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    IN THE

    OPENING BRIEF FOR APPELLANTS

    POTTER ANDERSON & CORROON LLPDonald J. Wolfe, Jr. (No. 285)Kevin R. Shannon (No. 3137)Berton W. Ashman, Jr. (No. 4681)Ryan W. Browning (No. 4989)Hercules Plaza1313 N. Market Street, Sixth FloorWilmington, Delaware 19801(302) 984-6000

    Attorneys for Plaintiffs/Counterclaim DefendantsBelow-Appellants

    Of Counsel:

    Theodore N. Mirvis

    Marc Wolinsky

    George T. Conway III

    Garrett B. Moritz

    Meredith L. Turner

    Jonathon R. La Chapelle

    WACHTELL, LIPTON, ROSEN & KATZ

    51 West 52nd Street

    New York, New York 10019(212) 403-1000

    AIRGAS, INC., JAMES HOVEY, PAULASNEED, DAVID STOUT, LEE THOMAS,JOHN VAN RODEN, and ELLEN WOLF,

    Plaintiffs/CounterclaimDefendants Below-Appellants,

    v.

    AIR PRODUCTS AND CHEMICALS, INC.,

    Defendant/CounterclaimPlaintiff Below-Appellee.

    No. 649, 2010

    COURT

    BELOW

    :COURT OF CHANCERY OFTHE STATE OF DELAWARE,IN AND FOR SUSSEX COUNTY,C.A. NO. 5817-CC

    October 18, 2010

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    C23;6 >7 4>=C6=CB

    ?IOM

    L?RSPC MD RFC NPMACCBGLEQ........................................................1

    QSKK?PW MD ?PESKCLR .................................................................2

    QR?RCKCLR MD D?ARQ ........................................................................6

    ?PESKCLR...........................................................................................13

    G. RFC @WJ?U TGMJ?RCQ RFC BEAJ.....................................13

    GGG. RFC @WJ?U PCOSGPCB ? 67' TMRC. ................................44

    AMLAJSQGML........................................................................................45

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    + + +

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    C23;6 >7 2DC9>A:C:6B

    4IYMY ?IOM

    6[[T] q.

    7,;, FXRW ' 8^, q.

    7CG >]R, q. @^__Tab 8^,

    q. 7T]XWP]P* >]R,, 891 ?.2_ 150

    8'H 6bb^Rb, q. ,

    86* >]R. q. 6;G8B: :\_b, ET]bX^] E[P],

    q. H^[[ 7a^b,* >]R,

    q. ,

    q. ,

    9P\Qa^ q.

    %q. ,

    q. ,

    9^[V^UUq. Ea^YTRcPeXbX^]* >]R,

    q.

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    q. , 2010 UJ 3516473

    :bbT]cXP[ :]cTa_aXbTb 8^a_, q. ,

    :eTaTccq. HaP]b]PcX^] 9TeT[^_\T]c 8^a_,, 267 ?.2_ 627

    ;aTT\P] q.

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    q

    ATeXcc 8^a_, q. DUUXRT 9T_^c* >]R., 2008 UJ 1724244

    A^aX[[PaS H^QPRR^ 8^. q. ,

    B;8 7P]R^a_ AcS, q. , 844 ?.2_ 1015

    BB 8^b, q.

    B^^aT q.

    CPcWP] q. H^\_ZX]b

    CT_P q. BPacP

    q. , 3 L`q. 202 )1867*.......................36

    q. 9^eTa 7TWPeX^aP[

    q. =PaQX]VTa 8P_XcP[ EPac]Tab,

    F^eT] q. 8^ccTa

    q.

    q. HK GTaeb,

    q. >]XcX^ EPac]Tab,

    q. G\XcW, 205 D. 643

    IG6 8PQ[T q. ,

    IG6 8PQ[T q. ,

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    JTabPcP :]cTab, q. GT[TRcXRP* >]R,, 2010 UJ 3839786

    J^];T[Scq. GcXUT[ ;X],, 1999 UJ 413393

    BZIZ[ZMY IUL A[SMY

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    >ZPMX 2[ZPVXQZQMY

    1 AMLRCKNMP?PW AMPNMP?RGML DMPKQ

    1 B?TGB ?. BPCVJCP, JCUGQ Q. @J?AI, (

    ?. EGJAFPGQR QN?PIQ, GGG, BCJ?U?PC AMPNMP?RGML

    J?U ?LB NP?ARGAC

    1 P. DP?LIJGL @?JMRRG ( HCQQC ?. DGLICJQRCGL,RFC BCJ?U?PC J?U MD AMPNMP?RGMLQ ( @SQGLCQQ

    MPE?LGX?RGMLQ

    2 KMBCJ @SQGLCQQ AMPNMP?RGML ?AR ?LLMR?RCB

    2? LMPK?L H. QGLECP, QR?RSRCQ ?LB QR?RSRMPW

    AMLQRPSARGML

    2@ LMPK?L H. QGLECP ( H.B. QF?K@GC QGLECP,

    QSRFCPJ?LB QR?RSRCQ ?LB QR?RSRMPW

    AMLQRPSARGML

    ?@?,

    )2009*........................................ 25-26

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    ?PRFSP DJCGQAFCP, HP. ( ?JCV?LBCP P. QSQQK?L,

