Document:

f8k121709ex10i_windtamer.htm

    Exhibit
10.1

     

     

    EMPLOYMENT
AGREEMENT

     

    This EMPLOYMENT AGREEMENT (the
“Agreement”)
is dated as of December 17, 2009 (the “Effective
Date”) between WINDTAMER
CORPORATION, a New York corporation (the “Company”),
and Mr. Mark Matthews (“Mr.
Matthews” or “Executive”).

    

    R
E C I T A L S:

     

        WHEREAS, the
Company is in the business of developing, manufacturing, licensing and selling
wind turbines;

     

        WHEREAS, the
Company desires to engage Mr. Matthews as its Vice President of Sales and
Marketing on the terms and conditions set forth herein;

     

        WHEREAS,
amounts paid pursuant to this Agreement are intended to qualify as
performance-based compensation under Section 162(m) of the Internal Revenue Code
(“Code”); and

     

        WHEREAS,
Matthews desires to accept such employment on the terms and conditions set forth
herein.

    

    P
R O V I S I O N S:

     

        NOW,
THEREFORE, in consideration of the mutual promises and covenants set
forth herein, the parties agree as follows:

    

    1.           Employment;
Duties.

     

    (a)           The
Company hereby agrees to employ Mr. Matthews as its Vice President of Sales and
Marketing.  Mr. Matthews hereby accepts such
employment.  Mr. Matthews will report to the Company’s President until
April 15, 2010, after which Mr. Matthews shall report to the Company’s Chief
Executive Officer.  Mr. Matthews will perform those duties and have
such authority and powers as are customarily associated with his position of
Vice President of Sales and Marketing and such other duties as the President of
the Company may reasonably request from time to time.

     

    (b)           Mr.
Matthews shall be employed on a full time basis and shall devote substantially
all of his professional business time to the performance of his
duties.  Mr. Matthews shall be based in the Rochester metropolitan
area, or such other mutually agreeable location.

     

    2.           Term.       The
term (the “Term”) of
this Agreement shall commence on December 17, 2009 (the “Start
Date”), and shall continue for three (3) years from the Start Date unless
otherwise terminated as provided herein (together with any Renewal Term, as
hereafter defined, shall be referred to as the “Term”).   This
Agreement shall automatically be extended for successive one (1) year terms
pursuant to the terms and conditions of this Agreement (each, a “Renewal
Term”), unless otherwise terminated by written notice from one party to
the other no less than sixty (60) days prior to the end of the Term or any
subsequent Renewal Term.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.           Compensation.

     

    (a)           Annual
Salary.  In consideration for the services rendered by Mr.
Matthews on behalf of the Company during the Term, the Company shall pay Mr.
Matthews, commencing on the Start Date, an annual salary of $175,000 (the “Base
Salary”), payable in accordance with the Company’s regular payroll
practices.  All forms of compensation referred to in this Agreement
are subject to withholding for applicable federal, state and local
taxes.

     

    (b)           Commission.   In
addition to his Base Salary, Mr. Matthews shall receive commission payments
equal to five percent (5%) of all sales of the Company recorded during calendar
year 2010 with mutually agreed upon margin requirements on such
sales.  The commission structure of Mr. Matthews for calendar year
2011 and beyond shall be reasonably adjusted by the Chief Executive Officer of
the Company.   Commission payments shall be paid to Mr. Matthews
on a quarterly basis via the Company’s regular payroll within two weeks after
the Company releases its financial results on Form 10-Q or Form 10-K for the
applicable quarter.

     

    (c)           Stock Options. On the
Start Date, Mr. Matthews shall be issued pursuant to the Company’s 2008 Equity
Incentive Plan stock options to purchase 150,000 shares of the Company’s Common
Stock with an exercise price equal to the last trade of the common stock on the
Effective Date, which shall vest 50,000 shares on the first anniversary of the
Start Date, 50,000 on the second anniversary of the Start Date and 50,000 on the
third anniversary of the Start Date.

     

    (d)           Restricted
Stock.  On the Start Date, Mr. Matthews shall be issued
pursuant to the Company’s 2008 Equity Incentive Plan 25,000 shares of restricted
stock which shall vest in full on January 5, 2010.

