Document:

EX-10.1

Exhibit 10.1

EQUITY PURCHASE AGREEMENT

     THIS EQUITY PURCHASE AGREEMENT (this “Agreement”) is made as of July 10, 2008, between
Lime Energy Co., a Delaware corporation (“Company”), and Duke Ventures, LLC,
formerly known as Cinergy Ventures, LLC (“Purchaser”).

RECITALS

     Purchaser, an existing shareholder of the Company, loaned $150,000 to a subsidiary of the
Company, Maximum Performance Group, Inc., pursuant to a demand note dated March 26, 2005 (the
“Note”).

     Purchaser has expressed an interest in acquiring additional stock of the Company and proposes
to pay for such stock by applying the principal and accrued interest under the Note, which totals
$200,372.52 as of the date of this Agreement.

     The Purchaser has agreed to pay $6.10 per share for the additional stock, which is the opening
price on The Nasdaq Capital Market on the date of this Agreement.

     The Company and Purchaser desire to enter into an agreement pursuant to which Purchaser will
commit to purchase (using the Note Proceeds), and the Company will commit to sell, 32,848 shares of
the Company’s common stock, par value $0.0001 per share (“Common Stock”) in exchange for
cancellation of the Note. All of such shares of Common Stock are referred to herein as the
“Shares.”

     The parties hereto agree as follows:

     1. Share Purchase. Upon execution of this Agreement, Purchaser will purchase, and the
Company will sell, 32,848 shares of Common Stock for $200,372.52, or $6.10 per share. The Company
will deliver to Purchaser a certificate representing the Shares, and Purchaser hereby acknowledges
that effective upon such issuance of shares the Note will be cancelled in full satisfaction of the
purchase price for the Shares.

     2. Representations and Warranties of Purchaser. In connection with the purchase and
sale of the Shares pursuant hereto, Purchaser represents and warrants to the Company that:

     (a) Purchaser is acquiring the Shares for its own account with the present intention of
holding such securities for purposes of investment, and has no intention of selling such securities
in a public distribution in violation of the federal securities laws. Each certificate for the
Stock shall be imprinted with a legend in substantially the following form:

“THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933. THE SHARES HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE
SOLD,

 

 

TRANSFERRED, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SHARES UNDER THE SECURITIES ACT OF 1933 OR AN OPINION OF COUNSEL
THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.”

     (b) Purchaser has received all the information such Purchaser considers necessary or
appropriate for deciding whether to acquire the Shares. Purchaser further represents that
Purchaser has had an opportunity to ask questions and receive answers from the Company regarding
the terms and conditions of the Shares and the business, properties, prospects and financial
condition of the Company.

     (c) Purchaser is an “accredited investor” as such term is defined in Regulation D of the
Securities Act of 1933.

     (d) Purchaser understands that the Shares are not currently being registered under the
Securities Act by reason of the contemplated issuance in a transaction exempt from registration and
prospectus delivery requirements of the Securities Act pursuant to Regulation D and/or Section 4(2)
thereof.

     (e) All corporate action on the part of the Company, its officers, directors and stockholders
necessary for the authorization of this Agreement, the performance of all obligations of the
Company hereunder and the authorization, sale, issuance and delivery of the Shares pursuant hereto
has been taken. This Agreement, when executed and delivered, will be the valid and binding
obligation of the Company, enforceable in accordance with its terms, except as limited by (i)
applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application
affecting enforcement of creditors’ rights and (ii) general principles of equity that restrict the
availability of equitable remedies.

     3. Representations and Warranties of Company. In connection with the purchase and
sale of the Shares pursuant hereto, the Company represents and warrants to Purchaser that:

     (a) Organization and Authority. The Company is a corporation duly formed, validly
existing and in good standing under the laws of the State of Delaware. The Company has all
requisite corporate power and authority to carry out the transactions contemplated by this
Agreement.

