Form of Stock Option Agreement



 Exhibit 10.3 
  
 STOCK OPTION AGREEMENT 
  

[Form for grantees other than Sam Thomas] 
  
 THIS STOCK OPTION AGREEMENT is entered into as of the 19th day of March, 2004, by and between Chart Industries, Inc., a Delaware corporation (the
“Company”), and                              (the “Optionee”). 
  
 WITNESSETH: 
  
 WHEREAS, the Compensation Committee of the Board of Directors (the
“Committee”) is authorized to administer the Company’s 2004 Stock Option and Incentive Plan (the “Plan”); and 
  
 WHEREAS, the Committee has determined that the Optionee, as a key employee of
[                    , an Affiliate of] the Company should be granted a stock option under the Plan upon the terms and conditions set forth in
this Agreement, and for the number of shares of Common Stock, par value $.01 per share, of the Company (the “Shares”) set forth herein below; 
  
 NOW, THEREFORE, the Company and the Optionee hereby agree as follows: 
  
 1. Definitions. Capitalized terms shall have the meanings set forth in the Plan (as defined below) unless otherwise
specifically set forth below or elsewhere herein: 
  

	 	(a)	The word “Agreement” shall mean this instrument. 

  

	 	(b)	The words “Credit Agreement” shall mean that certain Amended and Restated Revolving Credit Agreement dated as of September 15, 2003, by and among the Company, its lenders
and the other parties thereto identified on the signature pages of said Agreement. 

  

	 	(c)	The word “EBITDAR” shall have the same meaning as “Consolidated EBITDA” as defined in the Credit Agreement. 

  

	 	(d)	The words “Family Group” shall mean with respect to the Optionee such person’s spouse, siblings and descendants (whether or not adopted) and any trust, family limited
partnership or limited liability company that is and remains solely for the benefit of such person and/or such person’s spouse, siblings and/or descendants. 

  

	 	(e)	The word “Option” shall mean the right and option of the Optionee to purchase Shares pursuant to the terms of this Agreement. 

  

	 	(f)	The words “Option Price” shall mean the price at which Shares may be acquired upon the exercise of any Option. 









	 	(g)	The words “Option Shares” shall mean (i) the Shares and any other capital stock or equity securities of the Company acquired by the Optionee or his
successors by virtue of the exercise of the Option and (ii) any capital stock or other equity securities issued or issuable directly or indirectly with respect to the securities referred to in clause (i) above by way of stock dividend or split or in
connection with a combination of shares, recapitalization, merger, consolidation or other reorganization. As to any particular shares constituting Option Shares, such shares shall cease to be Option Shares when they have been sold to the public
pursuant to a resale offering registered under the Securities Act or to the public through a broker dealer or market maker pursuant to the provisions of Rule 144 adopted under the Securities Act. 

  

	 	(h)	The words “Personal Representative” shall mean, following the Optionee’s death, the person who shall have acquired, by will or by the laws of descent and
distribution, the right to exercise any Option. 

  

	 	(i)	The word “Plan” shall mean the Company’s 2004 Stock Option and Incentive Plan, as in effect on the date of this Agreement (a copy of which is attached as Exhibit A).


  

	 	(j)	The words “Public Offering” shall mean a public offering and sale of capital stock or equity securities of the Company pursuant to an effective registration statement
under the Securities Act. 

  

	 	(k)	The words “Qualified Public Offering” shall mean a Public Offering which results in aggregate proceeds to the Company and/or the Stockholders (as defined in the Investor
Rights Agreement) of at least $50,000,000. 

  

	 	(l)	The words “Securities Act” shall mean the Securities Act of 1933, as amended or any similar federal law in force. 

  

	 	(m)	The words “Successor Agreement” shall mean an agreement in the form attached hereto as Exhibit B under which any prospective transferee of Option Shares agrees to be bound
by the obligations imposed hereunder on a holder of Option Shares. 

  
 2. Grant of Option. Effective as of the date of this Agreement, the Company grants to the Optionee, upon the terms and conditions set forth hereinafter, the right and option to purchase all or any number of an
aggregate of              Shares. All of the Shares shall be subject to a nonqualified stock option at an Option Price of $13.89 per Share. 
  
