Document:

Exhibit 10.102

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of January 1, 2013 (the “Effective Date”) by and between Clean Energy Fuels Corp., a Delaware corporation (“Employer” or the “Company”), and Peter J. Grace (“Employee”).

 

RECITALS

 

A.                                    Employee has served as Senior Vice President, Sales & Finance and Employer desires to retain the benefit of Employee’s skill, knowledge and experience in order to insure the continued successful operation of its business, and Employee desires to render services to Employer.

 

B.                                    Employee and Employer desire to enter into an employment agreement as provided herein.

 

AGREEMENT

 

In consideration of the good and valuable consideration and mutual promises and covenants contained herein, the parties agree as follows:

 

1.                                      Background.  Employee is currently employed by Employer as its Senior Vice President, Sales & Finance.  This Agreement terminates and supersedes all prior written and oral agreements between Employer and Employee and sets forth the terms and conditions of Employee’s employment with Employer.

 

2.                                      Term.  Employer agrees to employ Employee and Employee agrees to serve Employer, in accordance with the terms of this Agreement, for a term commencing on the Effective Date and ending on December 31, 2013 (the “Term”), unless this Agreement is earlier terminated in accordance with the provisions herein.  This Agreement shall thereafter renew automatically for a one (1) year period (the “Renewal Term”).  Any such renewal shall be on the same terms and conditions as this Agreement.

 

3.                                      Duties of Employee.  Employee will continue to serve as Senior Vice President, Sales & Finance of Employer and in other capacities as may be requested by Employer, and as such, Employee hereby promises to perform and discharge well and faithfully the duties that may be assigned to Employee from time to time which are appropriate for a senior vice president, sales & finance of an organization the size of Employer that is engaged in the type of business engaged in by Employer and Employer agrees to assign to Employee only such duties.  As Senior Vice President, Sales & Finance, Employee shall report to the Employer’s President and Chief Executive Officer.  The duties of Employee may be changed from time to time by the mutual agreement of the Employer and Employee.  Notwithstanding any such change from the duties originally assigned, or hereafter assigned, the employment of Employee will be construed as continuing under this Agreement as modified.  However, if Employer shall materially diminish either Employee’s duties or his Base Salary (as defined below in Section 4(a)) (each, a “Good Reason”), then Employee shall be eligible to receive the Severance Benefits described in Section 5(d) provided, however, that Employee must timely satisfy the requirements specified in Sections 5(h) and 5(i).  Employee agrees to devote substantially all of Employee’s working time and attention to Employee’s duties hereunder, except for such reasonable amounts of time for personal, charitable, investment and professional activities that do not substantially interfere with the service to be rendered by Employee hereunder.

 

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4.                                      Compensation.

 

(a)                                 Base Salary.  During the Term or any Renewal Term, Employer agrees to pay Employee an annual base salary of $350,000 (“Base Salary”), which shall be earned and payable in accordance with Employer’s usual and customary payroll practices as in effect from time to time; provided, however, that pro-rata payments of Base Salary shall occur at least once every 30 days.  Any increase in Base Salary shall be as determined from time to time in the sole discretion of the Employer.

 

(b)                                 Incentive Compensation.  Employee shall be eligible for an annual performance bonus (“Incentive Compensation”) of up to one hundred percent (100%) of Base Salary.  Any increase in Incentive Compensation shall be as determined from time to time in the sole discretion of the Employer. Incentive Compensation will be (1) determined in accordance with certain financial and operational objectives that are established within ninety (90) days following the commencement of each fiscal year of Employer during the Term or any Renewal Term, and (2) paid no later than March 15th immediately following the fiscal year in which the Incentive Compensation was earned. Incentive Compensation for partial years will be prorated.  Employee shall also be eligible to receive additional bonuses, in recognition of the Employer’s finance program, as determined from time to time in the sole discretion of the President and Chief Executive Officer of the Employer.

 

(c)                                  Additional Benefits.  Employee shall also be entitled to participate in any pension plan, profit-sharing plan, life, medical, dental, disability, or other insurance plan or other plan or benefit as from time to time is in effect during the term of this Agreement that Employer may provide generally for management-level employees of Employer (collectively, “Additional Benefits”) provided, however, that while this Agreement remains in force, Employer will provide for Employee, at Employer’s expense, participation in medical, dental and vision coverage, short-term disability, long-term disability, AD&D, and life insurance benefits on terms and in amounts not less beneficial to Employee than those provided by the plans, in effect on the date hereof, subject to a determination of Employee’s eligibility under said programs in accordance with their respective terms.  Said coverage will be in existence or will take effect as of the commencement of the Term and will continue while this Agreement remains in force. Employer’s liability to Employee for any breach of this paragraph will be limited to the amount of premiums payable by Employee to obtain the coverage contemplated herein.

 

(d)                                 Vacation.  Employee shall be entitled to twenty-five (25) business days of paid vacation each twelve (12) months of the Term or any Renewal Term, in accordance with Employer’s practices and policies which are applicable to its management-level employees.

 

(e)                                  Automobile.  Employer may, in its sole and exclusive discretion, provide Employee with a compressed natural gas operated automobile. Employer shall pay all operating expenses of any nature whatsoever with regard to such automobile.

 

5.                                      Termination.  The compensation and other benefits provided to Employee pursuant to this Agreement, and the employment of Employee by Employer, shall be terminated only as provided in this Section 5.

 

(a)                                 Death.  If Employee’s employment hereunder is terminated by reason of Employee’s death, this Agreement shall then terminate without further obligations to Employee (or Employee’s heirs or legal representatives) other than for:

 

(1)                                 payment of the sum of (A) unpaid Base Salary earned through the date of termination of Employee’s employment and any Incentive Compensation earned for the prior fiscal year to the extent not theretofore paid, (B) any compensation previously

 

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deferred by Employee (together with any accrued interest or earnings thereon) if so properly elected by Employee to be paid out upon termination of Employee’s employment (or his death), and (C) any vacation pay accrued through the date of termination of Employee’s employment to the extent not theretofore paid, (for purposes of this Agreement, the preceding clauses (A), (B) and (C) collectively are the “Accrued Obligations”).  Any Accrued Obligations shall be paid in a single lump sum in cash within ten (10) days after the date of termination of Employee’s employment or any earlier time period required by applicable law;

 

(2)                                 payment of any amount due to Employee pursuant to the terms of any applicable benefit plan; and

 

(3)                                 payment of a prorated portion, based on the number of weeks during the last fiscal year in which Employee was employed by Employer, of the Incentive Compensation that would be payable in respect of such last fiscal year (based on the criteria applicable for that fiscal year) (the “Pro-Rated Incentive Compensation”).

 

Payment of the Pro-Rated Incentive Compensation shall be made after the end of the fiscal year of termination of Employee’s employment but no later than March 15th following such fiscal year.  For purposes of this Agreement, the preceding clause (2) and the Pro-Rated Incentive Compensation collectively are the “Other Compensation”.  Payment of the Accrued Obligations and Other Compensation shall be made to Employee’s estate or beneficiary as applicable.

 

(b)                                 Disability.  If the Employer determines that Employee has become permanently disabled which shall be defined as the Employee’s inability because of illness or incapacity substantiated by appropriate medical authority, to render services of the character contemplated by this Agreement over a period of six (6) consecutive months, then Employee’s employment shall then terminate without further obligations to Employee (or Employee’s heirs or legal representatives) under this Agreement other than for payment to Employee or Employee’s representative, as applicable, of the Accrued Obligations and Other Compensation with such payments occurring at the times that are specified in Section 5(a).

 

(c)                                  For Cause.  Employee’s employment hereunder shall be terminated and all of Employee’s rights to receive further compensation shall terminate upon a determination by Employer, acting in good faith, that Employee (1) has committed a material act of dishonesty against Employer, (2) has been convicted of a felony involving moral turpitude or (3) has committed a material breach of Sections 7(f), 7(g), 7(h) or 7(i) of this Agreement (each of the foregoing acts identified in clauses (1), (2) and (3) shall constitute “Cause”).  Employer shall then have no further obligations to Employee (or Employee’s heirs or legal representatives) under this Agreement other than for payment to Employee of the Accrued Obligations with such payment occurring at the time that is specified in Section 5(a).