     (b) Due Authorization; Binding Obligations. All corporate action on the part of the
Company, its officers, directors and stockholders necessary for the authorization of this
Agreement, the performance of all obligations of the Company hereunder and the authorization, sale,
issuance and delivery of the Shares pursuant hereto has been taken. This Agreement, when executed
and delivered, will be the valid and binding obligation of the Company, enforceable in accordance
with its terms, except as limited by (i) applicable bankruptcy, insolvency, reorganization,
moratorium or other laws of general application affecting enforcement of creditors’ rights and (ii)
general principles of equity that restrict the availability of equitable remedies. The sale of the
Shares is not and will not be subject to any preemptive rights or rights of first refusal that have
not been properly waived or complied with.

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     (c) Ownership and Qualification. The Company has all requisite corporate power and
authority to own and operate its properties and assets, to execute and deliver this Agreement, to
issue and sell the Shares and to carry out the provisions of this Agreement and the Stockholders
Agreement (as defined below) and to carry on its business as presently conducted and as presently
proposed to be conducted. The Company is duly qualified and is authorized to do business and is in
good standing as a foreign corporation in all jurisdictions in which the nature of its activities
and of its properties (both owned and leased) makes such qualification necessary, except for those
jurisdictions in which failure to do so would not have a material adverse effect on the Company’s
business, properties, assets, results of operations or financial condition.

     (d) Duly Authorized Shares. On the date hereof, the Company shall transfer to
Purchaser good title to the Shares, validly issued and nonassessable, free and clear of all claims,
pledges, security interests, liens, charges, encumbrances, options, proxies, voting trusts or
agreements and other restrictions and limitations of any kind, other than applicable federal and
state securities law restrictions.

     4. Cancellation of the Note. Contemporaneously with the execution of this Agreement,
Purchaser will delivery the originally copy of the Note to the Company, which will be marked
“CANCELLED.”

     5. Notices. All notices, requests, demands or other communications (“Notices”)
required to be given pursuant to this Agreement by any party shall be in writing and shall be
delivered by (a) certified mail, postage prepaid, return receipt requested, (b) commercial
overnight courier service with signature required for delivery, or (c) electronic mail (with
confirmation of successful transmission). If the Notice is given by mail or courier service,
delivery shall be evidenced by the certified mail return receipt, or the commercial courier’s
standard method of confirming delivery. If the Notice is sent by electronic mail, delivery shall
be conclusively deemed made the first business day following successful transmission. Notices
shall be provided to the following addresses (any of which may be changed upon like notice to the
other party to this Agreement).

     If to the Company:

Lime Energy Co.

1280 Landmeier Road

Elk Grove Village, Illinois 60007

Attention: Jeffrey Mistarz

Telephone No.: 847.437.1666

Email to jmistarz@lime-energy.com

     If to the Purchaser, at the address set forth following Purchaser’s signature.

3

 

     6. General Provisions.

     (a) Severability. Whenever possible, each provision of this Agreement will be
interpreted in such manner as to be effective and valid under applicable law, but if any provision
of this Agreement is held to be invalid, illegal or unenforceable in any respect under any
applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will
not affect any other provision or any other jurisdiction, but this Agreement will be reformed,
construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision
had never been contained herein.

     (b) Complete Agreement. This Agreement embodies the complete agreement and
understanding among the parties with respect to the subject matter hereof and supersedes and
preempts any prior understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

     (c) Counterparts. This Agreement may be executed in separate counterparts, each of
which is deemed to be an original and all of which taken together constitute one and the same
agreement.

     (d) Successors and Assigns. Except as otherwise provided herein, this Agreement shall
bind and inure to the benefit of, and be enforceable by, Purchaser, the Company, and their
respective successors and assigns.

     (e) Choice of Law. All questions concerning the construction, validity and
interpretation of this Agreement will be governed by and construed in accordance with the internal
laws of the State of New York, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of New York or any other jurisdiction) that would cause the
application of the laws of any jurisdiction other than the State of New York.

     (f) Remedies. Each of the parties to this Agreement will be entitled to enforce its
rights under this Agreement specifically, to recover damages and costs (including attorney’s fees)
caused by any breach of any provision of this Agreement and to exercise all other rights existing
in its favor. The parties hereto agree and acknowledge that money damages may not be an adequate
remedy for any breach of the provisions of this Agreement and that any party may in its sole
discretion apply to any court of law or equity of competent jurisdiction (without posting any bond
or deposit) for specific performance and/or other injunctive relief in order to enforce or prevent
any violations of the provisions of this Agreement.

