Document:

Exhibit 10.2

 

INCENTIVE STOCK OPTION AGREEMENT

 

BROADWIND ENERGY, INC.

2007 EQUITY INCENTIVE PLAN

 

THIS AGREEMENT is entered
into and effective as of the
                        
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 or
officer of the Company or one of its Affiliates; and

 

B.            The Company wishes to grant incentive stock options to
Participant pursuant to this Agreement and the 2007 Equity Incentive Plan (the “Plan”); and

 

C.            The Administrator has authorized the grant of an
incentive stock option to Participant to give Participant an inducement to
acquire a proprietary interest in the Company and an added incentive to advance
the interests of the Company 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.

 

AGREEMENTS

 

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

 

ARTICLE I. 
 GRANT OF OPTION

 

The Company hereby
grants  to Participant the right,
privilege, and option (the “Option”) to
purchase up to
                          
(                )
shares (the “Option Shares”) of the Company’s
Common Stock, according to the terms and subject to the conditions hereinafter
set forth and as set forth in the Plan.   [The per share price to be paid by
Participant in the event of an exercise of the Option shall be
                        
Dollars ($                  ) OR: Because Participant owns stock possessing more
than ten percent (10%) of the total combined voting power of all classes of
stock of the Company or its Parent or any Subsidiary, the per share price to be
paid by Participant in the event of an exercise of the Option shall be
                                          
Dollars ($                  ), which is not less than one hundred ten percent
(110%) of the fair market value of the Company’s Common Stock at the date of
grant of this Option.]  
The Option is intended to be an “incentive stock option,” as defined in
Section 422 of the Internal Revenue Code as amended (the “Code”), to the extent permitted by
Section 422(d) of the Code.  Shares granted in excess of the
422(d) limit will be treated as a nonqualified stock option.

 

ARTICLE II. 
 DURATION OF OPTION AND EXERCISABILITY

 

A.            Initial Period of Exercisability.  Except as
provided in Articles II.B and II.C below, the Option shall become
exercisable according to the following schedule.  Once the Option becomes
fully exercisable Participant may continue to exercise this Option under the
terms and conditions of this Agreement until the first of the termination of
this Option as provided herein or the Expiration Date (as defined below). 
If Participant

 

 

does not purchase upon an exercise of this Option
the full number of shares which Participant is then entitled to purchase,
Participant may purchase upon any subsequent exercise prior to this Option’s
termination or Expiration Date such previously unpurchased shares in addition
to those Participant is otherwise entitled to purchase.  Except as
otherwise provided in Articles II.B
and II.C below, the term during
which this Option may be exercised will continue until 5:00 p.m. (Central
time) on  [the date that is no more than ten (10) years following the date of
grant of this Option OR: for greater than ten percent (10%) holders insert the
date that is no more than five (5) years following the date of grant of
this Option]   (the “Expiration
Date”).  In no event shall this Option be exercisable after the
Expiration Date.

 

	
  Vesting Date

  	
   

  	
  Number of
  Option Shares

  Available for Exercise

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

B.            Termination of Employment for Reasons Other Than Death
or Disability.  In the event Participant ceases to be a key employee
or officer 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 Option 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 Option was not exercisable upon such termination
of employment, or if Participant does not exercise the unexercised portion of
the Option that was exercisable within the time specified in this Article II.B, all rights of Participant
under this Option shall terminate, and the Option 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 of the Company
or any Affiliate by reason of death or Disability, any unexercised portion of
this Option 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 Option was not exercisable upon such termination of employment,
or if Participant does not exercise the unexercised portion of the Option that
was exercisable within the time specified in this Article II.C, all rights of Participant under this Option
shall terminate, and the Option shall thereafter be void.

 

ARTICLE III. 
 MANNER OF OPTION EXERCISE

 

A.            Notice.  This Option may be exercised by
Participant in whole or in part from time to time, subject to the conditions
contained in the Plan and herein, by delivery, in person or by registered mail,
to the Company at its principal executive office, of a written notice of
exercise.  Such notice shall be in a form satisfactory to the
Administrator, shall identify the Option, shall specify the number of Option
Shares with respect to which the Option is being exercised, and shall be signed
by the person or persons so exercising the Option.  Such notice shall be
accompanied by payment in full of the total purchase price of the Option Shares
purchased; the exercise of the Option shall be deemed effective upon receipt of
such notice by the Company and

 

2

 

upon payment that complies with the terms of the
Plan and this Agreement.  In the event that the Option is being exercised,
as provided by the Plan and Article II.C,
above, by Participant’s heirs or legal representative(s), the notice shall be
accompanied by appropriate proof of right of such person or persons to exercise
the Option.  As soon as practicable after the effective exercise of the
Option, Participant (or Participant’s heirs or legal representative(s) in
the event of death or Disability) shall be recorded on the stock transfer books
of the Company as the owner of the Option Shares purchased, and the Company may
deliver to Participant (or Participant’s heirs or legal representative(s)) 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.

