Document:

PartnerRe Ltd 2003 Non-Employee Directors Stock Plan dated May 22, 3003

 EXHIBIT 10.26 
  
 PARTNERRE LTD. 2003 NON-EMPLOYEE DIRECTORS STOCK PLAN 
  
 Section 1. Purpose. 
  
 The PartnerRe Ltd. 2003 Non-Employee Directors Stock Plan is designed to enhance the ability of the Company to attract, retain and reward outside
directors of the Company with equitable and competitive compensation opportunities and to allow outside directors of the Company to share in the stock ownership of the Company. 
  
 Section 2. Definitions. 
  
 As used in the Plan, the following terms shall have the meanings set forth below: 
  
 (a) “Affiliate” shall mean (i) any entity that, directly or indirectly, is controlled by the Company and
(ii) any entity in which the Company has a significant equity interest, in either case as determined by the Committee. 
  
 (b) “Alternative Award” shall mean an Award granted pursuant to Section 10. 
  
 (c) “Award” shall mean any Option, award of Restricted Shares or Restricted Share Units, Alternative Award
or Other Share-Based Award granted under the Plan. 
  
 (d)
“Award Agreement” shall mean any written agreement, contract or other instrument or document evidencing any Award granted under the Plan, which may, but need not, be executed or acknowledged by a Participant. 
  
 (e) “Board” shall mean the board of directors of the
Company. 
  
 (f) “Change in Control” shall,
unless the Board otherwise directs by resolution adopted prior thereto, be deemed to occur if (i) any “person” (as that term is used in Sections 13 and 14(d)(2) of the Exchange Act), is or becomes the beneficial owner (as that term is used
in Section 13(d) of the Exchange Act), directly or indirectly, of 40% or more of the voting Shares, (ii) within any 24-month period, the persons who were directors of the Company immediately before the beginning of such period (the
“Incumbent Directors”) shall cease (for any reason other than death) to constitute at least a majority of the Board, provided that any director who was not a director as of the beginning of such period shall be deemed to be
an Incumbent Director if such director was elected to the Board by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors either actually or by prior operation of this
subsection 2(f)(ii), or (iii) the occurrence of a transaction requiring shareholder approval for the acquisition of the Company or any of its subsidiaries (together with the Company, the “Group”) by an entity other than a member of
the Group or any subsidiary of such member, through the purchase of assets, by merger or otherwise. 
  
 (g) “Code” shall mean the U.S. Internal Revenue Code of 1986, as amended from time to time. 
  
 (h) “Committee” means the Committee appointed by the Board
to administer the Plan. 
  
 (i) “Company” shall
mean PartnerRe Ltd., a Bermuda corporation together with any successor thereto. 
  
 (j) “Event” shall mean any of the corporate transactions or events described in Section 6(d). 
  
 (k) “Exchange Act” shall mean the U.S. Securities Exchange Act of 1934, as amended. 
  
 (l) “Exercise Price” shall mean the purchase price per Share
under the terms of an Option as determined pursuant to Section 7 of the Plan. 
  
 (m) “Expiration Date” shall mean the final date of the term of an Option, which shall be fixed by the Committee pursuant to Section 7(b) of the Plan. 
  
 (n) “Fair Market Value” with respect to a Share shall mean,
(i) if the Shares are listed on a national securities exchange, the mean between the highest and lowest sale prices reported as having occurred on the primary exchange which 

  

 
the Shares are listed and traded on the date prior to such date, or, if there is no such sale on that date, then on the last preceding date on which such a
sale was reported, or (ii) if the Shares are not listed on any national securities exchange but are quoted in the National Market System of the National Association of Securities Dealers Automated Quotation System on a last sale basis, the average
between the high bid price and low ask price reported on the date prior to such date, or, if there is no such sale on that date then on the last preceding date on which such a sale was reported. If the Shares are not quoted on NASDAQ-NMS or listed
on an exchange, or representative quotes are not otherwise available, the Fair Market Value shall mean the amount determined by the Board in good faith to be the fair market value per Share, on a fully diluted basis. 
  
 (o) “Option” shall mean the right to purchase Shares granted
under Section 7. 
  
 (p) “Other Share-Based
Award” shall mean any right granted under Section 9. 
  
 (q) “Outside Director” shall mean any director of the Company who is not an employee of the Company or any of its Affiliates. 
  
 (r) “Participant” shall mean an individual granted an Award under the Plan. 
  
 (s) “Person” shall mean an individual, corporation, partnership, limited partnership, syndicate, person
(including, without limitation, a “person” as defined in Section 13(d)(3) of the Exchange Act), trust, association or entity or government, political subdivision, agency or instrumentality of a government, but excluding any of the Company,
any Subsidiary or any employee benefit plan sponsored or maintained by the Company or any Subsidiary. 
  
 (t) “Plan” shall mean this PartnerRe Ltd. 2003 Non-Employee Directors Stock Plan, as may be amended from time to time. 
  
 (u) “Plan Year” shall mean, with respect to an Outside
Director, the period commencing at the time of election of directors at an annual meeting of shareholders of the Company (or the election of a class of directors if the Company then has a classified board), or such Outside Director’s initial
election or appointment to the Board if not at such an annual meeting of shareholders, and continuing until the close of business of the day preceding the next annual meeting of shareholders of the Company. 
  
 (v) “Policies” shall mean policies established from time to
time by the Board as set forth in Section 4. 
  
 (w)
“Restricted Share” shall mean any Share granted under Section 8. 
  
 (x) “Restricted Share Unit” shall mean a contractual right granted under Section 8 that is denominated in Shares, each of which represents a right to receive the value of a Share (or a percentage of
such value, which percentage may be higher than 100%) upon the terms and conditions set forth in the Plan and the applicable Award Agreement. 
  
 (y) “Retainer Fees” shall mean all retainer fees including, without limitation, meeting or chair fees, payable to an Outside Director in
his or her capacity as such for services to the Board. 
  
 (z)
“Securities Act” shall mean the U.S. Securities Act of 1933, as amended. 
  
 (aa) “Shares” shall mean common shares of the Company, $1.00 par value. 
  
 (bb) “Subsidiary” shall mean any corporation of which a majority of the outstanding voting shares or voting power is beneficially owned
directly or indirectly by the Company and otherwise as provided in Section 86 of the Companies Act 1981 of Bermuda. 
  
 Section 3. Eligibility.  
  
 All Outside Directors shall be eligible to receive Awards under the Plan. 
  
 Section 4. Outside Director Awards.  
  
 (a) Awards shall be granted to Outside Directors in accordance with Policies established from time to time by the Board
specifying (i) the classes of directors (if the Company then has a classified board) to be granted such Awards; (ii) the type or types of Awards to be granted to Participants under the Plan; (iii) the number of Shares to be covered by (or with
respect to 

  

 
which payments, rights, or other matters are to be calculated in connection with) Awards and (iv) the time(s) at which such Awards shall be granted.

