Document:

Specimen common stock certificate

 EXHIBIT 4.1 
  

Number 
 DE 
  
 [DISTRIBUTED ENERGY SYSTEMS LOGO APPEARS HERE] 
  
                          SHARES 
  

DISTRIBUTED ENERGY SYSTEMS CORP. 
  

	 INCORPORATED UNDER THE LAWS
 OF THE STATE OF
DELAWARE
	 	 SEE REVERSE FOR
 CERTAIN DEFINITIONS
 CUSIP 25475V 10 4

	 THIS IS TO CERTIFY THAT
	 	 

  
 IS THE
OWNER OF 
  
  
 FULLY PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK, 
 PAR VALUE $.01 PER SHARE, OF 
  
 DISTRIBUTED ENERGY SYSTEMS CORP. 
  
 (hereinafter called the “Corporation”), transferable on the books of the
Corporation by the holder hereof in person or by duly authorized attorney, upon surrender of this Certificate properly endorsed. This Certificate and the shares represented hereby are issued and shall be held subject to all provisions of the
Certificate of Incorporation and of the By-Laws of the Corporation (copies of which are on file with the Transfer Agent), to all of which the holder, by acceptance hereof, assents. 
  
 This Certificate is not valid unless countersigned and registered by the Transfer Agent and Registrar. 
  
 Witness the facsimile seal of the Corporation and the facsimile signatures of
its duly authorized officers. 
  
  

	 /S/    JOHN A. GLIDDEN

 Secretary
	 	 /S/    WALTER W. SCHROEDER

 President

  
  
 [DISTRIBUTED ENERGY SYSTEMS CORP. SEAL APPEARS HERE] 
  
 COUNTERSIGNED AND REGISTERED: 
 AMERICAN STOCK TRANSFER & TRUST COMPANY (NEW YORK,
N.Y.) 
 TRANSFER AGENT AND REGISTRAR 
  
  
 By:
                                        
                                        

 DISTRIBUTED ENERGY SYSTEMS CORP. 
  
 The Corporation will furnish without charge to each stockholder who so requests a statement of the designations, powers,
preferences and relative participating, optional or other special rights of each class of stock or series thereof of the Corporation and the qualifications, limitations or restrictions of such preferences and/or rights. Such request may be made to
the Corporation or the Transfer Agent. 
  
 The following
abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations: 
  
  

	     TEN COM –
	  	 as tenants in common
	  	UNIF GIFT MIN ACT –              Custodian
            
	     TEN ENT –
	  	 as tenants by the entireties
	  	(Cust)                 (Minor)
        
	     JT TEN –
	  	 as joint tenants with right of
 survivorship and not as tenants
	  	                     under Uniform
Gifts to Minors
                             Act
                                        
        

	 	  	 in common
	  	(State)                    

  
 Additional
abbreviations may also be used though not in the above list. 
  
 For value received, the undersigned hereby sells, assigns and transfers unto 
  

	 PLEASE INSERT SOCIAL SECURITY OR OTHER
	 	 
	 IDENTIFYING NUMBER OF ASSIGNEE:
	 	 
	 [                                       
         ]
	 	 

  
  

 (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE) 
  
  

  
  

  
  

 shares of the common stock represented by
the within Certificate, and do hereby irrevocably constitute and appoint 
  
  

 Attorney to transfer the said stock on the books of the within named Corporation with full power of substitution in the
premises. 
  
 Dated:
                                        
                 
  
  

 NOTICE: THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE
FACE OF THE CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER. 
  
 Signature(s) Guaranteed: 
  
  

 THE SIGNATURE(S) MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT
UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE GUARANTEE MEDALLION PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  
 KEEP THIS CERTIFICATE IN A SAFE PLACE. IF IT IS LOST, STOLEN, MUTILATED OR DESTROYED, THE CORPORATION WILL REQUIRE A BOND OF INDEMNITY AS A CONDITION TO THE ISSUANCE OF A REPLACEMENT CERTIFICATE.2003 Stock Incentive Plan of Distibuted Energy Systems Corp.

