Document:

EX-4.1

 Exhibit 4.1 

NINTH SUPPLEMENTAL INDENTURE 

dated as of September 22, 2014 

among 
 K. HOVNANIAN ENTERPRISES,
INC. 
 HOVNANIAN ENTERPRISES, INC. 

The Other Guarantors Party Hereto 

and 
 WILMINGTON TRUST, NATIONAL
ASSOCIATION 
 as Trustee and Collateral Agent 
  

 
 9.125% Senior
Secured Second Lien Notes due 2020 

  
 1 

 THIS NINTH SUPPLEMENTAL INDENTURE, dated as of September 22, 2014 (this
“Ninth Supplemental Indenture”), to the Indenture dated as of October 2, 2012, among K. Hovnanian Enterprises, Inc., a California corporation (the “Issuer”), Hovnanian Enterprises, Inc. (the
“Company”), the other guarantors party thereto and Wilmington Trust, National Association, as trustee and collateral agent (in both such capacities, the “Trustee”) (as amended and supplemented to the date hereof,
the “Indenture”). 
 W I T N E S S E T H: 

WHEREAS, the Issuer’s 9.125% Senior Secured Second Lien Notes due 2020 (the “Notes”) were issued under the
Indenture and are guaranteed by the Company, K. HOV IP II, Inc., a California corporation (“K. HOV IP”), and each of the entities listed on Schedule I hereto (together with K. HOV IP, the “Guarantors”); 

WHEREAS, the Issuer has solicited consents (each a “Consent” and collectively the “Consents”) of
Holders to the amendment of the Indenture and to the Notes set forth in Section 2 of this Ninth Supplemental Indenture (the “Amendment”) upon the terms and subject to the conditions set forth in the Consent Solicitation
Statement, dated September 11, 2014 (the “Statement”), and in the related Consent Form (the “Consent Form” and, together with the Statement, the “Consent Documents”); 

WHEREAS, Section 9.02 of the Indenture provides that the Issuer, the Company, the Guarantors and the Trustee may amend or
supplement the Indenture, the Notes and the Guarantees with the written consent of the Holders of a majority in principal amount of the outstanding Notes; 

WHEREAS, the Issuer has received and delivered to the Trustee written evidence of the Consents from Holders of more than a majority of
the outstanding aggregate principal amount of the Notes to effect the Amendment; 
 WHEREAS, the Issuer, the Company and the
Guarantors have been authorized by a resolution of their respective Board of Directors, or the Board of Directors of their ultimate sole or managing member, as the case may be, to enter into this Ninth Supplemental Indenture; and 

WHEREAS, all other acts and proceedings required by law, by the Indenture and by the organizational documents of the Issuer, the
Company and the Guarantors to make this Ninth Supplemental Indenture a valid and binding agreement for the purposes expressed herein, in accordance with its terms, have been duly done and performed; 

NOW, THEREFORE, in consideration of the premises and the covenants and agreements contained herein, and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Issuer, the Company, the Guarantors and the Trustee hereby agree as follows: 

SECTION 1. Definitions. 

Capitalized terms used herein and not otherwise defined herein are used as defined in the Indenture. 

  
 2 

 SECTION 2. Modification of Certain Definitions in Article 1. 

(a) The definition of “Permitted Indebtedness” in Article 1 of the Indenture is amended by (i) deleting the “and” at
the end of clause (l), (ii) deleting the “.” at the end of clause (m) and replacing it with “; and” and (iii) adding, after the end of clause (m) a new clause (n) as follows: 

“(n) Indebtedness in an aggregate principal amount outstanding at any one time not to exceed $300.0 million plus, in connection
with the incurrence of any Refinancing Indebtedness in respect of Indebtedness incurred under this clause (n), the aggregate principal amount of additional Indebtedness incurred to fund accrued interest, premiums (including tender premiums) and fees
and expenses incurred in connection with the refinancing of such Indebtedness.” 
 SECTION 3. This Ninth Supplemental Indenture
will become effective immediately upon its execution and delivery but the Amendment set forth in Section 2 of this Ninth Supplemental Indenture will not become operative unless and until the Consent Consideration (as defined in the
Consent Documents) is paid by the Issuer in accordance with the terms and conditions of the Consent Documents. 
 SECTION 4. This
Ninth Supplemental Indenture shall be governed by and construed in accordance with the laws of the State of New York. 
 SECTION 5.
This Ninth Supplemental Indenture may be signed in various counterparts, which together will constitute one and the same instrument. 

SECTION 6. This Ninth Supplemental Indenture is an amendment supplemental to the Indenture, and the Indenture and this Ninth
Supplemental Indenture will henceforth be read together. 
 SECTION 7. Except as expressly provided herein, all of the terms,
provisions and conditions of the Indenture and the Notes shall remain in full force and effect. 
 SECTION 8. If any provision of
this Ninth Supplemental Indenture limits, qualifies or conflicts with another provision of this Ninth Supplemental Indenture or the Indenture that is required to be included by the Trust Indenture Act of 1939 as in force at the date as of which this
Ninth Supplemental Indenture is executed, the provision required by said Act shall control. 
 SECTION 9. The Trustee shall not be
responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Ninth Supplemental Indenture or for or in respect of the Recitals contained herein, all of which are made solely by the Issuer, the Company and each of the
Guarantors. 
 [Remainder of page intentionally left blank] 

  
 3 

 IN WITNESS WHEREOF, the parties hereto have caused this Ninth Supplemental Indenture to be
duly executed as of the date first above written. 
  

			
	K. HOVNANIAN ENTERPRISES, INC.,
	as Issuer
		
	By:	 	 /s/ David G. Valiaveedan

	Name:	 	David G. Valiaveedan
	Title:	 	Vice President—Finance and Treasurer
	
	HOVNANIAN ENTERPRISES, INC.
		
	By:	 	 /s/ David G. Valiaveedan

	Name:	 	David G. Valiaveedan
	Title:	 	Vice President—Finance and Treasurer
	
	K. HOV IP, II, INC.
		
	By:	 	 /s/ David G. Valiaveedan

	Name:	 	David G. Valiaveedan
	Title:	 	Chief Executive Officer and Treasurer
	
	ON BEHALF OF EACH OF THE ENTITIES LISTED ON SCHEDULE I HERETO
		
	By:	 	 /s/ David G. Valiaveedan

	Name:	 	David G. Valiaveedan
	Title:	 	Vice President—Finance and Treasurer

  

			
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee and Collateral Agent
		
	By:	 	 /s/ Joshua C. Jones

	Name:	 	Joshua C. Jones
	Title:	 	Assistant Vice President

 SCHEDULE I 

K. HOVNANIAN DEVELOPMENTS OF ARIZONA, INC. 
 K. HOVNANIAN GREAT
WESTERN BUILDING COMPANY, LLC 
 K. HOVNANIAN GREAT WESTERN HOMES, LLC 

NEW LAND TITLE AGENCY, L.L.C. 
 K. HOVNANIAN AT PALM VALLEY,
L.L.C. 
 K. HOVNANIAN AT QUAIL CREEK, L.L.C. 
 K. HOVNANIAN AT
RANCHO CABRILLO, LLC 
 K. HOVNANIAN AT BELCARA, LLC 

STONEBROOK HOMES, INC. 
 K. HOVNANIAN COMPANIES OF CALIFORNIA,
INC. 
 K. HOVNANIAN DEVELOPMENTS OF CALIFORNIA, INC. 
 K.
HOVNANIAN AT SYCAMORE, INC. 
 K. HOVNANIAN COMPANIES OF SOUTHERN CALIFORNIA, INC. 

