Document:

<PAGE>

                                                                    Exhibit 10 M

              CARPENTER TECHNOLOGY CORPORATION CHANGE OF CONTROL
                                SEVERANCE PLAN

                                 INTRODUCTION
                                 ------------

          As is the case with many publicly held corporations, there exists the
possibility of a Change of Control of the Company.  This possibility and the
uncertainty it creates may result in the loss or distraction of employees of the
Company and its Subsidiaries to the detriment of the Company and its
stockholders.  The avoidance of such loss and distraction is essential to
protecting and enhancing the best interests of the Company and its stockholders.

          When a Change of Control is perceived as imminent, or is occurring,
the Company should be able to receive and rely on disinterested service from
employees regarding the best interests of the Company and its stockholders
without concern that employees might be distracted or concerned by the personal
uncertainties and risks created by the perception of an imminent or occurring
Change of Control.

          It is consistent with the employment practices and policies of the
Company and its Subsidiaries and in the best interests of the Company and its
stockholders to treat fairly its employees whose employment terminates in
connection with or following a Change of Control.  Accordingly, it has been
determined that appropriate steps should be taken to assure the Company and its
Subsidiaries of the continued employment and attention and dedication to duty of
their employees and to seek to ensure the availability of their continued
service, notwithstanding the possibility, threat or occurrence of a Change of
Control.

          Therefore, in order to fulfill the above purposes, the following plan
has been developed and is hereby adopted.

                                   ARTICLE I
                             ESTABLISHMENT OF PLAN
                             ---------------------

          As of the Effective Date, the Company hereby establishes a separation
compensation plan known as the Carpenter Technology Corporation Change of
Control Severance Plan, as set forth in this document.

                                  ARTICLE II
                                  DEFINITIONS
                                  -----------

          As used herein the following words and phrases shall have the
following meanings unless the context clearly indicates otherwise:

          (a) Affiliated Company.  Any company controlled by, controlling or
              ------------------
under common control with the Company.
<PAGE>

          (b) Annual Salary.  The Participant's regular annual base salary
              -------------
immediately prior to his or her termination of employment, including
compensation converted to other benefits under a flexible pay arrangement
maintained by the Company or any Subsidiary or deferred pursuant to a written
plan or agreement with the Company or any Subsidiary, but excluding overtime
pay, allowances, premium pay, compensation paid or payable under any Company
bonus or incentive plan of the Company or any Subsidiary or any similar payment.

          (c) Board.  The Board of Directors of Carpenter Technology
              -----
Corporation.

          (d) Cause.  With respect to any Participant:  (i)  the willful and
              -----
continued failure of the Participant to perform substantially the Participant's
duties with the Company or any Subsidiary (other than any such failure resulting
from incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered to the Participant by an executive officer
of the Company which specifically identifies the manner in which the executive
officer believes that the Participant has not substantially performed the
Participant's duties, or (ii) the willful engaging by the Participant in illegal
conduct or gross misconduct which is materially and demonstrably injurious to
the Company or any Subsidiary.  For purposes of this definition, no act or
failure to act on the part of the Participant shall be considered "willful"
unless it is done, or omitted to be done, by the Participant in bad faith or
without reasonable belief that the Participant's action or omission was in the
best interests of the Company or any Subsidiary.  Any act or failure to act
based upon authority given pursuant to a resolution duly adopted by the Board or
upon the instructions of the Chief Executive Officer or another executive
officer of the Company or any Subsidiary or based upon the advice of counsel for
the Company shall be conclusively presumed to be done, or omitted to be done, by
the Participant in good faith and in the best interests of the Company.

          (e) Change of Control.  The occurrence of any of the following events:
              -----------------

              (i)  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 (x) the then-outstanding shares of common stock of the Company
(the "Outstanding Company Common Stock") or (y) the combined voting power of the
      --------------------------------
then-outstanding voting securities of the Company entitled to vote generally in
the election of directors (the "Outstanding Company Voting Securities");
                                -------------------------------------
provided, however, that, for purposes of this subsection (i), the following
--------  -------
acquisitions shall not constitute a Change of Control:  (A) any acquisition
directly from the Company, (B) any acquisition by the Company, (C) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliated Company, or (D) any acquisition by
any corporation pursuant to a transaction that complies with clauses (A), (B),
and (C) of paragraph (iii) of this definition of Change of Control;

              (ii) Individuals who, as of the Effective Date, constitute the
Board

                                      -2-
<PAGE>

(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 Effective Date whose election, or nomination for election by
the Company'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;

          (iii)  Consummation of a reorganization, merger, consolidation or sale
or other disposition of all or substantially all of the assets of the Company 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 the Company or all or substantially all of the Company'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 the Company or such corporation resulting from such Business
Combination) beneficially owns, directly or indirectly, 20% or more of,
respectively, the then-outstanding shares of common stock of the corporation
resulting from such Business Combination or the combined voting power of the
then-outstanding voting securities of such corporation, except to the extent
that such ownership existed prior to the Business Combination, and (C) at least
a majority of the members of the board of directors of the corporation resulting
from such Business Combination were members of the Incumbent Board at the time
of the execution of the initial agreement or of the action of the Board
providing for such Business Combination; or

          (iv)   Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

     (f)  Code.  The Internal Revenue Code of 1986, as amended from time to
          ----
time.

     (g)  Committee.  The Human Resources Committee of the Board.
          ---------

                                      -3-
<PAGE>

          (h) Company.  Carpenter Technology Corporation and any successor or
              -------
assignee to the business or assets which becomes bound by this Plan by reason of
Article V.

          (i) Date of Termination.  The date on which a Participant ceases to be
              -------------------
an Employee of an Employer.

          (j) Disability.  A condition such that the Participant has terminated
              ----------
employment with the Participant's Employer with a qualifying disability and has
immediately begun receiving benefits from a long-term disability plan of the
Company or any Employer.

          (k)  Effective Date.  April 26, 2001.
               --------------

          (l) Employee.  A full-time employee of an Employer.
              --------

          (m) Employer.  The Company or any Subsidiary (or any parent
              --------
corporation of the Company or any of such parent corporation's subsidiaries) by
which a Participant is employed.

          (n) ERISA.  The Employee Retirement Income Security Act of 1974, as
              -----
amended from time to time.

          (o) Good Reason.  With respect to any Participant, without such
              -----------
Participant's written consent:  (i) any reduction in the Participant's Annual
Salary or Target Annual Bonus opportunity, as in effect during the 120-day
period immediately preceding the Change of Control (or as such amounts may be
increased from time to time), other than as a result of an isolated and
inadvertent action not taken in bad faith and which is remedied by the Employer
promptly after receipt of notice thereof given by the Participant; (ii) the
Employer requiring the Participant to relocate his or her principal place of
business to a location which is more than 35 miles from his or her previous
principal place of business; (iii) the assignment to the Participant of any
duties inconsistent in any material and adverse respect with the duties assigned
to the Participant during the 120-day period immediately prior to a Change of
Control, other than an isolated, insubstantial and inadvertent action that is
not taken in bad faith and is remedied by the Employer promptly after receipt of
notice thereof from the Participant; (iv) any material reduction in benefits of
the Participant, as in effect during the 120-day period immediately preceding
the Change of Control, other than as a result of an isolated and inadvertent
action not taken in bad faith and which is remedied by the Employer promptly
after receipt of notice thereof given by the Participant; provided, however,
                                                          --------  -------
that no material reduction shall be deemed to have occurred following a Change
of Control if the benefits provided to the Participant are (A) reasonably
equivalent to the benefits provided to similarly situated employees of the
company resulting from a Business Combination and its subsidiaries, and (B)
comparable to the

                                      -4-
<PAGE>

benefits provided to the Participant immediately prior to the Change of Control;
(v) any purported termination of the Plan otherwise than as expressly permitted
by the Plan; or (vi) any failure by the Employer to comply with and satisfy
Article VI of the Plan.