 EXHIBIT 10.1 
  
 DISTRIBUTED ENERGY SYSTEMS CORP. 
  
 2003 Stock Incentive Plan 
  
 1.    Purpose 
  
 The purpose of this 2003 Stock Incentive Plan (the “Plan”) of Distributed Energy Systems Corp., a Delaware
corporation (the “Company”), is to advance the interests of the Company’s stockholders by enhancing the Company’s ability to attract, retain and motivate persons who make (or are expected to make) important contributions to the
Company by providing such persons with equity ownership opportunities and performance-based incentives and thereby better aligning the interests of such persons with those of the Company’s stockholders. Except where the context otherwise
requires, the term “Company” shall include any of the Company’s present or future subsidiary corporations as defined in Section 424(f) of the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder (the
“Code”). 
  
 2.    Eligibility 
  
 All of
the Company’s employees, officers, directors, consultants and advisors (and any individuals who have accepted an offer for employment) are eligible to be granted options, restricted stock awards, or other stock-based awards (each, an
“Award”) under the Plan. Each person who has been granted an Award under the Plan shall be deemed a “Participant.” 
  
 3.    Administration, Delegation 
  
 (a)    Administration by Board of Directors.    The Plan will be administered by the Board
of Directors of the Company (the “Board”). The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may
correct any defect, supply any omission or reconcile any inconsistency in the Plan or any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and it shall be the sole and final judge of such expediency. All
decisions by the Board shall be made in the Board’s sole discretion and shall be final and binding on all persons having or claiming any interest in the Plan or in any Award. No director or person acting pursuant to the authority delegated by
the Board shall be liable for any action or determination relating to or under the Plan made in good faith. 
  
 (b)    Appointment of Committees.    To the extent permitted by applicable law, the Board
may delegate any or all of its powers under the Plan to one or more committees or subcommittees of the Board (a “Committee”). All references in the Plan to the “Board” shall mean the Board or a Committee of the Board to the
extent that the Board’s powers or authority under the Plan have been delegated to such Committee. 

 4.    Stock Available for Awards 
  
 (a)    Number of
Shares.    Subject to adjustment under Section 8, Awards may be made under the Plan for up to an aggregate number of shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”) equal to
the sum of (i) 2,000,000 shares of Common Stock; (ii) any shares of Common Stock reserved for issuance pursuant to the exercise of options to purchase Common Stock which were issued in exchange for options issued under the 2000 Stock Option Plan of
Proton Energy Systems, Inc. (the “2000 Plan”) that remain available for issuance upon adoption of this Plan by the stockholders; and (iii) all shares subject to awards granted under the 2000 Plan that expire, terminate, or are otherwise
surrendered, cancelled or forfeited (subject, however, in the case of Incentive Stock Options to any limitations under the Code); provided, however, that the maximum number of shares of Common Stock reserved for issuance under the 2000 Plan that may
be issued under this Plan shall not exceed 5,700,000 shares. 
  
 (b)    If any Award expires or is terminated, surrendered or canceled without having been fully exercised or is forfeited in whole or in part or results in any Common Stock not being issued, the
unused Common Stock covered by such Award shall again be available for the grant of Awards under the Plan, subject, however, in the case of Incentive Stock Options (as hereinafter defined), to any limitation required under the Code. Shares issued
under the Plan may consist in whole or in part of authorized but unissued shares or treasury shares. 
  
 (c)    Per-Participant Limit.    Subject to adjustment under Section 8, for Awards granted
after the Common Stock is registered under the Securities Exchange Act of 1934 (the “Exchange Act”), the maximum number of shares of Common Stock with respect to which Awards may be granted to any Participant under the Plan shall be
500,000 shares per calendar year. The per-Participant limit described in this Section 4(b) shall be construed and applied consistently with Section 162(m) of the Code (“Section 162(m)”). 
  
