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Exhibit 10.9  

 
 

PRECISION CASTPARTS CORP.
  1998 EMPLOYEE STOCK PURCHASE PLAN
  AS AMENDED AUGUST 13, 2003    

        1.    Purpose of the Plan.    Precision Castparts Corp. (the "Company") believes that ownership of shares of its
common stock by its employees, and by the employees of its subsidiaries, is desirable as an incentive to better performance and improvement of profits, and as a means by which employees may share in
the Company's growth and success. The purpose of the Precision Castparts Corp. 1998 Employee Stock Purchase Plan (the "Plan") is to provide a convenient means for employees of the Company and its
subsidiaries to purchase the Company's stock. 

        2.    Shares Reserved for the Plan.    There are 4,000,000 shares of the Company's authorized but unissued Common
Stock (the "Common Stock"), reserved for the Plan. The number of shares reserved is subject to adjustment in the event of stock dividends, stock splits, combinations of shares, recapitalizations or
other changes in the outstanding Common Stock. The determination of whether an adjustment shall be made and the manner of any adjustment shall be made by the Board of Directors of the Company (the
"Board of Directors") without any further approval from the shareholders, which determination shall be conclusive. 

        3.    Administration of the Plan.    The Plan shall be administered by the Employee Stock Purchase Plan Committee (the
"Committee"), which shall consist of three or more employees appointed by the Board of Directors. The Board of Directors may at any time remove any member of the Committee, with or without cause, fill
vacancies and appoint new members of Committee. The Committee shall have authority to promulgate rules and regulations for the operation of the Plan, to adopt forms for use in connection with the
Plan, to decide any question of interpretation of the Plan or rights arising under the Plan and generally to supervise the administration of the Plan. The Committee may consult with counsel for the
Company on any matter arising under the Plan. All determinations and decisions of the Committee shall be conclusive. No member of the Committee shall receive any compensation for serving as a member
of the Committee. 

        4.    Eligible Employees.    Except as provided below, all full-time employees of the Company and all
full-time employees of any domestic or foreign subsidiary corporation of the Company that is designated by the Board of Directors as a participant in the Plan (a "Participating
Subsidiary") are eligible to participate in the Plan. Any employee who, after receiving an option pursuant to the Plan, would own or be deemed under section 425(d) of the Internal Revenue Code
of 1986, as amended (IRC) to own stock (including stock that may be purchased under any outstanding options) possessing five percent or more of the total combined voting power or value of all classes
of stock of the Company or, if applicable, its parent or subsidiaries, shall be ineligible to participate in the Plan. A full-time employee is one who is an employee of the Company or of
any Participating Subsidiary on the date an option is granted pursuant to the Plan, excluding, however, any employee whose customary employment is fewer than 20 hours per week or whose
customary employment is for not more than five months per calendar year or who is a collective bargaining unit employee whose collective bargaining unit has rejected participation in the Plan on
behalf of employees in that unit. Such rejection shall be effective until revoked by written notice to the Company. An employee shall be treated as employed continuously for all purposes of the Plan
during any period not exceeding 90 days during which he or she is on sick, military or other bona fide leave of absence, including layoff. 

        5.    Participation in the Plan.    As of a specific date during the first month of each calendar year, the Board of
Directors may make an option grant under the Plan to all, but not fewer than all, eligible employees. The specific grant date selected by the Board of Directors is referred to as the Offer Date.
Shares subject to the options, to the extent of exercise of the options by eligible employees, shall be purchased on December 31 of the year in which the Offer Date occurs (the "Purchase Date")
or the earlier Special Purchase Dates (as defined below) specified under Section 12(c) with respect to certain 

 

retirees.
To the extent options granted under the Plan are not exercised by the Purchase Date, the options shall expire and be of no further force or effect. 

        Options
granted pursuant to the Plan in any calendar year shall give each eligible employee the right to purchase shares of Common Stock at the Purchase Price with payroll deductions up
to 10 percent of eligible compensation for which a payroll deduction percentage may be specified as further described below. The maximum number of shares that can be purchased is the lesser of
2,000 shares or shares with a market value of $25,000 on the Grant Date. 

        No
options may be granted pursuant to the Plan that would allow an employee's right to purchase shares under all stock purchase plans of the Company and its subsidiaries, to which IRC
section 423 applies, to accrue at a rate that exceeds $25,000 of fair market value of shares (determined on the Grant Date) for the calendar year in which the Grant Date occurs. For this
purpose, the right to
purchase shares pursuant to an option accrues on the Purchase Date or Special Purchase Date for certain retirees, if applicable. 

        An
employee may participate in the Plan with respect to all or a portion of the shares covered by the option by submitting to the Company, on a form supplied by the Company, a
subscription and payroll deduction authorization. The payroll deduction authorization will authorize the employing corporation to deduct a specific amount from each of the employee's regular paychecks
beginning with the payroll period after which the payroll deduction authorization was submitted and continuing until the last payroll period before the Purchase Date or until the employee amends or
terminates the payroll deduction authorization. With respect to each applicable pay period, an employee who receives a base salary may specify a payroll deduction percentage that is at least
1 percent and not greater than 10 percent of such employee's base salary for the pay period, and a non-salaried employee may specify a payroll deduction percentage that is at
least 1 percent and not greater than 10 percent of the employee's straight-time component of total wages for all hours worked up to 40 hours in a weekly pay period, or
up to an equivalent number of hours if the pay period is other than weekly. After an employee has begun participating in the Plan by initiating payroll deductions, the employee may change the
authorized payroll deduction percentage at each pay period, and the change will be effective in the next payroll period. An employee may suspend the deduction at any time, and the suspension will be
effective in the next payroll period after the deduction is suspended. Accumulated deductions will be refunded, without interest, within 30 days upon written request. After suspension,
deduction may be resumed, but not until at least one month after the deduction was suspended. If an employee's employment with the Company is terminated before the Purchase Date, other than on account
of death or retirement, accumulated payroll deductions will be refunded, without interest, within 30 days. On termination due to death or retirement, the retiree or representative of the estate
of the deceased employee, if applicable, may elect to have the accumulated payroll deductions refunded as described above. Otherwise, the accumulated amount will be used to purchase shares as
described below. 