  
 (b) All decisions of the Board and of the Committee shall be
final, conclusive and binding upon all parties, including the shareholders and the Participants. 
  
 Section 5. Administration.  
  
 (a) The Plan shall be administered by the Committee. All actions by the Committee shall be subject to and consistent with the Policies. The Committee may
issue rules and regulations for administration of the Plan. It shall meet at such times and places as it may determine. 
  
 (b) Subject to the terms of the Plan, Policies and applicable law, the Committee shall have full power and authority to: (i) determine the terms and
conditions of any Award; (ii) determine whether, to what extent, and under what circumstances Awards may be settled or exercised in cash, Shares, other securities, other Awards, or other property, or canceled, forfeited or suspended, and the method
or methods by which Awards may be settled, exercised, canceled, forfeited or suspended; (iii) determine whether, to what extent, and under what circumstances cash, Shares, other securities, other Awards, other property, and other amounts payable
with respect to an Award under the Plan shall be deferred either automatically or at the election of the holder thereof or of the Committee; (iv) interpret and administer the Plan and any instrument or agreement relating to, or Award made under, the
Plan; (v) establish, amend, suspend or waive such rules and regulations and appoint such agents as it shall deem appropriate for the proper administration of the Plan; (vi) determine whether and to what extent Awards should comply or continue to
comply with any requirement of statute or regulation; (vii) correct any defect or supply any omission or reconcile any inconsistency in the Plan in the manner and to the extent the Committee decides necessary or desirable; and (viii) make any other
determination and take any other action that the Committee deems necessary or desirable for the administration of the Plan. 
  
 Section 6. Shares Available for Awards. 
  
 (a) Subject to adjustment as provided below, the number of Shares available for issuance under the Plan shall be 1,000,000. 
  
 (b) If, after the effective date of the Plan, any Shares covered by an Award,
or to which such an Award relates, terminate, lapse or are forfeited or cancelled, then the Shares covered by such Award, or to which such Award relates, to the extent of any such forfeiture or termination, shall again be, or shall become, available
for issuance under the Plan. 
  
 (c) Any Shares delivered pursuant
to an Award may consist, in whole or in part, of newly issued Shares. 
  
 (d) In the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Shares, other securities, or other property), recapitalization, share split, reverse share split, reorganization,
merger, consolidation, split-up, spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate
transaction or event affects the Shares such that an adjustment is determined by the 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, then the
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) which thereafter may be made the subject of Awards, (ii) the number and type of Shares (or other
securities or property) subject to outstanding Awards, and (iii) the grant, purchase, or Exercise Price with respect to any Award or, if deemed appropriate, make provision for a cash payment to the holder of an outstanding Award; provided,
however, that the number of Shares subject to any Award denominated in Shares shall always be a whole number. 
  
 Section 7. Options.  
  
 Options granted under the Plan shall be, as determined by the Committee, non-qualified share options for U.S. federal income tax purposes (or other types
of Options in jurisdictions outside the United States), as evidenced by the related Award documents, and shall be subject to the foregoing and the following terms and conditions and to such other terms and conditions, not inconsistent with the
provisions of the Plan and the Policies, as the Committee shall determine: 
  
 (a) Exercise Price. The Exercise Price per Share under an Option shall be determined by the Committee; provided, however, such Exercise Price shall not be less than the Fair Market Value of a Share on
the date of grant of such Option. 
  
 (b) Term. The term of
each Option shall be fixed by the Committee; in no event, however, shall the period for exercising an Option extend more than 10 years from the date of grant. 
  

 (c) Payment for Shares. Payment for Shares acquired pursuant to Options granted hereunder shall be
made in full, upon exercise of the Options (i) in immediately available funds in United States dollars, by wire transfer, certified or bank cashier’s check; (ii) by surrender to the Company of Shares that have either been (A) held by the
Participant for at least six-months, or (B) acquired from a person other than the Company, and have a Fair Market Value equal to such aggregate Exercise Price; (iii) by delivering to the Company a copy of irrevocable instructions to a stockbroker to
deliver promptly to the Company an amount of sale or loan proceeds sufficient to pay the aggregate Exercise Price; (iv) by any combination of (i), (ii), or (iii) above; or (v) by any other means approved by the Committee. 
  
 Section 8. Restricted Shares and Restricted Share Units.  

 
 (a) The Committee is hereby authorized to grant, or to provide for the
automatic grant of, Awards of Restricted Shares and Restricted Share Units pursuant to the Policies to Participants. 
  
 (b) Restricted Shares and Restricted Share Units shall be subject to such restrictions as the Committee may impose (including, without limitation, any
limitation on the right to vote a Restricted Share or the right to receive any dividend or other right or property), which restrictions may lapse, be lifted or waived separately or in combination at such time or times, in such installments or
otherwise, as the Committee may deem appropriate. 
  
 (c) Any
Restricted Share granted under the Plan may be evidenced in such manner as the Committee may deem appropriate including, without limitation, book-entry registration or issuance of a share certificate or certificates. In the event any share
certificate is issued in respect of Restricted Shares granted under the Plan, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions, and restrictions applicable to
such Restricted Shares. During the applicable restricted period, such certificates shall remain in the custody of the Company or its agent. 
  
 (d) Except as otherwise determined by the Committee pursuant to the Policies whether in an Award Agreement or otherwise, upon termination of a
Participant’s service (as determined under criteria established by the Committee) for any reason during the applicable restriction period, all Restricted Shares and all Restricted Share Units still, in either case, subject to restriction shall
be forfeited. 
  
 Section 9. Other Share-Based Awards.

  
 The Committee is hereby authorized to grant, or to provide for
the automatic grant of, such other Awards (including, without limitation, stock appreciation rights and rights to dividends and dividend equivalents) that are denominated or payable in, valued in whole or in part by reference to, or otherwise based
on or related to, Shares (including, without limitation, securities convertible into Shares) as are deemed by the Committee to be consistent with the purposes of the Plan and the Policies. Subject to the terms of the Plan and the Policies, the
Committee shall determine the terms and conditions of such Awards. Shares or other securities delivered pursuant to a purchase right granted under this Section 9 shall be purchased for such consideration, which may be paid by such method or methods
and in such form or forms, including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, as the Committee shall determine, the value of which consideration, as established by the
Committee, shall, not be less than the Fair Market Value of such Shares or other securities as of the date such purchase right is granted. 
  
 Section 10. Receipt of Alternative Awards in Lieu of Retainer Fees.  
  
 If and to the extent provided by the Policies, a Participant may elect to receive up to 100% of his or her Retainer Fees in
Alternative Awards which may be Shares, Restricted Share Units, Options or other Awards, subject to such terms and conditions as the Committee shall determine. 
  

Section 11. General Provisions Applicable to Awards.  
  