     

    4.           Benefits.  In
addition to the compensation set forth above, the Company shall provide Mr.
Matthews with the following benefits during the Term:

     

    (a)           Mr.
Matthews shall be entitled to four (4) weeks of vacation during each
calendar year (pro-rated for any partial calendar year) that he is employed
hereunder during which vacation his annual salary shall be paid in
full.  Any vacation not taken by Mr. Matthews shall not carryover into
the succeeding year.  All unused and accrued vacation shall be paid to
Mr. Matthews (or his estate) upon Mr. Matthews’ termination of
employment.  Such vacation may only be taken at such time or times as
are not inconsistent with the reasonable business needs of the
Company.

     

    (b)           The
Company shall provide Mr. Matthews with up to 5 days of paid sick leave each
calendar year (pro-rated for any partial calendar year); unused sick days shall
not carryover into the succeeding year.  The Company also shall
provide Mr. Matthews with holiday pay as provided by the Company to its other
executives.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c)           
The Company shall make available family medical insurance for Mr. Matthews under
the medical insurance plan provided to other executives of the Company or a
substantially similar plan. In addition, Mr. Matthews and his dependents shall
be entitled to participate in such other benefits as may be extended to active
employees of the Company and their dependents including retirement,
profit-sharing, 401(k), group insurance, hospitalization, medical or other
benefits made available by the Company to its employees
generally.  Further, in the event that the Company desires to obtain
“key man” life insurance on the life of Mr. Matthews during the Term, Mr.
Matthews shall cooperate with the Company in obtaining such
insurance.

     

                5.           Expenses.  Mr.
Matthews will be entitled to be paid or reimbursed for all expenses reasonably
incurred by him in connection with Mr. Matthews's responsibilities to the
Company, including, without limitation, for travel, lodging, food, and
entertainment.

     

    6.           Confidential
Information. Mr. Matthews shall not, during the Term or at anytime during
the five (5) years after termination of his employment, disclose, except as
required or necessary in the course of his employment by the Company or as
otherwise authorized by the Company, any Confidential Information (as defined
herein).  “Confidential
Information” shall mean any information existing as of the date of this
Agreement, or thereafter developed, in which the Company has a proprietary
interest, including, but not limited to, information relating to its patents,
technology, research and development, technical data, trade secrets, know-how,
products, services, finances, operations, sales and marketing, customers and
customer information, licenses, orders for the purchase or sale of products,
personnel matters and/or other information relating to the Company, whether
communicated orally, electronically or in writing, or otherwise obtained by Mr. Matthews as a result
of his employment, or through observation or examination of the Company’s
business.

    

    7.           Non-Competition
Covenant; Non Solicitation Covenant.

     

    (a)           During
the Term and for a period of one year thereafter, Mr. Matthews agrees that he
will not, directly or indirectly (including, without limitation, whether as
consultant, an officer, employee or director), engage in any business that
manufactures, sells, designs, develops or distributes of wind turbines, or any
business similar to the business in which the Company or similar to those
operated or provided by the Company at such time.

     

    (b)           Notwithstanding
anything herein to the contrary, Mr. Matthews shall not be prevented or limited
from (i) investing in the stock or other securities of any corporation whose
stock or securities are publicly owned and regularly traded on any public
exchange, (ii) serving as a director, officer or member of professional, trade,
charitable and civic organizations, or (iii) passively investing (not to exceed
being a beneficial owner of more than 1% of the outstanding Common Stock) his
assets in such a form and manner as will not conflict with the terms of this
Agreement and will not require services (whether as consultant, an officer,
employee or director) on the part of Mr. Matthews in the operation of the
business of the entities in which such investments are made.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (c)           In
furtherance of the foregoing, Mr. Matthews shall not, during the aforesaid
period of non-competition as provided in Section 7(a), directly or indirectly,
in connection with any business involved in the manufacture, sale, design,
development or distribution of wind turbines, or any business similar to the
business in which the Company was engaged, or in the process of developing
during Mr. Matthews’s tenure with the Company, solicit any customer or employee
of the Company who was a customer or employee of the Company during the tenure
of his employment.

     

    (d)           Mr.
Matthews agrees that the prohibitions contained herein are reasonable and
valuable to the Company, and are express conditions of the Company’s decision to
employ him. If any court shall hold that the duration, scope or any other
provision of non-competition or any other restriction contained in this Section
7 is unenforceable, it is our intention that same shall not thereby be
terminated but shall be deemed amended to delete therefrom such provision or
portion adjudicated to be invalid or unenforceable or, in the alternative, such
judicially substituted term may be substituted therefore.