        6.    Purchase of Shares.    All amounts withheld from an employee's pay pursuant to Section 5 shall be
credited to an account established for the employee under the Plan (the "employee's account"). No interest will be paid on the accounts. The total amount credited to an employee's account on the
Purchase Date, or the Special Purchase Date described below for certain retired participants, if applicable, will be used to purchase full and fractional shares under the Plan, subject to the
applicable limits on available shares. If the total amount in any employee's account, or the aggregate of all employees' accounts, would purchase shares in excess of the applicable limits, the excess
will be refunded to the employees affected by the limits. 

        7.    Purchase Price.    The price at which a share of Common Stock may be purchased pursuant to the Plan shall be
specified by the Board of Directors at the time of option grant, but shall not be less than the lower of (i) 85 percent of the fair market value of a share of Common Stock for the Grant
Date, or (ii) 85 percent of the fair market value of a share of Common Stock for the Purchase Date. 

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Unless
otherwise specified by the Board of Directors, the fair market value of a share of Common Stock shall be the Closing Price of a share of Common Stock as shown on the New York Stock Exchange
Composite Transactions Listing for such date, as published in The Wall Street Journal. In the event that the Common Stock is no longer listed on the New
York Stock Exchange or the price is no longer shown on the New York Stock Exchange Composite Transactions Listing, then the Board of Directors or the Committee shall substitute a comparable source of
closing price information. 

        8.    Delivery and Custody of Shares.    Full and fractional shares determined as of the Purchase Date will be
credited to each employee's account within 30 days after the Purchase Date. Shares purchased by employees pursuant to the Plan shall be held by the Bank of New York or a successor custodian
approved by the Board of Directors (the "Custodian"). By appropriate instructions to the Custodian on forms to be provided for the purpose, an employee may obtain transfer into the employee's own name
of all or part of the whole shares held by the Custodian for the employee's account, and delivery of those shares to the employee. Any fractional shares held by the Custodian for the employee's
account will be settled for cash. Upon an employee's written request to the Custodian, all or part of the employee's full and fractional shares credited to an employee's account shall be sold by the
Custodian's discount brokerage company in accordance with the twice-weekly or other established schedule for sale of such shares. The employee shall pay the brokerage company's charge for such sale. 

        9.    Records and Statements.    The Company shall keep records of payroll deductions during the year and transmit the
records to the Custodian after the Purchase Date. Each employee shall receive a quarterly statement within 30 days after the end of each quarter which shows the share value and activity in the
employee's account. Participants will be furnished such other reports and statements, and at such intervals, as the Board of Directors shall determine from time to time. 

        10.    Expenses of the Plan.    The Company will pay all expenses, except brokerage fees on sales of shares, incident
to operation of the Plan, including costs of record keeping, accounting fees, legal fees, commissions and issue or transfer taxes on purchases pursuant to the Plan. 

        11.    Rights Not Transferable.    Rights to purchase shares under this Plan shall not be transferable or assignable
by the employee except by will or by the laws of descent and distribution of the state or country of the employee's domicile at the time of death and shall be exercisable during the employee's
lifetime only by the employee. 

        12.    Limitations on Rights to Purchase Shares.    

        (a)   Except
as provided in Sections 12(b) and 12(c) of the Plan, no shares may be purchased under the Plan unless the purchaser is employed by the Company or a Participating
Subsidiary on the Purchase Date and shall have been so employed continuously since the Grant Date. 

        (b)   If
the employee's employment by the Company or a Participating Subsidiary is terminated by death, any shares available for purchase by the employee may be purchased on
the Purchase Date. To the extent shares available for purchase by a deceased employee are not purchased on the Purchase Date, all further rights to purchase shares pursuant to the offering shall cease
and terminate. 

        (c)   If
the employee's employment by the Company or a Participating Subsidiary is terminated by retirement on or before September 30, in the year in which the Grant
Date occurs, any shares available for purchase by the employee may be purchased on the last business day of the second full calendar month after the month in which the employee's retirement date
occurs (the "Special Purchase Date"). To the extent shares available for purchase by an employee retiring on or before September 30, in the year in which the Grant Date occurs, are not
purchased on the Special Purchase Date, all further rights to purchase shares pursuant to the offering shall cease and terminate, and accumulated deductions will be refunded. 

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        If
an employee's employment by the Company or a Participating Subsidiary is terminated by retirement after September 30, in the year in which the Grant Date occurs, any shares
available for purchase by the employee may be purchased on the Purchase Date. To the extent shares available for purchase by an employee retiring after September 30, in the year in which the
Grant Date occurs are not purchased on the Purchase Date, all further rights to purchase shares pursuant to the offering shall cease and terminate. 

        For
purposes of this provision, retirement means termination of employment on or after the normal retirement date under the Precision Castparts Corp. Retirement Plan (age 65 at
January 1, 1998). 

        13.    Dividends and Other Distributions.    Dividends and other distributions, if any, on shares held by the
Custodian shall be paid to the Custodian and held by it for the account of the respective employees entitled to them. Cash dividends or distributions paid to the Custodian shall be reinvested in
Company shares in proportion to the number of shares held in the employees' accounts. Dividends and other distributions, if any, on shares held directly by employees shall be issued currently to the
employees entitled to them. 

        14.    Voting and Shareholder Communications.    In connection with voting on any matter submitted to the shareholders
of the Company, the Custodian shall vote the shares it holds for each employee's account in accordance with instructions from the employee or, if requested by an employee, shall furnish to the
employee a proxy authorizing the employee to vote the shares. Copies of all general communications to shareholders of the Company shall be sent to employees participating in the Plan. Share voting
shall apply to shares held in accounts beginning in the calendar year after the Purchase Date. 

        15.    Responsibility.    Neither the Company, its Board of Directors, any Participating Subsidiary, nor any officer
or employee of any of them shall be liable to any employee under the Plan for any mistake of judgment or for any omission or wrongful act unless resulting from willful misconduct or intentional
misfeasance. 