 

B.            Payment.  At the time of exercise of this
Option, Participant may determine whether to pay the total purchase price of
the Option Shares to be purchased solely in cash (including a personal check or
a certified or bank cashier’s check, payable to the order of the Company) or by
transfer from Participant to the Company of previously-owned shares of Common
Stock of the Company with a then current aggregate Fair Market Value equal to
such total purchase price, or by a combination of cash and such
previously-owned shares of Common Stock.  The Administrator may reject
Participant’s election to pay all or part of the purchase price under this
Option with previously-owned shares of common stock and may require such purchase
price to be paid entirely in cash if, in the sole discretion of the
Administrator, payment in previously-owned shares would cause the Company to be
required to recognize a charge to earnings in connection therewith.  For
purposes of this Agreement, (a) “previously-owned shares” shall mean
shares of Common Stock of the Company that Participant has owned for at least
six months prior to the time of exercise, and (b) “Fair Market Value” will
be determined as set forth in the Plan.

 

C.            Investment Purpose.  The Company shall not be
required to issue or deliver any shares of Common Stock under this Option
unless (a)(1) such shares are covered by an effective and current
registration statement under the Securities Act of 1933 and applicable state
securities laws or (2) if the Administrator has determined not to so
register such shares, exemptions from registration under the Securities Act of
1933 and applicable state securities laws are available for such issuance (as
determined by counsel to the Company) and the Company has received from
Participant (or Participant’s heirs(s) or legal representative(s), in the
event of death or Disability) any representations or agreements requested by
the Company in order to permit such issuance to be made pursuant to such exemptions,
and (b) the Company has obtained any other consent, approval or permit
from any state or federal governmental agency which the Administrator shall, in
its sole discretion upon the advice of counsel, deem necessary or
advisable.  Unless a registration statement under the Securities Act of
1933 is in effect with respect to the issuance or transfer of Option Shares,
transfer of such shares shall be restricted unless the Company receives an
opinion of counsel satisfactory to the Company to the effect that registration
under the Securities Act of 1933 and applicable state securities laws is not
required with respect to such transfer.

 

ARTICLE IV. 
 NONTRANSFERABILITY

 

This Option shall not be
transferable by Participant, either voluntarily or involuntarily, or subject to
any lien, directly or indirectly, by operation of law or otherwise, except as
provided in the Plan.  Any attempt to transfer or encumber this Option
other than in accordance with the Plan shall void this Option and this Option,
to the extent not fully exercised, shall terminate.

 

ARTICLE V.  DISPOSITIONS
AND WITHHOLDING TAXES

 

A.            Notification of Disqualifying Disposition. 
Prior to making a disposition (as defined in Section 424(c) of the
Code) of any shares of Common Stock acquired pursuant to the exercise of this
Option before the expiration of two years after the date hereof or before the
expiration of one year after the date on which such shares of Common Stock were
transferred to Participant pursuant to exercise of this Option,

 

3

 

Participant shall send written notice to the
Company of the proposed date of such disposition, the number of shares to be
disposed of, the amount of proceeds to be received from such disposition and
any other information relating to such disposition that the Company may
reasonably request.  The right of Participant to make such a disposition
shall be conditioned on the receipt by the Company of all amounts necessary to
satisfy any federal, state or local withholding tax requirements attributable
to such disposition.  The Administrator shall have the right, in its sole
discretion, to endorse any certificates representing the Option Shares with a
legend restricting transfer and to cause a stop transfer order to be entered
with the Company’s transfer agent until such time as the Company receives the
amounts necessary to satisfy such withholding requirements or until the later
of the expiration of two years from the date hereof or one year from the date
on which such shares were transferred to Participant pursuant to the exercise
of this Option.

