Document:

EX-10.23

 

Exhibit 10.23

AIR PRODUCTS AND CHEMICALS, INC.

DEFERRED COMPENSATION PLAN

AS AMENDED AND RESTATED

EFFECTIVE JANUARY 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	Preamble
	 	 	1	 
	Article 1 Purpose of the Plan
	 	 	2	 
	Section 1.1 Purpose
	 	 	2	 
	Article 2 Definitions
	 	 	2	 
	Section 2.1 Definitions
	 	 	2	 
	Section 2.2 Gender and Number
	 	 	9	 
	Article 3 Deferral Elections
	 	 	10	 
	Section 3.1 Deferral Elections
	 	 	10	 
	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
	 	 	14	 
	Section 4.3 Statements to Participants
	 	 	16	 
	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	 

 

 

AIR PRODUCTS AND CHEMICALS, INC.

DEFERRED COMPENSATION PLAN

As Amended and Restated Effective January 1, 2005

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 and April 1, 1998;
and

     WHEREAS, the Company now wishes to amend and restate the Plan for various changes as follows:
to provide supplemental Company Core Contributions for employees whose Company Core Contributions
under the Savings Plan are limited due to provisions of the Code; to comply with Section 409A of
the Code and regulations thereunder applicable to nonqualified deferred compensation plans; and,
effective September 1, 2006, to transfer into the Plan existing Deferred Cash Account and Deferred
Stock Account balances under the Company’s Annual Incentive Plan, to provide for deferred payment
of future awards made under the Annual Incentive Plan and to rename the Plan the Air Products and
Chemicals, Inc. Deferred Compensation Plan.

     NOW, THEREFORE, the Plan is hereby amended and restated effective January 1, 2005, 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

1

 

on the date of his or her separation from service with the Company and all Employers.

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.

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

	 	(1)	 	Stock Acquisition. Any “person”, as such term is used in
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934 (the
“Act”), other than the Company or a corporation whose outstanding stock
entitled to vote is owned in the majority, directly or indirectly, by the
Company, or a trustee of an employee benefit plan sponsored solely by the
Company and/or such a corporation, is or becomes, other than by purchase from
the Company or such a corporation, the “beneficial owner” (as such term is
defined in Rule 13d-3 under the Act), directly or indirectly, of securities of
the Company representing 35% or more of the combined voting power of the
Company’s then outstanding voting securities. Such a Change in Control shall
be deemed to have occurred on the first to occur of the date securities are
first purchased by a tender or exchange offeror, the date on which the Company
first learns of acquisition of 35% of such securities, or the later of the
effective date of an agreement for the merger, consolidation or other
reorganization

 

 

	 	 	 	of the Company or the date of approval thereof by a majority of the
Company’s shareholders, as the case may be.
	 
	 	(2)	 	Change in Board. During any 12-month period, individuals who
at the beginning of such period were members of the Board cease for any reason
to constitute at least a majority of the Board, unless the election or
nomination for election by the Company’s shareholders of each new director was
approved by a vote of at least two-thirds of the directors then still in
office who were directors at the beginning of the period. Such a Change in
Control shall be deemed to have occurred on the date upon which the requisite
majority of directors fail to be elected by the shareholders of the Company.
	 
	 	(3)	 	This provision shall in all cases be interpreted to comply
with the requirements of Code Section 409A, as amended.

	 	(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 3.2(a), 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.
	 
	 	(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)	 	“Distribution Event” shall mean an event other than death pursuant to which a
Participant can become entitled to receive a distribution under the Savings Plan, as
amended from time to time.
	 
	 	(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.
	 
	 	(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 at any time during a Plan Year 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. The
determination of whether an employee is a Key Employee under the definition above
shall be made consistent with final regulations promulgated under Code Section
409A and procedures developed by the Plan Administrator.
	 
	 	(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.
	 
	 	(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)	 	“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.
	 
	 	(gg)	 	“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.
	 
	 	(hh)	 	“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 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.
	 
	(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.
	 
	(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 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 “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 most recent
preceding date on which sales were 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 uninvested 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(f) above.
	 
	(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 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.
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(c),
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 Distribution Event or death.

 

 

	 	(a)	 	Distribution Event. In the event of a Participant’s Distribution Event, 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 Distribution Event,
his Deferred Compensation Account shall be valued as of the last day of the month in
which the Participant’s death occurs and distributed to the Participant’s Beneficiary
as soon as practical thereafter. In the event of a Participant’s death after a
Distribution Event 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:

 

 

	 	(1)	 	Lump Sum. A single lump sum payment.
	 