 5.    Stock Options 
  
 (a)    General.    The Board may grant options to purchase Common Stock (each, an “Option”) and determine the number of shares of Common Stock to be covered by each Option, the
exercise price of each Option and the conditions and limitations applicable to the exercise of each Option, including conditions relating to applicable federal or state securities laws, as it considers necessary or advisable. An Option which is not
intended to be an Incentive Stock Option (as hereinafter defined) shall be designated a “Nonstatutory Stock Option.” 
  
 (b)    Incentive Stock Options.    An Option that the Board intends to be an
“incentive stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be granted to employees of the Company and shall be subject to and construed consistently with the requirements of Section
422 of the Code. The Company shall have no liability to a Participant, or any other party, if an Option (or any part thereof) which is intended to be an Incentive Stock Option is not an Incentive Stock Option. 
  
 (c)    Exercise
Price.    The Board shall establish the exercise price at the time each Option is granted and specify it in the applicable option agreement; provided, however, that the 

  

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exercise price of all Incentive Stock Options shall not be less than 100% of the fair market value of the Common Stock, as determined by the Board, at the
time the Incentive Stock Option is granted. 
  
 (d)    Duration of Options.    Each Option shall be exercisable at such times and subject to such terms and conditions as the Board may specify in the applicable option agreement; provided,
however, that no Option will be granted for a term in excess of 10 years. 
  
 (e)    Exercise of Option.    Options may be exercised by delivery to the Company of a written notice of exercise signed by the proper person or by any other form of
notice (including electronic notice) approved by the Board together with payment in full as specified in Section 5(f) for the number of shares for which the Option is exercised. 
  
 (f)    Payment Upon Exercise.    Common Stock purchased upon
the exercise of an Option granted under the Plan shall be paid for as follows: 
  

	 	(1)	 	in cash or by check, payable to the order of the Company; 

  

	 	(2)	 	except as the Board may, in its sole discretion, otherwise provide in an option agreement, by (i) delivery of an irrevocable and unconditional undertaking by a creditworthy broker
to deliver promptly to the Company sufficient funds to pay the exercise price or (ii) delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions to a creditworthy broker to deliver promptly to the Company cash
or a check sufficient to pay the exercise price; 

  

	 	(3)	 	when the Common Stock is registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), by delivery of shares of Common Stock owned by the
Participant valued at their fair market value as determined by (or in a manner approved by) the Board in good faith (“Fair Market Value”), provided (i) such method of payment is then permitted under applicable law and (ii) such Common
Stock was owned by the Participant at least six months prior to such delivery; 

  

	 	(4)	 	payment of such other lawful consideration as the Board may determine; or 

  

	 	(5)	 	by any combination of the above permitted forms of payment. 

  
 6.    Restricted Stock 
  
 (a)    Grants.    The Board may grant Awards entitling recipients to acquire shares of
Common Stock, subject to the right of the Company to repurchase all or part of such shares at their issue price or other stated or formula price (or to require forfeiture of such shares if issued at no cost) from the recipient in the event that
conditions specified by the Board in the applicable Award are not satisfied prior to the end of the applicable restriction period or periods established by the Board for such Award (each, a “Restricted Stock Award”). 
  

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 (b)    Terms and Conditions.    The Board
shall determine the terms and conditions of any such Restricted Stock Award, including the conditions for repurchase (or forfeiture) and the issue price, if any. Any stock certificates issued in respect of a Restricted Stock Award shall be
registered in the name of the Participant and, unless otherwise determined by the Board, deposited by the Participant, together with a stock power endorsed in blank, with the Company (or its designee). At the expiration of the applicable restriction
periods, the Company (or such designee) shall deliver the certificates no longer subject to such restrictions to the Participant or if the Participant has died, to the beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the Participant’s death (the “Designated Beneficiary”). In the absence of an effective designation by a Participant, Designated Beneficiary shall mean the
Participant’s estate. 
  
 7.    Other
Stock-Based Awards 
  
 The Board shall have the right to grant
other Awards based upon the Common Stock having such terms and conditions as the Board may determine, including the grant of shares based upon certain conditions, the grant of securities convertible into Common Stock and the grant of stock
appreciation rights. 
  