(a) Awards shall be granted for no cash consideration or for such minimal consideration as may be required by applicable law. 
  
 (b) Awards may be granted either alone or in addition to or in tandem with
any other Award or any award granted under any other plan of the Company. Awards granted in addition to or in tandem with other Awards, or in addition to or in tandem with awards granted under any other plan of the Company, may be granted either at
the same time as or at a different time from the grant of such other Awards or awards. 
  

 (c) Subject to the terms of the Plan and the Policies, payments or transfers to be made by the Company
upon the grant, exercise or payment of an Award may be made in such form or forms as the Committee shall determine including, without limitation, cash, Shares, other securities, other Awards, or other property, or any combination thereof, and may be
made in a single payment or transfer, in installments, or on a deferred basis, in each case in accordance with rules and procedures established by the Committee. Such rules and procedures may include, without limitation, provisions for the payment
or crediting of reasonable interest on installment or deferred payments or the grant or crediting of dividend equivalents in respect of installment or deferred payments. 
  
 (d) No Award and no right under any such Award, shall be assignable, alienable, saleable or transferable by a Participant
otherwise than by will or by the laws of descent and distribution (or in the case of Awards that are forfeited or canceled, to the Company); provided, however, that, if so determined by the Committee, a Participant may, in the manner
established by the Committee, designate a beneficiary or beneficiaries to exercise the rights of the Participant, and to receive any property distributable, with respect to any Award upon the death of the Participant. Each Award, and each right
under any Award, shall be exercisable during the Participant’s lifetime only by the Participant or, if permissible under applicable law, by the Participant’s guardian or legal representative. No Award and no right under any such Award, may
be pledged, alienated, attached, or otherwise encumbered, and any purported pledge, alienation, attachment or encumbrance thereof shall be void and unenforceable against the Company. 
  
 (e) Notwithstanding Section 11(d) to the contrary, Awards may be transferred to one or more transferees during the lifetime
of the Participant, and may be exercised by such transferees in accordance with the terms of such Award, but only if and to the extent such transfers are permitted by the Committee, subject to any terms and conditions which the Committee may impose
thereon (including limitations the Committee may deem appropriate in order that offers and sales under the Plan will meet applicable requirements of registration forms under the Securities Act specified by the Securities and Exchange Commission). A
beneficiary, transferee, or other person claiming any rights under the Plan from or through any Participant shall be subject to all terms and conditions of the Plan and any Award document applicable to such Participant, except as otherwise
determined by the Committee, and to any additional terms and conditions deemed necessary or appropriate by the Committee. 
  
 (f) All certificates for Shares or other securities delivered under the Plan pursuant to any Award or the exercise thereof shall be subject to such stop
transfer orders and other restrictions as the Committee may deem advisable under the Plan or the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which such Shares or other securities are
then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions. 
  
 (g) Except to the extent specifically provided to the contrary in any Award
Agreement and subject to Section 12(e), upon a Change in Control, all Awards shall become fully vested and exercisable, and any restrictions applicable to any Award shall automatically lapse. 
  
 Section 12. Amendment and Termination.  
  
 (a) Except to the extent prohibited by applicable law and unless otherwise
expressly provided in an Award Agreement or in the Plan, the Board may amend, alter, suspend, discontinue, or terminate the Plan or any portion thereof at any time; provided, however, that no such amendment, alteration, suspension,
discontinuation or termination shall be made without (i) shareholder approval if such approval is necessary to comply with any tax or regulatory requirement for which or with which the Board deems it necessary or desirable to qualify or comply or
(ii) the consent of the affected Participant, if such action would adversely affect the rights of such Participant under any outstanding Award. Notwithstanding anything to the contrary herein, the Committee may amend the Plan in such manner as may
be necessary to enable the Plan to achieve its stated purposes in any jurisdiction outside the United States in a tax-efficient manner and in compliance with local rules and regulations. 
  
 (b) The Committee may waive any conditions or rights under, amend any terms of, or amend, alter, suspend, discontinue or
terminate, any Award theretofore granted, prospectively or retroactively, without the consent of any relevant Participant or holder or beneficiary of an Award, provided, however, that no such action shall impair the rights of any affected
Participant or holder or beneficiary under any Award theretofore granted under the Plan; and provided further that, except as provided in Section 6(d), no such action shall reduce the exercise price of any Option established at the time of
grant thereof. 
  
 (c) The Committee may, in its sole discretion,
amend, or otherwise modify, without Board or shareholder approval, the terms of the Plan or Awards; provided that such amendment or other modification shall not increase the total number of shares reserved for purposes of the Plan without the
approval of the shareholders of the Company. 
  
 (d) The Committee
shall be authorized to make adjustments in the terms and conditions of, and the criteria included in, Awards in recognition of unusual or nonrecurring events (including, without limitation, an Event affecting the Company, or 

  

 
the financial statements of the Company, or of changes in applicable laws, regulations or accounting principles), whenever the Committee determines that such
adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan. 
  
 (e) In connection with a Change in Control or an Event, the Committee may, in its discretion (i) cancel any or all outstanding Awards under the Plan in
consideration for payment to the holder of each such cancelled Award of an amount equal to the portion of the consideration that would have been payable to such holder pursuant to such transaction if such Award had been fully vested and exercisable,
and had been fully exercised, immediately prior to such transaction, less the exercise price if any that would have been payable therefor, or (ii) if the net amount referred to in clause (i) would be negative, cancel such Award for no consideration
or payment of any kind. Payment of any amount payable pursuant to the preceding sentence may be made in cash and/or securities or other property in the Committee’s discretion. 
  
 Section 13. Miscellaneous. 
  

(a) No Participant shall have any claim to be granted any Award under the Plan except as otherwise provided in Section 4, and there is no obligation
for uniformity of treatment of Participants or holders or beneficiaries of Awards under the Plan. The terms and conditions of Awards need not be the same with respect to each recipient. 
  
 (b) Nothing contained in the Plan shall prevent the Company from adopting or continuing in effect other or additional
compensation arrangements, and such arrangements may be either generally applicable or applicable only in specific cases. 
  
 (c) The grant of an Award shall not be construed as giving a Participant the right to be retained in the service of the Company. Further, the Board may at
any time terminate the services a Participant, free from any liability, or any claim under the Plan, unless otherwise expressly provided in the Plan or in any Award Agreement or in any other agreement binding the parties. 
  
 (d) 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 person or Award, or would disqualify the Plan or any Award under any law deemed applicable by the Committee, such provision shall be construed or deemed amended to conform to
applicable laws, or if it cannot be so construed or deemed amended without, in the determination of the Committee, materially altering the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction, person or Award,
and the remainder of the Plan and any such Award shall remain in full force and effect. 
  
 (e) Neither the Plan nor any Award shall create or be construed to create a trust or separate fund of any kind or a fiduciary relationship between the Company and a Participant or any other person. To the extent that
any person acquires a right to receive payments from the Company pursuant to an Award, such right shall be no greater than the right of any unsecured general creditor of the Company. 
  
