Document:

Exhibit 10.1 Airgas Executive Bonus Plan

Exhibit 10.1

AIRGAS, INC.
EXECUTIVE BONUS PLAN 

Purpose of the Plan 
Airgas, Inc. (the “Company”) believes in providing incentives to attract, retain and reward Executive Officers who are responsible for providing leadership to the Company in attaining established business objectives. 

The purpose of the Airgas, Inc. Executive Bonus Plan (the “Plan”) is to align management's efforts with the strategic goals of the Company through competitive annual incentive opportunities. The Plan will be effective from April 1, 2013 to March 31, 2014 (the “Plan Year”) and will automatically renew upon the anniversary date of the Plan unless terminated by the Governance and Compensation Committee of the Board of Airgas, Inc., or such other committee of the Board as may be responsible for executive compensation issues (the “Committee”). 

Eligibility 
The Executive Officers (“Participants”) are eligible for participation in the Plan provided that such officers are employed by the Company on the last day of the Plan Year (unless previously terminated due to retirement, disability or death as more fully described herein). For purposes of the Plan, Executive Officers are defined as those employees who constitute “officers” for the purposes of Section 16 of the Securities Exchange Act of 1934, and any other employee deemed to be a “covered employee” within the meaning of Section 162(m) of the Internal Revenue Code of 1986, as amended, as such section may be amended. 

Target Awards 
Participants in the Executive Bonus Plan will be eligible for an annual cash incentive award (the “Award”) based on the achievement of predetermined goals as set forth in the Performance Measurement section of the Plan. Participants will have an assigned Award target equal to a specific percentage of salary earned during the Plan Year. For this purpose, salary is defined as the Participant's annual base pay as of the one-hundredth day of  the Plan Year, except where proration is required as a result of partial year participation or when a significant change of duties  causes a significant change in the Participant's annual base pay, as determined by the Committee. An annual Award target is determined based on the Participant's position in the organization. The maximum Award that may be paid in any single year to any Participant is $2,000,000. 

Performance Measurement 
All Awards payable shall be based solely upon the achievement of specific performance targets based on one or more of the following criteria: 
		
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	Earnings per share (EPS)

		
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	Return on capital (ROC)

		
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	Earnings before interest, taxes, depreciation, amortization and special gains (charges) (Adjusted EBITDA)

		
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	Sales

		
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	Return on equity (ROE)

		
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	After tax cash flow (ATCF)

		
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	Free cash flow (FCF)

		
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	Operating expense as a percentage of sales

		
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	Gross profit

		
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	Days purchases outstanding (DPO)

		
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	Operating income (OI)

		
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	Days sales outstanding (DSO)

		
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	Working capital

		
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	Transactions accuracy

Final Award payments will vary based on the level of achievement measured against pre-determined performance targets. Depending upon a Participant's position and responsibilities, these various performance measures, assessed 

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based on different weightings, will determine the Award. 

The Committee will establish the specific performance targets for the Plan within each of the above criteria within 90 days after the beginning of the respective Plan Year. 

Funding 
The Plan will be self-funding, as profitability targets will be established net of target Award payments under the Plan. Therefore, achievement of profitability targets will ensure that the Plan has funded itself. 

Executive Bonus Plan Payment 
At the end of the Plan Year, after all financial results have been finalized, the actual Award payment will be determined and the Committee will certify in writing that the performance goals associated with the Award have been satisfied prior to the payment of the Award. The Award will be paid in cash no later than 75 days following the end of the Plan Year. 

Administration of the Plan 
The Committee shall have full power to administer and interpret the Plan and, in its sole discretion, may establish or amend rules of general application for the administration of the plan and may amend or terminate the Plan at any time. 

Partial Year Eligibility 
Participants who are eligible for the Plan for a portion of the year will receive a prorated Award based on the base salary earned while they are eligible for the Plan or such other arrangement as agreed upon when hired. 
New hires
		
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	Newly hired Participants will immediately be eligible for the Plan.

		
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	Base salary will be accumulated from the date of hire to the end of the Plan Year, unless eligibility ceases prior to that date.

Transfers
		
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	For Participants who transfer from one job or employee status to another, eligibility will depend on their award eligibility before and after transferring.

		
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	If a Participant transfers from a position that is not Plan eligible to a position that is eligible for an Award under the Plan, the Award will be prorated based on the time in the Plan eligible position. All calculations are done using Plan Year-end financial data.

		
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	If a Participant transfers from a position that is eligible for an Award under the Plan to a position that is not Plan eligible, the Award will be prorated based on the length of time in the Plan eligible position. All calculations are done using Plan Year-end financial data.