        16.    Conditions and Approvals.    The obligations of the Company under the Plan shall be subject to compliance with
all applicable state and federal laws and regulations, the rules of any stock exchange on which the Company's securities may be listed, and the approval of federal and state authorities or agencies
with jurisdiction in the matter. The Company shall use its best efforts to comply with such laws, regulations, and rules and to obtain required approvals. 

        17.    Amendment of the Plan.    The Board of Directors may from time to time amend the Plan in any and all respects,
except that without the affirmative vote of the holders of a majority of the shares of the Company voting on the amendment at a validly held meeting of shareholders, the Board of Directors may not
(a) increase the number of shares reserved for the Plan (except for adjustments in the event of stock dividends, stock splits, combinations of shares, recapitalizations, or other changes in the
outstanding Common Stock), (b) extend the term of the Plan, (c) decrease the purchase price of shares offered pursuant to the Plan, (d) materially increase benefits accruing to
employees under the Plan, or (e) materially modify eligibility requirements under the Plan. 

        18.    Termination of the Plan.    The Plan shall terminate when all of the shares reserved for purposes of the Plan
have been purchased, or December 31, 2007, whichever is earlier, provided that the Board of Directors in its sole discretion may at any time terminate the Plan without any obligation on account
of such termination, except that such termination shall not affect outstanding rights to purchase shares. With the consent of the shareholders, additional Common Stock may be reserved for the Plan or
the Plan may be readopted. Notwithstanding anything in the Plan to the contrary, in the event of a change in control of the Company, if the Board of Directors determines that the operation or
administration of the Plan could prevent participating employees from obtaining the benefit of the 

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timely
exercise of their options under the Plan, the Plan may be terminated in any manner deemed by the Board of Directors to provide equitable treatment to participating employees. Equitable
treatment may include, but is not limited to, (i) the setting by the Board of Directors of an interim purchase date or (ii) the payment to each participating employee of the amount of
contributions standing to such participating employee's account as of the date of the change in control, plus, except in the case of a participating employee who is subject to Section 16(b) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), an additional amount equal to the product of (A) the number of full shares of Common Stock that could have been purchased
for the participating employee immediately prior to the change in control with the contributions standing to such participating employee's account as of the date of the change in control at the
purchase price (determined under Section 7) as of the Grant Date (the "Purchase Price") and (B) the excess, if any, of the highest price paid per share of Common Stock in connection with
the change in control of the Company over the Purchase Price. 

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

        (a)   any
"person," as such term is used in Sections 13(d) and 14(d) of 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 shareholders 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 more than
20 percent 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, 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 of Directors or nomination for election by the Company's shareholders 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
shareholders 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
shareholders 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. 

        19.    Tax Withholding.    Each participant who has purchased shares under the Plan shall immediately upon
notification of the amount due, if any, pay to the Company in cash amounts necessary to satisfy any applicable federal, state and local tax withholding determined by the Company to be required. If the
Company determines that additional withholding is required beyond any amount deposited at the time of purchase, the participant shall pay such amount to the Company on demand. If the participant fails
to pay the amount demanded, the Company may withhold that amount from other amounts payable by the Company to the participant, including salary, subject to applicable law. 

        20.    Effective Date.    This Plan shall become effective January 1, 1998 (the "Effective Date") provided that
it shall not become effective until it has been approved by the affirmative vote of the holders of a majority of the shares of the Company. 

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Exhibit 10.14  

 
 

PRECISION CASTPARTS CORP.    
    
    2001 STOCK INCENTIVE PLAN, AS AMENDED    
    

        1.    Purpose.    The purpose of this 2001 Stock Incentive Plan (the "Plan") is to enable
Precision Castparts Corp. (the "Company") to attract and retain the services of (i) selected employees, officers and directors of the Company or any parent or subsidiary of the Company and
(ii) selected nonemployee agents, consultants, advisers and independent contractors of the Company or any parent or subsidiary of the Company. For purposes of this Plan, a person is considered
to be employed by or in the service of the Company if the person is employed by or in the service of any entity (the "Employer") that is either the Company or a parent or subsidiary of the Company. As
used in this Section 1, the term "subsidiary" shall include corporations, limited liability companies, partnerships or other entities directly or indirectly controlled by the Company. 

        2.    Shares Subject to the Plan.    Subject to adjustment as provided below and in
Section 9, the shares to be offered under the Plan shall consist of Common Stock of the Company, and the total number of shares of Common Stock that may be issued under the Plan shall be
1,500,000 shares. If an option or stock appreciation right granted under the Plan expires, terminates or is canceled, the unissued shares subject to that option or stock appreciation right shall again
be available under the Plan. If shares awarded as a bonus pursuant to Section 7 or sold pursuant to Section 8 under the Plan are forfeited to or repurchased by the Company, the number of
shares forfeited or repurchased shall again be available under the Plan. If restricted stock units awarded under Section 8 are cancelled or forfeited, any shares of Common Stock deliverable in
connection with such restricted stock units shall again be available under the Plan. 

        3.    Effective Date and Duration of Plan.    

        3.1    Effective Date.    The Plan shall become effective as of May 24, 2001. No
Incentive Stock Option (as defined in Section 5 below) granted under the Plan shall become exercisable, however, until the Plan is approved by the affirmative vote of the holders of a majority
of the shares of Common Stock represented at a shareholders meeting at which a quorum is present or by means of consent resolutions, and the exercise of any Incentive Stock Options granted under the
Plan before approval shall be conditioned on and subject to that approval. Subject to this limitation, options and stock appreciation rights may be granted and shares may be awarded as bonuses or sold
under the Plan at any time after the effective date and before termination of the Plan. 

        3.2    Duration.    The Plan shall continue in effect until all shares available for issuance
under the Plan have been issued and all restrictions on the shares have lapsed. The Board of Directors may suspend or terminate the Plan at any time except with respect to options and shares subject
to restrictions then outstanding under the Plan. Termination shall not affect any outstanding options, restricted stock units or any right of the Company to repurchase shares or the forfeitability of
shares issued under the Plan. 

