Document:

EX-10.8

 

Exhibit 10.8

THE LUBRIZOL CORPORATION

Senior Management Deferred Compensation Plan

(As Amended and Restated January 1, 2008)

1. Purpose. The purpose of this Senior Management Deferred Compensation Plan (the “Plan”)
is to permit an a person who is an officer (as identified by the Company for Section 16 purposes
under the Securities Exchange Act of 1934) of The Lubrizol Corporation (the “Company”) or, for
amounts earned in 2005, who was an officer of the Company during 2004, or effective January 1,
2006, who is selected to participate in the Plan by the Organization and Compensation Committee of
the Board of Directors of the Company (“Committee”), (hereinafter referred to as the
“Participant”), who wishes, to defer a portion of such Participant’s compensation earned in
calendar years beginning on or after January 1, 2005, as provided in the Plan. Notwithstanding any
provision to the contrary, prior to January 1, 2006, for purposes of this Plan, an “officer” or
“Participant” does not include any employee of Noveon, Inc. or its affiliates.

2. Administration. The Plan shall be administered by the Committee. The Committee’s
interpretation and construction of all provisions of the Plan shall be binding and conclusive upon
all Participants and their heirs and/or successors.

3. Right to Defer Compensation.

     (a) A Participant of the Company may, at any time prior to January 1 of a given calendar year,
elect, for the calendar year, to defer under the Plan a pre-selected amount of such Participant’s
compensation specified in paragraph (c) below, which such Participant may thereafter be entitled to
receive for services performed during such elected calendar year. Notwithstanding the foregoing,
if allowed by the Company, at any time up to six months prior to the payment of performance-based
long-term incentive compensation, a Participant may elect to defer under the Plan a pre-selected
amount of such compensation specified in (c)(iii) below, provided however, that any such election
shall only be made in accordance with Section 409A of the Internal Revenue Code of 1986, as amended
and the regulations thereunder.

     (b) The election under Section 3(a) shall take effect on the first day of the calendar year
following the date on which the election is made and such election shall be irrevocable for any
elected calendar year after such elected calendar year shall have commenced.

     (c) A Participant may elect to defer up to 90 percent of one or more of the following:

	 	(i)	 	Base salary;

	 	(ii)	 	Annual incentive pay, if any.

	 	(iii)	 	Stock compensation from the long term incentive plan, if
any.

	 	(iv)	 	Stock compensation pursuant to an employment agreement dated
as of January 1, 2003

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provided, however, that the actual amount deferred will be the elected amount less any applicable
withholding taxes.

     (d) Notwithstanding paragraphs (a), (b) and (c), the first year a Participant
becomes eligible to participate in the Plan, he may make an initial deferral election within 30
days after he becomes eligible to participate but only with respect to compensation paid for
services performed after the election.

     (e) At the time elections are made pursuant to paragraphs (a) or (d), and in addition to the
provisions of paragraphs (a) through (d), a Participant may elect to defer that portion or all of
the Participant’s cash and/or stock compensation (i) described in paragraph (c) and/or (ii) any
other plan or program that provides for cash or stock compensation, to the extent that such amounts
would otherwise be nondeductible by the Company pursuant to Section 162(m) of the Internal Revenue
Code of 1986, as amended. For purposes of the preceding sentence, the amount to be deferred with
respect to any compensation plans payable in Company shares shall be determined by taking into
consideration any fixed cash compensation to be received subsequent to the date on which shares are
distributable under such program. Notwithstanding any other provision of this Plan, deferrals
under this paragraph (e) shall be distributable only six (6) months after the Participant separates
from service in accordance with Section 6.

     (f) All elections under this Plan shall be made by written notice delivered to the Vice
President, Human Resources, of the Company specifying (i) the portion, if any, determined under
paragraph (c), of each category of the Participant’s compensation to be deferred for a year, as
described above, (ii), if applicable, the time of distribution, and (iii) the payment option as
provided in Section 6 for distributions.

     (g) Notwithstanding paragraph (f), any compensation earned after the end of the first month in
which a Participant under this Plan no longer is a Participant, as defined in Section 1, but
continues to be employed by the Company, shall not be deferred, provided however, the balance in
the Participant’s Deferral Accounts shall continue to be held and administered pursuant to the
Plan; provided further that the provisions of this paragraph (g) shall not apply for amounts earned
in 2005.

