Document:

Exhibit 10.1
SEVERANCE AGREEMENT
THIS SEVERANCE AGREEMENT (this “Agreement”) is made and entered into this 26 day of September, 2021 (the “Effective Date”), by and between Sportsman’s Warehouse Holdings, Inc., a Delaware corporation (the “Company”), and Jeff White (the “Executive”).
RECITALS
THE PARTIES ENTER THIS AGREEMENT on the basis of the following facts, understandings and intentions:
A.        The Executive and the Company desire to clarify the severance (if any) and other benefits due to the Executive should the Executive’s employment by the Company terminate and certain other matters as set forth in this Agreement.
NOW, THEREFORE, in consideration of the above recitals incorporated herein and the mutual covenants and promises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby expressly acknowledged, the parties agree as follows:
1.         TERMINATION
1.1       Employment At-Will.  The Executive’s employment by the Company is “at will,” meaning that the Executive’s employment by the Company may be terminated at any time, by the Executive or by the Company, with or without advance notice, and for any reason (with or without cause, with or without Gross Misconduct (as defined below), with or without Good Reason (as defined below), or for any other reason) or for no reason.
1.2      The Company’s Obligations upon Termination.
1.2.1    Death or Incapacity.  If the Executive’s employment by the Company terminates due to the Executive’s death or Incapacity (as defined below), due to a termination of employment by the Company other than as provided in Section 1.2.2, or due to a termination of employment by the Executive other than as provided in Section 1.2.2, the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have no further right to receive or obtain from the Company, any payments or benefits except for payment to the Executive (or, in the event of the Executive’s death, to his estate) of the Accrued Obligations.  “Accrued Obligations” means the following: the Executive’s earned and accrued salary and personal time off (if the Executive accrues personal time off under the Company’s policies then in effect) through the date of termination of the Executive’s employment with the Company, and reimbursement of any business expenses incurred by the Executive during the period of his employment by the Company that are reimburseable by the Company pursuant to its expense reimbursement policies, each in accordance with the Company’s policies then in effect and each to the extent not previously paid.
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1.2.2    Termination without Gross Misconduct or for Good Reason.  If the Executive’s employment by the Company is terminated by the Company during the Term other than due to Gross Misconduct (and other than due to the Executive’s Incapacity), or if the Executive terminates his employment during the Term for Good Reason, the Company shall have no further obligation to make or provide to the Executive, and the Executive shall have no further right to receive or obtain from the Company, any payments or benefits except for payment to the Executive of the Accrued Obligations and, subject to Section 1.2.4, the following severance benefits:
(a)       The Company will pay the Executive (as severance) continued payment of the Executive’s base salary (at the regular rate per payroll period in effect immediately prior to the termination of the Executive’s employment with the Company and paid in accordance with the Company’s regular payroll practices) through and ending with the date that is twelve (12) months after the date the Executive’s employment with the Company terminated (the date the Executive’s employment with the Company terminates is referred to as the “Severance Date”); provided that the continued base salary benefit for the period commencing with the day following the Severance Date and ending with the 60th day following the Severance Date shall not be paid over such 60-day period but shall instead be accumulated and paid on (or within two (2) business days after) such 60th day following the Severance Date.
(b)       The Company will pay the Executive an amount equal to the Executive’s target bonus for the fiscal year in which the Severance Date occurs (as such target bonus is established for such fiscal year by the Company’s Board of Directors (the “Board”) or a committee thereof), pro-rated through the Severance Date for the portion of the fiscal year the Executive was actually employed by the Company.  Such amount is to be paid on (or within two (2) business days after) the 60th day following the Severance Date.
(c)       The Company will pay or reimburse the Executive for his premiums charged to continue medical coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), at the same or reasonably equivalent medical coverage for the Executive (and, if applicable, the Executive’s eligible dependents) as in effect immediately prior to the Severance Date, to the extent that the Executive elects such continued coverage; provided that the Company’s obligation to make any payment or reimbursement pursuant to this clause (c) shall commence with continuation coverage for the month following the month in which the Executive’s Severance Date occurs and shall cease with continuation coverage for the twelfth (12th) month following the month in which the Executive’s Severance Date occurs (or, if earlier, shall cease upon the first to occur of the Executive’s death, the date the Executive becomes eligible for coverage under the health plan of a future employer, or the date the Company ceases to offer group medical coverage to its active executive employees or the Company is otherwise under no obligation to offer COBRA continuation coverage to the Executive).  To the extent the Executive elects COBRA coverage, he shall notify the Company in writing of such election prior to such coverage
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taking effect and complete any other continuation coverage enrollment procedures the Company may then have in place.
(d)        If the Severance Date occurs on or after the date of a Change of Control (as defined below), any equity awards (i.e., restricted stock, restricted stock units or options) granted to the Executive by the Company that are outstanding and otherwise unvested immediately prior to the Severance Date shall, on the Severance Date, be treated as follows: (a) any time-based vesting conditions applicable to such awards shall be considered satisfied and fully vested; and (b) any performance-based vesting conditions applicable to such awards shall be treated as provided for in the applicable award agreement.
1.2.3    Exclusive Remedy.  The Executive agrees that the payments contemplated by this Agreement will constitute the Executive’s sole and exclusive remedy for any termination of the Executive’s employment (other than any right to continued benefit coverage under and to the extent required by COBRA, and except for payment of any vested benefit the Executive may have under a retirement program sponsored or maintained by the Company that is intended to be qualified under Section 401(a) of the Internal Revenue Code (any such benefit to be paid under and in accordance with the terms and conditions of such plan)).  The Executive covenants that he will not assert or pursue any other remedies, at law or in equity, with respect to any such termination.  The Executive agrees to resign, and does hereby resign, on the Severance Date as an officer and director of the Company and any affiliate of the Company, and as a fiduciary of any benefit plan of the Company or any affiliate of the Company.  The Executive agrees to promptly execute and provide to the Company any further documentation, as reasonably requested by the Company, to confirm such resignation.
1.2.4    Offsets.  All severance amounts due from the Company to the Executive under Section 1.2.2 will be subject to offset or reduction to take into account any of the Executive’s obligations to the Company.  As a condition precedent to any Company obligation to the Executive pursuant to Section 1.2.2 (other than payment of the Accrued Obligations), the Executive shall, upon or promptly following the Severance Date (and in all cases within twenty-one (21) days following the Severance Date unless a longer period of time is required under applicable law to obtain an effective general release, in which case such longer period of time shall apply), deliver to the Company a valid, executed general release of the Executive’s claims in a form reasonably satisfactory to the Company, and such general release shall not be revoked by the Executive pursuant to any revocation rights afforded by applicable law.
1.2.5    Certain Defined Terms.
For purposes of this Agreement, “Change of Control” means the occurrence of any of the following after the Effective Date:
(A)The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (a “Person” for purposes of this Change in Control definition)) of
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beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended) of more than 30% of either (1) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (2) the combined voting power of the then-outstanding voting securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that, for purposes of this clause (A), the following acquisitions shall not constitute a Change of Control; (a) any acquisition directly from the Company, (b) any acquisition by the Company, (c) any acquisition by any employee benefit plan (or related trust) sponsored or maintained by the Company or any affiliate of the Company or a successor, (d) any acquisition by a Person or affiliate of a Person who owned more than 30% of the Outstanding Company Common Stock or Outstanding Company Voting Securities on the Effective Date, or (e) any acquisition by any entity pursuant to a transaction that complies with clauses (C)(1), (2) and (3) below;
(B)       Individuals who, as of the Effective Date, constitute the Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board; provided, however, that any individual becoming a director subsequent to the Effective Date whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least two-thirds of the directors then comprising the Incumbent Board (including for these purposes, the new members whose election or nomination was so approved, without counting the member and his predecessor twice) shall be considered as though such individual were a member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents by or on behalf of a Person other than the Board;
(C)       Consummation of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition of assets or stock of another entity by the Company or any of its subsidiaries (each, a “Business Combination”), in each case unless, following such Business Combination, (1) all or substantially all of the individuals and entities that were the beneficial owners of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the entity resulting from such Business Combination (including, without limitation, an entity that, as a result of such transaction, owns the Company or all or substantially all of the Company's assets directly or through one or more subsidiaries (a “Parent”)) in substantially the same proportions as their ownership immediately prior to such Business Combination of the Outstanding Company
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Common Stock and the Outstanding Company Voting Securities, as the case may be, (2) no Person (excluding any entity resulting from such Business Combination or a Parent or any employee benefit plan (or related trust) of the Company or such entity resulting from such Business Combination or Parent) beneficially owns, directly or indirectly, more than 30% of, respectively, the then-outstanding shares of common stock of the entity resulting from such Business Combination or the combined voting power of the then-outstanding voting securities of such entity, except to the extent that the ownership in excess of 30% existed prior to the Business Combination, and (3) at least a majority of the members of the board of directors or trustees of the entity resulting from such Business Combination or a Parent were members of the Incumbent Board at the time of the execution of the initial agreement or of the action of the Board providing for such Business Combination; or
(D)       Approval by the stockholders of the Company of a complete liquidation or dissolution of the Company other than in the context of a Business Combination.
For purposes of this Agreement, “Good Reason” means the occurrence of any of the following by the Company without the Executive’s express written consent: (a) a significant and material diminution in the Executive’s position, responsibilities, reporting responsibilities or title, or a reduction in the Executive’s base salary; or (b) if, on or following the date of a Change of Control, the Company moves the Executive’s principal office with the Company to a location more than fifty (50) miles outside of Salt Lake City, Utah; provided, however, that any such condition or conditions, as applicable, shall not constitute grounds for a termination for Good Reason unless both (x) the Executive provides written notice to the Company of the condition claimed to constitute grounds for Good Reason within sixty (60) days of the initial existence of such condition(s), and (y) the Company fails to remedy such condition(s) within thirty (30) days of receiving such written notice thereof; and provided, further, that in all events the termination of the Executive’s employment with the Company shall not constitute a termination for Good Reason unless such termination occurs not more than one hundred and eighty (180) days following the initial existence of the condition claimed to constitute grounds for Good Reason.
For purposes of this Agreement,  “Gross Misconduct” means the occurrence of any of the following:
(a)     the Executive’s commission of any felony;
(b)     the Executive takes any actions or omissions intentionally causing the Company to violate any law, rule or regulation (other than technical violations that have no material adverse impact on the Company);
(c)     the Executive’s willful or reckless act or omission that injures the Company’s reputation or business in any material way or is otherwise demonstrably detrimental to the Company;
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(d)     the Executive willfully fails or refuses to follow the legal and clear directives of the Board or the Company’s Chief Executive Officer (unless the following of such directive would be a violation of applicable law);
(e)     the Executive has been dishonest in connection with his employment activities or committed or engaged in an act of theft, embezzlement or fraud; or
(f)     the Executive has materially breached any provision of any agreement to which the Executive is a party with the Company or any fiduciary duty the Executive owes to the Company; provided that the Company provides written notice to Executive of the condition(s) claimed to constitute a material breach of such agreement or any fiduciary duty and Executive fails to remedy such condition(s) within thirty (30) days of the receiving such written notice thereof.
For purposes of this Agreement, “Incapacity” means any mental or physical illness or disability that renders the Executive incapable of performing the Executive’s duties, even with a reasonable accommodation, for more than 12 consecutive weeks in any twelve-month period, unless a longer period is required by law.
For purposes of this Agreement, the “Term” shall mean the period of time commencing with the Effective Date through and ending with the third anniversary of the Effective Date (the “Termination Date”); provided, however, that the Term shall be automatically extended for one (1) additional year on the Termination Date and each anniversary of the Termination Date thereafter, unless either party gives written notice at least thirty (30) days prior to the expiration of the Term (including any renewal thereof) of such party’s desire to terminate the Term (such notice to be delivered in accordance with Section 3.8).  The term “Term” shall include any extension thereof pursuant to the preceding sentence.
2. PROTECTIVE COVENANTS.
2.1       Confidential Information; Inventions.
2.1.1    The Executive shall not disclose or use at any time, either during the period of time he is employed by the Company (the “Period of Employment”) or thereafter, any Confidential Information (as defined below) of which the Executive is or becomes aware, whether or not such information is developed by him, except to the extent that such disclosure or use is directly related to and required by the Executive’s performance in good faith of duties for the Company.  The Executive will take all appropriate steps to safeguard Confidential Information in his possession and to protect it against disclosure, misuse, espionage, loss and theft.  The Executive shall deliver to the Company at the termination of the Period of Employment, or at any time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the Work Product (as hereinafter defined) of the business of the Company or any of its Affiliates (as defined below) which the Executive may then possess or have under his control.  Notwithstanding the foregoing, the Executive may truthfully respond to a lawful
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and valid subpoena or other legal process, but shall give the Company the earliest possible notice thereof, shall, as much in advance of the return date as possible, make available to the Company and its counsel the documents and other information sought, and shall assist the Company and such counsel in resisting or otherwise responding to such process.  The Executive understands that nothing in this Agreement is intended to limit the Executive’s right (i) to discuss the terms, wages, and working conditions of the Executive’s employment to the extent permitted and/or protected by applicable labor laws, (ii) to report Confidential Information in a confidential manner either to a federal, state or local government official or to an attorney where such disclosure is solely for the purpose of reporting or investigating a suspected violation of law, or (iii) to disclose Confidential Information in an anti-retaliation lawsuit or other legal proceeding, so long as that disclosure or filing is made under seal and the Executive does not otherwise disclose such Confidential Information, except pursuant to court order.  The Company encourages Executive, to the extent legally permitted, to give the Company the earliest possible notice of any such report or disclosure.
2.1.2    As used in this Agreement, the term “Confidential Information” means information that is not generally known to the public and that is used, developed or obtained by the Company in connection with its business, including, but not limited to, information, observations and data obtained by the Executive while employed by the Company or any predecessors thereof (including those obtained prior to the Effective Date) concerning (i) the business or affairs of the Company (or such predecessors), (ii) products or services, (iii) fees, costs and pricing structures and strategies, (iv) designs, (v) analyses, (vi) drawings, photographs and reports, (vii) computer software, including operating systems, applications and program listings, (viii) flow charts, manuals and documentation, (ix) data bases, (x) accounting and business methods, (xi) inventions, devices, new developments, product roadmaps, methods and processes, whether patentable or unpatentable and whether or not reduced to practice, (xii) customers and clients, customer or client lists, and the preferences of, and negotiations with, customers and clients, (xiii) personnel information of other employees and independent contractors (including their compensation, unique skills, experience and expertise, and disciplinary matters), (xiv) other copyrightable works, (xv) all production methods, processes, technology and trade secrets, and (xvi) all similar and related information in whatever form.  Confidential Information will not include any information that has been published (other than a disclosure by the Executive in breach of this Agreement) in a form generally available to the public prior to the date the Executive proposes to disclose or use such information.  Confidential Information will not be deemed to have been published merely because individual portions of the information have been separately published, but only if all material features comprising such information have been published in combination.