    R?ICMTCP BCDCLQC

    ?KCPGA?L FCPGR?EC AMJJCEC BGARGML?PW

    @J?AIQ J?U BGARGML?PW

    AMPNMP?RGML RPSQR AMKN?LW MD ?KCPGA?,

    @SQGLCQQ AMPNMP?RGMLQ SLBCP RFC J?U MD BCJ?U?PC

    PePX[PQ[T Pc

    B?TGB J. QAMRR, U?JJ QRPCCR UMPBQ )3_ `_. 2003* ...........................35

    CPLCQR J. DMJI, GGG, RFC BCJ?U?PC ECLCP?J

    AMPNMP?RGML J?U: ? AMKKCLR?PW (?L?JWQGQ

    CPLCQR J. DMJI, GGG, RFC PCB @MMI BGECQR MD RFC

    LCU BCJ?U?PC AMPNMP?RGML J?U

    DCBCP?JGQR LM. 63, PePX[PQ[T Pc

    EJ?QQ JCUGQ ( AM.,

    6SeXRT U^a I,G, 8^\_P]XTb, PePX[PQ[T Pc

    EPCEMPW T. T?P?JJM, B?LGCJ ?. BPCGQ@?AF ( @J?IC PMFP@?AFCP,

    DSLB?KCLR?JQ MD AMPNMP?RC EMTCPL?LAC: ? ESGBC DMP

    BGPCARMPQ ?LB AMPNMP?RC AMSLQCJ )?@? 2_ `_. 2009*..............27

    @JMMK@CPE

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    6]cXcPZT^eTa

    8WPacTa Ea^eXbX^]b5 9TUT]SX]V GT[U+=T[_ U^aHPZT^eTa HPaVTcb, 36 U?QF ( JCC J. PCT

    HWT 8^bcb ^U :]caT]RWTS 7^PaSb,78 H. DGL. CAML. 409 )2005* ...............................................................24

    , 54 QR?L. J. PCT. 887 )2002* ..........................24

    8^a_^aPcT

    Pb EaTR^\\Xc\T]c, 152 S. N?. J. PCT KCPPG?K UC@QRCP BGARGML?PW )MLJGLC CBGRGML*,

    PePX[PQ[T Pc

    LMP? NCRCPQML, U?JJ QRPCCR JGLEM )2007*.......................................35

    PGQIKCRPGAQ EPMSN,

    )D`]. 25, 2010*, PePX[PQ[T Pc

    I]^RP[ ;XUcTT] MTPab APcTa *,

    26 BCJ. H. AMPN. J. 491 )2001*..........................................................24

    Q. Q?KSCJ ?PQFR ( U?JRCP I. QR?NJCRML,

    ?L?JWQGQ MD RFC 1967 BCJ?U?PC AMPNMP?RGML J?U )1967* .......19

    Q. Q?KSCJ ?PQFR ( JCUGQ Q. @J?AI, ?L?JWQGQ MD RFC 1974

    ?KCLBKCLRQ RM RFC BCJ?U?PC AMPNMP?RGML J?U,

    NPCLRGAC F?JJ AMPN. QCPT. 375 )1974*...........................................21

    UC@QRCPQ RFGPB LCU GLRJ BGARGML?PW

    UGJJG?K C. PC?B, AMPNMP?RC MDDGACPQ ?LBBGPCARMPQ BCQI @MMI )1980*.........................................................35

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    =2CDA6 >7 C96 ?A>4665:=8B

    GTT bTT P[b^

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    2

    BD

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    3

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    4

    + + +

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    5

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    6

    BC2C67 724CB

    2* CPM 3IZZSM NVX 4VUZXVS VN 2QXOIY

    1

    2

    1 bTT P[b^ PePX[PQ[T Pc

    2 PePX[PQ[T Pc

    @JMMK@CPE

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    7

    bTT [Tbb >S,

    3* 3IKROXV[UL VN ZPM 2QXOIY BZIOOMXML 3VIXL

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    8

    3 16.

    3

    GTT ?15-16:7QYKIS HX*

    6UL

    2UU*

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    9

    :bbT]cXP[ :]+cTa_aXbTb 4

    X]UaP*. Ma

    >S,

    `Ga

    6IKP KSIYY YMX\MY [UZQS `ZPQXL Y[KKMMLQUO

    IUU[IS TMMZQUOaVX

    `ZPM IUU[IS TMMZQUO PMSL QU ZPM ZPQXL ^MIX

    NVSSV]QUO ZPM ^MIX VN ZPMQX MSMKZQVUa

    `Ha

    6IKP KSIYY YMX\MY NVX `I ZPXMM)^MIX ZMXTa

    VX

    `ZMXT VN ZPXMM ^MIXYa

    4:bbT]cXP[ :]cTa_aXbTb 8^a_, q. , 159 ?.2_ 288,

    bTT X]UaP.

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    10

    bTT P[b^ ?612-712.