 3. Term of Option. The term of the Option shall be for a period of ten
(10) years from the date hereof. The Option shall expire at the close of regular business hours 

  

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at the Company’s principal office in Mayfield Heights, Ohio, on the last day of the term of the Option, or, if earlier, on the applicable expiration
date provided for in Sections 5, 6 and 7 hereof. 
  
 4.
Exercise Dates. The Optionee shall be entitled to exercise the Option only to the extent the Option becomes exercisable under the terms and conditions of the vesting schedule attached hereto as Exhibit C. To the extent that the Option becomes
exercisable with respect to any Shares, as provided on Exhibit C, the Option may thereafter be exercised by the Optionee either with respect to all or any number of such Shares at any time or from time to time prior to the expiration of the Option.
Except as provided in Sections 5 and 6 hereof, the Option may not be exercised at any time unless the Optionee shall be an employee or director of the Company or one of its Affiliates (an “Eligible Participant”) at such time. 

  
 5. Termination of Employment. So long as the Optionee
shall continue to be an Eligible Participant, the Option shall not be affected by (a) any temporary leave of absence approved in writing by the Company or an Affiliate of the Company, or (b) any change of duties or position (including transfer to or
from a subsidiary or other Affiliate). If the Optionee ceases to be an Eligible Participant for any reason other than death, the Option may be exercised only to the extent of the purchase rights, if any, which, pursuant to Section 4 hereof, existed
as of the date the Optionee ceases to be an Eligible Participant and which have not theretofore been exercised; provided, however, that the Committee may in its absolute discretion determine (but shall not be under any obligation to determine) that
such purchase rights shall be deemed to include additional Shares which are subject to the Option. Subject to the provisions of Section 6, upon an Optionee’s ceasing to be an Eligible Participant, such purchase rights shall in any event
terminate upon the earlier of (a) three (3) months after the date the Optionee ceased to be such, or (b) the last day of the term of the Option. Nothing in this Agreement shall confer upon any Optionee any right to continue in the employ or service
of the Company or an Affiliate of the Company, or to interfere with or limit either the right of the Company or an Affiliate of the Company to terminate his employment or service at any time or the right of the stockholders of the Company or an
Affiliate of the Company to remove him as a member of the Board of Directors of the Company or an Affiliate of the Company in any of the foregoing cases with or without cause. 
  
 6. Death of Optionee. If the Optionee dies while he is an Eligible Participant, or within three (3) months of the
Optionee’s having ceased to be such, the Optionee’s Personal Representative may exercise the Option to the extent of the purchase rights, if any, which, pursuant to Section 4 hereof, existed as of the date of the Optionee’s death and
which have not theretofore been exercised; provided, however, that the Committee may in its absolute discretion determine (but shall not be under any obligation to determine) that such purchase rights shall be deemed to include additional Shares
which are subject to the Option. Such purchase rights shall in any event terminate upon the earlier of (a) the first anniversary of the date the Optionee ceased to be an Eligible Participant; or (b) the last day of the term of the Option.

  

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 7. Change in Control. In the event of a Change in Control (as defined under the terms of the Plan)
the Optionee shall have the immediate right (notwithstanding the provisions of Section 4 hereof) to exercise the Option with respect to all Shares covered by the Option. 
  
 8. Exercise of Option. The Option may be exercised by delivering to the Treasurer of the Company at its principal
office, 5885 Landerbrook Dr., Cleveland, OH 44124, a completed Notice of Exercise of Option (obtainable from the Treasurer of the Company) setting forth the number of Shares with respect to which the Option is being exercised. Such Notice shall be
accompanied by payment in full for the Shares. Such payment shall be made by certified or cashier’s check payable to the Company in the amount of the aggregate purchase price for such Shares, or, if permitted by the Committee, in whole or in
part in Shares having a Fair Market Value on the date the Option is exercised equal to that portion of the purchase price for which payment in cash is not made, or by any other method prescribed by the Committee that it determines to be consistent
with applicable law and the purposes of the Plan. 
  
