Document:

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”)

  

 10 

 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. 

 

 C-2Employment Agreement dated March 1, 2004

 Exhibit 10.115 
  
 Mr. Garland Koch 
 24 Flossmoor 
 Trabuco Canyon, CA 92679 
  
 Re: Employment Agreement 
  
 Dear Mr. Koch: 
  
 This letter agreement and attachments hereto, (collectively the Amended and Restated Agreement”) hereby amends and restates, in their entirety, the terms and
conditions of your employment with Pan American Bank, FSB (“Employer”) and its subsidiary United Auto Credit Corporation (“UACC”), both of which may be referred to interchangeably hereinafter as
“Employer”. By signing this Amended and Restated Agreement, you will be agreeing to these terms. It is important that you understand clearly both what your benefits are and what is expected of you by Employer. The effective date of this
Amended and Restated Agreement (the “Effective Date”) shall be as of March 1, 2004 and will replace your previous agreement. 
  

	1.	Term. This Agreement shall have a term of three (3) years, commencing as of the Effective Date (the “Term”). Where used herein, “Term” shall refer
to the entire period of your employment by Employer from and after the Effective Date, whether for the period provided above or as extended or terminated earlier as hereinafter provided. 

  

	2.	Duties. You shall hold the office of Sr. Vice President – Chief Financial Officer. You shall perform the duties customarily performed by individuals holding a similar
title with other financial institutions or as otherwise may be agreed upon by Employer and you from time to time. During the Term hereof, you shall perform the services herein contemplated faithfully, diligently and to the best of your ability in
compliance with instructions and policies of the Bank’s senior management, the Bank’s Board of Directors the Bank’s Federal Charter and Bylaws and with all applicable laws and regulations. 

  

	3.	Compensation. 

  

	 	a)	Base Salary. For your service rendered to the Bank or any subsidiary corporation hereunder, during the Term hereof, the Bank shall pay or cause to be paid a base salary to
you at the rate of $150,000 per annum from March 1, 2002 to February 28, 2003 $150,000 per annum from March 1, 2003 to February 28, 2004 and $150,000 per annum from March 1, 2004 to February 28, 2005, payable in conformity with Bank’s normal
payroll periods and procedures. 

  

	 	b)	Bonus. In addition to the base salary provided for under Section 3(a) above, you shall be entitled to annual bonus compensation in accordance with the incentive compensation
formula set forth in Exhibit A to this Amended and Restated Agreement. Among other things, the incentive compensation formula establishes certain performance criteria and sales objectives by which the amount of your bonus compensation, if any, is to
be determined. 

  

	 	c)	Automobile Allowance. You shall receive during the Term of this Amended and Restated Agreement an automobile allowance of Two Hundred Dollars ($200) per month for each month
prior to March 1, 2004 and Five Hundred Dollars ($500) per month for each month commencing on and after March 1, 2004. 

  

	 	d)	Options. Options will vest according to separate option agreements. 

	4.	Other Benefits. During the Term hereof and unless otherwise agreed to by the Bank and you: 

  

	 	a)	Vacation. You shall be entitled to a total of three (3) weeks paid vacation, the amount and term of which shall be determined in accordance with the policies of
Employer as in effect from time to time. 

  

	 	b)	Group Medical, Life Insurance and Other Benefits. You will be eligible for the medical, dental, vision, life insurance and long-term disability plans that are generally
applicable to your employment classification. 

  

	5.	Business Expenses. You shall be entitled to reimbursement by Employer for any and all ordinary and necessary business expenses reasonably incurred by you in the performance
of your duties and in acting for Employer during the Term of this Agreement, provided that you furnish to Employer adequate records and other documentation as may be required for the substantiation of such expenditures as a business expense of the
Bank. 

  

	6.	Termination. 

  

	 	a)	Termination for Cause. The Bank’s Board may for cause terminate your employment at any time during the Term of this Amended and Restated Agreement. In such event, all of
your rights under this Amended and Restated Agreement shall terminate and you shall have no right to receive compensation, and other benefits shall cease for any period after the effective date of such termination for cause. Any bonus compensation
otherwise accrued shall be forfeited. Termination for “cause” shall be defined as your personal dishonesty, willful misconduct, breach of fiduciary or duty of loyalty, continuing intentional or habitual failure to perform stated
duties, violation of any law (other than minor traffic violations or similar misdemeanor offenses), rule or regulation adopted by the Office of Thrift Supervision, Federal Deposit Insurance Corporation or other regulatory agency with jurisdiction
over Employer, any judgment, ruling or decree by any court of competent jurisdiction or administrative body that precludes or impairs your ability to perform the services contemplated by this Amended and Restated Agreement or any material breach by
you of any provision of this Amended and Restated Agreement. 

