Document:

EX-10.25

 

Exhibit 10.25

AIR PRODUCTS AND CHEMICALS, INC.

RETIREMENT SAVINGS PLAN

AS AMENDED AND RESTATED

EFFECTIVE JANUARY 1, 2005

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	ARTICLE I	 	PURPOSES	 	 	1	 
	 
	 	1.01	 	 	 	Purposes 	 	 	1	 
	ARTICLE II	 	DEFINITIONS	 	 	1	 
	 
	 	2.01	 	 	 	Affiliated Company 	 	 	1	 
	 
	 	2.02	 	 	 	After-Tax Contributions 	 	 	2	 
	 
	 	2.03	 	 	 	Annual Salary 	 	 	2	 
	 
	 	2.04	 	 	 	Before-Tax Contributions 	 	 	3	 
	 
	 	2.05	 	 	 	Beneficiary or Beneficiaries 	 	 	3	 
	 
	 	2.06	 	 	 	Board 	 	 	3	 
	 
	 	2.07	 	 	 	Business Day 	 	 	3	 
	 
	 	2.08	 	 	 	Catch-up Contributions 	 	 	4	 
	 
	 	2.09	 	 	 	Claims Committee 	 	 	4	 
	 
	 	2.10	 	 	 	Code 	 	 	4	 
	 
	 	2.11	 	 	 	Investment Committee 	 	 	4	 
	 
	 	2.12	 	 	 	Company 	 	 	4	 
	 
	 	2.13	 	 	 	Company Core Contributions 	 	 	4	 
	 
	 	2.14	 	 	 	Company Matching Contributions 	 	 	4	 
	 
	 	2.15	 	 	 	Core Contribution Participant 	 	 	4	 
	 
	 	2.16	 	 	 	Credited Service 	 	 	4	 
	 
	 	2.17	 	 	 	Company Stock 	 	 	4	 
	 
	 	2.18	 	 	 	Deemed Election 	 	 	5	 
	 
	 	2.19	 	 	 	Deferral Election 	 	 	5	 
	 
	 	2.20	 	 	 	Defined Benefit Plan 	 	 	5	 
	 
	 	2.21	 	 	 	Defined Contribution Plan 	 	 	5	 
	 
	 	2.22	 	 	 	Distribution Event 	 	 	5	 
	 
	 	2.23	 	 	 	Electing Employee 	 	 	5	 
	 
	 	2.24	 	 	 	Employee 	 	 	5	 
	 
	 	2.25	 	 	 	Employer 	 	 	6	 
	 
	 	2.26	 	 	 	Employment Commencement Date 	 	 	6	 
	 
	 	2.27	 	 	 	ERISA 	 	 	6	 
	 
	 	2.28	 	 	 	Fair Market Value 	 	 	6	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	i	 

 

 

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(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	 
	 	2.29	 	 	 	Hourly Pension Plan 	 	 	7	 
	 
	 	2.30	 	 	 	Hour of Service 	 	 	7	 
	 
	 	2.31	 	 	 	IGS Savings Plan 	 	 	8	 
	 
	 	2.32	 	 	 	Investment Vehicle 	 	 	9	 
	 
	 	2.33	 	 	 	Matched Contributions 	 	 	9	 
	 
	 	2.34	 	 	 	Matured Company Matching Contributions 	 	 	9	 
	 
	 	2.35	 	 	 	Normal Retirement Age 	 	 	9	 
	 
	 	2.36	 	 	 	Participant 	 	 	9	 
	 
	 	2.37	 	 	 	Participant Contributions 	 	 	9	 
	 
	 	2.38	 	 	 	Participant Investment Funds 	 	 	9	 
	 
	 	2.29	 	 	 	Participating Employer 	 	 	9	 
	 
	 	2.40	 	 	 	Party In Interest 	 	 	10	 
	 
	 	2.41	 	 	 	Period of Severance 	 	 	10	 
	 
	 	2.42	 	 	 	Plan 	 	 	10	 
	 
	 	2.43	 	 	 	Plan Administrator 	 	 	10	 
	 
	 	2.44	 	 	 	Plan Year 	 	 	10	 
	 
	 	2.45	 	 	 	Qualified Domestic Relations Order 	 	 	11	 
	 
	 	2.46	 	 	 	Reemployment Commencement Date 	 	 	11	 
	 
	 	2.47	 	 	 	Retirement Plan 	 	 	11	 
	 
	 	2.48	 	 	 	Retirement Program Change Effective Date 	 	 	11	 
	 
	 	2.49	 	 	 	Salaried Pension Plan 	 	 	11	 
	 
	 	2.50	 	 	 	Severance from Service Date 	 	 	11	 
	 
	 	2.51	 	 	 	Trust Agreement 	 	 	12	 
	 
	 	2.52	 	 	 	Trust Fund 	 	 	12	 
	 
	 	2.53	 	 	 	Trustee 	 	 	12	 
	 
	 	2.54	 	 	 	Unmatched Contributions 	 	 	12	 
	 
	 	2.55	 	 	 	Unmatured Company Matching Contributions 	 	 	12	 
	 
	 	2.56	 	 	 	Vice President – Human Resources 	 	 	13	 
	 
	 	2.56	 	 	 	Year of Service 	 	 	13	 
	 
	 	2.58	 	 	 	Years of Vesting Service 	 	 	13	 
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	ii	 

 

 

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	 	 	 	 	 	 	 	 	Page	 
	ARTICLE III	 	ELIGIBILITY, CONTRIBUTIONS, WITHDRAWALS, DISTRIBUTIONS, ROLLOVERS, AND

PLAN-TO-PLAN TRANSFERS	 	 	15	 
	 
	 	3.01	 	 	 	Eligibility and Commencement of Participation 	 	 	15	 
	 
	 	3.02	 	 	 	Before-Tax, After-Tax, and Catch-up Contributions 	 	 	17	 
	 
	 	3.03	 	 	 	Company Matching Contributions 	 	 	20	 
	 
	 	3.04	 	 	 	Company Core Contribution 	 	 	22	 
	 
	 	3.05	 	 	 	Company Core Contribution Vesting Rules 	 	 	23	 
	 
	 	3.06	 	 	 	Timing of Contributions 	 	 	24	 
	 
	 	3.07	 	 	 	Nondiscrimination Limitations and Corrective Measures 	 	 	24	 
	 
	 	3.08	 	 	 	Withdrawals by Participants of
After-Tax Contributions, Company Matching Contributions, Before-Tax
and Catch-up Contributions	 	 	38	 
	 
	 	3.09	 	 	 	Loans to Participants 	 	 	41	 
	 
	 	3.10	 	 	 	Distributions Following Distribution Events 	 	 	44	 
	 
	 	3.11	 	 	 	Distributions Pursuant to a Qualified Domestic Relations Order 	 	 	46	 
	 
	 	3.12	 	 	 	Rollovers into the Plan 	 	 	46	 
	 
	 	3.13	 	 	 	Plan-to-Plan Transfers; Plan Mergers 	 	 	47	 
	 
	 	3.14	 	 	 	Limitation on Annual Additions to Participants’ Accounts 	 	 	48	 
	 
	 	3.15	 	 	 	Application of Top-Heavy Provisions 	 	 	50	 
	ARTICLE IV	 	TRUST FUND AND PARTICIPANT INVESTMENT FUNDS	 	 	54	 
	 
	 	4.01	 	 	 	Trust Agreement 	 	 	54	 
	 
	 	4.02	 	 	 	Investment of Contributions in the Participant Investment Funds 	 	 	55	 
	 
	 	4.03	 	 	 	Redirection of Investments of Participant Contributions 	 	 	58	 
	 
	 	4.04	 	 	 	Investment of Company Matching Contributions 	 	 	59	 
	 
	 	4.05	 	 	 	Participants’ Accounts 	 	 	59	 
	 
	 	4.06	 	 	 	Account Statements; Investment Information 	 	 	61	 
	 
	 	4.07	 	 	 	Voting, Tendering, and Similar Rights as to Company Stock 	 	 	62	 
	 
	 	 	 	 	 		 	 	 	 
	 
	 	 	 	 	 	 	 	 	iii

 

 

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(continued)

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Page	 
	ARTICLE IV-A	 	ESTABLISHMENT OF AN EMPLOYEE STOCK OWNERSHIP PLAN	 	 	63	 
	ARTICLE V	 	MANNER OF DISTRIBUTION OF PARTICIPANT ACCOUNTS	 	 	65	 
	 
	 	5.01	 	 	 	General 	 	 	65	 
	 
	 	5.02	 	 	 	Designation of Beneficiaries; Spousal Consents 	 	 	66	 
	 
	 	5.03	 	 	 	Direct Rollovers 	 	 	67	 
	 
	 	5.04	 	 	 	Trustee-to-Trustee Transfer 	 	 	69	 
	 
	 	5.05	 	 	 	Protected Distribution Forms for Certain Transferred Balances 	 	 	70	 
	ARTICLE VI	 	ADMINISTRATION	 	 	70	 
	 
	 	6.01	 	 	 	Plan Administrator 	 	 	70	 
	 
	 	6.02	 	 	 	Expenses of Administration 	 	 	71	 
	 
	 	6.03	 	 	 	Powers and Duties of the Plan Administrator 	 	 	71	 
	 
	 	6.04	 	 	 	 	 	 	73	 
	 
	 	6.05	 	 	 	Benefit Claims Procedure 	 	 	76	 
	 
	 	6.06	 	 	 	Fiduciaries 	 	 	78	 
	 
	 	6.07	 	 	 	Adequacy of Communications; Reliance on Reports and Certificates	 	 	79	 
	 
	 	6.08	 	 	 	Indemnification 	 	 	79	 
	 
	 	6.09	 	 	 	Member’s Own Participation 	 	 	80	 
	 
	 	6.10	 	 	 	Elections 	 	 	80	 
	ARTICLE VII	 	AMENDMENT, CORRECTION, AND DISCONTINUANCE	 	 	80	 
	 
	 	7.01	 	 	 	Right to Amend or Terminate 	 	 	80	 
	 
	 	7.02	 	 	 	Corpus and Income to to be Diverted 	 	 	82	 
	 
	 	7.03	 	 	 	Merger or Consolidation of Plan 	 	 	82	 
	 
	 	7.04	 	 	 	Correction 	 	 	83	 
	ARTICLE VIII	 	GENERAL PROVISIONS	 	 	83	 
	 
	 	8.01	 	 	 	Nonalienation of Benefits 	 	 	83	 
	 
	 	8.02	 	 	 	Payments to Minors, Incompetents, and Related Situations 	 	 	83	 
	 
	 	8.03	 	 	 	Unclaimed Accounts – Trust Funds 	 	 	84	 
	 
	 	8.04	 	 	 	No Guarantee of Employment 	 	 	84	 
	 
	 	8.05	 	 	 	Governing Law 	 	 	84	 
	 
	 	 	 	 	 		 	 	 	 
	 
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	 	 	 	 	 	 	 	 	Page	 
	 
	 	8.06	 	 	 	Gender, Number, and Headings 	 	 	84	 
	 
	 	8.07	 	 	 	Severability 	 	 	85	 
	 
	 	8.08	 	 	 	Obligations of the Employer 	 	 	85	 
	 
	 	8.09	 	 	 	Effective Date 	 	 	85	 
	 
	 	8.10	 	 	 	Uniformed Services Employment and Reemployment Rights Act 	 	 	85	 
	 
	 	8.11	 	 	 	Use of Electronic Media; Adjustment of Certain Time Periods 	 	 	86	 
	EXHIBIT I	 	ELIGIBLE NONUNION HOURLY LOCATIONS DESIGNED BY VICE PRESIDENT – HUMAN

RESOURCES	 	 	I-1	 
	EXHIBIT II
	 	FORMS OF DISTRIBUTION
AVAILABLE TO PARTICIPANTS WHO HAD AMOUNTS TRANSFERRED TO THE PLAN FROM THE IGS SAVINGS PLAN	 	 	II-1	 
	EXHIBIT III
	 	PLAN ELECTIONS	 	 	III-1	 
	SCHEDULE I	 	PARTICIPATING EMPLOYERS AS OF JANUARY 1, 2005	 	 	S-1	 
	 
	 	 	 	 	 		 	 	 	 
	 
	 	 	 	 	 	 	 	 	v	 

 

 

AIR PRODUCTS AND CHEMICALS, INC.

RETIREMENT SAVINGS PLAN

ARTICLE I

PURPOSES

     1.01 Purposes. This Plan is established to facilitate the accumulation and investment
of retirement and other savings for eligible employees and to provide such employees with an
opportunity to acquire a stock interest in Air Products and Chemicals, Inc. (the “Company”), and is
intended to be a profit-sharing plan described in Code Section 401(a) with a cash or deferred
arrangement described in Code Section 401(k) and an employee stock ownership plan component as
defined in Code Section 4975(e), all in accordance with the terms and conditions hereinafter set
forth. Unless otherwise stated or required by applicable law, the effective date of the current
amendment and restatement shall be January 1, 2005, including amendments implemented through
February 1, 2006, and shall not be applicable to persons retiring or otherwise terminating
employment with the Company and its Affiliated Companies prior to January 1, 2005, except as
otherwise provided herein. Effective January 1, 2005, the Plan as amended and restated provides
enhanced Company Matching Contributions and Company Core Contributions to Core Contribution
Participants.

ARTICLE II

DEFINITIONS

          As used in this Plan, the terms listed below shall have the meanings assigned below; provided,
however, that special definitions for purposes of Sections 3.07, 3.14, and 3.15 are contained in
Paragraphs 3.07(a), 3.14(a), and 3.15(a), respectively.

     2.01 Affiliated Company means each trade or business (whether or not incorporated)
while it, together with the Company, is treated as a controlled group of corporations (as defined
in Code Section 414(b)), as under common control (as defined in

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Code Section 414(c)), or as an affiliated service group (as defined in Code Section 414(m)),
or is required to be aggregated with the Company pursuant to the regulations under Code Section
414(o); provided, however, that for purposes of Section 3.15 of the Plan and where otherwise
applicable, the modification provided for in Code Section 415(h) shall be taken into account.

     2.02 After-Tax Contributions mean contributions made by a Participant under Paragraph
3.02(b).

     2.03 Annual Salary means the total annual salary of a Participant, as determined by
the Employer based solely on its records, including elective contributions made by an Employer on
behalf of the Employee that are not includible in federal taxable income under Code Section 125 or
Code Section 402(e)(3), excluding:

     (a) Discretionary bonuses or grants, including, without limitation, income howsoever derived
from any stock options or other stock awards, scholastic aid, payments and awards for suggestions
and patentable inventions, other merit awards and expense allowances, and noncash compensation
(including imputed income);

     (b) Payments of Company Matching Contributions under Section 3.03 and Company Core
Contributions under Section 3.04 of this Plan, accruals or distributions under this Plan, or
payments, accruals, or distributions under any severance, incentive, or welfare plan or other
retirement, pension, or profit-sharing plan of an Employer;

     (c) Overtime, commissions, mileage, shift premiums, and payments in lieu of vacation; and

     (d) All supplemental compensation 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.

2

 

     In the case of a Participant who is a full-time hourly or a weekly salaried production and
maintenance employee, Annual Salary shall be determined by multiplying his base hourly pay rate by
2,080 hours. In the case of a Participant who is a part-time hourly employee or a part time non
exempt salaried employee, Annual Salary shall be determined by multiplying his base hourly pay by
his scheduled annual hours. Notwithstanding the above, Annual Salary means 125% of the amount
determined in accordance with the preceding two sentences for any Participant who is employed as an
over-the-road truck driver by an Employer, is paid on a mileage and hourly basis, and whose
employment is based at a liquid bulk distribution terminal from time to time designated by the Vice
President — Human Resources and identified as a “Designated Terminal” on Exhibit I..

     Notwithstanding the above, “Annual Salary” shall not exceed the limitation provided under Code
Section 401(a)(17) as adjusted pursuant to Code Section 401(a)(17)(B) for any Plan Year.

     2.04 Before-Tax Contributions mean contributions made by the Employer on behalf of a
Participant pursuant to the Participant’s Deferral Election under Paragraph 3.02(a) or Deemed
Election under Paragraph 3.02(d).

     2.05 Beneficiary or Beneficiaries mean any person(s), trust(s), or other
recipient(s) designated by the Participant as provided in Section 5.02, or, in the absence of any
such designation, as provided in said Section 5.02, who or which shall receive all amounts credited
to the Participant’s Plan accounts following the death of the Participant.

     2.06 Board means 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.

     2.07 Business Day means any day the Company’s headquarters in Trexlertown,
Pennsylvania is open for business.

3

 

     2.08 Catch-up Contributions means contributions made by the Employer on behalf of
a Participant pursuant to the Participant’s Deferral Election under Paragraph 3.02(c).

     2.09 Claims Committee means the committee appointed by the Vice President Human
Resources to review and determine appeals of claims arising under the Plan in accordance with
Section 6.05.

     2.10 Code means the Internal Revenue Code of 1986, as amended from time to time, and
regulations thereunder.

     2.11 Investment Committee means the Pension Investment Committee of the Company,
consisting of persons appointed by the Finance Committee of the Board and authorized, directed and
empowered to supervise, monitor and review the management, custody, control and investment
performance of the assets of the Plan.

     2.12 Company means Air Products and Chemicals, Inc., or any successor in interest
thereto.

     2.13 Company Core Contributions mean contributions made by the Employer under Section
3.04.

     2.14 Company Matching Contributions mean contributions made by the Employer under
Section 3.03.

     2.15 Core Contribution Participant shall mean an Electing Employee or a salaried
Employee whose Employment Commencement Date or Reemployment Commencement date occurs after October
31, 2004, or who otherwise becomes a salaried Employee after such date.

     2.16 Credited Service means credited service as defined in the Salaried Pension Plan
or Hourly Pension Plan, as applicable.

     2.17 Company Stock means common stock of the Company.

4

 

     2.18 Deemed Election  means a passive election to make Before-Tax Contributions to the
Plan pursuant to Section 3.02(d).

     2.19 Deferral Election means the election made by a Participant in accordance with
Section 3.02.

     2.20 Defined Benefit Plan means any Retirement Plan which does not meet the definition
of a Defined Contribution Plan.

     2.21 Defined Contribution Plan means a Retirement Plan which provides for an
individual account for each participant and for benefits based solely on the amount contributed to
the participant’s account and on any income, expenses, gains, and losses, and any forfeitures of
accounts of other participants, which may be allocated to such participant’s account. For this
purpose, any Participant’s contributions made pursuant to a Defined Benefit Plan maintained by the
Company or an Affiliated Company shall be treated as a separate Defined Contribution Plan.

     2.22 Distribution Event means: (a) a Participant’s severance from employment with the
Company and all Affiliated Companies, death or disability, in each case as defined by Code Section
401(k)(s)(B)(i).

     2.23 Electing Employee means an Employee who voluntarily elects to cease accruing
years of Credited Service under the Salaried Pension Plan as of the Retirement Program Change
Effective Date in order to receive Company Core Contributions and increased Company Matching
Contributions.

     2.24 Employee means (a) any salaried employee of an Employer or (b) any non-union
hourly paid employee who is employed by an Employer at one of the locations from time to time
designated by the Vice President — Human Resources and listed on Exhibit I attached hereto and made
a part hereof, as said Exhibit I is updated from time to time; provided however, that no person
shall be an Employee if such person is a leased employee (as defined below) of an Employer, a
participant in the Supplemental Employment Program, a foreign national on a temporary assignment to
an Employer, or an employee
working under a

5

 

Summer Internship Program, a Cooperative Education Program, or other temporary
or supplemental employment program of an Employer. An employee of an Employer who is covered by a
collective bargaining agreement shall not be an Employee unless the terms of such collective
bargaining agreement provide for participation in the Plan. Notwithstanding the foregoing, if a
leased employee becomes an Employee, his service with the Company and Affiliated Companies prior to
becoming an Employee shall be taken into account for eligibility and vesting purposes under the
Plan. The term “employee” as used herein shall mean any common law employee of the Company or an
Affiliated Company but shall exclude any person classified by the Company as an independent
contractor even if such individual is subsequently reclassified as a common law employee by the
Internal Revenue Service or any other agency, entity, or person.

     For purposes of the preceding paragraph, a “leased employee” is any person (other than an
employee of the Employer) who pursuant to an agreement between the Employer and any other person
(leasing organization) has performed services for the Employer (or for the Employer and related
persons determined in accordance with Code Section 414(n)(6)) on a substantially full-time basis
for a period of at least one year, and such services are performed under primary direction or
control by the Employer.

     2.25 Employer means the Company and/or any Participating Employer, either collectively
or separately as the context requires.

     2.26 Employment Commencement Date means the date on which the Employee first performs
an Hour of Service under Section 2.30(a) for an Employer or an Affiliated Company.

     2.27 ERISA means the Employee Retirement Income Security Act of 1974, as amended from
time to time.

     2.28 Fair Market Value, as of any New York Stock Exchange business day with respect to
Company Stock, means the closing sale price for Company Stock for such
date

6

 

on the New York Stock Exchange, or, if no such sale occurred, the average of the closing
bid and asked prices for such date on the New York Stock Exchange.

     2.29 Hourly Pension Plan means the Pension Plan for Hourly Rated Employees of Air
Products and Chemicals, Inc., as amended from time to time.

