Document:

Exhibit 10.6

 

PERFORMANCE AWARD AGREEMENT

BROADWIND ENERGY, INC.

2007 EQUITY INCENTIVE PLAN

 

THIS AGREEMENT, is entered
into and effective as of this      day of
                          ,
20    , by and between Broadwind Energy, Inc., a Delaware
corporation (the “Company”), and
                                                  
(“Participant”).

 

RECITALS

 

A.            The Participant on the date hereof is a key employee,
officer or director of, or consultant or advisor to, the Company or one of its
Affiliates; and

 

B.            The Company wishes to grant a performance share award to
Participant pursuant to the Company’s 2007 Equity Incentive Plan (the “Plan”) to entitle the Participant to shares of the Company’s
Common Stock upon the achievement of certain specified performance criteria;
and

 

C.                The Administrator has authorized the grant of such
performance share award to Participant.

 

AGREEMENTS

 

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

 

ARTICLE I.  GRANT
OF PERFORMANCE AWARDS

 

A.            Grant
of Performance Share Award.  The Company hereby grants to Participant
on the date set forth above (the “Date of
Grant”) the right to receive up to
                                
(                              )
Performance Shares payable in shares of Common Stock on the terms and
conditions set forth herein (the “Performance
Share Award”).

 

B.            Grant
of Performance Unit Award.  The Company hereby grants to Participant
on the Date of Grant the right to receive up to                           
(                          )
Performance Units having a value of
$                          
per Unit (the “Per Unit Value”)
payable in cash or the terms and conditions set forth herein (the “Performance Unit Award” and, together with
the Performance Share Award, the “Performance
Award”).

 

ARTICLE II.  PERFORMANCE
PERIOD

 

The Performance Period shall
be the period beginning
                          ,
20    , and ending                           ,
20    .

 

ARTICLE III.  PERFORMANCE
OBJECTIVES AND VESTING OF

PERFORMANCE AWARD

 

A.            General. 
Except as otherwise provided herein, the Performance Shares or Performance
Units subject to this Performance Award shall vest only upon the achievement of
all or a portion of certain Performance Objectives, defined below, which must
be achieved within the Performance Period.

 

The Performance Objectives
and the extent to which achievement of all or a portion of the Performance 

 

 

Objectives will result in
the vesting of the Performance Shares or Performance Units are as follows:

 

	
  Performance
  Objective(s)

  	
   

  	
  Achievement

  	
   

  	
  Percentage or Number of

  Shares or Units Vested

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Notwithstanding the
foregoing schedule, the Administrator may delay the vesting of all or any
portion of the Performance Awards pursuant to Article
XI.J herein; provided, however, that
such delay shall not extend the Performance Period during which the above
Performance Objectives must be achieved.  Subject to such other terms and
conditions set forth in this Agreement, the Participant shall not be entitled
to the issuance of any portion of the Performance Shares or Performance Units
subject to this Performance Award until the Administrator determines the number
of Performance Shares or Performance Units, if any, which have vested.

 

B.            Termination
of Employment Prior to Vesting.  If, prior to the vesting of any
Performance Shares or Performance Units, Participant ceases to be [a key employee or officer] [a consultant or advisor]
[a director]  of the Company
or any Affiliate for any reason, the Participant shall forfeit all unvested
Performance Shares or Performance Units, and this Performance Award shall
terminate; provided, however, that if the Administrator delays the vesting and
issuance of any Performance Shares or Performance Units pursuant to Article  XI.J,
the Participant shall not forfeit any such Performance Shares or Performance
Units that otherwise would have vested prior to the termination of Participant’s
relationship had such vesting not been so delayed, and, upon the issuance of
such delayed vested Performance Shares or Performance Units, this Performance
Award shall terminate.

 

C.            Termination
of Employment After Vesting But Prior to Issuance.  If Participant
ceases to be [a key employee or officer] [a
consultant or advisor] [a director] 
of the Company or any Affiliate for any reason after Performance Shares
or Performance Units have vested but prior to the date such Shares are issued
or cash is distributed (as described in Article
III hereof), then Participant (or Participant’s estate in the event
of his death) shall be entitled to receive such vested Performance Shares or
Performance Units as if such termination of employment had not occurred. 
Upon the issuance of the vested Performance Shares or Performance Units, this
Performance Award shall terminate.

