Document:

Exhibit 10.22

 

EXECUTION VERSION

 

CHANGE IN CONTROL
SEVERANCE AGREEMENT

 

THIS CHANGE IN CONTROL
SEVERANCE AGREEMENT (the “Agreement”) is entered into as of May 5,
2008, by and among Noble Environmental Power, LLC, a Delaware limited liability
company (“Noble”) and Walter Q. Howard (the “Executive”).

 

The parties agree as follows:

 

1.                                       Definitions. 
For purposes of this Agreement, the following terms shall have the
following meanings:

 

(a)                                  “Board” shall mean the Board
of Directors of Noble or similar governing body of Noble.

 

(b)                                 “Cause” shall mean any of the
following: (1) the failure by the Executive to substantially perform his
duties as an employee of Noble, which failure is not remedied by the Executive
within thirty (30) days after receiving written notice from the Board
specifying such failure; (2) the engagement by Executive in misconduct in
the performance of his duties as an employee of Noble, which misconduct is
materially injurious to Noble or any of the Noble Companies; (3) the
admission by the Executive to, the conviction of the Executive for, the
entrance into a plea of guilty or nolo
contendere by the Executive to, or the indictment of the Executive
for, any felony or crime involving moral turpitude; (4) any act of fraud
or dishonesty by the Executive in connection with the performance of his duties
as an employee of Noble or in the course of his employment with Noble, which
act is materially injurious to Noble or any of the Noble Companies; (5) any
use by the Executive of narcotics, alcohol or illicit drugs in a manner that
has, or may reasonably be expected to have, a detrimental effect on the
Executive performing his duties as an employee of Noble or on the reputation of
Noble or any of the Noble Companies; or (6) a material violation by the Executive
of any policy sponsored by Noble or the Noble Companies, which violation
results in injury to Noble or any of the Noble Companies.

 

(c)                                  “Change in Control” shall
mean:  (1) the consummation of the
sale, transfer, conveyance or other disposition (including any merger,
reorganization or consolidation) in one or a series of related transactions of
the voting equity securities of Noble or a similar transaction (or
transactions) (other than an initial public offering of equity securities of
Noble through a registration statement filed with the Securities and Exchange
Commission) such that immediately following such transaction (or transactions)
any “person” or related “group” of “persons” (as such terms are used in
Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934,
as amended) (other than Noble, a Noble Company, or an affiliate of Noble, or
any employee benefit plan sponsored by Noble, a Noble Company, or an affiliate
of Noble) beneficially owns more than fifty percent (50%) of the total voting
equity securities of Noble outstanding immediately after such transaction; (2) the
sale or transfer of all or substantially all of the assets of Noble to another

 

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entity which is not a Noble Company or
otherwise an affiliate of Noble; or (3) the consummation of a merger or
consolidation of Noble with any other entity that is not a Noble Company or
otherwise an affiliate of Noble, other than a merger or consolidation which
would result in the voting securities of Noble outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity or its parent) at
least fifty percent (50%) of the total voting power of the voting securities of
Noble or such surviving entity or its parent outstanding immediately after such
merger or consolidation.

 

(d)                                 “Employment Agreement” shall
mean that certain Employment Agreement, dated as of May 5, 2008, by and
between Noble and the Executive.

 

(e)                                  “Good Reason” shall mean the
occurrence of any of the following:  (1) a
material and adverse reduction in the nature or scope of the authority or title
held by the Executive, or duties assigned to the Executive, under the
Employment Agreement; (2) a material reduction in Salary (as defined in
the Employment Agreement) received by the Executive immediately prior to the
Change in Control, other than any such reduction in Salary (as defined in the
Employment Agreement) that results from the implementation by Noble of a
general salary reduction plan among all of its senior executives, provided, that such
general salary reduction plan shall not reduce the Salary (as defined in the
Employment Agreement) received by the Executive immediately prior to the Change
in Control by more than twenty-five (25) percent; (3) the relocation of
Executive’s principal place of employment more than fifty (50) miles from its
location on the effective date of the Employment Agreement; or (4) any
failure by any successor to all or substantially all of the assets or business
of Noble to assume this Agreement.

 

Notwithstanding anything in the foregoing to
the contrary, Executive may terminate his employment for Good Reason only
if:  (i) the Executive provides
written notice to Noble specifying the event(s) purported to constitute
Good Reason in reasonable detail, within sixty (60) days following the
occurrence of such event(s) (the “Notice”); (ii) the Notice
specifies a date for the Executive’s termination of employment that is at least
thirty (30) days after the Executive provides the Notice to Noble; and (iii) Noble
has not remedied the event(s) alleged to constitute Good Reason by the
Executive within such thirty (30) day period.

 

(f)                                    “Noble Company” shall mean
any entity that is directly or indirectly controlled by, in control of, or
under common control with, Noble.

 

2.                                       Effectiveness
of Agreement; Term.

 

(a)                        The term of this Agreement shall
commence on the date that Noble completes an Initial Public Offering, and shall
end on the first anniversary of a Change in Control.  For purposes of this Section 2(a), an “Initial
Public Offering” shall mean the consummation of the sale by one or more
persons, in an underwritten public offering of shares of common equity of
Noble, that (i) is led by a nationally recognized financial institution
reasonably acceptable to the Board of Directors, 

 

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(ii) is registered on a Form S-1
registration statement under the Securities Act of 1933, and (iii) has
gross proceeds (before underwriters’ discounts and selling commissions) of not
less than $50,000,000, following which such publicly-offered shares are listed
on the New York Stock Exchange or the NASDAQ National Market System.

 

(b)                       Notwithstanding anything in this
Agreement to the contrary, the Board shall have the authority to amend or
terminate this Agreement, provided that such amendment or termination shall not
become effective until one year after the Board provides Executive with written
notice of such amendment or termination. 
For the avoidance of doubt, such amendment or termination shall not
apply to any Change in Control occurring during the one-year period prior to
the effectiveness of such amendment or termination.

 

3.                                       Severance
Benefits.

 

(a)                                  In the event Noble terminates the
Executive without Cause or Executive terminates his employment for Good Reason,
during the period commencing as of the Change in Control and ending twelve (12)
months following such Change in Control, and subject to Executive executing
within thirty (30) days following such termination of employment, and not
subsequently revoking, a general release of all claims arising under the
Employment Agreement or otherwise related to Executive’s employment by Noble,
which release shall be in a form to be provided by Noble, and subject to
Executive abiding in all material respects by his obligations under this
Agreement, Noble will provide Executive with the following payments:

 

(i)                                     A cash amount equal to twelve (12)
months of Salary (as defined in the Employment Agreement) as of the date of
Executive’s termination of employment, less taxes and withholdings, which
amount shall be paid in accordance with the normal payroll practices of Noble
over the twelve (12) month period following the date of Executive’s termination
of employment (the “Salary Continuation”).  Notwithstanding anything in the foregoing to
the contrary, if the Executive terminates his employment for Good Reason under Section 1(e)(2),
then the Salary Continuation shall be calculated using the Salary (as defined
in the Employment Agreement) that Executive was entitled to receive immediately
prior to the Change in Control.

 

(ii)                                  A cash amount equal to (A) the
bonus that Executive would have been eligible to receive pursuant to Section 3(b) of
the Employment Agreement, for the performance period in which Executive incurs
a termination from employment, had the Executive remained employed with Noble
until the January 1 following the date of his termination of employment,
or such other date the Board may have required under Section 3(b) of
the Employment Agreement, multiplied by (2) a fraction, the numerator of
which is the number of days that the Executive had been employed with 

 

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Noble during the performance period in which
Executive incurs a termination of employment, and the denominator of which is
the total number of days in such performance period (the “Prorated Bonus”).  For the avoidance of doubt, the Prorated Bonus
shall be calculated based on the performance of Noble for the entirety of the
performance period in which the Executive incurs a termination of employment,
as such performance is determined by the Board in its sole discretion, which
determination shall be made when the Board determines the bonuses payable to
other executive officers of Noble for the same performance period.

 

(iii)                               Reimbursement (or direct payment to
the carrier), for twelve (12) months following the Executive’s termination of
employment (the “Continuation Period”), for a portion of the premium
costs incurred by Executive (and his spouse and dependents, where applicable)
to obtain COBRA coverage pursuant to one of the group health plans sponsored by
Noble (or a Noble Company), which reimbursement (or direct payment) shall equal
the premium costs incurred by Noble (or a Noble Company, if applicable), for
the Continuation Period, on behalf of a similarly-situated employee, to obtain
coverage under the same group health plan sponsored by Noble (or a Noble
Company, if applicable) (the “Health Care Continuation”).

