Document:

EX-10.11

 

Exhibit 10.11

CHART INDUSTRIES, INC.

STOCKHOLDER AGREEMENT

          This Stockholder Agreement (this “Agreement”) is made and entered into effective as of
___, 2006, by and between Chart Industries, Inc., a Delaware corporation (the
“Company”) and FR X Chart Holdings, LLC, a Delaware limited liability company (“First
Reserve”).

R E C I T A L S

          WHEREAS, First Reserve desires to set forth certain understandings with respect to its
holdings of shares of the Company’s common stock, par value $0.01 per share (the “Common
Stock”), as set forth herein.

          NOW, THEREFORE, in consideration of the foregoing recital, the mutual promises hereinafter set
forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. MANAGEMENT RIGHTS.

          1.1. Designation of Directors. (a) First Reserve shall be entitled to
designate individuals to serve on the Board of Directors of the Company (the “Board”) in
accordance with the following:

     (i) First Reserve shall be entitled to designate three (3) directors for so
long as it owns less than 50% but at least 25% of the aggregate number of shares of
Common Stock outstanding;

     (ii) First Reserve shall be entitled to designate two (2) directors for so long
as it owns less than 25% but more than 10% of the aggregate number of shares of
Common Stock outstanding; and

     (iii) First Reserve shall be entitled to designate one (1) director for so long
as it owns 10% of the aggregate number of shares of Common Stock outstanding; and

     (iv) First Reserve shall not be entitled to designate any directors if it holds
less than 10% of the aggregate number of shares of Common Stock outstanding.

          (b) If any of the directors designated by First Reserve pursuant to Section 1.1(a)
hereof is removed or vacates such position for any reason whatsoever, First Reserve shall be
entitled to designate a new director to replace such former director as promptly as practicable
after the occurrence of such removal or vacancy.

          (c) In connection with an initial public offering or as otherwise required by
applicable federal and state securities laws, the Board shall be expanded to include such
additional independent directors as may be required by law or the rules of any exchange on which
the shares are traded, with such independent directors to be selected by the Board and to be
reasonably acceptable to First Reserve.

 

 

     1.2 Fiduciary Duties. For purposes of clarification, each of the parties hereto
agrees that, without limiting the fiduciary duties of members of the Board appointed by First
Reserve to act in the best interests of the Company, First Reserve shall have no implied or express
duty to the Company or to any other stockholder or optionholder of the Company as a result of this
Agreement, and may act in its role as a stockholder accordingly. Each of the parties hereto
further acknowledges that the scope of the duty of loyalty imposed under the Delaware General
Corporation Law on First Reserve and its designees shall be defined and limited as follows.

          (a) Certain Potential Conflicts. Each of the parties hereto acknowledges that:

               (i) Any FRC Affiliate (as defined below) may engage in material business transactions with the
Company;

               (ii) directors, officers, and/or employees of any FRC Affiliate may serve as directors,
officers, and/or employees of the Company or its subsidiaries;

               (iii) one or more FRC Affiliates may now or in the future engage in the same or similar lines
of business or other business activities as those in which the Company or its subsidiaries may
engage; and

               (iv) one or more FRC Affiliates may exercise a controlling influence over certain of the
business, policy and strategic decisions of the Company and its subsidiaries.

               (v) For purposes of this Agreement,

                    (A) the term “FRC Affiliate” means First Reserve and any person directly or indirectly
controlling, controlled by or under common control with First Reserve. For purposes of the
foregoing definition, the term “controlling” “controlled by” or “under common
control with” means the power to direct or cause the direction of the management and policies
of a person or entity, whether through the ownership of voting securities, by contract or
otherwise.

                    (B) the term “affiliate” means with respect to any person, any other person directly
or indirectly controlling, controlled by or under common control with such person. For purposes of
the foregoing definition, the term “controlling” “controlled by” or “under
common control with” means the power to direct or cause the direction of the management and
policies of a person or entity, whether through the ownership of voting securities, by contract or
otherwise.

          (b) Limitation of Liability. To the fullest extent permitted by law, neither any FRC
Affiliate nor any director, officer or employee of any FRC Affiliate who may serve as an officer,
director and/or employee of the Company and/or its subsidiaries shall be liable to the Company or
its subsidiaries, except as expressly agreed in any written contract between the Company or any of
its subsidiaries and an FRC Affiliate:

               (i) by reason of any business decision or transaction undertaken by any FRC Affiliate which
may be adverse to the interests of the Company or its subsidiaries;

               (ii) by reason of any activity undertaken by any FRC Affiliate or by any other person in which
any FRC Affiliate may have an investment or other financial interest which is in competition with
the Company or its subsidiaries; or

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               (iii) without limiting the effect of Section 144 of the Delaware General Corporation Law, by
reason of any transaction with any FRC Affiliate, or any transaction in which any FRC Affiliate
shall have a financial interest, unless the party seeking to assert such liability shall bear the
burden of proving, by clear and convincing evidence, that such transaction was not fair to the
Company at the time it was authorized by the Board or a committee thereof.

          (c) Competing Activities. Except as otherwise expressly provided in a written
agreement between the Company or any of its subsidiaries and an FRC Affiliate:

               (i) any FRC Affiliate and its officers, directors, agents, shareholders, members, partners,
affiliates and subsidiaries, may engage or invest in, independently or with others, any business
activity of any type or description, including without limitation those that might be the same as
or similar to the Company’s business. Without limiting the foregoing, the parties hereto
acknowledge that FRC Affiliates may from time to time compete, directly or indirectly, with the
Company, and that any such FRC Affiliate may in its sole discretion pursue such competing business
without disclosure of such competition to the Company);

               (ii) none of the Company, any subsidiary of the Company nor any other stockholder of the
Company shall have any right in or to such business activities or ventures or to receive or share
in any income or proceeds derived therefrom; and

               (iii) to the extent required by applicable law in order to effectuate the purpose of this
provision, the Company shall have no interest or expectancy, and specifically renounces any
interest or expectancy, in any such business activities or ventures.

          (d) Corporate Opportunities.

               (i) A “Company Opportunity” shall mean an investment or business opportunity or
prospective economic advantage in which the Company or its subsidiaries or First Reserve or any FRC
Affiliate could, but for the provisions of this Agreement, have an interest or expectancy. Except
as set forth below in Section 1.2(d)(ii), (A) if any FRC Affiliate or, any of its officers,
directors, agents, stockholders, members, partners, or subsidiaries acquires knowledge of, or an
interest or an expectancy in, a Company Opportunity, none of the Company and its subsidiaries shall
have any interest or expectancy, and the Company hereby renounces any interest or expectancy, in
such Company Opportunity; and (B) no such FRC Affiliate nor any of its officers, directors, agents,
stockholders, members, partners, affiliates or subsidiaries shall (1) have a duty to communicate or
present such a Company Opportunity to the Company or its subsidiaries or (2) be deemed to have
breached any fiduciary duty as a stockholder, director, or officer of the Company or otherwise by
pursuing or acquiring such Company Opportunity for itself or not communicating information
regarding such Company Opportunity to the Company.

               (ii) Notwithstanding the provisions of clause 1.2.(d)(i), the Company does not renounce any
interest or expectancy it may have in any Company Opportunity that is or was (A) offered to any
person who is both (1) an officer or director of an FRC Affiliate and (2) an officer, director or
employee of the Company, if such opportunity is expressly offered to such person in his or her
capacity as an officer, director or employee of the Company; or (B) first identified by an FRC
Affiliate solely through the disclosure of information made by or on behalf of the Company.

               (iii) Neither the alteration, amendment or repeal of this Section 1.2 nor the adoption of any
provision or amendment of the Certificate of Incorporation of the Company inconsistent with this
Section 1.2 shall eliminate or reduce the effect of this Section 1.2 in respect of any matter

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occurring, or any cause of action, suit or claim that, but for this Section 1.2, would accrue
or arise prior to such alteration, amendment, repeal or adoption.

     2. REGISTRATION RIGHTS.

          2.1. Definitions. For purposes of this Section 2:

               (a) Registration. The terms “register,” “registered,” and
“registration” refer to a registration effected by preparing and filing a registration
statement in compliance with the Securities Act of 1933, as amended (the “Securities Act”),
and the declaration or ordering of effectiveness of such registration statement, and shall include
Takedowns of Registrable Securities.

