Document:

exv10w1

Exhibit 10.1

RESTRICTED STOCK AGREEMENT

MAKEMUSIC, INC.

2003 EQUITY INCENTIVE PLAN

     THIS AGREEMENT is made effective as of this _____ day of _______, 20__, by and between
MakeMusic, Inc., a Minnesota corporation (the “Company”), and ________________ (the “Participant”).

WITNESSETH:

     WHEREAS, the Participant on the date hereof is a key employee, officer, director of or
consultant or advisor to, the Company or one of its Subsidiaries;

     WHEREAS, the Company wishes to grant a restricted stock award to the Participant for shares of
the Company’s Common Stock pursuant to the Company’s 2003 Equity Incentive Plan (the “Plan”); and

     WHEREAS, the Administrator of the Plan has authorized the grant of a restricted stock award to
the Participant.

     NOW, THEREFORE, in consideration of the premises and of the mutual covenants herein contained,
the parties hereto agree as follows:

     1. Grant of Restricted Stock Award. The Company hereby grants to the Participant a
restricted stock award (the “Award”) for __________________ (______) shares of Common Stock on the
terms and conditions set forth herein, which shares are subject to adjustment pursuant to Section
14 of the Plan.

     2. Lapse of Risk of Forfeiture of Restricted Stock.

          a. General. Except as provided in Paragraph 3 below, the shares of Common Stock
subject to this Award shall remain forfeitable until the risks of forfeiture lapse as described
herein and according to the following schedule:

     Date                     Number of Shares That Become Freely Tradeable

          b. Termination of Relationship.

          i. Except as provided in Paragraph 3 below, if, prior to the lapse of risk of
forfeiture as to all or any portion of the Award, the Participant ceases to be a key
employee or officer of the Company or any Affiliate for any reason, the Participant shall,
unless otherwise determined by the Administrator, forfeit all shares of Common Stock subject
to this Award which have not become freely tradeable and this Award may, in the
Administrator’s discretion, terminate as of the date of the act giving rise to such
termination.

          ii. Notwithstanding anything herein to the contrary, if any payments to be made to the
Participant hereunder are subject to the requirements of Code Section 409A and the Company
determines that the Participant is a “specified employee” as defined in Code Section 409A as
of the date of the termination, such payments shall not be paid or commence earlier than the
date that is six months after the termination. Any payment not made during the six month
period shall be paid on the first day of the seventh month following termination.

 

 

          c. Issuance of Shares; Rights as a Shareholder. As to freely tradeable shares of
Common Stock issuable pursuant to this Award, the Company shall cause such shares to be issued in
either book entry or certificate form, at the Company’s option. As to shares of Common Stock
issuable pursuant to this Award that remain subject to risks of forfeiture, the Company shall cause
to be issued one or more stock certificates representing such shares of Common Stock in the
Participant’s name. The Company shall hold each such certificate until such time as the risk of
forfeiture and other transfer restrictions set forth in this Agreement have lapsed with respect to
the shares represented by the certificate, or, at the Company’s option, it may initially deliver
such certificates to the Participant, provided that the Participant must return such certificates
to the Company if all or a portion of the shares of Common Stock represented by the certificate are
forfeited as provided herein. The Company may also place a legend on such certificates describing
the risks of forfeiture and other transfer restrictions set forth in this Agreement and providing
for the cancellation of such certificates if the shares of Common Stock are forfeited as provided
in Paragraph 2(b). Until such risks of forfeiture have lapsed or the shares subject to this Award
have been forfeited pursuant to Paragraph 2(b), the Participant shall be entitled to vote the
shares represented by such stock certificates and shall receive dividends attributable to such
shares of Common Stock, but the Participant shall not have any other rights as a shareholder with
respect to such shares.