K. HOVNANIAN AT BRIDGEPORT, INC. 
 K. HOVNANIAN AT OCEAN WALK,
INC. 
 K. HOVNANIAN AT DOMINGUEZ HILLS, INC. 
 SEABROOK
ACCUMULATION CORPORATION 
 K. HOVNANIAN AT WINCHESTER, LLC 
 K.
HOVNANIAN’S FOUR SEASONS, LLC 
 K. HOVNANIAN AT MENIFEE, LLC 

K. HOVNANIAN AT RANCHO SANTA MARGARITA, LLC 
 K. HOVNANIAN AT
ARBOR HEIGHTS, LLC 
 K. HOVNANIAN AT THE GABLES, LLC 
 K.
HOVNANIAN AT RIVERBEND, LLC 
 K. HOVNANIAN AT ENCINITAS RANCH, LLC 

K. HOVNANIAN AT PARK LANE, LLC 
 K. HOVNANIAN AT TRAIL RIDGE, LLC

 K. HOVNANIAN’S FOUR SEASONS AT HEMET, LLC 
 K. HOVNANIAN
COMMUNITIES, INC. 
 K. HOVNANIAN AT 4S, LLC 
 K. HOVNANIAN
DEVELOPMENTS OF NEW JERSEY II, INC. 
 K. HOVNANIAN DEVELOPMENTS OF NEW JERSEY, INC. 

K. HOVNANIAN COMPANIES, LLC 
 K. HOVNANIAN AT AVENUE ONE, L.L.C.

 K. HOVNANIAN’S FOUR SEASONS AT PALM SPRINGS, LLC 
 K.
HOVNANIAN AT MOSAIC, LLC 
 K. HOVNANIAN AT OLDE ORCHARD, LLC 

K. HOVNANIAN AT EASTLAKE, LLC 
 K. HOVNANIAN AT LA COSTA, LLC 

K. HOVNANIAN AT SKYE ISLE, LLC 
 K. HOVNANIAN AT LA HABRA KNOLLS,
LLC 
 K. HOVNANIAN AT CORTEZ HILL, LLC 
 K. HOVNANIAN’S
FOUR SEASONS AT BEAUMONT, LLC 
 K. HOVNANIAN AT ACQUA VISTA, LLC 

K. HOVNANIAN AT THE CROSBY, LLC 
 K. HOVNANIAN AT ALISO, LLC 

K. HOVNANIAN AT BELLA LAGO, LLC 

 K. HOVNANIAN AT THE PRESERVE, LLC 

K. HOVNANIAN AT LAKE RANCHO VIEJO, LLC 
 K. HOVNANIAN AT THOMPSON
RANCH, LLC 
 K. HOVNANIAN AT GASLAMP SQUARE, L.L.C. 
 K.
HOVNANIAN’S FOUR SEASONS AT BAKERSFIELD, L.L.C. 
 K. HOVNANIAN AT CAPISTRANO, L.L.C. 

K. HOVNANIAN AT EVERGREEN, L.L.C. 
 K. HOVNANIAN AT ROSEMARY
LANTANA, L.L.C. 
 K. HOVNANIAN’S PARKSIDE AT TOWNGATE, L.L.C. 

K. HOVNANIAN AT PRADO, L.L.C. 
 K. HOVNANIAN AT SAGE, L.L.C. 

K. HOVNANIAN AT CIELO, L.L.C. 
 K. HOVNANIAN AT PIAZZA D’ORO,
L.L.C. 
 K. HOVNANIAN AT LA COSTA GREENS, L.L.C. 
 K. HOVNANIAN
AT COASTLINE, L.L.C. 
 K. HOVNANIAN HOMES NORTHERN CALIFORNIA, INC. 

K. HOVNANIAN AT STANTON, LLC 
 K. HOVNANIAN AT BAKERSFIELD 463,
L.L.C. 
 K. HOVNANIAN AT LA LAGUNA, L.L.C. 
 K. HOVNANIAN AT
MALAN PARK, L.L.C. 
 K. HOVNANIAN AT PIAZZA SERENA, L.L.C 
 K.
HOVNANIAN AT VICTORVILLE, L.L.C. 
 K. HOVNANIAN AT VISTA DEL SOL, L.L.C. 

K. HOVNANIAN AT EL DORADO RANCH II, L.L.C. 
 K. HOVNANIAN AT EL
DORADO RANCH, L.L.C. 
 K. HOVNANIAN AT WEST VIEW ESTATES, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT MORENO VALLEY, L.L.C. 
 K.
HOVNANIAN AT CHARTER WAY, LLC 
 K. HOVNANIAN AT FRESNO, LLC 

K. HOVNANIAN AT JAEGER RANCH, LLC 
 K. HOVNANIAN AT MELANIE
MEADOWS, LLC 
 K. HOVNANIAN AT MUIRFIELD, LLC 
 K. HOVNANIAN AT
PARKSIDE, LLC 
 K. HOVNANIAN AT SANTA NELLA, LLC 
 K. HOVNANIAN
AT VALLE DEL SOL, LLC 
 K. HOVNANIAN AT WESTSHORE, LLC 
 K.
HOVNANIAN AT WHEELER RANCH, LLC 
 K. HOVNANIAN AT WOODCREEK WEST, LLC 

K. HOVNANIAN’S FOUR SEASONS AT LOS BANOS, LLC 
 K. HOVNANIAN
AT FIDDYMENT RANCH, LLC 
 K. HOVNANIAN AT SHELDON GROVE, LLC 

K. HOVNANIAN AT WATERSTONE, LLC 
 K. HOVNANIAN AT CARLSBAD, LLC

 K. HOVNANIAN AT MANTECA, LLC 
 K. HOVNANIAN AT POSITANO, LLC

 K. HOVNANIAN AT SUNRIDGE PARK, LLC 
 K. HOVNANIAN AT GILROY,
LLC 
 K. HOVNANIAN AT ANDALUSIA, LLC 
 K. HOVNANIAN AT VERONA
ESTATES, LLC 

 K. HOVNANIAN AT PAVILION PARK, LLC 

K. HOVNANIAN AT GILROY 60, LLC 
 K. HOVNANIAN AT BLACKSTONE, LLC

 K. HOVNANIAN AT VINEYARD HEIGHTS, LLC 
 K. HOVNANIAN AT CEDAR
LANE, LLC 
 K. HOVNANIAN DEVELOPMENTS OF D.C., INC. 
 K.
HOVNANIAN HOMES OF D.C., L.L.C. 
 K. HOVNANIAN AT MANSFIELD I, L.L.C. 

K. HOVNANIAN AT MANSFIELD II, L.L.C. 
 K. HOVNANIAN CENTRAL
ACQUISITIONS, L.L.C. 
 K. HOVNANIAN NORTH CENTRAL ACQUISITIONS, L.L.C. 

K. HOVNANIAN NORTH JERSEY ACQUISITIONS, L.L.C. 
 K. HOVNANIAN
SHORE ACQUISITIONS, L.L.C. 
 K. HOVNANIAN SOUTH JERSEY ACQUISITIONS, L.L.C. 

