Document:

exv10w19

Exhibit 10.19

AIR PRODUCTS AND CHEMICALS, INC.

CORPORATE EXECUTIVE COMMITTEE

SEPARATION PROGRAM

As Amended Effective as of March 18, 2009

 

 

ARTICLE I

PURPOSE AND TERM OF PLAN

     Section 1.01 Purpose. Air Products and Chemicals, Inc. hereby establishes the Air
Products and Chemicals, Inc. Corporate Executive Committee Separation Program (the “Plan”) for the
purpose of facilitating the planned separations of Covered Executives (as defined below) and
providing severance benefits to a Covered Executive.

     Section 1.02 Term of the Plan. The Plan, as set forth herein, was originally
effective July 17, 2003. This amendment and restatement of the Plan shall be effective January 1,
2008 (the “Effective Date”). The Plan will continue until such time as the Committee (as defined
below) acting in its sole discretion, elects to modify, supersede or terminate the Plan in
accordance with, and subject to, the provisions of Article V.

ARTICLE II

DEFINITIONS

     Section 2.01 “Administrator” shall mean the Committee or, to the extent the Committee
delegates its powers in accordance with Section 4.01, its delegate with respect to matters so
delegated.

     Section 2.02 “Air Products” shall mean Air Products and Chemicals, Inc.

     Section 2.03 “Annual Incentive Plan” shall mean the Air Products and Chemicals, Inc. Annual
Incentive Plan and/or any similar, successor or substitute short-term bonus plan, program or pay
practice.

     Section 2.04 “Benefit” or “Benefits” shall mean any or all of the benefits that a Covered
Executive is entitled to receive pursuant to Sections 3.02, 3.03 and 3.04 of the Plan.

     Section 2.05 “Board” means the Board of Directors of Air Products.

     Section 2.06 “Bonus” shall mean 100% of the target bonus for a Covered Executive, determined
as of the Covered Executive’s Employment Termination Date under the grant guidelines for the Annual
Incentive Plan or similar successor or substitute annual incentive plan or program.

     Section 2.07 “Cause” shall mean (a) the willful failure of an Executive to substantially
perform his or her duties (other than any such failure due to Disability), after a demand for
substantial performance is delivered, which demand shall identify the manner in which the Company
believes that the Covered Executive has not substantially performed his duties, (b) a Covered
Executive’s engaging in willful and serious misconduct that has caused or would reasonably be
expected to result in material injury to the Company or any of its affiliates, (c) a Covered
Executive’s conviction of, or entering a plea of nolo contendere to, a crime that
constitutes a felony, (d) a Covered Executive’s engaging (i) in repeated acts of insubordination

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or (ii) an act of dishonesty, or (e) violation by the Covered Executive of any provision of
Company’s Code of Conduct.

     Section 2.08 “CEO” shall mean the Chief Executive Officer of Air Products, or a former chief
executive officer of Air Products whose removal from such position constituted Good Reason.

     Section 2.09 “Change in Control” shall be as defined under the Company’s standard change in
control agreement for senior executives or, if applicable, the change in control agreement that is
in effect for a Covered Executive at the time of the Change in Control.

     Section 2.10 “Committee” shall mean the Management Development and Compensation Committee of
the Air Products Board of Directors, or such other person or persons appointed by the Board of
Directors of the Company, to act on behalf of the Company with respect to the Plan as provided in
the Plan.

     Section 2.11 “Company” shall mean Air Products and any of its wholly or majority owned
subsidiaries and affiliates. The term “Company” shall include any successor to Air Products such
as a corporation succeeding to the business of Air Products or any subsidiary, by merger,
consolidation or liquidation, or purchase of assets or stock or similar transaction.

     Section 2.12 “Covered Executive” shall mean (a) the CEO and (b) each individual who serves as
a member of the Company’s Corporate Executive Committee.

     Section 2.13 “Disability” shall be as defined under the Company’s long-term disability plan.

     Section 2.14 “Employment Termination Date” shall mean the date on which a Covered Executive
incurs a Termination of Employment.

     Section 2.15 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended.

     Section 2.16 “Good Reason” shall mean the occurrence of any of the following without a Covered
Executive’s consent:

          (a) A material adverse change in the Covered Executive’s position or office with the Company,
or a material diminution in the Covered Executive’s duties, reporting responsibilities and
authority with the Company, or an assignment to the Covered Executive of duties or
responsibilities, which are materially inconsistent with the Covered Executive’s status or position
with the Company; provided that, any of the foregoing in connection with
termination of a Covered Executive’s employment for Cause, Retirement or Disability shall not
constitute Good Reason.

          (b) Reduction of the Covered Executive’s Salary or failure by the Company to pay, in
substantially equal installments conforming with the Company’s normal pay practices, the Covered
Executive’s Salary; provided, however, that the Company may reduce a Covered
Executive’s Salary if such reduction is no less favorable to the Covered Executive than the

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average annual percentage reduction during the applicable Fiscal Year for all Highly
Compensated Employees; provided further that the Company may adjust its normal
payroll practices with respect to the payment of a Covered Executive’s Salary provided that such
adjustment is applicable to all Highly Compensated Employees.

          (c) A material reduction in a covered Executive’s annual incentive opportunities under the
Annual Incentive Plan without a corresponding increase in other incentive compensation payable by
the Company; provided, however, that the Company may reduce a Covered Executive’s
annual incentive opportunities under the Annual Incentive Plan if such reduction is on a basis no
less favorable to the Covered Executive than the basis upon which the Company reduces the annual
incentive opportunities payable to all Highly Compensated Employees during the applicable Fiscal
Year;

          (d) A material reduction in a Covered Executive’s aggregate Company provided benefits under
the Company’s employee pension benefit, life insurance, medical, dental, health and accident,
disability, severance and paid vacation plans, programs and practices; provided
however that the Company may reduce or adjust the aggregate benefits payable to a Covered
Executive if such reduction is on a basis no less favorable to the Covered Executive than the basis
on which the Company reduces aggregate benefits payable with respect to Highly Compensated
Employees.

          (e) A requirement by the Company that a Covered Executive relocate his or her principal place
of employment by more than fifty (50) miles from the location in effect immediately prior to the
Change in Control.

Notwithstanding anything to the contrary contained herein, a Covered Executive’s termination of
employment will not be treated as for Good Reason as the result of the occurrence of any event
specified in the foregoing clauses (a) through (f) (each such event, a “Good Reason Event”) unless,
within 90 days following the occurrence of such event, the Covered Executive provides written
notice to the Company of the occurrence of such event, which notice sets forth the exact nature of
the event and the conduct required to cure such event. The Company will have 30 days from the
receipt of such notice within which to cure such event (such period, the “Cure Period”). If,
during the Cure Period, such event is remedied, the Covered Executive will not be permitted to
terminate his or her employment for Good Reason. If, at the end of the Cure Period, the Good
Reason Event has not been remedied, a Covered Executive’s voluntary termination will be treated as
for Good Reason during the 90-day period that follows the end of the Cure Period. If a Covered
Executive does not terminate employment during such 90-day period, the Covered Executive will not
be permitted to terminate employment and receive the payments and benefits set forth under this
Agreement as a result of such Good Reason Event.

     Section 2.17 “Highly Compensated Employee” shall mean the highest paid one percent of
employees of the Company together with all corporations, partnerships, trusts, or other entities
controlling, controlled by, or under common control with, the Company.

     Section 2.18 “Long-Term Incentive Plan” shall mean the Air Products and Chemicals, Inc.
Long-Term Incentive Plan, approved by Air Products’ shareholders most recently on

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26 January 2006, together with all predecessor and similar successor or substitute intermediate
and/or long-term incentive compensation plan or program.

     Section 2.19 “Pension Plans” shall mean, the Air Products and Chemicals, Inc. Pension Plan for
Salaried Employees, as amended from time to time together with any similar, succeeding or
substitute plan, and the Supplementary Pension Plan of Air Products and Chemicals, Inc. as amended
from time to time, together with any similar, succeeding or substitute plan, and any private
annuity or pension agreement between the Covered Executive and the Company.

     Section 2.20 “Plan” shall mean the Air Products and Chemicals, Inc. Corporate Executive
Committee Separation Program, as set forth herein, and as the same may from time to time be
amended.

     Section 2.21 “Retirement Savings Plan” shall mean the Air Products and Chemicals, Inc.
Retirement Savings Plan, as amended from time to time, together with any similar, succeeding or
substitute plan.

     Section 2.22 “Plan Year” shall mean each period commencing on October 1 during which the Plan
is in effect and ending on the subsequent September 30.

     Section 2.23 “Salary” shall mean an amount equal to the annual rate of a Covered Executive’s
base salary payable to the Covered Executive in all capacities with the Company and its
Subsidiaries or affiliates for the Plan Year in which a Covered Executive’s Employment Termination
Date occurs.

     Section 2.24 “Savings Plans” shall mean the Air Products and Chemicals, Inc. Retirement
Savings Plan, as amended from time to time, together with any similar, succeeding or substitute
plan, and the Air Products and Chemicals, Inc. Deferred Compensation Plan, as amended from time to
time, together with any similar, succeeding or substitute plan.

     Section 2.25 “Section 409A” shall mean Section 409A of the Internal Revenue Code of 1986, as
amended, and the regulations thereunder as in effect from time to time.

     Section 2.26 “Termination of Employment” shall mean termination of the active employment
relationship between a Covered Executive and the Company (a) by the Company for reasons other than
the Covered Executive’s death, Disability, retirement after attaining age 65 or Cause or (b) by the
Covered Executive for Good Reason.

ARTICLE III

ENTITLEMENT TO AND DESCRIPTION OF BENEFITS

     Section 3.01 Earned Salary; Accrued Vacation. Upon a Covered Executive’s Termination
of Employment, the Company shall pay to the Covered Executive, as soon as practicable but no later
than 30 days after the Covered Executive’s Employment Termination Date, the Covered Executive’s (i)
Salary, to the extent earned but unpaid as of the Employment Termination Date, and (ii) vacation
pay accrued through the Employment Termination Date.

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The Covered Executive shall also be entitled to business expenses incurred but unreimbursed as
of the Employment Termination Date, earned but unpaid bonuses, and other benefits accrued under the
Company’s benefit plans as of the Employment Termination Date; provided that such
amounts shall be paid to the Covered Executive in accordance with the applicable Company plan,
program or policy.

     Section 3.02 Cash Benefits. Upon a Covered Executive’s Termination of Employment and
the Covered Executive’s satisfaction of the conditions specified in Section 3.05 of the Plan, the
Covered Executive shall be entitled to receive the following Benefits, as well as the Benefits
specified in Sections 3.03 and 3.04:

          (a) A lump sum cash severance payment equal to one times (in the case of the
CEO, two times) the sum of: (I) the Covered Executive’s Salary and (II) the
average of the Annual Incentive Plan awards received by the Covered Executive for the last three
fiscal years (or, if less, the number of fiscal years for which the Covered Executive has received
Annual Incentive Plan awards).

          (b) A lump sum cash payment which shall be equal to the product of: (I) the average of the
Annual Incentive Plan awards received by the Covered Executive for the last three fiscal years (or,
if less, the number of fiscal years for which the Covered Executive has received Annual Incentive
Plan awards) and (II) a fraction, the numerator of which is the number of days in the current Plan
Year through the Covered Executive’s Employment Termination Date, and the denominator of which is
365.