 (f) No fractional Shares shall be issued or delivered pursuant to the Plan or any Award, and the Committee shall determine
whether cash, other securities or other property shall be paid or transferred in lieu of any fractional Shares, or whether such fractional Shares or any rights thereto shall be canceled, terminated or otherwise eliminated. 
  
 Section 14. Effective Date of Plan.  
  
 The Plan shall be effective as of the date of its approval by the
shareholders of the Company. 
  
 Section 16. Term of the Plan.
 
  
 No Award shall be granted under the Plan after the tenth
anniversary of the effective date. However, unless otherwise expressly provided in the Plan or in an applicable Award Agreement, any Award theretofore granted may extend beyond such date, and the authority of the Committee to amend, alter, adjust,
suspend, discontinue, or terminate any such Award, or to waive any conditions or rights under any such Award, and the authority of the Board to amend the Plan, shall extend beyond such date. 
  
 Section 18. Governing Law.  
  
 The Plan shall be governed by and construed in accordance with the laws of
Bermuda without regard to conflicts of laws.Escrow Agreement, dated December 10, 2003

 Exhibit 10.10 
  
 ESCROW AGREEMENT 
  
 This Escrow Agreement is entered into as of December 10, 2003, by and among Distributed Energy Systems Corp., a Delaware corporation (“Distributed
Energy”), Paul Koeppe and Philip Deutch (the “Indemnification Representatives”) and Webster Trust Company, N.A. (the “Escrow Agent”). 
  

WHEREAS, Distributed Energy and Northern Power Systems, Inc. (the “Company”) have entered into an Agreement and Plan of Contribution and
Merger dated May 22, 2003, (the “Merger Agreement”) by and among the Company, Distributed Energy, Proton Energy Systems, Inc. (“Proton”) and subsidiaries of Distributed Energy, pursuant to which PES-1 Merger Sub Inc. will be
merged (the “Merger”) into the Company, which, as the surviving corporation (the “Surviving Corporation”), will become a wholly-owned subsidiary of Distributed Energy; 
  
 WHEREAS, the Merger Agreement provides that an escrow fund will be established to secure the indemnification obligations of
the stockholders and optionholders of the Company receiving consideration pursuant to Section 2.1 of the Merger Agreement (collectively, the “Indemnifying Securityholders”) to Distributed Energy and Proton; and 
  
 WHEREAS, the parties hereto desire to establish the terms and conditions
pursuant to which such escrow fund will be established and maintained; 
  
 NOW, THEREFORE, the parties hereto hereby agree as follows: 
  
 1. Consent of Indemnifying Securityholders. The Indemnifying Securityholders have, either by virtue of the approval of the Merger Agreement or through the execution of an instrument to such effect, consented to: (a) the establishment
of this escrow to secure the Indemnifying Securityholders’ indemnification obligations under Article VII of the Merger Agreement in the manner set forth herein, (b) the appointment of the Indemnification Representatives as their representatives
for purposes of this Agreement and as attorneys-in-fact and agents for and on behalf of each Indemnifying Securityholder, and the taking by the Indemnification Representatives of any and all actions and the making of any decisions required or
permitted to be taken or made by them under this Agreement and (c) all of the other terms, conditions and limitations in this Agreement. 
  
 2. Escrow and Indemnification. 
  
 (a) Escrow Fund. Simultaneously with the execution of this Agreement, Distributed Energy shall deposit with the Escrow Agent (i) by
wire transfer or delivery of a check of Distributed Energy payable to the Escrow Agent, the sum of $2,854,581.80, (ii) a certificate for 210,601 shares of common stock of Distributed Energy and (iii) a Warrant representing warrants to purchase
412,237 shares of Distributed Energy Common Stock, such shares and Warrant to be issued in the name of Escrow Agent or its nominee, as determined pursuant to Section 2.4 of the Merger Agreement. The Escrow Agent hereby acknowledges receipt of such
sum, such stock certificate and such Warrants. Such sum, together with any further sums deposited by Distributed Energy pursuant to the final sentence of Section 2.1(c) of 

 the Merger Agreement and any interest earned thereon, are referred to herein as the “Escrow
Cash.” Such shares, together with any further shares deposited by Distributed Energy pursuant to the final sentence of Section 2.1(a) of the Merger Agreement are referred to herein as the “Escrow Shares.” Such Warrants are referred to
herein as the “Escrow Warrants.” The Escrow Cash, the Escrow Shares and Escrow Warrants are referred to herein as the “Escrow Fund.” The Escrow Fund shall be held as a trust fund and shall not be subject to any lien, attachment,
trustee process or any other judicial process of any creditor of any party hereto. The Escrow Cash shall be invested in accordance with Section 5. The Escrow Agent agrees to hold the Escrow Fund in an escrow account subject to the terms and
conditions of this Agreement. The Escrow Cash, Escrow Shares and Escrow Warrants shall be initially attributed to the Indemnifying Securityholders as set forth on Attachment A. Thereafter, such apportionment shall be adjusted upon any event
affecting the Escrow Fund, including without limitation the payment of interest on Escrow Cash, the sale of Escrow Shares upon the request of an Indemnifying Securityholder as provided below, the exercise of an Escrow Warrant as provided below or
payment of a claim on the Escrow Fund (although the Responsibility Percentages shall not be so adjusted). For example, if an Indemnifying Securityholder directs the Escrow Agent to sell Escrow Shares attributable to such Indemnifying Securityholder,
the Escrow Shares attributable to such Indemnifying Securityholder shall be reduced and the Escrow Cash attributable to such Indemnifying Securityholder shall be increased. At any time Escrow Shares are attributed to an Indemnifying Securityholder,
such Indemnifying Securityholder may cause the Escrow Agent to sell any or all of the Escrow Shares attributed to it as set forth on Attachment A hereto by notice of such election to the Escrow Agent. The proceeds from any such sale shall
become Escrow Cash attributable to such Indemnifying Securityholder. No such sale of Escrow Shares attributed to an Indemnifying Securityholder shall change the Responsibility Percentages set forth on Attachment A. At any time Escrow Warrants
are attributed to an Indemnifying Securityholder, such Indemnifying Securityholder may cause the Escrow Agent to exercise such Escrow Warrants by providing (i) notice of such election to the Escrow Agent, (ii) sufficient instructions in such notice
regarding the desired exercise for the Escrow Agent to complete the exercise, and (iii) if the exercise is not a cashless exercise, cash equal to the aggregate exercise price of the Warrants being exercised (which may be paid either to the Escrow
Agent for remittance to the Distributed Energy upon exercise of the Warrants or directly to the Distributed Energy, in which case the Distributed Energy shall provide prompt notice the Escrow Agent upon receipt of such cash). The shares of
Distributed Energy common stock acquired upon exercise of any such Escrow Warrant shall become Escrow Shares attributable to such Indemnifying Securityholder. No such exercise of Escrow Warrants attributed to an Indemnifying Securityholder shall
change the Responsibility Percentages set forth on Attachment A. 
  
