Document:

Prepared by R.R. Donnelley Financial -- Stock-Based Incentive Compensation Plan

  
 Exhibit 10.L 
  
 CARPENTER TECHNOLOGY CORPORATION 
  
 STOCK-BASED INCENTIVE COMPENSATION PLAN FOR 
 OFFICERS AND KEY EMPLOYEES 
  
 Adopted June 22, 1993, Restated June 27, 1996, 
 And as last Amended June 27, 2002

  
 1.    Background and Purpose. 
  
 The Plan was previously adopted on June 22, 1993 and its purposes were to attract, retain and motivate key employees of Carpenter Technology Corporation and its wholly
owned subsidiaries, to encourage stock ownership by such employees by providing them with a means to acquire a proprietary interest or to increase their proprietary interest in the success of Carpenter Technology Corporation and its subsidiaries and
to provide a greater community of interest between such employees and the stockholders of Carpenter Technology Corporation. For purposes of this Plan, Carpenter Technology Corporation and each subsidiary described in Section 424(f) of the Internal
Revenue Code of 1986, as amended (the “Code”) shall be referred to collectively as the “Corporation”. The Plan has been amended and restated (in 1996) to create a new category of awards, which are referred to as Performance Units
and Performance Shares, with the intention that these awards will be directly related to the Corporation’s performance. 
  
 2.    Administration. 
  
 The Board of Directors of Carpenter Technology
Corporation (the “Board”) shall be responsible for the operation of the Plan. The Board is authorized, subject to the provisions of the Plan, from time to time to (i) select employees to receive awards under the Plan, (ii) determine the
type and amount of awards to be granted to participants, (iii) determine the terms and conditions of such awards and the terms of agreements entered into with participants, (iv) establish such rules and regulations and to appoint such agents as it
deems appropriate for the proper administration of the Plan, and (v) make such determinations under, and such interpretations of, and to take such steps in connection with, the Plan or the awards granted hereunder as it deems necessary or advisable.
Any questions of interpretation determined by the Board shall be final and binding upon all persons. The Board may delegate any or all of these powers to the Human Resources Committee (“Committee”) of the Board, consisting of at least two
directors, each of whom shall be “non-employee directors” as defined in Rule 16b-3 promulgated by the U.S. Securities and Exchange Commission (“SEC”) under the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and each of whom shall also be “outside directors” as defined in Treas. Reg. § 1.162-27(e)(3). In particular, the Board shall delegate to the Committee all powers with respect to the granting of awards that are intended to
comply with the requirements of Rule 16b-3 of the Exchange Act and section 162(m) of the Code that would exempt such awards from being subject to short-swing liability and being subject to the annual limit on the deduction of compensation.

 

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 3.    Participants. 
  

The class of employees eligible to receive awards under the Plan shall be limited to officers and key employees of the Corporation. Participants in the Plan will
consist of such officers or key employees as the Board in its sole discretion may from time to time designate. The Board’s designation of a Participant at any time to receive benefits under the Plan shall not obligate it to designate such
person to receive benefits at any other time. The Board shall consider such factors as it deems pertinent in selecting Participants and in determining the type and amount of awards granted hereunder. As used herein, “Participant” shall
refer to an employee designated by the Board who has received an award under the Plan. Only the Committee may designate which Participants shall receive awards of Performance Units and Performance Shares under Section 10 of the Plan. 

 
 4.    Types of Awards. 
  
 Awards under the Plan will consist of (i) incentive stock options (“ISOs” or individually an “ISO”) intended to be options qualifying under Section 422 of the Code; (ii)
non-qualified stock options (“NQSOs” or individually a “NQSO”) intended to be non-statutory options not qualifying under Section 422 or any other section of the Code; (iii) stock appreciation rights (“SARs” or
individually a “SAR”) intended to provide a participant with the right to receive the increase in the fair market value of a specified number of Shares, as defined in Section 5; (iv) shares of restricted stock (“Restricted
Stock”) intended to give a participant the right to receive a specified number of Shares without payment upon the occurrence of certain events; and (v) Performance Shares or Performance Units intended to give a participant the right to receive
a specified number of Shares or unit equivalencies of Shares without payment when the Corporation attains certain pre-established Performance Goals. The Board may permit or require a participant to defer such participant’s receipt of the
payment of cash or the delivery of Shares that would otherwise be due such participant resulting from awards granted under the Plan. If any such deferral is required or permitted, the Board shall, in its sole discretion, establish rules and
procedures for such deferrals. 
  
 5.    Shares Reserved Under the Plan. 
  
 Subject to the provisions of Section 12, the number of shares of Common Stock of Carpenter Technology Corporation (“Stock”)
available for awards under this Plan, which may consist of authorized but unissued shares or issued shares reacquired by Carpenter Technology Corporation or a combination thereof, is 1,800,000 (such shares being referred to herein as
“Shares”) plus previously ungranted shares and lapsed grants that remain from previous shareholder authorizations; provided, however, that in no event shall the cumulative number of Shares to be issued as ISOs granted under Section
6 exceed 500,000, nor shall the cumulative number of Shares to be issued as Restricted Stock and Performance Units/Shares granted under Sections 7 and 9 respectively exceed 750,000. If any award granted under this Plan is canceled, terminates,
expires, or lapses for any reason (with the exception of the termination of a Tandem SAR upon exercise of the related Option, or the termination of a related Option upon exercise of the corresponding Tandem SAR), any Shares subject to such award
shall be available for award under the Plan. 
 

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 6.    Options. 
  
 ISOs and NQSOs (collectively “Options”) may be granted by the Board from time to time, subject to the following provisions: 
  
 (a)    Except as otherwise determined by the Board, each Option granted under this Plan shall become
exercisable by a participant only after completion of one year of employment immediately following the date the Option is granted (the “Date of Grant”). Exercise of any or all prior existing Options shall not be required. Each agreement
entered into between the participant and the Corporation shall specify (i) when an Option may be exercised, (ii) the terms and conditions applicable thereto, and (iii) whether the Option is an ISO or an NQSO. In no event, however, shall an Option
granted under this Plan expire more than ten years from the Date of Grant. 
  
 (b)    Each Option shall specify the amount per share a participant must pay to the Corporation to exercise the Option (the “option price”). The option price of an Option shall be determined by the Board
but shall not be less than the fair market value of a share of Stock on the Date of Grant. For purposes of this Plan, the term “fair market value” shall mean the closing price of the Stock on the New York Stock Exchange on the date in
question, or, in the absence of a closing price on such date, the closing price on the last trading day preceding the Date of Grant, as reflected on the consolidated tape of New York Stock Exchange-Composite Transactions. 
  
 (c)    Except as permitted in the immediately following sentence, no Option granted under this Plan
may be transferable by the participant except by will or the laws of descent and distribution and no Option may be exercised during the lifetime of a participant except by that participant. Notwithstanding the aforementioned, a NQSO Optionee may
transfer a NQSO to his or her spouse, parents, siblings, children or grandchildren (in each case, natural or adopted), any trust for his or her benefit or the benefit of his or her spouse, parents, siblings, children or grandchildren (in each case,
natural or adopted) (collectively, a “Permitted Transferee”), or any corporation or partnership in which the direct and beneficial owner of all of the equity interest in such corporation or partnership is such NQSO Optionee or any
Permitted Transferee (or any trust for the benefit of such persons). 
  
 Unless otherwise provided in the participant’s agreement, the
following exercise periods will apply in the case of a separation from employment. In the event of the death of the participant more than one year after the Date of Grant and not more than three months after the termination of the participant’s
employment by the Corporation, an Option may be transferred to the participant’s personal representative, heirs or legatees (“transferee”) and may be exercised by the transferee before the earlier to occur of the expiration of (i) one
year from the date of the death of the participant or (ii) the term of the Option as specified in the agreement with the participant. In the event of a participant’s separation from service with the Corporation as a result of Retirement [as
defined in Section 9(f) of this Plan] or due to “disability” [within the meaning of Section 422(c)(6) of the Code], any outstanding Option will continue to be exercisable during the original term of the grant. If the participant dies
within such period (following Retirement or “disability”), a transferee may exercise any unexpired Option before the expiration of the earlier to occur of (i) or (ii) of this Section 6(c). In the event of a participant’s separation
from service with the Corporation other than by death, disability or Retirement, an Option must be exercised prior to its expiration during the three month period beginning on the last day of employment. 
 

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 The agreement under which an Option is granted shall set forth the extent to which the participant shall
have the right to exercise the Option following termination of the participant’s employment. Such provisions shall be determined at the sole discretion of the Board and need not be uniform among all Options issued pursuant to this Section 6,
and may reflect distinctions based on the reasons for termination of employment. In any case where the terms governing an Option that is an ISO grant a longer exercise period than that permitted under Section 422 of the Code, the Option will
continue to be exercisable during the remainder of the period as a NQSO. 
  
 (d)    Each Option shall be exercisable for the full amount or any part thereof, including a partial exercise from time to time; provided, however, that in no event shall ISOs granted to a participant be
first exercisable in any one calendar year with respect to Shares having an aggregate fair market value, determined as of the Date of Grant, of more than $100,000. The option price for each exercised Option shall be paid in full at the time of such
exercise. The option price may be paid in cash or shares of Stock, the value of which shall be the fair market value on the date of the exercise of the Option, as determined in Section 6(b) of this Plan; provided, however, that any such
shares must have been held by a participant for a period of at least six months. An Option may also be exercised by delivery of the Option to a registered broker/dealer with instructions to exercise the Option and sell a sufficient number of the
shares of Stock acquired on exercise to pay the option price and, if not previously paid, any required tax withholdings. In any event, the participant may elect to deliver shares of Stock to the Company to allow any minimum tax withholding
requirements to be paid on behalf of the participant. 
  