        4.    Administration.    

        4.1    Board of Directors.    The Plan shall be administered by the Board of Directors of the
Company, which shall determine and designate the individuals to whom awards shall be made, the amount of the awards and the other terms and conditions of the awards. Subject to the provisions of the
Plan, the Board of Directors may adopt and amend rules and regulations relating to administration of the Plan, advance the lapse of any waiting period, accelerate any exercise date, waive or modify
any restriction applicable to shares (except those restrictions imposed by law) and make all other determinations in the judgment of the Board of Directors necessary or desirable for the
administration of the Plan. The interpretation and construction of the provisions of the Plan and related agreements by the Board of Directors shall be final and conclusive. The Board of Directors may
correct any defect or supply any omission or reconcile any inconsistency in the Plan 

 

or
in any related agreement in the manner and to the extent it deems expedient to carry the Plan into effect, and the Board of Directors shall be the sole and final judge of such expediency. 

        4.2    Committee.    The Board of Directors may delegate to any committee of the Board of
Directors (the "Committee") any or all authority for administration of the Plan. If authority is delegated to the Committee, all references to the Board of Directors in the Plan shall mean and relate
to the Committee, except (i) as otherwise provided by the Board of Directors and (ii) that only the Board of Directors may amend or terminate the Plan as provided in Sections 3 and 10. 

        4.3    Officers.    The Board of Directors may delegate to any officer or officers of the
Company authority to grant awards under the Plan, subject to any restrictions imposed by the Board of Directors. 

        5.    Types of Awards, Eligibility, Limitations.    The Board of Directors may, from time to
time, take the following actions, separately or in combination, under the Plan: (i) grant Incentive Stock Options, as defined in Section 422 of the Internal Revenue Code of 1986, as
amended (the "Code"), as provided in Sections 6.1 and 6.2; (ii) grant options other than Incentive Stock Options ("Non-Statutory Stock Options") as provided in Sections 6.1 and 6.3;
(iii) grant stock appreciation rights as provided in Section 6.4; (iv) award stock bonuses as provided in Section 7; (v) sell shares subject to restrictions as
provided in Section 8.1; and (vi) grant restricted stock units as provided in Section 8.2. Awards may be made to employees, including employees who are officers or directors, and
to other individuals described in Section 1 selected by the Board of Directors; provided, however, that (i) only employees of the Company or any parent or subsidiary of the Company (as
defined in subsections 424(e) and 424(f) of the Code) are eligible to receive Incentive Stock Options under the Plan, and (ii) the Company shall not issue or sell more than 20 percent of
the shares reserved for issuance under the Plan as stock bonuses as provided in Section 7 or shares issued as restricted stock or in connection with restricted stock units as provided in
Section 8, aggregating for purposes of this limitation all shares issued under Section 7 and Section 8. The Board of Directors shall select the individuals to whom awards shall be
made and shall specify the action taken with respect to each individual to whom an award is made. At the discretion of the Board of Directors, an individual may be given an election to surrender an
award in exchange for the grant of a new award. No employee may be granted options or stock appreciation rights for more than an aggregate of 500,000 shares of Common Stock in the calendar year in
which the employee is hired or 300,000 shares of Common Stock in any other calendar year. 

        6.    Stock Options; Stock Appreciation Rights.    

        6.1    General Rules Relating to Options.    

        6.1-1    Terms of Grant.    The Board of Directors may grant options under the
Plan. With respect to each option grant, the Board of Directors shall determine the number of shares subject to the option, the exercise price, the period of the option, the time or times at which the
option may be exercised and whether the option is an Incentive Stock Option or a Non-Statutory Stock Option. At the time of the grant of an option or at any time thereafter, the Board of
Directors may provide that an optionee who exercised an option with Common Stock of the Company shall automatically receive a new option to purchase additional shares equal to the number of shares
surrendered and may specify the terms and conditions of such new options. 

        6.1-2    Nontransferability.    Each Incentive Stock Option and, unless otherwise
determined by the Board of Directors, each other option granted under the Plan by its terms (i) shall be nonassignable and nontransferable by the optionee, either voluntarily or by operation of
law, except by will or by the laws of descent and distribution of the state or 

2

 

country
of the optionee's domicile at the time of death, and (ii) during the optionee's lifetime, shall be exercisable only by the optionee. 

        6.1-3    Payment on Exercise.    Unless the Board of Directors determines
otherwise, on or before the date specified for completion of the purchase of shares pursuant to an option exercise, the optionee must pay the Company the full purchase price of those shares in cash or
by check or, with the consent of the Board of Directors, in whole or in part, in Common Stock of the Company valued at fair market value, restricted stock or other contingent awards denominated in
either stock or cash, promissory notes and other forms of consideration. Unless otherwise determined by the Board of Directors, any Common Stock provided in payment of the purchase price must have
been previously acquired and held by the optionee for at least six months. The fair market value of Common Stock provided in payment of the purchase price shall be the closing price of the Common
Stock last reported before the time payment in Common Stock is made or, if earlier, committed to be made, if the Common Stock is publicly traded, or another value of the Common Stock as specified by
the Board of Directors. No shares shall be issued until full payment for the shares has been made, including all amounts owed for tax withholding. With the consent of the Board of Directors, an
optionee may request the Company to apply automatically the shares to be received upon the exercise of a portion of a stock option (even though stock certificates have not yet been issued) to satisfy
the purchase price for additional portions of the option. 

        6.1-4    Limitations on Grants to Non-Exempt Employees.    Unless
otherwise determined by the Board of Directors, if an employee of the Company or any parent or subsidiary of the Company is a non-exempt employee subject to the overtime compensation
provisions of Section 7 of the Fair Labor Standards Act (the "FLSA"), any option granted to that employee shall be subject to the following restrictions: (i) the option price shall be at
least 100 percent of the fair market value, as described in Section 6.3-1, of the Common Stock subject to the option on the date it is granted; and (ii) the option
shall not be exercisable until at least six months after the date it is granted; provided, however, that this six-month restriction on exercisability will cease to apply if the employee
dies, becomes disabled or retires, there is a change in ownership of the Company, or in other circumstances permitted by regulation, all as prescribed in Section 7(e)(8)(B) of the FLSA. 