               (b) Registrable Securities. The term “Registrable Securities” means
(1) all shares of Common Stock now beneficially owned or hereinafter acquired by First Reserve or
any current or future employee of the Company who is party to a Management Stockholder’s Agreement
holding registration rights, and any equity of the Company or other entity acquired by First
Reserve or any such employee in exchange for shares of Common Stock, and (2) all other securities
of the Company hereinafter acquired by First Reserve from the Company. Notwithstanding the
foregoing, “Registrable Securities” shall exclude (i) any Registrable Securities sold by a
person in a transaction in which rights under this Section 2 are not assigned in accordance with
this Agreement and (ii) any Registrable Securities sold by a stockholder in a public offering,
whether sold pursuant to Rule 144 promulgated under the Securities Act, or in a registered
offering, or otherwise.

               (c) Holder. For purposes of this Section 2, the term “Holder” means
any stockholder of the Company owning of record Registrable Securities, or any permitted assignee
of record of such Registrable Securities to whom rights under this Section 2 have been duly
assigned in accordance with this Agreement.

               (d) Management Stockholder’s Agreement. The term “Management
Stockholder’s Agreement” means a Management Stockholder’s Agreement among a current or future
employee of the Company, the Company and First Reserve.

               (e) SEC. The term “SEC” means the U.S. Securities and Exchange
Commission.

               (f) Takedown. The term “Takedown” means an offering of Registrable
Securities pursuant to a Shelf Registration (as defined below), other than a sale of shares “at the
market” not involving any third party underwriter.

          2.2. Demand Registration.

               (a) Request by First Reserve. If the Company shall receive a written
request from First Reserve that the Company file a registration statement under the Securities Act
covering the registration of Registrable Securities pursuant to this Section 2.2 (a “Demand
Notice”), then the Company shall, within five (5) business days of the receipt of a Demand
Notice, give written notice of such request (“Request Notice”) to all Holders and shall use
its best efforts to effect, as soon as practicable, the registration under the Securities Act of
all Registrable Securities that First Reserve requests to be registered in the Demand Notice,
subject only to the limitations of this Section 2.2 and the Company’s obligations under Management
Stockholder’s Agreements. Notwithstanding the prior sentence, the Company shall not be obligated
to effect any such registration if the Company has, within the three (3) month period preceding the
date of such request, already effected a registration under the Securities Act pursuant to (i) this
Section 2.2, or (ii) Section 2.3 in which First Reserve participated, other than a

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registration from which all or a portion of the Registrable Securities of First Reserve were
excluded pursuant to the provisions of Section 2.3(b).

               (b) Underwriting. If First Reserve intends to distribute the Registrable
Securities covered by its request by means of an underwritten offering, then it shall so advise the
Company as a part of the Demand Notice, and the Company shall include such information in the
Request Notice. In such event, the right of any Holder to include his or her Registrable
Securities in such registration shall be conditioned upon such Holder’s participation in such
underwriting and the inclusion of such Holder’s Registrable Securities in the underwriting (unless
otherwise mutually agreed by First Reserve and such Holder) as provided herein. The Company and
all Holders proposing to distribute their securities through such underwriting shall enter into an
underwriting agreement in customary form with the managing underwriter or underwriters selected for
such underwriting by First Reserve. Notwithstanding any other provision of this Section 2.2, if
the managing underwriter(s) determine in good faith that marketing factors require a limitation of
the number of securities to be underwritten, the Company shall so advise all Holders of Registrable
Securities that would otherwise be registered and underwritten pursuant hereto, and the managing
underwriter(s) may exclude shares of the Registrable Securities as necessary from the registration
and the underwriting, with the number of shares to be included in the registration and the
underwriting allocated in the following manner: first to First Reserve and to each of the
other Holders requesting inclusion of their Registrable Securities in such registration statement,
on a pro rata basis, based on the total number of Registrable Securities then held by First Reserve
and each other such Holders; and second to the Company; provided that if the managing
underwriter(s) determine in good faith that allowing Holders other than First Reserve to include
their Registrable Securities in a registration statement on a pro rata basis with Registrable
Securities requested by First Reserve to be included in such registration statement would adversely
affect the distribution of the Registrable Securities being offered, then the number of shares to
be included in such registration statement and the underwriting shall be allocated in the following
manner: first to First Reserve; second to the Company; and third to each
of the other Holders requesting inclusion of their Registrable Securities in such registration
statement, on a pro rata basis, based on the total number of Registrable Securities then held by
each other such Holders. No other Registrable Securities may be included in the Registration
Statement (other than by the Company or by the Holders pursuant to Section 2.3) without First
Reserve’s consent. If, as a result of any reduction or limitation at the request of an
underwriter, a registration effected pursuant to this Section 2.2 does not include at least 80% of
the Registrable Securities that First Reserve requested to be registered in the Demand Notice, such
registration shall not constitute a demand for purposes of Section 2.2(e). For any Holder that is
a partnership, the Holder and the partners and retired partners (if any) of such Holder, or the
estates and family members of any such partners and retired partners and any trusts for the benefit
of any of the foregoing persons, and for any Holder that is a corporation, the Holder and all
corporations that are affiliates of such Holder, shall be deemed to be a single “Holder,” and any
pro rata reduction with respect to such “Holder” shall be based upon the aggregate amount of
Registrable Securities owned by all entities and individuals included in such “Holder,” as defined
in this sentence.

               (c) Shelf Registration. If the Company is eligible to register the resale
of Registrable Securities by Holders on Form S-3, then any registration under Section 2.2(a) shall,
if requested in the Demand Notice, be effected on Form S-3 pursuant to Rule 415 under the
Securities Act (or its successor) on a continuous basis for the period requested (a “Shelf
Registration”). If such a Shelf Registration is requested in the Demand Notice (such Shelf
Registration, a “Holder Shelf Registration”):

                    (i) The Company shall be entitled to require that a Holder or Holders refrain from effecting
any public sales or distributions of the Registrable Securities pursuant to a Holder Shelf
Registration (a “Distribution Suspension”), if the Board reasonably determines that such
public sales or distributions would interfere in any material respect with any transaction
involving the Company that the Board reasonably determines to be material to the Company; provided,
however, that in no event shall

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any one or more Distribution Suspension(s) be in effect for more than a total of ninety (90)
days in any twelve month period. The Board shall, as promptly as practicable, give the Holders
written notice of any Distribution Suspension. If the Board institutes a Distribution Suspension,
the Company shall be required to lift that Distribution Suspension as soon as reasonably
practicable after the Board determines public sales or distributions by Holders shall not interfere
with any such transaction (and, in all events, on or before the 90 day limit set forth above).

                    (ii) The Form S-3 shall provide that First Reserve and the other Holders participating in the
Shelf Registration (collectively, the “Shelf Holders”), may from time to time distribute
some or all of the Registrable Securities included in that Shelf Registration (the “Shelf
Securities”) by means of an underwritten offering (a “Shelf Underwriting”). The
Company may not participate in any such Shelf Underwriting without the prior consent of First
Reserve in its sole discretion. Only First Reserve shall have the right to initiate a Shelf
Underwriting with respect to Shelf Securities included in a Holder Shelf Registration, and each
such Shelf Underwriting shall be governed by the terms of this Section 2.2 but shall not constitute
an additional demand for purposes of Section 2.2(e).

                    (iii) First Reserve shall provide the Company with written notice (a “Shelf Underwriting
Request”) if it wishes to distribute Shelf Securities pursuant to a Shelf Underwriting. Each
Shelf Underwriting Request shall indicate the proposed timing and number of Shelf Securities to be
sold by First Reserve pursuant to the Shelf Underwriting, and shall also include First Reserve’s
good faith judgment as to whether, given the proposed timing of the Shelf Underwriting, it would be
reasonably practicable for the other Shelf Holders to participate in such Shelf Underwriting. The
requirements of this Section 2.2(c)(iii) shall not apply to any Shelf Underwriting in which, in
First Reserve’s good faith judgment, it would not be reasonably practicable for the other Shelf
Holders to participate given the proposed timing of that Shelf Underwriting (each such Shelf
Underwriting, an “Overnight Deal”). No other Shelf Holder shall have a right to
participate with First Reserve in any Overnight Deal. The Company shall inform each other Holder
of any Overnight Deal promptly after its consummation.

