Document:

Retention Bonus Incentive Plan Agreement--Charles R. Lovett

 
EXHIBIT 10.3

 

	 

	 	 	 	 	  	 Chart Industries, Inc.
 Corporate Headquarters

 

	
	 February 25, 2003
	 	 	 	 	  	 
	 	 	 	 	 	  	 5885 Landerbrook Drive

	 	 	 	 	 	  	 Cleveland, OH 44124

	 Charles R. Lovett
 11 Marquette Ave
	 	 	 	 	  	 Phone: 440.753.1490  Fax: 440.753.1491
 Administrative Office Fax: 440.442.5253
 www chart-ind.com

	 Minneapolis, MN 55401
	 	 	 	 	  	 

 
Re: Chart’s
Retention Bonus Incentive Plan 
 
Dear Chip: 
 
On behalf of Chart, I
am pleased to inform you that you have been selected to participate in Chart’s Retention Bonus Incentive Plan. In light of the turbulent markets, restructuring activities and other volatile business conditions that continue to confront the
company, Chart recognizes the critical importance of retaining some key employees who are vital to Chart’s future success. Thus, the Compensation Committee of Chart’s Board of Directors has approved the Retention Bonus Incentive Plan for
certain key employees to provide a financial incentive to remain in Chart’s employ. This letter sets forth the terms of the Retention Bonus Incentive Plan and Chart’s commitment to you as a participant in the same. 
 
Retention Bonus Incentive Plan-Terms and Conditions.

 

	a.	 	Incentive Payment: Under the Retention Bonus Incentive Plan, you are now entitled to receive a minimum retention bonus of $55,000 if you remain employed by
Chart Industries Inc. through February 29, 2004. 

 

	b.	 	Involuntary Termination Without Cause before February 29, 2004: If you are terminated involuntarily “Without Good Cause” between now and February
29, 2004 you are still entitled to receive the above incentive payment. “Without Good Cause” means a termination of your employment by Chart for any reason other than 1) for Good Cause (as defined below). This Retention Bonus
Incentive Plan does not provide a minimum retention bonus if (a) your employment is terminated as a result of your death, disability or your voluntary termination or (b) your employment is terminated for Good Cause. 

 

	c.	 	Involuntary Termination With Cause before February 29, 2004: If your employment with Chart is terminated “With Good Cause” then you are not
entitled to receive the retention bonus as described in paragraph a. above. Termination with “Good Cause” means any one of the following events has occurred and has not been cured by you within 60 calendar days after the individual to whom
you report has given you written notice thereof: 1) You have been indicted by a state or federal grand jury of committing a felony; 2) you have committed an act or acts of personal dishonesty intended to result in your substantial personal
enrichment at the expense of Chart or its subsidiaries; or 3) you grossly neglected your duties, which neglect had a significant adverse affect on Chart or its business. Any termination by Chart of your employment for Good Cause will be communicated
by a written notice to you, which will set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of your employment for Good Cause and specify 

 
Chip Lovett 
February 25, 2003 
Page 2 
 
the effective date of the termination of your employment (which will not be earlier than the date on which the notice is
 given). 
 

	d.	 	Relationship between Retention Bonus Incentive Plan and the Management Incentive Compensation Plan (MIC). 

 

	 	•	 	If your earned incentive under the Management Incentive Plan (MIC) is less than the minimum retention bonus as described in paragraph a. above then the minimum bonus
is payable.  

 

	 	•	 	If the earned incentive under the Management Incentive Plan (MIC) is greater than the minimum retention bonus as described in paragraph a. above then the amount
payable to you is the incentive earned under the MIC plan. 

 

	 	•	 	In no case shall you be entitled to both the minimum retention bonus as described in paragraph a. above and earned incentive under the MIC plan.

 

	e.	 	Timing of Payment. Payment of the Retention Bonus will be made by March 31, 2004. 

 
In closing, I wish to remind you that this Retention Bonus
Incentive Plan is being offered to a select number of key employees. As such, you are requested to keep the terms and conditions of the Retention Bonus Plan confidential and not to discuss with anyone other than those that have legitimate reason to
know. Of course if you have any questions, please contact Mark Ludwig, Chart’s Director of Human Resources. 
 
