Document:

exv10w10

 

EXHIBIT 10.10

ORION ENERGY SYSTEMS, LTD.

STOCK OPTION AGREEMENT

               THIS AGREEMENT (the “Agreement”), is entered into as of this _________day of ___, 20___by
ORION ENERGY SYSTEMS, LTD., a Wisconsin corporation (the “Company”), with _________(the
“Participant”).

               WHEREAS, the Company has adopted the 2004 Equity Incentive Plan (the “Plan”), which Plan, as
it may hereafter be amended and continued, is incorporated herein by reference and made part of
this Agreement.

               WHEREAS, the Committee, which is charged with the administration of the Plan pursuant to
Section 4 thereof, has determined that it would be to the advantage and in the best interest of the
Company to grant the option provided for herein to the Participant as an inducement to remain in
the service of the Company or one of its subsidiaries, and as an incentive for increased efforts
during such service.

               NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

     1. The Company, with the approval of the Committee, hereby grants to the Participant as of the
date hereof an option (the “Option”) to purchase all or any part of _________(___) shares of
Common Stock of the Company, no par value, at a price per share of $___, which price is not less
than the fair market value of a share of Common Stock on the date hereof. This Option shall expire
at the close of business on _________, 20___(the “Expiration Date”).

     2. Vesting. The Option shall vest and become exercisable by Participant according to
the following schedule, provided Participant is an employee of the Company on the applicable
vesting date:

	 	 	 
	Number of Optioned Shares Vested	 	Vesting Date
	___% of the Optioned Shares

	 	___anniversary of the date hereof
	___% of the Optioned Shares

	 	___anniversary of the date hereof
	___% of the Optioned Shares

	 	___anniversary of the date hereof
	___% of the Optioned Shares

	 	___anniversary of the date hereof
	___% of the Optioned Shares

	 	___anniversary of the date hereof

provided, however, that the foregoing is subject to the following:

 

 

     a. Except as provided hereinbelow, the Option may not be exercised unless the
Participant is then an employee (including directors and officers who are employees),
director, consultant, advisor, agent or independent representative of the Company or any
subsidiary of the Company or any combination thereof and unless the Participant has remained
in the continuous employ or service thereof from the date of grant.

     b. This Option is designated as an incentive stock option (“ISO”) pursuant to the
Internal Revenue Code of 1986, as amended (the “Code”) and the regulations promulgated
thereunder.

     3. In the event that the employment or service of the Participant shall be terminated prior to
the Expiration Date (otherwise than by reason of death or disability), the Option may, subject to
the provisions of the Plan, be exercised (to the extent that the Participant was entitled to do so
at the termination of this employment or service) at any time within three months after such
termination, but not after the Expiration Date; provided, however, that if such termination shall
have been for cause or voluntarily by the Participant and without the consent of the Company or any
subsidiary corporation thereof, as the case may be (which consent shall be presumed in the case of
normal retirement), the Option and all rights of the Participant hereunder, to the extent not
theretofore exercised, shall forthwith terminate immediately upon such termination. Nothing in
this Agreement shall confer upon the Participant any right to continue in the employ or service of
the Company or any subsidiary of the Company or affect the right of the Company or any subsidiary
to terminate his employment or service at any time. For the purposes of this Agreement, “cause” is
defined to mean termination of employment as a result of: (i) the failure of the Participant to
perform or observe any of the terms or provisions of any written employment agreement between the
Participant and the Company, or, if no written employment agreement exists, the gross dereliction
of the Participant’s employment duties; (ii) the failure of the Participant to comply fully with
the lawful directives of the Board of Directors of the Company, or the officers or supervisory
employees to whom the Participant is reporting; (iii) dishonesty; (iv) misconduct; (v) conviction
of a crime involving moral turpitude; (vi) substance abuse; (vii) misappropriation of funds; (viii)
disloyalty or disparagement of the Company or its management or employees; or (ix) other proper
cause determined in good faith by the Board of Directors of the Company.

