Document:

EXHIBIT 4.1
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                              WESTBANK CORPORATION
                       2004 RECOGNITION AND RETENTION PLAN
                          RESTRICTED STOCK AWARD NOTICE
                          -----------------------------

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         NAME OF AWARD RECIPIENT                       SOCIAL SECURITY NUMBER

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                                 STREET ADDRESS

-------------------------------     ----------------------      ----------------
             CITY                            STATE                  ZIP CODE

This Restricted Stock Award Notice is intended to set forth the terms and
conditions on which an Award has been granted under the Westbank Corporation
2004 Recognition and Retention Plan. Set forth below are the specific terms and
conditions applicable to this Award. Attached as Exhibit A are its general terms
and conditions.
<TABLE><CAPTION>
<S>                    <C>           <C>           <C>           <C>           <C>
======================  ============  ============  ============  ============  ============
Restricted Stock Award      (A)           (B)           (C)           (D)            (E)
======================  ============  ============  ============  ============  ============
        Effective Date
----------------------  ------------  ------------  ------------  ------------  ------------
      Class of Shares*     Common        Common        Common        Common        Common
----------------------  ------------  ------------  ------------  ------------  ------------
        No. of Awarded
               Shares*
----------------------  ------------  ------------  ------------  ------------  ------------
         Type of Award
   (Escrow or Legended
          Certificate)
----------------------  ------------  ------------  ------------  ------------  ------------
         Vesting Date*
======================  ============  ============  ============  ============  ============
</TABLE>

*SUBJECT TO ADJUSTMENT AS PROVIDED IN THE PLAN AND THE GENERAL TERMS AND
CONDITIONS.

By signing where indicated below, Westbank Corporation (the "Company") grants
this Award upon the specified terms and conditions, and the Award Recipient
acknowledges receipt of this Restricted Stock Award Notice, including Exhibit A,
and agrees to observe and be bound by the terms and conditions set forth herein.

WESTBANK CORPORATION                            AWARD RECIPIENT

By ___________________________                  ________________________________
   NAME:
   TITLE: CHAIRMAN, COMPENSATION COMMITTEE

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INSTRUCTIONS: This page should be completed by or on behalf of the Compensation
Committee. Any blank space intentionally left blank should be crossed out. An
Award consists of shares granted with uniform terms and conditions. Where shares
granted under an Award are awarded on the same date with varying terms and
conditions (for example, varying vesting dates), the awards should be recorded
as a series of grants each with its own uniform terms and conditions.

<PAGE>
                                                                       EXHIBIT A
                                                                       ---------

                              WESTBANK CORPORATION
                       2004 RECOGNITION AND RETENTION PLAN
                             RESTRICTED STOCK AWARD
                             ----------------------

                          GENERAL TERMS AND CONDITIONS

SECTION 1. SIZE AND TYPE OF AWARD. The shares of Common Stock, par value $2.00
per share, of Westbank Corporation ("Shares") covered by this Award ("Awarded
Shares") are listed on this Restricted Stock Award Notice. Your Restricted Stock
Award Notice designates the Awarded Shares as either "Escrow" or "Legended
Certificate".

          (A) LEGENDED CERTIFICATE. If your Awarded Shares are designated
     "Legended Certificate," a stock certificate evidencing the Awarded Shares
     will be issued in your name and held in a brokerage account at Merrill
     Merchants Bank, the Plan Trustee. The stock certificate will bear a legend
     indicating that it is subject to all of the terms and conditions of this
     Award Notice and the Plan. You will be required to elect to be taxed on the
     Fair Market Value of the Awarded Shares as of the date they are placed in
     the brokerage account in your name, pursuant to section 83(b) of the
     Internal Revenue Code of 1986, as amended. You must make this election in
     writing, in the manner required by applicable Internal Revenue Service
     Regulations, and file it with the Internal Revenue Service and the Company
     within 30 days after the date on which the Awarded Shares are placed in
     your brokerage account.

          (B) ESCROW. If your Awarded Shares are designated "Escrow," the
     Awarded Shares will either be held in the name of the Plan Trustee on a
     pooled basis with other Awarded Shares that have been designated "Escrow,"
     or they will be evidenced by a legended stock certificate in your name that
     will be placed in a brokerage account for you at Merrill Merchants Bank.
     You will not be permitted to elect to be taxed currently on the Fair Market
     Value of the Awarded Shares and instead will be subject to income tax on
     the Awarded Shares as and when they become vested.

