Document:

EX-10.19

 

Exhibit 10.19

CHART INDUSTRIES, INC.

INCENTIVE COMPENSATION PLAN

1. Purpose of the Plan

     The purpose of the Plan is to enable the Company and its Affiliates to attract, retain,
motivate and reward executive officers and key employees by providing them with the opportunity to
earn competitive compensation directly linked to the Company’s performance.

2. Definitions

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

	 	(a)	 	“Act” shall mean the Securities Exchange Act of 1934, as amended, or any
successor thereto.
	 
	 	(b)	 	“Affiliate” shall mean, with respect to any entity, any entity directly or
indirectly controlling, controlled by, or under common control with, such entity.
	 
	 	(c)	 	“Beneficial Owner” shall mean a “beneficial owner”, as such term is defined in
Rule 13d-3 under the Act (or any successor rule thereto).
	 
	 	(d)	 	“Board” shall mean the Board of Directors of the Company.
	 
	 	(e)	 	“Change in Control” means the occurrence of any 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 Sections 13(d)(3) or 14(d)(2) of the Act) other than the Permitted
Holders; (ii) any Person or group, other than the Permitted Holders, is or becomes the
Beneficial Owner (except that a person shall be deemed to have “beneficial ownership”
of all shares that any such Person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), 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; or (iii) during any period of two (2) consecutive years,
individuals who at the beginning of such period constituted the Board (together with
any new directors whose election by such Board or whose nomination for election by the
stockholders of the Company was approved by a vote of a majority of the directors of
the Company, then still in office, who were either directors at the beginning of such
period or whose election or nomination for election was previously so approved) cease
for any reason to constitute a majority of the Board, then in office.
	 
	 	(f)	 	“Code” shall mean the Internal Revenue Code of 1986, as amended, or any
successor thereto.

 

 

	 	(g)	 	“Committee” shall mean the Compensation Committee of the Board.
	 
	 	(h)	 	“Company” shall mean Chart Industries, Inc., a Delaware corporation.
	 
	 	(i)	 	“Participant” shall mean each executive officer of the Company and other key
employee of the Company or an Affiliate whom the Committee designates as a participant
under the Plan.
	 
	 	(j)	 	“Performance Period” shall mean each fiscal year or multi-year cycle as
determined by the Committee.
	 
	 	(k)	 	“Permitted Holder” shall mean, 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.
	 
	 	(l)	 	“Person” shall mean a “person”, as such term is used for purposes of Section
13(d) or 14(d) of the Act (or any successor section thereto).
	 
	 	(m)	 	“Plan” shall mean the Chart Industries, Inc. Incentive Compensation Plan, as
set forth herein and as may be amended from time to time.
	 
	 	(n)	 	“Share” shall mean a share of common stock of the Company.
	 
	 	(o)	 	“Subsidiary” shall mean a subsidiary corporation, as defined in Section 424(f)
of the Code (or any successor section thereto).

3. Administration

     The Plan shall be administered and interpreted by the Committee; provided,
however, that the Board may, in its sole discretion, take any action designated to the
Committee under this Plan as it may deem necessary. The Committee shall establish the performance
objectives for any Performance Period in accordance with Section 4 and certify whether and to what
extent such performance objectives have been obtained. Any determination made by the Committee
under the Plan shall be final and conclusive. The Committee may employ such legal counsel,
consultants and agents (including counsel or agents who are employees of the Company or an
Affiliate) as it may deem desirable for the administration of the Plan and may rely upon any
opinion received from any such counsel or consultant or agent and any computation received from
such consultant or agent. All expenses incurred in the administration of the Plan, including,
without limitation, for the engagement of any counsel, consultant or agent, shall be paid by the
Company. No member or former member of the Board or the Committee shall be liable for any act,
omission, interpretation, construction or determination made in connection with the Plan other than
as a result of such individual’s willful misconduct. The Committee may delegate its authority
under this Plan in whole or in part to any subcommittee thereof.

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4. Bonuses

	 	(a)	 	Performance Criteria. No later than 90 days after each Performance
Period begins, the Committee shall establish the performance objective or objectives
that must be satisfied in order for a Participant to receive a bonus for such
Performance Period. Any such performance objectives will be based upon the relative or
comparative achievement of one or more of the following criteria, as determined by the
Committee: (i) earnings before or after taxes (including earnings before interest,
taxes, depreciation and amortization or earnings before interest and taxes); (ii) net
income; (iii) operating income; (iv) earnings per Share; (v) book value per Share; (vi)
return on stockholders’ equity; (vii) expense management; (viii) return on investment;
(ix) improvements in capital structure or capital expenses; (x) profitability of an
identifiable business unit or product; (xi) maintenance or improvement of profit
margins; (xii) stock price; (xiii) market share; (xiv) costs; (xv) liquidity or cash
flow; (xvi) working capital and working capital metrics; (xvii) return on assets;
(xviii) assets, debt or net debt; (xix) total return; (xx) customer satisfaction survey
performance; (xxi) quality improvement
performance; (xxii) manufacturing productivity performance; and (xxiii) such other
objective performance criteria as determined by the Committee in its sole
discretion. The foregoing criteria may relate to the Company, one or more of its
Subsidiaries or one or more of its divisions or units, or any combination of the
foregoing, and may be applied on an absolute basis and/or be relative to one or more
peer group companies or indices, or any combination thereof, all as the Committee
shall determine. The Committee may appropriately adjust any performance evaluation
under a performance objective or objectives to reflect any of the following events
that may occur during the Performance Period: (1) asset gains or losses; (2)
litigation, claims, judgments or settlements; (3) the effect of changes in tax law,
accounting principles or other such laws or provisions affecting reported results;
(4) accruals for reorganization and restructuring programs; and (5) any
extraordinary, unusual, non-recurring or non-cash items.
	 