  

	 	b)	Termination Without Cause. Employer may terminate your employment without cause at any time during the Term of this Amended and Restated Agreement. In the event that Employer
terminates your employment without cause, you shall be entitled to receive as severance compensation an amount as provided in Exhibit B. The severance payment under this Section 6(b) shall be provided in a lump sum or, at your election, in equal
monthly installments for a period not to exceed six (6) months from the date of termination. This payment shall be in lieu of any and all other compensation due under the agreement unless previously vested or earned, except the amount of any bonus
compensation payable to you under Section 3(b) hereof, shall be prorated through the date of termination. 

  

	 	c)	Compliance with Law and Regulation. You and Employer expressly acknowledge and agree that any payments made to you pursuant to this Amended and Restated Agreement or
otherwise are subject to and conditioned upon compliance with 12 U.S.C. Section 1828(k) and any regulations promulgated thereunder. 

  

	 	d)	Suspension and Removal Orders. If you are suspended and/or temporarily prohibited from participating in the conduct of Employer’s affairs by notice served under Section

	 	 	8(e)(3) or 8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. Section 1818 (e)(3) and (g)(1)), the Bank’s obligations under this Amended and Restated Agreement shall be
suspended as of the date of service, unless stayed by appropriate proceeding. If the charges in the notice are dismissed, the Bank may in its discretion: (I) pay you all or part of the compensation withheld while its obligations under this Agreement
were suspended; and (ii) reinstate (in whole or in part) any of its obligations which were suspended. If you are removed and/or permanently prohibited from participating in the conduct of Employer’s affairs by an order issued under Section
8(e)(4) or 8(g)(1) of the Federal Deposit Insurance Act (12 U.S.C. Section 1818(e)(4) or (g)(1)), all obligations of the Bank under this Amended and Restated Agreement shall terminate as of the effective date of the order, but vested rights of the
parties shall not be affected. 

  

	 	e)	Termination by Default. If Employer is in default (as defined in Section 3(x)(1) of the Federal Deposit Insurance Action (12 U.S.C. Section 1813(x)(1)), all obligations under
this Amended and Restated Agreement shall terminate as of the date of default, but vested rights of the parties shall not be affected. 

  

	 	f)	Supervisory Assistance or Merger. All obligations under this Amended and Restated Agreement shall be terminated, except to the extent that it is determined that continuation
of the Amended and Restated Agreement is necessary for the continued operation of Employer: (I) by the Director of the Office of Thrift Supervision (the “Director”) or his or her designee, at the time that the Federal Deposit
Insurance Corporation enters into an agreement to provide assistance to or on behalf of Employer under the authority contained in Section 13(c) of the Federal Deposit Insurance Act (12 U.S.C. Section 1823(c)); or (ii) by the Director or his or her
designee, at the time that the Director or his or her designee approves a supervisory merger to resolve problems related to the operation of Employer or when Employer is in an unsafe or unsound condition. All rights of the parties that have already
vested, however, shall not be affected by such action. 

  

	 	g)	Disability. In the event that you shall fail, because of illness, incapacity or injury, to render the services contemplated by this Amended and Restated Agreement for three
(3) consecutive calendar months, or for shorter periods aggregating four (4) months in any twelve (12) month period, your employment hereunder may be terminated by written notice from Employer to you. In the event that your employment is terminated
under this Section 6(g), you shall receive the difference between any disability payments provided through insurance plans offered by Employer, if any, provided you have enrolled in such plans and paid the cost thereof, and your base salary as set
forth in Section 3(a) hereof, for six months after notice from Employer, plus the amount of any bonus compensation payable to you under Section 3(b) hereof, prorated through the date of termination. Such termination shall not affect any rights,
which you may have pursuant to any insurance or other death benefit, or any stock option plans, or options thereunder, which rights shall continue to be governed by the provisions of such plans and arrangements. 