          (p) Participant.  Any individual whose employment is classified as job
              -----------
class 19 or above and any other individual employed by the Company or any of its
Affiliated Companies in an equivalent position who is designated as a
Participant by the Chief Executive Officer of the Company; provided, however,
                                                           --------  -------
that no individual who is a party to a separately executed change of control or
similar agreement with the Company or any of its Affiliated Companies entered
into prior to a Change of Control shall be a Participant so long as such
agreement remains in force.  Each individual who is a Participant immediately
prior to a Change of Control shall remain a Participant at least until the
second anniversary of the Change of Control.  Notwithstanding the foregoing,
individuals employed primarily outside of the United States are not eligible to
be Participants.

          (q) Plan.  Carpenter Technology Corporation Change of Control
              ----
Severance Plan.

          (r) Separation Benefits.  The benefits described in Section 4.2 that
              -------------------
are provided to qualifying Participants under the Plan.

          (s) Subsidiary.  Any corporation in which the Company, directly or
              ----------
indirectly, holds a majority of the voting power of such corporation's
outstanding shares of capital stock.

          (t) Target Annual Bonus.  The Participant's target bonus under the
              -------------------
Company's annual incentive plans for the fiscal year in which such Participant's
Date of Termination occurs (or, if no target bonus has been set for such fiscal
year, the Participant's target bonus for the immediately preceding fiscal year).

                                  ARTICLE III
                                  ELIGIBILITY
                                  -----------

          A Participant shall cease to be a Participant in the Plan only as a
result of an amendment or termination of the Plan complying with Article VI of
the Plan, or when the Participant ceases to be an Employee of any Employer,
unless, at the time the Participant ceases to be an Employee, such Participant
is entitled to payment of a Separation Benefit as provided in the Plan.  A
Participant entitled to payment of a Separation Benefit or any other amounts
under the Plan shall remain a Participant in the Plan until the full amount of
the Separation Benefit and any other amounts payable under the Plan have been
paid to the Participant.

                                      -5-
<PAGE>

                                   ARTICLE IV
                              SEPARATION BENEFITS
                              -------------------

          4.1  Terminations of Employment Which Give Rise to Separation Benefits
               -----------------------------------------------------------------
Under This Plan.  A Participant shall be entitled to Separation Benefits as set
---------------
forth in Section 4.2 below if, at any time during the two-year period
immediately following a Change of Control, the Participant's employment is
terminated (i) by the Employer for any reason other than Cause, death, or
Disability or (ii) by the Participant, within 120 days after the Participant has
knowledge of the occurrence of Good Reason.

          4.2  Separation Benefits.
               -------------------

          (a)  If a Participant's employment is terminated in circumstances
entitling such participant to Separation Benefits pursuant to Section 4.1, the
Company shall provide to such Participant, within ten days following the Date of
Termination, a lump sum cash payment as set forth in subsection (b) below, and
shall provide to the Participant the continued benefits and outplacement as set
forth in subsections (b), (c) and (d) below.  For purposes of determining the
benefits set forth in subsection (b), if the termination of the Participant's
employment is for Good Reason based upon a reduction of the Participant's Annual
Salary, opportunity to earn Target Annual Bonuses, or other compensation or
employee benefits, such reduction shall be ignored.

          (b)  The cash lump sum referred to in Section 4.2(a) shall be the
aggregate of the amounts set forth in clauses (i), (ii) and (iii):

               (i)   the sum of (A) any portion of the Participant's Annual
     Salary earned through the Date of Termination that was not previously paid
     and (B) any compensation previously deferred by the Participant (together
     with any accrued interest or earnings thereon) and any accrued vacation
     pay, in each case to the extent not theretofore paid and in full
     satisfaction of the rights of the Participant thereto;

               (ii)  an amount equal to one times the Participant's Annual
     Salary;

     and

               (iii) an amount equal to one times the Participant's Target
Annual Bonus.

          (c)  The Company shall at its sole expense provide the Participant
with reasonable outplacement services, at a cost not to exceed $20,000, during
the one-year period following the Participant's Date of Termination. The
Participant shall not, however, be entitled to any payment in lieu of accepting
outplacement assistance services.

                                      -6-
<PAGE>

          (d)  The Participant (and eligible family members) shall be eligible
for participation in and shall receive all benefits under any medical and dental
plan, plan, program, policy, practice, contract or agreement of the Company and
its Affiliated Companies for which the Participant was eligible prior to the
Change of Control, on terms no less favorable than those applicable to the
Participant prior to the Participant's Date of Termination, for the six months
immediately following the Participant's Date of Termination; provided, however,
                                                             --------  -------
that during any period when the Participant becomes reemployed with another
employer and is eligible to receive any such benefits under another employer-
provided plan, the medical and dental benefits provided by the Company and the
Affiliated Companies described herein shall be secondary to those provided under
such other plan during such period of eligibility.

          4.3  Other Benefits Payable.  To the extent not theretofore paid or
               ----------------------
provided, the Company shall timely pay or provide (or cause to be paid or
provided) to a Participant entitled to the Separation Benefits, any amounts or
benefits required to be paid or provided to the Participant, or which the
Participant is eligible to receive, under the General Retirement Plan for
Employees of Carpenter Technology Corporation (the "GRP"), and the Separation
                                                    ---
Benefits shall be reduced, dollar for dollar (but not below zero), by any
amounts received by the Participant pursuant to the GRP.  Any other severance
pay or pay in lieu of notice required to be paid to such Participant under
applicable law or under any other severance pay plan or policy of the Company or
any Employer, including, without limitation, under the Severance Pay Plan for
Salaried Employees of Carpenter Technology Corporation (but excluding the GRP)
shall be reduced, dollar for dollar (but not below zero), by the Separation
Benefits.  The Separation Benefits shall in no event affect a Participant's
eligibility for or entitlement to benefits under the GRP or any other qualified
or nonqualifed retirement or pension benefit or welfare or fringe benefit plan,
program, policy, practice, contract or agreement of the Company and its
Affiliated Companies.

          4.4  Certain Reduction of Payments by the Company.
               --------------------------------------------

          (a)  Reduction of Certain Payments.  For purposes of this Section 4.4:
               -----------------------------
(i) a "Payment" shall mean any payment or distribution in the nature of
       -------
compensation to or for the benefit of the Participant, whether paid or payable
pursuant to this Plan or otherwise; (ii) "Plan Payment" shall mean a Payment
                                          ------------
paid or payable pursuant to this Plan (disregarding this Section 4.4); (iii)
"Present Value" shall mean such value determined in accordance with Sections
--------------
280G(b)(2)(A)(ii) and 280G(d)(4) of the Code; and (iv) "Reduced Amount" shall
                                                        --------------
mean an amount expressed in Present Value that maximizes the aggregate Present
Value of Plan Payments without causing any Payment to be nondeductible by the
Company or Employer because of Section 280G of the Code.

