Document:

Exhibit 10.17

 

Exhibit
10.17

 

AMENDMENT TO

PLUG POWER INC.

1999
STOCK OPTION AND INCENTIVE PLAN

 

Section 19 of the Plug Power Inc. 1999 Stock
Option and Incentive Plan, as amended, is hereby amended by deleting the last
sentence of said section in its entirety and substituting the following in lieu
thereof:

 

"Subject to such approval by the
stockholders and to the requirement that no Stock may be issued hereunder prior
to such approval, Stock Options and other Awards may be granted hereunder on
and after the adoption of this Plan by the Board, provided that no grants of
Stock Options and other Awards may be made hereunder after May 16,2011."Exhibit 10.26

 

 

 

 

 

 

Exhibit 10.26

PLUG POWER INC.

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

                

                This
RESTRICTED STOCK UNIT AWARD AGREEMENT, is dated _____________ and delivered by
PLUG POWER INC., a Delaware corporation (the “Company”), to _______________, an
employee of the Company (the “Grantee”).

 

                WHEREAS, the
Compensation Committee of the Board of Directors of the Company (the
“Compensation Committee”) on October 28, 2009 approved a grant of a restricted
stock unit award (the “Restricted Units”) to Grantee pursuant to the terms of
the Company’s 1999 Stock Option and Incentive Plan (the “Plan”); and

 

                WHEREAS, the
Grantee is entitled to the grant of a restricted stock unit award pursuant to
this Agreement;

 

                NOW,
THEREFORE, the parties hereto, intending to be legally bound hereby, agree as
follows:

 

1.     
Restricted Stock Unit Award

Subject
to the terms and conditions set forth in this Agreement, the Company hereby
awards the Grantee _______ Restricted Stock Units (the “Award”) under the
Plan.  The Grantee accepts the Award and agrees to be bound by the terms and
conditions of this Agreement and the Plan with respect to the grant.

 

2.     
Restricted Unit Account

The
Company shall establish and maintain a Restricted Unit account for and on
behalf of the Grantee and shall record in such account the number of Restricted
Units awarded to the Grantee.  No shares of Stock shall be issued to the
Grantee at the time the award is made, and the Grantee shall not be, nor have
any of the rights or privileges of, a shareholder of the Company with respect
to any Restricted Units recorded in the account.

 

3.     
Interest not Transferable

Unless
otherwise provided by law and except for transfers to the Grantee’s estate upon
the Grantee’s death, the Grantee shall not have the right to transfer or
otherwise dispose of any interest in the Restricted Unit account, and any
attempted transfer or disposition of the account by the Grantee, whether by
transfer, alienation, anticipation, pledge, encumbrance, assignment or any
other means, whether such disposition be voluntary, or involuntary, or by
judgment, levy, attachment, garnishment or any other legal or equitable
proceedings (including bankruptcy), shall be null and void and have no effect. 
The Grantee shall not have any interest in any fund or specific asset of the Company
by reason of this award or the Restricted Unit account established for the
Grantee.

 

4.     
Lapsing of Restrictions

The
restrictions applicable to the Restricted Units shall lapse only upon the
achievement of the performance targets for 2010, 2011, and 2012 defined in
Appendix A in accordance with the schedule set forth in Appendix A.  Restricted
Units for which the restrictions lapse in accordance with Appendix A shall be
converted into shares of Stock and distributed to the Grantee after the
Compensation Committee certification with respect to the Company’s performance
as described in Section 6.

 

 

 

 

 

 

 

5.      Termination of Restricted Units

 

The
period of performance covered by this award shall be from January 1, 2010
until December 31, 2012 (the “Performance Period”).  Unless otherwise
terminated or converted into Stock in accordance with Appendix A at the end of
each of the Company’s fiscal years during the Performance Period, the
Restricted Units with respect to which restrictions may lapse during each such
fiscal year shall terminate and become null and void 90 days after the end of
each such fiscal year.

 

Upon
the termination of the Grantee’s employment relationship with the Company for
any reason (except as provided in the next sentence), any Restricted Units for which
the restrictions have not lapsed shall terminate.  In the event of a
termination of the Grantee’s employment as a result of Disability, death or
termination of the Grantee’s employment by the Company without Cause
(“Qualified Termination”), the restrictions shall lapse with respect to a
number of Restricted Units determined in accordance with the Company’s
achievement of the performance targets provided in Appendix A through the end
of the fiscal year in which the Qualified Termination occurs, as described on
Appendix A, further multiplied by a fraction, the numerator of which shall be
the number of weeks in such fiscal year in which the Grantee was employed by
the Company and the denominator of which shall be 52.  Notwithstanding the
preceding sentence, no Restricted Units will vest if the Grantee’s termination
of employment occurs during 2009.