4. Deferral of Cash Compensation.

     (a) On the date the cash compensation (and effective January 1, 2008, stock compensation)
deferred under the Plan would have become payable to the Participant in the absence of an election
under the Plan to defer payment thereof, the amount of such deferred compensation shall be credited
to a Stock Deferral Account and/or any of the Cash Deferral Account investment portfolios
designated as available by the Committee from time to time. All Deferral Accounts shall be
established and maintained for each Participant in the Company’s accounting books and records and
the Company shall be under no obligation to purchase any investments designated by the Participant.
To the extent that, at the time amounts are credited to a Participant’s Deferral Accounts, any
federal, state or local payroll withholding tax applies (e.g., Medicare withholding tax), the
Participant shall be responsible for the payment of such amount to the Company and the Company
shall promptly remit such amount to the proper taxing authority.

     (b) Participant’s Cash Deferral Accounts shall be credited with any gains or losses equal to
those generated as if the Participant’s Cash Deferral Account balances had been invested in the
applicable investment portfolio(s) selected by the Participant

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     (c) A Participant’s deferred cash compensation (and effective for deferrals after January 1,
2008, stock compensation) credited to a Participant’s Stock Deferral Account shall be used to
determine the number of full and fractional units (“Units”) representing Company Common Shares
(“Shares”) which the deferred amount would purchase at the closing price for the Shares on the New
York Stock Exchange (“NYSE”) composite transactions reporting system on the date that the deferred
amount is credited pursuant to paragraph (a) and if Shares were not traded on that date on the
NYSE, then such computation shall be made as of the first preceding day on which Shares were so
traded. The Company shall credit the Participant’s Stock Deferral Account with the number of full
and fractional Units so determined. A Participant’s Stock Deferral Account shall be administered
in accordance with Section 5(b) through (e).

     (d) A Participant may elect pursuant to rules established by the Committee to transfer a
portion or all of the balance of any Deferral Account established under this Section 4 to any other
such Deferral Account.

     (e) Notwithstanding the foregoing, a Participant may elect to have any portion or all of the
Participant’s cash deferrals credited to any of the Deferral Accounts listed in paragraph (a) and
may transfer balances in accordance with paragraph (d) provided that the Participant is considered,
in the judgment of the Chief Executive Officer of the Company, to be on plan to meet the
Participant’s Company Share ownership guideline. Otherwise, a Participant must elect that at least
50% of any cash compensation (and effective January 1, 2008, stock compensation) deferral hereunder
be credited to a Stock Deferral Account and may not transfer any portion of the balance of the
Stock Deferral Account to another Deferral Account.

5. Deferral of Stock Compensation.

     (a) Prior to January 1, 2008, at the time that Shares are distributable to a Participant, who
has elected to defer the receipt thereof under Section 3(c) or (e), in lieu of Shares being issued,
there shall be credited to a separate Stock Deferral Account for the Participant, full stock
equivalent units (“Units”) which shall be established and maintained on the Company’s records. One
Unit shall be allocated to the Stock Deferral Account for each such Share. The balance of a Stock
Deferral Account established under this Section 5(a) pursuant to deferrals under Section 3(c)(iii)
or (iv) may not be transferred to any other Deferral Account.

     (b) As of each dividend payment date established by the Company for the payment of cash
dividends with respect to its Shares, the Company shall credit each separate Stock Deferral Account
of a Participant with an additional number of whole and/or fractional Units equal to:

	 	(i)	 	the product of (x) the dividend per Share which is payable
with respect to such dividend payment date, multiplied by (y) the number of
whole and fractional Units credited to the separate Stock Deferral Account of
a Participant as of such payment date;

divided by

	 	(ii)	 	The closing price of a Share on the dividend payment date (or
if Shares were not traded on that date, on the next preceding day on which Shares were so traded), as reported on the NYSE-composite tape.

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     (c) At no time prior to actual delivery of Shares pursuant to the Plan, shall the Company be
obligated to purchase or reserve Shares for delivery of a Participant and the Participant shall not
be a shareholder nor have any of the rights of a shareholder with respect to the Units credited to
the Participant’s Stock Deferral Accounts.