 

Notwithstanding anything in the foregoing to
the contrary, (X) Executive shall be entitled to receive the Health Care
Continuation only if Executive is participating in a group health plan
sponsored by Noble (or a Noble Company) as of the date on which Executive
incurs a termination of employment, and (Y) the Executive shall be
responsible, during the Continuation Period, for premium costs for COBRA
coverage in excess of the Health Care Continuation, and the Executive shall be
responsible, after the Continuation Period, for all premium costs for COBRA
coverage, if the Executive continues to elect such COBRA coverage.

 

4.                                       Timing of
Payments; Early Termination of Obligations.

 

(a)                                  Notwithstanding the foregoing:  (i) subject to Section 4(a)(ii),
Executive shall receive the Prorated Bonus when bonuses under the performance
period in question are paid to other executive officers of Noble, in the year
following the year in which the Executive incurs a termination of employment,
but in no event after the end of such year; (ii) any portion of the Salary
Continuation, the Prorated Bonus, or the Health Care Continuation which would
otherwise have been paid to the Executive or reimbursed before the first normal
payroll payment date falling on or after the fortieth (40th) day following the
date of Executive’s termination of employment (the “First Payment Date”)
shall be made on the First Payment Date; (iii) the Executive shall not be
entitled to any Salary Continuation or Prorated Bonus unless the Executive’s
termination of employment constitutes a “separation from service” within the
meaning of Treasury Regulation Section 1.409A-1(h); and (iv) each
payment of Salary Continuation is intended to constitute a separate payment
from each other payment of Salary Continuation and from the payment 

 

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of the Prorated Bonus for purposes of
Treasury Regulation Section 1.409A-2(b)(2).

 

(b)                                 Notwithstanding the foregoing, if
the Executive accepts an offer of employment at any time during the
Continuation Period, which acceptance would not be in violation of the
obligations of the Executive under this Agreement, Noble shall no longer be
obligated to pay the Health Care Continuation, should the Executive become
eligible to participate in any other group health plan as a result of his
acceptance of such offer of employment. 
For the purposes of this Section 4(b), the Executive shall notify
Noble of his acceptance of an offer of employment, and the terms and conditions
of such offer, on the day of such acceptance. 
If the Executive does not so notify Noble, then Noble may recover from
the Executive any Health Care Continuation paid after the date that the
Executive accepted such an offer of employment. 
For the avoidance of doubt, if the Executive would violate his
obligations under this Agreement by accepting such an offer of employment, or
by performing any services pursuant to such an acceptance, then Noble will no
longer be subject to any obligation to pay the Salary Continuation, the
Prorated Bonus, or the Health Care Continuation.

 

5.                                       Other
Terminations.  The parties agree that Executive will not be
entitled to any severance payments (including the Salary Continuation, the
Prorated Bonus, or the Health Care Continuation) if, during the period
commencing as of the Change in Control and ending twelve (12) months following
a Change in Control: (A) Noble terminates his employment for Cause; (B) he
resigns without Good Reason; or (C) he dies or terminates due to
Disability (as defined in the Employment Agreement).

 

6.                                       Exclusive
Remedy.  The parties agree that, except as set forth
in Section 3, or in the Employment Agreement, or as determined by the
terms of any employee benefit plan in which the Executive was participating as
of his termination of employment, or as otherwise required by law, Executive
will not be entitled to receive any compensation or benefits after termination
of his employment with Noble.

 

7.                                       Best Pay
Provision.  Notwithstanding the other provisions of this
Agreement, in the event that the amount of payments payable to the Executive
under this Agreement, together with any payments or benefits payable under any
other plan, program, arrangement or agreement maintained by (or on behalf of)
Noble, would constitute an “excess parachute payment” (within the meaning of Section 280G
of the Internal Revenue Code of 1986, as amended (the “Code”)), the
payments under this Agreement shall be reduced (by the minimum possible
amounts) until no amount payable to the Executive under this Agreement
constitutes an “excess parachute payment” (within the meaning of Section 280G
of the Code); provided, however, that no such reduction shall be made if the
net after-tax payment (after taking into account Federal, state, local, or
other income and excise taxes) to which the Executive would otherwise be
entitled without such reduction would be greater than the net after-tax payment
(after taking into account Federal, state, local or other income and excise
taxes) to the Executive resulting from the receipt of such payments with such
reduction.  If, as a result of subsequent
events or conditions (including a subsequent payment or absence of a subsequent

 

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payment under this Agreement or other plans,
programs, arrangements or agreements maintained by (or on behalf of) Noble), it
is determined that payments under this Agreement have been reduced by more than
the minimum amount required to prevent any such payments from constituting an “excess
parachute payment,” then an additional payment shall be promptly made to the
Executive in an amount equal to the additional amount that can be paid without
causing any payment to constitute an “excess parachute payment.”  All determinations required to be made under
this Section 7, including whether a payment would result in an “excess
parachute payment” and the assumptions to be utilized in arriving at such
determination, shall be made by a “Big Four” accounting firm selected by
Noble.  All determinations made by the “Big
Four” accounting firm under this Section 7 shall be final and binding upon
Noble and the Executive.

 

8.                                       Confidential
or Proprietary Information.

 

(a)                                  Except in connection with the faithful
performance of Executive’s duties as an employee of Noble or pursuant to Section 8(c) or
8(d), Executive agrees that he will not, at any time during his employment with
Noble or thereafter, directly, indirectly or otherwise, use, disseminate,
disclose or publish, or use for his benefit, or for the benefit of any person,
firm, corporation or other entity, any Confidential or Proprietary Information
of or relating to Noble or the Noble Companies, nor shall he deliver to any
person, firm, corporation or other entity any document, record, notebook,
computer program or similar repository of or containing any such Confidential
or Proprietary Information.  For purposes
of this Agreement, “Confidential or Proprietary Information” includes,
without limitation: all trade secrets, intellectual property in the form of
patents, trademarks and copyrights and applications therefor, ideas,
inventions, works, discoveries, improvements, information, documents, formulae,
practices, processes, methods, developments, source code, modifications,
technology, techniques, data, programs, other know-how or materials, owned,
developed or possessed by Noble or the Noble Companies, whether in tangible or
intangible form, information with respect to Noble’s or the Noble Companies’
operations, processes, products, inventions, business practices, finances,
principals, vendors, suppliers, customers, potential customers, marketing
methods, costs, prices, contractual relationships, regulatory status, prospects
and compensation paid to employees or other terms of employment.  The parties hereby stipulate and agree that
as between them the foregoing matters are important and material Confidential
or Proprietary Information, which affect the successful conduct of the
businesses of Noble and the Noble Companies (and any successor or assignee of
Noble).

 

(b)                                 Upon termination of Executive’s
employment with Noble, whether at the instance of Executive or Noble and for
whatever reason, Executive will promptly deliver to Noble all correspondence,
records, drawings, manuals, letters, notes, notebooks, computers, cell phones,
reports, programs, data, audio or videotapes (or other information contained on
any digital information medium), plans, proposals, financial documents, or any
other documents or materials
containing Confidential or Proprietary Information, information otherwise owned
by Noble 

 

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or the Noble Companies, or containing
information concerning the customers, business plans, marketing strategies,
products or processes of Noble or the Noble Companies. Executive shall also
return any materials or information received in connection with his employment
from clients, prospects or vendors of Noble or the Noble Companies.

 

(c)                                  Executive may respond to a lawful
and valid subpoena or other legal process; provided, however, that Executive
shall give Noble the earliest possible notice thereof, and shall, as much in
advance of the return date as possible, make available to Noble and its counsel
the documents and other information sought. 
Executive shall assist such counsel at Noble’s expense in resisting or
otherwise responding to such subpoena or process.

 

(d)                                 Nothing in this Agreement shall
prohibit Executive from:  (1) disclosing
information and documents when required by law, subpoena or court order
(subject to the requirements of Section 8(c) above); (2) disclosing
information and documents to his attorney or tax adviser for the purpose of
securing legal or tax advice; (3) disclosing the post-employment
restrictions in this Agreement in confidence to any potential new employer; or (4) retaining,
at any time, his personal correspondence, personal rolodex and documents
related to his own personal benefits, entitlements and obligations.

 

(e)                                  The Executive agrees that the terms
of this Agreement constitute Confidential and Proprietary Information, and
agrees, subject to Section 8(c) and 8(d), to not disclose the terms
of this Agreement to any third party, except as provided in Section 8(d) and
except as provided in a proceeding under Section 14(j) hereof to
enforce the terms of this Agreement.

