Document:

EX-10.1

 Exhibit 10.1 

EMPLOYMENT AND NON-COMPETITION AGREEMENT 

This EMPLOYMENT AND NON-COMPETITION AGREEMENT (this “Agreement”) is made and entered into as of September 16,
2014 by and between PowerSecure International, Inc., a Delaware corporation (the “Company”), and Eric Dupont, an individual who currently resides at the address set forth on the Signature Page
(“Employee”). 
 Recitals: 

WHEREAS, Employee is an employee of the Company who has been promoted to an executive position with the Company; 

WHEREAS, the Company desires to continue to employ Employee, and Employee desires to continue to serve and be employed by the Company, upon
the terms and subject to the conditions set forth herein; and 
 WHEREAS, in order to protect its good will and its customer relationships,
trade secrets and confidential information, the Company is requiring Employee to enter into this Agreement and to observe certain restrictive covenants as a condition to Employee’s continued employment with the Company; 

WHEREAS, the Company is willing to make and pay certain special bonuses and compensation and accommodations to Employee in order to induce
Employee to enter into this Agreement and to agree to, adhere to and perform certain covenants and agreements herein, including certain restrictive covenants including those pertaining to non-competition that are vital to protect the legitimate
business interests of the Company, and Employee desires to agree to, adhere to and perform such covenants and agreements; 
 NOW, THEREFORE,
in consideration of the premises and of the mutual covenants and agreements set forth herein, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and Employee, intending to be
legally bound hereby, agree as follows: 
 Section 1. Employment. The Company hereby agrees to continue to employ
Employee, and Employee hereby agrees to continue to serve as an employee of the Company, upon the terms and subject to the conditions set forth herein. 

Section 2. Term of Agreement and At Will Employment.  

(a) Term of Agreement. This Agreement shall commence on the date hereof and shall continue until and expire on the third (3rd) anniversary of the date hereof, unless earlier terminated in accordance with the provisions of Section 5. In the event that this Agreement has not been earlier terminated in accordance
with the provisions of Section 5, then the term of this Agreement shall be automatically extended without further action by the Company or Employee for additional successive one-year periods unless either party, for any reason or no reason,
shall have given written notice of termination to the other party no less than 60 days prior to the commencement of any one-year extension period. 

 (b) At Will Employment. Notwithstanding the term of this Agreement or any other
provision of this Agreement to the contrary, Employee’s employment with the Company shall be on an “at will” basis, and may be terminated by either the Company or Employee at any time and with or without cause or reason, subject to
the terms and conditions set forth in this Agreement. Nothing set forth herein shall be deemed to create a term of employment for Employee for any period of time or on any basis other than an “at will” basis. The period of Employee’s
employment hereunder is sometimes hereinafter referred to as the “Employment Period.” 
 Section 3. Duties of
Employee.  
 (a) General Duties and Responsibilities. During and throughout the Employment Period, Employee
shall faithfully and diligently, to the best of Employee’s ability, serve as an employee of the Company, in the position of Executive Vice President of Finance and Administration and/or such other or additional offices and positions as shall be
designated or appointed to Employee from time to time by the Board of Directors of the Company (the “Board”), shall have the authority and shall perform the duties, responsibilities and functions customary for such offices and
positions, and shall have such other authority and shall perform such other duties, responsibilities and functions as may be reasonably assigned or delegated to Employee from time to time by the Board or by the Chief Executive Officer of the Company
(the “CEO”). Employee shall report to the CEO, and Employee shall at all times be subject to the direction, approval and control of the CEO and the Board in the performance of his duties hereunder. Employee shall perform
Employee’s duties hereunder in accordance with the policies and procedures of the Company and its Affiliates (as defined herein) applicable to Employee in effect from time to time, including, without limitation, policies on business ethics and
conduct and policies on insider trading and the use of non-public information, and in accordance with all applicable laws and regulations and regulatory requirements. Employee shall promote the best interests of the Company at all times while
employed by the Company. Employee acknowledges and agrees that Employee may be required or directed by the Board or the CEO, without additional compensation, to perform services for one or more subsidiaries or other Affiliates (as defined herein) of
the Company, and agrees to accept such offices or positions with any such subsidiaries or other Affiliates as the Board or the CEO may reasonably require. 

(b) Performance of Services. While employed by the Company, Employee shall devote Employee’s full time, attention, skill,
ability and energy during normal business hours (and outside such hours when reasonably necessary to perform Employee’s duties hereunder) exclusively to the business and affairs of the Company and the performance of Employee’s duties under
this Agreement. Employee shall not, directly or indirectly, render any services of a business, commercial or professional nature to any Person other than the Company without the prior written consent of the CEO or the Board; provided, however, that
the provisions of this Section 3(b) shall not preclude Employee from devoting time, ability, energy and attention outside normal business hours while employed by the Company to service on the boards of directors of noncompetitive entities
and/or reasonable participation in community, civic, charitable or similar organizations, or the pursuit of personal legal and financial affairs which do not interfere or conflict with the performance of Employee’s duties hereunder and are not
adverse to the business or the best interests of the Company. 
 (c) Base of Employment; Travel. Employee shall perform his
services to the Company based in Wake Forest and Charlotte, North Carolina or such other location that is mutually agreed upon with the Company; provided, however, that Employee acknowledges that his employment and positions with the Company and his
duties and responsibilities hereunder will require him to undertake substantial travel, and Employee hereby agrees to undertake all such travel required in connection with the business of the Company and the performance of Employee’s duties
hereunder. 

  
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 Section 4. Compensation. During the Employment Period, as compensation for the
services to be performed by Employee to the Company hereunder, and as an inducement to Employee to enter into and to agree to perform, observe and abide by his covenants and agreements set forth in this Agreement, including but not limited to the
covenants and agreements set forth in Section 6, the Company shall pay and provide Employee the following: 
 (a) Base
Salary. The Company shall pay Employee an annual base salary equal to $250,000 (the “Base Salary”), which shall be payable in approximately equal installments in accordance with the Company’s customary payroll
practices. Employee’s Base Salary may be reviewed by the Board (directly or through its Compensation Committee) and may be increased at the sole discretion of the Board (although there is no obligation to do so) based upon whatever factors the
Board deems appropriate (including based on recommendations of the CEO) including, but not limited to, Employee’s individual performance, the Company’s overall performance, profitability and prospects and prevailing economic and industry
factors. The term “Base Salary” shall include any such increase(s) in the future. 
 (b) Bonuses.  

(i) Annual Incentive Bonus. Employee shall be eligible to receive an annual incentive bonus for each fiscal year of the Company,
in a target amount of 35% and a maximum amount of 70% of his Base Salary, based on the factors and metrics and on the terms and conditions annually established or otherwise determined or approved in the sole discretion of the Board (which may
include any recommendations by the CEO). The amount of such annual incentive bonus for each fiscal year shall be set in the sole discretion of the Board, and there shall be no minimum or guaranteed bonus amount for any fiscal year. 

(ii) General Bonus Programs. Employee may be eligible to participate in other commission, bonus and profit sharing programs if,
and upon such terms as, determined in the sole discretion of the Board.  
 (c) Restricted Shares. The Company shall
grant to Employee 20,000 shares of restricted Common Stock, par value $.01 per share, of the Company (the “Restricted Shares”), which Restricted Shares shall vest in equal annual installments over a five (5) year period during
the Employment Period. The Restricted Shares shall be subject to the terms and conditions of the Company’s 2008 Stock Incentive Plan, as amended and restated from time to time. The Company may, in its discretion, grant Employee additional
awards of Restricted Shares, stock options or other equity awards from time to time in the future. 
 (d) Employee Benefit
Plans. Employee shall be eligible to participate in pension, 401(k), retirement, life, disability and health insurance, hospitalization, major medical and other employee benefit plans and arrangements provided to comparable level employees
of the Company (as in effect and as amended from time to time, the “Benefits”). Employee shall be entitled to participate in all such Benefits to the extent that Employee’s position, tenure, salary, age, health and other
qualifications make Employee eligible to participate, subject to and on a basis consistent with the terms, rules and regulations, conditions and overall administration of such plans and arrangements. Notwithstanding the foregoing sentence, the
Company may discontinue at any time any such Benefits, to the extent permitted by the terms of such plans or arrangements, and shall not be required to compensate Employee for the elimination of any such employee benefit plans or arrangements. 

  
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 (e) Business Expenses. The Company shall, upon presentment by Employee of
reasonably detailed and appropriate receipts and vouchers therefor, reimburse Employee for all reasonable, ordinary and necessary out-of-pocket business expenses incurred by Employee in connection with the performance of Employee’s duties under
this Agreement, provided that such expenses are incurred and accounted for in accordance with and subject to the normal policies and procedures of the Company. 

(f) Vacation, Holidays and Sick Leave. The Company shall provide Employee with four weeks of paid vacation, plus holidays and
sick days on terms consistent with comparable level senior employees of the Company. 
 (g) Automobile Allowance. The Company
shall provide to Employee an insured company-owned or leased vehicle suitable and appropriate for Employee to perform his duties hereunder, and Employee shall be permitted to use such vehicle for personal use so long as it is not used for any
purpose that violates applicable law or is detrimental to the Company. In lieu of the foregoing, the Company shall pay an automobile allowance to Employee of $1,000 per month, or any alternative arrangement that is acceptable to both parties. The
company shall pay any and all gas and maintenance costs related to the vehicle under either option. 
 (h) Clawback.
Notwithstanding any other provision of this Agreement to the contrary, any incentive-based compensation, or any other compensation, paid to Employee pursuant to this Agreement or under any other arrangement with the Company, which is subject to
recovery under any law, governmental regulation or stock exchange listing requirement, or pursuant to any compensation policy adopted by the Company, shall be subject to such deductions, clawback and recovery as may be required to made pursuant to
such law, governmental regulation, stock exchange listing requirement or policy. 
 Section 5. Termination of Employment.
Employee’s employment hereunder shall terminate as follows: 
 (a) Death. Employee’s employment hereunder
shall automatically terminate upon Employee’s death. Upon such event, the Company shall pay to Employee’s designated beneficiary (or, if none, to Employee’s estate) the pro rata portion of Employee’s Base Salary and any other
accrued but unpaid bonuses or other compensation through the Date of Termination. 
 (b) Disability. The Company shall have the
right, in its sole discretion, to terminate Employee’s employment hereunder in the event of Employee’s Disability (as defined below) upon giving at least 30 days written notice to Employee of its intention to terminate Employee’s
employment. For purposes of this Agreement, “Disability” means the physical or mental inability of Employee, due to illness, accident or other incapacity, to effectively perform the essential functions of Employee’s duties
hereunder (with or without reasonable accommodation), or which results from an incapacity (physical or mental) determined to be total and permanent by an independent physician mutually agreed upon by the Company and Employee. Upon such termination
of employment, then Employee shall be entitled to receive only the following: (i) any accrued but unpaid portion of his Base Salary through the Date of Termination (as defined below), (ii) any accrued but unpaid bonuses as of the Date of
Termination, and (iii) any Benefits earned, accrued or vested (including under any benefit plans in which he was participating) as of the Date of Termination, subject to the terms and conditions of such benefit plans and Benefits, but Employee
shall not attain vested status in any benefit plans or Benefits in which he is not vested on the Date of Termination (collectively, the “Standard Termination Package”). 

