Document:

EX-10.13

 

Exhibit 10.13

AMENDMENT NO. 1

TO THE

CHART INDUSTRIES, INC.

2004 STOCK OPTION AND INCENTIVE PLAN

     THIS AMENDMENT NO. 1 to the Chart Industries, Inc. 2004 Stock Option and Incentive Plan (the
“Plan”) is executed by Chart Industries, Inc. (the “Company”) as of the date set forth below.

W I T N E S S E T H:

     WHEREAS, the Company maintains the Plan to foster the long-term growth and performance of the
Company; and

     WHEREAS, the Company’s Board of Directors desires to amend the Plan to conform to the
requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
and other guidance issued thereunder or to permit the Plan and its participants to take advantage
of applicable exemptions from such requirements; and

     WHEREAS, the Company’s Board of Directors reserved the right, pursuant to Section 13(a) of the
Plan, to make certain amendments thereto;

     NOW, THEREFORE, pursuant to Section 13(a) of the Plan, and effective as of January 1, 2005,
the Company’s Board of Directors hereby amends the Plan as follows:

     1. Section 2(m) of the Plan is hereby amended by the deletion of said Section 2(m) in its
entirety and the substitution in lieu thereof the following:

   ”(m) ‘Fair Market Value’ of Common Stock shall mean, solely for purposes of this Plan,
as of any particular date, the fair market value of the Common Stock as determined by the
Committee, or pursuant to rules established by the Committee; provided, however, that on or
after January 1, 2005, such determination or such rules shall comply with Code Section 409A
and Department of Treasury regulations and other interpretive guidance issued thereunder.”

 

 

     2. Section 6(a) of the Plan is hereby amended by the addition of a new sentence at the end of
said Section 6(a) to read as follows:

   “Notwithstanding anything in this Plan to the contrary, effective January 1, 2005, in
no event shall any Award be exercisable for an exercise price less than the Fair Market
Value of the shares of Common Stock underlying such Award on the date of grant.”

     3. Section 7 of the Plan shall be deleted in its entirety.

     4. Section 12 of the Plan is hereby amended by the addition of a new subsection (c) to such
Section 12 to read as follows:

   ”(c) Transition Provision. Notwithstanding anything in this Plan to the contrary, in
the transition period between January 1, 2005 and December 31, 2005 (or such later date as
may be provided by the Treasury Department), the Committee in its sole discretion may
substitute a new Stock Option which would not constitute a deferral of compensation under
Code Section 409A had it been granted upon the original date of grant for an outstanding
Stock Option which does constitute a deferral of compensation under Code Section 409A, in
connection with a Change in Control of the Company or otherwise. Any such substitution
shall be performed in a manner consistent with IRS Notice 2005-1 and the proposed and final
regulations, if any, issued pursuant to Code Section 409A.

   Without limiting the foregoing, in the event of a Change in Control on or after January
1, 2005, the Committee may, but shall not be obligated to: (A) cancel such Awards for fair
value, to the extent permitted under Code Section 409A, which, in the case of Stock Options,
may equal the excess, if any, of value of the consideration to be paid in the Change in
Control transaction to holders of the same number of shares subject to such Stock Options
(or, if no consideration is paid in any such transaction, the Fair Market Value of the
            shares subject to such Stock Options) over the aggregate exercise price of such Stock
Options; or (B) provide for the issuance of substitute Awards that will substantially
preserve the otherwise applicable terms and value of any affected Awards previously granted
hereunder as determined by the Committee; or (C) provide that for a period of at least 15
days prior to the Change in Control, such Awards shall be exercisable, to the extent
applicable, as to all shares subject thereto. The Committee may further provide that upon
the occurrence of the Change in Control, such Awards shall terminate and be of no further
force and effect.”

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     5. The Plan is hereby amended by the addition of a new Section 21 to read as follows:

   ”Section 21. Internal Revenue Code Section 409A

   Effective January 1, 2005, the Plan and related Awards are intended to meet the
requirements to avoid adverse tax consequences under Code Section 409A and shall be
construed and administered accordingly. To the extent that any provision of this
Plan is inconsistent with such requirements, such provision shall be null and void
and of no effect.