          (b)  Anything in this Plan to the contrary notwithstanding, in the
event PricewaterhouseCoopers LLP or such other accounting firm retained by the
Company

                                      -7-
<PAGE>

to perform its annual audit (the "Accounting Firm") shall determine that
                                  ---------------
receipt of all Payments would subject the Participant to tax under Section 4999
of the Code, the aggregate Plan Payments shall be reduced (but not below zero)
to meet the definition of Reduced Amount.

          (c) If the Accounting Firm determines that aggregate Plan Payments
should be reduced to the Reduced Amount, the Company shall promptly give the
Participant notice to that effect and a copy of the detailed calculation
thereof, and the Participant may then elect, in his or her sole discretion,
which and how much of the Plan Payments shall be eliminated or reduced (as long
as after such election the Present Value of the aggregate Plan Payments equals
the Reduced Amount), and shall advise the Company in writing of his or her
election within 30 days of his or her receipt of notice.  If no such election is
made by the Participant within such 30-day period, the Company may elect which
of such Plan Payments shall be eliminated or reduced (as long as after such
election the Present Value of the aggregate Plan Payments equals the Reduced
Amount) and shall notify the Participant promptly of such election.  All
determinations made by the Accounting Firm under this Section shall be binding
upon the Company and the Participant and shall be made within 60 days of a
termination of employment of the Participant.  As promptly as practicable
following such determination, the Company shall pay to or distribute for the
benefit of the Participant such Plan Payments as are then due to the Participant
under this Plan and shall promptly pay to or distribute for the benefit of the
Participant in the future such Plan Payments as become due to the Participant
under this Plan.

          (d) As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that amounts will have been paid or distributed by the
Company to or for the benefit of the Participant pursuant to this Plan which
should not have been so paid or distributed ("Overpayment") or that additional
                                              -----------
amounts which will have not been paid or distributed by the Company to or for
the benefit of the Participant pursuant to this Plan could have been so paid or
distributed ("Underpayment"), in each case, consistent with the calculation of
              ------------
the Reduced Amount hereunder.  In the event that the Accounting Firm, based upon
the assertion of a deficiency by the Internal Revenue Service against either the
Company or the Participant which the Accounting Firm believes has a high
probability of success determines that an Overpayment has been made, any such
Overpayment paid or distributed by the Company to or for the benefit of the
Participant shall be treated for all purposes as a loan to the Participant which
the Participant shall repay to the Company together with interest at the
applicable federal rate provided for in Section 7872(f)(2) of the Code;
provided, however, that no such loan shall be deemed to have been made and no
--------  -------
amount shall be payable by the Participant to the Company if and to the extent
such deemed loan and payment would not either reduce the amount on which the
Participant is subject to tax under Section 1 and Section 4999 of the Code or
generate a refund of such taxes.  In the event that the Accounting Firm, based
upon

                                      -8-
<PAGE>

controlling precedent or substantial authority, determines that an Underpayment
has occurred, any such Underpayment shall be promptly paid by the Company to or
for the benefit of the Participant together with interest at the applicable
federal rate provided for in Section 7872(f)(2) of the Code.

          (e)  All fees and expenses of the Accounting Firm in implementing the
provisions of this Section 4.4 shall be borne by the Company.

                                   ARTICLE V
                              SUCCESSOR TO COMPANY
                              --------------------

          5.1  This Plan shall bind any successor of the Company, its assets or
its businesses (whether direct or indirect, by purchase, merger, consolidation
or otherwise), in the same manner and to the same extent that the Company would
be obligated under this Plan if no succession had taken place.

          5.2  In the case of any transaction in which a successor would not by
the foregoing provision or by operation of law be bound by this Plan, the
Company shall require such successor expressly and unconditionally to assume and
agree to perform the Company's obligations under this Plan, in the same manner
and to the same extent that the Company would be required to perform if no such
succession had taken place.

                                   ARTICLE VI
                      DURATION, AMENDMENT AND TERMINATION
                      -----------------------------------

          6.1  Duration of Plan.  If a Change of Control has not occurred and
               ----------------
the Board does not have knowledge of an event that could reasonably be expected
to constitute a Change of Control, this Plan may be terminated by resolution
adopted by the Board; provided that the Participants are given written notice of
                      --------
such termination three years in advance of such termination.  If a Change of
Control occurs while this Plan is in effect, this Plan shall continue in full
force and effect for at least two years following such Change of Control, and
shall not terminate or expire until after all Participants who become entitled
to any payments hereunder shall have received such payments in full.

          6.2  Amendment or Termination.  The Board may amend or terminate this
               ------------------------
Plan; provided, that this Plan may not be terminated or amended in a manner
      --------
adverse to Participants prior to the third anniversary of the date on which
notice of such amendment or termination is provided to the Participants or
during the two-year period following a Change of Control.

          6.3  Procedure for Extension, Amendment or Termination.  Any
               -------------------------------------------------
extension, amendment or termination of this Plan by the Board in accordance with

                                      -9-
<PAGE>

the foregoing shall be made by action of the Board in accordance with the
Company's charter and by-laws and applicable law.

                                  ARTICLE VII
                                 MISCELLANEOUS
                                 -------------

          7.1  Full Settlement.  The Company's obligation to make the payments
               ---------------
provided for under this Plan and otherwise to perform its obligations hereunder
shall not be affected by any set-off, counterclaim, recoupment, defense or other
claim, right or action which the Company may have against a Participant or
others.  In no event shall a Participant be obligated to seek other employment
or take any other action by way of mitigation of the amounts payable to the
Participant under any of the provisions of this Plan and such amounts shall not
be reduced whether or not the Participant obtains other employment.  The Company
agrees to pay, to the full extent permitted by law, all legal fees and expenses
which a Participant may reasonably incur as a result of any contest by the
Company, the Participant or others of the validity or enforceability of, or
liability under, any provision of this Plan or any guarantee of performance
thereof (including as a result of any contest by the Participant about the
amount of any payment pursuant to this Plan), provided, that such reimbursement
                                              --------
shall be made only if the Participant prevails on substantially all of the
issues in connection with such dispute.  Such reimbursement shall be made as
soon as practicable following the resolution of such contest or dispute (whether
or not appealed).

          7.2  Employment Status.  This Plan does not constitute a contract of
               -----------------
employment or impose on the Participant or the Participant's Employer any
obligation for the Participant to remain an Employee or change the status of the
Participant's employment or the policies of the Company and its Subsidiaries
regarding termination of employment.  For purposes of this Plan, employment with
any of the Company's Subsidiaries or any parent corporation of the Company or
any of its subsidiaries shall be treated as continued employment with the
Company.

          7.3  Confidential Information.  Each Participant shall hold in a
               ------------------------
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its Affiliated
Companies, and their respective businesses, which shall have been obtained by
the Participant during the Participant's employment by the Company or any of its
Affiliated Companies and which shall not be or become public knowledge (other
than by acts by the Participant or representatives of the Participant in
violation of this Plan).  After termination of a Participant's employment with
the Company, the Participant shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the Company
and those designated by it.  In no event shall an asserted violation of the
provisions of this Section 7.3 constitute a basis for deferring or withholding
any amounts otherwise payable under this Plan.