 

9.                                       Inventions. 
All rights to discoveries, inventions, documents, improvements and
innovations (including all data and records pertaining thereto) related to the
business of Noble, whether or not patentable, copyrightable, registrable as a
trademark, or reduced to writing, that Executive may discover, invent, improve,
modify or originate during Executive’s employment, either alone or with others
and whether or not during working hours or by the use of the facilities of
Noble or the Noble Companies (“Inventions”), shall be the exclusive
property of Noble and the Noble Companies. 
Executive shall promptly disclose all Inventions to Noble, shall execute
at the request of Noble any assignments or other documents Noble may deem
reasonably necessary to protect or perfect its rights therein or the rights of
any Noble Company therein, and shall assist Noble, upon reasonable request and
at Noble’s expense, in obtaining, defending and enforcing Noble’s rights
therein and/or the rights of any Noble Company therein.  Executive hereby appoints Noble as his
attorney-in-fact to execute on his behalf any assignments or other documents
reasonably deemed necessary by Noble to protect or perfect its rights or the
rights of any Noble Company to any Inventions.

 

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10.                                 Non-Competition and Non-Solicitation.

 

(a)                                  While Executive is employed by Noble
and for a period of twelve (12) months following Executive’s termination of
employment for whatever reason (the “Restricted Period”), Executive
shall not directly or indirectly, individually or on behalf of any other person
or entity, manage, participate in, work for, consult with, render services for,
or take an interest in (as an owner, stockholder, partner or lender) any
Competitor in an area of business in which Competitor directly competes or
seeks to directly compete with Noble or the Noble Companies.

 

For purposes of this Agreement, “Competitor”
means any business, company or individual which is in the business, or is
actively seeking to be in the business, of developing, constructing, managing,
owning or operating wind energy projects in: (i) Connecticut; (ii) Maine;
(iii) Michigan; (iv) New Hampshire; (v) New York; (vi) Texas;
(vii) Vermont; (viii) Wyoming; or (ix) any other state in the
United States in which Noble operates, or has been developing, wind energy
projects within the twelve (12) months preceding Executive’s termination.

 

(b)                                 While the Executive is employed by
Noble and during the Restricted Period, Executive shall not, directly or
indirectly, individually or on behalf of any other person or entity:  (1) divert or attempt to divert from
Noble any business with any customer, partner or other person with which Noble
had any business contact or association while Executive was employed by
Noble;  (2)  induce or attempt to
induce any customer, partner or other person with which Noble had any business
contact or association to reduce or refrain from doing business with Noble or
the Noble Companies;  (3) induce or
attempt to induce, or cause, other than by means of any general solicitation by
advertisement or otherwise, any employee or consultant of Noble to terminate
his or her employment or relationship with Noble; or (4) recruit or hire,
other than by means of any general solicitation by advertisement or otherwise,
any person who was an employee or consultant of Noble after his or her
employment or relationship with Noble has terminated.

 

11.                                 Non-Disparagement. 
The Executive agrees, while he is employed by Noble and thereafter, to
refrain from disparaging Noble and the Noble Companies, including any of their
services, technologies or practices, or any of their directors, officers,
agents, employees, former employees, representatives or stockholders, either
orally or in writing; provided, however, that nothing in the foregoing shall
preclude the Executive from making truthful statements that are required by
applicable law, regulation or legal process. 
Noble agrees, while Executive is employed by Noble and thereafter, to
refrain from disparaging the Executive; provided, however, that Noble’s
agreement to this non-disparagement clause shall be limited to official
statements issued by Noble as an organization and statements of officers of
Noble and members of the Board; provided, further, that nothing in the
foregoing shall preclude Noble, its officers or members of the Board from
making truthful statements that are required by applicable law, regulation or
legal process.

 

12.                                 Former
Employers.  The Executive represents that the Executive’s
employment by Noble does not and will not breach any agreement with any former
employer, including any non-compete agreement or any agreement to keep in
confidence or refrain from using 

 

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information
acquired by the Executive prior to the Executive’s employment by Noble.  While Executive is employed by Noble, the
Executive agrees that the Executive will not violate any non-solicitation
agreements the Executive entered into with any former employer or improperly
make use of, or disclose, any information or trade secrets of any former
employer or other third party, nor will the Executive bring onto the premises
of Noble or use any unpublished documents or any property belonging to any
former employer or other third party, in violation of any lawful agreement with
that former employer or third party.

 

13.                                 Injunctive
Relief.  Executive acknowledges that a breach of the covenants
contained in Sections 8 through 12 will cause irreparable damage to Noble and
its goodwill, the exact amount of which will be difficult or impossible to
ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, Executive agrees that in the
event of a breach of any of the covenants contained in Sections 8 through 12,
in addition to any other remedy which may be available at law or in equity,
Noble will be entitled to specific performance and injunctive relief.

 

14.                                 General
Provisions.

 

(a)                        Interaction with Employment
Agreement.  Nothing in this Agreement is intended to, or
should be construed as, contradicting, superseding or modifying the Employment
Agreement, except that this Agreement, to the extent that it is in effect, and
not the Employment Agreement, shall govern if the Executive incurs a
termination of employment during the period commencing as of the Change in
Control and ending twelve (12) months following such Change in Control.  For the avoidance of doubt, if Executive
receives any severance payments (including the Salary Continuation, the
Prorated Bonus, and the Health Care Continuation) pursuant to this Agreement,
Executive shall not be entitled to receive any severance payments under the
Employment Agreement.

 

(b)                       Notices. 
All notices and other communications required or permitted hereunder
shall be in writing and shall be deemed given when (1) delivered
personally, (2) delivered by certified or registered mail, postage
prepaid, return receipt requested, or (3) delivered by overnight courier
(provided that a written acknowledgment of receipt is obtained by the overnight
courier) to the party concerned at the address indicated below or to such
changed address as such party may subsequently give such notice of:

 

If to Noble:

 

Noble Environmental Power, LLC

8 Railroad Avenue, Suite A

Essex, Connecticut 06426

Attention: Chris Lowe

 

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WITH A COPY TO:

General Counsel

 

If to Executive:

 

Walter Q. Howard

10 Brighton View Road

Fairfield, CT 06824

 

WITH A COPY TO:

 

Cummings & Lockwood LLC

Six Landmark Square

Stamford, CT 06901

Attention: Michael P. Kaelin

 

(c)                                  Successors and Binding Agreement.

 

(i)         This Agreement shall be binding upon and inure to the
benefit of Noble and any successor of or to Noble, including without limitation
any purchaser of all or substantially all of the assets of Noble.

 

(ii)        Noble will require any successor to expressly assume
and agree to perform this Agreement in the same manner and to the same extent
that Noble would have been required to perform it if no such succession had
taken place.

 

(iii)       For purposes of this Agreement, “Noble” shall mean
both Noble, as defined in the Recitals, and any successor of or to Noble.

 

(iv)       This Agreement shall inure to the benefit of and be
enforceable by Executive’s personal or legal representatives, executors,
administrators, successors, heirs, distributees, and/or legatees.  Executive agrees that his obligations under
this Agreement are personal in nature and, without the consent of Noble, he may
not assign, transfer, or delegate this Agreement or any rights or obligations
hereunder, provided, that upon
Executive’s death, Executive may assign his rights hereunder to Executive’s
estate or heirs.

 

(d)                                 Complete and Final Agreement. 
Executive agrees that this Agreement and the Employment Agreement
reflect the complete agreement between Noble and Executive, and that there are
no written or oral understandings, promises or agreements related to this
Agreement that have been made to him except those contained herein.  This Agreement and the Employment Agreement
constitute the complete and final agreement by and between the parties, and
supersede any and all prior and contemporaneous negotiations, representations, understandings,
and agreements between the parties relating to the matters herein.  The parties further 

 

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intend that no extrinsic evidence whatsoever
may be introduced in any judicial, administrative or other legal proceeding to
vary the terms of this Agreement and the Employment Agreement.

 

(e)                                  Construction / Counsel. 
This Agreement shall be deemed drafted equally by both the parties.  Its language shall be construed as a whole
and according to its fair meaning, with no presumption that any language shall
be construed against any party. 
Paragraph headings used herein are for convenience and are not part of
this Agreement and shall not be used in construing it.  Executive acknowledges that he has had adequate
opportunity to consult with legal or other counsel of his choosing prior to
execution of this Agreement.

 

(f)                                    Governing Law. 
Any dispute, controversy, or claim of whatever nature arising out of or
relating to this Agreement or breach thereof shall be governed by and
interpreted under the laws of the State of Connecticut, without regard to
conflict of law principles.

 

(g)                                 Validity. 
The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement, which shall nevertheless remain in full force and effect.  Further, the parties agree that any invalid,
illegal or unenforceable provision or restriction shall be deemed modified so
that it shall be enforced to the greatest extent permissible under law.  To the extent that any court of competent
jurisdiction determines any provision or restriction herein to be overly broad,
or unenforceable, such court is hereby empowered and authorized to limit such
provisions or restrictions so that it is enforceable for the longest duration
of time, within the largest geographical area and with the broadest scope, as
permitted by law.

