Document:

Exhibit 10.37

 

 

2009
Employee Bonus Plan

 

Plan
Purpose

We
know our future success depends on our employees, and we are committed to
sharing the Company’s success with our employees. Our Bonus Plan is designed to
pay out a portion of the value employees create by successfully doing their
jobs. If you achieve your individual goals and objectives and if the Company
meets or exceeds its operational and financial goals for 2009, you will be
eligible to share in the rewards of a job well done. Bonuses are not automatic,
however. Whether bonuses will be issued, and in what amount, will be in the
sole discretion of First Wind.

 

It
is our hope that the 2009 Employee Bonus Plan will continue to motivate all
plan participants to strive for Company prosperity.

 

Our 2009
Financial Goal

Our
success in 2009 will be measured based on how we manage the business according
to our operating budget, our Long Range Plan and other financial goals. For
2009 specifically, four corporate goals will be used to measure our overall Company
success. Details of our corporate goals for 2009 are shown in Appendix A of
this Plan.

 

Eligibility

You
are eligible for the 2009 Employee Bonus Plan if you are a full-time First Wind
employee, with a start date prior to October 1, 2009, and do not participate
in development bonus plan, or any other incentive bonus plans. If you are an
eligible new hire during the 2009 plan year, your bonus will be pro-rated based
on your full months of consecutive employment through December 31, 2009.

 

Your
Bonus Opportunity

Your
eligible bonus will be based on a fixed percentage of your base salary. This is
only a target, and any bonuses that may actually be payable shall be determined
in the discretion of the Company based upon both the Company’s overall
performance against its operational and financial goals and your individual
performance against your goals as assessed by Company management. Any paid
bonus may be less than, equal to, or greater than the target bonus.

 

Under
the Bonus Plan, the Company must achieve at least the minimum threshold on both
of our top two corporate goals, as set forth in Appendix A. Specifically, we
must achieve our Cash EBITDA targets and raise incremental capital as outlined
in Appendix A in order for the 2009 bonus pool to be funded. If we do not reach
the minimum threshold of both of these goals, no bonuses will be paid in 2009.
The Company, and each individual participant, also has the ability to
overachieve against these goals by meeting or exceeding the stretch targets
outlined in the table in Appendix A. If all or some of the stretch targets are
achieved, the bonus pool could be funded at as much as 200% of target.

 

The
individual component of your bonus is based upon your performance against the
goals, objectives and specific performance criteria established by you and your
manager. Your goals and objectives are documented in writing on a 2009 Goal /
KPI Worksheet. It is your responsibility to work with your management to ensure
your goal worksheet is complete, is reviewed periodically throughout the year,
and stays relevant and current. Copies and any changes to the document should
be forwarded to the HR Department for review.

 

Company
Confidential

 

1

 

Bonus
evaluations will be completed by your manager at year-end and reviewed by
Senior Management and Human Resources Department as part of the bonus payment
cycle.

 

The
majority of your goals will be specific and very measureable and therefore your
attainment of those goals will be straight forward. In cases where goal
attainment is more subjective the following measurement system will be used:

 

	
   

  	
  Rating

  	
   

  	
  Individual Multiplier

  	
   

  
	
   

  	
  “Exceeds
  expectations”

  	
   

  	
  100%-150%

  	
   

  
	
   

  	
  “Fully
  meets expectations”

  	
   

  	
  80%-100%

  	
   

  
	
   

  	
  “Meets
  some expectations”

  	
   

  	
  0%
  - 70%

  	
   

  
	
   

  	
  “Does
  not meet expectations”

  	
   

  	
  0%

  	
   

  

 

Bonus
Formula = Base Salary * Target Bonus % * Company Multiplier * Individual
Multiplier

 

Bonus
Examples

 

	
  EXAMPLE
  I - Assumption

  	
   

  	
  EXAMPLE
  II - Assumption

  
	
  Base
  Salary = $100,000

  	
   

  	
  Base
  Salary = $100,000

  
	
