Document:

Exhibit 10.25

 

FORM OF

 

EXECUTIVE
INCENTIVE STOCK OPTION AGREEMENT

 

ENERNOC,
INC.

 

 

AGREEMENT made as of the
       day of
              
200  , between EnerNOC, Inc. (the “Company”), a Delaware
corporation and
                        ,
an employee of the Company (the “Employee”).

 

WHEREAS, the Company
desires to grant to the Employee an Option to purchase shares of its common
stock, $.001 par value per share (the “Shares”), under and for the purposes set
forth in the Company’s 2007 Employee, Director and Consultant Stock Plan (the “Plan”);

 

WHEREAS, the Company and
the Employee understand and agree that any terms used and not defined herein
have the same meanings as in the Plan; and

 

WHEREAS, the Company and
the Employee each intend that the Option granted herein qualify as an ISO.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good
and valuable consideration, the parties hereto agree as follows:

 

1.             GRANT OF OPTION.

 

The Company hereby grants to the Employee the right and option to
purchase all or any part of an aggregate of
                                
Shares, on the terms and conditions and subject to all the limitations set
forth herein, under United States securities and tax laws, and in the Plan,
which is incorporated herein by reference. 
The Employee acknowledges receipt of a copy of the Plan.

 

2.             PURCHASE PRICE.

 

The purchase price of the
Shares covered by the Option shall be
$         per Share, subject to
adjustment, as provided in the Plan, in the event of a stock split, reverse
stock split or other events affecting the holders of Shares after the date
hereof (the “Purchase Price”).  Payment
shall be made in accordance with Paragraph 9 of the Plan.

 

3.             EXERCISABILITY OF OPTION.

 

Subject to the terms and
conditions set forth in this Agreement and the Plan, the Option granted hereby
shall become exercisable as follows:

 

	
  On
  the first anniversary of

  the date of this Agreement:

  	
   

  	
  25% of the Shares

  

 

 

 

 

	
  On
  the first day of each

  calendar month following

  the first anniversary of the

  date of this Agreement for

  thirty-six months:

  	
   

  	
  An additional 2.0833%
  of the Shares rounded down to the nearest whole share

  

 

The foregoing rights are
cumulative and are subject to the other terms and conditions of this Agreement and
the Plan.

 

Notwithstanding the
foregoing, in the event of a Change of Control (as defined below),
    % of the Shares which would have vested in each vesting
installment remaining under this Option will be vested for purposes of Section 24(B) of
the Plan unless this Option has otherwise expired or been terminated pursuant
to its terms or the terms of the Plan.

 

                                Change of Control
means the occurrence of any of the following events:

 

(i)            Ownership.  Any “Person” (as such term is used in
Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended) becomes the “Beneficial Owner” (as defined in Rule 13d-3 under
said Act), directly or indirectly, of securities of the Company representing
50% or more of the total voting power represented by the Company’s then
outstanding voting securities (excluding for this purpose the Company or its
Affiliates or any employee benefit plan of the Company) pursuant to a
transaction or a series of related transactions which the Board of Directors
does not approve; or

 

(ii)           Merger/Sale of Assets.  A merger or consolidation of the Company
whether or not approved by the Board of Directors, other than a merger or
consolidation which would result in the voting securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving
entity or the parent of such corporation) at least 50% of the total voting
power represented by the voting securities of the Company or such surviving
entity or parent of such corporation outstanding immediately after such
merger or consolidation, or the stockholders of the Company approve an
agreement for the sale or disposition by the Company of all or substantially
all of the Company’s assets; or

 

(iii)          Change in Board Composition.  A change in the composition of the Board of
Directors, as a result of which fewer than a majority of the directors are
Incumbent Directors.  “Incumbent
Directors” shall mean directors who either (A) are directors of
the Company as of [insert
grant date], or (B) are elected, or nominated for election, to the
Board of Directors with the affirmative votes of at least a majority of
the Incumbent Directors at the time of such election or nomination (but shall not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the
Company).

 

4.             TERM OF OPTION.

 

This Option shall
terminate six years from the date of this Agreement or, if the Employee owns as
of the date hereof more than 10% of the total combined voting power of all
classes of 

 

 

2

 

capital stock of the
Company or an Affiliate, five years from the date of this Agreement, but shall
be subject to earlier termination as provided herein or in the Plan.

 

If the Employee ceases to
be an employee of the Company or of an Affiliate (for any reason other than the
death or Disability of the Employee or termination of the Employee’s employment
for “cause”), the Option may be exercised, if it has not previously terminated,
within three months after the date the Employee ceases to be an employee of the
Company or an Affiliate, or within the originally prescribed term of the Option,
whichever is earlier, but may not be exercised thereafter except as set forth
below.  In such event, the Option shall
be exercisable only to the extent that the Option has become exercisable and is
in effect at the date of such cessation of employment.

 

If
the Employee ceases to be an employee of the Company or of an Affiliate but
continues after termination of employment to provide service to the Company or
an Affiliate as a consultant, this Option shall continue to vest in accordance
with Section 3 above as if this Option had not terminated until the
Employee is no longer providing services to the Company.  In such case, this Option shall automatically
convert and be deemed a Non-Qualified Option as of the date that is three
months from termination of the Employee’s employment and this Option shall
continue on the same terms and conditions set forth herein until such Employee
is no longer providing service to the Company or an Affiliate.