     (d) To the extent that, at the time Units are credited to a Stock Deferral Account of a
Participant, any federal, state or local payroll withholding tax applies (e.g., Medicare
withholding tax), the Participant shall be responsible for the payment of such amount to the
Company and the Company shall promptly remit such amount to the proper taxing authority.

     (e) In the event of any change in the number of outstanding Shares by reason of any stock
dividend, stock split up, recapitalization, merger, consolidation, exchange of shares or other
similar corporate change, the number of Units in each separate Stock Deferral Account of a
Participant shall be appropriately adjusted to take into account any such event.

6. Payment of Deferred Compensation.

     (a) In the event a Participant separates from service prior to commencing to receive scheduled
withdrawal payments of the Participant’s Deferral Accounts, such scheduled withdrawal payments, if
any, that have not commenced pursuant to Section 7, and the amount selected by the Participant to
be paid upon a separation from service, shall be paid to the Participant in: (i) a single lump sum;
(ii) annual, semi-annual or quarterly substantially equal installments over a period, not exceeding
twenty (20) years; or (iii) a specific percentage in a lump sum followed by annual, semi-annual or
quarterly substantially equal periodic installments over a period, not exceeding twenty (20) years,
as the Participant shall have selected pursuant to Section 3(f). Such periodic payments shall
begin or the lump sum payment shall be made, as the case may be, from the Participant’s Deferral
Accounts, at such time, within 60 days after not less than six (6) nor more than twelve (12) months
after the Participant’s separation from service, as the Participant shall have selected pursuant to
Section 3(f); provided, however, that if Participant has not selected a payment option with respect
to payment upon a separation from service, such amounts shall be paid in a lump sum within 60 days
after the six-month anniversary after Participant’s separation from service. Installment payments
made after the first installment or lump sum payment, as the case may be, will be made on the
annual, semi-annual or quarterly anniversary of the first installment or lump sum payment, as the
case may be, as elected pursuant to Section 3(f). Notwithstanding the foregoing, a Participant may
elect not less than twelve (12) months prior to the Participant’s separation from service, to
change the time or form of distribution of the Participant’s Deferral Accounts upon a separation
from service; provided, however that any such change shall be invalid if the effect of such change
is to accelerate distribution; provided, further that upon any such change, the distribution shall
be paid at least five (5) years after the date originally selected pursuant to Section 3(f).

     (b) The amount of each installment payable to a Participant from the Participant’s Cash
Deferral Accounts shall be determined by dividing the aggregate balance of such Participant’s Cash Deferral Accounts by the number of periodic installments
(including the current installment) remaining to be paid. Until a Participant’s Cash Deferral
Accounts has been completely distributed, the balance thereof remaining, from time to time, shall
be credited with gains and losses on a monthly basis as provided in

Section 4(b).

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     (c) The amount of any installment payable to a Participant from the Participant’s Stock
Deferral Accounts shall be determined by dividing the balance of the aggregate number of Units in
the Participant’s Stock Deferral Accounts by the number of periodic installments (including the
current installment) remaining to be paid and the quotient shall be the number of Shares that are
payable. If the determination of the installment payable from the Participant’s Stock Deferral
Accounts results in a fractional Share being payable, the installment payment shall exclude any
such fractional Share payment except that, in the final installment payment, any such fractional
Share shall be paid in cash in an amount as determined by the Committee. Until the Participant’s
Stock Deferral Accounts have been completely distributed, the balance in the Stock Deferral
Accounts shall continue to be credited with the dividend equivalents on such balances as provided
in Section 5(b).

     (d) In the event a Participant dies prior to receiving payment of the entire amount of the
Participant’s Deferral Accounts, the unpaid balance shall be paid to such beneficiary as the
Participant may have designated in writing to the Vice President, Human Resources, of the Company
as the beneficiary to receive any such post-death distribution under the Plan or, in the absence of
such written designation, to the Participant’s legal representative or to the beneficiary
designated in the Participant’s last will as the one to receive such distributions. Distributions
upon the death of a Participant shall commence within 60 days after the death of the Participant
in: (i) a single lump sum; (ii) annual, semi-annual or quarterly substantially equal installments
over a period, not exceeding twenty (20) years; or (iii) a specific percentage in a lump sum
followed by annual, semi-annual or quarterly substantially equal installments over a period, not
exceeding twenty (20) years as elected by the Participant pursuant to Section 3(f) and the amount
of each installment shall be computed as provided in Section 6(b), and (d) as the case may be;
provided, however, that if Participant has not selected a payment option with respect to payment
upon death, such amounts shall be paid to Participant’s beneficiary in a lump sum within 60 days
after the death of the Participant. Installment payments made after the first installment or lump
sum payment, as the case may be, will be made on the annual, semi-annual or quarterly anniversary
of the first installment or lump sum payment, as the case may be, as elected pursuant to Section
3(f). Notwithstanding the foregoing, a Participant may elect not less than twelve (12) months
prior to the Participant’s death, to change the time or form of distribution of the Participant’s
Deferral Accounts; provided, however that any such change shall be invalid if the effect of such
change is to accelerate distribution; provided, further that upon any such change, the distribution
shall be paid at least five (5) years after the date originally selected pursuant to Section 3(f).