  Target
  Bonus= 25% or $25,000

  	
   

  	
  Target
  Bonus= 25% or $25,000

  
	
  Company
  Performance = 125 points or 1.25

  	
   

  	
  Company
  Performance = 75 points

  
	
  Individual
  Performance = 110%

  	
   

  	
  Individual
  Performance = 80%

  
	
   

  	
   

  	
   

  
	
  $100,000
  * 25% * 1.25 * 1.10 = $34,375

  	
   

  	
  $100,000
  * 25% * .75 * .80 = $15,000

  

 

Bonus
Payments

Any
earned 2009 annual bonus will be paid as soon as possible in the first quarter
of 2010, following the completion of the Company’s annual financial audit.
Applicable taxes and 401k deductions (if enrolled) will be deducted from any
payments.

 

If
you are on a performance improvement plan at the time the bonus is paid, you
will not be eligible for the bonus. Poor performance on your part will affect
your eligibility to receive the annual bonus.

 

If
You Leave First Wind

You
must be an active employee the day that bonuses are distributed to be eligible
for a bonus. If you are on an approved leave, your bonus will be pro-rated
based upon the number of full months of active employment during the year. You
will receive your bonus payment upon your return to active employee status.

 

No
Guarantees / Modifications / Terminations

This
Employee Bonus Plan will be reviewed annually. The Company does not guarantee
that a bonus plan will exist each year, or that you will receive a bonus in any
given year. The Plan does not guarantee your continued employment with the
Company. The program is based on Company and individual performance, and
management reserves the exclusive right to modify or terminate the plan at its
discretion at any time. For purposes of illustration and not limitation, the
Company may modify its financial targets should it participate in a business
combination or other significant business reorganization.

 

In
Summary

At
First Wind, we want to recognize everyone’s contributions in helping to make
the Company successful. We believe that the Employee Bonus Plan will assist us
in ensuring that individual employees can be recognized for their achievements.

 

2Exhibit 10.39

 

NON-COMPETITION AGREEMENT

 

As an employee of First Wind Energy, LLC,  or one of its subsidiaries or affiliates
(hereinafter, “First Wind”), I,
                      
[employee name], hereby covenant and
agree to observe all the provisions of this Agreement, as well as all other rules and
policies currently in effect and which First Wind may announce from time to
time in accordance with applicable law.

 

WHEREAS, First Wind and I wish to set forth certain
agreements and understandings regarding my employment with First Wind;

 

NOW THEREFORE, in consideration of (i) my initial
and continued employment with First Wind beyond the effective date of this
Agreement; (ii) access to trade secrets and confidential information; (iii) the
mutual covenants and agreements contained in this Agreement, and (iv) other
good and valuable consideration, the receipt and sufficiency of which I hereby
acknowledge, First Wind and I agree as follows:

 

SECTION 1.                         AT-WILL
EMPLOYMENT

 

I acknowledge and agree that (i) my employment
with First Wind is at will, which means that either First Wind or I may
terminate the employment relationship at any time with or without cause, and
with or without notice; (ii) my continued employment with First Wind is
contingent upon the acceptance and observance of this Agreement; (iii) my
continued employment with First Wind constitutes good, valuable and sufficient
consideration for my agreements contained herein; and (iv) nothing in this
Agreement shall be construed to alter my status as an at-will employee of First
Wind or create any implied contract of employment.

 

SECTION 2.                         NON-COMPETITION

 

2.1          No Competition.  I shall not,
without First Wind’s prior written consent, engage directly or indirectly in
any Competitive Business as an employer, officer, director, owner, stockholder,
employee, partner, joint venturer or consultant, or assist others in engaging
in any Competitive Business, while I am employed by First Wind, and for a
period of 24 months thereafter.  This
prohibition will apply to the Territory identified in Attachment C, in which I
conducted business on behalf of First Wind.

