Document:

Exhibit 10.3

 

[EnerNOC Letterhead]

 

March 1, 2010

 

Timothy G. Healy

c/o EnerNOC, Inc.

101 Federal Street

Suite 1100

Boston, MA 02110

 

This letter is to confirm our understanding with
respect to your continued employment by EnerNOC, Inc. (the “Company”) and
supersedes in its entirety the Amended and Restated Employment Agreement
entered into by you and the Company dated August 10, 2007, as further
amended February 21, 2008 (the “Prior Employment Agreement”).

 

In consideration of the mutual promises and covenants
contained in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby mutually acknowledged, we have
agreed, effective March 1, 2010, as follows:

 

1.             Employment.

 

(a)           Subject to the terms
and conditions of this Agreement, the Company will employ you, and you will be
employed by the Company and/or any Company affiliate (collectively referred to
herein as the “Company Group”) designated by the Company, as Chief Executive Officer  reporting to the Board of Directors.  You will have the responsibilities, duty and
authority commensurate with the position of Chief Executive Officer. 
You will also perform such other and/or different services for the
Company as may be assigned to you from time to time by the Board of Directors.

 

(b)           Devotion to Duties.  While you are employed hereunder, you will
use your best efforts, skills and abilities to perform faithfully all duties
assigned to you pursuant to this Agreement and to devote your full business
time and energies to the business and affairs of the Company Group.  While you are employed hereunder, you will
not undertake any other employment from any person or entity without the prior
written consent of the Company.

 

2.             Employment At Will.  Your employment hereunder will be on an
“at-will” basis and may be terminated by the Company or by you for any reason
or for no reason.

 

 

3.             Compensation.

 

(a)           Base Salary.  During the period that you are employed by
the Company, the Company will pay you a base salary at the annual rate of
$400,000, which amount may be adjusted upwards
in the sole discretion of the Board of Directors or its designee  (the “Base Salary”). 
The Base Salary will be payable in substantially equal installments in
accordance with the Company’s payroll practices as in effect from time to
time.  The Company will deduct from each
such installment all amounts required to be deducted or withheld under
applicable law or under any employee benefit plan in which you participate.  You
understand and acknowledge that the annualized amount of the Base Salary is set
forth as a matter of convenience and does not constitute nor will be deemed to
constitute an agreement by the Company to employ you for any specific period of
time.

 

(b)           Annual
Performance Bonus.  You will be
eligible to receive an annual performance bonus in accordance with the 2010
Executive Officer Bonus Plan (or, if applicable, any successor plan) equal to a
percentage of your Base Salary (the “Target Annual Performance Bonus”), but
which the actual amount paid will be based on whether you achieve performance
goals that are identified by the Company in accordance with the then applicable
bonus plan.

 

(c)           Fringe Benefits.  You will be entitled to participate in any
employee benefit plans which the Company provides or may establish for the
benefit of its executives generally (for example, group life, disability,
medical, dental and other insurance, retirement, pension, profit-sharing and
similar plans) (collectively, the “Fringe Benefits”), provided that the Fringe
Benefits will not include any stock option or similar plans relating to the
grant of equity securities of the Company. 
Your eligibility to participate in the Fringe Benefits and receive
benefits thereunder will be subject to the plan documents governing such Fringe
Benefits.  Nothing contained herein will
require the Company to establish or maintain any Fringe Benefits.

 

(d)           Reimbursement of
Expenses.  Upon presentation of
documentation of such expenses reasonably satisfactory to the Company, the
Company will reimburse you for all ordinary and reasonable out-of-pocket
business expenses, including parking expenses, that are reasonably incurred by
you in furtherance of the Company’s business in accordance with the Company’s
policies with respect thereto as in effect from time to time; provided,
however, all reimbursements will be made by March 15th of the year
after the year in which the expenses are incurred.

 

4.             Payments Upon Termination.

 

(a)           In the event of the
termination of your employment hereunder for any reason or for no reason, the
Company (a) will pay to you (or to your estate) (i) the portion of
your Base Salary that has accrued prior to such termination and has not yet
been paid, and (ii) an amount equal to the value of your accrued unused
vacation days; and (b) will reimburse you for expenses properly incurred
by you on behalf of the Company prior to such termination 

 

 

and properly
documented in accordance with Section 3(d) above.  Such amounts will be paid promptly after
termination.

