Document:

Form of Comverge Stock Issuance Agreement

 Exhibit 10.17 
 COMVERGE, INC. 
 STOCK ISSUANCE AGREEMENT 
 This Stock Issuance Agreement (this “Agreement”), is made as of this
             day of             , 20            
by and between Comverge, Inc. (the “Company”), and             , (“Purchaser”). 
 All capitalized terms in this Agreement shall have the meaning assigned to them in this Agreement or in the attached Appendix. 
  

	 	A.	PURCHASE OF SHARES 

 1. Purchase. Purchaser hereby purchases              shares of Common Stock (the “Purchased Shares”) pursuant to
the terms of this Agreement at the purchase price of $             per share (the “Purchase Price”). 
 2. Payment. [Purchaser has paid the aggregate Purchase Price for all of the Purchased Shares by rendering
services to the Company prior to the date hereof.] Concurrently with the delivery of this Agreement to the Company, Purchaser [shall pay the aggregate Purchase Price for all Purchased Shares in cash or cash equivalent and] shall deliver a
duly-executed blank Assignment Separate from Certificate (in the form attached hereto as Annex A) with respect to the Purchased Shares. 
 3. Stockholder Rights. Until such time as the Company exercises the Repurchase Right or the First Refusal Right, Purchaser (or any successor in interest) shall have all stockholder rights
(including voting, dividend and liquidation rights) with respect to the Purchased Shares, subject, however, to the transfer restrictions imposed by this Agreement. 
  

	 	B.	SECURITIES LAW COMPLIANCE 

 1. Investment Intent. Purchaser is aware of the Company’s business affairs and financial condition and has acquired sufficient information about the Company to reach an informed and
knowledgeable decision to acquire the Purchased Shares. Purchaser is acquiring the Purchased Shares for investment for Purchaser’s own account only and not with a view to, or for resale in connection with, any “distribution” thereof
within the meaning of the 1933 Act. 
 2. Restricted Securities. 
 (a) The Purchased Shares have not been registered under the 1933 Act and are being issued to Purchaser in reliance upon the exemption from
such registration provided by Section 4(2) of the 1933 Act or SEC Rule 504, 505, 506 or 701. Purchaser acknowledges and understands that the Purchased Shares constitute “restricted securities” under the 1933 Act and have not been
registered under the 1933 Act in reliance upon a specific exemption therefrom, which exemption depends upon, among other things, the bona fide nature of Purchaser’s investment intent as expressed herein. Purchaser understands that, in the view
of the SEC, the statutory basis for such exemption may be unavailable if Purchaser’s representation was 

 
predicated solely upon a present intention to hold the Purchased Shares for the minimum capital gains period specified under tax statutes, for a deferred
sale, for or until an increase or decrease in the market price of the Purchased Shares, or for a period of one year or any other fixed period in the future. Purchaser further understands that the Purchased Shares must be held indefinitely unless
they are subsequently registered under the 1933 Act or an exemption from such registration is available. Purchaser further acknowledges and understands that the Company is under no obligation to register the Purchased Shares. Purchaser understands
that the certificate evidencing the Purchased Shares will be imprinted with the legends set forth herein and any other legend required under applicable state securities laws. 
 (b) Purchaser is familiar with the provisions of Rule 701 and Rule 144, each promulgated under the 1933 Act, which, in substance, permit
limited public resale of “restricted securities” acquired, directly or indirectly from the issuer thereof, in a non-public offering subject to the satisfaction of certain conditions. Rule 701 provides that if the issuer qualifies under
Rule 701 at the time of the issuance of the Purchased Shares to the Purchaser, the issuance will be exempt from registration under the 1933 Act. In the event the Company becomes subject to the reporting requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, 90 days thereafter (or such longer period as any market stand-off agreement may require) the Purchased Shares exempt under Rule 701 may be resold, subject to the satisfaction of certain of the conditions
specified by Rule 144, including (1) the resale being made through a broker in an unsolicited “broker’s transaction” or in transactions directly with a market maker (as said term is defined under the 1934 Act); and, in the case
of an affiliate, (2) the availability of certain public information about the Company, (3) the amount of Purchased Shares, together with all other securities of the Company sold by Purchaser that are required to be aggregated under Rule
144(e), being sold during any three month period not exceeding the limitations specified in Rule 144(e), and (4) the timely filing of a Form 144, if applicable. 
 (c) In the event that the Company does not qualify under Rule 701 at the time of issuance of the Purchased Shares, then the Purchased
Shares may be resold in certain limited circumstances subject to the provisions of Rule 144, which requires the resale to occur not less than one year after the later of the date the Purchased Shares were sold by the Company or the date the
Purchased Shares were sold by an affiliate of the Company, within the meaning of Rule 144; and, in the case of acquisition of the Purchased Shares by an affiliate, or by a non-affiliate who subsequently holds the Purchased Shares less than two
years, the satisfaction of the conditions set forth in sections (1), (2), (3) and (4) of the paragraph immediately above. 
 3. Restrictive Legends. The stock certificates representing the Purchased Shares shall be endorsed with one or more of the following restrictive legends: 
 “The shares represented by this certificate have not been registered under the Securities Act of 1933, as amended, or any state’s securities
laws and may not be offered, sold or otherwise transferred, pledged or hypothecated unless and until such shares are registered under such laws or an opinion of counsel satisfactory to the Company is obtained to the effect that such registration is
not required.” 
 “The shares represented by this certificate are subject to certain repurchase rights 

  

 2 

 
and rights of first refusal granted to the Company and accordingly may not be sold, assigned, transferred, encumbered, or in any manner disposed of except in
conformity with the terms of a written agreement dated                      ,
            , between the Company and the registered holder of the shares (or the predecessor in interest to the shares). A copy of such agreement is maintained at the Company’s
principal corporate offices.” 
  

	 	C.	TRANSFER RESTRICTIONS 

 1. Restriction on Transfer. Except for any Permitted Transfer, Purchaser shall not transfer, assign, encumber or otherwise dispose of any of the Unvested Shares. Vested Shares shall not be transferred, assigned,
encumbered or otherwise disposed of in contravention of the First Refusal Right, the Market Stand-Off or the transfer restrictions set forth in Article B. 
 2. Transferee Obligations. Each person (other than the Company) to whom the Purchased Shares are transferred by means of a Permitted Transfer must, as a condition precedent to the validity
of such transfer, acknowledge in writing to the Company that such person is bound by the provisions of this Agreement and that the transferred shares are subject to (a) the Repurchase Right, (b) the First Refusal Right, (c) the Market
Stand-Off and (d) the transfer restrictions set forth in Article B, to the same extent such shares would be so subject if retained by Purchaser. 
 3. Market Stand-Off. 
 (a) In connection with the Company’s
initial Qualified Public Offering and any underwritten public offering by the Company of its equity securities effected within two years thereafter, Owner shall not sell, make any short sale of, hedge with, loan, hypothecate, pledge, grant any
option for the purchase of, or otherwise dispose or transfer for value or otherwise agree to engage in any of the foregoing transactions with respect to, any Vested Shares without the prior written consent of the Company or its underwriters (the
“Market Stand-Off”). The Market Stand-Off shall be in effect for such period of time from and after the effective date of the final prospectus for the offering as may be requested by the Company or such underwriters;
provided, however, that such period shall not exceed 180 days. 
 (b) Owner shall be subject to the Market Stand-Off;
provided and only if the officers and directors of the Company are also subject to similar restrictions. 
 (c) Any
new, substituted or additional securities that are by reason of any Recapitalization or Reorganization distributed with respect to the Vested Shares shall be immediately subject to the Market Stand-Off. 
 (d) In order to enforce the Market Stand-Off, the Company may impose stop-transfer instructions with respect to the Vested Shares until
the end of the applicable stand-off period. 
  

 3 

	 	D.	REPURCHASE RIGHT 

 1. Grant. The Company is hereby granted the right (the “Repurchase Right”) to repurchase at the Repurchase Price any or all of the Purchased Shares that are Unvested Shares at the time
Purchaser’s Service ceases [for any reason or for no reason] [other than by reason of an Involuntary Termination]. 
 2. Exercise of the Repurchase Right. The Repurchase Right shall be exercisable by written notice delivered to each Owner of the Unvested Shares at any time during the 90-day period following the date
Purchaser’s Service is [terminated for any reason or for no reason] [Involuntarily Terminated]. The notice shall indicate the number of Unvested Shares to be repurchased, the Repurchase Price to be paid per share, and the date on which the
repurchase is to be effected, such date to be not more than 30 days after the date of such notice. The certificates representing the Unvested Shares to be repurchased shall be delivered to the Company on the closing date specified for the
repurchase. Concurrently with the receipt of such stock certificates, the Company shall pay to Owner, in cash or cash equivalents (including the cancellation of any purchase-money indebtedness), an amount equal to the aggregate Repurchase Price for
the Unvested Shares that are to be repurchased from Owner. 
 3. Termination of the Repurchase
Right. The Repurchase Right shall terminate with respect to any Unvested Shares for which it is not timely exercised under Paragraph D.2. In addition, the Repurchase Right shall terminate and cease to be exercisable with respect to
all of the Purchased Shares upon the earliest to occur of the following: 
 (a) December 31, 2009; 
 (b) a Qualified Public Offering [(at a minimum per share price of
$            )]; and 
 (c) a Corporate Transaction.

 All Vested Shares shall, however, be subject to (i) the First Refusal Right, (ii) the Market Stand-Off and
(iii) the transfer restrictions set forth in Article B. 
 4. [Repurchase Followed by
Corporate Transaction or Qualified Public Offering. In the event (i) Purchaser’s Service is Involuntarily Terminated and the Company exercises the Repurchase Right with respect to any Unvested Shares and (ii) the Company
closes a Qualified Public Offering or Corporate Transaction on or prior to the date that is six months from the date Purchaser is Involuntarily Terminated, then the Company shall pay to Purchaser an amount in cash or other same-day funds equal to
the product of (x) the number of shares repurchased by the Company pursuant to the Repurchase Right times (y) the result of (A) the price per share that shares are sold in the Qualified Public Offering or the price per share paid in
connection with a Corporate Transaction, as applicable, minus (B) the Repurchase Price paid for the shares repurchased by the Company; provided that the number of shares and the price per share shall be appropriately adjusted for any
Recapitalization that occurs prior to the closing of such Qualified Public Offering or Corporate Transaction. In the event the price per share that 

  

 4 

 
shares are sold in the Qualified Public Offering or the price per share paid in connection with a Corporate Transaction, as applicable, is zero or less, then
no payment shall be required to be made either by the Company or by Purchaser. Any amount payable by the Company pursuant to the foregoing sentence shall be paid to Purchaser within 30 days after the closing of the Qualified Public Offering or
Corporate Transaction, as applicable. This provision shall not apply to a repurchase by the Company upon Purchaser’s resignation or the termination of Purchaser’s Service for Misconduct.] 
 5. Recapitalization. Any new, substituted or additional securities or other property (including cash paid
other than as a regular cash dividend) that is by reason of any Recapitalization distributed with respect to the Unvested Shares shall be immediately subject to the Repurchase Right and any escrow requirements hereunder. Appropriate adjustments to
reflect such distribution shall be made to the number and/or class of Unvested Shares subject to this Agreement. 
  