 

2.2          Competitive Business Defined. 
For purposes of this Agreement, a “Competitive Business” means any
person or organization engaged in, or planning to become engaged in, research
on or the acquisition, development, production, distribution, marketing or
providing of a Competing Product.  A “Competing
Product” means any product, process or service of any person or organization
other than First Wind, in existence or under development, which relates to the
business of developing, constructing, operating or owning a wind energy
facility and is (i) identical to, substantially the same as, or an
adequate substitute for any product, process or service of First Wind, in
existence or under development, on which I have worked during the 

 

 

last three years of my employment with First Wind or about which I have
acquired Confidential Information (as defined in the Non-Solicitation and
Non-Disclosure Agreement that I have signed, and which is incorporated by
reference into this Agreement), and (ii) is (or could reasonably be
anticipated to be) marketed or distributed in such a manner and in such a
geographic area as to actually compete with such product, process or service of
First Wind.

 

SECTION 3.                         ENFORCEMENT
OF NON-COMPETITION PROVISION

 

3.1          Purpose of Restrictions.  I understand
that the non-competition obligation in this Agreement is not meant to prevent
me from earning a living or pursuing my career. 
Its purpose is to prevent any Competitive Business from gaining any
unfair advantage from my knowledge of Confidential Information or my use of
First Wind’s good will.  I further
acknowledge and agree that the time, geographic and scope limitations of my
obligation are reasonable and necessary to protect First Wind’s Confidential
Information and good will, and that based on my education, training and
background I will not be precluded from gainful employment and will be able to
maintain an adequate standard of living if I comply with that obligation during
the period and within the Territory described above.  If I become unemployed subsequent to the
effective date of this Agreement, I will diligently pursue other employment
opportunities that are consistent with my obligations under this Agreement and
with my general skills and interests.

 

3.2          Scope of Restrictions.  The
non-competition covenant contained in this Agreement shall be construed as a
series of separate covenants, one for each city, county and state of any
geographic area in the Territory.  Except
for geographic coverage, each of these covenants shall be deemed identical to
their corresponding non-competition or non-solicitation restrictions.  If, in any judicial proceeding, a court
refuses to enforce any of the separate covenants (or any part thereof), then
the unenforceable covenant (or part) shall be eliminated or “blue penciled”
from this Agreement to the extent necessary to permit the remaining covenants
(or portions thereof) to be enforced.  If
any provisions of the non-competition restrictions are deemed to exceed the
time, geographic or scope limitations permitted by applicable law, then such
provisions shall be reformed to the maximum time, geographic or scope
limitations permissible.  First Wind
expressly reserves the right to limit the scope of these covenants unilaterally
to ensure enforcement.

 

3.3          Extended Duration for Violations.  I
agree that the duration of my non-competition obligation hereunder shall be
extended by the period of time in which I am in breach of that obligation.

 

3.4          Extended Duration During Lawsuit.  I
further agree that the duration of my non-competition obligation hereunder
shall be extended and its expiration tolled upon the filing of any lawsuit
challenging the validity or enforceability of the Agreement until the lawsuit
is finally resolved and all rights of appeal have expired.

 

2

 

SECTION 4.                         NOTICE
TO RECRUITERS AND NEW EMPLOYER

 

I shall provide a copy of this Agreement to all recruiters,
employment agencies, employment consultants, and/or prospective employers when
I first seek employment with or through them. 
I understand that by making any new employer aware of the provisions of
this Agreement, the new employer may take such action as necessary or
appropriate to avoid my breaching the provisions of this Agreement and to
indemnify me in the event of a breach.

 

SECTION 5.                         INJUNCTIVE
RELIEF AND OTHER REMEDIES

 

5.1          Injunctions.  I acknowledge
and agree that (i) any breach or threatened breach of this Agreement would
cause irreparable harm to First Wind, and (ii) monetary damages alone
would not be an adequate remedy because they would be difficult or impossible
to measure in a timely manner. 
Therefore, I further acknowledge and agree that in the case of any
breach or threatened breach of this Agreement First Wind shall be entitled to
injunctive relief in addition to any other available rights and remedies.