                                     -10-
<PAGE>

          7.4  Named Fiduciary; Administration.  The Company is the named
               -------------------------------
fiduciary of the Plan, and shall administer the Plan, acting through the Pension
Board of the GRP (the "Administrative Committee").
                       ------------------------

          7.5  Claim Procedure.  If an Employee or former Employee makes a
               ---------------
written request alleging a right to receive benefits under this Plan or alleging
a right to receive an adjustment in benefits being paid under the Plan, the
Company shall treat it as a claim for benefit.  All claims for benefit under the
Plan shall be sent to the Administrative Committee and must be received within
30 days after termination of employment.  If the Company determines that any
individual who has claimed a right to receive benefits, or different benefits,
under the Plan is not entitled to receive all or any part of the benefits
claimed, it will inform the claimant in writing of its determination and the
reasons therefor in a manner calculated to be understood by the claimant.  The
notice will be sent within 60 days of the claim.  The notice shall make specific
reference to the reasons for denial and pertinent Plan provisions on which the
denial is based, and describe any additional material or information necessary
for the claim to succeed and a description of why it is necessary.  Such notice
shall, in addition, inform the claimant what procedure the claimant should
follow to take advantage of the review procedures set forth below in the event
the claimant desires to contest the denial of the claim.  The claimant may
within 90 days thereafter submit in writing to the Company a notice that the
claimant contests the denial of his or her claim by the Company and desires a
further review.  The Administrative Committee shall within 60 days thereafter
review the claim and authorize the claimant to appear personally and review
pertinent documents and submit issues and comments relating to the claim to the
persons responsible for making the determination on behalf of the Company.  The
Company will render its final decision with specific reasons therefor and in a
manner calculated to be understood by the claimant, and will transmit it to the
claimant within 60 days of the written request for review.  If the Company fails
to respond to a claim filed in accordance with the foregoing within 60 days, the
Company shall be deemed to have denied the claim.  This Section 7.5 shall not
serve to prohibit any Participant from bringing an action in a court of
competent jurisdiction to enforce his or her rights under the Plan after
satisfaction of the foregoing procedures.

          7.6  Unfunded Plan Status.  All payments pursuant to the Plan shall be
               --------------------
made from the general funds of the Company and no special or separate fund shall
be established or other segregation of assets made to assure payment.  No
Participant or other person shall have under any circumstances any interest in
any particular property or assets of the Company as a result of participating in
the Plan.  Notwithstanding the foregoing, the Company may (but shall not be
obligated to) create one or more grantor trusts, the assets of which are subject
to the claims of the Company's creditors, to assist it in accumulating funds to
pay its obligations under the Plan.

          7.7  Validity and Severability.  The invalidity or unenforceability of
               -------------------------
any provision of the Plan shall not affect the validity or enforceability of any
other provision

                                     -11-
<PAGE>

of the Plan, which shall remain in full force and effect, and any prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

          7.8  Governing Law.  The validity, interpretation, construction and
               -------------
performance of the Plan shall in all respects be governed by the laws of the
State of Delaware without reference to principles of conflict of law, except to
the extent pre-empted by Federal law.

          7.9  Top-Hat Plan.  For purposes of ERISA, the Plan is intended to
               ------------
constitute a "top-hat" plan, as described in Sections 201(2), 301(a)(3), and
401(a)(1) of ERISA and the regulations promulgated thereunder.

                                     -12-<PAGE>

                                              EXHIBIT 10N

                       SPECIAL SEVERANCE AGREEMENT [3x]

          AGREEMENT, dated as of the [____] day of [___________],
[_____________] (this "Agreement"), by and between Carpenter Technology
Corporation, a Delaware corporation (the "Company"), and [_________] (the
"Executive").

          WHEREAS, the Board of Directors of the Company (the "Board"), has
determined that it is in the best interests of the Company and its stockholders
to assure that the Company will have the continued dedication of the Executive,
notwithstanding the possibility, threat or occurrence of a Change of Control (as
defined herein). The Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and to encourage the
Executive's full attention and dedication to the current Company and in the
event of any threatened or pending Change of Control, and to provide the
Executive with compensation and benefits arrangements upon a Change of Control
that ensure that the compensation and benefits expectations of the Executive
will be satisfied and that are competitive with those of other corporations.
Therefore, in order to accomplish these objectives, the Board has caused the
Company to enter into this Agreement.

          NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

          Section 1.  Certain Definitions. (a) "Effective Date" means the first
                      -------------------
date during the Change of Control Period (as defined herein) on which a Change
of Control occurs.  Notwithstanding anything in this Agreement to the contrary,
if a Change of Control occurs and if the Executive's employment with the Company
is terminated prior to the date on which the Change of Control occurs, and if it
is reasonably demonstrated by the Executive that such termination of employment
(1) was at the request of a third party that has taken steps reasonably
calculated to effect a Change of Control or (2) otherwise arose in connection
with or anticipation of a Change of Control, then "Effective Date" means the
date immediately prior to the date of such termination of employment.

          (b) "Change of Control Period" means the period commencing on the date
hereof and ending on the third anniversary of the date hereof; provided,
however, that, commencing on the date one year after the date hereof, and on
each annual anniversary of such date (such date and each annual anniversary
thereof, the "Renewal Date"), unless previously terminated, the Change of
Control Period shall be automatically extended so as to terminate three years
from such Renewal Date, unless, at least 60 days prior to the Renewal Date, the
Company shall give notice to the Executive that the Change of Control Period
shall not be so extended.

          (c) "Affiliated Company" means any company controlled by, controlling
or under common control with the Company.

          (d)  "Change of Control" means:
<PAGE>

          (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 the Company (the
"Outstanding Company Common Stock") or (B) the combined voting power of the
then-outstanding voting securities of the Company entitled to vote generally
in the election of directors (the "Outstanding Company Voting Securities");
provided, however, that, for purposes of this Section 1(d), the following
acquisitions shall not constitute a Change of Control: (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any
acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any Affiliated Company or (iv) any acquisition by
any corporation pursuant to a transaction that complies with Sections
1(d)(3)(A), 1(d)(3)(B) and 1(d)(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 the Company'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 the Company 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 the Company or all or substantially all of the Company'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 the Company 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

                                       2
<PAGE>

securities of such corporation, except to the extent that such ownership existed
prior to the Business Combination, and (C) at least a majority of the members of
the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of
the initial agreement or of the action of the Board providing for such Business
Combination; or

          (4) Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

          Section 2.  Employment Period. The Company hereby agrees to continue
                      -----------------
the Executive in its employ, subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
third anniversary of the Effective Date (the "Employment Period").  The
Employment Period shall terminate upon the Executive's termination of employment
for any reason.

          Section 3.  Terms of Employment. (a)  Position and Duties.  (1)
                      -------------------       -------------------
During the Employment Period, (A) the Executive's position (including status,
offices, titles and reporting requirements), authority, duties and
responsibilities shall be at least commensurate in all material respects with
the most significant of those held, exercised and assigned at any time during
the 120-day period immediately preceding the Effective Date and (B) the
Executive's services shall be performed at the office where the Executive was
employed immediately preceding the Effective Date or at any other location less
than 35 miles from such office.