 

(d)                                 Without Cause.  Notwithstanding any other provision of this Section 5, the Employer shall have the right to terminate Employee’s employment at any time without Cause, but in the event of such termination, Employee shall be eligible to receive:

 

(1)                                 the sum of (A) the Accrued Obligations (which will be paid at the time specified in Section 5(a)), (B) one hundred and fifty percent (150%) of one (1) years current Base Salary, and (C) one hundred and fifty percent (150%) of the previous fiscal year’s earned Incentive Compensation;

 

(2)                                 the Pro-Rated Incentive Compensation; and

 

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(3)                                 continuing participation for a period of one (1) year from the date of termination of Employee’s employment at Employer expense in the Additional Benefits in which Employee was enrolled at the time of such termination, provided, however, that such continued participation shall in all cases be subject to the applicable plan’s terms and conditions governing participation by non-employees after their termination of employment.

 

For purposes of this Agreement, “Severance Benefits” shall consist of the benefits provided by the preceding clauses (1)(B), (1)(C), (2) and (3).  In consideration of the receipt of the Severance Benefits, and as a precondition to their receipt, Employee must timely satisfy the Release requirements specified in Section 5(i).  The cash Severance Benefits shall be paid to Employee as described in Section 5(i).  For purposes of this Agreement, a termination of Employee’s employment must constitute a “separation from service” as defined by Internal Revenue Code Section 409A.

 

(e)                                  Voluntary Departure.

 

(i)                                     No Change In Control.  If there has not been a Change in Control (as defined in Section 5(f)(i)(A) below) of Employer and Employee’s employment hereunder is terminated due to Employee’s resignation without Good Reason, all of Employee’s rights to receive compensation shall immediately cease other than for payment to Employee of the Accrued Obligations and (2) Additional Benefits through the date of termination (subject to the terms of any plans relating thereto).

 

(ii)                                  Change In Control.  If there has been a Change in Control (as defined in Section 5(f)(i)(A) below) of Employer and Employee’s employment is terminated due to Employee’s resignation for any reason within one (1) year of the Change in Control, then Employee shall be entitled to receive the Accrued Obligations (paid at the time specified in Section 5(a)) and shall be eligible to receive the Severance Benefits.  In consideration of the receipt of the Severance Benefits, and as a precondition to their receipt, Employee must timely satisfy the Release requirements specified in Section 5(i).  The cash Severance Benefits shall be paid to Employee as described in Section 5(i).

 

(f)                                   Involuntary Departure After Change in Control (subject to the limitations of Section 5(f)(ii)).

 

(i)                                     If, otherwise than as a result of the exchange of stock of the Employer for cancellation of indebtedness, or a restructuring arrangement entered into for the benefit of Employer’s creditors,

 

(A)                               Any “person”, other than an existing shareholder of Employer as of the Effective Date, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the Securities Exchange Act of 1934, as amended), directly or indirectly, of securities of the Employer representing 50% plus one share, or more, of the combined voting power of the Employer’s then outstanding securities (for purposes of this Section 5(f)(i), the term “person” shall mean a person as defined or referred to in Section 3(a)(9) and/or 13(d)(1), et seq. of the Securities Exchange Act of 1934, as amended, and the associated rules of the Securities and Exchange Commission promulgated thereunder) (hereinafter, a “Change in Control”); and

 

(B)                               such “person” or Employer terminates Employee’s employment with the Employer without Cause within 1 year of the date of the Change in Control;

 

then notwithstanding any other provision of this Agreement to the contrary and as a substitute therefor, Employee shall be eligible to receive:

 

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(1)                                 the sum of (A) the Accrued Obligations (paid at the time specified in Section 5(a)), (B) two hundred percent (200%) of one (1) years current Base Salary, and (C) two hundred percent (200%) of the previous fiscal year’s earned Incentive Compensation;

 

(2)                                 the Pro-Rated Incentive Compensation; and

 

(3)                                 continuing participation for a period of one (1) year from the date of termination of Employee’s employment at Employer expense in the Additional Benefits in which Employee was enrolled at the time of such termination, provided, however, that such continued participation shall in all cases be subject to the applicable plan’s terms and conditions governing participation by non-employees after their termination of employment.

 

In consideration of the receipt of the severance benefits (which are all the benefits described in this Section 5(f)(i) other than the Accrued Obligations), and as a precondition to their receipt, Employee must timely satisfy the Release requirements specified in Section 5(i).  The cash Severance Benefits shall be paid to Employee as described in Section 5(i).

 

(ii)                                  Anything in this Agreement to the contrary notwithstanding in the event that any payment to or for Employee’s benefit (whether payable pursuant to the terms of this Agreement or otherwise) would not be deductible by Employer as a result of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”), then the aggregate amount payable under this Agreement shall be reduced (but not below zero dollars) so that after giving effect to such reduction, no payment made to or for the Employee’s benefit will not be deductible by Employer because of Section 280G.  If the Employee establishes (with clear and convincing evidence in accordance with Section 280G) that all or any portion of the aggregate “parachute payments” (as defined in Section 280G) payable to or for the Employee’s benefit constitutes reasonable compensation for services actually rendered, and if the present value of all such “parachute payments” which do not constitute reasonable compensation equals or exceeds 300% of the Employee’s “base amount” (as defined in Section 280G), then the Employee shall be entitled to receive, in addition to the amount determined following the reduction described in the prior sentence, an amount equal to (but not greater than) the present value of all such “parachute payments” which constitute reasonable compensation. For purposes of this Section 5(f)(ii), the “present value” of any payment shall be determined in accordance with Section 1274(b)(2) of the Code.  If it is established that, notwithstanding the good faith of Employee and the Employer in applying the terms of this Section 5(f)(ii), the aggregate “parachute payments” paid to or for Employee’s benefit are in an amount that would result in a portion of such “parachute payments” not being deductible by the Employer, then Employee shall have an obligation to pay to the Employer upon written demand by Employer an amount equal to the sum of (i) the excess of the aggregate “parachute payments” paid to or for Employee’s benefit over the aggregate “parachute payments” that could have been paid to or for Employee’s benefit without any portion of such “parachute payments” not being deductible by the Employer; and (ii) interest on the amount set forth in clause (i) of this sentence at the applicable federal rate (as defined in Section 1274(d) of the Code) from the date of the receipt of such excess on Employee’s behalf until the date of such repayment by Employee.  Notwithstanding anything in this Agreement to the contrary, to the extent that any of the payments or benefits provided under this Agreement are reduced in accordance with the provisions of this Section 5(f)(ii), payments and benefits that do not constitute nonqualified deferred compensation within the meaning of Code Section 409A shall be reduced first, and any reduction shall be made in a manner consistent with the requirements of Code Section 409A.

 

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(g)                                  Special Required Delay in Payments under Internal Revenue Code Section 409A.  Notwithstanding any provision in this Agreement to the contrary, if Employee is a “specified employee” as defined under Code Section 409A as of the date of his separation from service, then to the extent necessary to comply with Code Section 409A and avoid the imposition of taxes under Code Section 409A, Employer shall defer payment of “nonqualified deferred compensation” subject to Code Section 409A payable as a result of and within six (6) months following such separation from service until the earlier of (i) ten (10) business days after Employer receives notification of Employee’s death or (ii) the first business day of the seventh month following Employee’s separation from service. Any such delayed payments shall be made without interest.