 

(h)                                 Survival of Provisions. 
Notwithstanding any other provision of this Agreement, the parties’ post-termination
obligations and the parties’ other respective rights, including, without
limitation, the provisions of Sections 8 through 11 shall survive any
termination or expiration of this Agreement or the termination of Executive’s
employment for any reason whatsoever.

 

(i)                                     Waiver. 
No provision of this Agreement may be modified, waived, or discharged
unless such modification, waiver, or discharge is agreed to in writing signed
by Executive and Noble.  No waiver by
either party hereto at any time of any breach by the other party hereto or
compliance with any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time.

 

(j)                                     Mediation and Arbitration. 
Any dispute that may arise between Noble and Executive in reference to
this Agreement, or the interpretation, application or construction thereof, and
any matter, without limitation, arising out of Executive’s employment with
Noble, shall be submitted to mediation using a mediator or 

 

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mediators and procedures that are mutually
acceptable to Executive and Noble.  If
mediation is not successful, the dispute shall be submitted to arbitration,
conducted before an arbitrator in Middlesex County, Connecticut in accordance
with the National Rules for the Resolution of Employment Disputes of the
American Arbitration Association then in effect.  Judgment may be entered on the arbitration
award in any court having jurisdiction; provided, however, that Noble shall be
entitled to seek a restraining order or injunction in any court of competent
jurisdiction to prevent any continuation of any violation of the provisions of
Sections 8 through 12 of the Agreement, and Executive hereby consents that such
restraining order or injunction may be granted without requiring Noble to post
a bond.  Only individuals who are on the
AAA register of arbitrators may be selected as an arbitrator.  Within twenty (20) days of the conclusion of
the arbitration hearing, the arbitrator(s) shall prepare written findings
of fact and conclusions of law.  It is
mutually agreed that the written decision of the arbitrator(s) shall be
valid, binding, final and non-appealable; provided however, that the parties
agree that the arbitrator shall not be empowered to award punitive damages
against any party.  If for any reason
this mediation and arbitration clause becomes not applicable, then each party,
to the fullest extent permitted by applicable law, hereby irrevocably waives
all right to a trial by jury as to any issue relating hereto in any action,
proceeding, or counterclaim arising out of or relating to this Agreement or any
other matter involving the parties hereto.

 

(k)                                  Attorneys’ Fees. 
In the event of any legal proceeding, whether under Section 14(j) or
otherwise, which proceeding relates to this Agreement or any term or provision
hereof, Noble shall be responsible for paying a maximum of $10,000 of attorneys’
fees incurred by the Executive in connection with such proceeding, provided,
however, that the Executive shall reimburse Noble for such attorneys’ fees if
the Executive does not materially prevail in such proceeding.

 

(l)                                     Section 409A.

 

(i)                       Notwithstanding anything to the
contrary in this Agreement, if at the time of Executive’s termination of
employment with Noble, Executive is a “specified employee” as defined in Section 409A
of the Code, as determined by Noble in accordance with Section 409A of the
Code, and the deferral of the commencement of any payments or benefits
otherwise payable hereunder as a result of such termination of employment is
necessary in order to prevent any accelerated or additional tax under Section 409A
of the Code, then Noble will defer the commencement of the payment of any such
payments or benefits hereunder (without any reduction in the payments or
benefits ultimately paid or provided to Executive) until the date that is at
least six (6) months following Executive’s termination of employment with
Noble (or the earliest date permitted under Section 409A of the Code),
whereupon Noble will pay Executive a lump-sum amount equal to the cumulative
amounts that would have otherwise been previously paid to Executive under this
Agreement 

 

12

 

during the period in which such payments or
benefits were deferred.  Thereafter,
payments will resume in accordance with this Agreement.

 

(ii)           Additionally, in the event that following the date
hereof, Noble or the Executive reasonably determines that any payments or
benefits payable under this Agreement may be subject to Section 409A of
the Code, Noble and the Executive shall work together to adopt such amendments
to this Agreement or adopt other policies or procedures (including amendments,
policies and procedures with retroactive effect), or take any other
commercially reasonable actions necessary or appropriate to (A) exempt the
payments and benefits payable under this Agreement from Section 409A of
the Code and/or preserve the intended tax treatment of the payments and
benefits provided with respect to this Agreement or (B) comply with the
requirements of Section 409A of the Code.

 

13

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first set forth above.

 

 

	
   

  	
  Noble Environmental Power, LLC  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Christopher Lowe

  
	
   

  	
  Position: Chief Financial Officer

  
	
   

  	
  Date: May 5, 2008

  
	
   

  	
   

  
	
  Witnessed:

  	
  /s/ Michael J. Palmieri

  	
   

  	
  /s/ Walter Q. Howard
  

  
	
  Name:

  	
   Michael J. Palmieri

  	
   

  	
  Walter Q. Howard 

  
	
  Date:

  	
   May 5, 2008

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   5 May 08

  
							

 

14Exhibit 10.23

 

EXECUTION VERSION

 

EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of May 5,
2008 (the “Effective Date”),  by
and between Noble Environmental Power, LLC (“Noble”) and Charles C.
Hinckley (“Executive”).

 

WHEREAS, Noble, its parent and its affiliates (collectively, the “Noble
Companies”) develop, construct and operate wind-powered electricity
generation facilities;

 

WHEREAS, Noble and the Executive have entered into that certain
Employment Agreement, dated as of September 23, 2007, pursuant to which
Executive is serving Noble as Chief Executive Officer (the “Prior Employment
Agreement”);

 

WHEREAS, Noble and Executive mutually desire to end the employment of
Executive as Chief Executive Officer of Noble, but to continue the employment
of Executive as the Executive Chairman of the Board of Directors or similar
governing body of Noble (the “Board of Directors”); and

 

WHEREAS, Noble and Executive mutually desire to terminate the Prior
Employment Agreement as of the date hereof, and to enter into this Agreement
embodying the terms of employment applicable to the Executive as Executive
Chairman of the Board of Directors.

 

NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein and for other good and valuable consideration, the receipt of
which is mutually acknowledged, Noble and Executive agree as follows:

 

1.                                       Position, Duties, and Responsibilities.

 

(a)                                  Commencing on April 1,
2008, Executive shall initially be employed as the Executive Chairman of the
Board of Directors, with such customary responsibilities, duties and authority
as may be assigned by the Board of Directors, in consultation with the
Executive and the Chief Executive Officer of Noble, including, without
limitation, providing strategic assistance and leadership to Noble and the
Noble Companies, assisting Noble and the Noble Companies in securing wind
development opportunities or other wind joint venture and wind business
opportunities, advising the Chief Executive Officer of Noble and the Board of
Directors on general business matters, assisting in meetings or discussions
between governmental authorities and Noble and the Noble Companies, applying
historical experience and using historical relationships to help Noble and the
Noble Companies finalize and secure their existing development pipeline, and
assisting in and leading discussions with significant vendors and other service
providers to Noble and the Noble Companies.

 

(b)                                 Executive, in carrying
out his duties under this Agreement, will report to the Board of
Directors.  During the Term of Employment
(as defined below), Executive shall devote substantially all of his business
time and attention to the 

 

1

 

business and affairs of Noble and/or the Noble Companies, and shall use
his best efforts, skills, and abilities to promote its interests.  Executive agrees to observe and comply with
the rules and policies of Noble and the Noble Companies as adopted from
time to time, including any rules and policies that relate to Executive’s
post-termination obligations to Noble and the Noble Companies, to the extent
such rules and policies are not inconsistent with the terms of this
Agreement.

 

2.                                       At-Will Employment.  Noble and Executive acknowledge that
Executive’s employment hereunder is and shall continue to be at-will (as
defined under applicable law), and may be terminated at any time, with or
without Cause, at the option of either party. 
If Executive’s employment terminates for any reason, Executive shall not
be entitled to any payments, benefits, damages, awards or compensation other
than as specifically provided in Section 4 of this Agreement.  No provision of this Agreement shall be
construed as conferring upon Executive a right to continue as an employee of
Noble.  On the date on which Executive’s
employment with Noble terminates, for whatever reason, unless specifically
otherwise agreed in writing between Executive and Noble, Executive shall cease
to hold any position (whether as an officer, director, manager, employee,
trustee, fiduciary, or otherwise) with Noble or any of the Noble
Companies.  The period of Executive’s
employment under this Agreement is referred to herein as the “Term of
Employment.”

