Document:

EX-10.14

 

Exhibit 10.14

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                                          (the
“Optionee”).

WITNESSETH :

     WHEREAS, the Compensation Committee of the Board of Directors (the “Committee”) is authorized
to administer the Company’s 2004 Stock Option and Incentive Plan (the “Plan”); and

     WHEREAS, the Committee has determined that the Optionee, as a key employee of [                                        ,
an Affiliate of] the Company should be granted a stock option under the Plan upon the terms and
conditions set forth in this Agreement, and for the number of shares of Common Stock, par value
$.01 per share, of the Company (the “Shares”) set forth herein below;

     NOW, THEREFORE, the Company and the Optionee hereby agree as follows:

     1. Definitions. Capitalized terms shall have the meanings set forth in the Plan (as
defined below) unless otherwise specifically set forth below or elsewhere herein:

	 	(a)	 	The word “Agreement” shall mean this instrument.
	 
	 	(b)	 	The words “Credit Agreement” shall mean that certain Amended and Restated
Revolving Credit Agreement dated as of September 15, 2003, by and among the Company,
its lenders and the other parties thereto identified on the signature pages of said
Agreement.
	 
	 	(c)	 	The word “EBITDAR” shall have the same meaning as “Consolidated EBITDA” as
defined in the Credit Agreement.
	 
	 	(d)	 	The words “Family Group” shall mean with respect to the Optionee such person’s
spouse, siblings and descendants (whether or not adopted) and any trust, family limited
partnership or limited liability company that is and remains solely for the benefit of
such person and/or such person’s spouse, siblings and/or descendants.
	 
	 	(e)	 	The word “Option” shall mean the right and option of the Optionee to purchase
Shares pursuant to the terms of this Agreement.
	 
	 	(f)	 	The words “Option Price” shall mean the price at which Shares may be acquired
upon the exercise of any Option.
	 
	 	(g)	 	The words “Option Shares” shall mean (i) the Shares and any other capital stock
or equity securities of the Company acquired by the Optionee or his successors by
virtue of the exercise of the Option and (ii) any capital stock or other equity
securities issued or issuable directly or indirectly with respect to the securities

 

 

	 	 	 	referred to in clause (i) above by way of stock dividend or split or in connection with
a combination of shares, recapitalization, merger, consolidation or other
reorganization. As to any particular shares constituting Option Shares, such shares
shall cease to be Option Shares when they have been sold to the public pursuant to a
resale offering registered under the Securities Act or to the public through a broker
dealer or market maker pursuant to the provisions of Rule 144 adopted under the
Securities Act.

	 	(h)	 	The words “Personal Representative” shall mean, following the Optionee’s death,
the person who shall have acquired, by will or by the laws of descent and distribution,
the right to exercise any Option.
	 
	 	(i)	 	The word “Plan” shall mean the Company’s 2004 Stock Option and Incentive Plan,
as in effect on the date of this Agreement (a copy of which is attached as Exhibit A).
	 
	 	(j)	 	The words “Public Offering” shall mean a public offering and sale of capital
stock or equity securities of the Company pursuant to an effective registration
statement under the Securities Act.
	 
	 	(k)	 	The words “Qualified Public Offering” shall mean a Public Offering which
results in aggregate proceeds to the Company and/or the Stockholders (as defined in the
Investor Rights Agreement) of at least $50,000,000.
	 
	 	(l)	 	The words “Securities Act” shall mean the Securities Act of 1933, as amended or
any similar federal law in force.
	 
	 	(m)	 	The words “Successor Agreement” shall mean an agreement in the form attached
hereto as Exhibit B under which any prospective transferee of Option Shares agrees to
be bound by the obligations imposed hereunder on a holder of Option Shares.

     2. Grant of Option. Effective as of the date of this Agreement, the Company grants to
the Optionee, upon the terms and conditions set forth hereinafter, the right and option to purchase
all or any number of an aggregate of                      Shares. All of the Shares shall be subject to a
nonqualified stock option at an Option Price of $13.89 per Share.

     3. Term of Option. The term of the Option shall be for a period of ten (10) years
from the date hereof. The Option shall expire at the close of regular business hours at the
Company’s principal office in Mayfield Heights, Ohio, on the last day of the term of the Option,
or, if earlier, on the applicable expiration date provided for in Sections 5, 6 and 7 hereof.

