Document:

exv10w1

 

	 	 	 	 	 

Exhibit 10.1

THE LUBRIZOL CORPORATION 2005 STOCK INCENTIVE PLAN

(As Amended December 12, 2006)

Section 1. Purpose.

     The purposes of The Lubrizol Corporation 2005 Stock Incentive Plan are to encourage selected
employees of The Lubrizol Corporation and its Subsidiaries and Outside Directors of the Company to
acquire a proprietary and vested interest in the growth and performance of the Company, to generate
an increased incentive to contribute to the Company’s future success and prosperity, thus enhancing
the value of the Company for the benefit of shareholders, and to enhance the ability of the Company
and its Subsidiaries to attract and retain individuals of exceptional talent upon whom, in large
measure, the sustained progress, growth and profitability of the Company depends.

Section 2. Definitions.

As used in the Plan, the following terms have the meanings set forth below:

     (a) “Award” means any Option, Stock Appreciation Right, Restricted Stock Award,
Restricted Stock Unit Award, or Stock Award granted pursuant to the provisions of the Plan.

     (b) “Award Agreement” means a written document evidencing any Award granted hereunder,
signed by the Company and delivered to the Participant or Outside Director, as the case may
be.

     (c) “Board” means the Board of Directors of the Company.

     (d) “Code” means the Internal Revenue Code of 1986, as amended from time to time.

     (e) “Committee” means a committee of not less than three (3) Outside Directors of the
Board, each of whom must be a “disinterested person” within the meaning of Rule 16b-3(d)(3)
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of
1934, as amended (the “Exchange Act”), or any successor rule or statute.

     (f) “Company” means The Lubrizol Corporation.

     (g) “Employee” means any employee of the Company or of any Subsidiary.

     (h) “Fair Market Value” means the closing price of a Share on the New York Stock
Exchange on the Grant Date (in the case of a Grant), or any other relevant date.

     (i) “Full-value Awards” means Awards that result in the Company transferring the full
value of any underlying Share issued in the transaction. Full-value Awards will include

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all
Restricted Stock Awards, performance shares, performance rights, Stock-settled SARs, and
certain other stock based Awards.

     (j) “Grant Date” means the date on which the Board approves the grant of an Option,
Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit Award or Stock
Award, and, with respect to a Restricted Stock Unit Award granted to an Outside Director,
the date specified pursuant to Section 10 on which such Award is granted.

     (k) “Incentive Stock Option” means an Option that is intended to meet the requirements
of Section 422A of the Code or any successor provision thereto.

     (l) “Non-Statutory Stock Option” means an Option that is not intended to be an
Incentive Stock Option.

     (m) “Option” means an option to purchase Shares granted hereunder.

     (n) “Option Price” means the purchase price of each Share under an Option.

     (o) “Outside Director” means a member of the Board who is not an employee of the
Company or of any Subsidiary.

     (p) “Participant” means an Employee who is selected by the Committee to receive an
Award under the Plan.

     (q) “Plan” means The Lubrizol Corporation 2005 Stock Incentive Plan.

     (r) “Restricted Stock Award” means an award of restricted Shares under Section 8
hereof.

     (s) “Restricted Stock Unit Award” means an award of restricted stock units under
Section 10 hereof.

     (t) “Restriction Period” means the period of time specified in an Award Agreement
during which the following conditions remain in effect: (i) certain restrictions on the sale
or other disposition of Shares awarded under the Plan, (ii) subject to the terms of the
applicable Award Agreement, the continued employment of the Participant, and (iii) other
conditions forth in the applicable Award Agreement.

     (u) “Shareholders’ Meeting” means the annual meeting of shareholders of the Company in
each year.

     (v) “Shares” means common shares without par value of the Company.

     (w) “Stock Appreciation Right” means the right to receive a payment in cash or in
Shares, or in any combination thereof, from the Company equal to the excess of the Fair
Market Value of a stated number of Shares at the exercise date over a fixed price for such
Shares.

     (x) “Stock Award” means the grant of Shares under the Plan.

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     (y) “Stock-settled SAR” means the grant of a Stock Appreciation Right whereby the
appreciation of the underlying Shares (the value to the Employee from the exercise of any
Stock Appreciation Right grant) is settled in Shares, either for the full number of
Shares or the appreciation net of any tax obligation.

     (z) “Subsidiary” means a corporation which is at least 80% owned, directly or
indirectly, by the Company.

     (aa) “Voting Stock” means the then-outstanding securities entitled to vote generally in
the election of directors of the Company.

Section 3. Administration.