 

Notwithstanding the
foregoing, in the event of the Employee’s Disability or death within three
months after the termination of employment, the Employee or the Employee’s
Survivors may exercise the Option within one year after the date of the
Employee’s termination of employment, but in no event after the date of expiration
of the term of the Option.

 

In the event the Employee’s
employment is terminated by the Employee’s employer for “cause”, the Employee’s
right to exercise any unexercised portion of this Option shall cease
immediately as of the time the Employee is notified his or her employment is
terminated for “cause,” and this Option shall thereupon terminate.  Notwithstanding anything herein to the
contrary, if subsequent to the Employee’s termination as an employee, but prior
to the exercise of the Option, the Board of Directors of the Company determines
that, either prior or subsequent to the Employee’s termination, the Employee
engaged in conduct which would constitute “cause,” then the Employee shall
immediately cease to have any right to exercise the Option and this Option
shall thereupon terminate.

 

In the event of the
Disability of the Employee, as determined in accordance with the Plan, the
Option shall be exercisable within one year after the Employee’s termination of
employment or, if earlier, within the term originally prescribed by the
Option.  In such event, the Option shall
be exercisable:

 

(a)                                  to the extent that the Option has become
exercisable but has not been exercised as of the date of Disability; and

 

(b)                                 in the event rights to exercise the
Option accrue periodically, to the extent of a pro rata portion through the
date of Disability of any additional vesting rights that 

 

 

3

 

would have accrued on the
next vesting date had the Employee not become Disabled.  The proration shall be based upon the number
of days accrued in the current vesting period prior to the date of Disability.

 

In the event of the death
of the Employee while an employee of the Company or of an Affiliate, the Option
shall be exercisable by the Employee’s Survivors within one year after the date
of death of the Employee or, if earlier, within the originally prescribed term
of the Option.  In such event, the Option
shall be exercisable:

 

(x)                                   to the extent that the Option has become
exercisable but has not been exercised as of the date of death; and

 

(y)                                 in the event rights to exercise the
Option accrue periodically, to the extent of a pro rata portion through the
date of death of any additional vesting rights that would have accrued on the
next vesting date had the Employee not died. 
The proration shall be based upon the number of days accrued in the
current vesting period prior to the Employee’s date of death.

 

5.                                       METHOD OF EXERCISING OPTION.

 

Subject to the terms and
conditions of this Agreement, the Option may be exercised by written notice to
the Company or its designee, in substantially the form of Exhibit A
attached hereto.  Such notice shall state
the number of Shares with respect to which the Option is being exercised and
shall be signed by the person exercising the Option.  Payment of the purchase price for such Shares
shall be made in accordance with Paragraph 9 of the Plan.  The Company shall deliver such Shares as soon
as practicable after the notice shall be received, provided, however, that the
Company may delay issuance of such Shares until completion of any action or
obtaining of any consent, which the Company deems necessary under any
applicable law (including, without limitation, state securities or “blue sky”
laws).  The Shares as to which the Option
shall have been so exercised shall be registered in the Company’s share
register in the name of the person so exercising the Option (or, if the Option
shall be exercised by the Employee and if the Employee shall so request in the
notice exercising the Option, shall be registered in the name of the Employee
and another person jointly, with right of survivorship) and shall be delivered
as provided above to or upon the written order of the person exercising the
Option.  In the event the Option shall be
exercised, pursuant to Section 4 hereof, by any person other than the
Employee, such notice shall be accompanied by appropriate proof of the right of
such person to exercise the Option.  All
Shares that shall be purchased upon the exercise of the Option as provided
herein shall be fully paid and nonassessable.

 

6.                                       PARTIAL EXERCISE.

 

Exercise of this Option
to the extent above stated may be made in part at any time and from time to
time within the above limits, except that no fractional share shall be issued
pursuant to this Option.

 

 

4

 

7.                                       NON-ASSIGNABILITY.

 

The Option shall not be
transferable by the Employee otherwise than by will or by the laws of descent
and distribution.  The Option shall be
exercisable, during the Employee’s lifetime, only by the Employee (or, in the
event of legal incapacity or incompetency, by the Employee’s guardian or
representative) and shall not be assigned, pledged or hypothecated in any way
(whether by operation of law or otherwise) and shall not be subject to
execution, attachment or similar process. 
Any attempted transfer, assignment, pledge, hypothecation or other
disposition of the Option or of any rights granted hereunder contrary to the
provisions of this Section 7, or the levy of any attachment or similar
process upon the Option shall be null and void.

 

8.                                       NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

The Employee shall have
no rights as a stockholder with respect to Shares subject to this Agreement
until registration of the Shares in the Company’s share register in the name of
the Employee.  Except as is expressly
provided in the Plan with respect to certain changes in the capitalization of
the Company, no adjustment shall be made for dividends or similar rights for
which the record date is prior to the date of such registration.

 

9.                                       ADJUSTMENTS.

 

The Plan contains
provisions covering the treatment of Options in a number of contingencies such
as stock splits and mergers.  Provisions
in the Plan for adjustment with respect to stock subject to Options and the
related provisions with respect to successors to the business of the Company
are hereby made applicable hereunder and are incorporated herein by reference;  provided, however, that in the event of a Change of Control
(as defined in Section 3 above)
          % of the Shares
which would have vested in each vesting installment remaining under this Option
will be vested for purposes of Section 24(B) of the Plan.