 (e)    The Committee
may grant Options pursuant to the achievement of Performance Goals, as described in Section 11 of this Plan, and it may impose restrictions upon the vesting and exercise of Options based on the attainment of Performance Goals. 

 
 7.    Restricted Stock. 
  
 Restricted Stock may be granted by the Board from time to time, subject to the following provisions: 
  
 (a)    The Board shall determine the number of shares of Restricted Stock to be granted to a participant and direct the transfer agent
for the Stock that a certificate or certificates representing such number of shares be issued and registered in the participant’s name. The certificate(s) representing such shares shall be legended as to sale, transfer, assignment, pledge or
other encumbrance during the period the Restricted Stock is subject to forfeiture (such period being referred to herein as the “restriction period”) and deposited, together with a stock power with respect to the transfer thereof executed
by the participant and endorsed in blank, with the Treasurer of Carpenter Technology Corporation, to be held in escrow during the restriction period. 
  
 (b)    At the Board’s discretion, during the restriction period the Board may give participants the right to receive cash payments
in amounts equivalent to the dividends from time to time declared and paid in respect of the shares of Restricted Stock. All shares of Restricted Stock will include voting rights during the restriction period. 
  
 (c)    The Restricted Stock agreement shall specify the duration of the restriction period and the
performance, employment or other conditions under which the Restricted Stock may be forfeited 
 

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by the participant. At the end of the restriction period, the restrictions imposed hereunder shall lapse with respect to the number of shares of Restricted Stock as determined by the Board, and
the legend shall be removed and the certificates for such number of shares delivered from escrow to the participant. The Board may, in its sole discretion, modify or accelerate the vesting of shares of Restricted Stock. The participant’s
required tax withholding on newly vested shares of Restricted Stock may be paid in cash or the participant may elect to have the Company withhold a sufficient number of the vesting shares of Stock to pay any required tax withholdings on behalf of
the participant. 
  
 (d)    The Restricted Stock agreement shall set forth the
extent to which the participant shall have the right to vest in shares of Restricted Stock following termination of the participant’s employment. Such provisions shall be determined at the sole discretion of the Board and need not be uniform
among all Restricted Stock issued pursuant to this Section 7, and may reflect distinctions based on the reasons for termination of employment. 
  
 (e)    The Committee may grant Restricted Stock pursuant to the achievement of Performance Goals, as described in Section 11 of this Plan, and it may impose restrictions upon the
vesting of Restricted Stock based on the attainment of Performance Goals. 
  
 8.    Limited Authority to Grant
Certain Awards. 
  
 The Human Resources Committee may delegate, to Carpenter Technology Corporation’s Chief
Executive Officer (“C.E.O.”), authority to grant awards covering a pre-determined number of shares. Such delegation is limited to the authority to grant NQSOs and Restricted Stock to participants who are not subject to the requirements of
Rule 16b-3 of the Exchange Act. The option price of any NQSO shall not be less than the fair market value of a share of Stock on the date such grant is awarded by the C.E.O. The C.E.O. shall report at least annually on the disposition of these
shares to the Committee in a form and manner determined by the Committee. 
  
 9.    Stock Appreciation Rights.

  
 SARs may be granted by the Board from time to time, subject to the following provisions: 

 
 (a)    The Board may grant a SAR either in connection with the grant of an Option
(“Tandem SAR”) or independent of the grant of an Option (“Freestanding SAR”). Each Tandem SAR shall be exercisable only with the exercise and surrender of the related Option or portion thereof and shall entitle the participant to
receive the excess of the fair market value of the shares of Stock on the date the Tandem SAR is exercised over the option price under the related Option. The excess is hereafter called the “spread” for both Tandem SARs and Freestanding
SARs. If the participant elects instead to exercise the related Option, the Tandem SAR shall be cancelled automatically. 
  
 (b)    A Tandem SAR shall be exercisable only to the extent and at the same time that the related Option is exercisable. 
  
 (c)    A Freestanding SAR shall be exercisable pursuant to the terms and conditions that are specified in the agreement in which the
Freestanding SAR is granted. 
 

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 (d)    Upon the exercise of a SAR, the
Corporation shall pay to the participant an amount equivalent to the spread (less any applicable withholding taxes) in cash, or in Shares, or a combination of both, as the Board shall determine. Such determination may be made at the time of the
granting of the SAR. No fractional shares of Stock shall be issued and the Board shall determine whether cash shall be given in lieu of such fractional share or whether such fractional share shall be eliminated. 
  
 (e)    A Tandem SAR shall terminate and may no longer be exercised upon the termination or expiration
of the related Option. 
  
 (f)    Income attributable to the exercise of a SAR
shall not be included in the calculation of pension or other benefits payable at any time by reason of the participant’s employment by the Corporation. 
  
 (g)    No SAR shall be transferable by the participant except as provided in Section 6(c) of the Plan. 
  
 (h)    The agreement under which a SAR is granted shall set forth the extent to which the participant
shall have the right to exercise the SAR following termination of the participant’s employment. Such provisions shall be determined at the sole discretion of the Board and need not be uniform among all SARs issued pursuant to this Section 9,
and may reflect distinctions based on the reasons for termination of employment. 
  
 (i)    The Committee may grant SARs pursuant to the achievement of Performance Goals, as described in Section 11 of this Plan, and it may impose restrictions upon the vesting and exercise of SARs based on the
attainment of Performance Goals. 
  
 10.    Performance Units and Performance Shares. 
  
 Performance Units or Performance Shares may be granted to participants in such amounts or combinations and upon such terms, and at any
time and from time to time, as shall be determined by the Committee. Each Performance Unit shall be that fraction of a Performance Share that is determined by the Committee at the time of grant and shall have an initial value equal to that same
fraction of the value of a Share on the date of grant. Each Performance Share shall have an initial value equal to the fair market value of a Share on the Date of Grant. The Committee shall set one or more Performance Goals as described in Section
11 of this Plan. The extent to which those Performance Goals are met will determine the number and value of Performance Units or Performance Shares that will be paid out to the participant. 
  
 (a)    Amount of Performance Units or Performance Shares.    A participant may not receive grants totaling
more than 500,000 Performance Shares during any calendar year. 
  
 (b)    Earning of Performance Units or Performance Shares.    After the applicable Performance Period, as defined in Section 11, has ended, the holder of Performance Units or Performance
Shares shall be entitled to receive payout on the number and value of Performance Units or Performance Shares earned by the participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance
Goals have been achieved. 
 

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 (c)    Form and Timing of Payment of
Performance Units or Performance Shares.    Payment of earned Performance Units or Performance Shares shall be made as soon as practicable following the close of the applicable Performance Period in a manner designated by the
Committee, in its sole discretion. The Committee, in its sole discretion, may pay earned Performance Units or Performance Shares in the form of cash or in Shares (or in a combination thereof) which have an aggregate fair market value equal to the
value of the earned Performance Units or Performance Shares at the close of the applicable Performance Period. Such Shares may be granted subject to any restrictions deemed appropriate by the Committee. The participant’s required tax
withholding on newly awarded Performance Shares may be paid in cash or the participant may elect to have the Company withhold a sufficient number of the awarded Performance Shares to pay any required tax withholdings on behalf of the participant.

  
 (d)    Dividend and Voting Rights.    At the
discretion of the Committee, participants may be entitled to receive any dividends declared with respect to Shares which have been earned in connection with grants of Performance Units or Performance Shares, but not yet distributed to participants.
Participants may exercise voting rights with respect to such Shares. Participants will not have any voting rights with respect to Performance Units. 
  
 (e)    Dividend Equivalents.    The Committee may grant dividend equivalents in connection with Performance
Units or Performance Shares granted under this Plan. Such dividend equivalents may be payable in cash or in Shares, upon such terms as the Committee, in its sole discretion, deems appropriate. 
  

(f)    Termination of Employment due to Death, Disability or Retirement.    Unless determined otherwise
by the Committee and set forth in the participant’s award agreement, in the event the employment of a participant is terminated by reason of death, Disability or Retirement during a Performance Period, the participant shall receive a payout of
the Performance Units or Performance Shares which is prorated, as specified by the Committee in its discretion. Payment of earned Performance Units or Performance Shares shall be made at a time specified by the Committee in its sole discretion and
set forth in the participant’s award agreement. Notwithstanding the foregoing, with respect to participants who retire during a Performance Period, payments shall be made at the same time as payments are made to participants who did not
terminate employment during the applicable Performance Period. For this purpose, “Disability” shall be defined in a manner consistent with the definition of that term in the Corporation’s long-term disability plan under which the
participant participates, or at the discretion of the Committee using standards comparable to those under the Corporation’s long-term disability plans, if the participant does not participate in any such plan. In addition, for this purpose,
“Retirement” shall be defined for awards granted on or after June 27, 1996 as (1) the termination of employment with the Corporation after the participant has attained age 55 while being credited with at least ten Years of Service, or has
attained age 60 while being credited with at least five Years of Service, or at least thirty Years of Service regardless of age or (2) approval of a 70/80 or Rule-of-65 pension entitlement under the General Retirement Plan for Employees of Carpenter
Technology Corporation. For purposes of this Plan, a participant shall be credited with one Year of Service for each 12-month period following the participant’s commencement of service with the Corporation that the participant has worked at
least one hour for the Corporation. 
  
 (g)    Termination of Employment for
Other Reasons.    If a participant’s employment terminates for any reason other than those reasons set forth in Section 10(f), all Performance Units or 
 

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Performance Shares shall be forfeited by the participant to Carpenter Technology Corporation unless determined otherwise by the Committee, as set forth in the participant’s award agreement.