     The Plan is administered by the Committee. Members of the Committee are appointed by and
serve at the pleasure of the Board, and may resign by written notice filed with the Chairman of the
Board or the Secretary of the Company. A vacancy on the Committee will be filled by the appointment
of a successor member by the Board. Subject to the express provisions of this Plan, the Committee
has conclusive authority to select Employees to be Participants for Awards and determine the type
and number of Awards to be granted, to construe and interpret the Plan, any Award granted
hereunder, and any Award Agreement entered into hereunder, and to establish, amend, and rescind
rules and regulations for the administration of this Plan and has additional authority as the Board
may from time to time determine to be necessary or desirable. Notwithstanding the foregoing, the
Committee does not have the discretion with respect to Restricted Stock Awards granted to Outside
Directors pursuant to Section 10 as to prevent any Award granted under this Plan from meeting the
requirements for exemption from Section 16(b) of the Exchange Act, as set forth in Rule 16b-3
thereunder or any successor rule or statute.

Section 4. Shares Subject to the Plan.

     (a) Subject to adjustment as provided in the Plan, the maximum number of shares as to
which Awards may be granted under this Plan is 4,000,000 Shares, of which no more than
2,000,000 Shares can be settled as full-value Awards; provided, however, that no more than
500,000 Shares will be available for grant to any Participant during a calendar year. In
addition to the stated maximums described above, this Plan provides the Committee with the
flexibility to convert the Shares reserved solely for Options and the grant of Stock
Appreciation Rights into “full value” awards (e.g., restricted stock, performance shares,
etc.). Specifically:

     (i) For every Option or Stock Appreciation Right granted, the number of Shares
available for grant shall be reduced by one Share for every one Share granted;

     (ii) For each of the first 2,000,000 Shares granted as Awards other than
Options or the grant of a Stock Appreciation Right, the number of Shares available
for grant shall be reduced by one Share for every one Share granted;

     (iii) For any Awards settled as a full-value Award in excess of the 2,000,000
Share limit, the number of Shares available for grant shall be reduced by three
Shares for every one Share granted

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For example, if we issue 2,000,000 Shares as performance shares prior to exhausting
our pool of shares for Options, the Committee has the flexibility to
convert a portion of the remaining options into other Award types, but it must be
consistent with the 3-to-1 ratio described above.

     The Company believes this provision provides for the maximum equity plan design
flexibility while continuing to protect the long-term interests of shareholders.

     (b) Any Shares issued hereunder may consist, in whole or in part, of authorized and
unissued Shares or treasury shares. If: (i) any Shares subject to any Award granted
hereunder are forfeited, (ii) any Award otherwise terminates without the issuance of Shares
or payment of other consideration in lieu of Shares; (iii) Shares are used to pay the
exercise price of an Option; or (iv) Shares are withheld from issuance to pay withholding
taxes, the Shares subject to the Award, to the extent of any such forfeiture, termination or
withholding, will not again be available for issuance under the Plan.

     (c) The number of Shares which remain available for issuance pursuant to this Plan,
together with Shares subject to outstanding Awards, at the time of any change in the
Company’s capitalization, including stock splits, stock dividends, mergers, reorganizations,
consolidations, recapitalizations, or other changes in corporate structure will be
appropriately and proportionately adjusted to reflect such change in capitalization.

Section 5. Eligibility.

     Any Employee is eligible to be selected as a Participant.

Section 6. Stock Options.

     Non-Statutory Stock Options and Incentive Stock Options may be granted hereunder to
Participants either separately or in conjunction with other Awards granted under the Plan. Any
Option granted to a Participant under the Plan will be evidenced by an Award Agreement in the form
as the Committee may from time to time approve. Any Option will be subject to the following terms
and conditions and to any additional terms and conditions, not inconsistent with the provisions of
the Plan, as the Committee deems desirable.

     (a) Option Price. The purchase price per Share under an Option will be fixed by the
Committee in its sole discretion; provided that the purchase price will not be less than one
hundred percent (100%) of the Fair Market Value of the Share on the Grant Date of the
Option. Payment of the Option Price may be made in cash, Shares, or a combination of cash
and Shares, as provided in the Award Agreement relating thereto.

     (b) Option Period. The term of each Option will be fixed by the Committee in its sole
discretion; provided that no Incentive Stock Option may be exercisable after the expiration
of ten years from the Grant Date.

     (c) Exercise of Option. Options may be exercisable to the extent of fifty percent (50%)
of the Shares subject thereto after one year from the Grant Date, seventy-five percent (75%)
of such Shares after two years from the Grant Date, and one hundred percent (100%) of such
Shares after three years from the Grant Date, subject to any

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provisions respecting the
exercisability of Options that may be contained in an Award Agreement.

     (d) Incentive Stock Options. The aggregate Fair Market Value of the Shares with respect
to which Incentive Stock Options held by any Participant which are exercisable for the first
time by such Participant during any calendar year under the Plan (and under any other
benefit plans of the Company, of any parent corporation, or Subsidiary) will not exceed
$100,000 or, if different, the maximum limitation in effect at the Grant Date under Section
422A of the Code, or any successor provision, and any regulations promulgated thereunder.
The terms of any Incentive Stock Option granted hereunder will comply in all respects with
the provisions of Section 422A of the Code, or any successor provision, and any regulations
promulgated thereunder.

