Document:

Exhibit 10.18

 

RESTRICTED
STOCK UNIT AGREEMENT

 

ENERNOC,
INC.

 

This Restricted Stock
Unit Agreement is made as of the
                day of
                                      ,
20     (the “Grant Date”), by and between EnerNOC, Inc.,
a Delaware corporation having
its principal place of business at 75 Federal Street, Suite 300, Boston,
Massachusetts 02110 (the “Company”), and                                                 
(the “Participant”).

 

WHEREAS, the Company has
adopted the 2007 Employee, Director and Consultant Stock Plan (the “Plan”) to
promote the interests of the Company by providing an incentive for employees,
directors and consultants of the Company or its Affiliates;

 

WHEREAS, pursuant to the
provisions of the Plan, the Company desires to grant to the Participant
restricted stock units (“RSUs”) related to the Company’s common stock, $.001 par value per share (“Common
Stock”), in accordance with the provisions of the Plan, all on the terms and
conditions hereinafter set forth;

 

WHEREAS, the Company and
the Participant understand and agree that any terms used and not defined herein
have the meanings ascribed to such terms in the Plan.

 

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

 

1.             Grant of Award. 
The Company hereby grants to the Participant an aggregate of
                      
RSUs (the “Award”) which represents a contingent entitlement of the Participant
to receive shares of Common Stock, on the terms and conditions and subject to
all the limitations set forth herein and in the Plan, which is incorporated
herein by reference.  The Participant acknowledges
receipt of a copy of the Plan.

 

2.             Vesting of Award.

 

Subject
to the terms and conditions set forth in this Agreement and the Plan, the Award
granted hereby shall vest as follows provided that the Participant remains
continuously employed by the Company or an Affiliate through the applicable
vesting date:

 

	
  Number of RSUs

  	
   

  	
  Vesting
  Date

  
	
   

  	
   

  	
   

  
	
  25%
  of the RSUs

  	
   

  	
  On
  the first anniversary of the Grant Date

  
	
   

  	
   

  	
   

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

  	
   

  	
  On
  the first day of each
              following
  the first anniversary of the Grant Date of this Agreement for

  

 

[Accelerated vesting on Change of Control to be determined on a
grant-by-grant basis.]  [Notwithstanding
the foregoing, in the event of a Change of Control (as defined below),
    % of the RSUs which would have vested in each vesting
installment remaining under this Award will be vested for purposes of Section 24(b) of
the Plan unless this Award has otherwise expired or been terminated pursuant to
its terms or the terms of the Plan.

 

 

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

 

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

 

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

 

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

 

On
the vesting date set forth above, the Participant shall be entitled to receive
such number of shares of Common Stock equivalent to the number of RSUs set
forth opposite such vesting date provided that the Participant is employed by
the Company or an Affiliate on such vesting date.  Such shares of Common Stock shall thereafter
be delivered by the Company to the Participant in accordance with this
Agreement and the Plan and as required to comply with Section 409A of the
Code.  Notwithstanding the foregoing, if
the Participant is as of the vesting date a
“specified employee” (as defined under Section 409A of the Code) then such
payment of shares of Common Stock, if required by Section 409A of the
Code, will be made six months after the date of such Separation from Service
(as defined in Section 409A of the Code).

 

Except as otherwise set
forth in this Agreement, if the Participant ceases to be employed for any
reason by the Company or an Affiliate prior to a vesting date, then as of the
date on which the Participant’s employment terminates, all unvested RSUs
subject to this Award shall immediately be forfeited to the Company and this
Agreement shall terminate and be of no further force or effect.

 

3.             Prohibitions on Transfer and Sale.

 

This
Award (including any additional RSUs received by the Participant as a result of
stock dividends, stock splits or any other similar transaction affecting the
Company’s securities without

 

2

 

receipt of consideration) shall not be transferable by the Participant
otherwise than by will or by the laws of descent and distribution or pursuant
to a qualified domestic relations order as defined by the Code or Title I of
the Employee Retirement Income Security Act or the rules thereunder.  Except as provided in the previous sentence,
the shares of Common Stock to be issued pursuant to this Agreement shall be issued,
during the Participant’s lifetime, only to the Participant (or, in the event of
legal incapacity or incompetence, to the Participant’s guardian or
representative). This Award shall not be assigned, pledged or hypothecated in
any way (whether by operation of law or otherwise) and shall not be subject to
execution, attachment or similar process. 
Any attempted transfer, assignment, pledge, hypothecation or other
disposition of this Award or of any rights granted hereunder contrary to the
provisions of this Section 3, or the levy of any attachment or similar
process upon this Award shall be null and void.

