Document:

EX-10.3

 

Exhibit
10.3

TRANSFER AGREEMENT

          This Agreement Regarding Change of Position (“Agreement”) is made as of January 24,
2007 between Gary J. Bench (“Employee”) and CNX Gas Corporation., a Delaware corporation
(the “Company”).

          WHEREAS, Employee desires to transfer from his position as Senior Vice President and Chief
Financial Officer of the Company to the position of Director of Tax and Treasury (the “Transfer”);
and

          WHEREAS, this change of position requires certain changes in the compensation arrangements
between the Company and Employee, which changes the parties desire to set forth in this Agreement;

          NOW, THEREFORE, in consideration of the mutual undertakings set forth below, the receipt,
adequacy and legal sufficiency of which is hereby acknowledged, and intending to be legally bound
hereby, this Agreement will set forth the understanding and agreement of the parties with respect
to the Transfer, including the changes to the compensation of employee resulting from such change
of position.

     1. Transfer of Employment. a. Effective February 28, 2007 (the “Effective
Date”), Employee resigns his office as Senior Vice President and Chief Financial Officer of the
Company, and from all other positions as an officer, director and/or committee member of (a) the
Affiliated Companies (meaning the Company and CONSOL Energy Inc. (“CONSOL”) and any current
direct or indirect subsidiary or affiliate of the Company or CONSOL and any company in which the
Company or CONSOL or any such subsidiary or affiliate is a shareholder or investor), and (b) any
company or entity which Employee serves as an officer, director, trustee, member or in any other
capacity at the request of an Affiliated Company, and to become the Director of Tax and Treasury of
the Company. Employee covenants and agrees that he will execute any documents necessary to
formally effect any such resignations.

     b. Notwithstanding subsection (a), immediately after the Effective Date, Employee will
continue as an employee of the Company with no break in service for any reason and he will as of
such time assume the position of Director of Tax and Treasury. As Director of Tax and Treasury,
Employee will report to the Chief Financial Officer of the Company and he will have such duties and
responsibilities as may be assigned to him by the Chief Financial Officer of the Company.

     2. Modifications to Compensation. In connection with Employee’s Transfer, the
parties agree as follows:

     a. The Employee will continue to be compensated at his current base salary through the
Effective Date, in accordance with the Company’s regular payroll practices.

     b. Employee shall receive the short-term incentive payout award for 2006 under the Company’s
2006 Short-Term Incentive Compensation program in the ordinary course in his capacity as and for
his performance as Senior Vice President and Chief Financial Officer of the Company in 2006.

 

     c. Effective immediately after the Effective Date, as Director of Tax and Treasury, Employee
will (i) be a Salary Grade 13 employee, (ii) have a base salary of $120,000 per year, payable in
accordance with the Company’s regular payroll practices, (iii) have a short-term incentive
opportunity of 20% of base salary, (iv) have a long-term incentive opportunity of 30% of base
salary, and (v) be entitled to such other benefits as other employees in similar positions in
accordance with the personnel policies of the Company (which benefits do not include a car
allowance or financial planning assistance). The Employee acknowledges and agrees that the
foregoing terms are subject to change from time to time in the sole and absolute discretion of the
Company.

     d. Immediately after the Effective Date, Employee shall continue to accrue and be entitled to
benefits accrued under any tax qualified retirement plans of the Company in which he participates,
if any, in accordance with the terms of such plans.

     3. Modifications to Employee Stock Options. The following describes all of the
Company stock options granted to Employee by the Company prior to the Effective Date (“Employee
Options”).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Number of	 	 	 	 	 	 	 	 	 	Number of
	 	 	 	 	 	 	 	 	 	 	Vested,	 	Number of	 	No. of	 	Unvested
	 	 	Number of	 	 	 	 	 	Unexercised	 	Unvested	 	Unvested	 	Options
	 	 	Shares	 	 	 	 	 	Options as of	 	Options as	 	Options	 	Retained
	 	 	Underlying	 	 	 	 	 	the	 	of the	 	Surrendered	 	after
	Date of	 	Unexercised	 	Option	 	Agreement	 	Agreement	 	as of Effective	 	Effective
	Grant	 	Options	 	Price	 	Date	 	Date	 	Date	 	Date
	8/8/05
	 	 	79,074	 	 	$	16.00	 	 	 	19,768	 	 	 	59,306	 	 	 	0	 	 	 	59,306	 
	4/28/06
	 	 	45,779	 	 	$	28.50	 	 	 	0	 	 	 	45,779	 	 	 	16,531	 	 	 	25,248	 

All Employee Options were granted under the CNX Gas Corporation Equity Incentive Plan
(“LTIC Plan”) and pursuant to the applicable Award Agreement (the “Award
Agreement”). As summarized in the above table, in connection with Employee’s Transfer and in
consideration of his continued employment, Employee agrees to surrender 16,531 options with a Grant
Date of April 28, 2006 as of the Effective Date. At the Company’s request, Employee shall execute
an amended Award Agreement to reflect such change. Employee shall retain all other Employee
Options he now holds, subject to the terms of the LTIC Plan and the Award Agreement, including the
applicable vesting schedule.