     4. Exercise Dates. The Optionee shall be entitled to exercise the Option only to the
extent the Option becomes exercisable under the terms and conditions of the vesting schedule
attached hereto as Exhibit C. To the extent that the Option becomes exercisable with respect
to any Shares, as provided on Exhibit C, the Option may thereafter be exercised by the Optionee
either with respect to all or any number of such Shares at any time or from time to time prior to
the expiration of the Option. Except as provided in Sections 5 and 6 hereof, the Option may not

 

 

be exercised at any time unless the Optionee shall be an employee or director of the Company or one of
its Affiliates (an “Eligible Participant”) at such time.

     5. Termination of Employment. So long as the Optionee shall continue to be an
Eligible Participant, the Option shall not be affected by (a) any temporary leave of absence
approved in writing by the Company or an Affiliate of the Company, or (b) any change of duties or
position (including transfer to or from a subsidiary or other Affiliate). If the Optionee ceases
to be an Eligible Participant for any reason other than death, the Option may be exercised only to
the extent of the purchase rights, if any, which, pursuant to Section 4 hereof, existed as of the
date the Optionee ceases to be an Eligible Participant and which have not theretofore been
exercised; provided, however, that the Committee may in its absolute discretion determine (but
shall not be under any obligation to determine) that such purchase rights shall be deemed to
include additional Shares which are subject to the Option. Subject to the provisions of Section 6,
upon an Optionee’s ceasing to be an Eligible Participant, such purchase rights shall in any event
terminate upon the earlier of (a) three (3) months after the date the Optionee ceased to be such,
or (b) the last day of the term of the Option. Nothing in this Agreement shall confer upon any
Optionee any right to continue in the employ or service of the Company or an Affiliate of the
Company, or to interfere with or limit either the right of the Company or an Affiliate of the
Company to terminate his employment or service at any time or the right of the stockholders of the
Company or an Affiliate of the Company to remove him as a member of the Board of Directors of the
Company or an Affiliate of the Company in any of the foregoing cases with or without cause.

     6. Death of Optionee. If the Optionee dies while he is an Eligible Participant, or
within three (3) months of the Optionee’s having ceased to be such, the Optionee’s Personal
Representative may exercise the Option to the extent of the purchase rights, if any, which,
pursuant to Section 4 hereof, existed as of the date of the Optionee’s death and which have not
theretofore been exercised; provided, however, that the Committee may in its absolute discretion
determine (but shall not be under any obligation to determine) that such purchase rights shall be
deemed to include additional Shares which are subject to the Option. Such purchase rights shall in
any event terminate upon the earlier of (a) the first anniversary of the date the Optionee ceased
to be an Eligible Participant; or (b) the last day of the term of the Option.

     7. Change in Control. In the event of a Change in Control (as defined under the terms
of the Plan) the Optionee shall have the immediate right (notwithstanding the provisions of Section
4 hereof) to exercise the Option with respect to all Shares covered by the Option.

     8. Exercise of Option. The Option may be exercised by delivering to the Treasurer of
the Company at its principal office, 5885 Landerbrook Dr., Cleveland, OH 44124, a completed Notice
of Exercise of Option (obtainable from the Treasurer of the Company) setting forth the number of
Shares with respect to which the Option is being exercised. Such Notice shall be accompanied by
payment in full for the Shares. Such payment shall be made by certified or cashier’s check payable
to the Company in the amount of the aggregate purchase
price for such Shares, or, if permitted by the Committee, in whole or in part in Shares having
a Fair Market Value on the date the Option is exercised equal to that portion of the purchase price
for which payment in cash is not made, or by any other method prescribed by the Committee that it
determines to be consistent with applicable law and the purposes of the Plan.

 

 

     9. Issuance of Share Certificates. Subject to the last sentence of this Section 9 and
to Sections 16 and 17, upon receipt by the Company prior to expiration of the Option of a duly
completed Notice of Exercise of Option to exercise the Option accompanied by full payment for the
Shares being purchased pursuant to such Notice (and, with respect to any Option exercised pursuant
to Section 6 or Section 11 hereof by someone other than the Optionee, accompanied in addition by
proof satisfactory to the Committee of the right of such person to exercise the Option), the
Company shall promptly cause to be made or otherwise delivered to the Optionee, a certificate for
the number of shares so purchased. The Optionee shall not have any of the rights of a stockholder
with respect to the Shares which are subject to the Option unless and until a certificate
representing such Shares is issued to the Optionee. The Company shall not be required to issue any
certificates for Shares upon the exercise of an Option granted under the Plan prior to (i)
obtaining any approval from any governmental agency which the Committee shall, in its sole
discretion, determine to be necessary or advisable, (ii) the admission of such Shares to listing on
any securities exchange (if any) on which the Shares may then be listed or quoted, and (iii)
completion of any registration or other qualification of the Shares under any state, federal or
other law or ruling or regulations of any governmental body which the Committee shall, in its sole
discretion, determine to be necessary or advisable, or the determination by the Committee, in its
sole discretion, that any registration or other qualification of the Shares is not necessary or
advisable.