                    (iv) Within two business days of receiving a Shelf Underwriting Request for a Shelf
Underwriting that is not an Overnight Deal, the Company shall give written notice (a “Shelf
Notice”) of such Shelf Underwriting Request to all other Shelf Holders. Each Shelf Holder
desiring to include all or any part of the Shelf Securities held by such Shelf Holder in any such
Shelf Underwriting shall within two business days after receipt of the Shelf Notice so notify in
writing the Company and First Reserve, and in such notice shall inform the Company and First
Reserve of the number of Shelf Securities such Shelf Holder (each, along with First Reserve, a
“Participating Holder”) wishes to include in such Shelf Underwriting.

                    (v) The Company and all Participating Holders shall enter into an underwriting agreement in
customary form with the managing underwriter or underwriters selected for such Shelf Underwriting
by First Reserve. If the managing underwriter(s) determine in good faith that marketing factors
require a limitation of the number of securities proposed to be included in the Shelf Underwriting,
the Company shall so advise all Participating Holders, and the managing underwriter(s) may exclude
shares of the Shelf Securities as necessary from Shelf Underwriting, with the number of shares to
be included in the Shelf Underwriting allocated to First Reserve and each of the other
Participating Holders requesting inclusion of their Shelf Securities in such Shelf Underwriting on
a pro rata basis, based on the total number of Shelf Securities then held by First Reserve and each
other such Participating Holders (the defined term “Participating Holder” shall be construed for
purposes of this Section 2.2(c)(v) in the same manner as the term “Holder” is construed in the last
sentence of Section 2.2(b)); provided that if the managing underwriter(s) determine in good faith
that allowing Participating Holders other than First Reserve to include their Shelf Securities in a
Shelf Underwriting on a pro rata basis with Shelf Securities requested by First Reserve to be
included in such Shelf Underwriting would

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adversely affect the distribution of the Shelf Securities being offered, then the number of
Shelf Securities to be included in such Shelf Underwriting shall be allocated in the following
manner: first to First Reserve; and second to each of the other Participating
Holders requesting inclusion of their Shelf Securities in such Shelf Underwriting on a pro rata
basis, based on the total number of Shelf Securities then held by each other such Participating
Holders.

               (d) Takedowns.

                    (i) If prior to any First Reserve request for registration pursuant to Section 2.2(a), (i) the
Company shall have filed a Shelf Registration covering First Reserve’s Registrable Securities, (ii)
such Shelf Registration contemplated the intended method of distribution requested by First
Reserve, (iii) such Shelf Registration shall have registered for resale by First Reserve its
Registrable Securities, and (iv) the Shelf Registration is effective when First Reserve would
otherwise make a request for registration under Section 2.2(a), the Company shall not be required
to separately register any Registrable Securities in response to such request, and such request
shall be deemed to be a request that the Company cooperate in effecting a Takedown of the
Registrable Securities pursuant to such Shelf Registration.

                    (ii) If the Company proposes to effect a Takedown from a Shelf Registration, whether for its
own account or for the account of other Holders who have Registrable Securities covered by such
Shelf Registration, or both, the Company shall give notice thereof to First Reserve, and First
Reserve may request to have its Registrable Securities included in such Takedown to the same
extent, and subject to the same limitations (including the reduction of shares included in such
Takedown), as if such Takedown were a registration pursuant to Section 2.3.

                    (iii) At any time after the date of this Agreement, First Reserve may request that the Company
cooperate in effecting a Takedown of all or any portion of the Registrable Securities held by First
Reserve that remain covered by a Shelf Registration (any such request, other than in response to a
notice from the Company pursuant to Section 2.2(d)(ii), being a “Takedown Request”). If
First Reserve makes a Takedown Request:

	 	(1)	 	such Takedown Request shall count
against the number of requests for registration permitted to be
made by First Reserve only if road show assistance is provided
in the offering pursuant to Section 2.5(h);
	 
	 	(2)	 	the number of shares of
Registrable Securities of First Reserve included in such
Takedown may be reduced in the manner set forth in Section
2.2(b); and
	 
	 	(3)	 	the Company shall use its
reasonable best efforts to effectuate such Takedown as promptly
thereafter as practicable, and otherwise shall fulfill its
obligations in connection with such Takedown in accordance with
the provisions of this Agreement as if such Takedown were a
registration requested or effected pursuant to Section 2.2(a).

                    (iv) In the case of a request for a Takedown or inclusion in a Takedown, all references in
this Agreement to the effective date of a Registration shall be deemed to refer to the date of
pricing of such Takedown.

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               (e) Maximum Number of Demand Registrations. Except as set forth below, the
Company shall be obligated to effect only four (4) registrations pursuant to Section 2.2(a), each
of which may be a Shelf Registration. A Registration shall be effected for purposes of this
Section 2.2(e) when and if a registration statement is declared effective by the SEC and the
distribution of securities thereunder has been completed without the occurrence of any stop order
or proceeding relating thereto suspending the effectiveness of the Registration. Notwithstanding
the foregoing sentences, there shall be no limit to the number of registrations on Form S-3 that
may be requested and obtained by First Reserve, other than demands for Shelf Registrations (each of
which shall count against the four demand registration limit).

               (f) Deferral. Notwithstanding the foregoing, if the Company shall furnish
to First Reserve a certificate signed by the President or Chief Executive Officer of the Company
stating that, in the good faith judgment of the Board, it would be materially detrimental to the
Company and its stockholders for such registration statement to be filed, then the Company shall
have the right to defer such filing for a period of not more than ninety (90) days after receipt of
the request of First Reserve; provided, however, that the Company may not utilize
this right more than once in any twelve (12) month period.

               (g) Expenses. All expenses incurred in connection with any registration
pursuant to this Section 2.2, including without limitation all federal and “blue sky” registration,
filing and qualification fees, printer’s and accounting fees, fees and disbursements of counsel for
the Company, and fees and expenses of one counsel for the Holders (selected by First Reserve) shall
be borne by the Company. Each Holder participating in a registration pursuant to this Section 2.2
shall bear such Holder’s proportionate share (based on the total number of Registrable Securities
sold in such registration other than for the account of the Company) of all discounts, commissions
or other amounts payable to underwriters or brokers in connection with such offering by the
Holders. Notwithstanding the foregoing, the Company shall not be required to pay for any expenses
of any registration proceeding begun pursuant to this Section 2.2 if the registration request is
subsequently withdrawn at the request of First Reserve, unless First Reserve agrees that such
registration constitutes the use by it of one (1) demand registration pursuant to this Section 2.2;
provided, however, that if at the time of such withdrawal, First Reserve has
learned of a material adverse change in the condition, business, or prospects of the Company not
known to First Reserve at the time of its request for such registration and has withdrawn its
request for registration with reasonable promptness after learning of such material adverse change,
then the Company shall be required to pay all such expenses and such registration shall not
constitute the use of a demand registration pursuant to this Section 2.2.

          2.3. Piggyback Registrations.

               (a) Notices. The Company shall promptly notify First Reserve in writing (a
“Piggyback Notice”) prior to filing any registration statement under the Securities Act for
purposes of effecting an offering of securities of the Company (including, but not limited to,
registration statements relating to the initial or secondary public offerings of securities of the
Company, whether pursuant to Section 2.2 or otherwise, but excluding registration
statements with respect to an employee benefit plan or a corporate reorganization, merger or
acquisition). Subject to Section 2.3(b), the Company will afford First Reserve an opportunity to
include in such registration statement all or any part of the Registrable Securities then held by
First Reserve that are of the same class and type as the securities being offered under such
registration statement. If First Reserve desires to include in any such registration statement all
or any part of the Registrable Securities held by it, First Reserve shall within ten (10) days
after receipt of the Piggyback Notice so notify the Company in writing, and in such notice shall
inform the Company of the number of Registrable Securities it wishes to include in such
registration statement. If First Reserve decides not to include all of its Registrable Securities
in any such registration statement, it shall nevertheless continue to have the right to include any
Registrable Securities in any subsequent registration

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statement or registration statements as may be filed by the Company with respect to offerings
of its securities, all upon the terms and conditions set forth in this Agreement.

