The tailwheel-equipped airplane was substantially damaged while landing at the Windham Airport at about 1100 Eastern time. The Student pilot was not injured. Visual conditions prevailed for the local instructional flight. During the first landing attempt, the airplane bounced and touched down in a left crab. The pilot attempted to straighten the airplane; however, it departed the left side of the runway and struck a fence. Winds were from 140 degrees at three knots.