided that the deferred delivery date shall be at least five years later than the scheduled delivery
date. A first election to defer any DSU shall be ineffective if the undersigned ceases to be a director of the Company 12 months following the date the election is delivered to the 

  

 5 

 
Company. If a further election to defer any DSU has been made, a further election shall be ineffective if made less than 12 months before the delivery date
designated in the previous election. 
 2. Other Terms and Conditions. 
 (a) Director’s Rights as Stockholder. Director shall have no rights as a stockholder with respect to the DSUs or the shares underlying them
until the Company delivers the shares to Director on the delivery date. 
 (b) Amendment; Waiver. Except as provided in
Section 2(c), this Agreement may be amended only by the written consent of the Company and Director. No waiver of any provision of this Agreement will be effective unless in writing and signed by the waiving party. 
 (c) Section 409A. This Agreement is intended to comply with the provisions of Section 409A and shall be interpreted in accordance with
Section 409A and Treasury regulations and other interpretive guidance issued thereunder. If the Company at any time determines that this Agreement would cause or may cause any arrangement between the Company and Director to be nonqualified
deferred compensation subject to Section 409A, the Company may amend this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company
determines to be necessary or appropriate to (a) allow the arrangement not to be subject to Section 409A, or (b) comply with the requirements of Section 409A. 
  

					
	PRECISION CASTPARTS CORP.
		
	 By:
	 	  

		 	Authorized Officer
	
	  

	  
	 	, Director

  

 6 

 EXHIBIT A 
 DESIGNATION OF BENEFICIARY 
  

							
	Name	 	 	  		 	Social Security Number         -    -           
 

 I designate the following person(s) to receive any deferred stock units outstanding upon my death under the
Deferred Stock Units Award Agreement with Precision Castparts Corp: 
 A. Primary Beneficiary(ies) 
  

									
	 Name
	 	  
	  		  	Social Security Number         -    -            
	Birth Date	 	  
	  		  	Relationship
                                        
    
	Address	 	  
	  		  	City                     State         Zip    
         
				
	Name	 	  
	  		  	Social Security Number         -    -            
	Birth Date	 	  
	  		  	Relationship
                                        
    
	Address	 	  
	  		  	City                     State         Zip    
         
				
	Name	 	  
	  		  	Social Security Number         -    -            
	Birth Date	 	  
	  		  	Relationship
                                        
    
	Address	 	  
	  		  	City                     State         Zip    
         

 If more than one primary beneficiary is named, the units will be divided equally among those primary beneficiaries
who survive the undersigned. 
 B. Secondary Beneficiary(ies) 
 In the event no Primary Beneficiary is living at the time of my death, I designate the following the person(s) as my beneficiary(ies): 
  

									
	 Name
	 	  
	  		  	Social Security Number         -    -            
	Birth Date	 	  
	  		  	Relationship
                                        
    
	Address	 	  
	  		  	City                     State         Zip    
         
				
	Name	 	  
	  		  	Social Security Number         -    -            
	Birth Date	 	  
	  		  	Relationship
                                        
    
	Address	 	  
	  		  	City                     State         Zip    
         
				
	Name	 	  
	  		  	Social Security Number         -    -            
	Birth Date	 	  
	  		  	Relationship
                                        
    
	Address	 	  
	  		  	City                     State         Zip    
         

 If more than one Secondary Beneficiary is named, the units will be divided equally among those Secondary
beneficiaries who survive the undersigned. 
 This designation revokes and replaces all prior designations of beneficiaries under the Deferred Stock Units
Award Agreement. 
  

