Document:

Comverge, Inc. Non-Employee Director Compensation

 Exhibit 10.31 
 COMVERGE, INC. NON-EMPLOYEE DIRECTOR COMPENSATION 
 Effective January 1, 2007, each non-employee
director of Comverge, Inc. (the “Company”) shall receive: 
  

	 	•	 	an annual cash retainer of $20,000 paid in quarterly installments; 

  

	 	•	 	an additional cash retainer of $10,000, paid in quarterly installments, for each non-employee director who serves as the chairman of a standing committee of the Company’s board
of directors; 

  

	 	•	 	a cash fee of $1,500 per committee meeting for each non-employee director who serves as a member of a standing committee of the Company’s board of directors;

  

	 	•	 	an annual equity grant with an aggregate value of $60,000, where 50% of such value is in the form of restricted common stock and 50% in options to purchase common stock. The equity
grants will be awarded on the date of the Company’s annual stockholders’ meeting, except for a director whose term is expiring and is not standing for re-election. The restricted common stock will be valued at, and the option exercise
price will be, the closing market price of the Company’s common stock as reported on the Nasdaq Global Market on that date. The number of shares of restricted common stock to be granted will be determined by dividing $30,000 by the closing
market price, and the number of options to purchase common stock will be determined by dividing $30,000 by 50% of the closing market price. For example, if the closing market price is $10 per share on the date of grant, then the director would
receive 3,000 shares of restricted common stock ($30,000 divided by $10) and stock options to acquire 6,000 shares ($30,000 divided by $5, which represents 50% of the $10 per share restricted stock value) at a $10 exercise price. Both the restricted
common stock and the stock options will vest one-fourth each quarter over one year; and 

  

	 	•	 	a one-time equity grant of restricted common stock and options to purchase the Company’s common stock with an estimated aggregate value of $80,000 for each new non-employee
director elected or appointed the Company’s board of directors, with the number of shares determined on the same basis as the annual equity grant. This one-time equity grant will be made on the date of the new non-employee director’s
election or appointment to the Company’s board of directors. The restricted common stock will be valued at, and the option exercise price will be, the closing market price of the Company’s common stock as quoted on the Nasdaq Global Market
on that date. Both the restricted common stock and the stock options will vest one-sixteenth each quarter over a period of four years.Second Amendment to Demand Response Agreement between SDG&E and AER

 Exhibit 10.32 
 SECOND AMENDMENT 
 This SECOND AMENDMENT effective as of January 19, 2007 (“Effective Date”) is entered
into by and between San Diego Gas & Electric Company (“SDG&E”) and Alternative Energy Resources, Inc. (“Seller”). SDG&E and Seller are sometimes referred to herein as “Party” and collectively as the
“Parties.” 
 WHEREAS, the Parties entered into a Demand Response Capacity Delivery Agreement dated as of October 6, 2003 as
amended on November 18, 2004 (“Agreement); and 
 WHEREAS, the Parties agreed to assign the Agreement effective as of December
22, 2006, from Comverge, Inc. to a wholly owned subsidiary, Alternative Energy Resources, Inc. 
 WHEREAS, the Parties desire to amend
the Agreement to extend certain dates and Participant cycling options under the terms and conditions set forth in this Second Amendment. 
 NOW, THEREFORE, for mutual and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows: 
  

	1.	Effectiveness. The effectiveness of this Second Amendment is conditioned upon receiving Final CPUC Approval. “Final CPUC Approval” shall mean a final and
non-appealable order of the California Public Utilities Commission (“CPUC”), without conditions or modifications unacceptable to the Parties, or either of them, which approves this Second Amendment in its entirety, including payments to be
made by Buyer to Seller. The Parties agree to cooperate and use all reasonable efforts to obtain the Final CPUC Approval as soon as is practicable. Should the CPUC issue an order approving this Second Amendment with conditions or modifications that
materially alter the commercial aspects of this Second Amendment, the Parties shall have ten (10) Business Days from the mailing date of such order to provide the other Party written notice of the issuing Party’s acceptance or rejection of the
CPUC order as issued, provided, however, if a Party fails to provide written notification of its acceptance or rejection to the other Party within such ten (10) day period, that Party’s silence shall be deemed to constitute acceptance of the
CPUC order as issued and agreement by such Party that this condition has been satisfied, upon the Final Approval Date. “Final Approval Date” shall be defined as the first business day after the date on which the CPUC order approving this
Second Amendment becomes final and no longer subject to any appeal. If a notice of rejection is sent, the Parties agree to use good faith efforts to renegotiate this Second Amendment. If, within sixty (60) days, no agreement is reached, either Party
may terminate this Second Amendment upon delivery of notice to the other Party. Seller shall, within thirty (30) days from the Final Approval Date, implement required changes on the control web site in accordance this Second Amendment.

  

	2.	Recitals. The Parties agree to modify the first recital by replacing the phrase “30.2MW (but no more than 40 MW” to “42.2MW (but up to100MW at Seller’s
sole discretion)”. 

  

	3.	Recitals. The Parties agree to modify the second recital by replacing the reference to “40MW” with “100MW”. 

  

	4.	Article 1: Definitions. The Parties agree to modify the definition of “Control Season Day” by adding the following at the end thereof: “In addition,
‘Control Season Day’ means weekdays and weekend days during the Control Season (excluding Holidays) for Participants enrolled in the Program on or after the Final Approval Date of this Second Amendment and for other Participants who so
elect.” 

