Document:

Registration Rights Agreement

EXHIBIT 4.1

 

REGISTRATION RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of December 1, 2004, is made and entered into by and among FLAG FINANCIAL CORPORATION, a Georgia corporation (the “Company”), RNM ENTERPRISES, INC., d/b/a PAYROLL SOLUTIONS, a Georgia corporation (“RNM”), and JDDWNM, INC., a Georgia corporation (“JDDWNM” and together with RNM, the “Stockholders”). The Company and the Stockholders are sometimes herein individually referred to as a “Party” and, collectively, as the “Parties.” 

 

W I T N E S S E T H: 

 

WHEREAS, in connection with the sale of all or substantially all of the assets of the Stockholders (the “Transaction”), pursuant to the terms and conditions of that certain Asset Purchase Agreement, dated as of even date herewith (the “Asset Purchase Agreement”), by and among the Company and the Stockholders, the Company will issue shares of common stock, par value $1.00 per share (the “Common Stock”) to the Stockholders;

 

    WHEREAS, as a condition to the consummation of the Transaction, the Company is obligated to provide the Stockholders with certain registration rights with respect to the Common Stock; and 

WHEREAS, the Company and the Stockholders desire to enter into this Agreement pursuant to which the Company shall register with the SEC the offer and sale by the Stockholders and/or their Affiliates (or their respective successors and assigns) of the shares of Common Stock received by the Stockholders in connection with the Transaction, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, for good and valuable consideration, the premises and the mutual covenants herein contained, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

 

   Section 1.     Definitions.

As used in this Agreement, the capitalized terms shall have the meanings set forth below.

(a)  “Affiliate” shall mean any Person controlling or controlled by or under direct or indirect common control with a Party; provided, that in no event shall the Company be treated as an Affiliate of any Party, nor shall any Person directly or indirectly controlled by the Company (including, without limitation, its officers, directors and employees) as a result of such Party’s relationship with the Company be treated as an Affiliate of a Party. For the purposes of this definition, “control” shall mean the power to direct the management and policies of a Person, directly or indirectly, through the ownership of securities, by contract or otherwise, and the terms “controlling” and “controlled” have meanings correlative to the foregoing.

(b)  “Agent” shall mean any Person authorized to act and who acts on behalf of a Party or any Affiliate of a Party with respect to the transactions contemplated by this Agreement.

(c)  “Agreement” shall have the meaning set forth in the introductory paragraph to this Agreement.

(d)  “Asset Purchase Agreement” shall have the meaning set forth in the first recital of this Agreement.

(e)  “Business Day” shall mean any day on which commercial banks are not authorized or required by law to close in the State of Georgia.

(f)  “Common Stock” shall have the meaning set forth in the first recital of this Agreement.

(g)  “Company” shall have the meaning set forth in the introductory paragraph to this Agreement.

(h)  “Effectiveness Period” shall have the meaning set forth in Section 3 of this Agreement.

(i)  “Indemnified Party” shall have the meaning set forth in Section 6(c) of this Agreement.

(j)  “Indemnifying Party” shall have the meaning set forth in Section 6(c) of this Agreement.

(k)  “JDDWNM” shall have the meaning set forth in the introductory paragraph to this Agreement.

(l)  “Party” shall have the meaning set forth in the introductory paragraph to this Agreement.

(m)  “Person” shall mean an individual, partnership, corporation, trust or unincorporated organization, or a government or agency or political subdivision thereof.

(n)  “Prospectus” shall mean the prospectus included in the Registration Statement, as amended or supplemented by any prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by the Registration Statement and all other amendments and supplements to the Prospectus, including post-effective amendments and all material incorporated by reference in such Prospectus.

(o)  “Required Registration Filing Date” shall mean December 10, 2004.  

(p)  “Registration Statement” shall have the meaning set forth in Section 3 of this Agreement.

(q)  “Registrable Securities” shall mean shares of Common Stock issued by, or issuable to, the Company to a Stockholder pursuant to the Asset Purchase Agreement.