Sincerely, 
 

	
	 /s/    ARTHUR S.
HOLMES        

	 Arthur S. Holmes
 Chairman and CEO

 
Cc:     M. Ludwig<PAGE>

                                                                 Exhibit 10.74.2

                                 $19,000,000.00

                                 AMENDMENT NO. 1

                                       TO

                           LOAN AND SECURITY AGREEMENT

                     originally dated as of October 30, 2002

                                  by and among

                        CORRECTIONAL SERVICES CORPORATION
                       CSC MANAGEMENT DE PUERTO RICO INC.
                   YOUTH SERVICES INTERNATIONAL HOLDINGS, INC.
           youth services international real property partnership, llp
                       YOUTH SERVICES INTERNATIONAL, INC.
               YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC.
               YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC.
                 YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC.
                   YOUTH SERVICES INTERNATIONAL OF TEXAS, INC.
                 YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC.
                 YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC.

                                       and

                      GENERAL ELECTRIC CAPITAL CORPORATION

                          Amended as of May 15th, 2003

<PAGE>

                               AMENDMENT NO. 1 TO
                           LOAN AND SECURITY AGREEMENT

     THIS AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT (this "Amendment") is
made as of this 15th day of May, 2003, by and among CORRECTIONAL SERVICES
CORPORATION, a Delaware corporation, CSC MANAGEMENT DE PUERTO RICO INC., a
Puerto Rico corporation, YOUTH SERVICES INTERNATIONAL HOLDINGS, INC., a Delaware
corporation, YOUTH SERVICES INTERNATIONAL REAL PROPERTY PARTNERSHIP, LLP, A
Maryland limited liability partnership, YOUTH SERVICES INTERNATIONAL, INC., a
Maryland corporation, YOUTH SERVICES INTERNATIONAL OF NORTHERN IOWA, INC., an
Iowa corporation, YOUTH SERVICES INTERNATIONAL OF SOUTH DAKOTA, INC., a South
Dakota corporation, YOUTH SERVICES INTERNATIONAL OF MISSOURI, INC., a Missouri
corporation, YOUTH SERVICES INTERNATIONAL OF TEXAS, INC., a Texas corporation,
YOUTH SERVICES INTERNATIONAL OF ILLINOIS, INC., a Maryland corporation, and
YOUTH SERVICES INTERNATIONAL OF MICHIGAN, INC., a Michigan corporation
(collectively, "Borrower"), and GENERAL ELECTRIC CAPITAL CORPORATION, a Delaware
corporation ("Lender").

                                    RECITALS

     A. Pursuant to that certain Loan and Security Agreement dated as of October
30, 2002 by and between Borrower and Lender (as amended, modified and restated
from time to time, the "Loan Agreement"), the parties have established certain
financing arrangements that allow Borrower to borrow funds from Lender in
accordance with the terms and conditions set forth in the Loan Agreement.

     B. The parties now desire to amend the Loan Agreement in accordance with
the terms and conditions set forth below.

     NOW, THEREFORE, in consideration of the premises set forth above, the terms
and conditions contained in this Amendment, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Lender and Borrower have agreed to the following amendments to the Loan
Agreement. Capitalized terms used but not defined in this Amendment shall have
the meanings that are set forth in the Loan Agreement.

     1. Amendment to Section 1.17. Clause (g) of Section 1.17 of the Loan
Agreement is hereby amended by deleting the existing clause (g) and by inserting
in lieu thereof the following new clause (g):

     (g) any non-cash, non-recurring charges related to the discontinuation of
     operations at a Facility or any loss contract reserves for a Facility, to
     the extent either is reflected as an expense in determining consolidated
     net income,

                                       1

<PAGE>

     2. Amendment to Section 1.40. Section 1.40 of the Loan Agreement is hereby
amended by deleting the first (1/st/) sentence thereof and by inserting in lieu
thereof the following sentence:

     "Minimum Net Worth" shall mean Tangible Net Worth (defined below) equal to
     (i) $33,200,000 plus (ii) 75% of cumulative net income, on a consolidated
     basis, from July 1, 2002 through the measurement date.