     (e) In the event a Participant becomes disabled prior to the Participant’s separation from
service or scheduled withdrawal date, the unpaid balance shall be paid to the Participant
commencing within 60 days after the date of Participant’s disability in: (i) a single lump; (ii)
annual, semi-annual or quarterly substantially equal installments over a period, not exceeding
twenty (20) years; or (iii) a specified percentage in a lump sum followed by annual, semi-annual or
quarterly substantially installments over a period, not exceeding twenty (20) years as elected by
the Participant pursuant to Section 3(f) and the amount of each installment shall be computed as
provided in Section 6(b), and (d) as the case may be; provided, however, that if Participant has not selected a
payment option with respect to payment upon disability, such amounts shall be paid to Participant
in a single lump sum within 60 days after Participant’s disability. Installment

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payments made
after the first installment or lump sum payment, as the case may be, will be made on the annual,
semi-annual or quarterly anniversary of the first installment or lump sum payment, as the case may
be, as elected pursuant to Section 3(f). Notwithstanding the foregoing, a Participant may elect
not less than twelve (12) months prior to the Participant’s disability, to change the time or form
of distribution of the Participant’s Deferral Accounts, provided, however that any such change
shall be invalid if the effect of such change is to accelerate distribution; provided, further that
upon any such change, the distribution shall be paid at least five (5) years after the date
originally selected pursuant to Section 3(f). For purposes of this paragraph (e), the term
“disabled” means (A) the Participant is unable to engage in any substantial gainful activity by
reason of any medically determinable physical or mental impairment that can be expected to result
in death or can be expected to last for a continuous period of not less than 12 months; or (B) the
Participant is, by reason of any medically determinable physical or mental impairment that can be
expected to result in death or can be expected to last for a continuous period of not less than 12
months, receiving income replacement benefits for a period of not less than three months under an
accident and health plan covering employees of the Company.

     (f) Tax withholding for distributions under Sections 6 and 7 of Participant’s Stock Deferral
Accounts shall be made from those Shares otherwise issuable and shall be such number of Shares that
will provide for the federal, state and/or local income tax at the rates then applicable for
supplemental wages, unless otherwise requested by the Participant, but in no event less than the
statutory minimums for tax withholding.

     (g) For purposes under paragraph (f) of determining the number of Shares that are to be
withheld to provide for the tax withholding, Shares shall be valued at the closing price on the New
York Stock Exchange of a Share on the date the Shares are distributable (or if the Shares were not
traded on that date, on the next preceding day on which the Shares were so traded). If the
determination of the tax withholding would require the withholding of a fractional Share, the
Company shall withhold the nearest whole number of Shares needed to pay the tax withholding,
rounded up, and remit to the Participant in cash the amount of the excess after the withholding
taxes have been satisfied.

     (h) Payments from the Cash Deferral Accounts shall be made in cash and payments from the Stock
Deferral Accounts shall be made in Shares. The amount of any distribution pursuant to Sections 6
through 8 shall reduce the balance held in the Participant’s corresponding Deferral Accounts as of
the date of such distribution. Installment payments shall be made pro-rata from a Participant’s
Deferral Accounts.