     3. Change of Control.

          a. Acceleration. Notwithstanding anything in the Plan or this Agreement to the
contrary, in the event of the termination of the Participant’s relationship with the Company in
connection with a Change of Control (as defined below), the risks of forfeiture on this Award shall
immediately and fully lapse upon the effective date of the Change of Control.

          b. Change of Control Defined. For purposes of this Paragraph 3, a “Change of Control”
means:

          i. The consummation of any merger, consolidation, exchange, or reorganization to which
the Company is a party if the individuals and entities who were shareholders of the Company
immediately prior to the effective date of such transaction have, immediately following the
effective date of such transaction, beneficial ownership (as defined in Rule 13d-3 under the
Securities Exchange Act of 1934) of less than fifty percent (50%) of the total combined
voting power of all classes of securities issued by the surviving corporation for the
election of directors of the surviving corporation;

          ii. The shareholders of the Company approve any plan or proposal for the liquidation
of the Company;

          iii. A sale, lease or other transfer of all or substantially all of the assets of the
Company to any person or entity which is not an Affiliate of the Company; or

          iv. The acquisition, without prior approval by resolution adopted by the Board, of
direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934) of securities of the Company representing, in the aggregate, fifty
percent (50%) or more of the total combined voting power of all classes of the Company’s
then-issued and outstanding securities by any person or entity or by a group of associated
persons or entities acting in concert; provided, however, that a Change of Control will not
be deemed to occur if such acquisition is initiated by the Participant or an entity in which
the Participant owns fifty percent (50%) or more of the total combined voting power of all
classes of such entity’s securities, or if the Participant or such entity is a member of the
group of associated persons or entities acting in concert.

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          c. Limitation on Change of Control Payments. The Participant shall not be entitled to
receive any Change of Control Payment, as defined below, which would constitute a “parachute
payment” for purposes of Code Section 280G, or any successor provision, and the regulations
thereunder. In the event any Change of Control Payment payable to the Participant would constitute
a “parachute payment,” the Participant shall have the right to designate those Change of Control
Payments which would be reduced or eliminated so that the Participant will not receive a “parachute
payment.” For purposes of this Paragraph 3(c), a “Change of Control Payment” shall mean any
payment, benefit or transfer of property in the nature of compensation paid to or for the benefit
of the Participant under any arrangement which is considered contingent on a Change of Control for
purposes of Code Section 280G, including, without limitation, any and all of the Company’s salary,
bonus, incentive, restricted stock, stock option, equity-based compensation or benefit plans,
programs or other arrangements, and shall include the acceleration of this Award.

     4. Miscellaneous.

          a. Employment. This Agreement shall not confer on the Participant any right with
respect to continuance of employment by the Company or any of its Subsidiaries, nor will it
interfere in any way with the right of the Company to terminate such employment.

          b. Securities Law Compliance. The Participant may be required by the Company, as a
condition of the effectiveness of this Award, to agree in writing that all Common Stock subject to
this Agreement shall be held, until such time that such Common Stock is registered or otherwise
freely tradable under applicable state and federal securities laws, for the Participant’s own
account without a view to any further distribution thereof, that the certificates for such shares
shall bear an appropriate legend to that effect and that such shares will be not transferred or
disposed of except in compliance with applicable state and federal securities laws.

          c. Mergers, Recapitalizations, Stock Splits, Etc. Except as otherwise specifically
provided in any employment, change of control, severance or similar agreement executed by the
Participant and the Company, pursuant and subject to Section 14 of the Plan and Paragraph 3 hereof,
certain changes in the number or character of the Common Stock of the Company (through sale,
merger, consolidation, exchange, reorganization, divestiture (including a spin-off), liquidation,
recapitalization, stock split, stock dividend or otherwise) shall result in an adjustment,
reduction, or enlargement, as appropriate, in the number of shares subject to this Award. Any
additional shares that are credited pursuant to such adjustment shall be subject to the same
restrictions as are applicable to the shares with respect to which the adjustment relates.

          d. Shares Reserved. The Company shall at all times during the term of this Award
reserve and keep available such number of shares as will be sufficient to satisfy the requirements
of this Agreement.