 (b) Indemnification. The Indemnifying Securityholders have agreed in Article VII of the Merger Agreement, to indemnify and hold harmless Distributed Energy and Proton from and against specified Damages (as
defined in the Merger Agreement). The Escrow Fund shall be security for such indemnity obligations of the Indemnifying Securityholders, subject to the limitations, and in the manner provided, in this Agreement. 
  
 (c) Dividends, Etc. Any securities or property
(including without limitation cash) distributed as a dividend in respect of any of the Escrow Shares shall be issued in the name of each Indemnifying Securityholder and shall be delivered to each Indemnifying Securityholder at the address for such
Indemnifying Securityholder as set forth on Attachment A. Other than 
  

 -2- 

 the dividends described in the foregoing sentence, any securities or property (including without
limitation cash) distributed in respect of or in exchange for any of the Escrow Shares, whether by way of dividends of Distributed Energy Common Stock, stock splits or otherwise, or in connection with any merger, liquidation or consolidation of the
Distributed Energy, shall be issued in the name of the Escrow Agent or its nominee, and shall be delivered to the Escrow Agent, who shall hold such securities in the Escrow Account. Such securities shall be considered Escrow Shares for purposes
hereof. 
  
 (d) Voting of Shares. The
Indemnification Representatives shall have the right, in their sole discretion, on behalf of the Indemnifying Securityholders, to direct the Escrow Agent in writing as to the exercise of any voting rights pertaining to the Escrow Shares, and the
Escrow Agent shall comply with any such written instructions. In the absence of such instructions, the Escrow Agent shall not vote any of the Escrow Shares. The Indemnification Representatives shall have no obligation to solicit consents or proxies
from the Indemnifying Securityholders for purposes of any such vote. 
  
 (e) Transferability. The respective interests of the Indemnifying Securityholders in the Escrow Fund shall not be assignable or transferable, other than by operation of law or to an Indemnifying
Securityholder’s successors, heirs or personal representatives in the event any Indemnifying Securityholder is liquidated or dies, or to an Indemnifying Securityholder’s members, limited partners or equityholders in a distribution to them,
said transfer to be effectuated by such Indemnifying Securityholder or such Indemnifying Securityholder’s successor or personal representative by providing the Escrow Agent with such instruments of transfer and other documents as the Escrow
Agent may reasonably require. Notice of any such assignment or transfer by operation of law shall be given to the Escrow Agent and to Distributed Energy, and no such assignment or transfer shall be valid until such notice is given. 
  
 (f) Information. The Indemnification Representatives
shall have reasonable access to information about the Distributed Energy and its Subsidiaries and the reasonable assistance of the Company’s officers and employees and former officers and employees for the purposes of performing its duties and
exercising its rights hereunder and under the Merger Agreement, provided that the Indemnification Representatives shall treat confidentially and not disclose any nonpublic information from or about Distributed Energy or its Subsidiaries to anyone
(except on a need to know basis to individuals who agree to treat such information confidentially). 
  

 -3- 

 3. Disbursement of Escrow Fund. 
  
 (a) Disbursement by Escrow Agent. The Escrow Agent shall disburse the Escrow Fund only in accordance
with (i) a written instrument delivered to the Escrow Agent that is executed by both Distributed Energy and the Indemnification Representatives and that instructs the Escrow Agent as to the disbursement of some or all of the Escrow Fund, (ii) an
order of a court of competent jurisdiction or arbitrator pursuant to Section 7.3(e) of the Merger Agreement, a copy of which is delivered to the Escrow Agent by either Distributed Energy or the Indemnification Representatives, that instructs the
Escrow Agent as to the disbursement of some or all of the Escrow Fund, or (iii) the provisions of Section 3(b) and Section 9 hereof. 
  
 (b) Disbursement Following Termination Date. Within five (5) business days after December 10, 2004 (the “Initial Termination
Date”), the Escrow Agent shall distribute to each Indemnifying Securityholder an amount equal to 66-2/3% of the Value of the Escrow Shares and Escrow Cash and Escrow Warrants and attributable to such
Indemnifying Securityholder (with any Escrow Shares or Escrow Warrants to be valued at their Value), with respect to Indemnifying Securityholders to whom any combination of Escrow Shares, Escrow Warrants and Escrow Cash is attributable, pro rata
according to the Value of Escrow Shares and the Value of Escrow Warrants and the value of Escrow Cash attributable to such Indemnifying Securityholder with any Escrow Shares or Escrow Warrants so distributed to be registered in the name of the
applicable Indemnifying Securityholders. Within five (5) business days after December 10, 2005 (the “Final Termination Date”), the Escrow Agent shall distribute to the Indemnifying Securityholders the balance of the Escrow Fund then held
in escrow, with any Escrow Shares or Escrow Warrants so distributed to be registered in the name of the applicable Indemnifying Securityholders. Notwithstanding the foregoing, if Distributed Energy has previously delivered to the Escrow Agent a copy
of a Claim Notice (as defined in the Merger Agreement) and the Escrow Agent has not received written notice of the resolution of the claim covered thereby, or if Distributed Energy has previously delivered to the Escrow Agent a copy of an Expected
Claim Notice (as defined in the Merger Agreement) and the Escrow Agent has not received written notice of the resolution of the anticipated claim covered thereby, the Escrow Agent shall retain in escrow after the Initial Termination Date or Final
Termination Date, as the case may be, the amount of the Escrow Fund, or if less, an amount of Escrow Cash and a number of Escrow Shares and Escrow Warrants having a Value (as defined in Section 4 below) at such time equal to the Claimed Amount (as
defined in the Merger Agreement) covered by such Claim Notice or equal to the estimated amount of Damages set forth in such Expected Claim Notice, as the case may be. Any such amounts shall be retained in accordance with Section 3(c) hereof.

  
 (c) Allocation of Retentions and
Withdrawals Among Indemnifying Securityholders. Any amount retained in escrow as provided in Section 3(b) or withdrawn from escrow to satisfy any claim on the escrow fund shall be retained or withdrawn in accordance with this Section 3(c).

  
 (i) Amounts retained or withdrawn shall be
retained or withdrawn pro-rata in accordance with the respective Responsibility Percentage of each Indemnifying Securityholder as set forth on Attachment A from the Escrow Cash, Escrow Shares and Escrow Warrants attributable to each Indemnity
Securityholder, and with respect to each Indemnifying Securityholder to whom any combination of Escrow Shares, Escrow Cash and Escrow Warrants 
  

 -4- 

 is attributable, pro-rata according to the value of the Escrow Cash attributable to such Indemnifying
Securityholder at such time, the Value of the Escrow Shares attributable to such Indemnifying Securityholder at such time and the Value of the Escrow Warrants attributable to such Indemnifying Securityholder at such time. 
  