          (c)(i) If the Covered Executive is a participant in the Pension Plans and not a Core
Contribution Participant under the Retirement Savings Plan, a lump sum cash payment equal to the
difference between the actuarial present values as of the Employment Termination Date of (A) the
Covered Executive’s accrued vested pension benefits payable at age 65 under the Pension Plans and
(B) those pension benefits calculated by: adding one year (in the case of the CEO, two years) of
service to the actual service credited under such plans for benefit accrual and vesting purposes;
including any early retirement subsidy available under the Pension Plans for which the Covered
Executive is not eligible due to termination before satisfying age and service requirements for
such subsidy; and assuming that the Covered Executive’s benefit will commence in the form of a
straight life annuity on the later of the Employment Termination Date or the date on which the
Covered Executive could retire and commence a benefit under the Pension Plans. The interest rate
used for such purposes shall be the average of the average monthly yields for municipal bonds
published monthly by Moody’s Investors’ Service Inc. for the three months immediately preceding the
Covered Executive’s Employment Termination Date. For purposes of determining actuarial present
values in calculating the pension payment, life expectancy assumptions most frequently used by the
Pension Plan’s actuaries for other purposes shall be used. The calculation of the pension payment
described in this subparagraph shall be made by a nationally recognized firm of enrolled actuaries
acceptable to the Covered Executive and the Company. The Company shall pay the reasonable fees and
expenses of such actuarial firm. The calculation made by such actuarial firm shall be binding on
the Covered Executive and the Company.

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               (ii) If the Covered Executive is a Core Contribution Participant in the Retirement Savings
Plan, a lump sum cash payment (in lieu of the payment described in clause (i) above) equal to the
sum of: (A) the Company Core Contributions and Core Credits (as defined in the Savings Plans) that
the Covered Executive would have received under the Savings Plans during the one-year period (in
the case of the CEO, two-year period) following the Employment Termination Date assuming that (I)
the Covered Executive remained actively employed by the Company during such period, (II) the
Covered Executive’s Salary continued at the higher of the rate in effect on the Employment
Termination Date or the rate in effect immediately prior to any purported reduction in the Covered
Executive’s Salary constituting Good Reason and (III) the Covered Executive’s Annual Incentive Plan
awards were equal in amount to the higher of the most recent award received prior to the Employment
Termination Date and the average of the awards available to the Covered Executive under the Annual
Incentive Plan during and/or for each of the three immediately preceding Fiscal Years; provided
that the amount payable to the Covered Executive under this clause (c) shall in no event include
any Company matching contributions or credits on such Company Core Contributions or Core Credits;
and (B) any early retirement subsidy available under the Pension Plans (as in effect immediately
prior to the beginning of the Contract Period) for which the Covered Executive is not eligible
solely due to termination before satisfying age and service requirements for such subsidy and
assuming that his or her benefit under the Pension Plans will commence in the form of a straight
life annuity on the later of the Employment Termination Date or the date on which he or she could
retire and commence a benefit and otherwise calculated on the basis of the assumptions describe in
clause (i) above.

     Section 3.03 Non-Cash Benefits. In addition to the Benefits provided under Section
3.02, a Covered Executive shall receive and, subject to the Covered Executive’s satisfaction of the
conditions specified in Section 3.05 of the Plan, shall be permitted to retain, the following
additional benefits:

          (a) Following a Covered Executive’s Employment Termination Date, the Company will provide to
the Covered Executive and the Covered Executive’s dependents for one year (in the case of the CEO,
two years) following the Covered Executive’s Employment Termination Date, benefits equivalent to
those provided by the Company under all life insurance, medical, dental, health and accident,
long-term disability, long-term care plans or programs in which the Covered Executive was
participating on the Covered Executive’s Termination Date or, in the event of a reduction in such
benefits constituting Good Reason, equivalent to those provided immediately before such reduction;
provided that such benefits will not be provided beyond the period of time during
which they would have been provided to the Covered Executive under such plans or programs, as in
effect on the Covered Executive’s Employment Termination Date or immediately before a reduction
constituting Good Reason, had the Covered Executive not had a Termination of Employment and such
benefits will be provided for at least the period during which they would have been provided to
Covered Executive had this Plan not been in effect. In the event of the Covered Executive’s death
during such one-year period (in the case of the CEO, two-year period), benefits in respect of the
Covered Executive or to the Covered Executive’s beneficiaries will be provided in accordance with
the terms of such plans or programs as if the Covered Executive were actively employed by the
Company on the date of death of the Company. Any continuation of benefits pursuant to this
subparagraph shall not run concurrent with any continuation rights provided pursuant to the
Consolidated Omnibus Budget

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Reconciliation Act of 1985, as amended (“COBRA”), and for purposes of applying COBRA with
respect to the Covered Executive’s coverage under any group health plan, the end of coverage under
this subparagraph shall be deemed to be the date of a qualifying event resulting from the
termination of a Covered Executive. Except as specifically permitted by Section 409A, the coverage
provided to a Covered Executive during any calendar year will not (i) affect the coverage to be
provided to the Covered Executive in any other calendar year or (ii) be subject to liquidation or
exchange for another benefit. Notwithstanding anything herein to the contrary, the cost of
continued coverage pursuant to this Section 3.03(a) shall be shared by the Covered Executive and
the Company in the same proportion and on the same terms as such costs were shared by the Covered
Executive and the Company prior to the Employment Termination Date or the proportion and terms in
effect immediately prior to any purported change constituting Good Reason.

          (b) Outplacement assistance at times and locations that are convenient to the Covered
Executive; provided that such outplacement services will be provided for a period of no
more than 12 months following the Employment Termination Date.

     Section 3.04 Long-Term Incentive Plan Benefits. In addition to the Benefits payable
under Sections 3.02 and 3.03, a Covered Executive’s Long-Term Incentive Plan awards shall, subject
to the Covered Executive’s satisfaction of the conditions specified in Section 3.05 of the Plan, be
treated in accordance with this Section 3.04.

          (a) The following rules shall apply only with respect to awards granted prior to the Effective
Date to an individual who was a Covered Executive on September 30, 2007:

     (i) All stock options and stock appreciation rights which have been outstanding for at
least one year prior to the Covered Executive’s Employment Termination Date shall continue
to vest in accordance with their normal vesting schedule (if not fully vested as of the
Employment Termination Date) and shall remain in effect for the remainder of their stated
term, as set forth in the agreements governing such awards, in each case as if the Covered
Executive had continued in employment following the Employment Termination Date. All other
stock options and stock appreciation rights shall terminate and be forfeited on the Covered
Executive’s Employment Termination Date.

     (ii) All unvested performance shares or other awards with performance-based vesting
shall vest consistent with the decision made by or on behalf of the Company for other senior
executives for the relevant cycle and payments in respect thereof shall be made within 30
days of vesting.

     (iii) All awards, including career shares, deferred performance shares and restricted
stock, that are subject to time-based vesting or other non-performance-based conditions,
shall become fully vested and payments in respect thereof shall be made on the day after the
Release Effective Date (as defined below).

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          (b) The following rules shall apply with respect to awards granted prior to the Effective Date
to an individual who becomes a Covered Executive after September 30, 2007 and with respect to all
awards granted to any Covered Executive on or after the Effective Date:

     (i) All stock options and stock appreciation rights that are exercisable as of the
Covered Executive’s Employment Termination Date shall continue to be exercisable following
such Employment Termination Date and shall remain exercisable for the remainder of the term
applicable to the stock option or stock appreciation right. All stock options and stock
appreciation rights that are not exercisable as of the Covered Executive’s Employment
Termination Date shall automatically terminate as of the Employment Termination Date.

     (ii) All unearned performance shares and other awards with performance-based vesting
shall vest as of the Covered Executive’s Employment Termination Date in an amount to be
determined by multiplying (A) the number of shares or units that would have been earned by
the Covered Executive under each such award at the level of performance determined by the
Committee at the end of the applicable performance cycle for other senior executives of the
Company by (B) a fraction, the numerator of which is the number of full months that
have elapsed between the beginning of the applicable performance period and he Covered
Executive’s Employment Termination Date and the denominator of which is the number of full
months in such performance period. Payments in respect of such vested awards shall be made
within 30 days of the Committee’s decision.

     (iii) All other awards, including deferred stock units (other than deferred stock units
that vest under the Long-Term Incentive Plan or the applicable award agreement upon a
Covered Executive’s death, disability or retirement) and restricted stock, that are subject
to time-based vesting or other non-performance based conditions shall vest as of the Covered
Executive’s Employment Termination Date in an amount determined by multiplying (A) the
number of shares or units that are subject to the award by (B) a fraction, the numerator of
which is the number of full months that shall have elapsed since the beginning of the
applicable vesting period and the denominator of which is the number of full months in the
vesting period. Deferred stock units that become vested under the Long-Term Incentive Plan
or applicable award agreement upon a Covered Executive’s death, disability or retirement
shall become fully vested on the Covered Executive’s Employment Termination Date. Payments
in respect of such vested awards shall be made on the day after the Release Effective Date
(as defined below).

          (c) For purposes of this Section 3.04, fractional shares of Common Stock shall be rounded up
to the next highest whole share of stock.

          (d) Notwithstanding anything herein to the contrary, the treatment of Long-Term Incentive
Plan awards held by a Covered Executive whose Termination of Employment is a Retirement (as defined
in the Long-Term Incentive Plan) shall be determined under the Long-Term Incentive Plan and
applicable award agreement (and not under this Section 3.04) ) to the extent determined by the
Committee on the Covered Executive’s Employment Termination Date to be more favorable to the
Covered Executive.

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     Section 3.05 Conditions to Entitlement to Benefit. To be eligible to receive (or, in
the case of benefits provided under Section 3.03, retain the value of) any Benefits under the Plan
after the Covered Executive’s Employment Termination Date has been set, a Covered Executive must
(a) continue in his then current office and perform such duties for the Company as are typically
related to the Covered Executive’s position (or such other position as the Board reasonably
requests) including identifying, recruiting and/or transitioning the Covered Executive’s successor,
in all events performing all assigned duties in the manner reasonably directed by the CEO in his
sole discretion, or if the CEO is the Covered Officer, by the Board in its sole discretion, and
cease his employment on the Employment Termination Date; (b) prior to the 60th day
following the Employment Termination Date, execute a release and discharge of the Company, in
substantially the form attached hereto as Appendix A, from any and all claims, demands or causes of
action (other than as provided in said Appendix A) and such release must become effective and
irrevocable prior to the 60th day following the Employment Termination Date (such
60th day, the “Release Effective Date”); and (c) prior to the Release Effective Date,
execute a noncompetition, nonsolicitation, and nondisparagement agreement that extends for the
two-year period following the Covered Executive’s Employment Termination Date in substantially the
form attached hereto as Appendix B, with such changes therein as the Administrator shall determine,
in his discretion, acting on behalf of the Company. No Benefits due hereunder shall be paid to a
Covered Executive who has not complied in all respects with the requirements of this Section 3.05.

     Section 3.06 Method of Payment. Benefits under the Plan shall be paid as follows:

          (a) The cash Benefits determined pursuant to Section 3.02 hereof shall be paid in a lump sum,
subject to all employment and withholding taxes applicable to the type of payments made. Such
payments shall be made on the day after the Covered Executive’s Release Effective Date.

          (b) The non-cash Benefits described in Section 3.03 shall be provided after the Employment
Termination Date in accordance with the applicable Company plan, program or policy;
provided that if the Covered Executive fails to comply with all of the conditions
set forth in Section 3.05, the Covered Executive shall be required to repay to the Company in cash
within five (5) business days after written demand is made therefor by the Company, an amount equal
to the value of any Benefit received under Section 3.03.

          (c) Long-Term Incentive Plan awards referred to in Section 3.04 will be paid on the later of
the date contemplated under the applicable award agreement and the date (if any) provided for under
Section 3.04; provided that payment shall be made in accordance with the applicable
award agreement to the extent required to avoid taxes or penalties under Section 409A.