  
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 (c) Termination by the Company for Cause.  

(i) The Company shall have the right, in its sole discretion, to terminate Employee’s employment hereunder at any time for Cause (as
defined below) immediately upon giving written notice of termination to Employee specifying the reason for such termination. Upon the termination of Employee’s employment by the Company for Cause, then Employee shall be entitled to receive only
the Standard Termination Package. 
 (ii) For purposes of this Agreement, the term “Cause” shall mean any one or more of
the following: 
 (A) The failure or refusal by Employee to perform any of his material duties hereunder, or the breach by Employee of any
of his obligations, covenants, representations, warranties or acknowledgments hereunder, which failure, refusal or breach remains unremedied or uncured for a period of 30 consecutive days after specific written notice thereof is given to Employee by
or behalf of the Board or the CEO; 
 (B) Any act of dishonesty, fraud, breach of fiduciary duty or bad faith by Employee that is materially
detrimental to the Company or that results in substantial personal enrichment of Employee; or 
 (C) The conviction of Employee of, or the
entering of a guilty plea or a plea of no contest by Employee with respect to, either a felony, or a misdemeanor that involves theft, fraud or dishonesty, results in Employee’s imprisonment, materially impairs Employee’s ability to perform
his duties hereunder, or materially damages the reputation or business of the Company. 
 (d) Termination by the Company Without
Cause. The Company shall have the right, in its sole discretion, to terminate Employee’s employment hereunder at any time without Cause, which termination shall be effective upon the giving of written notice of such termination by the
Company to Employee (or at such later date as the notice provides). In such event, Employee shall be entitled to only the following: (i) the Standard Termination Package, (ii) a severance in the amount equal to one time (100%) the sum
of his annual Base Salary then in effect plus the average annual bonus paid by the Company to Employee over the three prior years (or such lesser period as applicable) (the “Severance Amount”), payable by the Company to Employee in
no less than equal month installments over the 12 month period following the Date of Termination, (iii) for a period of one year from the Date of Termination, the Company shall pay for, or otherwise provide for at Company expense, the
continuation of the same (if available, and to the extent not available similar) life, accidental death, disability, medical, dental and other insurance Benefits in which Employee and his family participated immediately prior to the Date of
Termination, and (iv) any Restricted Shares referred to in Section 4(b)(iii) that are then unvested shall vest in full immediately upon the Date of Termination. 

(e) Termination by Employee. Employee agrees not to terminate Employee’s employment hereunder except by giving at least 60
days prior written notice to the Company, provided that after receipt of such notice the Company shall have the right to waive all or any portion of such notice period and to set an earlier Date of Termination by giving written notice thereof to
Employee. Upon such termination of employment by Employee, then Employee shall be entitled to receive only the Standard Termination Package. 

  
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 (f) Compensation Upon Termination of Employment Following a Change in Control. 

(i) Amount of Compensation. If, during the Employment Period, a Change in Control (as defined below) of the Company occurs, and
within two years after such date the Company terminates Employee’s employment without Cause or Employee terminates Employee’s employment for Good Reason (as defined below), then: 

(A) The Company shall pay to Employee in a lump sum in cash within 30 days after the Date of Termination the aggregate of the following
amounts: 
  

	 	(I)	any accrued but unpaid portion of his Base Salary as of the Date of Termination; 

  

	 	(II)	any accrued but unpaid bonuses as of the Date of Termination; 

  

	 	(III)	the Severance Amount; and 

  

	 	(IV)	in the case of compensation previously deferred by Employee, all amounts of such compensation previously deferred and not yet paid by the Company; 

(B) The Company shall, promptly upon submission by Employee of supporting documentation, pay or reimburse to Employee all costs and expenses
paid or incurred by Employee prior to the Date of Termination; and 
 (C) For a period of one year after the Date of Termination, Employee
and his family shall be permitted to continue to participate in all life, accidental death, disability, medical, dental and other insurance plans and Benefits of the Company. If, despite the provisions of this Section 5(f), benefits shall not
be available under any of such plans because Employee is no longer an employee of the Company, then the Company itself shall, to the extent necessary, pay or provide for payment of similar benefits to Employee and/or Employee’s family. 

(ii) Definition of Change in Control. For the purpose of this Agreement, a “Change in Control” of the Company
shall be deemed to have occurred only if: 
 (A) Any person or group (as such terms are used in Sections 13(d)(3) and 14(d)(2) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) acquires the beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act), directly or indirectly, of 50% or more of the aggregate voting
power of all classes of the Company’s then outstanding voting securities entitled to vote generally in the election of directors of the Company; or 

  
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 (B) Individuals who, as of any given date, constitute the Board of Directors of the Company (the
“Board” generally, and as of the date hereof, the “Incumbent Board”) cease for any reason to constitute at least a majority of the Board within 12 months after such date, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the Company’s stockholders, was approved by a vote of at least three-fifths of the directors then comprising the Incumbent Board (other than an election or nomination
of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of the Company, as such terms are used in Rule 14a-11 of Regulation 14A promulgated under
the Exchange Act) shall be, for purposes of this Agreement, considered as though such individual were a member of the Incumbent Board; or 

(C) Consummation by the Company of a reorganization, merger, combination, or consolidation, in each case, unless, following such
reorganization, merger, combination, or consolidation, (1) more than 50% of, respectively, the then outstanding shares of common stock of the corporation or other entity resulting from such reorganization, merger, combination or consolidation
and the aggregate voting power of the then outstanding voting securities of the resulting corporation or other entity entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially
all of the individuals and entities who were the beneficial owners, respectively, of the outstanding Common Stock and outstanding voting securities of the Company immediately prior to such reorganization, merger, combination, or consolidation, in
substantially the same proportion as their ownership immediately prior to such reorganization, merger, combination, or consolidation, and (2) at least a majority of the members of the board of directors of the corporation or other entity
resulting from such reorganization, merger, combination or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement providing for such reorganization, merger, combination or consolidation; 

(D) Approval by the stockholders of the Company of the sale or other disposition of all or substantially all of the assets of the Company,
other than to a corporation or other entity with respect to which following such sale or other disposition the conditions described in clauses (I) and (II) of Section 5(f)(ii)(C) are satisfied; or 

(E) Any other similar event or transaction or series of related events or transactions as determined by the Board. 

(iii) Definition of Good Reason. For the purpose of this Agreement, “Good Reason” means the occurrence
of one of the following that continues for 30 consecutive days after Employee gives notice thereof to the Company: 
 (A) The assignment to
Employee of any position, authority, duties or responsibilities inconsistent in any respect with Employee’s position (including, without limitation, status, offices, title and reporting requirements), authority, duties or responsibilities, as
provided hereunder, or any other action by the Company which results in a diminution in such position, authority, duties or responsibilities, other than an insubstantial and inadvertent action which is remedied by the Company promptly after receipt
of notice thereof given by Employee; 
 (B) Any reduction in Employee’s Base Salary or any material diminution of Employee’s
employee benefits or other elements of compensation or benefits referred to in Section 4; 

  
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 (C) The Company’s requiring Employee to be based at an office location or to maintain his
personal residence other than in Charlotte or Wake Forest, North Carolina, without Employee’s consent, which may be withheld for any reason; 

(D) Any material reduction in the duties, authority or offices of Employee, without Employee’s consent, which may be withheld for any
reason; 
 (E) Any purported termination by the Company of Employee’s employment other than as expressly permitted by this Agreement;
or 
 (F) Any other failure by the Company to comply with any provision of this Agreement, other than an insubstantial and inadvertent
failure which is remedied by the Company within 30 days after receipt of notice thereof given by Employee. 
 (iv) Legal
Expenses. In the event the Company fails to pay any amounts or to provide any benefits due to Employee under this Section 5(f) within 30 days after Employee gives the Company written notice thereof, Employee shall be entitled to
commence an action against the Company to recover such amounts due to him and, if he prevails in the action, shall be entitled to receive his attorneys fees and expenses in such action. 

(g) Date of Termination. For purposes of this Agreement, the term “Date of Termination” means: 

(i) If Employee’s employment terminates as a result of Employee’s death under Section 5(a), the Date of Termination shall be
the date of Employee’s death; 
 (ii) If Employee’s employment is terminated as a result of Employee’s Disability under
Section 5(b), the Date of Termination shall be the date of termination of employment specified in the Company’s notice of termination delivered to Employee in accordance with Section 5(b); 

(iii) If the Company terminates Employee’s employment for Cause under Section 5(c), the Date of Termination shall be the date the
Company delivers the notice of termination to Employee in accordance with Section 5(c). 
 (iv) If the Company terminates
Employee’s employment without Cause under Section 5(d), the Date of Termination shall be the date of such notice unless a later date of termination is specified in the Company’s notice of termination delivered to Employee in
accordance with Section 5(d). 
 (v) If Employee terminates his employment under Section 5(e), the Date of Termination shall be
the date of termination of employment specified in Employee’s notice of termination delivered to the Company in accordance with Section 5(e), provided that if the Company exercises its right to set an earlier date of termination of
employment, in accordance with Section 5(e), then the Date of Termination shall be such earlier date specified by the Company. 
 (vi)
If Employee’s employment is terminated after a Change in Control under Section 5(f), the Date of Termination shall be the actual date that Employee’s employment terminates. 

  
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 (h) Upon Merger, Acquisition or Change in Control of the Company. Neither this
Agreement nor Employee’s employment hereunder shall terminate solely by reason of any sale of assets or capital stock of the Company, or any merger or consolidation or change in control of the Company. 

(i) Effect on Equity Awards. The effect of the termination of Employee’s employment with the Company under this Agreement
upon the terms of vesting, exercise or other terms of any grants of stock options, restricted stock or other equity awards shall be as specified by the terms and conditions of those equity awards excepts as otherwise expressly and specifically
provided in this Agreement. 
 (j) No Further Obligation to Employee. The payments and Benefits required to be made or provided
to Employee pursuant to this Section 5 shall be in full and complete satisfaction of, and shall constitute the full settlement and release of the Company by Employee with regard to, all obligations of the Company owed to Employee pursuant to
this Agreement. After the Date of Termination of Employee’s employment hereunder, the Company shall have no further obligations to Employee and Employee shall have no right to receive any other or further compensation or Benefits under this
Agreement, except as expressly and specifically set forth herein. 
 (k) Survival of Employee’s Section 6 Covenants.
Notwithstanding the termination of Employee’s employment by either the Company or Employee for any reason whatsoever, the obligations of Employee under Section 6 and the other provisions of this Agreement related thereto shall survive the
termination of Employee’s employment hereunder and shall remain in full force and effect for the period provided therein, except as otherwise expressly provided in Section 6. 