 9.
Issuance of Share Certificates. Subject to the last sentence of this Section 9 and to Sections 16 and 17, upon receipt by the Company prior to expiration of the Option of a duly completed Notice of Exercise of Option to exercise the Option
accompanied by full payment for the Shares being purchased pursuant to such Notice (and, with respect to any Option exercised pursuant to Section 6 or Section 11 hereof by someone other than the Optionee, accompanied in addition by proof
satisfactory to the Committee of the right of such person to exercise the Option), the Company shall promptly cause to be made or otherwise delivered to the Optionee, a certificate for the number of shares so purchased. The Optionee shall not have
any of the rights of a stockholder with respect to the Shares which are subject to the Option unless and until a certificate representing such Shares is issued to the Optionee. The Company shall not be required to issue any certificates for Shares
upon the exercise of an Option granted under the Plan prior to (i) obtaining any approval from any governmental agency which the Committee shall, in its sole discretion, determine to be necessary or advisable, (ii) the admission of such Shares to
listing on any securities exchange (if any) on which the Shares may then be listed or quoted, and (iii) completion of any registration or other qualification of the Shares under any state, federal or other law or ruling or regulations of any
governmental body which the Committee shall, in its sole discretion, determine to be necessary or advisable, or the determination by the Committee, in its sole discretion, that any registration or other qualification of the Shares is not necessary
or advisable. 
  
 10. Restrictions on Transfer of Option
Shares. 
  
 10.1 Transfer Restrictions. No holder of
Option Shares may sell, transfer, assign, pledge or otherwise directly or indirectly dispose of (whether with or without consideration and whether voluntarily or involuntarily or by operation of law) (a “Transfer”) any Option Shares or
interest therein, except any Exempt Transfer (as defined below) of Option Shares pursuant to and in accordance with Section 10.2. 
  

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 10.2 Exempt Transfers. The restrictions set forth in this Section 10.1 above shall not apply to
any of the following Transfers: 
  
 (a) subject to the final
paragraph of this Section 10.2, (1) a Transfer of Option Shares by will or pursuant to the applicable laws of descent and distribution, (2) a Transfer of Option Shares among the transferor’s Family Group, or (3) a Transfer pursuant to a
qualified domestic relations order as defined in the Code; or 
  
 (b) a Transfer that has been approved in advance by the Committee, in its sole discretion, subject to such terms and conditions as the Committee may impose on such Transfer, in its sole discretion, including requiring the
transferee to become subject to the transfer restrictions provided for in this Agreement. 
  
 A transferee of Option Shares pursuant to a Transfer described in clause (a) above is sometimes referred to herein as a “Permitted Transferee.” Not less than five business days prior to any Transfer of
Option Shares pursuant to the foregoing clause (a), the transferor shall deliver a written notice to the Company, which notice shall disclose in reasonable detail the nature of the proposed Transfer and the identity of the proposed transferee(s).
Notwithstanding the foregoing, the restrictions contained in this Agreement shall continue to be applicable to the Option Shares following any Transfer to a Permitted Transferee, and no Transfer to a Permitted Transferee may be consummated unless
prior thereto the transferor thereof shall have complied with Section 10.3 below. In addition, and notwithstanding the foregoing, no holder of Option Shares may avoid the provisions of this Agreement by making one or more transfers to one or more
Permitted Transferees and then disposing of all or any portion of such Person’s interest in any such Permitted Transferee, and any Transfer or attempted Transfer in violation of this covenant shall be void and otherwise subject to Section 10.3
below. Any Transfer permitted pursuant to this Section 10.2 is referred to in this Agreement as an “Exempt Transfer.” 
  
 10.3 Successor Agreement; Void Transfers. Prior to consummating, or committing to consummate, any Transfer of Option Shares to any
Person (including any Permitted Transferee), the transferor of such Option Shares shall cause each prospective transferee thereof to execute and deliver to the Company a Successor Agreement. Any Transfer or attempted Transfer of any Option Shares in
violation of the foregoing or any other provision of this Agreement shall be void, and the Company shall not record such Transfer on its books or treat any purported transferee of such Option Shares as the owner of such shares for any purpose.

  

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 10.4 Termination. The restrictions on the Transfer of Option Shares set forth in Sections 10.1 and
10.3, and the legend requirement set forth in Section 10.6, shall expire and terminate with respect to each Option Share upon the earliest to occur of (i) the consummation of a Qualified Public Offering, (ii) the occurrence of a Change of Control,
(iii) the consummation of an Approved Sale (as defined in the Investor Rights Agreement), or (iv) such time as the Committee may determine, in its sole discretion, that such restrictions shall cease to apply. 
  