     Section 3.07 Death or Disability. If a Covered Executive incurs Disability or dies
before the Employment Termination Date has been set, no Plan payments or other benefits will be due
and owing to the Covered Executive or, in the case of his death, to his estate or beneficiary.

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     If a Covered Executive incurs Disability or dies after his Employment Termination Date has
been set but not attained, the Administrator shall cause any Benefits due under the Plan to be paid
to the Covered Executive or, in the case of his death, to the Covered Executive’s Designated
Beneficiary as defined in the Long-Term Incentive Plan; provided, however, that if the Covered
Executive dies after he has retired prior to attaining the Employment Termination Date, no Benefits
shall be due and owing under the Plan to the Covered Executive’s designated beneficiary, his
estate, or any other person. For this purpose, “retire” means to have separated from employment
and begun to receive an immediate pension benefit under a Company-sponsored defined benefit pension
plan.

     Section 3.08 Change in Control. In the event of a Change in Control of the Company,
the change in control agreement applicable to the Covered Executive shall continue in full force
and effect and the Plan shall be null and void; and, if the Change in Control occurs after the
Employment Termination Date has been set but before the Employment Termination Date, the change in
control agreement applicable to the Covered Executive shall continue in full force and effect and
the Employment Termination Date under the Plan shall be treated under the change in control
agreement as the Covered Executive’s “Termination Date” for other than death, “Disability” or
“Cause”, as such terms appearing in quotations are defined in the change in control agreement, and
the Plan shall be null and void.

ARTICLE IV

ADMINISTRATION

     Section 4.01 Authority and Duties. It shall be the duty of the Administrator, on the
basis of information supplied by the Company, to determine the entitlement of each Covered
Executive to Benefits under the Plan and to approve the amount of the cash Benefits payable to each
such Covered Executive. The Company shall make such payments as the Administrator determines to be
due to Covered Executives. The Administrator shall have the full power and authority to (a)
determine whether a Covered Executive’s termination of employment with the Company constitutes a
Termination of Employment for purposes of the Plan and (b) construe, interpret and administer the
Plan, to correct deficiencies therein, and to supply omissions. All decisions, actions, and
interpretations of the Administrator shall be final, binding, and conclusive upon the parties. The
Committee may delegate to appropriate Company officers its authority and its duties as it shall
deem appropriate in its sole discretion, and the actions of such person or persons shall have the
same force and effect as any action of the Committee in respect of the Plan (other than any action
by such person or persons to delegate the Committee’s duties or authority hereunder); provided,
however, that the Committee shall retain authority to approve any payments to persons who are
treated as executive officers of the Company for U.S. securities law purposes.

     Section 4.02 Expenses of the Administrator. All reasonable expenses of the
Administrator shall be paid or reimbursed by the Company upon proper documentation. The Company
shall indemnify and defend the Administrator against personal liability for actions taken in good
faith in the discharge of its duties hereunder.

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     Section 4.03 Actions of the Administrator. Whenever a determination is required of
the Administrator under the Plan, such determination shall be made solely at the discretion of the
Administrator. In addition, the exercise of discretion by the Administrator need not be uniformly
applied to similarly situated Covered Executives and shall be final and binding on each Covered
Executive or beneficiary(ies) to whom the determination is directed.

ARTICLE V

AMENDMENT AND TERMINATION

          The Company, acting through the Committee, retains the right, at any time and from time to
time, to amend, suspend, or terminate the Plan in whole or in part, for any reason, and, except as
provided below, without either the consent of or the prior notification to any Covered Executive.
Notwithstanding the foregoing and except as specifically provided under Section 7.12(d), no such
amendment, suspension or termination shall (a) give the Company the right to recover any amount
paid to a Covered Executive prior to the date of such action, (b) cause the cessation and
discontinuance of payments of Benefits to any person or persons under the Plan already receiving
Benefits, or (c) be effective to terminate or reduce the Benefits or prospective Benefits of any
Covered Executive whose Employment Termination Date has been set as of the date of such amendment,
suspension or termination (unless the express written consent of the Covered Executive has been
obtained with respect thereto).

ARTICLE VI

DUTIES OF THE COMPANY

     Section 6.01 Records. The Company shall supply to the Administrator all records and
information necessary to the performance of the Administrator’s duties.

     Section 6.02 Discretion. Any decisions, actions or interpretations to be made under
the Plan by the Board, the Committee, the Company, or the Administrator, acting on behalf of the
Company, shall be made in its or their respective sole discretion, not in any fiduciary capacity
and need not be uniformly applied to similarly situated individuals and shall be final, binding and
conclusive upon all parties.

ARTICLE VII

MISCELLANEOUS

     Section 7.01 Nonalienation of Benefits. None of the payments, Benefits or rights of
any Covered Executive shall be subject to any claim of any creditor, and, in particular, to the
fullest extent permitted by law, all such payments, Benefits and rights shall be free from
attachment, garnishment, trustee’s process, or any other legal or equitable process available to
any creditor of such Covered Executive. No Covered Executive shall have the right to alienate,
anticipate, commute, pledge, encumber or assign any of the Benefits or payments which he may expect
to receive, contingently or otherwise, under the Plan.

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     Section 7.02 No Contract of Employment. Neither the establishment of the Plan, nor
any modification thereof, nor the creation of any fund, trust or account, nor the payment of any
Benefits shall be construed as giving any Covered Executive, or any person whosoever, the right to
be retained in the service of the Company, and all Covered Executives shall remain subject to
discharge to the same extent as if the Plan had never been adopted.

     Section 7.03 Entire Agreement. Except as may be provided in a change in control
agreement that is in effect for a Covered Executive at the time of a Change in Control between the
Company and a Covered Executive, this Plan document, as it may be amended by the Committee, and the
documents specifically referenced herein, or in such amendment, shall constitute the entire
agreement between the Company and the Covered Executive with respect to the Benefits promised
hereunder and no other agreements, representations, oral or otherwise, express or implied, with
respect to such Benefits or any severance benefits shall be binding on the Company.

     Section 7.04 Severability of Provisions. If any provision of the Plan shall be held
invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions
hereof, and the Plan shall be construed and enforced as if such provisions had not been included.

     Section 7.05 Successors, Heirs, Assigns, and Personal Representatives. The Plan shall
be binding upon the heirs, executors, administrators, successors and assigns of the parties,
including each Covered Executive, present and future.

     Section 7.06 Headings and Captions. The headings and captions herein are provided for
reference and convenience only, shall not be considered part of the Plan, and shall not be employed
in the construction of the Plan.

     Section 7.07 Gender and Number. Except where otherwise clearly indicated by context,
the masculine and the neuter shall include the feminine and the neuter; the singular shall include
the plural, and vice-versa.

     Section 7.08 Unfunded Plan. The Plan shall not be funded. The Company may, but shall
not be required to, set aside or earmark an amount necessary to provide the Benefits specified
herein (including the establishment of trusts). In any event, no Covered Executive shall have any
right to, or interest in, any assets of the Company.

     Section 7.09 Payments to Incompetent Persons, Etc. Any Benefit payable to or for the
Benefit of a minor, an incompetent person or other person incapable of receipting therefor shall be
deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing
to provide for the care of such person, and such payment shall fully discharge the Company, the
Administrator and all other parties with respect thereto.

     Section 7.10 Lost Payees. A Benefit shall be deemed forfeited if the Administrator is
unable to locate a Covered Executive to whom a Benefit is due. Such Benefit shall be reinstated if
application is made by the Covered Executive for the forfeited Benefit while the Plan is in
operation.

-12-

 

     Section 7.11 Controlling Law and Nature of Plan. The Plan shall be construed and
enforced according to the laws of the Commonwealth of Pennsylvania to the extent not preempted by
Federal law. The Plan is not intended to be included in the definitions of “employee pension
benefit plan” and “pension plan” set forth under Section 3(2) of the Employee Retirement Income
Security Act of 1974, as amended (“ERISA”). Rather, the Plan is intended to meet the descriptive
requirements of a plan constituting a “severance pay plan” within the meaning of regulations
published by the Secretary of Labor at Title 29, Code of Federal Regulations, Section 2510.3-2(b).

     Section 7.12 Section 409A.

          (a) It is intended that the provisions of this Plan comply with Section 409A, and all
provisions of this Plan shall be construed and interpreted in a manner consistent with the
requirements for avoiding taxes or penalties under Section 409A.

          (b) Neither the Covered Executive nor any of the Covered Executive’s creditors or
beneficiaries shall have the right to subject any deferred compensation (within the meaning of
Section 409A) payable under this Plan or under any other plan, policy, arrangement or agreement of
or with the Company or any of its affiliates (this Plan and such other plans, policies,
arrangements and agreements, the “Company Plans”) to any anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment or garnishment. Except as permitted under Section
409A, any deferred compensation (within the meaning of Section 409A) payable to the Covered
Executive or for the Covered Executive’s benefit under any Company Plan may not be reduced by, or
offset against, any amount owing by the Covered Executive to the Company or any of its affiliates.

          (c) If, at the time of the Covered Executive’s separation from service (within the meaning of
Section 409A), (i) the Covered Executive shall be a specified employee (within the meaning of
Section 409A and using the indemnification methodology selected by the Company from time to time)
and (ii) the Company shall make a good faith determination that an amount payable under a Company
Plan constitutes deferred compensation (within the meaning of Section 409A) the payment of which is
required to be delayed pursuant to the six-month delay rule as set forth in Section 409A in order
to avoid taxes or penalties under Section 409A, then the Company shall not pay such amount on the
otherwise scheduled payment date but shall instead accumulate such amount and pay it, without
interest, on the first business day after such six-month period.

          (d) Notwithstanding any provision of this Plan or any Company Plan to the contrary, in light
of the uncertainty with respect to the proper application of Section 409A, the Company reserves the
right to make amendments to this Plan and any Company Plan as the Company deems necessary or
desirable to avoid the imposition of taxes or penalties under Section 409A. In any case, the
Covered Executive is solely responsible and liable for the satisfaction of all taxes and penalties
that may be imposed on the Covered Executive for the Covered Executive’s account in connection with
any Company Plan (including any taxes and penalties under Section 409A), and neither the Company
nor any affiliate shall have any obligation to indemnify or otherwise hold the Covered Executive
harmless from any or all of such taxes or penalties.