2.1.3    As used in this Agreement, the term “Work Product” means all inventions, innovations, improvements, technical information, systems, software developments, methods, designs, analyses, drawings, reports, service marks, trademarks, trade names, logos and all similar or related information (whether patentable or unpatentable, copyrightable, registerable as a trademark, reduced to writing, or otherwise) which relates to the Company’s or any of its Affiliates’ actual or anticipated business, research and development or existing or future products or services and which are conceived,
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developed or made by the Executive (whether or not during usual business hours, whether or not by the use of the facilities of the Company or any of its Affiliates, and whether or not alone or in conjunction with any other person) while employed by the Company (including those conceived, developed or made prior to the Effective Date) together with all patent applications, letters patent, trademark, trade name and service mark applications or registrations, copyrights and reissues thereof that may be granted for or upon any of the foregoing.  All Work Product that the Executive may have discovered, invented or originated during his employment by the Company or any of its Affiliates prior to the Effective Date, that he may discover, invent or originate during the Period of Employment or at any time in the period of twelve (12) months after the Severance Date, shall be the exclusive property of the Company and its Affiliates, as applicable, and Executive hereby assigns all of Executive’s right, title and interest in and to such Work Product to the Company or its applicable Affiliate, including all intellectual property rights therein.  Executive shall promptly disclose all Work Product to the Company, shall execute at the request of the Company any assignments or other documents the Company may deem necessary to protect or perfect its (or any of its Affiliates’, as applicable) rights therein, and shall assist the Company, at the Company’s expense, in obtaining, defending and enforcing the Company’s (or any of its Affiliates’, as applicable) rights therein.  The Executive hereby appoints the Company as his attorney-in-fact to execute on his behalf any assignments or other documents deemed necessary by the Company to protect or perfect the Company, the Company’s (and any of its Affiliates’, as applicable) rights to any Work Product.
2.1.4    As used in this Agreement, “Affiliate” of the Company means a Person that directly or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Company.  As used in this definition, the term “control,” including the correlative terms “controlling,” “controlled by” and “under common control with,” means the possession, directly or indirectly, of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or other ownership interest, by contract or otherwise) of a Person.  As used in this Section 2.1 and the following provisions of this Agreement, the term “Person” shall be construed broadly and shall include, without limitation, an individual, a partnership, a limited liability company, a corporation, an association, a joint stock company, a trust, a joint venture, an unincorporated organization and a governmental entity or any department, agency or political subdivision thereof.
2.2       Restriction on Competition.  The Executive agrees that if the Executive were to become employed by, or substantially involved in, the business of a competitor of the Company or any of its Affiliates during the twelve (12) month period following the Severance Date, it would be very difficult for the Executive not to rely on or use the Company’s and its Affiliates’ trade secrets and confidential information.  Thus, to avoid the inevitable disclosure of the Company’s and its Affiliates’ trade secrets and confidential information, and to protect such trade secrets and confidential information and the Company’s and its Affiliates’ relationships and goodwill with customers, during the Period of Employment and for a period of twelve (12) months after the Severance Date, the Executive will not directly or indirectly through any other Person engage in, enter the employ of, render any services to, have any ownership interest in, nor participate in the financing, operation,
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management or control of, any Competing Business.  For purposes of this Agreement, the phrase “directly or indirectly through any other Person engage in” shall include, without limitation, any direct or indirect ownership or profit participation interest in such enterprise, whether as an owner, stockholder, member, partner, joint venturer or otherwise, and shall include any direct or indirect participation in such enterprise as an employee, consultant, director, officer, licensor of technology or otherwise.  For purposes of this Agreement, “Competing Business” means only the following: (a) the businesses commonly known as Bass Pro Shops, Cabela’s, Scheels, Field and Stream Stores, and REI CO-OP; (b) any successor to any business identified in clause (a); and (c) any affiliate of a business identified in clause (a) or clause (b); provided, however, that a “Competing Business” shall not include a parent company or sister company of a business identified in clause (a) or clause (b) if both (x) such parent company is also engaged (directly or through other affiliates) in businesses that are not competitive with any business described in clause (a) or clause (b) (or, in the case of a sister company, such sister company is not engaged in any business that is competitive with any business described in clause (a) or clause (b)), and (y) the Executive’s position, services and responsibilities with such entity are limited to the distribution of merchandise that is not competitive with any business described in clause (a) or clause (b) and the Executive does not participate in any way in any business identified in clause (a) or clause (b).  For example, and to clarify the foregoing proviso based on circumstances as in effect on the date of this Agreement, the Field and Stream Stores are a division of Dick’s Sporting Goods, Inc., and Dick’s Sporting Goods, Inc. would not be considered a “Competing Business” for purposes of this Agreement so long as (x) Dick’s Sporting Goods, Inc. also engaged (directly or through other affiliates) in businesses that are not competitive with any business described in clause (a) or clause (b) of the preceding sentence, and (y) the Executive’s position, services and responsibilities with Dick’s Sporting Goods, Inc. (or an affiliate) were limited to the distribution of merchandise that is not competitive with any business described in clause (a) or clause (b) of the preceding sentence and the Executive did not participate in any way in the business of the Field and Stream Stores or any other business described in clause (a) or clause (b) of the preceding sentence.  Nothing herein shall prohibit the Executive from being a passive owner of not more than 2% of the outstanding stock of any class of a Competing Business which is publicly traded, so long as the Executive has no active participation in the business of such corporation.
2.3       No Conflicting Employment.  The Executive hereby agrees that, during the Period of Employment, the Executive will not engage in any other employment, occupation or consulting directly related to the business in which the Company or any of its Affiliates is now involved or becomes involved during the Period of Employment, nor will the Executive engage in any other activities that conflict with the Executive’s obligations to the Company or any of its Affiliates.
2.4       Non-Solicitation of Employees and Consultants.  During the Period of Employment and for a period of twenty four (24) months after the Severance Date, the Executive will not directly or indirectly through any other Person solicit, induce or encourage, or attempt to solicit, induce or encourage, any employee or independent contractor of the Company or any Affiliate of the Company to leave the employ or service, as applicable, of the
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Company or such Affiliate, or become employed or engaged by any third party, or in any way interfere with the relationship between the Company or any such Affiliate, on the one hand, and any employee or independent contractor thereof, on the other hand.
2.5       Return of Items.  Upon termination of this Agreement, the Executive will promptly deliver to the Company all Company equipment and other materials relating to the Company’s business and in the Executive’s possession or control.
2.6       Non-Disparagement.  The Executive shall not, during the Period of Employment or at any time thereafter, publish or communicate (other than statements made while employed by the Company or one of its affiliates in connection with carrying out the Executive's duties and responsibilities for the Company or any of its affiliates), in a manner intended to be public or that should reasonably be expected to become public (including, without limitation, through social media), disparaging or derogatory statements or opinions about the Company or any of its affiliates, stockholders, officers, employees, directors, or customers; provided that it shall not be a breach of this Section 2.6 for the Executive to testify truthfully in any judicial or administrative proceeding, to make statements or allegations in legal filings that are based on the Executive's reasonable belief and are not made in bad faith, or to make statements to a federal, state, or local government official, either directly or indirectly, and solely for the purpose of reporting or investigating a suspected violation of law.
2.7       Cooperation.  Following the termination of the Executive’s employment for any reason, the Executive will reasonably cooperate with the Company in connection with (a) any internal or governmental investigation or administrative, regulatory, arbitral or judicial proceeding involving the Company with respect to matters as to which the Executive had responsibility or knowledge arising out of the Executive’s employment with, or service as a member of the Board of, the Company (collectively, “Litigation”); (b) any audit of the financial statements of the Company with respect to the period of time when the Executive was employed by the Company (“Audit”); (c) any regulatory filings that relate to a period of time when the Executive was employed by the Company; and (d) the transition of the Executive’s position and duties (or former position and duties, as the case may be). To the extent (if any) the Company requests such services from the Executive, or the Executive is compelled by a governmental authority to provide services in a matter that does not involve the Executive, the Company will: (i) reimburse the Executive for reasonable travel and other expenses incurred in connection with providing his services under this Section 2.7, and (ii) compensate the Executive for each hour that the Executive provides services pursuant to this Section 2.7 at the rate of $350 per hour.  With respect to any month during which the Executive provides services pursuant to this Section 2.7, the Executive will submit a written invoice to the Company that details the amount of time and a description of the services rendered and expenses incurred during such month.  The Executive will submit such invoice to the Company not later than fifteen (15) days after the end of such month, and the Company will pay any such invoice within fifteen (15) days after its receipt of such invoice from the Executive.
2.8       Understanding of Covenants.  The Executive acknowledges that, in the course of his employment with the Company and/or its affiliates and their predecessors, he will
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become familiar with the Company’s and its affiliates’ and their predecessors’ trade secrets and with other confidential and proprietary information concerning the Company, its affiliates and their respective predecessors and that his services will be of special, unique and extraordinary value to the Company and its affiliates.  The Executive agrees that the foregoing covenants set forth (or referred to, as the case may be) in this Section 2 (together, the “Restrictive Covenants”) are reasonable and necessary to protect the Company’s and its affiliates’ trade secrets and other confidential and proprietary information, good will, stable workforce, and customer relations.
Without limiting the generality of the Executive’s agreement in the preceding paragraph, the Executive (i) represents that he is familiar with and has carefully considered the Restrictive Covenants, (ii) represents that he is fully aware of his obligations hereunder, (iii) agrees to the reasonableness of the length of time, scope and geographic coverage, as applicable, of the Restrictive Covenants, (iv) agrees that the Company and its affiliates currently conduct business throughout North America, and (v) agrees that the Restrictive Covenants will continue in effect for the applicable periods contemplated by the Restrictive Covenants regardless of whether the Executive is then entitled to receive severance pay or benefits from the Company.  The Executive understands that the Restrictive Covenants may limit his ability to earn a livelihood in a business similar to the business of the Company and any of its affiliates, but he nevertheless believes that he has received and will receive sufficient consideration and other benefits as an employee of the Company and as otherwise provided hereunder or as described in the recitals hereto to clearly justify such restrictions which, in any event (given his education, skills and ability), the Executive does not believe would prevent him from otherwise earning a living.  The Executive agrees that the Restrictive Covenants do not confer a benefit upon the Company disproportionate to the detriment of the Executive.
2.9       Enforcement.  The Executive agrees that the Executive’s services are unique and that he has access to confidential information of the Company and its affiliates.  Accordingly, the Executive agrees that a breach by the Executive of any of the Restrictive Covenants may cause immediate and irreparable harm to the Company that would be difficult or impossible to measure, and that damages to the Company for any such injury would therefore be an inadequate remedy for any such breach.  Therefore, the Executive agrees that in the event of any breach or threatened breach of any Restrictive Covenant, the Company shall be entitled, in addition to and without limitation upon all other remedies the Company may have under this Agreement or otherwise, at law or otherwise, to obtain specific performance, injunctive relief and/or other appropriate relief (without posting any bond or deposit) in order to enforce or prevent any violations of the Restrictive Covenants, or require the Executive to account for and pay over to the Company all compensation, profits, moneys, accruals, increments or other benefits derived from or received as a result of any transactions constituting a breach of the Restrictive Covenants, if and when final judgment of a court of competent jurisdiction is so entered against the Executive.
2.10     No Breach of Contract.  The Executive hereby represents to the Company and agrees that: (i) the execution and delivery of this Agreement by the Executive and the Company, the Executive’s employment by the Company, and the performance by the Executive of
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the Executive’s duties to the Company do not and shall not constitute a breach of, conflict with, or otherwise contravene or cause a default under, the terms of any other agreement or policy to which the Executive is a party or otherwise bound or any judgment, order or decree to which the Executive is subject; (ii) the Executive will not enter into any new agreement that would or reasonably could contravene or cause a default by the Executive under this Agreement; (iii) the Executive has no information (including, without limitation, confidential information and trade secrets) relating to any other Person which would prevent, or be violated by, the Executive entering into this Agreement or carrying out his duties hereunder; (iv) the Executive is not bound by any employment, consulting, non-compete, non-solicitation, confidentiality, trade secret or similar agreement (other than this Agreement) with any other Person; (v) to the extent the Executive has any confidential or similar information that he is not free to disclose to the Company, he will not disclose such information to the extent such disclosure would violate applicable law or any other agreement or policy to which the Executive is a party or by which the Executive is otherwise bound; and (vi) the Executive understands the Company will rely upon the accuracy and truth of the representations and warranties of the Executive set forth herein and the Executive consents to such reliance.
3. MISCELLANEOUS
3.1       No Assignment by the Executive.  This Agreement is personal to the Executive and will not be assignable by the Executive.
3.2       Legal Counsel; Mutual Drafting.  Each party recognizes that this is a legally binding contract and acknowledges and agrees that they have had the opportunity to consult with legal counsel of their choice.  Each party has cooperated in the drafting, negotiation and preparation of this Agreement.  Hence, in any construction to be made of this Agreement, the same shall not be construed against either party on the basis of that party being the drafter of such language.  The Executive agrees and acknowledges that he has read and understands this Agreement, is entering into it freely and voluntarily, and has been advised to seek counsel prior to entering into this Agreement and has had ample opportunity to do so.
3.3       Arbitration.
3.3.1    Scope.  Subject to Section 2.9, any controversy or claim arising out of or relating to (a) the Executive’s employment with the Company, (b) the termination of that employment, (c) this Agreement, (d) the interpretation or enforcement of this Agreement, (f) any alleged breach, default, or misrepresentation in connection with this Agreement, or (g) any other dispute or claim between the Executive and the Company, whether arising in contract, tort, common law or statute, or because of an alleged breach, default, or misrepresentation in connection with any of the provisions of any such agreement, including (without limitation) any state or federal statutory claims, shall be submitted to arbitration in Salt Lake City, Utah, before a sole arbitrator selected from Judicial Arbitration and Mediation Services, Inc. or its successor (“JAMS”), or if JAMS is no longer able to supply the arbitrator, such arbitrator shall be selected from the American Arbitration Association; provided, however, that provisional injunctive relief may, but
​