	 	E.	RIGHT OF FIRST REFUSAL 

 1. Grant. The Company is hereby granted the right of first refusal (the “First Refusal Right”) exercisable in connection with any proposed transfer of Vested Shares. For purposes of this
Article E, the term “transfer” shall include any sale, assignment, pledge, encumbrance or other disposition of Vested Shares intended to be made by Owner, but shall not include any Permitted Transfer. 
 2. Notice of Intended Disposition. In the event any Owner of Vested Shares desires to accept a bona fide
third-party offer for the transfer of any or all of such shares (the Vested Shares subject to such offer to be hereinafter referred to as the “Target Shares”), Owner shall promptly (a) deliver to the Company written
notice (the “Disposition Notice”) of the terms of the offer, including the purchase price and the identity of the third-party offeror, and (b) provide satisfactory proof that the disposition of the Target Shares to such
third-party offeror would not be in contravention of the provisions set forth in Articles B and C. 
 3.
Exercise of the First Refusal Right. 
 (a) The Company shall have the right to repurchase any or all of the
Target Shares subject to the Disposition Notice upon the same terms as those specified therein or upon such other terms (not materially different from those specified in the Disposition Notice) to which Owner consents. Such right shall be
exercisable by delivery of written notice (the “Exercise Notice”) to Owner prior to the 25th day following the Company’s receipt of the Disposition Notice. If such right is exercised with respect to all the Target
Shares, then the Company shall effect the repurchase of such shares, including payment of the aggregate purchase price, not more than five business days after delivery of the Exercise Notice; and at such time the certificates representing the Target
Shares shall be delivered to the Company. 
 (b) Should the purchase price specified in the Disposition Notice be payable in
property other than cash or evidences of indebtedness, the Company shall have the right to pay the purchase price in the form of cash equal in amount to the value of such property. 

  

 5 

 
If Owner and the Company cannot agree on such cash value within ten days after the Company’s receipt of the Disposition Notice, the valuation shall be
made by an appraiser of recognized standing selected by Owner and the Company or, if they cannot agree on an appraiser within twenty days after the Company’s receipt of the Disposition Notice, each shall select an appraiser of recognized
standing and the two appraisers shall designate a third appraiser of recognized standing, whose appraisal shall be determinative of such value. The cost of such appraisal shall be shared equally by Owner and the Company. The closing shall then be
held on the later of (i) the fifth business day following delivery of the Exercise Notice or (ii) the fifth business day after such valuation shall have been made. 
 4. Non-Exercise of the First Refusal Right. In the event the Exercise Notice is not given to Owner prior to
the expiration of the 25-day exercise period, Owner shall have a period of 30 days thereafter in which to sell or otherwise dispose of the Target Shares to the third-party offeror identified in the Disposition Notice upon terms (including the
purchase price) no more favorable to such third-party offeror than those specified in the Disposition Notice; provided, however, that any such sale or disposition must not be effected in contravention of the provisions of Articles B and
C. The third-party offeror shall acquire the Target Shares subject to the First Refusal Right and the provisions and restrictions of Article B and Paragraph C.3, and any subsequent disposition of the acquired shares must be
effected in compliance with the terms and conditions of such First Refusal Right and the provisions and restrictions of Article B and Paragraph C.3. In the event Owner does not effect such sale or disposition of the Target Shares within the
specified 30-day period, the First Refusal Right shall continue to be applicable to any subsequent disposition of the Target Shares by Owner until such right lapses. 
 5. Partial Exercise of the First Refusal Right. In the event the Company makes a timely exercise of the First
Refusal Right with respect to a portion, but not all, of the Target Shares specified in the Disposition Notice, Owner shall have the option, exercisable by written notice to the Company delivered within five business days after Owner’s receipt
of the Exercise Notice, to effect the sale of the Target Shares pursuant to either of the following alternatives: 
 (a) sale
or other disposition of some or all the Target Shares to the third-party offeror identified in the Disposition Notice, but in full compliance with the requirements of Paragraph E.4, as if the Company did not exercise the First Refusal Right;
or 
 (b) sale to the Company of the portion of the Target Shares which the Company has elected to purchase, such sale to be
effected in substantial conformity with the provisions of Paragraph E.3. The First Refusal Right shall continue to be applicable to any subsequent disposition of the remaining Target Shares until such right lapses. 
 Owner’s failure to deliver timely notification to the Company shall be deemed to be an election by Owner to sell the Target Shares
pursuant to alternative (a) above. 
  

 6 

 6. Recapitalization/Reorganization. 
 (a) Any new, substituted or additional securities or other property that is by reason of any Recapitalization distributed with respect to
Vested Shares shall be immediately subject to the First Refusal Right. 
 (b) In the event of a Reorganization, the First
Refusal Right shall remain in full force and effect and shall apply to the new capital stock or other property received in exchange for the Vested Shares in consummation of the Reorganization and shall apply to the remaining Unvested Shares as and
when they become Vested Shares. 
 7. Lapse. The First Refusal Right shall lapse upon the earlier to
occur of (a) a Qualified Public Offering or (b) the acquisition of the Company by an entity that is traded on a stock exchange or the Nasdaq Stock Market. However, the Market Stand-Off shall continue to remain in full force and effect
following the lapse of the First Refusal Right, in the case of a transaction subject to (a) above. 
  

	 	F.	SPECIAL TAX ELECTION 

 If Code
Section 83(b) is applicable to the issuance of the Purchased Shares, the excess of the Fair Market Value of the Purchased Shares on the date any forfeiture restrictions applicable to such shares lapse over the Purchase Price paid for those
shares will be reportable as ordinary income on the lapse date. For this purpose, the term “forfeiture restrictions” includes the right of the Company to repurchase the Purchased Shares pursuant to the Repurchase Right. Purchaser may elect
under Code Section 83(b) to be taxed at the time the Purchased Shares are acquired, rather than when and as such Purchased Shares cease to be subject to such forfeiture restrictions. Such election must be filed with the Internal Revenue Service
within thirty days after the date of this Agreement. Even if the Fair Market Value of the Purchased Shares on the date of this Agreement equals the Purchase Price paid (and thus no tax is payable), the election must be made to avoid adverse tax
consequences in the future. Should Purchased Shares be forfeited following a Section 83(b) election, the amount recognized as ordinary income incident to such election may not be treated as a capital loss. Any unreimbursed amount paid for such
forfeited shares may be treated as a capital loss. The form for making this election is attached as Exhibit A hereto. Purchaser understands that failure to make this filing within the applicable 30-day period could result in the recognition of
ordinary income as the forfeiture restrictions lapse. Purchaser acknowledges that it is Purchaser’s sole responsibility, and not the Company’s responsibility, to file a timely election under Code Section 83(b), even if Purchaser
requests the Company or its representatives to make this filing on his or her behalf. Moreover, the Company makes no representation that Code Section 83(b) is applicable to the issuance of the Purchased Shares. Purchaser should consult his own
tax advisors prior to making a decision to file or not file the form attached as Exhibit A. 
  

 7 

	 	G.	GENERAL PROVISIONS 

 1. Assignment. The Company may assign the Repurchase Right and/or the First Refusal Right to any person or entity selected by the Board, including (without limitation) one or more stockholders of the Company.

 2. At Will Employment. Nothing in this Agreement shall confer upon Purchaser any right to
continue in Service for any period of specific duration or interfere with or otherwise restrict in any way the rights of the Company (or any Parent or Subsidiary employing or retaining Purchaser) or of Purchaser, which rights are hereby expressly
reserved by each, to terminate Purchaser’s Service at any time for any reason, with or without cause, with or without notice. 
 3. Notices. Any notice required to be given under this Agreement shall be in writing and shall be deemed effective upon personal delivery or on the third day following deposit in the U.S. mail, registered or
certified, postage prepaid and properly addressed to the party entitled to such notice at the address indicated below such party’s signature line on this Agreement or at such other address as such party may designate by ten days advance written
notice under this paragraph to all other parties to this Agreement. 
 4. No Waiver. The failure
of the Company in any instance to exercise the Repurchase Right or the First Refusal Right shall not constitute a waiver of any other repurchase rights and/or rights of first refusal that may subsequently arise under the provisions of this Agreement
or any other agreement between the Company and Purchaser. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other or subsequent breach or condition, whether of like or different nature. 
 5. Cancellation of Shares. If the Company shall make available, at the time and place and in the amount and
form provided in this Agreement, the consideration for the Purchased Shares to be repurchased in accordance with the provisions of this Agreement, then from and after such time, the person from whom such shares are to be repurchased shall no longer
have any rights as a holder of such shares (other than the right to receive payment of such consideration in accordance with this Agreement). Such shares shall be deemed purchased in accordance with the applicable provisions hereof, and the Company
shall be deemed the owner and holder of such shares, whether or not the certificates therefor have been delivered as required by this Agreement. 
 6. Governing Law. The interpretation, performance and enforcement of this Agreement shall be governed by the laws of the State of Delaware without giving effect to that State’s choice
of law or conflict-of-laws rules. 
 7. Purchaser Undertaking. Purchaser hereby agrees to take
whatever additional action and execute whatever additional documents the Company may deem necessary or advisable in order to carry out or effect one or more of the obligations or restrictions imposed on either Purchaser or the Purchased Shares
pursuant to the provisions of this Agreement. 
  

 8 

 8. Counterparts. This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. 
 9.
Successors and Assigns. The provisions of this Agreement shall inure to the benefit of, and be binding upon, the Company and its successors and assigns and upon Purchaser, Purchaser’s permitted assigns and the legal
representatives, heirs and legatees of Purchaser’s estate, whether or not any such person shall have become a party to this Agreement and have agreed in writing to join herein and be bound by the terms hereof. 
 [Signature Page Follows] 
  

 9 

 IN WITNESS WHEREOF, the parties have executed this Stock Issuance Agreement on the day and year first
indicated above. 
  

			
	COMVERGE, INC.
		
	 By:
	 	  
		
	 Name:
	 	  
		
	 Title:
	 	  
		
	 Address:
	 	  
		 	  
	
	PURCHASER
		
	 Signature:
	 	  
		
	 Printed Name:
	 	  
		
	 Address:
	 	  
		 	  
		
	 SSN:
	 	  

 [SIGNATURE PAGE TO STOCK
ISSUANCE AGREEMENT] 

 SPOUSAL ACKNOWLEDGMENT 
 The undersigned spouse of Purchaser has read and hereby approves the foregoing Stock Issuance Agreement. In consideration of the Company’s granting
Purchaser the right to acquire the Purchased Shares in accordance with the terms of such Agreement, the undersigned hereby agrees to be irrevocably bound by all the terms of such Agreement, including (without limitation) the right of the Company (or
its assigns) to purchase any Purchased Shares in which Purchaser is not vested at time of his cessation of Service by reason other than Involuntary Termination. 
  

