Document:

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                                                                    Exhibit 10 C
              MANAGEMENT AND OFFICERS CAPITAL APPRECIATION PLAN,
                        AN INCENTIVE STOCK OPTION PLAN
                             Adopted May 12, 1977
                       (As last amended April 26, 2001)

1.  Purpose.

    The purposes of this Plan are to attract, retain and motivate key employees
of Carpenter Technology Corporation and its wholly owned subsidiaries ("the
Corporation"), 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 Corporation's success and to provide a greater community of
interest between such employees and the Corporation's stockholders.

2.  Administration.

    The Board of Directors of Carpenter Technology Corporation ("the Board")
shall be responsible for the operation of the Plan. It shall be authorized,
subject to the provisions of the Plan, from time to time to establish such rules
and regulations and to appoint such agents as it deems appropriate for the
proper administration of the Plan, and to make such determinations under, and
such interpretations of, and to take such steps in connection with, the Plan or
the options or stock appreciation rights granted hereunder as it deems necessary
or advisable. Any questions of interpretation as determined by the Board shall
be final and binding upon all persons. The Board may delegate these powers to
the Compensation and Stock Option Committee of the Board, consisting of at least
three Directors not participating in the Plan.

3.  Participants.

    Participants in the Plan will consist of such officers or key employees of
the Corporation 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 options and rights granted hereunder.

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4.  Types of Benefits.

    Benefits under the Plan may be granted in (a) non-qualified stock options
("options" or individually an "option") which are intended to be nonstatutory
options not qualifying under Section 422 or any other section of the Internal
Revenue Code, and (b) stock appreciation rights, each as described below.

5.  Shares Reserved Under the Plan.

    (a)  Subject to the provisions of Section 11, the maximum aggregate number
of shares which may be made available for options hereunder is 400,000 shares of
common stock of Carpenter Technology Corporation and no more than 40,000 shares
of said 400,000 shares shall be optioned to any one individual. The shares
involved in the unexercised portion of any terminated or expired option or stock
appreciation right under the Plan may again be subject to options under the
Plan. Such shares may be either authorized and unissued shares, or issued shares
reacquired by the Corporation.

6.  Options.

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

    (a)  Each option granted under this Plan shall become exercisable by the
optionee only after the optionee has completed one year of employment
immediately following the date the option is granted, as determined by the Board
(the "date of grant"), and shall expire ten years from the date of grant.
Exercise of any or all prior existing options shall not be required.

    (b)  The option price per share of an option shall be determined by the
Board but shall not be less than the fair market value of Carpenter Technology
Corporation's stock on the date of grant. For the purpose of this Plan, the term
"fair market value" shall mean the closing price of Carpenter Technology
Corporation common stock on the New York Stock Exchange on the date in question,
or, in the absence of a closing price on such date, then the closing price on
the last trading day preceding the date of grant, as reflected on the
consolidated tape of New York Stock Exchange issues.

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     (c)  No option under this Plan may be transferable by the optionee except
by will or the laws of descent and distribution. In the event of the death of
the optionee more than one year after the date of grant and not more than three
months after the termination of the optionee's employment by the Corporation,
the option may be transferred to the optionee's personal representative, heirs
or legatees ("transferee") and may be exercised by the transferee before the
earlier of (i) the expiration of one year from the date of the death of the
optionee or (ii) the expiration of 10 years from the date of grant. In the event
of the retirement of an optionee, an option may be exercised prior to its
expiration during the five year period beginning with the date of retirement;
provided, however, that in the event of a retiree's death during such five year
period, unexercised options may be exercised by the transferee before the
earlier of either items (i) or (ii) of this Section 6(c). In all other cases of
termination of employment of an optionee, the option, if otherwise exercisable
by the optionee at the time of such termination, may be exercised within three
months after such termination.

     Notwithstanding anything in the Plan to the contrary, in the event an
optionee's employment with the Corporation is terminated for "cause", the Board
(or if the Board has delegated its authority, the Compensation and Stock Option
Committee) may, in its sole discretion, cancel each unexercised option awarded
to such terminated optionee effective upon the termination. For purposes of this
Section, a termination for "cause" shall mean termination of an optionee's
employment with the Corporation which results from either (a) the optionee
committing an Intolerable Offense (as defined in the Corporation's Personnel
Practices and Policies as in effect on the date of termination) or (b) the
operation of the Corporation's Corrective Performance System (as set forth in
the Corporation's Personnel Procedures and Policies as in effect on the date of
termination).