					
	  
	 		  	Date signed:             , 20    
	 Signature
	 		  	

  

 7 

 EXHIBIT B 
 DEFERRAL ELECTION 
  

							
	 Name
	 	 	  		 	Social Security Number         -    -            

 I elect to defer the delivery of deferred stock units (“DSUs”) granted pursuant to my Deferred Stock
Unit Award Agreement with Precision Castparts Corp. (“PCC”) past the date I cease to be a member of the Board of Directors of PCC for any reason, including death, resignation or termination of my term as a director without re-election, as
follows: 
  

			
	DSUs covered by this election:	 	  

	  

 Deferred delivery date:             ,
2     
 The DSUs described above shall be delivered to the undersigned on the earliest of the following: 
 • The deferred delivery date designated above. 
 • 20 years after the date the undersigned ceases to be a director of PCC for any reason, including death, resignation or termination of the undersigned’s term as a director without re-election. 
 • Within 30 days following the date the undersigned ceases to be a director of PCC for any reason, including death, resignation or termination of the
undersigned’s term as a director without re-election, if such date occurs within 24 months of a Change in Control of PCC as defined in Section 1(c)(3) of the Deferred Stock Unit Award Agreement. 
 If no prior election to defer the DSUs covered by this Deferral Election has been made, this Deferral Election shall be ineffective if the undersigned ceases to be a
director of PCC within 12 months following the date PCC receives it. If a prior election to defer such DSUs has been made, this Deferral Election shall be ineffective if made less than 12 months before the previously designated delivery date.

  

	
	  

	 Signature

	
	 Date signed             ,
20    

  

 8Nonstatutory Stock Option Agreement

 Exhibit 10.2 
 PRECISION CASTPARTS CORP. 
 NONSTATUTORY STOCK OPTION AGREEMENT 
 For SERP Level One and Level Two Participants 
 THIS AGREEMENT is made as of the “Grant Date”, between Precision Castparts Corp., an Oregon corporation (the “Company”), and Optionee (“Optionee”). Grant date, optionee name, number of shares, and grant price
are shown on the Notice of Grant of Stock Option and Option Agreement furnished to each Optionee. 
 Pursuant to the Precision Castparts
Corp. 1994 or 2001 Stock Incentive Plan or the 1999 Non-Qualified Stock Option Plan (the “Plan”), the Board of Directors has voted in favor of granting to the Optionee an option to purchase Common Stock of the Company on the terms set
forth below. In consideration of the promises and mutual covenants herein contained, the Company and the Optionee agree as follows: 
 1.
Grant. The Company hereby grants to the Optionee upon the terms and conditions hereinafter stated the right and option (the “Option”) to purchase all or any part of an aggregate number of shares of the Company’s authorized but
unissued Common Stock at a grant price. The Option is a Nonstatutory Stock Option and is not an Incentive Stock Option, as defined in Section 422A of the Internal Revenue Code, as amended. Under the conditions set forth in paragraph 2.5, the
Optionee’s right to exercise the Option shall terminate and in substitution therefor the Optionee shall have the right to exercise a stock appreciation right. 
 2. Terms of Option. The Option is granted upon the following terms: 
 2.1 Duration of the
Option. Subject to reductions in the Option period as hereinafter provided in the event of termination of employment or death of the Optionee, the Option shall continue in effect for a period of ten (10) years from the date hereof.

 2.2 Time of Exercise. Except as provided in paragraph 2.5, the Option may be exercised from time to time beginning one year after
the date hereof to the extent the Option has become vested. Twenty-five percent of the shares subject to the Option shall become vested one year after the date of this Agreement and an additional 25% shall become vested each year thereafter. If the
Optionee does not exercise the Option in any one year for the full number of shares to which the Optionee is entitled, the rights shall be cumulative and the Optionee may exercise the Option for such shares in any subsequent year during the term of
the option. 
 2.3 Limitations on Right to Exercise. Except as provided in paragraph 2.5, the Option may not be exercised unless at
the time of such exercise the Optionee is employed by the Company or any subsidiary of the Company and shall have been so employed continuously since the date such option was granted. Absence on leave or on account of illness or disability under
rules established by the Board of Directors shall not, however, be deemed an interruption of employment for this purpose. 
  