			
	
	  
	 PARTICIPANT’S SPOUSE

		
	 Address:
	 	  
	  

 ANNEX A 
 ASSIGNMENT SEPARATE FROM CERTIFICATE 
 FOR VALUE RECEIVED
                                        
hereby sell(s), assign(s) and transfer(s) unto Comverge, Inc. or its successors and assigns (the “Company”),
                     (            ) shares of the Common Stock of the
Company standing in his or her name on the books of the Company represented by Certificate No.                      herewith and do(es) hereby
irrevocably constitute and appoint                      as Attorney to transfer the said stock on the books of the Company with full power of
substitution in the premises. 
 Dated: 
  

			
		
	 Signature
	 	  

 Instruction: Please do not fill in any blanks other than the signature line. Please sign exactly as
you would like your name to appear on the issued stock certificate. The purpose of this assignment is to enable the Company to exercise the Repurchase Right without requiring additional signatures on the part of Purchaser. 

 EXHIBIT A 
 SECTION 83(b) TAX ELECTION 

 SECTION 83(b) TAX ELECTION 
 This statement is being made under Section 83(b) of the Internal Revenue Code, pursuant to Treas. Reg. Section 1.83-2.

  

	(1)	The taxpayer who performed the services is: 

 Name:

 Address: 
 Taxpayer Ident. No.:

  

	(2)	The property with respect to which the election is being made is
                     shares of the common stock of Comverge, Inc. 

  

	(3)	The property was issued on                         ,
            . 

  

	(4)	The taxable year in which the election is being made is the calendar year             . 

 

	(5)	The property is subject to a repurchase right pursuant to which the issuer has the right to acquire the property at the original purchase price if for any reason taxpayer’s
service with the issuer terminates. The issuer’s repurchase right will lapse in a series of annual and monthly installments over a four-year period ending on
                            ,
            . 

  

	(6)	The fair market value at the time of transfer (determined without regard to any restriction other than a restriction which by its terms will never lapse) is
$                     per share. 

  

	(7)	The amount paid for such property is $                      per share.

  

	(8)	A copy of this statement was furnished to Comverge, Inc. for whom taxpayer rendered the services underlying the transfer of property. 

  

	(9)	This statement is executed on                     ,
            . 

  

					
			
	   	 		 	   
	 Spouse (if any)
	 		 	 Taxpayer

 This election must be filed with the Internal Revenue Service Center with which taxpayer files his or her
federal income tax returns and must be made within thirty days after the execution date of the Stock Issuance Agreement. This filing should be made by registered or certified mail, return receipt requested. Purchaser must retain two copies of the
completed form for filing with his or her federal and state tax returns for the current tax year and an additional copy for his or her records. 

 APPENDIX 
 The following definitions shall be in effect under the Agreement: 
 A. “Agreement”
shall mean this Stock Issuance Agreement. 
 B. “Board” shall mean the Company’s Board of Directors. 

C. “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 D. “Common Stock” shall mean the common stock, par value $0.001 per share, of the Company. 
 E. “Company” shall mean Comverge, Inc., a Delaware corporation. 
 F. “Corporate Transaction” shall mean a change in ownership or control of the Company effected through any of the following
transactions in which the price per share paid in connection with such transaction is at least $6.00 (which price shall be appropriately adjusted in the event of a Recapitalization or Reorganization): 
 (i) a merger, consolidation or other reorganization in which securities representing more than 50% of the total combined voting power of
the Company’s outstanding securities are beneficially owned, directly or indirectly, by a person or persons different from the person or persons who beneficially owned those securities immediately prior to such transaction, except that any such
transaction effected in connection with or to facilitate a private financing of the Company that is approved by the Board shall not be deemed to be a Corporate Transaction unless otherwise determined by the Board; or 
 (ii) a sale, transfer or other disposition of all or substantially all of the Company’s assets. 
 In no event shall any public offering of the Company’s securities be deemed to constitute a Corporate Transaction. 
 G. “Disposition Notice” shall have the meaning assigned to such term in Paragraph E.2. 
 H. “Exercise Notice” shall have the meaning assigned to such term in Paragraph E.3. 
 I. Fair Market Value per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

 (i) If the Common Stock is at the time listed on the Nasdaq Stock Market, then the Fair Market Value shall be the closing
selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq Stock Market and published in The Wall Street Journal. If there is no 

  

 A-1 

 
closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last preceding date
for which such quotation exists. 
 (ii) If the Common Stock is at the time listed on any stock exchange, then the Fair Market
Value shall be the closing selling price per share of Common Stock on the date in question on the stock exchange determined by the Plan Administrator to be the primary market for the Common Stock, as such price is officially quoted in the composite
tape of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the closing selling price on the last
preceding date for which such quotation exists. 
 (iii) If the Common Stock is at the time neither listed on any stock
exchange or the Nasdaq Stock Market, then the Fair Market Value shall be determined by the Board after taking into account such factors as the Board shall deem appropriate. 
 J. “First Refusal Right” shall mean the right granted to the Company in accordance with Article E. 
 K. “Involuntary Termination” shall mean the termination of Purchaser’s Service by reason of: 
 (i) Purchaser’s involuntary dismissal or discharge by the Company or Parent or Subsidiary employing Purchaser for reasons other than
Misconduct, or 
 (ii) Purchaser’s voluntary resignation within 60 days following (i) a change in Purchaser’s
position with the Company, Parent or Subsidiary employing Purchaser that materially reduces Purchaser’s duties and responsibilities, (ii) a reduction in Purchaser’s base salary by more than 20%, unless the base salaries of all
similarly situated individuals are reduced by the Company, Parent or Subsidiary employing Purchaser or (iii) a relocation of Purchaser’s place of employment by more than 50 miles from the metropolitan areas of Norcross, Georgia or East
Hanover, New Jersey, provided and only if such change, reduction or relocation is effected without Purchaser’s consent. 
 L.
“Market Stand-Off” shall mean the market stand-off restriction specified in Paragraph C.4. 
 M.
“Misconduct” shall mean (i) the commission of any act of fraud, embezzlement or dishonesty by Purchaser, (ii) any unauthorized use or disclosure by Purchaser of confidential information or trade secrets of the
Company (or any Parent or Subsidiary), or (iii) any other intentional misconduct by Purchaser adversely affecting the business or affairs of the Company (or any Parent or Subsidiary) in a material manner; provided, however, that
if the term or concept has been defined in a written employment agreement between the Company and Purchaser, then Misconduct shall have the definition set forth in such employment agreement while such agreement is in effect. The foregoing definition
shall not in any way preclude or restrict the right of the Company (or any Parent or Subsidiary) to discharge or dismiss Purchaser for any other 

  

 A-2 

 
acts or omissions, but such other acts or omissions shall not be deemed, for purposes of this Agreement, to constitute grounds for termination for
Misconduct. 
 N. “1933 Act” shall mean the Securities Act of 1933, as amended. 
 O. “Owner” shall mean Purchaser and all subsequent holders of the Purchased Shares who derive their chain of ownership through a
Permitted Transfer from Purchaser. 
 P. “Parent” shall mean any corporation (other than the Company) in an unbroken
chain of corporations ending with the Company, provided each corporation in the unbroken chain (other than the Company) owns, at the time of the determination, stock possessing 50% or more of the total combined voting power of all classes of stock
in one of the other corporations in such chain. 
 Q. “Permitted Transfer” shall mean (i) a gratuitous transfer
of the Purchased Shares, provided and only if Purchaser obtains the Company’s prior written consent to such transfer, (ii) a transfer of title to the Purchased Shares effected pursuant to Purchaser’s will or the laws of
inheritance following Purchaser’s death or (iii) a transfer to the Company in pledge as security for any purchase-money indebtedness incurred by Purchaser in connection with the acquisition of the Purchased Shares. 
 R. “Purchase Price” shall have the meaning assigned to such term in Paragraph A.1. 
 S. “Purchased Shares” shall have the meaning assigned to such term in Paragraph A.1. 
 T. “Purchaser” shall mean the person identified in the introductory paragraph of this Agreement. 
 U. “Qualified Public Offering” shall mean the firm commitment underwritten public offering of shares of Common Stock at a price
per share of at least $6.00 (which price shall be subject to appropriate adjustment in the event of a Recapitalization or Reorganization). 
 V. “Recapitalization” shall mean any stock split, stock dividend, recapitalization, combination of shares, exchange of shares or other change affecting the Company’s outstanding Common Stock as a class without
the Company’s receipt of consideration. 
 W. “Reorganization” shall mean any of the following transactions:

 (i) a merger or consolidation in which the Company is not the surviving entity; 
 (ii) a sale, transfer or other disposition of all or substantially all of the Company’s assets; 
  

 A-3 

 (iii) a reverse merger in which the Company is the surviving entity but in which the
Company’s outstanding voting securities are transferred in whole or in part to a person or persons different from the persons holding those securities immediately prior to the merger; or 
 (iv) any transaction effected primarily to change the state in which the Company is incorporated or to create a holding company structure.

 X. “Repurchase Price” shall mean [(i) in the event of an Involuntary Termination of Purchaser’s Service,] the
Fair Market Value per share of Common Stock on the date Purchaser’s Service ceases [other than by reason of an Involuntary Termination] [or (ii) in the event of the resignation of Purchaser or the termination of Purchaser’s Service
for Misconduct, $            per share]. 
 Y. “Repurchase
Right” shall mean the right granted to the Company in accordance with Article D. 
 Z. “SEC” shall mean
the Securities and Exchange Commission. 
 AA. “Service” shall mean the Purchaser’s performance of services for
the Company (or any Parent or Subsidiary) in the capacity of an employee, subject to the control and direction of the employer entity as to both the work to be performed and the manner and method of performance, a non-employee member of the board of
directors or an independent contractor. 
 BB. “Subsidiary” shall mean any corporation (other than the Company) in an
unbroken chain of corporations beginning with the Company, provided each corporation (other than the last corporation) in the unbroken chain owns, at the time of the determination, stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain. 
 CC. “Target Shares” shall have the meaning
assigned to such term in Paragraph E.2. 
 DD. “Unvested Shares” shall mean the Purchased Shares that have not
vested in accordance with the Vesting Schedule applicable to those shares or any special vesting acceleration provisions and that are subject to the Repurchase Right. 
 EE. “Vested Shares” shall mean the Purchased Shares that have vested in accordance with the Vesting Schedule applicable to those shares or any special vesting acceleration provisions and
that are no longer subject to the Repurchase Right. 
 FF. “Vesting Schedule” shall mean the vesting schedule
specified in Paragraph D.3. 
  

