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Exhibit 10H  

 
 

Form for Change of Control Agreement    
  

Executive's
Name

Job Title

Company Address

City, State, Postal Code 

Dear            :

    Precision
Castparts Corp. (the "Company") considers it essential to the best interests of its stockholders to foster the continuous employment of key management personnel. In this
connection, the Board of Directors of the Company (the "Board") recognizes that, as is the case with many publicly held corporations, the possibility of a change in control of the Company may exist
and that such possibility, and the uncertainty and questions which it may raise among management, may result in the departure or distraction of management personnel to the detriment of the Company and
it stockholders. 

    The
Board has determined that appropriate steps should be taken to reinforce and encourage the continued attention and dedication of members of the Company's management, including
yourself, to their assigned duties without distraction in the face of potentially disturbing circumstances arising from the possibility of a change in control of the Company. 

    In
order to induce you to remain in the employ of the Company, the Company agrees that you shall receive the severance benefits set forth in this letter agreement (the "Agreement") in
the event your employment with the Company is terminated under the circumstances described below subsequent to a "change in control of the Company" (as defined in Section 2). 

    1.  Term of Agreement.  This Agreement shall commence on the date you agree to its terms (as indicated on
the signature page of this Agreement), and shall continue in effect through December 31, 2001; provided, however, that commencing on January 1, 2002, and each January 1
thereafter, the term of this Agreement shall automatically be extended for one additional year unless, not later than September 30 of the preceding year, the Company shall have given notice
that it does not wish to extend this Agreement (provided that no such notice may be given during the pendency of a potential change in control of the Company, as defined in Section 2); and
provided, further, that if a change in control of the Company, as defined in Section 2, shall have occurred during the original or extended term of this Agreement, this Agreement shall continue
in effect for a period of twenty-four (24) months beyond the month in which such change in control occurred. 

    2.  Change in Control; Potential Change in Control.  (i) No benefits shall be payable hereunder
unless there shall have been a change in control of the Company, as set forth below. For purposes of this Agreement, a "change in control of the Company" shall be deemed to have occurred if: 

    (a) any
"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 the Company, any
trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company 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 20% or more of the combined voting power of the Company's then outstanding securities; 

    (b) during
any period of two consecutive years, individuals who at the beginning of such period constituted a majority of the Board of Directors cease for any reason to
constitute a majority thereof unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the directors then still in office who were directors
at the beginning of such period; 

    (c) the stockholders of the Company approve a merger or consolidation of the Company with any other company or statutory plan of exchange involving the Company
("Merger"), other than (1) a Merger which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or
by being converted into voting securities of the surviving entity) more than 50% of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately
after the Merger or (2) a Merger effected to implement a recapitalization of the Company (or similar transaction) in which no "person" (as hereinabove defined) acquires more than 20% of the
combined voting power of the Company's then outstanding securities; or 

    (d) the
stockholders of the Company approve a plan of complete liquidation of the Company or an agreement for the sale, lease, exchange or other transfer (in one
transaction or a series of related transactions) or disposition by the Company of all or substantially all of the Company's assets. 

    Notwithstanding
the foregoing, unless otherwise determined by the Board, no change in control of the Company shall be deemed to have occurred if (i) you are a member of a
management group which first announces a proposal which constitutes a potential change in control (as defined in this Section 2) which proposal (including any modifications thereof) is
ultimately successful or (ii) you acquire an equity interest in the entity which ultimately acquires the Company pursuant to the transaction described in (i) of this paragraph. 

    (ii) For
purposes of this Agreement, 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 the 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 company 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 9.5% or more of the combined voting power of the Company's then outstanding securities, increases his beneficial ownership of such securities by 3 percentage points or more
over the percentage so owned by such person on the date hereof; or 

    (d) the
Board adopts a resolution to the effect that, for purposes of this Agreement, a potential change in control of the Company has occurred. 

    (iii) You
agree that, subject to the terms and conditions of this Agreement, in the event of a potential change in control of the Company, you will remain in the employ
of the Company until the earliest of (a) a date which is 270 days from the occurrence of such potential change in control of the Company, (b) the termination by you of your
employment by reason of Disability as defined in Section 3(ii), or (c) the date on which you first become entitled under this Agreement to receive the benefits provided in
Section 4(iii) below. 

    3.  Termination Following Change in Control.  (i)  General. If any of the events described in Section 2 constituting a change in control of
the Company shall have occurred, you shall be entitled
to the benefits provided in Section 4(iii) upon the subsequent termination of your employment within 24 months following the change in control, unless such termination is
(a) because of your death or Disability, (b) by the Company for Cause, or (c) by you other than for Good Reason. In the event your 

employment with the Company is terminated for any reason and subsequently a change in control of the Company occurs, you shall not be entitled to any benefits hereunder. 

    (ii) Disability. If, as a result of your incapacity due to physical or mental illness, you shall have been absent from
the full-time performance of your duties with the Company for six (6) consecutive months, and within thirty (30) days after written notice of termination is given you shall
not have returned to the full-time performance of your duties, your employment may be terminated for "Disability." 

    (iii) Cause. Termination by the Company of your employment for "Cause" shall mean termination (a) upon the
willful and continued failure by you to substantially perform your duties with the Company (other than any such failure resulting from your incapacity due to physical or mental illness or any such
actual or anticipated failure after the issuance of a Notice of Termination (as defined in Subsection 3(v)) by you for Good Reason (as defined in Subsection 3(iv)), after a written demand for
substantial performance is delivered to you by the Board, which demand specifically identifies the manner in which the Board believes that you have not substantially performed your duties, or
(b) the willful engaging by you in conduct which is demonstrably and materially injurious to the Company, monetarily or otherwise. For purposes of this Subsection, no act, or failure to act, on
your part shall be deemed "willful" unless done, or omitted to be done, by you not in good faith and without reasonable belief that your action or omission was in or not opposed to the best interest
of the Company. Notwithstanding the foregoing, you shall not be deemed to have been terminated for Cause unless and until there shall have been delivered to you a copy of a resolution duly adopted by
the affirmative vote of not less than three-quarters (3/4) of the entire membership of the Board at a meeting of the Board (after reasonable notice to you and an opportunity for you, together with
your counsel, to be heard before the Board), finding that in the good faith opinion of the Board you were guilty of conduct set forth above in this Subsection and specifying the particulars thereof in
detail. 

    (iv) Good Reason. You shall be entitled to terminate your employment for Good Reason. For purposes of this Agreement,
"Good Reason" shall mean, without your express written consent, the occurrence after a change in control of the Company of any of the following circumstances unless, in the case of paragraphs (a),
(e), (f), (g) or (h), such circumstances are fully corrected prior to the Date of Termination (as defined in Section 3(vi)) specified in the Notice of Termination (as defined in
Section 3(v)) given in respect thereof: 

    (a) the
assignment to you of any duties inconsistent (except in the nature of a promotion) with the position in the Company that you held immediately prior to the
change in control of the Company, or
an adverse alteration in the nature or status of your position or responsibilities or the conditions of your employment from those in effect immediately prior to such change in control; 

    (b) a
reduction by the Company in your annual base salary as in effect on the date hereof or as the same may be increased from time to time except for
across-the-board salary reductions similarly affecting all management personnel of the Company and all management personnel of any person in control of the Company; 

    (c) the
Company's requiring you to be based more than 50 miles from the Company's offices at which you are principally employed immediately prior to the date of the
change in control except for required travel on the Company's business to an extent substantially consistent with your present business travel obligations; 

    (d) the
failure by the Company to pay to you any portion of your current compensation or compensation under any deferred compensation program of the Company within
seven (7) days of the date such compensation is due; 

    (e) the
failure by the Company to continue in effect any material compensation or benefit plan in which you participate immediately prior to the change in control of
the Company, unless an equitable and reasonably comparable arrangement (embodied in an 

ongoing substitute or alternative plan) has been made with respect to such plan, or the failure by the Company to continue your participation therein (or in such substitute or alternative plan) on a
basis not materially less favorable, both in terms of the amount of benefits provided and the level of your participation relative to other participants, than existed at the time of the change in
control of the Company; 

    (f)  the
failure by the Company to continue to provide you with benefits substantially similar to those enjoyed by you under any of the Company's life insurance,
medical, dental, accident, or disability plans in which you were participating at the time of the change in control of the Company, the taking of any action by the Company which would directly or
indirectly materially reduce any of such benefits, or the failure by the Company to provide you with the number of paid vacation days to which you are entitled on the basis of your years of service
with the Company in accordance with the Company's normal vacation policy in effect at the time of the change in control of the Company; 

    (g) the
failure of the Company to obtain a satisfactory agreement from any successor to assume and agree to perform this Agreement, as contemplated in Section 5
hereof; or 

    (h) any
purported termination of your employment that is not effected pursuant to a Notice of Termination satisfying the requirements of Subsection (v) hereof
(and, if applicable, the requirements of Subsection (iii) hereof), which purported termination shall not be effective for purposes of this Agreement. 