 (ii) If a retention or withdrawal according to Section
3(c)(i) exhausts the portion of the Escrow Fund attributable to any Indemnifying Securityholder, the retention or withdrawal shall be accomplished according to Section 3(c)(i) up until the point of such exhaustion, and then pro-rata among the
remaining Indemnifying Securityholders in accordance with the value of the Escrow Fund then attributable to each Indemnifying Securityholder (with any Escrow Shares or Escrow Warrants to be valued at their Value). 
  
 (d) Method of Disbursement. The Responsibility
Percentages set forth on Attachment A shall be appropriately revised by Distributed Energy and the Indemnification Representatives only in the event Distributed Energy deposits additional funds or shares with the Escrow Agent pursuant to the
final sentence of Section 2.1(c) of the Merger Agreement following the date of this Agreement. Distributions to the Indemnifying Securityholders shall be made by mailing checks and stock certificates to such holders at their respective addresses
shown on Attachment A (or such other address as may be provided in writing to the Escrow Agent by any such holder). No fractional Escrow Shares or Warrants to purchase a fraction of a Distributed Energy common share shall be distributed to
Indemnifying Securityholders pursuant to this Agreement. Instead, the number of shares or Warrants that each Indemnifying Securityholder shall receive shall be rounded up or down to the nearest whole number (provided that the Indemnification
Representatives shall have the authority to effect such rounding in such a manner that the total number of whole Escrow Shares and Escrow Warrants to be distributed equals the number of Escrow Shares and Escrow Warrants then being distributed).

  
 4. Valuation of Escrow Shares and Escrow Warrants. For
purposes of this Agreement, the “Value” of any Escrow Shares shall be the average of the last reported sale prices per share of the common stock of Distributed Energy on the NASDAQ National Market over the ten (10) consecutive trading days
ending two (2) trading days before (i) such Escrow Shares are distributed by the Escrow Agent to Distributed Energy as provided herein or (ii) the Value of the Escrow Shares is otherwise required to be calculated pursuant to the terms hereof
(subject to equitable adjustment in the event of any stock split, stock dividend, reverse stock split or similar event affecting the common stock of Distributed Energy since the beginning of such ten (10) day period), multiplied by the number of
such Escrow Shares, or if the common stock of Distributed Energy is not then traded on the NASDAQ National Market, such value as is reasonably determined in good faith between the Distributed Energy and the Indemnification Representatives. For
purposes of this Agreement, the “Value” of any Escrow Warrant shall be calculated in accordance with the Black-Scholes calculation spreadsheet provided to Parent by the Company prior to the date of the Merger Agreement and to the Escrow
Agent at the Effective Time, using the following assumptions: 
  

					
	 Risk Free Rate of Return:
	 	3%	 	 
	 Expiration Date of Warrant:
	 	Third Anniversary of the Closing Date	 	 
	 Expected Volatility:
	 	100%	 	 
	 Current Price:
	 	The Value of one Escrow Share.	 	 

  

 -5- 

 5. Investment of Escrow Fund. 
  
 (a) Permitted Investments. Escrow Cash shall be invested by the Escrow Agent, to the extent permitted
by law and as directed by the Indemnification Representatives, in (i) obligations issued or guaranteed by the United States of America or any agency or instrumentality thereof, (ii) obligations (including certificates of deposit and bankers’
acceptances) of domestic commercial banks which at the date of their last public reporting had total assets in excess of $500,000,000, (iii) commercial paper rated at least A-1 or P-1 or, if not rated, issued by companies having outstanding debt
rated at least AA or Aa and (iv) money market mutual funds invested exclusively in some or all of the securities described in the foregoing clauses (i), (ii) and (iii). Absent receipt of specific written investment instructions from the
Indemnification Representatives, the Escrow Agent shall have no obligation or duty to invest (or otherwise pay interest on) the Escrow Cash. The Escrow Agent shall have no liability for any investment losses, including without limitation any market
loss on any investment liquidated prior to maturity in order to make a payment required hereunder. Any investment earnings on Escrow Funds shall be allocated to the Indemnifying Securityholders based upon their holdings of the Escrow Cash to which
the earnings are attributable. 
  
 (b) Tax
Reporting. The parties hereto agree that, for tax reporting purposes, all interest or other income earned from the investment of the Escrow Cash or any portion thereof in any tax year (i) to the extent such interest or other income is
distributed by the Escrow Agent to any person or entity pursuant to the terms of this Agreement during such tax year, shall be reported as allocated to such person or entity, and (ii) otherwise shall be reported as allocated to the Indemnifying
Securityholders, based on investment earnings attributed to them in accordance with section 5(a). 
  
 (c) Certification of Tax Identification Number. The parties hereto agree to provide the Escrow Agent with a certified tax
identification number by signing and returning a Form W-9 (or Form W-8, in the case of non-U.S. persons) to the Escrow Agent prior to the date on which any income earned on the investment of the Escrow Cash is credited to such Escrow Fund. The
parties hereto understand that, in the event their tax identification numbers are not certified to the Escrow Agent, the Internal Revenue Code, as amended from time to time, may require withholding of a portion of any interest or other income earned
on the investment of the Escrow Cash. 
  
 6. Fees and
Expenses. Distributed Energy, on the one hand, and the Indemnifying Securityholders, on the other hand, shall each (a) pay one-half of the fees of the Escrow Agent for the services to be rendered by the Escrow Agent hereunder, which are set
forth on Attachment B hereto, and (b) reimburse the Escrow Agent for one-half of its reasonable expenses (including reasonable attorney’s fees and expenses) incurred in connection with the performance of its duties under this Agreement.

  
 7. Limitation of Escrow Agent’s Liability.

  
 (a) Limitation on Liability. The Escrow
Agent shall incur no liability with respect to any action taken or suffered by it in reliance upon any notice, direction, instruction, consent, statement or other documents believed by it to be genuine and duly authorized, nor for 
  

 -6- 

 other action or inaction, except its own willful misconduct or gross negligence. The Escrow Agent shall
not be responsible for the validity or sufficiency of this Agreement or any other agreement referred to herein. In all questions arising under the Escrow Agreement, the Escrow Agent may rely on the advice of counsel, and the Escrow Agent shall not
be liable to anyone for anything done, omitted or suffered in good faith by the Escrow Agent based on such advice. The Escrow Agent shall not be required to take any action hereunder involving any expense unless the payment of such expense is made
or provided for in a manner reasonably satisfactory to it. In no event shall the Escrow Agent be liable for indirect, punitive, special or consequential damages. 
  