    

    8.           Termination
of Agreement.  This Agreement shall terminate upon the
occurrence of the following events:

    

    (a)           This
Agreement shall terminate upon Executive’s death.

     

    (b)           The
Company may terminate this Agreement upon Executive’s “total disability” (“Disability”),
which shall mean incapacity due to physical or mental illness or disability,
which renders him absent, or unable to perform his duties hereunder on a full
time basis for a period of six (6) months, whether consecutive or cumulative,
within any twelve (12) month period.

     

    (c)   The
Company may terminate this Agreement for “Good Cause” as defined below upon
thirty (30) days prior written notice to Executive, which notice shall specify
the reason(s) for termination.  For purposes of this Agreement, “Good
Cause” means (i) willful disobedience by the Executive of a material and
lawful instruction of the Board of Directors or the Chief Executive Officer of
the Company; (ii) conviction of the Executive of any misdemeanor involving fraud
or embezzlement or similar crime or any felony; (iii) an order is entered by the
Securities and Exchange Commission, a state regulatory agency or an exchange on
which the Company’s securities are traded finding that Executive has violated
the securities laws; (iv) breach by the Employee of any material term, condition
or covenant of this Agreement; (v) excessive absences from work, other than for
illness or Disability, in the case of breach which is capable of being cured, is
not cured within thirty (30) days after Company has provided Executive with
written notice thereof.

    

    (d)   Executive
may terminate this Agreement upon sixty (60) days prior written notice to the
Company.

    

    (e)   This
Agreement may be terminated upon the mutual agreement of Company and
Executive.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    
      	
              9.

            	
                  Obligations Following Termination of
      Agreement.

            

    

     

    (a)   If this
Agreement is terminated pursuant to Section 8, the Company shall have no
obligation to pay any Severance Payments (as defined below) or benefits to
Executive; provided, however, Company shall be obligated to pay Executive (or in
the case of his death, his spouse, estate or representative) all unpaid salary,
earned bonuses, vacation and other benefits accrued through the date of
termination of this Agreement and shall provide such other benefits, such as
health insurance continuation in the manner required by Section 4980B of
the Code or other applicable law (“COBRA
Coverage”).

    

    (b)   If this
Agreement is terminated by Company without “Good Cause” as defined in Section
8:

    

    (i)   Executive
shall be paid all unpaid salary, earned bonuses, vacation and other benefits
accrued through the date of termination and shall receive such other benefits,
as may be required by statute, such as health insurance continuation coverage
under COBRA;

    

    (ii)   Executive
shall receive as severance payment an amount equal to the Executive’s annual
salary at the rate in effect as of the date of Executive’s termination for the
remainder of the Term; provided, however, the aggregate amount of such severance
payments shall not be less than two times the Executive’s annual
salary.  Any severance payments are payable on normal pay dates during
the remainder of the Term in accordance with the Company’s pay policies in
effect prior to termination date.  In addition, for the twelve (12)
month period immediately after the termination of this Agreement, Company shall
continue to provide and pay the premium for the health insurance provided to
Executive (and his family, if applicable) immediately prior to the termination
of this Agreement and the Company shall take such actions as are necessary to
cause such COBRA Coverage not to be offset by the provision of benefits under
this Section 9(b)(ii) and to cause the period of COBRA Coverage under the
Company’s health insurance to commence at the end of the twelve (12) month
period. The Executive shall be responsible for the payment of any COBRA premium
during the subsequent continuation period (collectively, the payments under this
clause (ii) are referred to as “Severance
Payments”);

    

    (iii)   Executive
shall not be required to mitigate damages of the amount of any salary
continuation payments provided for under this Section by seeking other
employment or otherwise, nor shall the amount of any payments provided for under
this Section be reduced by any compensation earned by Executive as a result of
employment by another employer or by any self employment after the date of
termination;

     

    (iv)   All
options for Company capital stock and restricted stock granted to Executive
pursuant to the Company’s 2008 Equity Incentive Plan including, without
limitation, those granted pursuant to Section 3(c) hereof, or otherwise, that
remain unvested shall immediately vest, and Executive shall have a period of 120
days following termination to exercise his vested options, subject to the
provisions of the Company’s 2008 Equity Incentive Plan and applicable IRS
regulations (provided that any delays in payment or settlement set forth in such
grant or award agreements that are required under Section 409A of the Code
shall remain effective).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (c)   Upon the
termination of this Agreement for any reason, any and all restrictions (other
than restrictions which are the result of applicable Federal securities laws and
regulations and those restrictions which Executive has entered into with a third
party on a contractual basis) on the transfer of shares of Company’s capital
stock then owned by Executive (which shall include any and all option shares
unvested at the time of the termination) shall be terminated as of the date of
termination of this Agreement.