 

ARTICLE IV.  FORM,
TIME OF ISSUANCE

 

The Administrator shall,
within
                
(    ) days after the end of the Performance Period or at
such earlier times as described in Article III above,
determine the number of Performance Shares and Performance Units that have
vested pursuant to Article III
above and shall calculate the amount of cash, if any, payable to Participant by
multiplying the Per Unit Value by such number of vested Performance Units.  Unless the Administrator delays the vesting
and issuance of such Performance Shares or Performance Units pursuant to Article XI.J such Performance Shares or cash shall be issued
in the calendar year in which the date such Performance Shares or Performance
Units become vested; provided, however, that the Participant shall receive cash
equal to the Fair Market Value of any fractional shares.

 

ARTICLE V.  NONTRANSFERABILITY

 

This Performance Award shall
not be transferable, in whole or in part, by Participant, other than by will or
by the laws of descent and distribution, prior to the date the risks of
forfeiture described in this Agreement have lapsed.  If Participant shall attempt any transfer of
this Performance Award prior to such date, such transfer shall be void and this
Performance Award shall terminate.

 

ARTICLE VI.  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

 

2

 

state payroll, income or
other taxes are withheld from any amounts payable by the Company to
Participant.  If the Company is unable to
withhold such federal and state taxes, for whatever reason, 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.  Subject to such rules as the
Administrator may adopt, the Administrator may, in its sole discretion, permit
Participant to satisfy such withholding tax obligations, in whole or in part
(i) by delivering shares of common stock, or (ii) by electing to have the
Company withhold shares of Common Stock otherwise issuable to Participant as a
result of the grant of Performance Shares, in either case having a Fair Market
Value, as of the date the amount of tax to be withheld is determined under
applicable tax law, equal to the minimum amount required to be withheld for tax
purposes based on the minimum statutory withholding rates for federal and state
tax purposes, including payroll taxes, that are applicable to the supplemental
income resulting from such exercise.  Participant’s request to deliver
shares or to have shares withheld for purposes of such withholding tax
obligations shall be made on or before the date that triggers such obligations
or, if later, the date that the amount of tax to be withheld is determined
under applicable tax law.  Participant’s request 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
and Exchange Act of 1934, if applicable.

 

ARTICLE VII.  CAPITAL
ADJUSTMENTS

 

Except as otherwise
specifically provided in any employment, change of control, severance or
similar agreement executed by Participant and the Company, pursuant and subject
to Section 14 of the Plan, 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) may result in an
adjustment, reduction or enlargement, as appropriate, in the number of shares
subject to this Performance 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.

 

ARTICLE VIII.  BINDING
EFFECT

 

This Agreement shall be
binding upon the heirs, executors, administrators and successors of the parties
hereto.

 

ARTICLE IX.  2007
EQUITY INCENTIVE PLAN

 

The Performance Award
represented by this Agreement has been granted under, and is subject to the
terms of, the Plan.  The terms of the
Plan are hereby incorporated by reference herein in their entirety and
Participant, by execution hereof, acknowledges having received a copy of the
Plan.  Capitalized terms not defined
herein shall have the meaning set forth in the Plan.  The provisions of this Agreement shall be
interpreted as to be consistent with the Plan and any ambiguities herein shall
be interpreted by reference to the Plan. 
In the event that any provision hereof is inconsistent with the terms of
the Plan, the latter shall prevail.

 

ARTICLE X.  NON-SOLICITATION

 

A.            Restrictive
Covenant.  During the period beginning on the date of this Performance Award and ending
on the later of (i) one year following the termination of Participant’s
employment with, or service to, the Company or an Affiliate or (ii) the
expiration of this Performance Award pursuant to Article  II,
Participant shall not, except with the express prior written consent of the
Company:  (i) directly or indirectly,
either for Participant, or on behalf of any of the Company’s or any Affiliate’s
competitors (“Competitors”): (1)
induce or attempt to induce any employee, independent contractor or consultant of
the Company or any Affiliate to leave the employ of, or terminate its
engagement with, the Company or any Affiliate; or (2) in any way interfere with
the relationship between the Company or any Affiliate and any employee,
independent contractor or consultant

 

3

 

of the Company or any affiliate; or (ii)
directly or indirectly, either for Participant, or on behalf of any of the
Competitors, solicit the business of any person or entity known to Participant
to be a customer of the Company or any of its Affiliates, where Participant, or
any person reporting to Participant, had an ongoing business relationship or
had made substantial efforts with respect to such customer during Participant’s
employment with, or service to, the Company or an Affiliate.