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    11

    +8> .>

  • 8/8/2019 Airgas' brief

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    12

    GTT

    5

    5

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    13

    2A8D;2C6B C96 584;*

    2*% @[MYZQVU ?XMYMUZML

    3*% BKVWM VN AM\QM]

    7,;, FXRW ' 8^, q. :, APZT q.

    4*%

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    14

    X]XcXP[

    :bbT]cXP[ :]cTa_aXbTb, , 159 ?.2_ :bbT]cXP[ :]+cTa_aXbTb

    >S XS

    >S

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    15

    >S >S

    :bbT]cXP[ :]cTa_aXbTb :bbT]cXP[ :]cTa_aXbTb

    :bbT]cXP[ :]cTa_aXbTb GTT P[b^ F^eT] q. 8^ccTa :bbT]cXP[ :]cTa_aXbTb :bbT]cXP[ :]cTa_aXbTb

    J* :bbT]cXP[ :]cTa_aXbTb

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    16

    bP\T

    6 Rc`

    MPK?L H. QGLECP ( H.B. QF?K@GCQGLECP, QSRFCPJ?LB QR?RSRCQ ?LB QR?RSRMPW AMLQRPSARGML R?RSRMPW AMLQRPSARGML

    :bbT]cXP[ :]cTa_aXbTb

    K*

    7 8

    6GTT ;aTT\P] q.

    B^^aT q. , 233 ?.2_ 53, 55

    71 B?TGB ?. BPCVJCP, JCUGQ Q. @J?AI, ( ?. EGJAFPGQR QN?PIQ, GGG,

    BCJ?U?PC AMPNMP?RGML J?U ?LB NP?ARGAC GTTP[b^ 2 KMBCJ @SQGLCQQ AMPNMP?RGML ?AR ?LLMR?RCB

    81 P. DP?LIJGL @?JMRRG ( HCQQC ?. DGLICJQRCGL, RFC BCJ?U?PC

    J?U MD AMPNMP?RGMLQ ( @SQGLCQQ MPE?LGX?RGMLQ

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    17

    9

    10

    GTT

    )2010*; bTT P[b^ cX^]P[Xb\5 6]cXcPZT^eTa 8WPacTa Ea^eXbX^]b Pb EaTR^\\Xc\T]c, 152 S. N?.J. PCT

    9 >S.

    108U, DCBCP?JGQR LM. 63, PePX[PQ[T Pc

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    18

    P[[ 11 12

    L*

    q. 8WP]S[Ta

    11GTT 86* >]R. q. , 953 ?.2_ 227,

    q. 7[PRZ, 844

    12

    8U, A6BE:FGq.

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    19

    AMPNMP?RGML RPSQR AMKN?LW MD ?KCPGA?, @SQGLCQQ AMPNMP?RGMLQ

    SLBCP RFC J?U MD BCJ?U?PC PePX[+PQ[T Pc

    :bbT]cXP[ :]cTa_aXbTb :bbT]cXP[ :]cTa_aXbTb

    :bbT]cXP[ :]cTa_aXbTb GTT Q. Q?KSCJ ?PQFR ( U?JRCP I. QR?NJCRML,?L?JWQGQ MD RFC 1967 BCJ?U?PC AMPNMP?RGML J?U

    DU+

    q. , 976

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    20

    13

    :bbT]cXP[ :]cTa_aXbTb

    cTa\b

    .

    CPLCQR J. DMJI, GGG, RFC PCB @MMI BGECQR MD RFC LCU BCJ?U?PC

    AMPNMP?RGML J?U :b+bT]cXP[ :]cTa_aXbTb PLCQRJ. DMJI, GGG, RFC BCJ?U?PC ECLCP?J AMPNMP?RGML J?U:

    ? AMKKCLR?PW ( ?L?JWQGQ 14

    N:bbT]+cXP[ :]cTa_aXbTbO

    13GTT P[b^ 6[[T] q.

    R?RSRMPW AMLQRPSARGML

    14 :bbT]cXP[ :]cTa_aXbTb :eTaTccq. HaP]b]PcX^] 9TeT[^_\T]c 8^a_,

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    21

    15

    .

    ^] P cTa\ ^U ^UUXRT ^U R[PbbXUXTS SX+ .

    Q. Q?KSCJ ?PQFR ( JCUGQ Q. @J?AI, ?L?JWQGQ MD RFC 1974

    ?KCLBKCLRQ RM RFC BCJ?U?PC AMPNMP?RGML J?U, NPCLRGAC F?JJ

    AMPN. QCPT. 375, 377 )1974*.16

    17

    15 F^eT] q. 8^ccTa

    >S

    16 q. 8WP]S[Ta, 534 ?.2_ 257,

    17GTT

    )2010*.

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    22

    :bbT]cXP[ :]cTa_aXbTb.

    GTT* T,V,, JTabPcP :]+cTab, q. GT[TRcXRP* >]R, q. H^[[ 7a^b,* >]R, 1998**;

    18BB 8^b, q.

    9^\TbcXR =^[SX]Vb q. @WP]]P q. BRBX]] q. 7T]XWP]P* >]R,, cTa\b cWaTT+

    ?^]Tb 6__PaT[ ]R, F^eT] q. 8^ccTa, 547 ?.2_ 603, 604 q.HK GTaeb, U^a

    7CG >]R, q. @^__Tab 8^,

    18 GTT

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    24

    ! !