 10.5 Resales of Option Shares. In addition to the restrictions imposed
above, no holder of Option Shares shall, directly or indirectly, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend, or
otherwise Transfer any Option Shares during the seven days prior to and the 180-day period beginning on the effective date of the Company’s initial primary Public Offering (i.e., the initial Public Offering for the Company’s own account)
consummated after the date hereof, any underwritten Demand Registration or any underwritten Piggyback Registration (as such terms are defined in the Investor Rights Agreement) (except as part of such underwritten registration), unless the
underwriters managing such registered Public Offering otherwise agree in writing. 
  
 10.6 Legend. Each certificate evidencing Option Shares and each certificate issued in exchange for or upon the transfer of any Option Shares (if such shares remain Option Shares as defined herein after such
Transfer) shall be stamped or otherwise imprinted with a legend in substantially the following form: 
  
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN TRANSFER RESTRICTIONS PURSUANT TO A STOCK OPTION AGREEMENT DATED AS OF MARCH
19, 2004, AMONG THE ISSUER OF SUCH SECURITIES (THE “COMPANY”) AND THE HOLDER OF SUCH SECURITIES. A COPY OF SUCH STOCK OPTION AGREEMENT WILL BE FURNISHED WITHOUT CHARGE BY THE COMPANY TO THE HOLDER HEREOF UPON WRITTEN REQUEST TO THE
COMPANY’S CHIEF FINANCIAL OFFICER.” 
  
 The legend set
forth above shall be promptly removed from the certificates evidencing any Option Shares for which the restrictions contained in Sections 10.1 and 10.3 have terminated in accordance with Section 10.4 hereof. 
  
 11. Successors in Interest, Etc. This Agreement shall be binding upon
and inure to the benefit of any successor of the Company and the heirs, estate, and Personal Representative of the Optionee. The Option shall not be transferable other than by will or the laws of descent and distribution, and the Option may be
exercised during the lifetime of the Optionee only by the Optionee provided that a guardian or other legal representative who has been duly appointed for such Optionee may exercise the Option on behalf of the Optionee. A deceased Optionee’s
Personal Representative shall act in the place and stead of the deceased Optionee with respect to exercising an Option or taking any other action pursuant to this Agreement. 
  

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 12. Provisions of Plan Control. This Agreement is subject to all of the terms, conditions, and
provisions of the Plan and to such rules, regulations, and interpretations relating to the Plan as may be adopted by the Committee and as may be in effect from time to time. A copy of the Plan is attached hereto as Exhibit A and is incorporated
herein by reference. In the event and to the extent that this Agreement conflicts or is inconsistent with the terms, conditions, and provisions of the Plan, the Plan shall control, and this Agreement shall be deemed to be modified accordingly. Any
action or determination that may be taken or made by the Committee under this Agreement alternatively may be taken or made by the Board of Directors of the Company, which shall be deemed to act as the “Committee” for purposes of this
Agreement in so taking or making any such action or determination. 
  
 13. No Liability Upon Distribution of Shares. The liability of the Company under this Agreement and any distribution of Shares made hereunder is limited to the obligations set forth herein with respect to such distribution and no
term or provision of this Agreement shall be construed to impose any liability on the Company or the Committee in favor of any person with respect to any loss, cost or expense which the person may incur in connection with or arising out of any
transaction in connection with this Agreement. 
  
 14.
Withholding. The Optionee agrees that the Company and any Affiliate of the Company may make appropriate provision for tax withholding with respect to the transactions contemplated by this Agreement including such withholding as may be
appropriate with respect to income and social security taxes. Optionee must, no later than the date as of which the value of the Option first becomes includible in the gross income of the Optionee for income tax purposes, pay to the Company, or make
arrangements satisfactory to the Company regarding payment of, any federal, state or local taxes of any kind required by law or other amounts to be withheld with respect to the Option. The obligations of the Company under this Agreement are
conditioned on such payment, and the Company, to the extent permitted by law, has the right to deduct any such taxes or other amounts from any payment of any kind otherwise due to the Optionee. 
  
 15. Voluntary Award. The Optionee acknowledges and agrees that the
Option granted hereunder is granted on a voluntary basis and without creating legal rights on the part of the Optionee for the future. 
  