  

	 	h)	Death. If your employment is terminated by reason of your death, this Amended and Restated Agreement shall terminate without further obligations of Employer to you (or your
heirs or legal representatives) under this Agreement, other than for payment of: (i) your base salary (as set forth in Section 3(a) hereof) through the date of termination; (ii) the amount of any bonus compensation payable to you under Section 3(b)
above, 

	 	 	prorated through the date of termination; (iii) any compensation previously deferred by you; (iv) any accrued vacation and/.or sick leave pay; and (v) any amounts due pursuant to
the terms of any applicable welfare benefit plan. All of the foregoing amounts shall be paid to your estate or beneficiary, as applicable, in a lump sum in cash within thirty (30) days after the date of termination or earlier as required by
applicable law. 

  

	7.	Disclosure or Use of Employer’s Trade Secrets. During the Term hereof, you will have access to and become acquainted with what you and Employer acknowledge are trade
secrets or confidential or proprietary information of Employer (including but not limited to products, employees, practices, policies or process). You shall not use or disclose any trade secrets, confidential or proprietary information, directly or
indirectly, or cause them to be used or disclosed in any manner, except as may be required or requested by Employer, by court order or under applicable law or regulation. This paragraph shall survive the termination of this agreement.

  

	8.	Return of Documents. You expressly agree that all manuals, documents, files, reports, studies or other materials used and/or developed by you for Employer during the Term of
this Agreement or prior thereto while you were employed by Employer are solely the property of Employer, and that you have no right, title or interest therein. Upon termination of this Amended and Restated Agreement, you or your representative shall
promptly deliver possession of all such materials (including any copies thereof) to Employer. 

  

	9.	Notices. All notices, demands or other communications hereunder shall be in writing and shall be deemed to have been duly given if delivered in person, or sent by United
States mail, certified or registered, with return receipt requested, if to you, addressed to you at your last residence address as shown in the records of Employer, and if to Employer, addressed to the President of Employer at Employer’s
principal office. 

  

	10.	Governing Law and Jurisdiction. This Amended and Restated Agreement, the legal relations between the parties and any action instituted by any party arising under or in
connection with this Amended and Restated Agreement, shall be governed by and interpreted in accordance with the laws of the State of California. 

  

	11.	Arbitration. Any dispute, controversy or claim arising out of or in respect of this Amended and Restated Agreement (or its validity, interpretation or enforcement), the
employment relationship or the subject matter hereof shall at the request of either party be submitted to and settled by arbitration conducted at a mutually convenient office of the Judicial Arbitration & Mediation Services, Inc.
(“JAMS”). Employer and Employee may agree on a retired judge from the JAMS panel. If we are unable to agree upon a retired judge, JAMS will provide a list of three available judges and each party may strike one. If two of the three
judges are stricken, the remaining judge will serve as arbitrator. If two arbitrators remain, the first judge listed shall serve as arbitrator. Employer and you agree that arbitration must be initiated within two years after the claim breach
occurred and that the failure to initiate arbitration within the two-year period constitutes an absolute bar to the institution of any new proceedings related to such alleged breach. The aggrieved party can initiate arbitration by sending written
notice of any intention to arbitrate by registered or certified mail to all parties and to JAMS. The notice must contain a description of the dispute, the amount involved and the remedy sought. The prevailing party in such proceeding will be
entitled to the reasonable attorneys’ fees and expenses of counsel and costs incurred by reason of such arbitration. 

	12.	Benefit of Agreement. This Amended and Restated Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and
assigns; provided, however, that you may not assign any interest in this Amended and Restated Agreement without the prior written consent of Employer. 

  

	13.	Captions. Captions and paragraph heading used in this Amended and Restated Agreement are for convenience only and shall not be used in interpreting this Amended and Restated
Agreement. 

  

	14.	Entire Agreement. This Amended and Restated Agreement contains the entire agreement of the parties with respect to your employment by Employer, and it expressly supersedes
any and all other agreements, either oral or written, relating thereto. 

  

	15.	Severability. Should any provision of this Amended and Restated Agreement for any reason be declared invalid, void or unenforceable by a court of competent jurisdiction, the
validity and binding effect of any remaining portions of this Amended and Restated Agreement shall remain in full force and effect as if this Agreement had been executed with such invalid, void or unenforceable provisions eliminated; provided,
however, that the remaining provisions still reflect the intent of the parties to this Amended and Restated Agreement. 

