Document:

exv4w01

 

Exhibit 4.1

LASALLE BANK NATIONAL ASSOCIATION,

TRANSFER AGENT

AND REGISTRAR

(Chicago, Illinois)

THE TERMS AND CONDITIONS OF THE RIGHTS OFFERING ARE SET FORTH IN THE COMPANY’S PROSPECTUS,
DATED ___, 2006 (THE “PROSPECTUS”), AND ARE INCORPORATED HEREIN BY REFERENCE. COPIES OF THE
PROSPECTUS ARE AVAILABLE UPON REQUEST FROM LASALLE BANK NATIONAL ASSOCIATION AS SUBSCRIPTION AGENT.

LIME ENERGY CO.

(formerly known as Electric City Corp.)

Incorporated under the laws of the State of Delaware

SUBSCRIPTION CERTIFICATE

Evidencing Non-Transferable Rights to Purchase Shares of Common Stock

Subscription Price: $1.00 per Share

VOID IF NOT EXERCISED ON OR BEFORE THE EXPIRATION DATE (AS DEFINED IN THE PROSPECTUS)

REGISTERED OWNER: [Name, Address & Number of Rights]

SPECIMEN

	 	 	 
	THIS CERTIFIES THAT the
registered owner whose
name is inscribed hereon
is the owner of the
number of Rights set
forth above, each of
which entitles the owner
to subscribe for and
purchase one share of
common stock, $.0001 par
value per share, of Lime
Energy Co., a Delaware
corporation, on the
terms and subject to the
conditions set forth in
the Prospectus and
instructions relating
hereto on the reverse
side hereof and in the
instructions as to the
use of this certificate
included in this
mailing. The
non-transferable Rights
(as defined in the
Prospectus) represented
by this Subscription
Certificate may be
exercised by duly
completing Section 1 on
the reverse side hereof and by returning the full payment of the
subscription price for each share of common
stock as described on the reverse side hereof.
Special delivery instructions may be specified
by completing Section 2 on the reverse side
hereof. THE RIGHTS EVIDENCED BY THIS
SUBSCRIPTION CERTIFICATE ARE NOT TRANSFERABLE
AND MAY NOT BE EXERCISED UNLESS THE REVERSE
SIDE HEREOF IS COMPLETED AND SIGNED WITH A
SIGNATURE GUARANTEE, IF APPLICABLE.

	 
	 	 
	Dated:
	 	 
	 
	 	 
	 

	 	 
	Chief Executive Officer

	 	Chief Financial Officer, Treasurer & Secretary

 

 

DELIVERY OPTIONS FOR SUBSCRIPTION CERTIFICATE

	 	 	 
	By Mail or by Overnight Courier:
	 	By Hand:
	 	 	 
	LaSalle Bank National Association
	 	LaSalle Bank National Association
	135 S. LaSalle Street, Suite 1811
	 	135 S. LaSalle Street, Suite 1811
	Chicago, Illinois 60603
	 	Chicago, Illinois 60603
	Telephone: (800) 246-5761, Menu Option 2
	 	Telephone: (312) 904-5091
	Facsimile: (312) 904-2079
	 	Facsimile: (312) 904-2079
	Attention: Corporate Trust
	 	Attention: Joseph Pellicore

Delivery to an address other than the address listed above will not constitute valid delivery. Delivery by facsimile will not constitute valid delivery.

PLEASE PRINT ALL INFORMATION CLEARLY AND LEGIBLY.

	 	 	 
	SECTION
1 
	 	SECTION 2 

	IF YOU WISH TO SUBSCRIBE FOR YOUR FULL BASIC SUBSCRIPTION PRIVILEGE OR A PORTION THEREOF:

	 	SPECIAL ISSUANCE OR DELIVERY INSTRUCTIONS FOR SUBSCRIPTION RIGHTS HOLDERS:
	 
	 	 
	BASIC SUBSCRIPTION PRIVILEGE:

I apply for                     shares at $1.00 each = $                                             

          (no. of new shares)      (subscription price)      (amount enclosed)

	 	(a) To be completed ONLY if the certificate
representing the Common Stock is to be issued in a
name other than that of the registered holder.
(See the Instructions.) DO NOT FORGET TO COMPLETE
THE GUARANTEE OF SIGNATURE(S) SECTION BELOW.
	 
