EX-10.11



 







Exhibit 10.11




CHART INDUSTRIES, INC.

2004 STOCK OPTION AND INCENTIVE PLAN




Section 1.   Purpose




     The Chart Industries, Inc. 2004 Stock Option and Incentive Plan, as the same may be amended
(the “Plan”), is designed to foster the long-term growth and performance of the Company by: (a)
enhancing the Company’s ability to attract and retain highly qualified employees; and (b)
motivating employees to serve and promote the long-term interests of the Company and its
stockholders through stock ownership and performance-based incentives. To achieve this purpose,
the Plan provides authority for the grant of Stock Options.



Section 2.   Definitions




     (a) “Acquisition Consideration” shall have the meaning set forth in Section 12(a) hereof.



     (b) “Affiliate” shall have the meaning ascribed to that term in Rule 12b-2 promulgated under
the Exchange Act.



     (c) “Award” shall mean a grant of Stock Options under this Plan.



     (d) “Award Agreement” shall mean any agreement between the Company and a Participant that sets
forth terms, conditions, and restrictions applicable to an Award.



     (e) “Board” or “Board of Directors” shall mean the Board of Directors of the Company.



     (f) “Change in Control” shall have the meaning set forth in Section 12(b) hereof.



     (g) “Code” shall mean the Internal Revenue Code of 1986, or any law that supersedes or
replaces it, as amended from time to time.



     (h) “Committee” shall mean the Board of Directors or any committee of the Board authorized by
the Board of Directors to administer this Plan.



     (i) “Common Stock” shall mean shares of Common Stock, par value $.01 per share, of the
Company, including authorized and unissued shares and treasury shares.



     (j) “Company” shall mean Chart Industries, Inc., a Delaware corporation.



     (k) “Director” shall mean a member of the Board of Directors.



 









 





     (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, and any law that supersedes
or replaces it, and the rules and regulations thereunder, as such law, rules and regulations may be
amended from time to time.



     (m) “Fair Market Value” of Common Stock shall mean, solely for purposes of this Plan, as of
any particular date, the fair market value of the Common Stock as determined by the Committee, or
pursuant to rules established by the Committee.



     (n) “Investor Rights Agreement” shall mean the Investor Rights Agreement, dated as of
September 15, 2003, among the Company, OCM Principal Opportunities Fund II, L.P., Audax Chart LLC,
and the other Stockholder parties thereto.



     (o) “Notice of Award” shall mean any notice by the Committee to a Participant that advises the
participant of the grant of an Award or sets forth terms, conditions, and restrictions applicable
to an Award.



     (p) “Participant” shall mean any person to whom an Award has been granted under this Plan.



     (q) “Person” shall mean an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture or other entity, or a
governmental authority.



     (r) “Related Person” means each of OCM Principal Opportunities Fund II, L.P., Audax Chart LLC,
each other person who is a “Stockholder” party to the Investor Rights Agreement (as the term
“Stockholder” is defined in the Investor Rights Agreement) as of the date of adoption of this Plan,
and the Affiliates of each of the foregoing.



     (s) “Stock Equivalent Unit” shall mean an Award that is valued by reference to the value of
shares of Common Stock.



     (t) “Stock Option” shall mean an Award granted pursuant to Section 6 hereof.



     (u) “Subsidiary” means a corporation, company or other entity (i) more than 50 percent of
whose outstanding shares or securities (representing the right to vote for the election of
directors or other managing authority) are, or (ii) which does not have outstanding shares or
securities (as may be the case in a partnership, joint venture or unincorporated association), but
more than 50 percent of whose ownership interest representing the right generally to make decisions
for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the
Company.



     (v) “Voting Power” shall mean, at any time, the total votes relating to the then-outstanding
securities entitled to vote generally in the election of Directors.



     (w) “Voting Stock” shall mean, at any time, the then-outstanding securities entitled to vote
generally in the election of Directors.



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Section 3.   Eligibility




     All employees of the Company and its Affiliates are eligible for the grant of Awards. The
selection of any such persons to receive Awards will be within the discretion of the Committee.
More than one Award may be granted to the same person.



     Notwithstanding the foregoing, any individual who renounces in writing any right that he or
she may have to receive Awards under the Plan shall not be eligible to receive any Awards
hereunder.



Section 4.   Shares of Common Stock Available for Awards; Adjustment




     (a) Number of Shares of Common Stock. The maximum aggregate number of shares of Common Stock
that may be subject to Awards granted under this Plan during the term of this Plan is 494,703
shares of Common Stock, subject to any adjustments made in accordance with the terms of this
Section 4.



     The assumption of obligations in respect of awards granted by an organization acquired by the
Company, or the grant of Awards under this Plan in substitution for any such awards, will not
reduce the number of shares of Common Stock available for the grant of Awards under this Plan.