Section 7. Stock Appreciation Rights.

     Stock Appreciation Rights may be granted hereunder to Participants either separately or in
conjunction with other Awards granted under the Plan and may, but need not, relate to a specific
Option granted under Section 6. The provisions of Stock Appreciation Rights need not be the same
with respect to each Participant. Any Stock Appreciation Right related to a Non-Statutory Stock
Option may be granted at the same time such Option is granted or at any time thereafter before
exercise or expiration of such Option. Any Stock Appreciation Right related to an Incentive Stock
Option must be granted at the same time such Option is granted. Any Stock Appreciation Right
related to an Option will be exercisable only to the extent the related Option is exercisable. In
the case of any Stock Appreciation Right related to any Option, the Stock Appreciation Right or
applicable portion thereof terminates and is no longer exercisable upon the termination or exercise
of the related Option. Similarly, upon exercise of a Stock Appreciation Right as to some or all of
the Shares covered by a related Option, the related Option will be canceled automatically to the
extent of the Stock Appreciation Rights exercised, and such Shares will not thereafter be eligible
for grant under Section 4(a). The Committee may impose any conditions or restrictions on the
exercise of any Stock Appreciation Right as it deems appropriate.

Section 8. Restricted Stock Awards.

     (a) Issuance. Restricted Stock Awards may be issued hereunder to Participants, either
separately or in conjunction with other Awards granted under the Plan. Each Award under this
Section 8 will be evidenced by an Award document from the Company which will specify the
vesting schedule, any rights of acceleration and such other terms and conditions as the
Board determines, which need not be the same with respect to each Participant.

     (b) Registration. Shares issued under this Section 8 will be evidenced by issuance of a
stock certificate or certificates registered in the name of the Participant bearing the
following legend and any other legend required by, or deemed appropriate under, any federal
or state securities laws:

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The sale or other transfer of the common shares represented by this certificate is
subject to certain restrictions set forth in the Award document granted to
                                        

(the registered owner) by The Lubrizol Corporation dated
                    , under The Lubrizol Corporation 2005 Stock Incentive Plan. A copy
of the Plan and Award document may be obtained from the Secretary of The Lubrizol
Corporation.

Unless otherwise provided in the Award document from the Company, the certificates will be
retained by the Company until the expiration of the Restriction Period. Upon the
expiration of the Restriction Period, the Company will (i) have the legend removed from the
certificates for the Shares to which a Participant is entitled in accordance with the Award
document from the Company and (ii) release the Shares to the custody of the Participant.

     (c) Forfeiture. Except as otherwise determined by the Committee at the Grant Date, upon
separation of service of the Participant for any reason during the Restriction Period, all
Shares still subject to restriction will be forfeited by the Participant and retained by the
Company; provided that in the event of a Participant’s retirement, permanent disability,
death, or in cases of special circumstances, the Committee may, in its sole discretion, when
it finds that a waiver would be in the best interests of the Company, waive in whole or in
part any or all remaining restrictions with respect to the Participant’s Shares. In such
case, unrestricted Shares will be issued to the Participant at the time determined by the
Committee.

     (d) Rights as Shareholders. At all times during the Restriction Period, Participants
will be entitled to full voting rights with respect to all Shares awarded under this Section
8 and will be entitled to dividends with respect to the Shares.

Section 9. Stock Awards.

     Awards of Shares may be granted hereunder to Participants, either separately or in conjunction
with other Awards granted under the Plan. Subject to the provisions of the Plan, the Committee has
the sole and complete authority to determine (i) the Employees to whom Awards will be granted, (ii)
the time or times at which the Awards will be granted, (iii) the number of Shares to be granted
pursuant to the Awards, and (iv) all other conditions of the Awards. Conditions may include
issuance of Shares at the time of the Award is granted or issuance of Shares at a time or times
subsequent to the time the Award is granted, which subsequent times may be specifically established
by the Committee and/or may be determined by reference to the satisfaction of one or more
performance measures specified by the Committee. The provisions of Stock Awards need not be the
same with respect to each Participant.

Section 10. Outside Directors’ Restricted Stock Unit Awards.

     On the close of business on the date of each Annual Meeting of Shareholders, each
Outside Director will automatically be granted a number of Restricted Stock Units equal to
an amount calculated by dividing $70,000 by the Fair Market Value of a Share on the Grant
Date, which will be subject to the following terms and conditions and to any additional
terms and conditions, not inconsistent with the provisions of the Plan, as are contained in
the applicable Award Agreement.

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     (a) Vesting. Restricted Stock Unit Awards granted pursuant to this Section 10 will
vest upon the earliest to occur of the following dates:

     (i) one year after the Grant Date;

     (ii) separation from service under a retirement plan or policy of the Company;

     (iii) death while serving as a director; or

     (iv) Change of Control pursuant to Section 11.

Section 11. Change in Control.