    

    (d)   All of
the obligations of the Company set forth in this Section 9 are contingent upon
the Executive complying with the provisions of section 6 (Confidential
Information) and Section 7 (Non-Competition Covenant; Non Solicitation
Covenant).  In the event that Executive does not comply with the
aforementioned sections of this Agreement, then Company shall not be obligated
to provide Executive with any of the benefits set forth in this Section
9.

    

    (e)   Notwithstanding
the foregoing provisions of this Section 9 or anything in this Agreement to
the contrary, the Medical Benefits that are not non-taxable medical benefits,
“disability pay” or “death benefit” plans within the meaning of Treasury
Regulation Section 1.409A-1(a)(5) shall be provided and administered in a
manner that complies with Treasury Regulation Section 1.409A-3(i)(1)(iv),
which requires that (i) the amount of such benefits provided during one
taxable year shall not affect the amount of such benefits provided in any other
taxable year, except that to the extent such benefits consist of the
reimbursement of expenses referred to in Section 105(b) of the Code, a
maximum, if provided under the terms of the plan providing such Medical Benefit,
may be imposed on the amount of such reimbursements over some or all of the
period in which such benefit is to be provided to the Executive, as described in
Treasury Regulation Section 1.409A-3(i)(iv)(B), (ii) to the extent
that any such benefits consist of reimbursement of eligible expenses, such
reimbursement must be made on or before the last day of the Executive’s taxable
year following the taxable year in which the expense was incurred and
(iii) no such benefit may be liquidated or exchanged for another
benefit.

     

    10.           Indemnification.
The Company shall, to the maximum extent permitted by law, indemnify and hold
harmless Mr. Matthews against any and all damages, liabilities and expenses,
including, without limitation, reasonable attorneys’ fees, judgments, fines,
expenses, fees, losses, claims, settlements, and other amounts actually and
reasonably incurred in connection with any actual or threatened action, suit or
proceeding, whether civil, criminal, arbitrational, administrative or
investigative, arising by reason of Mr. Matthews’s employment by, or provision
of services to, the Company other than the willful violation of law by Mr.
Matthews.  The Company agrees to obtain Directors and Officers
Liability insurance, and to include Mr. Matthews in the coverage of this policy
during the term of this Agreement and for a period of two (2) years
thereafter.  The Company shall promptly advance, prior to the final
disposition of any proceeding, promptly following request therefor, all fees and
expenses incurred by Executive in connection with such action, suit or
proceeding upon receipt of an undertaking by or on behalf of Executive to repay
said amounts if it shall be determined ultimately that Executive is not entitled
to be indemnified under the provisions of this Agreement.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    12.           Work-for
Hire.  Except as otherwise may be agreed by the Company in
writing, in consideration of the employment of Mr. Matthews by the Company, and
free of any additional obligations of the Company to make additional payment to
him, Mr. Matthews agrees to irrevocably assign to the Company any and all
inventions, software, manuscripts, documentation, improvements or other
intellectual property whether or not protected by any state or federal laws
relating to the protection of intellectual property, relating to the present or
future business of the Company that are developed by Mr. Matthews prior to the
termination of his employment with the Company, either alone or jointly with
others, and whether or not developed during normal business hours or arising
within the scope of his/her duties of employment.  Mr. Matthews agrees
that all such inventions, software, manuscripts, documentation, improvement,
trade secrets or other intellectual property shall be and remain the sole and
exclusive property of the Company and shall be deemed the product of work for
hire.  Mr. Matthews hereby agrees to execute such assignments and
other documents as the Company may consider appropriate to vest all right, title
and interest therein to the Company and hereby appoints the Company as Mr.
Matthews’s attorney-in-fact with full powers to execute such document itself in
the event Mr. Matthews fails or is unable to provide the Company with such
signed documents.  This provision does not apply to an invention for
which no equipment, supplies, facility, or intellectual property or trade secret
information of the Company was used and which was developed entirely on Mr.
Matthews’ own time, unless (a) the invention relates (i) to the business of the
Company, or (ii) to the Company’s actual or demonstrably anticipated research or
development, or (b) the invention results from any work performed by Mr.
Matthews for the Company.