 

B.            Violation
of Restrictive Covenant. 
Participant, by accepting this Performance Award, agrees that the
foregoing covenants are reasonable with respect to their duration and
scope.  Participant further acknowledges
that the restrictions are reasonable and necessary for the protection of the
legitimate business interests of the Company and its Affiliates, that they
create no undue hardships, that any violation of these restrictions would cause
substantial injury to the Company and its Affiliates, and that such
restrictions were a material inducement to the Company to grant this
Performance Award.  In the event of any
violation or threatened violation of these restrictions, any and all rights of
Participant under this Performance Award, whether unvested or vested, shall be
forfeited and shall immediately terminate and shall thereafter be void.

 

ARTICLE XI.  MISCELLANEOUS

 

A.            Employment
or Other Relationship; Rights as a Stockholder.  Nothing in this Agreement shall be construed
to (a) limit in any way the right of the Company or any Affiliate to
terminate the status of Participant as an employee of the Company at any time,
or (b) be evidence of any agreement or understanding, express or implied, that
the Company or any Affiliate will employ Participant in any particular
position, at any particular rate of compensation or for any particular period
of time.  Participant shall have no
rights as a stockholder with respect to shares issued under this Agreement
until such shares have been issued to Participant.  No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or other property),
distributions or other rights for which the record date is prior to the date
such shares are issued, except as provided in Section 14 of the Plan.

 

B.            Securities
Law Compliance.  Participant shall
not transfer or otherwise dispose of the shares of Stock received pursuant to
this Agreement until such time as counsel to the Company shall have determined
that such transfer or other disposition will not violate any state or federal
securities laws.  Participant may be
required by the Company, as a condition of the effectiveness of this
Performance Award, to agree in writing that all Stock subject to this Agreement
shall be held, until such time that such Stock is registered and freely
tradable under applicable state and federal securities laws, for 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.            Lockup
Period Limitation.  Participant
agrees that in the event the Company advises 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 to impose
restrictions under which certain stockholders 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, Participant hereby agrees that
for a period not to exceed 180 days from the prospectus, Participant will not sell
or contract to sell or grant an option to buy or otherwise dispose of this
Performance Award or any of the underlying shares of Common Stock without the
prior written consent of the of the underwriter(s) or its
representative(s).

 

D.            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 Administrator of the Company shall accelerate

 

4

 

the
vesting of this restricted stock award, provided that the Company gives
Participant 15 days’ prior written notice of such acceleration.  Notice
shall be deemed given when delivered personally or when deposited in the United
States mail, first class postage prepaid and addressed to Participant at the
address of Participant on file with the Company.

 

E.             Accounting
Compliance.  Participant agrees that,
if a “transaction” (as defined in Section 14 of the Plan) occurs, and
Participant is an “affiliate” of the Company or any Affiliate (as defined in
applicable legal and accounting principles) at the time of such transaction,
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.

 

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

 

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

 

H.            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 and 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 a judge of the Circuit Court of Cook County, Illinois 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 disputes.  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
fee, administrative fees, travel expenses, out-of-pocket expenses and
reasonable attorney’s fees.  Unless otherwise agreed by the parties, the
place of any arbitration proceedings shall be Chicago, Illinois.

 

I.              Right
to Amend.  The Company hereby
reserves the right to amend this Agreement without Participant’s consent to the
extent necessary or desirable to comply with the requirements of Code Section
409A and the regulations, notices and other guidance of general application
issued thereunder.

 

J.             Delay
in Payment for Specified Employee. 
Notwithstanding anything herein to the contrary, if any payments to be
made to Participant hereunder are subject to the requirements of Code Section
409A and the Company determines that 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.

 

ARTICLE XII.  GOVERNING
LAW

 

This Agreement and all
rights and obligations hereunder shall be construed in accordance with the Plan

 

5

 

and governed by the laws of
the State of Delaware.

 

[Signature page follows]

 

6

 

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

 

	
   

  	
  BROADWIND ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By execution hereof, the Participant

  acknowledges having received a copy of the

  Plan.

  	
  PARTICIPANTExhibit 10.7

 

STOCK APPRECIATION RIGHTS AGREEMENT

 

BROADWIND ENERGY, INC.

2007 EQUITY INCENTIVE PLAN

 

THIS AGREEMENT, made
effective as of this
              
day of
                              
, 20    , by and between Broadwind Energy, Inc., a
Delaware corporation (the “Company”), and
                                         
(“Participant”).