 8.    Adjustments
for Changes in Common Stock and Certain Other Events 
  
 (a)    Changes in Capitalization.    In the event of any stock split, reverse stock split, stock dividend, recapitalization, combination of shares, reclassification of
shares, spin-off or other similar change in capitalization or event, or any distribution to holders of Common Stock, other than a normal cash dividend, (i) the number and class of securities available under this Plan, (ii) the per-Participant limit
set forth in Section 4(c), (iii) the number and class of securities and exercise price per share subject to each outstanding Option, (iv) the repurchase price per share subject to each outstanding Restricted Stock Award and (v) the terms of each
other outstanding Award shall be appropriately adjusted by the Company (or substituted Awards may be made, if applicable) to the extent the Board shall determine, in good faith, that such an adjustment (or substitution) is necessary and appropriate.
If this Section 8(a) applies and Section 8(c) also applies to any event, Section 8(c) shall be applicable to such event, and this Section 8(a) shall not be applicable. 
  
 (b)    Liquidation or Dissolution.    In the event of a
proposed liquidation or dissolution of the Company, the Board shall upon written notice to the Participants provide that all then unexercised Options will (i) become exercisable in full as of a specified time at least 10 business days prior to the
effective date of such liquidation or dissolution and (ii) terminate effective upon such liquidation or dissolution, except to the extent exercised before such effective date. The Board may specify the effect of a liquidation or dissolution on any
Restricted Stock Award or other Award granted under the Plan at the time of the grant of such Award. 
  
 (c)    Reorganization and Change in Control Events 
  

	 	(1)	 	Definitions 

  

	 	(a)	 	A “Reorganization Event” shall mean: 

  

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	 	(i)	 	any merger or consolidation of the Company with or into another entity as a result of which the Common Stock is converted into or exchanged for the right to receive cash, securities
or other property; or 

  

	 	(ii)	 	any exchange of shares of the Company for cash, securities or other property pursuant to a statutory share exchange transaction. 

  

	 	(b)	 	A “Change in Control Event” shall mean: 

  

	 	(i)	 	the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange
Act”)) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 promulgated under the Exchange Act) 30% or more of either (x)
the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors
(the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection (i), the following acquisitions shall not constitute a Change in Control Event: (A) any acquisition directly from the
Company (excluding an acquisition pursuant to the exercise, conversion or exchange of any security exercisable for, convertible into or exchangeable for common stock or voting securities of the Company, unless the Person exercising, converting or
exchanging such security acquired such security directly from the Company or an underwriter or agent of the Company), (B) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company, or (C) any acquisition by any corporation pursuant to a Business Combination (as defined below) which complies with clauses (x) and (y) of subsection (iii) of this definition; or 

  

	 	(ii)	 	 such time as the Continuing Directors (as defined below) do not constitute a majority of the Board (or, if applicable, the Board of Directors of a successor
corporation to the Company), where the term 

  

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“Continuing Director” means at any date a member of the Board (x) who was a member of the Board on the date of the initial adoption of this Plan by
the Board or (y) who was nominated or elected subsequent to such date by at least a majority of the directors who were Continuing Directors at the time of such nomination or election or whose election to the Board was recommended or endorsed by at
least a majority of the directors who were Continuing Directors at the time of such nomination or election; provided, however, that there shall be excluded from this clause (y) any individual whose initial assumption of office occurred
as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents, by or on behalf of a person other than the Board; or

  

	 	(iii)	 	 the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or
substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, each of the following two conditions is satisfied: (x) all or substantially all of the individuals and
entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding
shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall
include, without limitation, a corporation which as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries) (such resulting or acquiring corporation is
referred to herein as the “Acquiring Corporation”) in substantially the same proportions as their ownership of the Outstanding Company Common Stock and Outstanding Company Voting Securities, respectively, immediately prior to such Business
Combination and (y) no Person (excluding the Acquiring Corporation or any employee benefit 

  

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plan (or related trust) maintained or sponsored by the Company or by the Acquiring Corporation) beneficially owns, directly or indirectly, 30% or more of the
then-outstanding shares of common stock of the Acquiring Corporation, or of the combined voting power of the then-outstanding securities of such corporation entitled to vote generally in the election of directors (except to the extent that such
ownership existed prior to the Business Combination). 