 

3.                                       Compensation and Benefits.  Executive
will be eligible to receive the following compensation and benefits during the
Term of Employment:

 

(a)                                  Annual Base Salary.  In consideration of the services to be
rendered by Executive under this Agreement, Noble will pay Executive an annual
salary of $360,000 (“Salary”), less all applicable local, state, and
federal taxes, and other withholdings and deductions required by law or
authorized by Executive, which shall be payable at the times and in the
installments consistent with Noble’s existing payroll practices.  Executive will be considered for merit
increases to his Salary during the Term of Employment based on performance in
the sole discretion of the Board of Directors.

 

(b)                                 Annual Bonus.  During the Term of Employment, Executive will
be eligible for an annual bonus, based primarily on Noble’s financial
performance, including, as applicable, the performance of the Noble
Companies.  Executive shall be eligible
for an annual bonus at a target level of 67.0% of his Salary, upon fulfilling
certain financial goals and objectives that are established by the Board of
Directors with respect to the applicable performance period.  Whether such financial goals and objectives
are achieved will be determined by the Board of Directors in its sole
discretion.  Except as provided in Section 4(e) herein
or in the Change in Control Severance Agreement, Executive will not be eligible
for an annual bonus unless Executive remains employed by Noble through January 1
of the calendar year following the applicable performance period, or such
longer period as may be required by the Board of Directors or under the
applicable bonus plan.  Any annual bonus
earned by the Executive shall be paid to Executive when bonuses 

 

2

 

under the performance period in question are paid to other executive
officers of Noble.

 

(c)                                  Additional
Bonus.  In consideration
for the Executive agreeing to terminate the Prior Employment Agreement as of
the date hereof, and in partial consideration of the Executive agreeing to
enter into this Agreement and the Change in Control Severance Agreement,
Executive will be entitled to receive, in addition to the other good and
valuable consideration set forth herein, a one-time bonus of $150,000, which
Noble will pay in one lump sum as soon as administratively practicable after
the Effective Date.

 

(d)                                 Bonus
Upon an IPO.  If Noble
completes a Qualified IPO by the end of calendar year 2008, then the Executive
will be entitled to receive a one-time bonus equal to $150,000 of restricted
stock in the successor to Noble (the “Successor”) after such Qualified
IPO (the “Restricted Stock Grant”). 
For the avoidance of doubt: (i) the Restricted Stock Grant shall be
subject to the terms and conditions of the equity incentive plan and the
restricted stock award agreement in effect with respect to the Successor as of
the date of the Restricted Stock Grant; (ii) the number of shares subject
to the Restricted Stock Grant will be calculated using the initial price per
share to the public as set forth in the final prospectus included within the
registration statement filed by the Successor in Form S-1 with the
Securities and Exchange Commission in connection with the Qualified IPO; and (iii) the
Executive will receive the Restricted Stock Grant as soon as administratively
practicable after the Qualified IPO.  For
purposes of this Section 3(d), a “Qualified IPO” shall have the meaning
ascribed to such term in the Third Amended and Restated Limited Liability
Company Operating Agreement, dated as of March 7, 2008, of Noble
Environmental Power, LLC, as amended from time to time (the “Third Amended
and Restated LLC Agreement”).

 

(e)                                  Benefits.  The parties acknowledge and agree that during
the Term of Employment, Executive shall be entitled to participate in certain
employee benefits plans, programs and arrangements, as offered by Noble to
similarly-situated employees.  These
employee benefits shall be governed by the applicable documents, which are subject
to change.  During the Term of Employment,
Executive will also be entitled to the use of an automobile provided by Noble
in accordance with its automobile policy.

 

(f)                                    Vacation.  During the Term of Employment, Executive will
be entitled to 20 work days of paid vacation each calendar year.  Vacation must be scheduled with sufficient
advance notice to take into account Noble’s business needs.  Executive will also be entitled to paid
holidays in accordance with Noble’s holiday policy.

 

(g)                                 Claims, Insurance and Indemnification.

 

(i)                           During the Term of
Employment, and at all times thereafter, Executive agrees to fully, and in good
faith, cooperate with Noble with respect to any investigation, claim or
litigation involving Noble or the Noble Companies 

 

3

 

and relating to his past, present or future duties with Noble or the
Noble Companies, or to any matters concerning Noble or the Noble Companies
about which he has knowledge.  Noble
shall reimburse Executive for his reasonable expenses incurred in the course of
such cooperation.

 

(ii)           During
the Term of Employment, and at all times thereafter, Noble will provide
Executive with directors’ and officers’ insurance liability coverage to cover
any claims arising from his past, present or future activities on behalf of
Noble or the Noble Companies, in the same manner as such insurance is provided
to other similarly-situated officers or directors of Noble, subject to the
terms of the applicable insurance policies.

 

(h)                                 Business Expenses.  During the Term of Employment, Executive
shall be reimbursed for all reasonable, ordinary, and necessary expenses
incurred for business activities on behalf of Noble or the Noble Companies by
Executive in the performance of his duties. 
All reimbursable expenses must be appropriately documented in reasonable
detail by Executive and submitted in accordance with the Travel and Business
Expense Reimbursement Policy of Noble in effect at that time.

 

(i)                                     Series B Incentive and Performance Units.  Executive understands that Noble will grant Executive, after the Effective
Date, the opportunity to purchase   35,541
Series B Incentive Units and 17,771 Series B Performance Units (the “Grant”), which Grant
is contingent on (X) the Executive remaining employed by Noble as of the
time of Grant, and (Y) the Executive executing (i) the versions of
the Limited Liability Company Operating Agreement of Noble and the Members’
Agreement of Noble that are are referred to in the applicable subscription
agreement approved by the Board of Directors and provided by Noble to Executive
in order to effectuate such purchase and that will govern the terms of the Series B
Incentive Units and Series B Performance Units, and (ii) any
documents ancillary to the Grant required by Noble.  For purposes of this Section 3(j), the
terms “Series B Incentive Units” and “Series B Performance Units”
shall be as defined in that version of the Limited Liability Company Operating
Agreement of Noble that will govern the Series B Incentive Units and Series B
Performance Units.

 

4.                                       Termination of Employment.

 

(a)                                  Termination Due to Death or Disability.  Executive’s employment will terminate upon
his death or Disability.  For purposes of
this Agreement, “Disability” shall refer to Executive’s physical or mental
disability preventing him from carrying out substantially all of his duties as
Executive Chairman of the Board of Directors for a period of four consecutive
months (or 25 weeks in any 12-month period). 
If Executive and Noble disagree as to the existence of a Disability, the
dispute shall be resolved by an independent medical doctor selected by
Executive and Noble.

 

4

 

(b)                                 Involuntary Termination.  Executive’s employment hereunder may be
terminated immediately by Noble, at any time, for Cause by written notice.  For purposes of this Agreement, “Cause”
shall mean:

 

(i)            Executive’s
failure to substantially perform his duties as an employee of Noble, which
failure is not remedied by the Executive within thirty (30) days after receiving
written notice from the Board of Directors specifying such failure;

 

(ii)           the
engagement by Executive in misconduct in the performance of his duties as an
employee of Noble, which misconduct is materially injurious to Noble or any of
the Noble Companies;

 

(iii)          the
Executive admitting to, the Executive being convicted of, the Executive
entering of a plea of guilty or nolo
contendere to, or the Executive being indicted for, any felony or
crime involving moral turpitude;

 

(iv)          the
Executive committing any act of fraud or dishonesty in connection with the
performance of his duties as an employee of Noble or in the course of Executive’s
employment with Noble, which act is materially injurious to Noble or any of the
Noble Companies;

 

(v)           the
Executive using narcotics, alcohol, or illicit drugs in a manner that has or
may reasonably be expected to have a detrimental effect on the performance by
the Executive of his duties as an employee of Noble or on the reputation of
Noble or any of the Noble Companies; or

 

(vi)          the
Executive committing a material violation of any policy sponsored by Noble or
the other Noble Companies which results in material injury to Noble or any of
the Noble Companies.

 

(c)                                  Voluntary Termination.  Subject to Section 4(b) and 4(d),
either Executive or Noble may voluntarily terminate Executive’s employment and
this Agreement at any time by providing thirty (30) days’ written notice to the
other party.

 

(d)                                 Termination for Good Reason.  Executive may voluntarily terminate Executive’s
employment and this Agreement at any time for Good Reason by providing thirty
(30) days’ written notice to Noble specifying the event(s) purported to
constitute Good Reason in reasonable detail (which notice must be provided
within 60 days following the occurrence of such event(s)); provided, however,
that Executive may not resign his employment for Good Reason unless Noble has
not remedied the event(s) alleged by the Executive to constitute Good
Reason within the 30-day period.  As used
herein “Good Reason” shall mean the occurrence of any of the following: (i) a
material and adverse reduction in the nature or scope of the duties assigned to
the Executive pursuant to this Agreement; (ii) a material reduction in
Salary, other than any such reduction in Salary that results from the
implementation by Noble of a general salary reduction 

 

5

 

plan among all of its senior executives; or (iii) the relocation
of Executive’s principal place of employment more than 50 miles from its
location on the commencement of the Term of Employment.

