Document:

Purchase Contract between City of Austin and Comverge

 Exhibit 10.6 
 *** Indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission. A complete copy of this agreement has been filed separately with the Securities and Exchange Commission.

 Purchase Contract 
 Request for
Proposals #SL04100009 
 This Agreement is made and entered into as of the Effective Date by and between Comverge, Inc(Contractor) and the City of Austin, a
Texas home-rule municipal corporation, acting by and through its municipally owned electric utility, dba Austin Energy (City). 
 Capitalized terms used but not defined herein have the meanings given them in the Agreement. 
 This Agreement is
composed of the following elements: 
  

	1.	From City’s Request for Proposals #SL04100009: 

  

	 	1.1.	Section 0100, Standard Purchase Definitions and Abbreviations 

  

	 	1.2.	Section 0300, Standard Purchase Terms and Conditions 

  

	 	1.3.	Section 0400, Supplemental Purchase Terms and Conditions 

  

	 	1.4.	Section 0800, Non-Discrimination Certification 

  

	 	1.5.	Section 090ONG MBE/MBE No Goals Form 

  

	2.	This Agreement Summary (Summary), including: 

  

	 	3.1	Revised Section 0500 

  

	 	3.2	Revised Section 0600 

 To the extent of any conflict between the
terms of this Summary and any of the documents listed in Paragraph 1 or Paragraph 2 above, this Summary shall control. To the extent of any conflict between the terms of the documents listed in Paragraph 1 and Paragraph 2, the documents listed in
Paragraph 1 shall control. 
 Executed as of the Effective Date. 
  

			
	City	  	Contractor
		
	 /s/ Carole M. Martindale
	  	 /s/ Thomas W. Wren

	 Carole M. Martindale
 Purchasing Manager
 City of Austin, Austin Energy
	  	 T. Wayne Wren
 Executive V.P.
 Comverge, Inc.

		
	 11-16-04
 Date
	  	 11.9.2004
 Date

 CITY OF AUSTIN, TEXAS 
 Purchasing Office 
 INVITATION FOR BID (IFB) 
 Offer and Award Sheet 
  

			
		
	SOLICITATION NO: SL04100009	 	 COMMODITY/SERVICE DESCRIPTION: Load
             Management Programmable Thermostats

		
	DATE ISSUED: N/A Sole Source	 	PRE-BID CONFERENCE TIME AND DATE: N/A
		
	REQUISITION NO.: RX 110OTC01009	 	LOCATION:N/A
		
	FOR CONTRACTUAL ISSUES CONTACT:	 	BID DUE PRIOR TO: N/A
		
	     
                                        
                            
 Sandy Calles, Buyer (512) 322-6487
	 	COMPLIANCE PLAN DUE PRIOR TO: N/A
		
	 FOR TECHNICAL ISSUES CONTACT:
 Steve Saenz
(512) 974-2120
	 	BID OPENING TIME AND DATE: N/A
		
		 	 LOCATION: 206 E. 9TH STREET, TWO COMMODORE PLAZA SUITE 15.120, AUSTIN, TEXAS 78701

 It is the policy of the City of Austin to involve certified Minority Owned Business Enterprises (MBEs) and
Woman Owned Business Enterprises (WBEs) in City contracting. MBE and WBE goals for this solicitation are contained in Section 0900. 
 All
Contractors and Subcontractors must be registered to do business with the City prior to award of a contract. Prime Contractors are responsible for ensuring that their Subcontractors are registered. Registration can be done through the City’s
on-line vendor registration system. Log onto 
 https.//waller.ci.austin.tx.us/austin/main.cfm?type=regn and follow the directions.

  

	
	**** SUBMIT 1 ORIGINAL AND 1 SIGNED COPY OF ALL REQUIRED DOCUMENTS****
	SOLICITATION TO:

  

			
	 /s/ Frank A. Magnotti
	  	 /s/ Frank A. Magnotti, President Global Sales and Marketing

	Signature of Person Authorized to Sign Bid	  	Signer’s Name and Title: (please print or type)
	FEDERAL TAX ID NO. 22-3543611	  	Fax No. (973) 884-3503
	Phone No. (973) 884-5970	  	Date: October 1, 2004
	Email Address fmagnotti@comverge.com	  	

 AWARD DOCUMENT 
 (This section for City of Austin only) 
  

					
	Date of Award:	 		 	 Contract No.:
  

	The above bid is accepted as to:	 		 	Dollar Value:
			
		 	By:	 	  

		 		 	PURCHASING OFFICE FOR CITY MANAGER

  

					
	Offer and Award Sheet	 	1	 	Revised 12/09/03

 Table of Contents 
  

					
	SECTION NO.	 	 TITLE
	  	PAGES
	0100, 0200, 0300	 	See http://www.ci.austintx.us/purchase/standard,htm *	  	*
			
	0400	 	SUPPLEMENTAL PURCHASE PROVISIONS	  	3
			
	0500	 	SCOPE OF WORK / SPECIFICATION	  	14
			
	0600	 	PRICE SHEET	  	1
			
	0800	 	NON-DISCRIMINATION CERTIFICATION	  	1
			
	0900	 	M/WBE PROGRAM PACKAGE (with Availability List and Compliance Pan or No Goals Form)	  	1

 All other Sections may be viewed at: http://waller.ci.austin.tx.us/purchase/go get ads.cfm 
  

					
	 RETURN FOLLOWING DOCUMENTS WITH BID**

			
	 •
	    	 Cover Page
	    	 Offer and Award Sheet (IFB)

			
	 •
	    	 Section 0600,
	    	 Price Sheet(s)

			
	 •
	    	 Section 0800,
	    	 Non-Discrimination Certification (HRC 0001)

			
	 •
	    	 Section 0900,
	    	 MBE/WBE Procurement Program Package (IFB), or no Goals Form

	**	See also Section 0200, Solicitation Instructions, Section 0400, Supplemental Purchase Provisions, and Section 0500, Scope of Work/Specification, for additional
documents that must be submitted with the bid. 

 NOTES: 
 The bidder agrees, if this bid is accepted within                  calendar days (90 days unless a different period is inserted)
after date of opening, to fully comply in strict accordance with the solicitation, specifications and provisions attached thereto for the amounts shown on the accompanying bid. 
  

	*	INCORPORATION OF DOCUMENTS. As of March 22, 2000, three (3) Sections of the solicitation documents have been made available via the Internet. These three sections:
Section 0100, Standard Purchase Definitions; Section 0200, Standard Solicitation Instructions; and Section 0300, Standard Purchase Terms and Conditions are hereby incorporated into this solicitation by reference, with the same force and
effect as if they were incorporated in full text. The full text versions of these Sections are available, on the Internet at the following online address: http://www.cf.austin.tx.us/purchase/standard.htm. Please select the appropriate set of documents for the
type solicitation - i.e. Invitation for Bid (IFB), Request for Proposal (RFP), or Request for Quotations (RFQ). 

 If you do not have
access to the Internet, you may obtain a copy of these Sections from the City of Austin Purchasing Office at the below address. Please have the solicitation number available so that the staff can select the proper documents. These documents can be
mailed, expressed mailed or faxed to you. 
 When sending a sealed Bid and/or Compliance Plan, use the proper address for
the type of service desired, as 

	shown	below. 

  

			
	P.O. Address for US Mail	  	Street Address for Hand Delivery or Courier Service
	City of Austin	  	City of Austin
	Purchasing Office	  	Purchasing Office
	P.O. Box 1088	  	Two Commodore Plaza
	Austin, Texas 78767-8845	  	206 E. 9th St. 15th floor, Suite 15.120
		  	Austin, Texas 78701
		  	Reception Phone: 512 974-2500

 Notes: Bids (including Compliance Plans) that are not submitted in a sealed envelope or
container will not be considered. 
    Unless authorized in the solicitation, telegraphic or facsimile Bids will not be
accepted. 
  

					
	Offer and Award Sheet	 	2	 	Revised 12/09/03

 CITY OF AUSTIN 
 PURCHASING OFFICE 
 SUPPLEMENTAL PURCHASE PROVISIONS SL04100009 
 The following Supplemental Purchasing Provisions apply to this solicitation: 
  

	1.	EXPLANATIONS OR CLARIFICATIONS (reference paragraph 5 in Section 0200) 

 All requests for explanations or clarifications must be submitted in writing to the Purchasing Office. 
  

	2.	INSURANCE (reference paragraph 32 in Section 0300). 

 A. The insurance certificate shall be mailed to the following address: 
 City of Austin Purchasing Office

 Attn: Sandy Calles SL04100009 
 P. O. Box 1088 
 Austin. Texas 78767 
  

	3.	TERM OF CONTRACT 

  

	 	A.	The Contract shall be in effect for a period of twelve (12) months and may be extended thereafter for up to three (3) additional twelve (12) periods, subject to the approval of the
Contractor and the City Manager or his designee. 

  

	 	B.	Upon expiration of the initial term or period of extension, the Contractor agrees to hold over under the terms and conditions of this agreement for such a period of time as is
reasonably necessary to re-solicit and/or complete the project (not to exceed 120 days unless mutually agreed on in writing). 

  

	4.	QUANTITIES 

 The quantities listed herein are
estimates for the period of the Contract. The City reserves the right to purchase more or less of these quantities as may be required during the Contract term. Quantities will be as needed and specified by the City for each order. Unless specified
in the solicitation, there are no minimum order quantities. 
  

	5.	INVOICES (reference paragraph 12 in Section 0300) 

 Invoices shall contain a non-duplicated invoice number and the information required in Section 0300, paragraph 12, entitled “Invoices.” Invoices received without all required information cannot be processed and will be returned to
the vendor. 
 Invoices shall be mailed to the below address: 
  

			
		    	 City of Austin

	Department	    	 Austin Energy

	Attn:	    	 Steve Saenz

	Address	    	 206 E. 9th Street,
Ste. 17.102

	City, State Zip Code	    	 Austin, Texas 78701-2516

 (0400) IFB Supplemental Purchase Provisions 

 CITY OF AUSTIN 
 PURCHASING OFFICE 
 SUPPLEMENTAL PURCHASE PROVISIONS SL04100009 
  

	6.	RECYCLED PRODUCTS 

  

	 	A.	The City prefers that vendors offer products that contain recycled materials. When a recycled product is offered by the Bidder, the Bidder must state in their bid the percentage of
the product that is recycled and must include a list of the recycled materials that are contained in the product. 

  

	 	B.	The recycled content of paper products offered to the City shall be in accordance with the Federal Environmental Protection Agency’s Recycled Product Procurement Guidelines.
These guidelines are available at http://www.epa.gov/cpg/. 

  

	 	C.	Contract award for paper products will be made for recycled products unless the cost is more than 10% above the lowest price for non-recycled paper products as required in the
City’s Comprehensive Recycling Resolution. 

  

	7.	LIVING WAGES AND BENEFITS (applicable to procurements involving the use of labor) 

  

	 	A.	In order to help assure low employee turnover, quality services, and to reduce costs for health care provided to uninsured citizens, the Austin City Council is committed to ensuring
fair compensation for City employees and those persons employed elsewhere in Austin. This commitment has been supported by actions to establish a “living wage” and affordable health care protection. Currently, the minimum wage for City
employees is $9.00 per hour. This minimum wage is required for any Contractor employee assigned to this City Contract, unless Published Wage Rates are included in this solicitation. In addition, the City may stipulate higher wage rates in certain
solicitations in order to assure quality and continuity of service. 

  

	 	B.	Additionally, the City provides health insurance for its employees, and for a nominal rate, employees may obtain coverage for their family members. Contractors must provide health
insurance with optional family coverage for all Contractor employees assigned to this contract. 

  

	 	C.	The City requires Contractors bidding on this Contract to provide the following information about wages and benefits currently provided to their employees assigned to this City
Contract: 

  

									
	 Status
 Full-time (F)

Part-time (P)
	  	 Job Title
	  	 Hourly
 Wage
	  	 List type of
 Company Health
 Insurance
(e.g.
 medical, dental)
	  	 Workers’
 Compensation
 Insurance
Coverage
 (yes, no)

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	 	i.	Proof of the health care plan shall be provided by the Contractor prior to award of a Contract. In addition, an insurance certificate for Workers’ Compensation Insurance
Coverage must be provided if required by the solicitation. 

  

	 	ii.	Upon request by the City’s Contract Manager, the Contractor shall verify salaries by providing copies of weekly payroll documents. 

 (0400) IFB Supplemental Purchase Provisions 

 CITY OF AUSTIN 
 PURCHASING OFFICE 
 SUPPLEMENTAL PURCHASE PROVISIONS SL04100009 
  

					
	8.	  	NON-SOLICITATION
			
		  	A.	    	During the term of the contract, and for a period of six (6) months following termination of the contract, the Contractor, its affiliate, or its agent shall not hire, employ, or solicit for
employment or consulting services, a City employee employed in a technical job classification in a City department that engages or uses the services of a Contractor employee.
			
		  	B.	    	 In the event that a breach of Paragraph (a) occurs the Contractor shall pay liquidated
 damages to the City in an amount equal to the greater of: (i) one (1) year of the employee’s annual compensation; or (ii) _100_ percent of the employee’s annual
compensation while employed by the City. The Contractor shall reimburse the City for any fees and expenses incurred in the enforcement of this provision.

			
		  	C.	    	During the term of the contract, and for a period of six (6) months following termination of the contract, a department that engages the services of the Contractor or uses the services of a
Contractor employee will not hire a Contractor employee while the employee is performing work under a contract with the City unless the City first obtains the Contractor’s approval.
			
		  	D.	    	 In the event that a breach of Paragraph (c) occurs, the City shall pay liquidated damages to
 the Contractor in an amount equal to the greater of: (i) one (1) year of the employee’s annual compensation or (ii) __ 100 __ percent of the employee’s annual
compensation while employed by the Contractor.

		
	9.	  	CONTRACT MANAGER
		
		  	The following person is designated as Contract Manager, and will act as the contact point between the City and the Contractor:
		
		  	Steve Saenz
		  	Two Commodore Plaza
		  	206 E. 9th Street, Ste. 17.102
		  	Austin, Texas 78701-2516

  

					
	Offer and Award Sheet	  	5	 	Revised 12/09/03

 CITY OF AUSTIN, TEXAS 
 Purchasing Office 
 Scope of Work/Specifications 
 Solicitation Number: SL04100009 
 PROGRAMMABLE LOAD CONTROL THERMOSTATS 
 Scope of Work 
  

	1.0	SCOPE: This purchase specification describes the functional requirements of Programmable Load Control Thermostats that operate via 153.5 MHz / VHF-FM, as well as ancillary
equipment needed to support and ensure the successful operation of the programmable load control thermostats. 

  

	2.0	OVERVIEW: Austin Energy, located in Austin Texas, is a Municipal owned electric utility with approximately 360,000 electric customers in its service area. Austin Energy
through its Power Partner Program, has been purchasing and installing the Comverge, Programmable Load Control Thermostats that are individually addressed by a single command via VHF 153.5 MHz since September 2000 with over *** units currently in the
field, and capable of providing Austin Energy with approximately *** MW of dispatchable peak load control/reduction. 

  

	  	Austin Energy seeks to continue purchasing and installing the Comverge Programmable Load Control Thermostats. In addition to the programmable load control thermostats, this purchase
specification shall also include, radio controlled Digital Control Units (DCU) for water heaters, Remote Transmitter Controller, Remote Transmission Monitor, and Hand Held Signal Strength Device - all ancillary equipment needed to support and ensure
the successful operation of the programmable load control thermostats. 

  

	3.0	PROGRAMMABLE LOAD CONTROL THERMOSTATS 

  

	 	3.1	General Operation 

  

	  	Each programmable load control thermostat as well as radio controlled Digital Control Units (DCU) shall contain a 153.5 VHF-FM communication module, with capabilities to be
individually addressed by a single command via 153.5 VHF-FM over the air, to switch remote loads on and off in response to commands from the Load Management System (LMS). Vendor must list and describe all features, functionality, electronic
specifications, and installation specifications of current programmable load control thermostat products. 

	 	3.2	Thermostat Functionality 

  

	 	3.2.1	Every Programmable Load Control Thermostat shall respond to the radio messages transmitted from Austin Energy’s transmitter(s) and Portable Test Unit (PTU), whether opening or
closing it’s relays as directed. Every Programmable Load Control Thermostat shall utilize and deploy “distributed intelligence”, to provide control for up to eight hours upon the receipt of a single radio command. A smooth transition
into, out of, and between levels of control shall be insured through the use of a control algorithm, whereby each programmable load control thermostat independently selects its own start and stop times after receipt of a radio control message.
Vendor must list and describe all features, functionality, electronic specifications, and installation specifications of current programmable load control thermostat. 