     10. Restrictions on Transfer of Option Shares.

     10.1 Transfer Restrictions. No holder of Option Shares may sell, transfer, assign, pledge
or otherwise directly or indirectly dispose of (whether with or without consideration and whether
voluntarily or involuntarily or by operation of law) (a “Transfer”) any Option Shares or interest
therein, except any Exempt Transfer (as defined below) of Option Shares pursuant to and in
accordance with Section 10.2.

     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.

     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.

     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

 

 

8

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.

     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 	 
	 	 	Chief Executive Officer and President 	 
	 

	 	 	 	 	 
	 

	 	 

[Name of Optionee]
	 	 
	 

	 	(“Optionee”)	 	 

 

 

EXHIBIT A

CHART INDUSTRIES, INC. 2004 STOCK OPTION AND INCENTIVE PLAN

 

 

EXHIBIT B

FORM OF SUCCESSOR AGREEMENT

     This notice is being delivered to Chart Industries, Inc., a Delaware corporation (the
“Company”), pursuant to Section 10.3 of that certain Stock Option Agreement, dated as of
March 19, 2004 (as amended from time to time, the “Stock Option Agreement”), by and between the
Company and                    . Capitalized terms used herein shall have the meanings assigned to such
terms in the Stock Option Agreement.

     The undersigned hereby notifies the Company that [name of transferor) has transferred to the
undersigned                                 shares of Common Stock that are Option Shares. In connection with such
transfer, the undersigned hereby agrees to be bound by Sections 10, 11, 17 and 18 of the Stock
Option Agreement and such other provisions of the Stock Option Agreement imposing obligations on a
holder of Option Shares.

     Any notice required under the Stock Option Agreement should be delivered to the undersigned at
the address set forth below:

	 	 	 	 	 	 	 
	Facsimile:
	 	 	 	 	 	 
	 	 	 	 	 
	Attention:
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:	 	 	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[Transferee)
	 	 

 

 

EXHIBIT C

VESTING SCHEDULE

     The Optionee shall be entitled to exercise the Option only upon satisfaction of the terms set
forth on this Schedule.

	I.	 	Vesting Based on Continuing in Service.

          The Optionee shall be entitled to exercise the Option with respect to one half of the Shares
(the “Service Shares”) based on his continuing as an employee of the Company or one of its
Affiliates. The Optionee shall be entitled to exercise the Option with respect to the number of
Service Shares indicated below on or after the date indicated opposite such number below:

	 	 	 	 	 
	Annual Number	 	 	 	 
	of Service Shares with	 	Total Service Shares with	 	Date Beginning
	Respect to which 	 	Respect to which	 	on which Option
	Option may 	 	Option may be	 	may be Exercised
	be Exercised 	 	Exercised	 	for such Service Shares
	 
	[12.5% of initial grant]

	 	 	 	January 1, 2005
	[12.5% of initial grant]

	 	 	 	January 1, 2006
	[12.5% of initial grant]

	 	 	 	January 1, 2007
	[12.5% of initial grant]

	 	 	 	January 1, 2008

	II.	 	Vesting Based on Satisfaction of Financial Goals.

          The Optionee shall be entitled to exercise the Option with respect to one half of the Shares
(the “Financial Goal Shares”) based on the Company’s realization of certain financial targets set
forth below. If the Committee determines that the Company has achieved the EBITDAR Minimum Target
for a specified period set forth below, then the Optionee shall be entitled to exercise the Option
with respect to the number of Financial Goal Shares indicated below opposite such specified period
on and after the date of such determination:

	 	 	 	 	 	 	 
	Annual Number	 	Total Financial	 	Period after which	 	 
	of Financial Goal Shares	 	Goal Shares with	 	Option may be	 	 
	with Respect to which	 	Respect to which	 	Exercised for such	 	 
	Option may be	 	Option may be	 	Financial Goal	 	EBITDAR
	Exercised	 	Exercised	 	Shares	 	 Minimum Target1
	 
	[12.5% of initial grant]

	 	 	 	Nine month period

ending 12/31/2004	 	 
	[12.5% of initial grant]