     Notwithstanding the provisions of Sections 6(c) and 10(a), outstanding Options will become
100% exercisable and any other outstanding Awards hereunder will become fully vested and without
any restrictions upon the occurrence of any Change in Control (as hereafter defined) of the
Company; except that no Option may be exercised prior to the end of six months from the Grant Date.

     Notwithstanding the provisions of Section 8 and the applicable Award Agreement, any
outstanding Restricted Stock Awards will become fully vested and without any restrictions upon the
occurrence of any Change in Control of the Company.

     For all purposes of the Plan, a “Change in Control” will occur if any of the following events
occurs:

     (a) The Company is merged, consolidated or reorganized into or with another corporation
or other legal person, and immediately after such merger, consolidation or reorganization
less than a majority of the combined voting power of the then-outstanding securities of such
corporation or person immediately after such transaction are held in the aggregate by the
holders of Voting Stock of the Company immediately prior to such transaction;

     (b) The Company sells all or substantially all of its assets to any other corporation
or other legal person, and less than a majority of the combined voting power of the
then-outstanding securities of such corporation or person immediately after such sale are
held in the aggregate by the holders of Voting Stock of the Company immediately prior to
such sale;

     (c) There is a report filed on Schedule 13D or Schedule 14D-l (or any successor
schedule, form or report), each as promulgated pursuant to the Exchange Act, disclosing that
any person (as the term “person” is used in Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act) has become the beneficial owner (as the term “beneficial owner” is defined
under Rule 13(d)(3) or any successor rule or regulation promulgated under the Exchange Act)
of securities representing 20% or more of the Voting Stock;

     (d) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8-K

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or Schedule 14A
(or any successor schedule, form or report or item therein) that a change in control of the
Company has or may have occurred or will or may occur in the future pursuant to any
then-existing contract or transaction; or

     (e) If during any period of two consecutive years, individuals who at the beginning of
any such period constitute the Directors of the Company cease for any reason to constitute
at least a majority thereof, provided, however, that for purposes of this Section 11(e),
each Director who is first elected, or first nominated for election by the Company’s
stockholders, by a vote of at least two thirds of the Directors of the Company (or a
committee thereof)
then still in office who were Directors of the Company at the beginning of any such
period will be deemed to have been a Director of the Company at the beginning of such
period.

     Notwithstanding the foregoing provisions of Section 11(c) or 11(d) hereof, unless otherwise
determined in a specific case by majority vote of the Board, a “Change in Control” will not occur
for purposes of the Plan solely because (i) the Company, (ii) an entity in which the Company
directly or indirectly beneficially owns 50% or more of the voting securities, or (iii) any
employee stock ownership plan or any other employee benefit plan sponsored by the Company, either
files or becomes obligated to file a report or a proxy statement under or in response to Schedule
13D, Schedule 14D-l, Form 8-K or Schedule 14A (or any successor schedule, form or report or item
therein) under the Exchange Act, disclosing beneficial ownership by it of shares of Voting Stock,
whether in excess of 20% or otherwise, or because the Company reports that a change in control of
the Company has or may have occurred or will or may occur in the future by reason of such
beneficial ownership.

Section 12. Amendments and Termination.

     The Board may, at any time, amend, alter or terminate the Plan, but no amendment, alteration,
or termination may be made that would impair the rights of an Outside Director or Participant under
an Award previously granted, without the Outside Director’s or Participant’s consent, or that
without the approval of the shareholders would:

     (a) except as is provided in Sections 4(b) and 13(c) of the Plan, increase the total
number of Shares which may be issued under the Plan;

     (b) change the class of employees eligible to participate in the Plan; or

     (c) materially increase the benefits accruing to Participants under the Plan;

so long as such approval is required by law or regulation; provided that, as long as required by
law or regulation, the provisions of Section 10 hereof may not be amended or altered more than once
every six (6) months, other than to comport with changes in the Code, the Employee Retirement
Income Security Act, or the rules thereunder.

     The Committee may amend the terms of any Award heretofore granted (except, with respect to
Restricted Stock Awards granted pursuant to Section 10 hereof, only to the extent not inconsistent
with Rule 16b-3 under the Exchange Act or any successor rule or statute), prospectively or
retroactively, but no such amendment may impair the rights of any Participant or Outside Director
without his consent.

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Section 13. General Provisions.

     (a) No Option or other Award may be assignable or transferable by a Participant or an
Outside Director otherwise than by will or the laws of descent and distribution, and Options
and Stock Appreciation Rights may be exercised during the Participant’s lifetime only by the
Participant, or, if permissible under applicable law, by the guardian or legal
representative of the Participant.

     (b) The term of each Award will be for a period of months or years from its Grant Date
as may be determined by the Committee or as set forth in the Plan; provided that in no
event may the term of any Incentive Stock Option or any Stock Appreciation Right
related to any Incentive Stock Option exceed a period of ten (10) years from the Grant Date.