  

	 	(c)	 	“Good Reason” shall mean any significant diminution in the Participant’s title, authority, or responsibilities from and after such Reorganization Event or Change in
Control Event, as the case may be, or any reduction in the annual cash compensation payable to the Participant from and after such Reorganization Event or Change in Control Event, as the case may be, or the relocation of the place of business at
which the Participant is principally located to a location that is greater than 50 miles from the current site. 

  

	 	(d)	 	“Cause” shall mean any (i) willful failure by the Participant, which failure is not cured within 30 days of written notice to the Participant from the Company, to perform
his or her material responsibilities to the Company or (ii) willful misconduct by the Participant which affects the business reputation of the Company. The Participant shall be considered to have been discharged for “Cause” if the Company
determines, within 30 days after the Participant’s resignation, that discharge for Cause was warranted. 

  

	 	(2)	 	Effect on Options 

  

	 	(a)	 	 Reorganization Event.    Upon the occurrence of a Reorganization Event (regardless of whether such event also constitutes a Change in
Control Event), or the execution by the Company of any agreement with respect to a Reorganization Event (regardless of whether such event will result in a Change in Control Event), the Board shall provide that all outstanding Options shall be
assumed, or equivalent options shall be substituted, by the acquiring or succeeding corporation (or an affiliate thereof); provided that if such Reorganization Event also constitutes a Change in Control Event and on or prior to the
first anniversary of the date of the consummation of the Reorganization Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good Reason by the Participant or is terminated without
Cause by the Company or 

  

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the acquiring or succeeding corporation, except to the extent specifically provided to the contrary in the instrument evidencing any Option or any other
agreement between a Participant and the Company, the number of shares subject to the Option which were not already vested shall be exercisable upon the occurrence of such Reorganization Event. For purposes hereof, an Option shall be considered to be
assumed if, following consummation of the Reorganization Event, the Option confers the right to purchase, for each share of Common Stock subject to the Option immediately prior to the consummation of the Reorganization Event, the consideration
(whether cash, securities or other property) received as a result of the Reorganization Event by holders of Common Stock for each share of Common Stock held immediately prior to the consummation of the Reorganization Event (and if holders were
offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding shares of Common Stock); provided, however, that if the consideration received as a result of the Reorganization Event is not solely
common stock of the acquiring or succeeding corporation (or an affiliate thereof), the Company may, with the consent of the acquiring or succeeding corporation, provide for the consideration to be received upon the exercise of Options to consist
solely of common stock of the acquiring or succeeding corporation (or an affiliate thereof) equivalent in fair market value to the per share consideration received by holders of outstanding shares of Common Stock as a result of the Reorganization
Event. 

  
 Notwithstanding the
foregoing, if the acquiring or succeeding corporation (or an affiliate thereof) does not agree to assume, or substitute for, such Options, then the Board shall, upon written notice to the Participants, provide that all then unexercised Options will
become exercisable in full as of a specified time prior to the Reorganization Event and will terminate immediately prior to the consummation of such Reorganization Event, except to the extent exercised by the Participants before the consummation of
such Reorganization Event; provided, however, that in the event of a Reorganization Event under the terms of which holders of Common Stock will receive upon consummation thereof a cash payment for each share of Common Stock surrendered pursuant to
such Reorganization Event (the “Acquisition Price”), then the Board may instead provide that all outstanding Options shall terminate upon consummation of such Reorganization Event and that each Participant shall 

  

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receive, in exchange therefor, a cash payment equal to the amount (if any) by which (A) the Acquisition Price multiplied by the number of shares of Common
Stock subject to such outstanding Options (whether or not then exercisable), exceeds (B) the aggregate exercise price of such Options. 
  