K. HOVNANIAN AT WAYNE, VIII, L.L.C. 
 K. HOVNANIAN AT CHESTER I,
L.L.C. 
 K. HOVNANIAN AT WEST WINDSOR, L.L.C. 
 K. HOVNANIAN AT
NORTH BRUNSWICK VI, L.L.C. 
 K. HOVNANIAN AT LAWRENCE V, L.L.C. 

WASHINGTON HOMES, INC. 
 K. HOVNANIAN DEVELOPMENTS OF DELAWARE,
INC. 
 K. HOVNANIAN HOMES OF DELAWARE, L.L.C. 
 WTC VENTURES,
L.L.C. 
 WOODMORE RESIDENTIAL, L.L.C. 
 K. HOVNANIAN HAMPTONS
AT OAK CREEK II, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT SILVER MAPLE FARM, L.L.C. 

K. HOVNANIAN HOMES OF LONGACRE VILLAGE, L.L.C. 
 KHH SHELL HALL
LOAN ACQUISITION, LLC 
 K. HOVNANIAN AT PLANTATION LAKES, L.L.C. 

K. HOVNANIAN AT BRENFORD STATION, LLC 
 K. HOVNANIAN AT OCEAN VIEW
BEACH CLUB, LLC 
 K. HOVNANIAN AT ASHBY PLACE, LLC 
 K.
HOVNANIAN AT NOTTINGHAM MEADOWS, LLC 
 HOVNANIAN DEVELOPMENTS OF FLORIDA, INC. 

K. HOVNANIAN WINDWARD HOMES, LLC 
 HOVNANIAN LAND INVESTMENT GROUP
OF FLORIDA, L.L.C. 
 K. HOVNANIAN CAMBRIDGE HOMES, L.L.C. 
 K.
HOVNANIAN T&C HOMES AT FLORIDA, L.L.C. 
 K. HOVNANIAN AT LAKE BURDEN, LLC 

K. HOVNANIAN FIRST HOMES, L.L.C. 
 K. HOVNANIAN FLORIDA REALTY,
L.L.C. 
 EASTERN NATIONAL TITLE AGENCY, LLC 
 K. HOVNANIAN
STERLING RANCH, LLC 
 K. HOVNANIAN GRAND CYPRESS, LLC 
 K.
HOVNANIAN AT PICKETT RESERVE, LLC 
 K. HOVNANIAN SOUTH FORK, LLC 

K. HOVNANIAN ESTATES AT WEKIVA, LLC 
 K. HOVNANIAN JUPITER FARMS,
LLC 
 K. HOVNANIAN RIVERSIDE, LLC 

 K. HOVNANIAN AT WALKERS GROVE, LLC 

K. HOVNANIAN CYPRESS KEY, LLC 
 K. HOVNANIAN BELMONT RESERVE, LLC

 K. HOVNANIAN TERRA BELLA, LLC 
 K. HOVNANIAN UNION PARK, LLC

 K. HOVNANIAN AT TERRA BELLA TWO, LLC 
 K. HOVNANIAN AT
HILLTOP RESERVE, LLC 
 K. HOVNANIAN AT CASA DEL MAR, LLC 
 K.
HOVNANIAN AT CORAL LAGO, LLC 
 K. HOVNANIAN AT HILLTOP RESERVE II, LLC 

K. HOVNANIAN GRANDEFIELD, LLC 
 K. HOVNANIAN DEVELOPMENTS OF
GEORGIA, INC. 
 K. HOVNANIAN HOMES OF GEORGIA, L.L.C. 
 K.
HOVNANIAN HOMES AT CREEKSIDE, LLC 
 K. HOVNANIAN DEVELOPMENTS OF ILLINOIS, INC. 

K. HOVNANIAN T&C HOMES AT ILLINOIS, L.L.C. 
 K. HOVNANIAN
ESTATES AT REGENCY, L.L.C. 
 GLENRISE GROVE, L.L.C. 
 ARBOR
TRAILS, LLC 
 K. HOVNANIAN AT ORCHARD MEADOWS, LLC 
 K.
HOVNANIAN AT SAUGANASH GLEN, LLC 
 K. HOVNANIAN AT PRAIRIE POINTE, LLC 

K. HOVNANIAN AT ISLAND LAKE, LLC 
 K. HOVNANIAN AT MEADOWRIDGE
VILLAS, LLC 
 K. HOVNANIAN AT FAIRFIELD RIDGE, LLC 
 K.
HOVNANIAN SUMMIT HOMES OF KENTUCKY, L.L.C. 
 K. HOVNANIAN DEVELOPMENTS OF KENTUCKY, INC. 

WH PROPERTIES, INC. 
 K. HOVNANIAN COMPANIES OF MARYLAND, INC.

 K. HOVNANIAN DEVELOPMENTS OF MARYLAND, INC. 
 K.
HOVNANIAN’S FOUR SEASONS AT KENT ISLAND, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT ST. MARGARETS LANDING, L.L.C. 

K. HOVNANIAN AT WILLOW BROOK, L.L.C. 
 K. HOVNANIAN AT RODERUCK,
L.L.C. 
 WASHINGTON HOMES AT COLUMBIA TOWN CENTER, L.L.C. 
 K.
HOVNANIAN HOMES OF MARYLAND, L.L.C. 
 K. HOVNANIAN HOMES AT FAIRWOOD, L.L.C. 

RIDGEMORE UTILITY, L.L.C. 
 WOODLAND LAKE CONDOMINIUMS AT BOWIE
NEW TOWN, L.L.C. 
 PADDOCKS, L.L.C. 
 K. HOVNANIAN HOMES AT
RENAISSANCE PLAZA, L.L.C. 
 PINE AYR, LLC 
 K. HOVNANIAN HOMES
AT CAMP SPRINGS, L.L.C. 
 K. HOVNANIAN HOMES AT FOREST RUN, L.L.C. 

HOVNANIAN LAND INVESTMENT GROUP, L.L.C. 
 HOVNANIAN LAND
INVESTMENT GROUP OF MARYLAND, L.L.C. 
 K. HOVNANIAN HOMES AT RUSSETT, L.L.C. 

K. HOVNANIAN HOMES AT MAXWELL PLACE, L.L.C. 
 FOUNDERS TITLE
AGENCY OF MARYLAND, L.L.C. 

 K. HOVNANIAN’S FOUR SEASONS AT KENT ISLAND CONDOMINIUMS, L.L.C. 

HOMEBUYERS FINANCIAL SERVICES, L.L.C. 
 K. HOVNANIAN HOMES AT
JONES STATION 1, L.L.C. 
 K. HOVNANIAN HOMES AT GREENWAY FARM PARK TOWNS, L.L.C. 

K. HOVNANIAN HOMES AT GREENWAY FARM, L.L.C. 
 K. HOVNANIAN HOMES
AT THE HIGHLANDS, LLC 
 K. HOVNANIAN DEVELOPMENTS OF MINNESOTA, INC. 

K. HOVNANIAN HOMES OF MINNESOTA, L.L.C. 
 K. HOVNANIAN AT HIGHLAND
SHORES, L.L.C. 
 K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK, L.L.C. 