               (b) Underwriting. If a registration statement referred to in the Piggyback
Notice is for an underwritten offering, then the Company shall so advise First Reserve. In such
event, the right of First Reserve to include Registrable Securities in such a Registration shall be
conditioned upon First Reserve’s participation in such underwriting, the inclusion of its
Registrable Securities in the underwriting as provided herein and First Reserve entering into an
underwriting agreement in customary form with the managing underwriter or underwriters selected for
such underwriting. Notwithstanding any other provision of this Agreement, if the managing
underwriter(s) determine(s) in good faith that marketing factors require a limitation of the number
of shares to be underwritten, then the Company shall so advise First Reserve, and the managing
underwriter(s) may exclude shares of the Registrable Securities from the registration and the
underwriting, and the number of shares that will be included in the registration and the
underwriting shall be allocated as set forth in Section 2.2, or, if the underwriting is not
pursuant to Section 2.2, shall be allocated first to the Company, and second, to
each of the Holders requesting inclusion of their Registrable Securities in such registration
statement on a pro rata basis based on the total number of Registrable Securities then held by each
such Holder. If First Reserve disapproves of the terms of any such underwriting, it may elect to
withdraw therefrom by written notice to the Company and the underwriter(s), delivered at least ten
(10) business days prior to the effective date of the registration statement. Any Registrable
Securities excluded or withdrawn from such underwriting shall be excluded and withdrawn from the
registration. The defined term “Holder” shall be construed for purposes of this Section 2.3(b) in
the same manner as set forth in the last sentence of Section 2.2(b)).

               (c) Expenses. All expenses incurred in connection with a registration
pursuant to this Section 2.3 (excluding underwriters’ and brokers’ discounts and commissions
relating to shares sold by the Holders), including, without limitation all federal and “blue sky”
registration, filing and qualification fees, printers’ and accounting fees, fees and disbursements
of counsel for Holders (selected by First Reserve), and fees and disbursements of counsel for the
Company, shall be borne by the Company. If it participates in a registration pursuant to this
Section 2.3, First Reserve shall bear its proportionate share (based on the total number of
Registrable Securities sold in such registration other than for the account of the Company) of all
discounts, commissions or other amounts payable to underwriters or brokers in connection with such
offering.

               (d) Not Demand Registration. Registration pursuant to this Section 2.3
shall not be deemed to be a demand registration as described in Section 2.2, unless First Reserve
specifically elects otherwise in writing. There shall be no limit on the number of times First
Reserve may request registration of Registrable Securities under this Section 2.3.

               (e) Withdrawal Right. Notwithstanding any provision contained in this
Section 2.3 to the contrary, the Company shall have the right to terminate or withdraw any
registration statement initiated by it (other than in response to a Holder Notice under Section
2.2) prior to the effectiveness of such registration statement whether or not First Reserve has
elected to include its Registrable Securities in such registration statement.

               (f) Shelf Registrations. In the event the registration commenced by the
Company pursuant to this Section 2.3 was not commenced pursuant to a Demand Notice and is a Shelf
Registration (any such Shelf Registration, a “Company Shelf Registration”): (i) the
Company and, if it requests inclusion of its Registrable Securities in such registration pursuant
to Section 2.3(a), First Reserve shall comply with the provisions of Section 2.2(c); (ii) the
piggy-back rights of First Reserve and the other provisions of Section 2.3 shall apply to both the
Company Shelf Registration and any Shelf Underwriting initiated from time to time by the Company to
distribute some or all of the Registrable Securities included

9

 

in a Company Shelf Registration; and (iii) for purposes of Section 2.3, any such Shelf
Underwriting shall be deemed to be a registration for an underwritten offering commenced by the
Company pursuant to Section 2.3. Notwithstanding anything contained in Section 2.2(c), the Company
(along with First Reserve) shall have the right to initiate a Shelf Underwriting to distribute
Registrable Securities included in a Company Shelf Registration, and the Company shall be deemed a
Shelf Holder for purposes of any Shelf Underwriting initiated by First Reserve with respect to
Registrable Securities included in the Company Shelf Registration. If all of the Common Stock held
by First Reserve may be sold or transferred in the manner permitted under Rule 144(k) promulgated
under the Securities Act, First Reserve’s rights under this Section 2.3(f) shall not apply to any
Company Shelf Registration in which, in the Board’s good faith judgment, it would not be reasonably
practicable for First Reserve or any other person to participate given the proposed timing of that
Company Shelf Registration. The Company shall inform First Reserve of any such Company Shelf
Registration promptly after its consummation.

          2.4. Lock-ups. With respect to any underwritten offering in which the
Company or First Reserve is selling securities pursuant to Section 2.2 or 2.3 (including without
limitation the Company’s initial public offering and any Shelf Underwriting), beginning on (a) the
effective date of a registration statement filed by the Company pursuant to Section 2.2 or 2.3 (in
the case of a registration statement other than a Shelf Registration) or (b) the date of the
underwriting agreement executed in connection with a Shelf Underwriting (each an “Effective
Date”), other than as provided in the last sentence of this Section 2.4, First Reserve and the
Company each agree (unless the managing underwriters of the underwritten offering otherwise agree)
to not (i) effect any issuance, sale, transfer, assignment, pledge, conveyance (including, without
limitation, taking any short position in), or repurchase of Common Stock (or any securities of the
Company exchangeable or convertible into Common Stock) for a period of 90 days after the Effective
Date (the “Lock-up Period”) or such longer time (not to exceed an additional 90 days) as
requested by the underwriters for such offering and agreed to by First Reserve in its sole
discretion (the “Additional Period”); and (ii) the Company agrees to not file with the SEC
any other registration statement, or any supplement or amendment to a previously filed shelf
registration statement, from the Effective Date until the later of the expiration of the Lock-up
Period or the completion of the period of distribution of any underwritten offering (but not to
exceed the Additional Period). First Reserve and the Company agree to enter into customary lock-up
agreements with an underwriter consistent with the terms of this Section 2.4. The restrictions in
this Section 2.4 shall not prevent the Company from filing with the SEC registration statements
relating to any employee benefit plan, corporate reorganization, or issuance of debt that is not
convertible into equity, and shall not apply to (X) the Registrable Securities to be sold, or any
shares of stock to be sold by the Company, under any underwritten offering contemplated by Section
2.2 or 2.3; (Y) any shares of Common Stock issued by the Company upon the exercise of an option,
warrant or other security or the conversion of a security outstanding on the Effective Date; or (Z)
any shares of Common Stock issued or options or other securities to purchase or acquire Common
Stock granted pursuant to employee benefit plans of the Company existing as of the Effective Date.

          2.5. Obligations of the Company. Whenever required to effect the
registration of any Registrable Securities under this Agreement the Company shall, as expeditiously
as reasonably possible:

               (a) Registration Statement. Subject to the provisions of Section 2.2(e),
prepare and file with the SEC a registration statement with respect to such Registrable Securities
and use its best efforts to cause such registration statement to become effective and to keep any
such registration statement (including any Shelf Registration) effective for so long as required by
the Securities Act to complete the distribution, provided however that in no event shall the
Company be required to keep a registration statement effective for greater than two years.

10

 

               (b) Amendments and Supplements. Prepare and file with the SEC such
amendments and supplements to such registration statement and the prospectus used in connection
with such registration statement as may be necessary to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such registration
statement.

               (c) Prospectuses. Furnish to First Reserve such number of copies of a
prospectus, including a preliminary prospectus, in conformity with the requirements of the
Securities Act, and such other documents as they may reasonably request in order to facilitate the
disposition of the Registrable Securities owned by them that are included in such registration.

               (d) Blue Sky. Use its best efforts to register and qualify the securities
covered by such registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by First Reserve; provided that the Company
shall not be required in connection therewith or as a condition thereto to qualify to do business
or to file a general consent to service of process in any such states or jurisdictions.

               (e) Underwriting. In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement in usual and customary form
(including indemnification provisions), with the managing underwriter(s) of such offering. First
Reserve shall, if it is participating in the underwritten offering, also enter into and perform its
obligations under such an agreement.