7. Scheduled Withdrawal Accounts. Pursuant to Section 3 a Participant may elect to
receive part or all of the Participant’s deferrals under Section 3(c)(i) and (ii) (and for all
deferrals on or after January 1, 2008) in accordance with Participant’s elections for up to three
scheduled withdrawal accounts, and with respect to Participant’s deferrals prior to January 1, 2008
pursuant to Section 3(c)(iii) and 3(e) a Participant may elect to receive part or all of
Participant’s deferrals in accordance with Participant’s elections for up to three scheduled
withdrawal accounts, each of which shall commence within 60 days after the date elected by the
Participant pursuant to Section 3(f) in: (i) a single lump sum; (ii) annual, semi-annual or
quarterly substantially equal installments over a period, not exceeding twenty (20) years; or (iii)
a specified percentage in a lump sum followed by annual, semi-annual or quarterly substantially equal installments over a period, not exceeding
twenty (20) years and the amount of each installment shall be computed as provided in Section 6(b),
and (c) as the case may be. Installment payments made after

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the first installment or lump sum
payment, as the case may be, will be made on the annual, semi-annual or quarterly anniversary of
the first installment or lump sum payment, as the case may be, as elected pursuant to Section 3(f).
Notwithstanding the foregoing, a Participant may elect not less than twelve (12) months prior to
the Participant’s date of the scheduled withdrawal, to change the time or form of distribution of
the Participant’s Deferral Accounts, provided, however that any such change shall be invalid if the
effect of such change is to accelerate distribution; provided, further that upon any such change,
the distribution shall be paid at least five (5) years after the date originally selected pursuant
to Section 3(f).

8. Unforeseeable Emergency. The Committee may accelerate the distribution of part or all
of one or more of a Participant’s Deferral Accounts for reasons of an unforeseeable emergency that
cannot be met using other resources, as determined by the Committee pursuant to the terms of this
Section 8. For purposes of the Plan, an unforeseeable emergency is a severe financial hardship to
the Participant resulting from an illness or accident of the Participant, the Participant’s spouse,
the Participant’s beneficiary or the Participant’s dependent (as defined in Section 152 of the
Code, without regard to Section 152(b)(1), (b)(2) and (d)(1)(B)); the loss of Participant’s
property due to casualty (including the need to rebuild a home following damage to a home not
otherwise covered by insurance, for example, not as a result of a natural disaster); or other
similar extraordinary and unforeseeable circumstances arising as a result of events beyond the
control of the Participant. A distribution based on severe financial hardship shall not exceed the
amount reasonably necessary to satisfy the emergency need (which may include amounts necessary to
pay any Federal, state, local or foreign income taxes or penalties reasonably anticipated from the
distribution).

9. Non-assignability. None of the rights or interests in any of the Participant’s
Deferral Accounts shall, at any time prior to actual payment or distribution pursuant to the Plan,
be assignable or transferable in whole or in part, either voluntarily or by operation of law or
otherwise, and such rights and interest shall not be subject to payment of debts by execution,
levy, garnishment, attachment, pledge, bankruptcy or in any other manner.

10. Interest of Participant. The Company shall be under no obligation to segregate or
reserve any funds or other assets for purposes relating to the Plan and, except as set forth in
this Plan, no Participant shall have any rights whatsoever in or with respect to any funds or other
assets held by the Company for purposes of the Plan or otherwise. Each Participant’s accounts
maintained for purposes of the Plan merely constitute bookkeeping entries on records of the
Company, constitute the unsecured promise and obligation of the Company to make payments as
provided herein, and shall not constitute any allocation whatsoever of any cash, shares or other
assets of the Company or be deemed to create any trust or special deposit with respect to any of
the Company’s assets. Notwithstanding the foregoing provisions, nothing in this Plan shall
preclude the Company from setting aside Shares or funds in trust pursuant to one or more trust
agreements between a trustee and the Company. However, no Participant shall have any secured
interest or claim in any assets or property of the Company or any such trust and all Shares or
funds contained in such trust shall remain subject to the claims of the Company’s general
creditors.

11. Amendment. The Board of Directors of the Company, or the Organization and
Compensation Committee may, from time to time, amend or terminate the Plan, provided that no such amendment or termination of the Plan shall adversely affect a Participant’s
accounts as they existed immediately before such amendment or termination or the manner of
distribution thereof, unless such Participant shall have consented thereto in writing. Notice of
any amendment or termination of the Plan shall be given promptly to all Participants.

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12. Plan Implementation. This Plan is adopted and effective for deferrals of compensation
earned for calendar years beginning on or after January 1, 2005 and amended and restated January 1,
2008.