 

10.           TAXES.

 

The Employee acknowledges
that any income or other taxes due from him or her with respect to this Option
or the Shares issuable pursuant to this Option shall be the Employee’s
responsibility.

 

In the event of a
Disqualifying Disposition (as defined in Section 15 below) or if the
Option is converted into a Non-Qualified Option and such Non-Qualified Option
is exercised, the Company may withhold from the Employee’s remuneration, if
any, the minimum statutory amount of federal, state and local withholding taxes
attributable to such amount that is considered compensation includable in such
person’s gross income.  At the Company’s
discretion, the amount required to be withheld may be withheld in cash from
such remuneration, or in kind from the Shares otherwise deliverable to the
Employee on exercise of the Option.  The
Employee further agrees that, if the Company does not withhold an amount from
the Employee’s 

 

 

5

 

remuneration sufficient
to satisfy the Company’s income tax withholding obligation, the Employee will
reimburse the Company on demand, in cash, for the amount under-withheld.

 

11.           PURCHASE FOR INVESTMENT.

 

Unless the offering and
sale of the Shares to be issued upon the particular exercise of the Option
shall have been effectively registered under the Securities Act of 1933, as now
in force or hereafter amended (the “1933 Act”), the Company shall be under no
obligation to issue the Shares covered by such exercise unless and until the
following conditions have been fulfilled:

 

(a)                                  The person(s) who exercise the Option
shall warrant to the Company, at the time of such exercise, that such person(s)
are acquiring such Shares for their own respective accounts, for investment,
and not with a view to, or for sale in connection with, the distribution of any
such Shares, in which event the person(s) acquiring such Shares shall be bound
by the provisions of the following legend which shall be endorsed upon the
certificate(s) evidencing the Shares issued pursuant to such exercise:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or
otherwise transferred by any person, including a pledgee, unless (1) either
(a) a Registration Statement with respect to such shares shall be
effective under the Securities Act of 1933, as amended, or (b) the Company
shall have received an opinion of counsel satisfactory to it that an exemption
from registration under such Act is then available, and (2) there shall
have been compliance with all applicable state securities laws;” and

 

(b)                                 If the Company so requires, the Company
shall have received an opinion of its counsel that the Shares may be issued
upon such particular exercise in compliance with the 1933 Act without
registration thereunder.  Without
limiting the generality of the foregoing, the Company may delay issuance of the
Shares until completion of any action or obtaining of any consent, which the
Company deems necessary under any applicable law (including without limitation
state securities or “blue sky” laws).

 

12.           RESTRICTIONS ON TRANSFER OF SHARES.

 

12.1         The Employee agrees that in
the event the Company proposes to offer for sale to the public any of its
equity securities and such Employee is requested by the Company and any
underwriter engaged by the Company in connection with such offering to sign an
agreement restricting the sale or other transfer of Shares, then it will
promptly sign such agreement and will not transfer, whether in privately
negotiated transactions or to the public in open market transactions or otherwise,
any Shares or other securities of the Company held by him or her during such
period as is determined by the Company and the underwriters, not to exceed 180
days following the closing of the offering, plus such additional period of time
as may be required to comply with Marketplace Rule 2711 of the National
Association of Securities Dealers, Inc. or 

 

 

6

 

similar
rules thereto (such period, the “Lock-Up Period”).  Such agreement shall be in writing and in
form and substance reasonably satisfactory to the Company and such underwriter
and pursuant to customary and prevailing terms and conditions.  Notwithstanding whether the Employee has
signed such an agreement, the Company may impose stop-transfer instructions
with respect to the Shares or other securities of the Company subject to the
foregoing restrictions until the end of the Lock-Up Period.

 

12.2         The Employee acknowledges and agrees
that neither the Company, its shareholders nor its directors and officers, has
any duty or obligation to disclose to the Employee any material information
regarding the business of the Company or affecting the value of the Shares
before, at the time of, or following a termination of the employment of the
Employee by the Company, including, without limitation, any information
concerning plans for the Company to make a public offering of its securities or
to be acquired by or merged with or into another firm or entity.

 

13.           NO OBLIGATION TO EMPLOY.

 

The Company is not by the
Plan or this Option obligated to continue the Employee as an employee of the
Company or an Affiliate.  The Employee
acknowledges:  (i) that the Plan is
discretionary in nature and may be suspended or terminated by the Company at
any time; (ii) that the grant of the Option is a one-time benefit which
does not create any contractual or other right to receive future grants of
options, or benefits in lieu of options; (iii) that all determinations
with respect to any such future grants, including, but not limited to, the
times when options shall be granted, the number of shares subject to each
option, the option price, and the time or times when each option shall be
exercisable, will be at the sole discretion of the Company; (iv) that the
Employee’s participation in the Plan is voluntary; (v) that the value of
the Option is an extraordinary item of compensation which is outside the scope
of the Employee’s employment contract, if any; and (vi) that the Option is
not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments.