(r)  “Restricted Securities” shall mean the Registrable Securities upon original issuance thereof, subject to the provisions of Section 2(a) of this Agreement. 

(s)  “RNM” shall have the meaning set forth in the introductory paragraph to this Agreement.

(t)  “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

(u)  “SEC” shall mean the Securities and Exchange Commission.

(v)  “Transaction” shall have the meaning set forth in the first recital of this Agreement.

(w)  “Withdrawn Registration Statement” shall have the meaning set forth in Section 5(a) of this Agreement.

 

Section 2.     Securities Subject to this Agreement.

(a)      Registrable Securities. The securities entitled to the benefits of Sections 3 and 4 of this Agreement are the Registrable Securities; however, with respect to any particular Registrable Security, only so long as such security continues to be a Restricted Security. A Registrable Security ceases to be a Restricted Security when (i) it has been effectively registered under the Securities Act and disposed of in accordance with the Registration Statement, (ii) it has been distributed pursuant to Rule 144 or Rule 145 (or any similar provisions then in force) under the Securities Act, (iii) it has otherwise been transferred in a private transaction in which the transferor’s rights under this Agreement are not assigned, or (iv) it ceases to be outstanding.

(b)      Holders of Registrable Securities. Any reference herein to a “Holder” or “Holders” of Registrable Securities shall mean any Stockholder or any Affiliate of such Stockholder, or any of their respective successors and assigns. 

 

   Section 3.     Required Registration. 

The Company shall prepare and file with the SEC, as soon as practicable following the date hereof, but no later than the Required Registration Filing Date, a Registration Statement on Form S-3 pursuant to Rule 415 of the Securities Act (the “Registration Statement”) with respect to all of the Registrable Securities, and use its commercially reasonable efforts to cause such Registration Statement to become effective as soon as practicable thereafter. After the Registration Statement filed pursuant to this Section 3 has become effective, the Company shall use its commercially reasonable efforts to keep such Registration Statement effective for a period equal to one year from the initial date that the SEC declares such Registration Statement effective (subject to any extension pursuant to Sections 5(b) and 5(c) hereof, or, if such Registration Statement is not effective during any period within such one-year period, such one-year period shall be extended by the number of days that the Registration Statement is not effective), or such shorter period which shall terminate when all of the Registrable Securities have been sold pursuant to such Registration Statement or Rule 144 (the “Effectiveness Period”).

 

   Section 4.     Registration Procedures.

With respect to the registration of the Registrable Securities pursuant to this Agreement, the Company will as promptly as reasonably practicable:

(a)     before filing the Registration Statement, the Prospectus or any amendments or supplements thereto (excluding documents to be incorporated by reference therein filed after the effectiveness of the Registration Statement), the Company will, no later than five (5) Business Days prior to filing, furnish to the Holders copies of all such documents in substantially the form proposed to be filed (including documents incorporated therein by reference), to enable the Holders to review such documents prior to the filing thereof, and the Company shall make such reasonable changes thereto (including changes to documents incorporated by reference) as may be reasonably requested by the Holders;

(b)     prepare and file with the SEC such amendments and post-effective amendments to the Registration Statement as may be necessary to keep the Registration Statement continuously effective for the Effectiveness Period; cause the Prospectus to be supplemented by any required Prospectus supplement, and as so supplemented to be filed with the SEC pursuant to Rule 424 under the Securities Act; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such Registration Statement during the applicable period in accordance with this paragraph (b) and the intended methods of disposition by the Holders thereof set forth in such Registration Statement or supplement to the Prospectus;

(c)     notify the Holders promptly, and confirm such notice in writing, (1) when the Prospectus or any Prospectus supplement or post-effective amendment has been filed, and, with respect to the Registration Statement or any post-effective amendment, when the same has become effective, (2) of any request by the SEC for amendments or supplements to the Registration Statement or the Prospectus or for additional information, (3) of the issuance by the SEC of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose, (4) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose, and (5) of the happening of any event which makes any statement made in the Registration Statement, the Prospectus or any document incorporated therein by reference untrue or which requires the making of any changes in the Registration Statement, the Prospectus or any document incorporated therein by reference in order to make the statements therein not misleading, so that, in the case of the Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, not misleading, and that in the case of the Prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading;