     SECTION 2. VESTING.

          (A) VESTING DATES. The Vesting Dates for your Awarded Shares are
     specified on this Award Notice. On each Vesting Date, you will obtain
     unrestricted ownership of the Awarded Shares that vest on that Vesting
     Date. A stock certificate (or a book entry listing) evidencing your
     unrestricted ownership of the vested Awarded Shares will be deposited in
     your brokerage account at Merrill Merchants Bank. If a legended stock
     certificate evidencing these Awarded Shares was previously placed in your
     brokerage account, it will be exchanged for an unrestricted certificate or
     book entry listing.

          (B) FORFEITURES. If you terminate service with the Company prior to a
     Vesting Date, you will forfeit any Awarded Shares that are scheduled to
     vest on that date. When you forfeit Awarded Shares, all of your interest in
     the Awarded Shares will be canceled and any stock certificate or other
     evidence of ownership that was placed in a brokerage account for you will
     be returned to the Plan Trustee to be used for future awards to others. You
     agree to take any action and execute and deliver any document that the
     Company requests to effect the return of your unvested Awarded Shares. In
     the event you do not cooperate with the Company in this regard, you hereby
     appoint and designate the Company as your attorney-in-fact for the purpose
     of taking any action and signing any document, in your name, which the
     Company determines is necessary to enforce the forfeiture.

          (C) ACCELERATED VESTING. All of your Awarded Shares that have not
     previously vested will become fully vested immediately, and without any
     further action on your part, in the event of your death, Disability (as
     defined in the Plan), Retirement (as defined in the Plan) or in the event a
     Change of Control (as defined in the Plan). You may designate a Beneficiary
     to receive any Awarded Shares that vest upon your death using the
     Beneficiary Designation attached as Appendix A.

          (D) DEFINITION OF SERVICE. For purposes of determining the vesting of
     your Awarded Shares, you will be deemed to be in the service of the Company
     for so long as you serve in any capacity as an employee, officer,
     non-employee director or consultant of the Company or its affiliates.

     SECTION 3. DIVIDENDS. If your Awarded Shares are in the form of Legended
Certificates, any dividends declared by the Company with a record date that is
after the Effective Date specified in this Award Notice will be credited to your
brokerage account at Merrill Merchants Bank for your benefit on an unrestricted
basis. If your Awarded Shares are designated "Escrow", you will receive the
dividends on an unrestricted basis, but they will be paid to you by, and will be
taxable in the same manner as other compensation paid to you by, the Company; by
signing this Award Notice and accepting its terms, you direct Merrill Merchants
Bank to remit to the Company for payment to you any dividends that either of
them may receive as the record holder of your unvested Awarded Shares.

     SECTION 4. VOTING RIGHTS. You shall have the right to control all voting
rights relating to all unvested Awarded Shares. If your Awarded Shares are
placed in your brokerage account at Merrill Merchants Bank, you will receive
proxy materials for voting in the same manner as other shareholders with Shares
in brokerage accounts. If your unvested Awarded Shares are held by the Plan
Trustee, the Plan Trustee will ask you for voting directions and will follow
your directions in voting your unvested Awarded Shares.

     SECTION 5. AMENDMENT. This Award Notice may be amended, in whole or in part
and in any manner not inconsistent with the provisions of the Plan, at any time
and from time to time, by written agreement between you and the Company.

     SECTION 6. PLAN PROVISIONS CONTROL. This Award Notice, and the rights and
obligations created hereunder, shall be subject to all of the terms and
conditions of the Plan. In the event of any conflict between the provisions of
the Plan and the provisions of this Award Notice, the terms of the Plan, which
are incorporated herein by reference, shall control.

<PAGE>
                   APPENDIX A TO RESTRICTED STOCK AWARD NOTICE
                              WESTBANK CORPORATION
                       2004 RECOGNITION AND RETENTION PLAN
                          BENEFICIARY DESIGNATION FORM

================================================================================
GENERAL               Use this form to designate the Beneficiary(ies) who will
INFORMATION           receive Shares available for distribution at the time of
                      your death.