     4. Modifications to Performance Share Units under the Long-Term Incentive Program.
The following describes all of the performance share units under the Company’s Long-Term Incentive
Compensation Program for the performance period from October 11, 2006 to December 31, 2009 granted
to Employee by the Company prior to the Effective Date (“PSUs”).

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Number of Unvested	 	Number of PSUs	 	Number of PSUs
	 	 	PSUs as of the	 	Surrendered as of	 	Retained after the
	Grant Date	 	Agreement Date	 	Effective Date	 	Effective Date
	10/11/06
	 	 	23,892	 	 	 	18,892	 	 	 	5,000	 

2

 

All PSUs were granted under the LTIC Plan and pursuant to the applicable Award Agreement (the
“PSU Award Agreement”). As summarized in the above table, in connection with Employee’s
Transfer and in consideration of his continued employment, Employee agrees to surrender 18,892 PSUs
with a Grant Date of October 11, 2006 as of the Effective Date. At the Company’s request, Employee
shall execute an amended PSU Award Agreement to reflect such change. Employee shall retain 5,000
PSUs which he now holds, subject to the terms of the LTIC Plan and the LTIC Award Agreement,
including the applicable vesting schedule.

     5. Intentionally Omitted.

     6. No Right to Continued Employment. Notwithstanding anything in this Agreement to
the contrary, Employee acknowledges and agrees that both before and after the Effective Date, he is
an employee “at will” and nothing in this Agreement or otherwise grants Employee any rights to
continued employment with any Affiliated Company.

     7. Transition Duties. From the date of this Agreement to the Effective Date, Employee
shall continue to perform and carry out the duties and responsibilities of his position as Senior
Vice President and Chief Financial Officer in good faith, in a diligent manner to the best of his
ability. Without limiting the generality of the foregoing, such duties and responsibilities shall
include (i) the execution of the Company’s Annual Report on Form 10-K for the year ended December
31, 2006, in his capacity as Chief Financial Officer, and the execution of the certifications
required to be filed and/or furnished by the Chief Financial Officer in connection therewith, and
(ii) cooperating in the transition of his duties and responsibilities within his department and to
his successor. Following the Effective Date, Employee agrees to assist his successor to the
office of Chief Financial Officer as to matter related to the Company of which Employee has
knowledge, as requested by the Chief Financial Officer.

     8. Waiver of Other Compensation. Except as provided in this Agreement, Employee does
not waive any compensation, benefits or rights that may have accrued in his capacity as an
employee, contractually or otherwise, including, without limit, any right to any salary,
contributions, fees or benefits, or any right to continued participation in any compensation plans,
programs or arrangements of any of the Affiliated Companies, subject to the terms of such plans,
programs or arrangements.

     9. Publicity. Employee acknowledges that the Company is required by law to publicly
disclose this Agreement and the terms hereof. Employee hereby agrees to refrain from directly or
indirectly engaging in publicity or any other action or activity (whether such action or activity
reflects adversely or not upon any Affiliated Company) with respect to any Affiliated Company,
their respective officers, directors, employees, and business, or with regard to his employment or
the change in the status of his employment or any of the matters set forth herein.

     10. Confidentiality. Except to the extent disclosure is required by law, Employee
agrees to keep the terms of this Agreement strictly confidential. Employee shall not, unless
compelled by law or judicial process to do so, disclose or discuss, directly or indirectly, its
terms with anyone other than his attorney and financial advisors, provided that they, as a
condition of receiving such information, also agree to keep such terms confidential.