13. Section 409A Transition Elections. A Participant who prior to January 1, 2008 has
made an initial deferral election under this Plan may change the form and/or time of payment with
respect to any or all of such elections; provided however that (a) no such election may be made for
amounts otherwise payable under this Plan during 2007, and (b) no payment pursuant to such election
may be payable prior to May 1, 2008.

8EX-10.9

 

Exhibit 10.9

THE LUBRIZOL CORPORATION

2005 EXECUTIVE COUNCIL

DEFERRED COMPENSATION PLAN

(As Amended and Restated January 1, 2008)

1. Purpose. The purpose of this 2005 Executive Council Deferred Compensation Plan (the
“Plan”) is to permit a person who is a member of the Executive Council (sometimes hereinafter
referred to as the “Member” or as the “Participant”), and who is employed by The Lubrizol
Corporation (the “Company”), to defer a portion of such Member’s compensation earned in calendar
years beginning on or after January 1, 2005, as provided in this Plan.

2. Administration. The Plan shall be administered by the Organization and Compensation
Committee of the Board of Directors of the Company (the “Committee”). The Committee’s
interpretation and construction of all provisions of the Plan shall be binding and conclusive upon
all Participants and their heirs and/or successors.

3. Right to Defer Compensation.

(a) A Member may, at any time prior to January 1 of a given calendar year, elect, for one the
calendar year commencing with the calendar year immediately following the election (“Participation
Year”), to defer under the Plan a pre-selected fixed dollar amount or percentage up to 90 percent
of such Member’s annual variable compensation, if any (the “deferred compensation”), under the
Company’s annual incentive plan (“Incentive Plan”), which such Participant may thereafter be
entitled to receive for services performed during the Participation Year; provided, however that
the actual amount deferred will be the elected amount less any applicable withholding taxes.
Notwithstanding the foregoing, a Member may prior to March 15, 2005 make an election relating to
deferred compensation with respect to services performed on or after January 1, 2005 and on or
before December 31, 2005.

(b) The election under this Section 3 shall take effect on the first day of the elected
Participation Year and such election shall be irrevocable for any elected Participation Year once
such Participation Year shall have commenced.

(c) Notwithstanding paragraphs (a) and (b), the first year a Participant becomes eligible to
participate in the Plan, he may make an initial deferral election within 30 days after he becomes
eligible to participate but only with respect to compensation paid for services performed after the
election.

(d) All elections under this Plan shall be made by written notice (on a form provided by the
Company) specifying the deferred compensation, if any, determined under paragraph (a).

(e) A Participant must make an election for each Participation Year. Notwithstanding
paragraph (b) and the first sentence of this paragraph (e), any variable compensation earned after
the end of the first month in which a Participant under this Plan ceases to be a Member, as defined
in Section 1, but continues to be employed by the Company, shall not be deferred, provided however,
the balance in the Participant’s Stock Deferral Accounts shall continue to be held and administered
pursuant to the Plan.

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(f) All notices by a Participant under the Plan shall be in writing and shall be given to the
Company’s Vice President, Human Resources.

4. Stock Deferral Accounts and Stock Matching Accounts.

(a) At the close of business of the day on which the Incentive Plan deferred compensation
would have been payable to the Participant in the absence of the election under the Plan to defer
payment thereof, there shall be credited to a separate Stock Deferral Account and Stock Matching
Account for each Participant full and fractional stock equivalent units (“Units”) which shall be
established as hereinafter provided and shall be maintained for each Participant on the Company’s
records.

(b) The number of full and fractional Units that shall be credited to a separate Stock
Deferral Account for a Participant shall be equal to an amount determined by dividing the
Participant’s deferred compensation for the applicable Participation Year by the average of the
closing price for Lubrizol Common Shares (“Shares”) on the New York Stock Exchange (“NYSE”)
composite transactions reporting system (“composite tape”) for each of the ten (10) consecutive
trading days commencing on the fourth business day following the release of earnings for such
Participation Year.

(c) The number of full and fractional Units that shall be credited to a separate Stock
Matching Account for a Participant shall be equal to an amount determined by multiplying the number
of Units determined in paragraph (b) by .25.

(d) To the extent that, at the time Units are credited to a Stock Deferral Account Stock
Matching Account of a Participant, any federal, state or local payroll withholding tax applies
(e.g., Medicare withholding tax), the Participant shall be responsible for the payment of such
amount to the Company and the Company shall promptly remit such amount to the proper taxing
authority.