12

​
need not, be sought in a court of law while arbitration proceedings are pending, and any provisional injunctive relief granted by such court shall remain effective until the matter is finally determined by the arbitrator. The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures. Judgment on the award may be entered in any court having jurisdiction.  This arbitration provision covers all disputes or claims that the Executive may have against the Company and any affiliated party, and also covers any claims that the Company may have against the Executive.  The parties agree that the arbitrator will not impose punitive damages or any similar penalty and hereby waive any right to make a claim for any such damages.  The parties acknowledge and agree that they are hereby waiving any rights to trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other in connection with any matter whatsoever arising out of or in any way connected with any of the matters referenced in the first sentence of this paragraph.
3.3.2    Arbitrator’s Authority.  The arbitrator will have exclusive authority to (a) resolve any dispute as to whether any claim or matter is subject to this Section 3.3; (b) supervise discovery; (c) rule on pre-hearing disputes; (d) rule on motions, including motions for summary adjudication; (e) conduct hearings, and (f) make a final decision on the claim or matter being arbitrated.  Remedies, substantive law and statutes of limitations will be the same as they would be in a court.  The arbitrator will render a final decision in writing, together with a summary statement of the conclusions upon which the decision is based.
3.3.3    Costs.  The Company will pay the forum costs of the arbitration itself (including arbitration fees and the fees and expenses of the arbitrator and court reporters).  Each party will pay the costs of presenting its case, including the fees and expenses of its counsel, unless an applicable statute requires otherwise.  Unless otherwise required or limited by statute, the arbitrator shall have the discretion to award the party prevailing in the arbitration, in addition to all other relief, reasonable attorneys’ fees and expenses relating to the arbitration (other than the forum costs referred to in the first sentence of this paragraph).
3.4       Binding on Successors.  This Agreement will inure to the benefit of and be binding upon the Company and its successors and assigns.  Any such successor or assignee will be deemed substituted for the Company under the terms of this Agreement for all purposes.  As used in this Agreement, “successor” and “assignee” will include any person or business entity that at any time, whether by purchase, merger or otherwise, directly or indirectly acquires the equity of the Company or to which the Company assigns this Agreement by operation of law or otherwise.
3.5       Amendments.  This Agreement cannot be amended or modified other than by a written agreement executed by the Executive and by an officer of the Company (other than the Executive) authorized by the Board (or a committee thereof) to execute such amendment or modification on the Company’s behalf.
3.6       Severability.  It is the desire and intent of the parties hereto that the provisions of this Agreement be enforced to the fullest extent permissible under the laws and public policies applied in each jurisdiction in which enforcement is sought.  If any provision of
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this Agreement or its application is held by a court of competent jurisdiction to be invalid or unenforceable, the invalidity or unenforceability will not affect the other provisions or applications of this Agreement that can be given effect without the invalid or unenforceable provisions or applications.  To this end, the provisions of this Agreement are declared severable.  Furthermore, in lieu of such invalid or unenforceable provision there will be added automatically as a part of this Agreement, a legal, valid and enforceable provision as similar in terms to such invalid or unenforceable provision as may be possible.  Notwithstanding the foregoing, if such provision could be more narrowly drawn (as to geographic scope, period of duration or otherwise) so as not to be invalid, prohibited or unenforceable in such jurisdiction, it shall, as to such jurisdiction, be so narrowly drawn, without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
3.7       Waiver of Breach.  No waiver of any breach of any provision of this Agreement will be construed to be, or will be, a waiver of any other breach of this Agreement.  No waiver will be binding unless in writing and signed by the party waiving the breach.
3.8       Notices.  Either party can change its address for notice purposes by giving written notice to the other party.  Any notice or other communication required or permitted to be given under this Agreement will be in writing and will be sent by (a) nationally-recognized courier service; or (b) certified United States mail, return receipt requested, postage prepaid, and will be addressed to the parties at the following mailing addresses:
If to the Company:
​
The Board of Directors of Sportsman’s Warehouse Holdings, Inc.
1475 West 9000 South, Suite A
West Jordan, Utah 84088
​
If to the Executive, to the Executive at his last address reflected in the Company’s records.
​
Any notice or other communication will be deemed to be given, as applicable, (a)  on the third day after the date of deposit in the United States mail; or (b) the date of delivery by nationally-recognized courier service.
3.9       Entire Agreement.  This Agreement constitutes and contains the entire agreement and final understanding between the parties concerning the Executive’s employment with the Company and the related subject matters addressed in this Agreement.  It supersedes and replaces all prior negotiations and all agreements, written or oral, concerning the Executive’s employment by the Company and such other subject matters.  Any prior negotiations, correspondence, agreements, proposals or understandings relating to any such matter shall be deemed to have been merged into this Agreement, and to the extent inconsistent herewith, such negotiations, correspondence, agreements, proposals, or understandings shall be deemed to be of no force or effect.  There are no representations, warranties, or agreements, whether express or implied, or oral or written, with respect to the subject matter hereof, except as expressly set forth herein.
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3.10     Governing Law.  Utah law (without regard to conflict-of-laws principles of the laws of the State of Utah or any other jurisdiction) will govern this Agreement and its interpretation and enforcement.
3.11     Withholding.  The Company may withhold from any payments due the Executive under this Agreement the amounts required by applicable tax or other laws.
3.12     Section 409A.
(a)        It is intended that any amounts payable under this Agreement will comply with and avoid the imputation of any tax, penalty or interest under Section 409A of the Internal Revenue Code of 1986, as amended (including the Treasury Regulations and other published guidance related thereto) (“Section 409A”).  This Agreement will be construed and interpreted consistent with that intent.  Any installment payments provided for in this Agreement shall be treated as a series of separate payments for purposes of Code Section 409A.
(b)        To the extent that any reimbursement pursuant to this Agreement is taxable to the Executive, the Executive will provide the Company with documentation of the related expenses promptly so as to facilitate the timing of the reimbursement payment contemplated by this paragraph, and any reimbursement payment due to the Executive pursuant to such provision will be paid to the Executive on or before the last day of the Executive’s taxable year following the taxable year in which the related expense was incurred.  Such reimbursement obligations pursuant to this Agreement are not subject to liquidation or exchange for another benefit and the amount of such benefits that the Executive receives in one taxable year will not affect the amount of such benefits that the Executive receives in any other taxable year.
(c)        For purposes of this Agreement, a termination of employment will mean a separation from service as defined in Treasury Regulations Section 1.409A-1(h) without regard to any optional alternative definitions available under that section.
(d)        If Executive is a “specified employee” within the meaning of Section 409A as of the date of the Executive’s “separation from service” (as defined under Section 409A), Executive shall not be entitled to any payment or benefit pursuant to this Agreement until the earlier of (i) the date which is six (6) months after Executive’s separation from service for any reason other than death, or (ii) the date of the death.  The provisions of this paragraph shall only apply if, and to the extent, required to avoid the imputation of any tax, penalty or interest pursuant to Code Section 409A.  Any amounts otherwise payable to Executive upon or in the six (6) month period following Executive’s separation from service that are not so paid by reason of this paragraph shall be paid (without interest) as soon as practicable (and in all events within thirty (30) days) after the date that is six (6) months after Executive’s separation from service (or, if earlier, as soon as practicable, and in all events within thirty (30) days, after the date of Executive’s death).
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(e)        None of the Company, its affiliates or any of their respective officers, directors, employees, owners or shareholders shall be held liable for any taxes, interest, penalties or other amounts owed by Executive as a result of the compensation and benefits contemplated by this Agreement (including, without limitation, by application of Section 409A), subject to the Company’s withholding right pursuant to Section 3.11.
3.13     Number and Gender; Examples.  Where the context requires, the singular shall include the plural, the plural shall include the singular, and any gender shall include all other genders.  Where specific language is used to clarify by example a general statement contained herein, such specific language shall not be deemed to modify, limit or restrict in any manner the construction of the general statement to which it relates.
3.14     Section Headings.  The section headings of, and titles of paragraphs and subparagraphs contained in, this Agreement are for the purpose of convenience only, and they neither form a part of this Agreement nor are they to be used in the construction or interpretation thereof.
3.15     Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as against any party whose signature appears thereon, and all of which together shall constitute one and the same instrument.  This Agreement shall become binding when one or more counterparts hereof, individually or taken together, shall bear the signatures of all of the parties reflected hereon as the signatories.  Photographic copies of such signed counterparts may be used in lieu of the originals for any purpose.
[The remainder of this page has intentionally been left blank.]
​
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The parties have executed this Agreement as of the Effective Date.
​
	​