(d)     make every reasonable effort to obtain the withdrawal of any order suspending the effectiveness of the Registration Statement at the earliest possible time;

(e)     as promptly as practicable after the filing with the SEC of any document which is incorporated by reference into the Registration Statement or the Prospectus (after initial filing of the Registration Statement), provide copies of such document to counsel to the Holders;

(f)     furnish to the Holders, without charge, at least one signed copy of the Registration Statement and any post-effective amendment thereto, including financial statements and schedules, all documents incorporated therein by reference and all exhibits (including those incorporated by reference) and a reasonable number of conformed copies of all such documents;

(g)     deliver to the Holders as many copies of the Prospectus (including each preliminary prospectus) and any amendment or supplement thereto as such Persons may reasonably request; the Company hereby consents to the use of the Prospectus or any amendment or supplement thereto by the Holders in connection with the offering and sale of the Registrable Securities covered by the Prospectus or any amendment or supplement thereto;

(h)     prior to the date on which the Registration Statement is declared effective, use its reasonable efforts to register or qualify such Registrable Securities for offer and sale under the securities or blue sky laws of such jurisdictions as any Stockholder reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the disposition in such jurisdictions of the Registrable Securities covered by the Registration Statement; provided, that the Company will not be required to qualify generally to do business in any jurisdiction where it is not then so qualified or to take any action which would subject it to general service of process in any such jurisdiction where it is not then so subject;

(i)     cooperate with the Holders to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends; and enable such Registrable Securities to be in such denominations and registered in such names as the Holders may request at least two (2) Business Days prior to any such sale of Registrable Securities;

(j)     upon the occurrence of any event contemplated by paragraph (c)(5) above, prepare a supplement or post-effective amendment to the Registration Statement or the Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter delivered to the purchasers of the Registrable Securities, the Prospectus will not contain an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading; and

(k)     provide a transfer agent and registrar for all Registrable Securities.

The Company may require the Holders to furnish to the Company such information and documents regarding the distribution of the Registrable Securities by the Holders as the Company may from time to time reasonably request in writing, and the Company’s obligations with respect to registration are subject to such information being provided on a timely basis.

Each of the Holders hereby agrees by acquisition of the Registrable Securities that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 4(c)(5) hereof, such Holder will forthwith discontinue disposition of Registrable Securities until such Holder’s receipt of the copies of the supplemented or amended Prospectus contemplated by Section 4(j) hereof, or until it is advised in writing by the Company that the use of the Prospectus may be resumed, and has received copies of any additional or supplemental filings which are incorporated by reference in the Prospectus, and, if so directed by the Company, each Holder will deliver to the Company (at the Company’s expense) all copies, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Securities current at the time of receipt of such notice. 

   Section 5.     Effect of Withdrawal and Suspension.

(a)  Withdrawal. If the Company shall withdraw the Registration Statement prior to the expiration of the Effectiveness Period (a “Withdrawn Registration Statement”), the Holders that continue to hold the Registrable Securities, which shares were covered by the Withdrawn Registration Statement, shall be entitled to an additional Registration Statement, and the Company shall use its commercially reasonable efforts to (i) prepare and file with the SEC, as soon as practicable following the date of withdrawal of the Withdrawn Registration Statement, an additional Registration Statement on Form S-3, and (ii) keep such additional Registration Statement effective for the remainder of the Effectiveness Period of the Withdrawn Registration Statement. The Company shall reimburse the Holders for all reasonable legal and other advisory fees incurred by the Stockholders in connection with the Withdrawn Registration Statement.

 

(b)  Suspension. In the event of any suspension of a Registration Statement by the SEC, the period that the Company shall be required to keep such Registration Statement effective shall be automatically extended by the period of the suspension.