     2.30 Hour of Service means:

     (a) each hour for which an employee (whether or not as an Employee) is directly or indirectly
paid, or entitled to payment, for the performance of duties for the Company or an Affiliated
Company during the applicable computation period;

     (b) each hour for which an employee (whether or not as an Employee) is directly or indirectly
paid, or entitled to payment, by the Company or an Affiliated Company on account of a period of
time during which no duties are performed (irrespective of whether the employment relationship has
terminated) due to vacation, holiday, illness, incapacity (including short-term disability for
salaried Employees), layoff, jury duty, military duty, or leave of absence;

     (c) each hour for which back pay, irrespective of mitigation of damages, is either awarded or
agreed to by the Company or an Affiliated Company, with respect to an employee (whether or not an
Employee), provided such hours have not previously been credited under either Paragraphs (a) or (b)
above; and

     (d) In the case of an employee who is reemployed by the Company or an Affiliated Company in
accordance with the requirements of applicable federal law following an authorized leave of absence
due to service in the Armed Forces of the United States, each hour during which such employee
(whether or not as an Employee) is not performing duties for the Company or an Affiliated Company
due to such military leave whether or not such employee is paid, or entitled to payment, by the
Company or an Affiliated Company.

     For purposes of this Section, a payment shall be deemed to be made by or due from the Company
or an Affiliated Company whether such payment is directly

7

 

made by or due from the Company or
Affiliated Company, or indirectly made through, among other sources, a trust fund or insurer to
which the Company or Affiliated Company contributes or pays premium (e.g., for group term
life insurance).

     For purposes of Paragraphs (b) and (c) above, the following rules shall apply:

          (i) No more than five hundred and one (501) Hours of Service shall be credited on account of
any single continuous period during which the employee performs no duties for the Company or an
Affiliated Company (whether or not such period occurs in a single computation period) except for
short term disability salary continuation;

          (ii) No Hours of Service shall be credited for a payment made or due under a plan maintained
solely for the purpose of complying with applicable workers’ compensation, unemployment
compensation, or disability insurance laws; and

          (iii) No Hours of Service shall be credited for a payment which solely reimburses an employee
for medical or medically related expenses incurred by the employee.

     In the case of a payment which is made or due on account of a period during which an employee
performs no duties for the Company or an Affiliated Company, and which results in the crediting of
Hours of Service under Paragraphs (b) or (c) above, the number of hours and the period to which
such hours are to be credited shall be determined in accordance with the rules promulgated by the
United States Department of Labor in paragraphs (b), (c), and (d) of the regulations at 29 CFR §
2530.200b-2 or any future regulations which change, amend, or supersede such regulations, which
regulations are incorporated by reference herein.

     2.31 IGS Savings Plan means the Industrial Gas and Supply Company Retirement Savings
Plan which was merged into the Plan effective as of March 31, 2000.

8

 

     2.32 Investment Vehicle means any security or other investment in which the Trustee is
authorized to invest Participant Contributions transferred to a particular Participant Investment
Fund, other than cash or interest-bearing investments of a short-term nature in which such
Participant Contributions may be temporarily invested pending investment in such security or other
investment.

     2.33 Matched Contributions mean Before-Tax Contributions and After-Tax Contributions
that are matched by the Employer in accordance with Section 3.03.

     2.34 Matured Company Matching Contributions mean the amount, including earnings,
credited to a Participant’s Company Matching Contributions account for at least two full Plan
Years.

     2.35 Normal Retirement Age means age 65.

     2.36 Participant means: (a) any Employee who is eligible to participate in the Plan in
accordance with Section 3.01, or (b) any former Employee by whom or for whom contributions have
been made under Sections 3.02, 3.03, 3.04, 3.12, or 3.13, and (c) any participant in the IGS
Savings Plan on March 30, 2002, until such time as all such contributions and earnings thereon have
been withdrawn by or distributed to such Employee, former Employee or IGS Savings Plan Participant.

     2.37 Participant Contributions mean, collectively, funds held and invested by the
Trustee under the Trust Agreement which were, when first transferred to the Trustee, Matched
Contributions, Unmatched Contributions, rollover contributions as described in Section 3.12, or
assets received in plan-to-plan transfers or mergers as described in Section 3.13, together with
earnings thereon.

     2.38 Participant Investment Funds mean the funds described in Section 4.02, as amended
from time to time, in which Participant Contributions and Company Matching Contributions are held
for investment.

     2.39 Participating Employer means those Affiliated Companies listed as Participating
Employers on Schedule I hereto, while such designation is in effect, and any

9

 

Affiliated Company
which is later designated by the Board or pursuant to authority delegated by the Board as a
Participating Employer under the Plan, whose designation has not been revoked. An Affiliated
Company’s status as a Participating Employer shall be automatically revoked upon its ceasing to be
an Affiliated Company. A Participating Employer or the Board or person acting pursuant to
authority delegated by the Board may revoke such designation at any time, but until such acceptance
has been revoked, all of the provisions of the Plan and amendments thereto shall apply to the
Employees and former Employees of the Participating Employer. In the event the designation of a
Participating Employer is revoked, the Plan shall be deemed discontinued only as to such
Participating Employer.

     2.40 Party in Interest has the meaning provided in ERISA Section 3(14), or regulations
promulgated thereunder or any future regulations which change, amend, or supersede such
regulations.

     2.41 Period of Severance means a 12-consecutive-month period beginning on an
individual’s Severance from Service Date or any anniversary thereof and ending on the next
succeeding anniversary of such date during which the individual is not credited with at least one
Hour of Service.

     2.42 Plan means the “Air Products and Chemicals, Inc. Retirement Savings Plan” as set
forth herein and as amended from time to time.

     2.43 Plan Administrator means the Company’s Director, Compensation and Benefits, prior
to February 2, 2006 and, thereafter, shall be the Vice President – Human Resources, or such other
person or entity as the Vice President – Human Resources shall appoint to fill such role.

     2.44 Plan Year means the annual period beginning on October 1 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. The Plan Year shall also be the limitation year for purposes of
applying the limitation of Code Section 415.

     2.45 Qualified Domestic Relations Order means: (a) any qualified domestic relations
order as defined in Code Section 414(p) and ERISA Section 206(d), or (b) any other

10

 

domestic
relations order permitted to be treated as a qualified domestic relations order by the Plan
Administrator under the provisions of the Retirement Equity Act of 1984 and which the Plan
Administrator determines to treat as a qualified domestic relations order.

     2.46 Reemployment Commencement Date means the first day on which an individual
performs an Hour of Service under Section 2.30(a) after incurring a Period of Severance.

     2.47 Retirement Plan means: (a) any profit-sharing, pension, or stock bonus plan
described in Code Sections 401(a) and 501(a), (b) any annuity plan or annuity contract described in
Code Sections 403(a) or 403(b) of the Code, or (c) any individual retirement account or individual
retirement annuity described in Code Sections 408(a) or 408(b).

     2.48 Retirement Program Change Effective Date means January 1, 2005, except that (a)
for Employees at the South Brunswick, New Jersey facility who were hourly-rated instrument and
electrical technicians, warehouse technicians, laboratory technicians, maintenance technicians,
operation technicians, or production technicians as of January 1, 2005, the Retirement Program
Change Effective Date shall be January 1, 2006, and (b) for salaried Employees who were on military
leave on January 1, 2005, the Retirement Program Change Effective Date shall be the first of the
month following 30 days after returning from military leave.

     2.49 Salaried Pension Plan means the Air Products and Chemicals, Inc. Pension Plan for
Salaried Employees, as amended from time to time.

     2.50 Severance from Service Date occurs on the earlier of (i) the date on which an
employee retires, voluntarily terminates, or is discharged from employment with an Employer and all
Affiliated Companies or dies; or (ii) the first anniversary of the first date of a period in which
an Employee remains absent from service (with or without pay) with the Employer and all Affiliated
Companies for any reason other than voluntary termination, retirement, discharge, or death, such as
vacation, holiday, sickness, disability, leave of absence, or layoff; provided that, in the case of
an individual who is absent from work for maternity or paternity reasons, a Severance from Service
Date shall not occur until the second

11

 

anniversary of the date the individual begins such maternity
or paternity leave. For purposes of the foregoing, an Employee’s absence from work for maternity
or paternity reasons means an absence (a) by reason of the pregnancy of the Employee, (b) by reason
of the birth of a child of the Employee, (c) by reason of the placement of a child with the
Employee in connection with the adoption of such child by such Employee, or (d) for purposes of
caring for such child for a period beginning immediately following such birth or placement;
provided that the Employee has provided to the Plan Administrator, in the form and manner
prescribed by the Plan Administrator, information establishing (a) that the absence from work is
for maternity or paternity reasons and (b) the number of days for which there was such an absence.
Nothing in this Section shall be construed as expanding or amending any maternity or paternity
leave policy of the Employer. Notwithstanding the above, an individual who is absent from work due
to a leave of absence, whether or not for maternity or paternity reasons, who returns to work
immediately following the leave of absence shall be deemed not to have a Severance from Service
date.

     2.51 Trust Agreement means the trust agreement referred to in Article IV, as the same
may be amended from time to time.

     2.52 Trust Fund means the assets held in trust for purposes of the Plan.

     2.53 Trustee means State Street Bank or such other trustee or trustees as shall be
appointed by the Investment Committee under the Trust Agreement.

     2.54 Unmatched Contributions mean any After-Tax Contributions which are not Matched
Contributions, Before-Tax Contributions which are not Matched Contributions or Catch-up
Contributions.

     2.55 Unmatured Company Matching Contributions mean the amount, including earnings,
credited to a Participant’s Company Matching Contributions account for less than two full Plan
Years.

     2.56 Vice President-Human Resources means the Vice President-Human Resources of the
Company or his or her delegate with respect to matters delegated.

12

 

     2.57 Years of Service mean the service credited to a Participant for purposes of
determining the amount of Company Core Contributions allocated to the Participant’s account under
Section 3.4. The following rules shall apply in calculating Years of Service under this Plan:

     (a) An Employee shall be credited with a Year of Service for each 12 consecutive month period
during the period beginning on the Employee’s Employment Commencement Date and ending on the
Employee’s Severance from Service Date.

     (b) If an Employee has a Severance from Service Date and after January 1, 2005 is rehired by
the Employer, Years of Service prior to the Employee’s Severance from Service Date shall not be
taken into account as Years of Service. The Employee’s date of reemployment shall be the
Employee’s Employment Commencement Date for purposes of (a) above.

     (c) Notwithstanding the foregoing, for periods of service prior to January 1, 2005, an
Employee who was a Core Contribution Participant as of January 1, 2005, or an hourly employee
participating in the Hourly Pension Plan as of January 1, 2005 who becomes a salaried Employee
thereafter, will be credited with Years of Service beginning with the date he or she first earned
Credited Service under the Salaried Pension Plan or the Hourly Pension Plan, but excluding any
period when he or she was not employed by the Company or an Affiliated Company, and any period with
respect to which service is not taken into account in calculating his or her Accrued Benefit
under such Plan as of January 1, 2005.

     2.58 Years of Vesting Service mean the service credited to an Employee for purposes of
determining the Employee’s vested interest in the portion of his account attributable to Company
Core Contributions and related investment earnings and losses. The following rules shall apply in
calculating Years of Vesting Service under this Plan:

     (a) An Employee shall be credited with full and partial Years of Vesting Service for the
period from the Employee’s Employment Commencement Date to the Employee’s Severance from Service
Date and, if applicable, from the Employee’s

13

 

Reemployment Commencement Date to the Employee’s
subsequent Severance from Service Date; provided that, an Employee who is absent from work due to
maternity or paternity leave as defined in subsection 2.50 shall not be credited with Vesting
Service for any period of such maternity or paternity leave that extends beyond the one year
anniversary of the date the individual begins such maternity or paternity leave. Years of Vesting
Service shall be calculated on the basis that 12 consecutive months of employment equal one year.
For this purpose, partial Years of Vesting Service shall be aggregated.

     (b) If an Employee retires, voluntarily terminates, or is discharged from employment with the
Employer and all Affiliated Companies and is subsequently reemployed, the period commencing on the
Employee’s Severance from Service Date and ending on the reemployment date shall be taken into
account, if such period is 12 months or less in duration; provided that, if an Employee retires,
voluntarily terminates, or is discharged from employment with the Employer and all Affiliated
Companies during a period when the Employee was absent for another reason and is subsequently
reemployed, the period commencing on the Employee’s Severance from Service Date and ending on the
reemployment date shall be taken into account, but only if the reemployment date occurs within 12
months of the first date of absence.

     (c) If an Employee is reemployed after incurring five consecutive Periods of Severance, and
the Employee had never previously earned any vested benefits under the Plan, including Company
Matching Contributions, Years of Vesting Service after such Periods of Severance shall not be taken
into account for purposes of determining the vested interest in the portion of his account
attributable to Company Core Contributions made before such Periods of Severance, and Years of
Vesting Service before such Periods of Severance shall not be taken into account for the purpose of
determining the vested interest in the portion of his account attributable to Company Core
Contributions made after such Periods of Severance.

     (d) Years of Vesting Service shall include all periods described in paragraphs (a), and (b)
above (including those periods during which the Employee was

14

 

a leased employee within the meaning
of section 414(n) or 414(o) of the Code whether or not the Employee qualified as an Employee during
those periods.

ARTICLE III

ELIGIBILITY, CONTRIBUTIONS, WITHDRAWALS, DISTRIBUTIONS,

ROLLOVERS, AND PLAN-TO-PLAN TRANSFERS

     3.01 Eligibility and Commencement of Participation.

          (a) An Employee shall be eligible to participate in the Plan upon meeting the requirements of
(i) or (ii) as follows:

               (i) An Employee shall be eligible to participate in the Plan upon completion of thirty (30)
days of service after the date as of which the Employee is first scheduled or expected to be
credited with one thousand (1,000) Hours of Service as an Employee during the next twelve
(12)-month period. Such Employee will begin his participation as of the first complete pay period
in the first or any later calendar month following the completion of such thirty (30) days of
service if such Employee shall make an affirmative election to participate in accordance with
procedures adopted by the
Plan Administrator under Paragraph 3.02(a), (b), or (c) , or a Deemed Election pursuant to
Paragraph 3.02(d). Any affirmative election must be received no later than the last business day
on or before the fifteenth (15th) day of the month preceding the month in which such participation
is to begin to be effective. Notwithstanding the foregoing, a Core Contribution Participant shall
be eligible to participate in benefits under Section 3.04 of the Plan on the later of the
Retirement Program Change Effective Date or the date he becomes a Core Contribution
Participant, provided that he is scheduled or expected to be credited with one thousand (1,000)
Hours of Service during the next twelve (12)-month period.

               (ii) An Employee who has not satisfied the service requirements of the preceding paragraph
shall be eligible to participate in the Plan, upon such Employee’s completion of 1,000 Hours of
Service during an eligibility computation

15

 

period. An eligibility computation period is the twelve
(12) month period beginning on the Employee’s Employment Commencement Date, or, in the event such
Employee does not complete 1,000 Hours of Service in such twelve (12) month period, all Plan Years
beginning after the first day of such twelve (12) month period. Such an Employee may begin his
participation as of the first full pay period which includes the earlier of (i) the first day of
the Plan Year which follows his satisfaction of the eligibility requirements in the preceding
sentence, or (ii) the date which is six months after the date on which he satisfied such
eligibility requirements, if such Employee makes an affirmative election to participate in
accordance with Paragraph 3.01(a)(i). A Core Contribution Participant who has not satisfied the
service requirements of the preceding paragraph shall be eligible to participate in benefits under
Section 3.04 of the Plan upon such Participant’s completion of 1,000 Hours of Service during an
eligibility computation period.

               (iii) Employees who were former participants of the IGS Savings Plan shall be eligible to
participate upon their becoming an Employee provided they make an affirmative election to
participate in accordance with the procedures adopted
by the Plan Administrator under subsection 3.02(a), (b), or (c) or a Deemed Election pursuant
to subsection 3.02(d).

          (b) An Employee eligible to participate in the Plan shall remain eligible to participate
(subject to the applicable suspension provisions of Sections 3.02, 3.07, and 3.08) for so long as
he is an Employee. An Employee who terminates his employment with the Company and all Affiliated
Companies after becoming eligible to participate in the Plan shall, upon reemployment by an
Employer as an Employee, be eligible to participate in the Plan and may begin his participation as
of the first pay period in the first or any later calendar month following such reemployment so
long as an election is properly made as provided in the Paragraph 3.01(a)(i); except that such
reemployed Core Contribution Participant shall be eligible to participate in Company Core
Contributions as of the later of the Retirement Program Change Date or his Reemployment
Commencement Date. An Employee who becomes represented by a collective bargaining agent will
remain eligible to participate in the Plan until a collective

16

 

bargaining agreement is executed by
the Employer by which the Employee is employed and the bargaining agent and, subsequent thereto,
will only remain eligible to participate in the Plan if the collective bargaining agreement so
provides. An Employee who terminates employment with the Company and all Affiliated Companies
prior to becoming eligible to participate in the Plan shall be treated as a new Employee for
purposes of this Section 3.01 upon reemployment by an Employer.

     (c) Notwithstanding any other provision of this Plan, the availability of Before-Tax
Contributions, After-Tax Contributions, Catch-up Contributions, Company Core Contributions and
Company Matching Contributions shall not discriminate in favor of Highly Compensated Employees.

     3.02 Before-Tax, After-Tax and Catch-up Contributions. Each Employee shall commence
participation in the Plan by making an election to make contributions to the Plan as described in
(a), (b), (c), or (d) below (the “Deferral Election”).

     (a) Before-Tax Contributions. An Employee may make an election to reduce periodic
installments of his Annual Salary otherwise payable for each succeeding pay period and make a
contribution to the Plan on his behalf in an amount equal to 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13,
14, 15, or 16 percent for pay received before November 1, 2002, and, effective for pays received
beginning on or after November 1, 2002, in an amount equal to a whole number from 3 to 50 percent
of such periodic installment of his Annual Salary (subject to the provisions of Section 3.07).

     (b) After-Tax Contributions. An Employee may make an election to contribute an amount
equal to 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, or 16 percent of each such periodic
installment of his Annual Salary (subject to the provisions of Section 3.07) to the Plan.

     (c) Catch-up Contributions. Effective October 1, 2002, a Participant who attains age
50 by the end of the applicable calendar year and who has made Before-Tax Contributions for the
calendar year or Plan Year, as applicable, up to the lesser of the statutory limit described in
Section 3.07(c)(i), the Plan limit described in

17

 

Section 3.02(a), or, if such Participant is a
Highly Compensated Employee, the highest amount of Before Tax Contributions that can be retained in
the Plan with respect to such Participant without violating the Average Deferral Percentage Test
described in Section 3.07(b)(1), shall be eligible to make additional Before-Tax Contributions to
the Plan in the following amounts.

	 	 	 	 	 	 	 	 	 
	 	 	For calendar years:	 	Catch-Up Contribution Limit
	 
	 	 	2002	 	 	$	1,000	 
	 
	 	 	2003	 	 	$	2,000	 
	 
	 	 	2004	 	 	$	3,000	 
	 
	 	 	2005	 	 	$	4,000	 
	 
	 	 	2006	 	 	$	5,000;	 

Thereafter, such a Participant may make a Catch-up Contribution equal to the amounts in effect for
the calendar year pursuant to cost of living adjustments described in Code
Section 414(v)(2)(c).

     (d) Deemed Election. For Employees who become eligible to participate in the Plan
after November 30, 1998, the Employee shall be considered to have directed the Employer to reduce
his salary in order to make a Before-Tax Contribution in an amount equal to three (3) percent of
each periodic installment of his Annual Salary (subject to the provisions of Section 3.07) on his
behalf to the trust for the Plan established under the Trust Agreement unless such Employee files
an election directing the Employer to either not reduce each such periodic installment of his
Annual Salary, or to reduce his salary to make either a Before-Tax Contribution under the terms of
Paragraph 3.02(a) in an amount different from three (3) percent or an After-Tax Contribution under
the terms of Paragraph 3.02(b). Such Deemed Election shall be effective in accordance with
procedures established by the Plan Administrator after written notice has been provided to the
Employee. Notwithstanding the foregoing, effective on or after the Retirement Program Change
Effective Date, each salaried Employee who becomes eligible to participate in the Plan on or
after the Retirement Program Change Effective Date shall be considered to have directed the
Employer to

18

 

reduce his salary in order to make a Before-Tax Contribution in an amount equal to six
(6) percent of each periodic installment of his Annual Salary (subject to the provisions of Section
3.07) on his behalf to the trust for the Plan established under the Trust Agreement unless such
Employee files (or has filed) a Deferral Election with the Employer.

     (e) Limits on Contributions. Notwithstanding the foregoing, the maximum combined
total of After-Tax Contributions and Before-Tax Contributions being made by or on behalf of a
Participant at any time may not exceed 50 percent of the Participant’s installments of Annual
Salary payable at the time, and After-Tax Contributions and Before-Tax Contributions may be made
only to the extent that such Contributions to a Participant’s account for any Plan Year do not
cause the limitations on Annual Additions to a Participant’s account as set forth in Section 3.14
to be exceeded.

     (f) Election Changes. An Employee may, by giving notice to the Plan Administrator on
or prior to the last business day beginning on or before the fifteenth (15th) day of the calendar
month and subject to the provisions of Section 3.07, change his Deferral Election, including a
Deemed Election, and direct the Employer to reduce or contribute, as the case may be, different
permitted percentages of his periodic installments of Annual Salary, effective as of the first pay
received in the next succeeding calendar month. In the event of a change in Annual Salary, the
Employee’s then current contribution percentage shall automatically be applied to the new Annual
Salary, as soon as administratively practicable thereafter.

     (g) Suspension of Elections. An Employee may, by notice to the Plan Administrator,
suspend his Deferral Election beginning with the next calendar month. In addition, suspension
shall be automatic as of the first pay in which a Participant ceases to be an Employee. In the
event of such a suspension, the Participant may elect to resume his Deferral Election in accordance
with the provisions of Section 3.01 as of the first full pay period in the first or any succeeding
calendar

19

 

month following the month in which such suspension occurred, provided that he is an
Employee as of the date when the Deferral Election resumes.