   Without limiting the generality of the foregoing, to the extent applicable,
notwithstanding anything herein to the contrary, effective January 1, 2005, this
Plan and Awards issued hereunder shall be interpreted in accordance with Code
Section 409A and Department of Treasury regulations and other interpretative
guidance issued thereunder, including without limitation any such regulations or
other guidance. Notwithstanding any provision of the Plan to the contrary, in the
event that the Committee determines that any amounts payable hereunder will be
taxable to a Participant under Code Section 409A prior to payment to such
Participant of such amount, the Company may: (a) adopt such amendments to the Plan
and Awards and appropriate policies and procedures, including amendments and
policies with retroactive effect, that the Committee determines necessary or
appropriate to preserve the intended tax treatment of the benefits provided by the
Plan and Awards hereunder; and/or (b) take such other actions as the Committee
determines necessary or appropriate to comply with the requirements of Section 409A
of the Code.”

     IN WITNESS WHEREOF, CHART INDUSTRIES, INC., by its duly authorized officer, has caused this
Amendment No. 1 to the Chart Industries, Inc. 2004 Stock Option and Incentive Plan to be signed
this 22nd day of May, 2006.

	 	 	 	 	 
	 	CHART INDUSTRIES, INC.

 	 
	 	By:  	/s/ Matthew J. Klaben
 	 
	 	 	 	 
	 	 	Its:   Vice President 	 
	 

3EX-10.19

 

Exhibit 10.19

2006 CHART EXECUTIVE

INCENTIVE COMPENSATION PLAN

(Effective as of March 1, 2006)

Section 1. Purpose of the Plan

The 2006 Chart Executive Incentive Compensation Plan (the “Plan”) is an important tool to
help focus executive officers of Chart Industries, Inc. (the “Company”) to meet the
financial goals and objectives of the Company. The purpose of the Plan is to attract, retain,
motivate and reward participants by providing them with the opportunity to earn competitive
compensation directly linked to the Company’s performance. The ultimate goal is to enhance
shareholder value and improve bottom line performance by providing meaningful incentives to
executive officers and to financially reward them for attaining predetermined performance
objectives.

Section 2. Definitions

	 	2.1	 	“Board" shall mean the Board of Directors of the Company.
	 
	 	2.2	 	“Bonus" shall mean the cash bonus payable to a Participant pursuant to the Plan.
	 
	 	2.3	 	“Code" shall mean the Internal Revenue Code of 1986, as amended.
	 
	 	2.4	 	“Committee” shall mean the Compensation Committee of the Board or such
other committee designated by the Board to administer the Plan.
	 
	 	2.5	 	“Participant” shall mean an employee of the Company who served or
serves as an executive officer in 2005 or 2006 and has been selected by the Committee
to participate in the Plan.

Section 3. Administration

The Plan shall be administered and interpreted by the Committee; provided, however,
that the Board may, in its sole discretion, take any action designated to the Committee under this
Plan as it may deem necessary. The Committee shall establish the performance objectives and
determine whether and to what extent such performance objectives have been obtained. Any
determination made by the Committee under the Plan shall be final and conclusive. The Committee
may employ such legal counsel, consultants and agents (including counsel or agents who are
employees of the Company or an affiliate) as it may deem desirable for the administration of the
Plan and may rely upon any opinion received from any such counsel or consultant or agent and any
computation received from such consultant or agent. All expenses incurred in the administration of
the Plan, including, without limitation, for the engagement of any counsel, consultant or agent,
shall be paid by the Company. No member or former member of the Board or the Committee shall be
liable for any act, omission, interpretation, construction or determination made in connection with
the Plan other than as a result of such individual’s willful misconduct. The Committee may
delegate its authority under this Plan, in whole or in part, to any subcommittee thereof.

 

 

Section 4. Bonuses

     4.1 The Committee shall establish: (i) the performance objective or objectives and minimum
performance thresholds that must be satisfied in order for a Participant to receive a Bonus for the
2006 fiscal year; and (ii) target and maximum incentive bonuses, which bonuses shall be a
percentage of annual base salary. Such performance objective or objectives, target and maximum
incentive bonuses, minimum performance thresholds and other terms and conditions of receiving the
Bonus shall be communicated to each individual Participant in writing.