 

RECITALS

 

A.            Participant
on the date hereof is a key employee, officer or director of, or consultant or
advisor to, the Company or one of its Affiliates; and

 

B.            The
Company wishes to grant a stock appreciation right to Participant to pursuant
to the Company’s 2007 Equity Incentive Plan (the “Plan”); and

 

C.            The
Administrator of the Plan has authorized the grant of a stock appreciation
right to Participant and has determined that, as of the effective date of this
Agreement, the fair market value of the Company’s Common Stock is
                                  
Dollars
($                    )
per share (the “Exercise Price”).

 

AGREEMENTS

 

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

 

ARTICLE I.  GRANT
OF SAR

 

The Company hereby grants to
Participant on the date set forth above (the “Date of
Grant”), stock appreciation rights (the “SAR”)
with respect to an aggregate of
                                  
(                   )
shares of Common Stock at the Exercise Price on the terms and conditions set
forth herein, and subject to adjustment pursuant to Section 14 of the
Plan.

 

ARTICLE II. 
 DURATION AND EXERCISABILITY

 

A.            General. 
The term during which the SAR may be exercised shall terminate on                                                   
,
                            
except as otherwise provided in Article II.B
and Article  II.C below.  The SAR shall vest and
become exercisable according to the following schedule:

 

	
  Vesting Date

  	
   

  	
  Cumulative
  Percentage of

  Shares

  
	
   

  	
   

  	
   

  
	
  ,20

  	
   

  	
   

  
	
  ,20

  	
   

  	
   

  
	
  ,20

  	
   

  	
   

  
	
  ,20

  	
   

  	
   

  

 

Once the SAR becomes fully
exercisable, Participant may continue to exercise the SAR under the terms and
conditions of this Agreement until the termination of the SAR as provided
herein.  If Participant does not exercise the SAR with respect to the full
number of shares for which Participant is then entitled, Participant

 

 

may, upon any subsequent
exercise prior to the SAR’s termination, exercise the SAR for such previously
unexercised portion.

 

B.            Termination
of Employment for Reasons Other Than Death or Disability.  In the
event Participant ceases to be [a key
employee or officer] [a consultant or advisor] [a director]  of the Company or any Affiliate for any
reason other than death or an event that constitutes permanent and total
disability within the meaning of Section 22(e)(3) of the Code (“Disability”), any unexercised portion of
this SAR which was exercisable as of the date of such termination may be
exercised, in whole or in part, by Participant before the earlier of
(i) the close of business on the three-month anniversary date of such
termination of employment, and (ii) the Expiration Date.  To the
extent this SAR was not exercisable upon such termination of employment, or if
Participant does not exercise the unexercised portion of the SAR that was
exercisable within the time specified in this Article
II.B, all rights of Participant under this SAR shall terminate, and
the SAR shall thereafter be void.

 

C.            Termination
of Employment Due to Death or Disability.  In the event Participant
ceases to be [a key employee or officer] [a
consultant or advisor] [a director] 
of the Company or any Affiliate by reason of death or Disability, any
unexercised portion of this SAR which was exercisable as of the date of such
termination may be exercised, in whole or in part, by Participant (or by
Participant’s heirs or legal representative(s) in the event of death or
Disability) before the earlier of (i) the close of business on the
twelve-month anniversary date of such termination of employment and
(ii) the Expiration Date.  To the extent this SAR was not exercisable
upon such termination of employment, or if Participant does not exercise the
unexercised portion of the SAR that was exercisable within the time specified
in this Article II.C, all
rights of Participant under this SAR shall terminate, and the SAR shall
thereafter be void.

 

ARTICLE III.  MANNER
OF EXERCISE AND PAYMENT

 

A.            General. 
The SAR may be exercised only by Participant (or other proper party in the
event of death or incapacity), subject to the conditions of the Plan and
subject to such other administrative rules as the Administrator may deem
advisable, by delivering written notice of exercise to the Company at its
principal office. The notice shall state the number of shares as to which the
SAR is being exercised.  The exercise of the SAR shall be deemed effective
upon receipt of such notice by the Company, and the date of such receipt shall
be the “date of exercise” for all purposes under this Agreement.  The SAR
may be exercised with respect to some or all of the exercisable shares and, if
partially exercised, may be so exercised as to the unexercised shares any
number of times during the term of the SAR as provided herein.

