Document:

EX-10.11

 

Exhibit 10.11

CHART INDUSTRIES, INC.

2004 STOCK OPTION AND INCENTIVE PLAN

Section 1.   Purpose

     The Chart Industries, Inc. 2004 Stock Option and Incentive Plan, as the same may be amended
(the “Plan”), is designed to foster the long-term growth and performance of the Company by: (a)
enhancing the Company’s ability to attract and retain highly qualified employees; and (b)
motivating employees to serve and promote the long-term interests of the Company and its
stockholders through stock ownership and performance-based incentives. To achieve this purpose,
the Plan provides authority for the grant of Stock Options.

Section 2.   Definitions

     (a) “Acquisition Consideration” shall have the meaning set forth in Section 12(a) hereof.

     (b) “Affiliate” shall have the meaning ascribed to that term in Rule 12b-2 promulgated under
the Exchange Act.

     (c) “Award” shall mean a grant of Stock Options under this Plan.

     (d) “Award Agreement” shall mean any agreement between the Company and a Participant that sets
forth terms, conditions, and restrictions applicable to an Award.

     (e) “Board” or “Board of Directors” shall mean the Board of Directors of the Company.

     (f) “Change in Control” shall have the meaning set forth in Section 12(b) hereof.

     (g) “Code” shall mean the Internal Revenue Code of 1986, or any law that supersedes or
replaces it, as amended from time to time.

     (h) “Committee” shall mean the Board of Directors or any committee of the Board authorized by
the Board of Directors to administer this Plan.

     (i) “Common Stock” shall mean shares of Common Stock, par value $.01 per share, of the
Company, including authorized and unissued shares and treasury shares.

     (j) “Company” shall mean Chart Industries, Inc., a Delaware corporation.

     (k) “Director” shall mean a member of the Board of Directors.

 

 

     (l) “Exchange Act” shall mean the Securities Exchange Act of 1934, and any law that supersedes
or replaces it, and the rules and regulations thereunder, as such law, rules and regulations may be
amended from time to time.

     (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.

     (n) “Investor Rights Agreement” shall mean the Investor Rights Agreement, dated as of
September 15, 2003, among the Company, OCM Principal Opportunities Fund II, L.P., Audax Chart LLC,
and the other Stockholder parties thereto.

     (o) “Notice of Award” shall mean any notice by the Committee to a Participant that advises the
participant of the grant of an Award or sets forth terms, conditions, and restrictions applicable
to an Award.

     (p) “Participant” shall mean any person to whom an Award has been granted under this Plan.

     (q) “Person” shall mean an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture or other entity, or a
governmental authority.

     (r) “Related Person” means each of OCM Principal Opportunities Fund II, L.P., Audax Chart LLC,
each other person who is a “Stockholder” party to the Investor Rights Agreement (as the term
“Stockholder” is defined in the Investor Rights Agreement) as of the date of adoption of this Plan,
and the Affiliates of each of the foregoing.

     (s) “Stock Equivalent Unit” shall mean an Award that is valued by reference to the value of
shares of Common Stock.

     (t) “Stock Option” shall mean an Award granted pursuant to Section 6 hereof.

     (u) “Subsidiary” means a corporation, company or other entity (i) more than 50 percent of
whose outstanding shares or securities (representing the right to vote for the election of
directors or other managing authority) are, or (ii) which does not have outstanding shares or
securities (as may be the case in a partnership, joint venture or unincorporated association), but
more than 50 percent of whose ownership interest representing the right generally to make decisions
for such other entity is, now or hereafter, owned or controlled, directly or indirectly, by the
Company.

     (v) “Voting Power” shall mean, at any time, the total votes relating to the then-outstanding
securities entitled to vote generally in the election of Directors.

     (w) “Voting Stock” shall mean, at any time, the then-outstanding securities entitled to vote
generally in the election of Directors.

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Section 3.   Eligibility

     All employees of the Company and its Affiliates are eligible for the grant of Awards. The
selection of any such persons to receive Awards will be within the discretion of the Committee.
More than one Award may be granted to the same person.

     Notwithstanding the foregoing, any individual who renounces in writing any right that he or
she may have to receive Awards under the Plan shall not be eligible to receive any Awards
hereunder.

Section 4.   Shares of Common Stock Available for Awards; Adjustment

     (a) Number of Shares of Common Stock. The maximum aggregate number of shares of Common Stock
that may be subject to Awards granted under this Plan during the term of this Plan is 494,703
shares of Common Stock, subject to any adjustments made in accordance with the terms of this
Section 4.