	 	(2)	 	Installments. Substantially equal annual installments not to
exceed ten (10), commencing in such year following the occurrence of a
Distribution Event with respect to a Participant as is elected by the
Participant; provided, however, that no payment shall be made more than ten
(10) calendar years after the calendar year in which occurs such Distribution
Event. 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. Distribution to a Participant will be made or
begin in the month following the month which contains the first anniversary of the
occurrence of a Distribution Event with respect to the Participant, or in such month in
any subsequent year. 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 Distribution Event, or which becomes effective prior to
the first scheduled payment under the election in effect at the time of the
Distribution Event. In the event no effective or potentially effective election exists
as of the first anniversary of the occurrence of a Distribution Event, 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 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 as of the end of the month
which precedes the month in which a distribution is to be made hereunder.
Notwithstanding the above, should this Plan ever allow distribution earlier
than the first anniversary of a Distribution Event, including a distribution under
Section 5.3(e), a Participant who, at the time of this Distribution Event, is a Key
Employee shall not receive a distribution any earlier than is allowed for Key
Employees under Section 409A.
	 
	 	(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)	 	Participants participating in the Plan prior to May 12, 2006 or
who made a Deferred Bonus Deferral Election prior to such date, shall elect a
single form and time of payout under the Plan in the form or manner determined
by the Plan Administrator prior to May 12, 2006. This election shall apply to
existing Supplementary Savings Plan Account balances and Bonus Deferrals as of
such date and shall be treated as an initial distribution election under the
Plan pursuant to transition relief granted under Proposed Treasury Regulations
Section 1.409A-1.

 

 

	 	(3)	 	Notwithstanding paragraph (2) above, a Participant who incurs a
Distribution Event during calendar 2006, and whose election as to form and
payout on file with the Plan Administrator at the time of such Distribution
Event provides that payments will commence in the year immediately following
the Distribution Event, shall not be 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.

	 	(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 Distribution Event 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 shall receive an immediate lump sum payment of the total value of
his or her Deferred Compensation Plan 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
Plan 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 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 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 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 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.

 

 

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

 

 

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

 

 

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

 

 

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 officers as of the                     day of
                                        , 2006.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AIR PRODUCTS AND CHEMICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

Vice President – Human ResourcesEX-10.24

 

Exhibit 10.24

SUPPLEMENTARY PENSION PLAN

OF

AIR PRODUCTS AND CHEMICALS, INC.

AS AMENDED AND RESTATED

EFFECTIVE JANUARY 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE 1 PURPOSE OF THE PLAN
	 	 	2	 
	Section 1.1
	 	 	2	 
	ARTICLE 2 DEFINITIONS
	 	 	2	 
	Section 2.1
	 	 	2	 
	Section 2.3
	 	 	6	 
	ARTICLE 3 BENEFITS
	 	 	7	 
	Section 3.1 Eligibility and Vesting
	 	 	7	 
	Section 3.2 Amount of Benefits
	 	 	7	 
	Section 3.3 Employee Compensation
	 	 	7	 
	Section 3.4 Allocation of Incentive Compensation
	 	 	8	 
	Section 3.5 Payment of Benefits
	 	 	8	 
	Section 3.6 Optional Forms of Retirement Benefit
	 	 	10	 
	Section 3.6A Election of Benefit Form Prior to 1 October 2006
	 	 	11	 
	Section 3.7 Election of Benefit Form On or After 1 October 2006
	 	 	13	 
	Section 3.8 Pre-Retirement Spousal Benefits
	 	 	13	 
	Section 3.9 Small Benefit Payment Procedures
	 	 	14	 
	Section 3.10 Change in Control
	 	 	15	 
	ARTICLE 3A SPECIAL SUPPLEMENTAL BENEFITS
	 	 	15	 
	ARTICLE 4 ADMINISTRATION
	 	 	17	 
	Section 4.1 Plan Administration and Interpretation
	 	 	17	 
	Section 4.2 Claim and Appeal Procedure
	 	 	17	 
	ARTICLE 5 FUNDING
	 	 	19	 
	Section 5.1 Benefits Unfunded
	 	 	19	 
	Section 5.2 Non-Qualified Plan
	 	 	20	 
	Section 5.3 ERISA
	 	 	20	 
	ARTICLE 6 AMENDMENT AND TERMINATION
	 	 	20	 
	Section 6.1 Amendment and Termination
	 	 	20	 
	Section 6.2 Contractual Obligations
	 	 	21	 
	Section 6.3 No Employment Rights
	 	 	21	 
	ARTICLE 7 GENERAL PROVISIONS
	 	 	22	 
	Section 7.1 Non-alienation of Benefits
	 	 	22	 
	Section 7.2 Minor or Incompetent
	 	 	22	 
	Section 7.3 Payee Unknown
	 	 	23	 
	Section 7.4 Illegal or Invalid Provision
	 	 	23	 
	Section 7.5 Governing Law and Headings
	 	 	23	 
	Section 7.6 Liability Limitation
	 	 	23	 
	Section 7.7 Notices
	 	 	24	 
	Section 7.8 Entire Agreement
	 	 	24	 
	Section 7.9 Binding Effect
	 	 	24	 

ii          

 

 

Exhibit 10.24

SUPPLEMENTARY PENSION PLAN

OF

AIR PRODUCTS AND CHEMICALS, INC.