-13-

 

APPENDIX A

GENERAL RELEASE

          1. I,
                                        
(the “Executive”), for and in consideration of (a) certain
severance benefits to be paid and provided to me by Air Products and Chemicals, Inc. (the
“Company”) under the Air Products and Chemicals, Inc. Corporate Executive Committee Separation
Program (the “Plan”) and (b) the Company’s execution of a release in favor of the Executive, on the
date this General Release becomes irrevocable, substantially in the form attached hereto as
Annex 1, and conditioned upon such payments and provisions, do hereby REMISE, RELEASE, AND
FOREVER DISCHARGE Air Products and Chemicals, Inc. (the “Company”) and each of its past or present
subsidiaries and affiliates, its and their past or present officers, directors, shareholders,
employees and agents, their respective successors and assigns, heirs, executors and administrators,
the pension and employee benefit plans of the Company, or of its past or present subsidiaries or
affiliates, and the past or present trustees, administrators, agents, or employees of the pension
and employee benefit plans (hereinafter collectively included within the term the “Company”),
acting in any capacity whatsoever, of and from any and all manner of actions and causes of actions,
suits, debts, claims and demands whatsoever in law or in equity, which I ever had, now have, or
hereafter may have, or which my heirs, executors or administrators hereafter may have, by reason of
any matter, cause or thing whatsoever from the beginning of my employment with the Company to the
date of these presents and particularly, but without limitation of the foregoing general terms, any
claims arising from or relating in any way to my employment relationship and the termination of my
employment relationship with the Company, including but not limited to, any claims which have been
asserted, could have been asserted, or could be asserted now or in the future under any federal,
state or local laws, including any claims under the Pennsylvania Human Relations Act, 43 PA. C.S.A.
§§ 951 et seq., as amended, the Rehabilitation Act of 1973, 29 USC §§ 701 et seq., as amended,
Title VII of the Civil Rights Act of 1964, 42 USC §§ 2000e et seq., as amended, the Civil Rights
Act of 1991, 2 USC §§ 60/ et seq., as applicable, the Age Discrimination in Employment Act of 1967,
29 USC §§ 621 et seq., as amended (“ADEA”), the Americans with Disabilities Act, 29 USC §§ 706 et
seq., and the Employee Retirement Income Security Act of 1974, 29 USC §§ 301 et seq., as amended,
any contracts between the Company and me and any common law claims now or hereafter recognized and
all claims for counsel fees and costs; provided, however, that this Release shall not apply to any
entitlements under the terms of the Plan or under any other plans or programs of the Company in
which I participated and under which I have accrued and become entitled to a benefit other than
under any Company separation or severance plan or programs. Notwithstanding the foregoing, I
understand that I shall be indemnified by the Company as to any liability, cost or expense for
which I would have been indemnified during employment, in accordance with the Company’s certificate
of incorporation or insurance coverages in force for employees of the Company serving in executive
capacities for actions taken on behalf of the Company within the scope of my employment by the
Company.

          2. Subject to the limitations of paragraph 1 above, I expressly waive all rights afforded by
any statute which expressly limits the effect of a release with respect to unknown claims. I
understand the significance of this release of unknown claims and the waiver of statutory
protection against a release of unknown claims.

-14-

 

          3. I hereby agree and recognize that my employment by the Company was/will be permanently and
irrevocably severed on
                                        ,
20      and the Company has no obligation, contractual or
otherwise to me to hire, rehire or reemploy me in the future. I acknowledge that the terms of the
Plan provide me with payments and benefits which are in addition to any amounts to which I
otherwise would have been entitled.

          4. I hereby agree and acknowledge that the payments and benefits provided by the Company are
to bring about an amicable resolution of my employment arrangements and are not to be construed as
an admission of any violation of any federal, state or local statute or regulation, or of any duty
owed by the Company and that the Plan was, and this Release is, executed voluntarily to provide an
amicable resolution of my employment relationship with the Company.

          5. I hereby acknowledge that nothing in this Release shall prohibit or restrict me from: (a)
making any disclosure of information required by law; (b) providing information to, or testifying
or otherwise assisting in any investigation or proceeding brought by, any federal regulatory or law
enforcement agency or legislative body, any self-regulatory organization, or the Company’s
designated legal, compliance or human resources officers; or (c) filing, testifying, participating
in or otherwise assisting in a proceeding relating to an alleged violation of any federal, state or
municipal law relating to fraud, or any rule or regulation of the Securities and Exchange
Commission or any self-regulatory organization.

          6. I hereby certify that I have read the terms of this Release, that I have been advised
by the Company to discuss it with my attorney, that I have received the advice of counsel and that
I understand its terms and effects. I acknowledge, further, that I am executing this Release of my
own volition with a full understanding of its terms and effects and with the intention of releasing
all claims recited herein in exchange for the consideration described in the Agreement, which I
acknowledge is adequate and satisfactory to me. None of the above named persons, nor their agents,
representatives or attorneys have made any representations to me concerning the terms or effects of
this Release other than those contained herein.

          7. I hereby acknowledge that I have been informed that I have the right to consider this
Release for a period of 21 days prior to execution. I also understand that I have the right to
revoke this Release for a period of seven days following execution by giving written notice to the
Company at 7201 Hamilton Boulevard, Allentown Pennsylvania 18195-1501, Attention: General Counsel.

          8. I hereby further acknowledge that the terms of Appendix B of the Plan continue to apply for
the balance of the time periods provided therein and that I will abide by and fully perform such
obligations.

-15-

 

         Intending to be legally bound hereby, I execute the foregoing Release this
           day of
                              , 20 ___.

	 	 	 
	 
	 

	 	 
	Witness

	 	Executive

-16-

 

ANNEX 1

GENERAL RELEASE

          1. Air Products and Chemicals, Inc. (the “Company”) on its behalf and on behalf of its
subsidiaries and affiliates, their officers, directors, partners, employees and agents, their
respective successors and assigns, heirs, executors and administrators (hereinafter collectively
included within the term “Company”), for and in consideration of                                          (the
“Executive”) executing the general release of claims against the Company dated                                          (the
“Executive’s Release of the Company”), and other good and valuable consideration, does hereby
REMISE, RELEASE, AND FOREVER DISCHARGE the Executive, his assigns, heirs, executors and
administrators (hereinafter collectively included within the term “Executive”), acting in any
capacity whatsoever, of and from any and all manner of actions and causes of actions, suits, debts,
claims and demands whatsoever in law or in equity, which it ever had, now have, or hereafter may
have, by reason of any matter, cause or thing whatsoever from the beginning of the Executive’s
employment with the Company to the date of this Release arising from or relating in any way to the
Executive’s employment relationship and the termination of his employment relationship with the
Company, including but not limited to, any claims which have been asserted, could have been
asserted, or could be asserted now or in the future under any federal, state or local laws, any
contracts between the Company and the Executive, other than the Executive’s Release of the Company,
the Executive’s Noncompetition, Nonsolicitation, and Nondisparagement Agreement with the Company,
and the Employee Patent and Confidential Information Agreement entered into by the Executive on
                                        , and any common law claims now or hereafter recognized and all claims for counsel
fees and costs, but in no event shall this release apply to any action attributable to a criminal
act or to an action outside the scope of the Executive’s employment.

          2. Subject to the limitations of paragraph 1 above, the Company expressly waives all rights
afforded by any statute which expressly limits the effect of a release with respect to unknown
claims. The Company understands the significance of this release of unknown claims and the waiver
of statutory protection against a release of unknown claims.

          3. The Company hereby certifies that it has been advised by counsel in the preparation and
review of this Release.

          Intending to be legally bound hereby, Air Products and Chemicals, Inc. executes the foregoing
Release this          day of                     , 20    .

	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	Witness
	 	 	 	 	 	 

-17-

 

APPENDIX B

NONCOMPETITION, NONSOLICITATION, AND NONDISPARAGEMENT
AGREEMENT

          I,                                          (the “Executive”), for and in consideration of (a) certain severance
benefits to be paid and provided to me by Air Products and Chemicals, Inc. (the “Company”) under
the Air Products and Chemicals, Inc. Corporate Executive Committee Separation Program (the “Plan”),
and (b) the Company’s execution of a release in favor of the Executive, I, the Executive, hereby
covenant and agree as follows:

          1. The Executive acknowledges that the Company is generally engaged in business throughout the
world. During the Executive’s employment by the Company and for two years after the Executive’s
Employment Termination Date (as defined in the Plan), the Executive agrees that he will not, unless
acting with the prior written consent of the Company, directly or indirectly, own, manage, control,
or participate in the ownership, management or control of, or be employed or engaged by, or
otherwise affiliated or associated with, as an officer, director, employee, consultant, independent
contractor or otherwise, any other corporation, partnership, proprietorship, firm, association, or
other business entity, or otherwise engage in any business which is engaged in any manner anywhere
in any business which, as of the Employment Termination Date, is engaged in by the Company, has
been reviewed with the Board for development to be owned or managed by the Company, and/or has been
divested by the Company but as to which the Company has an obligation to refrain from involvement,
but only for so long as such restriction applies to the Company; provided, however, that the
ownership of not more than 5% of the equity of a publicly traded entity shall not be deemed to be a
violation of this paragraph.

          2. The Executive also agrees that he will not, directly or indirectly, during the period
described in paragraph (1), induce any person who is an employee, officer, director, or agent of
the Company, to terminate such relationship, or employ, assist in employing or otherwise be
associated in business with any present or former employee or officer of the Company, including
without limitation those who commence such positions with the Company after the Employment
Termination Date.

          3. For the purposes of this Agreement, the term “Company” shall be deemed to include Air
Products and the subsidiaries and affiliates of Air Products.

          4. The Executive acknowledges and agrees that the restrictions contained in this Agreement are
reasonable and necessary to protect and preserve the legitimate interests, properties, goodwill and
business of the Company, that the Company would not have entered into this Agreement in the absence
of such restrictions and that irreparable injury will be suffered by the Company should the
Executive breach the provisions of this Section. The Executive represents and acknowledges that
(a) the Executive has been advised by the Company to consult the Executive’s own legal counsel in
respect of this Agreement, (b) the Executive has consulted with and been advised by his own counsel
in respect of this Agreement, and (c) the Executive

-18-

 

has had full opportunity, prior to execution of this Agreement, to review thoroughly this
Agreement with the Executive’s counsel.

          5. The Executive further acknowledges and agrees that a breach of the restrictions in this
Agreement will not be adequately compensated by monetary damages. The Executive agrees that the
Company shall be entitled to (a) preliminary and permanent injunctive relief, without the necessity
of proving actual damages, or posting of a bond, (b) an equitable accounting of all earnings,
profits and other benefits arising from any violation of this Agreement, and (c) enforce the terms,
including requiring forfeitures, under other plans, programs and agreements under which the
Executive has been granted a benefit contingent on a covenant similar to those contained in this
Agreement, which rights shall be cumulative and in addition to any other rights or remedies to
which the Company may be entitled. In the event that the provisions of this Agreement should ever
be adjudicated to exceed the limitations permitted by applicable law in any jurisdiction, it is the
intention of the parties that the provision shall be amended to the extent of the maximum
limitations permitted by applicable law, that such amendment shall apply only within the
jurisdiction of the court that made such adjudication and that the provision otherwise be enforced
to the maximum extent permitted by law.

          6. If the Executive breaches his obligations under this Agreement, he agrees that suit may be
brought, and that he consents to personal jurisdiction, in the United States District Court for the
Eastern District of Pennsylvania, or if such court does not have jurisdiction or will not accept
jurisdiction, in any court of general jurisdiction in Allentown, Pennsylvania; consents to the
non-exclusive jurisdiction of any such court in any such suit, action or proceeding; and waives any
objection which he may have to the laying of venue of any such suit, action or proceeding in any
such court. The Executive also irrevocably and unconditionally consents to the service of any
process, pleadings, notices or other papers.

          7. Executive further agrees, covenants, and promises that he will not in any way communicate
the terms of this Agreement to any person other than his immediate family and his attorney and
financial consultant or when necessary to advise a third party of his obligations under this
Agreement. Notwithstanding the foregoing, the Company and Executive also agree that for a period
of two years following the Employment Termination Date, Executive will provide and that at all
times after the date hereof the Company may similarly provide, with prior written notice to
Executive, a copy of this Agreement to any business or enterprise (a) which Executive may directly
or indirectly own, manage, operate, finance, join, control or of which he may participate in the
ownership, management, operation, financing, or control, or (b) with which Executive may be
connected as an officer, director, employee, partner, principal, agent, representative, consultant,
or otherwise, or in connection with which Executive may use or permit to be used Executive’s name.
Executive agrees not to disparage the name, business reputation, or business practices of the
Company or its subsidiaries or affiliates, or its or their officers, employees, or directors, and
the Company agrees not to disparage the name or business reputation of Executive.