  
 (h)    Nontransferability.    Except as otherwise
provided in a participant’s award agreement, Performance Units or Performance Shares may not be sold, transferred, pledged, assigned or otherwise alienated, other than by will or by the laws of descent and distribution. Further, except as
otherwise provided in a participant’s award agreement, a participant’s rights under the Plan shall be exercisable during the participant’s lifetime only by the participant or the participant’s legal representative. 

 
 (i)    Payment for Performance Units and Shares upon a Change in
Control.    Within 30 days following a Change in Control Event, as defined in Section 13(b) of the Plan, there shall be paid in cash to participants holding Performance Units and Performance Shares a pro rata amount based
upon the assumed achievement of all relevant Performance Goals at target levels, and upon the length of time within the Performance Period that has elapsed before the Change in Control Event; provided, however, that if the Committee
determines that actual performance to the date of the Change in Control Event exceeds targeted levels, the prorated payouts shall be made using the actual performance data; and provided further, that there shall not be an accelerated payout
with respect to Performance Shares or Performance Units that qualify as “derivative securities” under Section 16 of the Exchange Act that were granted less than six months before the Change in Control Event. 
  
 11.    Performance Goals. 
  
 For all purposes under this Plan, “Performance Goals” means goals that must be met by the end of a period specified by the Committee based upon one or more of the following criteria: (i)
price of the Stock, (ii) market share of the Corporation, (iii) sales by the Corporation, (iv) earnings per share of the Stock, (v) return on shareholder equity of the Corporation, or (vi) costs of the Corporation. The time period during which the
Performance Goals must be met shall be called a “Performance Period.” The Performance Goals shall be interpreted in a manner that complies with the exceptions for performance-based compensation set forth in Code § 162(m) and Treas.
Reg. § 1.162-27, as in effect during any relevant period, and must be set (a) before 25% of the Performance Period has elapsed and (b) at a time when it is substantially uncertain that the Performance Goals will be met. 
  
 12.    Adjustment Provisions. 
  
 If Carpenter Technology Corporation shall at any time change the number of issued shares of Stock without new consideration to Carpenter Technology Corporation (such as by stock dividends, stock
splits, stock combinations, stock exchanges or recapitalization), the total number of Shares reserved for issuance under this Plan, limits on types of awards that may be issued, the number of Shares covered by, the option price for, and any other
relevant terms of, each outstanding award shall be adjusted so that the aggregate consideration payable to Carpenter Technology Corporation and the value of each award under this Plan shall not be changed. In the event of a merger, reorganization,
acquisition, consolidation, divestiture, sale or exchange of assets of Carpenter Technology Corporation, or similar event, the Board shall make such adjustments with respect to awards under this Plan or take such other action as it determines to be
appropriate and such determination shall be conclusive. 
 

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 13.    Change in Control. 
  
 (a)    Notwithstanding any provision in this Plan to the contrary, upon the occurrence of a Change in
Control Event, (i) each Option then outstanding shall become immediately exercisable to the full extent of the Shares subject thereto, (ii) any remaining restrictions on shares of Restricted Stock shall immediately lapse, (iii) each SAR then
outstanding shall be fully exercisable immediately following the occurrence of the Change in Control Event using the Change in Control Price [as defined in subsection (c)] to determine the spread, and (iv) any Performance Units or Performance Shares
shall become fully vested and payment shall be made pursuant to the terms of Section 10(i). In addition, notwithstanding anything in this Plan to the contrary, if the employment of an optionee or holder of a SAR is terminated by the Corporation
without “cause” [as defined in Section 15(a)], or, in the case of an employee who is covered by an employment arrangement or agreement that enables such employee to terminate for Good Reason (as defined in such arrangement or agreement),
for Good Reason, in either case during the two-year period commencing on the date of the occurrence of a Change in Control Event, then such employee shall be able to exercise his or her Options and SARs until the earlier of (x) the second
anniversary of such employment termination or (y) the expiration of their original term. 
  
 (b)    For purposes of this Plan, a “Change in Control Event” means: 
  
 (1)    The acquisition by any individual, entity or group [within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act] (a “Person”) of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either (A) the then-outstanding shares of common stock of Carpenter Technology Corporation (the “Outstanding Company Common Stock”) or (B) the combined voting power of the
then-outstanding voting securities of Carpenter Technology Corporation entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this
Section 13(b), the following acquisitions shall not constitute a Change in Control Event: (i) any acquisition directly from Carpenter Technology Corporation, (ii) any acquisition by Carpenter Technology Corporation, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Carpenter Technology Corporation or any affiliated company or (iv) any acquisition by any corporation pursuant to a transaction that complies with Sections 13(b)(3)(A),
13(b)(3)(B) and 13(b)(3)(C); 
  
 (2)    individuals who, as of the date hereof,
constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the date hereof whose election, or
nomination for election by Carpenter Technology Corporation’s stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person other than the Board; 
  
 (3)    consummation of a reorganization, merger, consolidation or sale or other disposition of all or substantially all of the assets of Carpenter Technology Corporation or the acquisition of the assets or stock
of another entity (a “Business Combination”), in each case, unless, following such Business Combination, (A) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock
and the Outstanding Company Voting Securities 
 

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immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the
then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation that, as a result of such
transaction, owns Carpenter Technology Corporation or all or substantially all of Carpenter Technology Corporation’s assets either directly or through one or more subsidiaries) in substantially the same proportions as their ownership
immediately prior to such Business Combination of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (excluding any corporation resulting from such Business Combination or any
employee benefit plan (or related trust) of Carpenter Technology Corporation or such corporation resulting from such Business Combination) beneficially owns, directly or indirectly, 20% or more of, respectively, the then-outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such corporation, except to the extent that such ownership existed prior to the Business Combination, and (C)
at least a majority of the members of the board of directors of the corporation resulting from such Business Combination were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board
providing for such Business Combination; or 
  
 (4)    approval by the
stockholders of Carpenter Technology Corporation of a complete liquidation or dissolution of Carpenter Technology Corporation. 
  
 (c)    For purposes of SARs granted under this Plan, “Change in Control Price” shall mean the higher of (i) the highest price paid per share of Stock in any transaction
constituting a Change in Control Event, or (ii) the highest fair market value of the Stock at any time during the sixty-day period preceding the occurrence of the Change in Control Event. 
  

14.    Amendment, Modification and Termination of the Plan. 
  
 The Board at any time may terminate, and at any time and from time to time and in any respect, may amend or modify, the Plan; provided, however, that no such action by the Board, without
approval of the stockholders, may: (i) increase the Shares available for award pursuant to the Plan or the maximum number of Shares for which Options may be granted under the Plan to any one individual, except as contemplated in Section 12, (ii)
permit Options to be granted at less than fair market value, (iii) permit any person who is not both a “non-employee director” and an “outside director” from serving as a member of the Committee contemplated in Section 2, (iv)
change the provisions of this Section 14, or (v) effect other changes for which stockholder approval would be required under Rule 16b-3 of the Exchange Act or any successor rule promulgated by the SEC. No amendment or modification of the Plan shall
be made that would adversely affect any award previously granted under the Plan without the prior written consent of such holder, except such an amendment necessary to comply with applicable law, stock exchange rules or accounting rules. The ability
to award ISOs under the Plan shall automatically terminate ten years after the earlier of (a) the date the Plan is adopted, or (b) the date the Plan is approved by stockholders. Termination of the Plan pursuant to this Section 14 shall not affect
awards outstanding under the Plan at the time of termination. 
 

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 15.    General Provisions. 
  
 (a)    Notwithstanding anything in the Plan to the contrary, in the event a participant’s
employment with the Corporation is terminated for “cause,” the Board may, in its sole discretion, cancel each unexercised or unvested award granted to such participant effective upon the termination. For purposes of this subsection, a
termination for “cause” shall mean termination of a participant’s employment with the Corporation which results from either (i) the participant’s commitment of an Intolerable Offense (as defined in the Corporation’s
Personnel Practices and Policies as in effect on the date of termination) or (ii) the operation of the Corporation’s Corrective Performance System (as set forth in the Corporation’s Personnel Practices and Policies as in effect on the date
of termination). 
  
 (b)    Nothing contained in the Plan, or an award granted
under the Plan, shall confer upon a participant any right with respect to continuance of employment with the Corporation, nor interfere in any way with the right of the Corporation to terminate such employment at any time. 
  
 (c)    For purposes of this Plan, transfer of employment between any members of the Corporation shall
not be deemed termination of employment. 
  
 (d)    Participants shall be
responsible to make appropriate provisions for all taxes in connection with any award, the exercise thereof and the transfer of Shares pursuant to this Plan. However, in the absence of an alternative provision the Corporation shall withhold the
number of Shares whose aggregate fair market value on the date of such withholding equals the amount to be withheld in satisfaction of the Corporation’s obligation under all applicable withholding taxes. A participant may acquire such Shares by
paying to the Corporation an amount equal to the Corporation’s withholding obligation. Agreements evidencing such awards shall contain appropriate provisions to effect withholding in this manner. 
  
 (e)    Without amending the Plan, awards may be granted to employees who are foreign nationals or
employed outside the United States or both, on such terms and conditions different from those specified in the Plan as may, in the judgment of the Board, be necessary or desirable to further the purpose of the Plan. 
  
 (f)    To the extent that Federal laws (such as the Exchange Act or the Code) do not otherwise
control, the Plan and all determinations made and actions taken pursuant hereto shall be governed by the law of the State of Delaware and construed accordingly. 
  
 (g)    The Committee shall have the authority to improve the terms of any granted Option, Restricted Stock agreement, SAR agreement or
established Performance Goals, subject to the limitation that the price of an Option may not be reduced to less than fair market value. 
  