 

(b)           If the Company
terminates your employment without Cause, or you terminate your employment with
Good Reason, the Company will pay you an amount equal to your Severance
Compensation in twenty (20) equal monthly installments in arrears commencing
one month after the date of termination and shall also pay you, on the date of
your termination, your Accrued Base Compensation as of the termination
date.  The Company’s obligation to make
such payments to you shall cease upon your material breach of any written
agreement between you and the Company or of any written policy of the Company
by which you are bound, if such breach causes or is likely to cause material
harm to the Company.

 

(c)           If the Company
terminates your employment at any time for Cause, or upon your death or
Disability, the Company will pay you your Accrued Base Compensation.

 

(d)           Upon any termination
of your employment with the Company to which Section 4(b) applies,
the Company shall maintain the benefits that you were receiving as of the termination
date and shall take such measures as are permissible under its medical, life,
and disability insurance and any other employee benefit plans or programs to
continue coverage or reimbursement for you (and your family, if applicable) on
the same terms (including any required contribution by you) as immediately
prior to such termination.  If it is not
permissible to continue any such coverage under any such insurance plans, the
Company will pay you on the same schedule as set forth in Section 4(b), as
additional severance compensation, such amount, net of state and federal income
taxes payable by you with respect thereto, as will be sufficient for you to
obtain such insurance coverage on an individual basis assuming that you (and
each member of your family who is to be covered) is a “standard risk” for
insurance purposes.  Your rights under
this Section 4(d) shall continue only for so long as you are entitled
to receive payments of Severance Compensation under Section 4(b).

 

(e)           Definitions.  As used in this Section 4, the following
terms shall have the following meanings:

 

(i)            “Accrued
Base Compensation”:  all amounts of
compensation for services rendered to the Company that have been earned or
accrued through the date of your termination of employment but that have not
been paid as of such date including (i) Base Salary, (ii) reimbursement
for reasonable and necessary business expenses incurred by you on behalf of the
Company during the period ending on such date, and (iii) vacation pay; provided, however, that Accrued
Compensation shall not include any amounts described in clause (i) that
have been deferred pursuant to any salary reduction or deferred compensation
elections made by you.

 

 

(ii)           “Cause”:
(i) willful
failure to perform, or gross negligence in the performance of, your duties for
the Company or any of its affiliates;  (ii) knowing
and material breach by you of any obligation to the Company or any of its
affiliates with respect to confidential information, non-competition,
non-solicitation or the like; (iii) your breach of fiduciary duty, fraud,
embezzlement or other material dishonesty with respect to the Company or any of
its affiliates; or (iv) your conviction of, or plea of nolo contendere to,
a felony (other than felonies vehicular in nature) or any other crime involving
moral turpitude; provided, however that with respect to the grounds set forth
in Section 4(e)(ii)(i), Cause shall not be deemed to exist until you have
been given written notice of the facts or circumstances allegedly constituting
such grounds and, where reasonably subject to cure, thirty (30) days to cure.

 

(iii)          “Change
of Control”:  (i) the sale of
all or substantially all of the assets or issued and outstanding capital stock
of the Company, or (ii) merger or consolidation involving the Company in
which stockholders of the Company immediately before such merger or
consolidation do not own immediately after such merger or consolidation capital
stock or other equity interests of the surviving corporation or entity representing
more than fifty percent in voting power of capital stock or other equity
interests of such surviving corporation or entity outstanding immediately after
such merger or consolidation.

 

(iv)          “Disability”: a physical or
mental infirmity that impairs your ability to substantially perform your duties
with the Company for six consecutive months.

 

(v)           “Good
Reason”: (i) a substantial reduction in your then current base salary,
without your consent; or (ii) material and continuing diminution of your
title or your responsibilities, duties and authority in the operation and
management of the Company as compared to such title or responsibilities, duties
and authority on the date of this Agreement, without your consent.