 16. Compliance with Regulatory Matters. The Optionee acknowledges that the issuance of capital stock is subject to limitations imposed by federal
and state law, and the Optionee hereby agrees that the Company shall not be obligated to issue any shares of Common Stock upon exercise of the Option that would cause the Company to violate any rule, regulation, order or consent decree of any
regulatory authority (including without limitation the Securities and Exchange Commission and the principal securities exchange (if any) upon which the Common Stock is then traded or quoted) having jurisdiction over the affairs of the Company. The
Optionee agrees that he will provide 

  

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the Company with such information as is reasonably requested by the Company or its counsel to determine whether the issuance of shares of Common Stock
complies with the provisions described by this Section 16.  
  
 17. Investment Representation. The Optionee hereby represents and warrants that any Shares which he may acquire by virtue of the exercise of the Option shall be acquired solely for his own account, for investment purposes only, and
not with a view to distribution or resale; provided, however, that this restriction shall become inoperative in the event the Shares which are subject to the Option shall be registered under the Securities Act, part of a class of shares registered
under Section 12 of the Exchange Act, and exempt from the registration requirements of applicable state securities laws, or in the event there is presented to the Company an opinion of counsel satisfactory to the Company to the effect that the offer
or sale of the Shares which are subject to the Option may lawfully be made without registration under the Securities Act and applicable state securities laws. The Optionee agrees to sign a certificate to such effect at the time of exercising the
Option and agrees that the certificate for the Shares so purchased may be inscribed with the following legend to ensure compliance with the Securities Act and applicable state securities laws: 
  
 “THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS A REGISTRATION STATEMENT UNDER THE SECURITIES ACT WITH RESPECT TO
SUCH SHARES HAS BECOME EFFECTIVE AND ANY APPLICABLE REQUIREMENTS OF STATE SECURITIES LAWS ARE MET, OR UNLESS THE STOCKHOLDER ESTABLISHES TO THE SATISFACTION OF THE CORPORATION THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.” 

 
 18. Restricted Securities. The Optionee understands and
acknowledges that (a) as of the date of grant, none of the Shares have been registered under the Securities Act or any state securities laws, (b) unless so registered, all of the Shares will constitute “restricted securities” as defined in
Rule 144 under the Securities Act, (c) the Shares may not be transferred unless they become registered under the Securities Act or unless the holder thereof establishes to the satisfaction of the Company that an exemption from such registration is
available, (d) the Company will have no obligation to provide any such registration or take such steps as are necessary to permit sale of the Shares without registration pursuant to Rule 144 or otherwise, (e) at such time as the Shares may be
disposed of in routine sales without registration in reliance on Rule 144 under the Securities Act, such disposition may be made only in such amounts and in accordance with all of the terms and conditions applicable under Rule 144, and (f) if the
Rule 144 exemption is not available, compliance with some other exemption from registration will be required. 
  

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 19. Captions. The captions and section numbers appearing in this Agreement are inserted only as a
matter of convenience. They do not define, limit, construe or describe the scope or intent of the provisions of this Agreement. 
  
 20. Number. The use of the singular or plural herein shall not be restrictive as to number and shall be interpreted in all cases as the context
shall require. 
  
 21. Gender. The use of the feminine,
masculine or neuter pronoun shall not be restrictive as to gender and shall be interpreted in all cases as the context may require. 
  
 22. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to
the conflict of law principles of such State. 
  

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 IN WITNESS WHEREOF, the Company has caused this Agreement to be executed on its behalf by its duly
authorized officer, and the Optionee has hereunto set his hand, all as of the day and year first above written. 
  

			
	 CHART INDUSTRIES, INC.
 (“Company”)

		
	By:	 	 
	 	 	

	 	 	 Samuel F. Thomas
 Chief Executive Officer and President

		
	 	 	  


	 	 	 [Name of Optionee]
 (“Optionee”)



  

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 EXHIBIT A 
  
 CHART INDUSTRIES, INC. 2004 STOCK OPTION AND INCENTIVE PLAN 







 EXHIBIT B 
  

FORM OF SUCCESSOR AGREEMENT 
  
 This notice is being delivered to Chart Industries, Inc., a Delaware corporation (the “Company”), pursuant to Section 10.3 of that
certain Stock Option Agreement, dated as of March 19, 2004 (as amended from time to time, the “Stock Option Agreement”), by and between the Company and             .
Capitalized terms used herein shall have the meanings assigned to such terms in the Stock Option Agreement. 
  