K. HOVNANIAN LIBERTY ON BLUFF CREEK, LLC 
 K. HOVNANIAN TIMBRES AT
ELM CREEK, LLC 
 K. HOVNANIAN’S FOUR SEASONS AT RUSH CREEK II, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT AUTUMN MEADOWS, LLC 
 K.
HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW, LLC 
 K. HOVNANIAN HOMES OF MINNESOTA AT CEDAR HOLLOW WEST, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT FOUNDER’S RIDGE, LLC 
 K.
HOVNANIAN HOMES OF MINNESOTA AT REGENT’S POINT, LLC 
 K. HOVNANIAN HOMES OF MINNESOTA AT BRYNWOOD, LLC 

K. HOVNANIAN HOMES OF MINNESOTA AT ARBOR CREEK, LLC 
 K. HOVNANIAN
HOMES OF MINNESOTA AT HARPERS STREET WOODS, LLC 
 K. HOVNANIAN HOMES OF MINNESOTA AT OAKS OF OXBOW, LLC 

K. HOVNANIAN HOMES OF NORTH CAROLINA, INC. 
 K. HOVNANIAN
DEVELOPMENTS OF NORTH CAROLINA, INC. 
 WESTMINSTER HOMES, INC. 

K. HOVNANIAN’S FOUR SEASONS AT RENAISSANCE, L.L.C. 
 K.
HOVNANIAN HOMES AT REEDY CREEK, LLC 
 K. HOVNANIAN AT NEUSE RIVER, LLC 

K. HOVNANIAN HOMES AT BROOK MANOR, LLC 
 K. HOVNANIAN AT BURCH
KOVE, LLC 
 K. HOVNANIAN AT LILY ORCHARD, LLC 
 K. HOVNANIAN
WYNDFALL ESTATES AT REGENCY, LLC 
 K. HOVNANIAN AT MAIN STREET SQUARE, LLC 

K. HOVNANIAN AT THE TOWNS AT CROSSROADS, LLC 
 K. HOVNANIAN AT
SMITHVILLE, INC. 
 K. HOVNANIAN CONSTRUCTION III, INC 

LANDARAMA, INC. 
 K. HOVNANIAN CONSTRUCTION II, INC 

MCNJ, INC. 
 EASTERN TITLE AGENCY, INC. 

K. HOVNANIAN PORT IMPERIAL URBAN RENEWAL, INC. 
 K. HOVNANIAN AT
OCEAN TOWNSHIP, INC 
 K. HOVNANIAN PROPERTIES OF RED BANK, INC. 

K. HOVNANIAN AT MAHWAH VI, INC. 
 K. HOVNANIAN CONSTRUCTION
MANAGEMENT, INC. 
 K. HOVNANIAN ACQUISITIONS, INC. 
 K.
HOVNANIAN AT BLUE HERON PINES, L.L.C. 
 K. HOVNANIAN AT JACKSON, L.L.C. 

K. HOVNANIAN AT BERKELEY, L.L.C. 

 K. HOVNANIAN AT GUTTENBERG, L.L.C. 

K. HOVNANIAN AT CLIFTON, L.L.C. 
 K. HOVNANIAN AT UPPER FREEHOLD
TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT JERSEY CITY IV, L.L.C. 

K. HOVNANIAN AT UPPER FREEHOLD TOWNSHIP III, L.L.C. 
 K. HOVNANIAN
AT NORTHFIELD, L.L.C. 
 THE MATZEL & MUMFORD ORGANIZATION, INC 

K. HOVNANIAN AT MANSFIELD III, L.L.C. 
 K. HOVNANIAN AT
WASHINGTON, L.L.C. 
 K. HOVNANIAN AT NORTH HALEDON, L.L.C. 
 K.
HOVNANIAN AT MARLBORO VI, L.L.C. 
 K. HOVNANIAN AT MARLBORO VII, L.L.C. 

K. HOVNANIAN AT HAMBURG, L.L.C. 
 K. HOVNANIAN AT LITTLE EGG
HARBOR, L.L.C 
 K. HOVNANIAN AT MARLBORO TOWNSHIP VIII, L.L.C. 

K. HOVNANIAN AT BARNEGAT I, L.L.C. 
 K. HOVNANIAN AT CRANBURY,
L.L.C. 
 K. HOVNANIAN AT SAYREVILLE, L.L.C. 
 K. HOVNANIAN AT
CEDAR GROVE III, L.L.C. 
 K. HOVNANIAN AT WOOLWICH I, L.L.C. 

K. HOVNANIAN AT WAYNE IX, L.L.C. 
 K. HOVNANIAN AT SOUTH
BRUNSWICK, L.L.C. 
 K. HOVNANIAN SOUTHERN NEW JERSEY, L.L.C. 

K. HOVNANIAN VENTURE I, L.L.C. 
 K. HOVNANIAN AT MANALAPAN II,
L.L.C. 
 K. HOVNANIAN AT DENVILLE, L.L.C. 
 K. HOVNANIAN AT
RANDOLPH I, L.L.C. 
 K. HOVNANIAN AT MIDDLETOWN II, L.L.C. 
 K.
HOVNANIAN AT MIDDLE TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT OLD BRIDGE, L.L.C. 

K. HOVNANIAN AT JACKSON I, L.L.C. 
 M&M AT CHESTERFIELD, LLC

 K. HOVNANIAN AT FOREST MEADOWS, L.L.C. 
 K. HOVNANIAN
HOLDINGS NJ, L.L.C. 
 K. HOVNANIAN NORTHEAST SERVICES, L.L.C. 

K. HOVNANIAN AT SOMERS POINT, L.L.C. 
 K. HOVNANIAN AT FREEHOLD
TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT GREAT NOTCH, L.L.C. 
 K.
HOVNANIAN AT MARLBORO TOWNSHIP V, L.L.C. 
 K. HOVNANIAN AT NORTH BERGEN. L.L.C. 

K. HOVNANIAN AT MANALAPAN III, L.L.C. 
 M&M AT WEST ORANGE,
L.L.C. 
 K. HOVNANIAN AT NORTH WILDWOOD, L.L.C. 
 K. HOVNANIAN
AT JERSEY CITY V URBAN RENEWAL COMPANY, L.L.C. 
 K. HOVNANIAN AT BRIDGEWATER I, L.L.C. 

K. HOVNANIAN AT EDGEWATER, L.L.C. 
 K. HOVNANIAN AT EGG HARBOR
TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT EDGEWATER II, L.L.C. 
 K.
HOVNANIAN AT HACKETTSTOWN II, L.L.C. 

 MATZEL & MUMFORD AT SOUTH BOUND BROOK URBAN RENEWAL, L.L.C. 

K. HOVNANIAN AT CHESTERFIELD, L.L.C. 
 K. HOVNANIAN AT HAWTHORNE,
L.L.C. 
 K. HOVNANIAN AT FLORENCE I, L.L.C. 
 K. HOVNANIAN AT
FLORENCE II, L.L.C. 
 K. HOVNANIAN AT MARLBORO TOWNSHIP IX, L.L.C. 

BUILDER SERVICES NJ, L.L.C. 
 K. HOVNANIAN AT SCOTCH PLAINS,
L.L.C. 
 K. HOVNANIAN AT VINELAND, L.L.C. 
 K. HOVNANIAN AT
NORTH CALDWELL II, L.L.C. 
 K. HOVNANIAN AT DEPTFORD TOWNSHIP, L.L.C. 

M&M AT WHEATENA URBAN RENEWAL, L.L.C. 
 K. HOVNANIAN AT
MILLVILLE I, L.L.C. 
 K. HOVNANIAN AT PITTSGROVE, L.L.C. 
 K.
HOVNANIAN AT MONTVALE, L.L.C. 
 MATZEL & MUMFORD AT EGG HARBOR, L.L.C. 