    For
purposes of this Subsection (iv), a good faith determination of "Good Reason" made by you shall be conclusive. Your right to terminate your employment pursuant to this Subsection
shall not be affected by your incapacity due to physical or mental illness until your employment is terminated pursuant to Section 3(ii). Your continued employment shall not constitute consent
to, or a waiver of rights with respect to, any circumstance constituting Good Reason hereunder. 

    (v) Notice of Termination. Any purported termination of your employment by the Company or by you shall be communicated
by written Notice of Termination to the other party hereto in accordance with Section 6. "Notice of Termination" shall mean a notice that shall indicate the specific termination provision in
this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment under the provision so indicated. 

    (vi) Date of Termination, Etc. "Date of Termination" shall mean (a) if your employment is terminated for
Disability, thirty (30) days after Notice of Termination is given (provided that you shall not have returned to the full-time performance of your duties during such thirty
(30)-day period), and (b) if your employment is terminated pursuant to Subsection (iii) or (iv) hereof or for any other reason (other than Disability), the date
specified in the Notice of Termination (which, in the case of a termination for Cause shall not be less than thirty (30) days from the date such Notice of Termination is given, and in the case
of a termination for Good Reason shall not be less than fifteen (15) nor more than sixty (60) days from the date such Notice of Termination is given); provided, however, that if within
fifteen (15) days after any Notice of Termination is given, or, if later, prior to the Date of Termination (as determined without regard to this proviso), the party receiving such Notice of
Termination notifies the other party that a dispute exists concerning the termination, then the Date of Termination shall be the date on which the dispute is finally Determined, either by mutual
written agreement of the parties or by a binding arbitration award; and provided, further, that the Date of Termination shall be extended by a notice of dispute only if such notice is given in good
faith and the party giving such notice pursues the resolution of such dispute with reasonable diligence. Notwithstanding the pendency of any dispute, the Company will continue to pay you your full
compensation in effect when the notice giving rise to the dispute was given (including, but not limited to, base salary) and continue you as a participant in all compensation, benefit and insurance
plans in which you were participating when the notice giving rise to the dispute was given, until the dispute is finally resolved in accordance with this Subsection. Amounts paid under this Subsection
are in addition to all other amounts due under 

this Agreement, and shall not be offset against or reduce any other amounts due under this Agreement and shall not be reduced by any compensation earned by you as the result of employment by another
employer. 

    4.  Compensation Upon Termination or During Disability.  Following a change in control of the Company,
you shall be entitled to the following benefits during a period of disability, or upon termination of your employment, as the case may be, provided that such period or termination occurs during the
term of this Agreement: 

     (i) During
any period that you fail to perform your full-time duties with the Company as a result of incapacity due to physical or mental illness, you shall
continue to receive your base salary at the rate in effect at the commencement of any such period, together with all compensation payable to you under the Company's disability plan or program or other
similar plan during such period, until this Agreement is terminated pursuant to Section 3(ii) hereof. Thereafter, or in the event your employment shall be terminated by reason of your
death, your benefits shall be determined under the Company's retirement, insurance and other compensation programs then in effect in accordance with the terms of such programs. 

    (ii) If
your employment shall be terminated by the Company for Cause or by you other than for Good Reason, the Company shall pay you your full base salary through the
Date of Termination at the rate in effect at the time Notice of Termination is given, plus all other amounts to which you are entitled under any compensation plan of the Company at the time such
payments are due, and the Company shall have no further obligations to you under this Agreement. 

    (iii) If
your employment by the Company should be terminated by the Company other than for Cause or Disability or if you should terminate your employment for Good
Reason, you shall be entitled to the benefits provided below: 

    (a) the
Company shall pay to you your full base salary through the Date of Termination at the rate in effect at the time Notice of Termination is given plus all other
amounts to which you are entitled under any compensation plan of the Company, at the time such payments are due; 

    (b) in
lieu of any further salary payments to you for periods subsequent to the Date of Termination, the Company shall pay as severance pay to you, at the time
specified in Subsection (v), a lump sum severance payment (together with the payments provided in paragraphs (d), (e) and (f) below, the "Severance Payments") equal to 3 times the sum of
(1) the greater of (i) your annual rate of base salary in effect on the Date of Termination or (ii) your annual rate of base salary in effect immediately prior to the change in
control of the Company and (2) the greater of (i) the average of the last three annual bonuses (annualized in the case of any bonus paid with respect to a partial year) paid to you
preceding the Date of Termination or (ii) your target bonus under the Company's executive performance compensation plans in which you participate for the year in which such change in control
occurs; 

    (c) the
Company shall pay to you all legal fees and expenses incurred by you as a result of such termination, including all such fees and expenses, if any, incurred in
contesting or disputing any such termination or in seeking to obtain or enforce any right or benefit provided by this Agreement (other than any such fees or expenses incurred in connection with any
such claim which is determined to be frivolous) or in connection with any tax audit or proceeding to the extent attributable to the application of section 4999 of the Internal Revenue Code of
1986, as amended (the "Code"); and 

    (d) for
a thirty-six (36) month period after such termination, the Company shall arrange to provide you with life, accident and health insurance
benefits substantially similar to those which you were receiving immediately prior to the change in control of the Company. Notwithstanding the foregoing, the Company shall not provide any benefit
otherwise receivable by you pursuant to this paragraph (d) to the extent that a similar benefit is actually 

received by you from a subsequent employer during such thirty-six (36) month period, and any such benefit actually received by you shall be reported to the Company; 

    (e) in
addition to the retirement benefits to which you are entitled under the Company Pension Plan and any supplemental or excess benefit pension plan maintained by
the Company or any of its subsidiaries (collectively, the "Plans"), the Company shall pay you a lump sum, in cash, equal to the actuarial equivalent of the excess of (i) the retirement pension
(determined as a straight life annuity commencing at age 65) which you would have accrued under the terms of the Plans (without regard to the limitations imposed by section 401(a)(17) of
the Code or any amendment to the Plans made subsequent to a change in control of the Company and on or prior to the Date of Termination, which amendment adversely affects in any manner the computation
of retirement benefits thereunder), determined as if you were fully vested thereunder and had continued to be employed by the Company (after the Date of Termination) for three additional years and as
if you had accumulated three additional calendar years of compensation (for purposes of determining your pension benefits thereunder), each in an amount equal to the amount determined under
clause (i) of Section 4(iii)(b) hereof, over (ii) the vested retirement pension (determined as a straight life annuity commencing at age 65), which you had then accrued pursuant
to the provisions of the Plans. For purposes of this Subsection, "actuarial equivalent" shall be determined using the same methods and assumptions utilized under the Company Pension Plan immediately
prior to the change in control of the Company; 

    (f)  should
you move your residence in order to pursue other business opportunities within one (1) year after the Date of Termination, the Company will pay you,
at the time specified in Subsection (v), an amount equal to the expenses incurred by you in connection with such relocation (including expenses incurred in selling your home to the extent such
expenses were customarily reimbursed by the Company to transferred Employees prior to the change in control of the Company) and which are not reimbursed by another employer; and 

    (g) all
options to purchase shares of Common Stock of the Company and all stock appreciation rights, in each case granted after the date of this Agreement (or prior to
the date of this Agreement if the terms of the option or stock appreciation right provide for acceleration upon a change in control of the Company) and held by you immediately prior to Termination
shall become exercisable at any time on and after the Date of Termination, whether or not otherwise exercisable in accordance with the terms of the employee benefit plans pursuant to which such
options and stock appreciation rights were granted, and all restrictions on any restricted stock held by you shall lapse. 