    @J?AIQ J?U BGARGML?PW

    GTT , 54 QR?L. J. PCT. 887, 887, 893, 913, 916

    HWT 8^bcb ^U :]caT]RWTS 7^PaSb, 78 H . DGL.CAML *, 26 BCJ.H. AMPN

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    25

    20

    >S

    20

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    26

    >S, XS,

    21

    KMBCJ @SQGLCQQ AMPNMP?RGML ?AR ?LLMR?RCB

    21 GTT P[b^ 1 AMLRCKNMP?PW AMPNMP?RGML DMPKQ

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    37/101

    27

    GTT P[b^EPCEMPW T.

    T?P?JJM, B?LGCJ ?. BPCGQ@?AF ( @J?IC PMFP@?AFCP,

    DSLB?KCLR?JQ MD AMPNMP?RC EMTCPL?LAC: ? ESGBC DMP BGPCARMPQ

    ?LB AMPNMP?RC AMSLQCJ

    M* :bbT]cXP[ :]cTa_aXbTb :bbT]cXP[ :]cTa_aXbTb

    :bbT]cXP[ :]cTa_aXbTb :bbT]+

    cXP[ :]cTa_aXbTb N*

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    28

    22

    9P\Qa^ q. %q. , 900 ?.2_ 646, 652

    O*

    bTT ?1582.

    22 ?65-69.

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    39/101

    29

    GTT 86* >]R, q. E[P] X,T, GTT 23

    P*

    23GTT PGQIKCRPGAQ EPMSN,

    , 16 )D`]. 25, 2010*, PePX[PQ[T Pc J?QQ JCUGQ ( AM., ]XTb, 5, PePX[PQ[T Pc

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    30

    ,*% 584; c ,++

    9T[, 8,

    ]^c

    I* >S,

    >S, >S,

    ^__^bXcT

  • 8/8/2019 Airgas' brief

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    31

    XS, XS, SXbR[PX\TS

    >S,

    J* MPK?L H. QGLECP, QR?RSRCQ ?LB QR?RSRMPWAMLQRPSARGML PRR^aS* T,V,,

    :]cTab, q .

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    32

    ]^c 9T[, 8,

    )XS

    K*

    q.

  • 8/8/2019 Airgas' brief

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    33

    8'H 6bb^Rb, q.

    bTT P[b^ 86* >]R. q.

    6;G8B::\_b, ET]bX^] E[P] 9T[, 8,

    9T[, 8, q.

    F^eT] q. 8^ccTa =^bRWTcc q. , 683 ?.2_ 43,

    ?^]Tb 6__PaT[

  • 8/8/2019 Airgas' brief

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    34

    U^a P _TaX S ^U 1.

    8 9T[, 8, B;8 7P]R^a_ AcS, q.

    ]^

    TPa[XTa

    [PcT [T]VcWT]

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    35

    M*

    MP?NCRCPQML, U?JJ QRPCCR JGLEM bTT P[b^B?TGB J. QAMRR, U?JJ QRPCCR UMPBQ ^U cWT _Pbc UXbRP[

    GJJG?K C. PC?B, AMPNMP?RCMDDGACPQ ?LB BGPCARMPQ BCQI @MMI

    + 1 , 1 WC?PJW - 1

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    36

    P]+

    q. , 3 L`q. 202, 224

    CPPG?K UC@QRCP,

    C@QRCPQ RFGPB LCU GLRJ BGARGML?PW

    .

    ?KCPGA?L FCPGR?EC AMJJCEC BGARGML?PW

  • 8/8/2019 Airgas' brief

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    37

    J?AIQ J?U BGARGML?PW

    N*

    >S,

    GTT AT]PWP] q. , 310

    O* CP+cWP] q. H^\_ZX]b

    >S, >S, >S,

    q. KWXc[^RZ

    q. G\XcW, 205 D.

  • 8/8/2019 Airgas' brief

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    38

    >S, XS,

    CPcWP], 2

    B;8 7P]R^a_ >S,

    P* >S, ]^ [PcTa b^^]Ta

    aTUTaaTS

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    39

    ::* C96 3H;2F E:>;2C6B 2:A82B_ 492AC6A*

    2* @[MYZQVU ?XMYMUZML

    3* BKVWM VN AM\QM]

    GTT .

    4* ]R

    J^];T[Sc q. GcXUT[ ;X],

    J* IG6 8PQ[T q. K^a[S KaTb+ , 766 ?.2_ @PXbTa

    q. BPcWTb^]

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    40

    ;Xabc

    GTR^]S cWXaS

    bTT bTT ?1614.

    K*

    q. ?88 =^[SX]V 8^,

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    51/101

    41

    GTT ATeXcc 8^a_, bTT P[b^

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    42

    :bbT]cXP[ :]cTa_aXbTb

    >S,

    Pc cWPc \TTcX]V

    , 582

    q. >]XcX^EPac]Tab

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  • 8/8/2019 Airgas' brief

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    44

    :::* C96 3H;2F A6@D:A65 2 /0& E>C6*

    2*% @[MYZQVU ?XMYMUZML

    3*% BKVWM VN AM\QM]

    GTT .