K. HOVNANIAN AT FRANKLIN, L.L.C. 
 K. HOVNANIAN AT MENDHAM
TOWNSHIP, L.L.C. 
 K. HOVNANIAN AT MILLVILLE II, L.L.C. 
 K.
HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL IV, L.L.C. 
 K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL V, L.L.C. 

K. HOVNANIAN AT MONROE IV, L.L.C. 
 K. HOVNANIAN AT LITTLE EGG
HARBOR TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT WARREN TOWNSHIP, L.L.C. 

K. HOVNANIAN AT HUDSON POINTE, L.L.C. 
 K. HOVNANIAN AT
PARSIPPANY-TROY HILLS, L.L.C. 
 K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VI, L.L.C. 

K. HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VII, L.L.C. 
 K.
HOVNANIAN AT PORT IMPERIAL URBAN RENEWAL VIII, L.L.C. 
 K. HOVNANIAN AT BARNEGAT II, L.L.C. 

K. HOVNANIAN AT EGG HARBOR TOWNSHIP II, L.L.C. 
 K. HOVNANIAN AT
THE MONARCH, L.L.C. 
 K. HOVNANIAN AT RIDGEMONT, L.L.C. 
 K.
HOVNANIAN AT MONROE NJ, L.L.C. 
 K. HOVNANIAN AT MIDDLE TOWNSHIP II, L.L.C. 

F&W MECHANICAL SERVICES, L.L.C. 
 K. HOVNANIAN AT VERONA URBAN
RENEWAL, L.L.C. 
 K. HOVNANIAN AT WILDWOOD BAYSIDE, L.L.C. 

TERRAPIN REALTY, L.L.C. 
 K. HOVNANIAN AT FIFTH AVENUE, L.L.C.

 K. HOVNANIAN AT MAPLE AVENUE, L.L.C. 
 K. HOVNANIAN AT NORTH
CALDWELL III, L.L.C. 
 K. HOVNANIAN AT KEYPORT, L.L.C. 

M&M AT CRESCENT COURT, L.L.C. 
 K. HOVNANIAN AT OCEANPORT,
L.L.C. 
 K. HOVNANIAN AT STATION SQUARE, L.L.C. 
 AUDDIE
ENTERPRISES, L.L.C. 
 K. HOVNANIAN AT SHREWSBURY, LLC 
 K.
HOVNANIAN AT BRANCHBURG, L.L.C. 

 K. HOVNANIAN AT CEDAR GROVE V, L.L.C. 

K. HOVNANIAN AT NORTH CALDWELL IV, L.L.C. 
 K. HOVNANIAN AT
PARSIPPANY, L.L.C. 
 K. HOVNANIAN AT SOUTH BRUNSWICK II, LLC 

K. HOVNANIAN AT MONTVALE II, LLC 
 K. HOVNANIAN AT FRANKLIN II,
L.L.C. 
 K. HOVNANIAN AT HOWELL, LLC 
 K. HOVNANIAN AT LONG
HILL, L.L.C. 
 K. HOVNANIAN AT FRANKLIN III, LLC 
 K. HOVNANIAN
MANALAPAN ACQUISITION, LLC 
 K. HOVNANIAN AT MONTGOMERY, LLC 

K. HOVNANIAN AT MONROE NJ II, LLC 
 K. HOVNANIAN AT MIDDLETOWN
III, LLC 
 K. HOVNANIAN AT MORRIS TWP, LLC 
 K. HOVNANIAN AT
CEDAR GROVE VI, LLC 
 K. HOVNANIAN AT HOWELL II, LLC 
 K.
HOVNANIAN AT ASBURY PARK URBAN RENEWAL, LLC 
 K. HOVNANIAN AT EAST WINDSOR, LLC 

K. HOVNANIAN AT SOUTH BRUNSWICK III, LLC 
 K. HOVNANIAN AT
MIDDLETOWN IV, LLC 
 K. HOVNANIAN CLASSICS, L.L.C. 
 K.
HOVNANIAN AT WALDWICK, LLC 
 K. HOVNANIAN COMPANIES OF NEW YORK, INC. 

K. HOVNANIAN DEVELOPMENTS OF NEW YORK, INC. 
 K. HOVNANIAN AT
MONROE II, INC. 
 K. HOVNANIAN AT NORTHERN WESTCHESTER, INC. 

K. HOVNANIAN AT NEW WINDSOR, L.L.C. 
 K. HOVNANIAN DEVELOPMENTS OF
OHIO, INC. 
 K. HOVNANIAN OHIO REALTY, L.L.C. 
 K. HOVNANIAN
SUMMIT HOMES, L.L.C. 
 MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES, L.L.C. 

K. HOVNANIAN OSTER HOMES, L.L.C. 
 K. HOVNANIAN ABERDEEN, LLC 

K. HOVNANIAN LADUE RESERVE, LLC 
 K. HOVNANIAN MONARCH GROVE, LLC

 K. HOVNANIAN WATERBURY, LLC 
 K. HOVNANIAN WHITE ROAD, LLC

 K. HOVNANIAN INDIAN TRAILS, LLC 
 K. HOVNANIAN HIDDEN HOLLOW,
LLC 
 K. HOVNANIAN RIVENDALE, LLC 
 K. HOVNANIAN WOODLAND
POINTE, LLC 
 K. HOVNANIAN EDGEBROOK, LLC 
 K. HOVNANIAN SCHADY
RESERVE, LLC 
 K. HOVNANIAN HIGHLAND RIDGE, LLC 
 K. HOVNANIAN
BELDEN POINTE, LLC 
 NEW HOME REALTY, LLC 
 K. HOVNANIAN FALLS
POINTE, LLC 
 K. HOVNANIAN LAKES OF GREEN, LLC 
 K. HOVNANIAN
WOODRIDGE PLACE, LLC 

 K. HOVNANIAN DEVELOPMENTS OF PENNSYLVANIA, INC. 

K. HOVNANIAN COMPANIES OF PENNSYLVANIA, INC. 
 K. HOVNANIAN PA
REAL ESTATE, INC. 
 GOVERNOR’S ABSTRACT CO., INC. 
 K.
HOVNANIAN AT UPPER MAKEFIELD I, INC. 
 K. HOVNANIAN AT HERSHEY’S MILL, INC. 

K. HOVNANIAN AT THORNBURY, INC. 
 K. HOVNANIAN AT SAWMILL, INC.

 K. HOVNANIAN AT LOWER MORELAND I, L.L.C. 
 K. HOVNANIAN AT
LOWER MORELAND II, L.L.C. 
 K. HOVNANIAN AT NORTHAMPTON, L.L.C. 

K. HOVNANIAN EASTERN PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN AT LOWER
MACUNGIE TOWNSHIP I, L.L.C. 
 K. HOVNANIAN PENNSYLVANIA ACQUISITIONS, L.L.C. 

K. HOVNANIAN AT LOWER MACUNGIE TOWNSHIP II, L.L.C. 
 K. HOVNANIAN
AT LOWER MAKEFIELD TOWNSHIP I, L.L.C. 
 K. HOVNANIAN AT UPPER UWCHLAN, L.L.C. 

K. HOVNANIAN AT UPPER UWCHLAN II, L.L.C. 
 K. HOVNANIAN SUMMIT
HOMES OF PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN AT RAPHO, L.L.C 

K. HOVNANIAN HOMES OF PENNSYLVANIA, L.L.C. 
 K. HOVNANIAN AT
SILVER SPRING, L.L.C. 
 K. HOVNANIAN AT ALLENTOWN, L.L.C. 
 K.
HOVNANIAN AT CAMP HILL, L.L.C. 
 MIDWEST BUILDING PRODUCTS & CONTRACTOR SERVICES OF PENNSYLVANIA, L.L.C. 