 16.    Effective Date of the Last Restated Plan Document. 
  
 The
amendment and last restatement of the Plan became effective upon approval by the Board on June 27, 1996 and was ratified by the stockholders at the Annual Meeting held on October 21, 1996. 
 

 11Prepared by R.R. Donnelley Financial -- Trust Agreement

 Exhibit 10.p 
  
 TRUST AGREEMENT 
  
 Carpenter Technology Corporation 
 Non-Qualified Benefits Trust for Directors 
  
 TRUST AGREEMENT effective as of the 1st day of May, 1997, by and between Carpenter Technology Corporation, a corporation organized under the laws of the State of Delaware (hereinafter referred to as the “Company”), and THE
CHASE MANHATTAN BANK, a banking corporation organized under the laws of the State of New York (hereinafter referred to as the “Trustee”). 
  
 BACKGROUND 
  
 The Company maintains the benefit plans listed
on Exhibit A hereto (the “Plans”) for the benefit of various of its Directors. The Company intends to create a trust, to which it will contribute cash, or other property acceptable to the Trustee, to help the Company meet its obligations
under the Plans, and to assure that, subject to the sufficiency of the Trust Fund, payments provided for by the Plans are not improperly withheld in the event of a Change in Control of the Company. 
  
 The establishment of this Trust shall not affect the Company’s continuing obligation to make payments under the Plans, except that
the liability shall be reduced to the extent payments are made by the Trustee hereunder. 
  
 The assets of the Trust
Fund shall be, and shall remain, subject to the claims of the Company’s general creditors in the event of the Company’s insolvency. Otherwise, the Trust shall be irrevocable until all liabilities under all Plans have been satisfied, at
which time the Trust shall terminate, and all remaining assets of the Trust Fund shall be returned to the Company. 
  
 The Trust is intended to be a “grantor trust” with the result that the corpus and income of the Trust are treated as assets and income of the Company pursuant to sections 671 through 679 of the “Code”.

  
 The Company intends that the Plans not be deemed funded (within the meaning of Title I of ERISA) despite the
existence of this Trust. 
  
 NOW, THEREFORE, in consideration of the mutual covenants herein contained, the Company
and the Trustee covenant and agree as follows: 
  
 ARTICLE I 

  
 DEFINITIONS; ESTABLISHMENT OF
TRUST 
  
 Section 1.01    Definitions.    Whenever used
in this Trust Agreement, unless otherwise provided or the context otherwise requires: 
  
 (a)    “Account” shall mean an account maintained in respect of a Participant pursuant to Section 4.02. 
  
 (b)    “Benefits” shall mean, with respect to each Participant, the benefits payable to or in respect of that
Participant pursuant to the applicable Plan listed on Exhibit A. 
  
 (c)    “Change in Control” is defined in Article III. 
  
 (d)    “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time. 
  
 (e)    “Committee” shall mean the Human Resources Committee of the Company’s Board of Directors, or its successor. 
  
 (f)    “Company” shall mean Carpenter Technology Corporation or any successor company
by merger, acquisition or otherwise. 
  
 (g)    “ERISA” means
the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 (h)    “Investment Manager” shall mean any person or entity that qualifies as an Investment Manager under section 3(38) of the Employee Retirement Income Security Act of 1974, as amended
(“ERISA”), and is appointed by the Pension Board or a duly authorized officer of the Company to manage Trust assets that are not invested in life insurance policies. 
  
 (i)    “Participant” shall mean each person entitled to benefits under any Plan, including the beneficiaries pursuant
to any Plan. 
  
 (j)    “Pension Board” shall mean the Pension
Board as defined in the General Retirement Plan for Employees of Carpenter Technology Corporation. 
  
 (k)    “Plan” shall mean any plan listed on Exhibit A hereto, as in effect from time to time. “Plans” shall mean all such plans. 
  

(l)    “Trust” shall mean the trust established under this Trust Agreement. 
  
 (m)    “Trust Agreement” shall mean this trust agreement, as from time to time
amended. 
  
 (n)    “Trust Fund” shall mean the trust fund held
from time to time by the Trustee hereunder consisting of all contributions received by the Trustee together with the investments and reinvestment made 
 

 2 

 
therewith and all net profits and earnings thereon less all payments and charges therefrom. 
  
 (o)    “Trustee” shall mean The Chase Manhattan Bank, or its successor, or an officer, director or employee of such a Trustee exercising any fiduciary powers under
this Trust Agreement; provided, however, that in no event may any subsidiary or affiliate of the Company or any Participant be such a successor Trustee. 
  
 Section 1.02    Establishment and Title of the Trust.    The Company hereby establishes with the Trustee a trust to be known as the “Carpenter
Technology Corporation Non-Qualified Benefits Trust for Directors,” consisting of such sums of money and other property acceptable to the Trustee as from time to time may be paid or delivered to the Trustee pursuant to this Trust Agreement. The
Trust Fund shall be held by the Trustee in trust and shall be dealt with in accordance with the provisions of this Trust Agreement. 
  
 Section 1.03    Acceptance by the Trustee.    The Trustee accepts the Trust established hereunder on the terms and conditions set forth herein and agrees to perform the duties
imposed on it by this Trust Agreement. 
  
 ARTICLE II 
  

INVESTMENT AND ADMINISTRATION OF THE TRUST FUND 

 
 Section 2.01    Investment of the Trust Fund.    Except as directed by any
Investment Manager, the Pension Board or a duly authorized officer of the Company, the Trustee shall have the exclusive responsibility and authority to hold, invest, reinvest and administer the assets of the Trust, hereinafter referred to as the
“Fund”, in accordance with the terms of this Trust Agreement. The Trustee shall be under no liability for any loss of any kind that may result when it follows proper written directions of the Pension Board or a duly authorized officer of
the Company which are in accordance with the terms of the Trust Agreement and not contrary to law. 
  
 (a)    If an Investment Manager is so appointed by the Pension Board or a duly authorized officer of the Company to manage any portion of the Trust Fund, the Trustee’s only responsibility with respect to such
portion shall be: 
  

	 	(1)
	 
	except as otherwise directed by the Pension Board or a duly authorized officer of the Company, to retain custody of the assets of such portion of the Trust
Fund; and 
 

  

	 	(2)
	 
	to follow the written directions of the Investment Manager with respect to such portion of the Trust Fund. 
 

 

 3 

  
 (b)    The Trustee shall incur no liability
with respect to the investment of any portion of the Trust Fund if an Investment Manager has been appointed to manage that portion of the Trust Fund, by the Pension Board or a duly authorized officer of the Company for either: 

 

	 	(1)
	 
	following the written directions of the Investment Manager; or 
 

  

	 	(2)
	 
	failing to act in the absence of written directions from the Investment Manager. 
 

  

 
 Notwithstanding anything to the contrary herein contained, the Pension Board or a duly authorized officer of
the Company may direct the transfer of such part or all of the Fund as it shall deem advisable to The Chase Manhattan Bank as trustee of any trust (“Collective Trust”) maintained by it as a common trust fund as defined under section 584 of
the Code, now or hereinafter maintained by it as a medium for the collective investment of assets of trusts and which it may elect to make available to non-qualified benefit trusts, and the Pension Board or a duly authorized officer of the Company
may direct the withdrawal of any part or all of the Fund so transferred. To the extent of the interest of the Trust in any Collective Trust, the terms of the agreement or declaration of trust establishing such Collective Trust shall be a part of
this Trust as if set forth in full herein, and any assets transferred to any Collective Trust shall be held, invested and administered in accordance with such agreement or declaration of trust, which shall be controlling notwithstanding any contrary
provision of this Agreement. 
  
 Section 2.02    Plan
Insurance.    The Company may apply for and maintain such contracts of insurance with one or more insurance companies and on such rating or risk terms as the Company may determine to be appropriate for the provision of
benefits under the Plans. The Trust shall be the policyholder and owner of such contracts. The Trustee, only as directed by the Pension Board or a duly authorized officer of the Company, shall pay premiums or other charges with respect to such
contracts from assets of the Trust Fund. 
  
 Section 2.03    Investments of
Insurance.    The Pension Board or a duly authorized officer of the Company may direct the Trustee to apply for and maintain contracts of insurance with one or more companies for investment purposes pursuant to Section
2.05(m), using the proceeds of such insurance to fund the Trust. The Trustee shall be the policyholder and owner of such contracts. The Trustee, only as directed by the Pension Board or a duly authorized officer of the Company, shall exercise any
and all investment options, decisions or rights that the Trustee has as policyholder and owner of such insurance policies held for investment purposes. 
  
 (a)    If the Trustee is directed by the Pension Board or a duly authorized officer of the Company to purchase an insurance policy for

 

 4 

 
investment purposes, the Trustees only responsibility with respect to such policy shall be: 
  

	 	(1)
	 
	except as otherwise directed by the Pension Board or a duly authorized officer of the Company, to retain custody of such policy; and 

  

	 	(2)
	 
	to follow the written directions of the Pension Board or a duly authorized officer of the Company with respect to such policy. 
 

 
 (b)    The Trustee shall incur no liability with respect to the purchase of an insurance
policy purchased for investment purposes if directed by the Pension Board or a duly authorized officer of the Company for either: 
  

	 	(1)
	 
	following the written directions of the Pension Board or a duly authorized officer of the Company with respect to such policy; or 

  

	 	(2)
	 
	failing to act in the absence of written directions from the Pension Board or a duly authorized officer of the Company with respect to such policy.

 

  
 Section 2.04    Funding Policy.    From time to
time the Pension Board or a duly authorized officer of the Company may communicate to the Trustee in writing the current funding policy and method that have been established to carry out the objectives of the Trust. The Trustee’s discretion in
investing and reinvesting the principal and income of the Fund shall be subject to the funding policy, and the Trustee shall have the duty to act strictly in accordance with and may rely upon, such funding policy, and any changes therein, as so
communicated to the Trustee from time to time in writing. 
  
