Document:

EX-10.2

 Exhibit 10.2 
  

 
  
  

September 30, 2019 
 Mr. Dimitri Kazarinoff 

6046 Nottingham Pointe 
 Brighton MI 48116 

Dear Dimitri: 
 On behalf of XL Hybrids, Inc.
(“Company”) I am pleased to offer you a position as Chief Executive Officer (CEO), reporting to the Company’s Board of Directors. 
 Offer
Specifics: 
  

	 	•	 	 Start Date: October 7, 2019, or another mutually agreed upon date. 

 

	 	•	 	 Salary: You will initially receive a base salary of $325,000.00 annually, paid in accordance with Company
payroll policies. Your base salary will be reviewed on a periodic basis in accordance with Company practices. This role is eligible for the Company’s annual merit program. 

 

	 	•	 	 Executive Bonus: You will be eligible for an annual bonus of thirty (30) percent of your base salary
which, in 2019, will be based on mutually agreed upon and documented objectives developed between you and the XL Board of Directors. The bonus will typically pay out between 70%—130% based performance variables in these agreed objectives. Your
bonus for 2019 will be prorated and payable on or before March 15, 2020. You must be actively employed as of the date the bonus is earned and paid in order to be eligible for receipt of the bonus payment. 

 

	 	•	 	 Stock Options: Upon Board of Directors approval, you will be granted an option to purchase up to 5,030,400
shares (the “Option”) of the Company’s Common Stock, $0.0001 par value per share, with an exercise price equal to the fair market value of the Company’s Common Stock at the time of grant and pursuant to the Company’s 2010
Equity Incentive Plan. The calculation of timing with respect to vesting will commence immediately upon the grant approval by the Board of Directors. Full vesting will be achieved after four (4) years from grant
date.    In the event of a Company Change in Control (CIC), and provided that you have been actively employed by the Company for a period of at least two (2) years, the vesting of the options shall accelerate such that the
greater of the following shall become exercisable: (a) 50% of the remaining portion of the Options that are not then fully exercisable and (b) the portion of the Options that are not then fully exercisable which would have become exercisable in
due course during the one-year period following the CIC. 

  

	 	•	 	 Severance: Your employment may be terminated with or without cause, for any reason or no reason. In
the event that your employment is terminated without Cause after you have completed six (6) months of continuous employment as CEO of the Company, you will be entitled to a severance payment equal to six (6) months of your then-current
base salary (the “Severance Payment”) provided that you execute and do not subsequently revoke a waiver of claims in a form satisfactory to the Company. “Cause” will mean conduct by you which harms or would
reasonably be expected to harm the Company including commission of fraud, misappropriation of funds, misconduct in the performance of duties, material breach of any Company policy, failure to perform the duties of your position, commission of a
felony or any criminal act involving dishonesty or theft, or material noncompliance with applicable business and legal standards, including with respect to workplace discrimination or harassment. 

145 Newton St. Boston, MA 02135 P 617.648.8500 

 

 
  

	 	•	 	 Temporary Living: You will be eligible to receive normal and customary temporary living expenses through
December 31, 2019. Expenses shall be submitted utilizing the Company’s internal expense reporting system. 

  

	 	•	 	 Relocation: After sixty (60) days of employment, you will be eligible to receive up to fifty
(50) thousand dollars in relocation assistance. This relocation assistance is contingent upon you establishing residence in the Boston area within six (6) months from your date of hire. In the event of a voluntary resignation within one
(1) year after the relocation, all relocation funds are payable back to the Company. 

  

	 	•	 	 Health & Welfare Plans: You will be eligible to participate in all Company
Health & Welfare plans including but not limited to: Medical, Dental, Vision, Retirement Plan, Life and Disability Insurances 

  

	 	•	 	 Retirement Plan: Subject to pending Board action relating to amendment of its 401 (k) plan and policy, you
would be eligible for participation in this plan without the six (6) month service requirement.  

  

	 	•	 	 Paid Time Off: XLH has a PTO (Paid Time Off) policy by which each employee is afforded the
flexibility to take vacation, take time off for illness and shift schedules as necessary. The PTO plan is only available to full-time, exempt (salaried) employees. You do not “accrue” PTO days as in traditional plans, and so
will not be compensated for “unused” PTO time upon termination. 

  

	 	•	 	 Expenses: The Company shall reimburse you for all reasonable and appropriate travel, entertainment and
other expenses incurred or paid by you in connection with, or related to, the performance of your duties, in accordance with policies and procedures, and subject to limitations, adopted by the Company from time to time. 

 

	 	•	 	 Withholding: All payments made by the Company under this Agreement shall be reduced by any tax or other
amounts required to be withheld by the Company under applicable law. 

  

	 	•	 	 Conditions of Employment: Your compliance with the Immigration Reform and Control Act of 1986, which
requires employers to verify the employment eligibility and identity of new employees by requiring such employees to complete an Employment Eligibility Form I-9, which will be forwarded upon receipt of your
acceptance. Please complete and return it and the appropriate required documents listed on the form. 

  

	 	•	 	 Time: While employed, you will be required to devote your full business time and your best professional
efforts to the performance of your duties and responsibilities for the Company, and to abide by all Company policies and procedures in effect from time to time. All employees may be subject to promotion, transfer or reassignment from time to time,
as the Company determines appropriate 

  

	 	•	 	 Confidential Information and Restricted Activities: As a condition of your employment, you will be
required to sign the Company’s standard Employee Covenants Agreement (“Attachment A”), no later than the first day of your employment. 

  

	 	•	 	 Representations: You represent and warrant to XL Hybrids that your employment with the Company and
fulfillment of the duties of your position will not breach or be in conflict with any other agreement you have with any former employer or other person or entity. You also represent and warrant that you are not subject to any covenant against
competition or similar covenants, or any other legal obligation, that would restrict or otherwise affect the performance of your duties and responsibilities to the Company. You agree that you will not bring with you, disclose or use on behalf of the
Company any confidential or proprietary information of any former employer or other third party without that party’s consent. 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

	 	•	 	 At-Will Status of Employment: This letter and your response are
not meant to, and do not, constitute a contract of employment for a specific term. Your employment with the Company is at-will. This means that, if you accept this offer, both you and the Company will retain
the right to terminate your employment at any time, with or without notice or cause. 

 This letter and its attachments constitute the
entire offer for employment and the entire understanding between the parties regarding this offer for employment, and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this letter. No
modification to this offer letter will be effective unless in writing and signed by you and an authorized representative of XL Hybrids 
 By your acceptance
of this Offer Letter, you agree to abide by the rules, regulations, instructions, personnel practices and policies of the Company, if any, and any changes therein that may be adopted from time to time by the Company. 

Dimitri, our team is confident you possess the skills to help XL Hybrids be successful, and we look forward to you joining the team! 

Please confirm your acceptance of this offer by signing below and returning this letter to me no later than close of business on October 6, 2019. 

Yours truly, 
 /s/ Paul J. Crivello 

Paul J. Crivello 
 Director, Human Resources 

I have read and understand the terms of the offer set out above. As indicated by my signature below, I hereby accept this offer of employment and agree to the
terms and conditions described in this offer letter. By signing below, I agree that no further promises or commitments were made to me regarding my employment with the Company, except as set forth in this letter and any attachments hereto. 

Accepted: 
  

			
	/s/ Dimitri Kazarinoff	  	9/30/2019
	Dimitri Kazarinoff	  	Date

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

 ATTACHMENT A 

XL HYBRIDS, INC. 
 EMPLOYEE
COVENANTS AGREEMENT 
 In consideration of my employment and/or continued employment with XL Hybrids, Inc., its subsidiaries, affiliates, successors, or
assigns (collectively, the “Company”), and my receipt of any compensation now and/or hereafter paid to me by the Company, I have executed this Confidentiality and Covenants Agreement (this “Agreement”). 

I recognize and acknowledge that the Company is engaged in activities that involve, and continue to involve, the use of proprietary business plans, methods,
and technologies developed through the expenditure of substantial amounts of skill, time, and money. As a result of such investments, the Company has developed certain Trade Secrets and Confidential Information which give the Company significant
advantages over its competitors. Due to the nature of my employment with the Company, I may have frequent direct and indirect contact with various customers of the Company and may be presented with, have access to, and/or participate in the
development of Trade Secrets and Confidential Information. These constitute valuable, special, and unique assets of the Company, the misuse, misapplication, or disclosure of which contrary to the terms of this Agreement may cause substantial loss of
competitive advantage and substantial and possibly irreparable damage to the business and asset value of the Company. 
  

 

 

 1. DEFINITIONS. The following capitalized terms are select definitions used in this Agreement: 

(a) “Trade Secrets” shall have the definition provided in M.G.L. ch. 266, section 30(4) as modified from time to time. The current
definition includes, but is not limited to, anything tangible or intangible or electronically kept or stored, which constitutes, represents, evidences, or records a secret, whether scientific, technical, merchandising, production, or management
information, design, process, procedure, formula, invention, or improvement. Trade secrets may also consist of: (i) any formula, pattern, device, or compilation of information that is used in the Company’s business, and which gives it an
opportunity to obtain an advantage over competitors who do not know or use it; (ii) a formula for a chemical compound, a process of manufacturing, treating or preserving materials, a pattern for a machine or other device, or a list of
customers; or (iii) a process or device for

 
continuous use in the operation of the business, and generally relates to the production of goods or services. To the extent otherwise protectable as a Trade Secret, the Company’s Trade
Secrets include, but are not limited to, all of the Company’s knowledge regarding the research, development, manufacture, processing, marketing, distribution, operation, and sale of the Company’s vehicle modification technologies, systems,
and kits to improve fuel efficiency and emissions, and any other product or service offered by the Company during my employment with the Company. Trade Secrets also include anything described in this Section that the Company obtains from a third
party and which it treats as proprietary or designates as trade secret, whether or not owned or developed by the Company. 
 (b)
“Confidential Information” shall mean any data or information, other than Trade Secrets, which is of value to the Company, and is not generally known to competitors of the Company, whether written, fixed in other tangible form, or
committed to memory. To the extent consistent 

 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

 
with the foregoing, Confidential Information includes, but is not limited to, all information about the Company’s business and affairs, such as its executives, employees, and contractors,
product specifications, designs, processes, data, concepts, ideas, product descriptions, price lists, pricing policies, business methods, contracts and contractual relationships with customers and suppliers, customer and supplier lists, current and
anticipated customer requirements, current and planned distribution methods and processes, business plans, marketing plans and techniques, finances and financial projections, market studies, computer software and programs (including without
limitation object and source code), systems, structures and architectures, proprietary intellectual property (including without limitation, know-how, inventions, discoveries, patents, patent applications, and
patentable subject matter, and copyrighted materials). Confidential Information shall include, but not be limited to, all of the Company’s all of the Company’s knowledge regarding the research, development, manufacture, processing,
marketing, distribution, operation, and sale of the Company’s vehicle modification technologies, systems, and kits to improve fuel efficiency and emissions, and any other product or service offered by the Company during my employment with the
Company. Confidential Information also includes anything described in this Section that the Company obtains from a third party and which it treats as proprietary or designates as confidential information, whether or not owned or developed by the
Company. 
 (c) The terms “Confidential Information” and “Trade Secrets” shall not include any materials or
information to the extent that it: (i) is or becomes publicly known or generally utilized by others engaged in the same business or activities in which the Company utilized, developed, or otherwise acquired such information, other than as the
result of a breach of this Agreement; or (ii) is known to me prior to my employment with the Company, having been lawfully received from parties other than the Company.

 (d) “Inventions” shall mean all inventions, original works of authorship,
developments, concepts, improvements, designs, discoveries, ideas, trademarks or trade secrets, including, but not limited to, software, code, websites, algorithms, methods, content, packaging, surveys, reports, contributions to Company’s
proprietary business methods, marketing plans, and work product, whether or not patentable or registrable under copyright or similar laws, that I may solely or jointly conceive or develop or reduce to practice, or cause to be conceived or developed
or reduced to practice, during my employment with the Company. 
 2. NON-DISCLOSURE. 