Amended and Restated Effective January 1, 2005

     WHEREAS, Air Products and Chemicals, Inc. did, effective October 1, 1978, establish a
Supplementary Retirement Plan for those of its employees eligible to participate therein, which
Plan was thereafter amended from time to time, and was amended, restated and renamed the
Supplementary Pension Plan of Air Products and Chemicals, Inc. as of October 1, 1988, and was
thereafter amended, inter alia, as of 20 September 1995, 1 October 1995, 1 January 1996, 16
September 1999, and 20 September 2000 and amended and restated as of 1 May 2003;

     WHEREAS, Air Products and Chemicals, Inc. now wishes to make certain revisions in the Plan and
to restate said Plan in its entirety;

     NOW, THEREFORE, the Supplementary Pension Plan of Air Products and Chemicals, Inc. is hereby
amended and restated in its entirety as follows, effective as of 1 January 2005; and the said
Supplementary Pension Plan, as so revised and restated, shall apply only to an Employee whose
Separation from Service occurs on or after 1 January 2005, except as otherwise provided. The Plan
is further amended, effective January 1, 2006, to comply with Section 409A of the Code and
regulations thereunder applicable to nonqualified deferred compensation plans. 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 his Separation from Service occurred, except as otherwise provided.

 

 

ARTICLE
1

PURPOSE OF THE PLAN

     Section 1.1 This Plan is established to provide supplementary retirement income benefits to a
certain select group of management or highly compensated persons in the employ of Air Products and
Chemicals, Inc. and participating subsidiaries. It thereby supplements the benefits payable to
such persons under the Air Products and Chemicals, Inc. Pension Plan for Salaried Employees.

ARTICLE
2

DEFINITIONS

     Section 2.1 As used herein, the following terms shall have the following meanings, unless the
context clearly indicates otherwise.

     “Accrued Benefit” shall mean, in the case of an Employee, a monthly retirement benefit for the
life of the Employee that such Employee would receive, commencing at his Normal Retirement Date, in
an amount determined under Section 3.2 hereof based on his Credited Service, Average Compensation
and benefit payable under the Salaried Pension Plan as of the date such Accrued Benefit is being
determined.

     “Annual Incentive Plan” shall mean the Air Products and Chemicals, Inc. 1997 Annual Incentive
Plan adopted by the Company’s stockholders, as it may be amended from time to time.

     “Annuity Starting Date” shall mean the first day of the first period for which a benefit under
Section 3.1 will be paid as an annuity or, in the case of a benefit not paid in the form of an
annuity, the date of payment; provided that, in

2

 

the case of a former Key Employee described in
Section 3.5(b), the Annuity Starting Date shall be
determined as if the Employee’s benefit distribution was not delayed in accordance with
Section 3.5.

     “Average Compensation” shall have the meaning set forth in Section 3.3 hereof.

     “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.

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

     (i) Stock Acquisition. Any “person”, as such term
is used in Sections 13(d) and 14(d)(2) of the
Securities Exchange Act of 1934 (the “Act”), other than
the Company or a corporation whose outstanding stock
entitled to vote is owned in the majority, directly or
indirectly, by the Company, or a trustee of an employee
benefit plan sponsored solely by the Company and/or
such a corporation, is or becomes, other than by
purchase from the Company or such a corporation, the
“beneficial owner” (as such term is defined in Rule
13d-3 under the Act), directly or indirectly, of
securities of the Company representing 35% or more
of the combined voting power of the Company’s then
outstanding voting securities. Such a Change in
Control shall be deemed to have occurred on the first
to occur of the date securities are first purchased by
a tender or exchange offeror, the date on which the
Company first learns of acquisition of 35% of such
securities,

3

 

or the later of the effective date of an
agreement for the merger, consolidation or other
reorganization of the Company or the date of approval
thereof by a majority of the Company’s shareholders, as
the case may be.

     (ii) Change in Board. During any 12-month period,
individuals who at the beginning of such period were
members of the Board cease for any reason to constitute
at least a majority of the Board, unless the election
or nomination for election by the Company’s
shareholders of each new director was approved by a
vote of at least two-thirds of the directors then still
in office who were directors at the beginning of the
period. Such a Change
in Control shall be deemed to have occurred on the
date upon which the requisite majority of directors
fail to be elected by the shareholders of the Company.

     (iii) This provision shall in all cases be
interpreted to comply with the requirements of Code
Section 409A, as amended.