          (2) During the Employment Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive agrees
to devote reasonable attention and time during normal business hours to the
business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Executive hereunder, to use the Executive's
reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period, it shall not be a violation of
this Agreement for the Executive to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions and (C) manage personal investments, so long
as such activities do not significantly interfere with the performance of the
Executive's responsibilities as an employee of the Company in accordance with
this Agreement. It is expressly understood and agreed that, to the extent that
any such activities have been conducted by the Executive prior to the Effective
Date, the continued conduct of such activities (or the conduct of activities
similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive's
responsibilities to the Company.

          (b) Compensation. (1)  Base Salary. During the Employment Period, the
              ------------       -----------
Executive shall receive an annual base salary (the "Annual Base Salary") at
an annual rate at least equal to 12 times the highest monthly base salary paid
or payable, including any base salary that has been earned but deferred, to the
Executive by the Company and the Affiliated Companies in respect of the 12-month
period immediately preceding the month in which the Effective Date occurs.  The
Annual Base Salary shall

                                       3
<PAGE>

be paid at such intervals as the Company pays executive salaries generally.
During the Employment Period, the Annual Base Salary shall be reviewed at least
annually, beginning no more than 12 months after the last salary increase
awarded to the Executive prior to the Effective Date. Any increase in the Annual
Base Salary shall not serve to limit or reduce any other obligation to the
Executive under this Agreement. The Annual Base Salary shall not be reduced
after any such increase and the term "Annual Base Salary" shall refer to the
Annual Base Salary as so increased.

          (2) Annual Bonus. In addition to the Annual Base Salary, the Executive
              ------------
shall be awarded, for each fiscal year ending during the Employment Period, an
annual bonus (the "Annual Bonus") in cash at least equal to the Annual Target
Bonus, where the "Annual Target Bonus" is an amount equal to the Annual Base
Salary times the Executive Annual Compensation Plan Total Target Percentage (as
most recently approved by the Company's Board of Directors or Human Resources
Committee for the year in which the Effective Date occurs), or any comparable
bonus under any predecessor or successor plan. Each such Annual Bonus shall be
paid no later than the end of the third month of the fiscal year next following
the fiscal year for which the Annual Bonus is awarded, unless the Executive
shall elect to defer the receipt of such Annual Bonus.

          (3) Incentive, Savings and Retirement Plans.  During the Employment
              ---------------------------------------
Period, the Executive shall be entitled to participate in all cash incentive,
equity incentive, savings and retirement plans, practices, policies, and
programs applicable generally to other peer executives of the Company and the
Affiliated Companies, but in no event shall such plans, practices, policies and
programs provide the Executive with incentive opportunities (measured with
respect to both regular and special incentive opportunities, to the extent, if
any, that such distinction is applicable), savings opportunities and retirement
benefit opportunities, in each case, less favorable, in the aggregate, than the
most favorable of those provided by the Company and the Affiliated Companies for
the Executive under such plans, practices, policies and programs as in effect at
any time during the 120-day period immediately preceding the Effective Date or,
if more favorable to the Executive, those provided generally at any time after
the Effective Date to other peer executives of the Company and the Affiliated
Companies.

          (4) Welfare Benefit Plans.  During the Employment Period, the
              ---------------------
Executive and/or the Executive's family, as the case may be, shall be eligible
for participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and the Affiliated
Companies (including, without limitation, medical, prescription, dental,
disability, employee life, group life, accidental death and travel accident
insurance plans and programs) to the extent applicable generally to other peer
executives of the Company and the Affiliated Companies, but in no event shall
such plans, practices, policies and programs provide the Executive with benefits
that are less favorable, in the aggregate, than the most favorable of such
plans, practices, policies and programs in effect for the Executive at any time
during the 120-day period immediately preceding the Effective Date or, if more

                                       4
<PAGE>

favorable to the Executive, those provided generally at any time after the
Effective Date to other peer executives of the Company and the Affiliated
Companies.

          (5) Expenses. During the Employment Period, the Executive shall be
              --------
entitled to receive prompt reimbursement for all reasonable expenses incurred by
the Executive in accordance with the most favorable policies, practices and
procedures of the Company and the Affiliated Companies in effect for the
Executive at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive, as in effect generally at
any time thereafter with respect to other peer executives of the Company and the
Affiliated Companies.

          (6) Fringe Benefits. During the Employment Period, the Executive
              ---------------
shall be entitled to fringe benefits, including, without limitation, tax and
financial planning services, payment of club dues, and, if applicable, use of an
automobile and payment of related expenses, in accordance with the most
favorable plans, practices, programs and policies of the Company and the
Affiliated Companies in effect for the Executive at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the
Executive, as in effect generally at any time thereafter with respect to other
peer executives of the Company and the Affiliated Companies.

          (7) Office and Support Staff. During the Employment Period, the
              ------------------------
Executive shall be entitled to an office or offices of a size and with
furnishings and other appointments, and to exclusive personal secretarial and
other assistance, at least equal to the most favorable of the foregoing provided
to the Executive by the Company and the Affiliated Companies at any time during
the 120-day period immediately preceding the Effective Date or, if more
favorable to the Executive, as provided generally at any time thereafter with
respect to other peer executives of the Company and the Affiliated Companies.

          (8) Vacation. During the Employment Period, the Executive shall be
              --------
entitled to paid vacation in accordance with the most favorable plans, policies,
programs and practices of the Company and the Affiliated Companies as in effect
for the Executive at any time during the 120-day period immediately preceding
the Effective Date or, if more favorable to the Executive, as in effect
generally at any time thereafter with respect to other peer executives of the
Company and the Affiliated Companies.

          Section 4. Termination of Employment. (a)  Death or Disability. The
                     -------------------------       -------------------
Executive's employment shall terminate automatically if the Executive dies
during the Employment Period.  If the Company determines in good faith that the
Disability (as defined herein) of the Executive has occurred during the
Employment Period (pursuant to the definition of "Disability"), it may give to
the Executive written notice in accordance with Section 11(b) of its intention
to terminate the Executive's employment.  In such event, the Executive's
employment with the Company shall terminate effective on the 30th day after
receipt of such notice by the Executive (the "Disability Effective Date"),
provided that, within the 30 days after such receipt, the Executive shall not
have returned to full-time performance of the Executive's duties.  "Disability"
means the absence of the Executive from the Executive's duties with the Company
on a full-time

                                       5
<PAGE>

basis for 180 consecutive business days as a result of incapacity due to mental
or physical illness that is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative.

          (b) Cause. The Company may terminate the Executive's employment during
              -----
the Employment Period for Cause. "Cause" means:

          (1) the willful and continued failure of the Executive to perform
     substantially the Executive's duties (as contemplated by Section
     3(a)(1)(A)) with the Company or any Affiliated Company (other than any such
     failure resulting from incapacity due to physical or mental illness or
     following the Executive's delivery of a Notice of Termination for Good
     Reason), after a written demand for substantial performance is delivered to
     the Executive by the Board or the Chief Executive Officer of the Company
     that specifically identifies the manner in which the Board or the Chief
     Executive Officer of the Company believes that the Executive has not
     substantially performed the Executive's duties, or

          (2) the willful engaging by the Executive in illegal conduct or gross
     misconduct that is materially and demonstrably injurious to the Company.