 

B.            Form of
Payment.  Upon the exercise of all or a portion of the SAR,
Participant shall be entitled to (1) that number of shares of Stock having
an aggregate Fair Market Value equal to (i) the excess of (A) the per
share Fair Market Value of the Company’s Common Stock as of the date of
exercise over (B) the per share exercise price specified in Article I above, multiplied by
(ii) the number of shares specified in the Participant’s notice of
exercise; (2) a cash payment equal to (i) the excess of (A) the
per share Fair Market Value of the Company’s Common Stock as of the date of
exercise over (B) the per share exercise price specified in Article I above, multiplied by
(ii) the number of shares specified in the Participant’s notice of
exercise; OR  (3) a
combination of cash and shares of stock having a value equal to (i) the
excess of (A) the per share Fair Market Value of the Company’s Common
Stock as of the date of exercise over (B) the per share exercise price
specified in Article I above,
multiplied by (ii) the number of shares specified in the Participant’s
notice of exercise.  Participant may indicate his or her preference for
the form of settlement of the SAR, however the Administrator shall make the
final determination of whether the SAR is settled in Common Stock, cash, or a
combination thereof.

 

C.            Stock
Transfer Records.  As soon as practicable after the effective exercise
of all or any part of the SAR, Participant shall be recorded on the stock
transfer books of the Company as the owner of the shares

 

2

 

purchased,
and the Company may deliver to Participant one or more duly issued stock
certificates evidencing such ownership.  All requisite original issue or
transfer documentary stamp taxes shall be paid by the Company.

 

ARTICLE IV. 
 NONTRANSFERABILITY

 

This SAR shall not be
transferable, in whole or in part, by Participant, other than by will or by the
laws of descent and distribution, prior to the date the risks of forfeiture
described in this Agreement have lapsed.  If Participant shall attempt any
transfer of this SAR prior to such date, such transfer shall be void and this
SAR shall terminate.

 

ARTICLE V.  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 are
withheld from any amounts payable by the Company to Participant.  If the
Company is unable to withhold such federal and state taxes, for whatever
reason, 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.  Subject to such rules as the Administrator may adopt, the
Administrator may, in its sole discretion, permit Participant to satisfy such
withholding tax obligations, in whole or in part (i) by delivering shares
of common stock, or (ii) by electing to have the Company withhold shares
of Common Stock otherwise issuable to Participant as a result of the exercise
of this SAR, in either case having a Fair Market Value, as of the date the
amount of tax to be withheld is determined under applicable tax law, equal to
the minimum amount required to be withheld for tax purposes based on the
minimum statutory withholding rates for federal and state tax purposes,
including payroll taxes, that are applicable to the supplemental income
resulting from such exercise.  Participant’s request to deliver shares or
to have shares withheld for purposes of such withholding tax obligations shall
be made on or before the date that triggers such obligations or, if later, the
date that the amount of tax to be withheld is determined under applicable tax
law.  Participant’s request 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 and Exchange Act
of 1934, if applicable.

 

ARTICLE VI. 
 CAPITAL ADJUSTMENTS

 

Except as otherwise
specifically provided in any employment, change of control, severance or
similar agreement executed by Participant and the Company, pursuant and subject
to Section 14 of the Plan, 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) may result in an
adjustment, reduction or enlargement, as appropriate, in the number of shares
subject to this SAR.  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.

 

ARTICLE VII. 
 BINDING EFFECT

 

This Agreement shall be
binding upon the heirs, executors, administrators and successors of the parties
hereto.

 

ARTICLE VIII.  2007
EQUITY INCENTIVE PLAN

 

The SAR represented by this
Agreement has been granted under, and is subject to the terms of, the
Plan.  The terms of the Plan are hereby incorporated by reference herein
in their entirety and Participant, by execution hereof, acknowledges having
received a copy of the Plan.  Capitalized terms not defined herein shall
have the

 

3

 

meaning set forth in the
Plan.  The provisions of this Agreement shall be interpreted as to be
consistent with the Plan and any ambiguities herein shall be interpreted by
reference to the Plan.  In the event that any provision hereof is
inconsistent with the terms of the Plan, the latter shall prevail.