     (d)  Each option shall be exercisable for the full amount or any part
thereof, including a partial exercise from time to time. All shares purchased
under options shall be paid for in full at the time of purchase. Exercised
options may be paid for with cash or stock of Carpenter Technology Corporation
which has been held by the optionee for a period of at least six months, the
value of which shall be the fair market value on the date of exercise of the
options, as determined in Section 6(b) of the Plan.

7.   Stock Appreciation Rights.

     (a)  Stock appreciation rights may be granted from time to time by the
Board upon such terms and conditions as it may prescribe.  The Board shall grant
one stock appreciation right for every option share granted hereunder prior to
August 9, 1990.  The Board may in its discretion grant no more than one stock
appreciation right for every option share granted hereunder on or subsequent to
August 9, 1990.  A stock appreciation right shall be exercisable only with
exercise and surrender of the related option or portion thereof and shall
entitle the optionee to receive the excess of the fair market value of the
shares of

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the common stock for which the right is exercised on the date of such exercise
over the option price under the related option.  Such excess is hereafter called
"the spread".

    (b)  A stock appreciation right shall be exercisable only to the extent and
at the same time that the related option is exercised.

    (c)  Upon the exercise of a stock appreciation right, the Corporation shall
give to the optionee an amount equivalent to the spread (less any applicable
withholding taxes) in cash, or in shares of Carpenter Technology Corporation's
common stock, or a combination of both, as the Board shall determine. Such
determination may be made at the time of the granting of the stock appreciation
right. The shares may consist either in whole or in part of authorized and
unissued shares or issued shares reacquired by the Corporation. The payment of
the stock appreciation right spread in shares of common stock will
correspondingly reduce the number of shares reserved under Section 5. No
fractional shares of common 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.

    (d)  A stock appreciation right shall terminate and may no longer be
exercised upon the termination or expiration of the related option.

    (e)  Income attributable to the exercise of a stock appreciation right shall
not be included in the calculation of pension or other benefits payable at any
time by reason of the optionee's employment by the Corporation.

    (f)   No stock appreciation right shall be transferable by the optionee
except as provided in Section 6(c) of this Plan.

8.  Valuation Date.

    The options granted hereunder shall be valued for Federal income tax
purposes on the date said options are exercised and the optionee, by accepting
the option, agrees not to elect to value said options for tax purposes at any
other date, including, without limitation, the date of grant.

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9.   Adjustment Provisions.

     If Carpenter Technology Corporation shall at any time change the number of
issued shares of common stock without new consideration to the Corporation (such
as by stock dividends, stock splits or stock combinations), the total number of
shares reserved for issuance under this Plan and the number of shares covered by
each outstanding benefit shall be adjusted so that the aggregate consideration
payable to the Corporation and the value of each benefit shall not be changed.
In the event of a merger or consolidation of Carpenter Technology Corporation,
the Board shall make such adjustments with respect to options or take such other
action as it deems necessary or appropriate to equitably reflect such merger or
consolidation including, without limitation, the substitution of new options,
the termination of existing options or the acceleration of the right to
exercise. Appropriate adjustments shall be made by the Board in the terms of
stock appreciation rights to reflect the foregoing changes.

10.  Change in Control.

     (a)  Notwithstanding anything in this Plan to the contrary, in the event of
a Change in Control of the Corporation (i) each Option shall become immediately
exercisable and (ii) each stock appreciation right shall be fully exercisable
for the sixty-day period immediately following the Change in Control of the
Corporation using the Change in Control Price instead of the fair market value
to determine the amount payable upon the exercise of such stock appreciation
right. In addition, notwithstanding anything in this Plan to the contrary, if
the employment of an optionee or holder of a stock appreciation right is
terminated by the Corporation without "cause" as defined in Section 6(c), 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, during the two-year period
commencing on the date of the occurrence of a Change in Control of the
Corporation, then such employee shall be able to exercise his or her options and
stock appreciation rights 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 of the Corporation"
means:

            (1)  The acquisition by any individual, entity or group [within the
meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934,
as amended (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

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generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that, for purposes of this Section 10(b), the
following acquisitions shall not constitute a Change in Control of the
Corporation: (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
Carpenter Technology Corporation or any affiliated company or (iv) any
acquisition by any corporation pursuant to a transaction that complies with
Sections 10(b)(3)(A), 10(b)(3)(B) and 10(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 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

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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 this Plan, Change in Control Price shall mean the
higher of (i) the highest price paid per share of Corporation common stock in
any transaction constituting a Change in Control of the Corporation or (ii) the
highest fair market value per share of Carpenter Technology Corporation common
stock as reported in the Wall Street Journal at any time during the sixty-day
period preceding the Change in Control of the Corporation.