	 	(b)	 	Target Incentive Bonuses. No later than 90 days after each Performance
Period begins, the Committee shall establish target incentive bonuses for each
individual Participant.
	 
	 	(c)	 	Maximum Amount Payable. As soon as practicable after the Performance
Period ends but in no event later than the date that is seventy-five (75) days after
the end of the taxable year in respect of which the applicable bonuses are payable, the
Committee shall (x) determine (i) whether and to what extent any of the performance
objectives established for the relevant Performance Period under Section 4(a) have been
satisfied and (ii) for each Participant who is employed by the Company or one of its
Affiliates on the last day of the Performance Period for which the bonus is payable,
the actual bonus to which such Participant shall be entitled, taking into consideration
the extent to which the performance objectives have been met and such other factors as
the Committee may deem appropriate, and (y) cause such bonus to be paid to such
Participant. Any provision of this

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	 	 	 	Plan notwithstanding, in no event shall any
Participant receive a bonus under this Plan in respect of any fiscal year of the
Company in excess of $5 million.
	 
	 	(d)	 	Negative Discretion. Notwithstanding anything else contained in
Section 4(c) to the contrary, the Committee shall have the right, in its absolute
discretion, (i) to reduce or eliminate the amount otherwise payable to any Participant
under Section 4(c) based on individual performance or any other factors that the
Committee, in its discretion, shall deem appropriate and (ii) to establish rules or
procedures that have the effect of limiting the amount payable to each Participant to
an amount that is less than the maximum amount otherwise authorized under Section 4(c);
provided, however, that, following the occurrence of a Change in
Control, the Committee shall continue to have such right only in the event that a
Participant engages in misconduct or materially fails to fulfill his or her individual
duties, in each case, as determined by the Committee in its sole and absolute
discretion.
	 
	 	(e)	 	Death or Disability. Subject to the rights of a Participant under his
or her employment agreement, if applicable, if a Participant dies or becomes disabled
prior to the last day of the Performance Period for which the bonus is payable, such
Participant may receive an annual bonus equal to the bonus otherwise
payable to such Participant based upon actual Company performance for the applicable
Performance Period or, if determined by the Committee, based upon achieving targeted
performance objectives, multiplied by a fraction, the numerator of which is the
number of days that have elapsed during the Performance Period in which the
Participant’s death or disability occurs prior to and including the date of the
Participant’s death or disability and the denominator of which is the total number
of days in the Performance Period or such other amount as the Committee may deem
appropriate.
	 
	 	(f)	 	Other Termination of Employment. Unless otherwise determined by the
Committee and except as may otherwise be provided in Section 4(e) above, no bonuses
shall be payable under this Plan to any Participant whose employment terminates prior
to the last day of the Performance Period.
	 
	 	(g)	 	Change in Control. In the event of a Change in Control, the Committee
(as constituted immediately prior to the Change in Control) shall, in its sole
discretion, promptly determine whether and to what extent the performance criteria have
been met or shall be deemed to have been met for the year in which the Change in
Control occurs and for any completed Performance Period for which a determination has
not yet been made under Section 4(c). If the performance criteria are so determined to
have been met, then Participants to whom such criteria relate shall receive their
related bonuses as soon as practicable, but in no event more than 30 days following
such determination.

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5. Payment

	 	(a)	 	In General. Except as otherwise provided hereunder, payment of any
bonus amount determined under Section 4 shall be made to each Participant within
seventy-five (75) days after the end of the taxable year in respect of which the
applicable bonuses are payable, after the Committee certifies that one or more of the
applicable performance objectives have been attained or, in the case of any bonus
payable under the provisions of Section 4(d), after the Committee determines the amount
of any such bonus.
	 
	 	(b)	 	Form of Payment. All bonuses payable under this Plan shall be payable
in cash.

6. General Provisions

	 	(a)	 	Effectiveness of the Plan. The Plan shall become effective on the date
on which it is adopted by the Board (the “Effective Date”). Unless earlier
terminated, the Plan shall terminate on the day immediately prior to the first meeting
of the stockholders of the Company in 2010 at which directors will be elected.
	 
	 	(b)	 	Amendment and Termination. The Board or the Committee may at any time
amend, suspend, discontinue or terminate the Plan; provided, however,
that no such amendment, suspension, discontinuance or termination shall adversely
affect the rights of any Participant in respect of any calendar year which has already
commenced.
	 