 

(vi)          “Severance Compensation”: 1.66
times your Base Salary and 1.66 times your Target Annual Performance Bonus on
the effective date of termination.

 

(vii)         “Stock Award”: shall mean any
grant of equity under the Company’s Amended and Restated 2003 Stock Option and
Incentive Plan, 2007 Employee, Director and Consultant Stock Plan or any
subsequent stock plan of the Company.

 

5.             Change of Control.  In the event of a Change of Control in which
the Company is valued at equal to or greater than $75 million, then,
notwithstanding any contrary or inconsistent provision of any Stock Award
granted to you by the Company, an additional number of shares or options equal
to one hundred percent (100%) of the total shares or options in the Stock Award
shall, on the date of the Change of Control, become fully vested and
immediately exercisable.

 

 

6.             Parachute Payment.  If any payment or benefit you would receive
under this Agreement, when combined with any other payment or benefit you
receive pursuant to a Change of Control (“Payment”) would (i) constitute a
“parachute payment” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”), and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be either (x) the full amount
of such Payment or (y) such lesser amount (with cash payments being
reduced before stock option compensation) as would result in no portion of the
Payment being subject to the Excise Tax, whichever of the foregoing amounts,
taking into account the applicable federal, state and local employment taxes,
income taxes, and the Excise Tax results in your receipt, on an after-tax
basis, of the greater amount of the Payment notwithstanding that all or some
portion of the Payment may be subject to the Excise Tax.

 

7.             Mutual Release.  Upon any termination of your employment with
the Company to which Section 4(b) applies, you and the Company shall
execute a mutual release.  Your execution
of such mutual release shall be a condition precedent to the effectiveness of Section 4(b) and
4(c).

 

8.             409A
Compliance.

 

(a)           Notwithstanding
any other provision with respect to the timing of payments under this
Agreement, if, at the time of your termination, you are deemed to be a
“specified employee” of the Company within the meaning of Section 409A of
the Code, then limited only to the extent necessary to comply with the
requirements of Section 409A of the Code, any payments to which you may
become entitled under this Agreement which are subject to Section 409A of
the Code (and not otherwise exempt from its application) will be withheld until
the first (1st) business day of the seventh (7th) month following your
termination of employment, at which time you shall be paid an aggregate amount
equal to the accumulated, but unpaid, payments otherwise due to you under the
terms of this Agreement.

 

(b)           The Company does not guarantee the
tax treatment or tax consequences associated with any payment or benefit set
forth in this Agreement, including but not limited to consequences related to Section 409A
of the Code.  You and the Company agree
to both negotiate in good faith and jointly execute an amendment to modify this
Agreement to the extent necessary to comply with the requirements of Code Section 409A;
provided that no such amendment shall increase the total financial
obligation of the Company under this Agreement. 
In the event that the Company determines in good faith that it is
required to withhold taxes from any payment or benefit already provided to you,
you agree to pay to the Company on demand the amount determined by the Company.

 

9.             Records.  Upon termination of your employment hereunder
for any reason or for no reason and at any other time requested by the Company,
you will deliver to the Company Group any property of the Company Group which
may be in your possession, including products, materials, memoranda, notes,
records, reports or other documents or photocopies of the same.

 

10.           Insurance.  The Company, in its sole discretion, may
apply for and purchase key person life insurance on your life in an amount
determined by the Company with the Company 

 

 

Group
as beneficiary and one or more other policies of insurance insuring your
life.  You will submit to any medical or
other examinations and to execute and deliver any applications or other
instruments in writing that are reasonably necessary to effectuate such
insurance.

 

11.           Representations.  You hereby represent and warrant to the
Company that you understand this Agreement, that you enter into this Agreement
voluntarily and that your employment under this Agreement will not conflict
with any legal duty owned by you to any other party, or with any agreement to
which you are a party or by which you are bound, including, without limitation,
any non-competition or non-solicitation provision contained in any such
agreement.  You will indemnify and hold
harmless the Company Group and its officers, directors, security holders,
partners, members, employees, agents and representatives against loss, damage,
liability or expense arising from any claim based upon circumstances alleged to
be inconsistent with such representation and warranty.