11.  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 (a)
increase the total amount of common stock which may be purchased under options
granted under the Plan or the maximum number of shares of common stock for which
options may be granted under the Plan to any one individual, except as
contemplated in Section 9, (b) permit options to be granted at less than fair
market value, (c) permit any person while a member of the committee contemplated
in Section 2 to be eligible to receive or hold an option or stock appreciation
right under the Plan or (d) change the manner of computing the spread upon the
exercise of a stock appreciation right.

12.  Effective Date of the Plan.

     The Plan shall become effective upon approval by the Board; provided,
however, that the Plan shall be submitted for ratification by the stockholders
at the Annual Meeting to be held on November 7, 1977, and if not ratified shall
be of no force and effect. All options and stock appreciation rights granted
prior to such Annual Meeting shall be granted subject to ratification of the
Plan by the stockholders of Carpenter Technology Corporation at such Meeting and
no option shall be exercisable before such ratification.

                                       7<PAGE>

                                                                    Exhibit 10 E

                       CARPENTER TECHNOLOGY CORPORATION
            DEFERRED COMPENSATION PLAN FOR NON-MANAGEMENT DIRECTORS
            -------------------------------------------------------

          This is the Carpenter Technology Corporation Deferred Compensation
Plan for Non-Management Directors, effective January 1, 1995, established by
Carpenter Technology Corporation and its subsidiaries expressly included herein
to provide its non-employee directors with an additional method of planning for
their retirement. The Plan is intended to be an unfunded plan maintained for the
purpose of providing deferred compensation to the non-employee directors of
Carpenter Technology Corporation.

                            ARTICLE I - DEFINITIONS
                            -----------------------

          The following words and phrases as used herein have the following
meanings unless the context plainly requires a different meaning:

          1.1  Account means the total amount credited to the bookkeeping
               -------
accounts in which a Participant's Contributions are maintained, including
earnings thereon.

          1.2  Beneficiary means the person that the Participant designates to
               -----------
receive any unpaid portion of the Participant's Account should the Participant's
death occur before the Participant receives the entire balance to the credit of
such Participant's Account. If the Participant does not designate a beneficiary,
his Beneficiary shall be his spouse if he is married at the time of his death,
or his estate if he is unmarried at the time of his death.

          1.3  Board of Directors means the board of directors of Carpenter
               ------------------
Technology Corporation.

          1.4  Code means the Internal Revenue Code of 1986, as amended.
               ----

          1.5  Compensation means all amounts that a Director receives in
               ------------
payment for serving on the Board of Directors.  Notwithstanding the preceding
sentence, Compensation shall not include amounts identified by the Corporation
as expense allowances or reimbursements.

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          1.6  Contribution means an amount deferred under the Plan pursuant to
               ------------
a Participant's election under Article IV and credited to a Participant's
Account. No money or other assets will actually be contributed to such Accounts.

          1.7  Corporation means the Carpenter Technology Corporation.
               -----------

          1.8  Director means an individual who serves on the Board of Directors
               --------
or on the board of directors of any subsidiary that the Board of Directors of
Carpenter Technology Corporation designates to participate in the Plan. A list
of the subsidiaries currently designated to participate in the Plan is attached
hereto as Appendix A.

          1.9  Effective Date means January 1, 1995.
               --------------

          1.10 Five-Year Medium Term Note Borrowing Rate means the Corporation's
               -----------------------------------------
Five-Year Medium Term Note Borrowing Rate, as provided by one of the
Corporation's investment bankers for any such medium term note that would have
been issued on November 15 (or the next business day thereafter if November 15
is not a business day) of each Plan Year.

          1.11 Participant means a Director who elects to participate in the
               -----------
Plan pursuant to Section 2.2.

          1.12 Pension Board means the Pension Board appointed pursuant to the
               -------------
General Retirement Plan for Employees of Carpenter Technology Corporation, as
constituted from time to time.

          1.13 Plan means the Carpenter Technology Corporation Deferred
               ----
Compensation Plan for Non-Management Directors, as may be amended from time to
time.