	 	 
	OVER-SUBSCRIPTION PRIVILEGE:

	 	ISSUE COMMON STOCK TO:
	 
	 	 
	IF YOU HAVE SUBSCRIBED FOR YOUR BASIC SUBSCRIPTION PRIVILEGE AND 

WISH TO PURCHASE ADDITIONAL SHARES PURSUANT TO THE 

OVER-SUBSCRIPTION PRIVILEGE:

	 	 

(Please Print Name)
	 
	 	 
	I apply for    
         
             
    
  shares at $1.00 each = $   
                 
	 	 
	          (no. of new shares)      (subscription price)      (amount enclosed)
	 	 
	 
	 	 
	 

	 	 
	Total Amount of Check Enclosed = $                    

	 	(Print Full Address)
	 
	 	 
	Checks or bank drafts drawn on a U.S. bank, or postal telegraphic
or express money orders should be made payable to LaSalle Bank
National Association, as Subscription Agent.

	 	 
 (Social
Security # or Tax ID #)
	 
	 	 
	TO SUBSCRIBE: I acknowledge that I have received the Prospectus
for this offer and I hereby irrevocably subscribe for the number
of shares indicated above on the terms and conditions specified in
the Prospectus. I hereby agree that if I fail to pay for the
shares of Common Stock for which I have subscribed, Lime Energy
Co. may exercise its legal remedies against me.

	 	(b) To be completed ONLY if the certificate
representing the Common Stock is to be sent to an
address other than that shown on the front of this
certificate. (See the Instructions.) DO NOT FORGET
TO COMPLETE THE GUARANTEE OF SIGNATURE(S) SECTION
BELOW.
	 
	 	 
	 

	 	 
	 

	 	(Please Print Name)
	 
	 	 
	 

Signature(s) of Subscriber(s)

	 	 
	 
	 	 
	IMPORTANT: THE SIGNATURE(S) MUST CORRESPOND IN EVERY PARTICULAR,
WITHOUT ALTERATION, WITH THE NAME(S) AS PRINTED ON THE REVERSE OF
THIS SUBSCRIPTION CERTIFICATE.

	 	 
 (Print
Full Address)
	 
	 	 
	If signature is by trustee(s), executor(s), administrator(s),
guardian(s), attorney(s)-in-fact, agent(s), officer(s) of a
corporation or another acting in a fiduciary or representative
capacity, please provide the following information (please print).
See the instructions.

	 	 
 (Social
Security # or Tax ID #
 
	 	GUARANTEE OF SIGNATURE(S)
	 
	 	 
	Name(s):
 

	 	YOU MUST HAVE YOUR SIGNATURE GUARANTEED IF YOU
WISH TO HAVE YOUR SHARES DELIVERED TO AN ADDRESS
OTHER THAN YOUR OWN OR TO A SHAREHOLDER OTHER THAN
THE REGISTERED HOLDER.
	 
	 	 
	Capacity (Full Title):
	 	 
	 

	 	Your signature must be guaranteed by an Eligible
Guarantor Institution, as defined in Rule 17Ad-15
of the Securities Exchange Act of 1934, as
amended. These generally include (a) a commercial
bank or trust company, (b) a member firm of a
domestic stock exchange, or (c) a credit union.
	Taxpayer ID # or
	 	 
	Social
Security #: 

	 	 
	 
	 	 
	 

	 	Signature:
	 

	 	 

	 

	 	(Signature of Officer)
	 
	 	 
	 

	 	By:
	 

	 	 

	 

	 	(Name of Bank or Firm)

FULL PAYMENT FOR THE SHARES MUST ACCOMPANY THIS FORM AND MUST BE MADE IN UNITED STATES DOLLARS BY CHECK OR BANK DRAFT DRAWN UPON A UNITED STATES BANK OR POSTAL, TELEGRAPHIC OR EXPRESS MONEY ORDER PAYABLE TO “ LASALLE BANK NATIONAL ASSOCIATION, AS SUBSCRIPTION AGENT.”

STOCK CERTIFICATES FOR THE SHARES SUBSCRIBED TO PURSUANT TO THE RIGHTS OFFERING WILL BE DELIVERED AS SOON AS PRACTICABLE AFTER THE EXPIRATION DATE. ANY REFUND IN CONNECTION WITH YOUR SUBSCRIPTION WILL BE DELIVERED AS SOON AS PRACTICABLE THEREAFTER.