 

(c)     Suspended Sales. If the Company shall give any notice to suspend the disposition of Registrable Securities pursuant to Section 4(c)(5) hereof, the Company shall extend the period of time during which the Company is required to maintain the effectiveness of the Registration Statement pursuant to Section 3 of this Agreement by the number of days during the period from and including the date of the giving of such notice to and including the date the Holders either are advised by the Company that the use of the Prospectus may be resumed or receive copies of the supplemented or amended Prospectus contemplated by Section 4(j).

 

   Section 6.     Indemnification.

(a)     Indemnification by Company. The Company will indemnify and hold harmless, to the full extent permitted by law, each Holder, its officers and directors, their Agents and each Person who controls each such Holder (within the meaning of the Securities Act) against all losses, claims, damages, liabilities and expenses to which any such Person may be subject, under the Securities Act or otherwise, and reimburse all such Persons for any legal or other expenses incurred with investigating or defending against any such losses, claims, damages or liabilities, insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in a Registration Statement, Prospectus or preliminary prospectus or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, or any violation or alleged violation by the Company of the Securities Act, the Securities Exchange Act of 1934, as amended, or applicable “blue sky” laws, except insofar as the same arise out of or are based upon an untrue statement of a material fact or omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, which statement or omission is made therein in reliance upon and in conformity with information furnished in writing to the Company by such Holder, expressly for use therein. 

(b)     Indemnification by Holders. Each Holder will, severally but not jointly, indemnify and hold harmless, to the full extent permitted by law, the Company, its directors and officers and each Person who controls the Company (within the meaning of the Securities Act) against any losses, claims, damages, liabilities and expenses to which any such Person may be subject, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities arise out of or are based upon any untrue or alleged untrue statement of a material fact contained in the Registration Statement or Prospectus or preliminary prospectus or any omission or alleged omission of a material fact required to be stated therein or necessary to make the statements therein not misleading, to the extent, but only if and to the extent, that such untrue or alleged untrue statement or omission or alleged omission is made therein in reliance upon and in conformity with the information furnished in writing by such Holder specifically for inclusion therein. 

(c)     Conduct of Indemnification Proceedings. Any Person entitled to indemnification (the “Indemnified Party”) hereunder will (i) give prompt notice to the indemnifying party (the “Indemnifying Party”) of any claim with respect to which it seeks indemnification, and (ii) unless, in such Indemnified Party’s reasonable judgment, a conflict of interest may exist between such Indemnified Party and Indemnifying Party with respect to such claim, permit such Indemnifying Party to assume at its own expense the defense of such claim with counsel reasonably satisfactory to the Indemnified Party. The Indemnified Party shall have the right to participate in the conduct of such defense by the Indemnifying Party provided that it will pay for the fees of its own counsel. Whether or not such defense is assumed by the Indemnifying Party, the Indemnifying Party will not be subject to any liability for any settlement made without its consent (but such consent will not be unreasonably withheld). No Indemnifying Party will consent to entry into any judgment or enter into any settlement which does not include as an unconditional term thereof the giving of the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or litigation. An Indemnifying Party who is not entitled to, or elects not to, assume the defense of a claim will not be obligated to pay the fees and expenses of more than one counsel for all parties indemnified by such Indemnifying Party with respect to such claim, unless in the reasonable judgment of any Indemnified Party and any other of such Indemnified Parties with respect to such claim, in which event the Indemnifying Party shall be obligated to pay the fees and expenses of such additional counsel or counsels. Failure to give prompt written notice shall not release the Indemnifying Party from its obligations hereunder, except to the extent that the Indemnifying Party demonstrates that the defense of such claim is materially prejudiced by the Indemnified Party’s failure to give such notice.

(d)     Continued Effect. The indemnification provided for under this Agreement shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Party or any officer, director, Agent or person who controls such Indemnified Party and shall survive the transfer of securities.