     (g) Amendment and Waiver. The provisions of this Agreement may be amended and waived
only with the prior written consent of the Company and Purchaser. No cause of conduct or failure
or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

     (h) Business Days. If any time period for giving notice or taking action hereunder
expires on a day which is a Saturday, Sunday or holiday in Chicago, Illinois, the time period shall
be automatically extended to the business day immediately following such Saturday, Sunday or
holiday.

4

 

     (i) Waiver of Jury Trial. Each of the parties hereto hereby irrevocably waives any
and all right to trial by jury of any claim or cause of action in any legal proceeding arising out
of or related to this Agreement or the transactions or events contemplated hereby or any course of
conduct, course of dealing, statements (whether verbal or written) or actions of any party hereto.
The parties hereto each agree that any and all such claims and causes of action shall be tried by a
court trial without a jury. Each of the parties hereto further waives any right to seek to
consolidate any such legal proceeding in which a jury trial has been waived with any other legal
proceeding in which a jury trial cannot or has not been waived.

[The next page is the signature page.]

********************

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

	 	 	 	 	 
	 	COMPANY:

Lime Energy Co.

 	 
	 	By:  	/s/ Jeffrey Mistarz
 	 
	 	Name:  	Jeffrey Mistarz 	 
	 	Its: 	              Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	PURCHASER:

Duke Ventures, LLC
(formerly known as 

Cinergy Ventures, LLC)

 	 
	 	By:  	/s/ Greg Wolf
 	 
	 	Name:  	Greg Wolf 	 
	 	Its: 	           President 	 
	 

	 	 	 	 	 
	 	Purchaser’s Address for Notices:

 	 
	 	
 	 
	 	
 	 
	 	Tel: 	
 	 
	 	Fax: 	
 	 
	 

6EX-10.1 THIRD AMENDMENT TO STOCKHOLDERS AGREEMENT

Exhibit 10.1

THIRD AMENDMENT TO STOCKHOLDERS’ AGREEMENT

     THIS
AGREEMENT is made and entered into effective as of the 15th day of July, 2008, by and
between Spheris Holding III, Inc. (hereinafter referred to as the “Company”), Spheris Investment
LLC, the Warburg Investors and the TowerBrook Investors (f/k/a Soros Investors). Capitalized terms
used herein without definition elsewhere in this Amendment are defined in Section 17 of the
Stockholders’ Agreement (as defined below).

W I T N E S S E T H :

     WHEREAS, the Company, the Warburg Investors, the TowerBrook Investors and Spheris Investment
LLC have previously entered into a Stockholders’ Agreement, dated November 5, 2004 as amended by
that certain First Amendment to Stockholders’ Agreement, dated August 17, 2006, and that certain
Second Amendment to Stockholders’ Agreement, dated May 2, 2007 (the “Stockholders’ Agreement”);

     WHEREAS, the Company, Spheris Investment LLC, the Warburg Investors and the TowerBrook
Investors wish to modify and amend the Stockholders’ Agreement according to the terms set forth
herein.

     NOW, THEREFORE, in consideration of the premises and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company, the Warburg Investors and
the TowerBrook Investors do hereby agree as follows:

     1. Paragraph 3.1 of the Stockholders’ Agreement is hereby deleted in its entirety and amended
and restated as follows:

     “As of the date hereof, the Board of Directors of the Company (the “Board”) shall consist of
Jonathan Bilzin, Wayne Smith, Neal Moszkowski, Steven Simpson, Michael King, Robert Z. Hensley and
John A. Kane. From and after the date hereof, the Investors and the Company shall take all action
within their respective power, including but not limited to, the voting of all Shares Owned by
them, required to cause the Board to consist of no more than nine (9) members, and at all times
throughout the term of this Agreement, to include:

(a) at the option of the Warburg Investors, for as long as the Warburg Investors Own at
least twenty percent (20%) of the Common Stock Owned by Investors, two (2) members
designated by Warburg Pincus and, for as long as the Warburg Investors Own at least five
percent (5%) but less than twenty percent (20%) of the Common Stock Owned by Investors, one
(1) member designated by Warburg Pincus (such members referred to herein as “Warburg
Directors” and each a “Warburg Director”);