     (h) Termination of Elections. Subsequent to a Distribution Event, the Participant
shall have no right to continue making contributions to the Plan, but shall have the right to
redirect the investment of the amounts in his accounts in accordance with Section 4.03 and to
change or revoke his written designation of Beneficiary in accordance with Section 5.02.

     (i) Administrative Rules. The Plan Administrator may from time to time establish such
rules and procedures for determining and adjusting the percentages of Annual Salary subject to
Deferral Elections as the Plan Administrator shall in his sole discretion deem to be necessary or
desirable for the administration of the Plan in accordance with the Code and ERISA, including,
without limitation, rules and procedures establishing limitations on the frequency with which all
or certain
Participants may alter the percentages of their Annual Salary which are subject to Deferral
Elections and rules and procedures allowing for the contribution of a specified dollar amount of
Before-Tax Contributions, After-Tax Contributions or Catch-up Contributions in lieu of a fixed
whole percentage.

     (j) Vesting. A Participant shall have a fully vested, nonforfeitable right to any
benefits derived from Before-Tax Contributions, After-Tax Contributions and Catch-up Contributions
made under this Section 3.02.

     3.03 Company Matching Contributions. The Employer shall make Company Matching
Contributions to the Plan on behalf of each Employee who participates in the Plan in accordance
with the following provisions:

     (a) Enhanced Formula. Effective as of the later of the Retirement Program Change
Effective Date or the date he becomes a Core Contribution Participant, each Core Contribution
Participant shall receive Company Matching Contributions as of the end of each month from the
Employer equal to the sum of (i) and (ii) below:

20

 

          (i) 75 percent of the first (4) percent of the Participant’s Annual Salary that is deferred by
the Participant each month to the Plan as Before-Tax Contributions, excluding Catch-up
Contributions, and

          (ii) 50 percent of the next two (2) percent of the Participant’s Annual Salary that is
deferred by the Participant each month to the Plan as Before-Tax Contributions, excluding Catch-up
Contributions.

     (b) Regular Formula. Each Participant who is not eligible to receive Company Matching
Contributions in accordance with (a) above, shall receive Company Matching Contributions as of the
end of each month from the Employer equal to the sum of (i) and (ii) below:

          (i) 75 percent of the first (3) percent of the Participant’s Annual Salary that is deferred by
the Participant each month to the Plan provided that the Participant has elected to contribute at
least 3% as Before-Tax Contributions, excluding Catch-up Contributions, and

          (ii) 25 percent of the next three (3) percent of the Participant’s Annual Salary that is
deferred by the Participant each month to the Plan as Before-Tax Contributions , excluding Catch-up
Contributions, or contributed to the Plan as After-Tax Contributions.

     (c) Form of Company Matching Contribution. A Company Matching Contribution will be
made to the Trustee as of the last New York Stock Exchange business day of each month, but (unless
the Company determines otherwise) only out of the Employer’s current or accumulated earnings and
profits, and may be made in whole or in part in cash or Company Stock. Company Matching
Contributions to be made in Company Stock shall be valued for such purpose at the Fair Market Value
on the last New York Stock Exchange business day of the month for which the Company Matching
Contribution is made. If the Company shall not have taken action to discontinue the Plan in
accordance with the provisions of Section 7.01 prior to the end of any month, each Employer’s
Company Matching Contribution for such month shall

21

 

become a fixed obligation as of the end of such
month to the extent of the Employer’s current or accumulated earnings and profits.

     (d) Limits on Company Matching Contributions. Notwithstanding the foregoing, no
Company Matching Contribution shall be made for the account of any Participant to the extent that
such Company Matching Contribution, after the adjustments provided for in the following sentence,
would violate the Actual Contribution Percentage Test and/or the Multiple Use Limitation, as
described in Section 3.07. Any corrective actions taken to avoid such violations shall be
performed in accordance with Section 3.07.

     (e) Vesting. A Participant shall have a fully vested, nonforfeitable right to any
benefits derived from Company Matching Contributions, subject to the forfeiture provisions of
Section 3.07 and Paragraph 3.14(d).

     3.04 Company Core Contributions. Effective as of the Retirement Program Change
Effective Date, each Core Contribution Participant shall receive Company Core Contributions
from the Employer in accordance with the following provisions:

     (a) Formula. The Employer shall allocate a Company Core Contribution monthly to the
account of each eligible Participant at any time during the Plan Year in accordance with the
following schedule:

	 	 	 	 	 
	Years of Service	 	Amount of Company Core Contributions	 
	Less than 10 Years of Service
	 	4% of Annual Salary
	10-19 Years of Service
	 	5% of Annual Salary
	20 or more Years of Service
	 	6% of Annual Salary

     (b) Notwithstanding the foregoing, Annual Salary for purposes of determining the amount of
Company Core Contributions under (a), above, shall not include any Annual Salary earned by a
Participant before the Participant became eligible to receive Company Core Contributions.

22

 

     3.05 Company Core Contribution Vesting Rules A Participant’s Company Core
Contributions and related investment earnings and losses shall be subject to the following vesting
rules:

     (a) Vesting Schedule. A Participant shall have a fully vested, nonforfeitable right
to the portion of a Participant’s account attributable to Company Core Contributions, including any
related investment earnings and losses, after completing at least 5 Years of Vesting Service or
after, if earlier, attaining Normal Retirement Age while employed by the Employer or an Affiliated
Company.

     (b) Forfeitures.

          (i) If a Participant is not fully vested in Company Core Contributions as described in (a)
above at the time he incurs a Severance from Service Date, the unvested portion of the
Participant’s account attributable to Company Core Contributions and related investment earnings
and losses shall be forfeited as of the earlier of:

               (A) the date on which he receives a distribution of his entire vested interest in his account;
or

               (B) the last day of the Plan Year in which he incurs five consecutive Periods of Severance.

          (ii) A Participant who has no portion of his account attributable to Company Matching
Contributions or Participant Before-Tax Contributions and whose vested interest in the portion of
his account attributable to Company Core Contributions is zero shall be deemed to have received a
distribution of his account as of his Severance from Service Date.

          (iii) If a Participant is rehired by the Employer or an Affiliated Company before incurring
five consecutive Periods of Severance, any amount forfeited under subsections (i) or (ii) shall be
restored to his account. Such restoration shall be

23

 

made from currently forfeited amounts in
accordance with subsection (iv), or from additional contributions by the Employer.

          (iv) Amounts forfeited shall be used to first restore future amounts required to be restored
in accordance with subsection (iii) with respect to the Plan Year. After such restoration, if any,
is made, such amounts shall be used to reduce future Company Core Contributions and Company
Matching Contributions made by the Employer by which the former Participant was employed, or to
defray administrative costs of the Plan as determined by the Company.

     3.06 Timing of Contributions. Before-Tax, After-Tax and Catch-up Contributions shall
be transferred to the Trustee as soon as practicable following the date on which the Participant’s
pay is reduced by the amount of the contribution. Company Matching Contributions and, effective
January 1, 2005, Company Core Contributions shall be transferred to the Trustee no later than the
last date on which amounts so paid may be deducted for federal income tax purposes for the taxable
year of the Employer in which the Plan Year ends.

     3.07 Nondiscrimination Limitations and Corrective Measures.

     (a) For purposes of this Section 3.07, the following terms shall have the meanings indicated
below:

          (i) Actual Contribution Percentage. The Actual Contribution Percentages for a Plan
Year for the group of all Highly Compensated Employees and for the group of all Nonhighly
Compensated Employees respectively are the averages, calculated to the nearest one-hundredth of a
percentage point (.01%), of the ratios, calculated separately to the nearest one-hundredth of a
percentage point (.01%) for each Employee in the respective group, of the amount of Company
Matching Contributions and After-Tax Contributions (and any Qualified Non-Elective Contribution
made under Paragraph 3.07(c)(x) for purposes of satisfying the Actual Contribution Percentage Test)
made to the Plan on behalf of each such Employee for such Plan Year, to the Employee’s Compensation
for such Plan Year, whether or not the Employee was a Participant for the entire Plan Year. The
Actual Contribution

24

 

Percentage calculation may include Before-Tax Contributions, excluding Catch-up
Contributions, so long as: (A) the Actual Deferral Percentage Test is met before such Before-Tax
Contributions are used in the Actual Contribution Percentage Test, and continues to be met
following the exclusion of those Before-Tax Contributions that are used to meet the Actual
Contribution Percentage Test and (B) the requirements of Treasury Regulation §1.401(m)-1(b)(5) are
satisfied. For purposes of determining the Actual Contribution Percentage, only those Employees
who are eligible to elect After-
Tax Contributions or to receive Company Matching Contributions for all or a portion of the
applicable Plan Year, or who would be so eligible absent a suspension in accordance with the terms
of the Plan, are taken into account; any such Employee who would be a Participant if such Employee
made an After-Tax Contribution or had a Before-Tax Contribution made on his behalf shall be treated
as an eligible Employee on behalf of whom no After-Tax Contributions or Company Matching
Contributions are made.

     For purposes of this Section, and except as otherwise provided in Internal Revenue Service
regulations, if the Plan and any other plan are aggregated for purposes of Code Section 410(b)
(other than for purposes of the average benefit percentage test), such plans (including the Plan)
shall be treated as one (1) plan for purposes of calculating the Actual Contribution Percentage.
Except as otherwise provided in Internal Revenue Service regulations, if any Highly Compensated
Employee who is a Participant in this Plan also participates in any other plan of the Employer to
which employee or matching contributions are made, all such plans (including the Plan) shall be
treated as one (1) plan with respect to such Participant.

          (ii) Actual Contribution Percentage Test means the test described in Paragraph
3.07(b)(ii).

          (iii) Actual Deferral Percentage. The Actual Deferral Percentages for a Plan Year for
the group of all Highly Compensated Employees and for the group of all Nonhighly Compensated
Employees respectively are the averages, calculated to the nearest one-hundredth of a percentage
point (.01%), of the ratios,

25

 

calculated separately to the nearest one-hundredth of a percentage
point (.01%) for each Employee in the respective group, of the amount of Before-Tax Contributions,
excluding Catch-up Contributions (and Qualified Non-Elective Contributions made under Paragraph
3.07(c)(x) for purposes of satisfying the Actual Deferral Percentage Test), paid under the Plan on
behalf of each such Employee for such Plan Year, including Excess Deferrals, to the Employee’s
Compensation for such Plan Year
(whether or not the Employee was a Participant for the entire Plan Year) but excluding
Before-Tax Contributions that are taken into account in the Actual Contribution Percentage Test.
Only those Employees who are eligible to elect Before-Tax Contributions for all or a portion of the
applicable Plan Year, or who would be so eligible absent a suspension in accordance with the terms
of the Plan, are taken into account; any such Employee who would be a Participant but for the
failure to have Before-Tax Contributions made on his behalf shall be treated as an eligible
Employee on whose behalf no Before-Tax Contributions are made.

     For purposes of this Section and except as otherwise provided in Internal Revenue Service
regulations, if the Plan and any other plan which includes a cash or deferred arrangement (within
the meaning of Code Section 401(k)) are aggregated for purposes of Code Section 410(b) (other than
for purposes of the average benefit percentage test), the cash or deferred arrangements in such
plans (including the Plan) shall be treated as one (1) plan for purposes of calculating the Actual
Deferral Percentage. Except as otherwise provided in Internal Revenue Service regulations, if any
Highly Compensated Employee who is a Participant in this Plan also participates in any other cash
or deferred arrangement (within the meaning of Code Section 401(k)) of the Company or an Affiliated
Company, all such cash or deferred arrangements (including under the Plan) shall be treated as one
(1) cash or deferred arrangement with respect to such Participant.

          (iv) Actual Deferral Percentage Test means the test described in Paragraph 3.07(b)(i).

26

 

          (v) Compensation shall mean, except as otherwise provided in the definition of “Highly
Compensated Employee”, a definition of compensation which satisfies Code Section 414(s) and
regulations thereunder, and which is consistently used in any one Plan Year for purposes of this
Section 3.07.

          (vi) Excess Aggregate Contributions mean, with respect to any Highly Compensated
Employee for a Plan Year, the excess of:

               (A) The total After-Tax Contributions and Company Matching Contributions (and, where
applicable, Before-Tax Contributions, taken into account under the Actual Contribution Percentage
Test) made on behalf of such Highly Compensated Employee taken into account in computing the Actual
Contribution Percentage for such Plan Year, over

               (B) The maximum amount of After-Tax Contributions and Company Matching Contributions (and,
where applicable, Before-Tax Contributions, taken into account under the Actual Contribution
Percentage Test) on behalf of such Highly Compensated Employee which are permitted by the Actual
Contribution Percentage Test.

          (vii) Excess Contributions mean, with respect to any Highly Compensated Employee for a
Plan Year, the excess of:

               (A) The total Before-Tax Contributions made on behalf of such Highly Compensated Employee
taken into account in computing the Actual Deferral Percentage of Highly Compensated Employees for
such Plan Year, over

               (B) The maximum amount of such Before-Tax Contributions, excluding Catch-up Contributions, on
behalf of such Highly Compensated Employee which are permitted by the Actual Deferral Percentage
Test.

          (viii) Excess Deferrals mean the Before-Tax Contributions that are includible in a
Participant’s gross income because they have exceeded the dollar limitation contained in Code
Section 402(g).

27

 

          (ix) Highly Compensated Employee means any Employee who performs service for the
Company or an Affiliated Company during the determination year (as defined below) and who was: (A)
a Five-Percent Owner at any time during the current or preceding Plan Year, or (B) for the
preceding Plan Year had Compensation from the Employer or an Affiliated Company in excess of
$80,000 (as adjusted pursuant to Code Section 414(q)). At the election of the Plan Administrator
and, as provided for
in Exhibit III, in a manner consistent with Code Section 414(q) and any regulations or other
IRS pronouncements thereunder, clause (B) in the preceding sentence can be limited to those
Employees who are in the top twenty percent (20%) of Employees ranked on the basis of compensation
for such look-back year. At the election of the Plan Administrator, as provided for in Exhibit
III, Compensation for the purpose of this Paragraph 3.07(a)(ix) may be determined on the basis of a
calendar year, rather than the Plan Year.

          (x) To the extent required by applicable law “Highly Compensated Employee” shall also include
a highly compensated former employee, which is any employee who separated from service prior to the
current Plan Year and who was either a Highly Compensated Employee in any determination year ending
on or after the Employee’s attainment of age fifty five (55).

          For purposes of this definition, Compensation is as defined in Code Section 415(c)(3).

          (xi) Multiple Use Limitation means the limitation described in Paragraph 3.07(b)(iii).

          (xii) Nonhighly Compensated Employee means any employee who is not a Highly
Compensated Employee.

          (xiii) Qualified Non-Elective Contributions mean contributions made by the Company
described in Paragraph 3.07(c)(x).

          (xiv) Five Percent Owner means an Employee who shall be considered to be a Five
Percent Owner for any Plan Year if at any time during such year

28

 

such Employee was a five percent
owner of the Employer, determined in accordance with the rules of Code Section 416(i)(1).

     (b) Nondiscrimination Tests.

          (i) Actual Deferral Percentage Test. Notwithstanding any provision herein to the
contrary, the Actual Deferral Percentage for the group of all eligible Highly Compensated Employees
for each Plan Year must not exceed the greater of:

               (A) the Actual Deferral Percentage for the previous Plan Year for the group of all eligible
Nonhighly Compensated Employees multiplied by 1.25; or

               (B) the Actual Deferral Percentage for the previous Plan Year of such group of Nonhighly
Compensated Employees multiplied by 2.0, but in no event more than two (2) percentage points
greater than the Actual Deferral Percentage for the previous Plan Year of such group of Nonhighly
Compensated Employees, subject to the Multiple Use Limitation.

     The Vice President — Human Resources, by written notice to the Plan Administrator may elect to
entirely exclude from the Actual Deferral Percentage test those Employees who could be excluded
from participation under the minimum age and service requirements of Code Section 410(a)(1)(A)
(“early participation employees”), other than those early participation employees who are Highly
Compensated Employees, to the extent permitted under Code Section 401(k)(3)(F). Any such election
shall be reflected in Exhibit III.

     The Actual Deferral Percentage test set forth in this Paragraph 3.07(b)(i) shall be performed
in accordance with Code Section 401(k), the regulations thereunder, and any related IRS
pronouncements, including IRS Notice 98-1 to the extent applicable. The Actual Deferral Percentage
test set forth in this Paragraph 3.07(b)(i) may be performed with current year Non-Highly
Compensated Employee data, rather

29

 

than prior year data, if so elected by the Employer. Any such
election shall be made by the Vice-President — Human Resources and shall be reflected in
Exhibit III.

          (ii) Actual Contribution Percentage Test. Notwithstanding any provision herein to the
contrary, the Actual Contribution Percentage for the group of all eligible Highly Compensated
Employees for each Plan Year must not exceed the greater of:

               (A) The Actual Contribution Percentage for the previous Plan Year for the group of all
eligible Nonhighly Compensated Employees multiplied by 1.25; or

               (B) The Actual Contribution Percentage for the previous Plan Year of such group of Nonhighly
Compensated Employees multiplied by 2.0, but in no event more than two (2) percentage points
greater than the Actual Contribution Percentage for the previous Plan Year of such group of
Nonhighly Compensated Employees, subject to the Multiple Use Limitation.

     The Vice President — Human Resources, by written notice to the Plan Administrator may elect to
entirely exclude from the Actual Contribution Percentage Test those Employees who could be excluded
from participation under the minimum age and service requirements of Code Section 410(a)(1)(A)
(“early participation employees”), other than those early participation employees who are Highly
Compensated Employees, to the extent permitted under Code Section 401(m)(5)(C). Any such election
shall be reflected in Exhibit III.

     The Actual Contribution Percentage test set forth in this Paragraph 3.07(b)(ii) shall be
performed in accordance with Code Section 401(m), the regulations thereunder, and any related IRS
pronouncements, including IRS Notice 98-1 to the extent applicable. The Actual Contribution
Percentage test set forth in this Paragraph 3.07(b)(ii) may be performed with current year
Non-Highly Compensated Employee data, rather than prior year data, if so elected by the
Employer. Any such

30

 

election shall be made by the Vice President — Human Resources and shall
be reflected in Exhibit III.

          (iii) Multiple Use Limitation. Notwithstanding any provision herein to the contrary,
the sum of the Actual Deferral Percentage and the Actual Contribution Percentage for the group of
all Highly Compensated Employees for each Plan Year beginning prior to October 1, 2002 shall not
exceed the Multiple Use Limitation, which shall be the greater of:

               (A) The sum of -

                    (i) 1.25 times the greater of the Actual Deferral Percentage for the previous Plan Year of the
group of Nonhighly Compensated Employees or the Actual Contribution Percentage for the previous
Plan Year of the group of Nonhighly Compensated Employees for such Plan Year, and

                    (ii) Two percentage points plus the lesser of the Actual Deferral Percentage for the previous
Plan Year of the group of Nonhighly Compensated Employees or the Actual Contribution Percentage for
the previous Plan Year of the group of Nonhighly Compensated Employees for such Plan Year (in no
event, however, may this amount exceed twice the lesser of the Actual Deferral Percentage or Actual
Contribution Percentage for the previous Plan Year);

or

               (B) The sum of -

                    (i) 1.25 times the lesser of the Actual Deferral Percentage for the previous Plan Year of the
group of Nonhighly Compensated Employees or the Actual Contribution Percentage of the group of
Nonhighly Compensated Employees for the previous Plan Year, and

                    (ii) Two percentage points plus the greater of the Actual Deferral Percentage for the previous
Plan Year of the group of Nonhighly

31

 

Compensated Employees or the Actual Contribution Percentage of the group of Nonhighly
Compensated Employees for the previous Plan Year (in no event, however, may this amount exceed
twice the greater of the relevant Actual Deferral Percentage or Actual Contribution Percentage for
the Plan Year).

     For this purpose, the Actual Deferral Percentage and Actual Contribution Percentage shall be
determined after any Qualified Non-Elective Contributions and any distributions have been made in
order to satisfy the Actual Deferral Percentage Test and the Actual Contribution Percentage Test.

     If a correction is necessary in order to prevent the Plan from exceeding the Multiple Use
Limitation, such correction shall be made by reducing the Actual Contribution Percentage.

     The Vice President — Human Resources, by written notice to the Plan Administrator may elect to
entirely exclude from the Multiple Use Limitation test those Employees who could be excluded from
participation under the minimum age and service requirements of Code Section 410(a)(1)(A) (“early
participation employees”), other than those early participation employees who are Highly
Compensated Employees, to the extent permitted under Code Section 401(m)(5)(C). Any such election
shall be reflected in Exhibit III.

     The Multiple Use Limitation test set forth in this Paragraph 3.07(b)(iii) shall be performed
in accordance with Code Section 401(m), the regulations thereunder, and any related IRS
pronouncements, including IRS Notice 98-1 to the extent applicable. The Multiple Use test set
forth in this Paragraph 3.07(b)(iii) may be performed with current year Non-Highly Compensated
Employee data, rather than prior year data, if so elected by the Employer. Any such election shall
be made by the Vice President — Human Resources and shall be reflected in Exhibit III.

          (iv) For purposes of Paragraph 3.07(b), a Participant is a Highly Compensated Employee for a
particular Plan Year if he or she satisfies the definition of
a Highly Compensated Employee in effect for that Plan Year. Similarly, a Participant is

32

 

a
Nonhighly Compensated Employee for a particular Plan Year if he or she does not satisfy the
definition of a Highly Compensated Employee in effect for that Plan Year.