 A-4Comverge, Inc. 2006 Long-Term Incentive Plan

 Exhibit 10.18 
 COMVERGE, INC. 
 2006 LONG-TERM INCENTIVE PLAN 

 COMVERGE, INC. 
 2006 LONG-TERM INCENTIVE PLAN 
 Table of Contents 
  

					
	ARTICLE I INTRODUCTION	  	1
			
	 1.1
	    	Purpose	  	1
	 1.2
	    	Definitions	  	1
	 1.3
	    	Shares Subject to the Plan	  	7
	 1.4
	    	Administration of the Plan	  	8
	 1.5
	    	Amendment and Discontinuance of the Plan	  	8
	 1.6
	    	Granting of Awards to Participants	  	8
	 1.7
	    	Term of Plan	  	8
	 1.8
	    	Leave of Absence	  	8
		
	ARTICLE II NON-QUALIFIED STOCK OPTIONS	  	9
			
	 2.1
	    	Grants	  	9
	 2.2
	    	Calculation of Exercise Price	  	9
	 2.3
	    	Terms and Conditions of Non-Qualified Stock Options	  	9
	 2.4
	    	Amendment	  	10
	 2.5
	    	Acceleration of Vesting	  	10
	 2.6
	    	Other Provisions	  	11
	 2.7
	    	No Option Repricing Without Stockholder Approval	  	11
		
	ARTICLE III INCENTIVE OPTIONS	  	11
			
	 3.1
	    	Eligibility	  	11
	 3.2
	    	Exercise Price	  	11
	 3.3
	    	Dollar Limitation	  	11
	 3.4
	    	10% Stockholder	  	12
	 3.5
	    	Options Not Transferable	  	12
	 3.6
	    	Compliance with 422	  	12
	 3.7
	    	Limitations on Exercise	  	12
		
	ARTICLE IV BONUS STOCK	  	12
		
	ARTICLE V STOCK APPRECIATION RIGHTS AND RESTRICTED STOCK UNITS	  	12
			
	 5.1
	    	Stock Appreciation Rights	  	12
	 5.2
	    	Restricted Stock Unit Awards	  	13

					
	 ARTICLE VI RESTRICTED STOCK
	  	13
			
	 6.1
	    	Eligible Persons	  	13
	 6.2
	    	Restricted Period and Vesting	  	14
		
	ARTICLE VII PERFORMANCE AWARDS	  	14
			
	 7.1
	    	Performance Awards	  	14
	 7.2
	    	Performance Goals	  	15
		
	ARTICLE VIII OTHER STOCK OR PERFORMANCE-BASED AWARDS	  	16
		
	ARTICLE IX CERTAIN PROVISIONS APPLICABLE TO ALL AWARDS	  	16
			
	 9.1
	    	General	  	16
	 9.2
	    	Stand-Alone, Additional, Tandem and Substitute Awards	  	17
	 9.3
	    	Term of Awards	  	17
	 9.4
	    	Form and Timing of Payment under Awards; Deferrals	  	17
	 9.5
	    	Vested and Unvested Awards	  	18
	 9.6
	    	Exemptions from Section 16(b) Liability	  	18
	 9.7
	    	Other Provisions	  	18
		
	ARTICLE X WITHHOLDING FOR TAXES	  	19
		
	ARTICLE XI MISCELLANEOUS	  	20
			
	 11.1
	    	No Rights to Awards	  	20
	 11.2
	    	No Right to Employment	  	20
	 11.3
	    	Governing Law	  	20
	 11.4
	    	Severability	  	20
	 11.5
	    	Other Laws	  	20
	 11.6
	    	409A Compliance - No Guarantee of Tax Consequences	  	20
	 11.7
	    	Shareholder Agreements	  	21

  

 -ii- 

 COMVERGE, INC. 2006 
 Long-term Incentive Plan 
 ARTICLE I 
 INTRODUCTION 
 1.1 Purpose. The Plan is intended to promote the interests
of the Company and its Stockholders (the “Stockholders”) by encouraging Employees, Service Providers and Non-Employee Directors to acquire or increase their equity interests in the Company, thereby giving them an added
incentive to work toward the continued growth and success of the Company. The Board also contemplates that through the Plan, the Company and its Affiliates will be better able to compete for the services of the individuals needed for the continued
growth and success of the Company. The Plan is an amendment and restatement of the Company’s 2000 Stock Option Plan (the “Prior Plan”) and the Prior Plan is hereby merged into the Plan to become a part of the Plan. Awards granted on
after the Effective Date shall be governed by the terms of the Plan. The amendment and merger of the Prior Plan into the Plan is not intended to be a material modification of any Award issued under the Prior Plan. Nothing in this amendment and
restatement of the Prior Plan shall operate or be construed to amend or modify in any manner any Award that was outstanding under the Prior Plan prior to the Effective Date if such amendment or modification would adversely affect such Award in any
manner, including, without limitation, causing such Award to become subject to Section 409A of the Code if otherwise exempt as a “grandfathered” Award. 
 1.2 Definitions. As used in the Plan, the following terms shall have the meanings set forth below: 
 “Affiliate” means (i) any entity in which the Company directly or indirectly, owns 50% or more of the combined voting power, as determined by the Plan Committee, (ii) any “parent
corporation” of the Company (as defined in Section 424(e) of the Code), (iii) any “subsidiary corporation” of any such parent corporation (as defined in Section 424(f) of the Code) of the Company and (iv) any
trades or businesses, whether or not incorporated which are members of a controlled group or are under common control (as defined in Sections 414(b) or (c) of the Code) with the Company, but using the threshold of 50% ownership wherever 80%
appears. 
 “Awards” means, collectively, Options, Purchased Stock, Bonus Stock, Stock Appreciation Rights,
Restricted Stock Units, Restricted Stock, or Other Stock or Performance Based Awards issued under the Plan or Options issued under the Prior Plan. 
 “Board” means the Board of Directors of the Company. 
 “Bonus
Stock” means Common Stock described in Article IV of the Plan. 
 “Cause” for termination of any
Participant who is a party to an agreement of Employment with or provides services to the Company shall mean termination 

 
for “Cause” as such term or such similar concept is defined in such agreement, the relevant portions of which are incorporated herein by reference.
If such agreement does not define “Cause” or such similar concept or if a Participant is not a party to such an agreement, “Cause” means (i) the willful commission by a Participant of a criminal or other act that causes or
is likely to cause substantial economic damage to the Company or an Affiliate or substantial injury to the business reputation of the Company or an Affiliate; (ii) the commission by a Participant of an act of fraud in the performance of such
Participant’s duties on behalf of the Company or an Affiliate; or (iii) the continuing willful failure of a Participant to perform the duties of such Participant to the Company or an Affiliate (other than such failure resulting from the
Participant’s incapacity due to physical or mental illness) after written notice thereof (specifying the particulars thereof in reasonable detail) and a reasonable opportunity to be heard and cure such failure are given to the Participant by
the Plan Committee. For purposes of the Plan, no act, or failure to act, on the Participant’s part shall be considered “willful” unless the applicable act or omission is done or not done, as the case may be, not in good faith and
without reasonable belief that the Participant’s action or omission was in the best interest of the Company or an Affiliate, as the case may be. 
 “Change of Control” shall be deemed to have occurred upon any of the following events: 
 (i) any “person” (as defined in Section 3(a)(9) of the Exchange Act, and as modified by Section 13(d) and 14(d) thereof) other than (A) the Company or any of its subsidiaries, (B) any
employee benefit plan of the Company or any of its subsidiaries, (C) an Affiliate, (D) a company owned, directly or indirectly, by stockholders of the Company in substantially the same proportions as their ownership of the Company, or
(E) an underwriter temporarily holding securities pursuant to an offering of such securities (a “Person”), becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly,
of securities of the Company representing 30% or more of the shares of voting stock of the Company then outstanding; provided, however, that an initial public offering of Common Stock shall not constitute a Change of
Control; 
 (ii) the consummation of any merger, organization, business combination or consolidation of the Company or one of
its subsidiaries with or into any other company, other than a merger, reorganization, business combination or consolidation which would result in the holders of the voting securities of the Company outstanding immediately prior thereto holding
securities which represent immediately after such merger, reorganization, business combination or consolidation more than fifty 50% of the combined voting power of the voting securities of the Company or the surviving company or the parent of such
surviving company; 
 (iii) the consummation of a sale or disposition by the Company of the Company or all or substantially
all of the Company’s assets, other than a sale or 

  

 -2- 

 
disposition where the holders of the voting securities of the Company outstanding immediately prior thereto hold securities immediately thereafter which
represent more than 50% of the combined voting power of the voting securities of the acquiror, or parent of the acquiror, of such assets, or the stockholders of the Company approve a plan of complete liquidation or dissolution of the Company; or

 (iv) the Incumbent Board ceases for any reason to constitute a majority of the Board; provided,
however, that any individual becoming a Director subsequent to the Effective Date whose election by the Board, was approved by a vote of a majority of the Directors then comprising the Incumbent Board 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 election contest with respect to the election or removal of Directors or other
solicitation of proxies or consents by or on behalf of a person other than the Board. 
 Solely with respect to any Award that
is subject to Section 409A of the Code and that is payable upon a Change of Control, and to the extent that the above definition does not comply with Section 409A, such definition shall be modified, to the extent required to ensure that
this definition complies with the requirements of Section 409A of the Code, as set forth in regulations or other regulatory guidance issued under Section 409A of the Code by the appropriate governmental authority and the Plan shall be
operated in accordance with the above definition of Change in Control as modified to the extent necessary to ensure that the above definition complies with the definition prescribed in such regulations or other regulatory guidance insofar as the
definition relates to any Award that is subject to Section 409A of the Code and payable upon a Change of Control. 
 “Code” means the Internal Revenue Code of 1986, as amended from time to time, and the rules and regulations thereunder. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder by the Securities and Exchange Commission. 
 “Common Stock” means the common stock of the Company, par value $0.001 per share. 
 “Company” means Comverge, Inc. (formerly known as Comverge Technologies, Inc.) 
 “Covered Employee” means the Chief Executive Officer of the Company or the four highest paid officers of the Company
other than the Chief Executive Officer as described in Section 162(m)(3) of the Code, as well as any person 

  

 -3- 

 
designated by the Plan Committee, at the time of grant of a Performance Award, who is likely to be a Covered Employee with respect to that fiscal year.