 

(h)                                 Good Reason Procedural Conditions.  In order for Employee to resign his employment for Good Reason and be eligible for the applicable severance benefits under this Agreement, Employee must notify Employer in writing within 90 days following the initial existence of the Good Reason condition and Employer shall be then be given 45 days from its receipt of such notice during which Employer may remedy or cure such condition (“Remedy Period”).  For purposes of the foregoing, if Employee does not timely provide notice to Employer, then Employee is deemed to have forever waived this right to terminate his employment for Good Reason with respect to such condition.  If Employer does not cure or remedy such Good Reason condition(s) during the Remedy Period, then Employee must resign his employment within 30 days after the end of the Remedy Period and must also timely comply with the Release requirements of Section 5(i) in order to receive the applicable severance benefits.

 

(i)                                     Release of Claims Requirements.  In consideration of the receipt of any severance benefits under this Agreement, and as a precondition to their receipt, Employee must execute and not revoke and deliver to the Company a release of all known and unknown claims substantially in the form attached hereto as Exhibit A (the “Release”).  Employee shall be granted a twenty-one (21) day period (or such other time period required by applicable law but not to exceed 45 days) commencing within 10 days after termination of Employee’s employment in which to review and study the Release and consult with an attorney prior to deciding whether to execute the Release.  Employee’s failure to timely execute and deliver such Release within the prescribed time period (or Employee’s revocation of the Release) shall be deemed to be a waiver of Employee’s ability to receive any of the applicable severance benefits.  If the Release is executed and delivered and no longer subject to revocation as provided herein, then any cash severance benefits shall be paid on the 90th day following the termination of Employee’s employment (other than the Pro-Rated Incentive Compensation, which shall be paid as specified in Section 5(a)), except to the extent that such payments are further delayed pursuant to the application of Section 5(g).

 

6.                                      Business Expenses.  During the term of this Agreement, to the extent that such expenditures satisfy the criteria under the Code for deductibility by Employer (whether or not fully deductible by Employer) for federal income tax purposes as ordinary and necessary business expenses, Employer shall reimburse Employee promptly for usual and customary business expenditures incurred in pursuit and in furtherance of Employer’s business which are documented in accordance with procedures established from time to time by Employer.

 

7.                                      Miscellaneous.

 

(a)                                 Succession; Survival.  This Agreement is personal to Employee and is not, without the prior written consent of Employer, assignable by Employee.  This Agreement shall inure to the benefit of the parties hereto and their respective executors, administrators, personal representatives, successors and assigns.  As used herein, with respect to Employer, “successor” and “assignee” shall include any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly, acquires the stock of Employer or to which Employer assigns this Agreement by operation of law or otherwise.

 

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(b)                                 Notices.  Any notice or other communication provided for in this Agreement shall be in writing and shall be deemed sent if sent as follows:

 

	
If to Employer:
    	
Clean   Energy Fuels Corp.
    
	
 
    	
3020 Old Ranch Parkway,   Suite 400
    
	
 
    	
Seal Beach, California   90740
    
	
 
    	
Facsimile:
    
	
 
    	
Attention: President   and Chief Executive Officer
    
	
 
    	
 
    
	
If to Employee:
    	
Peter   J. Grace
    

 

or at such other address as a party may from time to time in writing designate.  Each such notice or other communication shall be effective (i) if given by telecommunication, when transmitted to the applicable number so specified in this Section 7(b) and an appropriate answerback or confirmation of delivery is received, (ii) upon receipt, if given by U.S. certified mail, return receipt requested, addressed as aforesaid, or (iii) one day after being deposited with a reputable overnight courier, addressed as aforesaid.

 

(c)                                  Entire Agreement; Amendments.  This Agreement contains the entire agreement of the Employer and Employee relating to the subject matter hereof.  No amendment or modification of the terms of this Agreement shall be valid unless made in writing and signed by Employee and, on behalf of Employer, by the President and Chief Executive Officer.

 

(d)                                 Waiver.  No failure on the part of Employer or Employee to exercise or to delay in exercising any right hereunder shall be deemed a waiver thereof or of any other right, nor shall any single or partial exercise preclude any further or other exercise of such right or any other right.

 

(e)                                  Attorneys’ Fees in Action on Contract.  If any litigation shall occur between Employee and Employer which arises out of or as a result of this Agreement, or which seeks an interpretation of this Agreement, the prevailing party shall be entitled to recover all costs and expenses of such litigation, including reasonable attorneys’ fees and costs.

 

(f)                                   Confidentiality Proprietary Information.  Employee agrees to not make use of or otherwise disclose, directly or indirectly, any trade secret or other confidential or proprietary information concerning the business (including, but not limited to, its products, employees, services, practices or policies) of Employer or any of its affiliates of which Employee may learn or be aware, except to the extent such use or disclosure is (1) necessary to the performance of this Agreement and reasonably determined by Employee to be in furtherance of Employer’s interests or (2) required by applicable law.  The provisions of this Section 7(f) shall survive the termination, for any reason, of this Agreement.

 

(g)                                  Trade Secrets.  Employee, prior to and during the term of employment has had and will have access to and become acquainted with various trade secrets, consisting of software, plans, formulas, patterns, devices, secret inventions, processes, customer lists, contracts, and compilations of information, records and specifications, which are owned by Employer or by its affiliates and are regularly used in the operation of their respective businesses and which may give Employer an opportunity to obtain an

 

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advantage over competitors who do not know or use such trade secrets.  Employee agrees and acknowledges that Employee has been granted access to these valuable trade secrets only by virtue of the confidential relationship created by Employee’s employment and Employee’s prior relationship to, interest in and fiduciary relationships to, Employer.  Employee shall not disclose any of the aforesaid trade secrets, directly or indirectly, or use them in any way, either during the term of this Agreement or at any time thereafter, except as required in the course of Employee’s employment by Employer hereunder and as Employee may reasonably believe to be for Employer’s benefit.  All records, files, documents, drawings, specifications, software, equipment, and similar items relating to the business of Employer or its affiliates, including, without limitation, all records relating to customers (the “Documents”), whether prepared by Employee or otherwise coming into Employee’s possession, shall remain the exclusive property of Employer or such affiliates and shall not be removed from the premises of Employer or its affiliates under any circumstances whatsoever unless the Documents are being removed by Employee in context of performing the services required herein.  Upon termination of Employee’s employment, Employee agrees to deliver promptly to Employer all Documents in Employee’s possession or under the control of Employee.  The provisions of this Section 7(g) shall survive the termination, for any reason, of this Agreement.

 

(h)                                 No Solicitation.  Employee agrees that, during the period beginning on the date of the termination of his employment with Employer (either voluntarily or involuntarily) and ending on the second (2nd) anniversary of such date (the “Non Solicitation Period’), Employee will not (and Employee will use commercially reasonable efforts to cause his affiliates to not) (i) directly or indirectly, either for Employee or any other person, contact, approach, or solicit for the purpose of offering employment to (whether as an employee, consultant, agent, independent contractor, or otherwise) or actually hire any person employed by Employer or any of its affiliates at any time before termination of Employee’s employment or during the Non Solicitation Period, or (ii) induce or attempt to induce any customer, supplier or other business relation of Employer, or any of its affiliates, to enter into any business relationship which might adversely affect Employer or any of its affiliates whether by working to or actually taking away any customers, business, or patrons of the Employer, or otherwise.  Notwithstanding the foregoing, nothing contained herein shall prevent Employee from dealing with prospective employees or customers who respond to advertisements of general circulation to the public.  The provisions of this Section 7(h) shall survive the termination, for any reason, of this Agreement.

 

(i)                                     Inventions and Patents.  Except as may be limited by Section 2870 of the California Labor Code, all inventions, designs, improvements, patents, copyrights, and discoveries conceived by Employee during the term of this Agreement which are useful in or directly or indirectly related to the business of Employer, or to any experimental work carried on by Employer, shall be the property of Employer.  Employee will promptly and fully disclose to Employer all such inventions, designs, improvements and discoveries (whether developed individually or with other persons) and shall take all steps necessary and reasonably required to assure Employer’s ownership thereof and to assist Employer in protecting or defending Employer’s proprietary rights therein.  Employee acknowledges hereby receipt of written notice from Employer pursuant to Labor Code Section 2870 that this Agreement (to the extent it requires an assignment or offer to assign rights to any invention of Employee) does not apply to an invention which qualifies fully under the provisions of California Labor Code Section 2870.  The provisions of this Section 7(i) shall survive the termination, for any reason, of this Agreement.