          (c) Notwithstanding any other provision of the Plan to the contrary, the percentages of Annual
Salary specified by a Participant in his Deferral Election shall be subject to adjustment or other
corrective measures by the Plan Administrator at any time and from time to time as follows:

               (i) Before-Tax Contributions, excluding Catch-up Contributions, shall not be accepted with
respect to any Participant for a calendar year to the extent such Before-Tax Contributions,
together with any other elective contributions of the Participant to a plan maintained by the
Company or an Affiliated Company, exceed $9,500 (as adjusted in accordance with Code Section
402(g)); accordingly, the Plan Administrator shall adjust downward the percentage of Annual Salary
specified by a Participant in his Deferral Election to be contributed to the Plan as Before-Tax
Contributions, as may be necessary to prevent such Excess Deferrals.

               (ii) Before-Tax Contributions, excluding Catch-up Contributions, for any Plan Year must
satisfy the Actual Deferral Percentage Test and, prior to the Plan Year beginning October 1, 2002,
the Multiple Use Limitation; accordingly, the Plan Administrator shall adjust downward the
percentage of Annual Salary specified by a Participant in his Deferral Election, to the extent
which the Plan Administrator in his sole discretion determines is necessary to maintain the Plan’s
compliance with the Average Deferral Percentage Test and the Multiple Use Limitation.

               (iii) After-Tax Contributions and Company Matching Contributions for any Plan Year must
satisfy the Actual Contribution Percentage Test (after taking into account any Before-Tax
Contributions included in such test pursuant to Paragraph 3.07(a)(i)) and, prior to the Plan Year
beginning October 1, 2002, the Multiple Use Limitation; accordingly, the Plan Administrator shall
adjust downward the percentage of Annual Salary specified by a Participant in his Deferral Election
to be
contributed under Paragraph 3.02(b), to the extent which the Plan Administrator in his

33

 

sole
discretion determines is necessary to maintain the Plan’s compliance with such test and the
Multiple Use Limitation, if applicable.

               (iv) When a downward adjustment has been made pursuant to Paragraph (i), (ii), or (iii) above,
the Plan Administrator may thereafter adjust any such percentage upward to bring it up to or closer
to the percentage specified in the Participant’s most recent Deferral Election whenever the Plan
Administrator determines that such an upward adjustment can be made without exceeding the limits
described in Paragraph (i), (ii), or (iii). In the event of such upward adjustment, each affected
Participant shall be given the opportunity to affirmatively elect to have such higher percentage
apply to him.

               (v) Any downward or upward adjustment in the percentage of Annual Salary specified by a
Participant in his Deferral Election to be contributed to the Plan as Before-Tax Contributions
other than Catch-up Contributions shall, with the Participant’s consent and unless the Plan
Administrator directs otherwise, result in a corresponding increase or decrease, respectively, in
After-Tax Contributions to be contributed to the Plan to the extent permitted under Paragraph (iii)
or, if the Participant is eligible, Catch-up Contributions.

               (vi) If, after application of the above provisions of Paragraph 3.07(c), Excess Deferrals are
made to the Plan, such Excess Deferrals shall be recharacterized as Catch-up Contributions to the
extent that a Participant who is eligible to make Catch-up Contributions has not reached the
applicable Catch-up Contribution limit for the calendar year described in Section 3.02(c). Any
Excess Deferrals remaining after application of the preceding sentence shall be returned to the
Participant with earnings in accordance with Treasury Regulation §1.402(g)-1, no later than April
15 following the close of the calendar year in which such contributions were made. Distributions
shall first be made from Unmatched Contributions, excluding Catch-up Contributions, then from
Catch-up Contributions if any and lastly, from
Matched Contributions. The return of any Matched Contributions shall be accompanied by a
forfeiture of the related Company Matching Contributions and any income

34

 

attributable thereto. Such
forfeited amounts shall be held by the Trustee in a suspense account and applied towards subsequent
Company Matching Contributions.

               (vii) After the close of a calendar year, but no later than the last business day before
April 15 (or such earlier date required by Internal Revenue Service regulations) following such
calendar year, a Participant who was also a participant in another plan to which the limitation on
deferrals described in Code Section 402(g) applies may notify the Plan Administrator that the
Participant has had deferrals contributed to the Plan and such other plan in excess of such
limitation for such preceding calendar year and shall inform the Plan Administrator of the amount
of such Excess Deferrals. Such Participant may request a distribution of such Excess Deferrals.
Such Excess Deferrals shall first be recharacterized as Catch-up Contributions to the extent that a
Participant who is eligible to make Catch-up Contributions has not reached the applicable Catch-up
Contribution limit for the calendar year described in Section 3.02(c). Any Excess Deferrals
remaining after application of the preceding sentence shall be distributed with the earnings
attributable thereto in accordance with Treasury Regulation §1.402(g)-1 no later than the April 15
following such notification. Distributions shall first be made from Unmatched Contributions,
excluding Catch-up Contributions, and the return of any Matched Contributions shall be accompanied
by a forfeiture of the related Company Matching Contributions and any income attributable thereto.
Such forfeited amounts shall be held by the Trustee in a suspense account and applied towards
subsequent Company Matching Contributions.

               (viii) If, after application of the above provisions of Paragraph 3.07(c), Excess
Contributions are made to the Plan, such Excess Contributions and the earnings attributable thereto
shall be recharacterized as Catch-up Contributions to the extent that a Participant who is eligible
to make Catch-up Contributions has not reached the applicable Catch-up Contribution limit for the
calendar year described in Section 3.02(c). Any Excess Contributions remaining after
application of the preceding sentence shall be distributed to Highly Compensated Employees making
such Excess Contributions no later than December 15 following the

35

 

close of such Plan Year. The
Highly Compensated Employee with the largest amounts of Before-Tax Contributions shall have his
Before-Tax Contributions, excluding Catch-up Contributions, reduced to the greater of: (A) the
highest dollar amount of Before-Tax Contributions, excluding Catch-up Contributions, that can be
made without violating the limit of Paragraph 3.07(b)(i), or (B) the next highest dollar amount of
Before-Tax Contributions, excluding Catch-up Contributions, of any other Highly Compensated
Employee. Such process is repeated until Paragraph 3.07 (b)(i) is satisfied in accordance with
Treasury Regulation §1.401(k)-1(f)(4)(ii). Distributions shall first be made from Unmatched
Contributions, excluding Catch-up Contributions, then from Catch-up Contributions if any and lastly
from Matched Contributions. The return of any Matched Contributions shall be accompanied by a
forfeiture of the related Company Matching Contributions and any income attributable thereto. Such
forfeited amounts shall be held by the Trustee in a suspense account and applied towards subsequent
Company Matching Contributions.

               (ix) If, after application of the above provisions of Paragraph 3.07(b)(ii), Excess Aggregate
Contributions are made to the Plan, such Excess Aggregate Contributions and the earnings
attributable thereto shall be recharacterized as Catch-up Contributions to the extent that a
Participant who is eligible to make Catch-up Contributions has not reached the applicable Catch-up
Contribution limit for the calendar year described in Section 3.02(c). Any Excess Aggregate
Contributions remaining after application of the preceding sentence shall be distributed to Highly
Compensated Employees making such Excess Aggregate Contributions no later than December 15
following the close of the Plan Year. The Highly Compensated Employee with the largest amounts of
contributions taken into account in computing the Actual Contribution Percentage Test (“ACP
contributions”) shall have his ACP contributions reduced to the greater of: (A) the highest dollar
amount of ACP contributions that can be made without violating the limit of
Paragraph 3.07(b)(ii), or (B) the next highest dollar amount of ACP contributions of any other
Highly Compensated Employee. Such process is repeated until Paragraph 3.07(b)(ii) is satisfied in
accordance with Treasury Regulation §1.401(m)-1(e)(3)(iv). To the extent

36

 

permitted by such
regulation, After-Tax Contributions and any Company Matching Contributions attributable thereto
shall be distributed first.

               (x) Notwithstanding any other provision of this Section 3.07 or of the Plan to the contrary,
the Employer may, by action of the Company, determine to make a special Employer contribution (a
“Qualified Non-Elective Contribution”) to the Plan for the account of certain Participants who are
Nonhighly Compensated Employees in order to maintain the Plan’s compliance with the
non-discrimination requirements of Code Sections 401(k) and 401(m) and in lieu of (or in
combination with) making the adjustment in the percentage of Annual Salary specified by
Participants in their Deferral Elections or returning Contributions as provided in this Section
3.07. Any such Qualified Non-Elective Contribution shall be in such amount as is determined by the
Company and will be allocated as determined by the Company to the individual accounts of
Participants who are Nonhighly Compensated Employees and who actively contributed to the Plan
during, and are Employees at the end of, the Plan Year for which such contribution is made. Any
such Qualified Non-Elective Contribution shall be nonforfeitable and shall be treated for all
purposes as a Before-Tax Contribution under the Plan, including for purposes of the limitations on
distribution described in this Article 3, except that such contribution shall not be applied
against or counted for purposes of determining compliance with the percent limitation on Before-Tax
Contributions in Section 3.02 the combined percent limitation on Before-Tax Contributions and
After-Tax Contributions contained in Section 3.02, or the limitation on Before-Tax Contributions
contained in this Section 3.07. Any such Qualified Non-Elective Contribution shall be made to the
Trustee no later than the last day of the Plan Year next succeeding the Plan Year for which the
contribution is made, and may be made in whole or in part in cash or in shares of Company Stock.
Payment of any such Qualified Non-Elective Contribution (whether in the form of cash or Company
Stock) for a Plan Year which is made by the Employer after the close of such
Plan Year shall be treated by the Plan in the same manner as if it were received on or before
the last day of such Plan Year.

37

 

     3.08 Withdrawals by Participants of After-Tax Contributions, Company Matching
Contributions, Before-Tax and Catch-up Contributions. Participants who have not had a
Distribution Event may not make withdrawals.

     (a) After-Tax Contributions. Upon application to the Trustee at any time no sooner
then twelve (12) months after any earlier withdrawal by such Participant of After-Tax Contributions
under this Paragraph 3.08(a), Before-Tax Contributions under Paragraph 3.08(c)(ii)(A),or Company
Matching Contributions under Paragraph 3.08(b), a Participant may withdraw all or a portion of the
amounts then credited to his After-Tax Contributions account.

     There shall be no suspension of the withdrawing Participant’s right to make After-Tax
Contributions following a withdrawal under this Paragraph 3.08(a).

     (b) Company Matching Contributions. Upon application to the Trustee at any time no
sooner than twelve (12) months after any earlier withdrawal by him under this Paragraph 3.08(b),
After-Tax Contributions under Paragraph 3.08(a), or Before-Tax Contributions under Paragraph
3.08(c)(ii)(A), a Participant may withdraw all or a portion of the amounts then credited to his
Matured Company Matching Contributions account; provided, however, that such Participant shall
first have withdrawn, or shall have applied to make a concurrent withdrawal of all amounts credited
to his After-Tax Contributions account. A Participant will have no right to withdraw amounts
credited to his Unmatured Company Matching Contributions account.

     (c) Before-Tax Contributions. A Participant cannot withdraw amounts credited to his
Before-Tax Contribution accounts, except that a Participant may withdraw all or a portion of such
amounts if:

          (i) The Participant has no, or is concurrently applying to withdraw all, amounts credited to
any After-Tax Contributions account or to any Matured Company Matching Contributions account; and

          (ii) The Participant has (A) attained age fifty-nine and one-half (591/2) or (B) provided
evidence satisfactory to the Plan Administrator that the

38

 

Participant’s withdrawal qualifies as a
hardship withdrawal which satisfies the standards of subsection (d) below; and

          (iii) In the case of a withdrawal under Paragraph 3.08(c)(ii)(A), no withdrawal has been made
in the preceding twelve (12) months of After-Tax Contributions under Paragraph 3.08(a), Before-Tax
Contributions under this Paragraph 3.08(c), or Matured Company Matching Contributions under
Paragraph 3.08(b).

     If a Participant shall make application to withdraw any Before-Tax Contributions due to
attainment of age fifty-nine and one-half (591/2), his election to make Before-Tax Contributions,
including Catch-up Contributions, or After-Tax Contributions shall not be affected by such
withdrawal. If a Participant shall make application to withdraw any Before-Tax Contribution due to
hardship, future contributions shall be suspended in accordance with Paragraph 3.08(d)(3).

     An application to withdraw Before-Tax Contributions due to attainment of age fifty-nine and
one-half (591/2) shall be made to the Trustee. An application to withdraw Before-Tax Contributions
due to hardship shall be made to the Plan Administrator.

     (d) Hardship Withdrawal Standards. A withdrawal will be deemed to constitute a
hardship withdrawal if: (1) the Participant has an immediate and heavy financial need; and (2) a
distribution from the Plan is necessary to meet that need. A Participant will be treated as having
an immediate and heavy financial need only if the funds are required to cover one of the following:

          (i) Expenses for medical care described in Code Section 213(d) previously incurred by the
Participant or the Participant’s spouse or dependents (as defined in Code Section 152) or necessary
for these persons to obtain such medical care;

          (ii) Costs directly related to the purchase (excluding mortgage payments) of a principal
residence for the Participant;

39

 

          (iii) Post-secondary education tuition, related educational fees, and room and board expenses
for the Participant or the Participant’s spouse, children, or other dependents (as defined in Code
Section 152) for the next twelve (12) months;

          (iv) Payment of amounts necessary to prevent the eviction of the Participant from his
principal residence or foreclosure on the mortgage of the Participant’s principal residence; or

          (v) Any other purposes for which the Internal Revenue Service specifically determines, under
the authority given to it under Treasury Regulation §1.401(k)-1(d)(2)(iv)(C), that such
circumstances constitute an immediate and heavy financial need.

     If an immediate and heavy financial need is deemed to exist, a distribution from the Plan will
be deemed necessary to meet such need if, and only if, the following conditions are met:

               (A) the distribution is not in excess of the amount of the immediate and heavy financial need
of the Participant, including amounts necessary to pay any federal, state, or local income taxes or
penalties reasonably anticipated to result from the distribution;

               (B) the Participant has obtained all distributions, other than hardship distributions, and has
applied for all nontaxable (at the time of the loan)
loans currently available under all plans maintained by the Company or an Affiliated Company;

               (C) the Participant will be prohibited from making elective contributions (as defined in
Treas. Reg. §1.401(k)-1(g)(3)) or employer contributions (as defined in Treas. Reg.
§1.401(m)-1(f)(6)) to any qualified or non-qualified deferred compensation plans maintained by the
Company or an Affiliated Company (as determined in accordance with Treas. Reg.
§1.401(k)-1(d)(2)(iv)(B)(4)) for twelve (12) months (six months effective January 1, 2002),
commencing the month after the hardship withdrawal; and

40

 

               (D) for the calendar year following the calendar year of the hardship withdrawal, the
Participant’s Before-Tax Contributions under the Plan and salary deferrals under all other
qualified plans of the Company or an Affiliated Company shall be limited to the applicable limit
under Code Section 402(g), as reduced by the amount of salary deferrals during the calendar year of
the hardship withdrawal.

     In the case of a distribution which is made on account of an immediate and heavy financial
need due to the payment of post-secondary education tuition for the Participant or the
Participant’s spouse, children, or other dependents (“educational hardship”), any such educational
hardship withdrawals within a Plan Year shall be aggregated and treated as having been received as
of the date of the initial educational hardship withdrawal during such Plan Year for purposes of
applying the restriction on subsequent contributions provided for in Paragraph 3.08(d)(3).

     No hardship withdrawal of earnings on Before-Tax or Catch-up Contributions shall be permitted
to the extent that such earnings are attributable to periods after December 31, 1988.

     3.09 Loans to Participants. Upon application to the Trustee by a Participant or
Beneficiary who is a Party in Interest, the Plan Administrator may authorize the
Trustee to make a loan or loans to such Participant or Beneficiary. Any such loans shall be
subject to at least the following requirements:

     (a) Loans shall be made available on a uniform and nondiscriminatory basis.

     (b) Loans must bear a reasonable interest rate which will be determined by the Plan
Administrator and which will be fixed for the term of the loan. All loans will be secured by up to
fifty percent (50%) of the borrower’s vested Plan accounts (determined as of the time of the loan).

     (c) The minimum loan amount is $1,000.

41

 

     (d) No loan can be made to the extent that such loan, when added to the outstanding balance of
all other loans to the borrower under this Plan and any other plan of the Company or an Affiliated
Company, would exceed the lesser of: (i) fifty thousand dollars ($50,000), reduced by the excess
of (A) the highest outstanding balance of loans to the borrower from the Plan and such other plans
during the one-year period ending on the day before the date the loan is made over (B) the
outstanding loan balance on the date the loan is made, or (ii) one-half of the vested value of the
borrower’s accounts under this Plan and such other plan(s). In addition, no loan under this Plan,
when added to any existing loans hereunder, shall exceed the value of the amounts credited to the
borrower’s After-Tax Contributions, Before-Tax Contributions, and Matured Company Matching
Contributions accounts, plus the borrower’s vested Company Core Contribution account.

     (e) Any loan shall, by its terms, require repayment within five (5) years unless such loan is
used to acquire a dwelling unit which, within a reasonable time (determined at the time the loan is
made), will be used as the principal residence, within the meaning of Code Section 121, of the
borrower, in which case the loan shall be repaid within such period as may be established by the
Vice President – Human Resources. Notwithstanding the above, all loans shall be immediately due
and payable
upon the Participant’s Termination from Employment with the Company and all Affiliated
Companies. The maximum number of loans which a borrower may have outstanding at one time is one
residential and one non-residential loan.

     (f) Anyone who applies for a loan must pay a loan origination fee to the Trustee which shall
be deducted directly from the borrower’s account.

     (g) Repayment of Participant loans shall be by payroll deduction or other method approved by
the Plan Administrator on a level amortized basis with repayments made at least quarterly, except
that a borrower may prepay in full the outstanding balance of his loan at any time in accordance
with procedures established by the Plan Administrator. Loan repayments may be suspended for one
year during a Participant’s authorized unpaid leave of absence, or during such other period
permitted

42

 

by applicable law. Loan repayments may be suspended as permitted under Code Section
414(u)(4) for any period in which the Participant is on a qualified military leave.

     (h) Loans must be evidenced by a written promissory note. In the event that a borrower fails
to make a required payment when due, the loan shall be in default if the borrower fails to become
current in his payments within ninety (90) days of such missed payment. Upon default, the
outstanding principal balance of the loan and all accrued interest thereon will be immediately due
and payable, and will be satisfied from the borrower’s Plan accounts (at such time(s) as permitted
by applicable law) upon the occurrence of a Distribution Event or upon the Participant’s attainment
of age fifty-nine and one-half (591/2).

     (i) Each loan shall be a separate investment of the borrower’s Plan accounts. The amount of
the loan will first reduce the borrower’s Before-Tax and Catch-up Contributions accounts, then the
borrower’s After-Tax Contributions account, then the borrower’s Company Matching Contributions
account to the extent of Matured Company Matching Contributions, and then the borrower’s vested
Company Core Contributions account. Amounts within the Plan accounts allocated to each Participant
Investment Fund also shall be reduced ratably.

     (j) Loan principal repayments will be credited first to the borrower’s Company Core
Contributions account, if any. After principal repayments which are equal to the amount by which
the borrower’s Company Core Contributions account, if any, was reduced to make a loan are credited
to the Participant’s Company Core Contributions account, loan principal repayments will be credited
to the borrower’s Company Matching Contributions account, next to the Borrower’s After-Tax
Contributions account and next to the borrower’s Before-Tax Contributions account. Loan interest
payments will be credited ratably to the borrower’s Company Matching Contributions account, Company
Core Contributions account, Before-Tax Contribution account and After-Tax Contribution account.
All principal and interest payments shall be allocated among the Participant Investment Funds in
accordance with the borrower’s most recent investment direction election for new contributions.

43

 

     Notwithstanding the foregoing, loans made pursuant to this Section 3.09 may be subject to such
additional uniform and nondiscriminatory rules as may from time to time be adopted by the Board or
the Plan Administrator, which rules shall comply with the Code, ERISA, and other applicable law and
may impose limitations on, or requirements for obtaining Plan loans which are in addition to or
more restrictive than those limitations and requirements set forth above in this Section 3.09.

     3.10 Distributions Following Distribution Events.

     (a) Except as otherwise provided for in Paragraph 3.10(d) herein, after a Distribution Event
other than death occurs as to the Participant, the following will apply:

          (i) All amounts credited to such Participant’s accounts shall be retained in the Plan until
the earliest of the Participant’s death, the Participant’s consent to and application for the
Trustee to distribute the aggregate amounts in all of Participant’s Plan Accounts to him in a lump
sum or, on or after October 1, 2002, the Participant’s consent to and application for the Trustee
to commence distribution of installment payments of his account to him in accordance with
Section 5.01.
Notwithstanding the preceding sentence, distributions of a Participant’s Plan accounts shall
commence no later than April 1 of the calendar year following his attainment of age 701/2.
Participants who attain age 701/2 on or after January 1, 2003, and continue employment with the
Employer beyond age 701/2 may defer commencement of distribution under this Section until no later
than April 1st of the calendar year following the calendar year in which the Participant
retires.

          (ii) In the event that the Participant consents to a lump sum distribution of the aggregate
amounts in all of his Plan accounts, by filing an election with the Trustee effective on or after
the date of (A) the Participant’s Termination of Employment with the Company or an Affiliated
Company, or (B) a Distribution Event as to the Participant, the Participant shall receive a
distribution of all amounts credited to such Participant’s Plan accounts, in the manner described
in Section 5.01. In addition, a second distribution of any amount subsequently credited to a
Participant’s Company

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Matching Contributions account in accordance with Section 3.03 or to a
Participant’s Company Core Contributions account in accordance with Section 3.04 shall be made as
soon as practicable after actual receipt by the Trustee of the Company Stock or cash contribution.