 

The
Grantee’s transfer within the Company or any of its subsidiaries shall not be
deemed to be a termination of employment.

 

Notwithstanding
anything herein to the contrary or in any Employment Agreement with any Grantee
which provides for accelerated vesting of such Grantee’s equity awards in the
event of certain types of terminations of such Grantee’s employment
relationship with the Company (such as, for example, termination without cause
by the employer or termination for good reason by the Grantee), the treatment
of any Restricted Units granted under this Agreement shall be governed solely
by the terms hereof and not by the terms of such Employment Agreement.  In
consideration of the opportunity to receive Restricted Units under this
Agreement, any such Employment Agreement shall be deemed amended to the extent
necessary to effect the provisions of this Section 5.

 

6.     
Procedures

Within
60 days following the end of each of the Company’s fiscal years during the
Performance Period, the Compensation Committee will certify to the Company’s
Corporate Secretary the actual performance achieved with respect to the
criteria set forth in Appendix A.  The Compensation Committee will then certify
to the Company’s Corporate Secretary any Restricted Units with respect to which
the restrictions have lapsed pursuant to Appendix A.  Upon receipt of such
certification and in no event later than 75 days following the end of the Company’s
fiscal year, the Corporate Secretary will cause the Company’s transfer agent to
issue to the Grantee one share of Stock for each Restricted Unit for which the
restrictions have lapsed.  Any fractional share of Stock shall be settled in
cash.

 

The
obligation of the Company to deliver Stock shall, however, be subject to the
condition that if at any time the Compensation Committee shall determine in its
discretion that the listing, registration or qualification of the shares upon
any securities exchange or under any state or federal law, or the consent or
approval of any governmental regulatory body is necessary or desirable as a
condition of, or in connection with, the issue of shares, the shares may not be
issued in whole or in part unless such listing, registration, qualification,
consent or approval shall have been effected or obtained free of any conditions
not acceptable to the Compensation Committee.

 

7.     
Tax Withholding

Any
issuance of shares to the Grantee shall be subject to tax withholding.  The minimum
tax withholding obligation shall be satisfied through a net issuance of
shares.  The Company shall withhold from shares of Stock to be issued to the
Grantee a number of shares of Stock with an aggregate Fair Market Value (as
defined in the Plan) that would satisfy the minimum tax withholding amount
due.  

 

 

2

 

 

 

 

8.      Adjustment Upon Changes in Capitalization

 

 

In
the event of any change in the number or class of shares of Stock outstanding
by reason of a stock dividend, stock split, subdivision or combination of shares,
a merger or consolidation in which the Company is the surviving company, or any
other change in capitalization, the number and class of Restricted Units shall
be equitably adjusted by the Compensation Committee pursuant to Section 3 of
the Plan.

 

9.     
Adjustment of Performance Targets

In
the event of any merger, acquisition, strategic redirection or other corporate
change, any material changes in accounting practices, or any extraordinary
losses, gains or other similar events which, in the Compensation Committee’s
judgment, have or are expected to have a substantial effect on the performance
of the Company, the Compensation Committee may make such adjustment in the
performance targets as the Compensation Committee deems equitable and
appropriate.

 

10.   
Change in Control

In
the event a Change in Control occurs during the Performance Period, the
Compensation Committee shall compare the Company’s Revenues and EBITDAS for the
Company’s completed calendar quarters in the Company’s fiscal year in which the
Change in Control occurs against the Revenue and EBITDAS targets for such
fiscal year, which targets shall be adjusted by the Compensation Committee on a
pro rata basis based on the completed calendar quarters for such fiscal year.  Depending
on the Company’s performance through the calendar quarter end immediately prior
to the Change of Control, the restrictions shall lapse with respect to either 0
percent (failure to achieve both targets at the threshold level), 70 percent
(achieve both targets at the threshold level), 90 percent (achieve both targets
at the target level) or 100 percent (achieve both targets at the stretch level)
of the outstanding Restricted Units based on achievement of the Revenue and
EBITDAS targets as adjusted by the Compensation Committee, and the remaining
Restricted Units shall terminate and become null and void. 