 

(j)                                    Place of Employment.  The principal place of employment shall be in Orange County, California, provided, however, that Employee will be expected to travel within and outside the State of California as Employer may reasonably request or as may be required for the proper rendition of services hereunder.

 

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(k)                                 Severability.  If this Agreement shall for any reason be or become unenforceable in any material respect by any party, this Agreement shall thereupon terminate and become unenforceable by the other party as well.  In all other respects, if any provision of this Agreement is held invalid or unenforceable, the remainder of this Agreement shall nevertheless remain in full force and effect, and if any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force and effect in all other circumstances, to the fullest extent permitted by law.

 

(l)                                     Withholding Deductions.  All compensation payable hereunder, including Base Salary and other benefits, shall be subject to applicable taxes, withholdings and other required, normal or elected employee deductions.

 

(m)                             Remedies.  Employee expressly agrees that Employer shall be entitled to the remedies of injunction, specific performance and other equitable relief to prevent any violation of Sections 7(f), 7(g), 7(h) or 7(i) of this Agreement.  This Section 7(m) shall not be construed as a waiver of any other rights or remedies which Employer may have for damages or otherwise.  Any action brought to enforce the provisions set forth in this Section 7(m) shall be brought in the Orange County Superior Court.  Employee, by execution of this Agreement, hereby submits to the jurisdiction of the Orange County Superior Court.

 

(n)                                 Arbitration.  Except as otherwise provided in this Agreement, any controversy or claim arising out of or relating to this Agreement or the breach thereof shall be settled by arbitration in Orange County, California.

 

(i)                                     Judicial Arbitration and Mediation Services.  The arbitration shall be administered by Judicial Arbitration and Mediation Services (“JAMS”) in its Orange County office.

 

(ii)                                  Arbitrator.  The arbitrator shall be a retired superior court judge of the State of California affiliated with JAMS.

 

(iii)                               Provisional Remedies and Appeals.  Each of the parties reserves the right to file with the Orange County Superior Court an application for temporary or preliminary injunctive relief, writ of attachment, writ of possession, temporary protective order and/or appointment of a receiver on the grounds that the arbitration award to which the applicant may be entitled may be rendered ineffectual in the absence of such relief.

 

(iv)                              Enforcement of Judgment.  Judgment upon the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.  The award of the arbitrator shall be binding, final, and nonappealable.

 

(v)                                 Discovery.  The parties may obtain discovery in aid of the arbitration to the fullest extent permitted under law, including California Code of Civil Procedure Section 1283.05.  All discovery disputes shall be resolved by the arbitrator.

 

(vi)                              Consolidation.  Any arbitration hereunder may be consolidated by JAMS with the arbitration of any other dispute arising out of or relating to the same subject matter when the arbitrator determines that there is a common issue of law or fact creating the possibility of conflicting rulings by more than one arbitrator.  Any disputes over which arbitrator shall hear any consolidated matter shall be resolved by JAMS.

 

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(vii)                           Power and Authority of Arbitrator.  The arbitrator shall not have any power to alter, amend, modify or change any of the terms of this Agreement nor to grant any remedy which is either prohibited by the terms of this Agreement or is not available in a court of law.

 

(viii)                        Governing Law.  All questions in respect of procedure to be followed in conducting the arbitration as well as the enforceability of this Agreement to arbitrate which may be resolved by state law shall be resolved according to the laws of the State of California.  Any action brought to enforce the provisions of this section shall be brought in the Orange County Superior Court.  All other questions in respect to this Agreement, including but not limited to the interpretation, enforcement of this Agreement (other than the right to arbitrate), and the rights, duties and liabilities of the parties to this Agreement shall be governed by California law.

 

(o)                                 Waiver of Jury Trial.  In the event that any dispute shall arise between Employee and Employer, and notwithstanding the provisions of Section 7(n), litigation ensues, WITH RESPECT TO ANY LITIGATION ARISING OUT OF THIS AGREEMENT, THE PARTIES EXPRESSLY WAIVE ANY RIGHT THEY MAY HAVE TO A JURY TRIAL AND AGREE THAT ANY SUCH LITIGATION SHALL BE TRIED BY A JUDGE WITHOUT A JURY.

 

(p)                                 Representation By Counsel; Interpretation.  Employer and Employee each acknowledge that each party to this Agreement has been represented by counsel in connection with this Agreement.  Accordingly, any rule of law, including, but not limited to, Section 1654 of the California Civil Code, or any legal decision that would require interpretation of any claimed ambiguities in this Agreement against the party that drafted it, has no application and is expressly waived.  The provisions of this Agreement shall be interpreted in a reasonable manner to affect the intent of the parties.

 

(q)                                 Code Section 409A.

 

(i)                                     General.  It is the intent of Employer and Employee that the payments and benefits under this Agreement shall comply with or be exempt from Code Section 409A, and accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance with or exempt from Code Section 409A.  In no event whatsoever shall Employer be liable for any additional tax, interest or penalty that may be imposed on Employee pursuant to Code Section 409A or for any damages for failing to comply with Code Section 409A.  All references to Code Section 409A shall be interpreted to include Code Section 409A and all regulations and guidance promulgated thereunder.

 

(ii)                                  Reimbursements and In-Kind Benefits.  To the extent any reimbursements or in-kind benefits under this Agreement are subject to Code Section 409A, (A) all such expenses or other reimbursements under this Agreement shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Employee; (B) any right to such reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit; and (C) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year.

 

(iii)                               Offsets.  Notwithstanding any other provision of this Agreement to the contrary, in no event shall any payment under this Agreement that is subject to Code Section 409A be subject to offset, counterclaim, or recoupment by any other amount unless otherwise permitted by Code Section 409A.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.

 

	
 
    	
“EMPLOYER” 
    
	
 
    	
 
    
	
 
    	
CLEAN ENERGY FUELS CORP., a Delaware   corporation 
    
	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Andrew J. Littlefair 
    
	
 
    	
Name: 
    	
Andrew J. Littlefair 
    
	
 
    	
Title: 
    	
President & CEO
    
	
 
    	
 
    	
 
    
	
 
    	
“EMPLOYEE” 
    
	
 
    	
 
    	
 
    
	
 
    	
/s/ Peter J. Grace 
    
	
 
    	
Peter   J. Grace
    

 

SIGNATURE PAGE TO EMPLOYMENT AGREEMENT

 

 

EXHIBIT A

 

RELEASE

 

THIS RELEASE (the “Release”) is being executed and delivered by Peter J. Grace (“Employee”) on                                       , pursuant to that certain Employment Agreement (the “Employment Agreement”), dated as of January 1, 2013, by and between Clean Energy Fuels Corp , a Delaware Corporation (“Employer”), and Employee.

 

Employee, intending to be legally bound and for good and valuable consideration, including that received pursuant to Section 5 of the Employment Agreement, and conditioned upon and subject to the receipt of such consideration, hereby agrees as follows:

 

Employee agrees to fully release and discharge forever Employer, and its agents, employees, officers, directors, trustees, representatives, owners, attorneys, subsidiaries, related corporations, assigns, successors and affiliated organizations (hereafter referred to collectively as the “Released Parties”), and each and all of them, from any and all liabilities claims, causes of action, charges, complaints, obligations, costs, losses, damages, injuries, attorneys’ fees, and other legal responsibilities, of any form whatsoever, whether known or unknown, unforeseen, unanticipated, unsuspected or latent, which Employee or Employee’s heirs, administrators, executors, successors in interest, and/or assigns have incurred or expect to incur, or now own or hold, or have at any time heretofore owned or held, or may at any time own hold or claim to hold by reason of any matter or thing arising from any cause whatsoever prior to the date of Employee’s execution of this Release.