     The assumption of obligations in respect of awards granted by an organization acquired by the
Company, or the grant of Awards under this Plan in substitution for any such awards, will not
reduce the number of shares of Common Stock available for the grant of Awards under this Plan.

     Shares of Common Stock subject to an Award that is forfeited, terminated, or canceled without
having been exercised will again be available for grant under this Plan, without reducing the
number of shares of Common Stock available for grant of Awards under this Plan.

     (b) No Fractional Shares. No fractional shares of Common Stock will be issued, and the
Committee will determine the manner in which the value of fractional shares of Common Stock will be
treated.

     (c) Adjustment. In the event of any change in the Common Stock by reason of a merger,
consolidation, reorganization, recapitalization, or similar transaction, or in the event of a stock
dividend, stock split, or distribution to stockholders (other than normal cash dividends), the
Committee will have authority to adjust, in any manner that it deems equitable, the number of
shares specified in Section 4(a) and the number and class of shares of Common Stock subject to
outstanding Awards, the exercise price applicable to outstanding Awards, and the Fair Market Value
of the shares of Common Stock and other value determinations applicable to outstanding Awards.

Section 5.   Administration

     (a) Committee. This Plan will be administered by the Committee. The Committee will, subject
to the terms of this Plan, have the authority to: (i) select the eligible employees who will
receive Awards; (ii) grant Awards; (iii) determine the number and types of Awards to be granted to
eligible employees; (iv) determine the terms, conditions, vesting periods, and restrictions
applicable to Awards, including timing and price; (v) adopt, alter, and repeal administrative rules
and practices governing this Plan; (vi) interpret the terms and provisions of this Plan and any
Awards granted under this Plan, including, where applicable, determining the

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method of valuing any Award and certifying as to the satisfaction of such Awards; (vii)
prescribe the forms of any Notices of Award, Award Agreements, or other instruments relating to
Awards; and (viii) otherwise supervise the administration of this Plan.

     (b) Delegation. The Committee may delegate any of its authority to any other Person or
Persons that it deems appropriate.

     (c) Decisions Final. All decisions by the Committee, and by any other Person or Persons to
whom the Committee has delegated authority, to the extent permitted by law, will be final and
binding on all Persons.

     (d) No Liability. Neither the Committee nor any of its members shall be liable for any act
taken by the Committee pursuant to the Plan. No member of the Committee shall be liable for the
act of any other member.

Section 6.   Awards

     (a) Grant of Awards. The Committee will determine the Awards to be granted to each
Participant and will set forth in the related Notice of Award or Award Agreement the terms,
conditions, vesting periods, and restrictions applicable to each Award. Awards may be granted in
replacement of, or in substitution for, other awards granted by the Company, whether or not granted
under this Plan. The Company may assume obligations in respect of awards granted by any Person
acquired by the Company or may grant Awards in replacement of, or in substitution for, any such
awards.

     (b) Types of Awards. Awards of Stock Options may be granted under the Plan. A Participant
who is granted an Award of a Stock Option shall have the right to purchase a specified number of
shares of Common Stock, during a specified period, and at a specified exercise price, all as
determined by the Committee. All Stock Options shall be non-qualified stock options subject to the
provisions of Section 83 of the Code. No Stock Option shall be intended to qualify as an incentive
stock option under Section 422 of the Code.

     (c) Termination of Awards. Any Award granted under this Plan shall expire, and the
Participant to whom such Award was granted shall have no further rights with respect thereto, on
the tenth anniversary of the date of grant of such Award, or on such earlier date as may be
established by the Committee and provided in the Notice of Award or Award Agreement with respect to
such Award.

Section 7.   Deferral of Payment

     With the approval of the Committee, the delivery of the shares of Common Stock, cash, or any
combination thereof subject to an Award may be deferred, either in the form of installments or a
single future delivery. The Committee may also permit selected Participants to defer the receipt
of some or all of their Awards, as well as other compensation, in accordance with procedures
established by the Committee to assure that the recognition of taxable income is deferred under the
Code. Deferred amounts may, to the extent permitted by the Committee, be credited as cash or Stock
Equivalent Units. The Committee may also establish rules and

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procedures for the crediting of interest on deferred cash payments and dividend equivalents on
Stock Equivalent Units.