  

	5.	Article 1: Definitions. The Parties agree to modify the definition of “Program Event” applicable to Participants enrolled in the Program on or after the
Final Approval Date of this Second Amendment and for other Participants who so elect by changing the definition to read: “Program Events will be scheduled during weekdays and weekends excluding Holidays.” 

  

	6.	Article 1: Definitions. The Parties agree to modify the reference in the last sentence of the definition of “Program Year” by changing “October 31, 2004”
to “October 31, 2005.” 

  

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	7.	Article 2: Term and Terminations. The Parties agree to delete the reference to “2015” and replace it with “2016”, as the Parties have agreed to extend the
Agreement until October 31, 2016. 

  

	8.	Article 3: Project Description. The Parties agree to modify the second, third, and fourth sentences to read: “Each Participating Commercial Facility shall have an
annual average maximum demand of no greater than 100kW. The aggregate Demand Reduction of Participating Facilities made available to and purchased by SDG&E under this Agreement shall be no less than one (1) MW (and targeted at 42.2MW) but not
more than 100MW. SDG&E will pay each Participant of a Participating Commercial Facility or a Participating Residential Facility no less than $25/kW of Estimated Demand Reduction per Program Year pursuant to an enrollment agreement between
SDG&E and each Participant.” The Parties agree that Seller may install up to 100 MW at Seller’s sole discretion. 

  

	9.	Article 3: Project Description. The Parties agree to add the following new Section 3.2: “Cycles. So long as the End-use Equipment is capable of such, all Participating
Residential Facilities can elect to cycle at 100% or at 50%, and the Demand Reduction amount shall be adjusted in accordance with Section 4.2. So long as the End-use Equipment is capable of such, all Participating Commercial Facilities can elect to
cycle at 50% or 30%, and the Demand Reduction amount shall be based on and paid according to the M&E measurements of facilities that are in the 50% cycling group. 

  

	10.	Article 4.2 Demand Reduction shall be deleted in its entirety and replaced with the following: 

 “The Demand Reduction is the amount of kW/ton of Nameplate Capacity or horsepower (or appropriate alternate measurement unit as agreed to by the
Parties depending on the type of End-Use Equipment), which is reduced during the Control Season by Participating Facilities, as determined considering the cycling frequency of the End-Use Equipment in coordination with Section 10 of this Amendment
and by the results of the Measurement and Evaluation Impact Study conducted in January of each year during the term of this Agreement as described in detail in Article 10 (Project Measurement and Evaluation). For the first and second Program Years,
Estimated Demand Reduction will be determined by an engineering estimate of the expected load reduction per/ton of Nameplate Capacity. Notwithstanding the foregoing, for the first and second year following the Final Approval Date, Estimated Demand
Reduction will be determined by an alternative measurement as agreed to by the Parties for all other End-Use Equipment (except central air conditioning compressors). An engineering estimate will be developed by a method mutually agreed upon by both
Seller and SDG&E for all End-Use Equipment (except central air conditioning compressors), and could include a test at pre-determined Participating Facilities. For all End-Use Equipment (except central air conditioning compressors), an Estimated
Demand Reduction will be utilized for each Program Year’s Estimated Contract Capacity, until there is a mutually acceptable M&E study agreed to using reasonable procedures..” 
  

	11.	Article 5: Pricing/Payment Calculations. The Parties agree to modify Section 5.5.3 by deleting the reference to “30.2MW” and replacing it with “42.2MW”.

  

	12.	Article 5: Pricing/Payment Calculations. The Parties agree to modify Section 5.4 by deleting the section and replacing it with the following: 

 “Target Contract Capacity (TCC) shall mean: 
 8.7 MW by May 1, 2006 
 37.5 MW by May 1, 2007 
 42.2 MW by May 1, 2008, and up to 100 MW at the Seller’s sole discretion for duration of Agreement.” 
  

	13.	Article 5: Pricing/Payment Calculations. The Parties agree to modify the dates in Section 5.5 to replace all references to “2007” with references to
“2008”. 

  

	14.	Article 5: Pricing/Payment Calculations. The Parties agree to modify the date in Section 5.6 to replace the reference to “2015” to “2016”.

  

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	15.	Article 10. Metering Requirements. The Parties agree to modify Section 10.3.1 by changing the reference to “40MW” to “100MW”.

  

	16.	Article 10. Metering Requirements. The Parties agree to modify Section 10.6.1 by changing the reference to “40MW” to “100MW”.

  

	17.	Article 21: Collateral Requirement. The Parties agree to modify the dates in Section 21.1.1, 21.1.2, and 21.1.3 to read “2011” instead of “2010.”

  

	18.	No Other Modification. Except as modified and amended herein, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect.

 IN WITNESS WHEREOF, the Parties have read this Second Amendment, understand it and agree to be bound by its terms.

  

									
	SAN DIEGO GAS & ELECTRIC COMPANY	 		 	ALTERNATIVE ENERGY RESOURCES, INC.
					
	By:	 	/s/ Michael R. Niggli	 		 	 By:
	 	/s/ Frank A. Magnotti
	Name: 	 	Michael R. Niggli	 		 	Name: 	 	Frank A. Magnotti
	Its:	 	COO	 		 	Its:	 	Pres & COO AER

  

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