     (b) In the event of the Participant’s death, the Participant’s Beneficiary shall receive a
distribution of all amounts credited to the Participant’s Plan accounts according to the
distribution elections provided in Section 5.01. Subject to Paragraph 3.10(d), such distribution
shall be made as soon as practicable after the Participant’s death.

     (c) Notwithstanding the previous paragraphs of this Section 3.10, if the aggregate amount
credited to the Participant’s Plan accounts does not exceed (1) the maximum amount permitted to be
distributed without the consent of the Participant under Code Section 411(a)(11) or any successor
thereto as of the end of the month during which a Distribution Event occurs as to such Participant,
and (2) in the case of distributions prior to March 2, 1999, if the aggregate amounts credited to
the
Participant’s Plan accounts did not exceed the amount described in the clause (1) at the time
of any previous distribution to the Participant (for which purpose a payment made pursuant to a
qualified domestic relations order described in Code Section 414(p) shall not be considered a
distribution), all such amounts will, subject to Paragraph (d) below, be distributed to the
Participant (or, in the case of the Participant’s death, the Participant’s Beneficiary or
Beneficiaries) in the manner provided in Section 5.01.

     (d) At least thirty (30) days, but no more than ninety (90) days, before a distribution is
made to a Participant, a Participant shall be given notice of: (1) his ability to delay
distribution in accordance with Paragraph 3.10(a)(i) above (if applicable), (2) his ability to
elect a direct rollover in accordance with Section 5.03, and (3) for former participants of the IGS
Savings Plan, the ability to elect the optional forms of payment as provided in Exhibit II. At
least thirty (30) days, but no more than ninety (90) days, before benefits begin to a Beneficiary
who is a spouse (including an alternate payee under a Qualified Domestic Relations Order), such
Beneficiary must be given notice of

45

 

his ability to elect a direct rollover under Section 5.03. A
distribution may be made less than thirty (30) days after receipt of the notice required by this
Paragraph 3.10(d); provided that: (i) the notice clearly informs the Participant or Beneficiary of
the right to consider the decision regarding distribution or direct rollover for a period of thirty
(30) days after the notice is provided, and (ii) after receiving the notice, the Participant or
Beneficiary waives the thirty (30) day period by electing a distribution.

     3.11 Distributions Pursuant to a Qualified Domestic Relations Order. Notwithstanding
any other provisions of the Plan, following the Plan Administrator’s determination that a domestic
relations order received by the Plan Administrator and applicable to a Participant and any of such
Participant’s Plan accounts is a Qualified Domestic Relations Order, such distribution or
distributions shall be made from such Participant’s Plan account or accounts, in accordance with
such Qualified Domestic Relations Order and the Plan’s Qualified Domestic Relations Order
procedures, and in the manner described in
Section 5.01, to the alternate payee or payees specified in such Qualified Domestic Relations
Order. If so specified in a Qualified Domestic Relations Order, a distribution to an alternate
payee may be made prior to the date on which the Participant attains his “earliest retirement age”
(as defined in Code Section 414(p)(4) and ERISA Section 206(d)(3)(E)).

     3.12 Rollovers into the Plan. Each Employee who is eligible pursuant to Paragraph
3.01(a) to participate in the Plan, and any other Employee who is expected to become eligible to
participate in the Plan who has received an eligible rollover distribution described in Code
Section 402(c)(4), may make a cash contribution to the Plan of all or a portion of any such
rollover contribution, provided that: (a) the acceptance of such contribution will not adversely
affect the continued qualified status of the Plan, and (b) the Plan Administrator in due course
receives all the documentation and other relevant information pertaining to such rollover
contribution deemed necessary by the Plan Administrator for the proper administration of the Plan.
Notwithstanding the above, the Plan does not accept After-Tax Contributions that are a part of an
eligible rollover distribution. Any such contribution shall be treated as earnings on an After-Tax
Contribution for all purposes under the Plan, except that such contribution shall not be taken into
account for purposes of determining: (i) the limitations set forth in Sections 3.02, 3.07, and
3.14; (ii) whether the Plan is “top-heavy” (as

46

 

such term is defined in Code Section 416(g), unless
the contribution originates from the plan of the Company or an Affiliated Company); or (iii) the
Company Matching Contributions under Section 3.03. For the period during which an Employee is not
otherwise a Participant, such Employee shall be treated as a Participant solely for the purpose of
and with respect to such rollover contribution.

     3.13 Plan-to-Plan Transfers; Plan Mergers. At the discretion of the Investment
Committee, the Trustee may accept directly from a trustee or custodian any or all of the assets
held under another plan which is qualified under Code Section 401(a) for the benefit of
Participants or any other Employees who are expected to become Participants, either as a part of a
transfer of assets from the trust for such other plan or a merger of such other plan with the Plan,
provided that: (a) the acceptance of such transferred assets will not adversely affect the
continued qualified status of the Plan, (b) the Plan Administrator in due
course receives all the documentation and other relevant information pertaining to such
transferred assets deemed necessary by the Plan Administrator for the proper administration of the
Plan, and (c) any other conditions or requirements which may be established by the Investment
Committee or the Plan Administrator are satisfied. Any assets which were held by the transferor
plan under a qualified cash or deferred arrangement, as such term is defined in Code Section
401(k), shall be treated as Before-Tax Contributions. Any assets which were held by the transferor
plan pursuant to an election to make employee Catch-up Contributions shall be treated as Catch-up
Contributions. Any assets which were held by the transferor plan pursuant to an election to make
employee after-tax contributions shall be treated as After-Tax Contributions. Any other
transferred assets shall be treated as earnings on After-Tax Contributions for all purposes under
the Plan, except that such transferred assets shall not be taken into account for purposes of
determining: (i) the limitations set forth in Section 3.02, 3.07, and 3.14; (ii) whether the Plan
is “top-heavy” (as such term is defined in Code Section 416(g), unless the transferor plan is a
plan of the Company or an Affiliated Company); or (iii) the Company Matching Contributions under
Section 3.03.

     Notwithstanding any contrary provisions of Section 3.08, the withdrawal by a Participant of
any or all of such transferred assets or any other assets derived from the investment thereof shall
not result in a suspension of such Participant’s right to

47

 

make contributions to the Plan or to have
contributions made on his behalf under the Plan. Alternate forms of benefits, and other benefits,
rights, and features under the transferor or merged plan (including those identified in Section
5.04) shall be continued to the extent required to comply with ERISA and the Code. For the period
during which an Employee is not otherwise a Participant, such Employee shall be treated as a
Participant solely for the purpose of and with respect to the portion of such transferred assets
allocated to his Plan account.

     3.14 Limitation on Annual Additions to Participants’ Accounts.

     (a) Definitions. For purposes of this Section 3.14, the following definitions shall
apply:

          (i) Annual Additions mean, in the case of this Plan and any other Defined Contribution Plan
maintained by the Company or an Affiliated Company, the aggregate of: (A) the amount of Company
and Affiliated Company contributions including, but not limited to, Before-Tax Contributions,
excluding Catch-up Contributions, and Company Matching Contributions, Company Core Contributions,
Qualified Non-Elective Contributions (as defined in Paragraph 3.07(a)(xiii)), and any forfeitures
allocated to a Participant’s account during the Plan Year but excluding any amounts returned to a
Participant under Treasury Regulation §1.402(g)-1(e)(2) or (3), (B) the amount of a Participant’s
After-Tax Contributions and any other after-tax contributions to a plan of the Company or an
Affiliated Company, (C) amounts described in Code Sections 415(l)(1) and 419A(d)(2).

          (ii) Participant’s Compensation means compensation which is paid to the Participant by the
Company or an Affiliated Company for the Plan Year and which is required to be reported as wages
for Federal income tax purposes on the Participant’s Form W-2. For Plan Years beginning after
December 31, 1997, Participant’s Compensation shall include any Before-Tax Contributions, and any
amount which is contributed or deferred by the Employer at the election of the Participant and
which is not includible in the gross income of the Participant under Code Sections 125 or 457.

48

 

     (b) Basic Limitation. Notwithstanding anything to the contrary contained in this
Plan, the Annual Additions allocated to a Participant under the Plan and any other Defined
Contribution Plan maintained by the Company or an Affiliated Company in respect of any Plan Year
(which shall be the limitation year) shall not exceed in the aggregate the lesser of: (i)
twenty-five percent (25%) of such Participant’s Compensation for such Plan Year, or (ii) the
greater of thirty thousand dollars ($30,000 (as adjusted by Code Section 415(d)) or one-quarter
(1/4) of the defined benefit dollar limitation set forth in Code Section 415(b)(1)(A) as in effect
for the Plan Year for Plan Years beginning prior to October 1, 2002. For Plan Years,
thereafter, such Annual Additions shall not exceed the lesser of $40,000 (as adjusted by Code
Section 415(d)) or 100% of the Participants Compensation for such Plan Year.

     (c) Additional Rules. If, notwithstanding the foregoing, the Participant’s Annual Addition to
this Plan for any Plan Year would exceed the limitations of this Section 3.14 because of the
allocation of forfeitures, a reasonable error in estimating a Participant’s Compensation, a
reasonable error in estimating the amount of Before-Tax Contributions, or for other reasons as
permitted by the Commissioner of Internal Revenue, the excess of such Annual Addition over the
amount which is permissible under this Section 3.14 shall be disposed of as follows: After-Tax
Contributions and, if necessary, Before-Tax Contributions (in that order), and gains or other
earnings allocable thereto, to the extent they would reduce the excess amount, will be returned to
the Participant, while any Company Matching Contributions attributable thereto and any earnings on
such Company Matching Contributions shall be forfeited, placed in a suspense account, and applied
towards subsequent Company Matching Contributions.

     3.15 Application of Top-Heavy Provisions. The Plan will be a top-heavy plan if: (a)
the Plan is not required to be aggregated with any other plan under Paragraph 3.15(b)(i), and if
the sum of the accounts of Participants who are “Key Employees” exceeds 60 percent of the sum of
the accounts of all employees (subject to adjustment below), or (b) if the Plan must be aggregated
with one or more other plans under Paragraph 3.15(b)(ii), and if the Plan is part of a top-heavy
group; provided, however, that the Plan will not be a top-

49

 

heavy plan if it is a member of a group
of plans described in Paragraph (b)(iii) below which is not a top-heavy group. In the event that
the Plan becomes top-heavy, the minimum benefit requirement of Paragraph 3.15(e) shall become
applicable.

     The date for determining the applicability of this Section 3.15 for any Plan Year is the last
day of the preceding Plan Year (“determination date”).

     The date for determining the value of the employees’ accounts (“valuation date”) shall be the
determination date.

     (a) Key Employees. For purposes of this Section 3.15, the term “Key Employee” means
any employee or former employee (or a beneficiary of either in the event that such employee or
former employee is deceased) who at any time during a Plan Year or any of the four preceding Plan
Years is:

          (i) An officer of the Company or an Affiliated Company having annual compensation greater than
50 percent of the amount in effect under Code Section 415(b)(1)(A) for Plan Years beginning before
October 1, 2002, or $130,000 for Plan years beginning October 1, 2002 or later; provided, however,
that no more than the lesser of (A) fifty (50) employees, or (B) the greater of three (3) employees
or 10 percent of all employees are to be treated as officers;

          (ii) For Plan Years beginning before October 1, 2002, one of the ten (10) employees having
annual compensation from the Company and/or an Affiliated Company greater than the limitations in
effect under Code Section 415(c)(1)(A) and owning (or considered as owning within the meaning of
Code Section 318, as modified by Code Section 416(i)(1)(B)) both more than a one-half percent
(0.5%) interest and the largest interests in the Company or an Affiliated Company;

          (iii) A 5 percent owner of the Company or an Affiliated Company; or

50

 

          (iv) A 1 percent owner of the Company or an Affiliated Company having an annual compensation
of more than one hundred fifty thousand dollars ($150,000).

     For purposes of this Paragraph 3.15(a), an employee’s compensation shall mean compensation as
determined under Code Section 414(q)(4).

     An employee shall be considered to own more than a 5 percent interest if the employee owns
more than 5 percent of the Company’s or an Affiliated Company’s outstanding stock or stock
possessing 5 percent of the total combined voting power of
all of the stock of the Company or an Affiliated Company. An employee shall also be treated
as owning stock owned by certain members of the employee’s family as provided in Code Section 318,
as modified by Code Section 416(i)(1)(B). The same rules shall apply to determine whether an
employee is a 1 percent owner. If an employee ceases to be a Key Employee, such employee’s account
shall be disregarded as an account of a Participant who is a Key Employee under the top-heavy plan
computation for any Plan Year following the last Plan Year for which such employee was treated as a
Key Employee.

     (b) Top-Heavy Group. For purposes of determining whether the Plan is part of a
top-heavy group as referred to above in this Section 3.15, the following rules shall apply:

          (i) All plans maintained by the Company or an Affiliated Company which cover a Key Employee
and any other plan which enables a plan covering a Key Employee to meet the requirements of Code
Sections 401(a)(4) or 410 shall be aggregated to determine whether the plans, as a group,
constitute a top-heavy group.

          (ii) An aggregation group shall be a top-heavy group if, as of the determination date, the sum
of (A) the accounts of Key Employees under all defined contribution plans included in the group and
(B) the present value of the accumulated accrued benefits for Key Employees under all defined
benefit plans in the group,

51

 

exceeds 60 percent of the sum of such accounts and present values for
all employees under all such plans in the group. If the aggregation group is not a top-heavy
group, no plan in the aggregation group shall be a top-heavy plan.

          (iii) In any Plan Year, in testing for top-heaviness under this Paragraph 3.15(b), the
Employer may in its discretion expand the aggregation group to take into account any other plan
maintained by it or an Affiliated Company, so long as such expanded aggregation group continues to
meet the requirements of Paragraphs 401(a)(4) and 410 of the Code. If the expanded aggregation
group is not a
top-heavy group (as determined in accordance with the preceding paragraph), no plan in such
expanded aggregation group shall be a top-heavy plan.

     (c) Additional Rules. In determining the present value of the accumulated accrued
benefits under a Defined Benefit Plan and the sum of the account balances under a Defined
Contribution Plan, both Company and Affiliated Company contributions and employee contributions
shall be taken into account. The present value of the accrued benefit in a Defined Benefit Plan or
the account balance in a Defined Contribution Plan shall include any amount distributed to an
employee within the five-year period ending on the determination date for Plan Years beginning
before October 1, 2002, or the one year period ending on such date for Plan Years thereafter,
except for in-service withdrawals. The present value of the accrued benefit in a Defined Benefit
Plan shall be calculated for any employee other than a Key Employee under (a) the method, if any,
that uniformly applies for accrual purposes under all plans maintained by the Company or an
Affiliated Company, or (b) if there is no such method, an accrual rule rate which is not more rapid
than the slowest accrual rate allowed under the fractional accrual rate of Code Section
411(b)(1)(C). If there is more than one Defined Benefit Plan in an aggregation group, the
actuarial assumptions used for such Defined Benefit Plans must be the same. If an employee has not
performed services for the Company or an Affiliated Company during the five (5)-year period ending
on the determination date for Plan Years beginning before October 1, 2002, or the one year period
ending on such date thereafter, any accrued benefit or account balance for such individual shall
not be taken into account.

52

 

     (d) Vesting Requirements. If this Plan is determined to be top-heavy in any Plan Year
under the provisions of this Section 3.15, account balances will be or become fully vested in
accordance with the vesting schedules under Sections 3.02, 3.03, and 3.04, or, if earlier, after a
Participant completes at least three (3) Years of Vesting Service.

     (e) Minimum Benefit. If this Plan is determined to be top-heavy in any Plan Year
under the provisions of this Section 3.15, then the Employer’s contribution for such Plan Year to
be allocated to each Participant who is not a Key Employee and is not covered by a collective
bargaining agreement in such Plan Year shall not be less than three (3) percent of such
Participant’s compensation (as defined in Treasury Regulations §1.415-2(d)) or such lesser
percentage (taking into account Before-Tax Contributions, excluding Catch-up Contributions, and
Company Matching Contributions and Company Core Contributions) as may be made with respect to the
Key Employee who had the highest such percentage in such Plan Year.

ARTICLE IV

TRUST FUND AND PARTICIPANT INVESTMENT FUNDS

     4.01 Trust Agreement. The Company has entered into a Trust Agreement for the Plan
establishing the Trust Fund and the Funds more particularly described in Section 4.02. The
Trustee under such Trust Agreement shall hold, invest, distribute, and administer the Trust
Fund in accordance with the terms of the Plan and the Trust Agreement and shall hold the
contributions to each Participant Investment Fund, including income therefrom, as a unit. Any
portion of a Participant Investment Fund may, pending its permanent investment in an
Investment Vehicle or distribution, be invested in interest-bearing investments of a
short-term nature, even though the same may not be legal investments for trust funds under the
laws applicable thereto. Any portion of a Participant Investment Fund may be maintained in
cash. The Trustee shall be responsible for making the final decision as to managing,
acquiring, or disposing of that portion of any of the Participant Investment Funds described
below , if any, not subject to the
management of investment manager or managers

53

 

or to directions of the Investment Committee given pursuant to Paragraphs 6.05(h) or
6.05(i) respectively.

     (a) Participant Investment Funds. All Participant Contributions transferred to the
Trustee pursuant to Sections 3.02, 3.12, or 3.13 and Company Core Contributions transferred to the
Trustee pursuant to Section 3.04 shall be held and invested by the Trustee in the Participant
Investment Funds in accordance with the directions of Participants given as hereinafter provided.
The Company, by resolution of the Board or the Investment Committee, shall have the right, in its
discretion, to amend the Plan to establish additional Participant Investment Funds in which
Participant Contributions may be invested in accordance with the directions of Participants or to
discontinue existing Participant Investment Funds.

     (b) Investment of Company Matching Contributions. All Company Matching Contributions
shall be invested in the Company Stock Funds, except as otherwise provided in Section 4.04.

     4.02 Investment of Contributions in the Participant Investment Funds. Subject to the
provisions of Section 4.03, each Participant in the Plan, in accordance with procedures established
by the Plan Administrator, will direct that the Trustee hold and invest in one or more Participant
Investment Funds hereinafter described in this Section 4.02 all amounts credited to such
Participant’s Plan accounts in respect of that Participant’s Matched Contributions and Unmatched
Contributions thereafter deducted from his Annual Salary and in respect of any Company Core
Contributions under Section 3.04, rollover contributions under Section 3.12, or plan-to-plan asset
transfers or mergers under Section 3.13, credited to his Plan accounts. A Participant shall
allocate his Participant Contributions and Company Core Contributions among the available
Participant Investment Funds in multiples of one percent (1%); provided, however, that the total of
such allocations must equal one hundred percent (100%). No Participant shall have the right to
give separate investment directions for amounts in respect of his Matched Contributions and
Unmatched Contributions or in respect of his Company Core Contributions, Before-Tax Contributions,
Catch-up Contributions and After-Tax
Contributions. The Plan is intended to be a Participant-directed “Section 404(c) Plan” under

54

 

ERISA Section 404(c) and the regulations thereunder, and the provisions of the Plan are to be
interpreted so as to effectuate such intent.

     Each of the Participant Investment Funds is currently invested in the particular Investment
Vehicle specified below although the Investment Committee may from time to time replace, add to, or
discontinue such Investment Vehicles without amending the Plan, upon notice to Participants as
provided in Section 4.03.

     (a) Fixed Income Securities Fund. Participant Contributions to the Fixed Income
Securities Fund are currently invested by the Trustee in pooled or collective investment funds
managed by State Street Bank and Trust Company (“State Street”), a banking corporation organized
and existing under the laws of the Commonwealth of Massachusetts, under the terms of its Stable
Fixed Income Fund for Employee Benefit Trusts (formerly the Selection Fund for Employee Trusts).

     (b) Money Market Fund. Participant Contributions to the Money Market Fund are
currently invested by the Trustee in shares of the State Street Yield-Enhanced Short-Term (YES)
Investment Fund, managed by State Street Global Advisors, a division of State Street.

     (c) Short-Term Corporate Bond Fund. Participant Contributions to the Short-Term
Corporate Bond Fund are currently invested by the Trustee in shares of the Short-Term Corporate
Bond Portfolio of Vanguard Fixed Income Securities Fund prior to April 1, 2002, and Vanguard
Short-Term Corporate Fund Admiral Shares thereafter, an open-end diversified investment company
which is a member of the Vanguard Group of Investment Companies (the “Vanguard Group”).

     (d) Index Stock Fund. Participant Contributions to the Index Stock Fund are currently
invested by the Trustee in shares of the State Street S&P 500 Flagship Fund, a commingled fund
managed by State Street Global Advisors, a division of State Street.

     (e) Growth and Income Stock Fund. Participant Contributions to the Growth and Income
Stock Fund are invested by the Trustee in shares of Vanguard

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Windsor Fund and also, beginning April
6, 1999, in Vanguard Windsor II Fund prior to April 1, 2002, and in Vanguard Windsor I Fund Admiral
Shares and Vanguard Windsor II Fund Admiral Shares on and after April 1, 2002, in all cases
open-end diversified investment companies which are members of the Vanguard Group.

     (f) Growth Stock Fund. Participant Contributions to the Growth Stock Fund are
currently invested by the Trustee in shares of the Fidelity Advisor Growth Opportunities Fund:
Class A, a fund of Fidelity Advisor Series II which is registered as an open-ended management
investment company organized as a Massachusetts business trust. Effective September 1, 2000, this
Fund was replaced by the SEI Institutional Investments Trust Large CAP Growth Fund, an open-end
management investment company organized as a Massachusetts business trust .