(a) Trade Secrets. During the term of employment with the Company and after the termination thereof, whether such termination is at
the instance of the Company or me, I will not, except as expressly authorized or directed by the Company, use, copy, duplicate, transfer, transmit, disclose, or permit any unauthorized person access to any Trade Secrets of the Company, any of
Company’s customers, any of Company’s business partners or subcontractors, or any related third-party, so long as they remain Trade Secrets as described in this Agreement. 

(b) Confidential Information. During the term of employment with the Company and for three (3) years thereafter, whether such
termination is at the instance of the Company or me, I will not, except as expressly authorized or directed by the Company, use, copy, duplicate, transfer, transmit, disclose, or permit any unauthorized person access to any Confidential Information
of the Company, any of Company’s customers, any of Company’s business partners or subcontractors, or any related third-party 

(c) Return. Upon request of the Company and in any event upon the termination of employment

 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

 
with Company, I will deliver to the Company all memoranda, notes, records, tapes, documentation, disks, manuals, files or other documents, and all copies thereof in any form, concerning or
containing Trade Secrets, Confidential Information, or Inventions that are in my possession, whether made or compiled by me, furnished to me, or otherwise obtained by me. 

3. ASSIGNMENT AND RELATED COVENANTS. 

(a) Prior Inventions. 

(i) On Schedule A, I have provided a list describing all inventions, original works of authorship, developments, improvements, and trade
secrets that were made by me prior to my employment with the Company (collectively, the “Prior Inventions”), that belong to me, and which relate to the Company’s proposed business, products or research and development; or, if no such
list is attached, I represent that there are no such Prior Inventions. Under the heading “Assigned” on Schedule A, I have listed those Prior Inventions that are being assigned to the Company hereunder, if any (collectively, the
“Assigned Prior Inventions”). If applicable, under the heading “Not Assigned” on Schedule A, I have listed those Prior Inventions that are not being assigned to the Company hereunder, if any (collectively, the “Not
Assigned Prior Inventions”). I hereby assign to the Company, or its designee, all my right, title, and interest in and to any and all Assigned Prior Inventions, if any, without any further consideration therefor. I agree that I will not
incorporate, or permit to be incorporated, any Not Assigned Prior Inventions owned by me or in which I have an interest into a Company product, process, or machine without the Company’s prior written consent. Notwithstanding the foregoing
sentence, if, in the course of my employment with the Company, I incorporate into a Company product, process, or machine a Not Assigned Prior Invention owned by me or in which I have an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, worldwide license to make, have made,

 
modify, use, and sell such Prior Invention as part of or in connection with such product, process, or machine. 

(b) Inventions. I agree that I will promptly make full written disclosure to the Company, will hold in trust for the sole right and
benefit of the Company, and hereby assign to the Company, or its designee, all my right, title, and interest in and to any and all Inventions, without any further consideration therefor. I further acknowledge that all original works of authorship
that are made by me (solely or jointly with others) within the scope of and during the period of my employment with the Company and that are protectable by copyright are “works made for hire”, as that term is defined in the United States
Copyright Act. I understand and agree that the decision whether or not to commercialize or market any Invention developed by me solely or jointly with others is within the Company’s sole discretion and for the Company’s sole benefit and
that no royalty will be due to me as a result of the Company’s efforts to commercialize or market any such Invention. 
 (c)
Government Contracting. I agree to assign to the United States government all my right, title, and interest in and to any and all Assigned Prior Inventions and Inventions whenever such full title is required to be in the United States by a
contract between the Company and the United States or any of its agencies. 
 (d) Exceptions. I further understand that the
foregoing assignment obligations do not apply to any Invention that I have developed entirely on my own time without using the Company’s equipment, supplies, facilities, resources, trade Secrets, or confidential Information except for those
inventions that either: (A) relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably anticipated research or development of the Company; or (B) result from any
work that I performed for the Company. I will advise the Company promptly in writing of any inventions that I believe meet the foregoing criteria and not otherwise disclosed on Schedule A.

 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

 (e) Maintenance of Records. I agree to keep and maintain adequate and current written
records of the Assigned Prior Inventions and all Inventions made by me (solely or jointly with others) during the term of my employment with the Company. The records will be in the form of notes, sketches, drawings, and any other format that may be
specified by the Company. The records will be available to and remain the sole property of the Company at all times. 
 (f) Patent and
Copyright Registrations. I agree to assist the Company, or its designee, at the Company’s expense, in every proper way to secure the Company’s rights in the Assigned Prior Inventions and Inventions, and any copyrights, patents, mask
work rights, or other intellectual property rights relating thereto in any and all countries, including, but not limited to, the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications,
specifications, oaths, assignments, and all other instruments that the Company shall deem necessary in order to apply for and obtain such rights and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and
exclusive rights, title, and interest in and to such Inventions, and any copyrights, patents, mask work rights, or other intellectual property rights relating thereto. I further agree that my obligation to execute or cause to be executed, when it is
in my power to do so, any such instrument or papers shall continue after the termination of this Agreement. If the Company is unable because of my mental or physical incapacity or for any other reason to secure my signature to apply for or to pursue
any application for any United States or foreign patents or copyright registrations covering Assigned Prior Inventions or any Inventions, then I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents as my
agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any such applications and to do all other lawfully permitted acts to further the
prosecution and issuance

 
of letters patent or copyright registrations thereon with the same legal force and effect as if executed by me. 

4. REPRESENTATIONS AND WARRANTIES. 
 (a)
No Violation. I am not subject to any employment, non-disclosure, confidentiality, non-compete, employee covenants, or other agreement with any third party
(including, but not limited to, my former employer) that would prevent or prohibit me from fulfilling my duties for the Company. If am the subject of any such agreement, and have any doubt as to its applicability, I will provide a copy of such
agreement to the Company so that the Company can make a determination as to its effect on my ability to work for the Company. 
 (b)
Third-Party IP. I agree not to use or include in any of my Inventions any copyrighted, restricted, or protected code, specifications, concepts, trade secrets, or confidential information of any third party, or any other information which I
would be prohibited from using by any employment, non-disclosure, confidentiality, non-compete, employee covenants, or other agreement with any third party. If I am
unsure whether I may use or incorporate any third-party product or code or other work of any third party in any of my Inventions, I will check with the Company’s management and experts prior to such use or incorporation. 

5. GENERAL. 
 (a) Further
Assurances. I agree to execute any proper oath or verify any proper document required to carry out the terms of this Agreement. I have not entered into and agree not to enter into any oral or written agreement in conflict with this Agreement.

 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

 (b) Arbitration and Equitable Relief. 

(i) Arbitration. Except as provided in subsection (ii) below, I agree that any dispute, claim, or controversy concerning my employment
or the termination of my employment or any dispute, claim, or controversy arising out of or relating to any interpretation, construction, performance or breach of this Agreement, shall be settled by arbitration to be held in Boston, Massachusetts in
accordance with the rules then in effect of the American Arbitration Association. The arbitrator may grant injunctions or other relief in such dispute or controversy. The decision of the arbitrator shall be final, conclusive and binding on the
parties to the arbitration. Judgment may be entered on the arbitrator’s decision in any court having jurisdiction. The Company and I shall each pay one-half of the costs and expenses of such arbitration,
and each of us shall separately pay our counsel fees and expenses. 
 (ii) Equitable Remedies. I agree that it would be impossible
or inadequate to measure and calculate the Company’s damages from any breach or threatened breach of the covenants set forth in this Agreement. Accordingly, I agree that if I breach or threaten to breach this Agreement, the Company will have
available, in addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement.
I further agree that no bond or other security shall be required in obtaining such equitable relief and I hereby consent to the issuance of such injunction and to the ordering of specific performance. 

(c) Governing Law; Consent to Personal Jurisdiction. THIS AGREEMENT WILL BE GOVERNED BY THE LAWS OF THE COMMONWEALTH OF MASSACHUSETTS
WITHOUT REGARD FOR CONFLICTS OF LAWS PRINCIPLES. I HEREBY EXPRESSLY CONSENT TO THE

 
PERSONAL JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE COMMONWEALTH OF MASSACHUSETTS FOR ANY LAWSUIT FILED THERE AGAINST ME BY THE COMPANY ARISING FROM OR RELATING TO THIS
AGREEMENT. 
 (d) Effect. This Agreement shall be deemed effective at the earlier to occur of the commencement of my employment
relationship with the Company or upon my initial possession, knowledge, or acquisition of the Company’s Trade Secrets or Confidential Information. 

(e) Entire Agreement. This Agreement sets forth the entire agreement and understanding between the Company and me relating to the
subject matter herein and supersedes all prior discussions between us. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the party to be charged. 

(f) Severability. If one or more of the provisions in this Agreement are deemed void by law, then the remaining provisions will
continue in full force and effect. 
 (g) Successors and Assigns. This Agreement will be binding upon my heirs, executors,
administrators, and other legal representatives, and will be for the benefit of the Company, its successors, and its assigns. 
 (h)
Construction. The language used in this Agreement will be deemed the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against either party. 

(i) Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be enforceable, and all of which
together shall constitute one agreement. 

 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  

 
 6. EXPRESS ACKNOWLEDGEMENTS. I acknowledge and agree to each of the following items: 

(a) I understand that this Agreement is not intended to change my status as an employee-at-will, and I understand that either the Company or I may terminate my employment at any time with or without cause. 

(b) I am executing this Agreement voluntarily and without any duress or undue influence by the Company or anyone else. 

(c) I have carefully read this Agreement. I have asked any questions needed for me to understand the terms, consequences and binding effect
of this Agreement and fully understand them. 
 (d) I sought the advice of an attorney of my choice if I wanted to before signing this
Agreement. 
 (e) I understand that any acquirer, purchaser of all or substantially all of the assets of the Company, or other successor
or assign to the Company or its business will be relying on my covenants and representations warranties in this Agreement in agreeing to acquire or purchase the Company or its assets, and agree that this Agreement shall be enforceable by such
successor or assign. 

 

  
 145 Newton St. Boston, MA
02135 P 617.648.8500 

 

 
  
  

I have executed this Agreement on the date set forth below, to be deemed effective at the earlier to occur of the commencement of my employment relationship
with the Company or upon my initial possession, knowledge, or acquisition of any of the Company’s Trade Secrets or Confidential Information; provided, however, that if the latter date is vague or indeterminable, this Agreement shall be deemed
effective as of the commencement of my employment relationship with the Company. 
  

							
	 AGREED AND ACCEPTED:
	  	 ACKNOWLEDGED AND ACCEPTED:

		
	 Print Name:
	  	 “COMPANY”: XL HYBRIDS, INC.

				
	Signature:	  	 /s/ Dimitri Kazarinoff
	  	By:	  	/s/ Paul J. Crivello
		  	Dimitri Kazarinoff	  		  	Paul J. Crivello
				
	Date:	  	 9/30/2019
	  	Date:	  	 10/10/2019

 145 Newton St. Boston, MA 02135 P 617.648.8500EX-10.3

 Exhibit 10.3 
  

 
 XL HYBRIDS, INC. 

2010 EQUITY INCENTIVE PLAN 
  

 
  

 XL HYBRIDS, INC. 