     4. If the Participant shall (a) die while he or she is employed by or serving the Company or a
corporation which is a subsidiary thereof or within three months after the termination of such
position (other than termination for cause, or voluntarily on his or her part and without the
consent of the Company or subsidiary corporation thereof, as the case may be, which consent shall
be presumed in the case of normal retirement), or (b) become permanently and totally disabled
within the meaning of Section 22(e)(3) of the Code, while employed by or serving any such company,
and if the Option was otherwise exercisable, immediately prior to the occurrence of such event,
then such Option may be exercised as set forth herein by the Participant or by the person or
persons to whom the Participant’s rights under the Option pass by will or applicable law, or if no
such person has such right, by his executors or administrators, at any time within one year after
the date of death of the original Participant, or one year after the date of permanent or total
disability, but in either case, not later than the Expiration Date.

2

 

     5. a. The Participant may exercise the Option with respect to all or part of the shares then
purchasable hereunder by giving the Company written notice in the form annexed, as provided in
paragraph 9 hereof, of such exercise, provided that a minimum of 100 shares are exercised. Such
notice shall specify the number of shares as to which the Option is being exercised and shall be
accompanied by payment in full in cash of an amount equal to the exercise price of such shares
multiplied by the number of shares as to which the Option is being exercised; provided, that if
permitted by the Board of Directors of the Company, the purchase price may be paid, in whole or in
part, by surrender or delivery to the Company of securities of the Company having a fair market
value on the date of the exercise equal to the portion of the purchase price being so paid. In
such event fair market value shall be determined pursuant to the definition of Fair Market Value
set forth in Section 2 of the Plan.

          b. Prior to or concurrently with delivery by the Company to the Participant of a
certificate(s) representing such shares, the Participant shall, upon notification of the amount
due, pay promptly any amount necessary to satisfy applicable federal, state or local tax
requirements. In the event such amount is not paid promptly, the Company shall have the right to
apply from the purchase price paid any taxes required by law to be withheld by the Company with
respect to such payment and the number of shares to be issued by the Company will be reduced
accordingly.

     6. Notwithstanding any other provision of the Plan, in the event of a change in the
outstanding Common Stock of the Company by reason of a dividend or other distribution (whether in
the form of cash, Stock, other securities or other property), recapitalization, stock split,
reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination,
repurchase or exchange of Stock or other securities of the Company, issuance of warrants or other
rights to purchase Stock or other securities of the Company, or other similar corporate transaction
or event that affects the Stock, the Committee may adjust the Plan or aggregate number of shares
and price per share subject to the Option.

     7. This Option shall, during the Participant’s lifetime, be exercisable only by him or her;
and neither this Option nor any right hereunder shall be transferable by him or her, by operation
of law or otherwise, except by will or by the laws of descent and distribution. In the event of
any attempt by the Participant to transfer, assign, pledge, hypothecate or otherwise dispose of
this Option or of any right hereunder, except as provided for herein, or in the event of the levy
or any attachment, execution or similar process upon the rights or interest hereby conferred, the
Company may terminate this Option by notice to the Participant and it shall thereupon become null
and void. Each Award granted under the Plan shall not be transferable other than by will or the
laws of descent and distribution, except that a Participant may, to the extent allowed by the
Administrator and in a manner specified by the Administrator (a) designate in writing a beneficiary
to exercise the Award after the Participant’s death; or (b) transfer any Award; provided, however,
that an incentive stock option may only be exercised by the Participant during the life of the
Participant, and may not be transferred other than by will or the laws of descent and distribution

     8. Neither the Participant nor in the event of his or her death, any person entitled to
exercise his or her rights, shall have any of the rights of a stockholder with respect to the
shares

3

 

subject to the Option until share certificates have been issued and registered in the name of
the Participant or his or her estate, as the case may be.

     9. Any notice to the Company provided for in this Agreement shall be addressed to the Company
in care of its General Counsel, Orion Energy Systems, Ltd., 1204 Pilgrim Road, Plymouth, Wisconsin,
53073, and any notice to the Participant shall be addressed to him or her at his address now on
file with the Company, or to such other address as either may last have designated to the other by
notice as provided herein. Any notice so addressed shall be deemed to be given on the second
business day after mailing, by registered or certified mail, at a post office or branch post office
within the United States or if sent by confirmed express delivery.