          e. Withholding Taxes. To permit the Company to comply with all applicable federal and
state income tax laws or regulations, the Company may take such action as it deems appropriate to
ensure that, if necessary, all applicable federal and state payroll, income or other taxes
attributable to this Award are withheld from any amounts payable by the Company to the Participant.
If the Company is unable to withhold such federal and state taxes, for whatever reason, the
Participant hereby agrees to pay to the Company an amount equal to the amount the Company would
otherwise be required to withhold under federal or state law prior to the issuance of a certificate
for the shares of Common Stock subject to this Award. Subject to such rules as the Administrator
may adopt, the Administrator may, in its sole discretion, permit the Participant to satisfy such
withholding tax obligations, in whole or in part, by delivering shares of Common Stock, including
shares of Common Stock received pursuant to this Award for which the risks of forfeiture have
lapsed. Such shares shall have a Fair Market Value equal to the minimum required tax withholding,
based on the minimum

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statutory withholding rates for federal and state tax purposes, including payroll taxes, that are
applicable to the supplemental income attributable to this Award. In no event may the Participant
deliver shares having a Fair Market Value in excess of such statutory minimum required tax
withholding. The Participant’s election to deliver shares or to have shares withheld for this
purpose shall be made on or before the date that the amount of tax to be withheld is determined
under applicable tax law. Such election shall be approved by the Administrator and otherwise
comply with such rules as the Administrator may adopt to assure compliance with Rule 16b-3, or any
successor provision, as then in effect, of the General Rules and Regulations under the Securities
Exchange Act of 1934, if applicable.

          f. Nontransferability. During the lifetime of the Participant, this Award shall not
be transferable, in whole or in part, by the Participant, other than by will or by the laws of
descent and distribution. If the Participant shall attempt any transfer of this Award prior to
such date, such transfer shall be void and this Award shall terminate.

          g. 2003 Equity Incentive Plan. The Award evidenced by this Agreement is granted
pursuant to the Plan, a copy of which Plan has been made available to the Participant and is hereby
incorporated into this Agreement. This Agreement is subject to and in all respects limited and
conditioned as provided in the Plan. All defined terms of the Plan shall have the same meaning
when used in this Agreement. The Plan governs this Award and, in the event of any questions as to
the construction of this Agreement or in the event of a conflict between the Plan and this
Agreement, the Plan shall govern, except as the Plan otherwise provides.

          h. Lockup Period Limitation. The Participant agrees that in the event the Company
advises the Participant that it plans an underwritten public offering of its Common Stock in
compliance with the Securities Act of 1933, as amended, and that the underwriter(s) seek(s) to
impose restrictions under which certain shareholders may not sell or contract to sell or grant any
option to buy or otherwise dispose of part or all of their stock purchase rights of the underlying
Common Stock, the Participant hereby agrees that for a period not to exceed 180 days from the
prospectus, the Participant will not sell or contract to sell or grant an option to buy or
otherwise dispose of this Award or any of the underlying shares of Common Stock without the prior
written consent of the underwriter(s) or its representative(s).

          i. Blue Sky Limitation. Notwithstanding anything in this Agreement to the contrary,
in the event the Company makes any public offering of its securities and determines, in its sole
discretion, that it is necessary to reduce the number of issued but unexercised stock purchase
rights so as to comply with any state securities or Blue Sky law limitations with respect thereto,
the Board of Directors of the Company shall have the right to (i) accelerate the lapse of the risks
of forfeiture for this Award, provided that the Company gives the Participant 15 days’ prior
written notice of such acceleration, or (ii) cancel any portion of this Award or any other award
granted to the Participant pursuant to the Plan which remains subject to risk of forfeiture prior
to or contemporaneously with such public offering. Notice shall be deemed given when delivered
personally or when deposited in the United States mail, first class postage prepaid and addressed
to the Participant at the address of the Participant on file with the Company.

          j. Stock Legend. The Administrator may require that the certificates for any shares
of Common Stock issued to the Participant (or, in the case of death, the Participant’s successors)
under this Agreement shall bear an appropriate legend to reflect the restrictions of this
Agreement; provided, however, that failure to so endorse any of such certificates shall not render
invalid or inapplicable any such restrictions.

          k. Scope of Agreement. This Agreement shall be for and inure to the benefit of the
Company and its successors and assigns and the Participant and any successor or successors of the
Participant permitted by Paragraph 4(f) above.