    (iv) Notwithstanding
anything in this Agreement to the contrary, whether or not you become entitled to the Severance Payments, if any of the Severance Payments or any
other payment or benefit received or to be received by you in connection with a change in control of the Company or the termination of your employment (whether pursuant to the terms of this Agreement
or any other plan, arrangement or agreement with the Company, any person whose actions result in a change in control of the Company or any person affiliated with the Company or such person)
(collectively with the Severance Payments, "Total Payments") will be subject to the tax (the "Excise Tax") imposed by section 4999 of the Code (or any similar tax that may hereafter be imposed)
the Company shall pay to you at the time specified in Subsection (v), below, an additional amount (the "Gross-Up Payment") such that the net amount retained by you, after deduction of any
Excise Tax on the Total Payments and any federal, state and local income tax and Excise Tax upon the payment provided for by this subsection, shall be equal to the Total Payments. For purposes of
determining whether any amounts will be subject to the Excise Tax and the amount of such Excise Tax, (a) all amounts representing the Total Payments shall be treated as "parachute payments"
within the meaning of section 280G(b)(2) of the Code, and all "excess parachute payments" within the meaning of section 280G(b)(1) of the Code shall be treated as subject to the Excise
Tax, unless in the opinion of tax counsel selected by the Company's independent auditors and acceptable to you the Total Payments (in whole or in part) do not constitute parachute payments, or such
excess 

parachute payments (in whole or in part) represent reasonable compensation for services actually rendered within the meaning of section 280G(b)(4) of the Code in excess of the base amount
within the meaning of section 280G(b)(3) of the Code, or are otherwise not subject to the Excise Tax, (b) the amount of the Total Payments which shall be treated as subject to the Excise
Tax shall be equal to the lesser of (1) the total amount of the Total Payments or (2) the amount of excess parachute payments within the meaning of section 280G(b)(1) of the Code
(after applying clause (a), above), and (c) the value of any non-cash benefits or any deferred payment or benefit shall be determined by the Company's independent auditors in
accordance with the principles of sections 280G(d)(3) and (4) of the Code. For purposes of determining the amount of the Gross-Up Payment, you shall be deemed to pay federal income
taxes at the highest marginal rate of federal income taxation in the calendar year in which the Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate
of taxation in the state and locality of your residence on the Date of Termination, net of the maximum reduction in federal income taxes which could be obtained from deduction of such state and local
taxes. In the event that the Excise Tax is subsequently determined to be less than the amount taken into account hereunder at the time of termination of your employment, you shall repay to the Company
at the time that the amount of such reduction in Excise Tax is finally determined the portion of the Gross-Up Payment attributable to such reduction (plus the portion of the
Gross-Up Payment attributable to the Excise Tax and federal and state and local income tax imposed on the Gross-Up Payment being repaid by you if such repayment results in a
reduction in Excise Tax and/or a federal and state and
local income tax deduction) plus interest on the amount of such repayment at the rate provided in section 1274(b)(2)(B) of the Code. In the event that the Excise Tax is determined to exceed the
amount taken into account hereunder at the time of the termination of your employment (including by reason of any payment the existence or amount of which cannot be determined at the time of the
Gross-Up Payment), the Company shall make an additional gross-up payment in respect of such excess (plus any interest payable with respect to such excess) at the time that the
amount of such excess is finally determined. 

    (v) The
payments provided for in Subsections (iii) and (iv) shall be made not later than the eighth day following execution by you of the Release of
Claims attached as Exhibit A (the "Release of Claims"); provided, however, that if the amounts of such payments cannot be finally determined on
or before such day, the Company shall pay to you on such day an estimate, as determined in good faith by the Company, of the minimum amount of such payments and shall pay the remainder of such
payments (together with interest at the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount thereof can be determined but in no event later than the thirty-eighth day
after the Company's receipt of your signed Release of Claims. In the event that the amount of the estimated payments exceeds the amount subsequently determined to have been due, such excess shall
constitute a loan by the Company to you payable on the fifth day after demand therefor by the Company (together with interest at the rate provided in section 1274(b)(2)(B) of the Code). 

    (vi) Except
as provided in Subsection (iii)(d) hereof, you shall not be required to mitigate the amount of any payment provided for in this Section 4 by seeking
other employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 4 be reduced by any compensation earned by you as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be owed by you to the Company, or otherwise. 

    5.  Release of Claims.  In consideration for and as a condition precedent to receiving the severance
benefits stated in Section 4(iii) of this Agreement, you agree to execute the Release of Claims substantially in the form attached as Exhibit A. If your employment is terminated
by the Company other than for Cause or Disability or by you for Good Reason, you promise to execute and deliver the Release of Claims to the Company within the later of (a) 45 days after
the date you receive the Release of Claims or (b) the last day of your active employment. 

    6.  Successors; Binding Agreement.  (i) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business 

and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption and agreement prior to the effectiveness of any such succession shall be a breach of this Agreement and shall entitle you to all
benefits under Section 4(iii) from the Company in the same amount and on the same terms to which you
would be entitled thereunder, except that for purposes of implementing the foregoing, the date on which any such succession becomes effective shall be deemed the Date of Termination. As used in this
Agreement, "Company" shall mean the Company as hereinbefore defined and any successor to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by operation of law,
or otherwise. 

    (ii) This
Agreement shall inure to the benefit of and be enforceable by you and your personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. If you should die while any amount would still be payable to you hereunder had you continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to your devisee, legatee or other designee or, if there is no such designee, to your estate. 

    7.  Notice.  For purposes of this Agreement, notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified or registered mail, return receipt requested, postage prepaid, addressed
to the respective addresses set forth on the first page of this Agreement, provided that all notices to the Company shall be directed to the attention of the Board with a copy to the Secretary of the
Company, or to such other address as either party may have furnished to the other in writing in accordance herewith, except that notice of change of address shall be effective only upon receipt. 

    8.  Miscellaneous.  No provision of this Agreement may be modified, waived or discharged unless such
waiver, modification or discharge is agreed to in writing and signed by you and such officer as may be specifically designated by the Board. No waiver by either party hereto at any time of any breach
by the other party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of similar or dissimilar provisions or
conditions at the same or at any prior or subsequent time. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of Oregon without
regard to its conflicts of law principles. All references to sections of the Exchange Act or the Code shall be deemed also to refer to any successor provisions to such sections. Any payments provided
for hereunder shall be paid net of any applicable withholding required under federal, state or local law. The obligations of the Company under Section 4 shall survive the expiration of the term
of this Agreement. 

    9.  Validity.  The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect and the invalid or unenforceable provision shall be modified to give effect as nearly
as possible to the original intent of the parties. 

    10.  Counterparts.  This Agreement may be executed in several counterparts, each of which shall be deemed
to be an original but all of which together will constitute one and the same instrument. 

    11.  Arbitration.  (i) Any dispute arising out of or relating to this Agreement or a breach
thereof, shall be finally and conclusively resolved by arbitration administered by the American Arbitration Association ("AAA") as modified by this Agreement or the subsequent agreement of the
parties. Judgment on the award rendered by the arbitrator may be entered in and enforced by any court having jurisdiction thereof. 

    (ii) The
number of arbitrators shall be one, which person shall be neutral and shall be mutually agreed upon by all parties within 30 days after a written
request for arbitration by one party is delivered to all other parties. In the event that the parties cannot agree on an arbitrator, the arbitrator shall be selected within 10 days thereafter
by the AAA from a list submitted by the 

parties, with each party having the right to propose two names. If a qualified arbitrator cannot be appointed from the initial list, the process will be repeated every five days thereafter until a
qualified arbitrator is selected. 