     (c) In the event of a merger, reorganization, consolidation, recapitalization, stock
dividend or other change in corporate structure such that Shares are changed into or become
exchangeable for a larger or smaller number of Shares, thereafter the number of Shares
subject to outstanding Awards granted to Participants and to any Shares subject to Awards to
be granted to Participants pursuant to this Plan will be increased or decreased, as the case
may be, in direct proportion to the increase or decrease in the number of Shares by reason
of such change in corporate structure; provided, however, that the number of Shares will
always be a whole number, and the purchase price per Share of any outstanding Options will,
in the case of an increase in the number of Shares, be proportionately reduced, and, in the
case of a decrease in the number of Shares, be proportionately increased. The above
adjustment will also apply to any Shares subject to Restricted Stock Awards granted to
Outside Directors pursuant to the provisions of Section 10.

     (d) No Employee may have any claim to be granted any Award under the Plan and there is
no obligation for uniformity of treatment of Employees or Participants under the Plan.

     (e) The prospective recipient of any Award under the Plan will not, with respect to the
Award, be deemed to have become a Participant, or to have any rights with respect to the
Award, until and unless the recipient complies with the then applicable terms and
conditions.

     (f) All certificates for Shares delivered under the Plan pursuant to any Award will be
subject to any stock-transfer orders and other restrictions as the Committee deems advisable
under the rules, regulations, and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Shares are then listed, and any applicable
federal or state securities law, and the Committee may cause a legend or legends to be put
on any such certificates to make appropriate reference to such restrictions.

     (g) Except as otherwise required in any applicable Award document or by the terms of
the Plan, Participants will not be required, under the Plan, to make any payment other than
the rendering of services.

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     (h) The Company is authorized to withhold from any payment under the Plan, whether the
payment is in Shares or cash, all withholding taxes due in respect of the payment hereunder
and to take such other action as may be necessary in the opinion of the Company to satisfy
all obligations for the payment of such taxes.

     (i) Nothing contained in this Plan prevents the Board from adopting other or additional
compensation arrangements, subject to shareholder approval if such approval is required; and
such arrangements may be either generally applicable or applicable only in specific cases.

     (j) Nothing in the Plan interferes with or limits in any way the right of the Company
or any Subsidiary to terminate any Participant’s employment at any time, nor does the Plan
confer upon any Participant any right to continued employment with the Company or any
Subsidiary.

Section 14. Effective Date of the Plan.

     The Plan will be effective upon adoption of the Plan by the Board of Directors of the Company.
The Plan will be submitted to the shareholders of the Company for approval within one year after
its adoption by the Board of Directors, and if the Plan is not approved by the shareholders, the
Plan will be void and of no effect. Any Awards granted under the Plan prior to the date the Plan
is submitted for approval by the shareholders will be void if the shareholders do not approve the
Plan.

Section 15. Expiration of the Plan.

     Awards may be granted under this Plan at any time prior to April 1, 2010, on which date the
Plan will expire but without affecting any outstanding awards.

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Exhibit 10.2

THE LUBRIZOL CORPORATION

2005 EXCESS DEFINED CONTRIBUTION PLAN

(As Amended)

     The Lubrizol Corporation hereby establishes, effective as of January 1, 2005, The Lubrizol
Corporation 2005 Excess Defined Contribution Plan (the “Plan”) for the purpose of supplementing the
benefits of certain employees, as permitted by Section 3(36) of the

     Employee Retirement Income Security Act of 1974 and providing deferred compensation benefits to a
select group of management and highly compensated employees.

ARTICLE I

DEFINITIONS

     1.1 Definitions. For the purposes hereof, the following words and phrases shall have
the meanings indicated, unless a different meaning is plainly required by the context:

     (a) Beneficiary. The term “Beneficiary” shall mean the person or persons who
shall be designated by a Participant to receive distribution of such Participant’s interest
under the Plan in the event such Participant dies before full distribution of his interest.

     (b) Code. The term “Code” shall mean the Internal Revenue Code as amended from
time to time. Reference to a section of the Code shall include such section and any
comparable section or sections of any future legislation that amends, supplements, or
supersedes such section.

     (c) Company. The term “Company” shall mean The Lubrizol Corporation, an Ohio
corporation, its corporate successors and the surviving corporation resulting from any
merger of The Lubrizol Corporation with any other corporation or corporations, and any
subsidiaries of The Lubrizol Corporation which adopt the Plan.

     (d) Executive Council Deferred Compensation Plan. The term “Executive Council
Deferred Compensation Plan” shall mean The Lubrizol Corporation 2005 Executive Council
Deferred Compensation Plan, as shall be in effect on the date of the Participant’s
retirement, death, or other termination of employment.

     (e) Fund. The term “Fund” shall mean each separate investment fund established
and maintained under the Trust Agreement.

     (f) Lubrizol Deferred Compensation Plan. The term “Lubrizol Deferred
Compensation Plan” shall mean The Lubrizol Corporation 2005 Deferred Compensation Plan for
Officers or, effective January 1, 2006, The Lubrizol Corporation Senior Management Deferred
Compensation Plan, as shall be in effect on the date of the Participant’s retirement, death,
or other termination of employment.