 

11.   
Employment Not Affected

The
granting of the Award shall not be construed to create an obligation on the
part of the Company or its subsidiaries to continue Grantee’s employment. 
Except as may otherwise be provided in a written agreement between Grantee and
the Company (or its subsidiary), the Company and its subsidiaries specifically
reserve the right to terminate at will, with or without cause, the Grantee’s
employment at any time (whether by dismissal, discharge, retirement or
otherwise).

 

12.   
Amendment of Award

The
Award may be amended, in whole or in part, by the Compensation Committee at any
time if it determines, in its sole discretion, that such amendment is necessary
or advisable in the light of any addition to or any change in: (a) the Code or
regulations issued thereunder or (b) any federal or state securities law or
other law or regulation, which change occurs for the grant of the Award and by
its terms retroactively applies to the Award; provided, however, that no such
amendment shall, without the Grantee’s consent, materially adversely affect
Grantee’s rights in and to the Restricted Units.

 

13.    
Notice

Notices
to the Company shall be addressed to it in care of its Chief Financial Officer
or Corporate Secretary, and any notice to the Grantee shall be addressed to the
current address shown on the Company’s payroll records.  Any notice shall be
deemed duly given if delivered in writing directly to the recipient or by
registered or certified mail, postage prepaid.

 

 

 

3

 

 

 

 

14.    Incorporation of 1999 Stock Option and Incentive
     Plan by Reference

 

 

The
Award is granted pursuant to the terms of the Plan, as in effect from time to
time, the terms of which are incorporated herein by reference.  Except to the
extent otherwise provided in this Award, including without limitation as to a
Change in Control, this Award shall in all respects be interpreted in
accordance with the Plan.  The Compensation Committee shall have full authority
to interpret and construe the Award, in its sole discretion, and its decision
shall be conclusive and binding upon any question of law or fact arising
hereunder and shall be enforceable in law or in equity by any court of
competent jurisdiction. 

 

15.   
Governing Law

The
validity, construction, interpretation and effect of this instrument and any
other matter arising under this instrument shall exclusively be governed by,
and determined in accordance with applicable Federal law and the laws of the
State of Delaware, without regard to Delaware rules for conflicts of law.

 

16.   
Defined Terms

 

For
purposes of this Agreement, the following terms shall have the meaning set
forth herein:

 

Cause shall mean:  (a) a willful act of dishonesty by the
Grantee with respect to any matter involving the Company or any subsidiary or
affiliate, (b) conviction of the Grantee of a crime involving moral turpitude,
or (c) the failure to perform to the reasonable satisfaction of the Company a
substantial portion of the Grantee’s duties and responsibilities assigned or
delegated under this Agreement, which failure continues, in the reasonable
judgment of the Company, after written notice given to the Grantee by the
Company.  For purposes of clause (a) hereof, no act, or failure to act, on the
Grantee’s part shall be deemed “willful” unless done, or omitted to be done, by
the Grantee without reasonable belief that the Grantee’s act, or failure to
act, was in the best interests of the Company and its subsidiaries and
affiliates.

 

Change
in Control shall be deemed to have
occurred upon (a) the consummation of any consolidation or merger of the
Company where the shareholders of the Company, immediately prior to the
consolidation or merger, did not, immediately after the consolidation or
merger, beneficially own (as such term is defined in Rule 13d-3 of the Exchange
Act), directly or indirectly, shares representing in the aggregate more than 50
percent of the voting shares of the corporation issuing cash or securities in
the consolidation or merger (or of its ultimate parent corporation, if any), or
(b) the consummation of any sale, lease, exchange or other transfer (in one
transaction or a series of transactions contemplated or arranged by any party
as a single plan) of all or substantially all of the assets of the Company.

 

Disability.  A Grantee is deemed to have incurred a Disability
if he is disabled and unable to perform the essential functions of his then
existing duties with or without accommodation for a period of 180 days (which
need not be consecutive) in any 12-month period.

 

Employment
Agreement shall mean any employment,
severance or similar agreement, if any, then in effect between a Grantee on the
one hand and the Company on the other hand, as amended.

 

Stock shall mean the common stock, par value $0.01 per
share, of the Company.

 

 

 

 

4

 

 

 

 

 

 

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

 

	

Attest:       

			     
		PLUG POWER INC.
	

 

			 
	

 

			 
	

By:                                                                                

			      
		By:
                                                                         
		
	

Gerard L. Conway, Jr.         

			Andrew Marsh
	

General Counsel & Corporate Secretary                          

			President & Chief
		Executive Officer  

                                                                                                                

 

 

I hereby accept the award of Restricted Units
described in this Agreement, and I agree to be bound by the terms of the Plan
and this Agreement.  I hereby further agree that all decisions and
determinations of the Compensation Committee with respect to the Restricted
Units shall be final and binding.