 

14.                                 OPTION IS INTENDED TO BE AN ISO.

 

The parties each intend
that the Option be an ISO so that the Employee (or the Employee’s Survivors)
may qualify for the favorable tax treatment provided to holders of Options that
meet the standards of Section 422 of the Code.  Any provision of this Agreement or the Plan
which conflicts with the Code so that this Option would not be deemed an ISO is
null and void and any ambiguities shall be resolved so that the Option
qualifies as an ISO.  Nonetheless, if the
Option is determined not to be an ISO, the Employee understands that neither
the Company nor any Affiliate is responsible to compensate him or her or
otherwise make up for the treatment of the Option as a Non-Qualified Option and
not as an ISO.  The Employee should
consult with the Employee’s own tax advisors regarding the tax effects of the
Option and the requirements necessary to obtain favorable tax treatment under Section 422
of the Code, including, but not limited to, holding period requirements.

 

 

7

 

Notwithstanding
the foregoing, to the extent that the Option is not deemed to be an ISO
pursuant to Section 422(d) of the Code because the aggregate fair
market value (determined as of the date hereof) of any of the Shares with
respect to which this ISO is granted becomes exercisable for the first time
during any calendar year in excess of $100,000, the portion of the Option
representing such excess value shall be treated as a Non-Qualified Option and
the Employee shall be deemed to have taxable income measured by the difference
between the then fair market value of the Shares received upon exercise and the
price paid for such Shares pursuant to this Agreement.

 

15.                                 NOTICE TO COMPANY OF DISQUALIFYING
DISPOSITION.

 

The Employee agrees to
notify the Company in writing immediately after the Employee makes a
Disqualifying Disposition of any of the Shares acquired pursuant to the
exercise of the Option. A Disqualifying Disposition is defined in Section 424(c) of
the Code and includes any disposition (including any sale) of such Shares
before the later of (a) two years after the date the Employee was granted
the Option or (b) one year after the date the Employee acquired Shares by
exercising the Option, except as otherwise provided in Section 424(c) of
the Code. If the Employee has died before the Shares are sold, these holding
period requirements do not apply and no Disqualifying Disposition can occur
thereafter.

 

16.           NOTICES.

 

Any notices required or
permitted by the terms of this Agreement or the Plan shall be given by
recognized courier service, facsimile, registered or certified mail, return
receipt requested, addressed as follows:

 

If to the Company:

 

	
   

  	
  EnerNOC, Inc.

  
	
   

  	
  Attn: Chief Financial
  Officer

  
	
   

  	
  75 Federal Street,
  Suite 300

  
	
   

  	
  Boston, MA 02110

  

 

If to the Employee:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

or to such other address
or addresses of which notice in the same manner has previously been given. Any
such notice shall be deemed to have been given upon the earlier of receipt, one
business day following delivery to a recognized courier service or three
business days following mailing by registered or certified mail.

 

 

8

 

 

17.                                 GOVERNING LAW.

 

This Agreement shall be
construed and enforced in accordance with the law of the State of Delaware,
without giving effect to the conflict of law principles thereof. For the
purpose of litigating any dispute that arises under this Agreement, the parties
hereby consent to exclusive jurisdiction in the State of Massachusetts  and agree that such litigation shall be conducted in the
courts of Suffolk County, Massachusetts or the federal courts of the United
States for the District of Massachusetts.

 

18.                                 BENEFIT OF AGREEMENT.

 

Subject to the provisions of the Plan and the other
provisions hereof, this Agreement shall be for the benefit of and shall be
binding upon the heirs, executors, administrators, successors and assigns of
the parties hereto.

 

19.                                 ENTIRE AGREEMENT.

 

This Agreement, together
with the Plan, embodies the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all
prior oral or written agreements and understandings relating to the subject
matter hereof. No statement, representation, warranty, covenant or agreement
not expressly set forth in this Agreement shall affect or be used to interpret,
change or restrict, the express terms and provisions of this Agreement,
provided, however, in any event, this Agreement shall be subject to and
governed by the Plan.

 

20.                                 MODIFICATIONS AND AMENDMENTS.

 

The terms and provisions
of this Agreement may be modified or amended as provided in the Plan.

 

21.                                 WAIVERS AND CONSENTS.

 

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

 

22.           DATA PRIVACY.

 

By entering into this
Agreement, the Employee: (i) authorizes the Company and each Affiliate,
and any agent of the Company or any Affiliate administering the Plan or
providing Plan recordkeeping services, to disclose to the Company or any of its
Affiliates such information and data as the Company or any such Affiliate shall
request in order to facilitate the grant of options and the administration of
the Plan; (ii) waives any data privacy rights he or she may have

 

 

9

 

 

with respect to such
information; and (iii) authorizes the Company and each Affiliate to store
and transmit such information in electronic form.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10

 

 

IN
WITNESS WHEREOF, the Company has caused this Agreement to be executed by its
duly authorized officer, and the Employee has hereunto set his or her hand, all
as of the day and year first above written.

 

 

	
  .

  	
  ENERNOC, INC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  
	
   

  	
   

  

 

 

11

 

Exhibit A

 

NOTICE OF EXERCISE
OF INCENTIVE STOCK OPTION

 

TO:         EnerNOC, Inc.