(l) Release of Claims. Notwithstanding anything to the contrary contained herein, Employee’s right to receive any Severance
Amount and the other amounts of compensation, bonus or other payments or benefits hereunder after the Date of Termination shall be conditioned upon Employee’s execution and delivery of a reasonable and customary release of all claims against
the Company and its subsidiaries and Affiliates and their directors, officers, managers, members, employees, stockholders, agents and representatives. 

(m) Condition of Compliance by Employee. Employee’s right to receive any Severance Amount and any other post-termination
compensation, payments or Benefits under this Agreement shall be subject to his compliance in all material respects with the non-competition, non-solicitation and confidentiality restrictive covenants set forth in Section 6. If Employee fails
to comply with such covenants in any material respect, then (i) Employee shall not be entitled to any unpaid portion of any Severance Amount or any other post-termination compensation, payments or Benefits under this Agreement, and
(ii) the Company shall be entitled to seek the return from Employee of any portion of any Severance Amount or other post-termination compensation and payments and the value of any Benefits previously received by Employee hereunder. This
Section 5(m) shall not in any manner supersede or limit any other right the Company has to enforce or seek legal or equitable relief with respect to a breach or violation by Employee of the covenants set forth in Section 6. 

(n) Resignation of Other Positions. Upon the termination of Employee’s employment hereunder for any reason, Employee agrees
that he shall be deemed to have resigned, effective upon the Date of Termination (unless he resigns earlier therefrom) from any and all positions that Employee then holds as an officer and/or director (or other similar position) of the Company or
any of its subsidiaries or other Affiliates. 

  
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 (o) Return of Company Property. Immediately upon request, Employee shall return to
the Company (i) all corporate property and equipment in his possession, custody or control, including without limitation all Company vehicles, credit cards, telephone call cards, keys, key cards, access cards, pass cards, identification cards,
security devices, computers, laptops and peripheral devices, equipment, Company-owned cell phones and personal digital assistants, computer access codes, disks and any other physical or personal property of the Company that Employee received,
prepared, or helped to prepare in connection with his employment in the same condition as when provided to Employee, reasonable wear and tear excepted; and (ii) any and all books, records, files, documents, data, manuals, notes, designs,
specifications, diskettes, tapes, flash or thumb drives or other removable information storage devices, or materials of any kind, whether written or electronically created or stored, in Employee’s possession, custody or control which contain,
relate to or refer to any Confidential Information (as defined below) or otherwise relate to the Company, its products or services, or Employee’s employment with the Company, including all datasheets, files, memoranda, emails, records,
software, disks, instructional manuals, without retaining any copies, in whole or in part, in any form or media. 
 Section 6.
Covenants of Employee. Employee acknowledges and agrees that he will receive significant and substantial compensation, benefits and other consideration from his employment with the Company under this Agreement, as well as introductions
to, personal experience with, training in and knowledge of the Company, its business, affairs and operations, the markets, industries and businesses in which it engages, and third parties with which it conducts business. In addition, Employee
acknowledges and agrees that Employee entering into the following covenants is a condition to the Company entering into this Agreement. Moreover, Employee agrees that the covenants set forth in this Section 6 are necessary and reasonable in
order to protect the legitimate business interests of the Company. Accordingly, in consideration of the foregoing, to continue to employ Employee and to provide such compensation and other Benefits to Employee, Employee hereby makes the following
covenants to the Company: 
 (a) Covenant Not to Compete. 

(i) Covenant. So long as he remains employed by the Company and for a period of one (1) year after the Date of Termination
of Employee’s employment hereunder for any reason whatsoever, whether by the Company or by Employee (such period of time, commencing with the date of this Agreement, referred to herein as the “Restricted Period”), Employee
shall not, directly or indirectly, alone or in association with others, whether as owner, shareholder, employee, officer, director, partner, manager, member, trustee, lender, investor, consultant, principal, agent, independent contractor,
co-venturer or in any other capacity, (A) engage or participate in any Competing Business (as defined below) in any Restricted Territory (as defined below), or (B) invest in, have a financial interest in, be in any other way connected or
affiliated with, or render advice or services to, any Person that is engaged, in whole or in part, in a Competing Business in any Restricted Territory. Notwithstanding the foregoing, nothing herein contained shall prevent Employee from acquiring and
holding for investment purposes only up to five percent (5%) of any class of securities of any company, if such securities are listed or traded on a national securities exchange or otherwise publicly traded and if Employee is not part of a
group that controls such company. 
 (ii) Competing Business. For purposes of this Agreement, the phrase “Competing
Business” means and shall be deemed to include (A) any business or activity that involves researching, developing, engineering, designing, marketing, selling and servicing products, services

  
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and technologies related to energy and smart grid solutions for electric utilities and other industrial, commercial and institutional customers, including without limitation: (1) designing,
manufacturing, installing, operating, and/or monitoring electric generation equipment, including distributed generation systems and switchgear systems, (2) designing, building, upgrading and maintaining infrastructure associated with the grid
system, or (3) designing, manufacturing, installing, operating or otherwise providing energy solutions to commercial, institutional, industrial or governmental customers such as LED-based lights and cost-effective energy improvement systems for
general lighting, building controls and other facility upgrades, including HVAC systems, water systems, and building envelope improvements; (B) any and all other related lines of businesses conducted by the Company in which Employee is involved
at any time in the last two years of his employment with the Company; (C) any other business or activity (1) in which Employee would perform duties or engage in activities involving technology or developments that are the same or
substantially similar to any Inventions (as defined below) that Employee developed or worked on while employed by the Company, or (2) that may require or inevitably require, or is reasonably likely to result in, or would otherwise benefit from,
the disclosure by Employee of any trade secrets, proprietary information or other Confidential Information (as defined below) of the Company; and (D) any other business that has operations or activities, or relating to products, services or
technologies, that are substantially the same as the business operations, activities, products, services or technologies of the Company on the Date of Termination. 

(iii) Restricted Territory. For purposes of this Agreement, the phrase “Restricted Territory” means and shall
be deemed to include (A) a 100-mile radius around the Company’s corporate headquarters, or if Employee’s base of employment is not at the Company’s headquarters, a 100-mile radius around Employee’s base of employment;
(B) any sales territory assigned to Employee at any time during the last two years of his employment with the Company; (C) any county of any State in the United States of America in which the Company is actively engaged in business or
otherwise has material operations at any time during the last two years of his employment with the Company; and (D) any other county, state, province or similar territory of any other country, in which the Company is actively engaged in
business or otherwise has material operations at any time during the last two years of his employment with the Company. 
 (iv)
Interpretation of Covenant. The parties hereto acknowledge and agree that the scope, duration and area for which the covenant set forth in this Section 6(a) is to be effective are fair and reasonable and are reasonably necessary for
the protection of the Company, its business and its trade secrets and Confidential Information, customer relationships and good will, and Employee hereby waives any objections to or defenses in respect thereof. In the event that any court of
competent jurisdiction determines that any portion of the scope, time period or restricted area are unreasonable, arbitrary or against public policy, and that such covenant is to such extent unenforceable, illegal or invalid, the parties hereto
agree that this Section 6(a) shall be deemed amended, and the court shall have the right to reform this Agreement, to delete or strike therefrom such provisions or portions determined to be unenforceable, illegal or invalid so that the
remainder of the covenant set forth in this Section 6(a) shall remain in full force and effect. The parties intend that each paragraph and subparagraph of this Section 6(a) to be separable and independent covenants. 

(b) Covenant Regarding Disclosure and Use of Confidential Information. 

(i) Employee’s Covenant of Non-Disclosure. Employee acknowledges that as a result of Employee’s employment by the
Company, Employee has and will continue to learn, obtain and have access to confidential and proprietary information regarding the business and affairs of the 

  
 11 

 
Company. Employee hereby agrees that at all times while employed by the Company and thereafter, Employee shall keep and treat as strictly confidential and hold in confidence all Confidential
Information, and Employee shall not, directly or indirectly, (A) use any Confidential Information for Employee’s own benefit or for the benefit of any other Person or in any way detrimental to the Company or its business, or
(B) disclose, divulge, furnish, publish, communicate or otherwise reveal or make available any Confidential Information to any Person in any manner whatsoever, other than (1) in the furtherance of the Company’s business to the extent
necessary for him to perform his services to and responsibilities on behalf of the Company prior to the Date of Termination, or (2) as compelled in order to comply with applicable law or court order, provided that Employee will provide the
Company at least five (5) days’ advance written notice of any such compelled disclosure and will cooperate with the Company to minimize the extent of such compelled disclosure. 

(ii) Definition of Confidential Information. As used herein, “Confidential Information” means and includes any
and all information, whether in written, oral, electronic, visual or any other form or medium, which is confidential, proprietary or otherwise non-public, related to the Company or its business, affairs, assets, liabilities, properties,
technologies, operations, condition (financial or otherwise), financial results and prospects, including but not limited to information relating to its finances, practices, procedures, policies, methods, contracts, agreements and arrangements,
lending policies, pricing policies, price lists and other price information and cost lists and other cost information; financial plans, strategic plans and initiatives, business plans, financial and business projections, forecasts and budgets;
marketing, product development and business development plans, strategies and techniques; financial statements, notes, schedules, reports and other financial information; the identity and location of and other business information relating to past,
present and prospective customers, clients, vendors, suppliers, affiliates, debtors, creditors, lenders, employees, consultants, advisors, agents, distributors, wholesalers, clients and others who have dealings and business relationships with the
Company; contract terms, conditions and substance; all trade secrets, processes, photographs, graphics, product specifications, formulas, compositions, samples, inventions, ideas, research and development; patents, patent applications; copyrights
and copyright applications (in any such case, whether registered or to be registered in the United States or any foreign country) applied for, issued to or owned by the Company and other intellectual properties; any and all processes, computer
programs and software (including object code and source codes, database, technologies, engineering or technical data, drawings, sketches or designs, manufacturing or distribution methods or techniques); and any other information pertaining to the
Company known to Employee to be confidential, proprietary, secret or otherwise non-public information. For purposes of this Agreement, the term “Confidential Information” shall not include information that Employee can demonstrate:
(A) is or becomes generally available to and known by the public on the date of this Agreement or thereafter, other than due to a direct or indirect disclosure by Employee in breach of this Agreement, or (B) is disclosed to Employee by a
third party without violating any confidentiality obligation or fiduciary duty on the part of the disclosing party not to so disclose such information. 

(iii) Company Ownership. Employee hereby acknowledges and agrees that, as between the Company and Employee, all of the
Confidential Information, however documented, whether or not developed, created or modified by Employee, is and shall remain the exclusive property of the Company. 