     (g) International Stock Fund. Participant Contributions to the International Stock
Fund are currently invested by the Trustee in shares of the Templeton Foreign Fund-Class I, a
mutual fund of Templeton Funds, Inc., an open-end diversified investment company incorporated under
the laws of Maryland.

     (h) Balanced Fund. Participant Contributions to the Balanced Fund are currently
invested by the Trustee in shares of the Dodge & Cox Balanced Fund an open-end diversified
investment company managed by Dodge & Cox of San Francisco, California.

     (i) Company Stock Fund. Participant Contributions to the Company Stock Fund are
primarily invested by the Trustee in Company Stock, although a cash position is maintained to
provide a liquidity level necessary for daily transactions. Participant Contributions and Company
Matching Contributions shall both be invested in a single fund managed by State Street as liquidity
and investment manager; provided, however, that separate subaccounts shall be maintained for
amounts attributable to Participant Contributions and Company Matching Contributions.
Effective October 1, 2002, this Fund is renamed the Company Stock Fund – ESOP. All
Participant Contributions to the Company Stock Fund and Company Matching Contributions made on or
after October 1, 2002, shall be held in the Company Stock Fund – Current Year

56

 

until the end of the
Plan Year in which such Contributions are made. The Company Stock Fund – ESOP and Company Stock
Fund – Current Year shall be referred to collectively throughout this Plan as the “Company Stock
Funds” unless otherwise specified. Contributions to the Company Stock Funds shall be invested by
the Trustee primarily in Company Stock, although a cash position is maintained to provide a
liquidity level necessary for daily transactions. All Participant Contributions and Company
Matching Contributions shall both be invested in the Company Stock Funds by State Street as
liquidity and investment manager; provided, however, that separate subaccounts shall be maintained
for amounts attributable to Participant Contributions and Company Matching Contributions. All
Participant Contributions and Company Matching Contributions held in the Company Stock Fund –
Current Year as of the close of the New York Stock Exchange on the last business day  of
each Plan Year will be transferred to the Company Stock Fund – ESOP prior to the start of business
on the first business day of the following Plan Year.

     (j) Small Cap Stock Fund. Participant Contributions to the Small Cap Stock Fund,
established effective April 6, 1999, are currently invested by the Trustee in shares of the SEI
Institutional Investments Trust Small Cap Fund, an open-end management investment company organized
as a Massachusetts business trust.

     4.03 Redirection of Investments of Participant Contributions. Each Participant may
from time to time change his last prior investment direction pursuant to Section 4.02 or this
Section 4.03 to any other investment direction then permitted pursuant to Section 4.02, in
accordance with procedures established by the Plan Administrator. Each such change of investment
direction pursuant to this Section 4.03 shall apply, at the Participant’s election, to (a) all
amounts then credited to the Participant’s accounts (except as provided in Section 4.04 below)
and/or (b) all contributions thereafter made by or on the Participant’s behalf (except as provided
in Section 4.04 below); provided, however, that the
Plan Administrator may from time to time impose restrictions on the right to change prior
investment directions as to Participant Contributions to one or more other particular Participant
Investment Funds, if the Plan Administrator determines that such restrictions on redirections are
necessary to comply with the terms of the Investment Vehicles held in any Participant

57

 

Investment
Fund in which any amounts then credited to Participants’ accounts are held. Notwithstanding the
above, Participants may not redirect Participant Contributions or Company Core Contributions from
the Company Stock Fund – Current Year to the Company Stock Fund – ESOP and may not redirect
Participant Contributions or Company Core Contributions from the Company Stock Fund ESOP to the
Company Stock Fund – Current Year.

     Any change in investment direction by a Participant for all or any portion of the Participant
Contributions and Company Core Contributions, including related investment earnings or losses, then
credited to the Participant’s accounts will generally be effective as of the same New York Stock
Exchange business day on which notice is received, provided that notice is provided prior to the
close of the New York Stock Exchange on such day and will be effective as of the following day if
such notice is provided after the close of the New York Stock Exchange. Any change in investment
direction for the current month will be effective if completed by the close of the New York Stock
Exchange on the last New York Stock Exchange business day of the month.

     4.04 Investment of Company Matching Contributions. All amounts in each Participant’s
Company Matching Contributions account shall be invested in the Company Stock Funds in accordance
with Section 4.02(i); provided, however, that Participant Contributions, Company Core Contributions
and Company Matching Contributions which are commingled in the Company Stock Funds shall be
accounted for in separate subaccounts and shall remain subject to the separate Plan provisions
which relate to each type of contribution.

     A Participant shall be eligible to redirect the investment of Matured Company Matching
Contributions from the Company Stock Fund-ESOP to another Participant Investment Fund other than
the Company Stock Fund – Current Year.

     4.05 Participants’ Accounts. The Plan Administrator shall cause to be established and
maintained for each Participant an account for all amounts in respect of (a) Before-Tax
Contributions made on his behalf, (b) his After-Tax Contributions, (c) Catch-up Contributions, (d)
Company Core Contributions, and (e) Company Matching Contributions attributable to his Matched
Contributions made during each Plan Year; provided, however, that separate Plan Year accounts as to
all Plan Years ending more than twenty-four (24) months

58

 

prior to the date of any accounting need
not be maintained. For purposes of this Section 4.05, rollover contributions described in 3.12 and
transferred assets described in 3.13 shall be credited to a Participant’s After-Tax Contributions
account (except as otherwise provided in Section 3.13 in the case of certain assets which are
treated as Before-Tax Contributions or Catch-up Contributions). Credits to Participants’ accounts
for amounts invested pursuant to Section 4.02 in each of the Participant Investment Funds shall be
allocated to the Participant’s Before-Tax Contributions, After-Tax Contributions, Catch-up
Contributions, Company Core Contributions and Company Matching Contributions accounts in proportion
to the amounts credited to such accounts during the period for which such allocation is made.

     Credits to Participants’ accounts for amounts held and invested pursuant to Section 4.02 in
the Participant Investment Funds, including the Company Stock Funds shall be expressed in terms of
their dollar value. Shares of Company Stock which are purchased from time to time during any Plan
Year out of cash funds held by the Trustee under the Trust Agreement shall be valued for purposes
of the Plan at the average of the actual cost thereof, including transfer taxes, brokerage
commissions, etc., if any, incident to the purchase thereof. Shares of Company Stock which are
made available through Participant cash distributions, loans, or investment changes shall be valued
for purposes of the Plan at the Fair Market Value thereof at the close of the New York Stock
Exchange on the date that the Participant’s application or direction to the Trustee is received for
such transaction, provided such application or direction is received prior to the close of the New
York Stock Exchange on such date, and at the Fair Market Value thereof at the close of the New York
Stock Exchange on the following day if the application or direction is received after the close of
the New York
Stock Exchange. Each Participant Investment Fund shall be valued daily by the Trustee.

     Beginning with the last prior valuation made, amounts credited to each Participant’s accounts
maintained hereunder shall be adjusted to reflect the effect of income collected and accrued,
realized and unrealized profits and losses, expenses, and all other transactions affecting the
Participant Investment Funds since the prior valuation of the Participant Investment Funds. Such
valuations and such adjustments of the amounts credited to Participants’ accounts shall be made so
as to preserve for

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each Participant that Participant’s proportional beneficial interest in each
Participant Investment Fund, based upon contributions made by or on his behalf and invested in each
such Participant Investment Fund.

     The fact that credits shall be made to a Participant’s account in respect of Company Matching
Contributions shall not vest in such Participant any right, title, or interest in the assets of the
Company Stock Funds, except at the time or times and upon the terms and conditions provided in the
Plan. Except as provided in Section 4.07, a Participant shall have no right of request, direction,
or demand upon the Trustee to exercise in the Participant’s behalf any rights to purchase or sell
securities which may be granted to the Trustee. The Trustee, in its discretion, may exercise or
sell any rights to purchase other securities appertaining to securities held by the Trustee,
whether or not allocated to individual accounts. The accounts of Participants shall be
appropriately credited.

     No person shall have any right to, or interest in, any assets of the Participant Investment
Funds upon termination of employment or otherwise, except as provided from time to time under this
Plan, and then only to the extent of the benefits payable to such person under the Plan. All
payments of benefits as provided for in this Plan shall be made solely out of the assets of the
Participant Investment Funds and no fiduciary shall be liable therefor in any manner. No fiduciary
or other person or entity
guarantees the Participant Investment Funds in any manner against investment loss or
depreciation in asset value.

     4.06 Account Statements; Investment Information. As soon as practicable after
September 30 of each year, and at such other times as the Plan Administrator deems necessary or
desirable for the purpose of administering the Plan, each Participant will be furnished with a
statement showing the status of his or her Plan accounts as of such September 30 and such other
dates as are selected by the Plan Administrator. In addition, sufficient information shall be
available to Participants to permit informed investment decisions as to the Participant Investment
Funds and Investment Vehicles in which Participant Contributions and Company Core Contributions may
be invested.

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     Information relating to Participants’ purchase, holding, and sale of units of interest in
Company Stock and exercise of voting, tender, and similar rights shall be maintained in accordance
with procedures which shall be adopted and amended from time to time in writing by the Plan
Administrator (the “Confidentiality Procedures”) that are designed to safeguard the confidentiality
of such information (except as necessary to comply with federal or applicable state law, such as
securities law reporting rules for insiders). The Confidentiality Procedures shall incorporate at
least the safeguards of confidentiality as to exercising voting, tendering, and similar rights as
are set forth in Section 4.07; and name a fiduciary to be responsible for receiving and acting on
investment directions and/or monitoring compliance with the Confidentiality Procedures and who
shall be empowered to determine when an independent fiduciary should be designated to carry out
such activities as to Company Stock relating to situations which such responsible fiduciary
determines will have a potential for undue influence (such as tender offers, exchange offers, and
contested Board elections) all as contemplated by ERISA Section 404(c).

     4.07 Voting, Tendering, and Similar Rights as to Company Stock. Before each annual or
special meeting of the stockholders of the Company, the Trustee or its agent shall furnish or cause
to be furnished to each Participant for whom an account is
established and maintained under the Plan and to which units of interest in Company Stock are
allocated a copy of the proxy solicitation material for such meeting, which is provided to
stockholders of the Company who are not Plan Participants, together with a request for the
Participant’s confidential directions to the Trustee as to how the full shares of Company Stock
then represented by the units of interest allocated to such Participant’s account should be voted.
Upon timely receipt of such directions, the Trustee shall vote such full shares as directed. Any
such shares held by the Trustee as to which it receives no voting directions and fractional shares
shall be voted by the Trustee in the same proportions as shares to which voting directions have
been received.

     Each Participant shall have the right, to the extent of the number of shares of Company Stock
represented by the units of interest allocated to his account, to confidentially direct the Trustee
in writing as to the manner in which to respond to a

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tender or exchange offer with respect to
shares of Company Stock. The Trustee shall use its best efforts to timely distribute or cause to
be distributed to each Participant the information distributed to stockholders of the Company who
are not Plan Participants in connection with any such tender or exchange offer. Upon timely
receipt of such directions, the Trustee shall respond as directed with respect to such shares of
Company Stock. If the Trustee shall not receive timely direction from a Participant as to the
manner in which to respond to such a tender or exchange offer, the Trustee shall not tender or
exchange any shares of Company Stock with respect to which such Participant has the right of
direction. The Trustee shall respond as to fractional shares in the same proportions as the shares
as to which Participant directions have been received.

     Each Participant is, for purposes of this Section 4.07, hereby designated a “named fiduciary”
within the meaning of ERISA Section 403(a)(l) with respect to voting and responding to tender and
exchange offers with respect to full shares of Company Stock as to which units of interest are
allocated to his account, except to the extent otherwise permitted by ERISA Section 404(c) because
such Participant has exercised independent control over assets in his or her individual account in
the
manner described in Department of Labor Reg. §2550.404(c) promulgated thereunder.
“Participant” as used in this Section 4.07 shall include in the event of the death of a
Participant, his Beneficiary, and in the event a Qualified Domestic Relations Order is applicable
to an account, each alternate payee under such Qualified Domestic Relations Order. Directions
received by the Trustee from individual Participants as provided in this Section 4.07 shall be held
by the Trustee in confidence and shall not be divulged or released to any person, including
directors, officers, or employees of the Company or any Affiliated Company, except as permitted by
the Confidentiality Procedures.

     The Trustee is hereby empowered to set such deadlines for Participant returns of proxy,
tender, exchange, or similar directions as are necessary to assure the proper tally of such returns
and timely action based on such response, consistent with the Confidentiality Procedures and the
directions of any independent fiduciary appointed as contemplated by the Confidentiality
Procedures.

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ARTICLE IV-A

ESTABLISHMENT OF AN EMPLOYEE STOCK OWNERSHIP PLAN

     4.01-A Effective May 15, 2002, the Company Stock Fund described in Section 4.02(i) is
converted to an employee stock ownership plan (“ESOP”) as defined in Section 4975(e) of the Code
and the regulations thereunder. The ESOP is intended to form a portion of the Plan, the balance of
which includes a qualified profit-sharing plan described in Section 401(a) of the Code which is not
an ESOP. The ESOP shall hold Participant Contributions pursuant to Deferral Elections described in
Section 3.02, Company Core Contributions and Company Matching Contributions described in Section
3.03. The ESOP shall be a Participant Investment Fund described in Section 4.02(i) of the Plan as
the Company Stock Fund — ESOP.

     4.02-A The ESOP shall be primarily invested in Company Stock as
described in Section 4.02(i). Company Stock as defined herein is traded publicly on the New
York Stock Exchange. A Participant may direct the Trustee to vote the Company Stock allocated to
his account as described in Section 4.07. A Participant may elect a distribution of his account
balance in the Company Stock Funds to be paid in Company Stock or in cash as described in Section
5.01. A Participant may elect to diversify his account in the Company Stock Funds to the extent
described in Section 4.03 and 4.04. A Participant may begin receiving distributions of his
accounts, including the Company Stock Funds, upon the occurrence of a Distribution Event as
described in Section 2.21. Allocations of Participant Contributions and Company Matching
Contributions to the ESOP are made in proportion to the compensation of each Participant based on
his or her Deferral Elections as described in Section 3.02.

     4.03-A Participants having all or a portion of their Participant accounts invested in Company
Stock in the ESOP may elect to receive a distribution of dividends paid on Company Stock that are
allocated to their Participant accounts or to reinvest such dividends in the ESOP pursuant to
Section 404(k)(2)(A) of the Code, and the regulations thereunder. Dividends paid on the portion of
a Participant’s account

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attributable to Company Core Contributions, including any related
investment earnings and losses, may only be reinvested to the extent Company Core Contributions and
related earnings and losses are vested under Section 3.05(a) of the Plan. A participant who does
not make an affirmative election under this Section 4.03-A shall be deemed to have elected to
reinvest such dividends in the ESOP. The Plan Administrator shall determine the procedure for
making such election available to eligible Participants.

     4.04-A Participants who are employees of Affiliates of the Company that are subject to
taxation as partnerships are permitted to participate in the ESOP and invest their Participant
accounts in Company Stock, but are excluded from receiving dividends paid on Company Stock to the
Company Stock Fund — ESOP.

ARTICLE V

MANNER OF DISTRIBUTION OF PARTICIPANT ACCOUNTS

     5.01 General. Subject to Sections 5.03 and 5.05, distribution to any person entitled
to receive any amounts then held by the Trustee in the Participant Investment Funds described in
Article IV shall be made by the Trustee in a lump sum or at the election of such person, in up to,
but not exceeding, ten substantially equal annual installments, in the following manner:

     (a) Cash Distributions. Amounts credited to a Participant’s accounts which are held
by the Trustee in any Participant Investment Fund other than the Company Stock Funds shall be
distributed in cash.

     (b) Company Stock Distributions. Amounts credited to a Participant’s accounts which
are held by the Trustee in the Company Stock Funds shall be distributed in the form of shares of
Company Stock. Distribution of a Participant’s interest in a fractional share of Company Stock
shall be made in cash. Notwithstanding the foregoing, amounts credited to a Participant’s account
in the Company Stock Funds may be distributed in the form of cash, at the election of the
Participant or the

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Participant’s Beneficiary or alternate payee, as the case may be.
Notwithstanding the above, for persons electing installment distributions commencing on or after
October 1, 2006, distributions of amounts credited to Company Stock Funds must be made in cash.

          The amount to be withdrawn or distributed from a Participant’s account or accounts under
Section 3.08 or 3.10, or pursuant to a Qualified Domestic Relations Order, shall be the amount or
specified portion thereof credited to such Trustee account or accounts as of: (i) the New York
Stock Exchange business day on which the account distribution or withdrawal application form is
received by the Plan Administrator; provided, however, that valuation shall take place as of the
following New York Stock Exchange business day if the applicable form is delivered after the
close of the New York Stock Exchange; or (ii) if no form is received, the first New York Stock
Exchange business day in March of the calendar year following the year in which the Participant
attains age seventy and one-half (701/2) or, if later, the calendar year in which the Participant
retires if the Participant attained age seventy and one-half (701/2) on or after January 1, 2003. In
the case of a Qualified Domestic Relations Order, if so provided in the Qualified Domestic
Relations Order, the amount to be withdrawn or distributed shall be the amount specified in such
Order.

          Payment or delivery of an amount to be withdrawn or distributed shall be made as soon as
practicable after the applicable date determined under the preceding paragraph, but in any event by
the April 1 which follows the year in which the Participant attains age seventy and one-half (701/2),
or if later, the April 1 which follows the year the Participant retires if the Participant attains
age seventy and one-half (701/2) after January 1, 2003. The payment of benefits under the Plan to a
Participant (or to his Beneficiary or Beneficiaries) who has a Termination from Employment as
provided in Section 3.10 with amounts credited to his Plan accounts of the maximum amount permitted
to be distributed without the consent of the Participant under Code Section 411(a)(11) or any
successor thereto or less, or upon the Participant’s death, will begin no later than the sixtieth
(60th) day after the end of the month in which the Participant makes his last contribution.

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          Any distributions made pursuant to this Article V shall be subject to the requirements of Code
Section 401(a)(9) and the regulations thereunder, including the minimum distribution incidental
benefit requirement of Q&A-1(d) of section 1.401(a)(9)-5 of the final regulations effective January
1, 2003.

     5.02 Designation of Beneficiaries; Spousal Consents. Unless otherwise designated as
provided in the next paragraph of this Section 5.02, each Participant’s Beneficiary shall be the
Participant’s spouse. If the Participant dies with no surviving spouse, or so designates a
Beneficiary other than his spouse in accordance with the provisions of the next paragraph, the
Beneficiary or Beneficiaries to receive the Plan benefits
hereunder shall be as designated by the Participant in writing on a form supplied by the Plan
Administrator and filed with the Plan Administrator during the Participant’s lifetime. Any such
designation may be revoked or changed by the Participant at any time and from time to time, without
the consent of any prior Beneficiary (other than the Participant’s spouse, whose consent shall be
required as provided in the next paragraph) in the same manner as the original designation. If
either no such designation is made or, if made, none of the designated Beneficiaries, whether
primary or contingent, is living at the time of payment, Plan benefits shall be paid to the
Participant’s surviving spouse, if any, and otherwise to the Participant’s estate.

     The designation of a Beneficiary other than the Participant’s spouse shall be ineffective
unless either: (i) the Participant’s spouse consents in writing to such designation, the spouse’s
consent specifically identifies the nonspouse Beneficiary, the Participant’s spouse acknowledges
the effect of such designation, and such consent is witnessed by a notary public; or (ii) it is
established to the satisfaction of the Plan Administrator or a representative of the Plan
Administrator that no such consent may be obtained because there is no spouse of the Participant,
the spouse cannot be located, or because of such other circumstances as may be prescribed in
regulations issued by the Secretary of the United States Treasury. Any consent by a spouse
required by any provision of the Plan shall be irrevocable by the spouse and any such consent by
the spouse (or establishment that the consent of the spouse may not be obtained) shall only be
effective with respect to such spouse. No Beneficiary designation shall be effective prior to the
time it is received by the Plan Administrator.

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     Notwithstanding the foregoing, for former Participants in the IGS Savings Plan the terms of
Exhibit II shall apply.

     5.03 Direct Rollovers

     (a) Any Participant or any spouse of a Participant (including a former spouse who is an
alternate payee under any Qualified Domestic Relations Order) (referred to herein as a
“distributee”) who is entitled to receive an “eligible rollover
distribution” (as defined below) from the Plan may make a special election to avoid the
imposition of automatic withholding of Federal income taxes from the distribution. The special
election is to have all or part of the distribution paid by the Trustee directly to an eligible
retirement plan (as defined below) in lieu of receiving the distribution from the Plan. In order
for such direct rollover to be made, the special election must be made in accordance with the
procedures established by the Plan Administrator, the eligible retirement plan must be clearly
specified, and the specified plan must be willing to accept the rollover. Any eligible rollover
distribution described in Section 5.30(d)(i) that includes After-Tax Contributions which a
Participant elects to rollover to a qualified defined contribution plan described in Section 401(a)
must be directly rolled over to such plan pursuant to the special election in this Section 5.03(a)
to have all or part of the distribution paid by the Trustee directly to a qualified defined
contribution plan in lieu of receiving the distribution from the Plan.

     (b) Notwithstanding the foregoing, a direct rollover shall not be permitted if the
Participant’s eligible rollover distributions during the calendar year are reasonably expected to
total less than $200, and a partial direct rollover may not be made in an amount which is less than
$500. Each eligible rollover distribution may be directly rolled over to only one eligible
retirement plan.