     10. In the event that any question or controversy shall arise with respect to the nature,
scope or extent of any one or more rights conferred by this Option, the determination by the
Committee (as constituted at the time of such determination) of the rights of the Participant shall
be conclusive, final and binding upon the Participant and upon any other person who shall assert
any right pursuant to this Option.

     11. The capitalized terms used without definition in this Agreement are used with the
definitions assigned to them in the Plan.

	 	 	 	 	 
	 	ORION ENERGY SYSTEMS, LTD.

 	 
	 	By:  	 	 
	 	 	Name:  	Neal R. Verfuerth 	 
	 	 	Title:  	President and CEO 	 
	 

ACCEPTED AND AGREED

 

4

 

FORM OF NOTICE OF EXERCISE

			
	TO:	 	                                        

Orion Energy Systems, Ltd.

1204 Pilgrim Road

Plymouth, WI 53073

               The undersigned hereby exercises his (her) option to purchase _________shares of Common
Stock of ORION ENERGY SYSTEMS, LTD. (the “Company”), as provided in the Stock Option Agreement
dated as of _________,
20___at $_________per share, a total of $_________, and makes payment
therefor as follows:

     a. To the extent of $____________of the purchase price, the undersigned hereby surrenders
to the Company certificates for shares of its Common Stock, which, valued at
$  per share, the fair market value thereof, equals such portion of the
purchase price.

     b. To the extent of the balance of the purchase price, the undersigned has enclosed a
certificate or bank check payable to the order of the Company for $____________.

               A stock certificate or certificate for the shares should be delivered in person or mailed to
the undersigned at the address shown below.

               The undersigned hereby represents and warrants that it is his/her present intention to acquire
and hold the aforesaid shares of Common Stock of the Company for his/her own account for
investment, and not with a view to the distribution of any thereof, and agrees that he/she will
make no sale, thereof, except in compliance with the applicable provisions of the Securities Act of
1933, as amended.

	 	 	 
	Name:
	 	 

	 	 	 

	 	 	 

	Signature:
	 	 

	 	 	 

	 	 	 

	Address:
	 	 

	 	 	 

	 	 	(please print legibly)

	 	 	 

	Dated:
	 	 

	 	 	 

5exv10w11

 

Exhibit
10.11

ORION ENERGY SYSTEMS, INC.

2004 STOCK AND INCENTIVE AWARDS PLAN

STOCK OPTION AWARD

[Name]

[Address]

You have been granted an option (your “Option”) to purchase shares of common stock (“Shares”) of
Orion Energy Systems, Inc. (the “Company”) under the Orion Energy Systems, Inc. 2004 Stock and
Incentive Awards Plan (the “Plan”) with the following terms and conditions:

	 	 	 
	Grant Date:

	 	                    , 20___
	 
	 	 
	Type of Option:

	 	[Nonqualified or Incentive Stock Option]
	 
	 	 
	Number of Option Shares:

	 	                                     
   
	 
	 	 
	Exercise Price per Share:

	 	U.S. $                    
	 
	 	 
	Vesting:

	 	                    percent (___%) of your Option will vest and become exercisable on each of
the
first                      anniversaries of the Grant Date, provided you remain in employment or
service during such period. Upon your termination of employment from, or cessation
of services to, the Company and its Affiliates, the unvested portion of your Option
will immediately terminate.
	Termination Date:

	 	Your Option expires at, and cannot be exercised after, the close of business at the
Company’s headquarters on the earliest to occur of:
	 
	 	 
	 

	 	•      The tenth (10th)
 anniversary of the Grant
Date;

	 
	 	 
	 

	 	•      One year after your termination of employment or service as a
result of death or disability (within the meaning of Code Section 22(e)(3)); or

	 
	 	 
	 

	 	•      90 days after your termination of employment or service for any
other reason, provided that if you die during this 90 day period, the exercise period
will be extended until one year after the date of your death.

	 
	 	 
	 

	 	If the date this Option terminates as specified above falls on a day on which the
stock market is not open for trading or on a date that you are prohibited by Company
policy (such as an insider trading policy) from exercising the Option, the
termination date shall be

 

 

	 	 	 
	 

	 	automatically extended to the first available trading day
following the original termination date, but not beyond the tenth (10th)
anniversary of the Grant Date.
	 