 

B.            General Obligation.  The Company is entitled
to (a) withhold and deduct from future payments to Participant, or make
other arrangements for the collection of, all legally required amounts
necessary to satisfy any federal, state or local withholding tax requirements
attributable to Participant’s exercise of this Option, including, without
limitation, a disposition of shares of Common Stock described in Article V.A above, that causes this Option
to cease to qualify as an “incentive stock option” within the meaning of
Section 422 of the Code and the regulations thereunder, or
(b) require Participant promptly to remit the amount of such withholding
to the Company before acting on any such disposition of shares of Common
Stock.  In the event that the Company is unable to withhold such amounts,
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, state or local law.

 

C.            Use of Shares.  The Administrator may, in its
sole discretion and subject to such rules as the Administrator may adopt,
permit Participant to satisfy, in whole or in part, any withholding tax
obligation which may arise in connection with the exercise of this Option
either by electing to have the Company withhold from the shares of Common Stock
to be issued upon the exercise of this Option that number of shares of common
stock, or by electing to deliver to the Company previously-owned shares of
common stock, in either case having a Fair Market Value (determined as set
forth in the Plan) on the date such tax is determined under the Code (the “Tax Date”) equal to the amount necessary to
satisfy the minimum required tax withholding amount 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
the option.  In no event may the Company withhold shares having a Fair
Market Value in excess of such statutory minimum required tax
withholding.  Participant’s election to have the company withhold shares
of Common Stock or to deliver previously-owned shares of Common Stock upon
exercise is irrevocable and is subject to the consent of the Administrator and
shall 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.  To the extent that shares of Common
Stock may be issued prior to the Tax Date to the electing Participant,
Participant hereby agrees to surrender that number of shares on the Tax Date
having an aggregate Fair Market Value (determined as set forth in the Plan)
equal to the withholding tax due.

 

ARTICLE VI.  CAPITAL
ADJUSTMENTS

 

Pursuant and subject to
Section 14 of the Plan, in the event of an increase or decrease in the
number of shares of common stock resulting from a stock split, reverse stock
split, stock dividend, combination of shares, rights offering, reclassification
of the common stock, or any other change in the corporate structure or shares
of the Company, the Administrator, in order to prevent dilution or enlargement
of the rights of Participant, may make appropriate adjustment as to the number
and kind of securities subject to this Option.  Any such adjustment
affecting this Option shall be made without change in the aggregate purchase
price applicable to the unexercised portion of the Option but with an
appropriate adjustment in the price for each share or other unit of any
security subject to the Option. Without the consent of Participant, however, no
such change shall be made in the terms of the Option if such change would
disqualify the Option from treatment as an “incentive stock

 

4

 

option” within the meaning
of Code Section 422, or any successor provision, or would be considered a
modification, extension or renewal of an option under Code Section 424(h),
or any successor provision.

 

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 Option 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 IX.  NON-SOLICITATION

 

A.            Restrictive
Covenant.  During the period
beginning on the date of this Option 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 Option 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 Option, 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
Option.  In the event of any violation or
threatened violation of these restrictions, any and all rights of Participant
under this Option, 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
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 subject to the Option until such shares have been issued to Participant
upon exercise of the Option.  No adjustment shall be made for dividends
(ordinary or extraordinary, whether in cash, securities or

 

5

 

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.  The exercise of
all or any parts of this Option shall only be effective at such time as counsel
to the Company shall have determined that the issuance and delivery of Common
Stock pursuant to such exercise will not violate any state or federal
securities or other laws.  Participant may be required by the Company, as
a condition of the effectiveness of any exercise of this Option, to agree in
writing that all Common Stock to be acquired pursuant to such exercise shall be
held, until such time that such Common 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
thecertificates 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 option
or any of the underlying shares of common stock without the prior written
consent 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 Board of Directors of the Company shall have the
right (i) to accelerate the exercisability of this Option and the date on
which this Option must be exercised, provided that the Company gives
Participant 15 days’ prior written notice of such acceleration, and
(ii) to cancel any portion of this Option or any other option granted to
Participant pursuant to this Agreement which is not exercised prior to or
contemporaneously with such public offering.  Notice shall be deemed given
when delivered personally or when deposited in the United States mail, first
class postage prepaid and addressed to 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 Subsidiary (as defined in
applicable legal and accounting principles) at the time of such Change of
Control, 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 certificates for any
shares of Common Stock purchased by Participant (or, in the case of death,
Participant’s heirs or legal representative(s)) shall bear an appropriate
legend to reflect the restrictions of this Article
X and Article III.C,
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 the option period 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

 

6

 

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.

 

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]

 

7

 

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 10.3

 

NONQUALIFIED STOCK OPTION AGREEMENT

BROADWIND ENERGY, INC.