	 	 	 	Fiscal Year 2005	 	 
	[12.5% of initial grant]

	 	 	 	Fiscal Year 2006	 	 
	[12.5% of initial grant]

	 	 	 	Fiscal Year 2007	 	 

 

			
	1	 	EBITDAR Minimum Target for 2004 is for the
nine-month period of April 1 to December 31, 2004.

 

     The Committee shall determine whether the Company has achieved the EBITDAR Minimum Target for
the specified period no later than 10 calendar days after the audited financial statements of the
Company and its consolidated subsidiaries are completed for the fiscal year ending on the same day
on which such period ends. If the Committee determines that the Company has not achieved the
EBITDAR Minimum Target for the specified period, then all of the Financial Goal Shares set forth
opposite such period in the table above shall be forfeited and the Optionee shall never be entitled
to exercise the Option with respect to any of such Financial Goal Shares. After the Optionee is
entitled to exercise the Option with respect to any Financial Goal Shares, the Optionee shall not
forfeit such right based solely on the financial performance of the Company for succeeding periods.

     The Committee shall have the authority to determine EBITDAR for each specified period. In
making such determination, the Committee shall be entitled to rely on the determination of EBITDAR
under the Credit Agreement for periods coinciding with such specified period.

2EX-10.15

 

 

Exhibit 10.15

CHART INDUSTRIES, INC.

2005 STOCK INCENTIVE PLAN

1. Purpose of the Plan

          The purpose of the Plan is to aid the Company and its Affiliates in recruiting and retaining
key employees, directors or consultants of outstanding ability and to motivate such employees,
directors or consultants to exert their best efforts on behalf of the Company and its Affiliates by
providing incentives through the granting of Awards. The Company expects that it will benefit from
the added interest which such key employees, directors or consultants will have in the welfare of
the Company as a result of their proprietary interest in the Company’s success.

2. Definitions

          The following capitalized terms used in the Plan have the respective meanings set forth in
this Section:

	 	(a)	 	Act: The Securities Exchange Act of 1934, as amended,
or any successor thereto.
	 
	 	(b)	 	Affiliate: With respect to any entity, any entity
directly or indirectly controlling, controlled by, or under common control
with, such entity.
	 
	 	(c)	 	Award: An Option, Stock Appreciation Right or Other
Stock-Based Award granted pursuant to the Plan.
	 
	 	(d)	 	Beneficial Owner: A “beneficial owner”, as such term
is defined in Rule 13d-3 under the Act (or any successor rule thereto).
	 
	 	(e)	 	Board: The Board of Directors of the Company.
	 
	 	(f)	 	Change in Control: The occurrence of either of the
following events, (i) the sale or disposition, in one or a series of related
transactions, of all or substantially all, of the assets of the Company to any
Person or “group” (as such term is defined in Section 13(d)(3) or 14(d)(2) of
the Act) other than the Permitted Holders, or (ii) any person or group, other
than the Permitted Holders, is or becomes the Beneficial Owner, directly or
indirectly, of more than 50% of the total voting power of the voting stock of
the Company (or any entity which controls the Company or which is a successor
to all or substantially all of the assets of the Company), including by way of
merger, consolidation, tender or exchange offer or otherwise and the
representatives of the Permitted Holders (individually or in the aggregate)
cease to comprise a majority of the Board.
	 
	 	(g)	 	Code: The Internal Revenue Code of 1986, as amended,
or any successor thereto.
	 
	 	(h)	 	Committee: The Board or any person or persons
designated by the Board to administer the Plan.
	 
	 	(i)	 	Company: Chart Industries, Inc., a Delaware
corporation.

 

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	 	(j)	 	Disability: Inability of a Participant to perform in
all material respects his duties and responsibilities to the Company, or any
Subsidiary of the Company, by reason of a physical or mental disability or
infirmity which inability is reasonably expected to be permanent and has
continued for a period of six consecutive months or for an aggregate of nine
(9) months in any twenty-four (24) consecutive month period. Any question as
to the existence of the Disability of a Participant as to which the Participant
and the Company cannot agree shall be determined in writing by a qualified
independent physician mutually acceptable to the Participant and the Company.
If the Participant and the Company cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing. The determination
of Disability made in writing to the Company and the Participant shall be final
and conclusive for all purposes of the Plan and any Award agreement.
	 
	 	(k)	 	Effective Date: The date the Board approves the Plan,
or such later date as is designated by the Board.
	 