  

	 	3.2.2	Single-family type programmable load control thermostats shall feature weekday and weekend programmability - of four periods per day. Commercial type programmable load control
thermostats shall feature weekday and weekend programmability - of two periods per day (Occupied and Unoccupied). All thermostats shall feature equipment “ON” indicators. Vendor must list and describe all features, functionality,
electronic specifications, and installation specification of current programmable load control thermostat. 

  

	 	3.3	New Product Lines of Programmable Load Control Thermostats 

  

	 	3.3.1	In addition to the specifications already listed in this document, all new programmable load control thermostat product line(s) currently in the development stage, as well as those
in the conceptual stage (but not currently available), must also meet the following minimum specifications: 

  

	 	•	 	Must be ISO Certified. 

  

	 	•	 	Must be rated at minimum as a Class H type thermostat. 

  

	 	•	 	Shall incorporate “Surge Protection” capabilities. 

  

	 	•	 	Shall have a DROOP range of no more than +/- 1 degree. 

  

	 	•	 	Must meet Energy Star® Specifications and bear it label. 

  

	 	•	 	Shall feature a locking keypad. 

  

	 	•	 	Shall provide Temperature Limits. 

  

					
	0500 Scope of Work	  	Page 2 of 17	  	

	 	•	 	Shall feature an Auto-Changeover option. 

  

	 	•	 	Shall feature a “change filter” reminder. 

  

	 	•	 	Shall feature a display area that is back light. 

  

	 	•	 	Shall feature a display area that measures a minimum of 60mm x 20mm. 

  

	 	•	 	Shall be Web-Enabled and programmable via the Internet. 

  

	 	•	 	Shall feature a communication device that is interchangeable/migrate-able to meet a changing communications environment. 

  

	 	•	 	Thermostat must be designed to last a minimum of 15 years. 

  

	 	•	 	All hinged components must be durable, long lasting, and designed to last a minimum of 3 years. 

  

	 	•	 	All soft or hard push buttons must also be durable, long lasting, and meet the minimum design specifications of 3 years. 

  

	 	•	 	Quick reference programming instructions must appear on the thermostat. 

  

	 	•	 	All buttons on the thermostat must clearly state their functions so as to make the thermostat “user friendly” to AE and it’s customers. 

  

	 	3.3.2	Development or Conceptual Stage of New Product Lines - Because new product lines (programmable load control thermostat) are currently being designed and developed or are in a
“Conceptual Stage”. Austin Energy reserves the right to amend this contract and it’s “Scope of Work/Specifications” whereby setting, establishing, or revising the minimum performance requirements of the new product to ensure
that performance, expectations, and reliability are met. 

  

	 	3.3.3	Internet Programming (“Web Enabled”) - Every programmable load control thermostat shall be accessible through the Internet via a secure web application software
supplied by the vendor, but hosted, operated, maintained by Austin Energy such that Austin Energy and its users of the programmable load control thermostats shall have the ability to program the thermostat. 

  

	 	3.3.4	Secure web site - Internet access shall include the following, but is not limited to: a customized customer logon screen that includes a “log-in” name and
“password” so that the following over-the-air wireless programming features and capabilities can be performed: 

  

					
	0500 Scope of Work	  	Page 3 of 17	  	

	 	3.3.4.1	Individual Programming Control (New Thermostats Only)-A location/page on the web site that allows Austin Energy to perform the various load management commands as listed in
section 3.4.6 within this document. This location/page must also allow Austin Energy and its customers to perform the following functions: 

  

	 	3.3.4.1.1	Create their own customized thermostat-programming schedule(s), or modify an existing schedule(s). Note - The web page will always start with a default setting and will not reflect
what is currently programmed in the customers’ thermostat at home. 

  

	 	3.3.4.1.2	Perform temporary set-point adjustments. 

  

	 	3.3.4.1.3	Exit “Hold” and “Run” the thermostat. 

  

	 	3.3.4.1.4	The capability to switch between cooling and heating functions or to turn off the HVAC system, along with any other normal adjustments/settings/functions that can be performed
manually. Allows Austin Energy to perform the various load management command as listed in section 3.x.x within this document. 

  

	 	3.3.4.2	Control History - A location/page on the web site that allows customers to review the control history for their programmable load control thermostat or Digital Control Units
(DCU). 

  

	 	3.3.4.3	Override - A location/page on the web site that provides the customer with the ability to temporarily “opt out” for a control/cycling event for a specified period
of time. The override period will be determined by Austin Energy. 

  

	 	3.3.4.4	Odds for Control - A location/page on the web site that allows Austin Energy to post notifications indicating the likelihood of a control/cycle event for that day or week.

  

	 	3.3.4.5	Help and Frequently Asked Questions (FAQ) - A location/page on the web site that allows for both Austin Energy and the users/customers of the programmable load control
thermostat to ask/post questions, and/or look for answers to questions posted on the web site. 

  

	 	3.3.4.6	Logo - An Austin Energy approved logo shall appear on the vendor providedihosted web site, and shall appear on each web page and/or link. 

  

					
	0500 Scope of Work	  	Page 4 of 17	  	

	 	3.4	Thermostat Installations 

  

	 	3.4.1	To ensure installation compatibility of the current as well as new programmable load control thermostat on all normal 24v heating and cooling HVAC type systems - the programmable
load control thermostat (current and new) must be able to operate, at a minimum, the following HVAC systems; 

  

	 	•	 	Conventional single stage heating and cooling (gas and/or electric) 

  

	 	•	 	Multi Stage heating and cooling (gas and/or heat pump) 

 Vendor must list and describe each model type currently offered as well as any programmable load control thermostat that might be available in the future, but not currently offered along with their features, functionality, electronic
specifications and Installation specifications. Vendor must list and describe any known HVAC system compatibility issues associated with the current programmable load control thermostat as well as new or future programmable load control thermostats.

  

	 	3.4.2	If any ancillary devices such as relays, shunts, or similar components are required (power stealing) for the vendor’s current or new programmable load control thermostat to
operate/function as stated in this purchase specification, or in the vendor’s literature/printed material, they are the vendor’s responsibility, and shall be supplied at no cost to Austin Energy. 

  

	 	3.4.3	Cold Load Pickup, a feature that disconnects load when power is restored after an outage, shall be remotely programmable to between *** and *** minutes via radio message.

  

	 	3.4.4	Memory - Important data about the unit’s operation, including the number of opera- tions, time since its memory was reset and configuration data shall be maintained in
the unit’s memory, with the ability to be displayed on the thermostat LCD ( in diagnostic mode). All information stored in the programmable load control thermostats memory must be able to be downloaded and exported into MS Excel, MS Word, or MS
Access applications. 

  

					
	0500 Scope of Work	  	Page 5 of 17	  	

	 	3.4.5	Addressing - Each programmable load control thermostat shall have at least one fixed address assigned at the factory - fixed address(s) to be specified once the contract is
awarded. There shall be *** possible fixed addresses. In addition, each programmable load control thermostat shall have the capacity for up to *** additional remotely programmable operational addresses. There shall be up to *** possible operational
addresses. 

  

	 	3.4.6	Commands - There shall be two types of commands: database commands and control commands. 

  

	 	3.4.6.1	Database Commands - Database commands will be sent to the switch from the Database Module and will always be sent by the fixed address. Database Commands are sent to
configure the programmable load control thermostats by providing it with its programmable address (up to ***) and setting the time the programmable load control thermostats will use for Cold Load Pickup. That is, that time after a power outage that
the programmable load control thermostat will delay before it restores itself to operation. The options shall be *** to *** minutes. Database commands shall be able to set a control override time for each particular programmable load control
thermostat. This command tells the programmable load control thermostats to ignore all control commands for up to *** hours. This shall cancel any load control program in progress. The programmable load control thermostats shall automatically return
itself to the program after the assigned time. 

  

	 	3.4.6.2	Control Commands - Control commands shall be sent to instruct the programmable load control thermostats on how to operate over a period of time, which is related to the
cycling type of strategy. This shall take only a single command and include the following information: 

  

	 	1.	Operational Address - Identifies which programmable load control thermostats should perform the control activities being sent. 

  

	 	2.	Function Code - Selects which programmable load control thermostats function(s) should operate. There can be up to *** functions in a programmable load control thermostat.
The output of each function shall be capable of driving a relay driver. In the standard mode, the relay attached to the driver(s) is set so that upon receipt of a message, the relay energizes and removes power from the device being controlled. If no
further message command is received, each function will timeout. 

  

					
	0500 Scope of Work	  	Page 6 of 17	  	

 *Function Codes 
  

			
	 Number
	  	 Command

	***	  	***

  

	 	  	Code Numbers *** shall provide special test functions. The counter can be read at the programmable load control thermostat with a Portable Counter Display. Number *** activate the
LED on the programmable load control thermostat ON or OFF to test radio signal propagation. When the test command is received, none of the function relays operate. 

  

	 	3.3.7	Timeout Period - Time after receipt of a command to open that a programmable load control thermostat will close to restore power. Timeout shall be *** minutes.

  

	 	3.3.8	Cycle Time - Time of one complete control cycle. Times shall be *** minutes. The cycle time shall be used in conjunction with the timeout to specify the cycle rate of a
programmable load control thermostat. For example, if a cycle time of *** minutes and a timeout of *** minutes is specified, the programmable load control thermostat will be off for *** minutes and then on for *** minutes to complete the *** minute
cycle. The cycle rate is *** minutes off out of *** minutes or *** percent. 

  

	 	3.3.9	Cycle Count - Cycle count is the number of times a programmable load control thermostat will repeat its cycle time. This will determine how long control will take place
without the receipt of a new command. For example, if the cycle time is *** minutes and the cycle count is ***, control will persist for *** minutes. Cycle counts can be specified at ***. 

  

					
	0500 Scope of Work	  	Page 7 of 17	  	

	 	3.3.10	The programmable load control thermostat must execute any and all commands sent to it whenever it “hears” any one of its addresses. 

  

	4.0	Receiver/Switch Communication 

  

	 	4.1	Austin Energy recognizes that the overall system performance is dependent on reliable communications from the Load Management System (LMS) to the RTC to the Transmitter, and finally
to the programmable load control thermostat and/or Digital Control Unit. Because of this, Austin Energy identifies the following responsibilities between Austin Energy and the vendor. 

  

	 	4.2	Austin Energy will assume responsibility for the installation only of the following components: 

  

	 	4.2.1	Transmitter(s). 

  

	 	4.2.2	Antenna(s). 

  

	 	4.2.3	Cabling. 

  

	 	4.2.4	Modems. 

  

	 	4.2.5	Telephone Lines. 

  

	 	4.2.6	Thermostats and Digital Control Units. 

  

	 	4.2.7	The maintenance associated with these responsibilities. 

  

	 	4.3	Vendor will assume complete responsibility for the following: 

  

	 	4.3.1	The complete set-up and connection of all transmitter(s). 

  

	 	4.3.2	The alignment of transmitter(s), if necessary, the complete set-up and connection of ancillary equipment such as RTC’s and RTM’s. 

  

	 	4.3.3	The installation of, or the hosting of a secure Web Site, and the web/Internet interface for AE and its customers. 

  

	 	4.4	The vendor will also ensure that the communication module contained within the programmable load control thermostats and digital control units (current and new) receive commands
from the Load Management System (LMS) and/or Web Site, and that the programmable load control thermostats as well as digital control units, current and new, respond appropriately and consistently to commands sent to them. 

 

	 	4.5	The vendor will also ensure that the communication module contained within the programmable thermostat or digital control unit (current and new) meet the sensitivity and reliability

  

					
	0500 Scope of Work	  	Page 8 of 17	  	

	 	  	requirements- If necessary, it is the vendors responsible for the re-engineering of the communication module so as to increase sensitivity, and update the firmware to ensure product
reliability. 

  

	 	4.6	Austin Energy will assume responsibility for monitoring the following: 

  

	 	4.6.1	All out bound signal/messages to the RTC(s), Transmitter(s). 

  

	 	4.6.2	All inbound messages decoded from the RTM(s). 

  

	 	4.6.3	Signals/commands sent to the programmable load control thermostat via PTU. 

  

	 	4.6.4	Signal strength with the use of Spectrum Analyzer-type equipment. 

  

	 	4.6.5	Visual confirmations of daily restore messages to the programmable load control thermostat. 

  

	 	4.7	Results of AE’s responsibilities will be communicated to the vendor as part of AE’s performance evaluation. 

  

	 	4.8	Vendor will assume responsibility and all costs associated with resolving, and implementing solutions to problems identified and reported by Austin Energy with vendor’s
product(s) that is properly installed to assure product performs to AE’s expectations, as well as functioning as stated by the vendor. 

  

	5.0	Electrical Specification — Thermostat[MSOffice1] 

  

	 	5.1	Input Voltage - based on the type of equipment selected 

  

	 	5.1.1	240V ac +1-15%, 60 Hz (Standard), or 

  

	 	5.1.2	20 - 30 VAC, 50/60 Hz, power stealing operation. 

  

	 	5.2	Power Consumption 

  

	 	  	*** to *** Amps (load per terminal), *** Amps maximum Total Load - all terminals combined. 

  

	 	5.3	Operating ‘temperature 

  

	 	  	-30°C to 60°C 

  

	 	5.4	Humidity 

  

	 	  	0% to 90%, non-condensing 

  

	 	5.5	Transient Voltage Protection 

  

	 	  	Exceeds ANSI C37-90A-1974 

  

	6.0	Watchdog - Thermostat 

  

	  	Every programmable load control thermostat (current and future) shall be furnished with a hardware watchdog circuit, which continuously monitors microprocessor performance. If the
microprocessor should malfunction, the watchdog shall automatically reinitialize the microprocessor’s program. 

  

					
	0500 Scope of Work	  	Page 9 of 17	  	

	7.0	Receiver Specification - Thermostat 

  

	 	7.1	Type 

  

	 	  	*** 

  

	 	7.2	Sensitivity 

  

	 	  	Better than *** p V per meter, at minimum 

  

	 	7.3	Frequency 

  

	 	  	153.53 MHz (to be supplied later.) 

  

	 	7.4	Frequency Stability 

  

	 	  	***% over operating temperature range 

  

	 	7.5	Image Rejection 

  

	 	  	*** dB 

  

	 	7.6	Selectivity 

  

	 	  	*** dB minimum +/-30 kHz 

  

	 	7.7	Certification 

  

	 	  	FCC 

  

	8.0	LED - Thermostat 

  

	  	One to Two LED’s, or a combination of a LED with various blinking patterns (to be determined by AE) shall be provided to indicate the following; 

  

	 	8.1	To indicate when a test code is received. In this instance, the LED shall ligbt/blink, but the output relay shall not be activated. 

  

	 	8.2	Shall light, and stay light to indicate that there is power to the thermostat. 

  

	 	8.3	To indicate when load control is pending or activated. 

  

	 	8.4	For each output relay. 

  

	 	8.5	The LED shall light/blink whenever its relay is energized. 

  

					
	0500 Scope of Work	  	Page 10 of 17	  	

	9.0	Digital Control Units (DCU) 

  

	 	9.1	Internet Access 

  

	 	9.1.2	Secure web site - Internet access shall include the following, but is not limited to: a customized customer logon screen that includes a “log-in” name and
“password” so that the following over-the-air wireless programming features and capabilities can be performed: 

  

	 	9.1.3	Control History - A location/page on the web site that allows customers to review the control history for their Digital Control Units (DCU). 

  

	 	9.1.4	Override - A location/page on the web site that provides the customer with the ability to temporarily “opt out” for a control/cycling event for a specified period
of time. The override period will be determined by Austin Energy. 

  

	 	9.1.5	Odds for Control - A location/page on the web site that allows Austin Energy to post notifications indicating the likelihood of a control/cycle event for that day or week.

  

	 	3.4.6.3	Help and Frequently Asked Questions (FAQ) - A location/page on the web site that allows for both Austin Energy and the users/customers of the DCU to ask/post questions;
and/or look for answers to questions posted on the web site. 

  

	 	9.1.7	Logo - An Austin Energy approved logo shall appear on the vendor provided/hosted web site, and shall appear on each web page and/or link. 