2010 EQUITY INCENTIVE PLAN 
  

							
	 	 	TABLE OF CONTENTS	  	 	 
			
	 	 	 	  	Page	 
		
	 ARTICLE 1 – DEFINITIONS
	  	 	1	 
		
	 ARTICLE 2 – THE PLAN
	  	 	4	 
	 2.1
	 	Name	  	 	4	 
	 2.2
	 	Purpose	  	 	4	 
	 2.3
	 	Effective Date	  	 	4	 
	 2.4
	 	Stockholder Approval	  	 	5	 
		
	 ARTICLE 3 – PARTICIPANTS
	  	 	5	 
		
	 ARTICLE 4 – ADMINISTRATION
	  	 	5	 
	 4.1
	 	Duties and Powers of the Committee	  	 	5	 
	 4.2
	 	Interpretation; Rules	  	 	6	 
	 4.3
	 	No Liability	  	 	6	 
	 4.4
	 	Company Assistance	  	 	6	 
		
	 ARTICLE 5 – SHARES OF STOCK SUBJECT TO PLAN
	  	 	6	 
	 5.1
	 	Limitations	  	 	6	 
	 5.2
	 	Reissuance of Acquired Shares	  	 	6	 
		
	 ARTICLE 6 – OPTIONS
	  	 	6	 
	 6.1
	 	Types of Options Granted	  	 	6	 
	 6.2
	 	Option Grant and Agreement	  	 	7	 
	 6.3
	 	Optionee Limitation	  	 	7	 
	 6.4
	 	$100,000 Limitation	  	 	7	 
	 6.5
	 	Exercise Price	  	 	7	 
	 6.6
	 	Exercise Period	  	 	7	 
	 6.7
	 	Option Exercise	  	 	8	 
	 6.8
	 	Termination of Employment or Service	  	 	9	 
	 6.9
	 	Effect of Change in Control	  	 	9	 
	 6.10
	 	Assumption of Options by the Company	  	 	10	 
	 6.11
	 	Right of First Refusal	  	 	10	 
	 6.12
	 	Transfer Restrictions	  	 	10	 
		
	 ARTICLE 7 – RESTRICTED STOCK
	  	 	11	 
	 7.1
	 	Awards of Restricted Stock	  	 	11	 
	 7.2
	 	Lapse of Restrictions	  	 	11	 
	 7.3
	 	Termination of Employment or Service	  	 	11	 

							
	 7.4
	 	Effect of Change in Control	  	 	11	 
	 7.5
	 	Treatment of Dividends	  	 	12	 
	 7.6
	 	Delivery of Stock	  	 	12	 
	 7.7
	 	Right of First Refusal	  	 	12	 
	 7.8
	 	Transfer Restrictions	  	 	12	 
		
	 ARTICLE 8 – TERMINATION AND AMENDMENT
	  	 	12	 
	 8.1
	 	Termination and Amendment	  	 	12	 
	 8.2
	 	Effect on Grantee’s Rights	  	 	13	 
		
	 ARTICLE 9 – MISCELLANEOUS
	  	 	13	 
	 9.1
	 	Stock Certificates	  	 	13	 
	 9.2
	 	Relationship to Other Compensation Plans	  	 	13	 
	 9.3
	 	Replacement or Amended Grants	  	 	14	 
	 9.4
	 	Escrow; Pledge of Stock	  	 	14	 
	 9.5
	 	No Limitation on Future Actions	  	 	14	 
	 9.6
	 	Employment Rights	  	 	14	 
	 9.7
	 	Plan Binding on Successors	  	 	14	 
	 9.8
	 	Singular, Plural; Gender	  	 	14	 
	 9.9
	 	Headings	  	 	14	 
	 9.10
	 	Interpretation	  	 	15	 
		
	 EXHIBIT A (Sample Form of Stock Option Agreement)
	  	 	xvi	 
		
	 SCHEDULE A (Option Terms)
	  	 	xxii	 
		
	 SCHEDULE B (Notice of Exercise)
	  	 	xxiv	 
		
	 EXHIBIT B (Sample Form of Restricted Stock Agreement)
	  	 	xxv	 

 XL HYBRIDS, INC. 

2010 EQUITY INCENTIVE PLAN 

241,714 Shares of Common Stock 

Effective October         , 2010 

ARTICLE 1 
 DEFINITIONS

 As used in this Plan, the following terms have the following meanings unless the context clearly indicates to the contrary: 

“Applicable Laws” means the requirements relating to the administration of stock option and restricted stock plans under U.S.
state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or quotation system on which the Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options or Restricted Stock
are granted under this Plan. 
 “Award” means a grant of Restricted Stock. 

“Board” means the Board of Directors of the Company. 

“Cause” shall have the meaning as set forth in any Stock Option Agreement or Award. In the absence of a definition in any
such agreement, “Cause” shall mean: 
 (i) with respect to the Company or any Subsidiary that employs the recipient of an Award or
Option (the “recipient”) or for which such recipient primarily performs services, the commission by the recipient of an act of fraud, embezzlement, theft or proven dishonesty, or any other illegal act or practice (whether or not resulting
in criminal prosecution or conviction), or any act or practice that the Committee shall, in good faith, deem to have resulted in the recipient’s becoming un-bondable under the Company’s or the
Subsidiary’s fidelity bond; 
 (ii) the willful engaging by the recipient in misconduct that the Committee deems, in good faith, to be
materially injurious to the Company or any Subsidiary, monetarily or otherwise (including, but not limited to, improperly disclosing trade secrets or other confidential or sensitive business information and data about the Company or any
subsidiaries, competing with the Company or its subsidiaries, or soliciting employees, consultants or customers of the Company in violation of law or any employment or other agreement to which the recipient is a party); or 

(iii) the willful and continued failure or habitual neglect by the recipient to perform his or her duties with the Company or any Subsidiary
substantially in accordance with the operating and personnel policies and procedures of the Company or any Subsidiary generally applicable to all their employees and/or consultants. For purposes of this Plan, no act or failure to act by the
recipient shall be deemed “willful” unless done or omitted to be done by the recipient not in good faith and without reasonable belief that the recipient’s action or omission was in the best interest of the Company and/or any
Subsidiary. 
 Notwithstanding the foregoing, if the recipient has entered into an employment agreement that is binding as of the date of employment
termination, and if such employment agreement defines “Cause,” then the definition of “Cause” in such agreement shall apply to the recipient in this Plan. Whether “Cause” exists under either (i), (ii) or (iii) in
any particular circumstance shall be determined by the Committee. 

 “Change of Control” means any of the following: 

(a) a sale, lease, or other disposition of all or substantially all of the assets of the Company other than to a wholly-owned Subsidiary or a
parent entity which owns all of the outstanding shares of the Company; 
 (b) any consolidation or merger of the Company with or into
any other corporation or other entity or person or any other corporate reorganization, other than any such consolidation, merger, or reorganization in which the stockholders of the Company immediately prior to such consolidation, merger, or
reorganization continue to hold at least 50% of the voting power of the surviving entity in substantially the same proportions (or, if the surviving entity is a wholly-owned subsidiary, its parent) immediately after such consolidation, merger, or
reorganization; 
 (c) any transaction or series of related transactions to which the Company is a party in which in excess of 50% of
the Company’s voting power is transferred; provided, however, that that an “Acquisition” shall not include any transaction or series of transactions (y) principally for bona fide equity financing purposes in which cash is
received by the Company or any successor, or indebtedness of the Company is cancelled or converted or a combination thereof, and no pre-existing stockholder of the Company sells or transfers a material portion
of their shares in such transaction or (z) transferring voting power or equity ownership from a stockholder to such stockholder’s Affiliate(s), such that the total amount of equity ownership or voting power held by such stockholder and its
Affiliates shall in the aggregate be the same before and after the transaction; or 
 (d) a change in the composition of the Board occurring
within a two-year period, as a result of which fewer than a majority of the directors are Incumbent Directors. “Incumbent Directors” means directors who either (A) are Directors as of the
effective date of the Plan, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but will not include an individual
whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company). 

“Code” means the United States Internal Revenue Code of 1986, as amended, including effective date and transition rules
(whether or not codified). Any reference in this Plan to a specific section of the Code shall be deemed to include a reference to any corresponding provision of future law. 

“Committee” means the compensation committee of the Board, or any other committee of at least two (2) Directors
appointed from time to time by the Board having the duties and authority provided in this Plan in addition to any other authority granted by the Board. At any time that the Board shall not have appointed a committee as described above, any reference
in this Plan to the Committee means the Board. 
 “Company” means XL Hybrids, Inc., a Delaware corporation. 

“Consultant” means any person, including entities and advisors, engaged by the Company or a Parent or Subsidiary to render
services to such entity. 
 “Director” means a member of the Board. 

“Discount Option” means any option the Exercise Price of which is less than the Fair Market Value of the Stock on the date of
grant of such option. 
 “Domestic Relations Order” shall have the meaning provided in the Code or in the Employee
Retirement Income Security Act of 1974, or the rules and regulations promulgated under the Code or such Act. 

  
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 “Effective Date” means October , 2010. 

“Employee” means any person who is an employee (as defined in accordance with Section 3401(c) of the Code) of the
Company or any Subsidiary. An Officer or Director who meets the foregoing definition is an Employee. An Employee shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, any Subsidiary, or any successor. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient, by itself, to constitute “employment” by the Company.

 “Exchange Act” means the Securities Exchange Act of 1934, as amended. Any reference in this Plan to a specific section
of the Exchange Act shall be deemed to include a reference to any corresponding provision of future law. 
 “Exercise
Price” means the price at which an Optionee may purchase a share of Stock under a Stock Option Agreement. 
 “Fair Market
Value” means, as of any date, the value of a share of Stock determined by the Committee in compliance with Section 409A of the Code or in the case of an Incentive Stock Option, in compliance with Section 422 of the Code. 

“Grantee” means a person who is an Optionee or a person who has received an Award of Restricted Stock. 

“Incentive Stock Option” means an option to purchase any Stock that complies with and is subject to the terms, limitations
and conditions of Section 422 of the Code and any regulations promulgated with respect to that Section of the Code. 

“Nonqualified Stock Option” means an option which is not an Incentive Stock Option. 

“Officer” means a person who constitutes an officer of the Company for the purposes of Section 16 of the Exchange Act,
as determined by reference to such Section 16 and applicable SEC rules, regulations, and interpretative or “no-action” positions, as the same may be in effect or provided from time to time, and
to applicable judicial decisions. 
 “Option” means an option, whether or not an Incentive Stock Option, to purchase Stock
granted pursuant to Article 6 of this Plan. 
 “Optionee” means a person to whom an Option has been granted under this
Plan. 
 “Outside Director” has the meaning provided in Section 162(m) of the Code. 

“Parent” means any corporation which is a parent corporation with respect to the Company within the meaning of Code
Section 424(e). 
 “Permanent and Total Disability” shall have the same meaning as given to that term by Code
Section 22(e)(3) and any regulations or rulings promulgated under that Section of the Code. 
 “Plan” means this XL
Hybrids, Inc. 2010 Equity Incentive Plan. 

  
 3 

 “Purchasable” shall refer to Stock that is vested and may be purchased by
an Optionee under the terms of this Plan on or after a certain date or the happening of a certain event specified in the applicable Stock Option Agreement. 

“Restricted Stock” means Stock issued, subject to restrictions, to a Grantee pursuant to Article 7 of this Plan. 

“Restricted Stock Agreement” means the agreement setting forth the terms of an Award, and executed by a Grantee as provided
in Section 7.1 of this Plan, a sample form of which is attached to this Plan as Exhibit B (which form may be varied by the Committee in granting an Award). 

“SEC” means the United States Securities and Exchange Commission. 

“Section 16 Insider” means any person who is subject to the provisions of Section 16 of the Exchange
Act, as provided in Rule 16a-2 promulgated pursuant to the Exchange Act. 
 “Specified
Employee” has the meaning set forth in Code Section 409A(a)(2)(B)(i). 
 “Stock” means the common stock, par
value $0.001 per share, of the Company or, in the event that the outstanding shares of Stock are hereafter changed into or exchanged for shares of a different stock or securities of the Company or some other entity, such other stock or securities;
provided, however, that with respect to any Nonqualified Stock Options, such other stock must be common stock and meet the requirements of Section 1.409A-1(b)(5)(iii) of the Treasury Regulations. 

“Stock Option Agreement” means an agreement between the Company and an Optionee under which the Optionee may purchase Stock
under this Plan, a sample form of which is attached to this Plan as Exhibit A (which form may be varied by the Committee in granting an Option). 