 

Without limiting the generality of the foregoing, Employee agrees to fully release and discharge each and all of the Released Parties from any and all claims, demands, rights, and causes of action that have been or could be alleged against any of said Released Parties (a) in connection with Employee’s employment, the Employment Agreement any prior employment agreement, or the termination of such employment (b) in connection with any and all matters pertaining to Employee’s employment by any of the Released Parties, including, but not limited to, any and all compensation, salaries, wages, bonuses, commissions, overtime, monies, pay, allowances, benefits, sick pay, severance pay, paid leave benefits, penalties, interest, damages, and promises on any and all of the above and (c) under or in connection with the state and federal age discrimination laws.

 

Without limiting the scope of this Release in any way, Employee certifies that this Release constitutes a knowing and voluntary waiver of any and all rights or claims that exist or that Employee has or may claim to have under the Federal Age Discrimination in Employment Act (“ADEA”), as amended by the Older Workers Benefit Protection Act of 1990 (“OWBPA”), which is set forth at 29 U S C § 621 et seq.  This Release does not govern any rights or claims that may arise under the ADEA after the date this Release is signed by Employee.

 

Employee understands and acknowledges that this Release extends to any and all claims including, but not limited to, any alleged (a) violation of the National Labor Relations Act, Title VII of the Civil Rights Act, the Americans With Disabilities Act of 1990, the Fair Labor Standards Act, the Occupational Safety and Health Act, the Consolidated Omnibus Budget Reconciliation Act of 1985; (b) discrimination on the basis of national origin, sex, race, religion, age, disability, marital status, breach of any express or implied employment contract or agreement, wrongful discharge, breach of the implied covenant of good faith and fair dealing, intentional or negligent infliction of emotional distress, misrepresentation, fraud, defamation, interference with prospective economic advantage, failure to pay wages due or other monies owed, and (c) any other violation of any local, state or federal law, regulation or ordinance and/or public policy, contract, or tort or common law claim having any bearing whatsoever

 

A-1

 

on the terms and conditions and/or cessation of employment with any of the Released Parties, including, but not limited to, any allegations for costs, fees, or other expenses, including attorneys’ fees, incurred in any of these matters, which Employee ever had, now has, or may have as of the date of this Release.

 

This Release constitutes written notice that Employee has been advised to consult with an attorney prior to executing this Release and that Employee has been provided a full and ample opportunity to study this Release.  Employee acknowledges Employer has provided Employee at least twenty-one days (or any other time period required by applicable law) within which to review and consider this Release before signing it. Should Employee decide not to use the full twenty-one days (or any other time period required by applicable law), then Employee knowingly and voluntarily waives any claim that Employee was not in fact given that period of time or did not use the entire twenty-one days (or any other time period required by applicable law) to consult an attorney and/or consider this Agreement.  Employee acknowledges that Employee is signing this Release voluntarily with full knowledge that it is intended, to the maximum extent permitted by law, as a complete release and waiver of any and all claims.

 

Employee acknowledges that Employee is aware of Employee’s right to revoke this Release at any time within the seven-day period (or any other time period required by applicable law) following the date this Release is signed by Employee and that this Release shall not become effective or enforceable until the seven-day (or any other time period required by applicable law) revocation period expires. Employee understands and acknowledges that Employee will relinquish any right to the consideration specified in this Release if this right to revoke is exercised.

 

Employee hereby expressly waives all rights and benefits granted to Employee under Section 1542 of the California Civil Code and expressly consents that this Release shall be given full force and effect according to each and all of its express terms and provisions, including those relating to unknown and unsuspected claims as specified herein.  Said section reads as follows:

 

SECTION 1542.  CERTAIN CLAIMS NOT AFFECTED BY GENERAL RELEASE. A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN TO HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR

 

Having been so apprised, Employee nevertheless hereby voluntarily elects to and does waive the rights described in Civil Code Section 1542 and elects to assume all risks for claims specified herein that now exist in Employee’s favor, known or unknown.

 

Employee agrees to waive any right Employee may have to reemployment by any of the Released Parties and agrees that Employee has not and shall not apply for reemployment with Employer or any other Released Parties.

 

Employee understands and acknowledges that, the aforementioned consideration is not to be construed as an admission on the part of Employer or any of the Released Parties of any liability whatsoever and that the Employer and each Released Party denies that it has engaged in any wrongdoing or has any liability whatsoever.

 

Employee declares, covenants; and agrees that Employee has not heretofore, and has not and will not hereafter, sue any of the Released Parties before any court or governmental agency, commission, division or department, whether state, federal, or local, upon any claim, demand, or cause of action released herein.  This provision does not extend to the federal Equal Employment Opportunity Commission except to the extent it may do so under the OWBPA and the regulations issued thereunder.

 

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Employee agrees to indemnify and hold harmless Employer and each of the Released Parties for and against any and all costs, losses or liability whatsoever, including reasonable attorneys’ fees, caused by any action or proceeding, in any state or federal courts or administrative processes, which is brought by Employee or Employee’s successors in interest if such action arises out of, is based upon, or is related to any claim, demand, or cause of action released herein.  This provision does not extend to the federal Equal Employment Opportunity Commission except to the extent it may do so under the OWBPA and the regulations issued thereunder.

 

Employee agrees not to file any charges, including but not limited to any additional or duplicative charges, based on events occurring prior to his date of execution of this Release with any state or federal administrative agency, and further agrees not to institute a lawsuit in any state or federal court, based upon, arising out of, or relating to any claim, demand, or cause of action released herein.  This provision does not extend to the federal Equal Employment Opportunity Commission except to the extent it may do so under the OWBPA and the regulations issued thereunder.

 

Employee understands and agrees that Employee will not, for any reason, disclose to others or use for the benefit of anyone other than the Released Parties any trade secret, confidential or proprietary information, including, but not limited to, information relating to the Released Party’s customers, employees, consultants, affiliates, products, know-how, techniques, computer systems, programs, policies and procedures, research projects, future developments, costs, profits, pricing, and or marketing or customer business information.  Employee further understands and agrees that the use of any material trade secret, confidential or proprietary information belonging to the Released Parties shall be a material breach of this Release.

 

Employee acknowledges that Employee is relying solely upon the contents of this Release and is not relying on any other representations whatsoever of Employer or any other Released Party as an inducement to enter into this agreement and Release.

 

Both Employee and Employer agree not to disparage the other party, the other party’s officers, directors, employees, shareholders and agents, in any manner likely to be harmful to them or their business, business reputation, or personal reputation; provided that both Employee and Employer will respond accurately and fully to any question, inquiry, or request for information when required by legal process.

 

This Release shall be deemed to have been executed and delivered within the State of California, and shall be construed and enforced in accordance with, and governed by, the internal laws of the State of California.  The exclusive venue for any dispute under this Release is the California Superior Court for Orange County.  This Release is the entire Release with respect to the subject matter hereof and supersedes all prior and contemporaneous oral and written releases and discussions.  The captions in this Release are for convenience and reference only and the words contained therein shall in no way be held to explain, modify, amplify or aid in the interpretation, construction or meaning of the provisions of this Release.  This Release and the provisions contained herein shall not be construed or interpreted for or against any person or beneficiary hereof because that person drafted or caused that person’s legal representative to draft any of its provisions.  This Release is binding upon the undersigned’s representatives, successors in interest and assigns.  The provisions of this Release are severable.  Should any provision (or portion thereof) for any reason be held to be unenforceable, the remaining provisions (or portion thereof) shall nonetheless be in full force and effect.  This Release and the provisions hereof cannot be altered or modified by a fully or partially executed oral modification, and further cannot be

 

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altered, modified or otherwise changed in any respect except by a subsequent writing duly executed by all parties hereto or by their authorized representatives.  This Release may be executed in counterparts each of which is equally admissible in evidence, and each executed counterpart shall fully bind each party who has executed it.  A fax copy of this Release may be deemed as an original.