          8. The Executive hereby expressly acknowledges and agrees that (a) the provisions of the
Employee Patent and Confidential Information Agreement entered into by him on                                         ,
shall continue to apply in accordance with its terms, and (b) the provisions of the Executive’s
outstanding incentive award agreements granted under the

-19-

 

Company’s Long-Term Incentive Plan, as defined in the Plan, shall continue to apply in
accordance with their terms except as otherwise provided in Section 3.04 of the Plan and except
that, for purposes of interpreting the provisions of the first indented clause of Section 2 of the
“Conditions"(as defined in, and as set forth in Exhibit A to, each of the Executive’s award
agreements under the Long-Term Incentive Plan), “in Competition with the Company” shall be
construed as provided in this Agreement.

          9. No failure or delay on the part of the Company in exercising any power or right hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or
power preclude any further or other exercise thereof or the exercise of any other right or power
hereunder. No modification or waiver of any provision of this Agreement or consent to any
departure by any party therefrom shall in any event be effective until the same shall be in writing
and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice to or demand on any party in any case shall entitle such party
to any other or further notice or demand in similar or other circumstances.

          10. This Agreement shall be construed in accordance with the laws of the Commonwealth of
Pennsylvania without giving effect to its conflict of law’s provisions. This Agreement shall
extend to and enure to the benefit of the respective successors and assigns of the Company.

          Intending to be legally bound hereby, I execute the Noncompetition, Nonsolicitation, and
Nondisparagement Agreement this          day of                                         , 20      
.

	 	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	Witness

	 	 	 	Executive

-20-exv10w20

Exhibit 10.20

AIR PRODUCTS AND CHEMICALS, INC.

DEFERRED COMPENSATION PLAN

AS AMENDED AND RESTATED

EFFECTIVE JANUARY 1, 2009

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Preamble
	 	 	1	 
	Article 1 Purpose of the Plan
	 	 	1	 
	Section 1.1     Purpose
	 	 	1	 
	Article 2 Definitions
	 	 	2	 
	Section 2.1     Definitions
	 	 	2	 
	Section 2.2     Gender and Number
	 	 	9	 
	Article 3 Deferral Elections
	 	 	9	 
	Section 3.1     Deferral Elections
	 	 	9	 
	Article 4 Accounting and Valuation
	 	 	11	 
	Section 4.1     Accounting for Elective Deferrals, Core Credits, Matching Credits,
Bonus Deferrals, Deferred Special Bonus and Earnings
	 	 	11	 
	Section 4.2     Deferred Company Stock Account
	 	 	13	 
	Section 4.3     Statements to Participants
	 	 	15	 
	Article 5 Vesting and Distribution
	 	 	16	 
	Section 5.1     Vesting
	 	 	16	 
	Section 5.2     Eligibility for Distribution
	 	 	16	 
	Section 5.3     Form of Payment and Commencement of Distribution to Participants
	 	 	17	 
	Section 5.4     Change in Control
	 	 	21	 
	Article 6 Administration
	 	 	21	 
	Section 6.1     Plan Administration and Interpretation
	 	 	21	 
	Section 6.2     Claim and Appeal Procedure
	 	 	22	 
	Article 7 Funding
	 	 	24	 
	Section 7.1     Benefits Unfunded
	 	 	24	 
	Section 7.2     Non-qualified Plan
	 	 	24	 
	Section 7.3     ERISA
	 	 	24	 
	Article 8 Amendment and Termination
	 	 	25	 
	Section 8.1     Amendment and Termination
	 	 	25	 
	Article 9 General Provisions
	 	 	26	 
	Section 9.1     Non-alienation of Benefits
	 	 	26	 
	Section 9.2     Contractual Obligations
	 	 	26	 
	Section 9.3     No Employment Rights
	 	 	27	 
	Section 9.4     Minor or Incompetent
	 	 	27	 
	Section 9.5     Unclaimed Amounts
	 	 	27	 
	Section 9.6     Payee Unknown
	 	 	27	 
	Section 9.7     Illegal or Invalid Provision
	 	 	28	 
	Section 9.8     Governing Law and Headings
	 	 	28	 
	Section 9.9     Liability Limitation
	 	 	28	 
	Section 9.10   Notices
	 	 	28	 
	Section 9.11   Entire Agreement
	 	 	29	 
	Section 9.12   Binding Effect
	 	 	29	 

ii

 

AIR PRODUCTS AND CHEMICALS, INC.

DEFERRED COMPENSATION PLAN

As Restated Effective January 1, 2009

Preamble

          WHEREAS, Air Products and Chemicals, Inc. (the “Company”) established, effective October 1,
1983, a nonqualified savings plan named the Supplementary Savings Plan (the “Plan”) for employees
whose participation in the Air Products and Chemicals, Inc. Retirement Savings Plan (formerly the
“Retirement Savings and Stock Ownership Plan,” hereinafter referred to as “the Savings Plan”) is
limited due to certain provisions of the Internal Revenue Code (the “Code”), which Plan was
thereafter amended and restated effective as of January 1, 1987, October 1, 1989, April 1, 1998,
January 1, 2005 and January 1, 2008; and

          WHEREAS, the Company wishes to restate the Plan.

          NOW, THEREFORE, the Plan is hereby restated effective January 1, 2009, as set forth herein.
The rights and benefits, if any, of a former employee shall be determined in accordance with the
provisions of the Plan in effect on the date of his or her Separation from Service with the Company
and all Employers except as required to comply in practice with the requirements of Code Section
409A.

Article 1

Purpose of the Plan

     Section 1.1 Purpose. This Plan is a non-qualified, unfunded employee benefit plan established
to provide supplementary and excess retirement savings benefits to a certain select group of
management or highly compensated persons in the employ of Air Products and Chemicals, Inc. and
participating subsidiaries.

1

 

Article 2

Definitions

     Section 2.1 Definitions. Except as specifically provided herein, all capitalized terms shall
have the meaning provided in the Savings Plan. As used herein, the following terms shall have the
following meanings, unless the context clearly indicates otherwise:

	 	(a)	 	“Annual Incentive Plan” shall mean the Air Products and Chemicals, Inc. 2001
Annual Incentive Plan, as amended from time to time.
	 
	 	(b)	 	“Annual Salary” shall mean the total annual salary of an Employee which would
be payable by the Company or an Employer if the Employee made no Deferral Election
under the Plan or any similar deferral election under the Savings Plan or other
deferred compensation or cafeteria plan, excluding:

	 	(1)	 	Except as expressly provided herein, discretionary bonuses or
awards, including, without limitation, Annual Incentive Plan awards, stock
options, or other stock awards, scholastic aid, or payments and awards for
suggestions and patentable inventions, other merit awards, expense allowances,
and noncash compensation (including imputed income).
	 
	 	(2)	 	Core Credits and Matching Credits under this Plan and Company
Core Contributions and Company Matching Contributions under the Savings Plan;
accruals or distributions under the Savings Plan and this Plan; and payments,
accruals, and distributions under any severance or incentive plan or other
retirement, pension, or profit-sharing plan of the Company or an Employer;

2

 

	 	(3)	 	Overtime payments, shift premium payments, commissions,
mileage, and payments in lieu of vacation by the Company or an Employer; and
	 
	 	(4)	 	All supplemental compensation from the Company or an Employer
for domestic and overseas assignments, including without limitation, premium
pay, cost of living and relocation allowances, mortgage interest allowances and
forgiveness, tax-equalization payments, and other emoluments of such service.

	 	(c)	 	“Beneficiary” shall mean the person or persons, if any, designated by the
Participant on a form provided by the Plan Administrator, or, in the event no such
designation is made or the person or persons designated do not survive the Participant,
shall mean the person(s), trust(s), or other recipient(s) who would be entitled to
receive the balance of a Participant’s accounts, if any, under the Savings Plan
following the Participant’s death. Any designation of a Beneficiary may be revoked or
changed by the Participant at any time and from time to time prior to death without the
consent of the Beneficiary.
	 
	 	(d)	 	“Board” shall mean the board of directors of the Company or any Committee
thereof acting on behalf of the Board pursuant to its charter or other delegation of
power from the Board, or the Chairman of the Board acting pursuant to a delegation of
authority from the Board.
	 
	 	(e)	 	“Bonus Deferrals” shall mean deferred payment awards described in Section 5 of
the Annual Incentive Plan or any predecessor provision thereof that are deferred
pursuant to a Participant’s Deferred Bonus Election described therein.

3

 

	 	(f)	 	“Change in Control” shall mean the first to occur of any one of the
events described below:

	 	(1)	 	Change in Ownership. The date any one person, or more than one
person acting as a group (as determined under 1.409A-3(i)(5)(v)(B)), acquires
ownership of stock of the Company that, together with stock held by such person
or group, constitutes more than 50% of the total fair market value or total
voting power of the stock of the Company. However, if any one person, or more
than one person acting as a group, is considered to own more than 50% of the
total fair market value or total voting power of the stock of the Company, the
acquisition of additional stock by the same person or persons is not considered
to cause a change in the ownership of the Company. An increase in the
percentage of stock owned by any one person, or persons acting as a group, as a
result of a transaction in which the Company acquires its stock in exchange for
property will be treated as an acquisition of stock for purposes of this
section.
	 
	 	(2)	 	Change in Effective Control. The date any one person, or more
than one person acting as a group (as determined under 1.409A-3(i)(5)(v)(B)),
acquires (or has acquired during the 12-month period ending on the date of the
most recent acquisition by such person or persons) ownership of stock of the
Company possessing 30% or more of the total voting power of the stock of the
Company.
	 
	 	(3)	 	Change in Board. The date a majority of members of the
Company’s Board of Directors is replaced during any 12-month period by
directors whose appointment or election is not endorsed by a majority of the
members of the Company’s Board of Directors before the date of the appointment
or election.

4

 

	 	(g)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.
	 
	 	(h)	 	“Claims Committee” shall mean the committee appointed by the Vice
President-Human Resources to review and determine appeals of claims arising under the
Plan in accordance with Section 6.2.
	 
	 	(i)	 	“Common Stock” shall mean common stock of the Company.
	 
	 	(j)	 	“Company” shall mean Air Products and Chemicals, Inc. and any successor thereto
by merger, purchase, or otherwise.
	 
	 	(k)	 	“Company Core Contributions” shall mean Company Core Contributions made on
behalf of a Participant under, and as defined in, the Savings Plan.
	 
	 	(l)	 	“Company Matching Contributions” shall mean Company Matching Contributions made
on behalf of a Participant under, and as defined in, the Savings Plan.
	 
	 	(m)	 	“Core Credits” shall mean the amounts credited to a Participant’s Deferred Cash
Account under Section 4.1(c) and (d).
	 
	 	(n)	 	“Deferral Election” shall mean an election to defer Annual Salary made by an
Employee as described in Section 3.1, including deemed elections.
	 
	 	(o)	 	“Deferred Bonus Election” shall mean an election to defer all or a portion of
an award under the Annual Incentive Plan made by an Employee in accordance with Section
5 of the Annual Incentive Plan or any successor provision thereto.

5

 

	 	(p)	 	“Deferred Cash Account” shall mean a Participant’s sub-account to which dollar
denominated amounts attributable to Elective Deferrals, Matching Credits, Bonus Deferrals, Core Credits, deferred Special Bonus and related
earnings are credited as described in Section 4.1 below.
	 
	 	(q)	 	“Deferred Company Stock Account” shall mean a Participant’s sub-account to
which company stock units are credited as described in Section 4.2 below.
	 
	 	(r)	 	“Deferred Compensation Account” shall mean the account established for a
Participant pursuant to Section 4.1 which consists of the Deferred Cash Account and the
Deferred Company Stock Account.
	 