(e) The amount of deferred compensation used in the formulae set forth in paragraphs (b) and
(c) shall not constitute sums due and owing to Participant. Such amounts shall be used solely as
part of the formulae to determine the number of full and fractional Units.

(f) As of each dividend payment date established by the Company for the payment of cash
dividends with respect to its Shares, the Company shall credit each separate Stock Deferral
Account and Stock Matching Account of a Participant with an additional number of whole and/or
fractional Units equal to:

	 	(i)	 	the product of (x) the dividend per Share which is payable with
respect to such dividend payment date, multiplied by (y) the number of whole and
fractional Units credited to the separate Stock Deferral Account and Stock
Matching Account, respectively, of the Participant as of such payment date;

divided by

	 	(ii)	 	the closing price of a Share on the dividend payment date (or if Shares were not traded
on that date, on the next preceding day

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on which Shares were so traded), as reported on the NYSE-composite tape.

(g) At no time prior to actual delivery of Shares pursuant to the Plan shall the Company be
obligated to purchase or reserve Shares for delivery to any Participant and a Participant shall not
be a shareholder or have any of the rights of a shareholder with respect to the Units credited to
each separate Stock Deferral Account or Stock Matching Account of a Participant.

5. Payment of Deferred Compensation.

(a) All Units credited to a separate Stock Deferral Account and Stock Matching Account of
Participant, including dividend equivalents thereon, shall be payable to the Participant in a lump
sum within 60 days after the third anniversary from the first date Units were credited to such
separate Stock Deferral Account and Stock Matching Account of the Participant under Section 4(a)
for a particular Participation Year unless the Participant elects at the time of deferral under
Section 3 to have the Units paid six (6) months after the Participant’s separation from service or
upon another specified date; provided, however, that after the Participant makes the deferral
election under Section 5, the Participant may elect once for any Participation Year of deferral, to
change the date of distribution to another in-service year or six (6) months after the Participant
has separated from service; provided further, that any such modification must be made in writing at
least twelve (12) months prior to the original date of distribution; provided further, that the
deferred distribution date must be at least five (5) years after the date originally selected.
Amounts so further deferred will be paid within 60 days after the date selected.

(b) All distributions or payments of Units to a Participant in the Participant’s Stock
Deferral Account shall be made in Shares equal to the number of whole Units credited to the
separate Stock Deferral Account(s) of the Participant which become payable in accordance with
Section 5(a). Any fractional number of Units shall be paid in cash in lieu of Shares based on the
closing price for a Share on the NYSE composite tape on the date the Stock Deferral Account(s)
become payable.

(c) All distributions or payments of Units to a Participant in the Participant’s Stock
Matching Account shall be made in cash equal to the number of whole Units credited to the separate
Stock Matching Account(s) of the Participant, which become payable in accordance with Section 5(a)
multiplied by the closing price for a Share on the NYSE composite tape on the date the Stock
Matching Account(s) become payable.

(d) To the extent that, at the time Shares are distributed to a Participant, any federal,
state or local payroll withholding tax applies, tax withholding for distributions shall be made
from those Shares that would provide for the federal, state and/or local income tax at the rates
then applicable for supplemental wages, unless otherwise requested by the Participant, but in no
event less than the statutory minimums for tax withholding. For purposes of determining
the number of Shares that are to be withheld to provide for the tax withholding, Shares shall be
valued at the closing price on the New York Stock Exchange of a Share on the date the Shares are
distributable (or if the Shares were not traded on that date, on the next preceding day on which
the Shares were so traded). If the determination of the tax withholding would require the
withholding of a fractional Share, the Company shall withhold the nearest whole number of Shares

3

 

needed to pay the tax withholding, rounded up, and remit to the Participant in cash the
amount of the excess after the withholding taxes have been satisfied.

(e) In the event a Participant dies prior to receiving payment of the entire amount in each
separate Stock Deferral Account and Stock Matching Account of the Participant, the unpaid balance
shall be paid within 60 days after the date of death to such beneficiary as the Participant may
have designated in writing to the Vice President, Human Resources, of the Company as the
beneficiary to receive any such post-death distribution under the Plan or, in the absence of such
written designation, to the Participant’s legal representative or to the beneficiary designated in
the Participant’s last will as the one to receive such distributions.