        6.2    Incentive Stock Options.    Incentive Stock Options shall be subject to the following
additional terms and conditions: 

        6.2-1    Limitation on Amount of Grants.    If the aggregate fair market value of
stock (determined as of the date the option is granted) for which Incentive Stock Options granted under this Plan (and any other stock incentive plan of the Company or its parent or subsidiary
corporations, as defined in subsections 424(e) and 424(f) of the Code) are exercisable for the first time by an employee during any calendar year exceeds $100,000, the portion of the option or options
not exceeding $100,000, to the extent of whole shares, will be treated as an Incentive Stock Option and the remaining portion of the option or options will be treated as a Non-Statutory
Stock Option. The preceding sentence will be applied by taking options into account in the order in which they were granted. If, under the $100,000 limitation, a portion of an option is treated as an
Incentive Stock Option and the remaining portion of the option is treated as a Non-Statutory Stock Option, unless the optionee designates otherwise at the time of exercise, the optionee's
exercise of all or a portion of the option will be treated as the exercise of the Incentive Stock Option portion of the option to the full extent permitted under the $100,000 limitation. If an
optionee exercises an option that is treated as in part an Incentive Stock Option and in part a Non-Statutory Stock Option, the Company will designate the portion of the stock
acquired pursuant to the exercise of the Incentive Stock Option 

3

 

portion
as Incentive Stock Option stock by issuing a separate certificate for that portion of the stock and identifying the certificate as Incentive Stock Option stock in its stock records. 

        6.2-2    Limitations on Grants to 10 Percent Shareholders.    An Incentive Stock
Option may be granted under the Plan to an employee possessing more than 10 percent of the total combined voting power of all classes of stock of the Company or any parent or subsidiary (as
defined in subsections 424(e) and 424(f) of the Code) only if the option price is at least 110 percent of the fair market value, as described in Section 6.2-4, of the Common
Stock subject to the option on the date it is granted and the option by its terms is not exercisable after the expiration of five years from the date it is granted. 

        6.2-3    Duration of Options.    Subject to Sections 6.5-1,
6.5-2 and 6.2-2, Incentive Stock Options granted under the Plan shall continue in effect for the period fixed by the Board of Directors, except that by its terms no Incentive
Stock Option shall be exercisable after the expiration of 10 years from the date it is granted. 

        6.2-4    Option Price.    The option price per share shall be determined by the
Board of Directors at the time of grant. Except as provided in Section 6.2-2, the option price shall not be less than 100 percent of the fair market value of the Common Stock
covered by the Incentive Stock Option at the date the option is granted. The fair market value shall be the closing price of the Common Stock last reported before the time the option is granted, if
the stock is publicly traded, or another value of the Common Stock as specified by the Board of Directors. 

        6.2-5    Limitation on Time of Grant.    No Incentive Stock Option shall be
granted on or after the tenth anniversary of the last action by the Board of Directors adopting the Plan or approving
an increase in the number of shares available for issuance under the Plan, which action was subsequently approved within 12 months by the shareholders. 

        6.2-6    Early Dispositions.    If within two years after an Incentive Stock
Option is granted or within 12 months after an Incentive Stock Option is exercised, the optionee sells or otherwise disposes of Common Stock acquired on exercise of the Option, the optionee
shall within 30 days of the sale or disposition notify the Company in writing of (i) the date of the sale or disposition, (ii) the amount realized on the sale or disposition and
(iii) the nature of the disposition (e.g., sale, gift, etc.). 

        6.3    Non-Statutory Stock Options.    Non-Statutory Stock Options
shall be subject to the following terms and conditions, in addition to those set forth in Section 6.1 above: 

        6.3-1    Option Price.    The option price for Non-Statutory Stock
Options shall be determined by the Board of Directors at the time of grant, and shall not be less than 100 percent of the fair market value of the Common Stock covered by the
Non-Statutory Stock Option at the date the option is granted. The fair market value shall be the closing price of the Common Stock last reported before the time the option is granted, the
lowest reported sale price on the date of grant, or another value of the Common Stock as specified by the Board of Directors. 

        6.3-2    Duration of Options.    Non-Statutory Stock Options granted
under the Plan shall continue in effect for the period fixed by the Board of Directors, except that by its terms no Non-Statutory Stock Option shall be exercisable after the expiration of
10 years from the date it is granted. 

        6.4    Stock Appreciation Rights.    

        6.4-1    Grant.    Stock appreciation rights may be granted under the Plan by the
Board of Directors, subject to such rules, terms, and conditions as the Board of Directors prescribes. 

4

 

With
respect to any stock options granted after [the date of board approval of this amended plan], the Board of Directors may
provide that at a later date stock appreciation rights may be granted in substitution for stock options granted under the Plan. With respect to each grant, the Board shall determine the number of
shares subject to the stock appreciation right, the period of the stock appreciation right, and the time or times at which the stock appreciation right may be exercised. Stock appreciation rights
shall continue in effect for the period fixed by the Board of Directors except that by its terms no stock appreciation right shall be exercisable after the expiration of 10 years from the date
it is granted. 

        6.4-2    Stock Appreciation Rights Granted in Connection with Options.    If a
stock appreciation right is granted in connection with an option, the stock appreciation right shall be exercisable only to the extent and on the same conditions that the related option could be
exercised. Upon exercise of a stock appreciation right, any option or portion thereof to which the stock appreciation right relates terminates. If a stock appreciation right is granted in connection
with an option, upon exercise of the option, the stock appreciation right or portion thereof to which the grant relates terminates. 