     (g) Participant. The term “Participant” shall mean any person employed by the
Company who is designated by the Board of Directors as an officer for the purposes of
Section 16 of the Securities Exchange Act of 1934, or whose benefits under the
Profit-Sharing Plan are limited by the application of Section 401(a)(17) of the Internal
Revenue

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Code of 1986, as amended, or, effective January 1, 2006, who participates in
The Lubrizol Corporation Deferred Compensation Plan.

     (h) Plan. The term “Plan” shall mean the excess defined contribution
retirement plan as set forth herein, together with all amendments hereto, which Plan shall
be called “The Lubrizol Corporation Excess Defined Contribution Plan.”

     (i) Plan Year. The term “Plan Year” shall mean the calendar year.

     (j) Profit-Sharing Plan. The term “Profit-Sharing Plan” shall mean The
Lubrizol Corporation Employees’ Profit-Sharing Plan and Savings Plan as the same shall be in
effect on the date of a Participant’s retirement, death, or other termination of employment.

     (k) Supplemental Company Contributions. The term “Supplemental Company
Contributions” shall mean the contributions made by the Company under the Plan in accordance
with the provisions of Section 2.2.

     (l) Trust Agreement. The term “Trust Agreement” shall mean The Lubrizol
Corporation Excess Defined Contribution Plan Trust Agreement.

     (m) Trust Assets. The term “Trust Assets” shall mean all property held by the
Trustee pursuant to the Trust Agreement.

     (n) Trustee. The term “Trustee” shall mean the trustee of The Lubrizol
Corporation Excess Defined Contribution Trust.

     (o) Valuation Date. The term “Valuation Date” shall mean the last day of each
Plan Year and any other date as may be agreed upon by the Company and the Trustee.

     (p) Separate Accounts. The term “Separate Accounts” shall mean each account
established on behalf of a Participant under the Plan and credited with Supplemental Company
Contributions in accordance with the provisions of Section 2.3.

     (q) Supplemental Matching Contributions. The term “Supplemental Matching
Contributions” shall mean the contributions made by the Company under the Plan in accordance
with the provisions of Section 2.3.

     1.2 Additional Definitions. All other words and phrases used herein shall have the
meanings given them in the Profit-Sharing Plan, unless a different meaning is clearly required by
the context.

ARTICLE II

SUPPLEMENTAL CONTRIBUTIONS

     2.1 Eligibility. A Participant whose benefits under the Profit-Sharing Plan are
limited with respect to any Plan Year by Section 401(a)(17) or 415 of the Code, or who participated
in
the Lubrizol Deferred Compensation

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Plan or the Executive Council Deferred Compensation Plan, shall
be eligible to have contributions made with respect to him under the Plan in accordance with the
provisions of this Article II.

     2.2 Supplemental Company Contributions. In the event that Company Profit Sharing
Contributions under the Profit-Sharing Plan with respect to a Participant are limited for any Plan
Year due to the provisions of Section 401(a)(17) or 415 of the Code, or due to the Participant’s
participation in the Lubrizol Deferred Compensation Plan or the Executive Council Deferred
Compensation Plan, the amounts by which such contributions are limited shall be credited under the
Plan by the Company and shall be designated as Supplemental Company Contributions.

     2.3 Supplemental Matching Contributions. In the event that Company Matching
Contributions under the Profit-Sharing Plan are limited for any Plan Year due to the Participant’s
participation in the Lubrizol Corporation Deferred Compensation Plan or the Executive Counsel
Deferred Compensation Plan, the amounts by which such contributions are limited shall be credited
under the Plan by the Company and shall be designated as Supplemental Matching Contributions;
provided, however that the total amount of Supplemental Matching Contributions hereunder for a Plan
Year plus Company Matching Contributions under the Profit-Sharing Plan for the Plan Year shall not
exceed 50 percent of six percent of the combination of the Participant’s Compensation under the
Profit-Sharing Plan plus the amount of the Participant’s deferrals under the Lubrizol Deferred
Compensation Plan and the Executive Council Deferred Compensation Plan; provided further, that for
purposes of determining the amount of Supplemental Matching Contributions that may be made
hereunder for a Plan Year, the total amount of the Participant’s Compensation under the
Profit-Sharing Plan for a Plan Year plus the Participant’s deferrals under the Lubrizol Deferred
Compensation Plan and the Executive Council Deferred Compensation Plan for the Plan Year is limited
to the maximum amount of Compensation that may be taken into account under the Profit-Sharing Plan
for the Plan Year; provided further that Supplemental Matching Contributions will be made hereunder
only if the total of the Participant’s CODA Contributions plus Supplemental Contributions under the
Profit-Sharing Plan has met or exceeded the maximum allowed as CODA Contributions under the
Profit-Sharing Plan for the Plan Year.