  

					
	0500 Scope of Work	  	Page 11 of 17	  	

	10.0	Receiver Specification - Digital Control Units (DCU) 

  

	 	10.1	Type 

  

	 	  	*** 

  

	 	10.2	Sensitivity 

  

	 	  	Better than *** pV per meter, at minimum 

  

	 	10.3	Frequency 

  

	 	  	153.53 MHz (to be supplied later.) 

  

	 	10.4	Frequency Stability 

  

	 	  	***% over operating temperature range 

  

	 	10.5	Image Rejection 

  

	 	  	*** dB 

  

	 	10.6	Selectivity 

  

	 	  	*** dB minimum +/-30 kHz 

  

	 	10.7	Certification 

  

	 	  	FCC 

  

	11.0	Electrical Specification - Digital Control Units (DCU) 

  

	 	11.1	Input Voltage - based on the type of equipment selected 

  

	 	  	240V ac +1-15%, 60 Hz (Standard) 

  

	 	11.2	Power Consumption 

  

	 	  	*** watts maximum 

  

	 	11.3	Operating Temperature 

  

	 	  	-30°C to 60°C 

  

	 	11.4	Humidity 

  

	 	  	0% to 100%, non-condensing 

  

	 	11.5	Transient Voltage Protection 

  

	 	  	Exceeds ANSI C37-90A-1974 

  

	 	11.6	Relays = for outside type load control switches 

  

	 	11.6.1	1 24V, ***-ampere relays shall be furnished for air conditioner control. 

  

	 	11.6.2	240V, ***-ampere relays shall be furnished for water heater or irrigation Pump control 

  

	11	LED - DCU 

  

	 	11.1	A test LED shall be provided to indicate when a test code is received. In this instance, the LED shall light, but the output relay shall not be activated. 

 

					
	0500 Scope of Work	  	Page 12 of 17	  	

	 	11.2	A LED shall be famished for each output relay. 

  

	 	11.3	The LED shall light whenever its relay is energized. 

  

	12	Watchdog- Digital Control Units (DCU) 

  

	  	Every digital control units (current and future) shall be furnished with a hardware watchdog circuit, which continuously monitors microprocessor performance. If the microprocessor
should malfunction, the watchdog shall automatically reinitialize the microprocessor’s program. 

  

	12.0	Enclosure 

  

	  	The programmable load control DCU enclosure shall be made of UV stabilized, high impact strength plastic. The enclosure shall be NEMA 3R rated. 

  

	  	All electronics shall be mounted in a removable door for ease of maintenance. The door shall be double hinged and shall have a dual point latching mechanism. Provisions shall be
made for securing the cover with 4 screws and a meter seal. 

  

	13.0	ANCILLARY EQUIPMENT 

  

	 	13.1	Portable Test Unit 

  

	  	The portable test unit shall be a hand-held signal generator used for installation and checkout of programmable load control thermostat. The unit will allow manual selection and
transmission of digital radio commands to test for proper operation of a programmable load control thermostat. 

  

	  	The test unit shall be crystal controlled and shall transmit at the appropriate frequency. The frequency tones shall be calibrated and preset at the factory. Digital address coding
shall be selected via incremental push-to-select programmable load control thermostat on front of the unit. There shall be a visual display of the selected address code. The transmission shall be effected by depression of a control button marked
TRANSMIT. 

  

	  	A rechargeable 9V DC battery shall supply power. Automatic power ON/OFF shall be built into the unit so that the unit draws power only while the TRANSMIT button is depressed. The
unit shall be capable of continuous operation for one (1) hour from one (1) 9V rechargeable DC battery. There shall be an LED display to indicate when the battery should be replaced. The unit shall be enclosed in a weather resistant, high
impact polystyrene case and will come standard with a padded canvas carrying case. 

  

					
	0500 Scope of Work	  	Page 13 of 17	  	

	 	13.2	Field Strength Unit (FSU) 

  

	  	The FSU shall be a testing device similar to a spectrum analyzer used to simulate the thermostat or digital control unit (current & new) and provide a read out of field
strength and frequency modulation sent from the LMS through the RTC and Transmitter system. The FSU shall utilize the same communications module and antenna as utilized in the vendor’s programmable load control thermostat and digital control
unit, current and new. 

  

	  	The FSU shall be pre-tuned to operate on AE’s VHF radio frequency and shall be powered from its internal rechargeable battery, 120 V AC charger, or cigarette lighter adapter
The FSU shall come with a 120v, 601-Iz battery charger/power supply and a cigarette plug adapter. 

  

	 	13.3	Remote Transmitter Controller (RTC) 

  

	  	Located at each transmitter, the Remote Transmitter Controller shall be a microprocessor-based device connected to the Load Management System (LMS) by (minimum 1200-baud) modem or
high speed ISDN line. The Remote Transmitter Controller receives messages from the Traffic Interface Controller, stores the messages until the proper time to transmit and then keys the transmitter and modulates the RF carrier with digitally encoded
audio signals. The RTC shall be capable of receiving and responding to a contact closure for listen-before-talk to make sure the channel is free before transmitting. The RTC shall contain watchdog circuitry to eliminate lockups caused by transients
and power surges. The RTC shall be able to operate the following transmission modes: Slot Mode, Variable Length Time Slot Mode, and Contiguous Mode which will allow for standard “DC” and “Tone” keying, Dual AFSK/FSK and
Multi-port keying. Each RTC shall be capable of controlling up to six transmitters. 

  

	 	13.4	Remote Transmission Monitor (RTM) 

  

	  	The RTM shall receive the same audio messages used to activate programmable load control thermostats and digital control units (DCU) for load control. The RTM shall be capable of
receiving outgoing messages from either a single transmitter or an entire transmitter network. The RTNI shall receive messages, decode the message and send it back to the Load Management System (LMS) for verification of the load
control/’programming message. The RTM shall contain watchdog circuitry to eliminate lockups caused by transients and power surges. The RTM shall decode AFSK and FSK protocols at the same time. 

  

					
	0500 Scope of Work	  	Page 14 of 17	  	

	 	13.5	Portable Counter Display (PCD) = (Optional) 

  

	  	The portable counter display shall be a hand-held data retrieval unit used in the field to recover historical data from an individual radio controlled programmable load control
thermostat or Digital Control Units (DCU). 

  

	  	The PCD shall retrieve the data stored internally in each programmable load control thermostat. This data shall include commands received, the number of operations performed, the
time-out interval selected, the programmable load control thermostat address, the enabled or disabled state of the cold load pick-up feature, and the elapsed time since the programmable load control thermostat memory was last reset.

  

	  	The PCD shall operate continuously for one (1) hour from one (1) rechargeable 9V DC battery. The PCD shall have an LED display to indicate when the battery should be
replaced. 

  

	  	The PCD shall be enclosed in a weather resistant, high-impact polystyrene case. 

  

	14.0	INSTALLATION AND TRAINING 

  

	 	14.1	Instruction and Maintenance Manuals 

  

	 	1.	The vendor shall supply three (3) copies of each: 

  

	 	a.	All non-proprietary software documentation. 

  

	 	b.	Testing procedures/criteria for both thermostat and communication module. 

  

	 	c.	Instruction and maintenance manuals for all vendor supplied hardware, software, and peripherals. 

  

	 	2.	Installation by the vendor shall include. 

  

	 	a.	On-site installation and interconnection of RTC, RTM, and PCD. 

  

	 	b.	Installation and boot-up of all software and software up-dates - if necessary. 

  

	 	c.	Complete checkout and test run of all hardware and software. 

  

	15.0	PRODUCT PERFORMANCE AND EXPECTATIONS 

  

	 	15.1	Vendor’s products (current and new) will work as described in vendor - Comverge, Scientific Atlanta, White Rogers, or any other product datasheets, letter, e-mails, and shall
respond correctly as well as consistently to load control signals from the LMS. 

  

	 	15.2	Vendor agrees to abide by all testing as described in this specification and in attachments. 

  

	 	15.3	Vendor will supply all shunts/relays at no charge to AE to be used on installations of current and new product lines. 

  

					
	0500 Scope of Work	  	Page 15 of 17	  	

	 	15.4	The purchases of ancillary equipment as described in this specification shall include installations and set-up; this includes all software and performing data conversions of all
information from/to AE LMS. 

  

	 	15.5	Vendor will provide AE with timely solutions - 30 working days, to solving problems encountered with the vendor’s products. 

  

	16.0	FACTORY TEST AND INSPECTION 

  

	 	16.1	Vendor shall supply AE with a test fixture along with test procedures to test its product. Vendor reserves the right to inspect the testing process at any time.

  

	 	16.2	Vendor agrees to abide by the graduated testing rate (see attachment) for all new products, and will reimburse AE for all testing fees as indicated in the attachment.

  

	 	16.3	Vendor agrees that all BMA’s will be tested at a rate of 100% and will reimburse AE for all testing fees. 

  

	 	16.4	Vendor agrees to provide AE with a complete diagnostic of failed units as to the cause of the failure within 30 days of receipt. 

  

	17.0	WARRANTY 

  

	 	17.1	In the event the vendor’s product - Honeywell Thermostats (including communication module), Comverge SuperStat SSB-206 (White Rodgers, including communication module), or
Digital Control Units should fail during the warranty period (*** months from the date of shipment), the vendor agrees to cover all costs associated with replacing the failed product. This includes any labor fees associated with removing the failed
product, a new or replacement product, reinstalling the new product, and all shipping charges for units over the ***% expected annual failure rate. 

  

	 	17.2	Warranty also applies to, and covers products that do not respond to control signals. 

  

	 	17.3	All ancillary devices/equipment as well as test equipment listed in section 13.0 shall come with a *** month warranty. 

  

	 	17.4	Software - Must operate as stated in vendor literature, be free of any viruses, and be up gradeable without losing or corruption of existing data. 

  

	 	17.5	Warranty Exclusions. 

  

	 	17.6.1	Warranty shall not apply to vendor products that exhibit evidence of abuse, misuse or damage caused by (a) Austin Energy, (b) Honeywell DMC, or (3) Austin
Energy’s customers. 

  

					
	0500 Scope of Work	  	Page 16 of 17	  	

	 	17.6.2	The warranty shall not apply to any products that are removed by reason of an Austin Energy customer’s request to withdraw from the Power Partner Program.

  

	18.	SCHEDULE 

  

	  	Vendor shall include with quotation a proposed estimated delivery schedule and a list of deliverables. Schedule should include but not be limited to: 

  

	 	1.	Project Team 

  

	 	2.	Project implementation Plan 

  

	 	3.	Project Timelines 

  

					
	0500 Scope of Work	  	Page 17 of 17	  	

 City of Austin 
 LOAD MANAGEMENT SYSTEM PRICE SHEET 
  

							
	1)	 	Remote Transmitter Controller	  	***	 	$***
		 	(Price includes set-up and connection; per Converge datasheets)	  		 	
				
	2)	 	Remote Transmission Monitor	  	***	 	$***
		 	(Price includes set-up and connection; per Converge datasheets)	  		 	
				
	3)	 	Portable Test Unit (per Comverge datasheets)	  	***	 	$***
				
	4)	 	Portable Counter Display (per Comverge datasheets)	  	***	 	$***
				
	5)	 	Hand Held Signal Strength Analyzer	  	***	 	$TBD after
		 	(This device to be approved by AE)	  		 	firm specifications are developed
				
	6)	 	Programmable Load Control Thermostat/Switches:	  		 	
				
		 	Honeywell T7512A (per Comverge datasheets)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	Honeywell T7512B (per Comverge datasheets)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control H/P Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	White Rogers T85 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	White Rogers T85 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control H/P Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	Comverge S225 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
				
		 	Comverge S225 (full features TBD)	  		 	
		 	SuperStat/SA206 - Programmable	  	***	 	$***
		 	Load Control A/C Thermostats (includes Austin Energy Logo Insert)	  		 	
		 	DCU S2100/SA206	  	***	 	$***
		 	(Outside type receiver switch w/2 30A relays)	  		 	
				
	7)	 	System Support/Training	  	***	 	$***/day
		 	(includes travel, hotel, meals)	  		 	
	8)	 	Annual software maintenance	  	***	 	$***
		 	(Bug fixes, patches, and updates)	  		 	
	9)	 	Out of Warranty Thermostat	  	Any	 	$ ***
	10)	 	New devices developed by Comverge and approved by AE may be added to price sheet; cost of these devices will remain within approved budget.

 City of Austin, Texas 
 Human Rights Commission 
 NON-DISCRIMINATION CERTIFICATION (IFB) 
 TO: CITY OF AUSTIN, TEXAS 
 I hereby certify that our firm conforms to the 1992 City of Austin Code; Chapters 7-4 as reiterated below: 
 ARTICLE VII, Chapter 7-4: Discrimination in Employment by City Contractors. Sec. 7-4-2 Requirements of contractors: 
  

	B	(1)     Not to engage in any discriminatory employment practice defined in this chapter. 

  

	 	(2)	To take affirmative action to insure that applicants are employed, and that employees are treated during employment, without discrimination being practiced against them as
defined in this chapter. Such affirmative action shall include, but not be limited to, employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rate of pay or other forms of compensation; and
selection for training or any other terms, conditions, or privileges of employment. 

  

	 	(3)	To post in conspicuous places, available to the employees and applicants for employment, notices to be provided by the Austin Human Rights Commission setting forth the
provision of this chapter. 

  

	 	(4)	To state in all solicitations or advertisements for employees placed by or on behalf of the contractor, that all qualified applicants will receive consideration for employment
without regard to race, creed, color, religion, national origin, sex or age. 

  

	 	(5)	To obtain a written statement from any labor union or labor organization furnishing labor or service to the contractors in which such union or organization has agreed not to engage
in any discriminatory employment practices as defined in this chapter and to take affirmative action to implement the policies and provisions of this chapter. 

  

	 	(6)	To cooperate fully with the City and the Austin Human Rights Commission in connection with any investigation or conciliation effort of the Austin Human Rights Commission to ensure
that the purpose of the provisions against discriminatory employment practice is being carried out. 

  

	 	(7)	To require of all subcontractors having 15 or more employees who hold any subcontract providing for the expenditure of $2,000 or more in connection with any contract with the City
subject to the terms of this chapter that they not engage in any discriminatory employment practice as defined in this chapter. 

  

					
	Dated this 1st day of October, 2004	 	Vendor	 	Comverse Inc.
			
		 	Signature	 	 /s/ FRANK A. MAGNOTTI

		 	Title	 	President Global Sales and Marketing

  

					
	 0800 (IFB) Non-Discrimination Certification
                     (HRC0-0001)
	  	1	 	Rev. 05/10/00

 MINORITY - AND WOMEN-OWNED BUSINESS ENTERPRISE (M/WBE) 
 PROCUREMENT PROGRAM (IFB) 
  

	
	    SOLICITATION NUMBER: SL04100009
	
	    PROJECT NAME: Load Management Programmable Thermostates
	
	    DATE ISSUED: N/A - Sole Source

 The 1992 City Code, Chapter5-7, as amended, establishes a Minority- and Women-Owned Business Enterprise (M/WBE)
Procurement Program. The aim of this program is to promote M/WBE participation in all areas of the City’s procurement, through its prime contract awards and subcontracts, and to afford M/WBEs an equal opportunity to compete for all City
contracts. In particular, this program encourages contractors to provide opportunities to certified M/WBEs for subcontractors or related contracts. A “Subcontractor” is defined by the Ordinance and for the purposes of this form as any
person or business enterprise providing goods, labor, or services to a contractor if such goods, labor, or services are procured or used in fulfillment of the contractor’s obligations arising from a contract with the City. In accordance
with the 1992 City Code, Chapter 5-7, as amended, goals for M/WBE participation differ from contract to contract, based on the type of contract, the availability of M/WBEs to perform the functions of the contract, and other factors. 

The City of Austin has determined that no goals will be established for this project. 
 Even though no goals have been established, the bidder is required to comply with the City’s M/WBE Procurement Program if areas of subcontracting are identified. If certain services are needed to
perform the contract and the bidder does not perform those services with its own workforce or if certain supplies or materials are required and the bidder does not have those supplies or materials in its inventory, the bidder shall:

  

	 	A.	contact the Department of Small and Minority Business Resources (SMBR), 4100 Ed Bluestein Blvd. Austin Texas 78721 ((512) 974-7600) to obtain a list of available MBE/WBE firms to
perform the services or provide the supplies or materials. Make a good faith effort to use MBE/WBEs to provide the needed services, supplies or materials.

  

	 	B.	obtain an M/WBE Procurement Program Package from the buyer in the Purchasing Office, complete the Compliance Plan to document all subcontracting activity, and return it to the Buyer
in the Purchasing Office. 

  

	 	C.	report all initial subcontract awards to the Contract Manager for this project with ten (10) calendar days after execution of an Agreement with a subcontractor.

  

					
	I understand and agree that this MBE/WBE form shall become a part of my contract with the City of Austin.
			