	 	(c)	 	Designation of Beneficiary. Each Participant may designate a
beneficiary or beneficiaries (which beneficiary may be an entity other than a natural
Person) to receive any payments which may be made following the Participant’s death.
Such designation may be changed or canceled at any time without the consent of any such
beneficiary. Any such designation, change or cancellation must be made in a form
approved by the Committee and shall not be effective until received by the Committee.
If no beneficiary has been named, or the designated beneficiary or beneficiaries shall
have predeceased the Participant, the beneficiary shall be the Participant’s spouse or,
if no spouse survives the Participant, the Participant’s estate. If a Participant
designates more than one beneficiary, the rights of such beneficiaries shall be payable
in equal shares, unless the Participant has designated otherwise.
	 
	 	(d)	 	No Right to Continued Employment or Awards. Nothing in this Plan shall
be construed as conferring upon any Participant any right to continue in the employment
of the Company or any of its Affiliates. No Participant shall have any claim to be
granted any award, and there is no obligation for uniformity of treatment of
Participants or beneficiaries. 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 the Participants are similarly situated).

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	 	(e)	 	No Limitation on Corporate Actions. Nothing contained in the Plan
shall be construed to prevent the Company or any Affiliate from taking any corporate
action which is deemed by it to be appropriate or in its best interest, whether or not
such action would have an adverse effect on any awards made under the Plan. No
employee, beneficiary or other person shall have any claim against the Company or any
Affiliate as a result of any such action.
	 
	 	(f)	 	Nonalienation of Benefits. Except as expressly provided herein, no
Participant or beneficiary shall have the power or right to transfer, anticipate, or
otherwise encumber the Participant’s interest under the Plan. The Company’s
obligations under this Plan are not assignable or transferable except to (i) a
corporation which acquires all or substantially all of the Company’s assets or (ii) any
corporation into which the Company may be merged or consolidated. The provisions of
the Plan shall inure to the benefit of each Participant and the Participant’s
beneficiaries, heirs, executors, administrators or successors in interest.
	 
	 	(g)	 	Withholding. A Participant may be required to pay to the Company or
any Affiliate and the Company or any Affiliate shall have the right and is hereby
authorized to withhold from any payment due under this Plan or from any compensation or
other amount owing to the Participant, applicable withholding taxes with respect to any
payment under this Plan and to take such action as may be necessary in the opinion of
the Company to satisfy all obligations for the payment of such withholding taxes.
	 
	 	(h)	 	Severability. If any provision of this Plan is held unenforceable, the
remainder of the Plan shall continue in full force and effect without regard to such
unenforceable provision and shall be applied as though the unenforceable provision
were not contained in the Plan.
	 
	 	(i)	 	Governing 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.
	 
	 	(j)	 	Headings. Headings are inserted in this Plan for convenience of
reference only and are to be ignored in a construction of the provisions of the Plan.
	 
	 	(k)	 	Compliance with Section 409A. Notwithstanding anything herein to the
contrary, if any payment of money or other benefits due to a Participant hereunder
could cause the application of an accelerated or additional tax under Section 409A of
the Code, such payments or other benefits shall be deferred if deferral will make such
payment or other benefits compliant under Section 409A of the Code, or otherwise such
payment or other benefits shall be restructured, to the extent possible, in a manner,
determined by the Board, that does not cause such an accelerated or additional tax or
result in an additional cost to the Company. The Company shall consult with the
Participant in good faith regarding the implementation of the provisions of this
Section 6(l); provided that neither the Company nor any of its employees or
representatives shall have any liability to the Participant with respect thereto.

6EX-10.21

 

Exhibit 10.21

AMENDMENT NO. 1 AND CONSENT TO THE CREDIT AGREEMENT

AND AMENDMENT NO. 1 TO THE GUARANTEE AND

COLLATERAL AGREEMENT

Dated as of August ___, 2006

          AMENDMENT NO. 1 AND CONSENT TO THE CREDIT AGREEMENT and AMENDMENT NO. 1 TO THE GUARANTEE AND
COLLATERAL AGREEMENT (collectively, the “Amendment”) among FR X Chart Holdings LLC, a
Delaware limited liability company (“Holdings”), Chart Industries, Inc., a Delaware
corporation (the “Borrower”), as successor in interest to CI Acquisition, Inc., and each of
the Lenders (as defined in the Credit Agreement referred to below) listed on the signature pages
hereto.

          PRELIMINARY STATEMENTS:

          1. Holdings and the Borrower have entered into that certain Credit Agreement, dated as of
October 17, 2005 (the “Credit Agreement”) with the Lenders party thereto and Citicorp North
America, Inc. (“CNAI”), as Administrative Agent (in such capacity, the “Administrative
Agent”) and as collateral agent for the Lenders. Capitalized terms not otherwise defined in
this Amendment have the same meanings as specified therefor in the Credit Agreement.

          2. Pursuant to the Credit Agreement, the Loan Parties have entered into a Guarantee and
Collateral Agreement, dated October 17, 2005, with CNAI, as Collateral Agent.

          3. The Borrower intends to consummate an initial public offering (the “Initial Public
Offering”) of its Equity Interests and, in connection therewith, Holdings, the Borrower and the
Lenders have agreed, on the terms and conditions stated below, to amend and modify the Loan
Documents as set forth herein.