 “Director” means a director of the Company or an Affiliate. 
 “Disability” means a Participant is unable to engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or is, by reason of any medically determinable physical or mental impairment which can
be expected to result in death or can be expected to last of or a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than months under an accident and health plan covering employees of the
Company. 
 “Effective Date” has the meaning set forth in Section 1.7 hereof. 
 “Employee” means any employee of the Company or an Affiliate. 
 “Employment” includes any period in which a Participant is an Employee or a paid Service Provider to the Company or an
Affiliate. 
 “Fair Market Value or FMV Per Share” The Fair Market Value or FMV Per Share of the Common Stock
shall be the closing price on any national exchange or over-the-counter market, if applicable, for the date of the determination, or if no trade of the Common Stock shall have been reported for such date, the closing sales price quoted on such
exchange for the most recent trade prior to the determination date. If shares of the Common Stock are not listed or admitted to trading on any exchange, over-the-counter market or any similar organization as of the determination date, the FMV Per
Share shall be determined by the Plan Committee in good faith using a fair application of a reasonable valuation methodology taking into account all available information material to the value of the Company. 
 “Good Reason” means termination of Employment by an Employee, or termination of service by a Service Provider under any
of the following circumstances: 
 (i) if such Employee or Service Provider is a party to an agreement for Employment with or
services to the Company, which agreement includes a definition of “Good Reason” or such similar concept for termination of Employment with or services to the Company, “Good Reason” shall have the same definition for purposes of
the Plan as is set forth in such agreement, the relevant portions of which are incorporated herein by reference; 
 (ii) if
such Employee or Service Provider is not a party to an agreement with the Company that defines the term “Good Reason,” such term shall mean termination of Employment or service by the Employee or Service 

  

 -4- 

 
Provider after 30 calendar days written notice upon the occurrence of either of the following circumstances: 
 (A) the assignment to the Participant without the Participant’s consent of any duties, responsibilities, or reporting requirements
inconsistent with his or her position with the Company, which is a material diminishment, of the Participant’s overall duties, responsibilities, or status; or 
 (B) material reduction by the Company in the Participant’s fees, compensation, or benefits without the Participant’s consent and
not associated with a reduction or change for similarly situated Employees or Service Providers. 
 Continued Employment of
the Employee or Service Provider for 15 working days after the occurrence of (A) or (B) above without notice to the Company of intention to terminate with Good Reason provided in (ii) above shall be deemed to be consent to the
occurrence of (A) or (B). 
 “Incentive Option” means any option which satisfies the requirements of
Section 422 of the Code and is granted pursuant to Article III of the Plan. 
 “Incumbent Board” means
the individuals who constitute the Board as of the Effective Time. 
 “Non-Employee Director” means persons
who are members of the Board but who are neither Employees nor Service Providers of the Company or any Affiliate. 
 “Non-Qualified Stock Option” shall mean an option not intended to satisfy the requirements of Section 422 of the Code and which is granted pursuant to Article II of the Plan. 
 “Option” means an option to acquire Common Stock granted pursuant to the provisions of the Plan, and refers to either an
Incentive Stock Option or a Non-Qualified Stock Option, or both, as applicable. 
 “Option Expiration Date,”
with respect to an Option, means the date determined by Plan Committee, which shall not be more than ten years after the date of grant of such Option. 
 “Option Grant Date” means the date on which the Board grants an Option pursuant to the provisions of the Plan. 
 “Optionee” means a Participant who has received or will receive an Option. 
  

 -5- 

 “Other Stock or Performance-Based Award” means an award granted pursuant
to Article VIII of the Plan. 
 “Participant” means any Non-Employee Director, Employee or Service Provider
granted an Award under the Plan. 
 “Performance Award” means an Award granted pursuant to Article VII of the
Plan, which, if earned, shall be payable in shares of Common Stock, cash or any combination thereof as determined by the Plan Committee. 
 “Performance Period” means a period of not less than one year and not more than five years during which the Plan Committee may grant Performance Awards. 
 “Performance Shares” means an Award of the right to receive shares of Common Stock issued at the end of a Restricted
Period that is granted pursuant to Article VIII of the Plan. 
 “Person” has the meaning set forth in this
Section 1.8 in the definition of “Change of Control”. 
 “Plan” means this Comverge, Inc. 2006
Long-term Incentive Plan. 
 “Plan Committee” means the committee appointed by the Board or, if none, the
Board; provided however, that with respect to any Award granted to a Covered Employee that is intended to be “performance-based compensation” as described in Section 162(m)(4)(c) of the Code, the Plan Committee shall
consist solely of two or more “outside directors” as described in Section 162(m)(4)(c)(i) of the Code; and if the Company is subject to the Exchange Act, the Plan Committee shall mean the compensation Plan Committee of the Board,
which shall consist of not less than two independent members of the Board, each of whom shall qualify as a “non-employee director” (as that term is defined in Rule 16b-3 under the Exchange Act) appointed by and serving at the pleasure of
the Board to administer this Plan or, if none, the independent members of the Board. 
 “Prior Plan” means
the Comverge Technologies, Inc. 2000 Stock Option Plan. 
 “Purchased Stock” means a right to purchase Common
Stock granted pursuant to Article IV of the Plan. 
 “Restricted Period” means the period established by the
Plan Committee with respect to an Award during which the Award either remains subject to forfeiture or is not exercisable by the Participant. 
 “Restricted Stock” means any share of Common Stock, prior to the lapse of restrictions thereon, granted under Article VI of the Plan. 
  

 -6- 

 “Restricted Stock Unit Award” has the meaning set forth in
Section 5.2 hereof. 
 “Service Provider” means any individual or entity, other than a Director or an
Employee, who renders consulting or advisory services to the Company or an Affiliate. 
 “Shares” means
shares of Common Stock. 
 “Stock Appreciation Rights” means an Award granted pursuant to Article V of
the Plan. 
 1.3 Shares Subject to the Plan. Subject to adjustment as set forth below, the aggregate number of Shares that may be
issued under the Plan shall not exceed 6,312,073 Shares, consisting of the sum of 4,749,371 Shares available for issuance under the Prior Plan which remain available for the grant of Awards immediately prior to the Effective Date, plus an additional
number of 1,562,702 “new” Shares available under the Plan. Shares issued on or after the Effective Date pursuant to Awards granted under the Prior Plan prior to the Effective Date shall reduce the number of Awards available under the Plan.
If any stock-denominated Award is paid in cash, forfeited or otherwise lapses, expires, terminates or is canceled without the delivery of Shares, then the number of Shares subject to such Award, to the extent of such cash payment, forfeiture,
expiration, lapse, termination or cancellation, shall be added back to the Share “pool” and be available for future Awards. With respect to a dollar-denominated Award that is paid in Shares, the Share “pool” shall be reduced by
the number of Shares delivered to pay such dollar-denominated Award. Notwithstanding the foregoing, Substitute Awards granted in connection with a business acquisition made by the Company or a Subsidiary, whether an asset purchase, merger or stock
acquisition, shall not reduce the number of Shares available in the Share “pool.” In addition, Shares withheld or received by the Company to satisfy tax withholding or other payment obligations shall not again be available for future
Awards. No more than 1,000,000 shares of Common Stock shall be issued to any one Participant pursuant to this Plan in any one calendar year. With respect to Performance Awards paid in cash or a combination of cash and Common Stock, the sum of such
cash and Common Stock underlying an Award paid to any one individual in any one year shall not exceed $10,000,000. The maximum number of shares of Common Stock that may be issued under this Plan pursuant to Incentive Options shall be 6,312,073
shares. 
 Notwithstanding the above, however, in the event that at any time after the Effective Date the outstanding shares of Common Stock
are changed into or exchanged for a different number or kind of shares or other securities of the Company by reason of a merger, consolidation, recapitalization, reclassification, stock split, stock dividend, combination of shares or the like, the
aggregate number and class of securities available under the Plan shall be ratably adjusted by the Plan Committee, as determined by the Plan Committee to be appropriate in order to prevent dilution or enlargement of the benefits or potential
benefits intended to be made available under the Plan. The Plan Committee shall, in such manner as it may deem equitable, adjust any or all of (i) the number and type of Shares (or other securities or property) with respect to which Awards may
be granted, (ii) the number and type of Shares (or other securities or property) subject to outstanding Awards, and (iii) the grant or exercise price with respect to any Award or, 

  

 -7- 

 
if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided that the number of Shares subject to any Award
denominated in Shares shall always be a whole number whose determination shall be final and binding upon the Company and all other interested persons. Shares issued pursuant to the Plan (i) may be treasury shares, authorized but unissued shares
or, if applicable, shares acquired in the open market and (ii) shall be fully paid and nonassessable. 
 1.4 Administration of the
Plan. The Plan shall be administered by the Plan Committee. Subject to the provisions of the Plan, the Plan Committee shall interpret the Plan and all Awards under the Plan, shall make such rules as it deems necessary for the proper
administration of the Plan, shall make all other determinations necessary or advisable for the administration of the Plan and shall correct any defect or supply any omission or reconcile any inconsistency in the Plan or in any Award under the Plan
in the manner and, to the extent that the Plan Committee deems desirable, to effectuate the Plan. Any action taken or determination made by the Plan Committee pursuant to this and the other paragraphs of the Plan shall be conclusive and binding upon
the Company and all other interested parties. 
 1.5 Amendment and Discontinuance of the Plan. The Board may amend, suspend or
terminate the Plan; provided, however, that, without the consent of the holder of an Award, no amendment, suspension or termination of the Plan may terminate such Award or adversely affect such person’s rights with
respect to such Award in any material respect; provided further, however, that any amendment that would constitute a “material revision” of the Plan (as that term is used in the rules of any exchange on which
the Common Stock is traded) shall be subject to Stockholder approval. 
 1.6 Granting of Awards to Participants. The Plan Committee
shall have the authority to grant, prior to the expiration date of the Plan, Awards to such Employees, Service Providers and Non-Employee Directors as may be selected by it on the terms and conditions hereinafter set forth in the Plan. In selecting
the persons to receive Awards, including the type and size of the Award, the Plan Committee may consider any factors that it may deem relevant. Notwithstanding the foregoing, any Awards made to members of the Plan Committee or any Service Provider
to the Plan Committee or the Board, must be approved by the full Board. 
 1.7 Term of Plan. The Plan shall be effective as of
June 20, 2006 (the “Effective Date”), subject to approval by the Stockholders. The provisions of the Plan are applicable to all Awards granted on or after the Effective Date. If not sooner terminated under the provisions
of Section 1.5 hereof, the Plan shall terminate upon, and no further Awards shall be made, after the tenth anniversary of the Effective Date. 
 1.8 Leave of Absence. If an Employee is on military, sick leave or other bona fide leave of absence, such person shall be considered an “Employee” for purposes of an outstanding Award during the period of such leave
provided it does not exceed 90 days, or, if longer, so long as the person’s right to reemployment is guaranteed either by statute or by contract. If the period of leave exceeds 90 days, such Employee’s Employment (as defined below) shall
be deemed to have terminated on the 91st day of such leave, unless the person’s right to reemployment is
guaranteed by statute or contract. 
  