BUILDER SERVICES PA, L.L.C. 
 K. HOVNANIAN AT EAST BRANDYWINE,
L.L.C. 
 K. HOVNANIAN AT MIDDLETOWN, LLC 
 K. HOVNANIAN AT
CHADDS FORD, LLC 
 K. HOVNANIAN AT DOYLESTOWN, LLC 
 K.
HOVNANIAN AT UPPER PROVIDENCE, LLC 
 K. HOVNANIAN DEVELOPMENTS OF SOUTH CAROLINA, INC. 

K. HOVNANIAN HOMES OF SOUTH CAROLINA, LLC 
 K. HOVNANIAN FOUR
SEASONS AT GOLD HILL, LLC 
 K. HOVNANIAN CRAFTBUILT HOMES OF SOUTH CAROLINA, L.L.C. 

K. HOVNANIAN HOMES AT ST. JAMES PLACE, LLC 
 K. HOVNANIAN HOMES AT
THE PADDOCKS, LLC 
 SHELL HALL CLUB AMENITY ACQUISITION, LLC 

SHELL HALL LAND ACQUISITION, LLC 
 SHELL HALL LOAN ACQUISITION,
LLC 
 K. HOVNANIAN HOMES AT THE ABBY, LLC 
 K. HOVNANIAN AT
COOSAW POINT, LLC 
 K. HOVNANIAN HOMES AT SALT CREEK LANDING, LLC 

K. HOVNANIAN’S FOUR SEASONS AT THE LAKES AT CANE BAY, LLC 

K. HOVNANIAN DEVELOPMENTS OF TEXAS, INC. 
 PARK TITLE COMPANY, LLC

 K. HOVNANIAN HOMES - DFW, L.L.C. 
 K. HOVNANIAN HOMES OF
HOUSTON, L.L.C. 
 K. HOVNANIAN OF HOUSTON II, L.L.C. 

 K. HOVNANIAN DFW RIDGEVIEW, LLC 

K. HOVNANIAN DFW BELMONT, LLC 
 K. HOVNANIAN DFW LIBERTY CROSSING,
LLC 
 K. HOVNANIAN DFW INSPIRATION, LLC 
 K. HOVNANIAN DFW
HARMON FARMS, LLC 
 K. HOVNANIAN DFW AUBURN FARMS, LLC 
 K.
HOVNANIAN DFW LIGHT FARMS, LLC 
 K. HOVNANIAN DFW HOMESTEAD, LLC 

K. HOVNANIAN DFW SEVENTEEN LAKES, LLC 
 K. HOVNANIAN DFW
PALISADES, LLC 
 K. HOVNANIAN HOMES OF VIRGINIA, INC. 
 K.
HOVNANIAN DEVELOPMENTS OF VIRGINIA, INC. 
 FOUNDERS TITLE AGENCY, INC. 

K. HOVNANIAN AT LAKE TERRAPIN, L.L.C. 
 K. HOVNANIAN FOUR SEASONS
@ HISTORIC VIRGINIA, LLC 
 K. HOVNANIAN SUMMIT HOLDINGS, L.L.C. 

DULLES COPPERMINE, L.L.C. 
 K. HOVNANIAN HOMES AT CAMERON STATION,
LLC 
 K. HOVNANIAN’S FOUR SEASONS AT CHARLOTTESVILLE, L.L.C. 

K. HOVNANIAN’S FOUR SEASONS AT NEW KENT VINEYARDS, L.L.C. 

K. HOVNANIAN AT LEE SQUARE, L.L.C. 
 K. HOVNANIAN AT SEASONS
LANDING, LLC 
 K. HOVNANIAN AT LENAH WOODS, LLC 
 K. HOVNANIAN
AT RESERVES AT WHEATLANDS, LLC 
 K. HOVNANIAN AT LAKE RIDGE ESTATES, LLC 

K. HOVNANIAN AT RESIDENCE AT DISCOVERY SQUARE, LLC 
 K. HOVNANIAN
HOMES AT WILLOWSFORD GRANT, LLC 
 K. HOVNANIAN AT ESTATES AT WHEATLANDS, LLC 

K. HOVNANIAN AT HUNTER’S POND, LLC 
 K. HOVNANIAN
DEVELOPMENTS OF WEST VIRGINIA, INC. 
 K. HOVNANIAN SUMMIT HOMES OF WEST VIRGINIA, L.L.C. 

K. HOVNANIAN HOMES OF WEST VIRGINIA, L.L.C. 
 MIDWEST BUILDING
PRODUCTS & CONTRACTOR SERVICES OF WEST VIRGINIA, L.L.C. 
 K. HOVNANIAN AT HUNTFIELD, LLCExhibit 10.1

 

EXECUTIVE SEVERANCE AND RELEASE AGREEMENT

 

This Executive Severance and Release Agreement (the “Agreement”) is entered into by and among Atlantic Power Holdings, Inc. (“Atlantic Holdings” or the “Company”), Atlantic Power Corporation (“Atlantic Power”), and Barry E. Welch (the “Executive”) (collectively, the “Parties”).

 

WHEREAS, Atlantic Holdings, a Delaware corporation, is a wholly-owned subsidiary of Atlantic Power, a corporation continued under the laws of the Province of British Columbia, Canada;

 

WHEREAS, the Executive has been employed as the President and Chief Executive Officer of the Company since October 2004;

 

WHEREAS, the Parties entered into an Amended and Restated Executive Employment Agreement effective as of April 15, 2013 (the “Employment Agreement”);

 

WHEREAS, on September 15, 2014 (the “Separation Date”), the Company and the Executive mutually agreed that the Executive would step down as President and Chief Executive Officer of the Company and would resign as a director of Atlantic Power, each as of the Separation Date, and Executive is hereby resigning from any and all other officer and all director positions with the Company and any affiliate, including Atlantic Power;

 

WHEREAS, in the interest of an amicable departure and in recognition of the Executive’s substantial services and contributions to the Company, the Company shall treat the Executive’s separation from employment as an event entitling Executive to the severance benefits set forth in Section 7(a)(A-E) of the Employment Agreement (the “Section 7(a) severance benefits”), subject to the terms and conditions therein and herein; and

 

WHEREAS, in exchange for, among other things, the Executive entering into and complying with this Agreement, the Company shall provide the Executive with the Section 7(a) severance benefits as well as certain additional severance benefits described in this Agreement.

 

NOW, THEREFORE, in consideration of the promises and conditions set forth herein, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

 

1.              Separation from Employment, Director and Officer Positions of the Company and its Affiliates.  The Executive’s separation from employment with the Company and as a director of Atlantic Power was effective as of the Separation Date and the Executive ceased all duties and responsibilities in respect of such employment and directorship, except as referenced in this Agreement, with the Company and any Company affiliate as of such date.  As of the Effective Date (as defined below), the Executive also hereby resigns from any and all other officer and all director positions with the Company or any Company affiliate, including Atlantic Power, and will cease all related duties and responsibilities, except as referenced in this Agreement, with the Company and any Company affiliate.  The Executive hereby irrevocably appoints the Company to be his attorney-in-fact to execute any documents and do anything in his name to effect the Executive’s ceasing to serve as an officer or director of the Company and any affiliate, should he fail to promptly submit his resignation on the Effective Date or execute any documents requested by the Company or any Company affiliate to effectuate the Executive’s resignation from any and all officer and director positions.  A written notification signed by a director or duly authorized officer of the Company or Atlantic Power that any instrument, document or act falls within the authority conferred by this subsection will be conclusive evidence that it does so.  The Company will prepare any documents, pay any filing fees, and bear any other expenses related to this section.