 Section 2.05    Investment
Powers of Trustee.    Subject to the direction of an Investment Manager, the Pension Board or a duly authorized officer of the Company, or with respect to assets subject to the Trustee’s investment, management and
control, the Trustee shall have, with respect to any securities or other property at any time held by it and constituting part of the Fund, power: 
  
 (a)    to purchase, receive or subscribe for any securities or other property and to retain in trust such securities or other property;

  
 (b)    to sell, exchange, redeem or otherwise dispose of any securities or
other property at public or private sale for cash, on credit, or for other securities or property, and to grant options for the purchase or exchange thereof without liability on the purchasers to see to the application of the purchase money;

 

 5 

  
 (c)    to participate in any plan of
reorganization, consolidation, merger, combination, liquidation or other similar plan relating to any securities or other property held in the Fund, and to consent to or oppose any such plan or any action thereunder, or any contract, lease,
mortgage, purchase, sale or other action by any person or corporation; 
  
 (d)    to deposit any securities or other property with any protective, reorganization or similar committee; and to pay and agree to pay part of the expenses and compensation of any such committee and any
assessment levied with respect to any securities or other property so deposited; 
  
 (e)    to exercise conversion and subscription rights pertaining to any securities or other property held in the Fund; 
  
 (f)    to extend the time of payment of any obligation held in the Fund; 
  
 (g)    to enter into stand-by agreements for future investment, either with or without a stand-by fee; 
  
 (h)    to hold any moneys received by the Trustee in a common trust fund as defined under Section 584
of the Code, now or hereinafter maintained by it as a medium for the collective investment of assets of trusts, or any other comparable fund the Trustee deems advisable; 
  
 (i)    to exercise all voting rights with respect to any investment and to grant proxies, discretionary or otherwise; 

 
 (j)    to collect and receive any and all money, securities or other property due to the
Fund and to give full discharge therefor; 
  
 (k)    with the consent of the
Company, to settle, compromise or submit to arbitration any claims, debts or damages due or owing to or from the Trust; with the consent of Carpenter, to commence or defend suits or legal proceedings to protect any interest of the Trust; and, with
the consent of Carpenter, to represent the Trust in all suits or legal proceedings in any court or before any other body or tribunal (subsequent to a Change in Control the consent of Carpenter is not required to pursue the powers granted in this
Section); 
  
 (l)    for the purposes of the Trust and if so instructed by the
Investment Manager, the Pension Board or a duly authorized officer of the Company, to borrow money from others, to issue its promissory note or notes therefore, and to secure the repayment thereof by pledging any securities or other property in its
possession; provided, however, that no such loan or advance shall be made by the Trustee hereunder other than as temporary advances to the Fund, on a cash or overdraft basis, on which no interest is payable and provided further that no insurance
contract shall be pledged except to secure a loan to pay premiums thereon; 
 

 6 

  
 (m)    to purchase insurance contracts, and
pay premiums with respect thereto; 
  
 (n)    to organize under the laws of any
state a corporation or trust for the purpose of acquiring and holding title to any securities or other property which it is authorized to acquire under this Trust Agreement and to exercise with respect thereto any or all of the powers set forth in
this Trust Agreement. 
  
 Section 2.06    Discretionary Powers of
Trustee.    The Trustee shall have the following powers and authority with respect to the fund: 
  
 (a)    to employ suitable agents and counsel and to pay their reasonable and proper expenses and compensation; 
  
 (b)    to register any securities held by it hereunder in its own name or in the name of a nominee with or without the addition of words
indicating that such securities are held in a fiduciary capacity and to hold any securities in bearer form and to deposit any securities or other property in a depository or a clearing corporation; 
  
 (c)    to make, execute and deliver, as Trustee, any and all deed, leases, mortgages, conveyances,
waivers, releases or other instruments in writing necessary or desirable for the accomplishment of any of the powers listed in Section 2.05; and 
  
 (d)    generally, to do all acts, whether or not expressly authorized, which the Trustee may deem necessary or desirable for the protection of the Fund. 
  
  
 Section 2.07    Securities or Other
Property.    The words “securities or other property” as used in this Trust Agreement shall be deemed to refer to any property, real or personal, or part interest therein, wherever situate, including, but not
limited, to governmental, corporate or personal obligations, trust and participation certificates, leaseholds, fee titles, mortgages and other interests in realty, preferred and common stocks, certificates of deposit, put and call options and other
option contracts of any type, foreign or domestic, whether or not traded on any exchange, tangible personal property, contracts for future or immediate receipt or delivery of property, evidences of indebtedness or ownership in foreign corporation or
other enterprises, indebtedness of foreign governments, limited partnerships, insurance contracts, and any other evidences of indebtedness or ownership including securities or other property of the Company, without being limited to the classes of
property in which trustees are authorized to invest trust funds by any law or any rule of court of any State. 
  
 Section 2.08    Trustee’s Authority.    Persons dealing with the Trustee shall be under no obligation to see the proper application of any money paid or property delivered to
the Trustee or to inquire into the Trustee’s authority as to any transaction. 
 

 7 

  
 Section 2.09    Protection
Clause.    Neither the Company nor the Trustee shall be responsible for any insurance company’s failure to make payments provided by such contract, or for the action of any person which may delay payment or render a
contract null and void or unenforceable in whole or in part. 
  
 Section 2.10    Following a
Change In Control.    Following the occurrence of a Change in Control as defined in Section 3.01, the Trustee shall follow the last funding policy communicated in writing by the Pension Board or a duly authorized officer of
the Company prior to such Change in Control. Notwithstanding instructions to the contrary, the maturity of investment instruments shall at all times be selected to permit the timely payment of benefits under the Plans. 
  
 ARTICLE III 
  
 CHANGE IN CONTROL 
  
 Section
3.01    Definition of Change in Control.    For purposes of this Trust, a “Change in Control” of the Company shall be deemed to have occurred if: 
  
 (a)    a “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of the Company, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Company
representing 25% or more of the combined voting power of the Company’s then outstanding securities; or 
  
 (b)    during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board and any new director
(other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Section 3.01(a), 3.01(c) or 3.01(d) whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds ( 2/3) of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 
  
 (c) the stockholders of the Company approve a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which
would result in the voting securities of 
 

 8 

 
the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least 75% of
the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation, or 
  
 (d)    the stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company of all or substantially all the Company’s assets. 
  
 Section
3.02    Definition of a Potential Change in Control.    For purposes of this Trust, a “Potential Change in Control” of the Company shall be deemed to have occurred if: 
  
 (a)    the Company enters into an agreement, the consummation of which would result in the occurrence
of a change in control of the Company, 
  
 (b)    any person (including the
Company) publicly announces an intention to take or to consider taking actions which if consummated would constitute a change in control of the Company; 
  
 (c)    any person, other than a trustee or other fiduciary holding securities under an employee benefit plan of the Company or a
corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company, who is or becomes the beneficial owner, directly or indirectly, of securities of the
Company representing 10% or more of the combined voting power of the Company’s then outstanding securities, increases his beneficial ownership of such securities by 5% or more of the combined voting power of the Company’s then outstanding
securities on the effective date of this Agreement; or 
  
 (d)    the Board of
Directors of the Company adopts a resolution to the effect that, for purposes of this Trust, a “potential change in control” has occurred. Such a resolution will be provided to the Trustee in certified form. 
  
 Section 3.03    Requirement of Notice.    Notwithstanding the definitions in Sections 3.01
and 3.02, no Change in Control or Potential Change in Control shall be deemed to have occurred for purposes of this Trust Agreement unless and until the Trustee has actual written notice from the Company or from any person who was an officer of the
Company prior to the alleged Change in Control or the alleged Potential Change in Control that such Change in Control or Potential Change in Control has occurred. 
  
 ARTICLE IV 
  
 CONTRIBUTIONS 

 9 

  
 Section 4.01    Contributions by the Company.

  
 (a)    The Company will deliver contributions hereunder to the Trustee at
such times, and in such amounts, as the Company may determine to be appropriate to enable the Trust to accumulate assets sufficient to pay all, or any part, as determined by the Company, of the benefits payable under the Plans. 

 
 (b)    Upon the occurrence of a Potential Change in Control, the Company, if it so chooses,
will deliver to the Trustee cash and/or marketable securities having a fair market value in an amount equal to the sum of the amounts, determined by an actuary selected by the Company, which will be sufficient to fund fully the Company’s
obligations to pay to the Participants the full amount of all Benefits to which they may become entitled pursuant to the Plans. The actuarial basis employed by such actuary shall include the following assumptions: no interest will be earned on plan
assets; Directors’ fees will increase at the rate of 10% per annum; there will be no change in the plan; and, a Director will be assumed to terminate at such time as to maximize his benefits under the Plans but not later than age 70. Any such
contribution shall be identified to the Trustee, by the Company, as a Section 4.01(b) contribution. 
  
 (c)    In addition to contributions made to the Trust pursuant to Sections 4.01(a) and 4.01(b), the Company shall deliver to the Trustee any amounts which the Trustee is required to pay pursuant to Section 6.02.

  
 (d)    The Trustee shall be responsible only for contributions actually
received by it hereunder. The Trustee shall have no duty or authority to ascertain whether any contributions should be made to it or to bring any action or proceeding to enforce any obligation to make any such contribution. 
  
 (e)    In the event that the Trust is overfunded; any amount of such assets constituting the
overfunding shall: 
  

	 	(1)
	 
	first, be transferred to the Carpenter Technology Corporation Non-Qualified Employee Benefits Trust (“the Employees’ Trust”) until the
Employees’ Trust becomes overfunded; and 
 

  

	 	(2)
	 
	second, returned to the Company. 
 