 

IMPORTANT NOTICE:  This form of Notice of Exercise may only be
used at such time as the Company has filed a Registration Statement with the
Securities and Exchange Commission under which the issuance of the Shares for
which this exercise is being made is registered and such Registration Statement
remains effective.

 

Ladies and Gentlemen:

 

I hereby exercise my
Incentive Stock Option to purchase
                  
shares (the “Shares”) of the common stock, $.001 par value, of EnerNOC, Inc.  (the “Company”), at the exercise price of
$                
per share, pursuant to and subject to the terms of that certain Incentive Stock
Option Agreement between the undersigned and the Company dated
                              ,
200  .

 

I understand the nature
of the investment I am making and the financial risks thereof.  I am aware that it is my responsibility to
have consulted with competent tax and legal advisors about the relevant
national, state and local income tax and securities laws affecting the exercise
of the Option and the purchase and subsequent sale of the Shares.

 

I am
paying the option exercise price for the Shares as follows:

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Please issue the Shares
(check one):

 

o
to me; or

 

o to me and
                                                        ,
as joint tenants with right of survivorship,

 

at the following address:

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

A-1

 

 

My mailing address for shareholder communications, if different from
the address listed above, is:

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee (signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  

 

 

A-2Exhibit 10.26

 

FORM OF

 

EXECUTIVE
NON-QUALIFIED STOCK OPTION AGREEMENT

 

ENERNOC,
INC.

 

AGREEMENT made as of the
     day of
                  
200  , between EnerNOC, Inc. (the “Company”), a Delaware
corporation,
                          ,
and                               
(the “Participant”).

 

WHEREAS, the Company
desires to grant to the Participant an Option to purchase shares of its common
stock, $.001 par value per share (the “Shares”), under and for the purposes set
forth in the Company’s 2007 Employee, Director and Consultant Stock Plan (the “Plan”);

 

WHEREAS, the Company and
the Participant understand and agree that any terms used and not defined herein
have the same meanings as in the Plan; and

 

WHEREAS, the Company and
the Participant each intend that the Option granted herein shall be a
Non-Qualified Option.

 

NOW, THEREFORE, in
consideration of the mutual covenants hereinafter set forth and for other good
and valuable consideration, the parties hereto agree as follows:

 

1.                                       GRANT OF OPTION.

 

The Company hereby grants
to the Participant the right and option to purchase all or any part of an
aggregate of
                              
Shares, on the terms and conditions and subject to all the limitations set
forth herein, under United States securities and tax laws, and in the Plan,
which is incorporated herein by reference. The Participant acknowledges receipt
of a copy of the Plan.

 

2.                                       PURCHASE PRICE.

 

The purchase price of the
Shares covered by the Option shall be $        
per Share, subject to adjustment, as provided in the Plan, in the event of a
stock split, reverse stock split or other events affecting the holders of
Shares after the date hereof (the “Purchase Price”). Payment shall be made in
accordance with Paragraph 9 of the Plan.

 

3.                                       EXERCISABILITY OF OPTION.

 

Subject
to the terms and conditions set forth in this Agreement and the Plan, the
Option granted hereby shall become exercisable as follows:

 

	
  On
  the first anniversary of

  the date of this Agreement:

  	
   

  	
  25% of the Shares

  

 

 

 

	
  On
  the first day of each

  calendar month following

  the first anniversary of the

  date of this Agreement for

  thirty-six months:

  	
   

  	
  An additional 2.0833%
  of the Shares rounded down to the nearest whole share

  

 

The foregoing rights are
cumulative and are subject to the other terms and conditions of this Agreement
and the Plan.

 

                Notwithstanding the foregoing, in the
event of a Change of Control (as defined below),   % of the
Shares which would have vested in each vesting installment remaining under this
Option will be vested for purposes of Section 24(B) of the Plan
unless this Option has otherwise expired or been terminated pursuant to its
terms or the terms of the Plan.

 

                Change of
Control means the occurrence
of any of the following events:

 

(i)                                     Ownership. Any “Person”
(as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended) becomes the “Beneficial Owner” (as defined in
Rule 13d-3 under said Act), directly or indirectly, of securities of the
Company representing 50% or more of the total voting power represented by the
Company’s then outstanding voting securities (excluding for this purpose the
Company or its Affiliates or any employee benefit plan of the Company) pursuant
to a transaction or a series of related transactions which the Board of
Directors does not approve; or

 

(ii)                                  Merger/Sale of Assets.
A merger or consolidation of the Company whether or not approved by the Board
of Directors, other than a merger or consolidation which would result in the
voting securities of the Company outstanding immediately prior thereto
continuing to represent (either by remaining outstanding or by being converted
into voting securities of the surviving entity or the parent of such
corporation) at least 50% of the total voting power represented by the voting
securities of the Company or such surviving entity or parent of such
corporation outstanding immediately after such merger or consolidation, or the
stockholders of the Company approve an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets; or

 

(iii)                               Change in Board Composition. A change in
the composition of the Board of Directors, as a result of which fewer than a
majority of the directors are Incumbent Directors. “Incumbent Directors” shall mean
directors who either (A) are directors of the Company as of [insert grant date], or (B) are
elected, or nominated for election, to the Board of Directors with the
affirmative votes of at least a majority of the Incumbent Directors at the time
of such election or nomination (but shall not include an individual whose
election or nomination is in connection with an actual or threatened proxy
contest relating to the election of directors to the Company).