    4*%

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    45

    4>=4;DB:>=

    NMRRCP ?LBCPQML ( AMPPMML JJN

    U?AFRCJJ, JGNRML, PMQCL

    ( I?RX

    )212* 403-1000

    )302* 984-6000

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    EXHIBIT A

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    '/%0',!(+#0&-3#6.2*0,##""3'"01-21*##1&-+0(-&,3,/-"#,:G=#**#,4-*$

    .E:BGMB??L

    O

    '/./-"2!10,"!+'!*0',!

    ">?>G=:GM

    !BOBE">=-K

    "HG:E=(4HE?>(K)>OBG/0A:GGHG>KMHG4LAF:G(K:G=/R:G

    4KHPGBG@H?.-11#/,"#/0-,!-//--,**.4BEFBG@MHG">E:P:K>-$!-2,0#*1A>H=HK>,+BKOBL+:KHK@>1!HGP:R''':G=+>K>=BMA*1NKG>KH?4!&1#***'.1-,/-0#,)17 ,>P 6HKD ,>P 6HKD MMHKG>RL ?HK .E:BGMB??L!HNGM>KE:P:K>-$!-2,0#*/HKR-+BEELHG

    1AHF:L % /:??>KMR ":OB= / +:KKBHMM :G= %:KR HKGLM>BG H?!/31&04',#+--/#**.,>P6HKD,>P6HKDMMHKG>RL?HK">?>G=:GM!HNGM>K

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    'G MABL H? :II:K>GM ?BKLM BFIK>LLBHG ' LMBHG

    PA>MA>K:;RE:P:F>G=F>GMIKHIHL>=;RBK.KH=NFBMBG@LMH;>A>E=>::KBGMA>

    FHGMAH?(:GN:KR:LHIIHL>=MH:IIKHQBF:M>ERL>O>GFHGMALE:M>KN@NLM

    PA>G BK@:LVL:GGN:E F>>MBG@L A:O> ABLMHKB>G A>E= BL O:EB=NG=>K

    ">E:P:K>E:P-?I:KMBKBK@:L'G>MBG@F:R;>A>E=HG(:GN:KR;:K>ER?HNKFHGMAL:?M>KBML

    :GGN:EF>>MBG@P:LA>E=

    1ABL BLLN> :KBL>L BG MA> FB=LM H? : A>:M>= M:D>HO>K ;:MME> ;R BK

    .KH=NFBF;>K

    BK@:L A>E= BML :GGN:E F>>MBG@ M MA:M :GGN:E F>>MBG@ BK

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    K>JNBK>=:LNI>KF:CHKBMROHM>H?H?MA>HNMLM:G=BG@LA:K>LMHI:LL1ABL

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    WL>I:K:M>= ;R :IIKHQBF:M>ER MP>EO> FHGMALX HK =H>L BM LBFIER F>:G

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    MMA>MBF>H? BML0>IM>F;>K :GGN:EF>>MBG@ BK@:LA:=:

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    MA:M;ROHMBG@BG?:OHKH?BMLGHFBG>>L:G=;RE:PIKHIHL:ELMA>RPHNE=;>

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    -? MA>K> P:L :;LHENM>ER GHMABG@ PKHG@ PBMA >BMA>K BK

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    ,HMPBMALM:G=BG@ MA> '00 K>G=:MBHG : F:CHKBMR H? BK@:LVL OHMBG@

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    JN>LMBHGH?E:PCN=@F>GMHGMA>IE>:=BG@LBL:G:IIKHIKB:M>F>LHEOBG@MA>IK>L>GM=BLINM>X

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    :MBHG :G= :=HIMBHGX :G= MA> W:GBG@X H? MA:M

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    >LM:;EBLA>=IK>?>K>GH?HNKE:PBLH?MH@BO>MH89LM:MNMHKRE:G@N:@>

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    = ?HK MA:M INKIHL> ;R : /#,14+6; 816' H? MA> LA:K>L K>IK>L>GM>= :G=

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    0#.;5+5

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    ?HEEHPBG@ MA> WR>:KX H? MA>BK >E> MA> IKHIHL>= ;RE:P :F>G=L KMB '' H? BK@:LVL ;RE:PL

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    R>:K:?M>KMA>IK>OBHNL:GGN:EF>>MBG@0HPABE>0>

    HG>FHGMAPB@@E>KHHF:?M>K:R>:KA:LI:LL>=MHAHE=MA>:GGN:EF>>MBG@

    MA>"%!*BLLBE>GM:LMHMA>:FHNGMH?WE>>P:RXBGMA>HIIHLBM>=BK> LM:MNM> MANL E>:=L MH MA>

    =>?:NEM KNE> MA> :GGN:E F>>MBG@ =:M> A>E= .#6'4 MA:G MABKM>>G

    FHGMAL?KHFMA>E:LM:GGN:EF>>MBG@;NMBMFHO>=72;R:GR:FHNGM

    H?MBF>LHEHG@:LGHMBK>JNBK>F>GML:K>F>MBM=H>LGHMMF>GML FNLM;> ?BE>=PBMAMA>0#!;>?HK>:G:GGN:EF>>MBG@F:R;>A>E=PHNE=;>=B??BMH

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    HIIHKMNGBMR MH A:O>MA>BK OHBL A>:K= :G=MH AHE==BK>GFHGMAI>KBH=:ELHEBFBML@:F>LF:GLABI;RBGLNK@>GML1A:MBL