Name of                                          Social Security Number
Award
Recipient ____________________________           _______-_____-_______

BENEFICIARY           Complete sections A and B. If no percentage shares are
DESIGNATION           specified, each Beneficiary in the same class (primary or
                      contingent) shall have an equal share. If any designated
                      Beneficiary predeceases you, the shares of each remaining
                      Beneficiary in the same class (primary or contingent)
                      shall be increased proportionately.

A. PRIMARY BENEFICIARY(IES). I hereby designate the following person as my
primary Beneficiary under the Plan, reserving the right to change or revoke this
designation at any time prior to my death:

     NAME                 ADDRESS         RELATIONSHIP      BIRTHDATE    SHARE

                                                                              %
------------------  ------------------  -----------------  -----------  -------

                    ------------------
                                                                              %
------------------  ------------------  -----------------  -----------  -------

                    ------------------
                                                                              %
------------------  ------------------  -----------------  -----------  -------

                    ------------------

                                                                  Total = 100%

B. CONTINGENT BENEFICIARY(IES). I hereby designate the following person(s) as my
contingent Beneficiary(ies) under the Plan to receive benefits only if all of my
primary Beneficiaries should predecease me, reserving the right to change or
revoke this designation at any time prior to my death with respect to all
outstanding Awarded Shares:

     NAME                 ADDRESS         RELATIONSHIP      BIRTHDATE    SHARE

                                                                              %
------------------  ------------------  -----------------  -----------  -------

                    ------------------
                                                                              %
------------------  ------------------  -----------------  -----------  -------

                    ------------------
                                                                              %
------------------  ------------------  -----------------  -----------  -------

                    ------------------

S   H    I understand that this Beneficiary Designation shall be effective only
I   E    if properly completed and received by the Corporate Secretary of
G   R    Westbank Corporation prior to my death, and that it is subject to all
N   E    of the terms and conditions of the Plan. I also understand that an
         effective Beneficiary designation revokes my prior designation(s) with
         respect to all outstanding Awarded Shares.

         __________________________________         ______________________
                   YOUR SIGNATURE                            DATE

================================================================================

______________________________ Internal Use Only _______________________________

This Beneficiary  Designation was received by the Corporate            Comments
Secretary of Westbank Corporation on the date indicated.

By _____________________________________       ______________
           AUTHORIZED SIGNATURE                     DATEfirst amendment to the license

 

FIRST AMENDMENT TO 

DEVELOPMENT AND LICENSE AGREEMENT 

THIS AGREEMENT is made, entered into and effective as of the 9th day of January 2004 between and among C and T Co. Inc ., (“C&T”) a corporation incorporated under the laws of the Province of Ontario, Axion Power Corporation (“Axion”), a Canadian federal corporation (“Axion”) and Tamboril Cigar Company (“Tamboril”), a corporation organized under the laws of the State of Delaware. 

WHEREAS, on November 15, 2003 C&T and Axion entered into a Development and License Agreement which granted Axion certain rights to develop and commercialize certain patents, know-how and other intellectual property (the “Technology”) owned by C&T that relates to a hybrid lead-carbon battery/capacitor described on Schedule A to that agreement; and 

WHEREAS, the Development and License Agreement provided that C&T would be entitled to receive certain license fees, royalties and equity interests in Axion as consideration for the intellectual property rights and the contingent property transfers specified therein; and 

WHEREAS, Tamboril is a public company that has registered under and subject to the reporting requirements of the Securities Exchange Act of 1934 since 1996 and is traded in the over-the-counter market; and 

WHEREAS, under the terms of a Reorganization Agreement dated December 31, 2003 between Tamboril, Axion and certain stockholders of Axion, Axion became a majority-owned subsidiary of Tamboril and the Axion stockholders of became stockholders of Tamboril; and 

WHEREAS, under the terms of a First Addendum to the Reorganization Agreement dated January 9, 2004 between Tamboril and certain other stockholders of Axion, Axion became a wholly-owned subsidiary of Tamboril and certain principal stockholders of C&T also became stockholders of Tamboril; and 

WHEREAS the parties want to formalize certain provision of the collateral agreements that were negotiated in connection with the execution of the First Addendum to the Reorganization Agreement; 

NOW THEREFORE , in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which the parties hereby acknowledge, the Parties agree as follows: 

ARTICLE 1

DEFINITIONS AND PRINCIPLES OF INTERPRETATION 

 

1.1     Definitions 

Whenever used in this Agreement, unless there is something inconsistent in the subject matter or context, the following words and terms shall have the meanings set out below: 