    (iii) The
place of arbitration shall be Portland, Oregon. Unless otherwise agreed by the parties, the following procedures will be followed in any arbitration between
the parties: 

    a.  Pre-arbitration
investigations and depositions shall be conducted expeditiously and, absent a showing of clear need, shall be completed within
30 days after selection of an arbitrator. Unless ordered by the arbitrator to preserve testimony for the hearing, each party shall have the right to take no more than three depositions, each of
which shall last a total of no more than two days. 

    b.  The
arbitration hearing shall begin no more than 60 days after the arbitrator is selected and shall be closed no more than 60 days thereafter. The
arbitrator's award shall be issued within 30 days after the hearing is closed. 

    (iv) Either
party may make an application to a court of competent jurisdiction for an order enforcing this arbitration agreement or for injunctive relief to maintain
the status quo until such time as the arbitration award is rendered or the controversy is otherwise resolved. Both parties consent to the jurisdiction of the AAA. 

    12.  Entire Agreement.  This Agreement sets forth the entire agreement of the parties hereto in respect
of the subject matter contained herein and during the term of the Agreement supersedes the provisions of all prior agreements, promises, covenants, arrangements, communications, representations or
warranties, whether oral or written, by any officer, employee or representative of any party hereto with respect to the subject matter hereof. 

    13.  Effective Date.  This Agreement shall become effective as of the date set forth above. If this
letter sets forth our agreement on the subject matter hereof, kindly sign and return to the Company the enclosed copy of this letter, which will then constitute our agreement on this subject. 

	 	 	Sincerely,
	

 	
 	

PRECISION CASTPARTS CORP.
	

 	
 	

By	
 	

	

Agreed as of the       day of             , 20XX.	
 	

 	
 	

 
	

	
 	

 	
 	

 

 
 

EXHIBIT A
  RELEASE OF CLAIMS    
  

	1.
	PARTIES.

    The
parties to Release of Claims (hereinafter "Release") are «FirstName» «Initial» «LastName» and Precision
Castparts Corp., an Oregon corporation, as hereinafter defined. 

    1.1  EMPLOYEE.  

    For
the purposes of this Release, "Employee" means «FirstName» «Initial» «LastName», and his or her attorneys,
heirs, executors, administrators, assigns, and spouse. 

    1.2  THE COMPANY.  

    For
purposes of this Release the "Company" means Precision Castparts Corp., an Oregon corporation, its predecessors and successors, corporate affiliates, and all of each corporation's
officers, directors, employees, insurers, agents, or assigns, in their individual and representative capacities. 

	2.
	BACKGROUND AND PURPOSE.

    Employee
was employed by the Company. Employee's employment is ending effective «Ending_Effective_Date» following a change in control as defined in
Section 2 of the letter agreement between Employee and the Company dated «Letter_Agreement_Date» (the "Agreement"). The purpose of this Release is to settle, and the
parties hereby settle, fully and finally, any and all claims Employee may have against the Company. 

	3.
	RELEASE.

    Employee
waives, acquits and forever discharges the Company from any obligations the Company has and all claims Employee may have including but not limited to obligations and/or
claims arising from the Agreement or any other document or oral agreement relating to employment compensation, benefits severance or post-employment issues. Employee hereby releases the
Company from any and all claims, demands, actions, or causes of action, whether known or unknown, arising from or related in any way to any employment of or past or future failure or refusal to employ
Employee by the Company, or any other past or future claim (except as reserved by this Release or where expressly prohibited by law) that relates in any way to Employee's employment, compensation,
benefits, reemployment, or application for employment, with the exception of any claim Employee may have against the Company for enforcement of this Release. This release includes any and all claims,
direct or indirect, which might otherwise be made under any applicable local, state or federal authority, including but not limited to any claim arising under the Oregon statutes dealing with
employment, discrimination in employment, Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans With Disabilities Act, the Family and Medical Leave Act of 1993, the
Equal Pay Act of 1963, Employee Order 11246, the Rehabilitation Act of 1973, the Uniformed Services Employment and Reemployment Rights Act of 1994, the Age Discrimination in Employment Act, the Fair
Labor Standards Act, Oregon wage and hour statutes, all as amended, any regulations under such authorities and any applicable contract, tort or common law theories. 

    3.1  RESERVATIONS OF RIGHTS.  

    This
Release shall not affect any rights which Employee may have under any medical insurance, disability plan, workers' compensation, unemployment compensation, applicable company
stock incentive plan(s), indemnifications or the retirement plans maintained by the Company. 

    3.2  NO ADMISSION OF LIABILITY.  

    It
is understood and agreed that the acts done and evidenced hereby and the release granted hereunder is not an admission of liability on the part of Employee or the Company, by whom
liability has been and is expressly denied. 

	4.
	CONSIDERATION TO EMPLOYEE.

    After
receipt of this Release fully endorsed by Employee, and the expiration of the seven day revocation period provided by the Older Workers Benefit Protection Act without Employee's
revocation, the Company shall pay the applicable benefits to the Employee specified in Section 4(iii) of the Agreement. 

	5.
	NO DISPARAGEMENT.

    Employee
agrees that Employee will not disparage or make false or adverse statements about the Company. The Company should report to Employee any actions or statements that are
attributed to Employee that the Company believes are disparaging. The Company may take actions consistent with breach of this Release should it determine that Employee has disparaged or made false or
adverse statements about the Company. The Company agrees to follow the applicable policy(ies) regarding release of employment reference information. 

	6.
	CONFIDENTIALITY, PROPRIETARY, TRADE SECRET AND RELATED INFORMATION.

    Employee
acknowledges and agrees not to make unauthorized use or disclosure of any confidential, proprietary or trade secret information learned as an employee about the Company, its
products, customers and suppliers and covenants not to breach that duty. Should Employee, Employee's attorney or agents be requested in any judicial, administrative, or other proceeding to disclose
confidential, proprietary or trade secret information Employee learned as an employee of the Company, Employee
shall promptly notify the Company of such request by the most expeditious means in order to enable the Company to take any reasonable and appropriate action to limit such disclosure. 

	7.
	OPPORTUNITY FOR ADVICE OF COUNSEL.

    Employee
acknowledges that Employee has been encouraged to seek advice of counsel with respect to this Release and has had the opportunity to do so. 

	8.
	ENTIRE RELEASE.

    This
Release and the Agreement signed by Employee contain the entire agreement and understanding between the parties and, except as reserved in paragraph 3, supersede and
replace all prior agreements, written or oral, prior negotiations and proposed agreements, written or oral. Employee and the Company acknowledge that no other party, nor agent nor attorney of any
other party, has made any promise, representation or warranty, express or implied, not contained in this Release concerning the subject matter of this Release to induce this Release, and Employee and
the Company acknowledge that they have not executed this Release in reliance upon any such promise, representation, or warranty not contained in this Release. 

	9.
	SEVERABILITY.

    Every
provision of this Release is intended to be severable. In the event any term or provision of this Release is declared to be illegal or invalid for any reason whatsoever by a
court of competent jurisdiction or by final and unappealed order of an administrative agency of competent jurisdiction, such illegality or invalidity should not affect the balance of the terms and
provisions of this Release, which terms and provisions shall remain binding and enforceable. 

	10.
	REVOCATION.

    As
provided by the Older Workers Benefit Protection Act, Employee is entitled to have forty-five days to consider this Release. For a period of seven days after execution
of this Release, Employee may revoke this Release. Upon receipt of Employee's signed Release and the end of the seven day 

revocation period, payment by the Company as described in paragraph 4 above will be made in a timely manner as provided herein. 

	
 «FirstName» «Initial» «LastName»	 	Dated:             , 2      

	STATE OF OREGON	 	)	 	 
	 	 	) ss.	 	 
	County of Multnomah	 	)	 	 

    Personally
appeared the above named «FirstName» «Initial» «LastName» and acknowledged the foregoing instrument
to be his or her voluntary act and deed. 

	 	 	Before me:	 	

	 	 	 	 	Notary Public for	 	

	 	 	 	 	My commission expires:	 	

	PRECISION CASTPARTS CORP.	 	 	 	 
	

By:	
 	

	
 	

Dated:	
 	

	

Its:	
 	

 On Behalf of the "Company"

	
 	

 	
 	

 

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EXHIBIT A RELEASE OF CLAIMSPrepared by MERRILL CORPORATION

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Exhibit 10I  

CONFORMED COPY  

 
 

PRECISION CASTPARTS CORP.    
    
    SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM—
  LEVEL ONE PLAN    
    
    1998 Restatement    
    
    January 1, 1998    
  

    (As Amended by Amendment No. 1) 

	Precision Castparts Corp.

an Oregon corporation

4650 SW Macadam, Suite 240

Portland, Oregon 97201	 	Company

PRECISION CASTPARTS CORP.  

 SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM—

LEVEL ONE PLAN  

 1998 Restatement  

 January 1, 1998  

    Precision Castparts Corp., an Oregon corporation (the Company) adopted this Program effective February 1, 1989 to provide supplemental retirement
benefits for certain key employees as an incentive for them to develop careers with the Company and to perform with a degree of excellence that will promote the best interests of the Company. The
Program is divided into two plans, the Level One Plan, which this Restatement constitutes, and a second plan called the Precision Castparts Corp. Supplemental Executive Retirement
Program—Level Two Plan (SERP—Level Two). The Company adopts the following Restatement of the Supplemental Executive Retirement Program—Level One Plan (the Plan)
effective as of January 1, 1998 to enhance benefits and to make technical, administrative and editorial changes. 

    1.  Eligibility and Participation  

    1.1    Eligible Employees.  Participation shall be limited to a select group of designated
key employees of the Company and of its United States Subsidiaries. "Subsidiary" means a corporation more than 50 percent of the outstanding voting stock of which is owned by the Company. 

    1.2  Selection of Participants.  

    1.2-1    Participants shall be selected initially by the Compensation Committee of the Board
of Directors of the Company (the Committee). The chief executive officer of the Company may recommend additional
participants for approval by the Compensation Committee. A key employee may be selected for participation at any time. The Committee may also remove a participant from the Plan on a prospective basis,
with or without cause. The Administrator shall notify the participant in writing within 30 days after Committee action establishing the removal. The effective date of removal shall be the date
of adoption of the Committee action. 

    1.2-2    Subject to 1.4, following any removal under 1.2-1, the following shall
apply: 

    (a)  The removal, in itself, shall not cause an immediate forfeiture of benefits. 

    (b)  No further Years of Benefit Service shall be counted following the date of removal. 

    (c)  The amounts described in 2.1-5(a) and (b) shall not change after removal, but the amounts
described in 2.1-5(c) may change due to further accruals or other increases in the Retirement Plan Benefit and Primary Social Security Benefit. 

    (d)  A removed participant who continues to be employed by the Company or a Subsidiary shall not earn additional Years
of Eligibility Service needed to qualify for retirement under Section 2 below and shall not qualify for accelerated vesting under 2.4 on change of control occurring after removal from
participation. 

    (e)  The pre-retirement spousal death benefit if applicable under 4.3 shall end 30 days after notice
of removal is given under 1.2-1. 

    (f)  If the participant is married at removal and remains married until the benefit start date, the
Company-paid survivor annuity under 2.1-2, as well as any election under 3.2-2 to increase the survivor annuity from 50% to 100%, shall continue to apply. If the
participant is married at removal and is unmarried or married to a different spouse at the 

 

benefit start date, the Company-paid survivor annuity under 2.1-2 shall not apply. If the participant is unmarried at removal but becomes married prior to the benefit start
date, the Company-paid survivor annuity under 2.1-2 shall not apply, but the participant may elect within 30 days after marriage an actuarially equivalent spousal
survivor annuity at 50% or 100% determined with reference to the otherwise payable normal benefit for the participant's life only. 

    1.3  Enrollment.  When selected, the key employee shall be notified and given a Statement of
Participation signed by the Company. The key employee shall enroll for participation by completing the Statement of Participation, including all required benefit elections, signing it and returning it
to the Administrator of the Plan appointed by the Committee (the Administrator). The Statement of Participation shall be effective on the date signed by the key employee. 

    1.4  Transfer to Level Two.  

    1.4-1    If a participant in this Plan becomes a participant under SERP—Level
Two, the benefit obligations under this Plan shall be transferred to SERP—Level Two as follows: 

    (a)  The monthly benefit shall be calculated as described in 1.4-2. 

    (b)  If the participant is married upon transfer and remains married until the benefit start date, an election under
3.2-2 to provide for a surviving spouse 100% contingent annuity shall continue to apply to the transferred benefit obligations. 

    (c)  The Company-paid survivor annuity under 2.1-2 shall continue to apply only if the
participant is married on the transfer date and remains married until the benefit start date. If the participant is not married on the transfer date and is married on the benefit start date, or if the
participant is married on the transfer date and is married to a different spouse on the benefit start date, the Company-paid survivor annuity under 2.1-2 shall not apply. 

    1.4-2    The benefit following the transfer will be the greater of the following: 

    (a)  The benefit determined under the SERP—Level Two formula counting covered service and pay for the
periods of coverage under SERP—Level One and SERP—Level Two. 

    (b)  The grandfathered SERP—Level One benefit, calculated as follows: 

    (1)  The benefit target shall be determined under 2.1-5(a) and (b) based on covered service and pay
as of the date of transfer. 

    (2)  The offset portion under 2.1-5(c) may change after the date of transfer due to further accruals or
other increases in the Retirement Plan Benefit and Primary Social Security Benefit. In determining the offset for the Retirement Plan Benefit, the monthly benefit shall be calculated based on the
following form of benefit: 

    —  If the participant is unmarried on the transfer date, or if the participant is married on the transfer
date but is married to a different spouse on the benefit start date, in a straight life annuity. 

    —  If the participant is married upon transfer and remains married until the benefit start date, in a
contingent annuity with half payments continued to the spouse for the period of coverage under SERP—Level One and in a straight life annuity for the period of coverage under
SERP—Level Two. 

2

 

    2.  Supplemental Benefits  

    2.1  Normal Retirement Benefit  

    2.1-1    Subject to 2.1-2, 2.1-3 and 2.1-6, the basic
supplemental benefit on normal retirement with 20 Years of Benefit Service (YBS) shall be a monthly pension for life equal to 60 percent of Final Average Pay (FAP) minus the Retirement Plan
Benefit (RPB) and the Primary Social Security Benefit (PSSB). 

    2.1-2    For a participant who is married at the time retirement benefit payments start, the
benefit shall include a survivor annuity for the participant's spouse under which after the participant's death, ongoing benefits shall be paid to the participant's surviving spouse for life at a
monthly rate equal to half the monthly rate paid to the participant. The married participant's normal retirement benefit shall not be reduced to provide for this survivor annuity. As provided in
3.2-2, a married participant may elect to have the surviving spouse's survivor annuity increased to provide for continuation of benefits in full after the participant's death, in which
case the participant's normal retirement benefit shall be reduced on an actuarially equivalent basis to provide for the increase in the survivor annuity amount. The survivor annuity, if applicable,
shall only be payable to the spouse to whom the participant is married on the benefit starting date. 

    2.1-3    The basic supplemental benefit for any participant who is a Five Percent Shareholder
of the Company shall be half the amount otherwise provided under 2.1-1 and related provisions. If a participant stops being a Five Percent Shareholder, the foregoing restriction shall not
apply to
additional benefits for Benefit Service after the Five Percent Shareholder status ends. A participant shall be considered a Five Percent Shareholder if: 

    (a)  The person owns, directly or indirectly, securities of the Company representing 5 percent or more of the
combined voting power of the Company's then outstanding securities, and 

    (b)  The person has owned securities meeting the requirements of (a) for 20 or more years while an employee of
the Company. 

    2.1-4    For a participant with less than 20 Years of Benefit Service at normal retirement,
the 60 percent factor in 2.1-1 shall be reduced by 1/20th for each year less than 20. The benefit for each Year of Benefit Service over 20 shall be one-half of one
percent (.5 percent) of Final Average Pay, minus any portion of the Retirement Plan Benefit and Primary Social Security Benefit that exceeds the basic benefit under 2.1-1 for the
first 20 Years of Benefit Service. The benefit for a partial year at the end of a participant's period of service shall be prorated based on the number of months in which the participant performs
services during the year. 