    

    13.           Miscellaneous.

    

    (a)           This
Agreement:

     

    (i)           shall
constitute the entire agreement between the parties hereto and supersedes all
prior agreements, written or oral, concerning the subject matter herein between
the Company and the Mr. Matthews and there are no oral understandings,
statements or stipulations bearing upon the effect of this Agreement which have
not been incorporated herein;

    

    (ii)           may
be modified or amended only by a written instrument signed by each of the
parties hereto;

    

    (iii)           shall
bind and inure to the benefit of the parties hereto and their respective heirs,
successors and assigns;

     

    (iv)           may
not be assigned by either party without a written agreement signed by all
parties hereto.  Any assignment not signed by all parties is null and
void; and

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (b)           If
any provision of this Agreement shall be held invalid or unenforceable by
competent authority, such provision shall be construed so as to be limited or
reduced to be enforceable to the maximum extent compatible with the law as it
shall then appear.  The total invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions
hereof and this Agreement shall be construed in all respects as if such invalid
or unenforceable provision were omitted.

     

    (c)           This
Agreement shall be construed in accordance with and governed by the laws of the
State of New York without reference to conflict of laws
principles.  Any litigation involving this Agreement shall be
adjudicated in a court with jurisdiction located in Monroe County, New York and
the parties irrevocably consent to the personal jurisdiction and venue of such
court.

     

    (d)           All
notices and other communications under this Agreement must be in writing and
must be given by personal delivery or first class mail, certified or registered
with return receipt requested, or by overnight currier service and will be
deemed to have been duly given upon receipt if personally delivered, five (5)
days after mailing, if mailed, or upon delivery if sent by overnight courier
service, to the respective persons named below:

    

    If to the Company:

    

    WindTamer
Corporation

    Attn:  Chief
Executive Officer

    156 Court
Street

    Geneseo,
NY 14454

    

    If to Mr. Matthews:

    

    8 Chablis
Drive

    Fairport,
NY 14450-4609

    

    Any party
may change such party’s address for notices by notice duly given pursuant to
this Section.

     

    (e)           This
Agreement may be executed simultaneously in one or more counterparts, each one
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  The parties may execute this Agreement
by facsimile signature.

     

    (f)           Failure
of either party at any time to require performance of any provision of this
Agreement shall not limit the party’s right to enforce the provision, nor shall
any waiver of any breach of any provision be a waiver of any succeeding breach
of any provision or a waiver of the provision itself for any other
provision.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (g)           If
any provision of this Agreement, or the application of such provision to any
person or circumstance, shall be held invalid, the remainder of this Agreement,
or the application of such provision to persons or circumstances other than
those as to which it is held invalid, shall not be affected
thereby.

    

    (h)           THE
PARTIES ACKNOWLEDGE THAT MR. MATTHEWS AND THE COMPANY HAVE EACH BEEN ADVISED
THAT IT IS IMPORTANT FOR EACH OF THEM TO SEEK SEPARATE LEGAL ADVISE AND
REPRESENTATION IN THIS MATTER.

    

    

    [Signature
Page Follows]

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

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

    

    WINDTAMER
CORPORATION

    

    By:          /s/ Gerald
Brock

    Name: Gerald Brock

         
Title:   Chief Executive Officer

    

    

    /s/ Mark
Matthews

    Mark
Matthews

     

     

     

    10f8k121709ex10ii_windtamer.htm

     

    
      

      Exhibit
10.2

       

      WINDTAMER
CORPORAION

      2008
EQUITY INCENTIVE PLAN

       

      RESTRICTED
STOCK AGREEMENT

       

       

      
        
          
            

          

        

         

        

      

      Mr. Mark
Matthews

      8 Chablis
Drive

      Fairport,
NY 14450-4609

      

      This
Agreement confirms the grant of Restricted Stock to you effective as of December 17, 2009 (the
“Effective Date”) under the WindTamer Corporation 2008 Equity Incentive Plan, as
may be Amended and Restated (the “Plan”), upon the terms and conditions
described herein.