(e)     Contribution. If the indemnification provided for in Section 6(a) or 6(b) is due in accordance with the terms hereof, but is held by a court of competent jurisdiction to be unavailable or unenforceable with respect to any losses, claims, damages, liabilities or expenses referred to herein, then each Indemnifying Party in lieu of indemnifying such Indemnified Party shall contribute to the amount paid or payable by such Indemnified Party as a result of the losses, liabilities, claims or damages referred to in Section 6(a) or 6(b) in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and any Indemnified Party on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims or damages. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information initially supplied or developed by the Indemnifying Party or such Indemnified Party and the Parties’ relative intent, knowledge, access to information and opportunity to correct such untrue statement or omission. The amount paid by an Indemnified Party as a result of the losses, liabilities, claims or damages referred to in the first sentence of this Section 6(e) shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any action or claim which is the subject of this Section 6(e). No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.

 

   Section 7.     Miscellaneous.

(a)     Termination. This Agreement shall terminate upon termination of the Company’s obligations under Section 3 of this Agreement, and shall thereupon be of no further force and effect; provided that Section 6 shall survive the termination of this Agreement. 

(b)     No Inconsistent Agreements. The Company will not on or after the date of this Agreement enter into any agreement with respect to its securities which is inconsistent with the rights granted to the Stockholders and any of their Affiliates in this Agreement or otherwise conflicts with the provisions hereof.

 

(c)     Notices. All notices, requests, demands and other communications required or permitted to be given hereunder shall be given in accordance with Section 9.4 of the Asset Purchase Agreement.

(d)     Entire Agreement. This Agreement contains the entire agreement among the Parties with respect to the subject matter hereof, and supersedes all prior agreements, written or oral, with respect thereto.

 

(e)     Waivers and Amendments. This Agreement may be amended, superseded, cancelled, renewed or extended, and the terms hereof may be waived, only by a written instrument signed by the Parties or, in the case of a waiver, by the Party waiving compliance. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof. The rights and remedies of any Party based upon, arising out of or otherwise in respect of any inaccuracy in or breach of any representation, warranty, covenant or agreement contained in this Agreement shall in no way be limited by the fact that the act, omission, occurrence or other state of facts upon which any claim of any such inaccuracy or breach is based may also be the subject matter of any other representation, warranty, covenant or agreement contained in this Agreement.

 

(f)     Remedies Cumulative. No remedy made available by any of the provisions of this Agreement is intended to be exclusive of any other remedy, and each and every remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity.

 

(g)     Binding Effect; No Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns. This Agreement is not assignable by the Stockholders without the prior written consent of the Company except by operation of law and any other purported assignment shall be null and void. 

 

(h)     Counterparts. This Agreement may be executed by the Parties hereto in multiple counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute one and the same instrument. 

 

(i)     Interpretive Provisions. 

 

(i)     The words “hereof,” “herein,” “hereunder” and “hereto” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Except as expressly set forth herein, the term “including” when used with or without the term “without limitation” shall be deemed to be inclusive, and not to the exclusion of any other item.

 

(ii)     All references herein to Sections, subsections, and clauses shall be deemed references to such parts of this Agreement, unless the context shall otherwise require.

 

(j)     Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

(k)     Severability of Provisions. If any provision or any portion of any provision of this Agreement or the application of such provision or any portion thereof to any Person or circumstance, shall be held invalid or unenforceable, the remaining portion of such provision and the remaining provisions of this Agreement, or the application of such provision or portion of such provision as is held invalid or unenforceable to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby.

 

(l)     Choice of Law. This Agreement shall be governed and construed in accordance with the laws of the State of Georgia without regard to the conflicts of laws principles thereof. Each Party hereby irrevocably submits to the exclusive jurisdiction of Fulton County, State of Georgia, in any action or proceeding arising out of or relating to this Agreement and hereby irrevocably agrees, on behalf of itself and on behalf of such Party’s successor’s and assigns, that all claims in respect of such action or proceeding may be heard and determined in any such court and irrevocably waives any objection such Party may now or hereafter have as to the venue of any such suit, action or proceeding brought in such a court or that such court is an inconvenient forum.