 

12.           General.

 

(a)           Other Agreements.  The purpose of this Agreement is to set out
the above terms and conditions of your continued employment with the
Company.  It is intended to and
supersedes in its entirety your Prior Employment Agreement, which is hereby
deemed terminated and of no further force and effect.  However, this Agreement is not intended to
and does not supersede any other agreements you may have with the Company,
including, but not limited to your  Non-Disclosure
Agreement.  No statement, representation,
warranty, covenant or agreement of any kind not expressly set forth in this
Agreement, however, will affect, or be used to interpret, change or restrict,
the express terms and provisions of this Agreement.

 

(b)           Modifications and
Amendments.  The terms and provisions
of this Agreement may be modified or amended only by written agreement executed
by the parties hereto.

 

(c)           Waivers and
Consents.  The terms and provisions
of this Agreement may be waived, or consent for the departure therefrom
granted, only by written document executed by the party entitled to the
benefits of such terms or provisions.  No
such waiver or consent will be deemed to be or will constitute a waiver or
consent with respect to any other terms or provisions of this Agreement,
whether or not similar.  Each such waiver
or consent will be effective only in the specific instance and for the purpose
for which it was given, and will not constitute a continuing waiver or consent.

 

(d)           Assignment.  The Company may assign its rights and
obligations hereunder to any person or entity that succeeds to all or
substantially all of the Company’s business or that aspect of the Company’s
business in which you are principally involved or to any Company
affiliate.  You may not assign your
rights and obligations under this Agreement without the prior written consent
of the Company and any such attempted assignment by you without the prior
written consent of the Company will be void.

 

 

(e)           Benefit.  All statements, representations, warranties,
covenants and agreements in this Agreement will be binding on the parties
hereto and will inure to the benefit of the respective successors and permitted
assigns of each party hereto.  Nothing in
this Agreement will be construed to create any rights or obligations except
between the Company and you, except for your obligations to the Company Group
as set further herein, and no person or entity (except for a Company affiliate
as set forth herein) will be regarded as a third-party beneficiary of this
Agreement.

 

(f)            Governing Law.  This Agreement and the rights and obligations
of the parties hereunder will be construed in accordance with and governed by
the law of Massachusetts, without giving effect to the conflict of law
principles thereof.

 

(g)           Jurisdiction,
Venue and Service of Process.  Any
legal action or proceeding with respect to this Agreement will be brought in the courts of Massachusetts.  By execution and delivery of this Agreement,
each of the parties hereto accepts for itself and in respect of its property,
generally and unconditionally, the exclusive jurisdiction of the aforesaid
courts.

 

(h)           WAIVER OF JURY
TRIAL.  ANY ACTION, DEMAND, CLAIM OR
COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT WILL BE RESOLVED BY A
JUDGE ALONE AND EACH OF YOU AND THE COMPANY WAIVE ANY RIGHT TO A JURY TRIAL
THEREOF.

 

(i)            Headings and
Captions.  The headings and captions
of the various subdivisions of this Agreement are for convenience of reference
only and will in no way modify or affect the meaning or construction of any of
the terms or provisions hereof.

 

(j)            Counterparts.  This Agreement may be executed in two or more
counterparts, and by different parties hereto on separate counterparts, each of
which will be deemed an original, but all of which together will constitute one
and the same instrument.

 

(k)           Opportunity to
Review.  You hereby acknowledge that
you have had adequate opportunity to review these terms and conditions and to
reflect upon and consider the terms and conditions of this Agreement, and that
you have had the opportunity to consult with counsel of your own choosing
regarding such terms.  You further
acknowledge that you fully understand the terms of this Agreement and have
voluntarily executed this Agreement.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

If the foregoing
accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this letter.

 

	
   

  	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EnerNOC, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  David B. Brewster

  
	
   

  	
   

  	
  Name: David B. Brewster

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted and Approved

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Timothy G. Healy

  	
   

  	
  March 1, 2010

  
	
  Timothy G. Healy

  	
   

  	
  DateExhibit 10.4

 

[EnerNOC Letterhead]

 

March 1, 2010

 

David B. Brewster

c/o EnerNOC, Inc.