 

THE UNDERSIGNED HAS READ THE FOREGOING RELEASE AND ACCEPTS AND AGREES TO THE PROVISIONS CONTAINED THEREIN, AND HEREBY EXECUTES IT, KNOWINGLY AND VOLUNTARILY, AND WITH FULL UNDERSTANDING OF ITS CONSEQUENCES.

 

IN WITNESS WHEREOF, Employee has duly executed and delivered this Release as of the date first above written.

 

	
 
    	
“EMPLOYEE” 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Peter J. Grace
    

 

A-4Exhibit 10.103

 

Award Number:      

 

CLEAN ENERGY FUELS CORP.

 

AMENDED AND RESTATED 2006 EQUITY INCENTIVE PLAN

 

NOTICE OF STOCK UNIT AWARD

 

Awardee’s Name:

 

You (the “Awardee”) have been granted an award of Stock Units (the “Award”), subject to the terms and conditions of this Notice of Stock Unit Award (the “Notice”), the Clean Energy Fuels Corp. Amended and Restated 2006 Equity Incentive Plan, as amended from time to time (the “Plan”) and the Stock Unit Agreement (the “Agreement”) attached hereto, as follows.  Unless otherwise provided herein, the terms in this Notice shall have the same meaning as those defined in the Plan.

 

Award Number                                                                                                                                                                                                 

 

Grant Date                                                                                                                                                                                                                        

 

Total Number of Stock
 Units Awarded (the “Units”)                                                                                                                             

 

Vesting Completion Date                                                                                                                                            

 

Vesting Schedule:

 

Subject to the Awardee’s not ceasing to be a Service Provider and other limitations set forth in this Notice, the Agreement and the Plan, the Units will “vest” in accordance with the following schedule (the “Vesting Schedule”):

 

34% of the Units will vest on                       .  An additional 33% of the Units will vest on                        and                         , respectively.

 

Notwithstanding the foregoing, if the Awardee ceases to be a Service Provider prior to the Vesting Completion Date as a result of the Awardee’s Termination of Service by the Company or any Affiliate, in each case, without Cause, one hundred percent (100%) of the Units will vest immediately prior to such Termination of Service.

 

Notwithstanding the foregoing, in the event of the Awardee’s Termination of Service due to death or Disability prior to the Vesting Completion Date, one hundred percent (100%) of the Units will vest immediately prior to such Termination of Service.

 

Notwithstanding the foregoing, immediately prior to, and contingent upon, the occurrence of a Change in Control prior to the Vesting Completion Date, one hundred percent (100%) of the Units that are not Assumed or Replaced will vest.

 

Notwithstanding the foregoing, in the event of a Change in Control prior to the Vesting Completion Date, for the Units that are Assumed or Replaced, such Units shall become fully vested immediately upon the first to occur of (i) the Awardee ceasing to be a Service Provider as a result of the Awardee’s Termination of Service by the successor company, the Company or any

 

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Affiliate without Cause within twelve (12) months after the Change in Control and (ii) the Awardee terminating his or her service to the successor company, the Company or any Affiliate as a Service Provider for Good Reason within twelve (12) months after the Change in Control.

 

The following terms have the following definitions:

 

“Assumed” means that pursuant to a Change in Control either (i) the Award is expressly affirmed by the Company or (ii) the contractual obligations represented by the Award are expressly assumed (and not simply by operation of law) by the successor entity or its parent entity in connection with the Change in Control with appropriate adjustments to the number and type of securities of the successor entity or its parent entity subject to the Award which at least preserves the compensation element of the Award existing at the time of the Change in Control as determined in accordance with the instruments evidencing the agreement to assume the Award.

 

“Cause” means, with respect to the Awardee’s Termination of Service by the Company or an Affiliate, that such termination is for “Cause” as such term (or word of like import) is expressly defined in a then-effective written agreement between the Awardee and the Company or such Affiliate, or in the absence of such then-effective written agreement and definition, is based on, in the determination of the Administrator, the Awardee’s:  (i) performance of any act or failure to perform any act in bad faith and to the detriment of the Company or an Affiliate; (ii) dishonesty, intentional misconduct or material breach of any agreement with the Company or an Affiliate; or (iii) commission of a crime involving dishonesty, breach of trust, or physical or emotional harm to any person; provided, however, that with regard to any agreement that defines “Cause” on the occurrence of or in connection with a Change in Control, such definition of “Cause” shall not apply until a Change in Control actually occurs.

 

“Good Reason” means, with respect to the Awardee’s termination of his or her service as a Service Provider, that such termination is for “Good Reason” as such term (or words of like import) is used in a then-effective written agreement between the Awardee and the Company, the successor entity or the parent entity of either of them, or in the absence of such then-effective written agreement and definition, is based on a material dimunition of either the Awardee’s duties or base annual salary.

 

“Replaced” means that pursuant to a Change in Control the Award is replaced with a comparable stock award or a cash incentive program of the Company, the successor entity (if applicable) or the parent entity of either of them which preserves the compensation element of such Award existing at the time of the Change in Control and provides for subsequent payout in accordance with the same (or a more favorable) vesting schedule applicable to such Award.  The determination of Award comparability shall be made by the Administrator and its determination shall be final, binding and conclusive.

 

In the event of any authorized leave of absence that exceeds six (6) months, and a return to service upon expiration of such leave is not guaranteed by statute or contract, then (a) the Awardee’s Termination of Service shall be deemed to occur on the first date following such six-month period and (b) the Awardee will forfeit the Units that are unvested on the date of the Awardee’s Termination of Service.  An authorized leave of absence shall include sick leave,

 

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military leave, or other bona fide leave of absence (such as temporary employment by the government).  Notwithstanding the foregoing, with respect to a leave of absence (prior to the Awardee’s Termination of Service due to Disability) due to any medically determinable physical or mental impairment of the Awardee that can be expected to result in death or can be expected to last for a continuous period of not less than six (6) months, where such impairment causes the Awardee to be unable to perform the duties of the Awardee’s position of employment or substantially similar position of employment, a twenty-nine (29) month period of absence shall be substituted for such six (6) month period above.

 

For purposes of this Notice and the Agreement, the term “vest” shall mean, with respect to any Units, that such Units are no longer subject to forfeiture to the Company.

 

Except as otherwise provided in this Notice or a then-effective written agreement between the Awardee and the Company or an Affiliate, vesting shall cease upon the Termination of Service of the Awardee for any reason, including death or Disability.  Except as otherwise provided in this Notice or a then-effective written agreement between the Awardee and the Company or an Affiliate, in the event of the Termination of Service of the Awardee for any reason, including death or Disability, any unvested Units held by the Awardee immediately upon such Termination of Service shall be forfeited and deemed reconveyed to the Company and the Company shall thereafter be the legal and beneficial owner of such reconveyed Units and shall have all rights and interest in or related thereto without further action by the Awardee.

 

IN WITNESS WHEREOF, the Company and the Awardee have executed this Notice and agree that the Award is to be governed by the terms and conditions of this Notice, the Plan, and the Agreement.

 

	
 
    	
CLEAN   ENERGY FUELS CORP.
    
	
 
    	
a   Delaware corporation
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
 
    

 

THE AWARDEE ACKNOWLEDGES AND AGREES THAT THE UNITS SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE AWARDEE’S CONTINUOUS SERVICE AS A SERVICE PROVIDER OR AS OTHERWISE SPECIFICALLY PROVIDED HEREIN (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THIS AWARD OR ACQUIRING SHARES HEREUNDER).  THE AWARDEE FURTHER ACKNOWLEDGES AND AGREES THAT NOTHING IN THIS NOTICE, THE AGREEMENT, NOR IN THE PLAN, SHALL CONFER UPON THE AWARDEE ANY RIGHT WITH RESPECT TO CONTINUATION OF THE AWARDEE’S CONTINUOUS SERVICE AS A SERVICE PROVIDER, NOR SHALL IT INTERFERE IN ANY WAY WITH THE AWARDEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE THE AWARDEE’S CONTINUOUS SERVICE AS A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE.  THE AWARDEE ACKNOWLEDGES THAT UNLESS THE AWARDEE HAS A WRITTEN EMPLOYMENT AGREEMENT WITH THE COMPANY TO THE CONTRARY, THE AWARDEE’S STATUS IS AT WILL.