	 	 
	 

	 	Notwithstanding the above, your entire Option is terminated immediately if the
Company or an Affiliate terminates you for Cause (as defined below), or if your
employment or service is otherwise terminated at a time when you could be terminated
for Cause, or you voluntarily terminate without the Company’s prior consent.
	 
	 	 
	 

	 	For purposes of this Agreement, “Cause” means any of the following: (i) failure to
perform or observe any of the terms or provisions of any written employment agreement
with the Company or an Affiliate, or if no written employment agreement exists, the
gross dereliction of your employment duties; (ii) failure to comply fully with the
lawful directives of the Board of Directors of the Company; (iii) dishonesty; (iv)
misconduct; (v) conviction of a crime involving moral turpitude; (vi) substance
abuse; (vii) misappropriation of funds: (viii) disloyalty or disparagement of the
Company, and of its Affiliates, or any of their management or employees; or (ix)
other proper cause determined in good faith by the Committee.
	 
	 	 
	Manner of Exercise:

	 	You may exercise your Option only to the extent vested and only if it has not
terminated. To exercise your Option, you must complete the “Notice of Stock Option
Exercise” form provided by the Company and return it to the address indicated on the
form. The form will be effective when it is received by the Company, but exercise
will not be completed until you pay the total exercise price and all applicable
withholding taxes due as a result of the exercise to the Company.
	 
	 	 
	 

	 	If someone else wants to exercise your Option after your death, that person must
contact the Company and prove to the Company’s satisfaction that he or she is
entitled to do so.
	 
	 	 
	 

	 	Your ability to exercise your Option may be restricted by the Company if required by
applicable law.
	 
	 	 
	Restrictions on Resale:

	 	By accepting your Option, you agree not to sell any Shares acquired under your Option
at a time when applicable laws, Company policies or an agreement between the Company
and its underwriters prohibit a sale.

2

 

	 	 	 
	Restrictions on Transfer:

	 	During your lifetime, this Option is only exercisable by you. You may not transfer,
pledge or assign this Option, by operation of law or otherwise, except pursuant to
your will or the laws of descent and distribution. If you attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this Option, except as provided
above, or in the event this Option is subject to levy or attachment, execution or
similar process, the Company may terminate this Option by providing written notice to
you.
	 
	 	 
	Rescission of Exercise;
Disgorgement of Option
Gains:

	 	If you are terminated for Cause, or if you are not terminated for Cause but the
Committee later determines that you could have been terminated for Cause if all facts
had been known at that time, or if the Committee determines that, after your
termination of employment, you have violated the provisions of any non-competition,
non-solicitation, confidentiality or assignment of inventions agreement then in
effect, then your Option will terminate immediately on the date of such termination
or determination, as applicable, and the Committee may, in its sole and absolute
discretion, (i) rescind any notice of exercise submitted by you for which payment or
the issuance of Shares has not been completed, in which event any exercise price you
have tendered will be promptly returned to you or retained by the Company as an
offset as provided below, and/or (ii) notify you in writing within two (2) years
after exercise of all or any portion of the Option that any exercise made within the
one (1) year period prior to your termination or prior to your breach of any
non-competition, non-solicitation, confidentiality or assignment of inventions
agreement, is rescinded. Within ten (10) days after receiving such notice from the
Company, you shall pay to the Company the amount of any cash payment received, or the
value of any other gain realized, as a result of the rescinded exercise.
Notwithstanding the foregoing, the Company shall have the right to retain (as an
offset against any amounts due hereunder), the exercise price and withholding amount
tendered by you with respect to any rescinded exercise, and the Company shall have
the right to offset against any other amounts due from the Company to you the amount
owed by you hereunder.

3

 

	 	 	 
	Notice of Sale:

	 	If your Option is designated as an incentive stock option, you must promptly report
to the Secretary of the Company any disposition of the Shares acquired under your
Option that is made within two (2) years from the Grant Date or within twelve (12)
months from the date you acquired the Shares (the “Notice Period”). In addition, the
Company may, at any time during the Notice Period, place a legend or legends on any
certificate(s) for the Shares issued under your Option requesting the Company’s
transfer agent to notify the Company of any transfer of the Shares.
	 