	 	(l)	 	Employment: The term “Employment” as used herein shall
be deemed to refer to (i) a Participant’s employment if the Participant is an
employee of the Company or any of its Affiliates, (ii) a Participant’s services
as a consultant, if the Participant is a consultant to the Company or its
Affiliates and (iii) a Participant’s services as a non-employee director, if
the Participant is a non-employee member of the Board.
	 
	 	(m)	 	Fair Market Value: On a given date, (i) if there is a
public market for the Shares on such date, the arithmetic mean of the high and
low prices of the Shares as reported on such date on the Composite Tape of the
principal national securities exchange on which such Shares are listed or
admitted to trading, or, if the Shares are not listed or admitted on any
national securities exchange, the arithmetic mean of the per Share closing bid
price and the per Share closing asked price on such date as quoted on the
National Association of Securities Dealers Automated Quotation System (or such
market in which such prices are regularly quoted) (the “NASDAQ”), or if no sale
of Shares shall have been reported on the Composite Tape of any national
securities exchange or quoted on NASDAQ on such date, then the immediately
preceding date on which sales of the Shares have been so reported or quoted
shall be used, and (ii) if there is no public market for the Shares on such
date, the Fair Market Value shall be the fair market value of the Shares as
determined in good faith by the Board assuming a hypothetical liquidation of
the Company or the sale of the Company to a third party; provided that
if the Participant disagrees with the Board’s determination, he may require the
Company to retain an independent investment banker to determine the fair market
value. The Company will bear the cost of such appraisal, unless the appraised
value is 110% or less of the Board’s determination of the fair

 

3

	 	 	 	market value, in which case the Participant will bear the cost of such
appraisal.
	 
	 	(n)	 	Other Stock-Based Awards: Awards granted pursuant to
Section 8 of the Plan.
	 
	 	(o)	 	Option: A stock option granted pursuant to Section 6
of the Plan.
	 
	 	(p)	 	Option Price: The purchase price per Share of an
Option, as determined pursuant to Section 6(a) of the Plan.
	 
	 	(q)	 	Participant: An employee, director or consultant of
the Company or its Affiliates who is selected by the Committee to participate
in the Plan.
	 
	 	(r)	 	Permitted Holder: As of the date of determination, any
and all of (i) an employee benefit plan (or trust forming a part thereof)
maintained by (A) the Company or its Affiliates or (B) any corporation or other
Person of which a majority of its voting power of its voting equity securities
or equity interest is owned, directly or indirectly, by the Company and (ii)
First Reserve Fund X, L.P. or any of its Affiliates.
	 
	 	(s)	 	Person: A “person”, as such term is used for purposes
of Section 13(d) or 14(d) of the Act (or any successor section thereto).
	 
	 	(t)	 	Plan: The Chart Industries, Inc. 2005 Stock Incentive
Plan.
	 
	 	(u)	 	Shares: Shares of common stock of the Company.
	 
	 	(v)	 	Stock Appreciation Right: A stock appreciation right
granted pursuant to Section 7 of the Plan.
	 
	 	(w)	 	Subsidiary: A subsidiary corporation, as defined in
Section 424(f) of the Code (or any successor section thereto).

3. Shares Subject to the Plan

          The total number of Shares which may be issued under the Plan is 225,157, which total is
reserved for issuance to employees of the Company or its Affiliates. The Shares may consist, in
whole or in part, of unissued Shares or treasury Shares. The issuance of Shares or the payment of
cash upon the exercise of an Award or in consideration of the cancellation or termination of an
Award shall reduce the total number of Shares available under the Plan, as applicable. Shares
which are subject to Awards or portions of Awards which terminate or lapse without issuance of
Shares may be granted again under the Plan.

4. Administration

          The Plan shall be administered by the Committee, which may delegate its duties and powers in
whole or in part to any subcommittee thereof. Awards may, in the discretion of the Committee, be
made under the Plan in assumption of, or in substitution for, outstanding

 