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          l. Arbitration. Any dispute arising out of or relating to this Agreement or the
alleged breach of it, or the making of this Agreement, including claims of fraud in the inducement,
shall be discussed between the disputing parties in a good faith effort to arrive at a mutual
settlement of any such controversy. If, notwithstanding, such dispute cannot be resolved, such
dispute shall be settled by binding arbitration. Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction thereof. The arbitrator shall be a
retired state or federal judge or an attorney who has practiced securities or business litigation
for at least ten (10) years. If the parties cannot agree on an arbitrator within twenty (20) days,
any party may request that the chief judge of the District Court for Hennepin County, Minnesota
select an arbitrator. Arbitration will be conducted pursuant to the provisions of this Agreement
and the commercial arbitration rules of the American Arbitration Association, unless such rules are
inconsistent with the provisions of this Agreement. Limited civil discovery shall be permitted for
the production of documents and taking of depositions. Unresolved discovery disputes may be
brought to the attention of the arbitrator who may dispose of such dispute. The arbitrator shall
have the authority to award any remedy or relief that a court of this state could order or grant;
provided, however, that punitive or exemplary damages shall not be awarded. The arbitrator may
award to the prevailing party, if any, as determined by the arbitrator, all of its costs and fees,
including the arbitrator’s fees, administrative fees, travel expenses, out-of-pocket expenses and
reasonable attorneys’ fees. Unless otherwise agreed by the parties, the place of any arbitration
proceedings shall be Hennepin County, Minnesota.

          m. Accounting Compliance. The Participant agrees that, if a “transaction” (as defined
in Section 14 of the Plan) occurs, and the Participant is an “affiliate” of the Company or any
Affiliate (as defined in applicable legal and accounting principles) at the time of such
transaction, the Participant will comply with all requirements of Rule 145 of the Securities Act of
1933, as amended, and the requirements of such other legal or accounting principles, and will
execute any documents necessary to ensure such compliance.

          n. Governing Law. This Agreement and all rights and obligations hereunder shall be
construed in accordance with the Plan and governed by the laws of the State of Minnesota.

[Signature page follows]

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed on the day
and year first above written.

	 	 	 	 	 
	 	MAKEMUSIC, INC.

 	 
	 	By:  	 	 
	 	Its: 	 	 
	 	 	 	 
	 
	 	PARTICIPANT

 	 
	
By execution hereof, the

Participant acknowledges having

received a copy of the Plan.

 	 	 

6Exhibit 10.12

Exhibit 10.12

FIRST AMENDMENT

TO

EMPLOYMENT AGREEMENT

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT dated as of March 31, 2011 by and between Veramark
Technologies, Inc. a Delaware corporation with its principal office located at 1565 Jefferson Road,
Suite 120, Rochester, NY 14623 (the “Company”), and Josh Bouk, an individual residing at
XXX XXXXX XXXXX, Rochester, New York 14612 (“Executive”).

WHEREAS, the Company and the Executive entered into an Employment Agreement, dated as of
January 25, 2008 (the “Employment Agreement”); and

WHEREAS, the term of the employment of Employee by the Company under the Employment Agreement
terminated as of the date hereof, March 31, 2011; and

WHEREAS, the parties wish to amend the Employment Agreement so as to extend the term of the
employment of Employee thereunder, to confirm the granting to Employee of certain stock options,
subject to earning and vesting provisions, to increase the compensation payable to Employee and to
add certain other provisions, all as provided herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and
intending to be bound, the parties agree as follows:

1. Amendment of Employment Agreement — Term. In accordance with Section 2. of the
Employment Agreement, the term thereof is extended for a first one-year renewal term, beginning on
April 1, 2011 and ending on March 31, 2012 (the “First Renewal Term”). The provisions of
Section 2 of the Employment Agreement shall otherwise remain in full force and effect.