101 Federal Street

Suite 1100

Boston, MA 02110

 

This letter is to confirm our understanding with
respect to your continued employment by EnerNOC, Inc. (the “Company”) and
supersedes in its entirety the Amended and Restated Employment Agreement
entered into by you and the Company dated August 10, 2007, as further
amended February 21, 2008 (the “Prior Employment Agreement”).

 

In consideration of the mutual promises and covenants
contained in this Agreement, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby mutually acknowledged, we have
agreed, effective March 1, 2010, as follows:

 

1.             Employment.

 

(a)           Subject to the terms
and conditions of this Agreement, the Company will employ you, and you will be
employed by the Company and/or any Company affiliate (collectively referred to
herein as the “Company Group”) designated by the Company, as President  reporting
to the Board of Directors.  You will have the responsibilities, duty and
authority commensurate with the position of President.  You will also
perform such other and/or different services for the Company as may be assigned
to you from time to time by the Board
of Directors.

 

(b)           Devotion to Duties.  While you are employed hereunder, you will
use your best efforts, skills and abilities to perform faithfully all duties
assigned to you pursuant to this Agreement and to devote your full business
time and energies to the business and affairs of the Company Group.  While you are employed hereunder, you will
not undertake any other employment from any person or entity without the prior
written consent of the Company.

 

2.             Employment At Will.  Your employment hereunder will be on an
“at-will” basis and may be terminated by the Company or by you for any reason
or for no reason.

 

3.             Compensation.

 

(a)           Base Salary.  During the period that you are employed by
the Company, the Company will pay you a base salary at the annual rate of
$325,000, which amount may be adjusted upwards in the sole discretion of the
Board of Directors or its designee (the “Base Salary”).  The Base Salary will be payable in
substantially equal installments in accordance with the Company’s payroll
practices as in effect from time to time. 
The Company will deduct from each such installment all amounts required
to be deducted or withheld under 

 

 

applicable law or under
any employee benefit plan in which you participate.  You understand and
acknowledge that the annualized amount of the Base Salary is set forth as a
matter of convenience and does not constitute nor will be deemed to constitute
an agreement by the Company to employ you for any specific period of time.

 

(b)           Annual
Performance Bonus.  You will be
eligible to receive an annual performance bonus in accordance with the 2010
Executive Officer Bonus Plan (or, if applicable, any successor plan) equal to a
percentage of your Base Salary (the “Target Annual Performance Bonus”), but
which the actual amount paid will be based on whether you achieve performance
goals that are identified by the Company in accordance with the then applicable
bonus plan.

 

(c)           Fringe Benefits.  You will be entitled to participate in any
employee benefit plans which the Company provides or may establish for the
benefit of its executives generally (for example, group life, disability,
medical, dental and other insurance, retirement, pension, profit-sharing and
similar plans) (collectively, the “Fringe Benefits”), provided that the Fringe
Benefits will not include any stock option or similar plans relating to the
grant of equity securities of the Company. 
Your eligibility to participate in the Fringe Benefits and receive
benefits thereunder will be subject to the plan documents governing such Fringe
Benefits.  Nothing contained herein will
require the Company to establish or maintain any Fringe Benefits.

 

(d)           Reimbursement of
Expenses.  Upon presentation of
documentation of such expenses reasonably satisfactory to the Company, the
Company will reimburse you for all ordinary and reasonable out-of-pocket
business expenses, including parking expenses, that are reasonably incurred by
you in furtherance of the Company’s business in accordance with the Company’s
policies with respect thereto as in effect from time to time; provided,
however, all reimbursements will be made by March 15th of the year
after the year in which the expenses are incurred.

 

4.             Payments Upon Termination.

 

(a)           In the event of the
termination of your employment hereunder for any reason or for no reason, the
Company (a) will pay to you (or to your estate) (i) the portion of
your Base Salary that has accrued prior to such termination and has not yet
been paid, and (ii) an amount equal to the value of your accrued unused
vacation days; and (b) will reimburse you for expenses properly incurred
by you on behalf of the Company prior to such termination and properly
documented in accordance with Section 3(d) above.  Such amounts will be paid promptly after
termination.