“Subsidiary” means any corporation which is a subsidiary corporation with respect to the Company within the meaning of Code
Section 424(f). 
 “Treasury Regulations” means regulations promulgated by the United States Department of Treasury
pursuant to the Code, as amended, including proposed or temporary regulations as applicable. 
 ARTICLE 2 

THE PLAN 
 2.1 Name.
This Plan shall be known as the “XL Hybrids, Inc. 2010 Equity Incentive Plan.” 
 2.2 Purpose. The purpose of this Plan is
to advance the interests of the Company, its Subsidiaries, and its stockholders by affording certain Employees, Officers, Directors and Consultants of the Company and its Subsidiaries an opportunity to acquire or increase their proprietary interests
in the Company. The objective of the issuance of Options and Awards is to promote the growth and profitability of the Company and its Subsidiaries because the Grantees will be provided with an additional incentive to achieve the Company’s
objectives through participation in its success and growth and will be encouraged to continue their association with or service to the Company and its Subsidiaries. 

2.3 Effective Date. The Plan shall become effective on the Effective Date defined in Article 1 or, if later, the date it is duly
adopted by the Board. 

  
 4 

 2.4 Stockholder Approval. If, at the time of the adoption of, or any amendment to,
this Plan, stockholder approval is required by the Code to qualify Options which are intended to be Incentive Stock Options as such, and such stockholder approval has not been obtained (or is not obtained within 12 months of adoption of the Plan or
of the amendment to the Plan), any Options granted as Incentive Stock Options under this Plan shall be valid in accordance with their terms, except that they shall be treated for all purposes hereunder as Nonqualified Stock Options. 

ARTICLE 3 
 PARTICIPANTS

 The class of persons eligible to participate in this Plan shall consist of all Directors, Officers, Employees, and Consultants
(including but not limited to executive personnel) of the Company or any Subsidiary whose participation in this Plan the Committee determines to be in the best interests of the Company. 

ARTICLE 4 

ADMINISTRATION 
 4.1
Duties and Powers of the Committee. 
 (a) The Plan shall be administered by the Board or by a Committee. Within the scope of such
authority, the Board or the Committee may delegate to a committee of one or more members of the Board the authority to grant awards under this Plan to eligible persons who are either (i) not then “covered employees” within the meaning
of Section 162(m) of the Code and are not expected to be “covered employees” at the time of recognition of income resulting from such award; (ii) not persons with respect to whom the Company wishes to comply with
Section 162(m) of the Code; and/or (iii) not then subject to Section 16 of the Exchange Act (with respect to the Company or any of its Subsidiaries). 

If the Board has appointed a Committee, the Board may abolish the Committee at any time and re-vest in
the Board the administration of this Plan. Appointment of Committee members shall be effective upon acceptance of appointment. Committee members may resign at any time by delivering written notice to the Board. Vacancies in the Committee may only be
filled by the Board. The Committee shall select one of its members as its chairman and shall hold its meetings at such times and places as it may determine. The Committee shall keep minutes of its meetings and shall make such rules and regulations
for the conduct of its business as it may deem necessary. The Committee shall have the power to act by unanimous written consent in lieu of a meeting, and to meet by telephone or other means of communication through which each participating member
may communicate with and receive communications from all other participating members. In administering this Plan, the Committee’s actions and determinations shall be binding on all interested parties. 

(b) The Committee shall have the power to grant Options or Awards in accordance with the provisions of this Plan and may grant Options and
Awards singly, in combination, or in tandem. Subject to the provisions of this Plan, the Committee shall have the discretion and authority to determine those individuals to whom Options or Awards will be granted, the number of shares of Stock
subject to each Option or Award, such other matters as are specified in this Plan, and any other terms and conditions of a Stock Option Agreement or Restricted Stock Agreement. To the extent not inconsistent with the provisions of this Plan, the
Committee may give a Grantee an election to surrender an Option or Award in exchange for the grant of a new Option or Award, and shall have the authority to amend or modify an outstanding Stock Option Agreement or Restricted Stock Agreement, or to
waive any provision of it, provided that the Grantee consents to such action. 

  
 5 

 4.2 Interpretation; Rules. Subject to the express provisions of this Plan, the
Committee also shall have complete authority to interpret this Plan, to prescribe, amend, and rescind rules and regulations relating to it, to determine the details and provisions of each Stock Option Agreement or Restricted Stock Agreement, and to
make all other determinations necessary or advisable for the administration of this Plan, including, without limitation, (a) amending or altering this Plan and any Options or Awards granted under this Plan as may be required to comply with or
to conform to any Applicable Laws, which action may be taken without the consent of the Grantee, notwithstanding any other provision herein, and (b) providing that a Stock Option Agreement or Restricted Stock Agreement may be evidenced and
signed in electronic form and that an Option may be exercised and any other notice may be given electronically, in each case in compliance with Applicable Laws. 

4.3 No Liability. Neither any member of the Board nor any member of the Committee shall be liable to any person for any act or
determination made in good faith with respect to this Plan or any Option or Award granted under this Plan. 
 4.4 Company Assistance.
The Company shall supply full and timely information to the Committee on all matters relating to eligible persons, their employment, death, retirement, disability, or other termination of employment, and such other pertinent facts as the Committee
may require. The Company shall furnish the Committee with such clerical and other assistance as is necessary in the performance of its duties. 

ARTICLE 5 
 SHARES OF
STOCK SUBJECT TO PLAN 
 5.1 Limitations. The maximum number of shares of Stock that may be issued under this Plan shall be
241,714, which shall be adjusted for any stock splits, stock dividends, or similar recapitalizations which change the aggregate number of shares of Stock which are issued and outstanding. Any or all shares of Stock subject to this Plan may be issued
in any combination of Incentive Stock Options, Nonqualified Stock Options, and Restricted Stock. Shares subject to an Option or issued as an Award may be either authorized and unissued shares or shares issued and later acquired by the
Company. At all times the Company shall reserve and keep available a sufficient number of shares as shall be required to satisfy the requirements of all outstanding Options granted under this Plan. 

5.2 Reissuance of Acquired Shares. The shares covered by any unexercised portion of an Option or Award that has terminated for any
reason, or any forfeited portion of an Option or Award, and shares of Stock tendered to the Company in payment of the Exercise Price may again be issued pursuant to an Option or Award under this Plan, and such shares shall not be considered as
having been issued in computing the number of shares of Stock remaining available for issuance under this Plan. If shares of Restricted Stock are repurchased by the Company at their original purchase price, those shares shall become available for
future grant under this Plan. Notwithstanding the provisions of this Section 5.2, no reacquired shares may again be issued pursuant to this Plan if such action would cause an Incentive Stock Option to fail to qualify as an Incentive Stock
Option under Code Section 422. 
 ARTICLE 6 

OPTIONS 
 6.1 Types of
Options Granted. The Committee may, under this Plan, grant either Incentive Stock Options or Nonqualified Stock Options. Within the limitations provided in this Plan, both types of Options may be granted to the same person at the same time or at
different times or under different terms and conditions, as long as the terms and conditions of each Option are consistent with the provisions of this Plan. Without limitation of the foregoing, Options may be granted subject to conditions based on
the financial performance of the Company or any other factor the Committee deems relevant. 

  
 6 

 6.2 Option Grant and Agreement. Each Option granted under this Plan shall be
evidenced by minutes of a meeting or the written consent of the Committee (or its delegate(s) as permitted by Section 4.1(a)) and by a written Stock Option Agreement executed by the Company and the Optionee. The terms of the Option, including
the Option’s duration, time or times of exercise, exercise price, and whether the Option is intended to be an Incentive Stock Option, shall be stated in the Stock Option Agreement. No Incentive Stock Option may be granted more than 10 years
after the date this Plan is approved by the Company’s stockholders. Separate Stock Option Agreements may be used for Options intended to be Incentive Stock Options and those not so intended, but any failure to use such separate agreements shall
not invalidate, or otherwise adversely affect the Optionee’s interest in, the Options evidenced thereby. 
 6.3 Optionee
Limitation. The Committee shall not grant an Incentive Stock Option to any person who, at the time the Incentive Stock Option is granted: 

(a) is not an Employee of the Company or any of its Subsidiaries; or 

(b) owns or is considered to own stock possessing at least 10% of the total combined voting power of all classes of stock of the Company or
any of its Parents or Subsidiaries; provided, however, that this limitation shall not apply if at the time an Incentive Stock Option is granted the Exercise Price is at least 110% of the Fair Market Value of the Stock subject to such Option and such
Option by its terms would not be exercisable after 5 years from the date on which the Option is granted. For purposes of this subsection (b), only common stock of the Company and its Parents and Subsidiaries owned by the Optionee at the time of
grant will be considered in the 10% owner calculation. A person shall be considered to own: (i) the stock owned, directly or indirectly, by or for his or her brothers and sisters (whether by whole or half blood), spouse, ancestors and lineal
descendants and (ii) the stock owned directly or indirectly, by or for a corporation, partnership, estate, or trust in proportion to such person’s stock interest, partnership interest or beneficial interest therein. 

6.4 $100,000 Limitation. Except as provided below, the Committee shall not grant an Incentive Stock Option to, or modify the exercise
provisions of outstanding Incentive Stock Options held by, any person who, at the time the Incentive Stock Option is granted (or modified), would thereby receive or hold Incentive Stock Options of the Company and any Parent or Subsidiary of the
Company such that the aggregate Fair Market Value (determined as of the respective dates of grant or modification of each Option) of the Stock with respect to which such Incentive Stock Options are exercisable for the first time during any calendar
year is in excess of $100,000 (or such other limit as may be prescribed by the Code from time to time); provided that the foregoing restriction shall not preclude the Committee from modifying an outstanding Incentive Stock Option if, as a result of
such modification and with the consent of the Optionee, such Option no longer constitutes an Incentive Stock Option; and provided that if the $100,000 limitation (or such other limitation prescribed by the Code) described in this Section 6.4 is
exceeded, the Incentive Stock Option the granting or modification of which resulted in the exceeding of such limit shall be treated as an Incentive Stock Option up to the limitation and the excess shall be treated as a Nonqualified Stock Option.

 6.5 Exercise Price. The Exercise Price of the Stock subject to each Option shall be determined by the Committee. Subject to the
provisions of Section 6.3(b) of this Plan, the Exercise Price of an Incentive Stock Option shall not be less than the Fair Market Value of the Stock as of the date the Option is granted (or in the case of an Incentive Stock Option that is
subsequently modified, on the date of such modification). 
 6.6 Exercise Period. The period for the exercise of each Option granted
under this Plan shall be determined by the Committee, but the Stock Option Agreement with respect to each Incentive Stock Option 

  
 7 

 
shall provide that such Incentive Stock Option shall not be exercisable after the expiration of 10 years from the date of grant (or modification) of the Option. Further, any Discount Option must
be exercised no later than March 15 of the year following the calendar year in which such option vests, unless the Stock Option Agreement provides for another permissible payment event for the exercise of such Option in accordance with Section 1.409A-3 of the Treasury Regulations and the Optionee properly and timely elects to defer exercise of the Option in accordance with the requirements of
Section 1.409A-2 of the Treasury Regulations; provided, further, that no Specified Employee may exercise any Discount Option which vests due to such Specified Employee’s separation from service with
the Company at any time within six months following the date of such separation from service, except that the personal representative of a Specified Employee who dies during such six-month period may exercise
such Discount Option following the death of such Specified Employee and within the time period specified in the Stock Option Agreement for such Discount Option. 

6.7 Option Exercise. 
 (a)
Unless otherwise provided in the Stock Option Agreement or Section 6.6 of this Plan, an Option may be exercised at any time or from time to time during the term of the Option as to any or all full shares that have become Purchasable under the
provisions of the Option, but not at any time as to fewer than 100 shares unless the remaining shares that have become Purchasable are fewer than 100shares, in which event the Option must be exercised for all shares which are then Purchasable. The
Committee shall have the authority to prescribe in any Stock Option Agreement that the Option may be exercised only in accordance with a vesting schedule during the term of the Option. 