(f) To the extent the Committee deems necessary, the Shares distributed to a Participant
pursuant to Section 5(a) or 6 or to a beneficiary pursuant to Section 5(e) may contain such
restrictions on the right of immediate transfer as the Committee may reasonably determine.

6. Unforeseeable Emergency. The Committee may accelerate the distribution of part or all
of one or more of a Participant’s separate Stock Deferral Accounts and Stock Matching Account for
reasons of an unforeseeable emergency that cannot be met using other resources, as determined by
the Committee pursuant to the terms of this Section 8. For purposes of the Plan, an unforeseeable
emergency is a severe financial hardship to the Participant resulting from an illness or accident
of the Participant, the Participant’s spouse, the Participant’s beneficiary or the Participant’s
dependent (as defined in Section 152 of the Code, without regard to Section 152(b)(1), (b)(2) and
(d)(1)(B)); the loss of Participant’s property due to casualty (including the need to rebuild a
home following damage to a home not otherwise covered by insurance, for example, not as a result of
a natural disaster); or other similar extraordinary and unforeseeable circumstances arising as a
result of events beyond the control of the Participant. A distribution based on severe financial
hardship shall not exceed the amount reasonably necessary to satisfy the emergency need (which may
include amounts necessary to pay any Federal, state, local or foreign income taxes or penalties
reasonably anticipated from the distribution).

7. Non-assignability. None of the rights or interests in any of the Participant’s
separate Stock Deferral Accounts and Stock Matching Accounts shall, at any time prior to actual
payment or distribution pursuant to the Plan, be assignable or transferable in whole or in part,
either voluntarily or by operation of law or otherwise, and such rights and interest shall not be
subject to payment of debts by execution, levy, garnishment, attachment, pledge, bankruptcy or in
any other manner.

8. Interest of Participant. The Company shall be under no obligation to segregate or
reserve any funds or other assets for purposes relating to the Plan and, except as set forth in
this Plan, no Participant shall have any rights whatsoever in or with respect to any funds or other
assets held by the Company for purposes of the Plan or otherwise. Each Participant’s separate
Stock Deferral Accounts and Stock Matching Accounts maintained for purposes of the Plan merely
constitutes a bookkeeping entry on records of the Company, constitutes the unsecured promise and
obligation of the Company to make payments as provided herein, and shall not constitute any
allocation whatsoever of any cash or other assets of the Company or be deemed to create any trust
or special deposit with respect to any of the Company’s assets. Notwithstanding the foregoing
provisions, nothing in this Plan shall preclude the Company from setting aside Shares or

4

 

funds in trust pursuant to one or more trust agreements between a trustee and the Company.
However, no Participant shall have any secured interest or claim in any assets or property of the
Company or any such trust and all Shares or funds contained in such trust shall remain subject to
the claims of the Company’s general creditors.

9. Miscellaneous. In the event of any change in the number of outstanding Shares by
reason of any stock dividend, stock split up, recapitalization, merger, consolidation, exchange of
shares or other similar corporate change, the number of Units credited to each separate Stock
Deferral Account and Stock Matching Account of a Participant shall be appropriately adjusted to
take into account any such event.

10. Amendment. The Board of Directors of the Company, or the Organization and
Compensation Committee, may, from time to time, amend or terminate the Plan, provided that no
such amendment or termination of the Plan shall adversely affect any Stock Deferral Account or
Stock Matching Account of a Participant as it existed immediately before such amendment or
termination or the manner of distribution thereof, unless such Participant shall have
consented thereto in writing. Notice of any amendment or termination of the Plan shall be
given promptly to all Participants.

11. Plan Implementation. This Plan is adopted and effective for deferrals of variable
compensation earned for calendar years beginning on and after January 1, 2005, and amended and
restated January 1, 2008.

12. Section 409A Transition Elections. A Participant who prior to January 1, 2008 has
made an initial deferral election under this Plan may change the form and/or time of payment with
respect to any or all of such elections provided however, that any election to change the time
and/or form of payment shall be made prior to December 1, 2007; provided however that (a) no such
election may be made for amounts otherwise payable under this Plan during 2007, and (b) no payment
pursuant to such election may be payable prior May 1, 2008.

5

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