 

(m)     Waiver of Jury Trial. The Parties hereby waive trial by jury in any judicial proceeding involving, directly or indirectly, any matter (whether in tort, contract or otherwise) in any way arising out of, related to, or connected with this Agreement.

 

[The Remainder of This Page Has Been Intentionally Left Blank]

 

	

	 	 	 
	

	 

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

 

COMPANY:

FLAG FINANCIAL CORPORATION

By: /s/ J. Daniel Speight                

J. Daniel Speight

Vice President

STOCKHOLDERS:

RNM ENTERPRISES, INC.

d/b/a PAYROLL SOLUTIONS

By: /s/ Derek Whitworth                

Derek Whitworth

President

JDDWNM, INC.

By: /s/ Derek Whitworth                

Derek Whitworth

Presidentsec document

                                                                    EXHIBIT 10.1

                        AMENDMENT TO EMPLOYMENT AGREEMENT

            Amendment   ("Amendment")  dated  December  9,  2004  to  Employment
Agreement dated as of May 13, 2002 (the  "Employment  Agreement") by and between
NuCO2 Inc. ("the Corporation") and William Scott Wade ("Wade").

            WHEREAS,  the  Corporation  and Wade are  parties to the  Employment
Agreement; and

            WHEREAS,  the  Corporation  and Wade  wish to amend  the  Employment
Agreement to make certain modifications thereto;

            NOW,  THEREFORE,  for Ten Dollars  ($10) and other good and valuable
consideration,  the receipt and sufficiency of which are acknowledged by each of
the parties, the Corporation and Wade hereby agree as follows:

           1.     References  in  Paragraphs  1.1  and  1.2  of  the  Employment
                  Agreement to "Executive Vice President,  Operations"  shall be
                  replaced with "Chief Operating Officer".

           2.     The first  sentence  of  Paragraph  2.1(a)  of the  Employment
                  Agreement shall be amended in its entirety to read as follows:

                  "A base salary  ("Base  Salary")  at the rate of $275,000  per
                  annum  commencing on July 1, 2004,  payable in accordance with
                  the Corporation's regular payment schedule for its employees."

           3.     The  last  sentence  of  Paragraph  2.1(c)  of the  Employment
                  Agreement shall be amended in its entirety to read as follows:

                  "The  annual  cash bonus  will have a target of fifty  percent
                  (50%) of Base Salary (the "Target  Cash  Bonus")  based on the
                  full  achievement of its projected  EBITDA and other operating
                  and  financial  criteria  as  projected  in the  Corporation's
                  business  plan  approved  by the  Board of  Directors  and the
                  Executive meeting individual  achievement goals recommended by
                  the Executive and approved by the Chief Executive Officer."

           4.     The paragraph  immediately  preceding  Paragraph 4.2(a) of the
                  Employment  Agreement shall be amended in its entirety to read
                  as follows:

                  "In consideration of the acknowledgement by the Executive, and
                  in consideration  of the compensation and benefits  (including
                  the  payments  described  in  Paragraph  5.1(c)) to be paid or
                  provided to the  Executive by the  Corporation,  the Executive
                  covenants  that he will not,  during the Term and for a period
                  of  two  (2)  years   following  the   expiration  or  earlier
                  termination  of this  Agreement,  without  the  prior  written
                  consent of the Corporation, directly or indirectly:"

           5.     Paragraph 5.1(a) of the Employment  Agreement shall be amended
                  in its entirety to read as follows:

                  "(a)   Continuation   of  all  benefits,   including   without
                  limitation  medical,  dental  and life  insurance  for one and
                  one-half  (1-1/2) years following the date of termination,  or

                  until the date on which the Executive  first becomes  eligible
                  for insurance  coverage of a similar nature provided by a firm
                  that employs him  following  termination  of employment by the
                  Corporation, whichever occurs first."

