Document:

Exhibit 10.20

 

FORM OF

 

EXECUTIVE NON-QUALIFIED STOCK OPTION
AGREEMENT

 

ENERNOC, INC.

 

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

 

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

 

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

 

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

 

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

 

1.             GRANT OF OPTION.

 

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

 

2.             PURCHASE PRICE.

 

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

 

3.             EXERCISABILITY OF OPTION.

 

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

 

	
  On the first
  anniversary of the date of this Agreement:

  	
   

  	
  25% of the Shares

  
	
   

  	
   

  	
   

  
	
  On the first day of
  each              
  following the first anniversary of the date of this Agreement for             :

  	
   

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

  

 

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

 

 

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

 

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

 

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

 

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

 

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

 

4.                                         TERM OF OPTION.

 

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

 

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

 

Notwithstanding
the foregoing, in the event of the Participant’s Disability or death within
three months after the termination of service, the Participant or the
Participant’s Survivors may exercise the 

 

2

 

Option within one year after the date of the
Participant’s termination of service, but in no event after the date of
expiration of the term of the Option.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5.             METHOD
OF EXERCISING OPTION.

 

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

 

3

 

Shares that shall be purchased upon the exercise
of the Option as provided herein shall be fully paid and nonassessable.

 

6.             PARTIAL
EXERCISE.

 

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

 

7.             NON-ASSIGNABILITY.

 

The Option shall
not be transferable by the Participant otherwise than by will or by the laws of
descent and distribution or pursuant to a qualified domestic relations order as
defined by the Code or Title I of the Employee Retirement Income Security Act
or the rules thereunder. Except as provided above in this paragraph, the
Option shall be exercisable, during the Participant’s lifetime, only by the
Participant (or, in the event of legal incapacity or incompetency, by the
Participant’s guardian or representative) and shall not be assigned, pledged or
hypothecated in any way (whether by operation of law or otherwise) and shall
not be subject to execution, attachment or similar process. Any attempted
transfer, assignment, pledge,   hypothecation or other disposition of the Option or of
any rights granted hereunder contrary to the provisions of this Section 7,
or the levy of any attachment or similar process upon the Option shall be null
and void.

 

8.             NO
RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

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

 

9.                                         ADJUSTMENTS.

 

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

 

10.           TAXES.

 

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

 

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

 

4

 

11.          
PURCHASE FOR INVESTMENT.

 

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

 

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

 

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

 

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

 

12.                                 RESTRICTIONS ON TRANSFER OF SHARES.

 

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

 

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

 

13.                                 NO OBLIGATION TO MAINTAIN RELATIONSHIP.

 

5

 

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

 

14.           NOTICES.

 

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

 

If to the Company:

 

	
   

  	
  EnerNOC, Inc.

  
	
   

  	
  Attn: Chief Financial
  Officer

  
	
   

  	
  101 Federal Street,
  Suite 1100

  
	
   

  	
  Boston, MA 02110

  

 

If to the Participant:

 

 

 

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

 

15.           GOVERNING LAW.

 

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

 

16.           BENEFIT OF AGREEMENT.

 

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

 

17.           ENTIRE AGREEMENT.

 

6

 

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

 

18.           MODIFICATIONS AND AMENDMENTS.

 

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

 

19.           WAIVERS AND CONSENTS.

 

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

 

20.           DATA PRIVACY.

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

7

 

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

 

	
   

  	
  ENERNOC, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  
	
   

  	
  Participant

  

 

8

 

Exhibit A

 

NOTICE OF EXERCISE OF NON-QUALIFIED STOCK OPTION

 

TO:         EnerNOC, Inc.

 

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

 

Ladies and Gentlemen:

 

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

 

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

 

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

 

 

 

Please issue the
Shares (check one):

 

o to me; or

 

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

 

at the following
address:

 

 

 

9

 

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

 

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant (signature)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Date

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Social Security Number

  

 

10Exhibit 10.23

 

EnerNOC, Inc.

 

Summary of 2010 Executive
Officer Bonus Plan

 

The Company’s executive officers have the following
bonus targets (expressed as a percentage of salary unless otherwise stated):

 

	
  Name and
  Position

  	
   

  	
  Target Bonus (%)

  
	
  Timothy G. Healy 

  Chief Executive Officer and Chairman

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  David B. Brewster 

  President

  	
   

  	
  75%

  
	
   

  	
   

  	
   

  
	
  David M. Samuels 

  Executive Vice President

  	
   

  	
  70%

  
	
   

  	
   

  	
   

  
	
  Timothy Weller 

  Chief Financial Officer and Treasurer

  	
   

  	
  65%

  
	
   

  	
   

  	
   

  
	
  Darren P. Brady 

  Senior Vice President and Chief Operating
  Officer

  	
   

  	
  50%

  
	
   

  	
   

  	
   

  
	
  Gregg M. Dixon 

  Senior Vice President of Marketing

  	
   

  	
  115%

  
	
   

  	
   

  	
   

  
	
  Kevin Bligh 

  Chief Accounting Officer

  	
   

  	
  30%

  

 

Each executive officer’s 2010 bonus amount (the “Bonus
Amount”) will be determined based upon the achievement of certain
pre-determined individual and corporate performance objectives. Specifically,
each executive officer’s Bonus Amount will be weighted as follows: 80% will be
based on the Company’s achievement of certain revenue, gross profit, net income
(loss) and cash flow targets applicable to 2010, which targets have been set by
the Board, and 20% will be discretionary based on the achievement of individual
or departmental performance goals (the “Discretionary Bonus Amount”) The
Discretionary Bonus Amount will be recommended by the Company’s chief executive
officer, except in the case of the Company’s chief executive officer, whose
Discretionary Bonus Amount will be based on the recommendation of the
compensation committee of the board of directors. The bonuses will be paid
within 90 days of the determination of the Bonus Amounts. Actual Bonus
Amounts may be higher or lower than the executive’s bonus target.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]