     “Committee” shall mean the Company’s Benefits Committee or other Committee designated to hear
appeals under the Plan in accordance with the provisions of Article 4 hereof.

     “Company” shall mean Air Products and Chemicals, Inc. and any successor thereto by merger,
purchase or otherwise.

     “Compensation” shall have the meaning set forth in Section 3.3 hereof.

     “Effective Date” shall mean, as to the Company, October 1, 1978, and as to any other Employer,
the date as of which the Salaried Pension Plan initially becomes effective for Employees of the
Employer.

4

 

     “Employee” shall mean any person who is employed by an Employer on a regular salaried basis on
or after the Effective Date of the Plan applicable to such Employer, who participates or
participated in the Salaried Pension Plan as an “Employee” as defined therein, and who has been
granted Incentive Compensation by an Employer for and in respect of any fiscal year of the Company
or part thereof during such person’s most recent 120 months of employment or such Employee’s period
of employment by an Employer, if less than 120 months.

     “Employer” shall mean the Company and/or any Participating Employer either collectively or
separately as the context requires.

     “Incentive Compensation” shall mean a bonus award of stock and/or cash paid on a current basis
by an Employer pursuant to the Annual Incentive Plan upon or following the conclusion of the
Company’s fiscal year to which such award relates and/or a bonus award of stock and/or cash, the
payment of which was deferred under the terms of the Annual Incentive Plan.

     “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 at any time during a
Plan Year 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. The determination of whether an
employee is a Key Employee shall be made consistent with final regulations promulgated under Code
Section 409A and procedures developed by the Plan Administrator.

     “Participating Employer” shall mean each Affiliated Company, some or all of whose employees
are participating in the Salaried Pension Plan as

5

 

“Employees” as defined therein, and have also
received awards under the Annual Incentive Plan.

     “Plan” shall mean the “Supplementary Pension Plan of Air Products and Chemicals, Inc.” as set
forth herein and as amended from time to time.

     “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 as the Vice President – Human Resources shall appoint to fill such role.

     “Plan Year” shall mean the annual period beginning on October 1 and ending on September 30. 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).

     “Salaried Pension Plan” shall mean the “Air Products and Chemicals, Inc. Pension Plan for
Salaried Employees” as amended from time to time.

     Section 2.2 As used herein, the terms “Credited Service,” “ERISA,” “Employee,” “Retire,”
“Retired,” or “Retirement” and “Separate,” “Separated” or “Separation from Service,” and, except as
specifically provided in this Article, all other capitalized terms, shall have the same meanings as
in the Salaried Pension Plan, unless the context clearly indicates otherwise.

     Section 2.3 The masculine pronoun whenever used herein shall include the feminine. The
singular shall include the plural and the plural shall include the singular whenever used herein,
unless the context otherwise requires.

6

 

ARTICLE
3

BENEFITS

     Section 3.1 Eligibility and Vesting. Subject to Sections 5.1 and 6.2, an Employee shall be
entitled to receive benefits under this Plan if such person shall be entitled to receive a benefit
under the Salaried Pension Plan. Benefits under this Plan shall be calculated in accordance with
Section 3.2 hereof and shall be subject to the limitations herein provided.

     Section 3.2 Amount of Benefits. The amount of the benefit to be paid to an Employee or any
other person entitled to receive a benefit hereunder shall be equal to the amount of the benefit
such person would have received under the Salaried Pension Plan (without regard to the limitations
under Sections 401(a)(17), and 415 of the Internal Revenue Code) if such benefit were calculated
using Average Compensation calculated pursuant to Section 3.3 hereof, and then reduced by the
amount of the actual benefit payable to such person under the Salaried Pension Plan. The normal
form of benefit under Section 4.1 of the Salaried Pension Plan shall be employed as the basis for
making computations under this Section 3.2 in order to insure the attaining for such purpose of
equivalency between the various forms of benefits provided by the Salaried Pension Plan and this
Plan, regardless of whether an optional form of benefit has been selected under Article V of the
Salaried Pension Plan and/or under Section 3.6 of this Plan.

     Section 3.3 Employee Compensation. For purposes of computing an Employee’s benefit in
accordance with Section 3.2 hereof, the Employee’s Average Compensation shall be the monthly
average of the Compensation of the Employee for the 36 consecutive months (or total consecutive
months if he or she was employed by an Employer for less than 36 months) in which his Compensation
was the highest during the 120 months nearest preceding his

7

 

Separation from Service (or during the
total period of employment if he or she was employed by an Employer
less than 120 months). For this purpose, an Employee’s Compensation for any period shall be
equal to the sum of (a) his “Compensation” for such period as defined in Article I of the Salaried
Pension Plan, provided that no limitation based on Code Section 401(a)(17) shall apply, (b) one
hundred percent (100%) of the Employee’s Incentive Compensation allocated to such period in
accordance with Section 3.4 hereof and (c) one hundred percent (100%) of the amount of annual
salary deferred by the Employee under the Air Products and Chemicals, Inc. Supplementary Savings
Plan on or before September 1, 2006 and the Air Products and Chemicals, Inc. Deferred Compensation
Plan thereafter, which amount, but for such deferral election, would have been received by the
Employee as annual salary during such period.