     (c) The limits set forth in this Section may be modified by the Plan Administrator to the
extent permitted by Code Sections 401(a)(31), 402, and 3405 and regulations or rulings issued
thereunder. Moreover, the provisions of this Section shall be interpreted and applied consistently
with Sections 521 through 523 of the Unemployment Compensation Amendments of 1992, and shall be
deemed to be

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automatically amended, without the necessity of adopting a specific amendment, to the
extent that applicable law, regulations, or rulings modify, amend, supersede, eliminate, clarify,
or otherwise change the requirements of said Sections 521 through 523.

     (d) An “eligible rollover distribution” hereunder is any distribution to or withdrawal by a
distributee, except that an eligible rollover distribution does not include
any portion of a distribution to the extent it is: (i) not included in gross income (without
regard to the exclusion for net unrealized appreciation with respect to employer securities)
provided, however, that eligible rollover distributions on or after January 1, 2002, shall include
the portion of a distribution not otherwise included in gross income (i.e., After-Tax
Contributions), if any, (ii) required under Code Section 401(a)(9), (iii) a deemed distribution of
a defaulted loan which is unaccompanied by an actual distribution, (iv) any distribution that is
one in a series of substantially equal periodic payments (not less frequently than annually) made
for one or more lives or for a specified period of ten (10) years or more; (v) effective for
distributions after December 31, 1998, any hardship distribution described in Code Section
401(k)(2)(B)(i)(iv); or (vi) any other amount which is excluded under the Code or Treasury
Regulations. An “eligible retirement plan” is an individual retirement account or annuity
described in Code Sections 408(a) and 408(b) (collectively, an “IRA”), an annuity plan described in
Code Section 403(a) which accepts rollover distributions, or a qualified plan described in Code
Section 401(a) which accepts rollover distributions; provided, however, that with respect to a
surviving spouse (other than an alternate payee under a Qualified Domestic Relations Order),
“eligible retirement plan” shall mean only an IRA. For eligible rollover distributions to a
surviving spouse (other than an alternate payee under a Qualifying Domestic Relations Order),
“eligible retirement plan” shall mean, in addition to an IRA, another qualified plan, Code Section
403(b) annuity, or Code Section 457 governmental plan in which the surviving spouse participates.

     (e) Notwithstanding any provision in this Plan to the contrary, any eligible rollover
distribution in excess of $1,000 but not in excess of $5,000 made on or after March 28, 2005 shall
be transferred directly to the individual retirement plan of a

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designated trustee or insurer,
unless the Participant elects to receive or roll over such distribution.

     5.04 Trustee-to-Trustee Transfer. Upon the direction of the Plan Administrator, the
Trustee may transfer all amounts credited to a Participant’s accounts held
by the Trustee to another retirement benefit plan qualified under Code Section 401(a)
in connection with or following a Distribution Event with respect to such Participant.

     5.05 Protected Distribution Forms for Certain Transferred Balances.

     (a) In the case of a Participant who had funds transferred to the Plan from the GSF Energy
Inc. Retirement Savings Plan (the “GSF Plan”) during 1989, a term annuity may be purchased with all
or part of that portion of the Participant’s distribution which is attributable to funds
transferred in 1986 from the former Getty savings plan to the GSF Plan. The fixed payment period
cannot exceed 240 months and the amount of payments must be greater than $25 per month.

     (b) In the case of a Participant employed by Pacific Anchor Chemical Corporation who had funds
transferred from the Pacific Anchor Chemical Corporation 401(k) Plan (the “Pacific Anchor Plan”) to
the Plan as of July 1, 1989, such a Participant may elect to receive the amount credited to his
account as of the date of such transfer in installment payments over a period not to exceed the
life expectancy of the Participant or the joint life expectancy of the Participant and the
Participant’s spouse, if any.

     (c) In the case of a Participant employed by Industrial Gas and Supply Company (“IGS”) who
had funds transferred from the IGS Savings Plan due to the merger of the IGS Savings Plan into the
Plan as of March 31, 2000, such a Participant may elect to receive the amount credited to his
account as of the date of such transfer, in installment payments over a period not to exceed the
life expectancy of the Participant or the joint life expectancy of the Participant and the
Participant’s spouse, if any. The applicable provisions are set forth in Exhibit II.

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ARTICLE VI

ADMINISTRATION

     6.01 Plan Administrator. The Plan Administrator shall be responsible for the
administration of the Plan to the extent provided herein and except to the extent that some other
person or entity shall be expressly authorized by the Board. The Plan Administrator shall not
receive any compensation from the Plan for his services as such, but may be reimbursed for
reasonable expenses actually incurred in the administration of the Plan.

     6.02 Expenses of Administration. The reasonable expenses incident to the
administration, management, and operation of the Plan, including (but not limited to) the
compensation of legal counsel, auditors, accountants, actuaries, the Trustee, and investment
managers, if any, and other costs such as recordkeeping fees, proxy voting fees, communication
costs, and the cost of clerical and technical assistance which may be required, shall be payable
from the Participants’ accounts as a basis point charge to the unit value of the Participant
Investment Funds in which the accounts are invested. The Investment Committee may provide that
certain Plan expenses, other than those payable as a basis point charge, shall be charged to a
Participant’s accounts. Notwithstanding the foregoing, the Employer, in its absolute discretion,
may elect at any time to pay part or all thereof directly, and any such election shall not bind the
Employer as to its right to elect with respect to the same or other expenses at any other time to
have such expenses paid from the Participants’ accounts.

     6.03 Powers and Duties of the Plan Administrator. In addition to any implied powers
and duties which may be necessary to carry out the provisions of the Plan and any explicit powers
and duties set forth elsewhere in the Plan, the Plan Administrator shall have the following
specific discretionary powers and duties:

     (a) To make and enforce such rules and regulations and adopt such procedures as he shall deem
necessary or proper for the efficient administration of the
Plan which are not inconsistent with the Code, ERISA, or any grant of authority to another
person hereunder, including without limitation rules to be followed by Participants filing notices,
elections, directions, and designations under the Plan and for

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the furnishing and verification of
evidence and proofs necessary to establish the rights of any person to benefits under the Plan;

     (b) Subject to and consistent with the Code and ERISA, discretionary authority and power to
construe and interpret the Plan and to decide any and all matters arising thereunder, including the
right to (i) decide all questions of eligibility for benefits; (ii) determine the amount, time, and
manner of payment; (iii) authorize the payment of benefits; (iv) remedy possible ambiguities,
inconsistencies, or omissions; provided, however, that all such interpretations and decisions shall
be applied in a uniform manner to all Participants who are similarly situated; and (v) to determine
all questions of fact;

     (c) Subject to the provisions of Section 6.05, to make findings of fact and determinations as
to the rights of any person applying for benefits and to afford any such person dissatisfied with
any such findings or determinations the right to a hearing thereof;

     (d) To obtain from the Employer and from the Participants, and provide to the Trustee such
information as shall be necessary for proper administration of the Plan;

     (e) To authorize disbursements from the Participant Investment Funds and to obtain from the
Trustee such information concerning such disbursements as shall be necessary for the proper
administration of the Plan;

     (f) To supervise generally the administration of the Plan in accordance with ERISA, including,
without limitation, compliance with reporting and disclosure requirements and the final review of
claims and appeals by Participants and their Beneficiaries;

     (g) To appoint or employ other persons or fiduciaries to carry out various specific
responsibilities concerning the administration of the Plan and any other agents he deems advisable,
including without limitation legal counsel, auditors, and

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accountants, and to enter agreements for
the performance of services on behalf of the Plan; and

     (h) To allocate and delegate among or to any one or more person or persons (including
corporate persons) named by the Plan Administrator in accordance with the provisions hereinafter,
any of his powers, duties, and fiduciary responsibilities, such allocation or delegation to be
effected as follows:

          (i) Fiduciary responsibilities may be allocated or delegated by the Plan Administrator by
naming in writing the named fiduciary to whom the responsibility is allocated or delegated, with a
description of the responsibility and an outline of the duties involved;

     (i) Such of his other powers, authority, and duties as he deems proper and desirable for the
efficient administration of the Plan may be delegated to any officer or other administrative
employee of the Employer;

     6.04 In addition to any implied powers and duties which may be necessary to carry out the
provisions of the Plan and any explicit powers and duties set forth elsewhere in the Plan, the
Investment Committee shall have the following specific discretionary powers and duties:

     (a) To appoint or employ, and to enter agreements with:

          (i) the Trustee;

          (ii) an investment manager or managers with power to direct the investment, reinvestment, and
other management of the acquisition and disposition by the Trustee of all or a portion of any of
the Participant Investment Funds described in Section 4.02 (other than the Company Stock Funds), if
the Investment Committee
determines in its sole discretion that an investment manager or managers is necessary or
desirable for management of all or any portion of any such Participant Investment Fund; provided,
however, that each such investment manager shall acknowledge in writing that such investment
manager is a fiduciary with respect to the Plan, and:

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               (A) shall be registered as an investment advisor under the Investment Advisors Act
of 1940; or

               (B) shall be a bank, as defined in the Investment Advisors Act of 1940; or

               (C) shall be an insurance company qualified to perform services with power to
manage, acquire,
or dispose of assets of the Plan under the laws of more than one State; or

               (D) if not registered as an investment advisor under the Act by reason of paragraph
(1) of
section 203A(a) of the Investment Advisors Act of 1940, shall be registered as an investment
advisor under the law of the State (referred to in such paragraph (1)) in which it maintains its
principal office and place of business, and, at the time the investment advisor last filed the
registration form most recently filed by the investment advisor with such State in order to
maintain the investment advisor’s registration under the laws of such State, shall also have filed
a copy of such form with the Secretary of Labor.

          (iii) an investment advisor who does not meet the qualifications for an investment manager set
forth in Paragraph (ii) above, provided that such investment advisor may offer investment advisory
services and recommendations to the Trustee but shall have no power to cause the Trustee to act on
such advice.

     (b) To direct the Trustee to invest and reinvest all or any portion or portions of any of the
Participant Investment Funds described in Section 4.02 held under the Trust Agreement as specified
by the Investment Committee , in interests in collective investment funds, group trusts, or other
entities or in other investments
directed by the Investment Committee , and to exercise ownership rights with respect to such
interests or investments, all as specified by the Investment Committee;

     (c) To perform any and all duties allocated to it by the Board or required of it by the
provisions of this Plan, the Code, or ERISA;

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     (d) To allocate and delegate among or to any one or more of its members or officers, any
subcommittees of the Investment Committee , and any other person or persons (including corporate
persons) named by it in accordance with the provisions hereinafter, any of its powers, duties, and
fiduciary responsibilities (other than trustee responsibilities), such allocation or delegation to
be effected as follows:

          (i) Fiduciary responsibilities may be allocated or delegated by the Investment Committee by
naming in writing, including by recording in the minutes of the Committee’s meetings the named
fiduciary to whom the responsibility is allocated or delegated, with a description of the
responsibility and an outline of the duties involved;

          (ii) Except where a member of the Investment Committee, the fiduciary so named shall indicate
acceptance of the responsibility by executing the written instrument naming such fiduciary,
whereupon such executed instrument shall be incorporated by this reference in the Plan;

          (iii) For the purpose of this Paragraph 6.04(k), a trustee responsibility is a responsibility
to manage or control the assets of the Plan other than the power to appoint an investment manager
in accordance with Paragraph (2) of Paragraph 6.04(h). The power to allocate or delegate
responsibility to manage the Participant Investment Funds described in Paragraph 4.02 may only be
made in accordance with such Paragraph (2) of Paragraph 6.04(h); and

          (iv) Such of its other powers, authority, and duties as it deems proper and desirable may be
delegated to any one of its members or officers or to any officer or other administrative employee
of the Employer, provided that such delegation
shall be noted in the minutes of the proceedings of the Investment Committee or other writing;

     (e) To take all actions necessary to transfer Plan assets and liabilities to another qualified
plan subject to, and in accordance with the provisions of applicable laws and Section 7.03, were
such transfer is required in connection with any transaction

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or event or series of events or
transactions which may from time to time be approved by the Board or approved pursuant to a
delegation of authority by the Board;

     (f) To take all actions necessary to amend the Plan to assume liabilities, and to direct the
Trustee to accept assets, of another qualified plan subject to, and in accordance with the
provisions of applicable law and Section 7.03, required in connection with any transaction or event
or series of similar transactions or of similar events which may from time to time be approved by
the Board or approved pursuant to a delegation of authority from the Board; and

     (g) To take such further action as the Investment Committee deems appropriate, in regard to
establishing and reviewing programs, guidelines, policies, and objectives for investment of Plan
assets, and reviewing investment performance in terms of such programs, guidelines, policies, and
objectives.

     6.05 Benefit Claims Procedure. The claim and appeal procedure herein provided is
intended to meet the requirements of ERISA and the regulations thereunder. By virtue of such
requirements, the procedure provided in this Section 6.05 shall be the sole and exclusive procedure
for claiming benefits or appealing any denial of a claim for benefits under the Plan. This
procedure shall, in respect of all claims arising under the Plan, supersede and preempt any and all
procedures for settlement of disputes or resolution of grievances under any other agreements or
plans.

     (a) Claim. 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 shall such extension exceed a period of ninety (90) days from the end of such initial
period. The extension notice shall indicate the

75

 

special circumstances requiring an extension of
time and the date by which the Plan Administrator expects to render the final decision.

     (b) Denial. In the event the claim is wholly or partially denied, the Plan
Administrator’s written notification shall: (a) state the specific reason or reasons for the
denial, (b) contain specific references to pertinent Plan provisions on which the denial is based,
(c) provide a description of any additional material or information necessary for the Participant
or Beneficiary to perfect the claim and an explanation of why such material or information is
necessary, and (d) set forth the procedure by which the Participant or Beneficiary may appeal the
denial of his claim. If no notice of denial is provided within the time period set forth above,
the claim shall be deemed to be denied and the Participant or Beneficiary may proceed to appeal in
accordance with Paragraph (c) below.

     (c) Appeal. 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 such written claim denial (or the date on which
such claim is deemed denied if notice is not received within the applicable time periods pursuant
to Paragraph (b) above). Such Participant or Beneficiary (or his duly authorized representative)
may, upon written request to the Claims Committee , review any records of the Plan Administrator or
other persons to whom fiduciary responsibilities have been allocated or delegated hereunder which
the Claims Committee determines are pertinent to such claim, and submit in writing issues and
comments in support of his position.

     The Claims Committee shall notify the Participant or Beneficiary of the Claims Committee ’s
final decision within 60 days after receipt of the written appeal unless an extension of time is
necessary due to special circumstances. If an extension is required, the Claims Committee shall
notify the Participant, Beneficiary or authorized representative of the extension within the
initial review period and shall explain the special circumstances requiring the extension within
such initial 60-day period.

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     The final decision shall be in writing and shall include specific reasons for the decision,
written in a manner calculated to be understood by the claimant, and specific references to the
pertinent Plan provisions on which the decision is based. In addition the notice shall provide
that the claimant is entitled to receive, upon request and free of charge, reasonable access to,
and copies of, all documents, records, and other information relevant to the claimant’s claim for
benefits, and shall contain a statement of the claimant’s right to bring an action under Section
502(a) of ERISA. If the claim has not been granted and the notice is not furnished within the
period of time specified above, the claim shall be deemed denied. The decision on appeal shall be
binding on all parties.

     (d) Qualified Domestic Relations Order. Since separate procedures have been adopted
with respect to domestic relations orders, the service of a domestic relations order on the Plan
shall not be treated as a claim for benefits as contemplated by this Section 6.05 and the foregoing
procedure shall not be followed in determining whether such an order constitutes a Qualified
Domestic Relations Order.

     6.06 Fiduciaries. Persons and entities named or referred to in the Plan, including
without limitation, members of the Investment Committee, members of the Claims Committee, and the
Plan Administrator may from time to time act in respect of the Plan and/or the Trust Fund in a
fiduciary capacity as to the operation and administration of the Plan and/or the Trust Fund, as
well as in a non-fiduciary capacity on behalf of an Employer as a sponsor of the Plan and/or
settlor of the Trust Fund. Except as expressly provided in the Plan, no
reference in the Plan to any particular act, duty, or responsibility by any person or entity
is intended to ascribe a fiduciary or non-fiduciary role thereto.

     For purposes of ERISA Section 402(a), “named fiduciaries” for the Plan shall include: the
Finance Committee of the Board, insofar as it appoints the persons to serve on the Investment
Committee and has oversight responsibility for review of certain actions taken by the Investment
Committee; the Plan Administrator with respect to the control and management of the operation and
administration of the Plan and compliance with the reporting and disclosure requirements of ERISA
and the Code; the

77

 

Investment Committee with respect to control and management of the Trust Fund;
and the Claims Committee with respect to adjudication of claim appeals. In addition, the Trustee
shall be the named fiduciary or named fiduciaries with respect to the management, control, custody,
and investment of the Trust Fund or specified portions thereof, except to the extent: (a) an
investment manager has been appointed to manage and/or acquire and dispose of investments as
contemplated by Paragraph 6.05(h)(2), in which case such investment manager shall be the named
fiduciary with respect to the management, acquisition, and disposition of such investments: or (b)
the Trustee has been directed by the Investment Committee to invest or reinvest, and exercise
ownership rights with respect to, interests in collective investment funds, trusts, or other
entities or other investments as contemplated by Paragraph 6.05(i), in which case the Investment
Committee shall be the named fiduciary with respect to the management, acquisition, and disposition
of such interests and investments.

     6.07 Adequacy of Communications; Reliance on Reports and Certificates. All notices,
elections, applications, directions, or other communications given, made, filed, delivered, or
transmitted by or for an Employee or Participant in pursuance of the provisions of this Plan shall
not be deemed to have been duly given, made, filed, delivered, transmitted, or received unless the
same shall be in writing on such form as is made available by the Plan Administrator or the Trustee
for that purpose and until the same shall actually be received at the locations specified on such
form.

     Any person acting upon notices, directions, or other communications given, made, delivered, or
transmitted by the Investment Committee may rely on any documents signed by the chairman or
secretary of the Investment Committee or by any one or more of its members or Company officers or
employees authorized by the Committee to certify its actions.

     The Investment Committee, the Claims Committee or any of their members will be entitled to
rely conclusively upon any information, including without limitation, all tables, valuations,
certificates, opinions, and reports, which is furnished by

78

 

the Trustee, any auditor, accountant, legal counsel, or other person who is employed or
engaged for the purpose of assisting such Committees in the performance of their
responsibilities hereunder and as to whom the members of the applicable Committee
have no reason to doubt the competence, integrity, or responsibility.

     6.08 Indemnification. The Company agrees to indemnify each member of the Investment
Committee or the Claims Committee who is its employee or the employee of an Affiliated Company
against any and all claims, loss, damage, expense, and liability from any act or failure to act
unless the same is judicially determined to be the result of such member’s gross negligence or
willful misconduct, except as otherwise prohibited by applicable law.

     6.09 Member’s Own Participation. No member of the Investment Committee or the Claims
Committee may act, vote, or otherwise influence a decision of the Committee relating solely to his
own participation under the Plan.

     6.10 Elections. Exhibit III attached hereto, entitled “Plan Elections”, sets forth
elections under the Plan made by the Company or its delegates or officers, including the
Vice-President Human Resources, the Plan Administrator or his delegates, or others (but not
Participants, spouses, beneficiaries, alternate payees or other Participants or payees) in regard
to elections made under the Plan or applicable law, whether or not specifically referenced in the
Plan, and is designed to include only those elections required by applicable law to be specified in
the Plan, but may include other elections as well.

ARTICLE VII

AMENDMENT, CORRECTION AND DISCONTINUANCE

     7.01 Right to Amend or Terminate.

          (a) The Company intends and expects to continue the Plan indefinitely. Nevertheless, (i) the
Company reserves the right to terminate the Plan or amend or modify it from time to time and (ii)
each Employer reserves the right to suspend, terminate, or completely discontinue contributions
under the Plan with respect to itself

79

 

and its Employees and their Beneficiaries. Action to
terminate the Plan may be taken only by the Board, by its resolutions, duly adopted. The
Investment Committee may act on behalf of the Company and without action by or approval of the
Board, to add or discontinue Participant Investment Funds. 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 on behalf of the Company by the Chairman of the Board evidenced 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 are
Participants 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 herein assigned to the Finance Committee of the Board, the Investment Committee,
the Plan Administrator, or the Claims Committee. The Chairman may delegate the authority described
in the preceding sentence in writing.

          (b) Notwithstanding Paragraph (a), no action to terminate, amend, or modify the Plan described
therein shall adversely affect Participants who shall have retired under the Plan prior to such
action, nor shall any amendment have the effect of decreasing the nonforfeitable percentage or the
amount of a Participant’s accounts
except as permitted by Code Section 411(d)(6) and the regulations thereunder. No amendment
shall be made to this Plan which eliminates a subsidy or an optional form of benefit available to a
Participant except as permitted by Code Section 411(d)(6) and the regulations thereunder.

          (c) Notwithstanding any of the foregoing provisions of this Section, any modification or
amendment of the Plan may be made retroactively, if necessary or appropriate to qualify or maintain
the Plan and/or the Trust Fund as a plan and/or trust meeting the requirements of the Code and
ERISA, or any other provision of law, as now in effect or hereafter amended or adopted, and any
regulation issued thereunder. If the

80

 

Plan is terminated by the Company, all amounts credited to
each of such Participant’s accounts in respect of Before-Tax Contributions, After-Tax
Contributions, Catch-up Contributions, Company Core Contributions, and Company Matching
Contributions shall be distributed by the Trustee to any such Participant so affected by such
discontinuance or to his or her designated Beneficiary as soon as practicable (to the extent
permitted under applicable law), with distributions to be made in accordance with the directions of
the Plan Administrator.