	

	

	​
	/s/ Jeff White

	​
	Jeff White

	​
	​

	​
	​

	​
	Sportsman’s Warehouse Holdings, Inc.

	​
	​

	​
	​

		
		By:
	/s/ Jon Barker

			Jon Barker

		Its:
	Chief Executive Officer

​

17Exhibit 10.7

 

2020 UNIT OPTION PLAN

OF

FLUENCE ENERGY, LLC

 

Fluence Energy, LLC a Delaware
limited liability company (the “Company”), hereby adopts this 2020 Unit Option Plan of Fluence Energy, LLC (the “Plan”),
effective as of December 23, 2020. The purposes of the Plan are as follows:

 

(1)           
To further the growth, development and financial success of the Company and its Subsidiaries by providing additional incentives to Employees,
Consultants and Directors (as such terms are defined below) of the Company and its Subsidiaries thereby enabling them to benefit directly
from the growth, development and financial success of the Company and its Subsidiaries.

 

(2)           
To enable the Company and its Subsidiaries to obtain and retain the services of the type of professional, technical and managerial Employees,
Consultants and Directors considered essential to the long-range success of the Company and its Subsidiaries by providing and offering
them an opportunity to become owners of Units through the exercise of Options (as defined herein).

 

ARTICLE I.

DEFINITIONS

 

Whenever the following terms
are used in this Plan, they shall have the meaning specified below unless the context clearly indicates to the contrary. The singular
pronoun shall include the plural where the context so indicates. Capitalized terms used but not otherwise defined in this Plan shall have
the meanings set forth in the Second Amended and Restated Fluence Energy, LLC Limited Liability Company Agreement entered into as of December
29, 2020, as it may be amended from time to time (the “LLC Agreement”).

 

Section 1.1         “Administrator”
shall mean the administrator of the Plan as set forth in Section 6.1. For the avoidance of doubt, the Board shall be the administrator
of the Plan for all Options granted to Directors.

 

Section 1.2          “Board” shall mean
the Board of Directors of the Company. Section 1.3 “Class A-1 Units” shall mean the Class A-1 Units of the Company.

 

Section 1.4          “Code” shall mean the Internal Revenue Code of 1986, as amended.

 

Section 1.5          “Committee”
shall mean the Committee appointed as the Administrator of the Plan, if any.

 

Section 1.6          “Company”
shall mean Fluence Energy, LLC, a Delaware limited liability company.

 

     

     

    

 

Section
1.7          “Company Event” shall mean, as determined by
the Board in its sole discretion, any transaction or event described in Section 7.1(a) or any unusual or nonrecurring transaction or
event affecting the Company, any Affiliate of the Company, or the financial statements of the Company or any Affiliate of the
Company, or any change in applicable laws, regulations, or accounting principles.

 

Section 1.8          “Consultant”
shall mean any consultant or adviser (other than a Director) if: (a) the consultant or adviser renders bona fide services to the
Company or a Subsidiary thereof; (b) the services rendered by the consultant or adviser are not in connection with the offer or sale
of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s
securities; and (c) the consultant or adviser is a natural person.

 

Section 1.9          “Director” shall mean
any member of the Board.

 

Section 1.10      “
Eligible Representative” for an Optionee shall mean such Optionee’s personal representative or such other person as
is empowered under a deceased Optionee’s will or the then-applicable laws of descent and distribution to represent the Optionee
hereunder.

 

Section 1.11       “Employee”
shall mean any employee (as defined in accordance with the regulations and revenue rulings then applicable under Section 3401(c) of the
Code) of the Company or one of its Subsidiaries.

 

Section 1.12        “Equity
Restructuring” shall mean a non-reciprocal transaction between the Company and its unitholders, such as a unit dividend, unit
split, spin-off, rights offering or recapitalization through a large, nonrecurring cash distribution, that affects the Units (or other
securities of the Company) or the value of the Units (or other securities of the Company) and causes a change in the per unit value of
the Class A-1 Units underlying outstanding Options.

 

Section 1.13         “Fair Market Value”
of a Unit as of a given date shall be:

 

(a)           The closing price of a Unit
on the New York Stock Exchange, Nasdaq or such other principal exchange on which such units are then trading, if any (or as reported on
any composite index which includes the New York Stock Exchange, Nasdaq or such other principal exchange), on the most recent trading day
prior to such determination date on which a sale occurred; or

 

(b)          If Units are not traded
on an exchange but are quoted on a quotation system, the mean between the closing representative bid and asked prices for a Unit on the
most recent trading day prior to such determination date on which sales prices or bid and asked prices, as applicable, are reported by
such quotation system; or

 

(c)           If Units are not publicly
traded on an exchange and not quoted on a quotation system, the fair market value of a Unit as determined by the Board in its sole discretion.

 

    2 

     

    

 

Section 1.14         “Liquidation
Event” shall mean unless (i) the Requisite Class A Majority and (ii) the Requisite Class B Majority elect otherwise by written
notice sent to the Company at least five (5) Business Days prior to the effective date of any such event:

 

(a)          
a merger or consolidation or any similar transaction or series of related similar transactions in which (i) the Company is a constituent
party or (ii) a subsidiary of the Company is a constituent party and the Company issues Units pursuant to such merger, consolidation,
similar transaction or series of related similar transactions; provided, however, that any merger, consolidation, or similar
transaction or series of related similar transactions involving the Company or a subsidiary in which the Units outstanding immediately
prior to such merger, consolidation or similar transaction or series of related similar transactions continue to represent, immediately
following such transaction or series of related transactions, at least a majority, by voting power of the Equity Securities of (A) the
surviving or resulting entity or (B) if the surviving or resulting entity is a wholly-owned subsidiary of another entity immediately following
such merger, consolidation or similar transaction or series of transactions, the parent entity of such surviving or resulting entity shall
not constitute a Deemed Liquidation Event; or

 

(b)           the sale, lease, transfer, exclusive license or other disposition, in a single transaction or series of related transactions, by the Company
or any subsidiary of the Company of all or substantially all the assets of the Company and its subsidiaries taken as a whole or (ii) the
sale or disposition (whether by merger, consolidation or otherwise, and whether in a single transaction or a series of related transactions)
of one (1) or more subsidiaries of the Company if substantially all of the assets of the Company and its subsidiaries taken as a whole
are held by such subsidiary or subsidiaries, except where such sale, lease, transfer, exclusive license or other disposition is to a wholly
owned subsidiary of the Company.

 

Section 1.15          “Option”
shall mean an option granted under the Plan to purchase Class A-1 Units.

 

Section 1.16          “Optionee”
shall mean an Employee, Consultant or Director to whom an Option is granted under the Plan.

 

Section 1.17           “Plan”
shall mean this 2020 Unit Option Plan of Fluence Energy, LLC, as amended from time to time.

 

Section 1.18           “Principal
Unitholders” shall mean (a) AES Grid Stability, LLC, and (b) Siemens Industry, Inc. and their respective Affiliates.

 

Section 1.19          “Rule
16b-3” shall mean Rule 16b-3 promulgated under the Exchange Act, as such Rule may be amended from time to time.

 

Section 1.20         “Termination
of Consultancy” shall mean the time when the engagement of an Optionee as a Consultant to the Company or a Subsidiary thereof
is terminated for any reason, with or without Cause, including, but not by way of limitation, by resignation, discharge, death or retirement,
but excluding a termination where there is a simultaneous commencement of employment with the Company or any Subsidiary thereof and/or
the Consultant becomes (or remains) a Director. The Administrator, in its sole discretion, shall determine the effect of all matters and
questions relating to Termination of Consultancy.

 

    3 

     

    

 

Section 1.21         “
Termination of Directorship” shall mean the time when an Optionee who is a Director ceases to be a Director for any reason,
including but not by way of limitation, a termination by resignation, failure to be elected or appointed, death or retirement but excluding
a termination where there is a simultaneous commencement of employment with the Company or any Subsidiary thereof. The Board, in its sole
discretion, shall determine the effect of all matters and questions relating to Termination of a Director.

 

Section 1.22         “Termination
of Employment” shall mean the time when the employee-employer relationship between an Optionee and the Company (and its Subsidiaries),
is terminated for any reason, with or without Cause, including, but not by way of limitation, a termination by resignation, discharge,
death or retirement, but excluding a termination where there is a simultaneous reemployment by the Company or one of its Subsidiaries
of the Employee and/or the Employee becomes a Director. The Administrator shall determine the effect of all matters and questions relating
to Termination of Employment for purposes of the Plan, including, but not by way of limitation, the question of whether a Termination
of Employment resulted from a discharge for Cause for purposes of the Plan, and all questions of whether a particular furlough or leave
of absence constitutes a Termination of Employment for purposes of the Plan.