     Section 3.4 Allocation of Incentive Compensation. For the purpose of computing the Employee’s
Compensation in accordance with Section 3.3 hereof, all Incentive Compensation shall be allocated
to the period for which the Incentive Compensation was awarded to the Employee by the Employer,
notwithstanding actual distribution of the Incentive Compensation at a later time. The total
dollar value of Incentive Compensation awards shall be allocated in equal amounts to each month of
the period for which the award was made.

     Section 3.5 Payment of Benefits.

	 	(a)	 	Benefits shall be payable under the Plan under the same terms and conditions,
and at such time or times, as a corresponding benefit is payable to the Employee or
such other person entitled thereto under the Salaried Pension Plan; provided that, an
Employee who Separates from Service prior to Retirement shall not be permitted to
commence payment of benefits until attaining age fifty five (55) except as provided
for small benefits in Section 3.9. Payment of benefits will commence only upon the
Employee’s proper

8

 

	 	 	 	application therefore, except for small benefits as described in
Section 3.9(a). For benefit payments commencing before 1 October 2006, benefits shall
be paid in the
Primary Form of Benefit as determined in Section 5.2 of the Salaried Pension Plan,
unless the Employee shall elect to have an optional form of benefit in accordance
with the provisions of Section 3.6A hereof. For benefit payments commencing on or
after 1 October 2006, benefits shall be paid in a lump sum form of benefit
described in Section 3.6(b) below unless the Employee shall elect to have an
optional form of benefit in accordance with the provisions of Section 3.7 hereof in
which case, the benefit shall be paid in the same form of benefit as that elected
in the Salaried Pension Plan. All payments of benefits shall be subject to Federal
income and such other tax withholding as required by applicable law.
	 
	 	(b)	 	Notwithstanding the above, a distribution to a Participant who at the time of his or her
Separation from Service is a Key Employee shall not be made or commence before the later of the
date which is six months after the occurrence of such Separation from Service or the first day of
the Fiscal Year following his or her Separation from Service (or, if earlier, the date of death of
such Key Employee). If the form of benefit elected by such Key Employee is a lump sum, such lump
sum shall be increased to reflect the delayed payment in accordance with the Plan Administrator’s
procedures for such adjustments, and if the form of benefit is an annuity, the Key Employee will
receive, on the delayed payment date, all payments that would have been made during the period of
delay, adjusted for the delay in accordance with the Plan Administrator’s procedures for such
adjustments. The discount rate as it would have applied on the Annuity Starting Date shall be used
to adjust the delayed distributions to Key Employees.

9

 

     Section 3.6 Optional Forms of Retirement Benefit.

	 	(a)	 	An Employee may elect as provided in Section 3.6A or 3.7, as applicable, to
have distribution of any benefits otherwise payable in accordance with Section 3.5
hereof made in:

	 	(i)	 	Options A, B or C as set forth in such Section 5.2 of the
Salaried Pension Plan, substituting the benefit determined under Section 3.2
above for the benefit determined under Article IV of the Salaried Plan, or
	 
	 	(ii)	 	a lump sum form of benefit described below in this Section
3.6.

	 	(b)	 	Subject to satisfaction of the procedures set forth below in Section 3.6A(b)
or 3.7, an Employee who so elects will have distribution of his benefit under the Plan
made in the form of a single lump sum cash payment calculated by converting the
benefit determined under Section 3.2 into a single cash payment, using the following
assumptions:

	 	(i)	 	For distributions prior to 20 September 2000, the mortality
assumptions to determine life expectancy shall be the mortality table or
tables used by the actuary as the basis for preparing the annual actuarial
valuation for the Salaried Pension Plan for the Plan Year immediately
preceding the Employee’s Retirement and, for distributions made on or after 20
September 2000, the mortality assumptions used for this purpose shall be
determined from a unisex version of the 1994 Group Annuity Mortality Table;
provided that, with respect to any Employee who had an accrued benefit in the

10

 

	 	 	 	Plan as of 20 September 2000, the single cash payment
shall be the greater of the amount calculated using the pre-September 20,
2000 mortality assumptions or the September 20, 2000 or later mortality
assumptions; and

	 	(ii)	 	The discount rate used to determine the lump sum actuarial
present value of the primary form of benefit shall be the yield for AAA
Municipal Bonds as published periodically by Moody’s Investor Service, Inc. in
Moody’s Bond Survey, such rate to be based on the average yield of the three
(3) months immediately preceding the ninety (90) day period prior to the
Annuity Starting Date for the benefit.