               (f) Notification. Notify First Reserve at any time when a prospectus
relating to an offering of Registrable Securities is required to be delivered under the Securities
Act of the happening of any event as a result of which such prospectus, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the
circumstances then existing. In addition, the Company shall promptly notify First Reserve and each
underwriter, broker, dealer and placement agent participating in any offering or sale or other
distribution of securities covered by such registration statement of the issuance or threatened
issuance of any order suspending the registration or qualification of any Registrable Securities
included in such offering for disposition in any jurisdiction; use its commercially reasonable
efforts to prevent the issuance of any such threatened order and, if any such order is issued, use
its commercially reasonable efforts to obtain the lifting or withdrawal of such order at the
earliest possible moment and promptly notify First Reserve and each such underwriter, broker,
dealer and placement agent of any lifting or withdrawal.

               (g) Opinion and Comfort Letter. Furnish, at the request of First Reserve or
of any underwriter in connection therewith, on the date or dates requested by First Reserve or such
underwriter, (i) an opinion, dated as of such date, of the counsel representing the Company for the
purposes of such registration, in form and substance as is customarily given to underwriters in an
underwritten public offering and reasonably satisfactory to First Reserve, addressed to the
underwriters, if any, and to First Reserve and (ii) a “comfort” letter dated as of such date, from
the independent certified public accountants of the Company, in form and substance as is
customarily given by independent certified public accountants to underwriters in an underwritten
public offering and reasonably satisfactory to First Reserve, addressed to the underwriters, if
any, and, if permissible, to First Reserve.

               (h) Road Shows. To the extent reasonably requested by First Reserve, cause
the appropriate members of the management and employees of the Company to participate in meetings,
diligence sessions, and road shows.

11

 

               (i) Maintenance of Listed Status. Following its initial public offering,
the Company shall use its best efforts to (i) cause all Registrable Securities to be listed on the
securities exchange or automated quotation system on which the Company’s Common Stock is initially
listed; and (ii) to maintain its status as a listed company on such exchange or quotation system or
such other major national securities exchange as the Company’s Board of Directors may determine.
In the event the Company should be de-listed from such exchange or quotation system, the Company
shall use its best efforts to regain its status as a listed company on such exchange or quotation
system as promptly as is reasonably possible.

               (j) Additional Actions. Take all other actions which are reasonably
necessary or which may be reasonably requested by First Reserve or any underwriter, broker, dealer
or placement agent participating in any offering or sale or other distribution of securities
covered by such registration statement to effect the registration and qualification of the
Registrable Securities covered by such registration statement and to facilitate the disposition
thereof in accordance with the respective plans of distribution of the selling Holders.

          2.6. Indemnification. In the event any Registrable Securities owned by
First Reserve are included in a registration statement under Sections 2.2 or 2.3:

               (a) By the Company. To the extent permitted by law, the Company will
indemnify and hold harmless First Reserve, the partners, officers and directors of First Reserve,
any underwriter (as determined in the Securities Act) for First Reserve and each person, if any,
who controls First Reserve or underwriter within the meaning of the Securities Act or the
Securities Exchange Act of 1934, as amended, (the “Exchange Act”), against any losses,
claims, damages, or liabilities (joint or several) to which they may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are based upon any of the
following statements, omissions or violations (collectively a “Violation”):

     (i) any untrue statement or alleged untrue statement of a material fact
contained in such registration statement, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto;

     (ii) the 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

     (iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any federal or state securities law or any rule or regulation
promulgated under the Securities Act, the Exchange Act or any federal or state
securities law in connection with the offering covered by such registration
statement;

and the Company will reimburse First Reserve and each such partner, officer or director,
underwriter or controlling person for any legal or other expenses reasonably incurred by them, as
incurred, in connection with investigating or defending any such loss, claim, damage, liability or
action; provided, however, that the indemnity agreement contained in this subsection 2.6(a)
shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action
if such settlement is effected without the consent of the Company, which consent shall not be
unreasonably withheld, nor shall the Company be liable in any such case for any such loss, claim,
damage, liability or action to the extent that it arises out of or is based upon a Violation which
occurs in reliance upon and in conformity with written information furnished expressly for use in
connection with such registration by First Reserve or such partner, officer, director, underwriter
or controlling person of First Reserve.

12

 

               (b) By First Reserve. To the extent permitted by law, First Reserve will
indemnify and hold harmless the Company, each of its directors, each of its officers who have
signed the registration statement, each person, if any, who controls the Company within the meaning
of the Securities Act and any underwriter, against any losses, claims, damages or liabilities
(joint or several) to which the Company or any such director, officer, controlling person or
underwriter may become subject under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise
out of or are based upon any Violation, in each case to the extent (and only to the extent) that
such Violation occurs in reliance upon and in conformity with written information furnished by
First Reserve concerning it expressly for use in connection with such registration; and First
Reserve will reimburse any legal or other expenses reasonably incurred by the Company or any such
director, officer, controlling person or underwriter in connection with investigating or defending
any such loss, claim, damage, liability or action: provided, however, that the
indemnity agreement contained in this subsection 2.6(b) shall not apply to amounts paid in
settlement of any such loss, claim, damage, liability or action if such settlement is effected
without the consent of First Reserve, which consent shall not be unreasonably withheld; and
provided, further, that the total amounts payable in indemnity by First Reserve under this Section
2.6(b) in respect of any Violation shall not exceed the net proceeds received by First Reserve in
the registered offering out of which such Violation arises.

               (c) Notice. Promptly after receipt by an indemnified party under this
Section 2.6 of notice of the commencement of any action (including any governmental action), such
indemnified party will, if a claim in respect thereof is to be made against any indemnifying party
under this Section 2.6, deliver to the indemnifying party a written notice of the commencement
thereof and the indemnifying party shall have the right to participate in, and, to the extent the
indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume the defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party shall have the right to retain its own counsel, with the
fees and expenses of no more than one separate counsel to be paid by the indemnifying party, if
representation of such indemnified party by the counsel retained by the indemnifying party would be
inappropriate due to actual or potential conflict of interests between such indemnified party and
any other party represented by such counsel in such proceeding. The failure to deliver written
notice to the indemnifying party within a reasonable time of the commencement of any such action
shall relieve such indemnifying party of liability to the indemnified party under this Section 2.6
to the extent the indemnifying party is prejudiced as a result thereof, but the omission so to
deliver written notice to the indemnified party will not relieve it of any liability that it may
have to any indemnified party otherwise than under this Section 2.6.

               (d) Contribution. In order to provide for just and equitable contribution
to joint liability under the Securities Act in any case in which either (i) First Reserve
exercising rights under this Agreement, or any controlling person of First Reserve, makes a claim
for indemnification pursuant to this Section 2.6 but it is judicially determined (by the entry of a
final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal
or the denial of the last right of appeal) that such indemnification may not be enforced in such
case notwithstanding the fact that this Section 2.6 provides for indemnification in such case, or
(ii) contribution under the Securities Act may be required on the part of First Reserve or any such
controlling person in circumstances for which indemnification is provided under this Section 2.6;
then, and in each such case, the Company and First Reserve will contribute to the aggregate losses,
claims, damages or liabilities to which they may be subject (after contribution from others) in
such proportion so that First Reserve is responsible for the portion represented by the percentage
that the public offering price of its Registrable Securities offered by and sold under the
registration statement bears to the public offering price of all securities offered by and sold
under such registration statement and the Company is responsible for the remaining portion;
provided, however, that, in any such case: (A) First Reserve will not be required
to contribute any amount in excess of the public offering price of all such Registrable Securities
offered and sold by First Reserve pursuant to

13

 

such registration statement; (B) no person or entity guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from
any person or entity who was not guilty of such fraudulent misrepresentation, and (C) in
determining relative fault, due consideration shall be given to whether any untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state a material fact
relates to information provided by the Company on the one hand or First Reserve on the other.

               (e) Survival. The obligations of the Company and First Reserve under this
Section 2.6 shall survive until the earlier of (i) the one year anniversary of the expiration of
all applicable statutes of limitation or extensions of such statutes or (ii) the termination of
First Reserve Fund X, L.P.

          2.7. Furnish Information.

               (a) First Reserve, as a condition to its participation in any registration or
offering contemplated by this Section 2, agrees to furnish to the Company such information
regarding itself, the Registrable Securities held by it, and the intended method of disposition of
such securities as shall be reasonably requested by the Company or otherwise required to timely
effect the Registration of their Registrable Securities.

               (b) Upon the reasonable request of the Company, First Reserve shall inform the
Company what Registrable Securities other than Common Stock is owned by First Reserve.