          4. The Borrower intends to increase the Revolving Credit Commitments under the Credit
Agreement by U.S.$55.0 million in accordance with Section 2.20 of the Credit Agreement as in effect
immediately prior to the Amendment No. 1 Effective Date (as defined herein).

          SECTION 1. Amendments to the Credit Agreement. The Credit Agreement is, effective as
of the date on which the applicable conditions precedent set forth in Section 4 have been
satisfied, hereby amended as follows:

          (a) Section 1.01 is amended as follows:

          (i) The definition of “Borrowing Minimum” is amended by deleting each reference
to the figure “U.S.$2.0 million” and inserting the figure “U.S.$1.0 million” in replacement
of each reference thereof.

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

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          (ii) The definition of “Commitments” is amended in full to read as
follows:

     “ ‘Commitments’ shall mean (a) with respect to any Lender, such
Lender’s Revolving Facility Commitment and Term B Loan Commitment, (b) with respect
to any Swingline Lender, its Swingline Commitment and (c) with respect to any
Issuing Bank, its Letter of Credit Commitment, as applicable.”

          (iii) The definition of “Consolidated Net Income” is amended by adding “, any
restricted stock plan” immediately after “stock options” in clause (xi) contained therein.

          (iv) The definition of “Net Proceeds” is amended by (i) deleting “or” in the
eighth line contained in clause (a) therein and inserting “,” in replacement thereof and
(ii) inserting “or (n)” immediately after “(l)” in the ninth line contained in clause (a)
therein.

          (v) The definition of “Permitted Business Acquisition Step-Up Period” is
amended in full to read as follows:

     “Permitted Business Acquisition Step-Up Period” shall mean (a) any
period commencing on the first day on which the Leverage Ratio on a Pro Forma Basis
is less than 4.25:1.00 (but greater than or equal to 4.00:1.00) and ending
on the first day thereafter on which the Leverage Ratio on a Pro Forma Basis is
either (i) greater than or equal to 4.25:1.00 or (ii) less than 4.00:1.00 or (b) any
period commencing on the first day on which the Leverage Ratio on a Pro Forma Basis
is less than 4.00:1.00 and ending on the first day thereafter on which the Leverage
Ratio on a Pro Forma Basis is greater than or equal to 4.00:1.00.”.

          (vi) The definition of “Revolving Facility Commitment” is amended by deleting
the last two sentences thereof and replacing them with the following:

     “The Dollar amount of each Revolving Facility Lender’s Revolving Facility
Commitment as of the Amendment No. 1 Effective Date is set forth on Schedule
2.01, or in the Assignment and Acceptance pursuant to which such Revolving
Facility Lender shall have assumed its Revolving Facility Commitment, as applicable.
The aggregate amount of the Revolving Facility Commitments on the Amendment No. 1
Effective Date is U.S.$115.0 million.”.

          (vii) The following new definitions are inserted in the appropriate alphabetical order:

     “Amendment No. 1” shall mean Amendment No. 1 and Consent to this
Agreement, dated as of June ___, 2006, among the Borrower and the Lenders party
thereto.

     “Amendment No. 1 Effective Date” shall have the meaning specified
in Section 4(a) of Amendment No. 1.

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

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     “Initial Public Offering” shall mean the first underwritten public
offering by the Borrower of its Equity Interests pursuant to a registration
statement filed with the Securities and Exchange Commission in accordance with the
Securities Act.

     “Letter of Credit Commitment” shall mean, with respect to each Issuing
Bank, the commitment of such Issuing Bank to issue Letters of Credit pursuant to
Section 2.05, expressed as a Dollar amount, as such commitment may be (a) ratably
reduced from time to time upon any reduction in the Revolving Facility Commitments
pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to
assignments by or to such Issuing Bank under Section 9.04. The Dollar amount of
each Issuing Banks’ Letter of Credit Commitment as of the Amendment No. 1 Effective
Date is set forth on Schedule 2.01, or in the Assignment and Acceptance
pursuant to which such Issuing Bank shall have assumed its Letter of Credit
Commitment, as applicable.

     “Regulation S-X” shall mean Regulation S-X promulgated under the
Securities Act.

          (b) Section 1.02 is amended by (i) deleting “.” at the end thereof and adding a new proviso at
the end thereof to read as follows:

     “; provided further that, notwithstanding the foregoing, upon
and following the acquisition of any business or new Subsidiary in accordance with
this Agreement, in each case that would not constitute a “significant subsidiary”
for purposes of Regulation S-X, financial items and information with respect to such
newly-acquired business or Subsidiary that are required to be included in
determining any financial calculations and other financial ratios contained herein
for any period prior to such acquisition shall not be required to be in accordance
with GAAP so long as the Borrower is able to reasonably estimate pro forma
adjustments in respect of such acquisition for such prior periods, and in each case
such estimates are made in good faith and are factually supportable.”

          (c) Article I is amended by adding new Section 1.04 at the end thereof to read as follows:

     “SECTION 1.04. Conforming Amendments and Modifications. Technical and
conforming amendments and modifications to the Loan Documents may be made with the
consent of the Borrower and the Administrative Agent as deemed necessary to
integrate and effectuate the release of Holdings from its obligations under the Loan
Documents.”.