          1.14 Plan Administrator means the Pension Board.
               ------------------

          1.15 Plan Year means the 12-month period beginning January 1 and
               ---------
ending December 31.
                          ARTICLE II - PARTICIPATION
                          --------------------------

          2.1  Eligibility to Participate. All Directors who are neither
               --------------------------
current nor past employees of the Corporation or any of its subsidiaries are
eligible to participate in the Plan.

          2.2  Participation. Any Director who elects to participate in the
               -------------
Plan shall become a Participant in the Plan immediately upon enrolling as a
Participant by the method required by the Plan Administrator. An individual
shall remain a Participant under the Plan until all amounts credited to the
Participant's Account have been distributed to the Participant or the
Participant's Beneficiary.

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                             ARTICLE III - VESTING
                             ---------------------

          Participants are always fully vested in all amounts credited to their
Accounts.

                          ARTICLE IV - CONTRIBUTIONS
                          --------------------------

          4.1  Eligibility to Receive Contributions. Subject to Section 5.4.2,
               ------------------------------------
a Participant may receive Contributions in each Plan Year that the Participant
is a Director and is not an employee of the Corporation.

          4.2  Contributions. A Participant may elect to defer up to 100% of
               -------------
the Participant's Compensation and to have the Corporation make a Contribution
of that amount to the Participant's Account under the Plan.

          4.3  Elections.
               ---------

               4.3.1     Frequency and Timing of Elections. Elections may be
                         ---------------------------------
made once each Plan Year and they may not be modified during the Plan Year. The
Participant must make an election by December 15 of a Plan Year for it to take
effect for the next Plan Year. However, for the initial Plan Year beginning
January 1, 1995, elections must be made by January 31, 1995, and they will be
effective as of February 1, 1995.

               4.3.2     Duration of Elections. Elections to receive
                         ---------------------
Contributions under this Article IV expire at the end of each Plan Year for
which the election was made.

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               4.3.3    Restriction on Elections. Elections to receive
                        ------------------------
Contributions may be in the form of a whole percentage or in $1 increments.

          4.4  Earnings. All amounts credited to a Participant's Account shall
               --------
be credited with earnings at a rate equal to the Five-Year Medium Term Note
Borrowing Rate, established as of November 15 (or the next business day
thereafter if November 15 is not a business day) of the prior Plan Year. For the
first Plan Year, the rate is 8.25%. The Pension Board shall communicate to all
Directors the Five-Year Medium Term Note Borrowing Rate for the next Plan Year
no later than November 30 of the current Plan Year. Earnings on Contributions
shall begin to accrue on the date that such Contributions would have been paid
to the Participant but for an election to defer under this Article IV. Earnings
shall be compounded semi-annually on each January 1 and July 1. In addition, any
distribution not made on either January 1 or July 1 shall have earnings
compounded as of the date of distribution.

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                           ARTICLE V - DISTRIBUTIONS
                           -------------------------

          5.1  Payment of Distributions. All distributions shall, at the
               ------------------------
Company's discretion, be made directly out of the Corporation's general assets
or from the Carpenter Technology Corporation Non-Qualified Benefits Trust for
Directors.

          5.2  Form of Distributions. A Participant may receive distributions
               ---------------------
in one of the following manners, which the Participant shall elect on the
initial enrollment form.

               5.2.1  A lump sum distribution of the Participant's entire
Account;

               5.2.2  Ten annual installments, with the distribution each year
equal to the product resulting from multiplying the then current Account balance
by a fraction. The numerator of the fraction is always one, and the denominator
of the fraction is ten for the first distribution and is reduced by one for each
subsequent distribution;

               5.2.3  Fifteen annual installments, with the distribution each
year equal to the product resulting from multiplying the then current Account
balance by a fraction. The numerator of the fraction is always one, and the
denominator of the fraction is fifteen for the first distribution and is reduced
by one for each subsequent distribution; or

               5.2.4  On a schedule that is the same as that used for payments
made to the Participant under the Carpenter Technology Corporation Director
Retirement Plan.

          5.3  Timing of Distributions. Participants shall elect on their
               -----------------------
initial enrollment forms when distributions of their Accounts will begin, which
shall either be a specific date or event. At any point prior to a year in which
a distribution of any or all of a Participant's Account is scheduled for
distribution pursuant to this Article V, the Participant shall have the option
to further defer all or part of the scheduled distribution to a later year. A
scheduled distribution or portion thereof may, however, be further deferred only
once.