          2.8. Rule 144 Reporting; S-3 Eligibility. With a view to making available
the benefits of certain rules and regulations of the SEC which may at any time permit the sale of
“Restricted Securities” (used herein as defined in Rule 144 under the Securities Act) to the public
without registration, and to be eligible to use Form S-3, the Company agrees to:

               (a) make and keep public information available, as those terms are understood and
defined in Rule 144 under the Securities Act, at all times during which the Company is subject to
the reporting requirements of the Exchange Act;

               (b) file with the SEC in a timely manner (including any permissible extensions under
Rule 12b-25 under the Exchange Act or any successor rule) all reports and other documents required
of the Company under the Securities Act and the Exchange Act (at all times during which the Company
is subject to such reporting requirements); and

               (c) so long as First Reserve owns any Restricted Securities, to furnish to First
Reserve forthwith upon request a written statement by the Company as to its compliance with the
reporting requirements of said Rule 144 and with regard to the Securities Act and the Exchange Act
(at all times during which the Company is subject to such reporting requirements), a copy of the
most recent annual or quarterly report of the Company, and such other reports and documents of the
Company and other information in the possession of or reasonably obtainable by the Company as First
Reserve may reasonably request in availing itself of any rule or regulation of the SEC allowing
First Reserve to sell any such securities without registration.

          2.9. Impact of Merger. In the event the Company merges with or into another
entity, the terms of this Section 2 shall apply to any equity received by First Reserve in
connection with the merger in exchange for the Common Stock or other Registrable Securities held by
First Reserve immediately prior to the consummation of the merger.

14

 

     3. ASSIGNMENT, AMENDMENT AND TERMINATION.

          3.1. Assignment. Notwithstanding anything herein to the contrary:

               (a) Registration Rights. The registration rights of First Reserve under
Section 2 of this Agreement may be assigned in connection with any Transfers made by First Reserve;
provided, however, that no party may be assigned any of the foregoing rights unless
(i) the Company is given written notice by the assigning party at the time of such assignment
stating the name and address (which shall be deemed the address for notice until changed in
accordance with Section 5.1) of the assignee and identifying the securities of the Company as to
which the rights in question are being assigned and (ii) any such assignee shall have agreed to be
subject to all the terms and conditions of this Agreement, including without limitation the
provisions of Section 2 and this Section 3. Any assignment not made in accordance with the
foregoing terms shall not be effective.

               (b) Management and Information Rights. The management rights under Section
1 of this Agreement and information rights under Section 2.8(c) of this Agreement may be assigned
by First Reserve to another FRC Affiliate, but may not otherwise be assigned.

          3.2. Amendment of Rights. This Agreement may be amended only by a written
instrument signed by each of the parties hereto. If either party fails to enforce any of the
provisions of this Agreement or any rights or fails to exercise any election provided in this
Agreement, it will not be considered to be a waiver of those provisions, rights or elections or in
any way affect the validity of this Agreement. The failure of any party to exercise any of these
provisions, rights or elections will not preclude or prejudice such party from later enforcing or
exercising the same or any other provision, right or election which it may have under this
Agreement.

     4. LEGEND.

          Each certificate representing shares of capital stock of the Company now or hereafter owned by
a First Reserve shall be endorsed with the following legend, to the extent so required by the
Securities Act or any applicable securities law:

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE. THESE
SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE AND MAY NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND THE APPLICABLE STATE
SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION THEREFROM. STOCKHOLDERS
SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS
INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER OF THESE SECURITIES MAY
REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE ISSUER TO
THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS IN COMPLIANCE WITH THE ACT AND
ANY APPLICABLE STATE SECURITIES LAWS.

     5. GENERAL PROVISIONS.

          5.1. Notices. Except as may be otherwise provided herein, all notices,
requests, waivers and other communications made pursuant to this Agreement shall be in writing and
shall be conclusively deemed to have been duly given (a) when hand delivered to the other party;
(b) when received when sent

15

 

by facsimile at the address and number set forth below; (c) three (3) business days after
deposit in the U.S. mail with first class or certified mail receipt requested postage prepaid and
addressed to the parties as set forth below; or (d) the next business day after deposit with a
national overnight delivery service, postage prepaid, addressed to the parties as set forth below
with next-business-day delivery guaranteed, provided that the sending party receives a
confirmation of delivery from the delivery service provider.

To First Reserve:

FR X Chart Holdings, LLC

c/o First Reserve Corporation

600 Travis, Suite 6000

Houston, TX 77002

Attn: Timothy Day

Fax: (713) 437-5146

With a copy to:

First Reserve Corporation

One Lafayette Place

Greenwich, CT 06830

Attn: Thomas R. Denison

Fax Number: (203) 661-6729

and a copy to:

Simpson Thacher & Bartlett LLP

425 Lexington Avenue

New York, NY 10017

Attn: Patrick J. Naughton

Fax: (212) 455-2502

To the Company:

Chart Industries, Inc.

One Infinity Corporate Centre Drive, Suite 300

Garfield Heights, Ohio 44125

Attn: Chief Financial Officer and Secretary

Fax: (440) 753-1491

          Each person making a communication hereunder by facsimile shall promptly confirm by telephone
to the person to whom such communication was addressed each communication made by it by facsimile
pursuant hereto but the absence of such confirmation shall not affect the validity of any such
communication. A party may change or supplement the addresses given above, or designate additional
addresses, for purposes of this Section 5.1 by giving the other parties written notice of the new
address in the manner set forth above.

          5.2. Entire Agreement; Interpretation; Termination of Prior Agreements.
This Agreement contains the entire agreement and understanding of the parties with respect to the
subject matter hereof and supersedes any and all prior negotiations, correspondence, agreements,
understandings, duties or obligations between the parties respecting the subject matter of this
Agreement.

16

 

          5.3. Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
EXCLUSIVELY IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, EXCLUDING THAT BODY OF
LAW RELATING TO CONFLICT OF LAWS AND CHOICE OF LAW.

          5.4. Severability. If one or more provisions of this Agreement are held to
be unenforceable under applicable law, then such provision(s) shall be excluded from this Agreement
and the balance of this Agreement shall be interpreted as if such provision(s) were so excluded and
shall be enforceable in accordance with its terms.

          5.5. Third Parties. Nothing in this Agreement, express or implied, is
intended to confer upon any person, other than the parties hereto and their permitted successors
and assigns, any rights or remedies under or by reason of this Agreement.

          5.6. Successors and Assigns. Subject to the provisions of Section 3.1, the
provisions of this Agreement shall inure to the benefit of, and shall be binding upon, the
successors and permitted assigns of the parties hereto.

          5.7. Captions. The captions to sections of this Agreement have been
inserted for identification and reference purposes only and shall not be used to construe or
interpret this Agreement.

          5.8. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Facsimile signatures to this Agreement shall be valid for all purposes.

          5.9. Arbitration. Any controversy, dispute, or claim arising out of, in
connection with, or in relation to, the interpretation, performance or breach of this Agreement,
including, without limitation, the validity, scope, and enforceability of this section, may at the
election of any party, be solely and finally settled by arbitration conducted in New York, New
York, by and in accordance with the then existing rules for commercial arbitration of the American
Arbitration Association, or any successor organization and with the Expedited Procedures thereof
(collectively, the “Rules”). Each of the parties hereto agrees that such arbitration shall
be conducted by a single arbitrator selected in accordance with the Rules; provided that such
arbitrator shall be experienced in deciding cases concerning the matter which is the subject of the
dispute. Either party may demand arbitration by written notice to the other and to the Arbitrator
set forth in this Section 5.9 (“Demand for Arbitration”). Each of the parties agrees that
if possible, the award shall be made in writing no more than 30 days following the end of the
proceeding. Any award rendered by the arbitrator(s) shall be final and binding and judgment may be
entered on it in any court of competent jurisdiction. Each of the parties hereto agrees to treat
as confidential the results of any arbitration (including, without limitation, any findings of fact
and/or law made by the arbitrator) and not to disclose such results to any unauthorized person,
except as required by law. The parties intend that this agreement to arbitrate be valid,
enforceable and irrevocable. In the event of any arbitration with regard to this Agreement, each
party shall pay its own legal fees and expenses, provided, however, that the parties agree to share
the cost of the Arbitrator’s fees.