 

Section 1.23          “Termination
of Services” shall mean the time of any Termination of Employment, Termination of Consultancy or Termination of Directorship,
as applicable, following which an Optionee no longer provides any services to the Company or any Subsidiary thereof as (a) an Employee,
(b) a Consultant, or (c) a Director.

 

Section 1.24          “Units” shall mean
the Class A-1 Units.

 

Section 1.25          “Unit Option Agreement”
shall have the meaning set forth in Section 4.1.

 

ARTICLE II.

UNITS SUBJECT TO PLAN

 

Section 2.1            Units
Subject to Plan. The Units subject to Options shall be Class A-1 Units. Subject to Section 7.1, the aggregate number of Class
A-1 Units which may be issued upon exercise of Options shall not exceed 1,080,000.

 

Section 2.2            Substitute
Awards. In connection with a merger or consolidation of an entity with the Company or the acquisition by the Company of property or
stock of an entity, the Administrator may grant Options in substitution for any options granted prior to such merger or consolidation
by such entity or an affiliate thereof. Substitute awards may be granted on such terms as the Administrator deems appropriate in the circumstances,
notwithstanding any limitations on Options contained in the Plan. Substitute awards shall not count against the overall unit limit set
forth in Section 2.1 hereof.

 

Section 2.3            Unexercised
Options. If any Option (or portion thereof) expires or is canceled without having been fully exercised, the number of Class A-1 Units
subject to such Option (or portion thereof) that so expires or is so cancelled without having been fully exercised shall not be counted
against the maximum set forth in Section 2.1 and shall again be available for grant.

 

    4 

     

    

 

ARTICLE III.

GRANTING OF OPTIONS

 

Section 3.1             Eligibility.
Any (a) Employee; (b) Consultant; or (c) Director shall be eligible to be granted Options.

 

Section 3.2             Granting of Options to Employees and Consultants

 

(a)            The Administrator
shall from time to time:

 

(i)           Select the Employees,
Consultants and Directors (including those to whom Options have been previously granted under the Plan) that are eligible to receive Options;

 

(ii)            Determine the number
of Class A-1 Units to be subject to such Options granted to such Employees and Consultants; and

 

(iii)          Determine
the terms and conditions of such Options, consistent with the Plan.

 

(b)            Upon the selection of an
Employee, Consultant or Director to be granted an Option pursuant to Section 3.2(a), the Administrator shall instruct the corporate secretary
or another authorized Officer of the Company to issue such Option and may impose such conditions on the grant of such Option as it deems
appropriate.

 

ARTICLE IV.

TERMS OF OPTIONS

 

Section 4.1            Unit
Option Agreement. Each Option shall be evidenced by a written unit option agreement (“Unit Option Agreement”),
which shall be executed by the Optionee and an authorized Officer of the Company and which shall contain such terms and conditions as
the Administrator shall determine, consistent with the Plan; provided that, in the event of any conflict between a Unit Option
Agreement and the Plan, the text of the Plan shall control (unless explicitly set forth in the Unit Option Agreement and approved in
writing by the Administrator).

 

Section 4.2              Exercisability of Options

 

(a)            Each Option shall become
exercisable according to the terms of the applicable Unit Option Agreement; provided, however, that the Administrator may,
on such terms and conditions as it may determine to be appropriate, accelerate the time at which such Option or any portion thereof may
be exercised.

 

(b)            Except as otherwise provided
in the applicable Unit Option Agreement or as otherwise determined by the Administrator, no portion of an Option which is unexercisable
at Termination of Services shall thereafter become exercisable.

 

Section
4.3           Option Price. The price of the Class A-1 Units
subject to each Option shall be set by the Administrator; provided, however, that, unless otherwise expressly set forth in
the Unit Option Agreement and approved by the Board, the price per Class A-1 Unit shall be not less than 100% of the Fair Market
Value of such Class A-1 Units on the date such Option is granted.

 

    5 

     

    

 

Section 4.4            
Expiration of Options. No Option may be exercised to any extent by anyone after the expiration of ten years from the date the
Option was granted (or such earlier date as may be set forth in any applicable Unit Option Agreement); or

 

Section 4.5           At-Will
Services. Nothing in the Plan or in any Unit Option Agreement hereunder shall confer upon any Optionee any right to continue in the
employ of, or service as a Consultant or Director to, the Company or any Subsidiary thereof, or shall interfere with or restrict in any
way the rights of the Company and any Subsidiary thereof, which are hereby expressly reserved, to discharge any Optionee at any time
for any reason whatsoever, with or without Cause, except to the extent expressly provided otherwise in a written agreement between the
Optionee and the Company or any Subsidiary thereof.

 

ARTICLE V.

EXERCISE OF OPTIONS

 

Section 5.1            Person
Eligible to Exercise. During the lifetime of the Optionee, only he or she may exercise an Option (or any portion thereof); provided,
however, that the Optionee’s Eligible Representative may exercise such Optionee’s Option during the period of his
or her disability. After the death of the Optionee, any exercisable portion of an Option may, prior to the time when such portion becomes
unexercisable under the Plan or the applicable Unit Option Agreement, be exercised by his or her Eligible Representative.

 

Section 5.2            Partial
Exercise. At any time and from time to time prior to the time when the Option becomes unexercisable under the Plan or the applicable
Unit Option Agreement, the exercisable portion of an Option may be exercised in whole or in part; provided, however, that
the Company shall not be required to issue fractional Class A-1 Units and the Administrator may, by the terms of the Unit Option Agreement,
require any partial exercise to exceed a specified minimum number of Class A-1 Units.

 

Section 5.3            Manner
of Exercise. An exercisable Option, or any exercisable portion thereof, may be exercised solely by delivery to the corporate secretary
of all of the following prior to the time when such Option or such portion becomes unexercisable under the Plan or the applicable Unit
Option Agreement:

 

(a)             Notice in writing signed
by the Optionee or his or her Eligible Representative stating that such Option or portion is exercised, and specifically stating the number
of Class A-1 Units with respect to which the Option is being exercised;

 

(b)          A copy of the LLC Agreement
or joinder thereto in the Company’s applicable form signed by the Optionee or Eligible Representative, as applicable, and, if requested
by the Company, the Optionee’s spouse;

 

(c)           Full payment for the Class
A-1 Units with respect to which such Option or portion is thereby exercised:

 

		(i)	In cash, by certified or bank cashier check, or by wire transfer; or

  

    6 

     

    

 

 (ii)           Solely to the extent explicitly set forth in the applicable Unit Option Agreement or as otherwise approved in writing by the Administrator, in Units which have been owned by the Optionee for at least six months (or such shorter period as the Administrator determines will not result in adverse accounting or other implications for the Company) duly endorsed for transfer to the Company with a Fair Market Value on the date of Option exercise equal to the aggregate exercise price of the Option or exercised portion thereof; or

 

(iii)           Solely to the extent
explicitly set forth in the applicable Unit Option Agreement or as otherwise approved in writing by the Administrator, following an Initial
Public Offering and pursuant to any policies and procedures adopted by the Administrator, delivery of a notice that the Optionee has placed
a market sell order with a broker with respect to Class A-1 Units (or any successor equity interest thereto) then issuable upon exercise
of the Option, and that the broker has been directed to pay a sufficient portion of the net proceeds of the sale to the Company in satisfaction
of the Option exercise price; or

 

(iv)           In such combination of
the foregoing or any other property as approved in writing by the Administrator.

 

(d)           The payment to the Company
of all amounts necessary to satisfy any and all federal, state, local and foreign tax withholding and similar requirements arising in
connection with the exercise of the Option in one of the forms permitted under Section 5.3(c) (and, for the avoidance of doubt, subject
to any approvals required thereby);

 

(e)           Such representations and
documents as the Administrator deems necessary or advisable to effect compliance with all applicable provisions of the Securities Act,
Exchange Act and any other federal or state securities laws or regulations. The Administrator may, in its sole discretion, also take whatever
additional actions it deems appropriate to effect such compliance including, without limitation, placing legends on unit certificates,
if any, and issuing stop-transfer orders to transfer agents and registrars; and

 

(f)           In the event that the Option
or portion thereof shall be exercised pursuant to Section 5.1 by any person or persons other than the Optionee, appropriate proof of the
right of such person or persons to exercise the Option or portion thereof.

 

Section 5.4            Settlement
Upon Exercise.

 

(a)          Subject to Section 5.4(b),
the Company shall record on the books of the Company any Class A-1 Units purchased upon the exercise of any Option or portion thereof
or issue or deliver any certificate or certificates for Class A-1 Units purchased upon the exercise of any Option or portion thereof,
provided that such recording or issuance or delivery shall not be required prior to fulfillment of all of the following conditions:

 

(i)             The satisfaction of all
conditions set forth in Section 5.3 (as determined by the Administrator);

 

    7 

     

    

 

(ii)            The completion of any
registration (or exemption from registration) or other qualification of such Class A -1 Units under any state or federal law or under
the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory body, which the Administrator
shall, in its sole discretion, deem necessary or advisable;

 

(iii)           The obtaining of any
approval or other clearance from any state or federal governmental agency which the Administrator shall, in its sole discretion, determine
to be reasonably necessary or advisable; and

 

(iv)          The Company shall have
determined that such exercise, purchase, issuance and delivery (and other actions in connection therewith) will not cause the Company
to fail to qualify for the “lack of actual trading” safe harbor under Treasury Regulation Section 1.7704-1(j).

 

(b)           Notwithstanding the foregoing,
to the extent provided in the applicable Unit Option Agreement, the Company may, in lieu of issuing Class A-1 Units, settle the exercise
of an Option (or portion thereof) by payment of an amount equal to the difference between the Fair Market Value of a Class A-1 Unit on
the date of settlement and the applicable Option Price (as defined in Section 4.3 above). The timing and form of such payment shall be
set forth in the applicable Unit Option Agreement, subject to compliance with Section 409A of the Code (if applicable).

 

ARTICLE VI.

ADMINISTRATION

 

Section 6.1           Administrator.
Prior to an Initial Public Offering, the Administrator shall be the Board; provided that the Board may delegate its authority
hereunder in accordance with Section 6.2. Following an Initial Public Offering, if any, the full Board shall administer the Plan unless
and until there is appointed a compensation committee (or another committee or a subcommittee of the Board assuming the functions of
the Administrator under the Plan) that, unless otherwise determined by the Board, shall consist solely of two or more Directors appointed
by and holding office at the pleasure of the Board, each of whom is both a “non-employee director” as defined by Rule 16b-3;
provided that any action taken by the Administrator shall be valid and effective, whether or not members of the Administrator
at the time of such action are later determined not to have satisfied the requirements for membership set forth herein or otherwise provided
in the charter of the Administrator. In its sole discretion, the Board may at any time and from time to time exercise any and all rights
and duties of the Administrator under the Plan except with respect to matters which under Rule 16b-3 (to the extent applicable), or any
regulations or rules issued thereunder, are required to be determined in the sole discretion of the Administrator.

 

Section
6.2           Delegation of Authority. The Board may, but need
not, from time to time delegate some or all of its authority to grant and administer Options under the Plan to the Compensation
Committee or another committee or subcommittee consisting of one or more members of the Administrator or of one or more Officers of
the Company; provided that the Board shall not delegate its authority to grant and/or administer Options for any Directors
and the Board shall solely entitled to grant and administer any such Options;provided, further , that to the extent
the Board delegates authority to any Officers of the Company, such delegation does not include authority to make or administer any
grants to any Officers of the Company. Any delegation hereunder shall be subject to the restrictions and limits that the Board
specifies at the time of such delegation, and the Board may at any time rescind the authority so delegated or appoint a new
delegatee. At all times, the delegatee appointed under this Section 6.2 shall serve in such capacity at the pleasure of the
Board.