          (d) Section 2.05(b) is amended by deleting the last sentence thereof in its entirety and
replacing it with the following in place thereof:

     “A Letter of Credit shall be issued, amended, renewed or extended only if (and
upon issuance, amendment, renewal or extension of each Letter of Credit the Borrower
shall be deemed to represent and warrant that), after giving effect to

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

4

such issuance, amendment, renewal or extension, (i) the Revolving Facility
Credit Exposure shall not exceed the total Revolving Facility Commitments and (ii)
the aggregate available amount of all Letters of Credit issued by any Issuing Bank
shall not exceed such Issuing Bank’s Letter of Credit Commitment.”.

          (e) Section 2.05(c)(ii) is amended by replacing the figure “$35 million” contained in the last
line therein with the figure “$55.0 million”.

          (f) Section 2.20(a) is amended (i) by deleting the introductory phrase “At any time following
the completion of the syndication of the Facilities (as reasonably determined by the Administrative
Agent)” and replacing it with “At any time following the Amendment No. 1 Effective Date”; (ii)
deleting the figure “U.S.$50.0 million” and replacing it with the figure “U.S.$100.0 million”; and
(iii) adding a new sentence after “U.S.$10.0 million.” in the eighth line therein to read as
follows:

     “Any increase in the Revolving Facility Commitments effectuated pursuant to
this subsection (a) shall be accompanied by an equivalent increase in the Letter of
Credit Commitment provided that each Issuing Bank consents to such
increase.”.

          (g) Section 6.01 is amended by adding new subsection (t), as set forth below, and renumbering
existing subsections (t) and (u) as new subsections (u) and (v), respectively:

     “(t) Indebtedness of the Borrower and its Subsidiaries in respect of factoring
of receivables from a foreign customer held by the Borrower and its Subsidiaries in
an aggregate principal amount not to exceed U.S.$15.0 million at any time.”.

          (h) Section 6.02 is amended by adding new subsection (aa) to read as follows:

     “(aa) Liens to secure the Indebtedness of the Borrower and its Subsidiaries
that is permitted to be incurred under Section 6.01(t) solely on the receivables
held by the Borrower and its Subsidiaries and that are subject to the related
factoring programs.”.

          (i) Section 6.04 is amended by adding a new subsection (r) to the end of Section 6.04 to read
as follows:

     “(r) Investments consisting of the acquisition of Cooler Service Company, Inc.
in an aggregate principal amount not to exceed U.S.$17 million.”.

          (j) Section 6.04(j) is amended by replacing the figure “U.S.$100.0 million” with the figure
“U.S.$200.0 million”.

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

5

          (k) Section 6.05 is amended by amending the introductory paragraph thereof in full to
read as follows:

          “Merge into or consolidate with any other Person, or permit any other Person to merge
into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one
transaction or in a series of transactions) all or any part of its assets (whether now owned
or hereafter acquired), or issue, sell, transfer or otherwise dispose of any Equity
Interests of any Subsidiary or preferred equity interests of the Borrower (except to the
extent that no cash interest or other cash payments are required in respect thereof), or
purchase, lease or otherwise acquire (in one transaction or a series of transactions) all or
any substantial part of the assets of any other Person, except that this Section shall not
prohibit:”.

          (l) Section 6.05 is further amended by adding new section 6.05(n) to read as follows:

          “(n) factoring of receivables held by the Borrower and its Subsidiaries as permitted
under Section 6.01(t).”.

          (m) Section 6.05 is further amended by deleting the last paragraph thereof and replacing the
following paragraph in place thereof:

          “Notwithstanding anything to the contrary contained in Section 6.05 above, (i) no sale,
transfer or other disposition of assets shall be permitted by this Section 6.05 (other than
sales, transfers, leases or other dispositions to Loan Parties pursuant to paragraph (c)
hereof and purchases, sales or transfers pursuant to paragraph (f) hereof) unless such
disposition is for fair market value, (ii) no sale, transfer or other disposition of assets
shall be permitted by paragraph (a), (d), (f) or (k) of this Section 6.05 unless such
disposition is for at least 75% cash consideration and (v) no sale, transfer or other
disposition of assets in excess of U.S.$5.0 million shall be permitted by paragraph (h) of
this Section 6.05 unless such disposition is for at least 75% cash consideration;
provided that for purposes of clauses (i) and (ii), the amount of any secured
Indebtedness or other Indebtedness of a Subsidiary that is not a Loan Party (as shown on the
Borrower’s or such Subsidiary’s most recent balance sheet or in the notes thereto) of the
Borrower or any Subsidiary of the Borrower that is assumed by the transferee of any such
assets shall be deemed cash.”.

          (n) Section 6.06(c) is amended by adding “, directors’” immediately after “shareholders’” in
the sixth line therein.

          (o) Section 6.06(f) is amended by (i) deleting “;” at the end thereof and (ii) adding the
following at the end thereof:

          “, such amount to be increased following the Initial Public Offering to U.S.$15.0
million.”.