(iv) Return Upon Termination. Upon the termination of Employee’s employment with the Company, Employee shall leave with or
return to the Company, without making or retaining any copies, or other records of, all Confidential Information in his possession or under his control, including all copies, summaries, abstracts thereof and all memoranda, notes, records, reports,
books, letters, customer lists, manuals and other writings or documents whatsoever pertaining thereto. 

  
 12 

 (v) Employee Acknowledgement. Employee acknowledges and agrees that the Company
has invested and continues to invest substantial time, money and other resources in developing its Confidential Information, that such Confidential Information provides the Company with a competitive advantage and is of great value to the Company,
and that the restrictions and covenants contained in this Agreement are reasonable and necessary to protect the Confidential Information and the good will and legitimate business interests of the Company. 

(vi) Third Party Confidential Information. Employee acknowledges that the Company from time to time may enter into agreements
with other Persons that impose obligations or restrictions on the Company regarding the confidential nature of the information provided by such other Persons to the Company and its representatives. Employee acknowledges and agrees that he shall be
bound by and observe all such obligations and restrictions applicable to the Company. 
 (c) Covenants Regarding Business
Relationships. 
 (i) Non-Solicitation of Company Persons. Employee agrees that during and throughout the Restricted
Period, except when acting on behalf of and in the interests of the Company, Employee shall not, directly or indirectly, (A) employ, hire, attempt to hire, recommend for hire, solicit, induce, recruit or otherwise engage any individual serving
as an employee, officer, director, consultant, contractor or other service provider of the Company at any time during the Employment Period (whether now or hereafter engaged by the Company) (“Company Person”), unless such Company
Person did not serve in such capacity at any time during the year prior to such solicitation, (B) cause any Company Person to (1) terminate such Company’s Person’s employment, service or engagement with the Company,
(2) accept employment or engagement or otherwise render services to any other Person or business (wherever located, and regardless of type of business conducted), or (3) interfere with the business of the Company, or (C) provide or
furnish to any other Person any information (including information about the identity, experience, expertise, qualifications, special knowledge, personal characteristics, position, duties or compensation) about any Company Person, other than in the
performance of Employee’s employment as required to further of the Company’s business. 
 (ii) Non-Solicitation of
Customers. Employee agrees that during and throughout the Restricted Period, except when acting on behalf of and in the interests of the Company, Employee shall not, directly or indirectly, solicit, contact or meet with (or attempt to do the
same) any clients or customers, or any prospects known to Employee as of the Date of Termination, of the Company to (A) cease being, or not to become, a client or customer of the Company, (B) reduce the amount of their business with or
otherwise divert any of their business from the Company, or (C) become a customer or client of Employee, any Affiliate of Employee or any other Person, or (D) engage in any Competing Business. 

(iii) Non-Interference with Business. Employee agrees that during and throughout the Restricted Period, except when acting on
behalf of and in the interests of the Company, Employee shall not, directly or indirectly, interfere in any business relationship between the Company and any other Person, including any Person who was at any time an employee, consultant, contractor,
advisor, supplier, lender or customer of the Company. 

  
 13 

 (iv) Non-Disparagement. Employee shall not, at any time during his employment with
the Company or thereafter, make, publish or otherwise communicate to any Person or in any public forum any statements, remarks or comments that disparage the business reputation of the Company or its business, affairs, operations, assets,
properties, customers, suppliers, lenders or prospects, or of any of the Company’s directors, officers, employees, agents, representatives or Affiliates or take any actions that are harmful to the Company’s good will with others; provided,
however, that this covenant shall not in any way restrict or impede Employee from exercising protected rights to the extent such rights cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court
of competent jurisdiction or a governmental or regulatory agency, provided any statements made by Employee are known to be truthful and that Employee provides reasonable prior written notice of the same. 

(d) Inventions. During and throughout the Restricted Period, Employee shall disclose, grant and assign to the Company any and all
ideas, improvements, techniques, modifications, processes, inventions, improvements, developments, discoveries, trade secrets, trademarks, service marks, copyrights, processes, procedures, techniques, trade names, business plans, writings, computer
software, technical information, works of authorship and other work product (“Inventions”) that Employee develops, conceives, creates, makes, devises, discovers, prepares, produces, authors, acquires or acquires knowledge of, while
employed by the Company, either by himself or in conjunction with any other Person, which (i) arise from, relate to or are useful in the business activities and operations of the Company at any time prior to the Date of Termination,
(ii) are developed, conceived, created, made, devised, discovered, acquired or acquired knowledge of by Employee on the Company’s time, premises or equipment, or using the Company’s property or otherwise in the course of performing
his duties and obligations hereunder, or (iii) are based upon or utilize any Confidential Information, whether or not the Company obtains a patent, trademark, service mark, copyright or similar intellectual property rights, registrations or
protections thereupon. Employee hereby agrees that the Inventions are or shall become and shall remain the sole and exclusive property of the Company, whether or not the Company obtains a patent, trademark, service mark, copyright or similar
registration or protection thereon. Employee hereby acknowledges that all of Employee’s writing, works of authorship and other Intellectual Property are works made for hire and the property of the Company, including patents, trademarks, service
marks, copyrights and other intellectual property rights pertaining thereto. Employee shall, at the request of the Company but without any additional compensation or consideration other than any actual third party expenditures required, render such
assistance as the Company deems necessary or desirable to secure, prosecute or defend the rights of the Company to the Inventions by patent, trademark, service mark, copyright to otherwise, including without limitation the assignment, transfer and
conveyance by the Employee to the Company of all of Employee’s right, title and interest in and to the Inventions. 
 (e) Prior
Employer Information. During Employee’s employment with the Company, Employee shall not use improperly or disclose any confidential or proprietary information or trade secrets of any former employers or of their principals, partners,
co-ventures, clients, customers, vendors or suppliers, and Employee shall not bring onto the premises of the Company any unpublished document or any property belonging to any such Persons without their prior consent. In addition, Employee agrees to
observe and shall not violate any confidentiality, non-disclosure, non-competition or proprietary rights agreements to which he is a party with any former employer. 

(f) Employee’s Acknowledgments. Employee acknowledges and agrees that (i) the Company spends considerable amounts of
time, money and effort in developing and maintaining good will; (ii) the services to be rendered by Employee to the Company hereunder are of a special and 

  
 14 

 
unique character; (iii) Employee will obtain knowledge, skills, talents and abilities relevant to the Company’s business and operations, industry, methods of doing business and business
and marketing strategies by virtue of Employee’s employment hereunder; (iv) the covenants contained within this Section 6 are reasonable and necessary in all respects to protect the goodwill, trade secrets, confidential information
and legitimate business interests of the Company, are essential elements of this Agreement, and that the Company would not have entered into this Agreement without Employee’s agreement to comply with such covenants; (v) Employee will not
be subject to undue hardship or be unable to earn a living that is suitable and acceptable to Employee by virtue of Employee’s full compliance with the covenants in this Section 6; (vi) each and every term, covenant and restriction in
this Section 6 is reasonable and necessary for the proper protection of the Company’s business; and (vii) Employee has been advised by the Company that Employee should consult with independent counsel of Employee’s choice and
have such counsel review this Agreement and render advice thereon to Employee, and Employee has either done so or voluntarily elected not to do so. 

(g) Equitable Relief. Employee hereby acknowledges and agrees that (i) Employee’s services to be rendered to the
Company hereunder and Employee’s obligations contained in this Section 6 are of special, unique and personal character which gives them a peculiar value to the Company, (ii) any violation of these covenants would result in irreparable
and immediate harm, damage and injury to the Company, (iii) the Company cannot be reasonably or adequately compensated in money damages in an action at law in the event Employee breaches any obligations under this Section 6, and
(iv) the provisions of this Section 6 are reasonable and necessary to protect the legitimate business interests of the Company. Employee therefore expressly agrees that, in addition to any other rights or remedies which the Company may
have at law or in equity or by reason of any other agreement, the Company shall be entitled to obtain injunctive and other equitable relief in the form of temporary, preliminary and permanent injunctions in the event of any actual or threatened
breach of any such obligation by Employee, and to discontinue any salary, bonus, benefits, or post-termination payments provided hereunder. Nothing in this Agreement shall be construed to prohibit the Company from pursuing any other remedy, and
Employee agrees that the aforementioned equitable remedies are in addition to, not in lieu of, legal remedies, monetary damages or other available forms of relief, and that the remedies of the Company hereunder are cumulative. 

(h) Company. All references to the Company in this Section 6 shall be deemed and construed to include the Company and its
subsidiaries and other Affiliates. 
 (i) Survival of Covenants. This Section 6, and the other terms and conditions of
this Agreement necessary or appropriate to enforce the covenants of Employee in Section 6, shall survive, and shall remain in full force and effect after, the termination of Employee’s employment hereunder. 

(j) Severability. The covenants set forth in this Section 6 shall be deemed severable. In the event that any court
determines that any term, condition, restriction, covenant, provision term, condition, restriction, covenant, provision or any portion thereof is illegal, invalid or unenforceable in any circumstance for any reason, then this determination shall not
have the effect on the legality, validity and enforceability thereof under any other circumstance or of any other term, condition, restriction, covenant, provision of this Section 6 or of the remainder of the portion thereof, which shall remain
in full force and effect to the greatest extent legal, valid and enforceable. 

  
 15 

 Section 7. Representations and Warranties of Employee. Employee represents and
warrants to the Company that (a) Employee has not entered into, is not a party to, is not bound by, and is not otherwise subject to, any contractual, judicial or other restriction, arrangement, agreement, covenant or obligation which is, or
which could reasonably be expected to be, breached or violated by or in conflict or inconsistent with Employee’s execution and delivery of this Agreement and performance of his duties and obligations hereunder, or with the rights of the Company
hereunder, including but not limited to any agreement with any former employer relating to or restricting competition or the use or disclosure of information, and to the knowledge of Employee no other Person has made any allegation or claim, or
threatened to make any allegation or claim, to the contrary, and (b) Employee is under no physical or mental disability or incapacity that would hinder the performance of Employee’s duties under this Agreement. 