 (b) Indemnification. Distributed Energy and the Indemnifying Securityholders agree to indemnify the
Escrow Agent for, and hold it harmless against, any loss, liability or expense incurred without gross negligence or willful misconduct on the part of Escrow Agent, arising out of or in connection with its carrying out of its duties hereunder.
Distributed Energy, on the one hand, and the Indemnifying Securityholders, on the other hand, shall each be liable for one-half of such amounts, provided that the liability of the Indemnifying Securityholders pursuant to this Section 7(b) shall not
exceed the Escrow Fund at the time of payment of such Indemnification, and the Distributed Energy will provide any further required indemnification of the Escrow Agent pursuant to this Section 7(b) once the Escrow Fund has been exhausted.

  
 8. Liability and Authority of Indemnification
Representatives; Successors and Assignees. 
  
 (a) Limitation on Liability. The Indemnification Representatives shall incur no liability to the Indemnifying Securityholders with respect to any action taken or suffered by them in reliance upon any note, direction, instruction,
consent, statement or other documents believed by them to be duly authorized, nor for other action or inaction except their own willful misconduct or gross negligence. The Indemnification Representatives may, in all questions arising under the
Escrow Agreement, rely on the advice of counsel and the Indemnification Representatives shall not be liable to the Indemnifying Securityholders for anything done, omitted or suffered in good faith by the Indemnification Representatives based on such
advice. 
  
 (b) Successor Indemnification
Representatives. In the event of the death or permanent disability of any Indemnification Representative, or his or her resignation as an Indemnification Representative, a successor Indemnification Representative shall be appointed by the other
Indemnification Representative or, absent its appointment, a successor Indemnification Representative shall be elected by a majority vote of the Indemnifying Securityholders, with each such Indemnifying Securityholder (or his, her or its successors
or assigns) to be given a vote equal to the Responsibility Percentages set forth on Attachment A with respect to such Indemnifying Securityholder, multiplied times 100. Each successor Indemnification Representative shall have all of the
power, authority, rights and privileges conferred by this Agreement upon the original Indemnification Representatives, and the term “Indemnification Representatives” as used herein and in the Merger Agreement shall be deemed to include
successor Indemnification Representatives. 
  

 -7- 

 (c) Power and Authority. The Indemnification Representatives, acting jointly but
not singly, shall have full power and authority to represent the Indemnifying Securityholders, and their successors, with respect to all matters arising under this Agreement and all actions taken by any Indemnification Representative hereunder shall
be binding upon the Indemnifying Securityholders, and their successors, as if expressly confirmed and ratified in writing by each of them. Without limiting the generality of the foregoing, the Indemnification Representatives, acting jointly shall
have full power and authority to interpret all of the terms and provisions of this Agreement, to compromise any claims asserted hereunder and to authorize payments to be made with respect thereto, on behalf of the Indemnifying Securityholders and
their successors. All actions to be taken by the Indemnification Representatives hereunder shall be evidenced by, and taken upon, the written direction of a majority thereof. 
  
 (d) Reliance by Escrow Agent. The Escrow Agent may rely on the Indemnification Representatives as the
exclusive agents of the Indemnifying Securityholders under this Agreement and shall incur no liability to any party with respect to any action taken or suffered by it in reliance thereon. 
  
 (e) Indemnification. The Indemnifying Securityholders
shall severally indemnify the Indemnification Representatives and hold them harmless from any loss, liability or expense (including expense of counsel) incurred without gross negligence or bad faith on the part of the Indemnification Representatives
and arising out of or in connection with the acceptance or administration of their duties hereunder or under the Merger Agreement. The Indemnification Representatives shall deliver a claim therefor to the Escrow Agent and shall be entitled to a
distribution from the Escrow Fund (in accordance with the distribution provisions of Section 9 hereof) equal to any such indemnity claim prior and in preference to any distribution of the Escrow Fund to satisfy claims of Distributed Energy against
the Escrow Fund. 
  
 9. Amounts Payable by Indemnifying
Securityholders. The amounts payable by the Indemnifying Securityholders under this Agreement (i.e., the fees of the Escrow Agent payable pursuant to Section 6 and the indemnification obligations pursuant to Sections 7(b) and 8(e)) shall be
payable solely as follows. With respect to amounts due to the Escrow Agent pursuant to Section 6 hereof, the Distributed Energy shall pay the Escrow Agent the full amount of such obligation in cash, then make a claim against the Escrow Fund equal to
the one-half of such obligation owed by the Indemnifying Securityholders pursuant to Section 6. The Escrow Agent shall notify the Indemnification Representatives of any such amount payable by the Indemnifying Securityholders as soon as it becomes
aware that any such amount is payable, with a copy of such notice to Distributed Energy. On the sixth business day after the delivery of such notice, the Escrow Agent shall disburse such amount from the Escrow Fund in accordance with the
distribution provisions of Section 3(c) and 3(d) hereof, provided that if Distributed Energy or the Indemnification Representatives deliver to the Escrow Agent (with a copy to the Indemnification Representatives or the Distributed Energy, as
applicable), within five business days after delivery of such notice by the Escrow Agent, a written notice contesting the legitimacy or reasonableness of such amount, then the Escrow Agent shall not disburse the disputed portion of such claimed
amount except in accordance with the terms of clauses (i) or (ii) of Section 3(a) hereof. If the recipient of an amount payable by the Indemnifying Securityholders under this Agreement will not accept Escrow Shares and/or Escrow Warrants as payment
(other than Distributed Energy who must accept Escrow Shares and/or Escrow Warrants as payment), the 
  

 -8- 

 Escrow Agent shall liquidate sufficient Escrow Shares so that the net proceeds thereof may be paid in satisfaction of the
portion of such obligation required to be satisfied by Escrow Shares and shall exercise sufficient Escrow Warrants (on a cashless basis) and liquidate the shares received upon exercise so that the net proceeds thereof may be paid in satisfaction of
the portion of such obligation required to be satisfied by Escrow Warrants. If a cashless exercise of Escrow Warrants may not be accomplished at such time (e.g. because the exercise price of the Escrow Warrants exceeds the per-share value of
Distributed Energy common stock) or does not provide sufficient cash to satisfy the portion of the obligation required to be satisfied by the Escrow Warrants (e.g. because the per-share value of Distributed Energy common stock exceeds the exercise
price of the Escrow Warrants only by a small amount), then the portion of such obligation required to be satisfied by Escrow Warrants but which may not be satisfied through the cashless exercise mechanism described above shall instead be satisfied
by Escrow Cash and Escrow Shares, pro rata in proportion to the portion of the obligation originally required to be satisfied by Escrow Cash and Escrow Shares and from each Indemnifying Securityholder pro rata in proportion to the amounts of Escrow
Cash and Escrow Shares originally required to be paid by each Indemnifying Securityholder to satisfy such obligation. In such event, a number of Escrow Warrants with a Value equal to the value of the Escrow Cash and Value of Escrow Shares
distributed in lieu thereof shall be reallocated from the Indemnifying Securityholders to which such Escrow Warrants are attributable (on the basis of respective Responsibility Percentages) to the Indemnifying Securityholders which satisfied the
cash obligation of the holders of the Escrow Warrants on the basis of the amount of Escrow Cash and Escrow Shares each paid by such Indemnifying Securityholder to satisfy the cash payment obligation of the Escrow Warrants. The Indemnification
Representatives may make such further re-allocations and provide such further instructions to the Escrow Agent regarding distributions if the recipient thereof will not accept Escrow Shares and Escrow Warrants as consideration as the Indemnification
Representatives determine in their sole discretion are fair and equitable, not inconsistent with the principles set forth in this Section 9. 
  