	 Frank A Magnotti, President Global Sales and Marketing
	 		 	
	 Name and Title of Authorized Representative (Print or type)
	 		 	
			
	 /s/ FRANK A. MAGNOTTI
	 		 	 10/1/04

	Signature	 		 	Date

  

					
	 0900NG (IFB) MBE/WBE No Goals Form
 (HRC0-0001)
	  	1	 	Revised 08/14/00

 

 
 Amendment No. 1 
 to 
 Contract No. CO 50031 
 for 
 Programmable Thermostats 
 between 
 Comverge 
 and the 
 City of Austin 
  

	1.0	The term of the above referenced contract is hereby changed as follows: 

  

			
	Change From:	  	Change To:
		
	Basic Term: Nov. 16, 2004 - Nov. 15, 2005	  	Nov 16, 2004 - Sept. 30, 2005
	Option 1 : Nov. 16, 2005 - Nov. 15, 2006	  	Oct, 1, 2005 - Sept 30, 2006
	Option 2: Nov. 16, 2006 - Nov. 15, 2007	  	Oct 1, 2006 - Sept 30, 2007
	Option 3 : Nov. 16, 2007 - Nov. 15, 2008	  	Oct 1, 2007 - Sept 30, 2008

  

	2.0	The City hereby exercises the first extension option for the above referenced contract. Effective October 1, 2005, the term for the extension option will be October 1,
2005 to September 30, 2006 and there are two remaining options. 

  

	3.0	The total Contract amount is increased by $*** for the extension option period. The total Contract authorization is recapped below: 

  

					
	 Term
	  	 Contract Amount for the term
	  	 Total Contract Amount

	Basic Term: Nov 16, 2004 - Set 30, 2005	  	$***	  	$***
	 Amendment No. 1: Option 1
 10/01/05 -
09/30/06
	  	$***	  	$***

  

	4.0	MBE/WBE goals do not apply to this contract. 

  

	5.0	All other terms and, conditions remain the same. 

 BY THE Signatures
affixed below, Amendment No. 1 is hereby incorporated into and made a part of the above-referenced contract. 
 Signature: 
  

							
	 /s/ Wayne Wren
	 		 	 /s/ Bea Washington for

	 Printed Name: Wayne Wren
 Authorized
Representative
	 		 	 Sandy Calles, Senior Buyer
 City of Austin
 Purchasing Office

			
	 Comverge Inc.
 4497 Park Dr.
 Norcross, GA. 30093-2908
	 		 	
			
	 10.12.05
	 		 	 10/12/05

	Date	 		 	Date
			
	Reviewed and Approved	 		 	
				
	Signature:	 	 /s/ Urcha Dunbar-Crespo
	 		 	
			
	 Urcha Dunbar - Crespo
	 		 	 10/13/05

	Printed Name:	 		 	DateStrategic Marketing and Developing Agreement, dated February 14, 2006

 Exhibit 10.10 
 *** Indicates material has been omitted pursuant to a Confidential Treatment Request filed with the Securities and Exchange Commission. A complete copy of this agreement has been filed separately with the Securities and Exchange
Commission. 
  
 CONFIDENTIAL 
 STRATEGIC DEVELOPMENT AND MARKETING AGREEMENT 
 This
Strategic Development and Marketing Agreement (this “Agreement”) is made and entered into this 14th day of February, 2006 (the “Effective Date”), by and between Air Products and Chemicals, Inc. (“Air Products”) and
Comverge, Inc. (“Comverge”). Comverge and Air Products are individually referred to as “Party” or collectively as “Parties.” 
 WHEREAS, Comverge offers Services pursuant to which it collects fees from electricity utilities for making available customers willing to allow such utilities to manage the electricity demand of such customers; 
 WHEREAS, Air Products and Comverge intend to cooperate in the marketing of Comverge’s Services to commercial and industrial consumers of electricity in North
America and Europe; 
 WHEREAS, the Parties intend for Air Products to assist Comverge’s efforts to offer industry-specific demand-response Services;
and 
 WHEREAS, as described in this Agreement, the Services will be marketed and sold by Comverge pursuant to collaborative marketing and sales efforts.

 NOW, THEREFORE, in consideration of the foregoing and the covenants herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound, agree as follows: 
 1. DEFINITIONS. In addition to the capitalized
terms defined elsewhere in this Agreement, the following capitalized terms will have the following meaning when used in this Agreement: 
 “Affiliates” means with respect to any Party, any Person, directly or indirectly, controlling, controlled by or under common control with such Party. For purposes of this definition, “control” means (i) in
the case of a Person that is a corporate entity, direct or indirect ownership of more than fifty percent (50%) of the stock or shares having the right to vote (or such lesser percentage which is the maximum allowed to be owned by a foreign
corporation in a particular jurisdiction) for the election of directors of such Person or (ii) in the case of a Person that is an entity, but is not a corporate entity, the possession, directly or indirectly, of (A) more than fifty percent
(50%) of the economic or partnership interest in the income or capital of such Person or (B) the power to direct, or cause the direction of, the management or policies of such Person, whether through the ownership of voting securities, by
contract or otherwise; and the terms “controlling,” “controlled by” or “under common control” will have the meanings correlative to the foregoing. 
 “Business Models” as described under Section 2 means the information describing acquisition and/or aggregation of load, solely from
Large Load Customers, for re-sale to Electric Utilities consisting of a Commercial Customer and Industrial Customer load acquisition strategy, including the incentives used to encourage Commercial Customers and Industrial Customers to participate in
Services. 
  

 1 

 CONFIDENTIAL 
 “Calendar Month” means a calendar month or, with respect to the first month of the Term the period beginning on the Effective Date and ending on the first day of the first full calendar month
thereafter and with respect to the last month of the Term the period beginning on the first day after the last day of the last full calendar month of the Term and ending on the last day of the Term. 
 “Capacity” means electrical load measured in kilowatts that is capable of being reduced and then provided to Electric Utilities by
Comverge. 
 “Commercial Customers” means any Person other than a natural person or an Existing Customer engaged in
commerce. 
 “Comverge’s Businesses” mean (i) the sale of demand responsive hardware and software to Electric
Utilities or any other Person including without limitation digital control units, smart thermostats, multiuse gateways and controlling software designed to achieve demand reduction and provide electricity consumers with real time pricing of
electrical usage, (ii) the provision of electric capacity to Electric Utilities or any other Person pursuant to a Virtual Peaking Capacity or other like agreement and (iii) the sale of advanced metering devices to Electric Utilities.

 “Electric Utilities” means electric power providers, investor owned utilities, electric cooperatives, municipalities,
independent system operators (or other governmental or quasi governmental Person(s) controlling the generation, distribution or transmission of electricity). 
 “Existing Customers” means (i) Persons that Comverge has previously enrolled in a load reduction program pursuant to a written agreement prior to the Effective Date, and (ii) those Persons
listed in Exhibit A that either (a) are in the process of enrolling in a load reduction program or (b) will enroll in a load reduction program through present negotiations or discussions. 
 “Industrial Customers” means any Commercial Customer that is engaged in any business related to the manufacture of goods, including
activities associated with acquiring raw materials for goods such as mining operations. Industrial Customers do not include Existing Customers. 
 “Industry Targets” means the following industries, any industry in which Comverge employs the Business Models, and such other industries upon which the Parties may from time to time agree: 
 *** 
  

 2 

 CONFIDENTIAL 
 “Invention” means any new or improved apparatus, process, formula, information, product, invention, discovery, idea, suggestion, material, data, equipment, design, drawing, prototype, report, computer
software, documentation or other intellectual property or know-how invented, discovered, produced, conceived, or reduced to practice by a Party or its personnel in connection with, or as a result of, this Agreement or as a result of any information
provided to a Party by the other Party. 
 “Large Load Customer” means (i) any *** utilizing the Services,
(ii) any *** that utilizes the Services through which it makes available a load reduction of *** or more or (iii) any Commercial Customer that utilizes the Services through which it makes available a load reduction of *** or more and ***.
Large Load Customers exclude Existing Customers. 
 “Person” means any natural person, corporation, company, partnership,
limited liability company, proprietorship, trust or estate, joint venture, association, or other legal entity. 
 “Revenue”
means, with respect to each Calendar Month during the Term, the *** owed to Comverge and any of its Affiliates in connection with the provision of Services to Large Load Customers provided however, that to the extent Comverge has utilized new
teachings in a unique Business Model to add incremental Capacity from an Existing Customer (“Incremental Capacity”) and if such Incremental Capacity can be discretely identified and measured, gross revenue resulting from such Incremental
Capacity will be included in “Revenue” notwithstanding anything in this Agreement to the contrary. 
 “Services”
means all services (and the associated supply of equipment necessary to supply such services) relating to contracting with Commercial Customers and Industrial Customers for Capacity, and then making available to Electric Utilities a specific amount
of such Capacity for the on-demand reduction of such Capacity by Electric Utilities; provided, however, that “Services” expressly exclude the sale of equipment or the provision of services that is unrelated to making Commercial
Customers’ and Industrial Customers’ Capacity available for reduction by Electric Utilities. 
 “Third Party”
means any Person other than Air Products or Comverge or their respective Affiliates. 
 2. BUSINESS MODELS. Air Products, in collaboration with Comverge,
will develop the Business Models during the *** period beginning on the Effective Date as follows. The Parties will agree upon an initial quantity of Industry Targets (no fewer than *** and no more than ***) that Air Products will evaluate in
connection with preparing the Business Models. Air Products will (i) evaluate the technical feasibility and commercial viability of providing Services to customers of Electric Utilities in the Industry Targets, and (ii) use commercially
reasonable efforts 
  

 3 

 CONFIDENTIAL 
 to develop Business Models for each Industry Target where it is mutually agreed by Air Products and Comverge, that it would be technically feasible and commercially viable for Comverge to provide, and for customers in such Target Industries
to use, the Services (each a “Viable Industry Target” and collectively the “Viable Industry Targets”); provided, however, neither Party will have any obligation to agree that any Industry Target is a Viable Industry Target. Air
Products will prepare Business Models until it either has completed *** Business Models or all of the initial Industry Targets agreed upon by the Parties have either been determined to be not a Viable Industry Target or for which a Business Model
has been prepared. At Air Products’ reasonable request, Comverge will assist Air Products in such evaluation of technical feasibility and commercial viability and development of the Business Models. In developing such Business Models, Air
Products will: 
  

	 	a.	assemble a team of qualified Air Products personnel to carry out the analysis of each Viable Industry Target; 

  

	 	b.	perform process and non-process load analysis on at least *** (***) mutually agreed customer in each Viable Industry Target; and 

  

	 	c.	perform technology analysis on Comverge’s and third parties’ technology in relation to each Viable Industry Target. 

 As reasonably requested by Air Products from time to time, Comverge will provide to Air Products the information concerning the Services that is necessary or useful for
Air Products to develop the Business Models. Comverge may request, from time to time, that Air Products provide assistance to Comverge in connection with Comverge’s marketing and selling of Services to Commercial Customers and Industrial
Customers, and Air Products may, in its sole discretion, provide such assistance to Comverge. 
 3. BUSINESS MODEL DELIVERY DATE. The Parties will cooperate
to create a reasonable schedule for the delivery of the Business Models from time to time during the *** year period beginning on the Effective Date. 
 4.
SALES AND MARKETING. In addition to Comverge’s marketing of the Services generally, Comverge will actively market the Services to potential Commercial Customers and Industrial Customers in the Viable Industry Targets as follows: 
 a. Comverge Committed Marketing Resources. Comverge will commit reasonable resources, which may include direct sales campaign(s) and/or a sales
force, to market the Services to Commercial Customers and Industrial Customers in the Viable Industry Targets. Comverge will bear all costs of such dedicated sales force, with the exception of Air Products’ cost of performing its obligations
under Section 4(b) below which will be Air Products responsibility. Comverge may request to use Air Products’ name or any trademark or service mark of Air Products in any of its marketing campaigns, provided, however, Comverge will have no
right to use such name, trademark or service mark without the prior written consent of Air Products, which Air Products may grant or withhold in its sole and absolute discretion. 
 b. Introductions to Air Products’ Customers. As reasonably requested by Comverge from time to time, Air Products will use commercially

  

 4 

 CONFIDENTIAL 
 reasonable efforts to facilitate an introductory meeting and sales call between representatives of the Comverge sales force and appropriate representatives of Air Products’ existing customers; provided, however, in no event will the
foregoing be construed as a guarantee by, or obligation of, Air Products to facilitate such meetings and sales calls. 
 c. Air Products
Commercial Facilities. In areas in which Air Products maintains its commercial facilities and are serviced by Electric Utilities that have contracted with, or hereafter contracts with, Comverge for Services, Air Products will evaluate such Air
Products facilities that do not then have Capacity demand reduction services to determine whether such commercial facilities would receive commercially viable benefits from participating in the Services. 
 d. Prototype Installation. For the first Large Load Customer in each Viable Industry Target that is serviced by an Electric Utility that receives
Services, Air Products will assist Comverge on prototype installations for such Large Load Customer by assisting Comverge in applying the general principles of the Business Model to the specific circumstances of such Large Load Customer.
Notwithstanding anything to the contrary herein, Comverge will provide any and all equipment needed to execute any prototype installations or Services. Further, Comverge will be solely responsible for specifying, installing and maintaining equipment
required for each prototype installation and providing the Services. 
 e. Bid Proposals. Comverge will prepare bid proposals (each, a
“Proposal”) for potential Electric Utilities it deems in its sole discretion are appropriate candidates for Services describing how Comverge intends to provide Services to each such Electric Utility (each, a “Project”). As
‘reasonably requested by Comverge from time to time, Air Products will use commercially reasonable efforts to assist Comverge with the preparation of the Proposals; provided, however, that Comverge will be solely responsible for executing any
and all Projects and providing the Services. Comverge will not submit any Proposal referencing Air Products or any trademark or service mark of Air Products to any Electric Utility without the prior written approval of Air Products. 
 f. Requests for Credit Support. As reasonably requested by Comverge from time to time in connection with a Project, Air Products will negotiate in
good faith with Comverge for up to thirty (30) days after such request to provide Comverge with credit support (e.g., bid bonds, performance bonds or parent guarantees), in form and substance satisfactory to Air Products. Air Products will have
no obligation to provide Comverge with any such credit support. 
 g. Oversight Committee. Each Party will designate an individual to
represent such Party (each, a “Representative”) on an oversight committee (the “Committee”). The purpose of the Committee is to perform an independent assessment of the performance of the Parties in respect of the Agreement and
to jointly report to the management of each Party such assessment. Each Party’s Representative will be chosen at the sole discretion of such Party provided that such Representative will not serve in a direct capacity in respect to any
significant deliverable under the Agreement. During the first year of the Agreement, the Committee will meet (by telephone, unless both Parties agree to meet in person) at least monthly for the purpose of making such assessment and such Committee
meeting will include representation from each Party’s program manager, or his designee, who will have prepared a written assessment of the program’s progress as reasonably requested by the Committee. Following the first anniversary of the
Effective Date, the Committee will meet as it deems necessary. 
  

 5 

 CONFIDENTIAL 
 5. COMPENSATION 
 a. Service Fee. Air Products will earn a fee on Services equal to (collectively, the “Services
Fees”) the following percentage of Revenue received by Comverge and any of its Affiliates during the Service Fee Earning Period with respect to each Large Load Customer that signed a contract for Services before the eleventh anniversary of the
Effective Date: (i) *** percent (*** %) of the Revenue where the Electric Utility to whom such Large Load Customer’s Capacity is offered provides any consideration (directly, or indirectly other than through Comverge or any of its
Affiliates) to such Large Load Customer for such Large Load Customer’s participation in the Services, and (ii) *** percent (***%) of the Revenue where Comverge and its Affiliates are the sole provider of consideration to such Large
Load Customer for such Large Load Customer’s participation in the Services; in both cases subject to the change of the foregoing percentages set forth in Section 12 and special arrangements reached pursuant to Section 5(n).

 b. Services Fees Earning Period. Services Fees will be earned by Air Products with respect to each Large Load Customer during the
period beginning with the first day of the first Calendar Month in which Comverge receives Revenues from the sale of Capacity to an Electric Utility in respect of a Services contract with such Large Load Customer and continue thereafter for a period
of sixty (60) consecutive Calendar Months, including the first Calendar Month. 
 c. Payment. Except as provided in Sections
5(e), (f) and (g), Services Fees will be due and payable by Comverge monthly within sixty (60) days after the last day of the Calendar Month in which Comverge receives the Revenues used to calculate such Services Fee. 
 d. Interest. Services Fees earned pursuant to Section 5(b) will accrue interest from the period commencing sixty (60) days after the
last day of the Calendar Month the Revenues attributable to such Services Fees are received by Comverge until the date such Services Fees are due and payable at a rate equal to *** percent (***%) per annum compounded daily. 
 e. Services Fees Postponement Period. Notwithstanding the provisions of Section 5(b), payment of Services Fees will be postponed until the
earlier of the date thirty (30) months after the Effective Date or the occurrence of an Acceleration Event (as defined in Section 5(f) below). Interest will accrue on the postponed Services Fees pursuant to Section 5(d). Comverge may,
however, elect to pay such Services Fees in the period specified in Section 5(b) without the accrual of interest. 
 f.
Acceleration. Upon a Liquidation Event or Qualified Public Offering (both as defined in Comverge’s Fourth Amended and Restated Certificate of Incorporation dated February 13, 2006, as amended) (“Acceleration Event”), and
provided further that the Minimum Threshold of Section 5(g) has been attained, all Services Fees earned and unpaid, plus applicable interest thereon, as of the effective date of such Liquidation Event or Qualified Public Offering will be
accelerated and become due and payable within sixty (60) days after such effective date. Services Fee earned after the effective date of an Acceleration Event will be due and payable as provided in Section 5(c). 
  