 

4.             Adjustments. 
The Plan contains provisions covering the treatment of RSUs and shares
of Common Stock in a number of contingencies such as stock splits and
mergers.  Provisions in the Plan for adjustment
with respect to this Award and the related provisions with respect to
successors to the business of the Company are hereby made applicable hereunder
and are incorporated herein by reference.

 

5.             Securities Law Compliance.  The Participant specifically acknowledges and
agrees that any sales of shares of Common Stock issued hereunder shall be sold
in accordance with the requirements of the Securities Act of 1933, as amended.

 

6.             Rights as a Stockholder.  The Participant shall have no right as a stockholder,
including voting and dividend rights, with respect to the RSUs subject to this
Agreement.

 

7.             Tax Liability of the Participant and Payment of Taxes.

 

The Participant
acknowledges and agrees that any income or other taxes due from the Participant
with respect to this Award or the shares of Common Stock to be issued pursuant
to this Agreement or otherwise sold shall be the Participant’s
responsibility.  Without limiting the
foregoing, the Participant agrees that the Participant will owe taxes at each
vesting date on the portion of the Award then vested and the Company shall be
entitled to immediate payment from the Participant of the amount of any tax
required to be withheld by the Company.  In connection
with the foregoing, the Participant agrees that if an arrangement to pay the
withholding obligation in cash has not been received by the Company prior to a
vesting date, the Company shall authorize a registered broker (the “Broker”) to
sell on such vesting date such number of shares of Common Stock otherwise
deliverable to the Participant on vesting of the Award as the Company instructs
the Broker to sell to satisfy the Company’s withholding obligation, after
deduction of the Broker’s commission, and the Broker shall remit to the Company
the cash necessary in order for the Company to satisfy its withholding
obligation.  In connection with such sale
of shares of Common Stock, the Participant shall execute any such documents
requested by Broker in order to effectuate the sale of the shares of Common
Stock and payment of the withholding obligation to the Company. 
The Company shall not deliver any shares of Common Stock to the
Participant until all withholdings have been made.

 

8.             Participant Acknowledgements and Authorizations.

 

The Participant
acknowledges the following:

 

(a)           The Company is not by the Plan or
this Award obligated to continue the Participant as an employee, director or
consultant of the Company or an Affiliate.

 

(b)           The Plan is discretionary in nature
and may be suspended or terminated by the Company at any time.

 

3

 

(c)           The grant of this Award is considered
a one-time benefit and does not create a contractual or other right to receive
any other award under the Plan, benefits in lieu of awards or any other
benefits in the future.

 

(d) The Plan is a
voluntary program of the Company and future awards, if any, will be at the sole
discretion of the Company, including, but not limited to, the timing of any
grant, the amount of any award, vesting provisions and purchase price, if any.

 

(e)           The value of this Award is an
extraordinary item of compensation outside of the scope of any employment.  As such the Award is not part of normal or
expected compensation for purposes of calculating any severance, resignation,
redundancy, end of service payments, bonuses, long-service awards, pension or
retirement benefits or similar payments. 
The future value of the shares of Common Stock is unknown and cannot be
predicted with certainty.

 

(f)            The Participant authorizes his or
her employer to furnish the Company (and any agent administering the Plan or
providing recordkeeping services) with such information and data as it shall
request in order to facilitate the grant of the Award and the administration of
the Plan, and the Participant waives any data privacy rights he or she may have
with respect to such information or the sharing of such information.

 

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

 

If to
the Company at the principal business office listed on the first page of
this Agreement.

 

If
to the Participant at the address set forth in the Company’s employment
directory, or to such other address or addresses of which notice in the same
manner has previously been given.  Any
such notice shall be deemed to have been given on the earliest of receipt, one
business day following delivery by the sender to a recognized courier service,
or three business days following mailing by registered or certified mail.

 

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

 

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

 

12.           Severability.  If any provision of this Agreement is held to
be invalid or unenforceable by a court of competent jurisdiction, then such
provision or provisions shall be modified to the extent necessary to make such
provision valid and enforceable, and to the extent that this is impossible,
then such provision shall be deemed to be excised from this Agreement, and the
validity, legality and enforceability of the rest of this Agreement shall not
be affected thereby.

 

13.           Entire Agreement.  This Agreement, together with the Plan,
constitutes the entire agreement and understanding between the parties hereto
with respect to the subject matter hereof and supersedes all prior oral or
written agreements and understandings relating to the subject matter
hereof.  

 

4

 

No statement, representation, warranty, covenant or agreement not
expressly set forth in this Agreement shall affect or be used to interpret,
change or restrict the express terms and provisions of this Agreement provided,
however, in any event, this Agreement shall be subject to and governed by the
Plan.