 

2.              Severance Benefits.  Provided the Executive executes this Agreement by September 22, 2014 and complies with the terms and conditions herein, the Company will provide him with the following severance benefits (the “Severance Benefits”):

 

a.              The Section 7(a) severance benefits paid at the time and in the manner set forth in the Employment Agreement, with the Effective Date treated as the Executive’s date of termination for purposes of the Section 7(a) severance benefits.  The Parties hereby agree

 

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that the amount due under Section 7(a)(B) of the Employment Agreement shall be $3,218,250;

 

b.              An additional cash payment of $175,000 (an amount equivalent to three (3) months of the Executive’s last current base salary), less all applicable taxes and withholdings paid to the Executive on the thirtieth (30th) day following the Effective Date; and

 

c.               Employee benefits, as set forth in Section 7(a)(C) of the Employment Agreement, for an additional three (3) months beyond the period set forth in Section 7(a)(C) of the Employment Agreement and incorporated herein at Section 2(a), provided, however, that if for any reason any such benefits or their equivalent cannot be provided through the Company’s group or other plans, the Company shall reimburse the Executive for the reasonable cost of obtaining equivalent benefits within fifteen (15) days of the Executive’s submission of documentation establishing such cost.

 

d.              The Company will reimburse Executive for legal fees he expends in connection with this Agreement in an amount up to $10,000.

 

The payment and provision of the Severance Benefits shall be subject to the terms and conditions of Section 11 of the Employment Agreement.

 

3.              Release by Executive.

 

a.              In consideration of the Severance Benefits, the Executive hereby releases, remises, discharges, and acquits Atlantic Power and all of its subsidiaries, affiliates (including the Company), successors, and assigns, and their respective past, present, and future officers, directors, shareholders, members, partners, agents, employees, and attorneys (collectively, the “Released Parties”), jointly and severally, of and from any and all claims, charges, demands, causes of action, obligations, damages, or liabilities or claims

 

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under any contract (including the Employment Agreement except as expressly provided herein), known or unknown (the “Executive Claims”), which the Executive or the Executive’s heirs, successors or assigns have, ever had, or may now have against any of the Released Parties, arising from, connected with, or related to any event that has happened, developed, or occurred, or any state of facts existing, up to and including the date of the Executive’s execution of this Agreement.  Without limiting the generality of the foregoing, the Executive specifically releases the Released Parties from all Executive Claims that could have been asserted as a result of Executive’s employment with the Company, separation from employment, or other status with Atlantic Power or the Company, including but not limited to Executive Claims conferred by or arising under any federal, state, local, and/or municipal law, including but not limited to the Americans with Disabilities Act of 1990, the Family and Medical Leave Act of 1993, Title VII of the United States Civil Rights Act of 1964, 42 U.S.C. § 1981, the Worker Adjustment and Retraining Notification Act, the Rehabilitation Act, the Massachusetts Fair Employment Practices Act (“MFEPA”), the Massachusetts Equal Rights Law, and the Massachusetts Wage Act, M.G.L.c. 149, §§148 and 150 (including Executive Claims for compensation, salary, wages, bonuses, commission, multiple damages, or attorneys’ fees) and Executive Claims for any form of relief, no matter how denominated, including any claims for injunctive relief, additional compensation, wages, or benefits (including front pay and back pay), compensatory or consequential damages, liquidated or punitive damages, attorneys’ fees, employment, re-employment, or future employment in any capacity, provided, however, that this Agreement shall not act to release, and shall not apply to (1) all continuing obligations of Atlantic Power or its affiliates, including the Company, under Section 2 of this Agreement, (2) all rights in the nature of indemnification and rights to continued coverage under directors’ and officers’ insurance policies (including tail policies) which the Executive may have with respect to claims against the Executive

 

4

 

relating to or arising out of his employment with the Atlantic Power or its affiliates (including the Company), including rights under Section 5 of the Employment Agreement (entitled “Indemnification”) and any Indemnity Agreement between Atlantic Power and the Company and the Executive, all of which survive the Executive’s termination of employment; (3) any vested benefit to which the Executive is entitled under any tax qualified pension plan of Atlantic Power or its affiliates, including the Company; or (4) COBRA continuation coverage benefits or any other similar benefits required to be provided by statute or the Employment Agreement.

 

b.              The Executive agrees that he will not file or permit to be filed on the Executive’s behalf any Executive Claim against any of the Released Parties involving any matter occurring up to and including the date of the Executive’s execution of this Agreement, except with respect to those obligations, rights, and benefits that are excepted and excluded from the scope of the foregoing release.  Notwithstanding any other provision of this Agreement, this Agreement is not intended to interfere with the Executive’s right to file a charge with the Equal Employment Opportunity Commission or any state human rights commission in connection with any claim he believes he may have against Atlantic Power or its affiliates (including the Company), or to bar or prohibit contact with or participation in any proceeding before a federal or state administrative agency, provided however, that by executing this Agreement, the Executive hereby waives the right to recover monetary damages or personal relief with respect to any such charge or proceeding.

 

4.              Release by the Company and Atlantic Power.  The Company, Atlantic Power and their affiliates hereby release, remise, discharge, and acquit the Executive of and from any and all claims, charges, demands, causes of action, obligations, damages, or liabilities or claims under any contract (including the Employment Agreement, except as expressly provided herein), known or

 

5

 

unknown (the “Company and Atlantic Power Claims”), which the Company, Atlantic Power or their affiliates have, ever had, or may now have against the Executive arising from, connected with, or related to any event that has happened, developed, or occurred, or any state of facts existing, up to and including the date of the Company and Atlantic Power’s execution of this Agreement.  This release includes, without implication of limitation, the complete waiver and release of all Company and Atlantic Power Claims arising in connection with Executive’s employment with and/or service as an officer and/or director of the Company and Atlantic Power and their affiliates, or Executive’s separation from employment with and/or service as an officer and/or director of the Company and Atlantic Power and their affiliates; provided, however, that notwithstanding the foregoing, the Company, Atlantic Power and their affiliates do not release Executive from any Company and Atlantic Power Claims based on any acts and/or omissions that satisfy the elements of a criminal offense or claims arising out of any intentional misconduct by Executive that resulted in injury to the Company, Atlantic Power or their affiliates (provided that the Company and Atlantic Power hereby represent that they know of no such Company and Atlantic Power Claims), nor do the Company or Atlantic Power release Executive with respect to the recoupment rights set forth in Section 19 of the Employment Agreement.

 

5.              Continuing Obligations.  The Executive acknowledges and reaffirms each of the following obligations: (a) his confidentiality obligations under Section 8 of the Employment Agreement, which remain in full force and effect; (b) his non-solicitation obligations under Section 9(b) of the Employment Agreement; and (c) his recoupment obligations under Section 19 of the Employment Agreement.  The Parties agree that the Executive’s obligations under Section 9(a) of the Employment Agreement shall not be applicable and that instead (i) for one (1) year following the Separation Date, Executive shall not divert or otherwise appropriate, directly or indirectly, alone or with others, any project acquisition, development and/or construction opportunities that the Company considered within the nine (9) month period immediately preceding the Separation

 

6

 

Date and (ii) Executive shall not be employed by any public or private company that, within one (1) year of the Separation Date, undertakes any transaction which would constitute a “change in control” as defined in paragraph 6(b) of the Employment Agreement with respect to Atlantic Power or Atlantic Holdings.