        6.4-3    Exercise.    Each stock appreciation right shall entitle the holder, upon
exercise, to receive from the Company in exchange therefor an amount equal in value to the excess of the fair market value on the date of exercise of one share of Common Stock of the Company over its
fair market value on the date of grant (or, in the case of a stock appreciation right granted in connection with an option, the option price per share under the option to which the stock appreciation
right relates), multiplied by the number of shares covered by the stock appreciation right or the option, or portion thereof, that is surrendered. No stock appreciation right shall be exercisable at a
time that the amount determined under this subparagraph is negative. Payment by the Company upon exercise of a stock appreciation right shall be made in Common Stock valued at fair market value. For
this purpose, the fair market value of the Common Stock shall be the closing price of the Common Stock last reported before the time of exercise, or such other value of the Common Stock as specified
by the Board of Directors. 

        6.4-4    Fractional Shares.    No fractional shares shall be issued upon exercise
of a stock appreciation right. In lieu thereof, cash may be paid in an amount equal to the value of the fraction or, if the Board of Directors shall determine, the number of shares may be rounded
downward to the next whole share. 

        6.4-5    Nontransferability.    Each stock appreciation right granted in
connection with an Incentive Stock Option and, unless otherwise determined by the Board of Directors, each other stock appreciation right granted under the Plan by its terms shall be nonassignable and
nontransferable by the holder, either voluntarily or by operation of law, except by will or by the laws of descent and distribution of the state or country of the holder's domicile at the time of
death, and each stock appreciation right by its terms shall be exercisable during the holder's lifetime only by the holder. 

        6.5    Exercise of Options and Stock Appreciation Rights    

        6.5-1    Exercise.    Except as provided in Section 6.5-2 or as
determined by the Board of Directors, no option or stock appreciation right granted under the Plan may be exercised unless at the time of exercise the holder is employed by or in the service of the
Company and shall have been so employed or provided such service continuously since the date the option or stock appreciation right was granted. Except as provided in Sections 6.5-2 and 9,
options and stock appreciation rights granted under the Plan may be exercised from time to time over the period stated in each option or stock appreciation right in amounts and at times prescribed by
the Board of Directors, provided that options and stock appreciation rights may not be exercised for fractional shares. Unless otherwise determined by the Board of Directors, 

5

 

if
a holder does not exercise an option or stock appreciation right in any one year for the full number of shares to which the holder is entitled in that year, the holder's rights shall be cumulative
and the holder may acquire those shares in any subsequent year during the term of the option or stock appreciation right. 

        6.5-2    Termination of Employment or Service.    

        6.5-2(a)    General Rule.    Unless otherwise determined by the Board of
Directors, if a holder's employment or service with the Company terminates for any reason other than because of total disability, death or, in the case of Nonstatutory Stock Options or stock
appreciation rights, bona fide early retirement, as provided in Sections 6.5-2(b), (c) and (d), his or her option or stock appreciation right may be exercised at any time before the
expiration date of the option or stock appreciation right or the expiration of 3 months (6 months in the case of Nonstatutory Stock Options or stock appreciation rights) after the date
of termination, whichever is the shorter period, but only if and to the extent the holder was entitled to exercise the option or stock appreciation right at the date of termination. 

        6.5-2(b)    Termination Because of Total Disability.    Unless otherwise
determined by the Board of Directors, if a holder's employment or service with the Company terminates because of total disability, his or her option or stock appreciation right may be exercised at any
time before the expiration date of the option or stock appreciation right or before the date 3 months after the date of termination (6 months in the case of Nonstatutory Stock Options or
stock appreciation rights), whichever is the shorter period, but only if and to the extent the holder was entitled to exercise the option or stock appreciation right at the date of termination. The
term "total disability" means a medically determinable mental or physical impairment that is expected to result in death or has lasted or is expected to last for a continuous period of
12 months or more and that, in the opinion of the Company and two independent physicians, causes the holder to be unable to perform his or her duties as an employee, director, officer or
consultant of the Employer and unable to be engaged in any substantial gainful activity. Total disability shall be deemed to have occurred on the first day after the two independent physicians have
furnished their written opinion of total disability to the Company and the Company has reached an opinion of total disability. 

        6.5-2(c)    Termination Because of Death.    Unless otherwise determined by the
Board of Directors, if a holder dies while employed by or providing service to the Company, his or her option or stock appreciation right may be exercised at any time before the expiration date of the
option or stock appreciation right or before the date 12 months after the date of death, whichever is the shorter period, but only if and to the extent the holder was entitled to exercise the
option or stock appreciation right at the date of death and only by the person or persons to whom the holder's rights under the option or stock appreciation right shall pass by the holder's will or by
the laws of descent and distribution of the state or country of domicile at the time of death. 

        6.5-2(d)    Termination Upon Retirement at Normal Retirement Age or at Bona Fide early
Retirement.    In the event the employment of a holder by the Company or by any subsidiary of the Company is terminated by retirement at normal retirement age as
defined under the provisions of the Company's Retirement Plan or under conditions of bona fide early retirement, any Non-Statutory Stock Option or stock appreciation right may be exercised
at any time prior to its expiration date or the expiration of twelve months after the date of such termination of employment, whichever is the shorter period, but only if and to the extent the holder
was entitled to exercise the option or stock appreciation right on the date of such termination. 

6

 

        6.5-2(e)    Amendment of Exercise Period Applicable to Termination.    The Board
of Directors may at any time extend the 3-month, 6-month and 12-month exercise periods any length of time not longer than the original expiration date of the option
or stock appreciation right. The Board of Directors may at any time increase the portion of an option or stock appreciation right that is exercisable, subject to terms and conditions determined by the
Board of Directors. 

        6.5-2(f)    Failure to Exercise Option or Stock Appreciation Right.    To the
extent that the option or stock appreciation right of any deceased holder or any holder whose employment or service terminates is not exercised within the applicable period, all further rights to
purchase shares pursuant to the option or stock appreciation right shall cease and terminate. 

        6.5-2(g)    Leave of Absence.    Absence on leave approved by the Employer or on
account of illness or disability shall not be deemed a termination or interruption of employment or service. Unless otherwise determined by the Board of Directors, vesting of options and stock
appreciation rights shall continue during a medical, family or military leave of absence, whether paid or unpaid, and vesting of options and stock appreciation rights shall be suspended during any
other unpaid leave of absence. 