  
 (f)    For the purposes of Section 4.01(e), above, the Trust is “overfunded” when the amount of assets held in the Trust Fund exceed 110% of the present value of the
future benefits expected to be paid under the Plans. The present value of future benefits shall be calculated as the projected benefit obligation (“PBO”), as described in
 
 

 10 

 
Statement No. 87 of the Financial Accounting Standards Board, except that projected service will be taken into account as if accrued. The present value shall be calculated using the actuarial
assumptions used to determine the Company’s pension expense for the General Retirement Plan for Employees of Carpenter Technology Corporation, except that the discount rate shall be adjusted to the extent that assets held by the Trust are
subject to tax. The determination of whether the Trust is overfunded shall be made by a qualified actuary selected by the Human Resources Committee. 
  
 Section 4.02    Accounts. 
  
 (a)    Before a Change In Control.    The Company shall create a separate Account for each Participant, cause records to be maintained by the Company, or retain a separate recordkeeper
as the Company’s agent, reflecting the amount, if any, credited to that Participant in accordance with the terms of the Deferred Compensation Plan for Non-Management Directors of Carpenter Technology Corporation (the “Deferred Compensation
Plan”). When a contribution is made, the Company shall notify the Trustee of the amount of such contribution allocable to each Participant’s Account and/or specific plans. The Trustee shall not be required to maintain any separate account
records, but shall rely solely upon the information maintained by the Company and the notice to the Trustee as herein provided. The remainder, (or all thereof if no allocation is indicated) of such contribution shall not be specifically allocated to
any Plan or any Participant, but shall be available to discharge the Company’s obligations to make benefit payments under any of the Plans in accordance with the applicable provisions of Article V. The Company shall, however, provide to the
Trustee, with respect to each Plan, at such intervals as the Company shall determine, but in no event less frequently than annually, a schedule listing each Participant, each Plan under which that Participant has accrued a benefit and the amount of
such benefit. The Trustee shall have no responsibility with respect to the determination or accuracy of any such allocations and/or the accrued benefits due any participant or plan as herein provided, but shall rely solely upon such information
provided to it by the Company. 
  
 (b)    Following a Change In
Control.    Upon notice to the Trustee that a Change in Control has occurred, or that a Potential Change in Control has occurred and that the Company has invoked the allocation procedures of this Section 4.02(b), the Trustee,
based upon the schedule of such benefits most recently provided to the Trustee by the Company, shall allocate all of the Trust Fund’s assets as follows: assets shall first be allocated to the Deferred Compensation Plan portion of each
Participant’s Account in an amount equal to each Participant’s accrued benefit therein not previously allocated thereto. In the event that the Trust Fund’s assets are insufficient to fully fund each Participant’s accrued benefit
under the Deferred Compensation Plan, the assets shall be allocated ratably to the Participants’ Accounts in the ratio that the
 
 

 11 

 
accrued benefits in respect of each such Participant under said Deferred Compensation Plan bear to the total accrued benefits of all such Participants under said plan. The balance of the assets
shall be allocated to each participant’s account in an amount equal to each participant’s accrued benefit under all of the Plans other than the Deferred Compensation Plans. If the assets of the Trust Fund, after making provision for the
Deferred Compensation Plan, are insufficient to fully fund all of the accrued benefits of all Participants under all of the other Plans, those assets shall be allocated ratably to the Participants’ Accounts in the ratio that the accrued
benefits in respect of each such Participant under all of such other Plans bear to the total accrued benefits of all such Participants under all such other Plans. 
  
 Section 4.03    Delivery to the Company.    Any Section 4.01(b) contribution delivered to the Trustee shall be returned to
the Company without interest on the 181st day following (and exclusive of the date of) its receipt by the Trustee, unless within 180 days following such receipt by the Trustee, a notice of the “Change in Control” shall have been received
by the Trustee pursuant to Section 3.03. Such 180-day period shall be extended for an additional 180-day period for any “Potential Change in Control” which occurs or continues during any initial or extended 180-day period. The Company will
provide the Trustee with written notice of any extension. 
  
 Section 4.04    Trustee’s
Agent.    The Trustee shall be entitled to retain such actuarial, accounting, legal and other services as it may deem necessary to accomplish and/or maintain such allocations, payments and/or Participant Account records as
are provided for under Articles IV and V hereof or to conduct its investment responsibilities under Section 2.06, and to pay for such services as an expense of the Trust Fund out of the assets of the Trust Fund, unless promptly paid by the Company.

 

 12 

  
 ARTICLE V 
  
 PAYMENT OF BENEFITS 
  
 Section 5.01    Payments by Trustee. 
  
 (a)    Prior to a Change In Control.    Until such time as Section 5.01(b) applies, all payments to Participants in any of the Plans shall be made by the Company, as agent for the
Trustee, in accordance with the applicable provisions of the Plans. Upon receipt of written instructions to the Trustee from the Company of the amount needed to pay such benefits the Trustee shall promptly disburse such funds to the Company and,
upon that disbursement shall have no further responsibility with respect to such funds or their application. 
  
 (b)    Following a Change In Control.    Following notice to the Trustee that a Change in Control has occurred, and subject to the limitation of Section 5.01(c), the Trustee shall make
payments to Participants and their beneficiaries from the Trust Fund in accordance with the payment schedule most recently provided by the Company to the Trustee prior to the occurrence of the Change in Control; provided, however, that if the
Company and a Participant agree to the substitution of a new payment schedule with respect to such Participant following the occurrence of a Change in Control, the Trustee shall instead make payments in accordance with such substitute payment
schedule. In the event that the Company and a Participant (or in the event of his death, his Beneficiary) disagree as to the amount, form or duration of benefit payments under a Plan, the Trustee shall continue to make benefit payments pursuant to
the payment schedule most recently provided by the Company prior to a Change in Control until authorized to make payments under a substitute schedule by both the Participant (or Beneficiary) and the Company or until the Trustee receives a final
non-appealable order from a court of competent jurisdiction to alter such benefit payment schedule. 
  
 (c)    Any amount paid under this Section 5.01 shall be charged by the Company or the Trustee, as the case may be, against the Account of the applicable Participant and no payment with respect to an Account shall
be made in excess of the amount credited to such Account. 
  
 (d)    The Trustee
shall not make any payments to Participants or beneficiaries from the Trust Fund except as provided in this Section 5.01 even though it may be informed from another source that payments are due under a Plan. The Trustee shall be fully protected in
making payments or omitting to make payments in accordance with Section 5.01(b). 
 

 13 

  
 Section 5.02    Determinations by Committee or
Company. 
  
 (a)    If at any time the Company or, if Section 5.01(b)
applies, the Trustee, determines that any amount held in the Trust Fund is includible in the gross income of a Participant or his beneficiary for federal income tax purposes prior to payment of such amount from the Trust Fund, the Trustee, upon
notice from the Company or, if Section 5.01(b) applies, upon notice by a Participant or Beneficiary, in the format provided in Exhibit B, that based on a (i) change in the tax or revenue laws of the United States of America, (ii) a published ruling
or similar announcement issued by the Internal Revenue Service, (iii) a regulation issued by the Secretary of the Treasury or his delegate, (iv) a decision by a court of competent jurisdiction involving the Participant or Beneficiary, or (v) a
closing agreement made under Code Section 7121 that is approved by the Internal Revenue Service and involves the Participant or Beneficiary, that Participant or Beneficiary has recognized or will recognize income for federal income tax purposes with
respect to amounts that are or will be payable to him under the Plans before they are paid to him, shall pay such amount to such person in the manner directed by the Committee or by such notice to the Trustee and the Participant’s Account shall
be charged, or his accrued benefit reduced, accordingly. 
  
 (b)    If at any
time the Company prior to a Change in Control determines that the amount allocated to the Account of any Participant exceeds the amount reasonably expected to be necessary to provide the Benefits payable in respect of such Participant from such
Account, such excess may be reallocated to the Accounts of other Participants or held as part of the unallocated Fund, as determined by the Company. If at any time prior to a Change in Control the Committee determines that the Benefits in respect of
all Participants have been paid in full, the Committee shall so notify the Trustee in writing. 
  
 Section
5.03    Withholding, Returns and Reports. 
  
 (a)    Prior to a Change in Control.    Prior to a Change in Control, the Company shall withhold all required federal, state and local taxes from benefit payments under any of the Plans,
and remit those withholdings to the appropriate taxing authorities. The Company shall also be responsible for the preparation of all information reports, returns, receipts and other communications required by Chapter 61 of the Code to be filed with,
or distributed to, any person or governmental entity. 
  
 (b)    Following a
Change in Control.    Following a Change in Control, the Trustee shall assume the Company’s responsibilities under Section 5.03(a) with respect to benefit payments under any of the Plans, and shall reduce such benefit
payments by the amount of any such required withholding. The Trustee shall remit the net benefit payments to the Participants and shall pay the required tax withheld to the Company, which shall continue to be responsible for the preparation and
 
 

 14 

 
filing of all items required by Chapter 61 of the Code, as enumerated in Section 5.03(a). 
  
 (c)    The Company and the Trustee shall cooperate with each other in providing any information reasonably necessary to enable the other to carry out any of its responsibilities
under this Section 5.03. 
  
 Section 5.04    Company’s Continuing
Obligations.    Notwithstanding any provisions of this Trust Agreement to the contrary, the Company shall remain obligated to pay the Benefits under the Plan. To the extent the amount in the Trust Fund is not sufficient to
pay any Benefits when due, the Company shall pay such deficiency directly to the person entitled thereto. Nothing in this Trust Agreement shall relieve the Company of its liabilities to pay the Benefits except to the extent such liabilities are met
by the application of Trust Fund assets. 
  