Section 8. Assistance in Proceedings. At the request and expense of the Company, upon reasonable notice, Employee shall, at
all times during and after his employment with the Company, furnish such information and assistance the Company as the Company may reasonably request in connection w with any issue, claim, suit, action, suit, litigation, arbitration, regulatory or
governmental investigation or other proceeding in which the Company may be involved. If such a request for assistance occurs after the Date of Termination, then Employee shall only be required to render such assistance to the Company to the extent
Employee can do so without materially adversely affecting Employee’s other business obligations. 
 Section 9. Independent
Covenants of Employee. Employee’s covenants in this Agreement are independent covenants and the existence of any claim by Employee against the Company under this Agreement or otherwise will not excuse Employee’s breach or violation
of, or waive Employee’s obligation to perform, any covenant of Employee in this Agreement. 
 Section 10. Consolidation,
Merger or Sale of Assets. Nothing in this Agreement shall preclude the Company from consolidating with, merging into, or transferring all or substantially all of its assets to another entity which assumes all of the Company’s
obligations and undertakings hereunder. In such event, the term “Company,” as used herein, shall mean the Company (as defined herein), and any such successor or assignee, and Employee’s rights and duties, including his rights to
compensation and the Severance, shall remain in effect thereafter as in effect prior to such transaction. 
 Section 11. Employee
Acknowledgments; Counsel. Employee acknowledges by executing this Agreement and delivering it to the Company that (i) Employee has read all of the terms and conditions of this Agreement, including Employee’s obligations, covenants,
representations and warranties to the Company hereunder; (ii) Employee understands that the covenants of Employee in Section 6 hereof are essential elements of this Agreement, and that the Company would not have entered into this Agreement
without Employee’s agreement to comply with such covenants; (iii) each and every term, covenant and restriction in this Agreement is reasonable and necessary for the proper protection of the Company’s good will and legitimate business
interests; and (iv) Employee has been advised by the Company that Employee should consult with independent counsel of Employee’s choice and have such counsel review this Agreement and render advice thereon to Employee, and Employee has
either done so or voluntarily elected not to do so. 
 Section 12. Withholding. The Company shall have the right to
withhold from any amounts or payments required to be made by the Company hereunder to Employee any taxes and other withholding requirements as the Company may reasonably determine it is required to withhold pursuant to any applicable federal, state
or local law or regulation. 

  
 16 

 Section 13. Section 409A. This Agreement is intended to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”), and shall be construed and administered in accordance with Section 409A. Notwithstanding any other provision of this Agreement, payments
provided under this Agreement may only be made upon an event and in a manner that complies with Section 409A or an applicable exemption therefrom. To the extent either party hereto reasonably determines that any provision of this Agreement
would subject Employee to the excise tax under Section 409A, then the parties agree in good faith to cooperate to reform this Agreement in a manner that would avoid or minimize the imposition of such excise tax on Employee while preserving any
affected benefit or payment, to the extent reasonably practicable. To the extent any payment hereunder required to be made to Employee on account of his separation of service is properly treated as deferred compensation subject to Section 409A,
such payment shall be delayed until the first business day after the expiration of six months from the Date of Termination, at which time the Company shall make a single payment in amount equal to the aggregate amount of payments so delayed.
Notwithstanding the foregoing, the Company makes no representation or warranty that the payments and benefits provided under this Agreement comply with Section 409A and in no event shall the Company be liable for all or any portion of any
taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A. 

Section 14. General Provisions. 

(a) Governing Law; Forum. This Agreement shall in all respects be governed by, and construed in accordance with, the internal
substantive laws of the State of Delaware, without giving effect to any conflict or choice of law principles or rules. Any action, suit or other proceeding seeking to enforce any right, remedy, obligation, duty, covenant or provision of, or arising
out of, this Agreement may be brought and entered against either party hereto in any federal or state court of the State of North Carolina or of the United States located in the State of North Carolina. Each party hereto irrevocably submits to the
personal jurisdiction of any such court and irrevocably waives, to the fullest extent of the law, any objection that it may now or hereafter have to the laying of venue in any such court and any claim that such action, suit or proceeding has been
brought in an inconvenient forum. 
 (b) Amendment. This Agreement may not be amended or modified in whole or in part in any
manner except in a writing which makes reference to this Agreement executed by both parties hereto. 
 (c) Assignment. Neither
the Agreement, nor any rights, obligations or duties hereunder, may be assigned or delegated by either party hereto without the prior written consent of the other party hereto; provided, however, that this Agreement shall inure to the benefit of and
be binding upon the successors and assigns of the Company upon any sale of all or substantially all of the Company’s stock or assets, or upon any merger, consolidation or reorganization of the Company with or into any other Person. As used in
this Agreement, the term “Company” shall be deemed to refer to any such successor or assign of the Company referred to in the preceding sentence. 

(d) Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their
respective successors and permitted assigns. 

  
 17 

 (e) Entire Agreement. 

(i) This Agreement sets forth the entire agreement and understanding of the parties hereto with respect to the subject matter hereof and
supersedes in their entirety all prior and contemporaneous written and oral agreements, arrangements, understandings, negotiations, communications, covenants, representations and warranties among the parties or their Affiliates relating to the
subject matter hereof, including but not limited to that certain Employment and Non-Competition Agreement between Employee and PowerSecure, Inc. and any other offer letters or employment-related agreements. 

(ii) Employee acknowledges that from time to time, the Company may establish, maintain or distribute the employee manuals or handbooks or
personnel policy manuals, and Employees or other representatives of the Company may make written or oral statements relating to personal policies and procedures. Such manuals, handbooks and statements are intended only for general guidance. No
policies, procedures or statements of any nature by or on behalf of the Company (whether written or oral, and whether or not contained in any the employee manual or handbook or personnel policy manual), and no acts or practices of any nature, shall
be construed to modify this Agreement. 
 (f) Notices. Any and all notices, demands, requests, elections and other
communications required or permitted to be given hereunder shall be in writing and shall be deemed to have been duly given (i) upon personal delivery; (ii) upon confirmation of receipt when sent by facsimile transmission; (iii) one
business day after deposit during normal business hours with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt; (iv) five business days after being sent by first class (certified or
registered) mail, postage prepaid, return receipt requested, in each case to the following addresses: 
 If to the Company:

 PowerSecure International, Inc. 

1609 Heritage Commerce Court 

Wake Forest, North Carolina 27587 

Attention: Sidney Hinton 

Telephone: (919) 453-1750 

Facsimile: (919) 453-1768 

Email: shinton@powersecure.com 

With copies to: 

Kegler, Brown, Hill & Ritter Co., L.P.A. 

65 E. State Street, Suite 1800 

Columbus, Ohio 43215 

Attention: Paul R. Hess, Esq. 

Telephone: (614) 462-5400 

Facsimile: (614) 464-2634 

Email: phess@keglerbrown.com 

If to Employee: 

To the Employee at the address set forth on the Signature Page 

  
 18 

 Either party hereto may send any notice, demand, request, election or other communication to the intended
recipient at its address set forth above using any other means (such as expedited courier, messenger service, telecopy, telex, ordinary mail or electronic mail), but no such notice, demand, request or other communication shall be deemed to have been
given until it is actually received by the recipient. Either party hereto may change its or his designated address by giving written notice to all other parties. 

(g) Waiver. The obligations of either party hereunder may be waived only with the written consent of the party or parties
entitled to the benefits the obligations so involved. Any waiver of a breach or violation of or default under any provision of this Agreement shall not be construed or operate as, or constitute, a waiver of any other or subsequent breach or
violation of or default under that provision or any other provision of this Agreement. The failure of either party to insist upon strict compliance with any provision of this Agreement on any one or more occasions shall not be construed or operate
as, or constitute, a continuing waiver of, or an estoppel of that party’s right to insist upon strict compliance with, that provision or any other provision of this Agreement. 

(h) Severability. It is the desire and intend of the parties that the provisions of this Agreement be enforced to the fullest
extent permissible under the laws and public polices applied in each jurisdiction in which enforcement is sought. Accordingly, if any term or provision of this Agreement is determined to be illegal, invalid or unenforceable in any circumstance, then
(i) such term or provision shall be modified or restricted to the extent necessary to make such term or provision valid binding and enforceable in such circumstance so as to give it the maximum effect permitted under applicable law, or if such
term or provision cannot be so modified or restricted, then such provision shall be deemed to be stricken and excised from this Agreement, (ii) all other terms and provisions of this Agreement shall remain in full force and effect binding on
the parties hereto, and (iii) and the application of such term or provision to any other circumstance shall not be affected but shall remain in full force and effect binding on the parties hereto. 

(i) Non-Reliance on Other Parties. Except for statements expressly set forth in this Agreement, no party hereto has made any
statement or representation to any other party regarding a fact relied on by the other party in entering into this Agreement, and no party has relied on any statement, representation or promise of any other party, or of any representative for any
other party, in executing this Agreement in making the agreements provided for in this Agreement. 
 (j) Construction. Employee
and the Company have each participated in the drafting and preparation of this Agreement and have had a reasonable and sufficient opportunity to review this Agreement and in fact have reviewed this Agreement. Accordingly, in the event an ambiguity
or question or intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring either party hereto by virtue of the authorship
of any of the provisions of this Agreement, and any ambiguities in construction shall not be resolved against the drafting party. 
 (k)
Counterparts. This Agreement may be executed in any number of counterparts (including counterparts executed by less than all parties hereto), each of which shall be deemed to be an original, but all of which together shall constitute one
and the same instrument. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. 

  
 19 

 (l) Headings. The headings used herein are solely for convenience of reference and
shall not be given any effect in the construction or interpretation of this Agreement. 
 (m) Remedies Cumulative. No remedy
conferred upon either party to this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and in addition to any other remedy given hereunder or now or hereafter existing at law or in equity.

 (n) Further Assurances. The parties hereto agree to take or cause to be taken all actions, which are necessary, convenient
or desirable in order to effectuate the covenants, rights and obligations contemplated by this Agreement. 
 (o) Interpretation of
Certain Provisions. Except as otherwise expressly provided herein, as used in this Agreement: 
 (i) Any reference to any federal,
state, local or foreign statute or law shall be deemed also to include a reference to all rules and regulations promulgated thereunder. 

(ii) The term “including” means “including, without limitation”. 

(iii) The term “Entity” means and includes a corporation, partnership (general or limited), limited liability company, joint
venture, trust, association, unincorporated organization, governmental or regulatory body or authority, or any other form of business or entity. 

(iv) The term “Person” means and includes an individual and an Entity. 

(v) The term “Affiliate” means and includes, with respect to any Person, any other Person that directly or indirectly
controls, is controlled by or is under common control with such Person, where the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or polices of such
Person, whether through the ownership of voting securities, by contract or otherwise. 
 (vi) The number and gender of each noun and pronoun
and the terms “Person” and “Persons” and the like shall be construed to mean such number and gender as the context, the circumstances or its antecedent may require. 

(vii) The terms “hereof”, “herein”, “hereunder” and words of similar import refer to this
Agreement as a whole, and not to any Section, subsection or clause of this Agreement. 
 (viii) Each reference to a Section means such
Section of this Agreement. 

*    *    *    *    *    *   
 *    *    *    * 

  
 20 

 IN WITNESS WHEREOF, this Employment and Non-Competition Agreement has been executed and delivered
by or on behalf the parties hereto, effective as of the date first above written. 
  

			
	THE COMPANY:
	
	POWERSECURE INTERNATIONAL, INC.
		