        6.5-3    Notice of Exercise.    Unless the Board of Directors determines
otherwise, shares may be acquired pursuant to an option or stock appreciation right granted under the Plan only upon the Company's receipt of written notice from the holder of the holder's binding
commitment to purchase
shares, specifying the number of shares the holder desires to acquire under the option or stock appreciation right and the date on which the holder agrees to complete the transaction, and, if required
to comply with the Securities Act of 1933, containing a representation that it is the holder's intention to acquire the shares for investment and not with a view to distribution. 

        6.5-4    Tax Withholding.    Each holder who has exercised an option or stock
appreciation right shall, immediately upon notification of the amount due, if any, pay to the Company in cash or by check amounts necessary to satisfy any applicable federal, state and local tax
withholding requirements. If additional withholding is or becomes required (as a result of exercise of an option or stock appreciation right or as a result of disposition of shares acquired pursuant
to exercise of an option or stock appreciation right) beyond any amount deposited before delivery of the certificates, the holder shall pay such amount, in cash or by check, to the Company on demand.
If the holder fails to pay the amount demanded, the Company or the Employer may withhold that amount from other amounts payable to the holder, including salary, subject to applicable law. With the
consent of the Board of Directors, a holder may satisfy this obligation, in whole or in part, by instructing the Company to withhold from the shares to be issued upon exercise or by delivering to the
Company other shares of Common Stock; provided, however, that the number of shares so withheld or delivered in connection with an option exercise shall not exceed the minimum amount necessary to
satisfy the required withholding obligation. 

        6.5-5    Reduction of Reserved Shares.    Upon the exercise of an option or stock
appreciation right, the number of shares reserved for issuance under the Plan shall be reduced by the number of shares issued upon exercise of the option or stock appreciation right. 

        7.    Stock Bonuses.    The Board of Directors may award shares under the Plan as stock
bonuses. Shares awarded as a bonus shall be subject to the terms, conditions and restrictions determined by the Board of Directors. The restrictions may include restrictions concerning transferability
and forfeiture of the shares awarded, together with any other restrictions determined by the Board of Directors. The Board of Directors may require the recipient to sign an agreement as a condition of
the award, but may not require the recipient to pay any monetary consideration other than amounts necessary to 

7

 

satisfy
tax withholding requirements. The agreement may contain any terms, conditions, restrictions, representations and warranties required by the Board of Directors. The certificates representing
the shares awarded shall bear any legends required by the Board of Directors. The Company may require any recipient of a stock bonus to pay to the Company in cash or by check upon demand amounts
necessary to satisfy any applicable federal, state or local tax withholding requirements. If the recipient fails to pay the amount demanded, the Company or the Employer may withhold that amount from
other amounts payable to the recipient, including salary, subject to applicable law. With the consent of the Board of Directors, a recipient may satisfy this obligation, in whole or in part, by
instructing the Company to withhold from any shares to be issued or by delivering to the Company other shares of Common Stock; provided, however, that the number of shares so withheld or delivered
shall not exceed the minimum amount necessary to satisfy the required withholding obligation. Upon the issuance of a stock bonus, the number of shares reserved for issuance under the Plan shall be
reduced by the number of shares issued, less the number of shares withheld or delivered to satisfy withholding obligations. 

        8.    Restricted Stock; Restricted Stock Units.    

        8.1    Restricted Stock.    The Board of Directors may issue shares under the Plan for any
consideration (including promissory notes and services) determined by the Board of Directors. Shares issued under the Plan shall be subject to the terms, conditions and restrictions determined by the
Board of Directors. The restrictions may include restrictions concerning transferability, repurchase by the Company and forfeiture of the shares issued, together with any other restrictions determined
by the Board of Directors. All Common Stock issued pursuant to this Section 8 shall be subject to a purchase agreement, which shall be executed by the Company and the prospective purchaser of
the shares before the delivery of certificates representing the shares to the purchaser. The purchase agreement may contain any terms, conditions, restrictions, representations and warranties required
by the Board of Directors. 

        8.2    Restricted Stock Units.    The Board of Directors may grant
restricted stock units under the Plan, including restricted stock units or deferred stock units that provide for delivery of Common Stock, cash or property at a later date. Restricted stock units are
awards valued in whole or part by reference to, or otherwise based on, shares of Common Stock, and may give the participant the right to receive Common Stock at a later delivery date. Restricted stock
units may be granted for any consideration (including promissory notes and services) determined by the Board of Directors. Restricted stock unit awards may be paid in shares of Common Stock, cash or
any other forms of property as the Board of Directors shall determine. Subject to the provisions of the Plan, the Board of Directors shall determine the participants to whom awards shall be made, the
number of shares to be granted pursuant to or by reference to such awards, the time or times at which Common Stock, cash or other property may be delivered pursuant to the restricted stock units, any
provisions regarding deferral of delivery of the Common Stock, including deferrals, at the election of the participants, and all other terms, conditions and restrictions of the awards, including the
effect, if any, on the awards of any dividends on the underlying stock. Unless otherwise determined by the Board of Directors, each restricted stock unit granted under the Plan, and all shares of
Common Stock subject to such unit, by its terms shall, prior to the delivery date applicable to the award, be nonassignable and nontransferable by the participant, either voluntarily or by operation
of law, except by will or by the laws of descent and distribution of the state or country of the participant's domicile at the date of death. 

        8.3    Other Provisions.    The certificates representing shares of restricted stock or shares
issued in connection with restricted stock units shall bear any legends required by the Board of Directors. The Company may require any participant receiving restricted stock or restricted stock units
to pay to the Company in cash or by check upon demand amounts necessary to satisfy any applicable federal, state or local tax withholding requirements. If the participant fails to pay the amount
demanded, the Company or the Employer may withhold that amount from other amounts payable 

8

 

to
the participant, including salary, subject to applicable law. With the consent of the Board of Directors, a participant may satisfy this obligation, in whole or in part, by instructing the Company
to withhold from any shares to be issued or by delivering to the Company other shares of Common Stock; provided, however, that the number of shares so withheld or delivered shall not exceed the
minimum amount necessary to satisfy the required withholding obligation. Upon the issuance of restricted stock or the issuance of stock in connection with restricted stock units, the number of shares
reserved for issuance under the Plan shall be reduced by the number of shares issued, less the number of shares withheld or delivered to satisfy withholding obligations. 