FOR INSTRUCTIONS ON THE USE OF LIME ENERGY CO. SUBSCRIPTION CERTIFICATES, CONSULT JOSEPH PELLICORE OF LASALLE BANK NATIONAL ASSOCIATION, (312) 904– 5091, OR YOUR BANK OR BROKER WITH QUESTIONS.exv10w8

 

Exhibit 10.8

Summary of Executive Bonus Arrangements

(For Fiscal 2007)

I. Bonus Structure

	 	•	 	For the current year bonus, an executive’s on-target bonus objective is approved
each year by the compensation committee. Achievement of the bonus is based on four,
equally-weighted performance goals: 25% revenue (growth only), 25% Profit (Operating
Income), 25% Cash (cash flow from operating and investment activities before changes in
working capital), 25% MBO (individual performance objectives); provided, however, that
if the revenue objective is not achieved at the 80% threshold level, the other three
objectives will be paid to a maximum of 50% of the target amounts.

	 	o	 	Financial Bonus Component split by quarter: 20% for each of the first
three fiscal quarters and 40% for the fourth quarter, in each case on a
year-to-date basis.
	 
	 	o	 	2-break Financial Bonus formula:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	% of Bonus	 	 	 	 	 	 	 	 	 	 
	 	 	up to 1st	 	 	 	% of Bonus up to	 	2nd Break	 	% of Bonus up to	 	% of Bonus at and
	 	 	Break	 	1st Break Point	 	2nd Break	 	Point	 	100% of Plan	 	after 100%
	Revenue

	 	 	0	%	 	80% of Plan
	 	15% + 2.5% for each
1% over 80%
	 	90% of Plan
	 	60%+ 2.5% for each
1% over 90%
	 	100% for each 1%
over 100%
	Profit

	 	 	0	%	 	95% of Plan
	 	15% + 10.0% for
each 1% over 95%
	 	97.5% of Plan
	 	60% + 10.0% for
each 1% over 97.5%
	 	100% + 1.0% for
each 1% over 100%
	Cash

	 	 	0	%	 	90% of Plan
	 	15% + 5.0% for each
1% over 90%
	 	95% of Plan
	 	60% + 5.0% for each
1% over 95%
	 	100% + 1.0% for
each 1% over 100%

	 	o	 	MBOs are annual, tied to the Company’s operating and strategic plans
and consist of 2-6 objectives per executive, negotiated and agreed between the
Chief Executive Officer and executive based on the approved budget and business
plan. The Chief Executive Officer’s MBOs are the sum of the individual executives’
MBOs.

	 
	 	•	 	Long-Term Bonus Pool for the three subsequent fiscal years (1/3 each) = current year
bonus as actually earned up to bonus pool of 40% of the on-target current year bonus.
Additional bonus pool dollars are added at the rate of $1 per $2 of overachievement of
the Operating Income target up to maximum of 100% of the actual current year bonus.

	 	o	 	Long-Term Bonus payouts for each of the three years are tied to the
5-year revenue plan (including acquisitions).

	 	o	 	Long-Term Bonus award formula: <75% of target or current year plan,
whichever is greater, gets 75% of plan (floor); 75-100% gets 75% + 1% for each 1%
over 75%; 100-125 % gets 100% + 1% for each 1% over 100%; 125-150% gets 150% + 2%
for each 1% over 125%; >150% gets 200% (cap).
	 
	 	o	 	Payout in three annual installments following each of the three
performance periods. One-half of the floor amount is paid in common stock, valued
at the time of payment, and the remainder is paid in cash.

	 	•	 	Long-term bonus pool payouts from fiscal 2004, 2005 and 2006 are in their payout
phase. Their respective performance criteria are earnings per share, revenue and
revenue. One-half of the floor amount of the 2006 bonus pool payout is paid in common
stock, valued at the time of payment, and the remainder is paid in cash. The 2004 and
2005 awards are payable entirely in cash.

 

 

II. Miscellaneous Provisions

	 	•	 	If an executive’s employment is terminated for any reason, the executive forfeits
all rights to any current year bonus for the fiscal quarter in which the termination
occurs and subsequent fiscal quarters and forfeits all rights to any long-term bonus
not yet paid.
	 
	 	•	 	These compensation arrangements do not give any executive any right to be retained
in the employment of the Company and do not affect the right of the Company to
terminate, with or without cause, any executive’s employment at any time.
	 
	 	•	 	The Company has the right to withhold from any compensation payable to an executive,
or to cause the executive (or the executor or administrator of his or her estate or his
or her distributee) to make payment of, any federal state, local, or foreign taxes
required to be withheld with respect to any payment.
	 
	 	•	 	The Company may amend, alter, suspend or discontinue the compensation arrangements,
as it shall from time to time consider desirable.
	 
	 	•	 	In limited circumstances, the Chief Executive Officer, in consultation with the
compensation committee, may approve limited exceptions to the terms of the bonus plans.

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