 

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

 

15.           Counterparts.  This Agreement may be executed in one or more
counterparts, and by different parties hereto on separate counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

 [THE NEXT PAGE IS THE SIGNATURE PAGE]

 

5

 

IN WITNESS WHEREOF, the
parties hereto have executed this Restricted Stock Unit Agreement as of the day
and year first above written.

 

	
   

  	
  ENERNOC,
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Participant:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Print Name:

  

 

6Exhibit 10.19

 

FORM OF

 

EXECUTIVE INCENTIVE STOCK OPTION
AGREEMENT

 

ENERNOC, INC.

 

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

 

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

 

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

 

WHEREAS, the
Company and the Employee each intend that the Option granted herein qualify as
an ISO.

 

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

 

1.            
GRANT OF OPTION.

 

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

 

2.            
PURCHASE PRICE.

 

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

 

3.            
EXERCISABILITY OF OPTION.

 

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

 

	
  On
  the first anniversary of the date of this Agreement:

  	
   

  	
  25% of the Shares

  
	
   

  	
   

  	
   

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

  	
   

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

  

 

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

 

 

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

 

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

 

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

 

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

 

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

 

4.            
TERM OF OPTION.

 

This Option shall
terminate six years from the date of this Agreement or, if the Employee owns as
of the date hereof more than 10% of the total combined voting power of all
classes of capital stock of the Company or an Affiliate, five years from the
date of this Agreement, but shall be subject to earlier termination as provided
herein or in the Plan.

 

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

 

If the Employee
ceases to be an employee of the Company or of an Affiliate but continues after
termination of employment to provide service to the Company or an Affiliate as
a consultant, this Option shall continue to vest in accordance with Section 3
above as if this Option had not terminated until the Employee is no longer
providing services to the Company.  In such case, this Option shall
automatically convert and be deemed a Non-Qualified Option as of the date that
is three months from termination of the Employee’s employment and this Option
shall continue on the same terms and conditions set forth herein until such
Employee is no longer providing service to the Company or an Affiliate.

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

5.                                       METHOD OF EXERCISING OPTION.

 

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

 

3

 

appropriate proof of the right of such person
to exercise the Option.  All Shares that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and
nonassessable.

 

6.                                       PARTIAL EXERCISE.

 

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

 

7.                                       NON-ASSIGNABILITY.

 

The Option shall
not be transferable by the Employee otherwise than by will or by the laws of
descent and distribution.  The Option shall be exercisable, during the
Employee’s lifetime, only by the Employee (or, in the event of legal incapacity
or incompetency, by the Employee’s guardian or representative) and shall not be
assigned, pledged or hypothecated in any way (whether by operation of law or
otherwise) and shall not be subject to execution, attachment or similar
process.  Any attempted transfer, assignment, pledge, hypothecation or
other disposition of the Option or of any rights granted hereunder contrary to
the provisions of this Section 7, or the levy of any attachment or similar
process upon the Option shall be null and void.

 

8.                                       NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE.

 

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

 

9.                                       ADJUSTMENTS.

 

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

 

10.           TAXES.

 

The Employee acknowledges
that any income or other taxes due from him or her with respect to this Option
or the Shares issuable pursuant to this Option shall be the Employee’s
responsibility.

 

In the event of a
Disqualifying Disposition (as defined in Section 15 below) or if the
Option is converted into a Non-Qualified Option and such Non-Qualified Option
is exercised, the Company may withhold from the Employee’s remuneration, if
any, the minimum statutory amount of federal, state and local withholding taxes
attributable to such amount that is considered compensation includable in such
person’s gross income.  At the Company’s discretion, the amount required
to be withheld may be withheld in cash from such remuneration, or in kind from
the Shares otherwise deliverable to the Employee on exercise of the
Option.  The Employee further agrees that, if the Company does not
withhold an amount from the Employee’s remuneration sufficient to satisfy the
Company’s income tax withholding obligation, the Employee will reimburse the
Company on demand, in cash, for the amount under-withheld.