     3. Amendment to Section 6.33(b). Clause (i) of Section 6.33(b) of the Loan
Agreement is hereby amended by deleting the existing clause (i) thereof and by
inserting in lieu thereof the following new clause (i):

        (i) Borrower shall maintain minimum quarterly EBITDA equal to at least
     the following amounts for each of the following calendar quarters:

                  Quarter Ending                     Minimum EBITDA

                  December 31, 2002                    $2,438,000

                  March 31, 2003                        2,000,000
                  June 30, 2003                         1,690,000
                  September 30, 2003                    2,100,000
                  December 31, 2003                     2,100,000

                  March 31, 2004                        2,000,000
                  June 30, 2004                         2,200,000
                  September 30, 2004                    2,200,000
                  December 31, 2004                     2,400,000

                  March 31, 2005                        2,400,000
                  June 30, 2005                         2,400,000

     4. Fee. In consideration for this Amendment, Borrower shall pay a fee equal
to $8,000, which amount shall be added to the balance of the Revolving Credit
Loans on the date hereof.

     5. Confirmation of Representations and Warranties. Borrower hereby (a)
confirms that all of the representations and warranties set forth in Article IV
of the Loan Agreement are true and correct, and (b) specifically represents and
warrants to Lender that it has good and marketable title to all of its
respective Collateral, free and clear of any lien or security interest in favor
of any other person or entity.

     6. Updated Schedules. As a condition precedent to Lender's agreement to
enter into this Amendment, and in order for this Amendment to be effective,
Borrower shall revise, update and deliver to Lender all Schedules to the Loan
Agreement to (a) reflect updated and

                                       2

<PAGE>

accurate information with respect to Borrower, and (b) to update all other
information as necessary to make the Schedules previously delivered correct.
Borrower hereby represents and warrants that the information set forth on the
attached Schedules is true and correct as of the date of this Amendment. The
attached Schedules are hereby incorporated into the Loan Agreement as if
originally set forth therein.

     7.  Costs and Expenses. Borrower agrees to pay all costs and expenses
incurred by Lender in connection with this Amendment, including legal fees of
Lender's in-house counsel in the amount of $2,000, which amount shall be added
to the balance of the Revolving Credit Loans on the date hereof.

     8.  Enforceability. This Amendment constitutes the legal, valid and binding
obligation of each Borrower and is enforceable against each such Borrower in
accordance with its terms.

     9.  Reference to the Effect on the Loan Agreement.

         (a) Upon the effectiveness of this Amendment, each reference in the
Loan Agreement to "this Agreement," "hereunder," "hereof," "herein" or words of
similar import shall mean and be a reference to the Loan Agreement as amended by
this Amendment.

         (b) Except as specifically amended above, the Loan Agreement and all
other Loan Documents shall remain in full force and effect and are hereby
ratified and confirmed.

         (c) The execution, delivery and effectiveness of this Amendment shall
not, except as expressly provided in this Amendment, operate as a waiver of any
right, power or remedy of Lender, nor constitute a waiver of any provision of
the Loan Agreement, or any other documents, instruments and agreements executed
or delivered in connection with the Loan Agreement.

         (d) This Amendment (together with any other document executed in
connection herewith) is not intended to be, nor shall it be construed as, a
novation of the Loan Agreement.

     10. Governing Law. This Amendment shall be governed by and construed in
accordance with the laws of the State of Maryland.

     11. Headings. Section headings in this Amendment are included for
convenience of reference only and shall not constitute a part of this Amendment
for any other purpose.

     12. Counterparts. This Amendment may be executed in counterparts, and such
counterparts taken together shall be deemed to constitute one and the same
instrument.

                               [SIGNATURES FOLLOW]

                                       3

<PAGE>

     IN WITNESS WHEREOF, intending to be legally bound, the parties have caused
this Amendment to be executed as of the date first written above.