4

awards previously granted by the Company or its Affiliates or a company acquired by the
Company or with which the Company combines. The number of Shares underlying such substitute awards
shall be counted against the aggregate number of Shares available for Awards under the Plan.
Subject to Section 15 of the Plan, the Committee is authorized to interpret the Plan, to establish,
amend and rescind any rules and regulations relating to the Plan, and to make any other
determinations that it deems necessary or desirable for the administration of the Plan. The
Committee may correct any defect or supply any omission or reconcile any inconsistency in the Plan
in the manner and to the extent the Committee deems necessary or desirable. Any decision of the
Committee in the interpretation and administration of the Plan, as described herein, shall lie
within its sole and absolute discretion and shall be final, conclusive and binding on all parties
concerned (including, but not limited to, Participants and their beneficiaries or successors). The
Committee shall have the full power and authority to establish the terms and conditions of any
Award consistent with the provisions of the Plan and to waive any such terms and conditions at any
time (including, without limitation, accelerating or waiving any vesting conditions). The
Committee shall require payment of any amount it may determine to be necessary to withhold for
federal, state, local or other taxes as a result of the exercise, grant or vesting of an Award and
the Company or its Affiliates shall have the right and is authorized to withhold any applicable
withholding taxes in respect to the Award, its exercise or any payment or transfer under or with
respect to the Award and to take such other action as may be necessary in the opinion of the
Committee to satisfy all obligations for the payment of such withholding taxes. Unless the
Committee specifies otherwise, the Participant may elect to pay a portion or all of such
withholding taxes by (a) delivery in Shares, provided that such shares have been held by the
Participant for more than six (6) months (or such other period as established by the Committee from
time to time in order to avoid adverse accounting treatment applying generally accepted accounting
principles) or (b) with respect to minimum withholding amounts only, having Shares with a Fair
Market Value equal to the amount withheld by the Company from any Shares that would have otherwise
been received by the Participant.

5. Limitations

          No Award may be granted under the Plan after the tenth anniversary of the Effective Date, but
Awards theretofore granted may extend beyond that date.

6. Terms and Conditions of Options

          Options granted under the Plan shall be non-qualified stock options for federal income tax
purposes which are not intended to be treated as options that comply with Section 422 of the Code,
as evidenced by the related Award agreements, and shall be subject to the foregoing and the
following terms and conditions and to such other terms and conditions, not inconsistent therewith,
as the Committee shall determine:

	 	(a)	 	Option Price. The Option Price per Share shall be
equal to the Fair Market Value on the applicable date of grant.
	 
	 	(b)	 	Exercisability. Options granted under the Plan shall
be exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted.

 

5

	 	(c)	 	Exercise of Options. Except as otherwise provided in
the Plan or in an Award agreement, an Option may be exercised for all, or from
time to time any part, of the Shares for which it is then exercisable. For
purposes of Section 6 of the Plan, the exercise date of an Option shall be the
later of the date a notice of exercise is received by the Company and, if
applicable, the date payment is received by the Company pursuant to clauses
(i), (ii), (iii) or (iv) in the following sentence. The purchase price for the
Shares as to which an Option is exercised shall be paid to the Company in full
at the time of exercise at the election of the Participant (i) in cash or its
equivalent (e.g., by check), (ii) to the extent permitted by the Committee, in
Shares having a Fair Market Value equal to the aggregate Option Price for the
Shares being purchased and satisfying such other requirements as may be imposed
by the Committee; provided, that such Shares have been held by the Participant
for more than six months (or such other period as established from time to time
by the Committee in order to avoid adverse accounting treatment applying
generally accepted accounting principles), (iii) partly in cash and, to the
extent permitted by the Committee, partly in such Shares, (iv) if there is a
public market for the Shares at such time, to the extent permitted by, and
subject to such rules as may be established by the Committee, through the
delivery of irrevocable instructions to a broker to sell Shares obtained upon
the exercise of the Option and to deliver promptly to the Company an amount out
of the proceeds of such sale equal to the aggregate Option Price for the Shares
being purchased, or (v) through such cashless exercise procedures (including
surrender of a portion of the Option in payment of the Option Price) as the
Committee may permit. Except with respect to an adjustment pursuant to Section
9 of the Plan, no Participant shall have any rights to dividends or other
rights of a stockholder with respect to Shares subject to an Option until the
Participant has given written notice of exercise of the Option, paid in full
for such Shares and, if applicable, has satisfied any other conditions imposed
by the Committee pursuant to the Plan.
	 
	 	(d)	 	Attestation. Wherever in this Plan or any agreement
evidencing an Award a Participant is permitted to pay the Option Price of an
Option or taxes relating to the exercise of an Option by delivering Shares, the
Participant may, subject to procedures satisfactory to the Committee, satisfy
such delivery requirement by presenting proof of beneficial ownership of such
Shares, in which case the Company shall treat the Option as exercised without
further payment and shall withhold such number of Shares from the Shares
acquired by the exercise of the Option.