For purposes of this Section 4(b), no act, or failure to act, on the part of the
Executive shall be considered "willful" unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the
Executive's action or omission was in the best interests of the Company.  Any
act, or failure to act, based upon authority given pursuant to a resolution duly
adopted by the Board or upon the instructions of the Chief Executive Officer of
the Company or a senior officer of the Company or based upon the advice of
counsel for the Company shall be conclusively presumed to be done, or omitted to
be done, by the Executive in good faith and in the best interests of the
Company.  The cessation of employment of the Executive shall not be deemed to be
for Cause unless and until there shall have been delivered to the Executive a
copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board (excluding the Executive,
if the Executive is a member of the Board) at a meeting of the Board called and
held for such purpose (after reasonable notice is provided to the Executive and
the Executive is given an opportunity, together with counsel for the Executive,
to be heard before the Board), finding that, in the good faith opinion of the
Board, the Executive is guilty of the conduct described in Section 4(b)(1) or
4(b)(2), and specifying the particulars thereof in detail.

          (c) Good Reason. The Executive's employment may be terminated by the
              -----------
Executive for Good Reason or by the Executive voluntarily without Good Reason.
"Good Reason" means:

          (1) the assignment to the Executive of any duties inconsistent in any
     respect with the Executive's position (including status, offices, titles
     and reporting requirements), authority, duties or responsibilities as
     contemplated by Section 3(a), or any other diminution in such position,
     authority, duties or responsibilities

                                       6
<PAGE>

     (whether or not occurring solely as a result of the Company's ceasing to be
     a publicly traded entity), excluding for this purpose an isolated,
     insubstantial and inadvertent action not taken in bad faith and that is
     remedied by the Company promptly after receipt of notice thereof given by
     the Executive;

          (2) any failure by the Company to comply with any of the provisions of
     Section 3(b), other than an isolated, insubstantial and inadvertent failure
     not occurring in bad faith and that is remedied by the Company promptly
     after receipt of notice thereof given by the Executive;

          (3) the Company's requiring the Executive (i) to be based at any
     office or location other than as provided in Section 3(a)(1)(B), (ii) to be
     based at a location other than the principal executive offices of the
     Company if the Executive was employed at such location immediately
     preceding the Effective Date, or (iii) to travel on Company business to a
     substantially greater extent than required immediately prior to the
     Effective Date;

          (4) any purported termination by the Company of the Executive's
     employment otherwise than as expressly permitted by this Agreement; or

          (5) any failure by the Company to comply with and satisfy Section
     10(c).

For purposes of this Section 4(c), any good faith determination of Good Reason
made by the Executive shall be conclusive.  Anything in this Agreement to the
contrary notwithstanding, a termination by the Executive for any reason pursuant
to a Notice of Termination given during the 30-day period immediately following
the first anniversary of the Effective Date shall be deemed to be a termination
for Good Reason for all purposes of this Agreement.  The Executive's mental or
physical incapacity following the occurrence of an event described above in
clauses (1) through (5) shall not affect the Executive's ability to terminate
employment for Good Reason.

          (d) Notice of Termination.  Any termination by the Company for Cause,
              ---------------------
or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 11(b).
"Notice of Termination" means a written notice that (1) indicates the specific
termination provision in this Agreement relied upon, (2) to the extent
applicable, sets forth in reasonable detail the facts and circumstances claimed
to provide a basis for termination of the Executive's employment under the
provision so indicated, and (3) if the Date of Termination (as defined herein)
is other than the date of receipt of such notice, specifies the Date of
Termination (which Date of Termination shall be not more than 30 days after the
giving of such notice).  The failure by the Executive or the Company to set
forth in the Notice of Termination any fact or circumstance that contributes to
a showing of Good Reason or Cause shall not waive any right of the Executive or
the Company, respectively, hereunder or preclude the Executive or the Company,
respectively, from asserting such fact or circumstance in enforcing the
Executive's or the Company's respective rights hereunder.

                                       7
<PAGE>

          (e) Date of Termination. "Date of Termination" means (1) if the
              -------------------
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination or
any later date specified in the Notice of Termination, (which date shall not be
more than 30 days after the giving of such notice), as the case may be, (2) if
the Executive's employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be the date on which the Company
notifies the Executive of such termination, and (3) if the Executive's
employment is terminated by reason of death or Disability, the Date of
Termination shall be the date of death of the Executive or the Disability
Effective Date, as the case may be.

          Section 5.  Obligations of the Company upon Termination. (a)  Good
                      -------------------------------------------       ----
Reason; Other Than for Cause, Death or Disability. If, during the Employment
-------------------------------------------------
Period, the Company terminates the Executive's employment other than for Cause
or Disability or the Executive terminates employment for Good Reason:

          (1) The Company shall pay to the Executive, in a lump sum in cash
     within 10 days after the Date of Termination, the aggregate of the
     following amounts:

              (A)  the sum of (i) the Executive's Annual Base Salary through the
          Date of Termination to the extent not theretofore paid, (ii) the
          Annual Target Bonus times a fraction, the numerator of which is the
          number of days in the current fiscal year through the Date of
          Termination and the denominator of which is 365, and (iii) any
          compensation previously deferred by the Executive (together with any
          accrued interest or earnings thereon) and any accrued vacation pay, in
          each case, to the extent not theretofore paid (the sum of the amounts
          described in subclauses (i), (ii) and (iii), the "Accrued
          Obligations");

              (B)  the amount equal to three times the sum of (x) the
          Executive's Annual Base Salary and (y) the Annual Target Bonus,
          reduced by any lump sum severance amount payable to the Executive
          pursuant to the General Retirement Plan for Employees of Carpenter
          Technology Corporation or any successor thereto (the "GRP"); and

              (C)  an amount equal to the excess of (i) the actuarial equivalent
          of the benefit under the Company's qualified defined benefit
          retirement plan (the "Retirement Plan") (utilizing actuarial
          assumptions no less favorable to the Executive than those in effect
          under the Retirement Plan immediately prior to the Effective Date),
          any excess plan, and any supplemental retirement plan in which the
          Executive participates (collectively, the "SERP") that the Executive
          would receive if the Executive's employment continued for three years
          after the Date of Termination, assuming for this purpose that all
          accrued benefits are fully vested and assuming that the Executive's
          compensation in each of the three years is that required by Sections
          3(b)(1) and 3(b)(2), over (ii) the actuarial equivalent of the
          Ex-

                                       8
<PAGE>

          ecutive's actual benefit (paid or payable), if any, under the
          Retirement Plan and the SERP as of the Date of Termination.