     2.4 Allocation of Contributions. Supplemental Company Contributions shall be
allocated among the Separate Accounts of the Participants on whose behalf such contributions are
made.

     2.5 Administration of Separate Accounts. Each Separate Account to which
contributions under Sections 2.2 and 2.3 are credited and allocated shall be credited monthly with
the net monthly increase (decrease) experienced by the Participant selected investment funds of the
Lubrizol Profit-Sharing Plan.

ARTICLE III

DISTRIBUTION

     3.1 Vesting. Each Participant, shall be vested in the value of his Separate Accounts
under this Plan as determined in accordance with the vesting provisions of the Profit-Sharing Plan.

15

 

     3.2 Distribution.

     (a) Each Participant who separates from service with the Company and its related
corporations shall receive payment of the balance in his Separate Account in the standard
form of payment of a single lump-sum payment payable the later of six months following the
separation from service or 30 days following the calendar year in which Participant
separated from service.

     (b) At least 12 months prior to the distribution date specified in paragraph (a)
Participants may instead elect to receive the balance of his Separate Account in (i) a
single lump-sum payment payable five years following the original distribution date
specified in paragraph (a), or (ii) annual installments of up to ten payments, the first of
which shall be paid five years following the original distribution date specified in
paragraph (a), and subsequent installments of which shall be paid on the anniversary date of
the payment of the first installment. Such installments shall be determined by dividing the
value of the Participant’s Separate Account by the number of installments to be.

     3.3 Distribution in the Event of Death. In the event of the death of a Participant
prior to distribution in full of his interest under the Plan, his Beneficiary shall receive
distribution of such interest. In the event of death of a Participant prior to making an election
for benefits, such Beneficiary shall receive distribution of such interest as soon as practicable
after such Participant’s death in the form elected by such Beneficiary pursuant to Section 3.2.
The Beneficiary under this Section 3.3 shall be the person designated as the Participant’s
beneficiary under the Profit-Sharing Plan. If no Beneficiary survives such Participant or if no
Beneficiary has been designated by such Participant, the estate of such Participant shall be the
Beneficiary and receive distribution thereof. If any Beneficiary dies after becoming entitled to
receive distribution hereunder and before such distribution is made in full, and if no other person
or persons have been designated to receive the balance of such distribution upon the happening of
such contingency, the estate of such deceased Beneficiary shall become the Beneficiary as to such
balance.

ARTICLE IV

ADMINISTRATION

     4.1 Authority of the Company. The Company shall be responsible for the general
administration of the Plan, for carrying out the provisions hereof, and for making, or causing the
Trust to make, any required supplemental benefit payments. The Company shall have all such powers
as may be necessary to carry out the provisions of the Plan, including the power to determine all
questions relating to eligibility for and the amount of any supplemental pension benefit and all
questions pertaining to claims for benefits and procedures for claim review; to resolve all other
questions arising under the Plan, including any questions of construction; and to take such further
action as the Company shall deem advisable in the administration of the Plan. The Company may
delegate any of its powers, authorities, or responsibilities for the operation and administration
of the Plan to any person or committee so designated in writing by it and may employ such
attorneys, agents, and accountants as it may deem necessary or
advisable to assist it in carrying out its duties hereunder. The actions taken and the
decisions made by the Company hereunder shall be final and binding upon all interested parties.

16

 

     4.2 Claims Review Procedure. The Company shall notify the person who files a claim
for benefits (hereinafter referred to as the “Claimant”) of the Plan’s adverse benefit
determination within a reasonable period of time, but not later than 90 days after the receipt of
the claim by the Plan, unless the Company determines that special circumstances require an
extension of time for processing the claim. If the Company determines that special circumstances
require 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 90-day period. In no event shall
such extension exceed a period of 90 days from the end of such initial period. The extension
notice shall indicate the special circumstances requiring an extension of time and the date by
which the Plan expects to render the benefit determination. Whenever the Company decides for
whatever reason to deny, whether in whole or in part, a claim for benefits filed by any Claimant,
the Company shall transmit to the Claimant a written notice of the Company’s decision, which shall
be written in a manner calculated to be understood by the Claimant and contain a statement of the
specific reasons for the denial of the claim, reference to the specific Plan provisions on which
the determination was based, a description of any additional material or information necessary for
the Claimant to perfect the claim and an explanation of why such material or information is
necessary, a description of the Plan’s review procedures and the time limits applicable to such
procedures, include a statement of the Claimant’s right to bring civil action under Section 502(a)
ERISA following an adverse benefit determination on review. Within 60 days of the date on which
the Claimant receives such notice, he or his authorized representative may request that the claim
denial be reviewed by filing with the Company a written request therefor, which request shall
contain the following information:

(a) the date on which the Claimant’s request was filed with the Company;
provided, however, that the date on which the Claimant’s request for
review was in fact filed with the Company shall control in the event that
the date of the actual filing is later than the date stated by the
Claimant pursuant to this paragraph (a);

(b) the specific portions of the denial of his claim which the Claimant
requests the Company to review;

(c) a statement by the Claimant setting forth the basis upon which he
believes the Company should reverse the Company’s previous denial of his
claim for benefits and accept his claim as made; and

(d) any written comments, documents, records and other information which
the Claimant desires the Company to examine in its consideration of his
position as stated pursuant to paragraph (c).