Section 8.   Payment of Exercise Price

     The exercise price of an Award may be paid in cash, by the transfer of shares of Common Stock,
by the surrender of all or part of an Award (including the Award being exercised), or by a
combination of these methods, as and to the extent permitted by the Committee. The Committee may
prescribe any other method of paying the exercise price that it determines to be consistent with
applicable law and the purpose of this Plan.

Section 9.   Taxes Associated with Awards

     Prior to the payment of an Award or upon the exercise or release thereof, the Company may
withhold, or require a Participant to remit to the Company, an amount sufficient to pay any
federal, state, and local taxes associated with the Award. The Committee may, in its discretion
and subject to such rules as the Committee may adopt, permit a Participant to pay any or all taxes
associated with the Award in cash, by the transfer of shares of Common Stock, by the surrender of
all or part of an Award (including the Award being exercised), or by a combination of these
methods.

Section 10.   Termination of Employment

     If the employment of a Participant terminates for any reason, all unexercised, deferred, and
unpaid Awards may be exercisable or paid only in accordance with rules established by the Committee
or as specified in the particular Award Agreement or Notice of Award. Such rules may provide, as
the Committee deems appropriate, for the expiration, continuation, or acceleration of the vesting
of all or part of the Awards.

Section 11.   Termination of Awards Under Certain Conditions

     The Committee may cancel any unexpired, unpaid, or deferred Awards at any time if the
Participant is not in compliance with all applicable provisions of this Plan or with any Notice of
Award or Award Agreement, or if the Participant, without the prior written consent of the Company,
engages in any of the following activities:

     (a) Renders services for an organization, or engages in a business, that is, in the judgment
of the Committee, in competition with the Company or its Subsidiaries; or

     (b) Discloses to anyone outside of the Company or its Affiliates, or uses for any purpose
other than the Company’s business any confidential information or material relating to the Company,
whether acquired by the Participant during or after employment with the Company, in a fashion or
with a result that the Committee, in its judgment, deems is or may be injurious to the best
interests of the Company.

     The Committee may, in its discretion and as a condition to the exercise of an Award, require a
Participant to acknowledge in writing that he or she is in compliance with all applicable

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provisions of this Plan and of any Notice of Award or Award Agreement and has not engaged in
any activities referred to in clauses (a) and (b) above.

Section 12.   Change in Control

     (a) General. In the event of a Change in Control of the Company, the Committee shall have the
right, in its sole discretion, to: (i) accelerate the exercisability of any Stock Options,
notwithstanding any limitations set forth in the Plan; (ii) cancel all outstanding Stock Options in
exchange for the kind and amount of shares of the surviving or new corporation, cash, securities,
evidences of indebtedness, other property or any combination thereof receivable in respect of one
share of Common Stock upon consummation of the transaction in question (the “Acquisition
Consideration”) that the Participant would have received had the Stock Option been exercised prior
to such transaction, less the applicable exercise price therefor; (iii) cause the Participant to
have the right thereafter and during the term of the Stock Option to receive upon exercise thereof
the Acquisition Consideration receivable upon the consummation of such transaction by a holder of
the number of shares of Common Stock which might have been obtained upon exercise of all or any
portion thereof; or (iv) take such other action as it deems appropriate to preserve the value of
the Award to the Participant. Alternatively, the Committee shall also have the right to require
any purchaser of the Company’s assets or stock, as the case may be, to take any of the actions set
forth in the preceding sentence as such purchaser may determine to be appropriate or desirable.

     (b) Definition. As used in this Plan, the term “Change in Control” shall mean the occurrence
at any time after the date of this Plan of any of the following events:

     (i) The Company is merged or consolidated or reorganized into or with another
corporation or other legal person or entity, other than a Related Person, and as a result of
such merger, consolidation or reorganization less than a majority of the combined voting
power of the then-outstanding securities of such corporation, person or entity immediately
after such transaction is held in the aggregate by the holders of Voting Stock immediately
prior to such transaction;

     (ii) The Company sells or otherwise transfers all or substantially all of its assets to
any other corporation or other legal person or entity, other than a Related Person, and less
than a majority of the combined voting power of the then-outstanding securities of such
corporation, person or entity immediately after such sale or transfer is held in the
aggregate by the holders of Voting Stock immediately prior to such sale or transfer;

     (iii) Any person (as the term “person” is used in Section 13(d)(3) of the Exchange Act)
other than a Related Person becomes the beneficial owner (as the term “beneficial owner” is
defined under Rule 13d-3 or any successor rule or regulation promulgated under the Exchange
Act) of securities representing more than 50% of the Voting Power, unless such beneficial
ownership results solely from arrangements under which such person does not control the
power to vote a majority of the Voting Power;

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     (iv) The Company files a report or proxy statement with the Securities and Exchange
Commission pursuant to the Exchange Act disclosing in response to Form 8-K or Schedule 14A
(or any successor schedule, form or report or item therein) that a change in control of the
Company has or may have occurred or will or may occur in the future pursuant to any
then-existing contract or transaction other than a contract or transaction with a Related
Person; or

     (v) Such other or alternative event or events as the Committee shall, in its sole and
absolute discretion, deem to be a “Change in Control” for purposes of this Plan or any
Notice of Award or Award Agreement entered into pursuant hereto.