 Precision Castparts Corp. 
 Nonstatutory Stock Option Agreement 
 Page 1 

 2.4 Nontransferability. The Option is nonassignable and non-transferable by the Optionee except by
will or by the laws of descent and distribution of the state or country of the Optionee’s domicile at the time of death, and is exercisable during the Optionee’s lifetime only by the Optionee. 
 2.5 Termination of Employment; Change of Control. 
 (a) In the event the employment of the Optionee by the Company or by any parent or subsidiary of the Company is terminated for any reason, voluntarily or involuntarily, with or without cause, other than in the
circumstances specified in subsection (b) or (c) below, the Option held by the Optionee may be exercised at any time prior to its expiration date or the expiration of six months after the date of such termination of employment, whichever
is the shorter period, but only if and to the extent the Optionee was entitled to exercise the Option on the date of such termination. 
 (b) In the event the Optionee’s employment is terminated because of death, the Option held by the Optionee may be exercised at any time prior to its expiration date or the expiration of twelve months after the date of death, whichever
is the shorter period, but only if and to the extent the Optionee was entitled to exercise the option on the date of death. The Option shall be exercisable only by the person or persons to whom the Optionee’s rights under the Option shall pass
by the Optionee’s will or by the laws of descent and distribution of the state or country of the Optionee’s domicile at the time of death. In the event the Optionee’s employment is terminated by retirement at normal retirement age as
defined under the provisions of the Company’s Retirement Plan, the Option may be exercised with respect to all remaining shares subject thereto, free of the vesting requirements of paragraph 2.2 at any time prior to its expiration date or the
expiration of one year after the date of death of the Optionee following termination of employment, whichever period is shorter. If the Optionee’s employment is terminated under conditions of bona fide early retirement, the Option may be
exercised at any time prior to its expiration date or the expiration of twelve months after the date of such termination of employment, whichever is the shorter period, but only if and to the extent the Optionee was entitled to exercise the Option
on the date of termination. In the event of termination of employment because of total disability, the Option may be exercised at any time prior to the expiration date of the Option or six months after the date of such termination of employment,
whichever is the shorter period but only if and to the extent the Optionee was entitled to exercise the Option on the date of termination. The term “total disability” means a mental or physical impairment which is expected to result in
death or which has lasted or is expected to last for a continuous period of 12 months or more and which causes the optionee to be unable, in the opinion of the Company and two independent physicians, to perform his or her duties as an employee of
the Company and to be engaged in any substantial gainful activity. Total disability shall be deemed to have occurred on the first day after the Company and the two independent physicians have furnished their opinion of total disability to the
Company. 
 (c) Acceleration in Certain Events. Notwithstanding any other provisions of this Agreement, a special acceleration
(“Special Acceleration”) of the Option shall occur and the Option shall immediately become exercisable in full at any time when any one of the following events has taken place: 
  

 Precision Castparts Corp. 
 Nonstatutory Stock Option Agreement 
 Page 2 

 (1) The shareholders of the Company approve one of the following (“Approved Transactions”):
(A) any consolidation, merger or plan of exchange involving the company (“Merger”) pursuant to which Common Stock would be converted into cash; or (B) any sale, lease, exchange or other transfer (in one transaction or a series of
related transaction) of all or substantially all of the assets of the Company; or (C) the adoption of any plan or proposal for the liquidation or dissolution of the Company; or (D) any merger, consolidation or plan of exchange which
results in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) 50% or less of the combined voting
power of the voting securities of the company or such surviving entity outstanding immediately after such merger, consolidation or exchange; or (E) any merger, consolidation or plan of exchange effected to implement a recapitalization of the
Company (or similar transaction) in which a person acquires more than 20% of the combined voting power of the Company’s then outstanding securities; or 
 (2) A tender or exchange offer, other than one made by the Company, is made for Common Stock (or securities convertible into Common Stock) and such offer results in a portion of those securities being purchased and
the offeror after the consummation of the offer is the beneficial owner (as determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), directly or indirectly, of more than 20 percent
of the outstanding Common Stock; or 
 (3) Any person is or becomes the beneficial owner of more than 20 percent of the Company’s
outstanding Common stock; or 
 (4) During any period of two consecutive years, individuals who at the beginning of such period constituted
a majority of the Board of Directors cease for any reason to constitute a majority thereof unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the directors then still in office who were directors
at the beginning of such period. 
 All options that are accelerated pursuant to this paragraph 2.5(c) shall terminate upon the dissolution
of the Company or upon the consummation of any Merger pursuant to which Common Stock would be converted to cash. The terms used in this paragraph 2.5(c) and not defined elsewhere in this Agreement shall have the same meanings as such terms have in
the Exchange Act and the rules and regulations adopted thereunder. 
 (d) In the event of death or termination of employment of the
Optionee, to the extent the Option shall not have been exercised within the limited periods provided above, all further rights to purchase shares pursuant to the Option shall cease and terminate at the expiration of such periods. 
 2.6 Purchase of Shares. Shares may be acquired pursuant to the Option only upon receipt by the Company of written notice of exercise signed by the
Optionee. In the notice, the Optionee shall specify the date the Option being exercised was granted, the number of shares covered by the Option, the Option price, the number of shares as to which the Option 