	 	(b)	 	Change in Control Event that is not a Reorganization Event.    Following the occurrence of a Change in Control Event that does not also constitute a
Reorganization Event, if, on or prior to the first anniversary of the date of the consummation of the Change in Control Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good
Reason by the Participant or is terminated without Cause by the Company or the acquiring or succeeding corporation, except to the extent specifically provided to the contrary in the instrument evidencing any Option or any other agreement between a
Participant and the Company, the vesting schedule of such Option shall be accelerated in part so that the number of shares that would otherwise have first become vested on any date after the date of the Change in Control Event shall immediately
become exercisable. 

  

	 	(3)	 	Effect on Restricted Stock Awards 

  

	 	(a)	 	Reorganization Event that is not a Change in Control Event.    Upon the occurrence of a Reorganization Event that is not a Change in Control Event, the
repurchase and other rights of the Company under each outstanding Restricted Stock Award shall inure to the benefit of the Company’s successor and shall apply to the cash, securities or other property which the Common Stock was converted into
or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to the Common Stock subject to such Restricted Stock Award. 

  

	 	(b)	 	 Change in Control Event.    Following the occurrence of a Change in Control Event (regardless of whether such event also constitutes a
Reorganization Event), if on or prior to the first anniversary of the date of the consummation of the Change in Control Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good
Reason by the Participant or is terminated without Cause by the Company or the acquiring or succeeding corporation, except to the extent specifically provided to the contrary in the instrument evidencing any Restricted Stock Award or any other
agreement between a 

  

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Participant and the Company, the vesting schedule of all Restricted Stock Awards shall be accelerated in part so that the number of shares that would
otherwise have first become free from conditions or restrictions on any date after the date of the Change in Control Event shall immediately become free from conditions or restrictions. 

  

	 	(4)	 	Effect on Other Awards 

  

	 	(a)	 	Reorganization Event that is not a Change in Control Event.    The Board shall specify the effect of a Reorganization Event that is not a Change in
Control Event on any other Award granted under the Plan at the time of the grant of such Award. 

  

	 	(b)	 	Change in Control Event.    Following the occurrence of a Change in Control Event (regardless of whether such event also constitutes a Reorganization
Event), if on or prior to the first anniversary of the date of the consummation of the Change in Control Event, the Participant’s employment with the Company or the acquiring or succeeding corporation is terminated for Good Reason by the
Participant or is terminated without Cause by the Company or the acquiring or succeeding corporation, except to the extent specifically provided to the contrary in the instrument evidencing any Award or any other agreement between a Participant and
the Company, the vesting schedule of all other Awards shall be accelerated in part so that the number of shares that would otherwise have first become exercisable, realizable, vested or free from conditions or restrictions on any date after the date
of the Change in Control Event shall immediately become exercisable, realizable, vested or free from conditions or restrictions. 

  

	 	(5)	 	Limitations.    Notwithstanding the foregoing provisions of this Section 8(c), if the Change in Control Event is intended to be accounted for as a
“pooling of interests” for financial accounting purposes, and if the acceleration to be effected by the foregoing provisions of this Section 8(c) would preclude accounting for the Change in Control Event as a “pooling of
interests” for financial accounting purposes, then no such acceleration shall occur upon the Change in Control Event. 

  

	 	(6)	 	Proton/Northern.    The merger transactions whereby subsidiaries of the Company are merged into Proton Energy Systems, Inc. and Northern Power Systems,
Inc. shall not be deemed to be either a Reorganization Event or a Change in Control Event. 

  

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 9.    General Provisions Applicable to Awards 
  
 (a)    Transferability of
Awards.    Except as the Board may otherwise determine or provide in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by the person to whom they are granted, either voluntarily or by
operation of law, except by will or the laws of descent and distribution, and, during the life of the Participant, shall be exercisable only by the Participant. References to a Participant, to the extent relevant in the context, shall include
references to authorized transferees. 
  
 (b)    Documentation.    Each Award shall be evidenced by a written instrument in such form as the Board shall determine. Each Award may contain terms and conditions in addition to those set
forth in the Plan. 
  
 (c)    Board Discretion.    Except as otherwise provided by the Plan, each Award may be made alone or in addition to or in relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly. 
  