 -8- 

 ARTICLE II 
 NON-QUALIFIED STOCK OPTIONS 
 2.1 Grants. The Plan Committee may grant Non-Qualified Stock
Options to purchase Common Stock to any Employee, Service Provider or Non-Employee Director, provided that such grant does not constitute a deferral of compensation within the meaning of section 409A of the Code. 
 2.2 Calculation of Exercise Price. The exercise price to be paid for each share of Common Stock deliverable upon exercise of each Non-Qualified
Stock Option granted under this Article II shall not be less than the FMV Per Share on the date of grant of such Non-Qualified Stock Option. The exercise price for each Non-Qualified Stock Option granted under this Article II shall be subject to
adjustment as provided in Section 2.3(d) below. 
 2.3 Terms and Conditions of Non-Qualified Stock Options. Non-Qualified Stock
Options shall be in such form as the Plan Committee may from time to time approve, shall be subject to the following terms and conditions and may contain such additional terms and conditions, not inconsistent with this Article II, as the Plan
Committee shall deem desirable: 
 (a) Option Period and Conditions and Limitations on Exercise. No Non-Qualified Stock Option shall
be exercisable later than the Option Expiration Date. To the extent not prohibited by other provisions of the Plan, each Non-Qualified Stock Option shall be exercisable at such time or times as the Plan Committee in its discretion may determine at
the time such Non-Qualified Stock Option is granted. 
 (b) Manner of Exercise. In order to exercise a Non-Qualified Stock Option, the
person or persons entitled to exercise it shall deliver to the Company payment in full for the shares being purchased, together with any required withholding taxes. The payment of the exercise price, together with any required withholding taxes, for
each Non-Qualified Stock Option shall be made (i) in cash or by check payable and acceptable to the Company, (ii) with the consent of the Plan Committee, by tendering to the Company shares of Common Stock owned by the person for more than
six months having an aggregate Fair Market Value as of the date of exercise that is not greater than the full exercise price for the shares with respect to which the Non-Qualified Stock Option is being exercised and by paying any remaining amount of
the exercise price as provided in (i) above, or (iii) subject to such instructions as the Plan Committee may specify, at the person’s written request the Company may deliver certificates for the shares of Common Stock for which the
Non-Qualified Stock Option is being exercised to a broker for sale on behalf of the person; provided that the person has irrevocably instructed such broker to remit directly to the Company on the person’s behalf the full amount of
the exercise price from the proceeds of such sale. In the event that the person elects to make payment as allowed under clause (ii) above, the Plan Committee may, upon confirming that the Optionee owns the number of additional shares being
tendered, authorize the issuance of a new certificate for the number of shares being acquired pursuant to the exercise of the Non-Qualified Stock Option less the number of shares being tendered upon the exercise and return to the person (or not
require surrender of) the certificate for the shares being tendered upon the exercise. If the Plan Committee so requires, such person or persons shall also deliver a written representation that all 

  

 -9- 

 
shares being purchased are being acquired for investment and not with a view to, or for resale in connection with, any distribution of such shares.

 (c) Options not Transferable. Except as provided below, no Non-Qualified Stock Option granted hereunder shall be transferable other
than by (i) will or by the laws of descent and distribution or (ii) pursuant to a domestic relations order and, during the lifetime of the Participant to whom any such Non-Qualified Stock Option is granted, and it shall be exercisable only
by the Participant (or his guardian). Any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of, or to subject to execution, attachment or similar process, any Non-Qualified Stock Option granted hereunder, or any right thereunder,
contrary to the provisions hereof, shall be void and ineffective, shall give no right to the purported transferee, and shall, at the sole discretion of the Plan Committee, result in forfeiture of the Non-Qualified Stock Option with respect to the
shares involved in such attempt. With respect to a specific Non-Qualified Stock Option, the Participant (or his guardian) may transfer, for estate planning purposes, all or part of such Non-Qualified Stock Option to one or more immediate family
members or related family trusts or partnerships or similar entities. 
 (d) Listing and Registration of Shares. Each Non-Qualified
Stock Option shall be subject to the requirement that if at any time the Plan Committee determines, in its discretion, that the listing, registration, or qualification of the shares subject to such Non-Qualified Stock Option under any securities
exchange or under any state or federal law, or the consent or approval of any governmental regulatory body, is necessary or desirable as a condition of, or in connection with, the issue or purchase of shares thereunder, such Non-Qualified Stock
Option may not be exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained and the same shall have been free of any conditions not acceptable to the Plan Committee.

 2.4 Amendment. The Plan Committee may, without the consent of the person or persons entitled to exercise any outstanding
Non-Qualified Stock Option, amend, modify or terminate such Non-Qualified Stock Option; provided, however, such amendment, modification or termination shall not, without such person’s consent, reduce or diminish the
value of such Non-Qualified Stock Option determined as if the Non-Qualified Stock Option had been exercised, vested, cashed in or otherwise settled on the date of such amendment or termination or cause such Non-Qualified Stock Option to be subject
to adverse tax consequences under section 409A. The Plan Committee may at any time or from time to time, in its discretion, in the case of any Non-Qualified Stock Option which is not then immediately exercisable in full, accelerate the time or times
at which such Non-Qualified Stock Option may be exercised to any earlier time or times. 
 2.5 Acceleration of Vesting. Any
Non-Qualified Stock Option granted hereunder that is not otherwise vested shall vest (unless specifically provided to the contrary by the Plan Committee in the document or instrument evidencing an Non-Qualified Stock Option granted hereunder) upon
(i) termination of an Employee or Service Provider without Cause or termination by an Employee or Service Provider with Good Reason within one year from the effective date of the Change of Control; or (ii) death or Disability of the
Participant. 
  

 -10- 

 2.6 Other Provisions. 
 (a) The person or persons entitled to exercise, or who have exercised, an Non-Qualified Stock Option shall not be entitled to any rights as a Stockholder
with respect to any shares subject to such Non-Qualified Stock Option until such person or persons shall have become the holder of record of such shares. 
 (b) No Non-Qualified Stock Option granted hereunder shall be construed as limiting any right that the Company or any Affiliate may have to terminate at any time, with or without cause, the Employment of any person to
whom such Non-Qualified Stock Option has been granted. 
 (c) Notwithstanding any provision of the Plan or the terms of any Non-Qualified
Stock Option, the Company shall not be required to issue any shares hereunder if such issuance would, in the judgment of the Plan Committee, constitute a violation of any state, local or federal law or of the rules or regulations of any governmental
regulatory body. 
 2.7 No Option Repricing Without Stockholder Approval. With Stockholder approval only, the Plan Committee may grant
to holders of outstanding Non-Qualified Stock Options, in exchange for the surrender and cancellation of such Non-Qualified Stock Options, new Non-Qualified Stock Options having exercise prices lower than the exercise price provided in the
Non-Qualified Stock Options so surrendered and canceled. 
 ARTICLE III 
 INCENTIVE OPTIONS 
 The terms specified below shall be applicable to all
Incentive Options. Except as modified by the provisions of this Article III, all the provisions of Article II hereof shall also be applicable to Incentive Options. Non-Qualified Stock Options shall not be subject to the terms of this
Article III. 
 3.1 Eligibility. Incentive Options may be granted only to Employees of (i) any “parent corporation” of
the Company (as defined in section 424(e) of the Code) or (ii) any “subsidiary corporation” of any such parent corporation (as defined in section 424(f) of the Code) of the Company. Incentive Options may be granted only if the Plan is
approved by the Stockholders of the Company within one year prior to or after the Effective Date. 
 3.2 Exercise Price. The exercise
price per Share shall not be less than 100% of the FMV Per Share on the Option Grant Date. 
 3.3 Dollar Limitation. The aggregate
Fair Market Value (determined as of the respective date or dates of grant) of shares of Common Stock for which one or more Options granted to any Employee under the Plan (or any other option plan of the Company or an Affiliate) may for the first
time become exercisable as Incentive Options during any one calendar year shall not exceed the sum of $100,000. To the extent the Employee holds two or more such Options which become exercisable for the first time in the same calendar year, the
foregoing limitation on the exercisability of such Options as Incentive Options shall be applied on the basis of the order in which such Options are granted. 
  

 -11- 

 3.4 10% Stockholder. If any Employee to whom an Incentive Option is granted is a 10% Stockholder,
then the exercise price per share shall not be less than 110% of the FMV Per Share on the Option Grant Date and the option term shall not exceed five years measured from the Option Grant Date. 
 3.5 Options Not Transferable. No Incentive Option granted hereunder shall be transferable other than by will or by the laws of descent and
distribution and shall be exercisable during the Optionee’s lifetime only by such Optionee. 
 3.6 Compliance with 422. All
Options that are intended to be Incentive Stock Options shall be designated as such in the Option grant and in all respects shall be issued in compliance with Code Section 422. 
 3.7 Limitations on Exercise. No Incentive Option shall be exercisable more than three months after the Optionee ceases to be an Employee for any
reason other than death or Disability, or more than one year after the Optionee ceases to be an Employee due to death or Disability. 
 ARTICLE IV 
 BONUS STOCK 
 The Plan Committee may, from time to time and subject to the provisions of this Plan, grant shares of Bonus Stock to Employees, Service Providers and Non-Employee Directors. Such grants of Bonus Stock shall be in
consideration of performance of services by the Participant without additional consideration, except as may be required by the Plan Committee. Bonus Stock shall be shares of Common Stock that are not subject to a Restricted Period under Article VI.

 ARTICLE V 
 STOCK
APPRECIATION RIGHTS AND RESTRICTED STOCK UNITS 
 5.1 Stock Appreciation Rights. The Plan Committee is authorized to grant Stock
Appreciation Rights to Employees, Service Providers or Non-Employee Directors on the following terms and conditions, provided that such grant does not constitute a deferral of compensation within the meaning of section 409A of the Code. 

(a) Right to Payment. A Stock Appreciation Right shall confer on the Participant to whom it is granted a right to receive, upon exercise
thereof, the excess of (A) the FMV Per Share on the date of exercise over (B) the FMV Per Share on the date of grant. Such excess may be paid in cash or shares of Common Stock as determined by the Plan Committee and set forth in the Award
agreement. 
 (b) Rights Related to Options. A Stock Appreciation Right granted in connection with an Option shall entitle a
Participant, upon exercise thereof, to surrender that Option or any portion thereof, to the extent unexercised, and to receive payment of an amount computed pursuant to Subsection 5.1(a) hereof. That Option shall then cease to be exercisable to the
extent surrendered. A Stock Appreciation Right granted in connection with an Option shall be exercisable only at such time or times and only to the extent that the related Option is exercisable 

  

 -12- 

 
and shall not be transferable (other than by will or the laws of descent and distribution) except to the extent that the related Option is transferable.