          5.4  Accelerated Distributions. Subject to the following forfeiture
               -------------------------
and suspension provisions, a Participant may elect to receive a distribution of
all or a portion of his Account prior to the date or dates originally elected
under Section 5.3 as long as such distribution is at least $5,000.

               5.4.1     Forfeiture of Earnings. A Participant shall forfeit any
                         ----------------------
earnings attributable to the amount distributed pursuant to Section 5.4 that
accrued

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during the six-month period ending on the date of the distribution. The amount
of forfeited earnings shall be calculated using the highest interest rate that
was in effect during the six-month period. If, however, the actual earnings
credited to a Participant's Account are less than the amount determined in the
immediately preceding sentence, no amount beyond the actual earnings shall be
forfeited. Any amounts forfeited under this Section shall not be distributed or
allocated to any other Account in the Plan and shall be forfeited to the
Corporation.

               5.4.2     Suspension of Participation. If a Participant elects to
                         ---------------------------
accelerate a distribution under Section 5.4, he will not be entitled to receive
any Contributions under the Plan for the Plan Year immediately following the
Plan Year in which the Participant elected to accelerate a distribution. Any
election made to receive Contributions for a Plan Year in which participation is
suspended shall be disregarded.

          5.5  Termination of Service. Upon termination of service as a
               ----------------------
Director, a Participant, or the Beneficiary if the termination of service is
caused by the Participant's death, shall have the following options with respect
to the distribution of the Participant's Account:

               5.5.1     Reaffirm Current Election. The Participant or
                         -------------------------
Beneficiary may elect to reaffirm the Participant's election under Section 5.3
that was in effect at the time of the Participant's termination; or

               5.5.2     Request a New Election. The Participant or Beneficiary
                         ----------------------
may elect a new distribution option available under Section 5.2, subject to the
Corporation's consent.

                        ARTICLE VI - PLAN ADMINISTRATION
                        --------------------------------

          6.1  General. The Plan shall be administered by the Pension Board,
               -------
which is the Plan Administrator.

          6.2  Responsibilities and Reports. The Plan Administrator may
               ----------------------------
pursuant to a written resolution allocate among one or more of its members
specific responsibilities under the Plan and the Plan Administrator may name
other persons to carry out such responsibilities. The Plan Administrator shall
be entitled to rely conclusively upon all tables, valuations, certificates,
opinions and reports that are furnished by any actuary, accountant, controller,
counsel, investment banker or other person who is employed or engaged for such
purposes.

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<PAGE>

          6.3  Governing Law. This Plan shall be governed by and construed in
               -------------
accordance with the laws of the Commonwealth of Pennsylvania, to the extent not
preempted by federal law.

                        ARTICLE VII - CLAIMS PROCEDURE
                        ------------------------------

          7.1  Plan Interpretation. The Human Resources Committee of the Board
               -------------------
of Directors shall have the authority and responsibility to interpret and
construe the Plan and to decide all questions arising thereunder, including
without limitation, questions of eligibility for participation, eligibility for
Contributions, the amount of Account balances, and the timing of the
distribution thereof, and shall have the authority to deviate from the literal
terms of the Plan to the extent it shall determine to be necessary or
appropriate to operate the Plan in compliance with the provisions of applicable
law. Notwithstanding the above, a member of the Human Resources Committee shall
not take any part in decisions regarding his participation in the Plan.

          7.2  Denial of Claim for Benefits. Any denial by the Human Resources
               ----------------------------
Committee of any claim for benefits under the Plan by a Participant or
Beneficiary shall be stated in writing by the Human Resources Committee and
delivered or mailed to the Participant or Beneficiary. The Human Resources
Committee shall furnish the claimant with notice of the decision not later than
90 days after receipt of the claim, unless special circumstances require an
extension of time for processing the claim. If such an extension of time for
processing is required, written notice of the extension shall be furnished to
the claimant prior to the termination of the initial 90 day period. In no event
shall such extension exceed a period of 90 days from the end of such initial
period. The extension notice shall indicate the special circumstances requiring
an extension of time and the date by which the Human Resources Committee expects
to render the final decision. The notice of the Human Resources Committee's
decision shall be written in a manner calculated to be understood by the
claimant and shall include (i) the specific reasons for the denial, including,
where appropriate, references to the Plan, (ii) any additional information
necessary to perfect the claim with an explanation of why the information is
necessary, and (iii) an explanation of the procedure for perfecting the claim.