     Notwithstanding the foregoing provisions of paragraphs (iii) and (iv) of this Section 12(b), a
“Change in Control” shall not be deemed to have occurred (i) solely because (A) the Company, (B) a
Subsidiary, (C) a Related Person, or (D) any Company-sponsored employee stock ownership plan or
other employee benefit plan of the Company or any Subsidiary, or any entity holding shares of
Voting Stock for or pursuant to the terms of any such plan, becomes the beneficial owner (as the
term “beneficial owner” is defined under Rule 13d-3 or any successor rule or regulation promulgated
under the Exchange Act) of securities representing more than 50% of the Voting Power or because the
Company files a report or proxy statement disclosing that a change in control of the Company has or
may have occurred or will or may occur in the future by reason of such beneficial ownership, or
(ii) solely because of a change in control of any Subsidiary.

     The manner of application and interpretation of the foregoing provisions of this Section 12(b)
shall be determined by the Committee in its sole and absolute discretion.

Section 13.   Amendment, Suspension, or Termination of this Plan; Amendment of Outstanding Awards

     (a) Amendment, Suspension, or Termination of this Plan. The Board of Directors may amend,
suspend, or terminate this Plan at any time; provided, however, that no action of the Board of
Directors may result, without the approval of the Company’s stockholders, in making any change to
the Plan that requires the approval of the Company’s stockholders in order to comply with
applicable law or the rules of the principal securities exchange (if any) upon which the Common
Stock may then be traded or quoted.

     (b) Amendment of Outstanding Awards. The Committee may, in its discretion, amend the terms of
any Award, prospectively or retroactively, but no such amendment may impair the rights of any
Participant without his or her consent. The Committee may, in whole or in part, waive any
restrictions or conditions applicable to, or accelerate the vesting of, any Award.

Section 14.   Awards to Foreign Nationals and Employees Outside the United States

     To the extent that the Committee deems appropriate to comply with foreign law or practice and
to further the purpose of this Plan, the Committee may, without amending this Plan, (a) establish
special rules applicable to Awards granted to Participants who are foreign nationals, are employed
outside the United States, or both, including rules that differ from those established

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generally under this Plan, and (b) grant Awards to such Participants in accordance with those
rules.

Section 15.   Nonassignability

     Unless otherwise determined by the Committee, (a) no Award granted under the Plan may be
transferred or assigned by the Participant to whom it is granted other than by will, pursuant to
the laws of descent and distribution or pursuant to a qualified domestic relations order as defined
in the Code, and (b) an Award granted under this Plan may be exercised, during the Participant’s
lifetime, only by the Participant or by the Participant’s guardian or legal representative. The
Committee, in its sole discretion, may provide for the transferability of particular Awards under
this Plan on such terms and conditions as the Committee may determine.

Section 16.   Terms of Awards and Related Agreements Need not be Identical

     The form and substance of Awards, Award Agreements and Notices of Awards, whether granted at
the same or different times, need not be identical. The determinations made by the Committee under
the Plan need not be uniform and may be made selectively among persons who receive or are eligible
to receive Awards under the Plan, whether or not such persons are similarly situated. Without
limiting the generality of the foregoing, the Committee shall be entitled, among other things, to
make non-uniform and selective determinations, and to enter into non-uniform and selective Award
Agreements, in respect of (a) the persons eligible to receive awards under the Plan, (b) the terms
and provisions of Awards under the Plan, and (c) the exercise by the Committee of its sole
discretion in respect of the Plan or any Award Agreement.

     Subject only to the terms of the Plan, the Committee shall have the authority to prescribe the
terms of any Awards and the provisions of any Award Agreements, Notices of Award or other
instruments entered into with respect to the same; it being expressly understood that the Committee
shall have the authority to include in any such Award Agreements, Notices of Award or other
instruments relating to Awards, such representations, warranties, covenants and agreements on
behalf of the Company or the Participant as it deems necessary or appropriate, including, without
limitation, covenants relating to non-competition, non-solicitation and non-disclosure of
confidential information and covenants providing that part or all of the shares of Common Stock
purchased upon the exercise of any Stock Option shall be or may be subject to restrictions on
transfer in form and substance designated by the Committee.