 

(e)                                  Benefits upon Termination.

 

(i)                                     Severance
Payments.  In the event Noble
terminates the Executive without Cause (which shall not include a termination
under Section 4(a)) or Executive terminates his employment for Good
Reason, and provided that Executive executes within 30 days following such
termination of employment a general release of all claims arising under this
Agreement or otherwise related to Executive’s employment by Noble in a form to be
provided by Noble which is not subsequently revoked, and provided that
Executive abides in all material respects by his obligations under this
Agreement, Noble will provide Executive with the following payments:

 

(A)                              a
cash amount equal to six (6) months of his Salary, less taxes and
withholdings, which amount shall be paid in accordance with the normal payroll
practices of Noble over the six (6) month period following the date of
Executive’s termination of employment (the “Salary Continuation”);

 

(B)                                a cash amount equal to (1) the
bonus that Executive would have been eligible to receive pursuant to Section 3(b),
for the performance period in which Executive incurs a termination from
employment, had Executive remained employed with Noble until the January 1
following the date of his termination of employment, or such other date the
Board of Directors may have required under Section 3(b), multiplied by (2) a
fraction, the numerator of which is the number of days that the Executive had
been employed with Noble during the performance period in which Executive
incurs a termination of employment, and the denominator of which is the total
number of days in such performance period (the “Prorated Bonus”).  For the avoidance of doubt, the Prorated
Bonus shall be calculated based on the performance of Noble for the entirety of
the performance period in which Executive incurs a termination of employment,
as such performance is determined by the Board of Directors in its sole
discretion, which determination shall be made when the Board of Directors
determines the bonuses payable to other executive officers of Noble for the
same performance period; and

 

(C)                                reimbursement (or
direct payment to the carrier), for six (6) months following Executive’s
termination of employment (the “Continuation Period”), for a portion of
the premium costs incurred by Executive (and his spouse and dependents, where
applicable) to obtain COBRA coverage pursuant to one of the 

 

6

 

group health plans sponsored by Noble (or a Noble Company), which
reimbursement (or direct payment) shall equal the premium costs incurred by
Noble (or a Noble Company, if applicable), for the Continuation Period, on
behalf of a similarly-situated employee, to obtain coverage under the same
group health plan sponsored by Noble (or a Noble Company, if applicable) (the “Health
Care Continuation”).

 

Notwithstanding anything in the foregoing to the contrary, (1) Executive
shall be entitled to receive the Health Care Continuation only if Executive is
participating in a group health plan sponsored by Noble (or a Noble Company) as
of the date on which Executive incurs a termination of employment, and (2) Executive
shall be responsible, during the Continuation Period, for premium costs for
COBRA coverage in excess of the Health Care Continuation, and the Executive
shall be responsible, after the Continuation Period, for all premium costs for
COBRA coverage, if Executive continues to elect such COBRA coverage.

 

(ii)                                  Timing
of Payments; Early Termination of Obligations.

 

(A)                              Notwithstanding the
foregoing:  (1) subject to Section 4(e)(ii)(A)(2),
Executive shall receive the Prorated Bonus when bonuses under the performance
period in question are paid to other executive officers of Noble, in the year
following the year in which the Executive incurs a termination of employment,
but in no event after the end of such year; (2) any portion of the Salary
Continuation, the Prorated Bonus, or the Health Care Continuation which would
otherwise have been paid to the Executive or reimbursed before the first normal
payroll payment date falling on or after the fortieth (40th) day following the
date of Executive’s termination of employment (the “First Payment Date”)
shall be made on the First Payment Date; (3) the Executive shall not be
entitled to any Salary Continuation or Prorated Bonus unless the Executive’s
termination of employment constitutes a “separation from service” within the
meaning of Treasury Regulation Section 1.409A-1(h); and (4) each payment
of Salary Continuation is intended to constitute a separate payment from each
other payment of Salary Continuation and from the payment of the Prorated Bonus
for purposes of Treasury Regulation Section 1.409A-2(b)(2).

 

(B)                                Notwithstanding the
foregoing, if the Executive accepts an offer of employment at any time during
the Continuation Period, which acceptance would not be in violation of the
obligations of Executive under this Agreement, Noble shall no longer be
obligated to pay the Health Care Continuation, should Executive 

 

7

 

become eligible to participate in any other group health plan as a
result of his acceptance of such offer of employment.  For the purposes of this Section 4(e)(ii)(B),
Executive shall notify Noble of his acceptance of an offer of employment, and
the terms and conditions of such offer, on the day of such acceptance.  If Executive does not so notify Noble, then
Noble may recover from Executive any Health Care Continuation paid after the
date that Executive accepted such an offer of employment.  For the avoidance of doubt, if the Executive
would violate his obligations under this Agreement by accepting such an offer
of employment, or by performing any services pursuant to such an acceptance,
then Noble will no longer be subject to any obligation to pay the Salary
Continuation, the Prorated Bonus, and the Health Care Continuation.

 

(iii)          The
parties agree that Executive will not be entitled to any severance payments if:
(A)  Noble terminates his employment for Cause pursuant to Section 4(b);
(B) he voluntarily resigns under Section 4(c); or he dies or
terminates due to Disability during the Term of Employment.

 

(iv)          Legal
Obligations.  Noble acknowledges
that, upon Executive’s termination of employment with Noble, it remains
obligated to comply with COBRA and other federal and state statutes to the
extent required by law regarding the rights of former employees.

 

(v)           The
parties agree that, except as set forth in this Section 4(e), or as set
forth in that certain Change in Control Severance Agreement, dated as of May 5,
2008, by and between Executive and Noble (the “Change in Control Severance
Agreement”), or as determined by the terms of any employee benefit plan in
which Executive participated under Section 3(e), or as set forth in the
Third Amended and Restated LLC Agreement, or the Amended and Restated Members’
Agreement, dated as of December 21, 2007, among Noble Environmental Power,
LLC and other parties thereto, as amended from time to time, or as otherwise
required by law (as referenced in Section 4(e)(iv)), Executive will not be
entitled to receive any compensation or benefits after termination of his
employment with Noble.

 

5.                                       Confidential or Proprietary Information.

 

(a)                                  Except
in connection with the faithful performance of Executive’s duties hereunder or
pursuant to Section 5(c) or 5(d), Executive agrees that he will not,
at any time during the Term of Employment or thereafter, directly, indirectly
or otherwise, use, disseminate, disclose or publish, or use for his benefit, or
for the benefit of any person, firm, corporation or other entity, any
Confidential or Proprietary Information of or relating to Noble or the Noble
Companies, nor shall he deliver to any person, firm, corporation or other
entity any document, record, 

 

8

 

notebook, computer program or similar
repository of or containing any such Confidential or Proprietary
Information.  For purposes of this
Agreement, “Confidential or Proprietary Information” includes, without
limitation: all trade secrets, intellectual property in the form of patents,
trademarks and copyrights and applications therefor, ideas, inventions, works,
discoveries, improvements, information, documents, formulae, practices,
processes, methods, developments, source code, modifications, technology,
techniques, data, programs, other know-how or materials, owned, developed or
possessed by Noble or the Noble Companies, whether in tangible or intangible
form, information with respect to Noble’s or the Noble Companies’ operations,
processes, products, inventions, business practices, finances, principals,
vendors, suppliers, customers, potential customers, marketing methods, costs,
prices, contractual relationships, regulatory status, prospects and
compensation paid to employees or other terms of employment.  The parties hereby stipulate and agree that
as between them the foregoing matters are important and material Confidential
or Proprietary Information, which affect the successful conduct of the
businesses of Noble and the Noble Companies (and any successor or assignee of
Noble).

 

(b)                                 Upon termination of
Executive’s employment with Noble, whether at the instance of Executive or
Noble and for whatever reason, Executive will promptly deliver to Noble all
correspondence, records, drawings, manuals, letters, notes, notebooks,
computers, cell phones, reports, programs, data, audio or videotapes (or other
information contained on any digital information medium), plans, proposals,
financial documents, or any other documents or materials containing Confidential or Proprietary Information, information
otherwise owned by Noble or the Noble Companies, or containing information concerning
the customers, business plans, marketing strategies, products or processes of
Noble or the Noble Companies.  Executive
shall also return any materials or information received in connection with his
employment from clients, prospects or vendors of Noble or the Noble Companies.