 6 

 CONFIDENTIAL 
 g. Minimum Thresholds. Notwithstanding the foregoing, no Services Fees will be payable by Comverge pursuant to Section 5(c) or (f) until such time as Comverge has first begun receiving payment for an
aggregate demand-response load reduction of *** from Large Load Customers introduced by Air Products or acquired through a Business Model with which Comverge entered into Services contracts after the Effective Date (“Minimum Threshold”);
provided, however, that at such time as Air Products has delivered *** (***) Business Models, all load reduction from Large Load Customers shall apply to the Minimum Threshold without regard to whether such Large Load Customers were introduced
by Air Products or acquired through a Business Model. At such time that the Minimum Threshold has been met (“Minimum Threshold Date”), any Services Fees that would have been due and payable but for the application of this
Section 5(g), will become due and payable, including interest accrued thereon pursuant to Section 5(d), and will be paid by Comverge on or before sixty (60) days after the Minimum Threshold Date. Services Fees not due and payable as
of the Minimum Threshold Date will become due and payable in accordance with Section 5(c). 
 h. Other. It is understood and
agreed by the Parties that Revenues on which Services Fees are calculated pursuant to Section 5(a) includes (i) Revenue received by Comverge as a result of demand reduction from all *** utilizing the Services and Commercial Customers that
utilize the Services through which it makes available a load reduction of *** or more, in either case regardless of whether inside or outside of the Viable Industry Targets or whether or not a Business Model or introduction by Air Product was used
to acquire such Large Load Customer, and (ii) Revenues received as a result of demand reduction from those specific *** that utilize the Services through which each makes available a load reduction of *** or more but less than *** that are
acquired through a Business Model or introduction by Air Product. 
 i. Equipment Fees. Comverge will pay to Air Products a fee equal
to *** percent (***%) of the aggregate gross revenue received by Comverge and any of its Affiliates for sales of equipment alone (i.e., not in connection with the Services) to Large Load Customers in the first *** (***) Calendar months
after Comverge first sold equipment to such Large Load Customer (the “Equipment Fee”). The Equipment Fee with respect to each Large Load Customer will be due and payable with respect to each such Large Load Customer within sixty
(60) days after the end of the twenty-fourth Calendar Month after Comverge first sold such equipment to such Large Load Customer. Equipment Fees will only be paid on sales of equipment to Large Load Customers that are either directly introduced
to Comverge by Air Products or that purchased equipment as a result of new teachings learned by Comverge from a Business Model. The payment of Equipment fees will be mutually exclusive of the payment of Services Fees pursuant to subparagraph (b).

 j. Work Product Fees. Comverge will pay to Air Products ***% of all gross revenue (and the cash value of any non-cash
consideration) received in connection with any transfer of any interest in the Work Product or other disclosure (pursuant to a contract) for value other than in connection with the Services (the “Work Product Fee”); provided, however, that
a Work Product Fee will not be payable on the sale of substantially all of the assets of Comverge so long as the purchaser acquires the Agreement and assumes all liabilities herein. The Work Product Fee will be due and payable within sixty
(60) days after the end of the Calendar Month in which Comverge receives such gross revenue. 
  

 7 

 CONFIDENTIAL 
 k. Report. On or before sixty (60) days after the last day of each Calendar Month, Comverge will furnish to Air Products a written report showing in detail for such Calendar Month the Revenue, Equipment
Fees and Work Product Fees earned in such Calendar Month. 
 l. Audit Rights. 
 i. Records. Comverge will keep, and will require its Affiliates to keep, such records as are necessary to determine accurately the Revenue,
Equipment Fees and Work Product Fees due under this Agreement. Such records will be retained by Comverge for the Term (as defined in Section 11) and for five (5) years thereafter. 
 ii. Audit. At the written request of Air Products, with reasonable advance notice, Comverge will make available for inspection, review, and audit,
by a certified public accounting firm appointed by Air Products, such records of Comverge as may be reasonably necessary to verify Comverge’s accounting reports and the fees and payments made or to be made pursuant to this Agreement; provided,
however, that such audits may not be performed by Air Products more than twice per calendar year in the absence of a reasonable basis for concern regarding compliance with the Agreement or any applicable laws. If such accountants identify a
discrepancy, then the appropriate Party will pay the other Party the amount of the discrepancy within thirty (30) days of the date of receiving such accountant’s written report, or as otherwise agreed upon by the Parties, plus, in the
event of any underpayment that resulted from an accounting error, interest calculated in accordance with Section 5(m). 
 iii. Audit
Confidentiality. Air Products will cause any accountants selected by it to enter into a confidentiality agreement acceptable to Comverge obligating such accountants to retain all such information in confidence pursuant to such confidentiality
agreement. Such accountants will not reveal to Air Products the details of its review, except as is necessary to substantiate the amounts owed under this Agreement and any discrepancies identified by such accountants, and such details will be
treated as Confidential Information, Each Party agrees to hold in strict confidence all information concerning the fees and payments and reports due hereunder, and all information learned in the course of any audit or inspection (and not to make
copies of such reports and information), except to the extent necessary for such Party to reveal such information in order to enforce its rights under this Agreement or if disclosure is required by laity, regulation or order of a governmental
authority. 
 iv. Costs of Audits. Air Products will pay for such audits, except in the event the adjustment shown by such audit is
both greater than *** percent (***%) of the amount owed and exceeds *** dollars ($***), in which case Comverge will pay for such audit. 
 m. Late Payments. Any amounts not paid when due under this Agreement will be subject to interest from and including the date payment is due through and including the date upon which the relevant Party has collected immediately
available funds in an account designated by such Party at an monthly rate equal to ***%, or, if lower, the highest rate permitted under applicable law. 
  

 8 

 CONFIDENTIAL 
 n. Special Arrangements with Respect to Revenue. Prior to the Effective Date, Comverge infrequently had opportunities to receive revenue pursuant to special business arrangements (substantially different from
its ordinary arrangements) whereby Comverge contracted with third parties for Capacity through channels other than Comverge’s sales representatives or agents and where such third parties provided all or substantially all of the Services
required to provide Capacity (“Special Arrangements”). In the event Special Arrangement arise after the Effective Date, Comverge will pay Service Fees to Air Products based on Revenues received from such Special Arrangements less amounts
paid to such third party for securing such Special Arrangements. 
 o. Additional Compensation. Comverge shall issue to Air Products a
Warrant to Purchase Series C Preferred Stock (the “Warrant”), in the form attached hereto as Exhibit B, upon delivery of an executed copy of this Agreement to it by Air Products, and that the terms of the Warrant are incorporated
herein by reference as additional compensation under this Agreement. 
 6. CONFIDENTIAL INFORMATION. 
 a. Definition. “Confidential Information” means all material or information relating to a Party’s, its Affiliates’ or its
business partners’ research, development, or business operations and affairs that such Party identifies as confidential or should be reasonably understood to be confidential. Without limiting the generality of the foregoing, Work Product (as
defined in Section 7(a)) will be deemed to be Confidential Information of both Air Products and Comverge. Confidential Information excludes (i) such information previously known to the Party receiving such Confidential Information (the
“Receiving Party”) or publicly available through no act of the Receiving Party either prior or subsequent to the other Party disclosing such Confidential Information (the “Disclosing Party”) to the Receiving Party;
(ii) information disclosed to Receiving Party by a third party having the lawful right to make such disclosure; and (iii) information that is independently developed by the Receiving Party by individuals who the Receiving Party can prove
have not had access to Confidential Information. 
 b. Use and Disclosure. Except as the Disclosing Party may authorize in writing,
the Receiving Party will not use the Disclosing Party’s Confidential Information for any purpose other than in furtherance of the relationship described in this Agreement and will not disclose such Confidential Information to any person other
than its personnel who have a need to know such Confidential Information in order to perform under this Agreement and who are subject to a nondisclosure obligation comparable in scope to this Section 6. Notwithstanding the foregoing, the
Receiving Party may disclose Confidential Information under operation of law or as required by an administrative governmental body or a court of competent jurisdiction provided that the Receiving Party notifies the requesting body of the
confidential nature of the requested information and gives the Disclosing Party prompt notice of the request for such information. Further, Comverge may disclose this Agreement and the Work Product to a bona fide potential purchaser solely for the
purpose of evaluating an acquisition of Comverge provided that such potential purchaser agrees (i) to be bound by the use and disclosure restrictions set forth in this Section 6, and (ii) to use such information solely for the purpose of
evaluating the potential acquisition. 
  

 9 

 CONFIDENTIAL 
 c. Return of Confidential Information. Upon written request by the disclosing Party, or after the expiration of this Agreement, the Receiving Party and its employees will return to the Disclosing Party all
written, taped, or other descriptive matter, including but not limited to drawings and diagrams, descriptions, and other papers and documents which contain Confidential Information; provided, however, that Comverge may retain the Work Product.

 d. Expiration of Obligations. The Parties’ obligation under this Section 6 will expire and no longer be in effect on and
after the last day of the Non-Compete Period (as defined in Section 13) with respect to the Work Product, and will expire and no longer be in effect on and after the expiration of this Agreement with respect to all other Confidential
Information. 
 7. INTELLECTUAL PROPERTY 
 a.
Ownership of the Work Product. Air Products and Comverge will jointly and severally own all right, title and interest in and to the Business Models and any other deliverables pursuant to this Agreement (the “Work Product”).

 b. Air Products Inventions. Air Products will own (i) all intellectual property rights and its know-how owned or controlled by
Air Products prior to the Effective Date, and (ii) all Inventions conceived, created and reduced to practice solely by or on behalf of Air Products in the course of the performance of the Agreement. 
 c. Comverge Inventions. Comverge will own (i) all intellectual property rights and its know how owned or controlled by Comverge prior to the
Effective Date, including without limitation any intellectual property relating to the Services that exists prior to the Effective Date, and (ii) all Inventions conceived, created and reduced to practice solely by or on behalf of Comverge in
the course of the performance of the Agreement. 
 d. Joint Intellectual Property. Inventions conceived, created and reduced to
practice jointly by or on behalf of the Parties in the course of the performance of this Agreement will be jointly owned by the Parties (“Joint Inventions”). Each Party will have the right to freely sublicense and otherwise exploit such
Joint Invention without an obligation to account to the other, with the exception that neither Party shall sublicense Joint Intellectual Property during the Non-Compete period without the prior written consent of the other Party. Air Products will
be responsible for the filing of any patent applications that have claims directed to any Joint Invention and maintenance and defense of any patents issuing therefrom, and the Parties will share the expense of such filing, maintenance and defense,
as well as any awards received therefrom. Air Products will provide all patent filings drafts five (5) days before submission to the patent office to allow Comverge to review and approve. Air Products will provide Comverge with copies of any
filings or correspondence related to any Joint Inventions. 
 8. LIMITED GRANT OF RIGHTS. Each Party agrees that nothing in this Agreement is intended to, or
does, grant a Party the right to use the intellectual 
  

 10 

 CONFIDENTIAL 
 property right (other than Joint Inventions) of the other Party or its Affiliates or business partners for any purpose other than the furtherance of the business relationship contemplated by this Agreement. 
 9. WARRANTY. Air Products warrants that the efforts of Air Products pursuant to Sections 2 and 4 herein will be undertaken in a good, diligent and professional manner
reasonably calculated to achieve the objectives of this Agreement. Comverge warrants that the efforts of Comverge pursuant to Sections 2 and 4 herein will be undertaken in a good, diligent and professional manner reasonably calculated to achieve the
objectives of this Agreement. The foregoing warranties will not constitute a guarantee that the objectives of this Agreement will be achieved, and each Party’s sole and exclusive remedy with respect to a breach of such warranty by the other
will be that the breaching Party will modify or correct any efforts which have not been carried out in a good, diligent and professional manner reasonably calculated to achieve the objectives of this Agreement. EXCEPT AS EXPRESSLY PROVIDED IN
THIS SECTION 9, AIR PRODUCTS MAKES NO, AND EXPRESSLY DISCLAIMS ANY OTHERS, WARRANTY OR REPRESENTATION, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTY CONCERNING ITS EFFORTS PURSUANT TO ITS OBLIGATIONS HEREIN, THE BUSINESS MODELS OR THE
PROPOSALS, OR THE MERCHANTABILITY OR FITNESS THEREOF FOR ANY PURPOSE. EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 9, COMVERGE MAKES NO, AND EXPRESSLY DISCLAIMS ANY OTHERS, WARRANTY OR REPRESENTATION, WHETHER EXPRESS OR IMPLIED, CONCERNING ITS
EFFORTS PURSUANT TO ITS OBLIGATIONS HEREIN. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREIN, NEITHER PARTY SHALL BE LIABLE FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES, INCLUDING LOSS OF USE, LOST PROFIT OR LOST PRODUCTION. 
 10. LIABILITY AND INDEMNITY. Comverge assumes full responsibility for determining the suitability and accuracy of the Business Models and Proposals. Further, Comverge
assumes the risk and liability associated with any marketing activities undertaken, or any use made of the Business Models, by Comverge and its Affiliates or its and their respective personnel, and Comverge agrees to release, defend, indemnify and
hold harmless Air Products its Affiliates and its and their respective employees, agents, contractors and advisors from and against any and all Damages (as defined hereinafter) arising out of any use made of the Business Models and Proposals by
Comverge, except as and to the extent such Damages are caused by Air Products’ gross negligence or willful misconduct. Air Products agrees to release, defend, indemnify and hold harmless Comverge, its Affiliates and its and their respective
employees, agents, contractors and advisors from and against any Damages caused by Air Products’ gross negligence or willful misconduct with respect to its preparation of the Business Models and Proposals. 
 For purposes of this Agreement, “Damages” means losses, liability, damage, cost and expense (including reasonable attorneys’ fees). EXCEPT WITH RESPECT TO
A CLAIM FOR INDEMNIFICATION, ANY OBLIGATION TO MAKE PAYMENT, OR BREACH OF SECTION 6 HEREUNDER, NEITHER PARTY SHALL BE LIABLE HEREUNDER TO THE OTHER PARTY OR ITS AFFILIATES, WHETHER ARISING OUT OF A CLAIM BASED ON BREACH OF CONTRACT OR ON TORT (E.G.,
NEGLIGENCE, STRICT LIABILITY, ETC.) OR OTHERWISE, FOR AN AMOUNT GREATER THAN THE HIGHER OF THE AGGREGATE OF THE FEES ACTUALLY PAID HEREUNDER TO AIR PRODUCTS. 
  