    2.1-5    The basic supplemental benefit can be expressed as follows: 

    (a)  (60% of FAP) ((YBS up to 20)/20) 

    PLUS

    (b)  (.5% of FAP) (YBS over 20) 

    MINUS

    (c)  (RPB + PSSB) 

    2.1-6    If a participant has a period of Benefit Service transferred to this Plan from
SERP—Level Two, an election under 3.2-2 of SERP—Level Two shall continue to apply to the transferred benefit obligations as provided in this Plan. 

3

 

    2.2  Definitions  

    2.2-1    "Final Average Pay" means the participant's average monthly compensation in the
highest three calendar years of compensation out of five consecutive calendar years of employment during a period of Eligibility Service by the Company or a Subsidiary. Years separated by a period of
one or more calendar years when the participant has no such employment shall be treated as consecutive. Additional compensation paid at retirement or other termination of employment, such as for
periods of unused vacation or sick leave, shall be attributed to calendar years by assuming that employment continued during the period based on which the compensation is measured. Severance pay shall
be disregarded, except severance pay in lieu of service. 

    2.2-2    "Compensation" shall be determined as follows: 

    (a)  Total direct pay reportable on Form W-2 under Internal Revenue Code section 3401(a),
disregarding limitations based on the nature or location of employment, shall be counted, subject to the following provisions: 

    (1)  Bonuses shall be included in full. 

    (2)  Commissions and cost-of-living allowances shall be excluded. 

    (3)  Any reimbursements or other expense allowances, fringe benefits, moving expenses, severance or disability pay and
other deferred compensation (other than as specified in (b) below) and welfare benefits shall be excluded. 

    (4)  Gains realized from the exercise of nonqualified stock options shall be excluded. 

    (b)  Total direct pay shall be determined without reduction by elective deferral of otherwise currently taxable
compensation under any qualified cash or deferred arrangement under Internal Revenue Code
section 401(k), any elective welfare benefit arrangement under Internal Revenue Code section 125 or a non-qualified deferred compensation plan. 

    (c)  During periods of reduced compensation because of such causes as illness, disability or leave of absence,
compensation shall be figured at the last regular rate before the start of the period. 

    2.2-3    "Primary Social Security Benefit" means the primary insurance amount estimated for
the participant on retirement at or after age 65 under the federal Social Security Act determined as follows: 

    (a)  The amount may be estimated from the regular pay rate under rules established by the Administrator assuming a
standard pay progression over a full working career. 

    (b)  The amount shall not be changed by amendments to the Social Security Act or cost-of-living
index adjustments after the participant's actual termination date or age 65, whichever is first. 

    (c)  If a participant retires early, the Primary Social Security Benefit shall be the amount that would be received at
age 65 assuming level earnings at the participant's final rate of pay and no change in the Social Security Act. 

4

 

    2.2-4    "Retirement Plan Benefit" means the sum of the following amounts: 

    (a)  The monthly benefit (excluding any Prior Profit Sharing Plan Benefit) under the Precision Castparts Corp.
Retirement Plan (the Retirement Plan) for the participant upon normal retirement at age 65 in the form determined under 2.2-5. 

    (b)  The monthly benefit for the participant under any defined benefit pension plan other than the Retirement Plan from
service counted for benefits under this Plan as well as any service following removal from participation, and disregarding any benefit derived from rollovers to such plan derived from a source other
than employer contributions relating to the period of service counted for benefits under this Plan. The benefit shall be expressed as a normal retirement benefit at age 65 in the form determined under
2.2-5 using the actuarial equivalency factors applicable under that plan. If benefits are
provided for a participant under the foregoing sentences with respect to more than one plan, all such benefits shall be combined. 

    (c)  The monthly benefit for the participant under a defined contribution retirement plan relating to service counted
for benefits under this Plan as well as any service following removal from participation, and disregarding any benefit derived from employee pre-tax or employee after-tax
contributions to such plan or rollovers to such plan derived from a source other than employer contributions relating to the period of service counted for benefits under this Plan. The amount of the
benefit shall be based on each employer contribution for the participant with respect to the relevant period of service, with the contributions carried forward at an interest rate of eight percent.
The actual rate of return in the plan and any interim distributions or withdrawals shall be disregarded. The resulting benefit shall be expressed as a normal retirement benefit at age 65 in the form
determined under 2.2-5 using the actuarial equivalency factors applicable to the Retirement Plan for determining equivalent benefits other than a lump sum. If benefits are provided for a
participant under the foregoing sentences with respect to more than one plan, all such benefits shall be combined. If the defined contribution plan is a plan under which employer contributions are
made to match, wholly or partly, employee pre-tax or after-tax contributions under the plan, then the offset for the defined contribution plan shall be calculated assuming the
employee's account has been credited with the maximum matching contributions the employee could have had credited by making employee contributions (without regard to any operational limitations
imposed by discrimination testing), carried forward at an interest rate of eight percent. 

    2.2-5    In determining the Retirement Plan Benefit under 2.2-4, the monthly
benefit shall be calculated based on the following form of benefit: 

    (a)  For a participant who is married when benefit payments start under this Plan, in a contingent annuity with half
payments continued to the spouse. 

    (b)  For a participant who is unmarried when benefit payments start under this Plan, in a straight life annuity. 

    2.2-6  "Normal Retirement" means retirement under the Retirement Plan at or after age 65 with 10 Years of
Eligibility Service. 

    2.2-7    Subject to 1.2, "Year of Benefit Service" means a period of 12 months based
on the anniversary of the date the employee first performs an hour of service as an employee of the Company or a Subsidiary. No service for a business before the date it becomes a Subsidiary shall be
counted as Benefit Service. Except for periods of disability as described below, periods of employment other than as a regular full-time employee shall be disregarded and service credit
shall be reduced accordingly. If a person becomes totally and permanently 

5

 

disabled while a participant accruing Benefit Service and qualifies for disability income payments under Social Security, the participant shall continue to accrue Years of Benefit Service during
disability up to age 65 or earlier retirement if: 

    (a)  The disability was directly related to and arose from the participant's employment, or 

    (b)  The participant had 10 Years of Eligibility Service before the disability occurred. 

    2.2-8    "Years of Eligibility Service" means Years of Benefit Service as defined in
2.2-7 plus Years of Service (as defined in the Retirement Plan), if any, approved by the Committee performed for a business before the date it became a Subsidiary. 

    2.3  Early Retirement Benefit  

    2.3-1    An early retirement supplemental benefit shall be payable for a participant who
terminates employment before normal retirement but after age 55 with at least 10 Years of Eligibility Service. The benefit shall be the normal retirement basic supplemental benefit, as adjusted under
2.1-4, if applicable, and reduced as described in 2.3-2 by 6 percent for each year by which the early retirement date precedes the date the participant would have first
qualified for normal retirement as defined in 2.2. The reduction for partial years shall be prorated monthly, based on calendar months with a partial month at the beginning or end of the period
disregarded if the affected portion of the month is less than 15 days. 

    2.3-2    The early retirement reduction described in 2.3-1 shall be applied after
calculating a participant's benefit as for normal retirement, based on service and compensation to actual retirement, as follows: 

	(a)
	(60% of FAP) ((YBS up to 20)/20)

+ (.5% of FAP) (YBS over 20) - (RPB + PSSB) 

    TIMES

	(b)
	(1 - .06(65 - age at actual retirement)) 

    2.3-3    No benefit shall be paid with respect to a participant whose employment terminates
before early retirement except under 2.4 or 4. 

    2.3-4    A participant may not elect to defer the start of early retirement benefits. 

    2.4  Accelerated Vested Benefit.  Subject to 2.5, an accelerated vested benefit shall be payable for a
participant whose employment is terminated by the Company if the termination occurs both within two years following a Change in Control of the Company as defined in 10 and before the participant
qualifies for normal or early retirement. The benefit shall be a lump sum payment as of the first day of the month after termination of employment. The amount shall be the actuarially determined
present value of the participant's basic supplemental benefit on normal retirement, based on Final Average Pay and Years of Benefit Service as of the date of termination, an assumed interest rate of
eight percent and the mortality table used for equivalent benefits payable as lump sum payments under the Retirement Plan. No cash-out value shall be attributed to any spousal survivor
benefit for a participant. If a participant qualifies for payment of a benefit under this provision, but dies before payment of the benefit, the benefit shall be paid to the participant's spouse under
4.4 if applicable, or to the participant's estate if 4.4 is not applicable. A change in ownership of an affiliate of the Company that does not occur as part of a Change in Control of the Company,
shall not trigger this section 2.4. 