     Shares of Common Stock subject to an Award that is forfeited, terminated, or canceled without
having been exercised will again be available for grant under this Plan, without reducing the
number of shares of Common Stock available for grant of Awards under this Plan.



     (b) No Fractional Shares. No fractional shares of Common Stock will be issued, and the
Committee will determine the manner in which the value of fractional shares of Common Stock will be
treated.



     (c) Adjustment. In the event of any change in the Common Stock by reason of a merger,
consolidation, reorganization, recapitalization, or similar transaction, or in the event of a stock
dividend, stock split, or distribution to stockholders (other than normal cash dividends), the
Committee will have authority to adjust, in any manner that it deems equitable, the number of
shares specified in Section 4(a) and the number and class of shares of Common Stock subject to
outstanding Awards, the exercise price applicable to outstanding Awards, and the Fair Market Value
of the shares of Common Stock and other value determinations applicable to outstanding Awards.



Section 5.   Administration




     (a) Committee. This Plan will be administered by the Committee. The Committee will, subject
to the terms of this Plan, have the authority to: (i) select the eligible employees who will
receive Awards; (ii) grant Awards; (iii) determine the number and types of Awards to be granted to
eligible employees; (iv) determine the terms, conditions, vesting periods, and restrictions
applicable to Awards, including timing and price; (v) adopt, alter, and repeal administrative rules
and practices governing this Plan; (vi) interpret the terms and provisions of this Plan and any
Awards granted under this Plan, including, where applicable, determining the



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method of valuing any Award and certifying as to the satisfaction of such Awards; (vii)
prescribe the forms of any Notices of Award, Award Agreements, or other instruments relating to
Awards; and (viii) otherwise supervise the administration of this Plan.



     (b) Delegation. The Committee may delegate any of its authority to any other Person or
Persons that it deems appropriate.



     (c) Decisions Final. All decisions by the Committee, and by any other Person or Persons to
whom the Committee has delegated authority, to the extent permitted by law, will be final and
binding on all Persons.



     (d) No Liability. Neither the Committee nor any of its members shall be liable for any act
taken by the Committee pursuant to the Plan. No member of the Committee shall be liable for the
act of any other member.



Section 6.   Awards




     (a) Grant of Awards. The Committee will determine the Awards to be granted to each
Participant and will set forth in the related Notice of Award or Award Agreement the terms,
conditions, vesting periods, and restrictions applicable to each Award. Awards may be granted in
replacement of, or in substitution for, other awards granted by the Company, whether or not granted
under this Plan. The Company may assume obligations in respect of awards granted by any Person
acquired by the Company or may grant Awards in replacement of, or in substitution for, any such
awards.



     (b) Types of Awards. Awards of Stock Options may be granted under the Plan. A Participant
who is granted an Award of a Stock Option shall have the right to purchase a specified number of
shares of Common Stock, during a specified period, and at a specified exercise price, all as
determined by the Committee. All Stock Options shall be non-qualified stock options subject to the
provisions of Section 83 of the Code. No Stock Option shall be intended to qualify as an incentive
stock option under Section 422 of the Code.



     (c) Termination of Awards. Any Award granted under this Plan shall expire, and the
Participant to whom such Award was granted shall have no further rights with respect thereto, on
the tenth anniversary of the date of grant of such Award, or on such earlier date as may be
established by the Committee and provided in the Notice of Award or Award Agreement with respect to
such Award.



Section 7.   Deferral of Payment




     With the approval of the Committee, the delivery of the shares of Common Stock, cash, or any
combination thereof subject to an Award may be deferred, either in the form of installments or a
single future delivery. The Committee may also permit selected Participants to defer the receipt
of some or all of their Awards, as well as other compensation, in accordance with procedures
established by the Committee to assure that the recognition of taxable income is deferred under the
Code. Deferred amounts may, to the extent permitted by the Committee, be credited as cash or Stock
Equivalent Units. The Committee may also establish rules and



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procedures for the crediting of interest on deferred cash payments and dividend equivalents on
Stock Equivalent Units.



Section 8.   Payment of Exercise Price




     The exercise price of an Award may be paid in cash, by the transfer of shares of Common Stock,
by the surrender of all or part of an Award (including the Award being exercised), or by a
combination of these methods, as and to the extent permitted by the Committee. The Committee may
prescribe any other method of paying the exercise price that it determines to be consistent with
applicable law and the purpose of this Plan.



Section 9.   Taxes Associated with Awards




     Prior to the payment of an Award or upon the exercise or release thereof, the Company may
withhold, or require a Participant to remit to the Company, an amount sufficient to pay any
federal, state, and local taxes associated with the Award. The Committee may, in its discretion
and subject to such rules as the Committee may adopt, permit a Participant to pay any or all taxes
associated with the Award in cash, by the transfer of shares of Common Stock, by the surrender of
all or part of an Award (including the Award being exercised), or by a combination of these
methods.