(b) An Option shall be exercised by (i) delivery to the Company at its principal office (or, if the Committee so directs, to an
administrator designated by the Committee at such administrator’s office) a written notice of exercise with respect to a specified number of shares of Stock and (ii) payment to the Company at that office of the full amount of the Exercise
Price for such number of shares in accordance with Section 6.7(c). 
 (c) Payment for Stock purchased pursuant to this Plan may be made
in cash (by check) or, where expressly approved for the Optionee by the Committee and where permitted by Applicable Laws: 
 (i) by
cancellation of indebtedness of the Company to the Optionee; 
 (ii) by surrender of shares that either: (A) have been owned by the
Optionee for more than 6 months and have been paid for within the meaning of SEC Rule 144 (and, if such shares were purchased from the Company by use of a promissory note, such note has been fully paid with respect to such shares); or (B) were
obtained by the Optionee in the public market; 
 (iii) by tender of a full recourse promissory note having such terms as may be approved
by the Committee and bearing interest at a rate sufficient to avoid imputation of income under Sections 483 and 1274 of the Code; 
 (iv)
by waiver of compensation due or accrued to the Optionee for services rendered; 
 (v) provided that a public market for the Company’s
stock exists: (A) through a “same day sale” commitment from the Optionee and a broker-dealer that is a member of the National Association of Securities Dealers (an “NASD Dealer”) whereby the Optionee irrevocably elects to
exercise the Option and to sell a portion of the Stock so purchased to pay for the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Stock to forward the Exercise Price

  
 8 

 
directly to the Company; or (B) through a “margin” commitment from the Optionee and a NASD Dealer whereby the Optionee irrevocably elects to exercise the Option and to pledge the
Stock so purchased to the NASD Dealer in a margin account as security for a loan from the NASD Dealer in the amount of the Exercise Price, and whereby the NASD Dealer irrevocably commits upon receipt of such Stock to forward the Exercise Price
directly to the Company; or 
 (vi) by any combination of the foregoing, or any other means approved by the Committee, including delivery
of shares of the Company having a Fair Market Value equal in amount to the Exercise Price of the Shares and otherwise permitted under Applicable Laws. 

(d) In addition to and at the time of payment of the Exercise Price, the Optionee shall pay to the Company in cash the full amount of any
federal, state, and local income, employment, or other withholding taxes applicable to the taxable income of such Optionee resulting from such exercise. The Committee may allow Optionees to satisfy a portion of the foregoing withholding tax
obligations by electing to have the Company withhold from the shares of Stock to be issued upon exercise of an Option that number of shares having a Fair Market Value equal to the minimum amount required to be withheld based on the statutory
withholding rates for federal and state tax purposes that apply to supplemental taxable income. The Fair Market Value of the shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All
elections by Optionees to have shares withheld for this purpose shall be made in such form and under such conditions as the Committee may deem necessary or advisable.  

(e) The holder of an Option shall not have any of the rights of a stockholder with respect to the shares of Stock subject to the Option until
such shares have been issued and transferred to the Optionee upon the exercise of the Option. 
 6.8 Termination of Employment or
Service. The Committee shall have the power to specify, with respect to the Options granted to a particular Optionee, the effect of termination of such Optionee’s employment or service under various circumstances upon such Optionee’s
right to exercise an Option, which effect may include immediate or deferred termination of such Optionee’s rights under an Option, or acceleration of the date at which an Option may be exercised in full; provided, however, that in no event may
an Incentive Stock Option be exercised after the expiration of 10 years from its date of grant; and provided further, that the exercise period for any Discount Option may not be accelerated except as permitted by
Section 1.409A-3(j) of the Treasury Regulations, and may not be exercised later than the date as provided in Section 6.6. Unless a Stock Option Agreement specifically provides otherwise, in the event
the recipient of an Option is terminated from his or her employment or other service to the Company or its Subsidiaries for Cause, Options, whether vested or unvested, granted to such person shall terminate immediately and shall not thereafter be
exercisable. 
 6.9 Effect of Change in Control. If the Company engages in or enters into a binding agreement to engage in a
transaction or series of transactions which constitutes a Change in Control, then the Committee, in its sole discretion, is hereby authorized to take any one or more of the following actions with respect to any Option (other than any Discount
Option) granted or issued under this Plan if the Committee determines such action or actions are necessary or appropriate to facilitate such transaction or series of transactions: 

(a) to provide for either the purchase of any such Option for an amount of cash equal to the amount that could have been obtained upon the
exercise of such Option and sale of the underlying Stock had such Option been currently exercisable or the replacement of such Option with other rights or property of equivalent value selected by the Committee in its sole discretion; 

  
 9 

 (b) to provide that the vesting of such Option shall be accelerated and made fully
exercisable at least 10 days before the effective date of the Change in Control, notwithstanding anything to the contrary in this Plan or the provisions of such Option; 

(c) to provide that such Option be assumed by the successor or survivor corporation, or a parent or subsidiary thereof, or be substituted for
by similar options or rights covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind of shares and prices; and 

(d) to provide that immediately prior to the effective date of the Change in Control, such Option shall not be exercisable and shall
terminate. 
 With respect to any Discount Option, unless the terms of the Stock Option Agreement provide otherwise, in the event of any transaction or
series of transactions which constitutes a Change in Control, such Option shall be exercisable as to all shares covered thereby, notwithstanding anything to the contrary in this Plan. Notwithstanding the foregoing, to the extent that the terms of
any Stock Option Agreement provides for different rights or obligations, or different, more restrictive, or more expansive treatment of any Option in the event of a Change in Control, then such terms shall control. 

6.10 Assumption of Options by the Company. Upon the determination of the Committee, in its sole discretion, the Company, from time to
time, also may substitute or assume outstanding options granted by another company, whether in connection with an acquisition of such other company or otherwise, by either: (a) granting an Option under this Plan in substitution for such other
company’s option; or (b) assuming such option as if it had been granted under this Plan if the terms of such assumed option could be applied to an Option granted under this Plan. Such substitution or assumption will be permissible if the
holder of the substituted or assumed option would have been eligible to be granted an Option under this Plan if the other company had applied the rules of this Plan to such grant. If the Company assumes an award granted by another company, the terms
and conditions of such award will remain unchanged (except that the exercise price and the number and nature of shares of Stock issuable upon exercise of any such option will be adjusted appropriately pursuant to Section 424(a) of the Code). If
the Company elects to grant a new Option rather than assuming an existing option, the new Option may be granted with a similarly adjusted Exercise Price. 

6.11 Right of First Refusal. Upon the determination of the Committee, in its sole discretion, the Company, from time to time, also may
provide in connection with any grant of an Option under this Plan that shares of Stock received in connection with an Option shall be subject to a right of first refusal pursuant to which the Company shall be entitled to purchase such shares of
Stock in the event of a prospective sale of such shares of Stock, subject to such terms and conditions as the Committee may specify at the time of grant or (if permitted by the Option Agreement) thereafter, and subject to such other terms and
conditions as the Committee may specify at the time of grant. 
 6.12 Transfer Restrictions. In addition to any restrictions set
forth herein (unless otherwise specified in the Option Agreement), Any shares of Stock issued pursuant to an Option shall be subject to such transfer restrictions as may be set forth in the Option Agreement (including the requirement that any shares
of Stock acquired prior to such time as such shares of Stock are registered under the Securities Act or an exemption therefrom is available, be assigned and subject to a voting trust with terms determined by the Committee). 

  
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 ARTICLE 7 

RESTRICTED STOCK 
 7.1
Awards of Restricted Stock. The Committee may grant Awards of Restricted Stock, each of which shall be governed by a Restricted Stock Agreement between the Company and the Grantee. Each Restricted Stock Agreement shall contain such
restrictions, terms, and conditions as the Committee may, in its discretion, determine, and may require that an appropriate legend be placed on the certificates evidencing the subject Restricted Stock. Shares of Restricted Stock granted pursuant to
an Award under this Plan shall be issued in the name of the Grantee as soon as reasonably practicable after the Award is granted, provided that the Grantee has executed the Restricted Stock Agreement governing the Award, the appropriate blank stock
powers and, in the discretion of the Committee, an escrow agreement and any other documents that the Committee may require as a condition to the issuance of such shares. If a Grantee fails to execute the foregoing documents within any time period
prescribed by the Committee, the Award shall be void. At the discretion of the Committee, shares issued in connection with an Award may be held by the Company for the account of the Grantee or deposited together with the stock powers with an escrow
agent designated by the Committee. Unless the Committee determines otherwise and as provided in the Restricted Stock Agreement, upon issuance of the shares, the Grantee shall have all of the rights of a stockholder with respect to such shares,
including the right to vote the shares and to receive all dividends or other distributions paid or made with respect to the shares. 
 7.2
Lapse of Restrictions. Restrictions upon Restricted Stock awarded under this Plan shall lapse at such time or times and on such terms and conditions as the Committee may, in its discretion, determine at the time the Award is granted or
thereafter, provided there is no acceleration. 
 7.3 Termination of Employment or Service. The Committee shall have the power to
specify, with respect to each Award granted to any particular Grantee, the effect upon such Grantee’s rights with respect to such Restricted Stock of the termination of such Grantee’s employment or service under various circumstances,
which effect may include immediate or deferred forfeiture of such Restricted Stock or acceleration of the date at which any then-remaining restrictions shall lapse. Unless a Restricted Stock Agreement specifically provides otherwise, in the event
the recipient of an Award is terminated from his or her employment or other service to the Company or its Subsidiaries for Cause, Awards, whether vested or unvested, granted to such person shall terminate immediately and shall not thereafter be
exercisable. 
 7.4 Effect of Change in Control. If the Company engages in or enters into a binding agreement to engage in a
transaction or series of transactions which constitutes a Change in Control, then the Committee, in its sole discretion, is hereby authorized to take any one or more of the following actions with respect to any shares of Restricted Stock granted or
issued under this Plan which would not vest in accordance with their terms absent this provision as of the effective date of the Change in Control, if the Committee determines such action or actions are necessary or appropriate to facilitate such
transaction or series of transactions: 
 (a) to provide for either the purchase of any such Restricted Stock for an amount of cash equal to
the amount that could have been obtained upon the realization of the Grantee’s rights as if such Restricted Stock had been fully vested or the replacement of such Restricted Stock with other rights or property or equivalent value selected by
the Committee in its sole discretion; 
 (b) to provide that the vesting of such Restricted Stock shall be accelerated and all restrictions
thereon shall lapse at least 10 days before the effective date of the Change in Control, notwithstanding anything to the contrary in this Plan or the provisions of such Restricted Stock Agreement; and 

  
 11 

 (c) to provide that such Restricted Stock be assumed by the successor or survivor
corporation, or a parent or subsidiary thereof, or be substituted for by similar rights or awards covering the stock of the successor or survivor corporation, or a parent or subsidiary thereof, with appropriate adjustments as to the number and kind
of shares and prices. 
 Notwithstanding the foregoing, to the extent that the terms of any Restricted Stock Agreement provides for different rights or
obligations, or different, more restrictive, or more expansive treatment of any Award in the event of a Change in Control, then such terms shall control. 

