Precision Castparts (PCP)

4. Restrictions under Internal Revenue Code Section 409A.

4.1 Delay of initial payments. Monthly payments to Mr. Larsson for the first sixth months of retirement will be accumulated with interest at 6 percent simple interest per annum and paid to him with the monthly payment for the seventh month in accordance with 409A restrictions. If Mr. Larsson’s death occurs during the six month period, unpaid amounts for him relating to months up to and including month in which his death has occurred shall be paid as soon as practicable to Mrs. Larsson if she is then living, or if she is not then living unpaid amounts for him shall be paid as soon as practicable to his estate. Income amounts payable to Mrs. Larsson as surviving spouse, if they become payable during the initial six month period, are not subject to the 409A-required payment delay.

4.2 No options for time or form of payment of benefits. No optional forms of benefit payment or options relating to time of payment of benefit are available. Payments may not be accelerated or benefit rights cashed out in any circumstance, including without limitation change in control of the Company.

4.4 Nonassignment. Mr. Larsson and Mrs. Larsson cannot, directly or indirectly, assign or alienate any rights to receive any of the monthly income benefits and may not pledge rights to receive monthly income benefits as security for a debt or otherwise directly or indirectly assign or accelerate any economic benefit of rights to receive monthly income benefits.

4.5 Unfunded. Benefits will only be paid only from general Company assets. The Company will not set aside funds through a trust or employ any other means to accomplish payment of benefits other than from general Company assets.

4.6 Amendment. To the extent required to comply with 409A restrictions, the Company’s Chief Executive Officer (or any officer of the Company other than Mr. Larsson designated by the Chief Executive Officer) is authorized to amend the terms of this arrangement. Mr. Larsson will be immediately notified of any such amendment and the reason it is required to comply with 409A. Mr. Larsson agrees in advance to any such 409A-required amendment except to the extent that he reasonably determines the amendment is not required by 409A and notifies the Company of such determination. Any disagreement between Mr. Larsson and the Company about applicable 409A requirements will be resolved as described in 5.2 below. Other 409A-permitted amendments may be made by agreement of the Chief Executive Officer of the Company and Mr. Larsson, except that 409A-violating amendments may not be made and any improvement in Mr. Larsson’s benefits may only be made if approved by the Compensation Committee of the Board of Directors of the Company.

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4.7 Tax Reporting. The Company will file applicable tax reports required by 409A and any other federal, state or local law relating to the value of or payment of benefits under this arrangement.