(b) for as long as the TowerBrook Investors Own at least twenty percent (20%) of the Common
Stock Owned by Investors, two (2) members designated by the TowerBrook Investors and, for as
long as the TowerBrook Investors Own at least five percent (5%) but less than twenty percent
(20%) of the Common Stock Owned by Investors, one (1)

 

 

member designated by the TowerBrook Investors (such members referred to herein as
“TowerBrook Directors” and each a “TowerBrook Director”);

(c) one (1) member of management who shall be the Chief Executive Officer of the Company
then in office (the “Management Director”);

(d) four (4) independent members selected by the Majority Warburg Investors and the Majority
TowerBrook Investors (such members referred to herein as “Independent Directors” and each an
“Independent Director”).

     The parties hereto acknowledge that the four representatives to be designated by the Warburg
Investors and the TowerBrook Investors are the directors that the holders of Preferred Stock are
entitled to elect under the Restated Certificate. The parties hereto further acknowledge that as
of the date hereof there are no Warburg Directors, the TowerBrook Directors shall be Jonathan
Bilzin and Neal Moszkowski, the Management Director shall be Steven Simpson and the Independent
Directors shall be Wayne Smith, Robert Z. Hensley, John A. Kane and Michael King. In addition,
subject to the ownership requirements set forth in paragraphs (a) and (b) of this Section 3.1, the
Warburg Investors, on the one hand, and the TowerBrook Investors, on the other hand, shall be
entitled to designate an equal number of directors.”.

     2. Paragraph 3.3 of the Stockholders’ Agreement is hereby amended as follows:

     (i) by inserting the words “, at the option of the Majority Warburg Investors,” after the
words “any such committee shall have,” and

     (ii) by inserting the words “, at the option of the Majority TowerBrook Investors,” after the
words “so long as the Warburg Investors are entitled to elect at least one member of the Board
and”.

     3. Paragraph 3.4 of the Stockholders’ Agreement is hereby amended as follows:

     (i) by deleting the words “(which director shall be one of the TowerBrook Directors)”
contained in subparagraph (a) thereof and

     (ii) by deleting the words “(which director shall be one of the Warburg Directors)” contained
in subparagraph (b) thereof.

     4. A new Paragraph 3.5 shall be added to the Stockholders’ Agreement and shall read as
follows:

     “(a) For so long as there are no Warburg Directors serving on the Board and the Warburg
Investors Own at least twenty percent (20%) of the Common Stock Owned by Investors, the Warburg
Investors shall be entitled to designate two non-voting observers (the “Warburg Observers”), who
shall be entitled to observe meetings of the Board. For so long as there are no Warburg Directors
serving on the Board and the Warburg Investors Own at least five percent (5%) but less than twenty
percent (20%) of the Common Stock Owned by the

 

 

Investors, the Warburg Investors shall be entitled to designate one such Warburg Observer.
For so long as there are no TowerBrook Directors serving on the Board and the TowerBrook Investors
Own at least twenty percent (20%) of the Common Stock Owned by Investors, the TowerBrook Investors
shall be entitled to designate two non-voting observers (the “TowerBrook Observers” and, together
with the Warburg Observers, the “Board Observers”), who shall be entitled to observe meetings of
the Board. For so long as there are no TowerBrook Directors serving on the Board and the
TowerBrook Investors Own at least five percent (5%) but less than twenty percent (20%) of the
Common Stock Owned by the Investors, the TowerBrook Investors shall be entitled to designate one
such Warburg Observer.

     (b) The Board Observers shall be entitled to receive notice of all meetings of the Board at
the same time and in the same manner as the Board, and have full rights to attend all meetings
thereof and all meetings (whether such meetings are formal or informal, are convened in person,
telephonically, or by any other telecommunication means) of any committee or subcommittee of the
Board, including, without limitation, any executive committee. The Company shall provide the Board
Observers all materials distributed to the Board and all other information related to the Company
which is made available to, or which would otherwise be available upon reasonable request by, the
Board or committee members thereof. The Company shall also pay the reasonable out-of-pocket
expenses incurred by the Board Observers in connection with attending the meetings of the Board and
all committees thereof (including travel and related expenses).