          (p) Section 6.06 is amended by adding the following new paragraphs (i), (j) and (k) at the end
thereof:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

6

          “(i) from and after the Initial Public Offering, the Borrower may make dividends
and distributions, in each case in accordance with the provision thereof, deemed to occur
upon exercise of stock options or warrants if such Equity Interests represent a portion of
the exercise price of such options or warrants;

          (j) from and after the Initial Public Offering, and so long as no Default or Event of
Default has occurred and is continuing, the Borrower may declare, make or pay distributions,
dividends and repurchases in respect of its Equity Interests not otherwise permitted under
this Section 6.06 in an aggregate amount for any fiscal year of the Borrower not to exceed
U.S.$20.0 million; and

          (k) the Borrower may declare and pay dividends in an amount equal to the sum of the net
cash proceeds of the Initial Public Offering plus cash payments received by the
Borrower on and after May 1, 2006 upon the exercise by Holdings of its warrant rights
less the aggregate amount of such net cash proceeds applied to (i) redeem the Senior
Subordinated Notes pursuant to, and as permitted by, Section 6.09(b) or (ii) prepay any Term
B Borrowings pursuant to Section 2.11(a).”.

          (q) Section 6.07(b)(i) is amended by adding “, including restricted stock plans, stock grants,
directed share program and other stock plans customarily maintained or funded by public companies,”
immediately after “stock ownership plans” contained in the third line therein.

          (r) Section 6.09(b)(i) is amended by amending subsection (C) thereof in its entirety to read
as follows:

          “(C) with respect to the Senior Subordinated Notes, (x) payments made solely with the
net cash proceeds of the Initial Public Offering for the purpose of redeeming Senior
Subordinated Notes in accordance with the Senior Subordinated Notes Indenture, in an
aggregate amount not to exceed U.S.$60.0 million and (y) so long as no Default or Event of
Default has occurred and is continuing or would result therefrom on and after the Amendment
No. 1 Effective Date, additional purchases and redemptions of Senior Subordinated Notes in
an amount not to exceed U.S.$60.0 million less the aggregate amount of any purchases
and redemptions made pursuant to clause (x) above; provided that, after giving
effect to any such additional redemptions pursuant to this clause (y), the Leverage Ratio
shall be less than 3.00:1.00 calculated on a pro forma basis as of the last day of the most
recently ended fiscal quarter in respect of which financial statements have been delivered
pursuant to Section 5.04; or”.

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

7

          (s)
Section 6.10(a) is amended by deleting the chart set forth therein and replacing it in its
entirety with the following:

	 	 	 
	Year	 	Amount
	2006
	 	$32,500,000
	2007
	 	$25,000,000
	2008
	 	$25,000,000
	2009
	 	$25,000,000
	2010
	 	$25,000,000

          (t) Article VII is amended by a adding a new section at the end thereof to read as follows:

          “SECTION 7.04. Holdings Covenant Release. Upon the occurrence of the
Amendment No. 1 Effective Date:

          (a) all of the obligations of Holdings under each of the Loan Documents shall
automatically terminate and, thereafter, any failure on the part of Holdings to comply with
those obligations will not constitute a Default or Event of Default;

          (b) except as specifically amended elsewhere in Amendment No. 1 or as set forth in
clause (c) or (d) of this Section 7.04, each reference in Article I to “Holdings” shall be
deemed to be a reference to “the Borrower” or “Subsidiary Loan Party”, as applicable;

          (c) each reference to “Holdings” in the definition of “Capital Expenditures”,
“Holdings” and “Holdings LLC Agreement” shall remain unchanged;

          (d) each reference to “Holdings” in the definition of “Collateral Agreement”,
“Collateral and Guarantee Requirement”, “Management Group” and “Multiemployer Plan” shall be
deleted (with any conforming changes being deemed made as appropriate);

          (e) (i) the obligation of Holdings to make representations and warranties under Article
III and the Collateral Agreement shall automatically terminate, (ii) each reference to
“Holdings” in Article III (other than such reference in Section 3.05(b)) shall be deleted
(with any conforming changes being deemed made as appropriate); and

          (f) each reference to “Holdings” in Article V shall be deleted (with any conforming
changes being deemed made as appropriate).”

          (u) Schedule 2.01 to the Credit Agreement is hereby replaced with Annex 1 hereto.

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

8

          SECTION 2. Amendments to the Guarantee and Collateral Agreement. The Guarantee
and Collateral Agreement is, effective as of the date on which the conditions precedent set forth
in Section 4 have been satisfied, hereby amended as follows:

          (a) The definition of “Guarantors” is amended in full to read as follows:

     “ “Guarantors” shall mean (a) prior to the Amendment No. 1 Effective
Date, Holdings, the Borrower and each Subsidiary Loan Party and (b) upon and after
the Amendment No. 1 Effective Date, the Borrower and each Subsidiary Loan Party.”

          (b) The Guarantee and Collateral Agreement is further amended by (i) deleting the second
reference to Holdings in Section 3.01 and (ii) by replacing each reference to “Holdings” in
Sections 3.03(b), 7.14(b) and the first reference to “Holdings” in Section 3.01 with a reference to
“the Borrower” (in each case, with any conforming changes being deemed made as appropriate).