          5.10. Jurisdiction. Except as set forth in Section 5.9, the parties hereby
irrevocably submit and consent to the nonexclusive jurisdiction of the State and Federal Courts
located in the State of New York with respect to any action or proceeding arising out of this
Agreement or any matter arising therefrom or relating thereto. In any such action or proceeding,
each of the parties waives personal service of the summons and complaint or other process and
papers therein and agrees that the service thereof may be made by mail directed to such party at
the address provided herein, service to be deemed complete seven (7) days after mailing, or as
permitted under the rules of either of said courts.

17

 

[Signature Page Follows]

18

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date and year
first above written.

	 	 	 	 	 	 	 
	CHART INDUSTRIES, INC.	 	FR X CHART HOLDINGS, LLC
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	Title:

	 	 	 	Title:	 	 

[Signature Page to Stockholder Agreement]EX-10.16

 

Exhibit 10.16

AMENDED AND RESTATED

CHART INDUSTRIES, INC.

2005 STOCK INCENTIVE PLAN

     This Amended and Restated Chart Industries, Inc. 2005 Stock Incentive Plan, initially approved
by the Board of Directors of Chart Industries, Inc. on November 23, 2005 and amended on March 23,
2006, is hereby amended and restated in its entirety as follows:

1. Purpose of the Plan

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

2. Definitions

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

	 	(a)	 	Act: The Securities Exchange Act of 1934, as amended,
or any successor thereto.
	 
	 	(b)	 	Affiliate: With respect to any entity, any entity
directly or indirectly controlling, controlled by, or under common control
with, such entity.
	 
	 	(c)	 	Award: An Option, Stock Appreciation Right or Other
Stock-Based Award granted pursuant to the Plan.
	 
	 	(d)	 	Beneficial Owner: A “beneficial owner”, as such term
is defined in Rule 13d-3 under the Act (or any successor rule thereto).
	 
	 	(e)	 	Board: The Board of Directors of the Company.
	 
	 	(f)	 	Change in Control: The occurrence of 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,

 

2

	 	 	 	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.

	 	(g)	 	Code: The Internal Revenue Code of 1986, as amended,
or any successor thereto.
	 
	 	(h)	 	Committee: The Board or any person or persons
designated by the Board to administer the Plan.
	 
	 	(i)	 	Company: Chart Industries, Inc., a Delaware
corporation.
	 
	 	(j)	 	Disability: Inability of a Participant to perform in
all material respects his duties and responsibilities to the Company, or any
Subsidiary of the Company, by reason of a physical or mental disability or
infirmity which inability is reasonably expected to be permanent and has
continued for a period of six consecutive months or for an aggregate of nine
(9) months in any twenty-four (24) consecutive month period. Any question as
to the existence of the Disability of a Participant as to which the Participant
and the Company cannot agree shall be determined in writing by a qualified
independent physician mutually acceptable to the Participant and the Company.
If the Participant and the Company cannot agree as to a qualified independent
physician, each shall appoint such a physician and those two physicians shall
select a third who shall make such determination in writing. The determination
of Disability made in writing to the Company and the Participant shall be final
and conclusive for all purposes of the Plan and any Award agreement.
	 
	 	(k)	 	Employment: The term “Employment” as used herein shall
be deemed to refer to (i) a Participant’s employment if the Participant is an
employee of the Company or any of its Affiliates, (ii) a Participant’s services
as a consultant, if the Participant is a consultant to the Company or its
Affiliates and (iii) a Participant’s services as a non-employee director, if
the Participant is a non-employee member of the Board.
	 
	 	(l)	 	Fair Market Value: On a given date, (i) if there is a
public market for the Shares on such date, the arithmetic mean of the high and
low prices of the Shares as reported on such date on the Composite Tape of the
principal national securities exchange on which such Shares are listed or
admitted to trading, or, if the Shares are not listed or admitted on any
national securities exchange, the arithmetic mean of the per Share closing bid
price and the per Share closing asked price on such date as quoted on the
National Association of Securities Dealers Automated Quotation System (or such
market in which such prices are regularly quoted) (the

 

3

	 	 	 	“NASDAQ”), or if no sale of Shares shall have been reported on the Composite
Tape of any national securities exchange or quoted on NASDAQ on such date,
then the immediately preceding date on which sales of the Shares have been
so reported or quoted shall be used, and (ii) if there is no public market
for the Shares on such date, the Fair Market Value shall be the fair market
value of the Shares as determined in good faith by the Board assuming a
hypothetical liquidation of the Company or the sale of the Company to a
third party; provided that if the Participant disagrees with the
Board’s determination, he may require the Company to retain an independent
investment banker to determine the fair market value. The Company will bear
the cost of such appraisal, unless the appraised value is 110% or less of
the Board’s determination of the fair market value, in which case the
Participant will bear the cost of such appraisal.

	 	(m)	 	Other Stock-Based Awards: Awards granted pursuant to
Section 8 of the Plan.
	 
	 	(n)	 	Option: A stock option granted pursuant to Section 6
of the Plan.
	 
	 	(o)	 	Option Price: The purchase price per Share of an
Option, as determined pursuant to Section 6(a) of the Plan.
	 
	 	(p)	 	Participant: An employee, director or consultant of
the Company or its Affiliates who is selected by the Committee to participate
in the Plan; provided however that, if the Shares issuable under this Plan are
registered under the Securities Act of 1933, as amended on a Registration
Statement on Form S-8 (or any successor form), then consultants may be
Participants only to the extent Shares issuable hereunder may be registered on
Form S-8 (or any successor form).
	 
	 	(q)	 	Permitted Holder: As of the date of determination, any
and all of (i) an employee benefit plan (or trust forming a part thereof)
maintained by (A) the Company or its Affiliates or (B) any corporation or other
Person of which a majority of its voting power of its voting equity securities
or equity interest is owned, directly or indirectly, by the Company and (ii)
First Reserve Fund X, L.P. or any of its Affiliates.
	 
	 	(r)	 	Person: A “person”, as such term is used for purposes
of Section 13(d) or 14(d) of the Act (or any successor section thereto).
	 
	 	(s)	 	Plan: The Amended and Restated Chart Industries, Inc.
2005 Stock Incentive Plan.
	 
	 	(t)	 	Shares: Shares of common stock of the Company.
	 
	 	(u)	 	Stock Appreciation Right: A stock appreciation right
granted pursuant to Section 7 of the Plan.

 

4

	 	(v)	 	Subsidiary: A subsidiary corporation, as defined in
Section 424(f) of the Code (or any successor section thereto).

3. Shares Subject to the Plan

     The total number of Shares which may be issued under the Plan is 3,421,030. The Shares may
consist, in whole or in part, of unissued Shares or treasury Shares. The issuance of Shares or the
payment of cash upon the exercise of an Award or in consideration of the cancellation or
termination of an Award shall reduce the total number of Shares available under the Plan, as
applicable. Shares which are subject to Awards or portions of Awards which terminate or lapse
without issuance of Shares may be granted again under the Plan.

4. Administration

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

     5. Limitations

 

5

     (a) No Award may be granted under the Plan after the tenth anniversary of the effective date
of the Plan, but Awards theretofore granted may extend beyond that date.

     (b) Subject to Section 9, neither the Option Price of an Option nor the exercise price of a
Stock Appreciation Right may be reduced after the date of grant.

6. Terms and Conditions of Options

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

	 	(a)	 	Option Price. Subject to Section 4, the Option Price
per Share shall be equal to the Fair Market Value on the applicable date of
grant.
	 
	 	(b)	 	Exercisability. Options granted under the Plan shall
be exercisable at such time and upon such terms and conditions as may be
determined by the Committee, but in no event shall an Option be exercisable
more than ten years after the date it is granted.
	 