 The undersigned hereby notifies the Company that [name of transferor] has transferred to the undersigned
             shares of Common Stock that are Option Shares. In connection with such transfer, the undersigned hereby agrees to be bound by Sections 10, 11, 17 and 18 of the Stock
Option Agreement and such other provisions of the Stock Option Agreement imposing obligations on a holder of Option Shares. 
  
 Any notice required under the Stock Option Agreement should be delivered to the undersigned at the address set forth below: 
  

			
	
	 
	

	 
	

	 Facsimile:
	 	 
	 	 	

	 Attention:
	 	 
	 	 	



			
		
	 Dated:
	 	 
	 	 	

	
	 
	

	[Transferee]









 EXHIBIT C 
  

VESTING SCHEDULE 
  
 The Optionee shall be entitled to exercise the Option only upon satisfaction of the terms set forth on this Schedule. 
  
 I. Vesting Based on Continuing in Service. 
  
 The Optionee shall be entitled to exercise the Option with respect to one
half of the Shares (the “Service Shares”) based on his continuing as an employee of the Company or one of its Affiliates. The Optionee shall be entitled to exercise the Option with respect to the number of Service Shares indicated below on
or after the date indicated opposite such number below: 
  

					
	 Annual Number
 of Service Shares with
 Respect to which
 Option may
 be Exercised

	 	 Total Service Shares
 with
 Respect to which
 Option may be
 Exercised

	 	 Date Beginning
 on which Option
 may be Exercised
 for such Service Shares


	 [12.5% of initial grant]
	 	 	 	January 1, 2005
	 [12.5% of initial grant]
	 	 	 	January 1, 2006
	 [12.5% of initial grant]
	 	 	 	January 1, 2007
	 [12.5% of initial grant]
	 	 	 	January 1, 2008

  
 II.
Vesting Based on Satisfaction of Financial Goals. 
  
 The
Optionee shall be entitled to exercise the Option with respect to one half of the Shares (the “Financial Goal Shares”) based on the Company’s realization of certain financial targets set forth below. If the Committee determines that
the Company has achieved the EBITDAR Minimum Target for a specified period set forth below, then the Optionee shall be entitled to exercise the Option with respect to the number of Financial Goal Shares indicated below opposite such specified period
on and after the date of such determination: 
  

							
	 Annual Number of
 Financial Goal
 Shares with respect
 to which Option may
 be Exercised

	 	 Total Financial
 Goal Shares with
 respect to which
 Option may be
 Exercised

	 	 Period after which
 Option may be
 Exercised for such
 Financial Goal
 Shares

	 	 EBITDAR
 Minimum
 Target1


	 [12.5% of initial grant]
	 	 	 	 Nine month period
 ending 12/31/2004
	 	 
	 [12.5% of initial grant]
	 	 	 	Fiscal Year 2005	 	 
	 [12.5% of initial grant]
	 	 	 	Fiscal Year 2006	 	 
	 [12.5% of initial grant]
	 	 	 	Fiscal Year 2007	 	 



	1	EBITDAR Minimum Target for 2004 is for the nine-month period of April 1 to December 31, 2004. 








 The Committee shall determine whether the Company has achieved the EBITDAR Minimum Target for the
specified period no later than 10 calendar days after the audited financial statements of the Company and its consolidated subsidiaries are completed for the fiscal year ending on the same day on which such period ends. If the Committee determines
that the Company has not achieved the EBITDAR Minimum Target for the specified period, then all of the Financial Goal Shares set forth opposite such period in the table above shall be forfeited and the Optionee shall never be entitled to exercise
the Option with respect to any of such Financial Goal Shares. After the Optionee is entitled to exercise the Option with respect to any Financial Goal Shares, the Optionee shall not forfeit such right based solely on the financial performance of the
Company for succeeding periods. 
  
 The Committee shall have the
authority to determine EBITDAR for each specified period. In making such determination, the Committee shall be entitled to rely on the determination of EBITDAR under the Credit Agreement for periods coinciding with such specified period. 

 

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