 

(c)                                  Executive may respond
to a lawful and valid subpoena or other legal process; provided, however, that
Executive shall give Noble the earliest possible notice thereof, and shall, as
much in advance of the return date as possible, make available to Noble and its
counsel the documents and other information sought.  Executive shall assist such counsel at Noble’s
expense in resisting or otherwise responding to such subpoena or process.

 

(d)                                 Nothing in this
Agreement shall prohibit Executive from (i) disclosing information and documents
when required by law, subpoena or court order (subject to the requirements of Section 5(c) above),
(ii) disclosing information and documents to his attorney or tax adviser
for the purpose of securing legal or tax advice, (iii) disclosing the post-employment
restrictions in this Agreement in confidence to any potential new employer, or (iv) retaining,
at any time, his personal correspondence, personal rolodex and documents
related to his own personal benefits, entitlements and obligations.

 

9

 

(e)                                  Executive agrees that
the terms of this Agreement constitute Confidential and Proprietary
Information, and agrees, subject to Section 5(c) and 5(d), to not
disclose the terms of this Agreement to any third party, except as provided in Section 5(d) and
except as provided in a proceeding under Section 18 hereof to enforce the
terms of this Agreement.

 

6.                                       Inventions.  All rights to discoveries, inventions,
documents, improvements and innovations (including all data and records
pertaining thereto) related to the business of Noble, whether or not
patentable, copyrightable, registrable as a trademark, or reduced to writing,
that Executive may discover, invent, improve, modify or originate during
Executive’s employment, either alone or with others and whether or not during
working hours or by the use of the facilities of Noble or the Noble Companies (“Inventions”),
shall be the exclusive property of Noble and the Noble Companies.  Executive shall promptly disclose all Inventions
to Noble, shall execute at the request of Noble any assignments or other
documents Noble may deem reasonably necessary to protect or perfect its rights
therein or the rights of any Noble Company therein, and shall assist Noble,
upon reasonable request and at Noble’s expense, in obtaining, defending and
enforcing Noble’s rights therein and/or the rights of any Noble Company
therein.  Executive hereby appoints Noble
as his attorney-in-fact to execute on his behalf any assignments or other
documents reasonably deemed necessary by Noble to protect or perfect its rights
or the rights of any Noble Company to any Inventions.

 

7.                                       Non-Competition and
Non-Solicitation.

 

(a)                        During the Term of Employment
and for a period of six (6) months following Executive’s termination of
employment for whatever reason (the “Non-Competition Period”), Executive
shall not directly or indirectly, individually or on behalf of any other person
or entity, manage, participate in, work for, consult with, render services for,
or take an interest in (as an owner, stockholder, partner or lender) any
Competitor in an area of business in which Competitor directly competes or
seeks to directly compete with Noble or the Noble Companies (such restrictions,
the “Competition Restrictions”).

 

(b)                       For purposes of this Agreement, “Competitor”
means any business, company or individual which is in the business, or is
actively seeking to be in the business, of developing, constructing, managing,
owning or operating wind energy projects in: (i) Connecticut; (ii) Maine;
(iii) Michigan; (iv) New Hampshire; (v) New York; (vi) Texas;
(vii) Vermont; (viii) Wyoming; or (ix) any other state in the
United States in which Noble operates, or has been developing, wind energy
projects within the 12 months preceding Executive’s termination.

 

(c)                        Notwithstanding anything to the
contrary in this Agreement, Noble shall have the right to extend the time
period during which the Competition Restrictions apply to the Executive (the “Extension
Right”) for a maximum of six (6) additional months after the
expiration of the Non-Competition Period, by providing the Executive with the
following payments for each such additional month:  (A) a cash amount equal to one (1) month
of his Salary, less taxes and withholdings (the “Additional 

 

10

 

Salary Continuation”); and (B) reimbursement
(or direct payment to the carrier) for a portion of the premium costs incurred
by the Executive (and his spouse and dependents, where applicable) to obtain
COBRA coverage for one (1) month pursuant to one of the group health plans
sponsored by Noble (or a Noble Company), which reimbursement (or direct
payment) shall equal the premium costs incurred by Noble (or a Noble Company,
if applicable) to obtain coverage under the same group health plan sponsored by
Noble (or a Noble Company, if applicable) on behalf of a similarly-situated
employee for one (1) month (the “Additional Health Care Continuation”).  For the avoidance of doubt, for purposes of
this Agreement, (X) any Additional Salary Continuation payable pursuant to
this Section 7(c) shall be deemed a portion of the Salary
Continuation payable pursuant to Section 4(e)(i)(A), and shall be subject
to the same provisions applicable to the Salary Continuation in this Agreement,
and (Y) any Additional Health Care Continuation payable pursuant to this Section 7(c) shall
be deemed a portion of the Health Care Continuation payable pursuant to Section 4(e)(i)(C),
and shall be subject to the same provisions applicable to the Health Care
Continuation in this Agreement.  Noble
shall exercise the Extension Right within thirty (30) days after the Executive
incurs a termination of employment, by providing the Executive with written
notice specifying the number of months to which the Extension Right shall
apply.  If Noble does not exercise the
Extension Right within thirty (30) days after the Executive incurs a
termination of employment, then such Extension Right shall become null and void
after the expiration of the thirty (30) day period.

 

(d)                                 During the Term of
Employment and for a period of twelve (12) months following Executive’s
termination of employment for whatever reason, Executive shall not directly or
indirectly, individually or on behalf of any other person or entity:

 

(i)            divert
or attempt to divert from Noble any business with any customer, partner or
other person with which Noble had any business contact or association during
the Term of Employment;

 

(ii)           induce
or attempt to induce any customer, partner or other person with which Noble had
any business contact or association to reduce or refrain from doing business
with Noble or the Noble Companies;

 

(iii)          induce
or attempt to induce, or cause, other than by means of any general solicitation
by advertisement or otherwise, any employee or consultant of Noble to terminate
his or her employment or relationship with Noble; or

 

(iv)          recruit
or hire, other than by means of any general solicitation by advertisement or
otherwise, any person who was an employee or consultant of Noble after his or
her employment or relationship with Noble has terminated.

 

11

 

8.                                       Non-Disparagement.  The Executive agrees, during the Term of
Employment and thereafter, to refrain from disparaging Noble and the Noble
Companies, including any of their services, technologies or practices, or any
of their directors, officers, agents, employees, former employees,
representatives or stockholders, either orally or in writing; provided,
however, that nothing in the foregoing shall preclude the Executive from making
truthful statements that are required by applicable law, regulation or legal
process.  Noble agrees, during the Term
of Employment and thereafter, to refrain from disparaging the Executive; provided,
however, that Noble’s agreement to this non-disparagement clause shall be
limited to official statements issued by Noble as an organization and
statements of officers of Noble and members of the Board of Directors;
provided, further, that nothing in the foregoing shall preclude Noble, its
officers or members of the Board of Directors from making truthful statements
that are required by applicable law, regulation or legal process.

 

9.                                       Injunctive Relief.  Executive acknowledges that a breach of the covenants
contained in Sections 5 through 8 will cause irreparable damage to Noble and
its goodwill, the exact amount of which will be difficult or impossible to
ascertain, and that the remedies at law for any such breach will be inadequate.  Accordingly, Executive agrees that in the
event of a breach of any of the covenants contained in Sections 5 through 8, in
addition to any other remedy which may be available at law or in equity, Noble
will be entitled to specific performance and injunctive relief.

 

10.                                 Notices.  All notices and other communications required
or permitted hereunder shall be in writing and shall be deemed given when (a) delivered
personally, (b) delivered by certified or registered mail, postage
prepaid, return receipt requested, or (c) delivered by overnight courier
(provided that a written acknowledgment of receipt is obtained by the overnight
courier) to the party concerned at the address indicated below or to such
changed address as such party may subsequently give such notice of:

 

If to Noble:

 

Noble Environmental Power, LLC

8 Railroad Avenue, Suite A

Essex, Connecticut 06426

Attention: Chris Lowe

WITH A COPY TO:

General Counsel

 

If to Executive:

 

26 Riverview Street

Essex, CT 06426

 

12

 

11.                                 Successors and Binding Agreement.

 

(a)                                  This Agreement shall
be binding upon and inure to the benefit of Noble and any successor of or to
Noble, including without limitation any purchaser of all or substantially all
of the assets of Noble.

 

(b)                                 This Agreement shall
inure to the benefit of and be enforceable by Executive’s personal or legal
representatives, executors, administrators, successors, heirs, distributees,
and/or legatees.  Executive agrees that
his obligations under this Agreement are personal in nature and, without the
consent of Noble, he may not assign, transfer, or delegate this Agreement or
any rights or obligations hereunder, provided,
that upon Executive’s death, Executive may assign his rights hereunder to
Executive’s estate or heirs.