3

 

     11. Authority/Non-Disparagement/Return of Materials/Cooperation/. Employee and the
Company hereby agree to the following:

          a. Employee acknowledges that effective as of the date of this Agreement, he is not authorized
to speak for or otherwise obligate the Company with the express written approval of the Company’s
President and Chief Executive Officer.

          b. Except as otherwise required by law, Employee will not make, publish or disseminate any
derogatory statements or comments (including, without limitation, to an Affiliated Company’s
customers, prospective customers, employees and vendors), whether orally or in writing, about any
of the Affiliated Companies or their business, officers, directors, shareholders or employees, or
take any action which a reasonable person would expect, directly or indirectly, to impair the
goodwill, business reputation or good name of any of them; and the officers and directors of the
Company will not make, publish or disseminate any derogatory statements or comments, whether orally
or in writing, about Employee, or take any action which a reasonable person would expect, directly
or indirectly, to impair his good will, business reputation or good name.

          c. Promptly following the Effective Date, Employee will deliver to the Company (and each
Affiliated Company where applicable) the originals and all copies of documents, records, notebooks,
notes, memoranda, correspondence, computer disks and computer tapes, and inventions (collectively,
the “Company Materials”) then in Employee’s possession or under Employee’s control, whether
prepared by Employee or by others, relating to his duties as Senior Vice President and Chief
Financial Officer of the Company.

     12. Remedies. In the event that either party breaches or otherwise fails to observe
any covenant, agreement or duty herein described, as determined by an arbitrator, a court or any
other body of competent jurisdiction, the other party shall be entitled to any remedy set forth
herein, as well as any other remedy available at law or in equity.

     13. Unfair Treatment; Acknowledgement of Alternative Arrangement. a. By entering into
this Agreement, neither Employee nor the Company (including its directors, officers, and other
agents) admits, in any way, that he or it treated the other party unlawfully, wrongfully, or
unfairly. To the contrary, the Transfer is being effected at the request of Employee and each
party expressly denies having violated the other party’s rights or having harmed the other party in
any way.

          b. Employee acknowledges and agrees that if he resigned his position as Senior Vice President
and Chief Financial Officer and did not remain an employee of the Company, he would have been
eligible to receive a one-time separation arrangement from the Company, including separation
compensation and special treatment of his Employee Options; that he has elected to remain an
employee of the Company and to forego such separation arrangement; and that the form and amount of
such separation compensation will not be offered or paid to him in the future if he or the Company
terminates his employment in the future. The Transfer is Employee’s voluntary election.

4

 

     14. Consultation with Counsel. Employee acknowledges that he has carefully read and
fully understands all the provisions and effects of this Agreement after having had the opportunity
to consult and thoroughly discuss all its aspects with an attorney of his own choice; that he is
voluntarily entering into this Agreement; and that neither the Company (or any Affiliated Company)
nor its (or their) agents or attorneys made any representation or promise concerning the terms or
effects of this Agreement other than those contained herein.

     15. Arbitration. Employee and the Company waive any right to a court (including jury)
proceeding and instead agree to submit any dispute over the application, interpretation, validity,
or any other aspect of this Agreement to binding arbitration in Pittsburgh, Pennsylvania consistent
with the application of the Federal Arbitration Act and the employment discrimination or comparable
procedural rules of the American Arbitration Association (“AAA”) before an arbitrator who
is a member of the National Academy of Arbitrators (“NAA”) out of a Pittsburgh area panel
of fifteen (15) arbitrators to be supplied by the AAA. Only true neutrals will be eligible for
consideration as arbitrators, and under no circumstances will AAA furnish the names of individuals
who represent employees, unions or companies. The fees and costs charged by AAA and the fees
charged and the expenses incurred by the neutral arbitrator selected shall be borne equally by the
Company and Employee. This section will not limit the Company’s ability to seek immediate and/or
preliminary injunctive relief against Employee in court for Employee’s breach of his
post-employment obligations hereunder.

     16. Modification. If any arbitrator, court, or other authority determines that any
term, condition, clause, or other provision of this Agreement is void or invalid, he, she or it
will have discretion to modify such term, condition, clause, or other provision of this Agreement
to make it valid, or, alternatively, if he, she or it declines to make such a modification and
leaves it invalid, the remaining portions of this Agreement will remain in full force and effect.

     17. Governing Law. Except as preempted by federal law, this Agreement will be subject
to interpretation and application consistent with Pennsylvania law, without regard to its conflict
of laws principles.

     18. Entire Agreement. This Agreement, together with the LTIC Plan and all applicable
Award Agreements except as modified by this Agreement, represent the entire agreement of the
parties with respect to the subject matter contained herein, and any amendments shall be
ineffective unless they are written and signed by all parties and/or their duly authorized
representatives.

     19. Successors and Assigns. This Agreement is binding on the Company’s successors and
assigns, including any change in control of the Company.

     20. Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed to be an original and all of which together shall constitute one and
the same agreement.

[remainder of page intentionally left blank]

5

 

     This TRANSFER AGREEMENT is made effective the date first above written.