 

11.           PURCHASE
FOR INVESTMENT.

 

Unless the
offering and sale of the Shares to be issued upon the particular exercise of
the Option shall have been effectively registered under the Securities Act of
1933, as now in force or hereafter 

 

4

 

amended (the “1933 Act”), the Company shall
be under no obligation to issue the Shares covered by such exercise unless and
until the following conditions have been fulfilled:

 

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

 

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

 

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

 

12.           RESTRICTIONS
ON TRANSFER OF SHARES.

 

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

 

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

 

13.           NO
OBLIGATION TO EMPLOY.

 

The Company is not
by the Plan or this Option obligated to continue the Employee as an employee of
the Company or an Affiliate.  The Employee acknowledges:  (i) that
the Plan is discretionary in nature and may be suspended or terminated by the
Company at any time; (ii) that the grant of the Option is a one-time benefit
which does not create any contractual or other right to receive future grants
of options, or benefits in lieu of options; (iii) that all determinations
with respect to any such future grants, including, but not limited to, the
times when options shall be granted, the number of shares subject to each
option, the 

 

5

 

option price, and the time or times when each
option shall be exercisable, will be at the sole discretion of the Company;
(iv) that the Employee’s participation in the Plan is voluntary;
(v) that the value of the Option is an extraordinary item of compensation
which is outside the scope of the Employee’s employment contract, if any; and
(vi) that the Option is not part of normal or expected compensation for
purposes of calculating any severance, resignation, redundancy, end of service
payments, bonuses, long-service awards, pension or retirement benefits or
similar payments.

 

14.                                 OPTION IS INTENDED TO BE AN ISO.

 

The parties each
intend that the Option be an ISO so that the Employee (or the Employee’s
Survivors) may qualify for the favorable tax treatment provided to holders of
Options that meet the standards of Section 422 of the Code.  Any
provision of this Agreement or the Plan which conflicts with the Code so that
this Option would not be deemed an ISO is null and void and any ambiguities
shall be resolved so that the Option qualifies as an ISO.  Nonetheless, if
the Option is determined not to be an ISO, the Employee understands that neither
the Company nor any Affiliate is responsible to compensate him or her or
otherwise make up for the treatment of the Option as a Non-Qualified Option and
not as an ISO.  The Employee should consult with the Employee’s own tax
advisors regarding the tax effects of the Option and the requirements necessary
to obtain favorable tax treatment under Section 422 of the Code,
including, but not limited to, holding period requirements.

 

Notwithstanding
the foregoing, to the extent that the Option is not deemed to be an ISO
pursuant to Section 422(d) of the Code because the aggregate fair
market value (determined as of the date hereof) of any of the Shares with
respect to which this ISO is granted becomes exercisable for the first time
during any calendar year in excess of $100,000, the portion of the Option
representing such excess value shall be treated as a Non-Qualified Option and
the Employee shall be deemed to have taxable income measured by the difference
between the then fair market value of the Shares received upon exercise and the
price paid for such Shares pursuant to this Agreement.

 

15.                                 NOTICE TO COMPANY OF DISQUALIFYING
DISPOSITION.

 

The Employee
agrees to notify the Company in writing immediately after the Employee makes a
Disqualifying Disposition of any of the Shares acquired pursuant to the
exercise of the Option. A Disqualifying Disposition is defined in Section 424(c) of
the Code and includes any disposition (including any sale) of such Shares
before the later of (a) two years after the date the Employee was granted
the Option or (b) one year after the date the Employee acquired Shares by
exercising the Option, except as otherwise provided in Section 424(c) of
the Code. If the Employee has died before the Shares are sold, these holding
period requirements do not apply and no Disqualifying Disposition can occur
thereafter.

 

16.           NOTICES.

 

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

 

If to the Company:

 

	
   

  	
  EnerNOC, Inc.

  
	
   

  	
  Attn: Chief Financial
  Officer

  
	
   

  	
  101 Federal Street,
  Suite 1100

  
	
   

  	
  Boston, MA 02110

  

 

	
  If to the Employee:

  	
   

  	
   

  

 

6

 

 

 

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

 

17.                                 GOVERNING LAW.

 

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

 

18.                                 BENEFIT OF AGREEMENT.

 

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

 

19.                                 ENTIRE AGREEMENT.

 

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

 

20.                                 MODIFICATIONS AND AMENDMENTS.

 

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

 

21.                                 WAIVERS AND CONSENTS.

 

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

 

22.           DATA PRIVACY.

 

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

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

7

 

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

 

 

	
  .

  	
  ENERNOC, INC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name

  
	
   

  	
   

  	
  Title

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Employee

  

 

8

 

Exhibit A

 

NOTICE OF EXERCISE OF INCENTIVE STOCK OPTION

 

TO:         EnerNOC, Inc.

 

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

 

Ladies and Gentlemen:

 

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

 

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

 

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

 

	
   

  	
   

  	
   

  

 

Please issue the Shares (check one):

 

o to me; or

 

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

 

at the following
address:

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

9

 

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

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	 
	
   

  	
  Very truly yours,

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
  Employee (signature)

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
  Print Name

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
  Date

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
   

  	 

	 
	
   

  	
  Social Security Number

  	 

						

 

10

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