Section 10.   Termination of Employment




     If the employment of a Participant terminates for any reason, all unexercised, deferred, and
unpaid Awards may be exercisable or paid only in accordance with rules established by the Committee
or as specified in the particular Award Agreement or Notice of Award. Such rules may provide, as
the Committee deems appropriate, for the expiration, continuation, or acceleration of the vesting
of all or part of the Awards.



Section 11.   Termination of Awards Under Certain Conditions




     The Committee may cancel any unexpired, unpaid, or deferred Awards at any time if the
Participant is not in compliance with all applicable provisions of this Plan or with any Notice of
Award or Award Agreement, or if the Participant, without the prior written consent of the Company,
engages in any of the following activities:



     (a) Renders services for an organization, or engages in a business, that is, in the judgment
of the Committee, in competition with the Company or its Subsidiaries; or



     (b) Discloses to anyone outside of the Company or its Affiliates, or uses for any purpose
other than the Company’s business any confidential information or material relating to the Company,
whether acquired by the Participant during or after employment with the Company, in a fashion or
with a result that the Committee, in its judgment, deems is or may be injurious to the best
interests of the Company.



     The Committee may, in its discretion and as a condition to the exercise of an Award, require a
Participant to acknowledge in writing that he or she is in compliance with all applicable



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provisions of this Plan and of any Notice of Award or Award Agreement and has not engaged in
any activities referred to in clauses (a) and (b) above.



Section 12.   Change in Control




     (a) General. In the event of a Change in Control of the Company, the Committee shall have the
right, in its sole discretion, to: (i) accelerate the exercisability of any Stock Options,
notwithstanding any limitations set forth in the Plan; (ii) cancel all outstanding Stock Options in
exchange for the kind and amount of shares of the surviving or new corporation, cash, securities,
evidences of indebtedness, other property or any combination thereof receivable in respect of one
share of Common Stock upon consummation of the transaction in question (the “Acquisition
Consideration”) that the Participant would have received had the Stock Option been exercised prior
to such transaction, less the applicable exercise price therefor; (iii) cause the Participant to
have the right thereafter and during the term of the Stock Option to receive upon exercise thereof
the Acquisition Consideration receivable upon the consummation of such transaction by a holder of
the number of shares of Common Stock which might have been obtained upon exercise of all or any
portion thereof; or (iv) take such other action as it deems appropriate to preserve the value of
the Award to the Participant. Alternatively, the Committee shall also have the right to require
any purchaser of the Company’s assets or stock, as the case may be, to take any of the actions set
forth in the preceding sentence as such purchaser may determine to be appropriate or desirable.



     (b) Definition. As used in this Plan, the term “Change in Control” shall mean the occurrence
at any time after the date of this Plan of any of the following events:




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




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




     (iii) Any person (as the term “person” is used in Section 13(d)(3) of the Exchange Act)
other than a Related Person becomes the beneficial owner (as the term “beneficial owner” is
defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange
Act) of securities representing more than 50% of the Voting Power, unless such beneficial
ownership results solely from arrangements under which such person does not control the
power to vote a majority of the Voting Power;



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     (iv) 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 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 other than a contract or transaction with a Related
Person; or




     (v) Such other or alternative event or events as the Committee shall, in its sole and
absolute discretion, deem to be a “Change in Control” for purposes of this Plan or any
Notice of Award or Award Agreement entered into pursuant hereto.



     Notwithstanding the foregoing provisions of paragraphs (iii) and (iv) of this Section 12(b), a
“Change in Control” shall not be deemed to have occurred (i) solely because (A) the Company, (B) a
Subsidiary, (C) a Related Person, or (D) any Company-sponsored employee stock ownership plan or
other employee benefit plan of the Company or any Subsidiary, or any entity holding shares of
Voting Stock for or pursuant to the terms of any such plan, becomes the beneficial owner (as the
term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated
under the Exchange Act) of securities representing more than 50% of the Voting Power or because the
Company files a report or proxy statement disclosing 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, or
(ii) solely because of a change in control of any Subsidiary.



     The manner of application and interpretation of the foregoing provisions of this Section 12(b)
shall be determined by the Committee in its sole and absolute discretion.



Section 13.   Amendment, Suspension, or Termination of this Plan; Amendment of Outstanding Awards




     (a) Amendment, Suspension, or Termination of this Plan. The Board of Directors may amend,
suspend, or terminate this Plan at any time; provided, however, that no action of the Board of
Directors may result, without the approval of the Company’s stockholders, in making any change to
the Plan that requires the approval of the Company’s stockholders in order to comply with
applicable law or the rules of the principal securities exchange (if any) upon which the Common
Stock may then be traded or quoted.