 10. Termination. This Agreement shall terminate upon the disbursement by the Escrow Agent of all of the Escrow Fund in accordance with this
Agreement; provided that the provisions of Sections 7 and 8 shall survive such termination. 
  
 11. Successor Escrow Agent. In the event the Escrow Agent becomes unavailable or unwilling to continue in its capacity herewith, the Escrow Agent may resign and be discharged from its duties or obligations
hereunder by delivering a resignation to the parties to this Escrow Agreement, not less than 60 days prior to the date when such resignation shall take effect. Distributed Energy may appoint a successor Escrow Agent without the consent of the
Indemnification Representatives so long as such successor is a bank with assets of at least $500,000,000, and may appoint any other successor Escrow Agent with the consent of the Indemnification Representatives, which shall not be unreasonably
withheld. If, within such notice period, Distributed Energy provides to the Escrow Agent written instructions with respect to the appointment of a successor Escrow Agent and directions for the transfer of the Escrow Fund then held by the Escrow
Agent to such successor, the Escrow Agent shall act in accordance with such instructions and promptly transfer such Escrow Fund to such designated successor. If no successor Escrow Agent is named as provided in this Section 11 prior to the date on
which the resignation of the Escrow Agent is to properly take effect, the Escrow Agent may apply to a court of competent jurisdiction for appointment of a successor Escrow Agent. 
  

 -9- 

 12. General. 
  
 (a) Entire Agreement. Except for those provisions of the Merger Agreement referenced herein or
related hereto, this Agreement constitutes the entire agreement among the parties and supersedes any prior understandings, agreements or representations by or among the parties, written or oral, with respect to the subject matter hereof. 

 
 (b) Succession and Assignment. This Agreement
shall be binding upon and inure to the benefit of the parties named herein and their respective successors and permitted assigns. 
  
 (c) Counterparts and Facsimile Signature. This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same instrument. This Agreement may be executed by facsimile signature. 
  
 (d) Headings. The section headings contained in this Agreement are inserted for convenience only and shall not affect in any way
the meaning or interpretation of this Agreement. 
  
 (e) Notices. All notices, requests, demands, claims, and other communications hereunder shall be in writing. Any notice, request, demand, claim or other communication hereunder shall be deemed duly delivered four Business Days after
it is sent by registered or certified mail, return receipt requested, postage prepaid, one Business Day after it is sent for next business day delivery via a reputable nationwide overnight courier service, or upon receipt of confirmation of good
transmission in the case of facsimile transmission, in each case to the intended recipient as set forth below: 
  

			
	 If to Distributed Energy:
	  	 10 Technology Drive
 Wallingford, Connecticut
06492
 Fax: (203) 949-8016

		
	 If to Indemnification Representatives:
	  	 Paul Koeppe
 2825 Brewery Road
 Cross Plains, Wisconsin 53528
  
 Philip Deutch
 Perseus, L.L.C.
 2099 Pennsylvania Avenue, N.W.
 9th Floor
 Washington, DC 20006

		
	 With a copy to:
	  	 David A. Fine
 Ropes & Gray
 One International Place
 Boston, Massachusetts 02110
 Fax: (617) 951-7050

  

 -10- 

			
	 If to Escrow Agent:
	 	 Webster Trust Company, N.A.
 Webster Plaza WFD
730
 Waterbury, Connecticut 06702

  
 Any Party may give any notice,
instruction or other communication hereunder using any other means (including personal delivery, expedited courier, messenger service, telex, ordinary mail or electronic mail), but no such notice, instruction or other communication shall be deemed
to have been duly given unless and until it actually is received by the Party for whom it is intended. Any Party may change the address to which notices, instructions or other communications hereunder are to be delivered by giving the other Parties
notice in the manner herein set forth in this Section. 
  
 (f) Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Connecticut without giving effect to any choice or conflict of law provision or rule (whether of the State of
Connecticut or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Connecticut. Any disputes arising out of or related to this Agreement shall be submitted to binding arbitration as
provided in Sections 7.3(d) and 7.3(e) of the Merger Agreement. 
  
 (g) Amendments and Waivers. This Agreement may be amended only with the written consent of Distributed Energy, the Escrow Agent and both of the Indemnification Representatives. No waiver of any right or remedy
hereunder shall be valid unless the same shall be in writing and signed by the party giving such waiver. No waiver by any party with respect to any condition, default or breach of covenant hereunder shall be deemed to extend to any prior or
subsequent condition, default or breach of covenant hereunder or affect in any way any rights arising by virtue of any prior or subsequent such occurrence. 
  
 (h) Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE WAIVED, THE PARTIES HEREBY WAIVE, AND
COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF, DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION ARISING IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER NOW
EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG
THE PARTIES IRREVOCABLY TO WAIVE ITS RIGHT TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS WILL INSTEAD BE TRIED IN A COURT OF COMPETENT JURISDICTION BY A JUDGE SITTING
WITHOUT A JURY. 
  
 (i) Defined Terms.
Capitalized terms used but not defined herein shall have the respective meanings given to such terms in the Merger Agreement. 
  

 -11- 

 IN WITNESS WHEREOF, the Parties have duly executed this Agreement as of the day and year first above
written. 
  

			
	DISTRIBUTED ENERGY SYSTEMS CORP.
		
	By	 	 /s/    Walter W. Schroeder        

	 	 	

	 	 	 Walter W. Schroeder
 President

	
	 /s/    Philip Deutch 

	

	Philip Deutch
	
	 /s/    Paul Koeppe

	

	Paul Koeppe
	
	 WEBSTER TRUST COMPANY, N.A.

		
	By:	 	 /s/    Christopher H. Rand        

	 	 	

	 	 	 Name: Christopher H. Rand
 Title:   Vice
President
  

  

 -12- 

 Attachment A 
  

															
	 Indemnifying
 Securityholder

	  	Cash

	  	Shares

	  	Warrants

	  	 Share
 Value

	  	 Warrant
 Value

	  	 Total
 Value

	  	 Responsibility
 Percentage

  

 Attachment B 
  
 The fees of the Escrow Agent, Webster Trust Company, N.A., for the services to be rendered under the Escrow Agreement
consist of a $2,500 fee, payable annually in advance.

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