 11 

 CONFIDENTIAL 
 11. LEGAL OPINION. Contemporaneous with its delivery of an executed copy of this Agreement to Air Products, Comverge shall cause its outside legal counsel, Andrews Kurth LLP, to render a legal opinion in the form attached hereto as Exhibit
C to Air Products related to the Warrant. 
 12. TERM. This Agreement will become effective on the Effective Date, and will expire fifteen years after the
Effective Date (the “Term”); provided, however, that the obligations of Air Products under Section 4(b) will expire thirty (30) months after the Effective Date and all other obligations of Air Products under Sections 2 and 4 will
expire on the second anniversary of the Effective Date. 
 13. NON-COMPETE. During the period commencing on the Effective Date and ending on the earlier to
occur of (i) *** (***) months after the Effective Date and (ii) the effective date of any Liquidation Event or Qualified Public Offering (both as defined in Comverge’s Fourth Amended and Restated Certificate of Incorporation
dated February 13, 2006, as amended) (the “Non-Compete Period”), neither Air Products nor its Affiliates will compete with Comverge or its Affiliates either directly or indirectly through an investment in any Person in Comverge’s
Businesses. If Air Products or its Affiliates provide Services after the Non-Compete Period but before the effective date of any Liquidation Event or Qualified Public Offering, either directly, or indirectly through an investment in any Person that
provides Services or the acquisition of a Person that provides Services where such Services are not ancillary to such investment or acquisition and divested within six months, then the percentages set forth in Section 5(a) will be reduced from
*** percent (***%) to *** percent (***%) and from *** percent (***%) to *** percent (***%); provided further that upon the occurrence of any Liquidation Event or Qualified Public Offering such percentages shall no longer be reduced
and shall be restored to the initial percentages set forth in Section 5(a). Notwithstanding any provision to the contrary contained herein, if during the Non-Compete Period Air Products competes with Comverge either directly or indirectly
through an investment in any Person in Comverge Businesses or the acquisition of a Person that competes in Comverge Businesses where such Comverge Businesses are not ancillary to such investment or acquisition and divested within six months, then
Comverge’s obligation to pay Compensation to Air Products under Section 5 of the Agreement shall terminate.
 14. SURVIVAL. The provisions of
Sections, 7(d), 9, 10, 13, 15 and this Section 14 will survive expiration of this Agreement and will be enforceable to the fullest extent permitted by law or in equity. 
 15. MISCELLANEOUS. 
 a. Notices. 
 i. All notices sent under this Agreement will be in writing and (i) hand delivered; (ii) transmitted by legible facsimile with a copy sent
concurrently by certified mail, return receipt requested; or (iii) delivered by prepaid priority delivery service. 
 ii. Notices will
be sent to the Parties at the following addresses or such other addresses as the Parties subsequently may provide: 
  

 12 

 CONFIDENTIAL 
  

			
	 If to Air Products:
	 	 Air Products and Chemicals, Inc.

		 	 7201 Hamilton Blvd.

		 	 Allentown PA 18195

		 	 Attention: David J. Taylor

		 	 Telephone: 610-481-6250

		 	 Fax: 610-706-5979

		
	 If to Comverge:
	 	 Comverge, Inc.

		 	 120 Eagle Rock Avenue, Suite 190

		 	 East Hanover NJ 07936

		 	 Attention: Frank Magnotti

		 	 Telephone: 973-840-5970

		 	 Fax: 973-884-3503

 b. Governing Law; Jurisdiction. This Agreement will be governed by and construed in
accordance with the law of the state of New York, without regard to its conflict of laws principles. For the adjudication of any disputes arising under this Agreement, the Parties hereby consent to personal jurisdiction and venue in (a) the
borough of Manhattan and (b) the Southern District Court of New York. 
 c. Severability. The provisions of this Agreement are
severable, and the unenforceability of any provision of this Agreement will not affect the enforceability of the remainder of this Agreement. The Parties acknowledge that it is their intention that if any provision of this Agreement is determined by
a court to be unenforceable as drafted, that provision should be construed in a manner designed to effectuate the purpose of that provision to the greatest extent possible under applicable law. 
 d. Construction of Agreement. The Parties acknowledge that they thoroughly have reviewed this Agreement and bargained over its terms. Accordingly,
this Agreement will be construed without regard to the Party or Parties responsible for its preparation, and will be deemed to have been prepared jointly by the Parties. 
 e. Cumulative Rights and Remedies. The rights and remedies provided in this Agreement and all other rights and remedies available to either Party at law or in equity are, to the extent permitted by law,
cumulative and not exclusive of any other right or remedy now or hereafter available at law or in equity. Neither asserting a right nor employing a remedy will preclude the concurrent assertion of any other right or employment of any other remedy,
nor will the failure to assert any right or remedy constitute a waiver of that right or remedy. 
 f. Assignment. Either Party may
assign or otherwise transfer (including by operation of law or pursuant to a merger, consolidation or sale of all or substantially all of the assets relating to this Agreement) this Agreement or any of its rights or obligations hereunder, or
subcontract or otherwise delegate any of its rights, obligations, or duties under this Agreement as long as the assignee accepts and assumes in a writing to the non-assigning Party all of the duties and obligations of the assigning Party under this
Agreement. If Comverge transfers all or substantially all of its assets relating to this Agreement, Comverge shall cause all of its obligations and duties under this Agreement to be assumed by the transferee. 
  

 13 

 CONFIDENTIAL 
 g. Binding Effect. This Agreement will be binding upon and inure to the benefit of the Parties and their respective successors, permitted assigns and legal representatives. 
 h. Headings. All headings in this Agreement are included solely for convenient reference, are not intended to be full and accurate descriptions of
the contents of this Agreement, will not be deemed a part of this Agreement, and will not affect the meaning or interpretation of this Agreement. 
 i. Relationship of the Parties. The Parties are independent contractors, and nothing in this Agreement will be construed as creating a partnership, joint venture, employment or agency relationship between the Parties, or between a
Party and any employee of the other Party, or as authorizing either Party to act as agent for the other or to enter into contracts on behalf of the other. 
 j. Amendments. This Agreement may be modified or amended only by written agreement of the Parties. 
 k. Entire Agreement. This Agreement constitutes the entire agreement between the Parties concerning the subject matter of this Agreement and supersedes all prior agreements between the Parties concerning the subject matter hereof.

 l. Further Assurances. Comverge will not, through reorganization, transfer of assets, consolidation, merger, dissolution, or sale
of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed hereunder, but will at all times in good faith assist in carrying out all of the provisions of
Section 5 and in taking all such action as may be necessary or appropriate to protect Air Products’ rights under Section 5 against impairment. 
 m. Counterparts. This Agreement may be executed in two duplicate originals or counterparts. Each of such duplicate originals or counterparts will be deemed to be an original and both taken together will
constitute but one and the same instrument. 
 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their respective duly authorized
officers. 
  

							
	 AIR PRODUCTS AND CHEMICALS, INC.
	 	 COMVERGE, INC.

				
	 By:
	 	 /s/ David J. Taylor
  
	 	By:	 	 /s/ Robert M. Chiste
  

	 Name:
	 	 David J. Taylor
	 	 Name:
	 	 Robert Chiste

	 Title:
	 	 Vice President
	 	 Title:
	 	 CEO

  

 14 

 CONFIDENTIAL 
 EXHIBIT A 
 Existing Customers 
 State of Connecticut 
 Office of Policy Management 
 R.D. Scinto 
 San Diego Military Bases 
 Home Depot 
 RCMS controls 
 Pitney Bowes 
 United Illuminating Originated Commercial and Industrial Load 
 Utah Power Corporate Office 
  

 15 

 THE SECURITIES EVIDENCED BY THIS WARRANT CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD, TRANSFERRED, OR ASSIGNED UNLESS THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, THE SALE IS MADE IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES
ACT, OR THE COMPANY RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER OF SUCH SECURITIES REASONABLY SATISFACTORY TO THE COMPANY STATING THAT SUCH SALE, TRANSFER, ASSIGNMENT OR HYPOTHECATION IS EXEMPT FROM THE REGISTRATION AND PROSPECTUS DELIVERY
REQUIREMENTS OF SUCH ACT. 
 No.: PC-001 
 WARRANT 
 TO PURCHASE SERIES C PREFERRED STOCK 
 OF 
 COMVERGE, INC. 
 1. Issuance of Warrant. FOR VALUE RECEIVED, on and after the Exercise Date (as defined below), and subject to the terms and conditions herein set forth, the Holder (as defined below) is entitled to purchase
from Comverge, Inc., a Delaware corporation (the “Company”), at any time before the Expiration (as defined below), subject to the satisfaction of the conditions set forth in Section 3 hereof, at a price per share equal to the Warrant
Price (as defined below and subject to adjustment as described below), the Warrant Stock (as defined below and subject to adjustment as described below) upon exercise or conversion of this warrant (this “Warrant”) pursuant to
Section 7 or 8, as applicable hereof. 
 2. Definitions. As used in this Warrant, the following terms have the definitions
ascribed to them herein. Capitalized terms not defined herein take the same meaning as in the Development Agreement (as defined below). 
 (a) “Affiliate” means any person that directly, or indirectly, through one or more intermediaries, controls, or is controlled by, or is under common control with, a person as such terms are used and construed under Rule 144
promulgated under the Securities Act of 1933, as amended. 
 (b) “Business Day” means any day other than a Saturday, Sunday or
other day on which the national or state banks located in the Commonwealth of Pennsylvania or the State of New Jersey are authorized to be closed. 
 (c) “Change of Control” means any (i) the acquisition of the Company by another entity (or group of affiliated entities or entities operating as a group) by means of any transaction or series of related transactions
(including, without limitation, any reorganization, merger or consolidation) unless the Company’s stockholders of record as constituted immediately prior to such acquisition or sale will, immediately after such acquisition or sale (by virtue of
securities 

 issued as consideration for the Company’s acquisition or sale or otherwise) hold at least 50% of the voting power of
the surviving or acquiring entity (except that the sale by the Company of shares of its capital stock to investors in bona fide financing transactions shall not be deemed to be an acquisition for this purpose) or (ii) a sale, lease or other
conveyance or disposition of all or substantially all of the assets of the Company, including a sale of all or substantially all of the assets of the Company’s subsidiaries, if such assets constitute substantially all of the assets of the
Company and such subsidiaries taken as a whole. 
 (d) “Commencement Date” means February 14, 2006. 
 (e) “Common Stock” means the Company’s common stock, par value $0.001 per share. 
 (f) “Exercise Date” means the date on which the Company has both (i) executed a total of at least three Services contracts with Commercial
or Industrial Customers in at least three Industry Targets in reliance on a Business Model, each Services contract of which makes available load reduction of 25 kilowatts or more and (ii) has aggregated 7.5 megawatts or more of load reduction
from Large Load Customers in reliance on a Business Model or through an introduction arranged by Air Products provided, however, that at such time as Air Products has delivered three (3) Business Models, all load reduction from Large
Load Customers shall apply to the satisfaction of this condition (ii) without regard to whether such Large Load Customers were introduced by Air Products or acquired through a Business Model. 
 (g) “Expiration” means the expiration of this Warrant, which shall occur on the earliest of (i) 5:00 p.m. New York City time on
August 12, 2008 (the “Expiration Date’), (ii) immediately upon the closing of a Change of Control or (iii) immediately upon the closing of a Public Offering. 
 (h) “Development Agreement” means the Strategic Development and Marketing Agreement dated as of February 14, 2006, by and between the
Company and Air Products. 
 (i) “Holder” means Air Products and Chemicals, Inc. (“Air Products”), or its permitted
assigns. 
 (j) “Public Offering” means the sale of the Company’s securities pursuant to an effective registration statement
under the Securities Act of 1933, as amended. 
 (k) “Series C Preferred” means the Company’s Series C Preferred Stock, par
value $0.001 per share. 
 (l) “Warrant Price” means $7.50 per share, subject to adjustment as described in Section 4 below.

 (m) “Warrant Stock” means the shares of Series C Preferred (or other securities) purchasable upon exercise of this Warrant. The
total number of shares to be issued upon the exercise of this Warrant shall be 500,000, subject to adjustment as described in Section 4 below. 
  

 -17- 

 3. Exercisability. This warrant shall is not exercisable upon issuance and the Holder shall only
have the right to exercise or convert this Warrant pursuant to Section 7 or Section 8, respectively, hereof from the Exercise Date until the Expiration. 
 4. Adjustments and Notices. The Warrant Price and the number of shares of Warrant Stock shall be subject to adjustment from time to time in accordance with this Section 4. 
 (a) Subdivision Stock Dividends Combinations and the Like. In case the Company shall at any time subdivide, combine or consummate a similar
transaction with respect to the outstanding shares of Series C Preferred or shall issue a stock dividend with respect to the Series C Preferred, the Warrant Price in effect immediately prior to such subdivision, issuance of such dividend,
combination or other transaction shall be proportionately decreased, and in case the Company shall at any time combine the outstanding shares of Series C Preferred, the Warrant Price in effect immediately prior to such combination shall be
proportionately increased, in each case effective at the close of business on the date of such subdivision, dividend or combination, as the case may be. 
 (b) Reclassification, Exchange, Substitution, Other Distribution. Upon any reclassification, exchange, substitution or other similar event that results in a change of the number and/or class of the securities
issuable upon exercise or conversion of this Warrant or upon the payment of a dividend in securities other than shares of Series C Preferred or property (other than cash), the Holder shall be entitled to receive, upon exercise or conversion of this
Warrant, the number and kind of securities and property that Holder would have received if this Warrant had been exercised or converted immediately before the record date for such reclassification, exchange, substitution, or other similar event or
immediately prior to the record date for such dividend. The Company or its successor shall promptly issue to Holder a new warrant for such new securities or other property (other than cash). The new warrant shall provide for adjustments which shall
be as nearly equivalent as may be practicable to the adjustments provided for in this Section 4 including, without limitation, adjustments to the Warrant Price and to the number of securities or property issuable upon exercise or conversion of
the new warrant. The provisions of this Section 4(b) shall similarly apply to successive reclassifications, exchanges, substitutions, or other events and successive dividends. 
 (c) Certificate of Adjustment. In each case of an adjustment or readjustment of the Warrant Price, the Company, at its own expense, shall cause
its Chief Financial Officer to compute such adjustment or readjustment in accordance with the provisions hereof and prepare a certificate showing such adjustment or readjustment, and shall mail such certificate, by first class mail, postage prepaid,
to the Holder. The certificate shall set forth such adjustment or readjustment, showing in detail the facts upon which such adjustment or readjustment is based. No adjustment of the Warrant Price shall be required to be made unless it would result
in an increase or decrease of at least one cent, but any adjustments not made because of this sentence shall be carried forward and taken into account in any subsequent adjustment otherwise required hereunder. 
 (d) Adjustment to Number of Shares of Warrant Stock. In the event the Warrant Price is adjusted under any provision of this Section 4, the
number of shares of Warrant Stock shall be simultaneously adjusted by multiplying the number of shares of Warrant Stock by a 
  

 -18- 

 fraction, the numerator of which is the Warrant Price in effect immediately prior to such adjustment and the denominator
of which is the Warrant Price in effect immediately after such adjustment. 
 (e) No Impairment. The Company shall not, by amendment
of its Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the
terms to be observed or performed under this Warrant by the Company, but shall at all times in good faith assist in carrying out all of the provisions of this Section 4 and in taking all such action as may be necessary or appropriate to protect
the Holder’s rights under this Section 4 against impairment. 
 (f) Fractional Shares. No fractional shares shall be
issuable upon exercise or conversion of the Warrant and the number of shares to be issued shall be rounded down to the nearest whole share. If a fractional share interest arises upon any exercise or conversion of the Warrant, the Company shall
eliminate such fractional share interest by paying the Holder an amount computed by multiplying the fractional interest by the fair market value of a full share, as calculated pursuant to Section 8 hereof. 
 5. No Stockholder Rights. This Warrant, by itself, as distinguished from any shares purchased hereunder, shall not entitle its Holder to any of
the rights of a stockholder of the Company. 
 6. Reservation of Stock. On and after the Commencement Date, the Company will reserve
from its authorized and unissued Series C Preferred a sufficient number of shares to provide for the issuance of Warrant Stock upon the exercise or conversion of this Warrant, and from its authorized and unissued Common Stock a sufficient number of
shares to provide for the conversion of the Series C Preferred issuable upon exercise or conversion of this Warrant. Issuance of this Warrant shall constitute full authority to the Company’s officers who are charged with the duty of executing
stock certificates to execute and issue the necessary certificates for shares of Warrant Stock issuable upon the exercise or conversion of this Warrant. 
 7. Exercise of Warrant. This Warrant may only be exercised in whole by the Holder, at any time after the Exercise Date and prior to the termination of this Warrant, by the surrender of this Warrant for
cancellation (or an affidavit of loss and indemnity in a form satisfactory to the Company), together with the Notice of Exercise and Investment Representation Statement in the forms attached hereto as Attachments 1 and 2, respectively, duly
completed and executed at the principal office of the Company, and accompanied by payment in full of the Warrant Price in cash or by check with respect to the shares of Warrant Stock being purchased. This Warrant shall be deemed to have been
exercised immediately prior to the close of business on the date of its surrender for exercise pursuant to this Section 7, and the person entitled to receive the shares of Warrant Stock issuable upon such exercise shall be treated for all
purposes as the holder of such shares of record as of the close of business on such date. As promptly as practicable after such date, the Company shall issue and deliver to the person or persons entitled to receive the same a certificate or
certificates for the number of full shares of Warrant Stock issuable upon such exercise. If this Warrant is exercised after the occurrence of an event as to which Section 4(b) is applicable, the Holder shall receive the consideration
contemplated by Section 4(b) in lieu of Series C Preferred. 
  