	By:	 	/s/ Sidney Hinton
		 	Sidney Hinton, President and CEO
	
	EMPLOYEE:
	
	/s/ Eric Dupont
	Eric Dupont
	
	Address For Notice Purposes:
	
	 
	Street Address
	
	 
	City, State and Zip Code
	
	 
	Telephone Number
	
	 
	Email

  
 21Exhibit 10.1

 

IMMUNOGEN INC.

 

SEVERANCE PAY PLAN

 

AND

 

SUMMARY PLAN DESCRIPTION

 

FOR VICE PRESIDENTS AND HIGHER

 

Effective as of September 17, 2014

 

ImmunoGen, Inc. Severance Pay Plan
 for Vice Presidents and Higher
 Effective as of September 17, 2014

 

 

TABLE OF CONTENTS

 

	
I.
    	
Purpose
    	
1
    
	
 
    	
 
    	
 
    
	
II.
    	
Eligibility
    	
1
    
	
 
    	
 
    	
 
    
	
III.
    	
Severance Benefits
    	
3
    
	
 
    	
 
    	
 
    
	
IV.
    	
Conditions Governing Payment
    	
4
    
	
 
    	
 
    	
 
    
	
V.
    	
Reemployment
    	
5
    
	
 
    	
 
    	
 
    
	
VI.
    	
Plan Continuance
    	
5
    
	
 
    	
 
    	
 
    
	
VII.
    	
Administration of the Plan
    	
5
    
	
 
    	
 
    	
 
    
	
VIII.
    	
Claim and Claim Appeal Procedures
    	
6
    
	
 
    	
 
    	
 
    
	
IX.
    	
Your Rights Under ERISA
    	
7
    
	
 
    	
 
    	
 
    
	
X.
    	
Tax Information
    	
9
    
	
 
    	
 
    	
 
    
	
XI.
    	
Severability
    	
10
    
	
 
    	
 
    	
 
    
	
XII.
    	
General Information
    	
10
    

 

 

IMMUNOGEN INC.

 

SEVERANCE PAY PLAN

 

AND

 

SUMMARY PLAN DESCRIPTION

 

FOR VICE PRESIDENTS AND HIGHER

 

(Effective as of September 17, 2014)

 

I.                                        Purpose

 

The purpose of the ImmunoGen, Inc. Severance Pay Plan for Vice Presidents and Higher (the “Plan”) is to provide, in the sole discretion of ImmunoGen, Inc. (the “Company”), a period of continued income and benefits (“Severance Benefits”) to eligible employees who serve in certain positions as designated by the Company, and whose employment with the Company is involuntarily terminated without Cause (as defined herein).

 

The Plan is designed to be an unfunded “employee welfare benefit plan,” as defined in Section 3(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and, accordingly, the Plan is governed by ERISA.  This document constitutes both the Plan document and the summary plan description required under ERISA.

 

II.                                   Eligibility

 

A.                                    For purposes of this Plan, the term “Eligible Employee” means an employee of the Company:

 

1)                                     who holds the position of Vice President and higher; and

 

2)                                     whose employment with the Company is terminated by the Company without Cause.

 

B.                                    For the avoidance of doubt, unless the Company provides otherwise in writing, Severance Benefits will NOT be paid to an employee:

 

1)                                     terminating employment voluntarily;

 

2)                                     on a leave of absence, whether approved or unapproved;

 

3)                                     terminated by the Company for Cause.  For purposes of this Plan, “Cause” means that the employee has, as determined by the Company in its sole discretion: (i) willfully committed an act or omission that materially harms the Company; (ii) been grossly negligent in the performance of the employee’s duties to the Company; (iii) willfully failed or refused to

 

 

follow the lawful and proper directives of the Chief Executive Officer or the Board of Directors of the Company (the “Board”); (iv) been convicted of, or pleaded guilty or nolo contendere, to a felony; (v) committed an act involving moral turpitude that is or is reasonably expected to be injurious to the Company or its reputation; (vi) committed an act relating to the employee’s employment or the Company involving in the good faith judgment of the Board, material fraud or theft; (vii) breached any material provision of any agreement between the employee and the Company or any nondisclosure or non-competition agreement between the employee and the Company, as all of the foregoing may be amended prospectively from time to time; or (viii) breached a material provision of any code of conduct or ethics policy in effect at the Company, as all of the foregoing may be amended prospectively from time to time (each of the foregoing hereinafter referred to as a “Violation”); provided, however, that if a Violation described in clauses (ii), (vii) or (viii) is susceptible of cure, the employee will be afforded a reasonable period (not to exceed twenty (20) business days) after receiving the initial written notice from the Company of such Violation to substantially cure such Violation prior to the Company taking any action to terminate the employee’s employment for Cause;

 

4)                                     if the employee has been offered another reasonably comparable position with the Company, whether or not the employee accepts such offer; or

 

5)                                     if the employee is entitled to receive severance compensation under the terms of any separate written agreement, including, without limitation, any change in control severance agreement or employment agreement, between the Company and the employee in connection with the termination of the employee’s employment following a change in control of the Company or otherwise.

 

For purposes of clause (4) above, whether an offer is “reasonably comparable” will be determined by the Company in its sole reasonable discretion.  The Company shall, but is not necessarily limited to, consider the following factors in making such determination: (a) the change in commute; (b) a comparison of the offered annual base salary against the employee’s then current annual base salary; and (c) whether the employee is reasonably capable of performing the responsibilities of the position by training or experience.

 

C.                                    Notwithstanding any provisions of this Plan to the contrary, the Company shall not be obligated to pay the employee and the employee shall not be eligible to receive any Severance Benefits set forth in Section III unless the employee executes, delivers, and does not revoke a release of claims in favor of the Company in substantially the form attached hereto as Exhibit A (the “Release”) prior to the sixtieth (60th) day following the date of termination of employment with the Company (the “Termination Date”).

 

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III.                              Severance Benefits

 

Provided that an Eligible Employee satisfies all conditions for receipt in accordance with the terms of this Plan, an Eligible Employee shall be entitled to the following Severance Benefits:

 

A.                                    Severance Pay

 

An Eligible Employee will receive Severance Pay in accordance with the following schedule:

 

	
Chief Executive Officer
    	
 
    	
18 months
    
	
 
    	
 
    	
 
    
	
Executive Officer (as designated by the   Board)
    	
 
    	
12 months
    
	
 
    	
 
    	
 
    
	
Vice President (other than Executive   Officer)
    	
 
    	
6 months
    

 

Severance Pay will be calculated on the basis of the Eligible Employee’s highest annualized base salary in the 12 months preceding the Termination Date.

 

Severance Pay will be paid by means of salary continuation payments commensurate with the Company’s normal payroll cycles, for the duration of the period described above (the “Severance Period”), to commence as soon as practicable following the effective date of the Release, but no later than sixty (60) days following the Termination Date, subject to the provisions of Section II(C) and Section IV.  In case of the death of an Eligible Employee before the completion of all Severance Payments, any remaining Severance Payments will be paid in a lump sum to the beneficiary or beneficiaries as set forth in the Eligible Employee’s beneficiary designation under the Company’s group life insurance program as in effect on the Eligible Employee’s Termination Date, as soon as administratively feasible, but in no event later than sixty (60) days following the Company’s receipt of notice of the Eligible Employee’s death.  If no such beneficiary designation is in effect on the Termination Date, or if no such designated beneficiary(ies) survive the Eligible Employee, the remaining Severance Payments will be paid to Eligible Employee’s estate.

 

B.                                    Annual Bonus

 

1)                                     An Eligible Employee will be entitled to receive a payment equal to his or her annual bonus related to the most recently completed fiscal year, determined in accordance with the terms of the Company’s annual bonus program, if not already paid on or prior to the Termination Date.

 

2)                                     For the fiscal year in which the Eligible Employee’s termination occurs, the Eligible Employee will be entitled to receive 100% of the portion of his or her target annual bonus tied to personal objectives.  With respect to

 

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the portion of the annual bonus tied to corporate objectives, the Eligible Employee will be entitled to receive the same percentage as the other participants in the Company’s annual bonus program.  The foregoing notwithstanding, the annual bonus for the fiscal year in which the Eligible Employee’s termination occurs which the Eligible Employee is entitled to receive as described above will be pro-rated to reflect the actual number of days the Eligible Employee was employed during the applicable fiscal year.

 

Any annual bonus amounts due to the Eligible Employee will be paid to the Eligible Employee at the same time bonuses are paid to other participants in the Company’s annual bonus program.  In case of the death of an Eligible Employee before payment of the annual bonus amounts due to the Eligible Employee, such bonus amounts will be paid to the beneficiary or beneficiaries as set forth in the Eligible Employee’s beneficiary designation under the Company’s group life insurance program as in effect on the Eligible Employee’s Termination Date.  If no such beneficiary designation is in effect on the Termination Date, or if no such designated beneficiary(ies) survive the Eligible Employee, the bonus amounts will be paid to the Eligible Employee’s estate.

 

C.                                    COBRA Premium

 

If an Eligible Employee timely elects to continue medical, dental and/or vision coverage pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”), the Company shall remit to the Eligible Employee a taxable amount on a monthly basis equal to the COBRA Premium for the duration of the Severance Period; provided that the Company shall have no obligation to provide such benefit if the Eligible Employee fails to elect COBRA benefits in a timely fashion or if the Eligible Employee becomes eligible for medical coverage with another employer.

 

IV.                               Conditions Governing Payment

 

A.                                    In addition to the satisfaction of any conditions set forth above, an Eligible Employee will only receive such Severance Benefits if the Company determines that the Eligible Employee has satisfied the following:

 

1)                                     the Eligible Employee must continue to be actively at work through the last day of work designated and as determined by the Company, in its sole discretion, unless the Eligible Employee’s absence is covered by the Company’s paid time off policy, or if the Company, in its sole discretion, has agreed in writing to adjust the Eligible Employee’s last day of work to an earlier date than previously scheduled; and

 

2)                                     the Eligible Employee must have returned all Company property and settled satisfactorily all expenses owed to the Company.

 

4

 

B.                                    Any Severance Benefits to which the Eligible Employee may be entitled will be offset, in the sole discretion of the Company, by any amounts the Eligible Employee may owe the Company, such as pay for time under the Company’s paid time off policy the Eligible Employee may have been advanced but was not earned at the time of termination, unauthorized or un-reconciled business expenses, and the value of any Company equipment in the Eligible Employee’s possession which the Eligible Employee has not returned to the Company.

 

C.                                    Any Severance Benefits to which an Eligible Employee may be entitled shall immediately cease upon the determination by the Company that such Eligible Employee violated the terms of the Release or the Proprietary Information, Inventions and Competition Agreement between the Company and the Eligible Employee.

 

V.                                    Reemployment

 

If rehired by the Company, any Severance Benefits to which an Eligible Employee may be entitled shall cease with the payment for the period ending the day immediately preceding the date of rehire.