	 	 
	Miscellaneous:

	 	•      As a condition of the granting of your Option, you agree, for
yourself and your legal representatives or guardians, that this Stock Option Award
shall be interpreted by the Committee and that any interpretation by the Committee of
the terms of this Stock Option Award or the Plan and any determination made by the
Committee pursuant to this Stock Option Award or the Plan shall be final, binding and
conclusive. Notwithstanding the foregoing, this Stock Option Award may not be
amended, and the Company may not take any other action the effect of which is, to
reduce the Exercise Price per Share other than (i) pursuant to Section 6.4 of the
Plan, and in accordance with Section 1.409A-1(b)(5)(v)(B) of the Treasury
Regulations, or (ii) in connection with a transaction which is considered the grant
of a new option for purposes of Section 409A of the Code, provided that the new
Exercise Price per Share is not less than Fair Market Value of a Share on the new
grant date.

	 
	 	 
	 

	 	•      As a condition of the granting of your Option, except as required
by law, you agree not to disclose information regarding the existence, terms, or
conditions of this Option to any person or entity whatsoever, including without
limitation any members of the media (including, but not limited to, print
journalists, newspapers, radio, television, cable, satellite programs, or Internet
media) or any Internet web page or “chat room,” or any other entity or person, with
the exception of your spouse, accountant, tax advisor, and/or attorneys. Any
violation of this provision may result in immediate and complete forfeiture of all
rights granted under this Option if so determined by the Committee.

	 
	 	 
	 

	 	•      This Stock Option Award may be executed in counterparts.

4

 

Your Option is granted under and governed by the terms and conditions of the Plan. Additional
provisions regarding your Option and definitions of capitalized terms used and not defined in your
Option can be found in the Plan.

BY SIGNING BELOW AND ACCEPTING THIS STOCK OPTION AWARD, YOU AGREE

TO ALL OF THE TERMS AND CONDITIONS DESCRIBED HEREIN AND IN THE PLAN.

YOU ALSO ACKNOWLEDGE RECEIPT OF THE PLAN.

	 	 	 
	 

	 	 
	Authorized Officer

	 	Optionee

5

 

ORION ENERGY SYSTEMS, INC.

NOTICE OF STOCK OPTION EXERCISE

Your completed form should be sent by mail or fax to:
                                       &n
bsp;. Phone:
                              Fax:
                                      &
nbsp;  . Incomplete forms may cause a delay
in processing your option exercise.

PART 1: OPTIONEE INFORMATION Please complete the following. PLEASE WRITE YOUR FULL LEGAL NAME
SINCE THIS NAME WILL BE ON YOUR STOCK CERTIFICATE.

	 	 	 
	Name:
	 	 
	 

	 	 

	 	 	 
	Street Address:
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	City:

	 	 	 	State:
	 	 	 	Zip Code:	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 

Work Phone #: (                    ) –
                     –
                     Home Phone #:
(                   ) –
                     –
                    

Social Security #:                      –
                     –
                    

PART 2: DESCRIPTION OF OPTION(S) BEING EXERCISED Please complete the following for each option
that you wish to exercise. For each option listed below, you must exercise at least 100
shares, unless you are exercising the entire remaining portion of an option.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Aggregate Exercise Price	 
	 	 	Type of	 	 	 	 	 	 	Number of	 	 	(multiply Exercise Price	 
	 	 	Option	 	 	 	 	 	 	Option	 	 	Per Share by number of	 
	 	 	(specify ISO	 	 	Exercise Price	 	 	Shares Being	 	 	Option Shares being	 
	Date of Grant	 	or NQSO)	 	 	Per Share	 	 	Purchased	 	 	purchased)	 
	 
	 	 	 	 	 	$	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	 	 	 	 	 	 	 	$	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	$	 	 	 	 	 	 	 	$	 	 

The Total Exercise Price for all of the options being exercised (as listed above) is: $
                    .