 

(b)           If the Company
terminates your employment without Cause, or you terminate your employment with
Good Reason, the Company will pay you an amount equal to your Severance
Compensation in twenty (20) equal monthly installments in arrears commencing
one month after the date of termination and shall also pay you, on the date of
your termination, your Accrued Base Compensation as of the termination
date.  The Company’s obligation to make
such payments to you shall cease upon your material breach of any written
agreement between you and the Company or of any

 

 

written policy of
the Company by which you are bound, if such breach causes or is likely to cause
material harm to the Company.

 

(c)           If the Company
terminates your employment at any time for Cause, or upon your death or
Disability, the Company will pay you your Accrued Base Compensation.

 

(d)           Upon any termination
of your employment with the Company to which Section 4(b) applies,
the Company shall maintain the benefits that you were receiving as of the
termination date and shall take such measures as are permissible under its
medical, life, and disability insurance and any other employee benefit plans or
programs to continue coverage or reimbursement for you (and your family, if
applicable) on the same terms (including any required contribution by you) as
immediately prior to such termination. 
If it is not permissible to continue any such coverage under any such
insurance plans, the Company will pay you on the same schedule as set forth in Section 4(b),
as additional severance compensation, such amount, net of state and federal
income taxes payable by you with respect thereto, as will be sufficient for you
to obtain such insurance coverage on an individual basis assuming that you (and
each member of your family who is to be covered) is a “standard risk” for
insurance purposes.  Your rights under
this Section 4(d) shall continue only for so long as you are entitled
to receive payments of Severance Compensation under Section 4(b).

 

(e)           Definitions.  As used in this Section 4, the following
terms shall have the following meanings:

 

(i)            “Accrued
Base Compensation”:  all amounts of
compensation for services rendered to the Company that have been earned or
accrued through the date of your termination of employment but that have not
been paid as of such date including (i) Base Salary, (ii) reimbursement
for reasonable and necessary business expenses incurred by you on behalf of the
Company during the period ending on such date, and (iii) vacation pay; provided, however, that Accrued Compensation
shall not include any amounts described in clause (i) that have been
deferred pursuant to any salary reduction or deferred compensation elections
made by you.

 

(ii)           “Cause”:
(i) willful
failure to perform, or gross negligence in the performance of, your duties for
the Company or any of its affiliates;  (ii) knowing
and material breach by you of any obligation to the Company or any of its
affiliates with respect to confidential information, non-competition,
non-solicitation or the like; (iii) your breach of fiduciary duty, fraud,
embezzlement or other material dishonesty with respect to the Company or any of
its affiliates; or (iv) your conviction of, or plea of nolo contendere to,
a felony (other than felonies vehicular in nature) or any other crime involving
moral turpitude; provided, however that with respect to the grounds set forth
in Section 4(e)(ii)(i), Cause shall not be deemed to exist until you have
been given written notice of the facts or circumstances allegedly constituting
such grounds and, where reasonably subject to cure, thirty (30) days to cure.

 

 

(iii)          “Change
of Control”:  (i) the sale of
all or substantially all of the assets or issued and outstanding capital stock
of the Company, or (ii) merger or consolidation involving the Company in
which stockholders of the Company immediately before such merger or
consolidation do not own immediately after such merger or consolidation capital
stock or other equity interests of the surviving corporation or entity
representing more than fifty percent in voting power of capital stock or other
equity interests of such surviving corporation or entity outstanding
immediately after such merger or consolidation.

 

(iv)          “Disability”: a physical or
mental infirmity that impairs your ability to substantially perform your duties
with the Company for six consecutive months.

 

(v)           “Good
Reason”: (i) a substantial reduction in your then current base salary,
without your consent; or (ii) material and continuing diminution of your
title or your responsibilities, duties and authority in the operation and
management of the Company as compared to such title or responsibilities, duties
and authority on the date of this Agreement, without your consent.

 

(vi)          “Severance Compensation”: 1.66
times your Base Salary and 1.66 times your Target Annual Performance Bonus on
the effective date of termination.