 (c) Right Without Option. A Stock Appreciation Right granted independent of an Option shall be exercisable as determined by the
Plan Committee and set forth in the Award agreement governing such Stock Appreciation Right. 
 (d) Terms. The Plan Committee shall
determine at the date of grant the time or times at which and the circumstances under which a Stock Appreciation Right may be exercised in whole or in part (including achievement of certain performance goals and/or meeting certain future service
requirements), the method of exercise, whether or not a Stock Appreciation Right shall be in tandem or in combination with any other Award and any other terms and conditions of any Stock Appreciation Right. 
 5.2 Restricted Stock Unit Awards. The Plan Committee is authorized to grant rights to receive cash or Common Stock equal to the Fair Market Value
of specified number of shares of Common Stock at the end of a specified deferral period to Participants (“Restricted Stock Unit Awards”), subject to the following terms and conditions: 
 (a) Award and Restrictions. Satisfaction of a Restricted Stock Unit Award shall occur upon expiration of the deferral period specified for such
Restricted Stock Unit Award by the Plan Committee. In addition, Restricted Stock Unit Awards shall be subject to such restrictions (which may include a risk of forfeiture), if any, as the Plan Committee may impose, which restrictions may lapse at
the expiration of the deferral period or at earlier specified times (including based on achievement of performance goals and/or future service requirements), separately or in combination, installments or otherwise, as the Plan Committee may
determine. 
 (b) Forfeiture. Except as otherwise determined by the Plan Committee or as may be set forth in any Award, employment or
other agreement pertaining to a Restricted Stock Unit Award, upon termination of Employment or services during the applicable deferral period or portion thereof to which forfeiture conditions apply, all Restricted Stock Unit Awards that are at that
time subject to deferral (other than a deferral at the election of the Participant) shall be forfeited; provided that the Plan Committee may provide, by rule or regulation or in any Award agreement, or may determine in any individual
case, that restrictions or forfeiture conditions relating to Restricted Stock Unit Awards shall be waived in whole or in part in the event of terminations resulting from specified causes, and the Plan Committee may in other cases waive in whole or
in part the forfeiture of Restricted Stock Unit Awards. 
 ARTICLE VI 
 RESTRICTED STOCK 
 6.1 Eligible Persons. All Employees, Service Providers
and Non-Employee Directors shall be eligible for grants of Restricted Stock. 
  

 -13- 

 6.2 Restricted Period and Vesting. 
 (a) A grant of Restricted Stock is a grant of Common Stock to a Participant which is subject to such limitations (including, without limitation,
limitations that qualify as a “substantial risk of forfeiture” within the meaning given to that term under Section 83 of the Code) and restrictions on transfer by the Participant and repurchase by the Company as the Plan Committee, in
its sole discretion, shall determine. Prior to the lapse of such restrictions, the Participant shall not be permitted to transfer such shares. The Company shall have the right to repurchase or recover such shares for the lesser of (A) the
amount of cash paid therefore, if any or (B) the FMV of the shares at the time of repurchase, if (i) the Participant’s Employment from or services to the Company or an Affiliate is terminated by the Company, such Affiliate or the
Participant prior to the lapse of such restrictions or (ii) the Restricted Stock is forfeited by the Participant pursuant to the terms of the Award. 
 (b) Notwithstanding the foregoing, unless the Award specifically provides otherwise, all Restricted Stock not otherwise vested shall vest upon (i) termination of an Employee or Service Provider without Cause
[or termination by an Employee or Service Provider with Good Reason within one year from the effective date of a Change of Control]; or (ii) death or Disability of the Participant. 
 (c) Each certificate representing Restricted Stock awarded under the Plan shall be registered in the name of the Participant and, during the Restricted
Period, shall be left in deposit with the Company and a stock power endorsed in blank. The grantee of Restricted Stock shall have all the rights of a Stockholder with respect to such shares including the right to vote and the right to receive
dividends or other distributions paid or made with respect to such shares. Any certificate or certificates representing shares of Restricted Stock shall bear a legend similar to the following: 
 The shares represented by this certificate have been issued pursuant to the terms of the Comverge, Inc. 2006 Long-term Incentive Plan (as amended and
restated) and Grant of Restricted Stock dated                     , 20     and may not be sold, pledged,
transferred, assigned or otherwise encumbered in any manner except as is set forth in the terms of such plan or grant. 
 ARTICLE VII

 PERFORMANCE AWARDS 
 7.1 Performance Awards. To the extent the Plan Committee determines that any Award granted pursuant to this Plan shall be contingent upon performance goals or shall constitute performance-based compensation for purposes of
Section 162(m) of the Code, the grant or settlement of the Award shall, in the Plan Committee’s discretion, be subject to the achievement of performance goals determined and applied in a manner consistent with this Section 7.1. The
Plan Committee may grant Performance Awards based on performance criteria measured over a Performance Period. The Plan Committee may use such business criteria and other measures of performance as it may deem appropriate in establishing any
performance conditions, and may exercise its discretion to increase the amounts payable under any Award 
  

 -14- 

 
subject to performance conditions except as limited under Section 7.2 hereof in the case of a Performance Award granted to a Covered Employee.

 7.2 Performance Goals. The grant and/or settlement of a Performance Award shall be contingent upon the terms set forth in this
Section 7.2. 
 (a) General. The performance goals for Performance Awards shall consist of one or more business criteria and a
targeted level or levels of performance with respect to each such criteria, as specified by the Plan Committee. In the case of any Award granted to a Covered Employee, performance goals shall be designed to be objective and shall otherwise meet the
requirements of Section 162(m) of the Code and regulations thereunder (including Treasury Regulations sec. 1.162-27 and successor regulations thereto), including the requirement that the level or levels of performance targeted by the Plan
Committee are such that the achievement of performance goals is “substantially uncertain” at the time the Award is granted. The Plan Committee may determine that such Performance Awards shall be granted and/or settled upon achievement of
any one performance goal or that two or more of the performance goals must be achieved as a condition to the grant and/or settlement of such Performance Awards. Performance goals may differ among Performance Awards granted to any one Participant or
for Performance Awards granted to different Participants. 
 (b) Business Criteria. One or more of the following business criteria for
the Company, an a consolidated basis, and/or for specified subsidiaries, divisions or business or geographical units of the Company (except with respect to the total stockholder return and earnings per share criteria), shall be used by the Plan
Committee in establishing performance goals for Performance Awards granted to a Participant: (i) earnings per share; (ii) increase in revenues; (iii) increase in cash flow; (iv) increase in cash flow return; (v) return on
net assets; (vi) return on assets; (vii) return on investment; (viii) return on capital; (ix) return on equity; (x) economic value added; (xi) gross margin; (xii) net income; (xiii) pretax earnings;
(xiv) pretax earnings before interest, (xv) pretax earnings before interest, depreciation and amortization; (xvi) pretax operating earnings after interest expense and before incentives, service fees and extraordinary or special items;
(xvii) operating income; (xviii) total stockholder return; (xix) debt reduction; (xx) increases in megawatts through new contract executions; (xxi) successful completion of an acquisition, initial public offering, private
placement of equity or debt; or (xxii) reduction of expenses. Any of the above goals may be determined on the absolute or relative basis or as compared to the performance of a published or special index deemed applicable by the Plan Committee
including, but not limited to, the Standard & Poor’s 500 Stock Index or a group of comparable companies. 
 (c) Timing for
Establishing Performance Goals. Performance goals in the case of any Award granted to a Participant who is a Covered Employee shall be established not later than 90 days after the beginning of any Performance Period applicable to such
Performance Awards, or at such other date as may be required or permitted for “performance-based compensation” under Section 162(m) of the Code. 
 (d) Settlement of Performance Awards; Other Terms. After the end of each Performance Period, the Plan Committee shall determine the amount, if any, of Performance Awards payable to each Participant based upon
achievement of business criteria over a 

  

 -15- 

 
Performance Period. The Plan Committee may not exercise discretion to increase any such amount payable in respect of a Performance Award to a Covered
Employee which is designed to comply with Section 162(m) of the Code. The Plan Committee shall specify the circumstances in which such Performance Awards shall be paid or forfeited in the event of termination of Employment by the Participant
prior to the end of a Performance Period or settlement of Performance Awards. 
 (e) Written Determinations. All determinations by the
Plan Committee as to the establishment of performance goals, the amount of any Performance Award, and the achievement of performance goals relating to Performance Awards shall be made in writing in the case of any Award granted to a Participant. The
Plan Committee may not delegate any responsibility relating to Performance Awards discussed in this Section 7.2(e). 
 (f) Status of
Performance Awards under Section 162(m) of the Code. It is the intent of the Company that Performance Awards granted to persons who are designated by the Plan Committee as likely to be Covered Employees within the meaning of
Section 162(m) of the Code and regulations thereunder (including Treasury Regulations sec. 1.162-27 and successor regulations thereto) shall, if so designated by the Plan Committee, constitute “performance-based compensation” within
the meaning of Section 162(m) of the Code and regulations thereunder. Accordingly, the terms of this Section 7.2 shall be interpreted in a manner consistent with Section 162(m) of the Code and regulations thereunder. If any provision
of the Plan as in effect on the date of adoption or any agreements relating to Performance Awards that are designated as intended to comply with Section 162(m) of the Code does not comply or is inconsistent with the requirements of
Section 162(m) of the Code or regulations thereunder, such provision shall be construed or deemed amended to the extent necessary to conform to such requirements. 
 ARTICLE VIII 
 OTHER STOCK OR PERFORMANCE-BASED AWARDS 
 The Plan Committee is hereby authorized to grant to Employees, Non-Employee Directors and Service Providers of the Company or its Affiliates, Other Stock
or Performance-Based Awards, which shall consist of a right which (i) is not an Award described in any other Article and (ii) is denominated or payable in, valued in whole or in part by reference to, or otherwise based on or related to,
shares of Common Stock (including, without limitation, securities convertible into shares of Common Stock) or cash as are deemed by the Plan Committee to be consistent with the purposes of the Plan. Subject to the terms of the Plan, the Plan
Committee shall determine the terms and conditions of any such Other Stock or Performance-Based Award. 
 ARTICLE IX 
 CERTAIN PROVISIONS APPLICABLE TO ALL AWARDS 
 9.1 General. Awards may be granted on the terms and conditions set forth herein. In addition, the Plan Committee may impose on any Award or the exercise thereof, such additional terms and conditions, not inconsistent with the
provisions of the Plan, as the Plan Committee shall determine, including terms requiring forfeiture of Awards in the event of termination of Employment by the Participant and terms permitting a Participant to make elections relating to 

 