 

ARTICLE IX.  NON-SOLICITATION

 

A.            Restrictive Covenant.  During the period beginning on the date of
this SAR and ending on the later of (i) one year following the termination of
Participant’s employment with, or service to, the Company or an Affiliate
pursuant to Article II.B or (ii)
the expiration of this SAR pursuant to Article
II.A or Article  II.C,
Participant shall not, except with the express prior written consent of the
Company:  (i) directly or indirectly,
either for Participant, or on behalf of any of the Company’s or any Affiliate’s
competitors (“Competitors”): (1)
induce or attempt to induce any employee, independent contractor or consultant
of the Company or any Affiliate to leave the employ of, or terminate its
engagement with, the Company or any Affiliate; or (2) in any way interfere with
the relationship between the Company or any Affiliate and any employee,
independent contractor or consultant of the Company or any affiliate; or (ii)
directly or indirectly, either for Participant, or on behalf of any of the
Competitors, solicit the business of any person or entity known to Participant
to be a customer of the Company or any of its Affiliates, where Participant, or
any person reporting to Participant, had an ongoing business relationship or
had made substantial efforts with respect to such customer during Participant’s
employment with, or service to, the Company or an Affiliate.

 

B.            Violation
of Restrictive Covenant. 
Participant, by accepting this SAR, agrees that the foregoing covenants
are reasonable with respect to their duration and scope.  Participant further acknowledges that the
restrictions are reasonable and necessary for the protection of the legitimate
business interests of the Company and its Affiliates, that they create no undue
hardships, that any violation of these restrictions would cause substantial
injury to the Company and its Affiliates, and that such restrictions were a
material inducement to the Company to grant this SAR.  In the event of any violation or threatened
violation of these restrictions, any and all rights of Participant under this
SAR, whether unvested or vested, shall be forfeited and shall immediately
terminate and shall thereafter be void.

 

ARTICLE X.  MISCELLANEOUS

 

A.            Employment
or Other Relationship; Rights as a Stockholder.  Nothing in this
Agreement shall be construed to (a) limit in any way the right of the
Company or any Affiliate to terminate the status of Participant as an employee
of the Company at any time, or (b) be evidence of any agreement or
understanding, express or implied, that the Company or any Affiliate will
employ Participant in any particular position, at any particular rate of
compensation or for any particular period of time.  Participant shall have
no rights as a stockholder with respect to shares issued under this Agreement
until such shares have been issued to Participant.  No adjustment shall be
made for dividends (ordinary or extraordinary, whether in cash, securities or
other property), distributions or other rights for which the record date is
prior to the date such shares are issued, except as provided in Section 14
of the Plan.

 

B.            Securities
Law Compliance.  Participant shall not transfer or otherwise dispose
of the shares of Stock received pursuant to this Agreement until such time as
counsel to the Company shall have determined that such transfer or other
disposition will not violate any state or federal securities laws. 
Participant may be required by the Company, as a condition of the effectiveness
of this SAR, to agree in writing that all Stock subject to this Agreement shall
be held, until such time that such Stock is registered and freely tradable
under applicable state and federal securities laws, for 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.

 

4

 

C.            Lockup
Period Limitation.  Participant agrees that in the event the Company
advises 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 to impose restrictions under which certain
stockholders 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, Participant hereby agrees that for a period not to
exceed 180 days from the prospectus, Participant will not sell or contract to
sell or grant an option to buy or otherwise dispose of this SAR or any of the
underlying shares of Common Stock without the prior written consent of the of
the underwriter(s) or its representative(s).

 

D.            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
Administrator of the Company shall accelerate the vesting of this restricted
stock award, provided that the Company gives Participant 15 days’ prior written
notice of such acceleration.  Notice shall be deemed given when delivered
personally or when deposited in the United States mail, first class postage
prepaid and addressed to Participant at the address of Participant on file with
the Company.

 

E.             Accounting
Compliance.  Participant agrees that, if a “transaction” (as defined
in Section 14 of the Plan) occurs, and Participant is an “affiliate” of
the Company or any Affiliate (as defined in applicable legal and accounting
principles) at the time of such transaction, 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.

 

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

 

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

 

H.            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 and
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 a judge of the Circuit Court of
Cook County, Illinois 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 disputes.  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 fee, administrative fees, travel expenses,
out-of-pocket expenses and reasonable attorney’s fees.  Unless otherwise
agreed by the parties, the place of any arbitration proceedings shall be
Chicago, Illinois.

 

5

 

ARTICLE XI. 
 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 Delaware.

 

[Signature page  follows]

 

6

 

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

 

	
   

  	
  BROADWIND ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  
	
   

  	
  Its:

  
	
   

  	
   

  
	
   

  	
   

  
	
  By execution hereof, the Participant

  acknowledges having received a copy of the

  Plan.

  	
  PARTICIPANT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]