       

      1. Grant of Restricted
Stock.  Pursuant to action of the Compensation Committee of the
Board of Directors, WindTamer Corporation (the “Company”) hereby grants you
under the Plan an aggregate of 25,000 shares of Restricted
Stock of the Company’s Common Stock (the “Restricted Shares”), subject to the
terms and conditions hereinafter set forth and as set forth in that certain
Employment Agreement, dated as of December 17, 2009, between you and the Company
(the “Employment Agreement”). To the extent that there is any inconsistency
between the Employment Agreement and the terms of this Agreement, the terms of
the Employment Agreement shall govern.

       

      2. Closing.  The
transfer of the Restricted Shares shall occur simultaneously with the execution
of this Agreement. Concurrently with the execution of this Agreement, the
Company may issue one or more certificates in physical form or book entry
representing the Restricted Shares (which, in the case of physical certificates,
shall be held by the Company pursuant to paragraph 6 below until the applicable
Restrictions (as defined in paragraph 3 below) have lapsed).

       

      3. Restrictions.  The
Restricted Shares are being awarded to you subject to (i) the transfer and
forfeiture restrictions set forth in this paragraph 3 below (the
“Restrictions”), which shall lapse after the expiration of the vesting periods
described in paragraph 4 below, (ii) satisfaction of the tax withholding
requirements set forth in paragraph 8 below, and (iii) compliance with the
Company’s Insider Trading Policy.

       

      (a) Transfer.  You may
not directly or indirectly, by operation of law or otherwise, voluntarily or
involuntarily, alienate, attach, sell, assign, pledge, encumber, charge or
otherwise transfer any of the Restricted Shares still subject to Restrictions,
except for such assignments as are allowed under the Plan, provided that, in all
cases, such transferee executes a written consent to be bound by the terms of
this Agreement.

       

      (b) Forfeiture.  Subject
to exceptions as may be determined by the Compensation Committee of the Board of
Directors, if your continuous employment or consulting relationship with the
Company or any majority-owned subsidiary of the Company shall terminate for any
reason, all Restricted Shares for which the Restrictions have not lapsed at such
time shall be returned to or canceled by the Company, and shall be deemed to
have been forfeited by you. Upon a forfeiture of your Restricted Shares, the
Company will not be obligated to pay you any consideration whatsoever for the
forfeited Restricted Shares.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      4. Lapse
of Restrictions.

       

      (a) The
Restrictions shall lapse to the extent the Restricted Shares have become vested,
as follows:  all of the shares shall vest in full on January 5,
2010.

       

      (b) All of
the Restricted Shares shall become vested and the Restrictions shall lapse with
respect to any unvested Restricted Shares upon a Change in Control (as defined
in the Plan).

       

      (c) All of
the Restricted shall become vested and the Restrictions shall lapse with respect
to any unvested Restricted Shares as provided in Section 9 of the Employment
Agreement.

       

      (d) To the
extent the Restrictions shall have lapsed under this paragraph 4 with respect to
any portion of the Restricted Shares, those shares (“Vested Shares”) will be
free of the terms and conditions of this Agreement except those terms and
conditions contained in paragraph 8 below; provided, however, that such Vested
Shares shall remain subject to the terms and conditions of the Company’s Insider
Trading Policy.

       

      5. Adjustments.  The
terms “Restricted Shares” and “Vested Shares” shall include any shares or other
securities that you receive or become entitled to receive under Section 14
of the Plan as a result of your ownership of the original Restricted
Shares.

       

      6. Custody. Any certificates
representing the Restricted Shares (other than Vested Shares) shall be deposited
with the Company. The Company is hereby authorized to effectuate the transfer
into its name of all certificates representing the Restricted Shares that are
forfeited or otherwise transferred to the Company pursuant to either paragraph 3
above or paragraph 8 below.

       

      7. Voting
and Other Rights.

       

      (a) Upon the
registration of the Restricted Shares in your name, you shall have all of the
rights and status as a stockholder of the Company with respect to the Restricted
Shares, including the right to vote such shares and to receive dividends or
other distributions thereon. All such rights and status as a stockholder of the
Company with respect to the Restricted Shares shall terminate if the Restricted
Shares are forfeited pursuant to either paragraph 3 above or paragraph 8
below.

       

      (b) The grant
of the Restricted Shares to you does not confer upon you any right to continue
in the employ of the Company.