 -19- 

 8. Conversion of Warrant. 
 (a) In lieu of exercising this Warrant pursuant to Section 7 hereof, at any time after the Exercise Date and prior to the termination of this
Warrant, the Holder hereof shall have the right to convert this Warrant to purchase the number of shares of Warrant Stock computed using the following formula: 
 X=(Y)(A-B)/A 
 where X =    the number of shares of Warrant Stock to be issued to the
Holder. 
  

			
	Y =	  	the total number of shares of Warrant Stock issuable upon exercise of the Warrant pursuant to Section 7 hereof.
		
	A =	  	the fair market value of one share of Warrant Stock which means (i) the fair market value of the Warrant Stock as of the last Business Day immediately prior to the date the notice of conversion
is received by the Company, as reported in the principal market for such securities or, if no such market exists, as determined in good faith by the Company’s Board of Directors, or (ii) if this Warrant is being converted in conjunction with a
Public Offering the price to the public per share pursuant to the Public Offering.
		
	B =	  	the Warrant Price on the date of conversion.

 Upon the Holder’s delivery to the Company of (i) an executed Notice of Conversion in the form attached
hereto as Attachment 3, (ii) an executed Investment Representation Statement in the form attached hereto as Attachment 2 and (iii) this Warrant for cancellation (or an affidavit of loss and indemnity in a form satisfactory to
the Company), the Company shall issue and deliver to the person or persons entitled to receive the same a certificate or certificates for the number of full shares of Warrant Stock issuable upon such conversion. The Holder is entitled to receive the
shares of Warrant Stock issuable upon such conversion and shall be treated for all purposes as the holder of such shares of record as of the close of business on such date. If this Warrant is converted after the occurrence of an event as to which
Section 4(c) is applicable, the Holder shall receive the consideration contemplated by Section 4(c) in lieu of Series C Preferred. 
 (b) Notwithstanding anything to the contrary herein, in the event that (i) there occurs a Change of Control or a Public Offering after the Commencement Date and prior to the Exercise Date and (ii) the condition set forth in
Subsection 2(f)(i) has been satisfied, this Warrant shall be automatically converted, with no action necessary on the Part of the holder to facilitate such conversion, pursuant to Section 8(a) hereof immediately prior to the closing of such
Change of control or Public Offering, as applicable. 
  

 -20- 

 9. Transfer of Warrant. This Warrant may not be transferred or assigned by the Holder hereof
without the prior written consent of the Company unless such transfer complies with this Section 9. This Warrant may be transferred or assigned by the Holder hereof to an Affiliate of the Holder with the written consent of the Company, which
shall not be unreasonably withheld, provided, however, in the event there occurs (i) an acquisition of such Affiliate by another entity (or group of affiliated entities or entities operating as a group) by means of any transaction or series of
related transactions (including, without limitation, any reorganization, merger or consolidation) or (ii) a sale, lease or other conveyance or disposition of all or substantially all of the assets of such Affiliate that includes the assignment
of this Warrant, then such Affiliate must obtain the written consent of the Company, such consent to be within the sole and absolute discretion of the Company, prior to such transfer or assignment of this Warrant. 
 10. Holder Representations. In connection with the issuance of the this Warrant, the Holder hereby represents to the Company as follows:

 (a) The Warrant Stock to be received upon the exercise of the Warrant will be acquired for investment for Holder’s own account, not as
a nominee or agent, and not with a view to the sale or distribution of any part thereof, and the Holder has no present intention of selling, granting participation in or otherwise distributing the same, but subject, nevertheless, to any requirement
of law that the disposition of its property shall at all times be within its control. By executing this statement, the Holder further represents that it does not have any contract, undertaking, agreement or arrangement with any person to sell,
transfer, or grant participations to such person or to any third person, with respect to any Warrant Stock issuable upon exercise of the Warrant. 
 (b) The Holder understands that the Warrant Stock issuable upon exercise of the Warrant at the time of issuance may not be registered under the Securities Act of 1933, as amended, and applicable state securities laws, on the ground that the
issuance of such securities is exempt pursuant to Section 4(2) of the Securities Act and state law exemptions relating to offers and sales not by means of a public offering, and that the Company’s reliance on such exemptions is predicated
on the Holder’s representations set forth herein. 
 (c) The Holder agrees that in no event will it make a disposition of any Warrant
Stock (or any securities issued upon conversion thereof), acquired upon the exercise of the Warrant, unless and until (i) it shall have notified the Company of the proposed disposition and shall have furnished the Company with a statement of
the circumstances surrounding the proposed disposition, and (ii) it shall have furnished the Company with an opinion of counsel reasonably satisfactory to the Company to the effect that (A) appropriate action necessary for compliance with
the Securities Act and any applicable state securities laws has been taken or an exemption from the registration requirements of the Securities Act and such laws is available, and (B) the proposed transfer will not violate any of said laws.

 (d) The Holder acknowledges that an investment in the Company is highly speculative and represents that it is able to fend for itself in
the transactions contemplated by this statement, has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investments, and has the ability to bear the economic risks (including
the risk of a total loss) of its investment. The Holder represents that it has had 
  

 -21- 

 the opportunity to ask questions of the Company concerning the Company’s business and assets and to obtain any
additional information which it considered necessary to verify the accuracy of or to amplify the Company’s disclosures, and has had all questions which have been asked by it satisfactorily answered by the Company. 
 (e) The Holder acknowledges that the Warrant Stock issuable upon exercise of the Warrant must be held indefinitely unless subsequently registered under
the Securities Act or an exemption from such registration is available. The Holder is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of shares purchased in a private placement subject to the
satisfaction of certain conditions, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the resale occurring not less than one year after a party
has purchased and paid for the security to be sold from the Company or any affiliate of the Company, the sale being through a “broker’s transaction” or in transactions directly with a “market maker” (as provided by Rule
144(f)) and the number of shares being sold during any three month period not exceeding specified limitations. 
 11. Termination.
This Warrant shall terminate upon the Expiration. 
 12. Miscellaneous. This Warrant shall be governed by the laws of the State of
Delaware, as such laws are applied to contracts to be entered into and performed entirely in Delaware by Delaware residents. In the event of any dispute among the Holder and the Company arising out of the terms of this Warrant, the parties hereby
consent to the exclusive jurisdiction of the federal and state courts located in the State of Delaware for resolution of such dispute, and agree not to contest such exclusive jurisdiction or seek to transfer any action relating to such dispute to
any other jurisdiction. This Warrant may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The headings in this Warrant are for purposes of
convenience and reference only, and shall not be deemed to constitute a part hereof. Neither this Warrant nor any term hereof may be changed or waived orally, but only by an instrument in writing signed by the Company and the Holder of this Warrant.
All notices and other communications from the Company to the Holder of this Warrant shall be delivered personally or by facsimile transmission or mailed by first class mail, postage prepaid, to the address or facsimile number furnished to the
Company in writing by the last Holder of this Warrant who shall have furnished an address or facsimile number to the Company in writing, and if mailed shall be deemed given three days after deposit in the United States mail. 
 [SIGNATURE PAGES FOLLOW] 
  

 -22- 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officers thereunto duly
authorized and the Holder represents and warrants as set forth above. 
  

			
	COMPANY:
	
	 COMVERGE, INC.

		
	 By:
	 	 /s/ Robert M. Chiste
  

	 Name:
	 	 Robert Chiste

	 Title:
	 	 C.E.O.

	
	HOLDER:
	
	 AIR PRODUCTS AND CHEMICALS, INC.

		
	 By:
	 	 /s/ David J. Taylor
  

	 Name:
	 	 David J. Taylor

	 Title:
	 	 Vice President

 Attachment 1 
 NOTICE OF EXERCISE 
 TO:    Comverge, Inc. 
 1. The undersigned hereby elects to purchase
                     shares of the Warrant Stock of Comverge, Inc. pursuant to the terms of the attached Warrant, and tenders herewith payment
of the purchase price in full, together with all applicable transfer taxes, if any. 
 2. Please issue a certificate or certificates
representing said shares of Warrant Stock in the name of the undersigned or in such other name as is specified below: 
  

					
		 	  

		 	(Print Name Exactly as Should Appear on Certificate)
			
		 	 Address:
	 	  

		 		 	  

		 	 Phone:
	 	  

		 	 Fax:
	 	  

		 	 Tax ID No.:
	 	  

		
	  
	 	  

	(Date)	 	(Name of Warrant Holder)
			
		 	By:	 	  

		 	Title:	 	  

 Attachment 2 
 INVESTMENT REPRESENTATION STATEMENT 
 Shares of Series C Preferred Stock 
 (as defined in the attached Warrant) of 
 Comverge, Inc. 
 In connection with the purchase of the above-listed securities, the undersigned hereby
represents to Comverge, Inc. (the “Company”) as follows: 
 (a) The securities to be received upon the exercise of the Warrant (the
“Securities”) will be acquired for investment for its own account, not as a nominee or agent, and not with a view to the sale or distribution of any part thereof, and the undersigned has no present intention of selling, granting
participation in or otherwise distributing the same, but subject, nevertheless, to any requirement of law that the disposition of its property shall at all times be within its control. By executing this statement, the undersigned further represents
that it does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer, or grant participations to such person or to any third person, with respect to any Securities issuable upon exercise of the Warrant.

 (b) The undersigned understands that the Securities issuable upon exercise of the Warrant at the time of issuance may not be registered under the
Securities Act of 1933, as amended (the “Securities Act”), and applicable state securities laws, on the ground that the issuance of such securities is exempt pursuant to Section 4(2) of the Securities Act and state law exemptions
relating to offers and sales not by means of a public offering, and that the Company’s reliance on such exemptions is predicated on the undersigned’s representations set forth herein. 
 (c) The undersigned agrees that in no event will it make a disposition of any Securities acquired upon the exercise of the Warrant unless and until (i) it shall
have notified the Company of the proposed disposition and shall have furnished the Company with a statement of the circumstances surrounding the proposed disposition, and (ii) it shall have furnished the Company with an opinion of counsel
satisfactory to the Company and Company’s counsel to the effect that (A) appropriate action necessary for compliance with the Securities Act and any applicable state securities laws has been taken or an exemption from the registration
requirements of the Securities Act and such laws is available, and (B) the proposed transfer will not violate any of said laws. 
 (d) The undersigned
acknowledges that an investment in the Company is highly speculative and represents that it is able to fend for itself in the transactions contemplated by this statement, has such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of its investments, and has the ability to bear the economic risks (including the risk of a total loss) of its investment. The undersigned represents that it has had the opportunity to ask questions of the
Company concerning the Company’s business and assets and to obtain any additional information which it considered necessary to verify the accuracy of or to amplify the Company’s disclosures, and has had all questions which have been asked
by it satisfactorily answered by the Company. 

 (e) The undersigned acknowledges that the Securities issuable upon exercise of the Warrant must be held indefinitely
unless subsequently registered under the Securities Act or an exemption from such registration is available. The undersigned is aware of the provisions of Rule 144 promulgated under the Securities Act which permit limited resale of shares purchased
in a private placement subject to the satisfaction of certain conditions, including, among other things, the existence of a public market for the shares, the availability of certain current public information about the Company, the resale occurring
not less than one year after a party has purchased and paid for the security to be sold from the Company or any affiliate of the Company, the sale being through a “broker’s transaction” or in transactions directly with a “market
maker” (as provided by Rule 144(f)) and the number of shares being sold during any three month period not exceeding specified limitations. 
 Dated:                      
  

			
	  

	(Typed or Printed Name)
		
	 By:
	 	  

		 	(Signature)
	  

	 (Title)
	 	

  

 -2- 

 Attachment 3 
 NOTICE OF Conversion 
 TO:    Comverge, Inc. 
 1. The undersigned hereby irrevocably Consents to the conversion of the attached Warrant
into shares of Warrant Stock of Comverge, Inc. pursuant to Section 8 of the attached Warrant. 
 2. The undersigned hereby acknowledges
that the fair market value of the shares of Warrant Stock to be purchased pursuant to this conversion of the attached Warrant shall be determined pursuant to the terms of the attached Warrant. 
 3. Please issue a certificate or certificates for such shares of Warrant Stock in the following name or names and denominations and deliver such
certificate or certificates to the person or persons listed below at their respective addresses set forth below: 
  

					
		 	  

		 	(Print Name Exactly as Should Appear on Certificate)
			
		 	 Address:
	 	  

		 		 	  

		 	 Phone:
	 	  

		 	 Fax:
	 	  

		 	 Tax ID No.:
	 	  

		
	  
	 	  

	 (Date)
	 	(Name of Warrant Holder)
			
		 	By:	 	  

		 	Title:	 	  

		 		 	(Title and signature of authorized person)

			
	

	  	111 Congress Avenue, Suite 1700
Austin, Texas 78701
512.320.9200
Phone
512.320.9282 Fax
andrewskurth.com

 February 14, 2006 
 Air Products and Chemicals, Inc. 
 7201 Hamilton Boulevard 
 Allentown, Pennsylvania 18195-1501 
 Ladies and Gentlemen: 
 We
have acted as counsel for Comverge, Inc., a Delaware corporation (the “Company”), in connection with the issuance of a warrant to purchase shares of its Series C Convertible Preferred Stock to you pursuant to that certain Strategic
Development and Marketing Agreement dated as of February 14, 2006 (the “Development Agreement”) by and between the Company and you. This opinion letter is being rendered to you pursuant to Section 11 of the Development Agreement
in connection with the execution of such agreement and solely relates to the issuance of the Warrant and the shares of capital stock issuable upon exercise or conversion thereof. We express no opinion with respect to the Development Agreement or any
matters related thereto. Capitalized terms used but not otherwise defined in this opinion letter have the respective meanings given them in the Development Agreement. 
 In connection with the opinions expressed herein, we have made such examination of matters of law and fact as we considered appropriate or advisable for purposes hereof. As to matters of fact material to the opinions
expressed herein, we have relied upon the representations and warranties as to factual matters contained in certificates and statements of government officials and officers of the Company. We have also examined originals or copies of such corporate
documents or records of the Company as we have considered appropriate for the opinions expressed herein. We have assumed for the purposes of this opinion letter the genuineness of all signatures, the legal capacity of natural persons, the
authenticity of the documents submitted to us as originals, the conformity to the original documents of all documents submitted to us as certified, facsimile or photostatic copies, and the authenticity of the originals of such copies. 
 With respect to the opinion in paragraph 1 regarding the existence and good standing of the Company under the laws of the State of Delaware and the
foreign qualification and good standing of the Company under the laws of the States of Florida, Georgia, New Jersey and California, we are relying solely on our review and examination of certificates received from the Secretaries of State of the
States of Delaware, Florida, Georgia, New Jersey and California, without further investigation of the records of the Company or otherwise. With respect to our opinion in paragraph 3 regarding the capitalization of the Company (including, but not
limited to, securities exercisable or exchangeable for, or convertible into, capital stock of the Company), such opinion is based solely on our review of a certificate of the Company, the Restated Certificate, the Company’s Bylaws, the
Company’s stock records and actions by written consent or minutes of meetings of the Company’s Board of Directors and stockholders contained in the Company’s minute books. The Company has represented to us, and we have assumed, that
these records are true, correct and complete and constitute all documents with respect to the issuance 

  

 Austin    Beijing    Dallas    Houston    London    Los Angeles    New York    The
Woodlands    Washington, DC 

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 2

  

 
of shares of the Common Stock and Preferred Stock. We have also relied on the Company’s representations to us as to the nature of the consideration
received for such shares. The factual information provided in paragraph 3 regarding options, warrants, rights, calls, agreements or commitments to which the Company is a party or by which it is bound, providing for the issuance or redemption of
Common Stock or Preferred Stock, is based solely on our review of a certificate of the Company, the Company’s stock records, and actions by written consent or minutes of meetings of the Company’s Board of Directors and stockholders
contained in the Company’s minute books. Additionally, we express no opinion as to the capitalization of the Company, or any rights or agreements to acquire the capital stock of the Company, except as expressly set forth in paragraph 3 below.