	 	 	 	 	 	 	 
	 

	 	 	 	EMPLOYEE	 	 
	 
	Stephen W. Johnson

	 	 	 	/s/ Gary J. Bench	 	 
	 

	 	 	 	 	 	 
	Witness

	 	 	 	Gary J. Bench	 	 

	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	CNX GAS CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	Stephen W. Johnson

	 	 	 	By:
	 	/s/ Nicholas J. DeIuliis	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Name: Nicholas J. DeIuliis	 	 
	 	 	 	 	Title: President and Chief Executive Officer	 	 

6EX-4.1

 

 

 

CREDIT AGREEMENT AMENDMENT

(Availability Amendments)

(Dated: April 19, 2007)

Between:

 

Telvent Canada Ltd.

-and-

LaSalle Business Credit, a division of ABN AMRO Bank N. V.,

Canada Branch

 

 

 

Baker & McKenzie LLP

Suite 2100

BCE Place, 181 Bay Street

Toronto, Ontario

M5J 2T3

 

 

 

 

Table of Contents

	 	 	 	 	 	 	 
	ARTICLE 1 — INTERPRETATION	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	Section 1.1 — Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 2 — AMENDMENT TO FACILITY A	 	 	1	 
	 
	 	 	 	 	 	 
	 

	 	Section 2.1 — Amendment to Facility A
	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE 3 — ACKNOWLEDGMENT RE: THE TERMINATION OF FACILITY B	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	Section 3.1 — Acknowledgment Regarding the Termination of Facility B
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE 4 — CREDIT AGREEMENT IF FULL FORCE	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	Section 4.1 — Credit Agreement Otherwise Unamended
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	Section 4.2 — Amendment Pursuant To Credit Agreement
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE 5 — MISCELLANEOUS	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.1 — Governing Law
	 	 	2	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.2 — Consent To Jurisdiction
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.3 — Benefit Of The Agreement
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.4 — Severability
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.5 — Amendments And Waivers
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.6 — Binding Effect
	 	 	3	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.7 — Time Of The Essence
	 	 	4	 
	 
	 	 	 	 	 	 
	 

	 	Section 5.8 — Counterparts
	 	 	4	 

 

 

CREDIT FACILITY AMENDING AGREEMENT

THIS AGREEMENT MADE as of April 19 , 2007. BETWEEN:

Telvent Canada Ltd., a Corporation,
incorporated under the Laws of Canada, and having an
office in the City of Calgary in the Province of Alberta
(herein referred to as the “Borrower”)

OF THE FIRST PART

- and -

LaSalle Business Credit, a division of ABN AMRO
Bank N.V., Canada Branch, a Canadian
Branch of a Foreign Bank, under the Bank Act (Canada),
and having an office in the City of Toronto in the
Province of Ontario (herein referred to as the “Bank”)

OF THE SECOND PART

     WHEREAS the Borrower and the Bank entered into the Credit Agreement;

     AND WHEREAS the Borrower and the Bank wish to amend certain provisions of the Credit Agreement
to decrease the amount available to the Borrower pursuant to Facility A to U.S.$3,000.000 and to
acknowledge that Facility B is no longer available to the Borrower.

     NOW THEREFORE, in consideration of the terms, covenants, conditions and provisions hereof,
given or made by each party hereto, to or in favor of all or any of the other parties hereto, and
other good and valuable consideration (receipt and sufficiency whereof is hereby acknowledged by
each party receiving the same) the parties hereto mutually covenant and agree as follows.

ARTICLE 1 — INTERPRETATION

     Section 1.1 — Definitions

     In this Agreement, capitalized expressions used herein shall have the meanings given them in
the Credit Agreement, unless otherwise defined herein; and

“Credit Agreement” means the credit agreement dated May 2, 2003 between the Borrower and the Bank,
as amended from time to time.

ARTICLE 2 — AMENDMENT TO FACILITY A

     Section 2.1 — Amendment to Facility A

     Effective as of April 19, 2007, the maximum amount available to the Borrower pursuant to
Facility A is reduced to U.S.$3,000,000 and therefore the definition of “Facility A” under the
Credit Agreement is hereby amended by replacing that Section with the following:

 

 

“Facility A” means the revolving credit facility in the maximum aggregate principal amount not to
exceed U.S. $3,000,000 or the Equivalent Amount in Canadian Dollars to be made available to the
Borrower by the Bank in accordance with the provisions hereof, subject to any reduction in
accordance with the provisions hereof.