In case either of the above measures is no longer in use or available, the
Committee will select a comparable alternative.

     Section 3.6A Election of Benefit Form Prior to 1 October 2006.

     For Annuity Starting Dates occurring prior to 1 October 2006, the following procedures shall
apply for election of optional forms of benefit.

	 	(a)	 	Except as otherwise provided in subsection (b) below as to the lump sum form
of benefit, the same election of form of benefit procedures and terms and conditions
as are in effect under the Salaried Pension Plan shall be in effect under the Plan
including that, if the Employee is married on the Annuity Starting Date, the Primary
Form of Benefit shall take the form of Option A as provided in Section 5.2 of the
Salaried Pension Plan, notwithstanding that a different form of benefit may be
selected by such Employee for the distribution of benefits under the Salaried Pension
Plan and under this Plan.

11

 

	 	(b)	 	An Employee may elect a lump sum form of benefit subject to the following
rules.

	 	(i)	 	Employee Statement. To elect a lump sum, the Employee will
be required to furnish a written statement that he forgoes any future ad hoc
or other increases in benefits paid under the Plan.
	 
	 	(ii)	 	Spousal Consent. The Employee may elect a lump sum, a single
life benefit or may specify a beneficiary other than a spouse without spousal
consent.
	 
	 	(iii)	 	Committee Approval. The Committee, through the Plan
Administrator, will have the right to disapprove and suspend any and all
elections of a lump sum form of benefit if payment of the Employee’s Plan
benefit in such form would adversely affect the Company.
	 
	 	(iv)	 	Further Administrative Procedures. The Plan Administrator
shall from time to time adopt such additional procedures as he, in his
discretion, shall determine to be necessary or appropriate for the proper
administration of elections, approvals and payment of Plan benefits in lump
sum form, including procedures as to the timing of payment thereof, taking
into consideration when information as to the Employee’s final Incentive
Compensation for services rendered to the date of his Retirement is first
available. Such procedures shall be binding on Employees and the Company for
all purposes of the Plan.

12

 

     Section 3.7 Election of Benefit Form On or After 1 October 2006

     For Annuity Starting Dates occurring on or after 1 October 2006, the following procedures
shall apply for election of optional forms of benefit.

	 	(a)	 	Employees participating in the Plan as of 30 September 2006 who do not have
their Annuity Starting Date prior to 1 October 2006 must elect the form of
distribution of their Plan benefit prior to 1 October 2006. Such Employees will be
given the opportunity to elect an annuity form of benefit payable in the same form as
the Employee elects for the Salaried Pension Plan benefit or a lump sum form of
benefit described in Section 3.6(b) in the manner determined by the Plan
Administrator. Such distribution election shall be with respect to an Employee’s
entire Credited Service accrued under the Salaried Pension Plan through his Annuity
Starting Date Plan benefit determined under Section 3.2. Such distribution election
shall become irrevocable when accepted by the Plan Administrator.
	 
	 	(b)	 	An Employee who first becomes an Employee on or after October 1, 2006 shall
make an irrevocable election as to the form of distribution of their benefit within 30
days of becoming an Employee in a manner determined by the Plan Administrator. If no
distribution election is made by the Employee within 30 days of becoming eligible,
benefits under the Plan shall be payable in a lump sum form of benefit described in
Section 3.6(b).

     Section 3.8 Pre-Retirement Spousal Benefits. If an Employee dies prior to his or her Annuity
Starting Date, a pre-Retirement spousal benefit shall be payable to the Employee’s surviving
spouse, if any, under the same terms and conditions and at such time or times as a corresponding
benefit is payable to the Employee’s surviving spouse under Section 5.7 of the Salaried Pension
Plan,

13

 

and calculated in the same manner as provided in such Section 5.7 except substituting the
benefit determined under Section 3.2 above for the benefit determined under Article IV of the
Salaried Pension Plan. The surviving spouse of the Employee may elect to have distribution of any
such benefit made any time permitted under Section 5.7 of the Salaried Pension Plan. The same
election of benefit procedures as are in effect under the Salaried Pension Plan shall be in effect
under the Plan. The surviving spouse may also elect, in the manner provided by the Plan
Administrator, to have his or her pre-Retirement spousal benefit paid in the form of a single lump
sum cash payment, calculated by converting the pre-Retirement spousal benefit to a single sum in
accordance with Section 3.6(b) above.

     If a former Key Employee dies after his or her Annuity Starting Date but prior to the delayed
payment date of his or her benefit described in Section 3.5(b) above, the Employee’s spouse shall
receive a distribution as soon as administratively practical of the benefit payments that would
have been payable to the Employee on and after the Annuity Starting Date had the payment not been
delayed, adjusted for the delayed payment.