2. Amendment of Employment Agreement — Base Compensation. Section 3(a) of the
Employment Agreement is amended so as to provide that the Salary (as defined therein) shall be
$157,500.00 during the First Renewal Term. The provisions of Section 3(a) of the Employment
Agreement shall otherwise remain in full force and effect.

3. Amendment of Employment Agreement — Incentive Stock Options. There is added to
section 3 of the Employment Agreement a new subsection 3(c), which shall read in its entirety as
follows:

(c) Stock Options. On April 12, 2011, the Compensation Committee of the Board of
Directors agreed, and this Agreement confirms, that the Company will grant the Executive options to
purchase up to 50,000 shares of the Company’s $.10 par value common stock on and as of the date
that this Agreement is executed. Such options will be non-qualified options, and the exercise
price of such option will be the closing price of such common stock on [April 15, 2011]. Options
to purchase up to 25,000 of such shares will vest based upon achievement of targets set forth in,
and in accordance with, the Company’s management incentive plan for 2011, which shall be
established by the Board of Directors or Compensation Committee of the Company, in its sole
discretion. Options to purchase up to an additional 25,000 of such shares will vest based upon
achievement of targets set forth in, and in accordance with, the Company’s management incentive
plan for 2012, which shall be established by the Board of Directors or Compensation Committee of
the Company, in its sole discretion. Such
options shall have a term of 10 years and shall otherwise be on the terms and conditions contained
in, and shall be subject to, the Company’s 1998 Long Term Incentive Plan.

 

 

 

4. Amendment of Employment Agreement — Severance upon Termination without Cause. The
second sentence of Section 6(c) of the Employment Agreement is amended so as to read in its
entirety as follows: “In addition, and subject to the execution and delivery by Executive of a
severance agreement and release in form and substance satisfactory to the Company, the Company
shall continue to pay Executive the Salary at the rate in effect on the Date of Termination for
period equal to six (6) months from the Date of Termination plus an amount equal to that amount of
the Performance Bonus paid to Executive for the prior calendar year pro-rated to the Date of
Termination.”

5. Amendment of Employment Agreement — Change of Control. There is added a new
Section 6A to the Employment Agreement, which shall read in its entirety as follows:

6A. Change of Control.

(a) Definition. For purposes of this Employment Agreement, a “Change of Control” shall mean:

(i) the approval by the stockholders of the Company, and the completion of the transaction
resulting from such approval, of (A) the sale or other disposition of all or substantially all the
assets of the Company or (B) a complete liquidation or dissolution of the Company;

(ii) the approval by the stockholders of the Company, and the completion of the transaction
resulting from such approval, of a merger, consolidation, reorganization or similar corporate
transaction, whether or not the Company is the surviving corporation in such transaction, in which
the outstanding shares of common stock of the Company are converted into (A) shares of stock of
another company, other than a conversion into shares of voting common stock of the successor
corporation (or a holding company thereof) representing fifty percent (50%) or more of the voting
power of all capital stock thereof outstanding immediately after the merger or consolidation or (B)
other securities (of either the Company of another company) or cash or other property;

(i) pursuant to an affirmative vote of a holder or holders of seventy five percent (75%) of
the capital stock of the Company entitled to vote on such a matter, the removal of a majority of
the individuals who are at that time members of the Board of Directors; or

(ii) the acquisition by any entity or individual of one hundred percent of the capital stock
of the Company.