          (2) For three years after the Executive's Date of Termination, or such
     longer period as may be provided by the terms of the appropriate plan,
     program, practice or policy, the Company shall continue benefits to the
     Executive and/or the Executive's family at least equal to those that would
     have been provided to them in accordance with the plans, programs,
     practices and policies described in Section 3(b)(4) or 3(b)(6) (including,
     without limitation, tax and financial planning services to the extent the
     Executive was entitled to such services under Section 3(b)(6)) if the
     Executive's employment had not been terminated or, if more favorable to the
     Executive, as in effect generally at any time thereafter with respect to
     other peer executives of the Company and the Affiliated Companies and their
     families, provided, however, that, if the Executive becomes reemployed with
     another employer and is eligible to receive medical or other welfare
     benefits under another employer provided plan, the medical and other
     welfare benefits described herein shall be secondary to those provided
     under such other plan during such applicable period of eligibility.  For
     purposes of determining eligibility (but not the time of commencement of
     benefits) of the Executive for retiree medical and life insurance benefits,
     the Executive shall be considered to have remained employed until three
     years after the Date of Termination and to have retired on the last day of
     such period.

          (3) To the extent not theretofore paid or provided, the Company shall
     timely pay or provide to the Executive any other amounts or benefits
     required to be paid or provided or that the Executive is eligible to
     receive under any plan, program, policy or practice or contract or
     agreement of the Company and the Affiliated Companies (such other amounts
     and benefits, the "Other Benefits").

          (4) The Company shall at its sole expense provide the Executive with
     reasonable outplacement services, at a cost not to exceed $20,000, during
     the one-year period following the Executive's Date of Termination.  The
     Executive shall not, however, be entitled to any payment in lieu of
     accepting outplacement assistance services.

          (b) Death. If the Executive's employment is terminated by reason of
              -----
the Executive's death during the Employment Period, the Company shall provide
the Executive's estate or beneficiaries with the Accrued Obligations and the
timely payment or delivery of the Other Benefits, and shall have no other
severance obligations under this Agreement.  The Accrued Obligations shall be
paid to the Executive's estate or beneficiary, as applicable, in a lump sum in
cash within 10 days of the Date of Termination.  With respect to the provision
of the Other Benefits, the term "Other Benefits" as utilized in this Section
5(b) shall include, without limitation, and the Executive's estate and/or
beneficiaries shall be entitled to receive, benefits at least equal to the most
favorable benefits provided by the Company and the Affiliated Companies to the
estates and beneficiaries of peer executives of the Company and the Affiliated
Companies under such plans, programs, practices and policies relating to

                                       9
<PAGE>

death benefits, if any, as in effect with respect to other peer executives and
their beneficiaries at any time during the 120-day period immediately preceding
the Effective Date or, if more favorable to the Executive's estate and/or the
Executive's beneficiaries, as in effect on the date of the Executive's death
with respect to other peer executives of the Company and the Affiliated
Companies and their beneficiaries.

          (c) Disability. If the Executive's employment is terminated by reason
              ----------
of the Executive's Disability during the Employment Period, the Company shall
provide the Executive with the Accrued Obligations and the timely payment or
delivery of the Other Benefits, and shall have no other severance obligations
under this Agreement.  The Accrued Obligations shall be paid to the Executive in
a lump sum in cash within 10 days of the Date of Termination.  With respect to
the provision of the Other Benefits, the term "Other Benefits" as utilized in
this Section 6(c) shall include, and the Executive shall be entitled after the
Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and the
Affiliated Companies to disabled executives and/or their families in accordance
with such plans, programs, practices and policies relating to disability, if
any, as in effect generally with respect to other peer executives and their
families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive's
family, as in effect at any time thereafter generally with respect to other peer
executives of the Company and the Affiliated Companies and their families.

          (d) Cause; Other Than for Good Reason. If the Executive's employment
              ---------------------------------
is terminated for Cause during the Employment Period, the Company shall provide
to the Executive (1) the Executive's Annual Base Salary through the Date of
Termination, (2) the amount of any compensation previously deferred by the
Executive, and (3) the Other Benefits, in each case, to the extent theretofore
unpaid, and shall have no other severance obligations under this Agreement.  If
the Executive voluntarily terminates employment during the Employment Period,
excluding a termination for Good Reason, the Company shall provide to the
Executive the Accrued Obligations and the timely payment or delivery of the
Other Benefits, and shall have no other severance obligations under this
Agreement.  In such case, all the Accrued Obligations shall be paid to the
Executive in a lump sum in cash within 10 days of the Date of Termination.

          Section 6. Non-exclusivity of Rights. Nothing in this Agreement shall
                     -------------------------
prevent or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company or the Affiliated Companies
and for which the Executive may qualify, nor, subject to Section 11(f), shall
anything herein limit or otherwise affect such rights as the Executive may have
under any other contract or agreement with the Company or the Affiliated
Companies. Amounts that are vested benefits or that the Executive is otherwise
entitled to receive under any plan, policy, practice or program of or any
contract or agreement with the Company or the Affiliated Companies at or
subsequent to the Date of Termination shall be payable in accordance with such
plan, policy, practice or program or contract or agreement, except as explicitly
modified by this Agreement. Notwithstanding the foregoing, if the Executive
receives

                                       10
<PAGE>

payments and benefits pursuant to Section 5(a) of this Agreement, the Executive
shall not be entitled to other severance pay or benefits under any severance
plan, program or policy of the Company and the Affiliated Companies, unless
otherwise specifically provided therein by an explicit reference to this
Agreement, or provided under the GRP.

          Section 7.  Full Settlement. The Company's obligation to make the
                      ---------------
payments provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense, or other claim, right or action that the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement, and such amounts
shall not be reduced whether or not the Executive obtains other employment
except as set forth in Section 5(a)(2). The Company agrees to pay as incurred
(within 10 days following the Company's receipt of an invoice from the
Executive), to the full extent permitted by law, all legal fees and expenses
that the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof) by the Company, the Executive or others of the validity
or enforceability of, or liability under, any provision of this Agreement or any
guarantee of performance thereof (including as a result of any contest by the
Executive about the amount of any payment pursuant to this Agreement), plus, in
each case, interest on any delayed payment at the applicable federal rate
provided for in Section 7872(f)(2)(A) of the Internal Revenue Code of 1986, as
amended (the "Code").

          Section 8. Certain Additional Payments by the Company.
                     ------------------------------------------

          (a) Anything in this Agreement to the contrary notwithstanding and
except as set forth below, in the event it shall be determined that any Payment
would be subject to the Excise Tax, then the Executive shall be entitled to
receive an additional payment (the "Gross-Up Payment") in an amount such that,
after payment by the Executive of all taxes (and any interest or penalties
imposed with respect to such taxes), including, without limitation, any income
taxes (and any interest and penalties imposed with respect thereto) and Excise
Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.  The
Company's obligation to make Gross-Up Payments under this Section 8 shall not be
conditioned upon the Executive's termination of employment.