6

 

    2.5  Forfeiture of Benefit  

    2.5-1    No benefit (other than a spouse's death benefit under 4, if applicable) shall be
payable with respect to a participant who terminates employment, regardless of cause, before qualifying for a normal retirement benefit, an early retirement benefit or an accelerated vested benefit or
to any participant whose employment is terminated for misconduct during employment. Moreover, no normal or early retirement benefit or spouse's death benefit shall be payable with respect to any
participant who, after termination, engages in competition with the Company or a Subsidiary, as determined by the Committee in accordance with 2.5-3. 

    2.5-2    "Misconduct during employment" means: 

    (a)  Committing a fraudulent or otherwise dishonest act related to employment; 

    (b)  Making an unauthorized disclosure of confidential information related to the Company or Subsidiary if the
information was obtained during employment; or 

    (c)  Engaging in competition while employed. Competition is defined in 2.5-3(a) and (b). 

    2.5-3    "Competition" means doing either of the following within three years after
termination of employment: 

    (a)  Making an unauthorized disclosure of confidential information related to the Company or any Subsidiary if the
information was obtained during employment; or 

    (b)  Engaging either as an employee, partner, proprietor or otherwise, in a business in competition with the Company or
any Subsidiary in the manufacture or sale of investment castings or any other business conducted by the Company or a Subsidiary at any time during the participant's period of employment. 

    2.5-4    No forfeiture or absence of a forfeiture shall constitute a waiver of or bar any
other remedy that may be available to the Company or a Subsidiary under applicable law on account of the misconduct or competition. 

    2.6  Deferred Retirement Benefit.  If a participant's employment with the Company or a Subsidiary
continues past age 65, Years of Benefit Service shall continue to accrue and Final Average Pay shall be adjusted to actual retirement. The benefit shall be based on the regular formula for normal
retirement, and no actuarial adjustment shall be made for starting benefits after age 65. 

    2.7  Accruals During Disability.  

    2.7-1    "Disability" means a condition that makes a person eligible for disability income
payments under Social Security for total, permanent disability. 

    2.7-2    A participant who terminates covered employment on account of disability shall
continue to accrue Service for Eligibility and Benefits while disabled until retirement or earlier recovery from disability if either of the following applies: 

    (a)  The disability was directly related to the participant's employment. 

    (b)  The participant had at least 10 Years of Eligibility Service before the disability occurred. 

    2.7-3    A disabled participant shall be retired at normal retirement date and may retire at
early retirement date if eligible. Benefits shall be determined on the basis of Benefit Years, Final Average Pay (calculated as if pay rate was frozen at the date of disability), Primary Social
Security Benefit and Retirement Plan Benefit at retirement. 

7

 

    3.  Payment of Benefits  

    3.1  Start of Benefits.  Benefits shall start with the month that begins after termination of employment,
in the case of normal, deferred, accelerated vested or early retirement benefits, and with the month that begins after the participant's death in the case of a spouse's death benefit under 4.1 through
4.3. The benefit starting date shall be as of the first day of the first month for which benefits are paid under this provision. Benefit payments shall be made by the end of the month to which they
apply in accordance with the Company's regular payroll processing schedule. 

    3.2  Form of Benefit  

    3.2-1    Subject to 2.1-2, the normal form for payment of benefits shall be a
monthly annuity for the life of the participant. 

    3.2-2    A married participant may elect under 3.2-4 to receive a reduced monthly
benefit for life in order to have payments continued to the participant's surviving spouse in full (rather than at one-half as provided in 2.1-2). 

    3.2-3    The reduction under 3.2-2 in the participant's monthly benefit shall be
the actuarial equivalent of the increase selected for the spouse's survivor benefit. Actuarial equivalency shall be determined with reference to the otherwise payable normal benefit and shall be based
on the assumptions applicable to determining comparable benefits under the Retirement Plan. 

    3.2-4    A benefit election under 3.2-2 may be made upon enrollment in this Plan
or within 30 days following the marriage of a participant that occurs before the participant's benefit starting date under 3.1. The election shall be by written notice mailed or delivered to
the Administrator. An election under 3.2-2 shall be void if the participant and spouse do not stay married throughout the period from the election date to the benefit starting date. 

    3.2-5    Accelerated vested benefits under 2.4 shall be paid in a lump sum. 

    4.  Death Benefits for Spouse  

    4.1  Subject to 2.5, if a participant dies after starting to receive benefits, or dies after retiring under
2.2-6 or 2.3-1 but before starting benefits under 3.1, a death benefit shall be paid only as provided under the spouse's survivor benefit form. A spouse's
post-retirement death benefit shall only be paid to the spouse to whom the participant was married on the participant's benefit starting date, even if the participant is married to another
spouse on the date of death. 

    4.2  Except as provided in 4.3 and 4.4, if a participant dies before starting to receive benefits or qualifying under
4.1, no benefit shall be paid. The surviving spouse benefits under 4.3 and 4.4 shall only be payable if the participant and spouse are legally married on the date of death. 

    4.3  Subject to 1.2-2(e) and 4.2, the surviving spouse of a participant who dies while employed in covered
employment after accruing 10 Years of Eligibility Service, or whose death while so employed is directly related to the participant's employment, shall receive a death benefit as follows: 

    (a)  The benefit shall be a monthly payment for the surviving spouse's life, starting on the first day of the month
after the participant's death. 

    (b)  Subject to (c), the benefit shall be one-half of the amount determined as though the participant had
retired on the date of death with benefits payable to the surviving spouse under the survivor annuity in Plan Section 2.1-2. In determining the amount of the benefit, the
participant's actual Years of Benefit Service, Final Average Pay, and Primary Social Security Benefit shall be used. The Retirement Plan Benefit described in Plan Section 2.2-4(a) 

8

 

will include the actuarial value of any subsidy provided to actual preretirement death benefits that commence prior to age 55. Early retirement adjustment factors as described in
Section 2.3-2(b) shall
apply. On death before age 55, the participant shall be assumed to be age 55 in determining the early retirement adjustment factor. 

    (c)  If a participant elected under 3.2-2 to have payments continued to the surviving spouse in full, then
the amount under (b) shall be determined using that benefit form. 

    4.4  If a participant dies after qualifying for an accelerated vested benefit under 2.4 but before the date under 3.1
for payment of the benefit, the surviving spouse shall receive the participant's accelerated vested benefit in a lump sum on the date the payment otherwise would have been made to the participant. If
actual payment is delayed until after the date under 3.1 for payment of the benefit to the surviving spouse under this provision, the benefit shall be paid to the spouse as soon as practicable, or to
the surviving spouse's estate if the surviving spouse has died before the actual payment date. If a participant dies after qualifying for an accelerated vested benefit under 2.4 but before the date
under 3.1 for payment of the benefit, and there is no surviving spouse, no benefit shall be paid under this provision. 

    5.  No Advance Funding  

    Benefits
shall be paid from the general assets of the Company. The Company may, but shall not be required to set aside funds in advance for payment of benefits under the Plan. Even if
funds are set aside, that shall not cause this to be a funded employee benefit plan. Participants' rights under this Plan shall be only as general creditors of the Company. 

    6.  Amendment and Termination  

    6.1  Regular Procedure.  Subject to 6.3, the Board of Directors of the Company may amend or terminate
this Plan on the first day of any month by notice to the participants, but may not revoke any participant's benefits (a) without adequate compensation or (b) after the occurrence of a
Change in Control of the Company. If the Board of Directors decides to revoke benefits for some or all participants, the benefits of all affected participants shall be revoked in exchange for adequate
compensation, and such participants shall have no right to defer receipt of such compensation. "Adequate compensation" shall be determined based upon the actuarially equivalent present value of the
accrued straight life normal retirement (age 65) benefit as of the plan termination date, using an eight percent interest assumption and the mortality table then applicable under the Retirement
Plan to benefits payable as lump sum distributions. No cashout value shall be attributed to any spousal survivor benefit for a participant who has not already retired and commenced benefits. Subject
to 6.2, the value of an unvested benefit shall be zero. 