  

 Precision Castparts Corp. 
 Nonstatutory Stock Option Agreement 
 Page 3 

 
is being exercised, the form of payment to be used as prescribed below, and, unless in the opinion of counsel for the Company such a representation is not
required in order to comply with the Securities Act of 1933, as amended, containing a representation that it is the Optionee’s present intention to acquire the shares for investment and not with a view to distribution. Exercise of all or part
of the Option constitutes a binding contract between the Company and the Optionee. The Optionee shall make payment in full for the shares covered by such exercise in cash, in shares of stock of the Company previously acquired and held for not less
than one year by the Optionee, valued at fair market value as determined by the Board of Directors, or in any combination of cash and such shares of stock of the Company. If the Optionee elects to make full or partial payment in shares of stock, the
Optionee shall deliver duly endorsed certificates representing such shares with the notice of exercise, or make alternate arrangements for delivery of the shares that are satisfactory to the Company, in its discretion. If the Optionee elects to make
full or partial payment in cash, such payment shall be made in fully collected funds at the time of exercise provided that if the Optionee is executing an order for immediate sale of the shares acquired pursuant to the Option through a registered
broker dealer, the Optionee may make such payment by delivering to the Company with the notice of exercise (i) a personal check for the exercise price and any applicable withholding taxes, which check shall be honored by the bank upon which it
is drawn within five business days from the date of exercise, or such lesser number of business days equal to the settlement period for broker transactions under applicable law at the date of exercise, and (ii) an authorization and assignment
for security purposes in form satisfactory to the Company pursuant to which the Company is entitled to obtain payment of the exercise price and any applicable withholding taxes from the proceeds of sale of the shares in the event the Optionee’s
check is not timely honored. Upon receipt of full payment of the exercise price and applicable taxes, the Company will issue certificate(s) representing the shares purchased. No shares shall be issued until full payment therefor has been made. The
exercise and payment procedures set forth in this Section 2.6 are subject to change from time to time by the Company upon written notice to the Optionee. 
 3. Substitution of Stock Appreciation Right. The Board of Directors or the Compensation Committee of the Board of Directors may at any time, in its sole discretion and without the consent of the Optionee,
provide that a stock appreciation right shall be substituted for the Option. The number of shares subject to the stock appreciation right shall be equal to the number of Option shares that remain subject to the Option and as to which the Option has
not been exercised. The substitution shall become effective upon written notification from the Company to the Optionee. Upon such notification, the Option shall terminate and shall no longer be exercisable. In substitution for the Option and subject
to the same terms and conditions of this Agreement applicable to the Option, Optionee shall be entitled to exercise a stock appreciation right, subject to the following terms and conditions: 
 3.1 Duration of Stock Appreciation Right. The duration of the stock appreciation right shall be the same as the Option as provided in paragraph
2.1. 
 3.2 Time of Exercise; Limitations on Right to Exercise; Termination of Employment; Change of Control. The stock appreciation
right shall be exercisable only to the extent that the Option would have been exercisable and only on the conditions applicable to the Option, including paragraphs 2.2, 2.3 and 2.5. 
  