	 	(s)	 	“Disability” shall mean any medically determinable physical or mental
impairment that can be expected to result in death or can be expected to last for a
continuous period of not less than six months, where such impairment causes the
Employee to be unable to perform the duties of his or her position of employment or any
substantially similar position of employment.
	 
	 	(t)	 	“Elective Deferrals” shall mean the deferrals under the Plan of all or a
portion of each periodic installment of a Participant’s Annual Salary pursuant to the
Participant’s Deferral Election.
	 
	 	(u)	 	“Employee” shall mean any United States employee of the Company or an Employer
who is eligible to participate in the Annual Incentive Plan.

6

 

	 	(v)	 	“Employee Contributions” shall mean Before-Tax Contributions and (should they
become available to Employees) After-Tax Contributions to the Savings Plan.
	 
	 	(w)	 	“Employer” shall mean each subsidiary or other affiliate of the Company, some
or all of whose United States employees are participants in the
Savings Plan or the Annual Incentive Plan, either collectively, or separately as to
its Employees, as the context requires.
	 
	 	(x)	 	“ERISA” shall mean the Employee Retirement Income Security Act of 1974, as
amended and in effect from time to time.
	 
	 	(y)	 	“Key Employee” shall mean any Employee or former Employee (not including a
beneficiary of either in the event that such Employee or former Employee is deceased)
who, on the first day of a Plan Year or any prior Plan Year for which benefits are
accrued under this Plan, is classified as an Executive Officer for purposes of U.S.
Securities Laws or is in salary grade 217 or above or the equivalent grade in any
future grade structure of the Company where such grade indicates status as an officer;
provided, the term Key Employee shall not include more than the highest paid 200
employees who otherwise meet this definition.
	 
	 	(z)	 	“Matching Credits” shall mean the amounts credited to a Participant’s Deferred
Compensation Account as of the last day of each pay period, or as soon as
administratively feasible thereafter, pursuant to Section 4.1(b) representing Company
Matching Contributions that would have been made to the Savings Plan on a Participant’s
behalf if the Participant’s participation in the Savings Plan were not limited.

7

 

	 	(aa)	 	“Participant” shall mean an Employee or former Employee who (i) is making
Elective Deferrals and/or Bonus Deferrals under the Plan, (ii) is receiving Matching
Credits or Core Credits under the Plan, or (iii) otherwise has a Deferred Compensation
Account.
	 
	 	(bb)	 	“Plan” shall mean the Air Products and Chemicals, Inc. Deferred Compensation
Plan, as set forth herein and as amended and in effect from time to time hereafter.
	 
	 	(cc)	 	“Plan Administrator” shall mean the Company’s Director of Compensation and
Benefits prior to February 1, 2006 and, thereafter, the Vice President — Human
Resources, or such other person or entity to whom he delegates any of his
responsibilities hereunder with respect to such delegated responsibilities.
	 
	 	(dd)	 	“Plan Year” shall mean the twelve-month period beginning on October 1 of each
calendar year and ending on September 30 of the following calendar year. A Plan Year
shall be designated according to the calendar year in which such Plan Year ends (e.g.,
the 2006 Plan Year refers to the Plan Year beginning on October 1, 2005 and ending on
September 30, 2006).
	 
	 	(ee)	 	“Savings Plan” shall mean the Air Products and Chemicals, Inc. Retirement
Savings Plan, as amended from time to time.
	 
	 	(ff)	 	“Separation from Service” occurs when there is an expectation that the Employee
has terminated employment and is expected permanently to render services at a level
that is at least 60% less than the average level of services rendered over the
preceding 36 months. A Separation from Service shall be deemed to occur in the case of
a leave of absence exceeding six months (or 29 months if due to 

8

 

	 
	 	 	 	Disability) where there
is no legal or contractual right for the Employee to return to work.
	 
	 	(gg)	 	“Special Bonus” shall mean a discretionary award granted to an Employee outside
of the Annual Incentive Plan which is designated as eligible (or required) to be
deferred by the Vice President — Human Resources. Only those Employees who would be
eligible to participate in this Plan without regard to a Special Bonus shall be able to
defer a Special Bonus under this Plan.
	 
	 	(hh)	 	“Tax Limitations” shall mean Code sections 401(a), 415, 402(g), or 401(a)(17)
to the extent such Code sections limit the benefits that may be provided to certain
Participants under the Savings Plan and the Savings Plan provisions and administrative
procedures adopted by the Plan Administrator to ensure compliance of the Savings Plan
with such Code sections.
	 
	 	(ii)	 	“Vice President-Human Resources” shall mean the Vice President-Human Resources
of the Company.

     Section 2.2 Gender and Number. Whenever used herein, the masculine pronoun shall include the
feminine and vice versa. The singular shall include the plural and the plural shall include the
singular whenever used herein, unless the context requires otherwise.

Article 3

Deferral Elections

     Section 3.1 Deferral Elections.

	 	(a)	 	Except as provided in subsection (b), any Employee who is making Employee
Contributions to the Savings Plan, will be deemed to have

9

 

	 	 	 	made a Deferral Election to defer a portion of his or her Annual Salary under the Plan equal to the percentage of
Annual Salary, not to exceed 16%, that the Employee elected to make as Employee
Contributions to the Savings Plan as of December 31 of the prior calendar year, less
the amount the Employee is eligible to contribute to the Savings Plan under the current
Tax Limitations. Employee Contributions shall first be made to the Savings Plan in a
given calendar year and then to the extent Employee Contributions exceed or would
exceed Tax Limitations, Elective Deferrals shall be made to this Plan. The amount and
timing of Elective Deferrals is determined based upon the percentage referred to above as it exists on
December 31 of the prior calendar year and will be unaffected by any change in such
election under the Savings Plan during the calendar year.

	 	(b)	 	Within 30 days of becoming an Employee, an Employee may elect not to make a
Deferral Election for the remainder of the year or may affirmatively elect to defer a
portion, not to exceed 16%, of his or her Annual Salary for the remainder of the year
under the Plan, to the extent such portion cannot be contributed to the Savings Plan
due to the Tax Limitations. Such an election shall be made in the time and manner
determined by the Plan Administrator and may not be changed or terminated during the
remainder of the calendar year In order to be effective, such deferral election must
also be accompanied by a payout election which complies with section 5.3(c).
	 
	 	(c)	 	An Employee may make a Deferred Bonus Election in accordance with Section 5 of
the Annual Incentive Plan and, effective 1 September 2006, such Deferred Bonus shall be
accounted for under this plan as provided in Article 4.

10

 

	 	(d)	 	Effective January 1, 2006, an Employee may elect to defer all or a portion of a
Special Bonus granted to the Employee. Such election shall be made in the form and
manner determined by the Plan Administrator which complies with Section 409A of the
Code as to form and timing. An Employee’s election to defer all or a portion of a
Special Bonus may not be changed or terminated once such election is accepted by the
Plan Administrator.

Article 4

Accounting and Valuation

	 	Section 4.1	 	 Accounting for Elective Deferrals, Core Credits, Matching Credits, Bonus
Deferrals, Deferred Special Bonus and Earnings.

	 	(a)	 	A Deferred Compensation Account will be established and maintained for each
Participant on the financial books and records of the Company or the Employer with
respect to its Employees who are Participants, as a liability to the Participant. Each
Participant’s Deferred Compensation Account shall consist of two sub-accounts; a
Deferred Cash Account and a Deferred Company Stock Account. Within each sub-account,
the Plan Administrator shall separately account for amounts which are vested and
unvested pursuant to Section 5.1.
	 
	 	(b)	 	As of the last day of each pay period, or as soon as administratively feasible
thereafter, a Participant’s Deferred Cash Account will be credited with the amount of
the Participant’s Elective Deferrals for such period and a Matching Credit equal to the
Company Matching Contribution that would have been made under the Savings Plan on
account of the Participant’s Elective Deferrals for the period if the Elective
Deferrals had been Employee Contributions made under the Savings Plan.

11

 

	 	(c)	 	In the case of an Employee who is a Company Core Contribution Participant under
the Savings Plan, as of the last day of each pay period, or as soon as administratively
feasible thereafter, the Employee’s Deferred Cash Account will be credited with a Core
Credit equal to the difference, if any, between the Company Core Contribution made to
the Savings Plan for the period on behalf of the Participant and the Company Core
Contribution that would have been made under the Savings Plan for the period on behalf
of the Participant if the Company Core Contribution had not been limited by Tax
Limitations.
	 
	 	(d)	 	In the case of an Employee who is a Company Core Contribution Participant under
the Savings Plan, as of the end of the first quarter of the Plan Year following a Plan
Year for which an award under the Annual Incentive Plan is granted to the Employee
(whether received all in cash or deferred in whole or part), or as soon as
administratively feasible thereafter, the Employee’s Deferred Cash Account will be
credited with a Company Core Contribution Core Credit equal to the percentage of the
Annual Incentive Plan award indicated in the following table:

	 	 	 
	Employee’s Years of Service	 	Percentage of Annual
	Under the Savings Plan	 	Incentive Award Credited
	Less than 10
	 	4
	10-19
	 	5
	20 or more
	 	6

	 	(e)	 	As of the end of the first quarter of the Plan Year following the Plan Year for
which an award under the Annual Incentive Plan is granted to an Employee, or as soon as
administratively feasible thereafter, the Employee’s Deferred Cash Account will be
credited with any Bonus

12

 

	 	 	 	Deferral deferred pursuant to the Employee’s Deferred Bonus Election, if any.
	 
	 	(f)	 	As of September 1, 2006, an Employee or former Employee who has a Deferred
Cash Account under the Annual Incentive Plan shall have the balance in such Account
transferred to a Deferred Cash Account under the Plan.
	 
	 	(g)	 	As of the end of the vesting period described in Section 5.1, or as soon as
administratively feasible thereafter, a Participant’s Deferred Cash Account will be
credited with the portion of a Special Bonus deferred by the Participant under Section
3.1(d) and earnings thereon.
	 
	 	(h)	 	A Participant’s Deferred Cash Account and Core Account will be credited with
interest on the balance no less frequently than quarterly at the Moody’s A-rated
long-term industrial bond average rate; unless the Board determines that a different
interest rate shall be used. In the event a different interest rate is determined to
be used, it shall begin to apply as of a date on or following the date of such
determination.

Section 4.2 Deferred Company Stock Account.

	 	(a)	 	While he is employed by the Company or an Employer, a Participant may elect,
at the times and in the manner determined by the Plan Administrator, to have all or a
portion of the amount credited to his Deferred Cash Account transferred to a Deferred
Company Stock Account which is a sub-account deemed to be invested in Common Stock.
The Participant’s Deferred Company Stock Account shall be credited with the number of
whole and fractional units obtained by dividing the amount he elects to transfer from
his Deferred Cash Account by the fair market value of a share of Common Stock on the
date credited (with the units thus calculated herein referred to as

13

 

	 	 	 	“company stock units”). Prior to 1 October 2006, it may have been
administratively impossible to credit fractional units so that only whole units
were credited and any excess remained credited to the Participant’s Deferred Cash
Account. For purposes of the Plan, the fair market value of a share of Common
Stock on any date shall be equal to the closing sales price on the New York Stock
Exchange, as reported on the composite transaction tape, for such date, or, if no
sales were quoted on such date, on the next following date on which sales are
quoted. Amounts credited to the Deferred Company Stock Account may not be
converted back to the Deferred Cash Account. In the case of the deferral of a
Special Bonus, the ability to invest unvested amounts in the Deferred Company Stock
Fund may be limited prior to vesting by the term of the award.
	 