    BGLNK@>GMLPAHF:D>:M:>MBG@?HKP:K=

    BGMA>R>:K=HGHMA:O>NGEBFBM>=:NMAHKBMRMHD>>I=:M>L:LBM

    LNBMLMA>FLBMLM:G=LMA>;RE:P:LPKBMM>GFHO>LBK@:LVLF>>MBG@?HK:EE

    R>:KLNGMBE:F>G=F>GMMH(:GN:KR1ANLB?BGLNK@>GMLFHO>NI:F>>MBG@

    :LA>K>MA>RPBEE?:LMHKLB?>E>=PBMABGMABKM>>GFHGMAL1A>

    BK.KH=N>LPAHP>K>>E>=MHBK@:LVL;H:K=:MMA>0>IM>F;>K

    F>>MBG@PBEE?:LMHKL:M:F>>MBG@BG(:GN:KRK:MA>K

    MA:G(NER'?HGBGH??BMA>BGLNK@>GML>G@:@>BGFNLB>MBG@

    @:F>L :=O:GE:RBG@ F>>MBG@L ?HK >GMK>GGM

    =BL>G?K:GF>GMHKHMA>KBFIKHI>KINKIHL>LMABL!HNKMVL;KH:=>JNBM:;E>

    IHP>KL PHNE= A:O> ;BM> :L PHNE= MA> MABKM>>G FHGMA EBFBM NG=>K 0>E:P:K>0NIK>F>9!HNKM:G=MA>!HNKMH?!A:GKRA:O>K>F:BG>=:LLB=NHNLBG?NEERK>OB>PBG@:GR;H:K=:LB@G>=MHBGM>K?>K>PBMAHKBFI>=>MA>>??>>Q>KH?=>FHKL>LI>E>

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    :=R MHMAP:KM FBLNL>HK :;NL> ;R=BK>GML

    &:OBG@?HNG=MA:MMA>;RE:P=H>LGHM:GBG@

    H?W:GGN:E F>>MBG@X NG=>K"%!* 0>KMHBGM>KIK>MMA>E>@:E

    F>:GBG@H?0>"%!*MABL!HNKMPBEEWMHMA>

    F:QBFNF>QM>GM?>:LB;E>8BGM>KIK>MMA>L>MPH0>L

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

    LMHKLMH IKHM>GH :KKB@AMYLM:MNMHKR 14=:RL

    15%*'66806=.1(69#4'6&=">E!A

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    0>= :;HO> ?HEEHPBG@ E:G@N:@>

    :NMAHKBSBG@K>=;H:K=

    1A> =BK>K MABL KF:R;>=BOB=>=BGMHHKLMA>M>KFH?H??BH?MAHL>H?MA>?BKLMQIBK>:MMA>?BKLM:GGN:EF>>MBG@A>E=:?M>KLNH?MA>L>K>:?M>K H? MA> MABK= :KL MA>K>:?M>K #0& #6

    '#%* #007#. '.'%6+10 *'.& #(6'4 57%* %.#55+(+%#6+10 $'%1/'5'(('%6+8'&+4'%61455*#..$'%*15'0(14#(7..6'4/ :LMA>F:R;>MHLN=MAHL>PAHL>M>KFL>QIBK>

    .E:BGMB??L G= MA:M W8M9A> LM:MNM>VL K>?>K>G MH U R>:KV :G= U

    R>:KLV K>?E> IKHIHLBMBHG MA:M MA> U:GGN:E >E>>MBG@LV:K>MABG@LMA:MHR>:K:I:KMX NMLBFIER

    ;> MA> LM:MNM> K>?>KL MH WR>:KLX MH L>I:K:M> MA> BGBMB:E MPH W:GGN:E

    F>>MBG@LXBGPAB=H>LGHM:NMHF:MB:GMA:MW:GGN:EF>>MBG@X>JN:ELW:IIKHQBF:M>ERHG>R>:K:I:KMXYA:=MA>

    %>G>K:ELL>F;ERP:GM>=MHL:RMA:MBMPHNE=A:O>

    L LNIIHKM ?HK MA>BK IHLBMBHG IE:BGMB??L :ELH MH 55'06+#.