2007 EQUITY INCENTIVE PLAN

 

THIS AGREEMENT is entered
into effective as of the      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 nonqualified stock option to Participant to purchase shares
of the Company’s Common Stock pursuant to this Agreement and the Company’s 2007
Equity Incentive Plan (the “Plan”); and

 

C.                                     The
Administrator has authorized the grant of a nonqualified stock option 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.

 

AGREEMENTS

 

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

 

ARTICLE I.  GRANT
OF OPTION

 

The Company hereby grants to
Participant the right, privilege, and option (the “Option”)
to purchase up to                                               
(                  )
shares of Common Stock at a per share price of
                                  
Dollars
($                        )
subject to the terms and conditions set forth herein, and set forth in the
Plan.  The Option is a nonqualified stock
option and will not be treated as an incentive stock option, as defined under
Section 422 of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations thereunder.

 

ARTICLE II.  DURATION
OF OPTION AND EXERCISABILITY

 

A.                                   General.  Except as provided in Articles II.B and II.C below, the Option shall become
exercisable according to the following schedule.  Once the Option becomes fully exercisable,
Participant may continue to exercise the Option under the terms and conditions
of this Agreement until the termination of the Option as provided herein.  If Participant does not exercise the Option
with respect to the full number of shares which Participant is then entitled,
Participant may purchase upon any subsequent exercise prior to the Option’s
termination such previously unpurchased shares in addition to those Participant
is otherwise entitled to purchase.  Except as provided in Articles II.B and II.C below, the term during which this
Option may be exercised will continue until 5:00 p.m. (Central Time) on
                              ,
20     (the “Expiration
Date”).  In no event shall this Option be exercisable after the
Expiration Date.

 

	
  Vesting Date

  	
   

  	
  Number of
  Option Shares

  Available for Exercise

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

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 Option 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 Option was not exercisable upon such termination of employment, or
if Participant does not exercise the unexercised portion of the Option that was
exercisable within the time specified in this Article
II.B, all rights of Participant under this Option shall terminate,
and the Option 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 Option 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 Option was not exercisable upon such termination of employment, or
if Participant does not exercise the unexercised portion of the Option that was
exercisable within the time specified in this Article
II.C, all rights of Participant under this Option shall terminate,
and the Option shall thereafter be void.

 

ARTICLE III.  MANNER
OF OPTION EXERCISE

 

A.                                   Notice.  This Option may be exercised by Participant
in whole or in part from time to time, subject to the conditions contained in
the Plan and herein, by delivery, in person or by registered mail, to the
Company at its principal executive office, of a written notice of
exercise.  Such notice shall be in a form satisfactory to the
Administrator, shall identify the Option, shall specify the number of Option
Shares with respect to which the Option is being exercised, and shall be signed
by the person or persons so exercising the Option.  Such notice shall be accompanied by payment
in full of the total purchase price of the Option Shares purchased; the
exercise of the Option shall be deemed effective upon receipt of such notice by
the Company and upon payment that complies with the terms of the Plan and this
Agreement.  In the event that the Option is being exercised, as provided
by the Plan and Article  II.B, above, by Participant’s heirs or
legal representative(s), the notice shall be accompanied by appropriate proof
of right of such person or persons to exercise the Option.  As soon as
practicable after the effective exercise of the Option, Participant (or
Participant’s heirs or legal representative(s) in the event of death or
Disability) shall be recorded on the stock transfer books of the Company as the
owner of the Option Shares purchased, and the Company may deliver to
Participant (or Participant’s heirs or legal representative(s)) 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.

 

B.                                     Payment.  At the time of exercise of this Option,
Participant may determine whether to pay the total purchase price of the Option
Shares to be purchased solely in cash (including a personal check or a certified
or bank cashier’s check, payable to the order of the Company) or by transfer
from Participant to the Company of previously-owned shares of Common Stock of
the Company with a then current aggregate Fair Market Value equal to such total
purchase price, or by a combination of cash and such previously-owned shares of
Common Stock.  The Administrator may
reject Participant’s election to pay all or part of the purchase price

 

2

 

under
this Option with previously-owned shares of common stock and may require such
purchase price to be paid entirely in cash if, in the sole discretion of the
Administrator, payment in previously-owned shares would cause the Company to be
required to recognize a charge to earnings in connection therewith.  For
purposes of this Agreement, (a) “previously-owned shares” shall mean shares of
Common Stock of the Company that Participant has owned for at least six months
prior to the time of exercise, and (b) “Fair Market Value” will be determined
as set forth in the Plan.