 Section 5.05    Company’s
Income.    The Company agrees that all income, deductions and credits of the Trust Fund belong to it as owner for income tax purposes and will be included on the Company’s income tax returns to the extent required by
applicable law. 
  
 ARTICLE VI 
  
 CONCERNING THE TRUSTEE 
  
 Section 6.01    Notices to the Trustee.    Except as provided in Section 5.02, the Trustee may rely on the authenticity, truth and accuracy of: 
  
 (a)    any notice, direction, certification, approval or other writing of the Company, if evidenced by
an instrument signed in the name of the Company by its Chairman, President, any Vice President, Secretary, Assistant Secretary or Treasurer, and believed in good faith by it to be genuine; 
  
 (b)    any notice, direction, certification, approval or other written, oral or other transmitted form of instruction received by the
Trustee and believed by it in good faith to be genuine and to be sent by or on behalf of the Committee; or 
  
 (c)    any copy of a resolution of the Board of Directors of the Company, if certified by the Secretary or an Assistant Secretary of the Company under its corporate seal. 
  
 (d)    The Company shall furnish the Trustee from time to time with a list of the names and signatures
of the officers or other persons authorized to act under this Section 6.01(a) and (b), or in any other manner authorized to notify or instruct the Trustee pursuant to the provisions of this Agreement. Any such list shall be certified by the
Secretary or an Assistant Secretary of the Company, and may be relied upon by the Trustee until it receives a revised list. 
 

 15 

  
 Section 6.02    Expenses of the Trust
Fund.    The Trustee shall pay out of the Trust Fund: (a) all brokerage fees and transfer tax expenses and other expenses incurred in connection with the sale or purchase of investments; (b) all real and personal property
taxes, income taxes and other taxes of any kind at any time levied or assessed under any present or future law upon, or with respect to, the Trust Fund or any property included in the Trust Fund; (c) the Trustee’s compensation and expenses as
provided in Section 6.03, unless promptly paid by the Company; and (d) unless promptly paid by the Company, all other reasonable expenses of administering the Trust. Notwithstanding the foregoing, the Trustee shall, at Company expense and direction,
contest the validity of any taxes in any manner deemed appropriate by the Company or its counsel, but only if it has received an indemnity bond or other security satisfactory to it to pay any expenses of such contest; provided, however, that the
Trustee shall have no obligation to contest if it receives an opinion of counsel of its choice to the effect that there is no basis in law or fact for such contest. Alternatively, the Company may itself contest the validity of any such taxes.

  
 Section 6.03    Compensation of the Trustee.    The Company will
pay to the Trustee compensation for its services from time to time in accordance with its schedule of fees then in effect for trusts of similar nature, and will reimburse the Trustee for all reasonable expenses (including attorneys’ fees)
incurred by the Trustee in the administration of the Trust. 
  
 Section 6.04    Protection of
the Trustee. 
  
 (a)    The Company agrees to indemnify and hold harmless the
Trustee from and against any and all damages, losses, claims or expenses as incurred (including expenses of investigation and fees and disbursements of counsel to the Trustee and any taxes imposed on the Trust Fund or income of the Trust) arising
out of or in connection with the performance by the Trustee of its duties hereunder, except to the extent that any such damages, losses, claims or expenses result from the negligence or willful misconduct of the Trustee, its officers, employees or
agents. 
  
 (b)    The Trustee shall incur no liability to any person in
discharging its duties hereunder for any action taken or omitted in good faith in conformity with the terms of this Trust Agreement. Each direction, notice, request or approval provided (whether or not certified to the Trustee in writing) by the
Company, the Pension Board, or the Committee, shall constitute a certification by the Company to the Trustee that such direction is in conformity with the terms of the Plan and applicable law. Under no circumstances shall the Trustee incur liability
to any person for any indirect, consequential or special damages (including, without limitation, lost profits) of any form, whether or not foreseeable and regardless of the form of the action in which such a claim may be brought, with respect to the
Trust or its role as Trustee, except as otherwise required by ERISA or New York State law. 
 

 16 

  
 Section 6.05    Duties of the
Trustee.    The Trustee will be under no obligation to perform any duties whatsoever, except such duties as are specifically set forth as such in this Trust Agreement, and no implied covenant or obligation will be read into
this Trust Agreement against the Trustee. The Trustee will not be compelled to take any action toward the execution or enforcement of the Trust or to prosecute or defend any suit in respect thereof, unless indemnified to its satisfaction against
loss, costs, liability and expense or there are sufficient assets in the Trust Fund to provide such indemnity; and the Trustee will be under no liability or obligation to anyone with respect to any failure on the part of the Company to perform any
of its obligations under the Plans. Nothing in this Trust Agreement should be construed as requiring the Trustee to make any payment in excess of amounts held in the Trust Fund at the time of such payment. 
  
 Section 6.06    Settlement of Accounts of the Trustee.    The Trustee shall keep or cause
to be kept accurate and detailed records of all investments, receipts, disbursements and other transactions hereunder. Such records shall be open to inspection and audit at all reasonable times during normal business hours by any person designated
by the Company. At least annually, or upon such more frequent intervals, but not more frequent than monthly, as the Company may direct, the Trustee shall file with the Company a written statement, listing the investments of the Trust Fund and any
uninvested cash balance thereof, and setting forth all receipts, disbursements, payments and other transactions respecting the Trust Fund not included in any such previous statement. Any statement, when approved by the Company, will be binding and
conclusive on the Company; and the Trustee will thereby be released and discharged from any liability or accountability to the Company with respect to all matters set forth therein. Omission by the Company to object in writing to any specific items
in any such statement, which shall be deemed an account stated, within ninety (90) days after its delivery will constitute approval of the account by the Company. No other accounts or reports shall be required to be given to the Company, except as
stated herein or except as otherwise agreed to in writing by the Trustee. Except as provided above, the Trustee shall not be required to file an accounting, judicial or otherwise. 
  
 Section 6.07    Right to Judicial Settlement.    Nothing contained in this Trust Agreement shall be construed as depriving
the Trustee of the right to have a judicial settlement of its accounts, and upon any proceeding for a judicial settlement of the Trustee’s accounts or for instructions the only necessary party thereto in addition to the Trustee shall be the
Company. 
  
 Section 6.08    Resignation or Removal of the
Trustee.    The Trustee may at any time resign upon sixty (60) days notice in writing to the Company (which sixty (60) days notice requirement may be waived by agreement in writing of the Company). Prior to a Change in
Control, or a Potential Change in Control, the Trustee may be removed by the Company upon sixty (60) days notice in writing to the Trustee (which sixty (60) days notice requirement may be waived by agreement in writing of the Trustee). 

 17 

  
 Section 6.09    Appointment of Successor
Trustee.    In the event of the resignation or removal of the Trustee, or in any other event in which the Trustee ceases to act, a successor trustee may be appointed by the Company by instrument in writing delivered to and
accepted by the successor trustee. Notice of such appointment will be given by the Company to the retiring trustee, and the successor trustee will deliver to the retiring trustee an instrument in writing accepting such appointment. If no appointment
of a successor trustee is made within a reasonable time after such a resignation, removal or other event, any court of competent jurisdiction may appoint a successor trustee. 
  
 In the event of such resignation, removal or other event, the retiring trustee or its successors and assigns shall file with the Company a final statement to which the
provisions of Section 6.06 shall apply. 
  
 In the event of the appointment of a successor trustee, such successor
trustee will succeed to all the right, title and estate of, and will be, the Trustee; and the retiring trustee will after the settlement of its final account as provided for in Section 6.06, and the receipt of any compensation or expenses due it,
deliver the Trust Fund to the successor trustee together with all such instruments of transfer, conveyance, assignment and further assurance as the successor trustee may reasonably require. The retiring trustee will retain a first lien upon the
Trust Fund to secure all amounts due the retiring trustee pursuant to the provisions of this Trust Agreement. The Company will provide the Trustee with a ratification and release upon such resignation, removal or other event. 

 
 Section 6.10    Merger or Consolidation of the Trustee.    Any corporation
continuing as the result of any merger or resulting from any consolidation to which merger or consolidation the Trustee is a party, or any corporation to which substantially all the business and assets of the Trustee may be transferred, will be
deemed automatically to be continuing as the Trustee. 
  
 ARTICLE VII 
  
 ENFORCEMENT 
  
 Section 7.01    Enforcement of Trust Agreement and Legal Proceedings.    The Company shall have the right to enforce any provision of this Trust Agreement in its own name. In any action
or proceeding affecting the Trust, the only necessary parties shall be the Company and the Trustee and, except as otherwise required by applicable law, no other person shall be entitled to any notice or service of process. Any judgment entered in
such an action or proceeding shall, to the maximum extent permitted by applicable law, be binding and conclusive on all persons having or claiming to have any interest in the Trust. 
 

 18 

  
 ARTICLE VIII 
  
 AMENDMENT, REVOCATION AND TERMINATION 
  
 Section 8.01    Amendment.    The Company may from time to time prior to the occurrence of a Change in Control or a Potential
Change in Control with respect to which the allocation procedures of Section 4.02(b) are invoked, with the Trustee’s consent, amend in writing, in whole or in part, any or all of the provisions of this Trust Agreement without the consent of any
Participant or any other person; provided, however, that no such amendment shall increase the duties or obligations or change the compensation of the Trustee without the Trustee’s written consent. This Trust Agreement may not be amended
following a Change in Control nor may it be amended following a Potential Change in Control with respect to which the allocation procedures of Section 4.02(b) are invoked unless the resulting allocations are revoked pursuant to Section 4.03.

  
 Section 8.02    Irrevocability.    Subject to section 10.08, the
Trust shall be irrevocable and, except as otherwise provided in Section 8.03 and Article IX, shall be held for the exclusive purpose of providing the Benefits to Participants and their beneficiaries and defraying expenses of the Trust in accordance
with the provisions of this Trust Agreement. 
  