 -16- 

 
his Award. Notwithstanding the foregoing, the Plan Committee may amend any Award without the consent of the holder if the Plan Committee deems it necessary
to avoid adverse tax consequences to the holder under Code Section 409A. The Plan Committee shall retain full power and discretion to accelerate or waive, at any time, any term or condition of an Award that is not mandatory under this Plan;
provided, however, that the Plan Committee shall not have discretion to accelerate or waive any term or condition of an Award (i) if such discretion would cause the Award to have adverse tax consequences to
the Participant under 409A, or (ii) if the Award is intended to qualify as “performance-based compensation” for purposes of Section 162(m) of the Code and such discretion would cause the Award not to so qualify. 
 9.2 Stand-Alone, Additional, Tandem and Substitute Awards. Awards granted under the Plan may, in the discretion of the Plan Committee, be granted
either alone, in addition to, in tandem with, or in substitution or exchange for, any other Award or any award granted under another plan of the Company, any Affiliate, or any business entity to be acquired by the Company or an Affiliate, or any
other right of a Participant to receive payment from the Company or any Affiliate. Such additional, tandem and substitute or exchange Awards may be granted at any time. If an Award is granted in substitution or exchange for another Award, the Plan
Committee shall require the surrender of such other Award in consideration for the grant of the new Award. Notwithstanding anything in the Plan to the contrary, Options granted in substitution or exchange for an option in a corporate transaction
shall be granted in accordance with the rules of Treasury Regulations section 1.424-1. In addition, Awards may be granted in lieu of cash compensation, including, but not limited to, in lieu of cash amounts payable under other plans of the Company
or any Affiliate. 
 9.3 Term of Awards. The term or Restricted Period of each Award that is an Option, Stock Appreciation Right,
Restricted Stock Unit or Restricted Stock shall be for such period as may be determined by the Plan Committee; provided that in no event shall the term of any such Award exceed a period of ten years (or such shorter terms as may be
require in respect of an Incentive Stock Option under Section 422 of the Code). 
 9.4 Form and Timing of Payment under Awards;
Deferrals. Subject to the terms of the Plan and any applicable Award agreement, payments to be made by the Company or an Affiliate upon the exercise of an Option or other Award or settlement of an Award may be made in a single payment or
transfer, in installments or on a deferred basis. The settlement of any Award may be subject to any limitations or contingent upon the occurrence of one or more specified events as set forth in the related Award agreement. In the discretion of the
Plan Committee, Awards granted pursuant to Article V or VII hereof may be payable in cash or shares to the extent permitted by the terms of the applicable Award agreement. Installment or deferred payments may be required by the Plan Committee
(subject to the consent of the Participant in the case of any deferral of an outstanding Award not provided for in the original Award agreement) or permitted at the election of the Participant on terms and conditions established by the Plan
Committee; provided, however, that no deferral shall be required or permitted by the Plan Committee if such deferral would result in adverse tax consequences to the Participant under Section 409A of the Code.
Payments may include, without limitation, provisions for the payment or crediting of reasonable interest on installment or deferred payments or the grant or crediting of amounts in respect of installment or deferred payments denominated in shares.
Any deferral shall only be allowed as is provided in a separate deferred compensation plan adopted by 
  

 -17- 

 
the Company, which plan shall be compliant with Section 409A of the Code. The Plan shall not constitute an “employee benefit plan” for
purposes of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended. 
 9.5 Vested and Unvested Awards.
After the satisfaction of all of the terms and conditions set by the Plan Committee with respect to an Award of (i) Restricted Stock, a certificate, without the legend set forth in Section 6.2(c) hereof, for the number of shares that are
no longer subject to such restrictions, terms and conditions shall be delivered to the Employee, (ii) Restricted Stock Unit, to the extent not paid in cash, a certificate for the number of shares equal to the number of shares of Restricted
Stock Unit earned, and (iii) Stock Appreciation Rights or Performance Awards, cash and/or a certificate for the number of shares equal in value to the number of Stock Appreciation Rights or amount of Performance Awards vested shall be delivered
to the person. Upon termination, resignation or removal of a Participant under circumstances that do not cause such Participant to become fully vested, any remaining unvested Options, shares of Restricted Stock, Restricted Stock Unit, Stock
Appreciation Rights or Performance Awards, as the case may be, shall either be forfeited back to the Company or, if appropriate under the terms of the Award, shall continue to be subject to the restrictions, terms and conditions set by the Plan
Committee with respect to such Award. 
 9.6 Exemptions from Section 16(b) Liability. It is the intent of the Company that the
grant of any Awards to or other transaction by a Participant who is subject to Section 16 of the Exchange Act shall be exempt from Section 16(b) of the Exchange Act pursuant to an applicable exemption (except for transactions acknowledged
by the Participant in writing to be non-exempt). Accordingly, if any provision of this Plan or any Award agreement does not comply with the requirements of Rule 16b-3 under the Exchange Act as then applicable to any such transaction, such provision
shall be construed or deemed amended to the extent necessary to conform to the applicable requirements of Rule 16b-3 so that such Participant shall avoid liability under Section 16(b). 
 9.7 Adjustment of Awards. In the event that at any time after the issuance of an Award, the outstanding Shares are changed into or exchanged for a
different number or kind of shares or other securities of the Company by reason of a merger, consolidation, recapitalization, reclassification, stock split, stock dividend, extraordinary dividend, combination of shares or the like, the aggregate
number and class of securities available under the Plan and issued pursuant to any outstanding Awards shall be equitably adjusted by the Committee. Upon the occurrence of any of the events described in the immediately preceding sentence, and subject
to any required action of the Board and the stockholders, in order to ensure that after such event the Shares subject to the Plan and each Participant’s proportionate interest shall be maintained substantially as before the occurrence of such
event, the Committee shall, in such manner as it may deem equitable, adjust (i) the number and type of shares of common stock of the Company or any Affiliate with respect to which Awards may be granted under the Plan, (ii) the maximum
number of shares that may be covered by Awards granted under the Plan during any period, (iii) the maximum number of shares that may be covered by Awards to any single individual during any calendar year, (iv) the number of shares subject
to outstanding Awards, and (v) the grant or exercise price with respect to an Award. In the event of a consolidation or merger in which the Company is not the surviving corporation or in the event of any transaction that results in the
acquisition of substantially all of the Company’s outstanding Common Stock by a single person 

  

 -18- 

 
or entity or by a group of persons and/or entities acting in concert, or in the event of the sale or other transfer of substantially all of the
Company’s assets (all the foregoing being referred to as “Acquisition Events”) , then the Plan Committee may in its discretion terminate all outstanding Options and Stock Appreciation Rights by delivering 20-days notice of termination
to each holder of such Award; provided, however, that, during the 20-day period following the date on which such notice of termination is delivered, each such holder shall have the right to exercise in full all of his Options or Stock Appreciation
Rights then outstanding. If an Acquisition Event occurs and the Plan Administrator does not terminate the outstanding options pursuant to the preceding sentence, then the Option or Stock Appreciation Rights shall be adjusted as set forth above. Such
adjustment in an outstanding Option shall be made (i) without change in the total price applicable to the Option or any unexercised portion of the Option (except for any change in the aggregate price resulting from rounding-off of share
quantities or prices) and (ii) with any necessary corresponding adjustment in exercise price per share; provided, however, the Committee shall not take any action otherwise authorized under this Section to the extent that (i) such
action would cause (A) the application of Section 162(m) or 409A of the Code to the Award or (B) create adverse tax consequences under Section 162(m) or 409A of the Code should either or both of those Code sections apply to the
Award or (ii) materially reduce the benefit to the Participant without the consent of the Participant. The Committee’s determinations shall be final, binding and conclusive with respect to the Company and all other interested persons.

 9.8 Other Provisions. No grant of any Award shall be construed as limiting any right which the Company or any Affiliate may have to
terminate at any time, with or without cause, the Employment of any person to whom such Award has been granted. 
 ARTICLE X

 WITHHOLDING FOR TAXES 
 Any issuance of Common Stock pursuant to the exercise of an Option or payment of any other Award under the Plan shall not be made until appropriate arrangements, satisfactory to the Company, have been made for the payment of any tax amounts
(federal, state, local or other) that may be required to be withheld or paid by the Company with respect thereto. Such arrangements may, at the discretion of the Plan Committee, include allowing the person to tender to the Company shares of Common
Stock owned by the person, or to request the Company to withhold shares of Common Stock being acquired pursuant to the Award, whether through the exercise of an Option or as a distribution pursuant to the Award, which have an aggregate FMV Per Share
as of the date of such withholding that is not greater than the sum of all tax amounts to be withheld with respect thereto, together with payment of any remaining portion of such tax amounts in cash or by check payable and acceptable to the Company.

 Notwithstanding the foregoing, if on the date of an event giving rise to a tax withholding obligation on the part of the Company the
person is an officer or individual subject to Rule 16b-3 under the Exchange Act, such person may direct that such tax withholding be effectuated by the Company withholding the necessary number of shares of Common Stock (at the tax rate required by
the Code) from such Award payment or exercise. 
  

 -19- 

 ARTICLE XI 
 MISCELLANEOUS 
 11.1 No Rights to Awards. No Participant or other person shall have any claim
to be granted any Award, there is no obligation for uniformity of treatment of Participants, or holders or beneficiaries of Awards and the terms and conditions of Awards need not be the same with respect to each recipient. 
 11.2 No Right to Employment. The grant of an Award shall not be construed as giving a Participant the right to be retained in the employ of the
Company or any Affiliate. Further, the Company or any Affiliate may at any time dismiss a Participant from Employment, free from any liability or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award agreement.

 11.3 Governing Law/Compliance with State Law. The validity, construction and effect of the Plan and any rules and regulations
relating to the Plan shall be determined in accordance with applicable federal law and the laws of the State of Delaware, without regard to any principles of conflicts of law. Notwithstanding the foregoing, all Awards issued under the Plan shall
comply with the applicable laws of any state in which the Participant receiving such Award resides. By way of example, and not in limitation of the foregoing, to the extent required by California law, the Plan Committee may not impose a vesting
schedule upon any Option grant to any resident of California that is more restrictive than 20% per year with the initial vesting to occur not later than one year after the option grant date. However, such limitation shall not be applicable to
any option grants made to individuals who are officers of the Company, non-employee members of the Board or independent contractors. 
 11.4 Severability. If any provision of the Plan or any Award is or becomes or is deemed to be invalid, illegal or unenforceable in any jurisdiction or as to any Participant or Award, or would disqualify the Plan or any Award under
any law deemed applicable by the Plan Committee, such provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot be construed or deemed amended without, in the determination of the Plan Committee, materially
altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, Participant or Award and the remainder of the Plan and any such Award shall remain in full force and effect. 
 11.5 Other Laws. The Plan Committee may refuse to issue or transfer any shares or other consideration under an Award agreement if, acting in its
sole discretion, it determines that the issuance or transfer of such shares or such other consideration might violate any applicable law. 
 11.6 409A Compliance - No Guarantee of Tax Consequences. It is the intention of the Company that all Awards granted by the Plan Committee be in compliance with Section 409A of the Code in all respects and the Plan shall be so
construed; provided, however that the Participant shall be solely responsible for and liable for any tax consequences (including but not limited to any interest or penalties) as a result of participation in the Plan.
Neither the Board, nor the Company nor the Plan Committee makes any commitment or guarantee that any federal, state or local tax treatment will apply or be available to any person participating or eligible to 
  

 -20- 

 
participate hereunder and assumes no liability whatsoever for the tax consequences to the Participants. Notwithstanding anything herein to the contrary, if
any amounts payable hereunder are reasonably determined by the Plan Committee to be “nonqualified deferred compensation” payable to a “specified employee” upon “separation from service” (within the meaning of section
409A of the Code) then such amounts that would otherwise be payable upon separation from service shall be held and not be paid by the Company upon separation from service, but shall be paid as soon as administratively feasible following the earlier
of: (1) the first day that is six months following the Participant’s separation from service; or (2) Participant’s date of death. Such amounts that would otherwise be payable in installments commencing on separation from service
shall be accumulated and paid in a lump sum on the date that is the earlier of (1) or (2) above and shall be paid in installments thereafter. 
 11.7 Shareholder Agreements. The Plan Committee may condition the grant, exercise or payment of any Award upon such person entering into a stockholders’ agreement in such form as approved from time to time
by the Board. 
 *        *        * 
  

 -21-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]