  

	16.	Amendments. This Amended and Restated Agreement may not be amended or modified except by a written agreement signed by you and the President of the Bank. This Amended and
Restated Agreement and any amendment thereof may be executed in counterparts. 

  

	17.	Non-Solicitation. You agree that for a period of one year after the termination of employment you will not, except in the case of termination pursuant to Section 6(b) hereof,
on behalf of the Employee or on behalf of any other individual, association or entity, call on any of the customers of Employer for the purpose of soliciting or inducing any of such customers to acquire (or providing to any of such customers) any
product or service provided by Employer, nor will Employee in any way, directly or indirectly, as agent or otherwise, in any other manner solicit, influence or encourage such customers to take away or to divert or direct their business to Employee
or any other person or entity by or with which Employee is employed, associated, affiliated or otherwise related. 

  

	18.	Employees. Employee agrees that for a period of two years after the termination of Employee’s employment, except in the case of termination pursuant to Section 6(b)
hereof, Employee will not, directly or indirectly, disrupt, damage, impair, or interfere with Employer’s business by soliciting, influencing, encouraging or recruiting any employee of Employer to work for Employee or any Employee Related
Entity. 

  
 We look forward to your continued
successful association with the Bank. In order to confirm your agreement with and acceptance of the terms and conditions set forth above, please sign and date one copy of this Amended and Restated Agreement where indicated below and return it to the
Bank’s Human Resources Department. The other copy is for your records. 
  
 Very truly yours, 
  
 /s/ Ray Thousand 
 Ray Thousand 
 President and CEO 

 I agree to the terms of employment set forth in this Amended and Restated Agreement subject to approval of the Board of
Directors of Pan American Bank. 
  

			
	 /s/ Garland Koch

	  	 March 1, 2004

	 Employee
	  	 Date

 EXHIBIT B 
 Severance Compensation 
 Upon Termination Without Cause 
 Pursuant to 6(b) 
  
 If termination occurs during the first two years of the Term, the payment shall be equal to twelve (12) months salary at the then current base salary, plus prorated bonus
through the date of termination. 
  
 If termination occurs in the third year, the
amount paid shall be the actual amount of base salary remaining to be paid to the end of the Term, plus prorated bonus through the date of termination. 

 EXHIBIT A 
 Bonus Calculations 
  

							
	GOALS for 2002	  	 	  	 	  	 
	 	  	Bonus Level	  	 	  	% of Plan
				
	UPFC Pretax Net Income	  	50% of base salary	  	$15.6 MM Pretax NI	  	100%
	 	  	37.5% of base salary	  	$14.0 MM Pretax NI	  	90%
	 	  	25% of base salary	  	$12.7 MM Pretax NI	  	81%
				
	UACC Pretax Net Income	  	50% of base salary	  	$13.0 MM Pretax NI	  	100%
	 	  	37.5% of base salary	  	$12.0 MM Pretax NI	  	95.5%
	 	  	25% of base salary	  	$11.0 MM Pretax NI	  	85%
		
	UACC Volume	  	Minimum $22MM Avg/mo for one (1) quarter
		
	UACC Delinquency	  	Max 2% Average 30+ (incl. Repos)
		
	UACC Charge offs	  	Max 6.75% Average charge off

  
 The bonus calculation, including the
amounts to be used for the goals as set forth above, shall be mutually agreed upon in years 2 and 3 based on the approved budget. 
  
 “Pre-tax profit” for UACC shall be based upon the amount reflected in the Bank’s internal financial statements for UACC without any allocation for Bank
Corporate overhead, but including Cost of Funds charged by the Bank at 7% and assuming 6 to 1 leverage. 
  
 Attainment of goals/bonus assumes that there are no material changes in policy by the Bank that might materially affect or limit the Auto Finance Division Business Plan. If any material changes in policy are made by
the Bank, and not concurred in by you, then goals and bonus calculation will be adjusted accordingly upon mutual agreement of the parties. 
  
 Employee must be on the payroll at the end of the calendar year to be eligible for payment of a bonus regardless of length of service or reason for termination or
resignation unless provided for specifically in the Employment Agreement. If Employee is discharged by the Company for “Willful Misconduct” or any other reason set forth in Paragraph 6(a) of the Employment Agreement, any right of the
Employee to a bonus shall be forfeited even if you are on the payroll at the end of the calendar year. 
  
 Bonus payments will be made within 60 days after the end of the calendar year allowing for the review of the results of operations.

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