	 	(b)	 	As of September 1, 2006, an Employee or former Employee who has Deferred
Company Stock Account under the Annual Incentive Plan shall have the balance under
such Account transferred to a Deferred Company Stock Account under the Plan.
	 
	 	(c)	 	Following the declaration of a cash dividend on the Common Stock, each
Participant who has a Deferred Company Stock Account shall be credited with an amount
equal to the cash dividends (“Dividend Equivalents”) which would have been paid if the
company stock units credited to such Account on the record date for such dividend had
been issued and outstanding shares of Common Stock. Such Dividend Equivalents shall
be credited to such Participant’s Deferred Cash Account effective the payment date for
such dividend occurred and shall therein accumulate interest as provided in paragraph
4.1(h) above.

14

 

	 	(d)	 	Following the declaration of a dividend payable in Common Stock, a
Participant’s Deferred Company Stock Account shall be credited
with additional company stock units equivalent to the number of shares of Common Stock
which would have been delivered if the company stock units credited to such Account
on the record date for such dividend had been issued and outstanding shares of
Common Stock. Such additional company stock units shall be credited to each
Deferred Company Stock Account effective the payment date for such dividend
occurred.
	 
	 	(e)	 	In the event of any change in the outstanding shares of Common Stock by
reason of any stock dividend or split, recapitalization, merger, consolidation,
combination or exchange of shares, a rights offering to purchase Common Stock at a
price substantially below fair market value, or other similar corporate change, an
equitable adjustment shall be made so as to preserve, without increasing or
decreasing, the value of a Participant’s Deferred Company Stock Account. Equitable
adjustments will be made so as to treat Participants in a similar manner as they would
have been treated had their Deferred Company Stock Account held actual shares of
stock. Such adjustments shall be made as determined by the Plan Administrator and
shall be conclusive and binding for all purposes of the Plan.

     Section 4.3 Statements to Participants. The Plan Administrator shall maintain such books and
records as he deems necessary to administer the Plan and shall be responsible for determining the
balance in the Participants’ Deferred Compensation Account from time to time. Participants shall
receive a statement at least once during each Plan Year which shows the balance in their Deferred
Compensation Account. The Plan Administrator may, in such statements, elect to use sub-account
designations in addition to or in lieu of Deferred Cash Account and Deferred Stock Account. The
Plan Administrator may elect to satisfy the

15

 

requirements of this paragraph by making statements
available to participants via a website or other electronic means.

Article 5

Vesting and Distribution

     Section 5.1 Vesting. Subject to Sections 7.1 and 9.2, a Participant’s Elective Deferrals,
Matching Credits, Bonus Deferrals and earnings attributable thereto are 100% vested at all times;
provided that a Participant’s Bonus Deferrals shall be subject to the repayment and rescission
provisions of paragraph 8(h) of the Annual Incentive Plan or any successor thereto. A
Participant’s Core Credits and earnings attributable thereto shall become vested and nonforfeitable
at the same time as the Participant’s Company Core Contributions and related investment earnings
and losses under the Savings Plan become vested, as determined under the terms of the Savings Plan.
A Participant’s Special Bonus, to the extent deferred under Section 3.2(d), and earnings
attributable thereto shall become vested and nonforfeitable under the terms as awarded to the
Participant by the Company or an Employer and shall only be accounted for under this Plan once
vested unless the terms of such award specifically allow for such amounts to be accounted for under
this Plan while unvested.

     Section 5.2 Eligibility for Distribution. No distributions will be made prior to a
Participant’s Separation from Service or death.

	 	(a)	 	Separation from Service. In the event of a Participant’s Separation from
Service, his Deferred Compensation Account shall be valued and distributed as provided
in Section 5.3.
	 
	 	(b)	 	Death. In the event of a Participant’s death prior to a Separation from
Service, his Deferred Compensation Account shall be valued as of the last day of the
month in which the Participant’s death occurs and

16

 

	 	 	 	distributed to the Participant’s Beneficiary as soon as practical thereafter. In the event of a Participant’s death
after a Separation from Service but before the Participant’s entire Deferred Compensation Account has been
distributed, the remaining amount due to the Participant shall be valued as of the
last day of the month in which such Participant’s death occurs and distributed to
the Participant’s Beneficiary in a lump sum as soon as practicable thereafter.
	 
	 	(c)	 	Tax Withholding. All distributions from the Plan shall be subject to U.S.
Federal income and other tax withholding as required by applicable law.

Section 5.3 Form of Payment and Commencement of Distribution to Participants.

	 	(a)	 	Form and Manner of Payment to a Participant. Vested amounts credited to a
Participant’s Deferred Cash Account shall be distributed in cash. Vested amounts
credited to a Participant’s Deferred Company Stock Account shall
be distributed in shares of Common Stock equal to the number of company stock units credited thereto.
Distribution of a Participant’s Deferred Compensation Account to the Participant shall
be in such of the following forms of payment as the Participant shall elect pursuant
to subsection (c) below:

	 	(1)	 	Lump Sum. A single lump sum payment commencing in such year
following Separation from Service as is elected by the Participant pursuant to
subsection (c) below, provided that such year shall not be greater than the
10th year following separation from service.

17

 

	 	(2)	 	Installments. Substantially equal annual installments not to
exceed ten (10), commencing in such year following Separation from Service as
is elected by the Participant pursuant to subsection (c) below, provided, however, that no payment shall be made more
than ten (10) calendar years after the calendar year in which occurs such
Separation from Service. Installment distributions shall be comprised of
amounts from a Participant’s Deferred Cash Account and Deferred Company
Stock Account in the proportion that the value of each such Account bears
to the total value of the Participant’s Deferred Compensation Account at
the time of the distribution.

	 	(b)	 	Distribution to a Participant. For Participants who did not make an election
as provided in (c) (2) of this Section 5.3, distribution will be made or begin in
January following the first anniversary of the occurrence of the Separation from
Service with respect to the Participant, or in January following any subsequent
anniversary as elected by the Participant. For all other Participants, distribution
will be made or begin in the month following the month which contains the first
anniversary of the occurrence of a Separation from Service with respect to the
Participant, or in such month in any subsequent year as elected by the Participant.
Distribution will be made in accordance with the Participant’s election as to form and
time of payout pursuant to subsection (c) below, which is effective as of the date of
the Separation from Service, or which becomes effective prior to the first scheduled
payment under the election in effect at the time of the Separation from Service. In
the event no effective or potentially effective election exists as of the first
anniversary of the occurrence of a Separation from Service, the Participant’s entire Deferred Compensation Account shall be distributed in a single distribution as soon as
administratively feasible in the month following the month of such first anniversary.
A

18

 

	 	 	 	Participant’s Deferred Compensation Account will continue to be adjusted as provided
in Article 4 until it is completely distributed. Except as otherwise provided herein,
the amount of any distribution
shall be determined based on the value of the Participant’s Deferred Compensation
Account at the time the distribution is made. Notwithstanding the above, should
this Plan ever allow distribution earlier than the first anniversary of a
Separation from Service, including a distribution under Section 5.3(e), a
Participant who, at the time of this Separation from Service, is a Key Employee
shall not receive a distribution any earlier than six months after the Employee’s
Separation from Service.

	 	(c)	 	Electing the Form or Time of Commencement.

	 	(1)	 	Effective May 13, 2006, an Employee shall make an election
with respect to form and time of payout of his or her Deferred Compensation
Account as described in subsection (a) at the time of his or her initial
Deferral Election or Deferred Bonus Election (or such time as a Participant
elects to defer a Special Bonus), whichever is earlier, and such election
shall be immediately effective.
	 
	 	(2)	 	Employees participating in the Plan as of April 3, 2006 or
who made a Deferred Bonus Deferral Election prior to such date, were required
to elect a single form and time of payout under the Plan in the form or manner
determined by the Plan Administrator prior to May 13, 2006. This election
applied to existing Supplementary Savings Plan Account balances and Bonus
Deferrals as of such date and was treated as an initial distribution election
under the Plan pursuant to transition relief granted under Proposed Treasury
Regulations Section 1.409A-1.

19

 

	 
	 	(3)	 	Notwithstanding paragraph (2) above, a Participant who
incurred a Separation from Service during calendar year 2006, and whose
election as to form and payout on file with the Plan Administrator at the time
of such Separation from Service provided that payments will commence in the
year immediately following the Separation from Service, was not eligible to
make the election provided in paragraph (2).

	 	(d)	 	Changing the Form or Time of Commencement.

	 	(1)	 	While actively employed by the Company or one of its
subsidiaries, a Participant may change his or her election of the form and
time of commencement of distributions from his or her Deferred Compensation
Account, provided that such election is made in a form and manner satisfactory
to the Plan Administrator. Such a change in election will be effective on the
one-year anniversary of the date it is received by the Plan Administrator.
	 
	 	(2)	 	Any modification or revocation of an election made pursuant
to paragraph (1) must delay commencement of the distribution by at least five
years from the date the payment would otherwise have been made. A change in
election, when effective, shall supersede all prior elections and shall apply
to the Participant’s entire Deferred Compensation Account, including all prior
and future amounts credited thereto, until a later election becomes effective.
The Plan will treat installments as a single payment for purposes of Section
409A regarding subsequent distribution elections.

20

 

	 	(e)	 	Cash Out of Small Accounts. Notwithstanding the above, if the value of a
Participant’s Deferred Compensation Account is $5,000 or less as of the end of the
month in which a Separation from Service occurs, his or her Deferred Compensation
Account shall be distributed in its entirety as soon as administratively feasible
thereafter.

     Section 5.4 Change in Control. Notwithstanding the above provisions of this Article 5, upon a
Change in Control, a Participant (including a Key Employee) shall receive an immediate lump sum
payment of the total value of his or her Deferred Compensation Account on the date of the Change in
Control. This shall not affect his or her continued eligibility under the Plan; however, his or
her Deferred Compensation Account shall be reduced by the amount paid out. No payment shall be
made under this paragraph at any time which would cause the Plan to violate the provisions of
Section 409A.

Article 6

Administration

     Section 6.1 Plan Administration and Interpretation. The Plan shall be administered by the
Plan Administrator who shall have full power and authority to administer the Plan and interpret the
provisions of the Plan in a manner consistent with the interpretations of similar provisions in the
Savings Plan as the context reasonably permits. The Plan Administrator’s powers shall include, by
way of illustration and not limitation, the discretionary authority and power to construe and
interpret the Plan provisions, decide all questions of eligibility for benefits, and determine the
amount, time, and manner of payments of any benefits and to authorize the payment of benefits
hereunder, except to the extent such powers have not been given to the Plan Administrator pursuant
to Section 6.2 below or otherwise herein. The Plan Administrator may delegate, or appoint one or
more individuals or committees, to assist in carrying out his or her duties and responsibilities
under the

21

 

Plan and may adopt rules and regulations for the administration of the Plan and alter,
amend, or revoke any rules or regulations so adopted. The decisions of the Plan Administrator
or his or her delegates shall be final and binding on the Company, the Employers, the Employees,
Participants, and Beneficiaries.

Section 6.2 Claim and Appeal Procedure.

	 	(a)	 	Claim Procedure. In the event of a claim by a Participant or a Participant’s
Beneficiary for or in respect of any benefit under the Plan or the method of payment
thereof, such Participant or Beneficiary shall present the reason for his claim in
writing to the Plan Administrator. The Plan Administrator shall, within ninety (90)
days after the receipt of such written claim, send written notification to the
Participant or Beneficiary as to its disposition, unless special circumstances require
an extension of time for processing the claim. If such an extension of time for
processing is required, written notice of the extension shall be furnished to the
claimant prior to the termination of the initial ninety (90) day period. In no event,
however, shall such extension exceed a period of ninety (90) days from the end of such
initial period. The extension notice shall indicate the special circumstances
requiring an extension of time and the date by which the Plan Administrator expects to
render the final decision.
	 