     Section 3.9 Small Benefit Payment Procedures.

	 	(a)	 	Notwithstanding Sections 3.5, 3.6, 3.6A and 3.7 above, if an Employee’s
benefit has an aggregate actuarial present value of less than $10,000 at the time of
the Employee’s Separation from Service, or the monthly amount payable if the benefit
were distributed in a single life annuity commencing on the Normal Retirement Date
would be less than $100 per month, the payment of such benefit shall be made by
payment of a single lump sum, in which case the lump sum amount so paid shall be the
actuarial present value of the monthly benefit.

14

 

	 	(b)	 	For purposes of this Section 3.9, if an Employee Separates from Service prior
to his or her Early Retirement Date, the same actuarial factors, assumptions and
procedures as are employed under Section 5.1 of the Salaried Pension Plan shall be
employed to calculate the actuarial present value of any benefit and if an Employee
Separates from Service on or after his or her Early Retirement Date, the same
actuarial factors and assumptions as are employed under Section 3.6 (b) of this Plan
shall be used to calculate the actuarial present value of any benefit.

     Section 3.10 Change in Control. Notwithstanding the above provisions of this Article 3, upon
a Change in Control, an Employee shall have an immediate, nonforfeitable right to his or her
Accrued Benefit under the Plan and shall receive an immediate lump sum payment of such. This
payment shall not affect his or her continued eligibility under the Plan; however, his or her
Accrued Benefit under the Plan shall be reduced by the amount paid out.

ARTICLE 3A

SPECIAL SUPPLEMENTAL BENEFITS

     Notwithstanding any provision of the Plan to the contrary, certain employees of the Employer
who have not been granted Incentive Compensation shall be entitled to receive a special
supplemental benefit under the Plan in accordance with the following provisions:

	 	(a)	 	Any Participant in the Salaried Pension Plan who is not an Employee at the
time of his or her Separation from Service, and who:

15

 

	 	(i)	 	Would be described in Section 3.2(c) of the Salaried Plan
text except that such Participant was a Highly Compensated Employee at the
time of his or her Separation from Service; or
	 
	 	(ii)	 	Would be described in Section 3.2(d) of the Salaried Plan
text except that such Participant was a Highly Compensated Employee Separated
from Service after 1 January 2001 and notified of such Separation from Service
prior to 1 July 2002 shall be entitled to a benefit under this Plan as
follows:

	 	(b)	 	The amount of the benefit shall be the difference between the monthly
retirement benefit the Participant receives under Section 3.4 of the Salaried Pension
Plan and the benefit the Participant would have received under Section 3.2 of the
Salaried Pension Plan had he or she Separated from Service on or after his or her
Early Retirement Date.
	 
	 	(c)	 	Such a Participant shall be treated as an Employee for purposes of this Plan
except for purposes of Sections 3.1-3.4; provided that such a Participant whose
Separation from Service occurred prior to 1 January 2000 shall not be treated as an
Employee for purposes of Subsections 3.6(a)(ii) or 3.6(b).

16

 

ARTICLE 4

ADMINISTRATION

     Section 4.1 Plan Administration and Interpretation. The Plan shall be administered by the
Plan Administrator. The Plan Administrator shall have full power and authority to administer the
Plan and interpret the Plan in a manner which is as consistent with the interpretations of similar
provisions in the Salaried Pension 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 been
given to the Committee pursuant to Section 4.2 below or otherwise. The Plan Administrator may
appoint one or more individuals or committees to assist him in carrying out his duties and
responsibilities under the 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 delegates shall be final and binding on the Company, the Employers, the
Employees, and their beneficiaries.

     Section 4.2 Claim and Appeal Procedure.

	 	(a)	 	Claim Procedure. In the event of a claim by an Employee or an Employee’s
beneficiary for or in respect of any benefit under the Plan or the method of payment
thereof, such Employee 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
Employee or beneficiary as to its disposition, unless special circumstances require an
extension of time for processing the claim.

17

 

	 	 	 	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 Employee 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
Employee or beneficiary may appeal the denial of the claim. If the claim has not
been granted and notice is not furnished within the time period specified in the
preceding paragraph, the claim shall be deemed denied for the purpose of proceeding
to appeal in accordance with paragraph (b) below.
	 
	 	(b)	 	Appeal Procedure. In the event an Employee or beneficiary wishes to appeal
the denial of his claim, he may request a review of such denial by the Committee by
making written application to the Plan Administrator 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 paragraph (a) above). Such Employee or beneficiary (or his duly authorized
representative) may, upon written request to the Committee, review documents which are
pertinent to such claim,

18

 

	 	 	 	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
Committee shall notify the Employee or beneficiary of its final decision. If such
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 Employee of the disposition of a claim under paragraph
(a) above, and the Committee shall notify the Employee of the decision on an appeal
under paragraph (b) above, within ten (10) days of receipt of the claim or appeal,
respectively.