 Precision Castparts Corp. 
 Nonstatutory Stock Option Agreement 
 Page 4 

 3.3 Nontransferability. The stock appreciation right is nonassignable and non-transferable except
by will or by the laws of descent and distribution of the state or country of the Optionee’s domicile at the time of death and is exercisable during the Optionee’s lifetime only by the Optionee. 
 3.4 Exercise of Stock Appreciation Right. The stock appreciation right shall entitle the Optionee, upon exercise, to receive from the Company in
exchange therefor an amount equal in value to the excess of the fair market value on the date of exercise of one share of Common Stock of the Company over the Option price per share (as set forth in the Notice of Grant of Stock Option and Option
Agreement), multiplied by the number of shares covered by the stock appreciation right, or portion thereof, that is surrendered. No stock appreciation right shall be exercisable at a time that the amount determined under this subparagraph is
negative. Payment by the Company upon exercise of a stock appreciation right shall be made in Common Stock valued at fair market value. For this purpose, the fair market value of the Common Stock shall be the closing price of the Common Stock last
reported before the time of exercise, or such other value of the Common Stock as specified by the Board of Directors. 
 3.5 Fractional
Shares. No fractional shares shall be issued upon exercise of a stock appreciation right. In lieu thereof, cash may be paid in an amount equal to the value of the fraction or, if the Board of Directors or Compensation Committee of the Board of
Directors shall determine, the number of shares may be rounded downward to the next whole share. 
 4. Withholding Tax. The Optionee
shall, upon notification of the amount due, if any, and prior to or concurrently with delivery of the certificates representing the shares with respect to which the Option (or stock appreciation right if paragraph 3 is applicable) was exercised, pay
to the Company amounts necessary to satisfy any applicable federal, state, and local withholding tax requirements. If additional withholding becomes required beyond any amount deposited before delivery of the certificates, the Optionee shall pay
such amount to the Company on demand. If the Optionee fails to make any payment required to be made by the Optionee hereunder, the Company may withhold such amount from any funds owed by the Company to the Optionee. 
 5. Changes in Capital Structure. In the event that the outstanding shares of Common Stock of the Company are hereafter increased or decreased or
changed into or exchanged for a different number or kind of shares or other securities of the Company or another corporation, by reason of any reorganization, merger, consolidation, recapitalization, reclassification, stock split-up, combination of
shares, or dividend payable in shares, the Board of Directors shall make appropriate adjustments in the number and kind of shares for purchase pursuant to the Option (and the stock appreciation right, if paragraph 3 is applicable) and the
corresponding Option price, or, in its discretion, select one of the alternative treatments of outstanding options and stock appreciation rights permitted under Section 12 of the Plan. Any such adjustment made by the Board of Directors shall be
conclusive. 
  

 Precision Castparts Corp. 
 Nonstatutory Stock Option Agreement 
 Page 5 

 6. Approvals. The obligations of the Company under this Agreement are subject to the approval of
the Plan by the shareholders of the Company in accordance with Oregon law and to the approval of such state or federal authorities or agencies, if any, as may have jurisdiction in the matter. The Company will use its best efforts to take such steps
as may be required by state or federal law or applicable regulations, including rules and regulations of the Securities and Exchange Commission and any stock exchange on which the Company’s shares may then be listed, in connection with the
issuance or sale of any shares acquired upon the exercise of the Option (a stock appreciation right if paragraph 3 is applicable). 
 7.
Employment Rights. Nothing in the Plan or this Agreement shall confer upon the Optionee any right to be continued in the employment of the Company or any subsidiary of the Company, or shall interfere in any way with the right of the Company
or any subsidiary by whom the Optionee is employed to terminate the Optionee’s employment at any time, for any reason, with or without cause. 
 8. Binding Upon Successors. This Agreement shall be binding upon and shall inure to the benefit of any successor or successors of the Company but except as hereinabove provided the Option (and the stock appreciation right if
paragraph 3 is applicable) herein granted shall not be assigned or otherwise disposed of by the Optionee. 
  

 Precision Castparts Corp. 
 Nonstatutory Stock Option Agreement 
 Page 6

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