       

      8. Withholding
Taxes.  The award or other transfer of the Restricted Shares,
and the lapse of Restrictions on the Restricted Shares, shall be conditioned
further on any applicable withholding taxes being paid by you in the form and
manner reasonably acceptable to the Company.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      9. Incorporation of Plan
Provisions.  This Agreement is made pursuant to the Plan and is
subject to all the terms and provisions of the Plan as if the same were fully
set forth herein. Capitalized terms not otherwise defined herein shall have the
meanings set forth for such terms in the Plan. To the extent that there is any
inconsistency between this Agreement and the terms of the Plan, the terms of
this Agreement shall govern.   To the extent that there is any
inconsistency between the Employment Agreement and the terms of the Plan, the
terms of the Employment Agreement shall govern.

       

      10. Stock Power.  At
the Company’s request, you hereby agree to promptly execute any document,
including a stock power endorsed in blank, that is necessary to comply with the
terms of this Agreement.

       

      11. Successors.  This
Agreement shall be binding upon and inure to the benefit of any successor of the
Company and your successors, assigns and estate, including your executors,
administrators and trustees.

       

      12. Restriction on
Transfer.  Unless and until the shares represented by this
award are registered under the Securities Act, all certificates representing the
shares and any certificates subsequently issued in substitution therefor and any
certificate for any securities issued pursuant to any stock split, share
reclassification, stock dividend or other similar capital event shall bear
legends in substantially the following form:

       

      

      “THESE
SECURITIES HAVE NOT BEEN REGISTERED OR OTHERWISE QUALIFIED UNDER THE SECURITIES
ACT OF 1933 (THE “SECURITIES ACT“) OR UNDER THE APPLICABLE SECURITIES LAWS OF
ANY STATE. NEITHER THESE SECURITIES NOR ANY INTEREST THEREIN MAY BE SOLD,
TRANSFERRED, PLEDGED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION
UNDER THE SECURITIES ACT OR ANY APPLICABLE SECURITIES LAWS OF ANY STATE, UNLESS
PURSUANT TO EXEMPTIONS THEREFROM.“

      

      You agree
to such transfer restrictions.  The certificates shall bear such other
legend or legends as the Company and its counsel deem necessary or appropriate.
Appropriate stop transfer instructions with respect to the shares may, at the
Company’s discretion, be placed with the Company's transfer agent.

      

      13. Amendment or Modification,
Waiver.  No provision of this Agreement may be amended or
waived unless such amendment or waiver is agreed to in writing and signed by
each party hereto. No waiver by either party hereto of any breach by another
party hereto of any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of a similar of dissimilar condition
or provision at the same time, any prior time or any subsequent
time.

       

      14. Notices.  Each
notice relating to this Agreement shall be in writing and delivered in person or
by certified mail or overnight delivery to the proper address. Notices to
employees sent via e-mail shall be deemed to satisfy the requirements of this
paragraph 13. All notices to the Company shall be addressed to it
at:

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      WindTamer
Corporation

      156 Court
Street

      Geneseo,
NY 14454

      Attention:
Stock Option and Incentive Plan Administrator

      

      15. Severability.  If
any provision of this Agreement or the application of any such provision to any
party or circumstances shall be determined by any court of competent
jurisdiction to be invalid and unenforceable to any extent, the remainder of
this Agreement or the application of such provision to such person or
circumstances other than those to which it is so determined to be invalid and
unenforceable, shall not be affected thereby, and each provision hereof shall be
validated and shall be enforced to the fullest extent permitted by
law.

       

      16. Governing
Law.  This Agreement shall be construed and governed in
accordance with the laws of the state of New York, without regard to principles
of conflicts of laws.

       

      17. Headings.  All
descriptive headings of sections and paragraphs in this Agreement are intended
solely for convenience, and no provision of this Agreement is to be construed by
reference to the heading of any section or paragraph.

       

      18. Counterparts.  This
Agreement may be executed in counterparts, each of which shall be deemed to be
an original but both of which together shall constitute one and the same
instrument.

       

      To
confirm your acceptance of the foregoing, please sign and date below under
“Accepted and Agreed” and return one copy of this Agreement to the
Company.

       

      WINDTAMER
CORPORATION

       

       

      By:                                                              
  

      Name:   Gerald
Brock

      Title:     Chief
Executive Officer

      

      ACCEPTED
AND AGREED:

      

      

                                                                                  

      Name:  Mark
Matthews

      

      

      Date:                                                        
         

    

     

     

     

     

     4

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00166-of-00352.parquet"}]]