 

C.                                     Investment Purpose.  The Company shall not be required to issue or
deliver any shares of Common Stock under this Option unless (a)(1) such
shares are covered by an effective and current registration statement under the
Securities Act of 1933 and applicable state securities laws or (2) if the
Administrator has determined not to so register such shares, exemptions from
registration under the Securities Act of 1933 and applicable state securities
laws are available for such issuance (as determined by counsel to the Company)
and the Company has received from Participant (or Participant’s
heirs(s) or legal representative(s), in the event of death or Disability)
any representations or agreements requested by the Company in order to permit
such issuance to be made pursuant to such exemptions, and (b) the Company
has obtained any other consent, approval or permit from any state or federal
governmental agency which the Administrator shall, in its sole discretion upon
the advice of counsel, deem necessary or advisable.  Unless a registration
statement under the Securities Act of 1933 is in effect with respect to the
issuance or transfer of Option Shares, transfer of such shares shall be
restricted unless the Company receives an opinion of counsel satisfactory to
the Company to the effect that registration under the Securities Act of 1933
and applicable state securities laws is not required with respect to such
transfer.

 

ARTICLE IV.  TRANSFERABILITY

 

This Option shall be
transferable, in whole or in part, by the Participant by will or by the laws of
descent and distribution.  In addition, the Administrator may, in its sole
discretion, permit Participant to transfer this Option to any member of
Participant’s “immediate family” as such term is defined in
Rule 16a-1(e) promulgated under the Securities Exchange Act of 1934,
or any successor provision, or to one or more trusts whose beneficiaries are
members of such Participant’s “immediate family” or partnerships in which such
family members are the only partners; provided, however, that Participant
cannot receive any consideration for the transfer and such transferred Option
shall continue to be subject to the same terms and conditions as were
applicable to the Option immediately prior to its transfer.

 

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 the Option, 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

 

3

 

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

 

Pursuant and subject to
Section 14 of the Plan, in the event of an increase or decrease in the number
of shares of common stock resulting from a stock split, reverse stock split,
stock dividend, combination of shares, rights offering, reclassification of the
common stock, or any other change in the corporate structure or shares of the
Company, the Administrator, in order to prevent dilution or enlargement of the
rights of Participant, may make appropriate adjustment as to the number and kind
of securities subject to this Option. 
Any such adjustment affecting this Option shall be made without change
in the aggregate purchase price applicable to the unexercised portion of the
Option but with an appropriate adjustment in the price for each share or other
unit of any security subject to the Option.

 

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 Option 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 IX.  NON-SOLICITATION

 

A.                                   Restrictive Covenant.  During the period beginning on the date of
this Option 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 Option
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 Option, 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 Option.  In the event of any violation or threatened
violation of these restrictions, any and all rights of Participant under this
Option, whether unvested or vested, shall be forfeited and shall immediately
terminate and shall thereafter be void.

 

4

 

ARTICLE X.  MISCELLANEOUS

 

A.                                   Employment or Other Relationship; Rights as 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 subject to the Option until such shares have
been issued to Participant upon exercise of the Option.  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.  The exercise of all or any parts of this
Option shall only be effective at such time as counsel to the Company shall
have determined that the issuance and delivery of Common Stock pursuant to such
exercise will not violate any state or federal securities or other laws.  Participant may be required by the Company,
as a condition of the effectiveness of any exercise of this Option, to agree in
writing that all Common Stock to be acquired pursuant to such exercise shall be
held, until such time that such Common 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 the Option or any of the underlying
shares of Common Stock without the prior written consent 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
Board of Directors of the Company shall have the right (i) to accelerate the
exercisability of this Option and the date on which this Option must be exercised,
provided that the Company gives Participant 15 days’ prior written notice of
such acceleration, and (ii) to cancel any portion of this Option or any other
option granted to Participant pursuant to this Agreement which is not exercised
prior to or contemporaneously with such public offering.  Notice shall be deemed given when delivered
personally or when deposited in the United States mail, first class postage
prepaid and addressed to 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 Subsidiary (as defined in applicable legal and accounting
principles) at the time of such Change of Control, 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 purchased by Participant (or, in
the case of death, Participant’s successors) shall bear an appropriate legend
to reflect the restrictions of this Article X
and Article III.C; provided,
however, that failure to so

 

5

 

endorse
any of such certificates shall not render invalid or inapplicable this Article X above.

 

G.                                     Shares Reserved.  The Company shall at all times during the
term of the option period 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.

 

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"}]]