    06'424+5'5 142 8 761/#6+% 6''. 41&5 0% ?HK MA> IKHIHLBMBHG MA:M

    W8:KERMA>U?NEEM>KFVOBLN:EBS>=;RMA>LM:MNM>BL:I>KBH=H?MAK>>R>:KLY

    GHM NI MH MAK>> R>:KLX NM PA:MMA:M AHE=L BLMA:M "%!*0>G?HK:?NEEM>KFV*'%'46+(+%#6'

    '.[=>FIA:LBL:==>=.ELV/>IERK

    =">E!A

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    +/2.'/'0656*+5X1A>KMB?B:MBLLN>BG 55'06+#. 06'424+5'5=

    ?HK:LM:@@>K>=;H:K=PBMAMA>?HEEHPBG@M>KFL

    8?M>K MA> BGBMB:E L A:= ;>>G >LM:;EBLA>=9 8:9M >:E>QM:GGN:EF>>MBG@H?MA> LMHKLMA>LNM>KF>QIBK>LBGMA:MR>:K5*#..$''.'%6'&61*1.&1((+%'(146*'6'4/1(6*4'';'#45 MHLN=MAHL> PAHL> M>KF >QIBK>L LH MA:M MA> M>KF H?H??B H? HG> QIBK>BG>::K

    1A> K BG55'06+#. 06'424+5'5 >QIEB>R>:K

    M>KFL BK@:LVL K =H>L GHM 1ANL MA> W?NEE M>KFX LI>= ;R MA>

    KBG55'06+#.06'424+5'5P:LMAK>>R>:KL1A>W?NEEM>KFXOBLN:EBS>=

    ;R MA> LM:MNM> ;:L>= HG BK@:LVL K BL NGMBE WMA> :GGN:E F>>MBG@ H?

    LMHKL A>E= BG MA> MABK= R>:K ?HEEHPBG@ MA> R>:K H? MA>BK >E> MA:M W8M9A> PHK= U:GGN:EV FNLM F>:G HG> MABG@ :G= HG>

    MABG@ HGER ?HK :EE INKIHL>L MAKHN@AHNM MA> LM:MNM>X

    ' :@K>> :G= FR

    AHE=BG@A>K>@BO>LMA>PHK=:GGN:E:LBG@E>GMF>:GBG@MAKHN@AHNM

    MA> LM:MNM> +RAHE=BG@ =H>LGHM @BO>W:GGN:EXFHK>MA:G HG>F>:GBG@Y

    PA>MA>KBMBL:GW:GGN:E>E>>MBG@XBMHO>KR R>:K NM MA>K> BL GH LM:MNMHKR K>JNBK>F>GM MA:M MA>K> ;> :

    &:M

    &:M>FIA:LBL:==>=!>KMB?B:KM[

    .ELV/>IERK

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    =NK:MBHG:E FBGBFNF :FHNGM H? MBF> ;>MP>>G :GGN:E >E>>MBG@LNGE>LLBMBLLHLI>=BG:KL=;RMA>I:KMB>L:K>>:LBER=BLMBG@NBLA:;E> 18'08

    166'4 BGOHEO>= : K :F>G=F>GM MA:M PHNE= =>K>=

    ;H:K=LHMA:M:=BK>BFF>=B:M>ERK>FHO>=PBMAHKPBMAHNM

    ;>NG=>KMA>LMBHGVLK==BK>FHO>=PBMAHNM1ANLBMP:L:KER:WK>FHO:EX

    :G= =B= GHM:==K>LLMA>JN>LMBHGH? PA>G BGMA>R>:K:G W:GGN:E F>>MBG@X

    FNLM ;> A>E= ;NM BM BL BGLMKN GHG>MA>E>LL 1A>K> !BM:=>E &HE=BG@VL

    K = : LM:@@>K>= ;H:K= IKHOBLBHG PBMA E:G@N:@> LBFBE:K MH

    BK@:LVLKB>=BK>KFL>QIBK>:MMA>WMABK=:GGN:EF>>MBG@H?

    .E:BGMB??LVE :M HK:E:K@NF>GM?HK?NEERG=>=MA:M MA>E:G@N:@> WLA:EE;>

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

    ?K:G G=LH=>LIBM>MA> LDBEE?NE :=OH

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    MA> LMHKL ?HEEHPBG@ L:B= "BK>E>G

    :K@N>= MA:M WL>G M:D>G MH@>MA>K >GMBME> :

    =BK>E>= BG: :U?NEEM>KFVH? MAK>>

    R>:KLX1A>!HNKMK>C>=MA:M:K@NF>GMAHP>O>KAHE=BG@MA:M0>:=BK>KO>:U?NEEM>KFVLL>= PBEE H? MA>

    F:CHKBMRX

    1.)1((841,'%6#8+5+100%BLMA>HGER=;RMA>I:KMB>LBG

    PAB!HNKM>QIK>LLERK>=MA>JN>LMBHGH?PA>MA>K: MBG@X >:KEB>KBG MA> R>:K MA:G BM P:L ABLMHKBE=1ABLBL=BLMBG@NBLA:;E>?BKLM;>MA>=BK>?BG>=M>KFH?H??BNGEBD>BK@:L +HK>HO>KMA>K>P:LGH :GGN:E F>>MBG@ >:KEB>K BG MA> R>:K OBHE:M>= LHF> LM:MNMHKR HK

    K IKHOBLBHG

    'GLM>:= +K "HE@H?? :K@N>= MA:M AHE=BG@ MA>F>>MBG@

    &:M

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    4*">E!A$>;