	 
	 	 	 
	

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(a)    " Agreement " means this Agreement, including all schedules, and all instruments supplementing or amending or confirming this Agreement and references to "Article" or "Section" mean and refer to the specified Article or Section of this Agreement; 

(b)    " Claims " means any claim, demand, action, cause of action, damage, loss, costs, liability or expense, including, without limitation, reasonable professional fees and all costs incurred in investigating or pursuing any of the foregoing or any proceeding relating to any of the foregoing; 

(c)    " Encumbrances " means any pledge, lien, charge, security agreement, lease, title retention agreement, mortgage, encumbrance, option or adverse claim against the Intellectual Property, of any kind or character whatsoever; 

(d)    " Intellectual Property " means: 

(i)   all patents and inventions and applications thereof used in or relating to the Technology, and patents which may be issued out of current applications, (including divisions, reissues, renewals, re-examinations, continuations, continuations in part and extensions) applied for or registered in any jurisdiction, including, without limitation, those issued patents and patent applications identified in Schedule A, 

(ii)    all copyrights used in or relating to the Technology, whether registered or not, including, without limitation, those copyright registrations and applications identified in Schedule A, 

(iii)    all right, title and interest in and to all trade secrets used in or relating to the Technology including, without limitation, all information of a scientific, technical or business nature whether in oral, written, graphic, machine readable, electronic or physical form, all know-how, documented research, processes, computer software and associated manuals, prototypes and other technology, methods of production, drawings, blueprints, patterns, plans, flow charts, equipment and parts lists, descriptions and related instructions, formulas, designs, manuals, records and procedures used in or relating to the Technology; 

(iv)    all industrial designs or similar rights used in or relating to the Technology, whether registered or not, including, without limitation, those industrial design registrations identified in Schedule A; and 

(v)    all trade-marks, trade names, designs, graphics, logos and other commercial symbols used in connection with the Technology, whether registered or not, including, without limitation, the trade-marks identified in Schedule A; 

 

 

	
 

	
 
	
 
	
 

	

	
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(e)    " Intellectual Property Rights " means all right, title and interest in and to and the benefit of all of the Intellectual Property; 

(f)   " License Agreement " means the Development and License Agreement between C&T and Axion dated November 15, 2003, including all schedules, and all instruments supplementing or amending or confirming such agreement; 

(g)   " Person " means any individual, sole proprietorship, partnership, unincorporated association, unincorporated syndicate, unincorporated organization, trust, body corporate, governmental authority, and a natural person in such person's capacity as trustee, executor, administrator or other legal representative; and 

1.2     Certain Rules of Interpretation In this Agreement: 

(a)    Time is of the essence in the performance of the Parties respective obligations; 

(b)    Unless otherwise specified, all references to money amounts are to U.S. Dollars; 

(c)    The descriptive headings of Articles and Sections are inserted solely for convenience of reference and are not intended as complete or accurate descriptions of the content of such   Articles or Sections; and 

(d)    The use of words in the singular or plural, or with a particular gender, shall not limit the scope or exclude the application of any provision of this Agreement to such person or persons or circumstances as the context otherwise permits. 

 

1.3     Applicable Law This Agreement shall be construed in accordance with the laws of the State of Delaware. 

 

 

ARTICLE 2

PURCHASE AND SALE 

 

2.1     Transfer of Certain Intellectual Property and Contract Rights. C&T hereby sells, bargains transfers and conveys all of its residual right, title and interest in and to the Intellectual Property in exchange for 25,000,000 Tamboril warrants. The residual rights conveyed to Axion include but are not limited to: 

(a)    All rights that C&T has or may have to independently exploit the Intellectual property; 

(b)    All rights, powers and privileges that C&T has or may have under any pre-existing license or other agreements that grant any person other than Axion any right to exploit all or any part of the Intellectual Property for any purpose; and 

(c)    All rights to fixed or contingent license fees, royalties or other payments of any nature that C&T has or may have under any pre-existing license or other 

 

	 
	 	 	 
	

	
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             agreements that grant any person other than Axion any right to exploit all or any part of the Intellectual Property for any purpose. 

In connection with the foregoing sale of the Intellectual Property, C&T hereby compromises, waives and surrenders all of its fixed or contingent rights to receive the share consideration specified in Section 3.1(b) of the License Agreement; the future royalty payments specified in Section 3.2 of the License Agreement; and the conditional merger consideration specified in Section 12.1 of the License Agreement. 