7.5 Treatment of Dividends. At the time an Award of Restricted Stock is made, the Committee may, in its discretion, determine that the
payment to the Grantee of any dividends, or a specified portion of them, declared or paid on such Restricted Stock shall be (a) deferred until the lapsing of the relevant restrictions and (b) held by the Company for the account of the
Grantee until such lapsing. In the event of such deferral, there shall be credited at the end of each year (or portion of it) interest on the amount of the account at the beginning of the year at a rate per annum determined by the Committee. Payment
of deferred dividends, together with interest on those dividends, shall be made upon the lapsing of restrictions imposed on such Restricted Stock, and any dividends deferred (together with any interest on those dividends) with respect to Restricted
Stock shall be forfeited upon any forfeiture of such Restricted Stock. 
 7.6 Delivery of Stock. Except as provided otherwise in
Article 8 below, within a reasonable period of time following the lapse of the restrictions on shares of Restricted Stock, the Committee shall cause a stock certificate to be delivered to the Grantee with respect to such Stock and such Stock shall
be free of all restrictions under this Plan. 
 7.7 Right of First Refusal. Upon the determination of the Committee, in its sole
discretion, the Company, from time to time, also may provide in connection with any grant of an Award under this Plan that shares of Stock received in connection with an Award shall be subject to a right of first refusal pursuant to which the
Company shall be entitled to purchase such shares of Stock in the event of a prospective sale of such shares of Stock, subject to such terms and conditions as the Committee may specify at the time of grant or (if permitted by the Restricted Stock
Agreement) thereafter, and subject to such other terms and conditions as the Committee may specify at the time of grant. 
 7.8 Transfer
Restrictions. In addition to any restrictions set forth herein (unless otherwise specified in the Restricted Stock Agreement), any shares of Stock issued pursuant to an Award shall be subject to such transfer restrictions as may be set forth in
the Restricted Stock Agreement (including the requirement that any shares of Stock acquired prior to such time as such shares of Stock are registered under the Securities Act or an exemption therefrom is available, be assigned and subject to a
voting trust with terms determined by the Committee). 
 ARTICLE 8 

TERMINATION AND AMENDMENT 

8.1 Termination and Amendment. The Board may at any time terminate this Plan, and may at any time and from time to time and in any
respect amend this Plan; provided, however, that the Board (unless its actions are approved or ratified by the stockholders of the Company within twelve months of the date that the Board amends this Plan) may not amend this Plan to: 

(a) increase the total number of shares of Stock issuable pursuant to this Plan, except as contemplated in Section 5.1; 

  
 12 

 (b) change the class of persons eligible to participate in this Plan; or 

(c) otherwise materially increase the benefits accruing to participants under this Plan. 

The Committee shall obtain stockholder approval of any Plan amendment to the extent necessary and desirable to comply with Applicable Laws. Unless sooner
terminated, the Plan shall terminate on the day before the 10th anniversary of the Effective Date hereof. 
 8.2 Effect on Grantee’s
Rights. No termination, amendment, or modification of this Plan shall affect adversely a Grantee’s existing rights under a Stock Option Agreement or Restricted Stock Agreement without the consent of the Grantee or his legal representative,
except an amendment or modification required to comply with Applicable Laws. 
 ARTICLE 9 

MISCELLANEOUS 
 9.1
Stock Certificates. The Company shall not be required to issue or deliver any certificate for shares of Stock purchased upon the exercise of any Option granted under this Plan, or deliver any certificate for shares of Restricted Stock granted
under this Plan, before fulfillment of all of the following conditions: 
 (a) the admission of such shares to listing on all stock exchanges
on which the Stock is then listed; 
 (b) the completion of any registration or other qualification of such shares that the Committee shall
deem necessary or advisable under any Applicable Laws; 
 (c) the obtaining of any approval or other clearance from any federal or state
governmental agency or body that the Committee shall determine to be necessary or advisable; 
 (d) the execution of any agreement or
document restricting the sale or other transfer of the shares which is required by the Committee with respect to other shares issued pursuant to this Plan; and 

(e) the lapse of such reasonable period of time following the exercise of the Option as the Board from time to time may establish for reasons
of administrative convenience. 
 Stock certificates issued and delivered to Grantees shall bear such restrictive legends as the Company shall deem
necessary or advisable pursuant to Applicable Laws. 
 9.2 Relationship to Other Compensation Plans. The adoption of this Plan shall
not affect any other stock option, incentive, or other compensation plans in effect for the Company or any of its Subsidiaries, nor shall the adoption of this Plan preclude the Company or any of its Subsidiaries from establishing any other form of
incentive or other compensation plan for Employees or Directors of the Company or any of its Subsidiaries. 

  
 13 

 9.3 Replacement or Amended Grants. At the sole discretion of the Committee, and
subject to the terms of this Plan, the Committee may modify outstanding Options or Awards or accept the surrender of outstanding Options or Awards and grant new Options or Awards in substitution for them. No modification of an Option or Award,
however, shall adversely affect a Grantee’s existing rights under a Stock Option Agreement or Restricted Stock Agreement without the consent of the Grantee or his legal representative. 

9.4 Escrow; Pledge of Stock. To enforce any restrictions on a Grantee’s shares of Stock, the Committee may require the Grantee to
deposit all certificates representing shares of Stock, together with stock powers other instruments of transfer approved by the Committee, appropriately endorsed in blank, with the Company or an agent designated by the Company to hold in escrow
until such restrictions have lapsed or terminated, and the Committee may cause a legend or legends referencing such restrictions to be placed on the certificates. Any Grantee who is permitted to execute a promissory note as partial or full
consideration for the purchase of Stock under this Plan will be required to pledge and deposit with the Company all or part of the Stock so purchased as collateral to secure the payment of the Grantee’s obligation to the Company under the
promissory note; provided, however, that the Committee may require or accept other or additional forms of collateral to secure the payment of such obligation and, in any event, the Company will have full recourse against the Grantee under the
promissory note notwithstanding any pledge of the Grantee’s Stock or other collateral. In connection with any pledge of the Stock, the Grantee will be required to execute and deliver a written pledge agreement in such form as the Committee will
from time to time approve. In the discretion of the Committee, the Stock purchased with the promissory note may be released from the pledge on a pro rata basis as the promissory note is paid. 

9.5 No Limitation on Future Actions. Neither the existence of this Plan or any Stock Option Agreement or Restricted Stock Agreement
shall affect or restrict in any way the right or power of the Company or the stockholders of the Company to make or authorize any adjustment, recapitalization, reorganization, or other change in the Company’s capital structure or its business,
to pursue any merger or consolidation of the Company, to issue any stock or options, warrants or rights to purchase stock or to issue any bonds, debentures, preferred or prior preference stocks whose rights are superior to or affect the Stock or
that are convertible into or exchangeable for Stock, to dissolve or liquidate the Company, to sell or transfer all or any part of its assets or business, or to take any other corporate act or proceeding, whether of a similar character or otherwise.

 9.6 Employment Rights. Nothing in this Plan or in any Stock Option Agreement or Restricted Stock Agreement shall confer on any
person any right to continue in the employ of the Company or any of its Subsidiaries, or shall interfere in any way with the right of the Company or any of its Subsidiaries to terminate such person’s employment at any time. 

9.7 Plan Binding on Successors. The Plan shall be binding upon the successors and assigns of the Company. 

9.8 Singular, Plural; Gender. Whenever used in this Plan, nouns in the singular shall include the plural, and the masculine pronoun
shall include the feminine gender. 
 9.9 Headings. Headings of Articles and Sections of this Plan are inserted for convenience and
reference and do not constitute part of this Plan. 

  
 14 

 9.10 Interpretation. With respect to Section 16 Insiders, transactions under
this Plan are intended to comply with all applicable conditions of Rule 16b-3 or its successors under the Exchange Act. To the extent any provision of this Plan or action by the administrators of this Plan
fails to so comply, it shall be deemed void to the extent permitted by Applicable Laws and deemed advisable by the Committee. All provisions of this Plan are intended to, and shall be interpreted so as to, comply with all required provisions of
Applicable Laws, including, without limiting the generality of the foregoing, the requirements of Section 409A of the Code. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 15 

 Exhibit A to 

XL Hybrids, Inc. 
 2010 Equity
Incentive Plan 
 Sample Form of Stock Option Agreement 

XL HYBRIDS, INC. 
 STOCK
OPTION AGREEMENT 
 THIS STOCK OPTION AGREEMENT (this “Agreement”) is entered into as of this
         day of _________, ____, by and between XL Hybrids, Inc., a Delaware corporation (the “Company”), and _______________________________ (the “Optionee”). Capitalized terms not
defined in this Agreement have the meanings ascribed to them in the 2010 Equity Incentive Plan (the “Plan”) of the Company. 
 (1)
Effective as of the Effective Date, the Board adopted the Plan and recommended that the Plan be approved by the Company’s stockholders. 

(2) The Committee has granted the Optionee an Option to purchase the number of shares of the Company’s Stock provided below, and in
consideration of the granting of that Option the Optionee intends to remain in the employ of the Company or continue to provide services to the Company. 

(3) The Company and the Optionee desire to enter into a written agreement with respect to such Option in accordance with the Plan. 

As an employment or service incentive and to encourage stock ownership, and also in consideration of the mutual covenants contained in this
Agreement, the parties to this Agreement agree as follows: 
 1. Incorporation of Plan. This Option is granted pursuant to the
provisions of the Plan and the terms and definitions of the Plan are incorporated into this Agreement by reference. A copy of the Plan has been delivered to the Optionee, who acknowledges receipt of the Plan. 

2. Grant of Option. Subject to the terms, restrictions, limitations and conditions stated in this Agreement, the Company hereby
evidences its grant to the Optionee, not in lieu of salary or other compensation, of the right and option to purchase all or any part of the number of shares of the Company’s Stock provided on Schedule A attached to this Agreement and
incorporated into this Agreement by reference. The Option shall be exercisable in the amounts and at the time specified on Schedule A. The Option shall expire and shall not be exercisable on the date specified on Schedule A or on such earlier date
as determined pursuant to Sections 8, 9, or 10 below. Schedule A states whether the Option is intended to be an Incentive Stock Option. 

3. Purchase Price. The Exercise Price to be paid by the Optionee for the shares subject to this Option shall be as specified on
Schedule A. If the Option is an Incentive Stock Option, the Exercise Price shall be an amount not less than the Fair Market Value of a share of Stock as of the date of grant. 

4. Exercise Terms. The Optionee must exercise the Option for at least the lesser of 100 shares or the number of shares of Purchasable
Stock as to which the Option remains unexercised. If this Option is not exercised with respect to all or any part of the shares subject to this Option before it expires, the shares with respect to which this Option was not exercised shall no longer
be subject to this Option. 

  
 xvi 

 5. Option Non-Transferable. No Option shall
be transferable by an Optionee other than by will or the laws of descent and distribution or, in the case of Nonqualified Stock Options, pursuant to a Domestic Relations Order. During the lifetime of an Optionee, Options shall be exercisable only by
such Optionee (or by such Optionee’s guardian or legal representative, should one be appointed). 
 6. Notice of Exercise of
Option. This Option may be exercised by the Optionee, or by the Optionee’s administrators, executors or personal representatives, by a written notice (in substantially the form of the Notice of Exercise attached to the Plan as Schedule B)
signed by the Optionee, or by such administrators, executors or personal representatives, and delivered or mailed to the Company as specified below to the attention of the President or such other officer as the Company may designate. Any such notice
shall (a) specify the number of shares of Stock that the Optionee or the Optionee’s administrators, executors or personal representatives, as the case may be, then elect to purchase under the Plan, (b) contain such information as may
be reasonably required pursuant to Section 13 below, and (c) as authorized by the Committee, be accompanied by a form of payment permitted under the Plan of the Exercise Price for the shares of Stock being purchased and executed copies of
any documents required in accordance with Section 9.1 of the Plan. Upon receipt of any such notice and accompanying payment and documents, and subject to the terms of this Agreement and the Plan, the Company agrees to issue to the Optionee or
the Optionee’s administrators, executors or personal representatives, as the case may be, stock certificates for the number of shares specified in such notice registered in the name of the person exercising this Option. 

7. Adjustment in Option. The number of shares subject to this Option, the Exercise Price and other matters are subject to adjustment
during the term of this Option in accordance with Section 5.1 of the Plan. 
 8. Termination of Employment or Service. 

(a) Except as otherwise specified in Schedule A, in the event of the termination of the Optionee’s employment or service with the Company
or any of its Subsidiaries, other than a termination that is either (i) for Cause, (ii) voluntary on the part of the Optionee and without written consent of the Company, or (iii) due to the Optionee’s death or Permanent
and Total Disability, the Optionee may exercise this Option at any time within three months after such termination to the extent of the number of shares that were Purchasable under this Agreement at the date of such termination. 