 

 

2

 

 

4.                                       TERM OF OPTION.

 

This Option shall
terminate six years from the date of this Agreement, but shall be subject to
earlier termination as provided herein or in the Plan.

 

If the Participant ceases
to be an employee, director or consultant of the Company or of an Affiliate
(for any reason other than the death or Disability of the Participant or
termination of the Participant for “cause”, the Option may be exercised, if it
has not previously terminated, within three months after the date the
Participant ceases to be an employee, director or consultant of the Company or
an Affiliate, or within the originally prescribed term of the Option, whichever
is earlier, but may not be exercised thereafter. In such event, the Option
shall be exercisable only to the extent that the Option has become exercisable
and is in effect at the date of such cessation of service.

 

Notwithstanding the
foregoing, in the event of the Participant’s Disability or death within three
months after the termination of service, the Participant or the Participant’s
Survivors may exercise the Option within one year after the date of the
Participant’s termination of service, but in no event after the date of
expiration of the term of the Option.

 

In the event the
Participant’s service is terminated by the Company or an Affiliate for “cause”,
the Participant’s right to exercise any unexercised portion of this Option
shall cease immediately as of the time the Participant is notified his or her
service is terminated for “cause,” and this Option shall thereupon terminate. Notwithstanding
anything herein to the contrary, if subsequent to the Participant’s
termination, but prior to the exercise of the Option, the Board of Directors of
the Company determines that, either prior or subsequent to the Participant’s
termination, the Participant engaged in conduct which would constitute “cause,”
then the Participant shall immediately cease to have any right to exercise the
Option and this Option shall thereupon terminate.

 

In the event of the
Disability of the Participant, as determined in accordance with the Plan, the
Option shall be exercisable within one year after the Participant’s termination
of service or, if earlier, within the term originally prescribed by the Option.
In such event, the Option shall be exercisable:

 

(a)                                  to the extent that the Option has become
exercisable but has not been exercised as of the date of Disability; and

 

(b)                                 in the event rights to exercise the
Option accrue periodically, to the extent of a pro rata portion through the
date of Disability of any additional vesting rights that would have accrued on
the next vesting date had the Participant not become Disabled. The proration
shall be based upon the number of days accrued in the current vesting period
prior to the date of Disability.

 

In the event of the death
of the Participant while an employee, director or consultant of the Company or
of an Affiliate, the Option shall be exercisable by the Participant’s Survivors
within one year after the date of death of the Participant or, if earlier,
within the originally prescribed term of the Option. In such event, the Option
shall be exercisable:

 

 

3

 

 

(x)                                   to the extent that the Option has become
exercisable but has not been exercised as of the date of death; and

 

(y)                                 in the event rights to exercise the
Option accrue periodically, to the extent of a pro rata portion through the
date of death of any additional vesting rights that would have accrued on the
next vesting date had the Participant not died. The proration shall be based
upon the number of days accrued in the current vesting period prior to the
Participant’s date of death.

 

5.             METHOD
OF EXERCISING OPTION.

 

Subject to the terms and
conditions of this Agreement, the Option may be exercised by written notice to
the Company or its designee, in substantially the form of Exhibit A
attached hereto. Such notice shall state the number of Shares with respect to
which the Option is being exercised and shall be signed by the person
exercising the Option. Payment of the purchase price for such Shares shall be
made in accordance with Paragraph 9 of the Plan. The Company shall deliver such
Shares as soon as practicable after the notice shall be received, provided,
however, that the Company may delay issuance of such Shares until completion of
any action or obtaining of any consent, which the Company deems necessary under
any applicable law (including, without limitation, state securities or “blue
sky” laws). The Shares as to which the Option shall have been so exercised
shall be registered in the Company’s share register in the name of the person
so exercising the Option (or, if the Option shall be exercised by the
Participant and if the Participant shall so request in the notice exercising
the Option, shall be registered in the Company’s share register in the name of
the Participant and another person jointly, with right of survivorship) and
shall be delivered as provided above to or upon the written order of the person
exercising the Option. In the event the Option shall be exercised, pursuant to Section 4
hereof, by any person other than the Participant, such notice shall be
accompanied by appropriate proof of the right of such person to exercise the
Option. All Shares that shall be purchased upon the exercise of the Option as
provided herein shall be fully paid and nonassessable.

 

6.             PARTIAL
EXERCISE.

 

Exercise of this Option
to the extent above stated may be made in part at any time and from time to
time within the above limits, except that no fractional share shall be issued
pursuant to this Option.

 

7.             NON-ASSIGNABILITY.

 

The Option shall not be
transferable by the Participant otherwise than by will or by the laws of
descent and distribution or pursuant to a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act
or the rules thereunder. Except as provided above in this paragraph, the
Option shall be exercisable, during the Participant’s lifetime, only by the
Participant (or, in the event of legal incapacity or incompetency, by the
Participant’s guardian or representative) and shall not be assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and shall
not be subject to execution, attachment or similar process. Any attempted
transfer, assignment, pledge,

 

 

4

 

hypothecation or other
disposition of the Option or of any rights granted hereunder contrary to the
provisions of this Section 7, or the levy of any attachment or similar
process upon the Option shall be null and void.