	 	 	 	In the event the claim is wholly or partially denied, the Plan Administrator’s
written notification shall state the specific reason or reasons for the denial,
include specific references to pertinent Plan provisions on which the denial is
based, provide an explanation of any additional material or information necessary
for the Participant or Beneficiary to perfect the claim and a statement of why such
material or information is necessary, and set forth the procedure by which the
Participant or Beneficiary may appeal the denial of the claim. If the claim has
not been granted and notice is not furnished within the time

22

 

	 	 	 	period specified in the preceding paragraph, the claim shall be deemed
denied for the purpose of proceeding to appeal in accordance with subsection (b)
below.

	 	(b)	 	Appeal Procedure. In the event a Participant or Beneficiary wishes to appeal
the denial of his claim, he may request a review of such denial by making written
application to the Claims Committee within sixty (60) days after receipt of the
written notice of denial (or the date on which such claim is deemed denied if written
notice is not received within the applicable time period specified in subsection (a)
above). Such Participant or Beneficiary (or his duly authorized representative) may,
upon written request to the Claims Committee, review documents which are pertinent to
such claim, and submit in writing issues and comments in support of his position.
Within sixty (60) days after receipt of the written appeal (unless an extension of
time is necessary due to special circumstances or is agreed to by the parties, but in
no event more than one hundred and twenty (120) days after such receipt), the Claims
Committee shall notify the Participant or Beneficiary of its final decision. If an
extension of time for review is required because of special circumstances, written
notice of the extension shall be furnished to the claimant prior to the commencement
of the extension. The final decision shall be in writing and shall include: (i)
specific reasons for the decision, written in a manner calculated to be understood by
the claimant, and (ii) specific references to the pertinent Plan provisions on which
the decision is based.

	 	(c)	 	Change in Control. Notwithstanding the above, upon a Change in Control, for
the three-year period commencing on the date of the Change in Control, the Plan
Administrator shall notify the Participant of the disposition of a claim under
subsection (a) above, and the Claims

23

 

	 	 	 	Committee shall notify the Participant of the
decision on an appeal under subsection (b) above, within ten (10) days of receipt of the claim or appeal,
respectively.

Article 7

Funding

     Section 7.1 Benefits Unfunded. The Plan shall be unfunded. None of the Company, an Employer,
the Board, and the Plan Administrator shall be required by the terms of the Plan to segregate any
assets in connection with the Plan. None of the Company, an Employer, the Board, and the Plan
Administrator shall be deemed to be a trustee of any amounts to be paid under the Plan. Any
liability to any person with respect to benefits payable under the Plan shall be only a claim
against the general assets of the Company or the Employer, whichever maintains the Participant’s
Deferred Compensation Account. No such liability shall be deemed to be secured by any pledge or
any other encumbrance on any specific property of the Company or an Employer.

     Section 7.2 Non-qualified Plan. The Plan will not be qualified under the Code, and the
Company and the Employers shall not be required to qualify the Plan.

     Section 7.3 ERISA. The Plan is intended to constitute an unfunded plan maintained primarily
for the purpose of providing deferred compensation for a select group of management or highly
compensated employees of the Company and the other Employers which qualifies for the exclusions
from Title I of ERISA provided for in Sections 201(2), 301(a)(3), and 401(a)(1) of ERISA. In the
event that any regulatory or other body should determine that the Plan does not qualify for any
such exclusion, then the Company may retroactively revise the eligibility criteria under the Plan
so that it may qualify for the exclusion or take such other action it deems appropriate, and the
Company and the Employers shall have no liability to those individuals who had been eligible for
benefits under the Plan prior to such revision

24

 

or action in excess of any amount credited to the individual’s Deferred Compensation Account
as of the effective date of any such action.

Article 8

Amendment and Termination

     Section 8.1 Amendment and Termination. While the Company intends to maintain the Plan, the
Company specifically reserves the right, at any time, to amend in whole or part any or all of the
provisions of the Plan and to suspend and/or terminate the Plan for whatever reason it may deem
appropriate; provided, however, that no such amendment, suspension, or termination shall reduce the
benefits payable to or accrued by a Participant as of the date of such amendment, suspension, or
termination, or eliminate the requirement to credit interest or Dividend Equivalents on the
Participant’s Deferred Compensation Account, except as provided in Section 7.3. Action to
terminate the Plan may be taken only by the Board of Directors of the Company, by its resolutions
duly adopted. Any other action referred to in this subsection and not determined by the Company’s
general counsel to be in contravention of law may be taken by the Board or the Chairman of the
Board and evidenced by a resolution, certificate, amendment, new or revised Plan text, or other
writing; provided that only the Board may take any action that (A) materially increases aggregate
accrued benefits under the Plan, materially changes the benefit formula under the Plan, or
materially increases the cost of the Plan so long as persons designated by the Board as “Executive
Officer” for purposes of U.S. Securities laws participate in the Plan; or (B) would freeze benefit
accruals, materially reduce benefit accruals, or otherwise materially change the benefits under the
Plan; or (C) would constitute the exercise of power or function assigned to the Finance Committee
of the Board, the Plan Administrator, or the Claims Committee. The Chairman may delegate the
authority described in the preceding sentence in writing. If the Plan is terminated, all Deferral
Elections shall terminate automatically and all benefits previously accrued shall be payable at
such times as otherwise provided herein.

25

 

Article 9

General Provisions

     Section 9.1 Non-alienation of Benefits. Except as may be required by law, no benefit payable
under the Plan is subject in any manner to anticipation, alienation, sale, transfer, assignment,
garnishment, pledge, encumbrance, or charge whether voluntary or involuntary, including in respect
of liability of a Participant or Beneficiary for alimony or other payments for the support of a
spouse, former spouse, child, or other dependent, prior to actually being received by the
Participant or Beneficiary under the Plan, and any attempt to anticipate, alienate, sell, transfer,
assign, garnish, pledge, encumber, or charge the same shall be void. No such benefits will in any
manner be liable for or subject to the debts, contracts, liabilities, engagements, or torts of any
Participant or Beneficiary. If any Participant or Beneficiary is adjudicated bankrupt or attempts
or purports to anticipate, alienate, sell, transfer, assign, garnish, pledge, encumber, or charge
any benefit or payment under the Plan voluntarily or involuntarily, the Plan Administrator, in his
or her sole discretion, shall have the authority to cause the same or any part thereof then payable
to be held or applied to or for the benefit of such Participant, Beneficiary, spouse, children, or
other dependents, or any of them, in such manner and in such proportion as the Plan Administrator
shall determine.

     Section 9.2 Contractual Obligations. Notwithstanding Section 7.1 hereof, the Company and each
Employer hereby makes a contractual commitment to pay the benefits theretofore accrued in respect
of each Participant who is an Employee or former Employee of the Company or such Employer,
respectively, under the Plan at such times as such benefits are payable under the terms of the
Plan. However, neither the Company nor any Employer nor the Plan gives the Participant or any
Beneficiary any beneficial ownership interest in any assets of the Company or any Employer. A
Participant’s rights under the Plan are limited to the right to receive a distribution of the value
of his Deferred Compensation Account in accordance with

26

 

Article 5, which right is that of an unsecured general creditor of the Company or the
Employer, as applicable.

     Section 9.3 No Employment Rights. Nothing contained in the Plan shall be construed as a
contract of employment between the Company or an Employer and any Employee, or as a guarantee or
right of any Employee to future or continued employment with the Company or an Employer, or as a
limitation on the right of the Company or an Employer to discharge any of its Employees with or
without cause. Specifically, designation as an Employee does not create any rights, and no rights
are created under the Plan, with respect to continued or future employment or conditions of
employment.

     Section 9.4 Minor or Incompetent. If the Plan Administrator determines that any Participant
or Beneficiary entitled to payments under the Plan is a minor or incompetent by reason of physical
or mental disability, he may, in his sole discretion, cause all payments thereafter becoming due to
such person to be made to any other person for such person’s benefit, without responsibility to
follow application of amounts so paid. Payments made pursuant to this provision shall completely
discharge the Company, the Employers, the Plan, the Board, and the Plan Administrator from all
further obligations with respect to benefits under the Plan.

     Section 9.5 Unclaimed Amounts. If any distribution to be made hereunder remains unclaimed for
a period of two (2) years, no further interest shall accrue to or for the account of a Participant
or Beneficiary on the amount of such distribution.

     Section 9.6 Payee Unknown. If the Plan Administrator has any doubt as to the proper
Beneficiary to receive payments hereunder, the Plan Administrator shall have the right to withhold
such payments until the matter is finally adjudicated. However, any payment made in good faith
shall fully discharge the Plan

27

 

Administrator, the Company, the Employers, and the Board from all further obligations with
respect to that payment.

     Section 9.7 Illegal or Invalid Provision. In case any provision of the Plan shall be held
illegal or invalid for any reason, such illegal or invalid provision shall not affect the remaining
parts of the Plan, but the Plan shall be construed and enforced without regard to such illegal or
invalid provision.

     Section 9.8 Governing Law and Headings. The provisions of the Plan shall be construed,
administered, and governed in accordance with the laws of the Commonwealth of Pennsylvania,
including its statute of limitations provisions; to the extent such laws are not preempted by ERISA
or other applicable Federal law. Titles of Articles and Sections of the Plan are for convenience
of reference only and are not to be taken into account when construing and interpreting the
provisions of the Plan.

     Section 9.9 Liability Limitation. No liability shall attach to or be incurred by the Plan
Administrator, any member of the Claims Committee or any other officer of director of the Company
or an Employer under or by reason of the terms, conditions, and provisions contained in the Plan,
or for the acts or decisions taken or made thereunder or in connection therewith; and as a
condition precedent to the receipt of benefits hereunder, such liability, if any, is expressly
waived and released by the Participant and by any and all persons claiming under or through the
Participant or any other person. Such waiver and release shall be conclusively evidenced by any
act of participation in or the acceptance of benefits under the Plan.

     Section 9.10 Notices. Any notice to the Plan Administrator, the Claims Committee, the
Company, or an Employer which shall be or may be given under the Plan shall be in writing and shall
be sent by registered or certified mail to the Plan Administrator. Notice to a Participant shall
be sent to the address shown on the Company’s or the Employer’s records. Any party may, from time
to time, change the

28

 

address to which notices shall be mailed by giving written notice of such new address.

     Section 9.11 Entire Agreement. Except as may be provided in an individual severance agreement
between the Company or other Employer and a Participant, this Plan document shall constitute the
entire agreement between the Company or other Employer and the Participant with respect to the
benefits promised hereunder and no other agreements, representations, oral or otherwise, express or
implied, with respect to such benefits shall be binding on the Company or other Employer.

     Section 9.12 Binding Effect. All obligations for amounts not yet paid under the Plan shall
survive any merger, consolidation, or sale of substantially all of the Company’s or an Employer’s
assets to any entity, and be the liability of the successor to the merger or consolidation or
purchaser of assets.

     IN WITNESS WHEREOF, the Company, intending to be legally bound hereby, has caused the Plan to
be adopted and approved by the execution of its duly authorized
officer as of the _____________ day of
__________, 2009.

	 	 	 	 	 
	 	AIR PRODUCTS AND CHEMICALS, INC.

 	 
	 	By:  	 	 
	 	 	Senior Vice President — Human Resources & Communications 	 
	 

29

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