    6.2  Total Plan Termination or Reduction in Benefit Accrual Rate.  In the event of a total termination,
the benefits of all participants shall be fully vested immediately to the extent then accrued, and the
participant shall receive adequate compensation as described in 6.1 above. If ongoing benefit accruals are slowed or stopped, the following shall apply: 

    (a)  Automatic vesting shall not apply. 

    (b)  Participants who remain employed by the Company or a Subsidiary shall continue to accrue Eligibility Service and
shall become vested upon reaching age 55 and 10 Years of Eligibility Service. 

    (c)  The amounts described in 2.1-5(a) and (b) shall be adjusted under the new accrual rate, or shall
be frozen if accruals are stopped, but shall not be reduced. The amounts described in 2.1-5(c) may change as described in 1.2-2(c). 

9

 

    6.3  Technical, Editorial or Operational Changes.  The chief executive officer of the Company may amend
the Plan to make technical, editorial or operational changes on advice of counsel to comply with applicable law or to simplify or clarify the Plan. The chief executive officer may delegate this
amendment authority. 

    7.  Not Contract of Employment  

    This
Plan shall not be a contract of employment between the Company or a Subsidiary and any participant. No participant may object to termination of the Plan under paragraph 6
above. The Plan shall not prevent the Company or a Subsidiary from discharging any participant from employment at any time. 

    8.  Claims Procedure  

    8.1  Filing Procedure.  Any person claiming a benefit, requesting an interpretation or ruling under the
Plan, or requesting information under the Plan shall present the request to the Administrator who shall respond in writing as soon as practicable. Verbal claims must be confirmed in writing by the
claimant within a reasonable time. If no written confirmation is received within two weeks of a verbal claim, the Administrator may state the claim in writing communicated to the claimant and then
proceed on that basis. 

    8.2  Notice of Denial.  If the claim or request is denied, the written notice of denial shall state: 

    (a)  The reasons for the denial, with specific reference to the Plan provisions on which the denial is based; 

    (b)  A description of any additional material or information required and an explanation of why it is necessary; and 

    (c)  An explanation of the Plan's claim review procedure. 

    8.3  Review Procedure.  Any person whose claim or request is denied or who has not received a response
within 30 days may request review by notice in writing to the Administrator, who shall inform the Committee. The original decision shall be reviewed by the Committee, which may, but shall not
be required to, grant the claimant a hearing. On review, whether or not there is a hearing, the claimant may have representation, examine pertinent documents and submit issues and comments in writing. 

    8.4  Decision on Review.  The decision on review shall ordinarily be made within 60 days. If an
extension of time is required for a hearing or other special circumstance, the claimant shall be so notified and the time shall be 120 days. The decision shall be expressed in writing and shall
state the reasons and the relevant Plan provisions. All decisions on review shall be final and bind all parties concerned. 

    9.  General Provisions  

    9.1  If suit or action is instituted to enforce any rights under the Plan, the prevailing party may recover from the
other party reasonable attorneys' fees at trial and on any appeal. 

    9.2  Any notice under this Plan shall be in writing and shall be effective when actually delivered or, if mailed, when
deposited as registered or certified mail directed to the Company at the address stated in the Statement of Participation or to such other address as either party may specify by notice to the other
party. Unless otherwise designated, notices to the Committee or the Administrator shall be sent to the address specified for the Company. 

    9.3  The rights of a participant under this agreement are personal. Except for amounts owing to or claimed by the
Company or a Subsidiary and except for the limited provisions of 3.2 above, 

10

 

no interest of a participant or spouse or representative of a participant may be directly or indirectly transferred, encumbered, seized by legal process or in any other way subjected to the claims of
any creditor. 

    9.4  Following termination of employment, a participant shall not be an employee of the Company or a Subsidiary for any
purpose and payments under Section 3 shall not constitute salary or wages. A participant shall receive such payments as retirement benefits, not as compensation for performance of any
substantial services. 

    9.5  Except as provided in 9.3 above, this Plan shall be binding upon and inure to the benefit of the parties, their
successors and assigns. If the Company or a Subsidiary merges, consolidates or otherwise reorganizes, or its assets or business are acquired by another company, this Plan shall be binding upon the
successor company and shall apply to any employment of participants by the successor company. 

    9.6  This Plan shall be construed according to the laws of Oregon except as preempted by federal law. 

    10.  Definition of Change in Control  

    For
purposes of this Plan, a "change in control of the Company" shall be deemed to have occurred if: 

    (a)  Any "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 the Company, any trustee or other fiduciary holding securities under an employee benefit plan of the Company, or any company 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 20 percent or more of the combined voting power of the Company's then outstanding securities; 

    (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 of Directors of the Company (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 clause (a), (c) or (d) of this Section) 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 at least a majority thereof; 

    (c)  The stockholders of the Company approve a merger or consolidation of the Company with any other company, other than
(1) a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity) more than 50 percent of the combined voting power of the voting securities of the Company or such surviving entity outstanding
immediately after such merger or consolidation or (2) a merger or consolidation effected to implement a recapitalization of the Company (or similar transaction) in which no "person" (as
hereinabove defined) acquires more than 20 percent of the combined voting power of the Company's then outstanding securities; 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 of the Company's assets. 

11

 

    11.  Effective Date  

    This
Restatement shall be effective January 1, 1998, except that the changes in 2.2-4 shall be effective as of January 1, 1989, the Plan's initial effective
date. The Company-provided spouse's survivor benefit under 2.1-2 shall be provided as follows: 

    (a)  For a participant who had previously elected to receive benefits in a straight life annuity, the 50% spouse's
survivor benefit is provided with no reduction of the participant's monthly benefit amount. If the participant was not married upon making the election, but is married on August 5, 1997, the
participant may elect promptly after receiving written announcement of this Restatement to have the Company-provided spouse's survivor benefit supplemented with an additional 50% spouse's survivor
benefit (with a related actuarial reduction in the participant's benefit), resulting in a 100% spouse's survivor benefit. Actuarial equivalency shall be determined in a manner consistent with
3.2-3. 

    (b)  For a participant who had previously elected to reduce the monthly retirement benefit in order to provide the 50%
spouse's survivor benefit, the participant may elect within 30 days of receiving written announcement of this Restatement either to receive the Company-provided spouse's survivor benefit to
increase the spouse's survivor benefit to 100%, or to have the originally-selected 50% spouse's survivor benefit provided with no actuarial reduction. Actuarial equivalency shall be determined in a
manner consistent with 3.2-3. 

    (c)  For a participant who had previously elected to reduce the monthly retirement benefit in order to provide the 100%
spouse's survivor benefit, the actuarial reduction of the participant's monthly benefit shall be based on the difference between the Company-provided spouse's survivor benefit and the 100% spouse's
survivor benefit as selected. Actuarial equivalency shall be determined in a manner consistent with 3.2-3. 

	1998 RESTATEMENT EXECUTED AS FOLLOWS EFFECTIVE JANUARY 1, 1998:
	

Adopted: August 5, 1997	
 	

 	

 
	
Company	
 	

PRECISION CASTPARTS CORP.
	

 	
 	

By	

W. C. McCORMICK

	 	 	Executed: December 3, 1997
	
AMENDMENT NO. 1 EXECUTED AS FOLLOWS EFFECTIVE NOVEMBER 4, 1998:
	

Adopted: November 4, 1998	
 	

 	

 
	
Company	
 	

PRECISION CASTPARTS CORP.
	

 	
 	
By	

WILLIAM D. LARSSON

	 	 	Executed: November 11, 1998

12

QuickLinks

PRECISION CASTPARTS CORP. SUPPLEMENTAL EXECUTIVE RETIREMENT PROGRAM— LEVEL ONE PLAN 1998 Restatement January 1, 1998

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