Notwithstanding the foregoing, it is understood by the parties to this Agreement that a
“Change of Control” shall not include any transaction the purpose of which is to reorganize the
Company’s corporate structure, reincorporate the Company in another jurisdiction or undertake any
other action which does not materially affect the ownership and control of the Company at the time
of such transaction.

 

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(b) For purposes of this Section 6A, the following terms shall have the following meanings:

(i) Termination for Cause. Termination of Executive’s employment by the Company shall be
deemed to have been “for cause” if such termination shall be the result of the Executive’s:

a. willfully engaging in conduct which is materially injurious to the Company;

b. willful fraud or material dishonesty in connection with his performance hereunder;

c. deliberate or intentional failure to substantially perform his duties hereunder that
results in material harm to the Company;

d. the conviction for, or plea of nolo contendere to a charge of, commission of a felony; or

e. the continuous and habitual failure by the Executive to substantially perform his duties
under this Agreement.

(ii) Termination for Good Reason. Termination of his employment with the Company by the
Executive shall be deemed to have been for “good reason” if such termination is made in the
following cases:

a. a material diminution during the Employment Period in the Executive’s duties,
responsibilities or title as set forth in Section 1 hereof;

b. a breach by the Company of the compensation and benefits provisions set forth in Section 3
hereof;

c. a material breach by the Company of any of the terms of this Agreement, other than as
specifically provided herein; or

d. the relocation of Executive’s principal place of business at the request of the Company
beyond 50 miles from its current location

(c) Vesting of options upon a Change of Control. Notwithstanding anything to the contrary in
any stock option contract between the Company and the Executive or in any stock option plan or
similar plan of the Company, upon the occurrence of a Change of Control, all options held by the
Executive which shall not yet have vested will vest and become immediately exercisable. After such
a Change of Control, the Executive’s options shall remain exercisable for the period remaining
under the relevant stock option contract and shall not have a shortened period of exercisability as
a result of the Change of Control.

(d) Severance upon a Change of Control. If the Executive’s employment is terminated within
one year of a Change of Control for any reason other than by the Company for “cause” or by the
Executive’s resignation without “good reason”, the Executive shall be entitled to receive the Base
Salary for a period of six (6) months from the effective date of such termination and shall receive
all such benefits as the Executive was receiving immediately prior to the effective date of such
termination for the same six (6) month period.

 

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6. Miscellaneous.

(a) Entire Agreement. The Agreement and the Employment Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof This Employment Agreement may
not be changed, modified or amended other than by a further written agreement signed by both
parties hereto. Except as expressly modified hereby, the Employment Agreement shall remain in full
force and effect in accordance with its terms.

(b) No Waiver. The failure or omission of either party to insist, in any instance,
upon strict performance by the other party of any term or provision of this Agreement or the
Employment Agreement or to exercise any of such party’s rights hereunder shall or thereunder shall
not be deemed to be a modification of any term hereof or a waiver or relinquishment of the future
performance of any such term or provision by such party, nor shall such failure or omission
constitute a waiver of the right of such party to insist upon future performance by the other party
of any such term or provision.

(c) Governing Law. This Agreement shall be governed by, and shall be construed and
interpreted in accordance with, the laws of the State of New York, without giving effect to any
choice of law doctrine.

(e) Assignment. This Agreement shall inure to the benefit of, and bind, the parties
hereto and their respective successors and assigns.

(f) Headings and Counterparts. Headings are inserted for reference purposes only and
shall not affect the interpretation or meaning of this Agreement. This Agreement may be executed in
several counterparts, each of which shall be deemed to be an original but all of which, together,
will constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the Company by its duly
authorized officer, as of the date set forth above.

	 	 	 	 	 
	 	VERAMARK TECHNOLOGIES, INC,

 	 
	 	By:  	/S/ Anthony C. Mazzullo
 	 
	 	 	Name:  	Anthony C. Mazzullo 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 	 	 
	 	  	                     /S/ Joshua Bouk
 	 
	 	 	Name:  	Joshua Bouk 	 

 

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