6

 

PART 3: METHOD OF PAYMENT OF OPTION EXERCISE PRICE Please select only one:

	o	 	Cash Exercise. I am enclosing a check or money order payable to “Orion Energy
Systems, Inc.” for the Total Exercise Price.
	 
	o	 	Cashless Exercise Through the Company. Please withhold a whole number of shares
otherwise deliverable to me upon exercise having a Fair Market Value equal to the Total
Exercise Price and issue the net number of shares to me. Any fractional share remaining
will be paid to me in cash.
	 
	o	 	Cashless Exercise Through a Broker-Dealer. I have requested through the broker
specified below to (select only one):

	 	o	 	Sell to Cover. Sell or margin only enough of the option(s)
being exercised to cover the Total Exercise Price (and tax withholding, if elected in Part
5), deliver the sale or margin loan proceeds directly to Orion Energy Systems, Inc., and
deposit the remaining shares and any residual cash in my brokerage account.
	 
	 	o	 	Same-Day-Sale. Sell or margin all of the shares of common
stock issuable upon exercise of the option(s), deliver a portion of the sale or margin
loan proceeds directly to Orion Energy Systems, Inc. to pay the Total Exercise Price (and
tax withholding, if elected in Part 5), and deposit any remaining cash proceeds in my
brokerage account.

      Sale Price*:                      Sale Date*:
                                        

 

* The sale price and sale date are required in order to execute the cashless exercise.

	 	 	 
	      Broker-Dealer Name:
	 	 
	 

	 	 

	 	 	 
	     Contact Person:
	 	 
	 

	 	 

	 	 	 
	      DWAC – Depository Trust Company (DTC) #:
	 	 
	 

	 	 

	 	 	 
	      Brokerage Account #:
	 	 
	 

	 	 

      Broker Phone #: (                    ) –
                     –
                      
         Broker Fax #: (                    ) –
                     –
                    

It is your responsibility to contact a broker to open a brokerage account and sell your

stock option shares. Orion Energy Systems, Inc. WILL NOT send this form to your broker.

PART 4 CERTIFICATE MAILING INSTRUCTIONS Do not complete this portion if you elected a cashless
exercise through a broker-dealer. (Shares issued pursuant to a cashless exercise through a
broker-dealer will be automatically sent to your specified broker.) Also, complete this section
only if the certificate for the purchased shares is to be sent to a different address than
specified in Part 1.

The certificate for the purchased shares should be sent to the following address:

	 	 	 
	Street Address:
	 	 
	 

	 	 

	 	 	 	 	 	 	 	 	 	 	 
	City:

	 	 	 	State:
	 	 	 	Zip Code:	 	 
	 

	 	 
	 	 	 	 
	 	 	 	 

7

 

PART 5: METHOD OF SATISFYING TAX WITHHOLDING OBLIGATION Please select only one. You do not need
to complete this Part if you are exercising only incentive stock options (ISOs) or if you are a
non-employee director.

	o	 	Broker Exercise. I have elected to exercise my option(s)
through a broker in Part 3. The broker will sell sufficient shares to pay for the tax amount and will remit that amount
to Orion Energy Systems, Inc.
	 
	o	 	Cash. I am enclosing a check or money order payable to
“Orion Energy Systems, Inc.” for the withholding tax amount.
	 
	o	 	Withhold Shares. Please withhold a whole number of shares otherwise deliverable to me upon exercise having a
Fair Market Value equal to the minimum statutory tax that is
required to be withheld. Any fractional share remaining will
be paid to me in cash.

PART 6 ACKNOWLEDGEMENTS AND SIGNATURE

	1.	 	I understand that all sales of Orion’s common stock received upon exercise of this option are
subject to compliance with the company’s policy on securities trades.

	2.	 	I hereby acknowledge that I have read a copy of the prospectus describing the Orion Energy
Systems, Inc. plan under which the option(s) listed above were issued, and understand the tax
consequences of an exercise.

	3.	 	I understand that this notice cannot be revoked by me if I have selected a cashless exercise
through a broker-dealer. I personally guarantee that the Total Exercise Price and applicable
taxes will be paid to Orion Energy Systems, Inc. in full in the event the Company does not
receive the full amount from the Broker for any reason.

	 	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

* * * * * *

To be completed by Corporate Human Resource Department:

	 	 	 
	Received by:
	 	 
	 

	 	 

	 	 	 	 	 
	Date received:
	 	 	 	 
	 

	 	 

	 	 

8

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