          (d) Upon the Plan’s termination or partial termination, the rights of all affected
Participants to benefits accrued to the date of such termination or partial termination, to the
extent not yet vested, shall be nonforfeitable.

     7.02 Corpus and Income Not to be Diverted. Notwithstanding any power of
discontinuance or amendment reserved in the Plan or Trust Agreement, it shall be impossible at any
time for any part of the corpus and income of the Trust Fund held for the benefit of Participants
and their Beneficiaries to be used for, or diverted to, purposes other than for the exclusive
benefit of such Participants or their Beneficiaries and defraying reasonable expenses of
administering the Plan. Notwithstanding the foregoing:

          (a) All contributions made to the Plan are conditioned upon their deductibility in full under
Code Section 404, or any statute of similar import. If all or any portion of a contribution is
determined to be not deductible, the amount so determined
to be non-deductible shall be returned to the Employer, if the Employer so directs the
Trustee, within one (1) year of the determination of the disallowance of the deduction.

          (b) A contribution made by a mistake of fact shall be returned to the Employer within one (1)
year after the payment of the contribution, if the Employer so directs the Trustee.

     7.03 Merger or Consolidation of Plan.

          (a) The Plan shall not be terminated automatically by the Company’s acquisition by or merger
into any other company, but the Plan shall be continued after such merger if the successor company
agrees to continue the Plan. All rights to amend,

81

 

modify, suspend, or terminate the Plan shall be
transferred to the successor company, effective as of the date of the merger, without the need for
a specific Plan amendment.

          (b) The Plan shall not merge or consolidate with, or transfer its assets or liabilities to,
any other plan unless each Participant would (if the Plan then terminated) be entitled to receive a
benefit after the merger, consolidation, or transfer which is equal to or greater than the benefit
he would have been entitled to receive immediately before the merger, consolidation, or transfer
(if the Plan had been terminated).

     7.04 Correction. Any operational or qualification defect or failure of this Plan of
any kind whatsoever may be corrected pursuant to any program of voluntary correction sponsored by
the Internal Revenue Service or the Department of Labor, or any other agency of the Federal
government or pursuant to applicable law, regulations or rulings, to the extent determined by, and
at the sole discretion of, the Chairman of the Board.

ARTICLE VIII

GENERAL PROVISIONS

     8.01 Nonalienation of Benefits. Except as may be otherwise required by law, no
benefit payable under the Plan or any interest of any Participant arising out of or created by this
Plan, either before or after retirement, shall be subject, either voluntarily or involuntarily, to
anticipation, assignment, pledge, execution, attachment, garnishment, or alienation. Any attempt
to assign or alienate a benefit payable under the Plan shall be void. Also, except as may
otherwise be required by law, no such benefit or interest will in any manner be liable for or
subject to the debts, liabilities, contract, engagements, or torts of any Participant. This
Section 8.01 also shall apply to the creation, assignment, or recognition of a right to any benefit
payable with respect to a Participant pursuant to a domestic relations order, unless such order is
determined by the Plan Administrator to be a Qualified Domestic Relations Order. In the case of a
Qualified Domestic Relations Order, distributions shall be made in accordance with and shall be
governed by procedures adopted by the Plan Administrator.

82

 

Notwithstanding any other provisions of
the Plan, to the extent permitted under the provisions of Code Sections 401(a)(13)(C) and (D), or
under other applicable law, a Participant or Beneficiary may have his benefits reduced in the event
of his willful breach of fiduciary duty to the Plan or his criminal act against the Plan.

     8.02 Payments to Minors, Incompetents, and Related Situations. If a Participant or
Beneficiary entitled to receive any benefits hereunder is a minor, is adjudged to be legally
incapable of giving valid receipt and discharge for such benefits, or is unable to care for his
affairs because of illness, accident, mental disability, or similar circumstances, such benefits
shall be paid to such person as the Plan Administrator shall designate or to the duly appointed
guardian. Such payment shall be deemed a complete discharge of any liability for such benefits
under the Plan.

     8.03 Unclaimed Accounts — Trust Funds. No interest shall accrue to or for the account
of Participants or their Beneficiaries during any period that any distribution hereunder shall
remain unclaimed. If any distribution made by the Trustee from any of the
Participant Investment Funds remains unclaimed for a period of six (6) months, the Trustee
shall notify the Plan Administrator, who will promptly attempt to locate the person entitled to
receive such distribution.

     8.04 No Guarantee of Employment. The Plan shall not be deemed to be in consideration
of, or an inducement for, the employment of any person by the Company or any Affiliated Company.
Nothing contained in the Plan shall be deemed to give any employee the right to be retained in the
service of the Company or any Affiliated Company or to interfere with the right of the Company or
any Affiliated Company to discharge or to terminate the service of any employee at any time without
regard to the effect such discharge or termination may have on any rights under the Plan.

     8.05 Governing Law. The Plan, the Trust Agreement, and all amendments thereto shall
be construed, whenever possible, to be in conformity with the requirements of the Code and ERISA,
and according to the laws of the Commonwealth of Pennsylvania (including its statute of limitations
provisions, but excluding its choice of law provisions) to the extent not preempted by applicable
federal law.

83

 

     8.06 Gender, Number, and Headings.

          (a) As used herein, the pronouns “he”, “him”, or “his”, referring to an Employee, Participant,
Beneficiary, or any other person, shall also be deemed to refer to and include the feminine gender.

          (b) Whenever any words are used herein in the singular or plural, they shall be construed as
if they were also used in the plural or singular, respectively, in all cases where applicable.

          (c) Headings of Articles and Sections of the Plan are inserted for convenience of reference
only and as such they constitute no part of the Plan and are not to be considered in the meaning or
construction thereof.

          (d) Any reference to the Code or ERISA or a section thereunder or a regulation thereunder
shall also refer to any successor statute, successor section, or successor regulation.

     8.07 Severability. Each provision of the Plan shall be independent of each other
provision of the Plan and if any provision of the Plan proves to be, or is held by any court,
tribunal, board, or authority of competent jurisdiction to be, void or invalid as to any
Participant or group of Participants, such provision shall be disregarded and deemed to be null and
void and not part of the Plan; but such invalidation of any such provision shall not otherwise
impair or affect this Plan or any of the other provisions or terms hereof.

     8.08 Obligations of the Employer. No Employer shall have any liability with respect
to payments of benefits under the Plan and each Participant and Beneficiary shall look solely to
the Trust Fund for any payments or benefits under the Plan. Upon total or partial termination of
the Plan, no Employer shall have any further liability either to provide benefits to those
employees affected by such total or partial termination (whether or not such benefits are then in
pay status) or to make any further contributions to or under the Plan in respect of such employees.

84

 

     8.09 Effective Date. The amended and restated Plan as herein set forth is effective
as of January 1, 2005.

     8.10 Uniformed Services Employment and Reemployment Rights Act. Notwithstanding any
provision of this Plan to the contrary, contributions, benefits and service credit with respect to
qualified military service will be provided in accordance with Code Section 414(u).

     8.11 Use of Electronic Media; Adjustment of Certain Time Periods. Notwithstanding any
provision herein which requires notices, consents, elections, or other actions under the Plan to be
effectuated through a writing, such notices, consents, elections, or other actions may be
effectuated through the use of electronic media, if so provided in procedures established by the
Plan Administrator consistent with Department of Labor or Internal Revenue Service pronouncements
or other applicable law. Moreover, any time
periods set forth herein for providing notices, making elections, granting consents, or taking
other actions which are based upon time limits established under applicable law shall be deemed to
be automatically amended, without the necessity of a formal amendment, to reflect any subsequent
modification of those deadlines through Department of Labor or Internal Revenue Service
pronouncements or other changes in applicable law.

          IN WITNESS WHEREOF, this Air Products and Chemicals, Inc. Retirement Savings Plan, as amended
and restated effective January 1, 2005, has been duly executed on behalf of Air Products and
Chemicals, Inc.

	 	 	 	 	 	 	 
	 	 	 	 	AIR PRODUCTS AND CHEMICALS, INC.
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	Vice President-Human Resources
	ATTEST:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

Assistant Secretary

	 	 
	 	 
	 	 

85

 

EXHIBIT I

ELIGIBLE NONUNION HOURLY LOCATIONS DESIGNATED

BY VICE PRESIDENT — HUMAN RESOURCES

EFFECTIVE AS OF JANUARY 1, 2005:

	 	 	 
	 	 	Designated
	 	 	Terminal
	 	 	For 125% of
	 	 	Base Salary
	ASHLAND, KY

	 	YES
	BETHLEHEM, AR

	 	YES
	BURNS HARBOR, IN

	 	NO
	BUTLER, IN

	 	YES
	CAMDEN, SC

	 	YES
	CHANDLER, AZ

	 	YES
	CONVENT, LA

	 	NO
	CONYERS, GA

	 	YES
	CREIGHTON, PA (effective 10/1/2002)

	 	YES
	DECATUR, AL

	 	YES
	DEER PARK, TX

	 	NO
	DELAWARE CITY, DE

	 	NO
	GLENMONT, NY

	 	YES
	GRAY, TN

	 	YES
	LANCASTER, PA

	 	YES
	LAPORTE, TX

	 	YES
	LA VERGNE, TN

	 	NO
	LIBERAL, KS

	 	YES
	MANALAPAN, NJ

	 	NO
	MIDLOTHIAN, TX

	 	YES
	NIAGARA FALLS, NY

	 	YES
	NORTH BALTIMORE, OH

	 	YES
	OAK CREEK, WI

	 	YES
	ORLANDO, FL

	 	YES
	PACE, FL

	 	YES
	PARKERSBURG, WV

	 	YES
	PRYOR, OK

	 	YES
	REIDSVILLE, NC

	 	YES
	SHAKOPEE, MN

	 	YES
	SMITHVILLE, MO

	 	NO
	SPARROWS POINT, MD – DRIVERS

	 	YES
	SUFFIELD, CT

	 	YES

I-1

 

EXHIBIT II

FORMS OF DISTRIBUTION AVAILABLE TO PARTICIPANTS WHO HAD AMOUNTS

TRANSFERRED TO THE PLAN FROM THE IGS SAVINGS PLAN

                    (i) Forms of Payments to Participants. Participants who were previously participants in the
IGS Savings Plan shall continue to have available under the Plan the forms of payment which were
available under the IGS Savings Plan, in addition to the forms of benefit provided for in Article V
of the Plan; provided, however, that distribution shall automatically be made in the form of a lump
sum if the value of the aggregate amounts credited to the Participant’s Plan accounts does not
exceed the amount set forth in Paragraph 3.10(c) of the Plan. Such forms of payment shall be
available with respect to the balance of the Participant’s account which was transferred from the
IGS Savings Plan to the Plan in connection with the merger of the IGS Savings Plan effective March
31, 2000.

          Any distributions made pursuant to this Exhibit II or under Article V must satisfy the
requirements of Code Section 401(a)(9) and the regulations thereunder, including the minimum
distribution incidental benefit requirement. The former IGS Savings Plan Participant shall have
the ability to recalculate annually the life expectancy of the Participant and the Participant’s
Spouse. Any recalculation of life expectancy shall be done in accordance with Code Section
401(a)(9) and the regulations thereunder.

                         (1) Normal Form of Payment. Unless the Participant elects otherwise the aggregate amount
credited to the Participant’s Plan accounts shall be made in a lump sum. The normal form of
payment shall be automatic, unless the Participant files a written request with the Administrator
prior to the date on which the aggregate amounts credited to the Participant’s Plan accounts are
automatically payable, electing an optional form of payment.

II-1

 

                         (2) Optional Forms of Payment.

               (a) The Participant shall have the right to receive the aggregate amounts credited to his or
her Participant Plan accounts in monthly, quarterly, semi-annual or annual payments from the Plan
over any period not extending beyond the life expectancy of the Participant and his or her
Beneficiary.

               (b) A direct rollover will be available to the Participant and/or the Spouse under the terms
of Section 5.03.

                    (ii) Forms of Death Benefit Distributions.

                         (1) Spousal Death Benefit. On the death of a Participant, the aggregate amounts credited to
the Participant’s Plan accounts will be paid to the Participant’s Surviving Spouse, or if the
Surviving Spouse has consented in a manner conforming to a Qualified Election, then to the
Participant’s Designated Beneficiary.

          The Surviving Spouse may elect to have distribution of the aggregate amounts credited to the
Participant’s Plan Accounts commence within the 90-day period following the date of the
Participant’s death. The aggregate amount credited to the Participant’s Plan Accounts shall be
adjusted for gains or losses occurring after the Participant’s death in accordance with the
provisions of the Plan governing the adjustment of account balances for other types of
distributions.

          The Participant may waive the spousal death benefit described in this Section B(1) of this
Exhibit II at any time provided that no such waiver shall be effective unless it is a Qualified
Election.

                         (2) Qualified Election. Any election to waive the spousal death benefit of Section B(2) of
this Exhibit II shall not be effective unless:

II-2

 

                              (a) the Participant’s Spouse consents in writing to the election;

                              (b) the election designates a specific beneficiary, including any class of beneficiaries or
any contingent beneficiaries, which may not be changed without spousal consent (or the Spouse
expressly permits designations by the Participant without any further spousal consent);

                              (c) the Spouse’s consent acknowledges the effect of the election.

          If it is established to the satisfaction of the Administrator that there is no Spouse or that
the Spouse cannot be located, a waiver will be deemed a Qualified Election. Any consent by a
Spouse obtained under this provision (or establishment that the consent of a Spouse may not be
obtained) shall be effective only with respect to such Spouse. A consent that permits designations
by the Participant without any requirement of further consent by such Spouse has the right to
limit consent to a specific beneficiary, and a specific form of benefit where applicable, and that
the Spouse voluntarily elects to relinquish either or both of such rights. A revocation of a prior
waiver may be made by a Participant without the consent of the Spouse at any time before the
commencement of benefits. The number of revocations shall not be limited.

                    (iii) Other Distribution Provisions.

                         (1) Participant Dies After Distribution Has Begun. In the event a Participant dies after the
distribution of the aggregate amounts credited to the Participant’s Plan accounts pursuant to Code
Section 401(a)(9) has begun, the distribution of the such aggregate amounts will continue to be
distributed at least as rapidly as under the method of distribution being used prior to the
Participant’s death.

                         (2) Participant Dies Before Distribution Has Begun. In the event a Participant dies before
the distribution of the aggregate

II-3

 

amounts credited to the Participant’s Plan accounts pursuant to
Code Section 401(a)(9) has begun, the distribution of the such aggregate amounts will be completed
by December 31 of the calendar year containing the fifth anniversary of the Participant’s death
except to the extent that an election is made to receive distributions in accordance with (a) or
(b) below.

                              (a) If any portion of the aggregate amounts credited to the Participant’s Plan accounts is
payable to a Designated Beneficiary, distributions may be made over the life or over a period
certain not greater than the life expectancy of the Designated Beneficiary commencing on or before
December 31 of the calendar year immediately following the calendar year in which the Participant
died;

                              (b) If the Designated Beneficiary is the Participant’s Surviving Spouse, the date
distributions are required to begin in accordance with (a) above shall not be earlier than the
later of (1) December 31 of the calendar year immediately following the calendar year in which the
Participant died or (2) December 31 of the calendar year in which the Participant would have
attained age 701/2.

          If the Participant has not made an election pursuant to this Section C(2) of this Exhibit II
by the time of his or her death, the Participant’s Designated Beneficiary must elect the method of
distributions no later than the earlier of: (1) December 31 of the calendar year in which
distributions would be required to begin under this section, or (2) December 31 of the calendar
year which contains the fifth anniversary of the date of death of the Participant. If the
Participant has no Designated Beneficiary, or if the Designated Beneficiary does not elect a method
of distribution, then distributions of the aggregate amounts credited to the Participant’s Plan
accounts must be completed by December 31 of the calendar year containing the fifth anniversary of
the Participant’s death.

          For purposes of this Section C(2) of this Exhibit II, if the Surviving Spouse dies after the
Participant, but before the payments to such Spouse begin, the provisions

II-4

 

of this Section C(2) of
this Exhibit II with the exception of paragraph (b) therein, shall be applied as if the Surviving
Spouse were the Participant. For the purposes of Sections C(1) and C(2) of this Exhibit II,
distribution of the aggregate amounts credited to the Participant’s Plan accounts is considered to
begin on the last business day of March of the calendar year, which follows the calendar year in
which the Participant would have attained age 701/2 (or, if the preceding sentence is applicable, the
date distribution is required to begin to the Surviving Spouse).

                         (3) Payment to Minor. For purposes of this Exhibit II, if an amount is payable to either a
minor or an individual who has been declared incompetent, the benefits shall be paid to the legally
appointed guardian for the benefit of said minor or incompetent individual, unless the court which
appointed the guardian has ordered otherwise.

                         (4) Definitions. For purposes of this Exhibit II, the following definitions shall apply:

                              (a) Designated Beneficiary — The individual who is designated as the beneficiary under the
Plan in accordance with Code Section 401(a)(9) and the regulations thereunder.

                              (b) Spouse or Surviving Spouse — The Spouse or Surviving Spouse of the Participant, provided
that a former Spouse will be treated as the Spouse or Surviving Spouse and a current Spouse will
not be treated as the Spouse or Surviving Spouse to the extent provided under a Qualified Domestic
Relations Order as described in Code Section 414(p).

II-5

 

EXHIBIT III

PLAN ELECTIONS

          The following elections have been made in accordance with various sections of the Plan and are
applicable only with respect to the Plan Years specifically indicated below, except as otherwise
required by applicable law:

	 	 	 	 	 
	Year Election Applies	 	Applicable Plan Section	 	Election
	1997

	 	3.07(b)(i),(ii), and
(iii) (pages 28-31)
	 	Current year data
used to perform ADP,
ACP, and multiple use
testing.
	 
	 	 	 	 
	2003

	 	5.01 (page 65)
	 	Application of final
required minimum
distribution
regulations

This Exhibit III may be revised from time to time by the Vice President — Human Resources without
amendment to the Plan, provided his/her signature appears below along with the Signature Date.

III-1

 

SCHEDULE I

PARTICIPATING EMPLOYERS

AS OF JANUARY 1, 2005

	 	 	 	 	 
	 	 	Participating Employer	 	 
	Name of Affiliated Company	 	Designation Date	 	Revocation Date
	Air Products Energy Enterprising, Inc.

	 	Continuing
	 	N/A
	 
	 	 	 	 
	Air Products Helium, Inc.

	 	Continuing
	 	N/A
	 
	 	 	 	 
	Air Products, L.P.

	 	1 October 1999
	 	N/A
	 
	 	 	 	 
	Air Products Manufacturing Co., Inc.

	 	Continuing
	 	N/A
	 
	 	 	 	 
	Air Products Polymers

	 	1 October 1998
	 	N/A

S-1EX-10.26

 

Exhibit 10.26

Attachment I

     RESOLVED, that each nonemployee member of the Company’s Board of Directors shall receive
compensation in the amount and manner described in Exhibit I1, attached, for service on the Board
effective 1 October 2006; and that all prior resolutions with respect to compensation of
nonemployee directors are hereby revoked.

APCI BOARD OF DIRECTORS

21 September 2006

- I-1 -

 

Exhibit I1

Compensation Program

for Nonemployee Directors

	a.	 	Each director shall be paid an annual retainer of $50,000 for serving as a member of the
Board of Directors and any Board Committee(s), which retainer shall be payable in quarterly
installments at the end of each quarter. Fifty percent of this retainer will be paid by the
Company in the form of a credit to the directors’ Air Products Stock Account and converted to
deferred stock units under the Deferred Compensation Program for Directors.
	 
	b.	 	Each director who serves as the Chairman of a Board Committee shall be paid an additional
annual retainer of $10,000, which retainer shall be payable in quarterly installments.
	 
	c.	 	Each director shall be paid a meeting fee of $2,000 per Board or Committee meeting
attended.*/
	 
	d.	 	Deferred stock units with a targeted dollar value of $100,000 shall be credited to each
director’s Air Products Stock Account under the Deferred Compensation Program for Directors
(i) effective as of the date the director first serves on the Board, and (ii) annually,
notwithstanding the date of first service, for directors continuing in office after the Annual
Meeting of Shareholders, effective as of the day of the Annual Meeting. The number of units
to be credited will be determined based on the Fair Market Value of a

- I-2 -

 

	 	 	share of common stock of the Company as determined under the Program on the date credited,
rounded up to the nearest whole share unit.
	 
	e.	 	Directors shall be reimbursed for out-of-pocket expenses incurred in attending regular and
special meetings of the Board and Board Committees and any other business function of the
Company at the request of the Chairman of the Board. Expenses will be reimbursed as
submitted.**/

 

			
	*/	 	For purposes of administering these provisions, a director will be
considered to have attended any meeting for which he or she was present in person or by secure
telephone conference call for substantially all of the meeting, as determined by the Corporate
Secretary. Members of the Audit Committee who participate with management and/or the
independent auditors to review such things as quarterly earnings releases and registration
statements as required by law or listing standard will also receive the meeting fee.
Directors who meet with a constituent or other third party on behalf of the Company and at the
request of the Chief Executive Officer will also receive the meeting fee.
	 
	**/	 	Directors are reimbursed at the rate of $.445 per mile or such rate as is
published by the Internal Revenue Service for use of their personal cars in connection with
Company business. Directors using personal aircraft or private carrier will be reimbursed for
such expenses at a rate equivalent to first-class air fare of scheduled carriers.

- I-3 -

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