ARTICLE 5

FUNDING

     Section 5.1 Benefits Unfunded. The Plan shall be unfunded. Neither an Employer, the Board,
nor the Plan Administrator shall be required by the terms of the Plan to segregate any assets in
connection with the Plan. Neither an Employer, the Board nor 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

19

 

general assets of the Employer. No such liability shall be deemed to be secured by any pledge
or any other encumbrance on any specific property of the Employer.

     Section 5.2 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 5.3 ERISA. The Plan is intended to constitute an unfunded plan maintained primarily
for the purpose of providing deferred compensation to a select group of management or highly
compensated employees of the Employer which qualifies for the exclusion provided for in Sections
201(2), 301(a)(3) and 401(a)(1) of ERISA. In the event that any regulatory body should determine
that the Plan does not qualify for such exclusion, then the Company may retroactively revise the
eligibility criteria under the Plan so that this Plan may qualify for the exclusion or take such
other action as is deemed necessary, 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 or
action except to the extent of the individual’s Accrued Benefit as of the effective date of such
action.

ARTICLE 6

AMENDMENT AND TERMINATION

     Section 6.1 Amendment and Termination. While the Company intends to maintain this Plan in
conjunction with the Salaried Pension Plan for so long as necessary or desirable, the Company
reserves the right at any time to amend, suspend, and/or terminate this Plan, in whole or part.
Action to terminate the Plan may be taken on behalf of the Company only by the Board, 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

20

 

be taken on behalf of the Company by the Board or the Chairman of the Board or his delegate by
a resolution, certificate, new or revised Plan text, or other writing; provided that, only the
Board may approve a Plan amendment which (A) would materially increase aggregate accrued benefits
under, materially change the benefit formula provided by, or materially increase the cost of the
Plan so long as persons designated by the Board as “Executive Officers” for purposes of the 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 Committee. The Chairman may delegate the authority described in the
preceding sentence in writing. Notwithstanding the above no such amendment, termination or
suspension shall reduce the benefits payable to or accrued by an Employee as of the date of such
amendment, suspension or termination, except as provided in Section 5.3. If this Plan is
terminated, no new benefits shall be accrued hereunder; and all benefits previously accrued shall
be payable at such times as otherwise provided herein.

     Section 6.2 Contractual Obligations. Notwithstanding Section 5.1 hereof, each Employer hereby
makes a contractual commitment to pay the benefits theretofore accrued in respect of each Employee
of such Employer under the Plan to the extent it is financially capable of meeting such obligations
from its general assets, and at such times as such benefits are payable under the terms hereof.

     Section 6.3 No Employment Rights. Nothing contained in the Plan shall be construed as a
contract of employment between an Employer and any Employee, or as a right of any Employee to be
continued in the employment of an Employer, or as a limitation on the right of an Employer to
discharge any of its Employees, with or without cause. Specifically, no rights are created under
the Plan with respect to continued employment. It is understood that each Employee

21

 

is employed at the will of the respective Employer and the Employee and in accord with all
statutory provisions.

ARTICLE 7

GENERAL PROVISIONS

     Section 7.1 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 an Employee or his 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 Employee
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, liabilities, engagements, or torts of any Employee or other
person entitled to receive the same and if such person is adjudicated bankrupt or attempts to
anticipate, assign, or pledge any benefits, the Plan Administrator 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
Employee, his spouse, children or other dependents, or any of them, in such manner and in such
proportion as the Plan Administrator may deem proper.

     Section 7.2 Minor or Incompetent. If the Plan Administrator determines that any Employee or
beneficiary entitled to payments under the Plan is a minor or incompetent by reason of physical or
mental disability, it may, in its sole discretion, cause all payments thereafter becoming due to
such person to be made to any other person for his 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

22

 

Plan Administrator from all further obligations with respect to benefits under the Plan.

     Section 7.3 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 Administrator, the Company, the Employers, and the Board from all
further obligations with respect to that payment.

     Section 7.4 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 7.5 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 limitation 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 7.6 Liability Limitation. No liability shall attach to or be incurred by the Plan
Administrator or any officer or 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 Employee and by any and
all persons claiming under or through the Employee or

23

 

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 7.7 Notices. Except as otherwise specified, any notice to the Plan Administrator, 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 address to which notices shall be mailed by giving written notice of such new
address.

     Section 7.8 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 or representations with respect to such
benefits, oral or otherwise, express or implied, shall be binding on the Company or other Employer.

     Section 7.9 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, unless otherwise agreed to in writing by the parties thereto.

24

 

     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 officers as of the
day of      , 2006.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	AIR PRODUCTS AND CHEMICALS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

Vice President — Human Resources
	 	 

25

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]