		
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	If a Participant transfers from one position that is eligible for an Award under the Plan to another position that is eligible for an Award under the Plan, participation in the Plan will continue uninterrupted. However, if the transfer involves a move that will change the weightings used to determine a Participant's Award, the Award calculation will be based on the pro-rated time spent in each position. All calculations will be done using Plan Year-end data. Accountabilities must be separately established and assessed for each position.

Promotions
		
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	If a Participant is promoted during the Plan Year, new accountabilities must be established to reflect the new position.

Terminations
		
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	Employees who are not employed by the Company on the last day of the Plan Year are not deemed to be Participants and therefore are ineligible to receive any Award under the Plan, except for the following circumstances:

		
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	Participants who retire, become disabled or die during the Plan Year will be eligible for a prorated Award. The Award will be calculated from the date when they become eligible, normally the beginning of the Plan Year to the date of retirement, disability or death.

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Leave of absence
		
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	If a Participant is on a leave of absence at the end of the Plan Year, he or she will be eligible for an Award provided that he or she returns to work as an active employee. Any Award paid will be prorated based upon the length of time the Participant was actively working during the Plan Year. The calculation will be made using Plan Year-end financial data. The Award payment will be made in the next regularly scheduled payroll cycle at the end of the Participant's first month of employment following his or her return from leave of absence.

		
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	If a Participant is on a leave of absence during the Plan Year and returns during the Plan Year, he or she will be eligible for an Award. Any Award paid will be prorated based upon the length of time a Participant was actively working during the Plan Year. The calculation will be made using Plan Year-end financial data.

Tax Considerations and Withholding 
Participants will be required to report taxable income in the year the Award is received. The Company will withhold taxes in the appropriate amount on all payouts. 
Bankruptcy 
In the event that the Company declares bankruptcy, the Committee, at its discretion, may immediately discontinue the Plan. In the event that the Plan is discontinued, all participants will forfeit the right to any payments under the Plan. 
Future Employment 
Payment of an Award under the Plan does not imply a contractual agreement to extend or continue employment of a Participant beyond receipt of the Award. 

3ARG - 6.30.13 - 10-Q EX 10.1

Exhibit 10.1

FIRST AMENDMENT TO AMENDED AND RESTATED 
EXECUTIVE SEVERANCE AGREEMENT

This First Amendment to Amended and Restated Executive Severance Agreement (“First Amendment”) is made and entered into effective the 27th day of June, 2013 by and between Airgas, Inc. (the “Company”) and Peter McCausland (the “Executive”).
WHEREAS, the Company and Executive are parties to an Amended and Restated Executive Severance Agreement dated May 29, 2009 (the “Agreement”); and
WHEREAS, the Agreement states that Executive is currently serving as the Company's Chairman of the Board, President and Chief Executive Officer and provides that the Agreement “shall continue in full force and effect for the duration of Executive's employment with the Company so long as Executive holds the position of Chief Executive Officer of the Company”; and
WHEREAS, effective August 14, 2012, Executive was elected Executive Chairman of the Board of the Company and Michael L. Molinini was elected President and Chief Executive Officer; and
WHEREAS, it is and has been the intention of the Company that the Agreement remain in full force and effect notwithstanding the change in positions described above;
NOW, THEREFORE, for good and valuable consideration and intending to be legally bound hereby, the Company and Executive agree that the Agreement is hereby amended as follows:
1.    The first WHEREAS clause of the Agreement is hereby amended to read in its entirety as follows:
WHEREAS, Executive is an executive of the Company, currently serving as its Executive Chairman of the Board; and 
2.    Section 12 of the Agreement is hereby amended to read in its entirety as follows:
12.   Term of Agreement.  This Agreement shall continue in full force and effect for the duration of Executive's employment with the Company; provided, however, that after the termination of Executive's employment during the term of this Agreement, this Agreement shall remain in effect until all of the obligations of the Parties hereunder are satisfied or have expired.
3.    Except as expressly modified above, the Agreement shall remain in full force and effect as originally written.

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have executed this First Amendment as of the date first above written
	
			
	 
	 
	AIRGAS, INC.

	 
	 
	 

	Attest:   /s/ Robert H. Young, Jr.
	 
	By:  /s/ Michael L. Molinini

	 
	 
	Its: President and Chief Executive Officer

	 
	 
	 

	 
	 
	 

	    _________________
	 
	/s/ Peter McCausland

	               Witness
	 
	     Peter McCausland

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