          SECTION 3. Consent. Effective as of the date hereof and subject to the satisfaction
of the conditions precedent set forth in Section 4(a), each Lender party hereto hereby consents to
the automatic release of Holdings from its obligations under the Guarantee and Collateral
Agreement. Upon the occurrence of the Amendment No. 1 Effective Date, all security interests and
other liens granted by Holdings in favor of the Secured Parties in the Collateral of Holdings
(including, without limitation, the pledge of the shares of the Borrower) shall be released, and
the Collateral Agent shall execute and deliver to Holdings, at Holdings’ expense, all documents
that Holdings shall reasonably request to evidence such release and shall assist Holdings in making
any filing in connection therewith.

          SECTION 4. Conditions of Effectiveness. (a) This Amendment shall become effective as
of the date when, and only when (the “Amendment No. 1 Effective Date”), each of the following
conditions precedent has been satisfied or waived:

          (b) The Administrative Agent shall have received counterparts of this Amendment executed by
Holdings and the Borrower, each of the Required Lenders and each Lender committing to a new or
additional Revolving Facility Commitment or, as to any of such Lenders, advice satisfactory to the
Administrative Agent that such Lender has executed this Amendment, and the Administrative Agent
shall have additionally received certified copies of all documents evidencing any necessary
corporate action and governmental approvals, if any, with respect to this Amendment, the consent
attached hereto (the “Consent”) and the matters contemplated hereby and thereby.

          (c) Consummation of Initial Public Offering. The Initial Public Offering shall have
been consummated.

          (d) Certificate. The Administrative Agent shall have received a certificate of an
officer of the Borrower certifying that (x) the representations and warranties set forth in
Article III of the Credit Agreement shall be true and correct in all material respects on and as
of the Amendment No. 1 Effective Date with the same effect as though made on and as of such
date, except to the extent such representations and warranties expressly relate to an earlier date

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

9

(in which case such representations and warranties shall be true and correct in all material
respects as of such earlier date) and (y) on the Amendment No. 1 Effective Date, no Event of
Default or Default shall have occurred and be continuing.

          (e) Fees and Expenses. All reasonable and documented accrued fees and expenses of
the Administrative Agent (including the reasonable fees and expenses of Shearman & Sterling LLP,
counsel for the Administrative Agent, for which invoices shall have been provided to the Borrower
at least two Business Days prior to the Amendment No. 1 Effective Date) shall have been paid.

          SECTION 5. Representations and Warranties of Holdings and the Borrowers. Each of
Holdings and the Borrowers represents and warrants as follows:

          (a) The execution, delivery and performance by Holdings and the Borrower of this Amendment and
the performance by Holdings and the Borrower of the Credit Agreement, as amended hereby, have been
duly authorized by all necessary limited liability company or corporate action.

          (b) This Amendment has been duly executed and delivered by Holdings and the Borrower. This
Amendment and the Credit Agreement, as amended hereby, constitute the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance with their respective
terms, subject to the effect of any applicable bankruptcy, insolvency, reorganization, moratorium
or similar law affecting creditors’ rights generally, and subject to the effects of general
principles of equity (regardless whether considered in a proceeding in equity or at law and implied
covenants of good faith and fair dealing).

          SECTION 6. Reference to and Effect on the Credit Agreement and the other Loan
Documents. (a) On and after the effectiveness of this Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the
Credit Agreement, and each reference in the Notes and each of the other Loan Documents to “the
Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement, as amended by this Amendment.

          (b) The Credit Agreement, the Notes and each of the other Loan Documents, as specifically
amended by this Amendment, are and shall continue to be in full force and effect and are hereby in
all respects ratified and confirmed. Without limiting the generality of the foregoing, the
Collateral Documents and all of the Collateral described thereof do and shall continue to secure
the payment of all Obligations of the Loan Parties under the Loan Documents.

          (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of any Lender or Agent under any
of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

          SECTION 7. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

10

constitute but one and the same agreement. Delivery of an executed counterpart of a signature
page to this Amendment by telecopier shall be effective as delivery of a manually executed
counterpart of this Amendment.

          SECTION 8. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

[The remainder of this page is intentionally left blank]

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	 	FR X CHART HOLDINGS LLC,
	 	 	as Holdings
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	CHART INDUSTRIES, INC., as the Borrower
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

	 	 	 	 	 
	 	 	CITIGROUP GLOBAL MARKETS INC.,
	 	 	as Joint Lead Arranger and Joint Book Manager
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:
	 
	 	 	 	 
	 	 	CITICORP NORTH AMERICA, INC.,
	 	 	          as Administrative Agent, as Lender and L/C
	 	 	          Issuing Bank
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

	 	 	 	 	 
	 	 	MORGAN STANLEY SENIOR FUNDING, INC.,
	 	 	as Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

	 	 	 	 	 
	 	 	NATEXIS BANQUES POPULAIRES,
	 	 	as Joint Lead Arranger and Joint Book Manager
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