     (b) Amendment of Outstanding Awards. The Committee may, in its discretion, amend the terms of
any Award, prospectively or retroactively, but no such amendment may impair the rights of any
Participant without his or her consent. The Committee may, in whole or in part, waive any
restrictions or conditions applicable to, or accelerate the vesting of, any Award.



Section 14.   Awards to Foreign Nationals and Employees Outside the United States




     To the extent that the Committee deems appropriate to comply with foreign law or practice and
to further the purpose of this Plan, the Committee may, without amending this Plan, (a) establish
special rules applicable to Awards granted to Participants who are foreign nationals, are employed
outside the United States, or both, including rules that differ from those established



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generally under this Plan, and (b) grant Awards to such Participants in accordance with those
rules.



Section 15.   Nonassignability




     Unless otherwise determined by the Committee, (a) no Award granted under the Plan may be
transferred or assigned by the Participant to whom it is granted other than by will, pursuant to
the laws of descent and distribution or pursuant to a qualified domestic relations order as defined
in the Code, and (b) an Award granted under this Plan may be exercised, during the Participant’s
lifetime, only by the Participant or by the Participant’s guardian or legal representative. The
Committee, in its sole discretion, may provide for the transferability of particular Awards under
this Plan on such terms and conditions as the Committee may determine.



Section 16.   Terms of Awards and Related Agreements Need not be Identical




     The form and substance of Awards, Award Agreements and Notices of Awards, whether granted at
the same or different times, need not be identical. The determinations made by the Committee under
the Plan need not be uniform and may be made selectively among persons who receive or are eligible
to receive Awards under the Plan, whether or not such persons are similarly situated. Without
limiting the generality of the foregoing, the Committee shall be entitled, among other things, to
make non-uniform and selective determinations, and to enter into non-uniform and selective Award
Agreements, in respect of (a) the persons eligible to receive awards under the Plan, (b) the terms
and provisions of Awards under the Plan, and (c) the exercise by the Committee of its sole
discretion in respect of the Plan or any Award Agreement.



     Subject only to the terms of the Plan, the Committee shall have the authority to prescribe the
terms of any Awards and the provisions of any Award Agreements, Notices of Award or other
instruments entered into with respect to the same; it being expressly understood that the Committee
shall have the authority to include in any such Award Agreements, Notices of Award or other
instruments relating to Awards, such representations, warranties, covenants and agreements on
behalf of the Company or the Participant as it deems necessary or appropriate, including, without
limitation, covenants relating to non-competition, non-solicitation and non-disclosure of
confidential information and covenants providing that part or all of the shares of Common Stock
purchased upon the exercise of any Stock Option shall be or may be subject to restrictions on
transfer in form and substance designated by the Committee.



Section 17.   Securities Law and Related Matters




     The Committee may, if it deems appropriate in its sole discretion, condition any grant of an
Award or sale of Common Stock to any Participant upon a receipt of an appropriate investment
representation from the Participant in compliance with applicable securities laws, rules and
regulations, and may require any Participant to make such representations and furnish such
information as it may, in its sole discretion, deem appropriate in connection with the grant of an
Award or issuance of Common Stock in compliance with applicable law.



     All certificates representing shares of Common Stock issued under this Plan shall bear such
legends as the Committee may deem appropriate in order to assure compliance with



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applicable securities laws, rules and regulations, applicable restrictions on transfer and any
applicable provision of the Company’s Certificate of Incorporation or By-Laws, as in effect from
time to time.



Section 18.   Governing Law




     The interpretation, validity, and enforcement of this Plan will, to the extent not otherwise
governed by the Code or the securities laws of the United States, be governed by the laws of the
State of Delaware.



Section 19.   No Rights as Employees/Stockholders




     Nothing in the Plan or in any Award Agreement or Notice of Award shall confer upon any
Participant any right to continue in the employ of the Company or an Affiliate of the Company or to
be entitled to receive any remuneration or benefits not set forth in the Plan or such Award
Agreement or Notice of Award, or to interfere with or limit either the right of the Company or an
Affiliate of the Company to terminate the employment of such Participant at any time with or
without cause. Nothing contained in the Plan or in any Award Agreement or Notice of Award shall be
construed as entitling any Participant to any rights of a stockholder as a result of the grant of
an Award until such time as shares of Common Stock are actually issued to such Participant pursuant
to the exercise of a Stock Option.



Section 20.   Effective and Termination Dates




     (a) Effective Date. This Plan was approved by the Board of Directors on February 12, 2004 and
becomes effective upon that date.



     (b) Termination Date. This Plan will continue in effect until midnight on February 12, 2014;
provided, however, that Awards granted on or before that date may extend beyond that date and
restrictions and other terms and conditions imposed on any Award granted on or before that date may
extend beyond such date.




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