 

5.2          Discipline.  If I breach
the terms of this Agreement while I am still employed by First Wind, I
understand that First Wind may take disciplinary actions against me, up to and
including the termination of my employment.

 

5.3          Attorneys’ Fees.  If I am found
to have breached this Agreement, First Wind will be entitled to collect from me
its damages, plus the costs and reasonable attorneys’ fees First Wind incurred
in seeking to enforce this Agreement.

 

SECTION 6.                         GENERAL
PROVISIONS

 

6.1          Amendments and Modifications.  No amendment
to or modification of this Agreement will be effective unless in writing signed
by the party to be charged.

 

6.2          Changes in Employment.  I acknowledge
and agree that this Agreement shall be binding upon me regardless of whether (i) my
employment continues for any length of time hereafter, (ii) there are any
subsequent changes in my duties, salary or compensation, or (iii) my
employment is terminated by First Wind or me or both, for any reason or no
reason at all.

 

6.3          Common Law Obligations Remain. 
This Agreement shall not supersede, replace or diminish my common law
obligations to First Wind as my current or former employer.  Those common law obligations continue with
the same force and effect during and after my employment with First Wind,
regardless of the reason for termination, and are in addition to the
obligations set forth in this Agreement.

 

6.4          Forum.  All disputes arising under
this Agreement shall be brought exclusively in the federal or state courts of
the Commonwealth of Massachusetts.  I 

 

3

 

hereby agree to submit to the jurisdiction of such court and that venue
is proper in the district or county wherein an office of First Wind is located.

 

6.5          Governing Law.  This
Agreement shall be governed by, and construed and enforced in accordance with,
the laws of the state of
                                                  ,
without regard to its conflict of laws principles.

 

6.6          Interpretation.  This
Agreement shall be construed in accordance with the intent of the parties and
not strictly for or against any party.

 

6.7          Merger and Bar.  This
Agreement sets forth the entire agreement and understanding between me and
First Wind concerning the subject matter herein.  This Agreement merges with, supersedes and
bars all prior agreements, promises and representations, whether oral or
written, express or implied, to the extent they contradict or conflict with the
provisions hereof.

 

6.8          Severability.  Any term or
provision of this Agreement that is held to be invalid or unenforceable in any
jurisdiction shall, as to that jurisdiction, be ineffective to the extent of
that invalidity or unenforceability without rendering invalid or unenforceable
the remaining terms and provisions of this Agreement or affecting the validity
or enforceability of any of the terms or provisions of this Agreement in any
other jurisdiction.

 

6.9          Successors and Assigns.  This
Agreement will be binding upon my heirs, executors, administrators and other
legal representatives and will inure to the benefit of First Wind, its
successors and assigns.

 

6.10        Survivability.  My covenants
and obligations under this Agreement will survive the termination of my
employment with First Wind, unless otherwise expressly stated herein.

 

6.11        Waiver.  No waiver of any rights under
this Agreement shall be effective unless expressed in writing by the party to
be charged.  The waiver by First Wind of
a breach of any provision of this Agreement shall not operate or be construed
as a wavier of any subsequent breach.

 

6.12        Waiver of Jury Right.  Any dispute
under this Agreement shall be tried by the court without a
jury.  By entering into this Agreement, I
acknowledge that I am expressly waiving my right to a jury trial on any dispute
arising out of this Agreement.

 

4

 

IN WITNESS WHEREOF, I have accepted and executed this
Agreement as of the
                  
day of                               ,
2010.

 

 

EMPLOYEE

 

	
  Signature:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name (printed):

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

FIRST WIND ENERGY, LLC

 

 

BY:

 

 

	
  Name (printed):

  	
   Paul Gaynor

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  CEO

  	
   

  

 

5

 

Attachment C

 

I have conducted or intend to conduct business on
behalf of FIRST WIND in or for the following territories:

 

[specifically identify these
locations, i.e., city, county, state or nations, with mileage limits if
applicable]

 

6

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