(b) Except as specified in Schedule A, in the event of a termination of the Optionee’s employment or service with the Company or any of
its Subsidiaries that is either (i) for Cause or (ii) voluntary on the part of the Optionee and without the written consent of the Company, this Option, to the extent not previously exercised, shall terminate immediately and shall not
thereafter be or become exercisable. 
 9. Permanent and Total Disability of Optionee. In the event of termination of employment or
service because of the Optionee’s Permanent and Total Disability, the Optionee (or his or her personal representative) may exercise this Option within a period ending on the earlier of (a) the last day of the
one-year period following the determination of the Optionee’s Permanent and Total Disability or (b) the expiration date of this Option, to the extent of the number of shares that were Purchasable
under this Agreement at the date of such termination. 

  
 xvii 

 10. Death of Optionee. Except as otherwise provided in Schedule A with respect to the
rights of the Optionee upon termination of employment or service under Section 8(a) above, in the event of the Optionee’s death while employed by or engaged to provide services to the Company or any of its Subsidiaries or within three
months after a termination of such employment or service (if such termination was neither (i) for Cause nor (ii) voluntary on the part of the Optionee and without the written consent of the Company), the heirs, executors or personal
representatives of the Optionee or persons to whom all or a portion of this Option is transferred in accordance with Section 5 may exercise this Option at any time within a period ending on the earlier of (a) the last day of the one-year period following the Optionee’s death or (b) the expiration date of this Option. If the Optionee was employed by or engaged to provide services to the Company at the time of death, this Option may
be so exercised to the extent of the number of shares that were Purchasable under this Agreement at the date of Optionee’s death. If the Optionee’s employment or service terminated prior to his or her death, this Option may be exercised
only to the extent of the number of shares covered by this Option that were Purchasable under this Agreement at the date of such termination. 

11. Section 280G Cutback. Notwithstanding anything contained herein to the contrary, if it is determined that the aggregate amount of
payments or benefits to be made or provided to Optionee under this Agreement, when considered together with any other amounts payable to Optionee as a result of a Change in Control, cause such benefits or payments to be treated as “excess
parachute payments” within the meaning of Section 280G of the Code, the Company shall reduce such payments or benefits to the least extent possible so that Optionee will not be subject to the imposition of tax under Section 4999 of
the Code. 
 12. Date of Grant. This Option was granted by the Board of Directors of the Company on the date provided in Schedule A.

 13. Compliance with Regulatory Matters. The Optionee acknowledges that the issuance of Stock of the Company is subject to
limitations imposed by federal and state law and the Optionee hereby agrees that the Company shall not be obligated to issue any shares of Stock upon exercise of this Option that would cause the Company to violate any law or any rule, regulation,
order or consent decree of any regulatory authority (including without limitation the SEC) having jurisdiction over the affairs of the Company. The Optionee agrees that he or she will provide the Company with such information as is reasonably
requested by the Company or its counsel to determine whether the issuance of Stock complies with the provisions described by this Section 13. 

14. Restriction on Disposition of Stock Acquired Upon Exercise of Incentive Stock Option. The Stock acquired pursuant to the exercise
of an Incentive Stock Option shall not be transferred by the Optionee except pursuant to the Optionee’s will, or the laws of descent and distribution, until the date that is the later of two years after the grant of such Incentive
Stock Option or one year after the transfer of the shares to the Optionee pursuant to the exercise of such Incentive Stock Option. 

  
 xviii 

 15. Company Right of First Refusal. 

(a) All shares of Stock purchased upon exercise of this option shall be subject to the following right of first refusal until immediately
prior to the consummations of the first public offering by the Company of its Stock pursuant to an offering registered under the Securities Act of 1933 (an “Initial Public Offering”). 

(b) The Optionee, including his or her heirs, assigns, executors, or administrators, or recipient of shares of Stock by other than a sale
subject to this right of first refusal and his desiring to sell any shares of Stock (the “Seller”) shall first offer such shares to the Company in the following manner: the Seller shall notify the President of the Company in writing of the
Seller’s desire to sell the Shares, which notice shall contain the price and terms at which the Seller is willing to sell and the name of the proposed purchaser. All such offers must require payment in cash, and must allow the Company at least
forty-five (45) days from the receipt of such notification in which to consummate the purchase. The Company shall have thirty (30) days after receipt of such notification by the President either to accept or to reject the offer. The
Company shall have the right to purchase all, but not less than all, of the offered shares on the terms offered. Failure of the Company either to accept or reject the offer in writing within the 30-day period
shall constitute a rejection of the offer. An acceptance by the Company shall be timely given if mailed by registered mail within the 30-day period to the most recent address of the record holder of the Shares
in the stock records of the Company. 
 (c) In the event the Company rejects the offer, the Seller may, at any time during the period of
sixty (60) days following such rejection, dispose of the offered shares upon the terms and conditions set forth in the notice to the President, but may not otherwise or thereafter do so without again complying with the foregoing rights of first
refusal. In the event the Company accepts the offer, but fails to perform according to the terms of the offer, the Seller’s sole remedy shall be that the offered shares shall no longer be subject to the foregoing rights of first refusal. 

No shares shall be transferred on the books of the Company unless the foregoing provisions have been complied with, but the Company, with the
approval of the Board, may in any particular instance or instances waive these provisions with respect to any present or future sale, provided such waiver is in writing. 

16. Company Repurchase Right. 

(a) If Optionee ceases to be employed by the Company or one of its subsidiaries for any reason, the Company shall have the right, at any time
within seven (7) months after the date of Optionee’s death, in the event Optionee dies while an employee of Company or a subsidiary of the Company, or at any time within four (4) months after the date Optionee ceases to be employed or
provide other services to the Company for any other reason, to repurchase from Optionee or his personal representatives, as the case may be, all or any part of the shares purchased by Optionee pursuant to this option at the Fair Market Value of such
shares on the date of repurchase (the “Repurchase Option”). 
 (b) A Repurchase Option shall be exercised by written notice signed
by an officer of the Company. The purchase price shall be payable, at the option of the Company, in cancellation of all or a portion of any outstanding indebtedness of Optionee to the Company or in cash (by check) or both. 

(c) The Company may assign its right under this Section 16. 

  
 xix 

 (d) This Repurchase Option shall terminate immediately prior to the consummation of an
Initial Public Offering. 
 17. Market Standoff Agreement. Optionee shall not sell, dispose of, transfer, make any short sale of,
grant any option for the purchase of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Stock or other securities of the Company held by Optionee (the “Restricted Securities”), during the 180-day period following the effective date of a registration statement of the Company filed under the Act (the “Lock Up Period”), or such longer period, as the underwriters or the Company shall reasonably
request consistent with other shares issued in accordance with the Plan. Optionee agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the managing underwriter which are consistent with the
foregoing or which are necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to Optionee’s Restricted Securities until the end of such period. The
underwriters of the Company’s stock are intended third party beneficiaries of this Section 15 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto. 

18. Other Agreements. As a condition precedent to the exercise of this Option, Optionee shall be required to become a party to all
applicable shareholders agreements, voting agreements, right of first refusal agreements and other agreements regarding the Stock of the Company. In the event of any conflict between the terms of this Agreement and any such shareholders agreement,
voting agreement, right of first refusal agreement or other agreement the terms of such other agreement shall control and be binding on Grantee. 

19. Miscellaneous. 
 (a)
This Agreement shall be binding upon the parties to it and their representatives, successors and assigns. 
 (b) This Agreement shall be
governed by the laws of the State of Delaware. 
 (c) Any requests or notices to be given under this Agreement shall be deemed given, and
any elections or exercises to be made or accomplished shall be deemed made or accomplished, upon actual delivery thereof to the designated recipient, or three days after deposit thereof in the United States mail, registered, return receipt requested
and postage prepaid, addressed, if to the Optionee, at the address provided below and, if to the Company, to the executive offices of the Company at its principal place of business registered with the State of Delaware (or to any successor address
for the Company’s principal place of business reflected in the Company’s filings with the State of Delaware or the SEC); provided that the Optionee may change his or her address by written notice as provided in this Section 17(c).

 (d) Except as permitted under the Plan, this Agreement may not be modified except in writing executed by each of the parties to it. 

  
 xx 

 IN WITNESS WHEREOF, the Board has caused this Stock Option Agreement to be executed on
behalf of the Company, and the Optionee has executed this Stock Option Agreement under seal, all as of the day and year first above written. 
  

													
	 XL HYBRDS, INC.
	 		 	 OPTIONEE

					
	By:	 	 	 		 		 	 
		 	Name:	 	        	 		 		 	Name:	 	 
		 	Title:	 	        	 		 		 	Address:	 	 
		 		 		 		 		 		 	 
		 		 		 		 		 		 	 

  
 xxi 

 SCHEDULE A 

TO 
 STOCK OPTION AGREEMENT 

BETWEEN 
 XL HYBRIDS, INC. 

AND 

_______________________________ 

Dated: _______________ 
  

	1.	 Number of Shares Subject to Option:
                 shares. 

  

	2.	 This Option (Check one) [ ] is an Incentive Stock Option [ ] is a Nonqualified Stock
Option. 

  

	3.	 Option Exercise Price:
$                 per share. 

  

	4.	 Date of Grant: 

 

	5.	 Option Vesting Schedule: 

Check one: 
  

	 	(  )	 Options are exercisable with respect to all shares on or after the date hereof. 

 

	 	(  )	 Options are exercisable with respect to the number of shares indicated below on or after the date indicated
next to the number of shares: 

  

			
	No. of Shares	  	Vesting Date

  

	6.	 Option Exercise Period: 

Check One: 
  

	 	(  )	 All options expire and are void unless exercised on or before
                , 20___. 

  

	 	(  )	 Options expire and are void unless exercised on or before the date indicated next to the number of shares:

  

			
	No. of Shares	  	Expiration Date

  

	7.	 Effect of Termination of Employment of Optionee (if different from that provided in Sections 8, 9 and 10
of the Stock Option Agreement): 

  
 xxii 

	8.	 Effect of Change in Control: the vesting of the Options shall accelerate such that the greater of the
following shall become exercisable: (a) 50% of the remaining portion of the Options that are not then fully exercisable and (b) the portion of the Options that are not then fully exercisable which would have become exercisable in due course
during the one-year period following the Change in Control. 

  
 xxiii 

 SCHEDULE B 

NOTICE OF EXERCISE 
 The
undersigned hereby notifies XL Hybrids, Inc. (the “Company”) of this election to exercise the undersigned’s stock option to purchase
                 shares of the Company’s common stock, par value $0.001 per share, pursuant to the Stock Option Agreement between the
undersigned and the Company dated ________________. Accompanying this Notice is payment sufficient to pay the exercise price for the shares of common stock being purchased as set forth in the Company’s 2010 Equity Incentive Plan, together with
such other documents or agreements required pursuant to the Plan. 
 IN WITNESS WHEREOF, the undersigned has executed this Notice, effective
this _____ day of ______________, _______. 
  

			
	 OPTIONEE [OR OPTIONEE’S

	 ADMINISTRATOR,

	 EXECUTOR OR PERSONAL

	 REPRESENTATIVE]

	
	   

	 Name:

	 Position (if other than Optionee):

  
 xxiv 

 Exhibit B to 

XL Hybrids, Inc. 
 2010 Equity
Incentive Plan 
 Sample Form of Restricted Stock Agreement 

XL HYBRIDS, INC. 

RESTRICTED STOCK AGREEMENT 

THIS RESTRICTED STOCK AGREEMENT (this “Agreement”) is entered into as of this
         day of _________, ____, by and between XL Hybrids, Inc., a Delaware corporation (the “Company”), and _______________________________ (the “Grantee”). Capitalized terms not
defined in this Agreement have the meanings ascribed to them in the 2010 Equity Incentive Plan (the “Plan”) of the Company. 
 (1)
Effective as of the Effective Date, the Board adopted the Plan and recommended that the Plan be approved by the Company’s stockholders. 

(2) The Committee has granted the Grantee an Award of _____ shares of the Company’s Stock (the “Shares”), and in consideration
of the granting of the Shares the Grantee intends to remain in the employ of the Company or continue to provide services to the Company. 