           6.     Paragraph 5.1(c) of the Employment  Agreement shall be amended
                  in its entirety to read as follows:

                  "(c) An amount  equal to the  greater of (i) one and  one-half
                  (1-1/2)  times (y) the  Executive's  then current  annual Base
                  Salary and (z) the Executive's  Target Cash Bonus for the then
                  current  year and (ii) six  hundred  eighteen  thousand  seven
                  hundred fifty dollars  ($618,750) to be paid within sixty (60)
                  days of termination of employment.  The parties agree that the
                  amount of $550,000  payable  pursuant to this Paragraph 5.1(c)
                  shall  be  treated  as  paid  for  in  consideration  for  the
                  non-compete provisions set forth in Paragraph 4.2 and shall be
                  subject to the  enforcement  provisions set forth in Paragraph
                  4.3 and the balance shall be treated as severance."

           7.     Paragraph 5.2 of the Employment  Agreement shall be amended by
                  adding the following at the end thereof:

                  "The  Executive  hereby  covenants  and  agrees  that he shall
                  notify the Corporation in writing of any claim by the Internal
                  Revenue  Service that any amount paid,  distributed or treated
                  as paid or  distributed  by the  Corporation  pursuant to this
                  Paragraph 5 to or for the Executive's benefit would be subject
                  to the excise tax  imposed  by  Section  4999 of the  Internal
                  Revenue Code of 1986, as amended,  or any interest,  penalties
                  or additions to tax are incurred by the Executive with respect
                  to such excise tax (such  excise tax,  together  with any such
                  interest,  penalties  and  additions to tax,  are  hereinafter
                  collectively   referred   to  as  the  "Excise   Tax").   Such
                  notification  shall be given  as soon as  practicable  but not
                  later than ten business  days after the  Executive is informed
                  in writing of such claim and shall apprise the  Corporation of
                  the  nature of such  claim and the date on which such claim is
                  requested to be paid.  The Executive  shall not pay such claim
                  prior to the  expiration  of the 30-day  period  following the
                  date on which it gives such notice to the Corporation (or such
                  shorter  period  ending on the date that any  payment of taxes
                  with respect to such claim is due). In addition, the Executive
                  shall:

                  (i) give the Corporation any information  reasonably requested
                  by the Corporation relating to such claim,

                  (ii) take such action in connection with contesting such claim
                  as the Corporation  shall  reasonably  request in writing from
                  time to time, including,  without limitation,  accepting legal
                  representation  with  respect  to such  claim  by an  attorney
                  reasonably selected by the Corporation,

                  (iii)  cooperate with the Corporation in good faith so that it
                  may effectively contest such claim, and

                  (iv) permit the Corporation to control any proceeding relating
                  to such claim.

                  The  Corporation  hereby  covenants  and agrees  that it shall
                  contest any claim  described in this Section  5.2(c) and shall
                  bear and pay directly all costs and  expenses  (but  excluding

                  any Excise  Tax,  which  shall  remain the  obligation  of the
                  Executive)  incurred in connection with such contest.  Without
                  limiting the  foregoing,  the  Corporation  shall  control all
                  proceedings  taken in connection with such contest and, at its
                  sole  option,  may pursue or forgo any and all  administrative
                  appeals, proceedings, hearings and conferences with the taxing
                  authority  in  respect  of such  claim  and  may,  at its sole
                  option, either direct the Executive to pay the tax claimed and
                  sue for a  refund  or  contest  the  claim  in any  reasonable
                  manner,  and the Executive agrees to prosecute such contest to
                  a determination before any administrative tribunal, in a court
                  of initial  jurisdiction and in one or more appellate  courts,
                  as the Corporation  shall determine;  provided,  however,  the
                  Corporation  shall  consult with the Executive and his counsel
                  in connection  with, and provide the Executive and his counsel
                  with status reports of, such proceedings; and further provided
                  that (i) the  Corporation's  control of the  contest  shall be
                  limited  to issues  relating  to the  Excise  Tax and (ii) any
                  extension of the statute of limitations relating to payment of
                  taxes for Executive's  taxable year with respect to which such
                  contested  amount is claimed  to be due is  limited  solely to
                  such contested amount.  The Executive shall not be entitled to
                  settle any issue raised by the Internal Revenue Service or any
                  other taxing  authority with respect to the Excise Tax without
                  the prior written consent of the Corporation.