                             LENDER:

                             GENERAL ELECTRIC CAPITAL CORPORATION
                             a Delaware corporation

                             By:      /s/   J. Anthony Romero
                                 ---------------------------------------
                             Name: J. Anthony Romero
                             Title: Vice President

                             BORROWER:

                             CORRECTIONAL SERVICES CORPORATION
                             a Delaware corporation

                             By:   /s/  Bernard A. Wagner               (SEAL)
                                 ---------------------------------------
                             Name: Bernard A. Wagner
                             Title: Sr. VP/CFO

                             CSC MANAGEMENT DE PUERTO RICO INC.
                             a Puerto Rico corporation

                             By:  /s/  Bernard A. Wagner                (SEAL)
                                 ---------------------------------------
                             Name: Bernard A. Wagner
                             Title: Sr. VP/CFO

                             YOUTH SERVICES INTERNATIONAL HOLDINGS,
                                INC.
                             a Delaware corporation

                             By:  /s/  Bernard A. Wagner                (SEAL)
                                 ---------------------------------------
                             Name: Bernard A. Wagner
                             Title: Sr. VP/CFO

                                       4

<PAGE>

                                YOUTH SERVICES INTERNATIONAL REAL PROPERTY
                                   PARTNERSHIP, LLP
                                a Maryland limited liability partnership

                                By:  Youth Services International, Inc.
                                     a Maryland corporation
                                     its Managing Partner

                                By:  /s/  Bernard A. Wagner               (SEAL)
                                    --------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                YOUTH SERVICES INTERNATIONAL, INC.
                                a Maryland corporation

                                By:  /s/  Bernard A. Wagner               (SEAL)
                                    --------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                YOUTH SERVICES INTERNATIONAL OF
                                   NORTHERN IOWA, INC.
                                an Iowa corporation

                                By:  /s/  Bernard A. Wagner               (SEAL)
                                    --------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                YOUTH SERVICES INTERNATIONAL OF SOUTH
                                   DAKOTA, INC.
                                a South Dakota corporation

                                By:    /s/    Bernard A. Wagner           (SEAL)
                                    --------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                       5

<PAGE>

                                YOUTH SERVICES INTERNATIONAL OF
                                   MISSOURI, INC.
                                a Missouri corporation

                                By:  /s/  Bernard A. Wagner              (SEAL)
                                    -------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                YOUTH SERVICES INTERNATIONAL OF TEXAS,
                                   INC.
                                a Texas corporation

                                By:  /s/  Bernard A. Wagner              (SEAL)
                                    -------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                YOUTH SERVICES INTERNATIONAL OF ILLINOIS,
                                   INC.
                                a Maryland corporation

                                By:  /s/  Bernard A. Wagner              (SEAL)
                                    -------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                YOUTH SERVICES INTERNATIONAL OF MICHIGAN,
                                   INC.
                                a Michigan corporation

                                By:  /s/  Bernard A. Wagner              (SEAL)
                                    -------------------------------------
                                Name: Bernard A. Wagner
                                Title: Sr. VP/CFO

                                       6

<PAGE>

                                LIST OF SCHEDULES

Schedule 1.41 -  Mortgages

Schedule 1.45 -  Permitted Liens

Schedule 3.6  -  Officers with Power of Attorney

Schedule 4.1  -  Subsidiaries

Schedule 4.2  -  State of Organization

Schedule 4.5  -  Litigation

Schedule 4.7  -  Tax Identification Numbers; Fiscal Years

Schedule 4.9  -  Exceptions to Ownership

Schedule 4.10 -  Tax Liability

Schedule 4.14 -  Environmental Matters

Schedule 4.15 -  Places of Business; Record Owner; Chief Executive Office

Schedule 4.16 -  Intellectual Property

Schedule 4.17 -  Capitalization; Ownership

Schedule 4.19 -  Borrowings and Guarantees

Schedule 4.20 -  Business Interruptions

Schedule 4.21 -  Trade Names

Schedule 4.22 -  Joint Ventures

Schedule 4.27 -  Funds from Restricted Grants

Schedule 4.29 -  Assignment of Claims Laws

Schedule 4.30 -  Unrecorded Leases

Schedule 4.35 -  Unrecorded Contracts

                                       7

<PAGE>

Schedule 4.42 -  Other Liens

Schedule 4.43 -  Agreements to Transfer Title

Schedule 6.7  -  Insurance

Schedule 6.24 -  Post-Closing Obligations

                                       8

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