 

VI.                               Plan Continuance

 

The Company expects to continue this Plan indefinitely, but reserves the right to amend or terminate the Plan, or any portion of the Plan, at any time in its sole discretion by action of the Board.  Further, the Company, by action of the Board, reserves the right to modify the benefits set forth in this Plan, or to pay such other benefits as it may, in its sole discretion, deem appropriate, in addition to or in lieu of the benefits set forth in this Plan.  Notwithstanding the above, any amendment or modification to the Plan that decreases benefits available under the Plan will apply only to those employees who have a Termination Date after the effective date of such modification or amendment.

 

VII.                          Administration of the Plan

 

The Company, acting through the Chief Human Resources Officer (“CHRO”), shall be the Plan Administrator.  The Plan Administrator shall have sole authority and discretion to administer and construe the terms of this Plan, subject to applicable requirements of law.  Without limiting the generality of the foregoing, the Plan Administrator shall have complete discretionary authority to carry out the following powers and duties:

 

1)                                     to make and enforce such rules and regulations as it deems necessary or proper for the efficient administration of the Plan;

 

2)                                     to interpret and construe the Plan, its interpretations and constructions thereof to be final and conclusive on all persons claiming Severance Benefits under the Plan;

 

5

 

3)                                     to decide all questions, including without limitation, issues of fact, concerning the Plan, including the eligibility of any person to participate in, and receive Severance Benefits under the Plan; and

 

4)                                     to appoint such agents, counsel, accountants, consultants and other persons as may be required to assist in the administration of the Plan.

 

VIII.                     Claim and Claim Appeal Procedures

 

Employees who are eligible for Severance Payments under this Plan will be notified by the Company.  If you believe that you did not receive the Severance Benefits to which you were entitled, you need to make a claim with the Executive Director, Human Resources (“EDHR”). The EDHR will review and make a decision with respect to your claim within 90 days of receipt of your claim, unless the EDHR determines that special circumstances require an extension of time for processing the claim, in which case you will receive a written notice of the extension before termination of the initial 90-day period.  The extension notice will indicate the special circumstances requiring the extension and the date by which the EDHR expects to render the benefit determination.

 

If any claim is denied in whole or in part, you or your beneficiary will receive written notification within 90 days, including the reasons for the denial; reference to the specific Plan provisions on which the denial was based; information about additional material needed to pursue the claim, if any, and why such material is needed; and an explanation of the claim appeal procedure including a statement of your right to bring a civil action under § 502(a) of ERISA following an adverse benefit determination on appeal.  Within 60 days, you or your beneficiary may submit a written request for reconsideration of the claim to the CHRO.

 

You or your representative may submit written comments, documents, records, and other information relating to the claim for Severance Benefits.  Upon request and free of charge, you or your representative may have reasonable access to, and copies of, all documents, records, and other information relevant to your claim for Severance Benefits.

 

The review by the CHRO will take into account all comments, documents, records, and other information you submit relating to the claim, without regard to whether such information was submitted or considered in the initial Severance Benefits determination.

 

The CHRO will make a decision on your appeal within 60 days after the receipt of the appeal.  If the CHRO determines that special circumstances require an extension of time for processing the appeal, you will receive a written notice of the extension before the end of the initial 60-day period.  The extension notice shall indicate the special circumstances requiring the extension and the date by which the Plan expects to render the determination on appeal.

 

If your appeal is denied in whole or in part, you will receive a written notification including the reasons for the denial; reference to the specific Plan provisions on which the denial was based; a statement that you are entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to your claim for Severance Benefits; and a statement describing any voluntary appeal procedures

 

6

 

offered by the Plan and your right to obtain information about such procedures, as well as a statement of your right to bring a civil action under § 502(a) of ERISA.

 

A document, record, or other information is relevant to a claim for Severance Benefits if it:

 

(a)                                 was relied upon in making the Severance Benefits determination;

 

(b)                                 was submitted, considered, or generated in the course of making the Severance Benefits determination, without regard to whether such document, record, or other information was relied upon in making the Severance Benefits determination; or

 

(c)                                  demonstrates compliance with the administrative processes and safeguards in making Severance Benefits determinations.

 

The CHRO will decide whether a hearing will be held on the claim and will notify you at least 14 days before the hearing, if one is to be held.

 

To the extent permitted by law, decisions reached under the claims procedures set forth in this Section VIII shall be final and binding on all parties.  No action (whether at law, in equity or otherwise) shall be brought by or on behalf of any participant or Beneficiary for or with respect to benefits due under this Plan unless the person bringing such action has timely exhausted the Plan’s claim review procedure.  In any such legal action, the claimant may only present evidence and theories which the claimant presented during the claims procedure.  Any claims which the claimant does not in good faith pursue through the review stage of the procedure shall be treated as having been irrevocably waived.  Judicial review of a claimant’s denied claim shall be limited to a determination of whether the denial was an abuse of discretion based on the evidence and theories the claimant presented during the claims procedure.

 

Any action (whether at law, in equity or otherwise) must be commenced within one (1) year and must be brought in a court of competent jurisdiction sitting in [Waltham], Massachusetts.  This one (1) year period shall be computed from the earlier of: (a) the date a final determination denying such benefit, in whole or in part, is issued under the Plan’s claim review procedure; and (b) the date such individual’s cause of action first accrued (as determined under the laws of the Commonwealth of Massachusetts without regard to principles of choice of laws).

 

IX.                              Your Rights Under ERISA

 

As a participant in the Plan you are entitled to certain rights and protections under ERISA.  ERISA provides that all Plan participants shall be entitled to:

 

A.                                    Receive Information About Your Plan and Benefits

 

1)                                     Examine, without charge, at the Plan Administrator’s office and at other specified locations, such as worksites and union halls, all documents governing the Plan, including insurance contracts, and a copy of the latest

 

7

 

annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Employee Benefits Security Administration.

 

2)                                     Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts, and copies of the latest annual report (Form 5500 Series) and updated summary plan description.  The Plan Administrator may make a reasonable charge for the copies.

 

B.                                    Prudent Actions by Plan Fiduciaries

 

In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan.  The people who operate your plan, called “fiduciaries” of the Plan, have a duty to do so prudently and in your interest and that of other Plan participants and beneficiaries.  No one, including your employer or any other person, may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA.

 

C.                                    Enforce Your Rights

 

If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules.

 

Under ERISA, there are steps you can take to enforce the above rights.  For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a federal court.  In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the Plan Administrator.  If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or federal court.  If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a federal court.  The court will decide who should pay court costs and legal fees.  If you are successful, the court may order the person you have sued to pay these costs and fees.  If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous.

 

D.                                    Assistance with Your Questions

 

If you have questions about the Plan, you should contact the Plan Administrator.  If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210.  You may also obtain certain publications about your rights and

 

8

 

responsibilities under ERISA by calling the publications hotline of the Employee Benefits Security Administration.

 

X.                                   Tax Information

 

It is intended that this Plan: (i) be exempt from the requirements of Section 409A of the Internal Revenue Code (the “Code”) of 1986 (“Section 409A”) to the maximum extent possible (under the short-term deferral rules of Treasury Regulation Section 1.409A-1(b)(4)(i) and/or the exemption for involuntary terminations under the separation pay plan rules of Treasury Regulation Section 1.409A-1(b)(9)(iii)).

 

If this Plan is not exempt from the requirements of Section 409A of the Code, or to the extent the Plan is not so exempt, it is intended that the Plan comply with the requirements of Section 409A of the Code and the Plan shall be interpreted, operated and administered accordingly, including:

 

(i)                                     The phrase termination of employment, or any derivation thereof, shall mean a “separation from service” within the meaning of Code Section 409A.

 

(ii)                                  To the extent that this Plan requires that a payment shall be made following the execution of a waiver and release agreement, such payment or payments will only be made if the waiver and release agreement is executed prior to the 60th day following the Termination Date; provided, that if this 60 day period commences in one tax year and ends in the next tax year, no payment which is the subject of such waiver and release agreement may be made or commence (in the case of a series of payments), until the second of the tax years.  The Employee may not designate the year of such payment.

 

(iii)                               To the extent that this Plan provides for the reimbursement of specified expenses incurred by an Eligible Employee, such reimbursement shall be made in accordance with the provisions of this Plan, but in no event later than the last day of the Eligible Employee’s taxable year following the taxable year in which the expense was incurred.  The amount of expenses eligible for reimbursement in any taxable year of the Eligible Employee shall not affect the amount of expenses to be reimbursed or provided in any other year (except in the case of maximum benefits to be provided under a medical reimbursement arrangement, if applicable).

 

(iv)                              Payments in respect of an Eligible Employee’s termination of employment under this Plan are designated as separate payments for purposes of the short-term deferral rules under Treasury Regulation Section 1.409A-1(b)(4)(i)(F) and the exemption for involuntary terminations under separation pay plans under Treasury Regulation Section 1.409A-1(b)(9)(iii).  As a result, (a) any payments that become vested as a result of the Eligible Employee’s termination of employment under this Plan that are made on or before the 15th day of the third month of the later of the calendar year or Company fiscal year following the calendar or fiscal year of the Eligible Employee’s termination of employment, and (b) any additional payments that are made on or before the last day of the second calendar year following the year of the Eligible Employee’s termination of

 

9

 

employment and do not exceed the lesser of two times base salary or two times the limit under Code Section 401(a)(17) then in effect, and (c) the payment of medical expenses within the applicable COBRA period, are exempt from the requirements of Code Section 409A.

 

(v)                                 Notwithstanding any other provision with respect to the timing of payments under Section III, if, at the time of Eligible Employee’s termination, Eligible Employee is deemed to be a “specified employee” (within the meaning of Section 409A, and any successor statute, regulation and guidance thereto) of the Company, then solely to the extent necessary to comply with the requirements of Section 409A, any payments to which Eligible Employee may become entitled under Section III which are subject to Section 409A (and not otherwise exempt from its application) will be withheld until the first (1st) business day of the seventh (7th) month following the Termination Date, at which time Eligible Employee shall be paid an aggregate amount equal to the accumulated, but unpaid, payments otherwise due to Eligible Employee under the terms of Section III.

 

Notwithstanding anything in this Plan to the contrary, the Company does not guarantee the tax treatment of any Severance Benefits under this Plan, including without limitation pursuant to the Code, federal, state or local tax laws or regulations.

 

XI.                              Severability

 

In the case any provision of the Plan is determined to be illegal or invalid for any reason, such illegality or invalidity will not affect the remaining parts of the Plan, but the Plan will be construed and enforced as if such illegal or invalid provision never existed.

 

XII.                         General Information

 

	
Plan Name:
    	
ImmunoGen, Inc.   Severance Pay Plan for Vice Presidents and Higher
    
	
 
    	
 
    
	
Type of Plan:
    	
Severance   Pay Plan - Welfare Plan
    
	
 
    	
 
    
	
Name of Plan Sponsor:
    	
ImmunoGen, Inc.
    