                  In the event that a  valuation  is  necessary  to support  the
                  position that the tax claimed is not due, in whole or in part,
                  in connection with any such dispute or contest, such valuation
                  will  be  determined   through  an   independent   third-party
                  appraisal  of the  Corporation's  selection,  and the expenses
                  incurred  in  obtaining  such  appraisal  will be borne by the
                  Corporation."

           8.     Paragraph 5.3 of the Employment  Agreement shall be amended by
                  deleting the word "or" immediately following the semi-colon at
                  the end of subparagraph (d), deleting the period at the end of
                  subparagraph (e) and adding "; or" at the end thereof,  and by
                  and adding the following new subparagraphs (f) and (g) to read
                  as follows:

                  "(f) the  failure of the  Corporation,  its  successor  or any
                  Group of Persons acquiring  substantially all of the assets of
                  the Corporation to assume any and all terms of this Agreement;
                  or

                  (g) a material  breach of this  Agreement by the  Corporation,
                  its successor or any Group of Persons acquiring  substantially
                  all of the assets of the Corporation  that remains uncured for
                  a period if  thirty  (30) days  after the  Executive  provides
                  notice  of such  material  breach in the  manner  set forth in
                  Paragraph 6.5."

           9.     A new  paragraph 5.4 is added to the  Employment  Agreement to
                  read as follows:

                  "5.4 ARBITRATION.  In the event that the Executive  reasonably
                  believes that he has Good Reason to terminate  his  employment
                  in reliance  upon  Paragraph 5.3 hereof,  the Executive  shall
                  notify  the  Corporation  in  writing  of such Good  Reason to
                  terminate his employment.  If the  Corporation  disagrees with
                  the  Executive's  belief that he has Good Reason to  terminate
                  his  employment  in reliance upon  Paragraph 5.3 hereof,  such
                  unresolved  dispute or  controversy  arising  thereunder or in
                  connection   therewith   shall  be  settled   exclusively   by
                  arbitration  conducted  in  accordance  with the  rules of the
                  American  Arbitration  Association  then in  effect  in Martin
                  County,  Florida. The arbitrators shall not have the authority
                  to add to, detract from, or modify any provision hereof nor to

                  award  punitive  damages to any injured party. A decision by a
                  majority of the  arbitration  panel shall be final and binding
                  on whether  "Good Reason"  exists.  Judgment may be entered on
                  the arbitrators' award in any court having  jurisdiction.  The
                  direct  expense of any  arbitration  hearing shall be borne by
                  the Corporation.  Each party shall bear its own counsel's fees
                  and expenses."

          10.     Paragraph 6.4 of the Employment  Agreement shall be amended in
                  its entirety to read as follows:

                  "6.4 JURISDICTIONAL  CONSENT. Except as specifically set forth
                  herein,  any  dispute  or  controversy   between  the  parties
                  relating to or arising out of this Agreement, or any amendment
                  or  modification  hereof  shall be  determined  by the Supreme
                  Court, County of Martin,  State of Florida. The service of any
                  notice,  process,  motion or other document in connection with
                  an action under this  Agreement,  may be effectuated by either
                  personal  service upon a party or by certified  mail  directly
                  addressed to him at his address set forth on Page 1 hereof."

          11.     Except as herein  provided,  the  Employment  Agreement  shall
                  remain unchanged and in full force and effect.

            IN WITNESS  WHEREOF,  the  Corporation  and Wade have  executed this
Amendment to be executed this 9th day of December 2004.

NUCO2 INC.                                    WILLIAM SCOTT WADE

By: /s/ Michael E. DeDomenico                 /s/ William Scott Wade
    -------------------------                 ----------------------
    Name:  Michael E. DeDomenico
    Title: Chairman and CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00075-of-00352.parquet"}]]