ARTICLE 3 — ACKNOWLEDGMENT RE:

THE TERMINATION OF FACILITY B

     Section 3.1 — Acknowledgment Regarding the Termination of Facility B

     The Borrower and the Bank hereby jointly acknowledge that the Borrower has repaid all amounts
outstanding pursuant to Facility B and therefore, pursuant to and in accordance with Section 2.11
of the Credit Agreement, the amount available to the Borrower under Facility B has been reduced to
zero and no amounts shall be available to the Borrower pursuant to Facility B. The Bank is under
no obligation whatsoever to extend any credit to the Borrower pursuant to Facility B, and any
references in the Credit Agreement to Facility B or to any obligation of the Bank regarding the
extension of credit pursuant to Facility B shall be revised and amended to give effect to the
foregoing.

ARTICLE 4 — CREDIT AGREEMENT IF FULL FORCE

     Section 4.1 — Credit Agreement Otherwise Unamended

     Except as specifically herein provided or provided in other expressed written agreements by
the Bank and the Borrower, the Credit Agreement remains unamended and in full force and effect as
at the date hereof.

     Section 4.2 — Amendment Pursuant To Credit Agreement

     This Agreement constitutes an amendment within the meaning of Section 18.10 of the Credit
Agreement.

ARTICLE 5 — MISCELLANEOUS

     Section 5.1 — Governing Law

     This Agreement shall be conclusively deemed to be a contract made under, and shall for all
purposes be governed by and construed in accordance with the laws of the Province of Alberta and
the federal laws of Canada therein applicable to contracts made in and to be wholly performed in
such Province, without prejudice to or limitation of any other rights or remedies available under
the laws of any jurisdiction where property or assets of the Borrower may be found.

 

 

     Section 5.2 — Consent To Jurisdiction

	 	5.2.1	 	The Borrower hereby irrevocably submits to the jurisdiction of any Alberta
court sitting in Calgary in any action or proceeding arising out of or relating to this
Agreement and the Security Documents and hereby irrevocably agrees that all claims in
respect of any such action or proceeding may be heard and determined in such Alberta
court. The Borrower hereby consents to service upon it at its address set out in
Section 18.2 of the Credit Agreement of copies of the statement of claim and any
process issued in respect of any such action or proceeding. The Borrower agrees that a
final judgment in any such action or proceeding shall be conclusive and may be enforced
in other jurisdictions by suit on the judgment or in any other manner provided by law.

	 	5.2.2	 	Nothing in this Section shall affect the right of the Bank to serve legal
process in any other manner permitted by law or affect the right of the Bank to bring
any action or proceeding against the Borrower or its property in the courts of other
jurisdictions.

     Section 5.3 — Benefit Of The Agreement

     This Agreement shall enure to the benefit of and be binding upon the Borrower and the Bank,
and their respective successors and permitted assigns.

     Section 5.4 — Severability

     Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction
shall not invalidate the remaining provisions hereof and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     Section 5.5 — Amendments And Waivers

     Except as otherwise specifically provided herein, any provision of this Agreement may be
amended only by the Borrower and the Bank in writing and may be waived only if the Bank so agrees
in writing. Any such waiver and any consent by the Bank under any provision of this Agreement may
be given subject to any conditions thought fit by the Bank. Any waiver or consent shall be
effective only in the instance and for the purpose for which it is given.

     Section 5.6 — Binding Effect

     This Agreement shall become effective when it shall have been executed by the Borrower and the
Bank and thereafter shall be binding upon and enure to the benefit of the Borrower and the Bank and
their respective successors and assigns. The Borrower shall not assign its rights and obligations
hereunder or any interest herein without the prior consent of all the Bank.

 

 

     Section 5.7 — Time Of The Essence

     Time shall be of the essence of this Agreement.

     Section 5.8 — Counterparts

     This Agreement may be executed in any number of counterparts, each of which shall be deemed to
be an original and all of which taken together shall be deemed to constitute one and the same
instrument, and it shall not be necessary in making proof of this Agreement to produce or account
for more than one such counterpart.

     IN WITNESS WHEREOF the Parties hereto have duly executed this Agreement as of the date first
above written.

	 	 	 
	Telvent Canada Ltd.
	 
	 	 
	 
	 	 
	Per:

	 	/s/ Cameron Demcoe
	 

	 	 
	 
	 	 
	 
	 	Cameron Demcoe
	 

	 	 
	 
	 	Corporate Secretary
	 
	 	 
	 
	 	 
	LaSalle Business Credit, a division of ABN
	AMRO Bank N.V., Canada Branch
	 
	 	 
	 
	 	 
	Per:
	 	/s/ Nazmin Adatia, Vice
President
	 

	 	 
	 
	 	 
	Per:
	 	/s/ H. Bayu Budiatmanto, Vice
President

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