	
 
    	
830 Winter Street
    
	
 
    	
Waltham, MA 02451
    
	
 
    	
(781) 895-0600
    
	
 
    	
 
    
	
Employer I.D. Number:
    	
04-2726691
    
	
 
    	
 
    
	
Plan Number:
    	
5   0 2
    
	
 
    	
 
    
	
Plan Administrator:
    	
ImmunoGen, Inc.
    
	
 
    	
c/o Chief Human Resources Officer
    
	
 
    	
830 Winter Street
    
	
 
    	
Waltham, MA 02451
    

 

10

 

	
Plan   Agent for Service
    	
ImmunoGen, Inc.
    
	
of Legal Process:
    	
c/o General Counsel
    
	
 
    	
830 Winter Street
    
	
 
    	
Waltham, MA 02451
    
	
 
    	
 
    
	
 
    	
Service   of legal process also may be made on the Plan Administrator
    
	
 
    	
 
    
	
Plan Year:
    	
January 1   through December 31
    

 

Adopted effective as of September 17, 2014.

 

 

	
 
    	
IMMUNOGEN   INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Daniel M. Junius
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
President   and CEO
    
	
 
    	
 
    	
 
    
	
 
    	
Date:
    	
September   17, 2014
    

 

11

 

Exhibit A

 

GENERAL RELEASE

 

1.                                      General Release.  In consideration of the payments and benefits to be made under the ImmunoGen, Inc. Severance Pay Plan for Vice Presidents and Higher (the “Plan”),                                          (the “Executive”), with the intention of binding the Executive and the Executive’s heirs, executors, administrators and assigns, does hereby release, remise, acquit and forever discharge ImmunoGen, Inc. (the “Company”) and each of its subsidiaries and affiliates (the “Company Affiliated Group”), their present and former officers, directors, executives, agents, attorneys, employees and employee benefits plans (and the fiduciaries thereof), and the successors, predecessors and assigns of each of the foregoing (collectively, the “Company Released Parties”), of and from any and all claims, actions, causes of action, complaints, charges, demands, rights, damages, debts, sums of money, accounts, financial obligations, suits, expenses, attorneys’ fees and liabilities of whatever kind or nature in law, equity or otherwise, whether accrued, absolute, contingent, unliquidated or otherwise and whether now known or unknown, suspected or unsuspected which the Executive, individually or as a member of a class, now has, owns or holds, or has at any time heretofore had, owned or held, against any Company Released Party in any capacity, including, without limitation, any and all claims (i) arising out of or in any way connected with the Executive’s service to any member of the Company Affiliated Group (or the predecessors thereof) in any capacity, or the termination of such service in any such capacity, (ii) for severance or vacation benefits, unpaid wages, salary or incentive payments, (iii) for breach of contract, wrongful discharge, impairment of economic opportunity, defamation, intentional infliction of emotional harm or other tort and (iv) for any violation of applicable state and local labor and employment laws (including, without limitation, all laws concerning unlawful and unfair labor and employment practices), any and all claims based on the Employee Retirement Income Security Act of 1974 (“ERISA”), any and all claims arising under the civil rights laws of any federal, state or local jurisdiction, including, without limitation, Title VII of the Civil Rights Act of 1964 (“Title VII”), the Age Discrimination in Employment Act (“ADEA”), the Americans with Disabilities Act (“ADA”), Sections 503 and 504 of the Rehabilitation Act the Family and Medical Leave Act, the Massachusetts Fair Employment Practices Act, and any and all claims under any whistleblower laws or whistleblower provisions of other laws.

 

2.                                      No Admissions.  The Executive acknowledges and agrees that this General Release is not to be construed in any way as an admission of any liability whatsoever by any Company Released Party, any such liability being expressly denied.

 

3.                                      Application to all Forms of Relief.  This General Release applies to any relief no matter how called, including, without limitation, wages, back pay, front pay, compensatory damages, liquidated damages, punitive damages for pain or suffering, costs and attorney’s fees and expenses.

 

4.                                      Specific Waiver.  The Executive specifically acknowledges that his acceptance of the terms of this General Release is, among other things, a specific waiver of his rights, claims and causes of action under Title VII, ADEA, ADA, the Massachusetts Fair Employment 

 

A-1

 

Practices Act and any state or local law or regulation in respect of discrimination of any kind; provided, however, that nothing herein shall be deemed, nor does anything herein purport, to be a waiver of any right or claim or cause of action which by law the Executive is not permitted to waive.

 

5.                                      No Complaints or Other Claims.  The Executive acknowledges and agrees that he has not, with respect to any transaction or state of facts existing prior to the date hereof, filed any complaints, charges or lawsuits against any Company Released Party with any governmental agency, court or tribunal.  This General Release does not: (i) prohibit or restrict Executive from communicating, providing relevant information to or otherwise cooperating with the U.S. Equal Employment Opportunity Commission or any other governmental authority with responsibility for the administration of fair employment practices laws regarding a possible violation of such laws or responding to any inquiry from such authority, including an inquiry about the existence of this General Release or its underlying facts, or (ii) require Executive to notify the Company of such communications or inquiry.

 

6.                                      Conditions of General Release.

 

(a)   Terms and Conditions.  From and after the date of termination of employment, the Executive shall abide by all the terms and conditions of this General Release and the terms and any conditions set forth in any employment or confidentiality agreements signed by the Executive, which is incorporated herein by reference.

 

(b)   Confidentiality.  The Executive shall not, without the prior written consent of the Company or as may otherwise be required by law or any legal process, or as is necessary in connection with any adversarial proceeding against any member of the Company Affiliated Group (in which case the Executive shall cooperate with the Company in obtaining a protective order at the Company’s expense against disclosure by a court of competent jurisdiction), communicate, to anyone other than the Company and those designated by the Company or on behalf of the Company in the furtherance of its business, any trade secrets, confidential information, knowledge or data relating to any member of the Company Affiliated Group, obtained by the Executive during the Executive’s employment by the Company that is not generally available public knowledge (other than acts by the Executive in violation of this General Release).  This confidentiality obligation is in addition to, and not in lieu of, any other contractual, statutory and common law confidentiality obligation of the Executive to the Company.

 

(c)   Return of Company Material.  The Executive represents that he has returned to the Company all Company Material (as defined below).  For purposes of this Section 6(c), “Company Material” means any documents, files and other property and information of any kind belonging or relating to (i) any member of the Company Affiliated Group, (ii) the current and former suppliers, creditors, directors, officers, employees, agents and customers of any of them or (iii) the businesses, products, services and operations (including without limitation, business, financial and accounting practices) of any of them, in each case whether tangible or intangible (including, without limitation, credit cards, building and office access cards, keys, computer equipment, cellular telephones, pagers, electronic devices, hardware, manuals, files, documents, 

 

A-2

 

records, software, customer data, research, financial data and information, memoranda, surveys, correspondence, statistics and payroll and other employee data, and any copies, compilations, extracts, excerpts, summaries and other notes thereof or relating thereto), excluding only information (x) that is generally available public knowledge or (y) that relates to the Executive’s compensation or Executive benefits.

 

(d)   Cooperation.  Following the date of termination of employment, the Executive shall reasonably cooperate with the Company upon reasonable request of the Board of Directors and be reasonably available to the Company with respect to matters arising out of the Executive’s services to the Company Affiliated Group.

 

(e)   Nondisparagement.  The Executive acknowledges and agrees that he shall not make any statements that are professionally or personally disparaging about or adverse to the interests of the Company or any Company Released Party, including, but not limited to, any statements that disparage in any way whatsoever the Company’s products, services, businesses, finances, financial condition, capabilities or other characteristics.

 

(f)   Ownership of Inventions, Non-Disclosure, Non-Competition and Non-Solicitation.  The Executive expressly acknowledges and agrees that the Proprietary Information, Inventions, and Competition Agreement executed by him is incorporated herein by reference, and shall survive the execution of this General Release in full force and effect pursuant to its terms.

 

(g)   No Representation.  The Executive acknowledges that, other than as set forth in this General Release and the Plan, (i) no promises have been made to him and (ii) in signing this General Release the Executive is not relying upon any statement or representation made by or on behalf of any Company Released Party and each or any of them concerning the merits of any claims or the nature, amount, extent or duration of any damages relating to any claims or the amount of any money, benefits, or compensation due the Executive or claimed by the Executive, or concerning the General Release or concerning any other thing or matter.

 

(h)   Injunctive Relief.  In the event of a breach or threatened breach by the Executive of this Section 6, the Executive agrees that the Company shall be entitled to injunctive relief in a court of appropriate jurisdiction to remedy any such breach or threatened breach, the Executive acknowledging that damages would be inadequate or insufficient.

 

7.                                      Voluntariness.  The Executive agrees that he is relying solely upon his own judgment; that the Executive is over eighteen years of age and is legally competent to sign this General Release; that the Executive is signing this General Release of his own free will; that the Executive has read and understood the General Release before signing it; and that the Executive is signing this General Release in exchange for consideration that he believes is satisfactory and adequate.

 

8.                                      Legal Counsel.  The Executive acknowledges that he has been informed of the right to consult with legal counsel and has been encouraged to do so.

 

A-3

 

9.                                      Complete Agreement/Severability.  Other than the agreements and/or obligations specifically referenced as surviving herein, this General Release constitutes the complete and final agreement between the parties and supersedes and replaces all prior or contemporaneous agreements, negotiations, or discussions relating to the subject matter of this General Release.  All provisions and portions of this General Release are severable.  If any provision or portion of this General Release or the application of any provision or portion of the General Release shall be determined to be invalid or unenforceable to any extent or for any reason, all other provisions and portions of this General Release shall remain in full force and shall continue to be enforceable to the fullest and greatest extent permitted by law.

 

10.                               Acceptance.  The Executive acknowledges that he has been given a period of twenty-one (21) days within which to consider this General Release, unless applicable law requires a longer period, in which case the Executive shall be advised of such longer period and such longer period shall apply.  The Executive may accept this General Release at any time within this period of time by signing the General Release and returning it to the Company.

 

11.                               Revocability.  This General Release shall not become effective or enforceable until seven (7) calendar days after the Executive signs it.  The Executive may revoke his acceptance of this General Release at any time within that seven (7) calendar day period by sending written notice to the Company.  Such notice must be received by the Company within the seven (7) calendar day period in order to be effective and, if so received, would void this General Release for all purposes.

 

12.                               Governing Law.  Except for issues or matters as to which federal law is applicable, this General Release shall be governed by and construed and enforced in accordance with the laws of the Commonwealth of Massachusetts without giving effect to the conflicts of law principles thereof.

 

IN WITNESS WHEREOF, the Executive has executed this General Release as of the date last set forth below.

 

	
EXECUTIVE
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Date:
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    

 

A-4

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