(3) The Company and the Grantee desire to enter into a written agreement with respect to such Award in accordance with the Plan. 

As an employment or service incentive and to encourage stock ownership, and also in consideration of the mutual covenants contained in this
Agreement, the parties to this Agreement agree as follows: 
 1. Incorporation of Plan. This Option is granted pursuant to the
provisions of the Plan and the terms and definitions of the Plan are incorporated into this Agreement by reference. A copy of the Plan has been delivered to the Grantee, who acknowledges receipt of the Plan. 

2. Grant of Shares. Subject to the terms, restrictions, limitations and conditions stated in this Agreement, the Company hereby
evidences its grant to the Grantee, not in lieu of salary or other compensation, of the Shares. Unless otherwise provided hereunder, the Grantee’s interest in the Shares shall vest and become nonforfeitable based on the Grantee’s continued
employment with or service to the Company in accordance with the following vesting schedule: 
  

			
	 Vested Percentage
	  	 Date

	 0%
	  	Date of this Agreement
	 ___%
	  	
	 ___%
	  	
	 ___%
	  	

  
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 3. Rights of Grantee With Respect to Shares. On and after the date of this Agreement,
the Grantee will be considered a shareholder with respect to all of the Shares. Subject to the terms of any agreement required to be executed by the Grantee pursuant to Section 14 hereof, the Grantee shall have the right to vote the Shares from
and after the date hereof and to receive all dividends and other distributions with respect to such Shares from and after such date. 
 4.
Shares Non-Transferable. Until vested in accordance with Section 2 of this Agreement, the Shares shall not be transferable by a Grantee other than by will or the laws of descent and distribution or
pursuant to a Domestic Relations Order. After the Shares have vested, the Grantee may transfer such Shares provided that such transfer is not otherwise restricted by the terms of this Agreement, any other agreement required to be executed by the
Grantee pursuant to Section 16 hereof, or by Applicable Laws. Any attempt to transfer or assign the Shares in violation of these transfer restrictions shall not be recognized by the Company and shall be null and void. The share certificate(s)
representing the Shares shall have endorsed thereon a legend in substantially the following form: “The shares of stock represented by this certificate have been issued pursuant to that certain Restricted Stock Agreement dated __________, 20__,
by and between the Company and the person whose name appears on the front hereof. These shares may not be transferred except in accordance with the provisions of such Restricted Stock Agreement, and any purported transfer in violation thereof shall
be null and void. A copy of the Restricted Stock Agreement is available at the principal office of the Company.” 
 5. Adjustment in
Number of Shares. The number of Shares subject to this Agreement are subject to adjustment during the vesting schedule set forth above in accordance with Section 5.1 of the Plan. 

6. Termination of Employment or Service. 

(a) In the event of the termination of the Grantee’s employment or service with the Company or any of its Subsidiaries, including
termination by reason of the death or Permanent and Total Disability of the Grantee, other than a termination that is either (i) for Cause, or (ii) voluntary on the part of the Grantee and without written consent of the Company, the
Grantee’s interest in [25%] of all Shares which have not vested as provided in Section 2 hereof shall automatically vest and become nonforfeitable. 

(b) In the event of a termination of the Grantee’s employment or service with the Company or any of its Subsidiaries that is either
(i) for Cause or (ii) voluntary on the part of the Grantee and without the written consent of the Company, the Grantee’s interest in all Shares which have not vested as provided in Section 2 hereof shall terminate immediately.

 7. Section 83(b) Election. Grantee understands that Section 83(a) of the Code taxes as ordinary income the difference between
the amount, if any, paid for the Shares and the fair market value of the Shares as of the date the Grantee’s interest in the Shares vests and becomes nonforfeitable. Grantee understands that Grantee may elect to be taxed at the time the Shares
are acquired, rather than when and as the Grantee’s interest in the Shares vests and becomes nonforfeitable, by filing an election under Section 83(b) (“83(b) Election”) of the Code with the Internal Revenue Service within thirty
(30) days from the date of acquisition, and providing a copy of such filing to the Company. Grantee understands that the decision as to whether to file an 83(b) Election involves a consideration of Grantee’s own tax situation and may have
a positive or negative effect depending upon the changes in the value of the Shares following the date of this Agreement and whether such Shares vest in Grantee or are forfeited in 

  
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accordance with the terms hereof. Grantee further understands that an additional copy of such 83(b) Election is required to be filed with his or her federal income tax return for the calendar
year in which the date of this Agreement falls. Grantee further acknowledges and understands that it is Grantee’s sole decision as to whether to file such 83(b) Election, and neither the Company nor the Company’s legal or financial
advisors shall have any obligation or responsibility with respect to such filing. Grantee acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to the acquisition of the Shares
hereunder, and does not purport to be complete. Grantee further acknowledges that the Company has directed Grantee to seek independent advice regarding the applicable provisions of the Code, and the income tax laws of any municipality, state or
foreign country in which Grantee may reside. Grantee assumes all responsibility for filing an 83(b) Election and paying all taxes resulting from such election or the lapse of the restrictions on the Shares. 

8. Effect of Change in Control: the vesting of the Shares shall accelerate such that the greater of the following shall become
exercisable: (a) 50% of the remaining portion of the Shares that are not then fully exercisable and (b) the portion of the Shares that are not then fully exercisable which would have become exercisable in due course during the one-year period following the Change in Control. 
 9. Section 280G Cutback. Notwithstanding
anything contained herein to the contrary, if it is determined that the aggregate amount of payments or benefits to be made or provided to Grantee under this Agreement, when considered together with any other amounts payable to Grantee as a result
of a Change in Control, cause such benefits or payments to be treated as “excess parachute payments” within the meaning of Section 280G of the Code, the Company shall reduce such payments or benefits to the least extent possible so
that Grantee will not be subject to the imposition of tax under Section 4999 of the Code. 
 10. Compliance with Regulatory
Matters. The Grantee acknowledges that the issuance of Stock of the Company is subject to limitations imposed by federal and state law and the Grantee hereby agrees that the Company shall not be obligated to issue any shares of Stock under this
Agreement that would cause the Company to violate any law or any rule, regulation, order or consent decree of any regulatory authority (including without limitation the SEC) having jurisdiction over the affairs of the Company. The Grantee agrees
that he or she will provide the Company with such information as is reasonably requested by the Company or its counsel to determine whether the issuance of Stock complies with the provisions described by this Section 9. 

11. Company Right of First Refusal. 

(a) All shares of Stock issued under this Agreement shall be subject to the following right of first refusal until immediately prior to the
consummations of the first public offering by the Company of its Stock pursuant to an offering registered under the Securities Act of 1933 (an “Initial Public Offering”). 

(b) The Grantee, including his or her heirs, assigns, executors, or administrators, or recipient of shares of Stock by other than a sale
subject to this right of first refusal and his desiring to sell any shares of Stock (the “Seller”) shall first offer such shares to the Company in the following manner: the Seller shall notify the President of the Company in writing of the
Seller’s desire to sell the Shares, which notice shall contain the price and terms at which the Seller is willing to sell and the name of the proposed purchaser. All such offers must require payment in cash, and must allow the Company at least

  
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forty-five (45) days from the receipt of such notification in which to consummate the purchase. The Company shall have thirty (30) days after receipt of such notification by the
President either to accept or to reject the offer. The Company shall have the right to purchase all, but not less than all, of the offered shares on the terms offered. Failure of the Company either to accept or reject the offer in writing within the
30-day period shall constitute a rejection of the offer. An acceptance by the Company shall be timely given if mailed by registered mail within the 30-day period to the
most recent address of the record holder of the Shares in the stock records of the Company. 
 (d) In the event the Company rejects the
offer, the Seller may, at any time during the period of sixty (60) days following such rejection, dispose of the offered shares upon the terms and conditions set forth in the notice to the President, but may not otherwise or thereafter do so
without again complying with the foregoing rights of first refusal. In the event the Company accepts the offer, but fails to perform according to the terms of the offer, the Seller’s sole remedy shall be that the offered shares shall no longer
be subject to the foregoing rights of first refusal. 
 No shares shall be transferred on the books of the Company unless the foregoing
provisions have been complied with, but the Company, with the approval of the Board, may in any particular instance or instances waive these provisions with respect to any present or future sale, provided such waiver is in writing. 

12. Company Repurchase Right. 

(e) If Grantee ceases to be employed by the Company or one of its subsidiaries for any reason, the Company shall have the right, at any time
within seven (7) months after the date of Grantee’s death, in the event Grantee dies while an employee of Company or a subsidiary of the Company, or at any time within four (4) months after the date Grantee ceases to be employed or
provide other services to the Company for any other reason, to repurchase from Optionee or his personal representatives, as the case may be, all or any part of the shares purchased by Optionee pursuant to this option at the Fair Market Value of such
shares on the date of repurchase (the “Repurchase Option”). 
 (f) A Repurchase Option shall be exercised by written notice signed
by an officer of the Company. The purchase price shall be payable, at the option of the Company, in cancellation of all or a portion of any outstanding indebtedness of Grantee to the Company or in cash (by check) or both. 

(g) The Company may assign its right under this Section 12. 

(h) This Repurchase Option shall terminate immediately prior to the consummation of an Initial Public Offering. 

13. Market Standoff Agreement. Grantee shall not sell, dispose of, transfer, make any short sale of, grant any option for the purchase
of, or enter into any hedging or similar transaction with the same economic effect as a sale, any Stock or other securities of the Company held by Grantee (the “Restricted Securities”), during the
180-day period following the effective date of a registration statement of the Company filed under the Act (the “Lock Up Period”), or such longer period, as the underwriters or the Company shall
reasonably request consistent with other shares issued in accordance with the Plan. Grantee agrees to execute and deliver such other agreements as may be reasonably requested by the Company and/or the managing underwriter which are consistent with
the foregoing or which are 

  
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necessary to give further effect thereto. In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions with respect to Grantee’s Restricted Securities until
the end of such period. The underwriters of the Company’s stock are intended third party beneficiaries of this Section 10 and shall have the right, power and authority to enforce the provisions hereof as though they were a party hereto.

 14. Other Agreements. As a condition precedent to the receipt of the Shares pursuant to this Agreement, Grantee shall be required
to become a party to all applicable shareholders agreements, voting agreements, right of first refusal agreements and other agreements regarding the Stock of the Company. In the event of any conflict between the terms of this Agreement and any such
shareholders agreement, voting agreement, right of first refusal agreement or other agreement the terms of such other agreement shall control and be binding on Grantee. 

15. Miscellaneous. 
 (a)
This Agreement shall be binding upon the parties to it and their representatives, successors and assigns. 
 (b) This Agreement shall be
governed by the laws of the State of Delaware. 
 (c) Any requests or notices to be given under this Agreement shall be deemed given, and
any elections or exercises to be made or accomplished shall be deemed made or accomplished, upon actual delivery thereof to the designated recipient, or three days after deposit thereof in the United States mail, registered, return receipt requested
and postage prepaid, addressed, if to the Grantee, at the address provided below and, if to the Company, to the executive offices of the Company at its principal place of business registered with the State of Delaware (or to any successor address
for the Company’s principal place of business reflected in the Company’s filings with the State of Delaware or the SEC); provided that the Grantee may change his or her address by written notice as provided in this Section 12(c). 

(d) Except as permitted under the Plan, this Agreement may not be modified except in writing executed by each of the parties to it. 

IN WITNESS WHEREOF, the Board has caused this Restricted Stock Agreement to be executed on behalf of the Company, and the Grantee has executed
this Restricted Stock Agreement under seal, all as of the day and year first above written. 
  

							
	XL HYBRIDS, INC.	 		 	GRANTEE
				
	By:	 	 	 		 	 
		 	Name:                                     
                                         
                      	 		 	Name:                                     
                                         
                      
		 	Title:                                     
                                         
                        	 		 	Address:                                    
                                         
                   
		 		 		 	 
		 		 		 	 

  
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