 (d)    Termination of Status.    The Board shall determine the effect on an Award of the disability, death, retirement, authorized leave of absence or other change in the
employment or other status of a Participant and the extent to which, and the period during which, the Participant, the Participant’s legal representative, conservator, guardian or Designated Beneficiary may exercise rights under the Award.

  
 (e)    Withholding.    Each Participant shall pay to the Company, or make provision satisfactory to the Board for payment of, any taxes required by law to be withheld in connection with Awards
to such Participant no later than the date of the event creating the tax liability. Except as the Board may otherwise provide in an Award, when the Common Stock is registered under the Exchange Act, Participants may, to the extent then permitted
under applicable law, satisfy such tax obligations in whole or in part by delivery of shares of Common Stock, including shares retained from the Award creating the tax obligation, valued at their Fair Market Value. The Company may, to the extent
permitted by law, deduct any such tax obligations from any payment of any kind otherwise due to a Participant. 
  
 (f)    Amendment of Award.    The Board may amend, modify or terminate any outstanding
Award, including but not limited to, substituting therefor another Award of the same or a different type, changing the date of exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option, provided that the
Participant’s consent to such action shall be required unless the Board determines that the action, taking into account any related action, would not materially and adversely affect the Participant. 
  
 (g)    Conditions on Delivery of
Stock.    The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously delivered under the Plan until (i) all conditions of the Award have been
met or removed to the satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters in connection with the issuance and delivery of such shares have been satisfied, including any applicable securities laws
and any applicable stock exchange or stock market rules and regulations, and (iii) the Participant has executed and delivered to the Company such 

  

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representations or agreements as the Company may consider appropriate to satisfy the requirements of any applicable laws, rules or regulations. 

 
 (h)    Acceleration.    The Board may at any time provide that any Options shall become immediately exercisable in full or in part, that any Restricted Stock Awards shall be free of
restrictions in full or in part or that any other Awards may become exercisable in full or in part or free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be. 
  
 10.    Miscellaneous 
  
 (a)    No Right to Employment or
Other Status.    No person shall have any claim or right to be granted an Award, and the grant of an Award shall not be construed as giving a Participant the right to continued employment or any other relationship with the
Company. The Company expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a Participant free from any liability or claim under the Plan, except as expressly provided in the applicable Award. 
  
 (b)    No Rights as
Stockholder.    Subject to the provisions of the applicable Award, no Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any shares of Common Stock to be distributed with respect to
an Award until becoming the record holder of such shares. Notwithstanding the foregoing, in the event the Company effects a split of the Common Stock by means of a stock dividend and the exercise price of and the number of shares subject to such
Option are adjusted as of the date of the distribution of the dividend (rather than as of the record date for such dividend), then an optionee who exercises an Option between the record date and the distribution date for such stock dividend shall be
entitled to receive, on the distribution date, the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise, notwithstanding the fact that such shares were not outstanding as of the close of business on the record
date for such stock dividend. 
  
 (c)    Effective Date and Term of Plan.    The Plan shall become effective on the date on which it is adopted by the Board but no Award granted to a Participant that is intended to comply with
Section 162(m) shall become exercisable, vested or realizable, as applicable to such Award, unless and until the Plan has been approved by the Company’s stockholders to the extent stockholder approval is required under Section 162(m) in the
manner required under Section 162(m) (including the vote required under Section 162(m)). No Awards shall be granted under the Plan after the completion of ten years from the earlier of (i) the date on which the Plan was adopted by the Board or (ii)
the date the Plan was approved by the Company’s stockholders, but Awards previously granted may extend beyond that date. (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any portion thereof at any time. 

 
 (d)    Governing
Law.    The provisions of the Plan and all Awards made hereunder shall be governed by and interpreted in accordance with the laws of the State of Delaware, without regard to any applicable conflicts of law. 
  

 12 

 Adopted by the Board of Directors of the Company in July, 2003. 
  
 Approved by the stockholders of the Company 
in July,
2003. 
  

 13

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