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<PAGE>

          7.3  Appeal of Denial. The claimant shall have 60 days after receipt
               ----------------
of written notification of denial of his or her claim in which to file a written
appeal with the Human Resources Committee. As a part of any such appeal, the
claimant may submit issues and comments in writing and shall, on request, be
afforded an opportunity to review any documents pertinent to the perfection of
his or her claim. The Human Resources Committee shall render a written decision
on the claimant's appeal ordinarily within 60 days of receipt of notice thereof
but, in no case, later than 120 days.

                            ARTICLE VIII - FUNDING
                            ----------------------

          8.1  Funding. The Corporation shall not segregate or hold separately
               -------
from its general assets any amounts credited to the Accounts, and shall be under
no obligation whatsoever to fund in advance any amounts under the Plan,
including Contributions and earnings thereon.

          8.2  Insolvency. In the event that the Corporation becomes insolvent,
               ----------
all Participants and Beneficiaries shall be treated as general, unsecured
creditors of the Corporation with respect to any amounts credited to the
Accounts under the Plan.

                    ARTICLE IX - AMENDMENT AND TERMINATION
                    --------------------------------------

          9.1  Reservation of Rights. The Corporation reserves the right to
               ---------------------
amend or terminate the Plan at any time by action of the Board of Directors.
Notwithstanding the foregoing, no such amendment or termination shall reduce the
balance of any Participant's Account as of the date of such amendment or
termination.

          9.2  Funding upon Termination. Upon a complete termination of the
               ------------------------
Plan, the Corporation shall contribute to the Carpenter Technology Corporation
Non-Qualified Benefits Trust for Directors an amount equal to the aggregate of
all amounts credited to Participants' Accounts as of the date of such
termination. If the Carpenter Technology Corporation Non-Qualified Benefits
Trust for Directors does not exist at the time the Plan is terminated, the
Corporation shall create an irrevocable grantor trust to which it will
contribute such amounts. This newly created trust shall be designed to ensure
that Participants will not be subject to taxation on amounts contributed to and
held under the trust on their behalf before the amounts are distributed.

                                      -8-
<PAGE>

          9.3  Survival of Accounts and Elections. Notwithstanding any
               ----------------------------------
termination of the Plan, the trustee of the trust to which amounts are
contributed under Section 9.2 shall maintain the Accounts for Participants in
the same manner as under this Plan and all elections for distributions under
Article V of the Plan shall survive the termination and remain in effect.

                           ARTICLE X - MISCELLANEOUS
                           -------------------------

          10.1 Limited Purpose of Plan. The establishment or existence of the
               -----------------------
Plan shall not confer upon any individual the right to be continued as a
Director.

          10.2 Non-alienation. No amounts payable under the Plan shall be
               --------------
subject in any manner to anticipation, assignment, or voluntary or involuntary
alienation.

          10.3 Facility of Payment. If the Plan Administrator, in its sole
               -------------------
discretion, deems a Participant or Beneficiary who is eligible to receive any
payment hereunder to be incompetent to receive the same by reason of age,
illness or any infirmity or incapacity of any kind, the Plan Administrator may
direct the Corporation to apply such payment directly for the benefit of such
person, or to make payment to any person selected by the Plan Administrator to
disburse the same for the benefit of the Participant or Beneficiary. Payments
made pursuant to this Section 10.3 shall operate as a discharge, to the extent
thereof, of all liabilities of the Corporation and the Plan Administrator to the
person for whose benefit the payments are made.

                                      -9-
<PAGE>

          To record the adoption of the Plan, the Carpenter Technology
Corporation has caused its authorized officers to affix its corporate name and
seal this ____ day of ___________, 1995.

[CORPORATE SEAL]                 CARPENTER TECHNOLOGY CORPORATION

Attest: ____________________     By:____________________________________________
             Secretary                           Robert W. Lodge
                                 Title:  Vice President - Human & Administrative
                                      ------------------------------------------
Services
--------

                                      -10-
<PAGE>

                       CARPENTER TECHNOLOGY CORPORATION
            DEFERRED COMPENSATION PLAN FOR NON-MANAGEMENT DIRECTORS
            -------------------------------------------------------
                                  APPENDIX A

                          PARTICIPATING SUBSIDIARIES
                          --------------------------

          None

As of January 1, 1995

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]