 

 

/s/__________________________

XXXXXXXXXXXXXXXXXXXX

5

 

 

 

 

 

 

APPENDIX A 

RESTRICTED STOCK UNIT AWARD

PERFORMANCE TARGETS AND VESTING SCHEDULE

 

  
I.           Definitions

 

“Earnings”
shall mean the Company’s earnings determined in accordance with generally
accepted accounting standards in the USA (“GAAP”) and as reported in the
Company’s Consolidated Income Statement for each fiscal year of the Performance
Period.

 

“EBITDAS”
shall mean Earnings plus interest expense, taxes, depreciation, amortization
and non-cash charges for equity compensation.

 

“Revenue”
shall mean the Company’s revenue determined in accordance with GAAP and as
reported in the Company’s Consolidated Income Statement for each fiscal year of
the Performance Period.

 

 II.           Performance Targets

 

The
vesting of 25 percent of the Restricted Units underlying the Award is tied to
achievement of Revenue targets, while the vesting of 75 percent of the
Restricted Units underlying the Award is tied to achievement of EBITDAS
targets, in each case for the years ending December 31, 2010, 2011 and 2012 as
set forth below:

 

	
  Revenue Targets

  
	
   

  	
  Threshold

  	
  Target

  	
  Stretch

  
	
  2010 Revenue Target

  	
   

  	
   

  	
   

  
	
  2011 Revenue Target

  	
   

  	
   

  	
   

  
	
  2012 Revenue Target

  	
   

  	
   

  	
   

  

 

	
  EBITDAS Targets

  
	
   

  	
  Threshold

  	
  Target

  	
  Stretch

  
	
  2010 EBITDAS Target

  	
   

  	
   

  	
   

  
	
  2011 EBITDAS Target

  	
   

  	
   

  	
   

  
	
  2012 EBITDAS Target

  	
   

  	
   

  	
   

  
							

 

6

 

 

 

 

 

 

 

III.           Vesting Schedule

 

The
restrictions shall lapse with respect to the corresponding Revenue RSUs based
on the following schedule, depending on the Company’s achievement of the
Revenue targets for 2010 and 2011:

 

	
  2010 Performance

  	
  Revenue

  RSU Allocation

  	
  Percent Vesting

  	
  Revenue

  RSUs Earned

  	
  Revenue RSUs Forfeited

  
	
  Below Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
   

  	
   

  	
   

  
	
  Stretch

  	
   

  	
   

  	
   

  	
   

  

 

	
  2011 Performance

  	
  Revenue

  RSU Allocation

  	
  Percent Vesting

  	
  Revenue

  RSUs Earned

  	
  Revenue RSUs Forfeited

  
	
  Below Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
   

  	
   

  	
   

  
	
  Stretch

  	
   

  	
   

  	
   

  	
   

  

 

	
  2012 Performance

  	
  Revenue

  RSU Allocation

  	
  Percent Vesting

  	
  Revenue

  RSUs Earned

  	
  Revenue RSUs Forfeited

  
	
  Below Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
   

  	
   

  	
   

  
	
  Stretch

  	
   

  	
   

  	
   

  	
   

  

 

The
restrictions shall lapse with respect to the EBITDAS RSUs based on the
following schedule depending on the Company’s achievement of the EBITDAS targets:

 

	
  2010 Performance

  	
  EBITDAS

  RSU Allocation

  	
  Percent Vesting

  	
  EBITDAS

  RSUs Earned

  	
  EBITDAS RSUs Forfeited

  
	
  Below Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
   

  	
   

  	
   

  
	
  Stretch

  	
   

  	
   

  	
   

  	
   

  

 

7

 

 

 

 

 

 

 

	
  2011 Performance

  	
  EBITDAS

  RSU Allocation

  	
  Percent Vesting

  	
  EBITDAS

  RSUs Earned

  	
  EBITDAS RSUs Forfeited

  
	
  Below Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
   

  	
   

  	
   

  
	
  Stretch

  	
   

  	
   

  	
   

  	
   

  

 

	
  2012 Performance

  	
  EBITDAS

  RSU Allocation

  	
  Percent Vesting

  	
  EBITDAS

  RSUs Earned

  	
  EBITDAS RSUs Forfeited

  
	
  Below Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Threshold

  	
   

  	
   

  	
   

  	
   

  
	
  Target

  	
   

  	
   

  	
   

  	
   

  
	
  Stretch

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

 

 

 

 

 

8

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