2.2     Description of Tamboril Warrants. The Tamboril warrants specified in Section 2.1 shall be valid for a period of two years and each Tamboril Warrant shall be exercisable to purchase one share of Tamboril common stock at a price of $.125 per share. Within 30 days after the filing of its Annual Report on Form 10-KSB for the year ended December 31, 2003, Tamboril shall file a registration statement under the Securities Act of 1933 for the purpose of registering the common stock issuable upon exercise of the Tamboril warrants. If Tamboril’s registration statement does not become effective within 5 months after the original issue date of the warrants, the expiration date of the warrants will be automatically extended until the 19-month anniversary of the effective date. 

2.3     Exclusion of Certain Payments. Notwithstanding any provision of this Agreement, the Intellectual Property and contract rights that C&T has transferred to Axion pursuant to Section 2.1 shall not include the fixed cash amounts payable to C&T by Axion pursuant to the License Agreement and the subsequent letter Amendment dated November 17, 2003. 

2.4     Transfer and Delivery of Purchased Assets C&T shall deliver the Intellectual Property Rights to Axion, free and clear of all Encumbrances and shall effect such registrations, recordings and filings with public authorities as may be required in connection with the transfer of the Intellectual Property Rights to Axion. On written demand by Axion, C&T shall execute and deliver to Axion all such further assignments, instruments of transfer, assurances, consents and other documents as may be reasonably requested by Axion. 

2.5      Sales and Transfer Taxes Each Party shall pay direct to the appropriate taxing authorities any sales and transfer taxes, registration charges and transfer fees other than the goods and services tax ("GST") imposed under Part IX of the Excise Tax Act (Canada) payable by it, applicable in respect of the transfer of the Intellectual Property under this Agreement and, upon the reasonable request of each Party, the other Party shall furnish proof of such payment. 

ARTICLE 3

SECURITY 

 

3.1     Purchase Money Security Interest As security for payment of the excluded indebtedness referenced in Section 2.3 and described more fully in the License Agreement and the subsequent letter Amendment dated November 17, 2003, Axion hereby grants C&T a purchase money security interest in the Intellectual Property until all such

 

 

	
 

	
 
	
 
	
 

	

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 indebtedness shall have been paid and the common stock of Tamboril is listed on the Nasdaq Stock Market or the American Stock Exchange. C&T shall have the right to file and record this agreement or other financing statements pursuant to applicable law to evidence C&T’s security interest in the Intellectual Property. On written demand by C&T, Axion shall execute and deliver to C&T such additional documentation as C&T may reasonably request to perfect C&T’s security interest. When the excluded indebtedness referenced in Section 2.3 and described more fully in the License Agreement and the subsequent letter Amendment dated November 17, 2003 has been paid in full and the common stock of Tamboril is listed for trading on an appropriate stock market, C&T shall, at Axion’s request and expense, execute, deliver, and file and cause to be executed, delivered, and filed to and for the benefit of Axion within a reasonable period of time all instruments necessary to discharge the Security. 

IN WITNESS WHEREOF the Parties have duly executed this Agreement. 

	
 
	
C AND T CO. INC. 

 

Per:                             Authorized Signing Officer 

I have authority to bind the corporation. 

 

AXION POWER CORPORATION 

 

Per:                             Authorized Signing Officer 

I have authority to bind the corporation. 

 

TAMBORIL CIGAR COMPANY 

 

Per:                             Authorized Signing Officer 

I have authority to bind the corporation. 

	 
	 	 	 
	

	 

 

 

SCHEDULE A 

INTELLECTUAL PROPERTY 

 

“Technology” 

The “Technology” means a hybrid lead-carbon battery/capacitor technology developed by the Vendor. The Technology includes: 

 

(a)   Intellectual property which is described in U.S. patent 6,466,429 B1 and in related patents pending or planned; 

(b)   The trade secrets and other such proprietary know-how information relating to the design and manufacturing of the Technology which are owned and controlled by the Vendor; 

(c)   Unpublished trade secrets and product-specific know-how related to the performance, production techniques, and production variants of the Technology; 

(d)   All enhancements or improvements by the Vendor to the Technology; and 

(e)   Other such intellectual property created and owned by the Vendor, whether funded by the Vendor or by any third party.

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