7. Terms and Conditions of Stock Appreciation Rights

	 	(a)	 	Grants. The Committee also may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation Right
in connection with an Option, or a portion thereof. A Stock Appreciation Right
granted pursuant to clause (ii) of the preceding sentence (A) may be granted at
the

 

6

	 	 	 	time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of
Shares covered by an Option (or such lesser number of Shares as the
Committee may determine) and (C) shall be subject to the same terms and
conditions as such Option except for such additional limitations as are
contemplated by this Section 7 (or such additional limitations as may be
included in an Award agreement).
	 
	 	(b)	 	Terms. The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the greater of (i) the Fair Market Value
of a Share on the date the Stock Appreciation Right is granted or, in the case
of a Stock Appreciation Right granted in conjunction with an Option, or a
portion thereof, the Option Price of the related Option and (ii) the minimum
amount permitted by applicable laws, rules, by-laws or policies of regulatory
authorities or stock exchanges. Each Stock Appreciation Right granted
independent of an Option shall entitle a Participant upon exercise to an amount
equal to (i) the excess of (A) the Fair Market Value on the exercise date of
one Share over (B) the exercise price per Share, times (ii) the number of
Shares covered by the Stock Appreciation Right. Each Stock Appreciation Right
granted in conjunction with an Option, or a portion thereof, shall entitle a
Participant to surrender to the Company the unexercised Option, or any portion
thereof, and to receive from the Company in exchange therefor an amount equal
to (i) the excess of (A) the Fair Market Value on the exercise date of one
Share over (B) the Option Price per Share, times (ii) the number of Shares
covered by the Option, or portion thereof, which is surrendered. The date a
notice of exercise is received by the Company shall be the exercise date.
Payment shall be made in Shares or in cash, or partly in Shares and partly in
cash (any such Shares valued at such Fair Market Value), all as shall be
determined by the Committee. Stock Appreciation Rights may be exercised from
time to time upon actual receipt by the Company of written notice of exercise
stating the number of Shares with respect to which the Stock Appreciation Right
is being exercised. No fractional Shares will be issued in payment for Stock
Appreciation Rights, but instead cash will be paid for a fraction or, if the
Committee should so determine, the number of Shares will be rounded downward to
the next whole Share.
	 
	 	(c)	 	Limitations. The Committee may impose, in its
discretion, such conditions upon the exercisability or transferability of Stock
Appreciation Rights as it may deem fit.

8. Other Stock-Based Awards

	 	(a)	 	Generally. The Committee, in its sole discretion, may
grant or sell Awards of Shares, Awards of restricted Shares and Awards that are
valued in whole or in part by reference to, or are otherwise based on the Fair
Market Value of, Shares (“Other Stock-Based Awards”). Such Other

 

7

	 	 	 	Stock-Based Awards shall be in such form, and dependent on such conditions,
as the Committee shall determine, including, without limitation, the right
to receive, or vest with respect to, one or more Shares (or the equivalent
cash value of such Shares) upon the completion of a specified period of
service, the occurrence of an event and/or the attainment of performance
objectives. Other Stock-Based Awards may be granted alone or in addition to
any other Awards granted under the Plan. Subject to the provisions of the
Plan, the Committee shall determine to whom and when Other Stock-Based
Awards will be made, the number of Shares to be awarded under (or otherwise
related to) such Other Stock-Based Awards; whether such Other Stock-Based
Awards shall be settled in cash, Shares or a combination of cash and Shares;
and all other terms and conditions of such Awards (including, without
limitation, the vesting provisions thereof and provisions ensuring that all
Shares so awarded and issued shall be fully paid and non-assessable).

9. Adjustments Upon Certain Events

          Notwithstanding any other provisions in the Plan to the contrary, the following provisions
shall apply to all Awards granted under the Plan:

	 	(a)	 	Generally. In the event of any change in the
outstanding Shares after the Effective Date by reason of any Share dividend or
split, reorganization, recapitalization, merger, consolidation, spin-off,
combination, combination or transaction or exchange of Shares or other
corporate exchange, or any distribution to shareholders other than regular cash
dividends or any transaction similar to the foregoing, the Committee, in its
sole discretion and without liability to any person, may make such substitution
or adjustment, if any, as it deems to be equitable, as to (i) the number or
kind of Shares or other securities issued or reserved for issuance pursuant to
the Plan or pursuant to outstanding Awards, (ii) the maximum number of Shares
for which Options or Stock Appreciation Rights may be granted during a calendar
year to any Participant (iii) the Option Price or exercise price of any Award
and/or (iv) any other affected terms of such Awards.
	 