    &:MG.KHC>=WMMA>>QIBK:MBHGH?MA>BGBMB:EM>KF

    :G=H?>:KFH?>::E>=MHL>KO> (14#6*4'';'#46'4/X>FIA:LBL:==>=

    'G=>>=.KHC>E=:G:GGN:EF>>MBG@BGHO>K:R>:K&:M

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    >:KEB>KBGMA>R>:KP:L:GBG>JNBM:;E>F:GBINE:MBHGH?MA>>E>K%*0'..:G=.#5+751A>MANLBLBG:IIEBMHMABL

    2EMBF:M>ER MA> IHEBGML G:;E>L ?BG> ?HK MA>FL>EO>L

    PA>GMA>BK:GGN:EF>>MBG@LLA:EE;>A>E= 1A> "%!* =H>LGHM =>?BG> MA>

    M>KFW:GGN:EF>>MBG@X:G='PBEEGHMK>:=:LI>G:;EBG@IKHOBLBHG"BK>?K>>MHLI>GMA>:GGN:EF>>MBG@LA:EEH?K>>MHBM:LMA>R

    L>>?BMLHEHG@:LMA>R=HGHMOBHE:M>MA>EBFBM:MBHGLMA:M=H:II>:KBGMA>

    LM:MNM>MA>=:R:G=FHGMAGMK>EB>L

    FHLMA>:OBERHGMA>BFI:PHK=W:GGN:EXA:LHG0>W?NEEM>KFXH?:=BK>KOBG@HG:LM:@@>K>=;H:K=,HM:EE

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

    '''.[

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    LA:O>=;H:K=L:G=MA>M>KFW:GGN:EF>>MBG@XFNLMF>:G

    MA>L:F>MABG@?HKL;HMAPBMA:G=PBMAHNM=;H:K=L1A>

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    =BL>MBG@LX GHM MA> L>LM MA:M MA> K>=;H:K=LBLMA:M:W?NEEM>KFXBLMAK>>R>:KL:G=:

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    PHNE=W=>LM:;BEBS>MA>LM:@@>K>=;H:K=LH?">E:P:K>LX1ABLBL

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    GL> HK=BG:KR E:G@N:@> K>:=BG@ MA:M :G W:GGN:E F>>MBG@X FNLM

    A:II>G HG >O>KR R>:K :K M>KFL H? HNK LM:MNM> BML

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    ;RE:PLA:O>;>>GPKBMM>GBG:GHGLI>G=>=?:LABHGBMBLGHM?HK

    MABL !HNKM MH MPBLM MA>BK IE:BG PHK=L MH :O> : INKIHKM>= BGM>GM H? MA>

    =K:?M>KL1A>LHENMBHGBL?HK=K:?M>KLMH>FIEHR:K:G=LBFIE>E:G@N:@>MH

    IKHOB=>:KL :G= =K:?MLF>G MAKHN@A LNE:G@N:@>:L W1A>

    :GGN:E LA:K>AHE=>K F>>MBG@ LA:EE ;> A>E= :L ER :L IK:

    L:F>FHGMAH?>::KLH:LMH>GLNK>MA:MMA>M>KFLH?H??BH?=BK>:M>R>:KBGE>G@MAX'GLAHKMMABLBLGHMMA>>G=H?

    MA>PHKE=?HKLM:@@>K>=;H:K=LBMBL:G>:LR?BQB?BMG>>=L?BQBG@

    ">E:P:K>E:PIK>LLGHFBGBFNF:FHNGMH?MBF>MA:MFNLM>E:IL>

    ;>MP>>G :GGN:E LMHK F>>MBG@L H? : ">E:P:K> "%!* IK>LL HGER MA> F:QBFNF :FHNGM H?MBF> MA:M F:R

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    MA>I:KMB=G>>=L:G=E !A ,HO :KRHPG;RE:PLX #((=&57$01/%#/'4#84#0-+01=">E

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    :;L>G H? : LI>= =:M> HK MBF> I>KBH= ?HK MA> F>>MBG@ =BK>=F:R:I:KMB

    ?HK:@BO>G:GGN:EF>>MBG@'GMABLMA>LMHKLH?BK@:L:MBML

    0>IM>F;>K:GGN:EF>>MBG@OHM>=MH:F>G=MA>LM:;EBLA : I:KMBKBH= H?MA> R>:K (:GN:KR?HK MA> F>>MBG@

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    ;RE:PLHKKGHK=H>LBME:P:K> LBK>L : W,HKMA 0M:KXY:G BGO:KB:;E> =>M>KFBG:M>

    :G=?BQ>=M>KFH?H??BY?HKBML=BK>

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    MHLI>KFLA:EE;>?HK:=>?BG>=I>KBH=H?MBF>>@:

    MAK>> R>:K M>KF HK : M>KF GHM E>LL MA:G FHGMAL HK LHF> HMA>K

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    MA>=NMRMHK>?HKFMA>:=BGKLHK;RE:PLLH:LMHF:D>

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    BLO:EB=NG=>K">E:P:K>E:P

    G-K=>KBFIE>F>GMBG@MABL-IBGBHGA:L;>>G>GM>K>=

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    EXHIBIT B

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    '/%0',!(+#0&-3#6

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  • 8/8/2019 Airgas' brief

    101/101

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