	 	 	 	 	 
	 	 	SOVEREIGN BANK, as Lender
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

CONSENT

Dated as of June ____, 2006

          Reference is made to (a) Amendment No. 1 and Consent to the Credit Agreement and Amendment No.
1 to the Guarantee and Collateral Agreement, dated as of June ___, 2006 (collectively, the
“Amendment”), (b) the Credit Agreement dated as of October 17, 2005 (the “Credit
Agreement”) among FR X Chart Holdings LLC, a Delaware limited liability company
(“Holdings”), Chart Industries, Inc., a Delaware corporation (the “Borrower”), as
successor in interest to CI Acquisition, Inc., the Lenders party thereto, Citicorp North America,
Inc. (“CNAI”), as Administrative Agent (in such capacity, the “Administrative
Agent”) and as collateral agent (the “Collateral Agent”) for the Lenders, Morgan
Stanley Senior Funding, Inc. (“MS”), as Syndication Agent, Citigroup Global Markets Inc.,
and MS, as Joint Lead Arrangers and Joint Book Managers, and Natexis Banques Populaires and
Sovereign Bank, as Co-Documentation Agents and (c) the other Loan Documents referred to thereof.
Capitalized terms not otherwise defined in this Consent have the same meanings as specified in the
Credit Agreement.

          The undersigned, as parties to one or more of the Loan Documents, each hereby consents to the
execution, delivery and the performance of the Amendment and agrees that each of the Loan Documents
to which it is a party is, and shall continue to be, in full force and effect and is hereby in all
respects ratified and confirmed as of the Amendment No. 1 Effective Date (as defined in the
Amendment), except that, on and after the Amendment No. 1 Effective Date, each reference to “the
Credit Agreement”, “thereunder”, “thereof”, “thereof” or words of like import referring to the
Credit Agreement shall mean and be a reference to the Credit Agreement, as amended and otherwise
modified by the Amendment.

          This Consent shall be governed by, and construed in accordance with, the laws of the State of
New York.

[Remainder of this page intentionally left blank]

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

	 	 	 	 	 
	 	 	CHART INDUSTRIES, INC.
	 	 	as Borrower and a Guarantor (in each capacity)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name:
	 	 	Title:

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

	 	 	 	 	 
	 	 	CHART INC.
	 	 	CAIRE INC.
	 	 	CHART ENERGY & CHEMICALS, INC.
	 	 	CHART COOLER SERVICE COMPANY, INC.
	 	 	(f/k/a COOLTEL, INC.)
	 	 	CHART INTERNATIONAL HOLDINGS, INC.
	 	 	CHART ASIA, INC.
	 	 	CHART INTERNATIONAL, INC.,
	 	 	each as a Guarantor
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 	 	Name: Michael F. Biehl
	 	 	Title: Executive Vice President, Chief Financial
Officer and Treasurer

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

ANNEX I

Schedule 2.01 to the Credit Agreement

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

SCHEDULE 2.01

REVOLVING FACILITY COMMITMENTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Existing	 	 	 	 	 	 	Total	 	 	 	 
	 	 	Revolving	 	 	New Revolving	 	 	Revolving	 	 	 	 
	 	 	Facility	 	 	Facility	 	 	Facility	 	 	L/C	 
	 	 	Commitment	 	 	Commitment	 	 	Commitment	 	 	Commitment	 
	Name of Lender	 	($)	 	 	($)	 	 	($)	 	 	($)	 
	Natexis Banques
Populaires
	 	 	15,000,000	 	 	 	10,000,000	 	 	 	25,000,000	 	 	 	 	 
	Citicorp North
America, Inc.
	 	 	15,000,000	 	 	 	5,000,000	 	 	 	20,000,000	 	 	 	 	 
	JPMorgan Chase
Bank, N.A.
	 	 	 	 	 	 	20,000,000	 	 	 	20,000,000	 	 	 	115,000,000	 
	Sovereign Bank
	 	 	15,000,000	 	 	 	 	 	 	 	15,000,000	 	 	 	 	 
	Morgan Stanley
Senior Funding,
Inc.
	 	 	1,000,000	 	 	 	10,000,000	 	 	 	11,000,000	 	 	 	 	 
	Black Diamond CLO
2006-1 (Cayman)
Ltd.
	 	 	10,000,000	 	 	 	 	 	 	 	10,000,000	 	 	 	 	 
	Lehman Brothers
Commercial Bank
	 	 	 	 	 	 	5,000,000	 	 	 	5,000,000	 	 	 	 	 
	UBS Loan Finance LLC
	 	 	 	 	 	 	5,000,000	 	 	 	5,000,000	 	 	 	 	 
	Centurion CDO VII,
Ltd.
	 	 	2,000,000	 	 	 	 	 	 	 	2,000,000	 	 	 	 	 
	Centurion CDO 8,
Limited
	 	 	1,000,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 
	Sequils-Centurion
V. Ltd.
	 	 	1,000,000	 	 	 	 	 	 	 	1,000,000	 	 	 	 	 
	TOTAL COMMITMENTS
	 	 	60,000,000	 	 	 	55,000,000	 	 	 	115,000,000	 	 	 	115,000,000	 

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

 

 

SCHEDULE 2.01

TERM B LOAN FACILITY AND SWING LINE COMMITMENTS

Refer to Register for Lenders and commitments.

Chart Industries, Inc.

Amendment No. 1 to the Credit Agreement

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