 Please be advised that we express no opinion as to the effect of or compliance by any person or entity other than the Company with any
state or federal laws or regulations. Without limiting the foregoing, we have assumed your compliance with all federal and state laws, including those relating to your legal or regulatory status or nature of your business, relating to federal and
state taxes, and, to the extent relevant, the Small Business Investment Act of 1958, as amended, and the regulations promulgated thereunder (the “SBIA Laws”). Moreover, in rendering this opinion letter we have also assumed: (A) that
the representations to be made by you in Section 10 of the Warrant are true, correct and complete; (B) upon exercising the Warrant, each of the representations and warranties set forth on Attachment 2 to the Warrant will be true, correct
and complete; and (C) that any wire transfers, drafts or checks tendered by you or other payments by you of consideration for the shares of Series C Preferred Stock will be honored or otherwise effected at the time of exercise of the Warrant.

 As used herein, the term “Warrant” does not refer to any other agreements or instruments (or forms of agreements or instruments)
that may be incorporated therein or otherwise attached thereto. As used in this opinion letter, the expression “we are not aware” or the phrase “to our knowledge,” or any similar expression or phrase with respect to our knowledge
of matters of fact, means as to matters of fact that, based on the actual knowledge of individual attorneys within the firm principally responsible for handling current matters for the Company (and not including any constructive or imputed notice of
any information), and after an examination of documents referred to herein and after inquiries of certain officers of the Company, no facts have been disclosed to us that have caused us to conclude that the opinions expressed are factually
incorrect; but beyond that we have made no factual investigation for the purposes of rendering this opinion letter. Specifically, but without limitation, we have not searched the dockets of any courts and we have made no inquiries of securities
holders or employees of the Company, other than such officers. No inference as to our knowledge of the existence or absence of any fact should be drawn from our representation of the Company or the rendering of the opinions set forth below.

 This opinion letter relates solely to the “Applicable Laws” of the State of Texas, the General Corporation Law of the State of
Delaware (the “DGCL”), and the federal law of the United States, as provided herein, and we express no opinion with respect to the effect or application of any other laws. Special rulings of authorities administering such laws or opinions
of other counsel have not been sought or obtained. As used herein, “Applicable Laws” of a specified jurisdiction means those laws, rules and regulations that are normally applicable to 

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 3

  

 
transactions of the type contemplated by the Warrant; provided that the term “Applicable Laws” does not include: (a) any municipal or other
local law, rule or regulation, (b) any law, rule or regulation relating to (i) pollution or protection of the environment, (ii) zoning, land use, building or construction codes or guidelines, or (iii) labor, employee or
occupational safety and health, or (iv) licenses, permits and approvals necessary for the conduct of the Company’s business; (b) antifraud laws, rules and regulations; (c) tax laws, rules or regulations; (d) usury laws and
regulations; (e) antitrust laws, rules and regulations; (f) trademark, copyright, patent or other intellectual property laws; and (g) applicable federal or state antifraud or antitrust statutes, laws, rules and regulations or
Section 721 (as amended by Section 5021 of the Omnibus Trade and Competitiveness Act of 1988: the so-called “Exon-Florio” provision) of the Defense Production Act of 1950 and the regulations thereunder, and (g) the SBIA
laws. Further, we express no opinion as to the effect of or compliance with any state or federal laws or regulations applicable to the transactions contemplated by the Warrant because of the nature of the business of any party thereto other than the
Company. 
 Furthermore, we direct your attention to the fact that the Warrant states that it is governed by the laws of the State of
Delaware. We have made no investigation of Delaware law (other than with respect to the DGCL) nor consulted with counsel admitted to practice law in the State of Delaware. We have not examined the question of what law would govern the interpretation
or enforcement of the Warrant, and our opinion with regard to the validity, binding nature and enforceability of the Warrant is premised without regard to reasonableness of such premise, based upon the result that would be obtained if a Texas court
were to apply the internal laws of the State of Texas (excluding conflicts of law principles) to the interpretation and enforcement of the Warrant. We express no opinion as to any differences between the laws of the State of Delaware and those of
the State of Texas, or as to the effect (if any) of any such difference upon the Warrant or such conclusions. 
 Based upon our examination
of and reliance upon the foregoing and subject to the limitations, exceptions, qualifications and assumptions set forth below, we are of the opinion that as of the date hereof: 
 1. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, and the Company has the
requisite corporate power and authority to own its properties and to conduct its business as, to our knowledge, it is presently conducted. The Company is qualified to do business as a foreign corporation in the States of Florida, Georgia, New Jersey
and California. 
 2. The Company has the requisite corporate power and authority to execute, deliver and perform the Warrant. The Warrant
has been duly and validly authorized by the Company and duly executed and delivered by the Company, and constitutes a legal, valid and binding obligation of the Company, enforceable by you against the Company in accordance with its terms.

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 4

  

 3. The capitalization of the Company is as follows: 
 (a) Preferred Stock. The Company has 19,913,453 authorized shares of Preferred Stock, par value $0.001 per share (the “Preferred
Stock”), of which: (i) 10,402,000 shares have been designated Series A Convertible Preferred Stock, of which 10,401,146 are issued and outstanding, (ii) 36,076 shares have been designated Series A-2 Convertible Preferred Stock, all of
which are issued and outstanding, (iii) 7,875,377 shares have been designated Series B Convertible Preferred Stock, 5,640,878 of which are issued and outstanding, and (iv) 1,600,000 shares have been designated Series C Convertible
Preferred Stock, none of which are issued and outstanding immediately prior to the Closing. The shares of Series C Preferred Stock to be purchased upon exercise or conversion of the Warrant have been duly authorized and, upon payment of the Warrant
Price or conversion pursuant to Section 8 of the Warrant, will be validly issued, nonassessable and fully paid. The rights, privileges, restrictions and preferences of the Series C Preferred Stock are as stated in the Fourth Amended and
Restated Certificate of Incorporation (the “Restated Certificate”) as filed with the Secretary of State of Delaware. 
 (b)
Common Stock. The Company has 31,818,965 authorized shares of Common Stock, par value $0.001 per share (the “Common Stock”), of which, to our knowledge, 6,154,373 shares are currently issued and outstanding. Such 6,154,373 shares of
outstanding Common Stock have been duly authorized and validly issued, and, to our knowledge, are nonassessable and fully paid. 
 (c) The
Common Stock issuable upon conversion of the Series C Preferred Stock to be purchased by you upon exercise or conversion of the Warrant pursuant to its terms has been duly and validly reserved for issuance and, when and if issued upon such
conversion in accordance with the Restated Certificate, will be validly issued, fully paid and nonassessable. 
 (d) There are no preemptive
rights under the DGCL nor, to our knowledge, are there any options, warrants, conversion privileges or other rights (or agreements for any such rights) outstanding to purchase or otherwise obtain from the Company any of the Company’s equity
securities, except for (i) the conversion privileges of the Series A Preferred Stock, Series A-2 Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, (ii) options to purchase up to 4,229,371 shares of Common Stock that
have been issued pursuant to the 2000 Stock Option Plan, and (iii) the rights of first offer provided in Article V of the Investors’ Rights Agreement. 1 To our knowledge, except for the Warrant, the Company is not a party or subject to any agreement or understanding and there is no agreement or understanding between any persons and/or entities that
affects or relates to the voting or giving of written consent with respect to any security or by a director of the Company. 
  

  

	1	The Company has informed us that an option holder delivered a written notice of exercise of options to purchase 227,762 shares of the Company’s Common Stock
under the Company’s 2000 Stock Option Plan and indicated that he has mailed a check for the aggregate exercise price. The Company has not yet received the check and accordingly has not yet issued the certificate for such shares.

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 5

  

 4. Other than in connection with any securities laws (with respect to which we direct you solely to
paragraph 6 below), the Company’s execution and delivery of, and its performance and compliance as of the date hereof with the terms of, the Warrant do not violate any Applicable Laws or any provision of the Restated Certificate or the
Company’s Bylaws and do not conflict with or constitute a default under the provisions of any judgment, writ, decree or order of which we are aware or the material provisions of any of the agreements specifically identified on Schedule A
hereto. 
 5. Other than in connection with any securities laws (with respect to which we direct you solely to paragraph 6 below), all
consents, approvals, permits, orders or authorizations of, and all qualifications by and registrations with, any federal or state governmental authority on the part of the Company required in connection with the execution and delivery of the Warrant
and the consummation of the Closing have been obtained, and are effective, and we are not aware of any proceedings, or written threat of any proceedings, that question the validity thereof. 
 6. The offer, issuance and sale of the Warrant to you is exempt from the registration requirement of Section 5 of the Securities Act of 1933,
as amended, and as such act currently exists, the issuance of the Series C Preferred Stock to you upon exercise or conversion of the Warrant would also be exempt from such registration. In addition, the issuance of Common Stock to you upon
conversion of the Series C Preferred Stock to be sold to you would also be exempt from such registration requirements. 
 Separately, we
advise you that we are not aware of any suit, action, proceeding or governmental investigation pending, or overtly threatened in writing, against the Company or its properties that questions the legality, validity or enforceability of the Warrant or
the right of the Company to issue the Warrant. 
 Our opinions expressed above are specifically subject to the following limitations,
exceptions, qualifications and assumptions: 
 (A) The legality, validity, binding nature and enforceability of the Company’s
obligations under the Warrant may be subject to, affected by or limited by (1) bankruptcy, insolvency, reorganization, arrangement, moratorium, fraudulent transfer and other similar laws affecting the rights of creditors generally;
(2) principles of equity (whether relief is sought in a proceeding at law or in equity and whether such principles are incorporated in laws or judicial decisions), including, without limitation, concepts of materiality, unconscionability,
public policy, reasonableness, good faith and fair dealing, and the discretion of any court of competent jurisdiction in awarding specific performance or injunctive relief and other equitable remedies; and (3) without limiting the generality of
the foregoing, (a) principles requiring the consideration of the impracticability or impossibility of performance of the Company’s obligations at the time of the attempted enforcement of such obligations, (b) the effect of state court
decisions and statutes which indicate that provisions of the Warrant which permit you to take action or make determinations may be subject to a requirement that such action be taken or such determinations be made on a reasonable basis in good faith
or that it be shown that such action is reasonably necessary for your protection, and (c) principles imposing obligations of good faith or 

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 6

  

 
reasonableness in the performance of or enforcement of contractual rights or the exercise of determinations or discretion (or prohibiting disclaimer of such
obligation). 
 (B) We express no opinion concerning the past, present or future fair market value of any securities. 
 (C) We express no opinion as to the enforceability of any provisions indemnifying a party against, or requiring contributions toward, that party’s
liability for its own wrongful or negligent acts, or where indemnification or contribution is contrary to public policy or prohibited by law. In this regard, but without limiting the foregoing, we advise you that in the opinion of the Securities and
Exchange Commission, provisions regarding indemnification of directors, officers and controlling persons of an issuer against liabilities arising under the Securities Act of 1933, as amended, are against public policy and are therefore
unenforceable. 
 (D) We express no opinion as to the enforceability of any provisions of the Warrant prohibiting waivers of any terms of the
Warrant other than in writing, or prohibiting oral modifications thereof or modification by course of dealing. In addition, our opinions are subject to the effect of judicial decisions that may permit the introduction of extrinsic evidence to
interpret the terms of written contracts such as the Warrant. 
 (E) We express no opinion as to the effect of any state law, federal law or
equitable principle which provides that a court may refuse to enforce, or may limit the application of, a contract or any clause thereof which the court finds to have been unconscionable at the time it was made or contrary to public policy.

 (F) In connection with our opinion in paragraph 4 relating to any agreements that may be listed on the Schedule A hereto, we have
not reviewed, and express no opinion on, (i) provisions requiring determinations to ascertain whether there is any such conflict or (ii) provisions relating to the occurrence of a “material adverse effect” or words of similar
import. In addition, our opinion relating to any agreements which may be listed on Schedule A hereto is subject to our assumption that we have been provided with complete versions (including all amendments and modifications) of such
agreements and to the effect of judicial decisions which may permit the introduction of extrinsic evidence to interpret the terms of written contracts or allow non-written modifications of written contracts. Moreover, to the extent that any of the
agreements which may be listed on Schedule A hereto are governed by the laws of any jurisdiction other than the State of Texas our opinion relating to those agreements is based solely upon the plain meaning of their language without regard to
interpretation or construction that might be indicated by the laws governing those agreements. 
 (G) We express no opinion as to the effect
of subsequent issuances of securities of the Company, to the extent that further issuances which may be integrated with the Closing may include purchasers that do not meet the definition of “accredited investor” under Rule 501 of
Regulation D and equivalent definitions under state securities or “blue sky” laws and to the extent that notwithstanding its reservation of shares the Company may issue so many shares of Common Stock that there are not enough
remaining authorized but unissued shares of Common Stock for the conversion of the Series C Preferred Stock (or may issue securities which by 

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 7

  

 
antidilution adjustment so reduce the Series C Conversion Price (as such term is defined in the Restated Certificate), of the Series C Preferred Stock and/or
other Company derivative securities that the outstanding shares of the Series C Preferred Stock become convertible for more shares of Common Stock than remain authorized but unissued). 
 (H) We assume that the Warrant is fair (within the meaning of Section 144 of the DGCL) as to the Company and its stockholders as of the time the
Company’s Board of Directors approved them. We have assumed that the Company’s Board of Directors fulfilled its fiduciary duties in connection with its approval of the Warrant and the transactions contemplated thereby, and that the
directors’ conduct in connection therewith shall be governed by the “business judgment rule” (as interpreted by the courts of the State of Delaware in published opinions prior to the date hereof) and not by any enhanced standard of
judicial review or scrutiny. 
 (I) We express no opinion as to: 
 (1) The enforceability under certain circumstances of provisions expressly or by implication waiving broadly or vaguely stated rights,
unknown future rights, or defenses to obligations or rights granted by law, when such waivers are against public policy or prohibited by law; 
 (2) The enforceability under certain circumstances of provisions to the effect that rights or remedies may be exercised without notice, that failure to exercise or delay in exercising rights or remedies will not
operate as a waiver of any such right or remedy, that rights or remedies are not exclusive, that every right or remedy is cumulative and may be exercised in addition to or with any other right or remedy, that election of a particular remedy or
remedies does not preclude recourse to one or more remedies, that rights or remedies may be exercised without notice, or that failure to exercise or delay in exercising rights or remedies will not operate as a waiver of any such right or remedy;

 (3) Any provision providing for the exclusive jurisdiction of a particular court or purporting to waive rights to trial by
jury, service of process or objections to the laying of venue or to forum on the basis of forum non conveniens, in connection with any litigation arising out of or pertaining to the Warrant; 
 (4) The effect on the liquidation provisions of the Restated Certificate of applicable state law, federal law or equitable principles
restricting in certain circumstances distributions by a corporation to its stockholders, relating to dissenters’ rights or relating to involuntary dissolution; 
 (5) Section 11 of the Warrant to the extent that it purports to exclude conflicts of laws principles under Delaware law; 

(6) Section 4.8 of the Investors’ Rights Agreement; 
 (7) Section 1.6 of the Co-Sale and First Refusal Agreement; 

			
	Air Products and Chemicals, Inc.	 	 February 14, 2006
 Page 8

  

 (8) The effect of any state law, federal law or equitable principles which limit the
amount of attorneys’ fees that can be recovered under certain circumstances; or 
 (9) With respect to any shares of the
capital stock of the Company that have been or are being purchased for other than cash or cancellation or payment of indebtedness, the value, validity or adequacy of the consideration paid or delivered by you for the Warrant or the Series C
Preferred Stock upon exercise of the Warrant. 
 This opinion letter is rendered as of the date first written above solely for your benefit
in connection with the issuance of the Warrant and may not be delivered to, quoted or relied upon by any person other than you, or for any other purpose, without our prior written consent. Our opinion is expressly limited to the matters set forth
above and we render no opinion, whether by implication or otherwise, as to any other matters relating to the Company. We assume no obligation to advise you of facts, circumstances, events or developments which hereafter may be brought to our
attention and which may alter, affect or modify the opinions expressed herein, including, without limitation, with respect to any matters that may occur, or of which we may become aware. 
 Very truly yours, 
 /s/ Andrews Kurth LLP 
 ANDREWS KURTH LLP 

 SCHEDULE A To Legal Opinion 
 To Air Products and Chemicals, Inc. 
 Dated February 14, 2006

  

	1.	Series C Preferred Stock Purchase Agreement dated February 14, 2006 by and among the Company and certain Investors (as defined therein). 

  

	2.	Third Amended and Restated Investors’ Rights Agreement dated February 14, 2006 by and among the Company and certain of its stockholders. 

  

	3.	Third Amended and Restated Co-Sale and First Refusal Agreement dated February 14, 2006 by and among the Company and certain of its stockholders. 

  

	4.	Fourth Amended and Restated Voting Agreement dated February 14, 2006 by and among the Company and certain of its stockholders.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]