 

(vii)         “Stock Award”: shall mean any
grant of equity under the Company’s Amended and Restated 2003 Stock Option and
Incentive Plan, 2007 Employee, Director and Consultant Stock Plan or any
subsequent stock plan of the Company.

 

5.             Change of Control.  In the event of a Change of Control in which
the Company is valued at equal to or greater than $75 million, then,
notwithstanding any contrary or inconsistent provision of any Stock Award
granted to you by the Company, an additional number of shares or options equal
to one hundred percent (100%) of the total shares or options in the Stock Award
shall, on the date of the Change of Control, become fully vested and
immediately exercisable.

 

6.             Parachute Payment.  If any payment or benefit you would receive
under this Agreement, when combined with any other payment or benefit you
receive pursuant to a Change of Control (“Payment”) would (i) constitute a
“parachute payment” within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”), and (ii) but for this
sentence, be subject to the excise tax imposed by Section 4999 of the Code
(the “Excise Tax”), then such Payment shall be either (x) the full amount
of such Payment or (y) such lesser amount (with cash payments being
reduced before stock option compensation) as would result in no portion of the
Payment being subject to the Excise Tax, whichever of the foregoing amounts,
taking into account the applicable federal, state and local employment taxes,
income taxes, and the Excise Tax results in your receipt, on an after-tax
basis, of the greater amount of the Payment notwithstanding that all or some
portion of the Payment may be subject to the Excise Tax.

 

 

7.             Mutual Release.  Upon any termination of your employment with
the Company to which Section 4(b) applies, you and the Company shall
execute a mutual release.  Your execution
of such mutual release shall be a condition precedent to the effectiveness of Section 4(b) and
4(c).

 

8.             409A
Compliance.

 

(a)           Notwithstanding
any other provision with respect to the timing of payments under this
Agreement, if, at the time of your termination, you are deemed to be a
“specified employee” of the Company within the meaning of Section 409A of
the Code, then limited only to the extent necessary to comply with the
requirements of Section 409A of the Code, any payments to which you may
become entitled under this Agreement which are subject to Section 409A of
the Code (and not otherwise exempt from its application) will be withheld until
the first (1st) business day of the seventh (7th) month following your
termination of employment, at which time you shall be paid an aggregate amount
equal to the accumulated, but unpaid, payments otherwise due to you under the
terms of this Agreement.

 

(b)           The Company does not guarantee the
tax treatment or tax consequences associated with any payment or benefit set
forth in this Agreement, including but not limited to consequences related to Section 409A
of the Code.  You and the Company agree
to both negotiate in good faith and jointly execute an amendment to modify this
Agreement to the extent necessary to comply with the requirements of Code Section 409A;
provided that no such amendment shall increase the total financial
obligation of the Company under this Agreement. 
In the event that the Company determines in good faith that it is
required to withhold taxes from any payment or benefit already provided to you,
you agree to pay to the Company on demand the amount determined by the Company.

 

9.             Records.  Upon termination of your employment hereunder
for any reason or for no reason and at any other time requested by the Company,
you will deliver to the Company Group any property of the Company Group which
may be in your possession, including products, materials, memoranda, notes,
records, reports or other documents or photocopies of the same.

 

10.           Insurance.  The Company, in its sole discretion, may
apply for and purchase key person life insurance on your life in an amount
determined by the Company with the Company Group as beneficiary and one or more
other policies of insurance insuring your life. 
You will submit to any medical or other examinations and to execute and
deliver any applications or other instruments in writing that are reasonably
necessary to effectuate such insurance.

 

11.           Representations.  You hereby represent and warrant to the
Company that you understand this Agreement, that you enter into this Agreement
voluntarily and that your employment under this Agreement will not conflict
with any legal duty owned by you to any other party, or with any agreement to
which you are a party or by which you are bound, including, without limitation,
any non-competition or non-solicitation provision contained in any such
agreement.  You will indemnify and hold
harmless the Company Group and its officers, directors, security holders,
partners, members, employees, agents and representatives against 

 

 

loss, damage, liability or expense arising from any claim based upon
circumstances alleged to be inconsistent with such representation and warranty.