 Section
8.03    Termination.    The Trust shall terminate if the Committee provides the Trustee with a written statement to the effect that the Benefits in respect of all Participants have been paid in full. As
soon as practicable following such event, the Trustee shall settle its final accounts in accordance with Section 6.06 and, after receipt of any unpaid fees and expenses, shall distribute the balance of the Trust Fund to the Company, provided,
however, that after a Change in Control, such Committee statement shall be accompanied by written approvals of the Participants then listed on the most recent payment schedule provided to the Trustee pursuant to Section 4.02. In the event any such
Participant does not approve, Section 5.01(b) shall apply. 
  
 ARTICLE IX 
  
 CLAIMS OF COMPANY’S CREDITORS 
  
 Section 9.01    Insolvency.    As used in this Article IX, the Company shall be deemed to
be “Insolvent” if (i) the Company is unable to pay its debts generally as they come due, or (ii) the Company is subject to a proceeding as a debtor under the federal Bankruptcy Code (or any successor federal statute). In the event the
Company shall be deemed Insolvent, the assets of the Trust shall be subject to claims of creditors of the Company (hereinafter the “Bankruptcy Creditors”). 
  
 Section 9.02    Discontinuance of Benefits.    If at any time (i) the Company or a person claiming to be a creditor of the
Company alleges in 
 

 19 

 
writing to the Trustee that the Company has become Insolvent, or (ii) the Trustee is served with any order, process or paper from a court of competent jurisdiction to the effect that the Company
is Insolvent, the Trustee shall give notice thereof to the Company, shall discontinue Benefit payments under this Trust Agreement, shall hold the Trust assets for the benefit of the Company’s Bankruptcy Creditors, and shall resume payment of
Benefits under this Trust Agreement in accordance with Article V only upon: (a) in the case of clause (ii) above, the receipt of an order of a court of competent jurisdiction authorizing or requiring such payment, and (b) in the case of clause (i)
above, receipt of written notice from the Company that the Company is not Insolvent. The Board of Directors of the Company and the Company’s Treasurer shall be obligated to give the Trustee prompt written notice if the Company becomes
Insolvent, with the same consequences as provided in the preceding sentence. If payment of Benefits has been discontinued pursuant to clause (i) of the second preceding sentence, the Board of Directors of the Company, and the Company’s
Treasurer, shall be obligated to give the Trustee prompt written notice in the event the Company is not Insolvent, and such notice from such Board of Directors or Treasurer shall be treated as notice from the Company for purposes of the second
preceding sentence. The Trustee shall not be liable to anyone in the event Benefit payments are discontinued pursuant to this Section 9.02. 
  
 If the Trustee discontinues payment of Benefits pursuant to this Section 9.02 and subsequently resumes such payment, to the extent the Trust Fund is sufficient for such purpose, the first payment to a
Participant following such discontinuance shall include an aggregate amount equal to the payments which would have been made to such Participant under this Trust Agreement but for this Section 9.02, as shall be determined by the Committee or if
Section 5.01(b) applies, by the Trustee. No interest shall be due or payable with respect to any such payments in arrears. 
  
 ARTICLE X 
  
 MISCELLANEOUS PROVISIONS 
  
 Section 10.01    Successors.    This Trust Agreement shall be binding upon and inure to the
benefit of the Company and the Trustee and their respective successors and assigns. 
  
 Section
10.02    Nonalienation.    Except insofar as applicable law may otherwise require: 
  
 (a)    no amount payable to or in respect of any Participant at any time under the Trust shall be subject in any manner to alienation by anticipation, sale, transfer, assignment,
bankruptcy, pledge, attachment, charge or encumbrance of any kind, and any attempt to so alienate, sell, transfer, assign, pledge, attach, charge or otherwise encumber any such amount, whether presently or thereafter payable, shall be void; and

 

 20 

  
 (b)    the Trust Fund shall in no manner be
liable for or subject to the debts or liabilities of any Participant. 
  
 Section
10.03    Communications. 
  
 (a)    Communications to
the Company shall be addressed to the Company at P.O. Box 14662, Reading, PA 19612-4662, Attn. Treasurer, Carpenter Technology Corporation, provided, however, that upon the Company’s written request, such communications shall be sent to such
other address as the Company may specify. 
  
 (b)    Communications to the
Trustee shall be addressed to its Global Investor Services Division, 4-Chase Metrotech Center, 18th Floor, Brooklyn, New York 11245; provided, however, that upon the Trustee’s written request, such communications shall be sent to such other
address as the Trustee may specify. 
  
 (c)    No communication shall be binding
on the Trustee until it is received by the Trustee, and no communication shall be binding on the Company until it is received by the Company. 
  
 Section 10.04    Headings.    Titles to the Sections of this Trust Agreement are included for convenience only and shall not control the meaning or
interpretation of any provision of this Trust Agreement. 
  
 Section 10.05    Third
Parties.    A third party dealing with the Trustee shall not be required to make inquiry as to the authority of the Trustee to take any action nor be under any obligation to follow the proper application by the Trustee of the
proceeds of sale of any property sold by the Trustee or to inquire into the validity or propriety of any act of the Trustee. 
  
 Section 10.06    Governing Law.    This Trust Agreement and the Trust established hereunder shall be governed by and construed, enforced, and administered in accordance with the laws of
the State of New York. The United States District Court for the Southern District of New York shall have the sole and exclusive jurisdiction over any lawsuit or other judicial proceeding relating to or arising from this Agreement. If that court
lacks federal subject matter jurisdiction, the Supreme Court of the State of New York, New York County shall have sole and exclusive jurisdiction. Either of these courts shall have proper venue for any such lawsuit or judicial proceeding, and the
parties waive any objection to venue or their convenience as a forum. The parties agree to submit to the jurisdiction of any of the courts specified and to accept service of process to vest personal jurisdiction over them in any of these courts. The
parties further hereby knowingly, voluntarily and intentionally waive, to the fullest extent permitted by law, any right to a trial by jury with respect to any such lawsuit or judicial proceeding arising or relating to this Agreement or the
transactions contemplated hereby. 
 

 21 

  
 Section
10.07    Counterparts.    This Trust Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original although the others shall not be produced. 

 
 Section 10.8    IRS Ruling—Funded Status.    The Company intends to apply
to the Internal Revenue Service for a ruling to the effect that this Trust is a grantor trust within the meaning of section 671, et. seq. of the Code and that contributions hereunder will not be treated as taxable income to Plan Participants until
distributed to those Participants. If the Company is unable to obtain a satisfactory ruling to that effect, or if any Plan is finally determined to be funded within the meaning of Title I of ERISA because of the existence of this Trust and if a
Change in Control has not then occurred, the Company shall have the right, notwithstanding the provisions of Article VIII, to further amend or revoke the Trust. If the Trust is revoked, its assets, after deducting any unpaid fees or expenses due the
Trustee, shall be returned to the Company. 
  
 IN WITNESS WHEREOF, this Trust Agreement has been duly executed by the
parties hereto as of the day and year first above written. 
  
 
	 Attest:
 	  	 CARPENTER TECHNOLOGY CORPORATION 
 
	 John R. Welty
 	  	  	  	  
	 Secretary
 	  	  	  	  
	  	  	  	  	  
	  	  	 By:
 	  	 JOHN A. SCHULER
 
	 	 	 	
	

	  	  	  	  	 Treasurer
 
	  	  	  	  	  
	  	  	  	  	  
	 Attest:
 	  	 THE CHASE MANHATTAN BANK 
 
	 Robert Signorino
 	  	  	  	  
	  	  	  	  	  
	  	  	 By:
 	  	 VITO MILILLO
 
	 	 	 	
	

 
  
 

 22 

  
 STATE OF          Pennsylvania) 

                                      
            ) 
 COUNTY OF
     Berks           ) 
  
 Personally
appeared John A. Schuler, Treasurer, of Carpenter Technology Corporation, signer and sealer of the foregoing instrument, and acknowledged the same to be his free act and deed as such and the free act and deed of said company, before me May 1, 1997.

  
  
 
	 ANITA M. KELTZ
 
	

	 Notary Public
 

 
  
  
  
 STATE
OF          New York ) 
                                       
         )    ss.: 
 COUNTY OF      Kings       
) 
  
 Personally appeared Vito Milillo, Vice President, of the Chase Manhattan Bank, signer and sealer of the
foregoing instrument, and acknowledged the same to be his free act and deed as such and the free act and deed of said company, before me May 20, 1997. 
  
  
 
	 JULIA R. SCALIA
 
	

	 Notary Public
 

 
 

 23 

  
 EXHIBIT “A” 
  

	1.
	 
	Carpenter Technology Corporation Deferred Compensation Plan For Non-Management Directors effective January 1, 1995, subject to any approved amendments.

 

  

	2.
	 
	Carpenter Technology Corporation Director Retirement Plan adopted June 9, 1983, effective August 1, 1981, subject to any approved amendments. 

 

 24 

  
 EXHIBIT “B” 
  
 FORM OF NOTICE CONCERNING EARLY TAXATION 
  
 I, the undersigned Participant (Beneficiary) under the Carpenter Technology Corporation Non-Qualified Benefits Trust for Directors hereby notify The Chase Manhattan Bank, as Trustee, that pursuant to Section 5.02(a) thereof, the
undersigned will recognize income for federal income tax purposes due to funds held in said Trust and request payment of all funds held in my account. I do hereby certify the above to be a true statement and I hereby furnish the following
independent verification of the reasons why I will recognize income for federal income tax purposes: 
  
 [List below
the type of independent verification and enclose a copy of such verification.] 
 

 25

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