 

8.             NO
RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

The Participant shall
have no rights as a stockholder with respect to Shares subject to this
Agreement until registration of the Shares in the Company’s share register in
the name of the Participant. Except as is expressly provided in the Plan with
respect to certain changes in the capitalization of the Company, no adjustment
shall be made for dividends or similar rights for which the record date is prior
to the date of such registration.

 

9.                                       ADJUSTMENTS.

 

The Plan contains
provisions covering the treatment of Options in a number of contingencies such
as stock splits and mergers. Provisions in the Plan for adjustment with respect
to stock subject to Options and the related provisions with respect to
successors to the business of the Company are hereby made applicable hereunder
and are incorporated herein by reference; provided, however, that in the event
of a Change of Control (as defined in Section 3 above)   % of
the Shares which would have vested in each vesting installment remaining under
this Option will be vested for purposes of Section 24(B) of the Plan.

 

10.           TAXES.

 

The Participant
acknowledges that upon exercise of the Option the Participant will be deemed to
have taxable income measured by the difference between the then fair market
value of the Shares received upon exercise and the price paid for such Shares
pursuant to this Agreement. The Participant acknowledges that any income or
other taxes due from him or her with respect to this Option or the Shares
issuable pursuant to this Option shall be the Participant’s responsibility.

 

The Participant agrees
that the Company may withhold from the Participant’s remuneration, if any, the
minimum statutory amount of federal, state and local withholding taxes
attributable to such amount that is considered compensation includable in such
person’s gross income. At the Company’s discretion, the amount required to be
withheld may be withheld in cash from such remuneration, or in kind from the
Shares otherwise deliverable to the Participant on exercise of the Option. The
Participant further agrees that, if the Company does not withhold an amount
from the Participant’s remuneration sufficient to satisfy the Company’s income
tax withholding obligation, the Participant will reimburse the Company on
demand, in cash, for the amount under-withheld.

 

11.           PURCHASE FOR INVESTMENT.

 

Unless the offering and
sale of the Shares to be issued upon the particular exercise of the Option
shall have been effectively registered under the Securities Act of 1933, as now
in force or hereafter amended (the “1933 Act”), the Company shall be under no
obligation to issue the Shares covered by such exercise unless and until the
following conditions have been fulfilled:

 

 

5

 

 

(a)                                  The person(s) who exercise the
Option shall warrant to the Company, at the time of such exercise, that such
person(s) are acquiring such Shares for their own respective accounts, for
investment, and not with a view to, or for sale in connection with, the
distribution of any such Shares, in which event the person(s) acquiring
such Shares shall be bound by the provisions of the following legend which
shall be endorsed upon the certificate(s) evidencing the Shares issued
pursuant to such exercise:

 

“The shares represented
by this certificate have been taken for investment and they may not be sold or
otherwise transferred by any person, including a pledgee, unless (1) either
(a) a Registration Statement with respect to such shares shall be
effective under the Securities Act of 1933, as amended, or (b) the Company
shall have received an opinion of counsel satisfactory to it that an exemption
from registration under such Act is then available, and (2) there shall
have been compliance with all applicable state securities laws;” and

 

(b)                                 If the Company so requires, the Company
shall have received an opinion of its counsel that the Shares may be issued
upon such particular exercise in compliance with the 1933 Act without
registration thereunder. Without limiting the generality of the foregoing, the
Company may delay issuance of the Shares until completion of any action or
obtaining of any consent, which the Company deems necessary under any
applicable law (including without limitation state securities or “blue sky”
laws).

 

12.                                 RESTRICTIONS ON TRANSFER OF SHARES.

 

12.1         The Participant agrees that in the
event the Company proposes to offer for sale to the public any of its equity
securities and such Participant is requested by the Company and any underwriter
engaged by the Company in connection with such offering to sign an agreement
restricting the sale or other transfer of Shares, then it will promptly sign
such agreement and will not transfer, whether in privately negotiated
transactions or to the public in open market transactions or otherwise, any
Shares or other securities of the Company held by him or her during such period
as is determined by the Company and the underwriters, not to exceed 180 days
following the closing of the offering, plus such additional period of time as
may be required to comply with Marketplace Rule 2711 of the National
Association of Securities Dealers, Inc. or similar rules thereto
(such period, the “Lock-Up Period”). Such agreement shall be in writing and in
form and substance reasonably satisfactory to the Company and such underwriter
and pursuant to customary and prevailing terms and conditions. Notwithstanding
whether the Participant has signed such an agreement, the Company may impose
stop-transfer instructions with respect to the Shares or other securities of
the Company subject to the foregoing restrictions until the end of the Lock-Up
Period.

 

12.2         The Participant acknowledges and agrees
that neither the Company, its shareholders nor its directors and officers, has
any duty or obligation to disclose to the Participant any material information
regarding the business of the Company or affecting the value of the Shares
before, at the time of, or following a termination of the employment of the
Participant by the Company, including, without limitation, any information
concerning plans for

 

 

6

 

the Company to make a
public offering of its securities or to be acquired by or merged with or into
another firm or entity.