Section 17.   Securities Law and Related Matters

     The Committee may, if it deems appropriate in its sole discretion, condition any grant of an
Award or sale of Common Stock to any Participant upon a receipt of an appropriate investment
representation from the Participant in compliance with applicable securities laws, rules and
regulations, and may require any Participant to make such representations and furnish such
information as it may, in its sole discretion, deem appropriate in connection with the grant of an
Award or issuance of Common Stock in compliance with applicable law.

     All certificates representing shares of Common Stock issued under this Plan shall bear such
legends as the Committee may deem appropriate in order to assure compliance with

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applicable securities laws, rules and regulations, applicable restrictions on transfer and any
applicable provision of the Company’s Certificate of Incorporation or By-Laws, as in effect from
time to time.

Section 18.   Governing Law

     The interpretation, validity, and enforcement of this Plan will, to the extent not otherwise
governed by the Code or the securities laws of the United States, be governed by the laws of the
State of Delaware.

Section 19.   No Rights as Employees/Stockholders

     Nothing in the Plan or in any Award Agreement or Notice of Award shall confer upon any
Participant any right to continue in the employ of the Company or an Affiliate of the Company or to
be entitled to receive any remuneration or benefits not set forth in the Plan or such Award
Agreement or Notice of Award, or to interfere with or limit either the right of the Company or an
Affiliate of the Company to terminate the employment of such Participant at any time with or
without cause. Nothing contained in the Plan or in any Award Agreement or Notice of Award shall be
construed as entitling any Participant to any rights of a stockholder as a result of the grant of
an Award until such time as shares of Common Stock are actually issued to such Participant pursuant
to the exercise of a Stock Option.

Section 20.   Effective and Termination Dates

     (a) Effective Date. This Plan was approved by the Board of Directors on February 12, 2004 and
becomes effective upon that date.

     (b) Termination Date. This Plan will continue in effect until midnight on February 12, 2014;
provided, however, that Awards granted on or before that date may extend beyond that date and
restrictions and other terms and conditions imposed on any Award granted on or before that date may
extend beyond such date.

9EX-10.13

 

Exhibit 10.13

STOCK OPTION AGREEMENT

     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 Samuel F. Thomas (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 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 “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.
	 
	 	(c)	 	The word “Option” shall mean the right and option of the Optionee to purchase
Shares pursuant to the terms of this Agreement.
	 
	 	(d)	 	The words “Option Price” shall mean the price at which Shares may be acquired upon the
exercise of any Option.

	 	(e)	 	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.
	 
	 	(f)	 	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.
	 
	 	(g)	 	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).

 

 

	 	(h)	 	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.
	 
	 	(i)	 	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.
	 
	 	(j)	 	The words “Securities Act” shall mean the Securities Act of 1933, as amended or
any similar federal law in force.
	 
	 	(k)	 	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 203,701 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 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 with respect
to the number of Shares indicated below on or after the date indicated opposite such number below:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual Number	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	of Shares with	 	 	 	 	 	Total Shares with	 	 	 	 	 	 
	 	 	Respect to which	 	 	 	 	 	Respect to which	 	 	 	 	 	Date Beginning
	 	 	Option may	 	 	 	 	 	Option may be	 	 	 	 	 	on which Option
	 	 	Be Exercised	 	 	 	 	 	Exercised	 	 	 	 	 	may be Exercised
	 
	 	 	50,925	 	 	 	 	 	 	 	50,925	 	 	 	 	 	 	October 6, 2004
	 
	 	 	50,926	 	 	 	 	 	 	 	101,851	 	 	 	 	 	 	October 6, 2005
	 
	 	 	50,925	 	 	 	 	 	 	 	152,776	 	 	 	 	 	 	October 6, 2006
	 
	 	 	50,925	 	 	 	 	 	 	 	203,701	 	 	 	 	 	 	October 6, 2007

To the extent that the Option becomes exercisable with respect to any Shares, as provided above,
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

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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.

     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

3

 

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.

     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.

          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.

4

 

          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.

     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.

5

 

     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 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.

     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.

6

 

     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.

          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	 	 
	 

	 	 	 	(“Optionee”)	 	 

7

 

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]

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