 

    8 

     

    

 

Section 6.3           Duties
and Powers of the Administrator. It shall be the duty of the Administrator to conduct the general administration of the Plan in accordance
with its provisions. Without limiting the foregoing, the Administrator shall have the power to (a) interpret the Plan and the Options
and to adopt such rules for the administration, interpretation and application of the Plan as are consistent therewith and to interpret,
amend or revoke any such rules; and (b) modify the Options granted to Optionees who are foreign nationals or who provide services outside
of the United States or establish subplans or procedures under the Plan to address differences in laws, rules, regulations or customs
of such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other matters and each such subplan or procedure
shall, to the extent determined appropriate by the Administrator, be deemed incorporated by reference in full to the Plan. All determinations
and decisions made by the Administrator under any provision of the Plan or of any Option granted thereunder shall be final, conclusive
and binding on all persons.

 

Section 6.4          Professional
Assistance, Good Faith Actions. All expenses and liabilities incurred by the members of the Administrator in connection with the
administration of the Plan shall be borne by the Company. The Administrator may engage attorneys, consultants, accountants, appraisers,
brokers or other persons as it determines appropriate. The Administrator, the Company and its Officers and Directors shall be entitled
to rely upon the advice, opinions or valuations of any such persons. All actions taken and all interpretations and determinations made
by the Administrator shall be final and binding upon all Optionees, the Company and all other interested Persons. No member of the Board
or Officer shall be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or
the Options, and all members of the Board and Officers shall be indemnified by the Company, to the fullest extent permitted by law, in
respect to any such action, determination or interpretation.

 

ARTICLE VII.

OTHER PROVISIONS

 

Section 7.1              Changes
in Units; Disposition of Assets and Company Events

 

(a)         Subject to Section
7.1(d), in the event that the Board determines in its sole discretion that any extraordinary distribution, recapitalization,
reclassification, unit split, reverse unit split, reorganization, merger, consolidation, combination, repurchase, liquidation,
dissolution, or sale, transfer, exchange or other disposition of all or substantially all of the assets of the Company, exchange of
Units or other securities of the Company, issuance of warrants or other rights to purchase Units or other securities of the Company,
or other similar corporate transaction or event (other than an Equity Restructuring), affects the Units such that an adjustment is
determined by the Board to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended
to be made available under the Plan or with respect to an Option, then the Board may, in such manner as it may deem equitable in its
discretion, adjust any or all of:

 

(i)             The number and kind of
Class A-1 Units (or other securities or property) with respect to which Options may be granted under the Plan (including, but not limited
to, adjustments of the limitations in Section 2.1 on the maximum number and kind of units which may be issued);

 

    9 

     

    

 

(ii)           The number and kind of
Class A-1 Units (or other securities or property) subject to outstanding Options;

 

		(iii)	The exercise price with respect to any Option; and

 

 (iv)          The financial or other “targets” specified in each Unit Option Agreement for determining the exercisability of Options, if applicable.

  

For the avoidance of doubt, the Board is not required
to make any of the adjustments described above in connection with a distribution by the Company, except as it deems appropriate in its
sole discretion.

 

(b)         Without limiting Section
7.1(c) and subject to Section 7.1(d) and the terms of outstanding Unit Option Agreements, upon the occurrence of a Company Event or other
transaction or event described in Section 7.1(a) or any unusual or nonrecurring transactions or events affecting the Company, any Affiliate
of the Company, or the financial statements of the Company or any Affiliate (including, without limitation, an Initial Public Offering),
or of changes in applicable laws, regulations, or accounting principles, as a result of which the Board determines in its sole discretion
that action is appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available
under the Plan or with respect to any Option under this Plan, to facilitate such Company Event or transactions or events (including, without
limitation, any restructuring, recapitalization or similar occurrences related to any Initial Public Offering), or to give effect to such
changes in laws, regulations or principles, the Board, in its sole discretion, is hereby authorized to take any one or more of the following
actions on such terms and conditions at it deems appropriate (whether set forth in the terms of the applicable Unit Option Agreement or
otherwise by action taken prior to or in connection with the occurrence of such Company Event or transaction or event):

 

(i)           Provide, either automatically
or upon the Optionee’s request, for either (A) the cancellation of any such Option in exchange for an amount of cash, securities,
or other property equal to the amount that could have been attained upon the exercise of the vested portion of such Option immediately
prior to the occurrence of such transaction or event (and, for the avoidance of doubt, if as of the date of the occurrence of such transaction
or event, the Board determines that no amount would have been obtained upon the exercise of the vested portion of such Option, then the
Option may be cancelled by the Company without payment), or (B) the replacement of such Option with other rights, cash, securities or
other property selected by the Board;

 

    10 

     

    

 

(ii)           Provide that the Option
(or any portion thereof) will be terminated and cannot be exercised after such event;

 

(iii)           Provide that for a specified
period of time prior to such Company Event, such Option shall be exercisable as to all units covered thereby or a specified portion of
such units, notwithstanding anything to the contrary in this Plan or the applicable Unit Option Agreement and, if such Option is not exercised
prior to such Company Event or transaction or event, it shall expire;

 

(iv)           Provide such Option (or
any portion thereof) shall be assumed by the successor or surviving entity in the Company Event or transaction or event, or a parent or
Subsidiary thereof, or shall be substituted for by similar options, rights or awards covering the stock of such successor or surviving
corporation, or a parent or Subsidiary thereof, with appropriate adjustments as to the number and kind of equity interests and prices;

 

(v)          Make adjustments in the
number and type of Class A-1 Units (or other securities or property) subject to outstanding Options (or any portion thereof) and/or in
the terms and conditions of (including the exercise price), and the criteria included in, outstanding Options and Options which may be
granted in the future; and

 

(vi)           For
reasons of administrative convenience or otherwise, provide that some or all Options may not be exercised during a specified period of
not more than thirty (30) days prior to the consummation of a Company Event or transaction or event.

 

		(c)	In connection with the occurrence of any Equity Restructuring:

 

(i)           The number and type of
securities subject to each outstanding Option and the exercise price thereof, if applicable, shall be equitably adjusted in accordance
with this Section 7.1(c). The adjustments provided under this Section 7.1(c) shall be nondiscretionary and shall be final and binding
on the affected Optionee and the Company.

 

(ii)          The Board shall make
such equitable adjustments, if any, as the Board in its discretion may deem appropriate to reflect such Equity Restructuring with respect
to the aggregate number and kind of Class A-1 Units (or other securities or property) that may be issued under the Plan (including, but
not limited to, adjustments of the limitation set forth in Section 2.1).

 

(d)          If any rounding of the number
of Class A-1 Units subject to any Option is required in connection with any adjustment or action described in this Section 7.1, the number
of Class A-1 Units subject to such Option shall be rounded down to the nearest hundredth and the exercise price of any Option shall be
rounded up to the nearest cent.

 

(e)           Notwithstanding the foregoing
provisions of this Section 7.1, unless otherwise determined by the Board, no adjustments described in this Section 7.1 shall be made in
connection with (i) any equity investment by the Company’s unitholders in the Company pursuant to a Company Event in connection
with which the Class A-1 Units are sold at the then-current Fair Market Value or (ii) any equity investment by third parties at the then-current
Fair Market Value which results in a dilution of ownership of any or all of the Units.

 

    11 

     

    

 

Section 7.2           Options
Not Transferable. No Option or interest or right therein or part thereof shall be liable for the debts, contracts or engagements
of the Optionee or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge,
encumbrance, assignment or any other means whether such disposition be voluntary or involuntary or by operation of law, by judgment,
levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any attempted disposition thereof
shall be null and void and of no effect; provided, however, that nothing in this Section 7.2 shall prevent transfers by
will or by the applicable laws of descent and distribution.

 

Section 7.3           Amendment,
Suspension or Termination of the Plan. The Plan may be wholly or partially amended or otherwise modified, suspended or terminated
at any time or from time to time by the Board. However, without unitholder approval within twelve (12) months before or after such action,
no action of the Board may, except as provided in Section 7.1, increase any limit imposed in Section 2.1 on the maximum number of units
which may be issued on exercise of Options or extend the period set forth in this Section 7.3 during which Options may be granted. Except
as provided by Section 7.1, any amendment, suspension nor termination of the Plan that materially and adversely affects any Option in
a disproportionate manner as compared to other similarly-situated Options shall not be effective without the consent of the holder of
the Option so affected. No Option may be granted during any period of suspension nor after termination of the Plan, and in no event may
any Option be granted under this Plan after the expiration of ten years from the date the Plan is adopted by the Board. For the avoidance
of doubt, nothing herein or in any Unit Option Agreement shall limit or otherwise affect the ability to amend or modify the LLC Agreement
in accordance with its terms (including, without limitation, any amendment or modification of the rights and obligations of the Class
A-1 Units thereunder (including any applicable tag-along, drag-along, registration, lock-up, right of first refusal or other similar
rights associated with such Class A-1 Units)) and any amendment to increase the number of outstanding units of the Company or to add
a new class of units, including any class with rights superior to those of the Class A-1 Units and no consent or action from any Optionee
shall be required in order to effect any such amendment or modification.

 

Section 7.4           Effect
of Plan Upon Other Option and Compensation Plans. The adoption of this Plan shall not affect any other compensation or incentive
plans in effect for the Company or any Affiliate. Nothing in this Plan shall be construed to limit the right of the Company or any Affiliate
(a) to establish any other forms of incentives or compensation for managers, employees or consultants of the Company or any Affiliate;
or (b) to grant or assume options otherwise than under this Plan in connection with any proper corporate purpose, including, but not
by way of limitation, the grant or assumption of options in connection with the acquisition by purchase, lease, merger, consolidation
or otherwise, of the business, stock or assets of any corporation, firm or association.

 

Section 7.5          
Titles and Headings. Titles and headings are provided herein for convenience only and are not to serve as a basis for interpretation
or construction of the Plan.

 

Section
7.6           Conformity to Securities Laws. The Plan is intended to
conform to the extent necessary with all provisions of (a) the Securities Act and the Exchange Act and any and all regulations and
rules promulgated by the Securities and Exchange Commission thereunder and (b) any applicable state and local securities laws and
any and all regulations and rules promulgated by any applicable state or local regulatory authority thereunder, in each case to the
extent the Company or any Optionee is subject to the provisions thereof. Notwithstanding anything herein to the contrary, the Plan
shall be administered, and Options shall be granted and may be exercised, only in such a manner as to conform to such laws, rules
and regulations. To the extent permitted by applicable law, the Plan and Options granted hereunder shall be deemed amended to the
extent necessary to conform to such laws, rules and regulations.

 

    12 

     

    

 

Section 7.7           Governing
Law. To the extent not preempted by federal law, the Plan shall be construed in accordance with and governed by the internal laws
of the State of Delaware, without regard to the principles of conflicts of law thereof, or principles of conflicts of law of any other
jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Delaware.

 

Section 7.8           Severability.
In the event any portion of the Plan or any action taken pursuant thereto shall be held illegal or invalid for any reason, the illegality
or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid
provisions had not been included, and the illegal or invalid action shall be null and void.

 

Section 7.9           Electronic
Delivery. The Company may, in its sole discretion, deliver any documents or disclosures related to current or future
participation in the Plan by electronic means. The Participant hereby consents to receive such documents by electronic delivery.