     4.2 Actual performance below the 100% performance objective(s) but above the minimum
performance threshold(s) entitles a Participant to a pro-rated payment of his or her individual
target incentive bonus based on the linear relationship between the 100% performance objective(s)
and the minimum performance threshold(s). Actual performance below the minimum performance
threshold for a performance objective will result in no payment based on that objective.

     4.3 Following the end of the 2006 fiscal year, the Committee shall determine (i) whether and
to what extent such performance objective or objectives have been satisfied and (ii) for each
Participant, the actual Bonus to which such Participant shall be entitled, taking into
consideration the extent to which the performance objective or objectives have been met.

     4.4 Each Participant’s Bonus, if any, as determined in accordance with Section 4.3 of the
Plan, shall be paid in cash no later than March 15, 2007.

     4.4 Notwithstanding anything herein to the contrary, unless otherwise set forth in an
employment agreement between the Participant and the Company, (i) a Participant must be actively
employed by the Company on December 31, 2006 in order to be eligible for a Bonus under the Plan,
(ii) a Participant on a leave of absence on December 31, 2006 is not eligible for a Bonus under
this Plan unless and until they return to active work status from such leave of absence, (iii)
Bonuses for Participants newly hired by the Company in 2006 or Participants who experience a leave
of absence during the 2006 fiscal year will be adjusted on a prorated basis (in accordance with a
proration schedule communicated to the Participant in writing), and (iv) executive officers hired
by the Company on or after October 1, 2006 are ineligible to receive a Bonus under the Plan for the
2006 fiscal year and executive officers who work less than 14 weeks during the 2006 fiscal year are
ineligible for a Bonus under the Plan.

Section 6. Termination and Amendment

The Company may amend, suspend or terminate the Plan or any portion hereof at any time and in any
manner, except that no such amendment, suspension or termination shall, without the consent of an
affected Participant, itself reduce the amount to be paid to that Participant under the terms of a
Bonus granted hereunder prior to the date of such amendment or termination.

Section 7. Status of the Plan; No Employment Rights; Non-Assignability

The Plan is intended to constitute an “unfunded” bonus plan. With respect to any payments not yet
made to a Participant by the Company, nothing herein contained shall provide any Participant with
any

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rights that are greater than those of a general, unsecured creditor of the Company. No Participant
shall at any time possess any interest whatsoever in the assets of the Company.

     Neither the establishment of this Plan nor any action taken hereunder or Bonus granted hereunder
shall be held or construed to confer on any Participant the right to a continuation of employment
by the Company or any of its subsidiaries for any period of time.

     Further, no Participant shall have any right to transfer, assign, alienate or encumber any present
or future right or expectation to any benefit hereunder, such rights hereunder being deemed
non-assignable and non-transferable except as required by law.

Section 8. Withholding

The obligations of the Company to make payments under the Plan shall be subject to applicable
federal, state and local tax withholding requirements.

Section 9. Severability

Each provision of the Plan will be interpreted in such manner as to be valid and effective but if
any provision shall be ruled invalid of unenforceable in any jurisdiction by any court of competent
jurisdiction, the invalidity or unenforceability of such provision in such jurisdiction shall not
affect any of the remaining provisions of the Plan and the invalid term shall be deemed to be
replaced in such jurisdiction by a valid term which most closely reflects the intent of the Plan.

Section 10. Governing Law

The Plan shall be governed by, and construed in accordance with, the laws of the State of Delaware,
without regard to principles of conflicts of law.

Section 11. Successors and Assigns

The Plan and the obligations of the Company hereunder shall be binding on its successors and
assigns, whether by operation or law or otherwise.

Section 12. Headings

Headings are inserted in this Plan for convenience of reference only and are to be ignored in a
construction of the provisions of the Plan.

Section 13. Compliance with Section 409A

Notwithstanding anything herein to the contrary, if any payment of money or other benefits due to a
Participant hereunder could cause the application of an accelerated or additional tax under Section
409A of the Code, such payments or other benefits shall be deferred if deferral will make such
payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or
other benefits shall be restructured, to the extent possible, in a manner, determined by the Board,
that does not cause such an accelerated or additional tax or result in an additional cost to the
Company.

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The Company shall consult with the Participant in good faith regarding the implementation of the
provisions of this Section 13; provided that neither the Company nor any of its employees or
representatives shall have any liability to the Participant with respect thereto.

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