 

12.           General.

 

(a)           Other Agreements.  The purpose of this Agreement is to set out
the above terms and conditions of your continued employment with the Company.  It is intended to and supersedes in its
entirety your Prior Employment Agreement, which is hereby deemed terminated and
of no further force and effect.  However,
this Agreement is not intended to and does not supersede any other agreements
you may have with the Company, including, but not limited to your  Non-Disclosure Agreement. 
No statement, representation, warranty, covenant or agreement of any
kind not expressly set forth in this Agreement, however, will affect, or be
used to interpret, change or restrict, the express terms and provisions of this
Agreement.

 

(b)           Modifications and
Amendments.  The terms and provisions
of this Agreement may be modified or amended only by written agreement executed
by the parties hereto.

 

(c)           Waivers and
Consents.  The terms and provisions
of this Agreement may be waived, or consent for the departure therefrom
granted, only by written document executed by the party entitled to the
benefits of such terms or provisions.  No
such waiver or consent will be deemed to be or will constitute a waiver or
consent with respect to any other terms or provisions of this Agreement,
whether or not similar.  Each such waiver
or consent will be effective only in the specific instance and for the purpose
for which it was given, and will not constitute a continuing waiver or consent.

 

(d)           Assignment.  The Company may assign its rights and
obligations hereunder to any person or entity that succeeds to all or
substantially all of the Company’s business or that aspect of the Company’s
business in which you are principally involved or to any Company
affiliate.  You may not assign your
rights and obligations under this Agreement without the prior written consent
of the Company and any such attempted assignment by you without the prior
written consent of the Company will be void.

 

(e)           Benefit.  All statements, representations, warranties,
covenants and agreements in this Agreement will be binding on the parties
hereto and will inure to the benefit of the respective successors and permitted
assigns of each party hereto.  Nothing in
this Agreement will be construed to create any rights or obligations except
between the Company and you, except for your obligations to the Company Group
as set further herein, and no person or entity (except for a Company affiliate
as set forth herein) will be regarded as a third-party beneficiary of this
Agreement.

 

(f)            Governing Law.  This Agreement and the rights and obligations
of the parties hereunder will be construed in accordance with and governed by
the law of Massachusetts, without giving effect to the conflict of law
principles thereof.

 

(g)           Jurisdiction,
Venue and Service of Process.  Any
legal action or proceeding with respect to this Agreement will be brought in the courts of
Massachusetts.  By execution 

 

 

and delivery of
this Agreement, each of the parties hereto accepts for itself and in respect of
its property, generally and unconditionally, the exclusive jurisdiction of the
aforesaid courts.

 

(h)           WAIVER OF JURY
TRIAL.  ANY ACTION, DEMAND, CLAIM OR
COUNTERCLAIM ARISING UNDER OR RELATING TO THIS AGREEMENT WILL BE RESOLVED BY A
JUDGE ALONE AND EACH OF YOU AND THE COMPANY WAIVE ANY RIGHT TO A JURY TRIAL
THEREOF.

 

(i)            Headings and
Captions.  The headings and captions
of the various subdivisions of this Agreement are for convenience of reference
only and will in no way modify or affect the meaning or construction of any of
the terms or provisions hereof.

 

(j)            Counterparts.  This Agreement may be executed in two or more
counterparts, and by different parties hereto on separate counterparts, each of
which will be deemed an original, but all of which together will constitute one
and the same instrument.

 

(k)           Opportunity to
Review.  You hereby acknowledge that
you have had adequate opportunity to review these terms and conditions and to
reflect upon and consider the terms and conditions of this Agreement, and that
you have had the opportunity to consult with counsel of your own choosing
regarding such terms.  You further acknowledge
that you fully understand the terms of this Agreement and have voluntarily
executed this Agreement.

 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 

 

If the foregoing
accurately sets forth our agreement, please so indicate by signing and
returning to us the enclosed copy of this letter.

 

	
   

  	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  EnerNOC, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Timothy G. Healy

  
	
   

  	
   

  	
  Name: Timothy G. Healy

  
	
   

  	
   

  	
  Title: Chief Executive
  Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted and Approved

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  David B. Brewster

  	
   

  	
  March 1, 2010

  
	
  David B. Brewster

  	
   

  	
  Date

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