Claimant shall be provided, 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. The
review of the claim will take into account all comments, documents, records and other information
submitted by the Claimant relating to the claim, without regard to whether such information was
submitted or considered in the initial benefit determination. Within no later than 60 days of the
date determined pursuant to paragraph (a) of this Section 4.2, the
Company shall notify Claimant of the Plan’s benefit determination, unless the Company determines
that special circumstances require an extension of time for processing the claim. If the Company
determines that an extension of time for processing is required, written notice of the extension
will be furnished to the Claimant prior to the termination of the initial 60-day period. In no
event

17

 

shall such extension exceed a period of 60 days from the end of the initial period. The
extension notice shall indicate the special circumstances requiring an extension of time and the
date by which the Plan expects to render the determination on review. The Company shall provide
the Claimant with a written notification of the Plan’s benefit determination on review, written in
a manner calculated to be understood by the Claimant, including the reasons and Plan provisions
upon which its decision was based, a statement 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 a statement of the Claimant’s right
to bring an action under Section 502(a) of ERISA.

ARTICLE V

AMENDMENT AND TERMINATION

     The Company reserves the right to amend or terminate the Plan in whole or in part at any time
and to suspend operation of the Plan, in whole or in part, at any time, by resolution or written
action of its Board of Directors or by action of a committee to which such authority has been
delegated by the Board of Directors; provided, however, that no amendment shall result in the
forfeiture or reduction of the interest of any Participant or person claiming under or through any
one or more of them pursuant to the Plan; provided, further that, effective January 1, 2006,
notwithstanding Section 3.1, upon a termination of the Plan each Participant shall be fully vested
in his supplemental pension benefit under this Plan. Any amendment of the Plan shall be in writing
and signed by authorized individuals.

ARTICLE VI

MISCELLANEOUS

     6.1 Non-Alienation of Retirement Rights or Benefits. No Participant shall encumber or
dispose of his right to receive any payments hereunder, which payments or the right thereto are
expressly declared to be non-assignable and non-transferable. If a Participant or Beneficiary
attempts to assign, transfer, alienate or encumber his right to receive any payment under the Plan
or permits the same to be subject to alienation, garnishment, attachment, execution, or levy of any
kind, then thereafter during the life of such Participant or Beneficiary and also during any period
in which any Participant or Beneficiary is incapable in the judgment of the Company of attending to
his financial affairs, any payments which the Company is required to make hereunder may be made, in
the discretion of the Company, directly to such Participant or Beneficiary or to any other person
for his use or benefit or that of his dependents, if any, including any person furnishing goods or
services to or for his use or
benefit or the use or benefit of his dependents, if any. Each such payment may be made without the
intervention of a guardian, the receipt of the payee shall constitute a complete acquittance to the
Company with respect thereto, and the Company shall have no responsibility for the proper
allocation thereof.

     6.2 Plan Non-Contractual. Nothing herein contained shall be construed as a commitment
or agreement on the part of any person employed by the Company to continue his

18

 

employment with the
Company, and nothing herein contained shall be construed as a commitment on the part of the Company
to continue the employment or the annual rate of compensation of any such person for any period,
and all Participants shall remain subject to discharge to the same extent as if the Plan had never
been established.

     6.3 Trust. In order to provide a source of payment for its obligations under the Plan,
the Company has established The Lubrizol Corporation Excess Defined Contribution Plan Trust.

     6.4 Interest of a Participant. Subject to the provisions of the Trust Agreement, the
obligation of the Company under the Plan to provide a Participant or Beneficiary with supplemental
retirement benefits merely constitutes the unsecured promise of the Company to make payments as
provided herein, and no person shall have any interest in, or a lien or prior claim upon, any
property of the Company.

     6.5 Controlling Status. No Participant shall be eligible for a benefit under the Plan
unless such Participant is a Participant on the date of his retirement, death, or other termination
of employment.

     6.6 Claims of Other Persons. The provisions of the Plan shall in no event be construed
as giving any person, firm or corporation any legal or equitable right as against the Company, its
officers, employees, or directors, except any such rights as are specifically provided for in the
Plan or are hereafter created in accordance with the terms and provisions of the Plan.

     6.7 Severability. The invalidity or unenforceability of any particular provision of
the Plan shall not affect any other provision hereof, and the Plan shall be construed in all
respects as if such invalid or unenforceable provision were omitted herefrom.

     6.8 Governing Law. The provisions of the Plan shall be governed and construed in
accordance with the laws of the State of Ohio.

121206lmre

19

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