 

12.                                 Complete and Final Agreement.   Executive agrees that this Agreement and the
Change in Control Severance Agreement reflect the complete agreement between
Noble and Executive, and that there are no written or oral understandings,
promises or agreements related to this Agreement that have been made to him
except those contained herein.  This
Agreement and the Change in Control Severance Agreement constitute the complete
and final agreement by and between the parties, and supersede any and all prior
and contemporaneous negotiations, representations, understandings, and
agreements between the parties relating to the matters herein, including the
Prior Employment Agreement.  Without
limiting the foregoing, the parties agree that the following events do not,
either individually or collectively, constitute “Good Reason” under the Prior
Employment Agreement, and that Executive shall have no rights to payments or
benefits under Section 4(e) of the Prior Employment Agreement:  (i) the end of the employment of
Executive as Chief Executive Officer of Noble; (ii) the beginning of the
employment of Executive as Executive Chairman of the Board of Directors; (iii) the
termination of the Prior Employment Agreement by the Company and Executive as
of the date hereof; (iv) the entry into this Agreement by the Company and
Executive as of the date hereof; or (v) the entry into the Change in
Control Severance Agreement by the Company and Executive as of the date
hereof.  The parties further intend that
no extrinsic evidence whatsoever may be introduced in any judicial,
administrative or other legal proceeding to vary the terms of this Agreement or
the Change in Control Severance Agreement.

 

13.                                 Construction / Counsel.  This Agreement shall be deemed drafted
equally by both the parties.  Its
language shall be construed as a whole and according to its fair meaning, with
no presumption that any language shall be construed against any party.  Paragraph headings used herein are for
convenience and are not part of this Agreement and shall not be used in
construing it.  Executive acknowledges
that he has had adequate opportunity to consult with legal or other counsel of
his choosing prior to execution of this Agreement.

 

14.                                 Governing Law.  Any dispute, controversy, or claim of
whatever nature arising out of or relating to this Agreement or breach thereof
shall be governed by and interpreted under the laws of the State of
Connecticut, without regard to conflict of law principles.

 

15.                                 Validity.  The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall nevertheless remain in full
force and effect.  Further, the parties
agree that any invalid, 

 

13

 

illegal or unenforceable provision or
restriction shall be deemed modified so that it shall be enforced to the
greatest extent permissible under law. 
To the extent that any court of competent jurisdiction determines any
provision or restriction herein to be overly broad, or unenforceable, such
court is hereby empowered and authorized to limit such provisions or
restrictions so that it is enforceable for the longest duration of time, within
the largest geographical area and with the broadest scope, as permitted by law.

 

16.                                 Survival of Provisions.  Notwithstanding any other provision of this
Agreement, the parties’ post-termination obligations and the parties’ other
respective rights, including, without limitation, the provisions of Sections 5 through
8 shall survive any termination or expiration of this Agreement or the
termination of Executive’s employment for any reason whatsoever.

 

17.                                 Waiver. 
No provision of this Agreement may be modified, waived, or discharged
unless such modification, waiver, or discharge is agreed to in writing signed
by Executive and Noble.  No waiver by
either party hereto at any time of any breach by the other party hereto or
compliance with any condition or provision of this Agreement to be performed by
such other party shall be deemed a waiver of similar or dissimilar provisions
or conditions at the same or at any prior or subsequent time.

 

18.                                 Mediation and Arbitration.  Any dispute that may arise between Noble and
Executive in reference to this Agreement, or the interpretation, application or
construction thereof, and any matter, without limitation, arising out of
Executive’s employment with Noble, shall be submitted to mediation using a
mediator or mediators and procedures that are mutually acceptable to Executive and
Noble.  If mediation is not successful,
the dispute shall be submitted to arbitration, conducted before an arbitrator
in Middlesex County, Connecticut in accordance with the National Rules for
the Resolution of Employment Disputes of the American Arbitration Association
then in effect.  Judgment may be entered
on the arbitration award in any court having jurisdiction; provided,
however, that Noble shall be entitled to seek a restraining order or
injunction in any court of competent jurisdiction to prevent any continuation
of any violation of the provisions of Sections 5 through 8 of the Agreement and
Executive hereby consents that such restraining order or injunction may be
granted without requiring Noble to post a bond. 
Only individuals who are on the AAA register of arbitrators may be
selected as an arbitrator.  Within 20
days of the conclusion of the arbitration hearing, the arbitrator(s) shall
prepare written findings of fact and conclusions of law.  It is mutually agreed that the written
decision of the arbitrator(s) shall be valid, binding, final and
non-appealable; provided however, that the parties agree that the arbitrator
shall not be empowered to award punitive damages against any party.  If for any reason this mediation and
arbitration clause becomes not applicable, then each party, to the fullest
extent permitted by applicable law, hereby irrevocably waives all right to a
trial by jury as to any issue relating hereto in any action, proceeding, or
counterclaim arising out of or relating to this Agreement or any other matter
involving the parties hereto.

 

19.                                 Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one and the same Agreement.

 

14

 

20.                                 Section 409A.

 

(a)                                  Notwithstanding
anything to the contrary in this Agreement, if at the time of Executive’s
termination of employment with Noble, Executive is a “specified employee” as
defined in Section 409A of the Internal Revenue Code of 1986, as amended
(the “Code”), as determined by Noble in accordance with Section 409A
of the Code, and the deferral of the commencement of any payments or benefits
otherwise payable hereunder as a result of such termination of employment is
necessary in order to prevent any accelerated or additional tax under Section 409A
of the Code, then Noble will defer the commencement of the payment of any such
payments or benefits hereunder (without any reduction in the payments or
benefits ultimately paid or provided to Executive) until the date that is at
least six (6) months following Executive’s termination of employment with
Noble (or the earliest date permitted under Section 409A of the Code),
whereupon Noble will pay Executive a lump-sum amount equal to the cumulative
amounts that would have otherwise been previously paid to Executive under this
Agreement during the period in which such payments or benefits were
deferred.  Thereafter, payments will
resume in accordance with this Agreement.

 

(b)                                 Additionally, in the
event that following the date hereof Noble or Executive reasonably determines
that any payments or benefits payable under this Agreement may be subject to Section 409A
of the Code, Noble and Executive shall work together to adopt such amendments
to this Agreement or adopt other policies or procedures (including amendments,
policies and procedures with retroactive effect), or take any other
commercially reasonable actions necessary or appropriate to (i) exempt the
payments and benefits payable under this Agreement from Section 409A of
the Code and/or preserve the intended tax treatment of the payments and
benefits provided with respect to this Agreement or (ii) comply with the
requirements of Section 409A of the Code.

 

21.                                 Interaction
with Change in Control Severance Agreement.  Nothing in this Agreement is intended to, or
should be construed as, contradicting, superseding or modifying the Change in
Control Severance Agreement, except that the Change in Control Severance
Agreement, to the extent that it is in effect, and not this Agreement, shall
govern any severance payments made to Executive, if Executive incurs a
termination of employment during the period commencing as of the Change in
Control (as such term is defined in the Change in Control Severance Agreement)
and ending twelve (12) months following such Change in Control (as such term is
defined in the Change in Control Severance Agreement).  For the avoidance of doubt, if Executive
receives any severance payments (including the Salary Continuation, the
Prorated Bonus, and the Health Care Continuation) pursuant to this Agreement,
Executive shall not be entitled to receive any severance payments under the
Change in Control Severance Agreement.

 

22.                                 Legal Fees.  Noble will reimburse the Executive up to
$10,000 with respect to reasonable legal fees incurred by the Executive in
connection with the negotiation  or
review of this Agreement; provided, that, such legal fees are incurred by the
Executive on or prior to the 

 

15

 

date hereof. 
The Executive will promptly
provide Noble with reasonably acceptable information regarding such legal fees
and reimbursement will be made as soon as administratively possible following
the receipt by Noble of such information, which reimbursement will be made no
later than the last day of the calendar year following the calendar year in
which the legal fees were incurred by the Executive.

 

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left blank]

 

16

 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first set forth above.

 

 

	
   

  	
  Noble Environmental Power, LLC  

  
	
   

  	
   

  
	
   

  	
  /s/ Walter Q. Howard

  
	
   

  	
   

  
	
   

  	
  Name: Walter Q. Howard

  
	
   

  	
  Position: President and CEO

  
	
   

  	
  Date:

  	
  May 5, 2008

  
	
   

  	
   

  
	
   

  	
   

  
	
  Witnessed:

  	
  /s/ Michael J. Palmieri

  	
   

  	
  /s/ Charles C. Hinckley

  
	
  Name:

  	
   Michael J. Palmieri

  	
   

  	
  Charles C. Hinckley

  
	
  Date:

  	
   May 5, 2008

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date:

  	
   May 5, 2008

  
								

 

17

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