 

13.                                 NO OBLIGATION TO MAINTAIN RELATIONSHIP.

 

The Company is not by the
Plan or this Option obligated to continue the Participant as an employee,
director or consultant of the Company or an Affiliate. The Participant
acknowledges: (i) that the Plan is discretionary in nature and may be
suspended or terminated by the Company at any time; (ii) that the grant of
the Option is a one-time benefit which does not create any contractual or other
right to receive future grants of options, or benefits in lieu of options; (iii) that
all determinations with respect to any such future grants, including, but not
limited to, the times when options shall be granted, the number of shares
subject to each option, the option price, and the time or times when each
option shall be exercisable, will be at the sole discretion of the Company; (iv) that
the Participant’s participation in the Plan is voluntary; (v) that the
value of the Option is an extraordinary item of compensation which is outside
the scope of the Participant’s employment contract, if any; and (vi) that
the Option is not part of normal or expected compensation for purposes of
calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar
payments.

 

14.           NOTICES.

 

Any notices required or
permitted by the terms of this Agreement or the Plan shall be given by
recognized courier service, facsimile, registered or certified mail, return receipt
requested, addressed as follows:

 

If to the Company:

 

	
   

  	
  EnerNOC, Inc.

  
	
   

  	
  Attn: Chief
  Financial Officer

  
	
   

  	
  75 Federal Street,
  Suite 300

  
	
   

  	
  Boston, MA 02110

  

 

If to the Participant:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

or to such other address
or addresses of which notice in the same manner has previously been given. Any
such notice shall be deemed to have been given upon the earlier of receipt, one
business day following delivery to a recognized courier service or three
business days following mailing by registered or certified mail.

 

15.           GOVERNING LAW.

 

This Agreement shall be
construed and enforced in accordance with the law of the Commonwealth of
Massachusetts without giving effect to the conflict of law principles thereof.

 

 

 

7

 

For the purpose of
litigating any dispute that arises under this Agreement, the parties hereby
consent to exclusive jurisdiction in the State of Massachusetts  and agree that such litigation shall be conducted in the
courts of Suffolk County, Massachusetts  or the federal
courts of the United States for the District of Massachusetts.

 

16.           BENEFIT OF AGREEMENT.

 

Subject to the provisions
of the Plan and the other provisions hereof, this Agreement shall be for the
benefit of and shall be binding upon the heirs, executors, administrators,
successors and assigns of the parties hereto.

 

17.           ENTIRE AGREEMENT.

 

This Agreement, together
with the Plan, embodies the entire agreement and understanding between the
parties hereto with respect to the subject matter hereof and supersedes all
prior oral or written agreements and understandings relating to the subject
matter hereof. No statement, representation, warranty, covenant or agreement
not expressly set forth in this Agreement shall affect or be used to interpret,
change or restrict, the express terms and provisions of this Agreement,
provided, however, in any event, this Agreement shall be subject to and
governed by the Plan.

 

18.           MODIFICATIONS AND AMENDMENTS.

 

The terms and provisions
of this Agreement may be modified or amended as provided in the Plan.

 

19.           WAIVERS AND CONSENTS.

 

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

 

20.           DATA PRIVACY.

 

By entering into this
Agreement, the Participant: (i) authorizes the Company and each Affiliate,
and any agent of the Company or any Affiliate administering the Plan or
providing Plan recordkeeping services, to disclose to the Company or any of its
Affiliates such information and data as the Company or any such Affiliate shall
request in order to facilitate the grant of options and the administration of
the Plan; (ii) waives any data privacy rights he or she may have with
respect to such information; and (iii) authorizes the Company and each
Affiliate to store and transmit such information in electronic form.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

8

 

 

IN WITNESS WHEREOF, the Company has caused this
Agreement to be executed by its duly authorized officer, and the Participant
has hereunto set his or her hand, all as of the day and year first above
written.

 

	
   

  	
  ENERNOC, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Participant

  	
   

  

 

 

9

 

Exhibit A

 

NOTICE OF EXERCISE
OF NON-QUALIFIED STOCK OPTION

 

TO:         EnerNOC, Inc.

 

IMPORTANT NOTICE: This
form of Notice of Exercise may only be used at such time as the Company has
filed a Registration Statement with the Securities and Exchange Commission under
which the issuance of the Shares for which this exercise is being made is
registered and such Registration Statement remains effective.

 

Ladies and Gentlemen:

 

I hereby exercise my
Non-Qualified Stock Option to purchase
                  
shares (the “Shares”) of the common stock, $.001 par value, of EnerNOC, Inc.  (the “Company”), at the exercise price of $   per
share, pursuant to and subject to the terms of that certain Non-Qualified Stock
Option Agreement between the undersigned and the Company dated
                              ,
200  .

 

I understand the nature
of the investment I am making and the financial risks thereof. I am aware that
it is my responsibility to have consulted with competent tax and legal advisors
about the relevant national, state and local income tax and securities laws
affecting the exercise of the Option and the purchase and subsequent sale of
the Shares.

 

I am paying the option
exercise price for the Shares as follows:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

Please issue the Shares
(check one):

 

o
to me; or

 

o to me and
                                                        ,
as joint tenants with right of survivorship,

 

at the following address:

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

A-1

 

 

My mailing address for
shareholder communications, if different from the address listed above, is:

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant (signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  

 

 

A-2

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