	 	(c)	 	Exercise of Options. Except as otherwise provided in
the Plan or in an Award agreement, an Option may be exercised for all, or from
time to time any part, of the Shares for which it is then exercisable. For
purposes of Section 6 of the Plan, the exercise date of an Option shall be the
later of the date a notice of exercise is received by the Company and, if
applicable, the date payment is received by the Company pursuant to clauses
(i), (ii), (iii) or (iv) in the following sentence. The purchase price for the
Shares as to which an Option is exercised shall be paid to the Company in full
at the time of exercise at the election of the Participant (i) in cash or its
equivalent (e.g., by check), (ii) to the extent permitted by the Committee, in
Shares having a Fair Market Value equal to the aggregate Option Price for the
Shares being purchased and satisfying such other requirements as may be imposed
by the Committee; provided, that such Shares have been held by the Participant
for more than six months (or such other period as established from time to time
by the Committee in order to avoid adverse accounting treatment applying
generally accepted accounting principles), (iii) partly in cash and, to the
extent permitted by the Committee, partly in such Shares, (iv) if there is a
public market for the Shares at such time, to the extent permitted by, and
subject to such rules as may be established by the Committee, through the
delivery of irrevocable instructions to a broker to sell Shares obtained upon
the exercise of the Option and to deliver promptly to the Company an amount out
of the proceeds of such sale equal to the aggregate Option Price for the Shares
being purchased, or (v) through such cashless exercise procedures (including
surrender of a portion of the Option in payment of the Option Price) as the
Committee may permit. Except with respect to an adjustment pursuant to Section
9 of

 

6

	 	 	 	the Plan, no Participant shall have any rights to dividends or other rights
of a stockholder with respect to Shares subject to an Option until the
Participant has given written notice of exercise of the Option, paid in full
for such Shares and, if applicable, has satisfied any other conditions
imposed by the Committee pursuant to the Plan.

	 	(d)	 	Attestation. Wherever in this Plan or any agreement
evidencing an Award a Participant is permitted to pay the Option Price of an
Option or taxes relating to the exercise of an Option by delivering Shares, the
Participant may, subject to procedures satisfactory to the Committee, satisfy
such delivery requirement by presenting proof of beneficial ownership of such
Shares, in which case the Company shall treat the Option as exercised without
further payment and shall withhold such number of Shares from the Shares
acquired by the exercise of the Option.

7. Terms and Conditions of Stock Appreciation Rights

	 	(a)	 	Grants. The Committee also may grant (i) a Stock
Appreciation Right independent of an Option or (ii) a Stock Appreciation Right
in connection with an Option, or a portion thereof. A Stock Appreciation Right
granted pursuant to clause (ii) of the preceding sentence (A) may be granted at
the time the related Option is granted or at any time prior to the exercise or
cancellation of the related Option, (B) shall cover the same number of Shares
covered by an Option (or such lesser number of Shares as the Committee may
determine) and (C) shall be subject to the same terms and conditions as such
Option except for such additional limitations as are contemplated by this
Section 7 (or such additional limitations as may be included in an Award
agreement).
	 
	 	(b)	 	Terms. The exercise price per Share of a Stock
Appreciation Right shall be an amount determined by the Committee but in no
event shall such amount be less than the greater of (i) the Fair Market Value
of a Share on the date the Stock Appreciation Right is granted or, in the case
of a Stock Appreciation Right granted in conjunction with an Option, or a
portion thereof, the Option Price of the related Option and (ii) the minimum
amount permitted by applicable laws, rules, by-laws or policies of regulatory
authorities or stock exchanges. Each Stock Appreciation Right granted
independent of an Option shall entitle a Participant upon exercise to an amount
equal to (i) the excess of (A) the Fair Market Value on the exercise date of
one Share over (B) the exercise price per Share, times (ii) the number of
Shares covered by the Stock Appreciation Right. Each Stock Appreciation Right
granted in conjunction with an Option, or a portion thereof, shall entitle a
Participant to surrender to the Company the unexercised Option, or any portion
thereof, and to receive from the Company in exchange therefor an amount equal
to (i) the excess of (A) the Fair Market Value on the exercise date of one
Share over (B) the Option Price per Share, times (ii) the number of Shares
covered by the Option, or portion thereof, which is surrendered. The date a
notice of exercise is

 

7

	 	 	 	received by the Company shall be the exercise date. Payment to the
Participant shall be made in Shares or in cash, or partly in Shares and
partly in cash (any such Shares valued at such Fair Market Value), all as
shall be determined by the Committee. Stock Appreciation Rights may be
exercised from time to time upon actual receipt by the Company of written
notice of exercise stating the number of Shares with respect to which the
Stock Appreciation Right is being exercised. No fractional Shares will be
issued in payment for Stock Appreciation Rights, but instead cash will be
paid for a fraction or, if the Committee should so determine, the number of
Shares will be rounded downward to the next whole Share.

	 	(c)	 	Limitations. The Committee may impose, in its
discretion, such conditions upon the exercisability or transferability of Stock
Appreciation Rights as it may deem fit.

8. Other Stock-Based Awards

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

9. Adjustments Upon Certain Events

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

	 	(a)	 	Generally. In the event of any change in the
outstanding Shares after the effective date of the Plan by reason of any Share
dividend or split, reorganization, recapitalization, merger, consolidation,
spin-off, combination, combination or transaction or exchange of Shares or
other corporate exchange, or any distribution to shareholders other than
regular cash dividends or any transaction similar to the foregoing, the
Committee

 

8

	 	 	 	shall make such substitution or adjustment, if any, as it deems to be
equitable, as to (i) the number or kind of Shares or other securities issued
or reserved for issuance pursuant to the Plan or pursuant to outstanding
Awards, (ii) the Option Price or exercise price of any Award and/or (iii)
any other affected terms of such Awards.

	 	(b)	 	Change in Control. In the event of a Change in Control
after the effective date of the Plan, (i) if determined by the Committee in the
applicable Award agreement or otherwise, any outstanding Awards then held by
Participants which are unexercisable or otherwise unvested or subject to lapse
restrictions may automatically be deemed exercisable or otherwise vested or no
longer subject to lapse restrictions, as the case may be, as of immediately
prior to such Change in Control and (ii) the Committee may, but shall not be
obligated to, (A) cancel such Awards for fair value, to the extent permitted
under Section 409A of the Code, which, in the case of Options and Stock
Appreciation Rights, may equal the excess, if any, of value of the
consideration to be paid in the Change in Control transaction to holders of the
same number of Shares subject to such Options or Stock Appreciation Rights (or,
if no consideration is paid in any such transaction, the Fair Market Value of
the Shares subject to such Options or Stock Appreciation Rights) over the
aggregate Option Price or exercise price of such Options or Stock Appreciation
Rights or (B) provide for the issuance of substitute Awards that will
substantially preserve the otherwise applicable terms and value of any affected
Awards previously granted hereunder as determined by the Committee or (C)
provide that for a period of at least 15 days prior to the Change in Control,
such Awards shall be exercisable, to the extent applicable, as to all Shares
subject thereto and the Committee may further provide that upon the occurrence
of the Change in Control, such Awards shall terminate and be of no further
force and effect.

10. No Right to Employment or Awards

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

11. Certificates

     All certificates, if any, evidencing Shares or other securities of the Company delivered under
the Plan pursuant to any Award or the exercise thereof shall be subject to such stop transfer
orders and other restrictions as the Committee may deem advisable under the Plan or the rules,
regulations, and other requirements of the Securities and Exchange Commission or

 

9

other applicable governmental authority, any stock exchange or market upon which such
securities are then listed, admitted or quoted, as applicable, and any applicable Federal, state or
any other applicable laws, and the Committee may cause a legend or legends to be put on any such
certificates to make appropriate reference to such restrictions.

12. Other Laws

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

13. Successors and Assigns

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

14. Nontransferability of Awards

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

15. Amendments or Termination

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

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

 

10

such regulations or other guidance that may be issued after the effective date of the Plan.
Notwithstanding any provision of the Plan to the contrary, in the event that the Committee
determines that any amounts payable hereunder will be taxable to a Participant under Section 409A
of the Code and related Department of Treasury guidance prior to payment to such Participant of
such amount, the Company may (a) adopt such amendments to the Plan and Awards and appropriate
policies and procedures, including amendments and policies with retroactive effect, that the
Committee determines necessary or appropriate to preserve the intended tax treatment of the
benefits provided by the Plan and Awards hereunder and/or (b) take such other actions as the
Committee determines necessary or appropriate to comply with the requirements of Section 409A of
the Code.

16. International Participants

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

17. Choice of Law

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

18. Effectiveness of the Plan

     The effective date of this Plan was November 23, 2005; provided, however, that the amendments
and modifications contained herein are effective upon the later of (i) the date upon which the Plan
is approved by the Board and (ii) the date on which the Company’s shareholders approve the Plan.

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