 

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Awardee Acknowledges and Agrees:

 

The Awardee acknowledges receipt of a copy of the Plan and the Agreement and represents that he or she is familiar with the terms and provisions thereof, and hereby accepts the Award subject to all of the terms and provisions hereof and thereof.  The Awardee has reviewed this Notice, the Agreement and the Plan in their entirety, has had an opportunity to obtain the advice of counsel prior to executing this Notice and fully understands all provisions of this Notice, the Agreement and the Plan.  The Awardee further agrees and acknowledges that this Award is a non-elective arrangement pursuant to Section 409A of the Code.

 

The Awardee further acknowledges that, from time to time, the Company may be in a “blackout period” and/or subject to applicable federal securities laws that could subject the Awardee to liability for engaging in any transaction involving the sale of the Company’s Shares.  The Awardee further acknowledges and agrees that, prior to the sale of any Shares acquired under this Award, it is the Awardee’s responsibility to determine whether or not such sale of Shares will subject the Awardee to liability under insider trading rules or other applicable federal securities laws.

 

The Awardee acknowledges receipt of paper copies of the Notice, the Agreement, the Plan and the Plan prospectus (collectively, the “Plan Documents”) and acknowledges that the Awardee is familiar with and accepts the Award subject to the terms and provisions of the Plan Documents.

 

The Company may, in its sole discretion, decide to deliver any Plan Documents by electronic means or request the Awardee’s consent to participate in the Plan by electronic means.  The Awardee hereby consents to receive such documents by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained by the Company or a third party designated by the Company.

 

The Awardee hereby agrees that all questions of interpretation and administration relating to this Notice, the Plan and the Agreement shall be resolved by the Administrator in accordance with Section 8 of the Agreement.  The Awardee further agrees to the venue and jurisdiction selection in accordance with Section 9 of the Agreement.  The Awardee further agrees to notify the Company upon any change in his or her residence address indicated in this Notice.

 

	
 
    	
 
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Awardee’s   Signature
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Awardee’s   Printed Name:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Address:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
City,   State & Zip:
    	
 
    
							

 

4

 

CLEAN ENERGY FUELS CORP.

 

AMENDED AND RESTATED 2006 EQUITY INCENTIVE PLAN

 

STOCK UNIT AGREEMENT

 

1.                                      Issuance of Units.  Clean Energy Fuels Corp., a Delaware corporation (the “Company”), hereby issues to the Awardee (the “Awardee”) named in the Notice of Stock Unit Award (the “Notice”) an award (the “Award”) of the Total Number of Stock Units Awarded set forth in the Notice (the “Units”), subject to the Notice, this Stock Unit Agreement (the “Agreement”) and the terms and provisions of the Clean Energy Fuels Corp. Amended and Restated 2006 Equity Incentive Plan, as amended from time to time (the “Plan”), which is incorporated herein by reference.  Unless otherwise provided herein, the terms in this Agreement shall have the same meaning as those defined in the Plan.

 

2.                                      Transfer Restrictions.  The Units may not be transferred in any manner other than by will or by the laws of descent and distribution.

 

3.                                      Conversion of Units and Issuance of Shares.

 

(a)                                 General.  Subject to Sections 3(b) and 3(c), one share of Common Stock shall be issuable for each Unit subject to the Award (the “Shares”) upon vesting.  Immediately thereafter, or as soon as administratively feasible, the Company will deliver the appropriate number of Shares to the Awardee after satisfaction of any required tax or other withholding obligations.  Any fractional Unit remaining after the Award is fully vested shall be discarded and shall not be converted into a fractional Share.  Notwithstanding the foregoing, the relevant number of Shares shall be delivered to the Awardee no later than March 15th of the year following the calendar year in which the Award vests.  The Company may however, in its sole discretion, make a cash payment in lieu of the issuance of the Shares in an amount equal to the value of one share of Common Stock multiplied by the number of Units subject to the Award.

 

(b)                                 Delay of Conversion.  The conversion of the Units into the Shares under Section 3(a) above, shall be delayed in the event the Company reasonably anticipates that the issuance of the Shares would constitute a violation of federal securities laws or other Applicable Law.  If the conversion of the Units into the Shares is delayed by the provisions of this Section 3(b), the conversion of the Units into the Shares shall occur at the earliest date at which the Company reasonably anticipates issuing the Shares will not cause a violation of federal securities laws or other Applicable Law.  For purposes of this Section 3(b), the issuance of Shares that would cause inclusion in gross income or the application of any penalty provision or other provision of the Code is not considered a violation of Applicable Law.

 

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(c)                                  Delay of Issuance of Shares.  The Company shall delay the delivery of any Shares under this Section 3 to the extent necessary to comply with Section 409A(a)(2)(B)(i) of the Code (relating to payments made to certain “specified employees” of certain publicly-traded companies); in such event, any Shares to which the Awardee would otherwise be entitled during the six (6) month period following the date of the Termination of Service of the Awardee will be delivered on the first business day following the expiration of such six (6) month period.

 

4.                                      Right to Shares.  Notwithstanding anything to the contrary in the Plan, the Awardee shall not have any right in, to or with respect to any of the Shares (including any voting rights or rights with respect to dividends paid on the Common Stock) issuable under the Award until the Award is settled by the issuance of such Shares to the Awardee.

 

5.                                      Taxes.

 

(a)                                 Tax Liability.  The Awardee is ultimately liable and responsible for all taxes owed by the Awardee in connection with the Award, regardless of any action the Company or any Affiliate takes with respect to any tax withholding obligations that arise in connection with the Award.  Neither the Company nor any Affiliate makes any representation or undertaking regarding the treatment of any tax withholding in connection with any aspect of the Award, including the grant, vesting, assignment, release or cancellation of the Units, the delivery of Shares, the subsequent sale of any Shares acquired upon vesting and the receipt of any dividends or dividend equivalents.  The Company does not commit and is under no obligation to structure the Award to reduce or eliminate the Awardee’s tax liability.

 

(b)                                 Payment of Withholding Taxes.  Prior to any event in connection with the Award (e.g., vesting) that the Company determines may result in any tax withholding obligation, whether United States federal, state, local or non-U.S., including any social insurance, employment tax, payment on account or other tax-related obligation (the “Tax Withholding Obligation”), the Awardee must arrange for the satisfaction of the minimum amount of such Tax Withholding Obligation in a manner acceptable to the Company.

 

(i)                                     By Share Withholding.  Unless the Awardee determines to satisfy the Tax Withholding Obligation by some other means in accordance with clause (ii) below, the Company shall withhold from those Shares otherwise issuable to the Awardee the whole number of Shares sufficient to satisfy the minimum applicable Tax Withholding Obligation.  The Awardee acknowledges that the withheld Shares may not be sufficient to satisfy the Awardee’s minimum Tax Withholding Obligation.  Accordingly, the Awardee agrees to pay to the Company or any Affiliate as soon as practicable, including through additional payroll withholding, any amount of the Tax Withholding Obligation that is not satisfied by the withholding of Shares described above.

 

(ii)                                  By Check, Wire Transfer or Other Means. At any time not less than five (5) business days (or such fewer number of business days as determined by the Administrator) before any Tax Withholding Obligation arises (e.g., a vesting date), the Awardee may elect to satisfy the Awardee’s Tax Withholding Obligation by delivering to the Company an

 

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amount that the Company determines is sufficient to satisfy the Tax Withholding Obligation by (x) wire transfer to such account as the Company may direct, (y) delivery of a certified check payable to the Company, or (z) such other means as specified from time to time by the Administrator.