 

Section 7.10           Section
409A. To the extent applicable, the Plan and Unit Option Agreements shall be interpreted in accordance with Section 409A of the Code
and the Department of Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of the Plan
to the contrary, in the event that the Board determines that any Option may be subject to Section 409A of the Code, the Board may adopt
such amendments to the Plan and the applicable Unit Option Agreement or adopt other policies and procedures (including amendments, policies
and procedures with retroactive effect), or take any other actions, that the Board determines are necessary or appropriate to (a) exempt
the Option from Section 409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Option,
or (b) comply with the requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application
of penalty taxes under Section 409A of the Code. Notwithstanding anything herein to the contrary, no provision of the Plan or any Unit
Option Agreement shall be interpreted or construed to transfer any liability for failure to comply with the requirements of Section 409A
of the Code from any Optionee or other Person to the Company or any of its Affiliates, employees or agents.

 

* * * * *

 

    13 

     

    

 

I hereby certify that the foregoing Plan was duly
adopted by the Board of Directors of Fluence Energy, LLC as of the date first written above.

 

Executed as of the date first written above.

 

 

	 	 
	 	Officer Name:  Frank Fuselier 
	 	Officer Title:    Secretary

 

    14 

     

    

 

CALIFORNIA SUPPLEMENT

 

This supplement is intended
to satisfy the requirements of Section 25102(o) of the California Corporations Code and the regulations issued thereunder (“Section
25102(o)”). Notwithstanding anything to the contrary contained in the Plan and except as otherwise determined by the Administrator,
the provisions set forth in this supplement shall apply to all Awards granted under the Plan to a Participant who is a resident of the
State of California on the date of grant (a “California Participant”) and which are intended to be exempt from
registration in California pursuant to Section 25102(o), and otherwise to the extent required to comply with applicable law (but only
to such extent). Definitions in the Plan are applicable to this supplement.

 

1.            
Limitation On Securities Issuable Under Plan. The amount of securities issued pursuant to the Plan shall not exceed the
amounts permitted under Section 260.140.45 of the California code of regulations to the extent applicable.

 

2.             
Additional Limitations For Options. The terms of all Options shall comply, to the extent applicable, with Section 260.140.41
of the California code of regulations.

 

3.            
Additional Requirement To Provide Information To California Participants. The company shall provide to each California Participant,
not less frequently than annually, copies of annual financial statements (which need not be audited). The company shall not be required
to provide such statements to key persons whose duties in connection with the company assure their access to equivalent information. In
addition, this information requirement shall not apply to any plan or agreement that complies with all conditions of Rule 701 of the Securities
Act of 1933, as amended; provided that for purposes of determining such compliance, any registered domestic partner shall be considered
a “family member” as that term is defined in Rule 701.

 

 * * * * *

 

    15 

     

    

 

UNIT OPTION AGREEMENT

OF

FLUENCE ENERGY, LLC

 

THIS
AGREEMENT (the “Agreement”) is entered into as of [ n ],
2021 (the “Grant Date”) by and between Fluence Energy, LLC, a Delaware limited liability company (the
 “Company”), and [_____], an employee, consultant or director of the Company or one of its Subsidiaries
(hereinafter referred to as the “Optionee”).

 

WHEREAS, the Board has approved the 2020 Unit Option
Plan of Fluence Energy, LLC (as it may be amended from time to time, the “Plan”), the terms of which are hereby
incorporated by reference and made a part of this Agreement;

 

WHEREAS, the Administrator
(as defined in the Plan) has determined to grant the Option provided for herein to the Optionee as an inducement to enter into or remain
in the service of the Company or one of its Subsidiaries and as an incentive for increased efforts during such service, and has advised
the Company thereof and instructed the undersigned officers to issue said Option; and

 

NOW, THEREFORE, in consideration
of the mutual covenants contained herein and other good and valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto do hereby agree as follows:

 

ARTICLE I.

DEFINITIONS

 

Whenever the following terms
are used in this Agreement, they shall have the meaning specified below unless the context clearly indicates to the contrary. Capitalized
terms used in this Agreement and not defined below shall have the meaning given such terms in the Plan, or if not defined in the Plan,
in the LLC Agreement. The singular pronoun shall include the plural, where the context so indicates.

 

Section 1.1           “Cause”
shall mean (a) “Cause” as defined in the Optionee’s employment or service agreement, or (b) if no such agreement
or if “Cause” is not defined in such agreement, the occurrence of one or more of the following events or conditions, as
determined by the Administrator in good faith, (i) a material breach by the Optionee of any of his or her obligations set forth in
any written agreement with the Company or any of its Affiliates as the same may then be in effect; (ii) fraud, embezzlement, theft
or other material dishonesty by the Optionee in connection with services to or otherwise with respect to the Company or any of its
Affiliates; (iii) the Optionee’s commission of any act or omission that results in or could reasonably be expected to result
in any material damage or harm to the business, property or reputation of the Company or any of its Affiliates; (iv) the
Optionee’s commission of, indictment for, or a plea of nolo contendere to, any felony under any state, federal or foreign law
or any crime involving moral turpitude or dishonesty; (v) the Optionee’s unlawful use (including being under the influence) or
possession of illegal drugs, or repeated intoxication with alcohol, at the premises of the Company or any of its Affiliates or
otherwise while performing (or holding himself or herself as performing) services for or on behalf of the Company or any of its
affiliates; (vi) Optionee’s prolonged and unexcused absence from work (other than by reason of Disability); or (vii) refusal
or failure by the Optionee to attempt in good faith to follow or carry out the reasonable instructions of the Board or the
Optionee’s supervisor which failure, if curable, does not cease within fifteen (15) days after written notice of such failure
is given to the Optionee by the Company or any Affiliate.

 

     

     

    

 

Section 1.2           “Company” shall
have the meaning set forth in the preamble hereto.

 

Section 1.3         “Disability”
shall mean the Board has made a good faith determination that the Optionee has become physically or mentally incapacitated or disabled
such that the Optionee is unable to perform for the Company substantially the same services, with or without accommodation, as the Optionee
performed prior to incurring such incapacity or disability, and such incapacity or disability exists for an aggregate of three (3) calendar
months in any twelve (12) month period. In connection with making such determination, the Company, at its option and expense, shall be
entitled to select and retain a physician to confirm the existence of such incapacity or disability, and the determination made by such
physician shall be binding on the parties for the purposes of this Agreement.

 

Section 1.4          “Grant Date” shall
have the meaning set forth in the preamble hereto.

 

Section 1.5          “Option”
shall mean the Option to purchase Class A-1 Units granted under this Agreement.

 

Section 1.6          “Optionee”
shall have the meaning set forth in the preamble hereto. Section 1.7 “Plan” shall have the meaning set forth
in the Recitals hereto.

 

ARTICLE II.

GRANT OF OPTION

 

Section
2.1            Grant of Option. In consideration of the Optionee’s
agreement to enter into or remain in the employ of, consultancy to or other service relationship with the Company or one of its Subsidiaries
and the Optionee’s agreement to abide by Article IV of this Agreement, and for other good and valuable consideration, as of the
Grant Date, the Company irrevocably grants to the Optionee the Option to purchase any part or all of an aggregate of [___] Class A-1
Units upon the terms and conditions set forth in the Plan and this Agreement.

 

Section 2.2            Option
Subject to Plan. The Option granted hereunder is subject to the terms and provisions of the Plan, including without limitation, Article
V and Sections 7.1, 7.2 and 7.3 thereof.

 

Section
2.3           Option Price.
The purchase price of the Class A-1 Units covered by the Option shall be $[ n ] per Class A-1 Unit (without commission or other charge),
which is not less than 100% of the Fair Market Value of a Class A-1 Unit as of the Grant Date.

 

    2 

     

    

 

ARTICLE III.

EXERCISABILITY

 

Section 3.1            Commencement
of Exercisability.

 

(a)           Vesting Requirements.
Subject to Sections 3.1(d) and 3.3, the Option shall become vested and exercisable upon the satisfaction of the following two criteria:
(1) a service-based requirement (the “Service-Based Requirement”) and (2) a liquidity event requirement (the “Liquidity
Event Requirement”), each as set forth below.

 

(b)           Service-Based Requirement.
The Service-Based Requirement will be satisfied over a three-year period following the Grant Date, as to one-third of the Option on each
of the first, second and third anniversaries of the Grant Date; provided that the Optionee remains continuously employed or engaged
in active service by the Company or any of its Subsidiaries (and no Termination of Services occurs) from the Grant Date through the applicable
anniversary of the Grant Date. Notwithstanding the foregoing, upon the occurrence of a Liquidation Event, the Service-Based Requirement
will be fully satisfied; provided that the Optionee remains continuously employed or engaged in active service by the Company or
any of its Subsidiaries (and no Termination of Services occurs) from the Grant Date through the consummation of such Liquidation Event.

 

(c)           Liquidity Event Requirement.
The Liquidity Event Requirement will be satisfied upon the earlier to occur of (i) a Liquidation Event or (ii) an Initial Public Offering;
provided that the Optionee remains continuously employed or engaged in active service by the Company or any of its Subsidiaries
(and no Termination of Services occurs) from the Grant Date through the consummation of such Liquidation Event or Initial Public Offering,
as applicable.

 

(d)           Termination of Service.
Unless otherwise determined by the Administrator in its sole discretion prior to the date of a Termination of Services, no portion of
the Option which is unexercisable at a Termination of Services for any reason shall thereafter become exercisable. In the event of a Termination
of Services for Cause, such unexercisable portion shall be forfeited as of the date of such Termination of Services. In the event of a
Termination of Services other than for Cause, the portion of the Option which is unexercisable shall remain outstanding for a thirty (30)
day-period (or such shorter period as determined by the Administrator in its sole discretion) following such Termination of Services and,
except as otherwise determined by the Administrator, such unexercisable portion shall be forfeited as of the last day of such period.
For the avoidance of doubt, any portion of the Option which is unexercisable at a Termination of Service for any reason shall only become
vested and exercisable pursuant to action by the Administrator (and, in no event, based on the satisfaction of the Service-Based Requirement
or Liquidity Event Requirement following Termination of Services).

 

Section 3.2            Duration
of Exercisability. The installments provided for in Section 3.1 are cumulative. Each such installment which becomes exercisable pursuant
to Section 3.1 shall remain exercisable until it becomes unexercisable.

 

    3 

     

    

 

Section 3.3             Expiration
of Option. The Option shall expire and may not be exercised to any extent by anyone after the first to occur of the following events:

 

		(a)	The tenth anniversary of the Grant Date; or

 

(b)
         The 90th day following the date of the Optionee’s Termination of Services for any reason other than (i) termination by the
Company for Cause or (ii) due to the Optionee’s death or Disability; or

 

(c)          The
date of the Optionee’s Termination of Services by the Company for Cause; or

 

(d)           The one year anniversary
of the date of Termination of Services due to the Optionee’s death or Disability.

 

Section 3.4            Partial
Exercise. Any exercisable portion of the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in
part at any time prior to the time when the Option or portion thereof becomes unexercisable.

 

Section 3.5           Exercise
of Option. The exercise of the Option shall be governed by the terms of this Agreement and the terms of the Plan, including, without
limitation, the provisions of Article V of the Plan.

 

ARTICLE IV.

OTHER PROVISIONS

 

Section 4.1          Not
a Contract of Employment or Services. Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue
in the employ or engagement of the Company or any of its Subsidiaries or shall interfere with or restrict in any way the rights of the
Company or its Subsidiaries, which are hereby expressly reserved, to discharge the Optionee at any time for any reason whatsoever, with
or without Cause, except as may otherwise be provided by any written agreement entered into by and between the Company and the Optionee.