          (b) Subject to the provisions of Section 8(c), all determinations
required to be made under this Section 8, including whether and when a Gross-Up
Payment is required, the amount of such Gross-Up Payment and the assumptions to
be utilized in arriving at such determination, shall be made by
PricewaterhouseCoopers LLP, or such other nationally recognized certified public
accounting firm as may be designated by the Executive (the "Accounting Firm").
The Accounting Firm shall provide detailed supporting calculations both to the
Company and the Executive within 15 business days of the receipt of notice from
the Executive that there has been a Payment or such earlier time as is requested
by the Company.  In the event that the Accounting Firm is serving as accountant
or auditor for the individual, entity or group effecting the Change of Control,
the Executive may appoint another nationally recognized accounting firm to

                                       11
<PAGE>

make the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the
Accounting Firm shall be borne solely by the Company. Any Gross-Up Payment, as
determined pursuant to this Section 8, shall be paid by the Company to the
Executive within 5 days of the receipt of the Accounting Firm's determination.
Any determination by the Accounting Firm shall be binding upon the Company and
the Executive. As a result of the uncertainty in the application of Section 4999
of the Code at the time of the initial determination by the Accounting Firm
hereunder, it is possible that Gross-Up Payments that will not have been made by
the Company should have been made (the "Underpayment"), consistent with the
calculations required to be made hereunder. In the event the Company exhausts
its remedies pursuant to Section 8(c) and the Executive thereafter is required
to make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

          (c) The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment.  Such notification shall be given as soon
as practicable, but no later than 30 business days after the Executive is
informed in writing of such claim.  The Executive shall apprise the Company of
the nature of such claim and the date on which such claim is requested to be
paid.  The Executive shall not pay such claim prior to the expiration of the 30-
day period following the date on which the Executive gives such notice to the
Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due).  If the Company notifies the Executive in
writing prior to the expiration of such period that the Company desires to
contest such claim, the Executive shall:

          (1) give the Company any information reasonably requested by the
     Company relating to such claim,

          (2) take such action in connection with contesting such claim as the
     Company shall reasonably request in writing from time to time, including,
     without limitation, accepting legal representation with respect to such
     claim by an attorney reasonably selected by the Company,

          (3) cooperate with the Company in good faith in order effectively to
     contest such claim, and

          (4) permit the Company to participate in any proceedings relating to
     such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest, and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax or income tax (including interest and
penalties) imposed as a result of such representation and payment of costs and
expenses.  Without limitation on the foregoing

                                       12
<PAGE>

provisions of this Section 8(c), the Company shall control all proceedings taken
in connection with such contest, and, at its sole discretion, may pursue or
forgo any and all administrative appeals, proceedings, hearings and conferences
with the applicable taxing authority in respect of such claim and may, at its
sole discretion, either direct the Executive to pay the tax claimed and sue for
a refund or contest the claim in any permissible manner, and the Executive
agrees to prosecute such contest to a determination before any administrative
tribunal, in a court of initial jurisdiction and in one or more appellate
courts, as the Company shall determine; provided, however, that, if the Company
directs the Executive to pay such claim and sue for a refund, the Company shall
advance the amount of such payment to the Executive, on an interest-free basis,
and shall indemnify and hold the Executive harmless, on an after-tax basis, from
any Excise Tax or income tax (including interest or penalties) imposed with
respect to such advance or with respect to any imputed income in connection with
such advance; and provided, further, that any extension of the statute of
limitations relating to payment of taxes for the taxable year of the Executive
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company's control of the
contest shall be limited to issues with respect to which the Gross-Up Payment
would be payable hereunder, and the Executive shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

          (d) If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 8(c), the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of Section 8(c)) promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto).  If, after the receipt by the Executive
of an amount advanced by the Company pursuant to Section 8(c), a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

          (e) Notwithstanding any other provision of this Section 8, the Company
may, in its sole discretion, withhold and pay over to the Internal Revenue
Service or any other applicable taxing authority, for the benefit of the
Executive, all or any portion of the Gross-Up Payment, and the Executive hereby
consents to such withholding.

          (f) Definitions. The following terms shall have the following meanings
              -----------
for purposes of this Section 8.

          (i) "Excise Tax" shall mean the excise tax imposed by Section 4999 of
the Code, together with any interest or penalties imposed with respect to such
excise tax.

                                       13
<PAGE>

          (ii) A "Payment" shall mean any payment or distribution in the nature
of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for
the benefit of the Executive, whether paid or payable pursuant to this Agreement
or otherwise.

          Section 9.  Confidential Information. The Executive shall hold in a
                      ------------------------
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or the Affiliated
Companies, and their respective businesses, which information, knowledge or data
shall have been obtained by the Executive during the Executive's employment by
the Company or the Affiliated Companies and which information, knowledge or data
shall not be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement). After
termination of the Executive's employment with the Company, the Executive shall
not, without the prior written consent of the Company or as may otherwise be
required by law or legal process, communicate or divulge any such information,
knowledge or data to anyone other than the Company and those persons designated
by the Company. In no event shall an asserted violation of the provisions of
this Section 9 constitute a basis for deferring or withholding any amounts
otherwise payable to the Executive under this Agreement.

          Section 10. Successors. (a) This Agreement is personal to the
                      ----------
Executive, and, without the prior written consent of the Company, shall not be
assignable by the Executive other than by will or the laws of descent and
distribution. This Agreement shall inure to the benefit of and be enforceable by
the Executive's legal representatives.

          (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and assigns.  Except as provided in Section
10(c), without the prior written consent of the Executive this Agreement shall
not be assignable by the Company.

          (c) 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 assume
expressly 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.  "Company" means the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid that assumes and agrees to
perform this Agreement by operation of law or otherwise.

          Section 11. Miscellaneous. (a) This Agreement shall be governed by and
                      -------------
construed in accordance with the laws of the State of Delaware without reference
to principles of conflict of laws. The captions of this Agreement are not part
of the provisions hereof and shall have no force or effect. This Agreement may
not be amended or modified other than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

                                       14
<PAGE>

          (b) All notices and other communications hereunder shall be in writing
and shall be given by hand delivery to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

          if to the Executive:

              to the last address listed for the Executive in the Company's
              books and records.

          if to the Company:

              Carpenter Technology Corporation
              1047 North Park Road
              Wyomissing, PA 19610-1339
              Attention: General Counsel

or to such other address as either party shall have furnished to the other in
writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

          (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.

          (d) The Company may withhold from any amounts payable under this
Agreement such United States federal, state or local or foreign taxes as shall
be required to be withheld pursuant to any applicable law or regulation.

          (e) The Executive's or the Company's failure to insist upon strict
compliance with any provision of this Agreement or the failure to assert any
right the Executive or the Company may have hereunder, including, without
limitation, the right of the Executive to terminate employment for Good Reason
pursuant to Sections 4(c)(1) through 4(c)(5), shall not be deemed to be a waiver
of such provision or right or any other provision or right of this Agreement.

          (f) The Executive and the Company acknowledge that, except as may
otherwise be provided under any other written agreement between the Executive
and the Company, the employment of the Executive by the Company is "at will"
and, subject to Section 1(a), prior to the Effective Date, the Executive's
employment may be terminated by either the Executive or the Company at any time
prior to the Effective Date, in which case the Executive shall have no further
rights under this Agreement.  From and after the Effective Date, except as
specifically provided herein, this Agreement shall supersede any other agreement
between the parties with respect to the subject matter hereof.

          (g)      IN WITNESS WHEREOF, the Executive has hereunto set the
Executive's hand and, pursuant to the authorization from the Board, the Company

                                       15
<PAGE>

has caused these presents to be executed in its name on its behalf, all as of
the day and year first above written.

                                                EXECUTIVE

                                                ________________________________
                                                [Name of Executive]

                                                CARPENTER TECHNOLOGY CORPORATION

                                                By______________________________
                                                  Name:
                                                  Title:

                                       16

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"}]]