 

Notwithstanding the foregoing, the Company or an Affiliate also may satisfy any Tax Withholding Obligation by offsetting any amounts (including, but not limited to, salary, bonus and severance payments) payable to the Awardee by the Company and/or an Affiliate.  Furthermore, in the event of any determination that the Company has failed to withhold a sum sufficient to pay all withholding taxes due in connection with the Award, the Awardee agrees to pay the Company the amount of such deficiency in cash within five (5) days after receiving a written demand from the Company to do so, whether or not the Awardee is an employee of the Company at that time.

 

6.              Entire Agreement; Governing Law.  The Notice, the Plan and this Agreement constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Awardee with respect to the subject matter hereof, and may not be modified adversely to the Awardee’s interest except by means of a writing signed by the Company and the Awardee.  These agreements are to be construed in accordance with and governed by the internal laws of the State of Delaware without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of Delaware to the rights and duties of the parties.  Should any provision of the Notice or this Agreement be determined to be illegal or unenforceable, the other provisions shall nevertheless remain effective and shall remain enforceable.

 

7.                                      Construction.  The captions used in the Notice and this Agreement are inserted for convenience and shall not be deemed a part of the Award for construction or interpretation.  Except when otherwise indicated by the context, the singular shall include the plural and the plural shall include the singular.  Use of the term “or” is not intended to be exclusive, unless the context clearly requires otherwise.

 

8.                                      Administration and Interpretation.  Any question or dispute regarding the administration or interpretation of the Notice, the Plan or this Agreement shall be submitted by the Awardee or by the Company to the Administrator.  The resolution of such question or dispute by the Administrator shall be final and binding on all persons.

 

9.                                      Venue and Jurisdiction.  The parties agree that any suit, action, or proceeding arising out of or relating to the Notice, the Plan or this Agreement shall be brought exclusively in the United States District Court for the State of Delaware (or should such court lack jurisdiction to hear such action, suit or proceeding, in a Delaware state court and that the parties shall submit to the jurisdiction of such court.  The parties irrevocably waive, to the fullest extent permitted by law, any objection the party may have to the laying of venue for any such suit, action or proceeding brought in such court.  If any one or more provisions of this Section 9 shall for any reason be held invalid or unenforceable, it is the specific intent of the parties that such provisions shall be modified to the minimum extent necessary to make it or its application valid and enforceable.

 

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10.                               Notices.  Any notice required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery, upon deposit for delivery by an internationally recognized express mail courier service or upon deposit in the United States mail by certified mail (if the parties are within the United States), with postage and fees prepaid, addressed to the other party at its address as shown in these instruments, or to such other address as such party may designate in writing from time to time to the other party.

 

11.                               Nature of Award.  In accepting the Award, the Awardee acknowledges and agrees that:

 

(a)                                 the Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan and this Agreement;

 

(b)                                 the Award is voluntary and occasional and does not create any contractual or other right to receive future awards of Units, or benefits in lieu of Units, even if Units have been awarded repeatedly in the past;

 

(c)                                  all decisions with respect to future awards, if any, will be at the sole discretion of the Company;

 

(d)                                 the Awardee’s participation in the Plan is voluntary;

 

(e)                                  the Awardee’s participation in the Plan shall not create a right to any employment with the Awardee’s employer and shall not interfere with the ability of the Company or the employer to terminate the Awardee’s employment relationship, if any, at any time;

 

(f)                                   the Award is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement or welfare benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Affiliate;

 

(g)                                  in the event that the Awardee is not an Employee of the Company or any Affiliate, the Award and the Awardee’s participation in the Plan will not be interpreted to form an employment or service contract or relationship with the Company or any Affiliate;

 

(h)                                 the future value of the underlying Shares is unknown and cannot be predicted with certainty;

 

(i)                                     in consideration of the Award, no claim or entitlement to compensation or damages shall arise from termination of the Award or diminution in value of the Award or

 

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Shares acquired upon vesting of the Award, resulting from Termination of Service of the Awardee by the Company or any Affiliate (for any reason whatsoever and whether or not in breach of local labor laws) and in consideration of the grant of the Award, the Awardee irrevocably releases the Company and any Affiliate from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by signing the Notice, the Awardee shall be deemed irrevocably to have waived his or her right to pursue or seek remedy for any such claim or entitlement;

 

(j)                                    except as otherwise provided in the Notice, the Agreement or any other written agreement between the Awardee and the Company, in the event of the Termination of Service of the Awardee (whether or not in breach of local labor laws), the Awardee’s right to receive Awards under the Plan and to vest in such Awards, if any, will terminate effective as of the date that the Awardee is no longer providing services and will not be extended by any notice period mandated under local law (e.g., providing services would not include a period of “garden leave” or similar period pursuant to local law); furthermore, in the event of the Termination of Service of the Awardee (whether or not in breach of local labor laws), the Administrator shall have the exclusive discretion to determine when the Awardee is no longer providing services for purposes of this Award;

 

(k)                                 the Company is not providing any tax, legal or financial advice, nor is the Company making any recommendations regarding the Awardee’s participation in the Plan or the Awardee’s acquisition or sale of the underlying Shares; and

 

(l)                                     the Awardee is hereby advised to consult with the Awardee’s own personal tax, legal and financial advisers regarding the Awardee’s participation in the Plan before taking any action related to the Plan.

 

12.                               Data Privacy.

 

(a)                                 The Awardee hereby explicitly and unambiguously consents to the collection, use and transfer, in electronic or other form, of the Awardee’s personal data as described in the Notice and this Agreement by and among, as applicable, the Awardee’s employer, the Company and any Affiliate for the exclusive purpose of implementing, administering and managing the Awardee’s participation in the Plan.

 

(b)                                 The Awardee understands that the Company and the Awardee’s employer may hold certain personal information about the Awardee, including, but not limited to, the Awardee’s name, home address and telephone number, date of birth, social insurance or other identification number, salary, nationality, job title, any Shares or directorships held in the Company, details of all Units or any other entitlement to Shares awarded, canceled, vested, unvested or outstanding in the Awardee’s favor, for the exclusive purpose of implementing, administering and managing the Plan (“Data”).

 

(c)                                  The Awardee understands that Data will be transferred to any third party assisting the Company with the implementation, administration and management of the Plan.

 

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The Awardee understands that the recipients of the Data may be located in the Awardee’s country, or elsewhere, and that the recipients’ country may have different data privacy laws and protections than the Awardee’s country.  The Awardee understands that the Awardee may request a list with the names and addresses of any potential recipients of the Data by contacting the Awardee’s local human resources representative.  The Awardee authorizes the Company and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose of implementing, administering and managing the Awardee’s participation in the Plan.  The Awardee understands that Data will be held only as long as is necessary to implement, administer and manage the Awardee’s participation in the Plan.  The Awardee understands that the Awardee may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by contacting in writing the Awardee’s local human resources representative.  The Awardee understands, however, that refusal or withdrawal of consent may affect the Awardee’s ability to participate in the Plan.  For more information on the consequences of the Awardee’s refusal to consent or withdrawal of consent, the Awardee understands that the Awardee may contact the Awardee’s local human resources representative.

 

13.                               Language.  If the Awardee has received this Agreement or any other document related to the Plan translated into a language other than English and if the translated version is different than the English version, the English version will control, unless otherwise prescribed by Applicable Law.

 

14.                               Amendment and Delay to Meet the Requirements of Section 409A.  The Awardee acknowledges that the Company, in the exercise of its sole discretion and without the consent of the Awardee, may amend or modify this Agreement in any manner and delay the issuance of any Shares issuable pursuant to this Agreement to the minimum extent necessary to meet the requirements of Section 409A of the Code as amplified by any Treasury regulations or guidance from the Internal Revenue Service as the Company deems appropriate or advisable.  In addition, the Company makes no representation that the Award will comply with Section 409A of the Code and makes no undertaking to prevent Section 409A of the Code from applying to the Award or to mitigate its effects on any deferrals or payments made in respect of the Units.  The Awardee is encouraged to consult a tax adviser regarding the potential impact of Section 409A of the Code.

 

END OF AGREEMENT

 

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