     (c) No Board Observer shall (i) be permitted to act in any way as a director of the Board,
(ii) be included for purposes of determining a quorum at a meeting of the Board for the transaction
of business or otherwise, (iii) vote on any matter presented to or voted upon by the Board or (iv)
without the prior consent of the Board, disclose non-public, competitively sensitive Company
information to anyone outside of the Company.

     (d) The Chairman of the Board shall be entitled to, in its reasonable discretion, excuse any
Board Observer from any meeting or proceeding of the Board, to the extent that the Chairman of the
Board in good faith believes that such action is required in order to comply with applicable law.”.

     5. Paragraph 5.1(a) of the Stockholders’ Agreement is hereby amended and restated as follows:
“Without the approval of (x) the Board and (y) for so long as the Warburg Investors own at least
five percent (5%) of the Common Stock Owned by Investors, the affirmative vote of the Majority
Warburg Investors, the Company will not, and will not permit any Subsidiary to:”.

     6. A new Paragraph 5.5 shall be added to the Stockholders’ Agreement and shall read as
follows:

     “(a) In addition to the rights provided for in Paragraph 5.3, The Warburg Investors will be
entitled to the following contractual rights:

          (1) The Warburg Investors shall be permitted to consult with management of the Company and its
Subsidiaries (“Management”) on significant business

 

 

issues, including Management’s proposed annual operating plans, and Management will make
itself available to meet with the Warburg Investors regularly at mutually agreeable times for such
consultation and to review progress in achieving said plans;

          (2) In the event of any material development to or affecting the Company’s business, the
Company shall notify the Warburg Investors and provide the Warburg Investors with the opportunity,
on reasonable prior written notice, to consult with Management of its views with respect thereto;
and

          (3) On reasonable prior written notice, the Warburg Investors may discuss the business
operations, properties and financial and other conditions of the Company with Management and with
the Company’s independent accountants and investment bankers;

provided, however, that the Board shall be entitled to, in its reasonable discretion, limit the
foregoing rights to the extent that the Board in good faith believes that such action is required
in order to comply with applicable law.

     (b) The aforementioned rights are intended to satisfy the requirement of management rights for
purposes of qualifying the Warburg Investors’ investments in the Company as “venture capital
investments” for purposes of the Department of Labor “plan assets” regulation, 29 C.F.R.
§2510.3-101. In the event the aforementioned rights are not satisfactory for such purpose, the
Company and the Warburg Investors shall reasonably cooperate in good faith to agree upon mutually
satisfactory management rights that satisfy such regulations.”.

     7. Except as expressly modified herein, all of the terms of the Stockholders’ Agreement shall
remain in full force and effect.

     8. This Agreement may be executed in counterparts.

 

 

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

	 	 	 	 	 	 	 
	 	 	SPHERIS HOLDING III, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Steven E. Simpson	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Steven E. Simpson
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	President and CEO	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SPHERIS INVESTMENT LLC (individually and as attorney-in-fact
for the holders of the Company’s Restricted Series A
Preferred and Common Stock and the Vianeta SPE General
Partnership)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joel Ackerman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joel Ackerman
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Member	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WARBURG PINCUS PRIVATE EQUITY VIII, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joel Ackerman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joel Ackerman
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Member	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WARBURG PINCUS NETHERLANDS PRIVATE EQUITY VIII, C.V. I	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joel Ackerman	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Joel Ackerman
	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Member	 	 
	 

	 	 	 	 	 	 

 

 

	 	 	 	 	 	 	 
	 	 	WP-WP VIII INVESTORS L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Warburg Pincus Partners LLC, its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Joel Ackerman	 	 
	 

	 	Name:
	 	Joel Ackerman

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Member	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TOWERBROOK INVESTORS L.P.

(formerly Soros Private Equity Investors L.P.)	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Glenn F. Miller	 	 
	 

	 	Name:
	 	Glenn F. Miller

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Attorney-in-Fact

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