        9.    Changes in Capital Structure.    

        9.1    Stock Splits, Stock Dividends.    If the outstanding Common Stock of the Company is
hereafter increased or decreased or changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of any stock split, combination of shares, dividend
payable in shares, recapitalization or reclassification, appropriate adjustment shall be made by the Board of Directors in the number and kind of shares available for grants under the Plan and in all
other share amounts set forth in the Plan. In addition, the Board of Directors shall make appropriate adjustment in the number and kind of shares as to which outstanding options and stock appreciation
rights, or portions thereof then unexercised, shall be exercisable, so that the holder's proportionate interest before and after the occurrence of the event is maintained. Notwithstanding the
foregoing, the Board of Directors shall have no obligation to effect any adjustment that would or might result in the issuance of fractional shares, and any fractional shares resulting from any
adjustment may be disregarded or provided for in any manner determined by the Board of Directors. Any such adjustments made by the Board of Directors shall be conclusive. 

        9.2    Mergers, Reorganizations, Etc.    In the event of a merger, consolidation, plan of
exchange, acquisition of property or stock, split-up, split-off, spin-off, reorganization or liquidation to which the Company is a party or any sale, lease,
exchange or other transfer (in one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company (each, a "Transaction"), the Board of Directors shall, in
its sole discretion (i) make any adjustment to the number and kind of shares of stock deliverable upon any Transaction affecting the stock issuable in connection with any restricted stock units
and (ii) to the extent possible under the structure of the Transaction, select one or more of the following alternatives for treating outstanding options and stock appreciation rights under the
Plan: 

        9.2-1 Outstanding
options and stock appreciation rights shall remain in effect in accordance with their terms. 

        9.2-2 Outstanding
options and stock appreciation rights shall be converted into options and stock appreciation rights to purchase stock in one or more of the
corporations, including the Company, that are the surviving or acquiring corporations in the Transaction. The amount, type of securities subject thereto and exercise price of the converted options and
stock appreciation rights shall be determined by the Board of Directors of the Company, taking into account the relative values of the companies involved in the Transaction and the exchange rate, if
any, used in determining shares of the surviving corporation(s) to be held by holders of shares of the Company following the Transaction. Unless otherwise determined by the Board of Directors, the
converted options and stock appreciation rights shall be vested only to the extent that the vesting requirements relating to options granted hereunder have been satisfied. 

        9.2-3 The
Board of Directors shall provide a period of 30 days or less before the completion of the Transaction during which outstanding options and stock
appreciation rights may be exercised to the extent then exercisable, and upon the expiration of that period, all unexercised options and stock appreciation rights shall immediately terminate. The
Board of 

9

 

Directors
may, in its sole discretion, accelerate the exercisability of options and stock appreciation rights so that they are exercisable in full during that period. 

        9.3    Dissolution of the Company.    In the event of the dissolution of the Company, options
and stock appreciation rights shall be treated in accordance with Section 9.2-3. 

        9.4    Rights Issued by Another Corporation.    The Board of Directors may also grant options,
stock appreciation rights and stock bonuses and issue restricted stock and restricted stock units under the Plan with terms, conditions and provisions that vary from those specified in the Plan,
provided that any such awards are granted in substitution for, or in connection with the assumption of, existing options, stock appreciation rights, stock bonuses, restricted stock and restricted
stock units granted, awarded or issued by another corporation and assumed or otherwise agreed to be provided for by the Company pursuant to or by reason of a Transaction. 

        10.    Amendment of the Plan.    The Board of Directors may at any time modify or amend the
Plan in any respect. Except as provided in Sections 6.4 and 9 however, no change in an award already granted shall be made without the written consent of the holder of the award if the change would
adversely affect the holder. 

        11.    Approvals.    The Company's obligations under the Plan are subject to the approval of
state and federal authorities or agencies with jurisdiction in the matter. The Company will use its best efforts to take steps required by state or federal law or applicable regulations, including
rules and regulations of the Securities and Exchange Commission and any stock exchange on which the Company's shares may then be listed, in connection with the grants under the Plan. The foregoing
notwithstanding, the Company shall not be obligated to issue or deliver Common Stock under the Plan if such issuance or delivery would violate state or federal securities laws. 

        12.    Employment and Service Rights.    Nothing in the Plan or any award pursuant to the Plan
shall (i) confer upon any employee any right to be continued in the employment of an Employer or interfere in any way with the Employer's right to terminate the employee's employment at will at
any time, for any reason, with or without cause, or to decrease the employee's compensation or benefits, or (ii) confer upon any person engaged by an Employer any right to be retained or
employed by the Employer or to the continuation, extension, renewal or modification of any compensation, contract or arrangement with or by the Employer. 

        13.    Rights as a Shareholder.    The recipient of any award under the Plan shall have no
rights as a shareholder with respect to any shares of Common Stock until the date the recipient becomes the holder of record of those shares. Except as otherwise expressly provided in the Plan, no
adjustment shall be made for dividends or other rights for which the record date occurs before the date the recipient becomes the holder of record. 

        14.    Foreign Qualified Grants.    Awards under the Plan may be granted to such officers and
employees of the Company and its subsidiaries and such other persons described in paragraph 1 residing in foreign jurisdictions as the Board of Directors may determine from time to time. The
Board of Directors may adopt such supplements to the Plan as may be necessary to comply with the applicable laws of such foreign jurisdictions and to afford participants favorable treatment under such
laws; provided, however, that no award shall be granted under any such supplement with terms which are more beneficial to the participants than the terms permitted by the Plan. 

Adopted:
May 24, 2001

Amended: May 19, 2004 

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PRECISION CASTPARTS CORP. 2001 STOCK INCENTIVE PLAN, AS AMENDED

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