 

Section 4.2          Rights
as Unitholders. The Optionee acknowledges and agrees that he or she shall not be, nor have any of the rights or privileges of, a
unitholder of the Company in respect of any Class A-1 Units purchasable upon the exercise of any part of the Option unless and until
he or she exercises the Option and complies with the conditions set forth in Section 5.3 of the Plan (including, without limitation,
executing a copy of the LLC Agreement or joinder thereto in the Company’s applicable form).

 

Section 4.3          Units
Subject to Plan and LLC Agreement; Entire Agreement. The Optionee acknowledges that any Class A-1 Units acquired upon exercise of
the Option are subject to the terms of the Plan and the LLC Agreement. The terms of this Agreement are intended by the parties to be
the final expression of their agreement with respect to the subject matter hereof and may not be contradicted by evidence of any prior
or contemporaneous agreement. The parties further intend that this Agreement (together with the Plan and the LLC Agreement) shall constitute
the complete and exclusive statement of its terms and that no extrinsic evidence whatsoever may be introduced in any judicial, administrative,
or other legal proceeding to vary the terms of this Agreement; provided that nothing in this Section 4.3 shall supersede or modify the
terms of any restrictive covenants in any other written agreements between Optionee and the Company or any of its Affiliates or in any
policy of the Company or any of its Affiliates.

 

    4 

     

    

 

Section 4.4           Transfer
Restrictions. Class A-1 Units acquired upon exercise of an Option shall be subject to the terms and conditions of the LLC Agreement
(including, without limitation, any transfer restrictions included therein). In addition, the Administrator, in its sole discretion,
may impose further restrictions on the transferability of the Class A-1 Units purchasable upon the exercise of an Option as it deems
appropriate.

 

Section
4.5         Withholding. The Optionee shall in accordance with the Plan
pay to the Company or make provision satisfactory to the Administrator for payment of, any taxes required by applicable law to be withheld
or paid in connection with the Option no later than the date of the event creating the tax liability. The Company may, to the extent
permitted by applicable laws, deduct any such tax obligations based on applicable withholding rates from any payment of any kind otherwise
due to the Optionee. The Optionee acknowledges and agrees that he or she has had the opportunity to consult their own independent tax
and other advisors with respect to the Option and this Agreement and the potential tax and other consequences of the grant, receipt,
ownership or exercise of the Option and the ownership and disposition of any Class A-1 Units acquired pursuant to any exercise of the
Option, including the tax consequences under federal, state, local and other tax laws of the United States or any other jurisdiction
and the possible effects of changes in such tax laws. The Optionee understands that the Company reports as a partnership for U.S. federal
income tax purposes and that the Company’s partners (including holders of Class A-1 Units) generally are required to file income
tax returns and pay income taxes within the United States, even if the partners are not otherwise citizens or residents of the United
States, and further understands that withholding taxes can apply with respect to the Company’s partners, including in connection
with allocations or distributions to the partners or dispositions of interests in the Company. The Optionee is not relying on the Company
or any of its Affiliates or members or any of their respective employees, agents, representatives or advisors with respect to any such
consequences.

 

Section 4.6          Jurisdiction
and Venue. By accepting the Option, the Optionee consents to the exclusive jurisdiction and venue of the state and federal courts
located in New York, New York, as applicable, for any action, suit or proceeding arising from or in connection with the interpretation
or enforcement of the Plan, this Agreement or the Option hereunder.

 

Section 4.7          Waiver
of Jury Trial. BY ACCEPTING THE OPTION, THE OPTIONEE WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT
TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT OR OTHERWISE, THAT ARISES OUT OF, IS CONNECTED WITH OR IS RELATED OR INCIDENTAL
TO, THE PLAN, THIS AGREEMENT OR THE OPTION HEREUNDER. EITHER OF THE COMPANY OR THE OPTIONEE MAY FILE A COPY OF THIS PARAGRAPH WITH ANY
COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE COMPANY AND THE OPTIONEE IRREVOCABLY TO
WAIVE TRIAL BY JURY AND THAT ANY ACTION OR PROCEEDING WHATSOEVER BETWEEN OR AMONG THEM RELATING TO THE PLAN, THIS AGREEMENT OR THE OPTION
HEREUNDER SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

 

    5 

     

    

 

Section 4.8           Construction.
This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware, without regard to the
principles of conflicts of law thereof, or principles of conflicts of law of any other jurisdiction which could cause the application
of the laws of any jurisdiction other than the State of Delaware.

 

Section
4.9           Conformity to Securities Laws. The Optionee acknowledges
that the Plan is intended to conform to the extent necessary with all provisions of the Securities Act and the Exchange Act and any and
all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3.
Notwithstanding anything herein to the contrary, the Plan shall be administered, and the Option is granted and may be exercised, only
in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement
shall be deemed amended to the extent necessary to conform to such laws, rules and regulations.

 

Section
4.10          Lock-Up Period. In connection with an Initial Public
Offering and upon request of the underwriters managing such offering of the Company’s or its successor’s securities, the
Optionee agrees not to sell, make any short sale of, loan, grant any option for the purchase of, or otherwise dispose of any Class A-1
Units or other securities of the Company or its successor, however or whenever acquired (other than those included in the registration)
or engage in any swap or derivative transactions involving the Company’s or its successor’s securities, in each case without
the prior written consent of such underwriters, for such period of time as may be requested by such managing underwriters (commencing
as of the effective date of such registration ending no later than 180 days thereafter) and to execute an agreement reflecting the foregoing
as may be requested by the underwriters at the time of an Initial Public Offering; provided however that, if during the last 17 days
of the restricted period the Company issues an earnings release or material news or a material event relating to the Company occurs,
or prior to the expiration of the restricted period the Company announces that it will release earnings results during the 16-day period
beginning on the last day of the restricted period, then, upon the request of the managing underwriter, to the extent required by any
FINRA rules, the restrictions imposed by this Section 4.10 shall continue to apply until the end of the third trading day following the
expiration of the 15-day period beginning on the issuance of the earnings release or the occurrence of the material news or material
event. In no event will the restricted period extend beyond 216 days after the effective date of the registration statement.

 

Section
4.11          Amendment, Suspension and Termination. The Option may be
wholly or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Administrator or
the Board; provided that the Optionee’s consent shall be required with respect to any such action unless (a) the
Administrator determines that the action, taking into account any related action, would not materially and adversely affect the
Optionee or (b) such change is permitted without Optionee’s consent under the Plan or Section 4.13 or 4.14 of this
Agreement.

 

    6 

     

    

 

Section
4.12          Consent by Spouse. Each Optionee who is married shall
deliver a duly executed Consent by Spouse (the “Consent by Spouse”), in the form prescribed in Exhibit A to
this Agreement, at the time of execution of this Agreement. Each Optionee who is unmarried shall also have such Consent by Spouse executed
by any spouse married by him or her at any time subsequent to the Grant Date while an Optionee. Any Optionee who executes this Agreement
but does not provide an executed Consent by Spouse hereby represents and warrants to the Company that such Optionee does not have a spouse.
Each Optionee agrees and acknowledges that compliance with the requirements of this Section 4.12 constitutes an essential part
of the consideration for the parties’ execution of this Agreement.

 

Section 4.13          Section
409A. To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Code and Department of
Treasury regulations and other interpretive guidance issued thereunder. Notwithstanding any provision of this Agreement to the contrary,
in the event that the Administrator determines that this Option may be subject to Section 409A of the Code, the Administrator may adopt
such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive
effect), or take any other actions that the Administrator determines are necessary or appropriate to (a) exempt the Option from Section
409A of the Code and/or preserve the intended tax treatment of the benefits provided with respect to the Option, or (b) comply with the
requirements of Section 409A of the Code and related Department of Treasury guidance and thereby avoid the application of penalty taxes
under such Section 409A. Notwithstanding anything herein to the contrary, in no event shall any liability for failure to comply with
the requirements of Section 409A of the Code be transferred from the Optionee or any other Person to the Company or any of its Affiliates,
employees or agents pursuant to the terms of this Agreement or otherwise.

 

Section
4.14          Section 280G.

 

(a) Except as otherwise provided in
subsection (b) below, in the event that it shall be determined that any right to receive the Option, payment or other benefit under
this Agreement (including, without limitation, the acceleration of the vesting and/or exercisability of the Option and taking into
account the effect of this Section) or any employment or other agreement or arrangement by and between the Optionee and the Company
or any of its Affiliates, to or for the benefit of the Optionee (the “Payments”), would, in whole or part when
aggregated with any other right, payment or benefit to or for the Optionee under all other agreements or benefit plans of the
Company or any of its Affiliates or otherwise, be nondeductible by the Company (or other Person making such payment or providing
such benefit) as a result of Section 280G of the Code and/or would subject the Optionee to the excise tax imposed by Section 4999 of
the Code (the “Excise Tax”) then, to the extent necessary to make the Payments deductible and to exempt the
Payments from the Excise Tax (but only to such extent and after taking into account any reduction in the Payments relating to
Section 280G of the Code under any other plan, arrangement or agreement), the Option or any other right, payment or benefit under
this Agreement shall not become exercisable, vested or paid and, if requested, Optionee shall execute a waiver in the
Company’s applicable form to effect this Section 4.14(a).

 

    7 

     

    

 

(b)           Notwithstanding any other
provision of this Agreement, the provisions of subsection (a) above shall not apply to reduce the Payments if the Payments that would
otherwise be nondeductible under Section 280G of the Code and/or would subject the Optionee to the Excise Tax are disclosed to and approved
by the appropriate equityholders in accordance with Section 280G(b)(5)(B) of the Code and the Department of Treasury regulations thereunder.

 

(c)           The Company shall use commercially
reasonable efforts to (i) prepare and deliver to (or cause to be prepared and delivered to) the applicable equityholders the disclosure
required by Section 280G(b)(5)(B) of the Code with respect to the Payments and (i) seek the vote of such equityholders pursuant to subsection
(b) above in a timely manner.

 

Section 4.15          Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will
constitute one and the same agreement. Facsimile or electronic copies of signed signature pages shall be binding originals.

 

[signature pages follow]

 

    8 

     

    

 

IN WITNESS WHEREOF, this Agreement has been executed
and delivered by the parties hereto as of the date first above written.

 

	 	FLUENCE ENERGY, LLC
	 	 
	 	By: 	 
	 	 
	 	Its:  	 

 

Signature Page to Unit Option Agreement

 

     

     

    

 

	 	OPTIONEE
	 	 
	 	 
	 	[_____]
	 	 
	 	Residence Address:
	 	 
	 	 
	 	 
	 	 
	 	 
	 	Optionee’s Social Security Number:
	 	 
	 	_______________________

 

Signature Page to Unit Option Agreement

 

     

     

    

 

SPOUSAL CONSENT

 

The Optionee’s spouse, if any, is
fully aware of, understands and fully consents and agrees to the provisions of this Agreement and the LLC Agreement and their binding
effect upon any marital or community property interests he or she may now or hereafter own with respect to the Options issued to the Optionee,
and agrees that the termination of his or her and the Optionee’s marital relationship for any reason shall not have the effect of
removing any Options otherwise subject to this Agreement from coverage hereunder or under the LLC Agreement and that his or her awareness,
understanding, consent and agreement are evidenced by his or her signature below. Further, the undersigned acknowledges that he or she
has been advised to and given the opportunity to consult his or her own independent attorneys and advisors prior to signing this Spousal
Consent, and has done so to the extent the undersigned deemed appropriate.

 

	 	 
	 	Spouse’s Name:

 

Signature Page to Spousal Consent to Unit Option Agreement

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