	 	(b)	 	Change in Control. In the event of a Change in Control
after the Effective Date, (i) if determined by the Committee in the applicable
Award agreement or otherwise, any outstanding Awards then held by Participants
which are unexercisable or otherwise unvested or subject to lapse restrictions
may automatically be deemed exercisable or otherwise vested or no longer
subject to lapse restrictions, as the case may be, as of immediately prior to
such Change in Control and (ii) the Committee may, but shall not be obligated
to, (A) cancel such Awards for fair value, to the extent permitted under
Section 409A of the Code, which, in the case of Options and Stock Appreciation
Rights, 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 Options or Stock

 

8

	 	 	 	Appreciation Rights (or, if no consideration is paid in any such
transaction, the Fair Market Value of the Shares subject to such Options or
Stock Appreciation Rights) over the aggregate Option Price or exercise price
of such Options or Stock Appreciation Rights 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 and
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.

10. No Right to Employment or Awards

          The granting of an Award under the Plan shall impose no obligation on the Company or any
Affiliate to continue the Employment of a Participant and shall not lessen or affect the Company’s
or Affiliate’s right to terminate the Employment of such Participant. No Participant or other
Person shall have any claim to be granted any Award, and there is no obligation for uniformity of
treatment of Participants, or holders or beneficiaries of Awards. The terms and conditions of
Awards and the Committee’s determinations and interpretations with respect thereto need not be the
same with respect to each Participant (whether or not such Participants are similarly situated).

11. Certificates

          All certificates, if any, evidencing Shares or other securities of the Company delivered under
the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer
orders and other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the Securities and Exchange Commission or other applicable
governmental authority, any stock exchange or market upon which such securities are then listed,
admitted or quoted, as applicable, and any applicable Federal, state or any other applicable laws,
and the Committee may cause a legend or legends to be put on any such certificates to make
appropriate reference to such restrictions.

12. Other Laws

          The Committee may refuse to issue or transfer any Shares or other consideration under an Award
if, acting in its sole discretion, it determines that the issuance or transfer of such Shares or
such other consideration might violate any applicable law or regulation and any payment tendered to
the Company by a Participant, other holder or beneficiary in connection with the exercise of such
Award shall be promptly refunded to the relevant Participant, holder or beneficiary. Without
limiting the generality of the foregoing, no Award granted hereunder shall be construed as an offer
to sell securities of the Company, and no such offer shall be outstanding, unless and until the
Committee in its sole discretion has determined that any such offer, if made, would be in
compliance with all applicable requirements of applicable securities laws, including, without
limitation, laws of the United States (and any state thereof), Germany, the United Kingdom, the
Czech Republic or the People’s Republic of China.

 

9

13. Successors and Assigns

          The Plan shall be binding on all successors and assigns of the Company and a Participant,
including without limitation, the estate of such Participant and the executor, administrator or
trustee of such estate, or any receiver or trustee in bankruptcy or representative of the
Participant’s creditors.

14. Nontransferability of Awards

     Unless otherwise determined by the Committee, an Award shall not be transferable or assignable
by the Participant otherwise than by will or by the laws of descent and distribution. An Award
exercisable after the death of a Participant may be exercised by the legatees, personal
representatives or distributees of the Participant.

15. Amendments or Termination

          The Board may amend, alter or discontinue the Plan, but no amendment, alteration or
discontinuation shall be made, (a) without the approval of the shareholders of the Company, if such
action would (except as is provided in Section 9 of the Plan), increase the total number of Shares
reserved for the purposes of the Plan or (b) without the consent of a Participant, if such action
would diminish any of the rights of the Participant under any Award theretofore granted to such
Participant under the Plan; provided, however, that the Committee may amend the Plan in such manner
as it deems necessary to permit the granting of Awards meeting the requirements of the Code or
other applicable laws.

          Without limiting the generality of the foregoing, to the extent applicable, notwithstanding
anything herein to the contrary, this Plan and Awards issued hereunder shall be interpreted in
accordance with Section 409A of the Code and Department of Treasury regulations and other
interpretative guidance issued thereunder, including without limitation any such regulations or
other guidance that may be issued after the Effective Date. 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 Section 409A of the Code and related Department of Treasury
guidance 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.

16. International Participants

          With respect to Participants who reside or work outside the United States of America, the
Committee may, in its sole discretion, amend the terms of the Plan or Awards with respect to such
Participants in order to conform such terms with the requirements of local law.

 

10

17. Choice of Law

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

18. Effectiveness of the Plan

          The Plan shall be effective as of the Effective Date.

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