 

6.              Return of Company Property.  The Executive agrees to return to the Company or the applicable Company affiliate all keys, files, records (and copies thereof), equipment (including, but not limited to, computer hardware, software and printers, wireless handheld devices, USB storage devices, cellular phones, tablets, etc.), Company or Company affiliate identification, Company or Company affiliate vehicles and any other Company-owned or Company affiliate-owned property in Executive’s possession or control and to leave intact all electronic Company and Company affiliate documents, including but not limited to, those that Executive developed or helped to develop during his employment and/or his role as an officer or director of the Company or any Company affiliate; provided, however, that the Executive may keep any computer, wireless handheld device, cellular telephone or tablet provided by the Company so long as the Executive provides such computer, device, telephone or tablet to the Company within one month of the Effective Date to enable the Company to delete any and all information related to the Company and its affiliates from such item.  The Executive further agrees to cancel within 30 days of the Effective Date, all accounts for his benefit, if any, in the Company’s or any Company affiliate’s name, including but not limited to, credit cards, telephone charge cards, cellular phone, wireless data or internet accounts, and/or and computer accounts; provided that the Executive shall promptly reimburse the Company for any personal use of Company credit cards, telephone charge cards or other accounts following the Separation Date.

 

7.              Final Compensation; Expense Reimbursement.  On the Company’s next regular payroll date following the Separation Date, the Company shall pay Executive his accrued but unpaid base salary and any accrued but unused vacation based on Executive’s employment through the

 

7

 

Separation Date.  The Executive shall be entitled to be reimbursed for his reasonable business expenses incurred prior to the Separation Date in connection with his employment, subject to the Company’s policies and procedures with respect to expense reimbursement, and provided that Executive submits documentation for any open expenses within thirty (30) days of the Separation Date.  Consistent with Company policy, any outstanding expenses will be reimbursed to Executive by the next payroll date after submission.

 

8.              Non-Disparagement.  The Executive understands and agrees that, to the extent permitted by law, he shall not make any false, disparaging, derogatory or defamatory statements to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former officer, employee, board member, consultant, client or customer of the Company or any Company affiliate, regarding the Company or any of the other Released Parties, or regarding the Company’s business affairs, business prospects, or financial condition.  The Company and Atlantic Power will instruct all current officers and directors to refrain from making any false, disparaging or derogatory statements to any person or entity, including, but not limited to, any media outlet, industry group, financial institution or current or former officer, employee, board member, consultant, client or customer of the Company or any Company affiliate about Executive.

 

9.              Cooperation.  The Executive agrees to cooperate with the Company or any Company affiliate, including Atlantic Power, in the investigation, defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of the Company or any Company affiliate that involve matters relating to the Executive’s role as a director, officer, or employee of the Company or any Company affiliate, including Atlantic Power.  The Executive’s cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Company’s counsel to prepare for discovery or any mediation, arbitration, trial, administrative hearing or other proceeding or to act as a witness when

 

8

 

reasonably requested by the Company or any Company affiliate at mutually agreeable times and at locations mutually convenient to the Parties.  The Executive shall be entitled to receive a prompt reimbursement of all reasonable expenses incurred by the Executive in cooperating hereunder including expenses related to travel and other expenses while away from home.  The Company shall reimburse such expenses subject to Company’s expense reimbursement policy and further subject to the terms set forth in Section 11(d) of the Employment Agreement.

 

10.       Amendment.  This Agreement shall be binding upon the Parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent date signed by duly authorized representatives of the Parties hereto.  This Agreement is binding upon and shall inure to the benefit of the Parties and their respective agents, assigns, heirs, executors, successors and administrators.

 

11.       Waiver of Rights.  No delay or omission by Atlantic Power or Atlantic Holdings in exercising any right under this Agreement shall operate as a waiver of that or any other right.  A waiver or consent given by Atlantic Power or Atlantic Holdings on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion.

 

12.       Validity.  Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement.

 

13.       Acknowledgements.  The Executive acknowledges that he has been given a reasonable period of time to consider this Agreement and that the Company and Atlantic Power are hereby advising the Executive to consult with an attorney of his own choosing prior to signing this Agreement.  The Executive understands and agrees that he will not be entitled to receive the Severance Benefits if he fails to timely execute this Agreement.

 

9

 

14.       Voluntary Assent.  The Executive affirms that no other promises or agreements of any kind have been made to or with the Executive by any person or entity whatsoever to cause him to sign this Agreement, and that he fully understands the meaning and intent of this Agreement.  The Executive states and represents that he has had an opportunity to fully discuss and review the terms of this Agreement with an attorney.  The Executive further states and represents that he has carefully read this Agreement, understands the contents herein, freely and voluntarily assents to all of the terms and conditions hereof, and signs his name of his own free act.

 

15.       Applicable Law.  This Agreement shall be governed by the laws of the Commonwealth of Massachusetts without regard to conflict of laws provisions.  The Parties hereby irrevocably submit to and acknowledge and recognize the jurisdiction of the courts of the Commonwealth of Massachusetts, or if appropriate, a federal court located in the Commonwealth of Massachusetts (which courts, for purposes of this Agreement, are the only courts of competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this Agreement or the subject matter hereof.

 

16.       Tax Acknowledgement.  In connection with the payments and consideration provided to the Executive pursuant to this Agreement, the Company will withhold and remit to the tax authorities the amounts required under applicable law, and the Executive shall be responsible for all applicable taxes with respect to such payments and consideration under applicable law.  The Executive acknowledges that he is not relying upon the advice or representation of the Company with respect to the tax treatment of any of the payments or benefits set forth in Paragraph 2 of this Agreement or otherwise.

 

17.       Entire Agreement.  This Agreement contains and constitutes the entire understanding and agreement between the Parties hereto with respect to the Executive’s severance benefits and the settlement of claims against the Company and Atlantic Power and cancels all previous oral and

 

10

 

written negotiations, agreements, commitments and writings in connection therewith.  The Executive hereby acknowledges that the payments, benefits, and rights set forth in this Agreement are the exclusive payments, benefits, and rights due to Executive in connection with his separation from employment with the Company.

 

18.       Recital Paragraphs.  The recital paragraphs at the beginning of this Agreement are incorporated by reference as if fully set forth herein.

 

19.       Execution.  This Agreement may be executed by facsimile or electronic mail and in two (2) or more signature counterparts, each of which shall constitute an original, but all of which taken together shall constitute one and the same instrument.

 

[REMAINDER OF PAGE INTENTIONALLY BLANK]

 

11

 

IN WITNESS WHEREOF, the Parties have freely and voluntarily entered into this Agreement effective as of the date set forth below (the “Effective Date”).

 

 

	
 
    	
ATLANTIC   POWER HOLDINGS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
September   22, 2014
    	
 
    	
 
    	
By:
    	
/s/   Kenneth Hartwick
    
	
 
    	
 
    	
Name:  Kenneth Hartwick
    
	
 
    	
 
    	
Title:  Interim CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ATLANTIC   POWER CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
September   22, 2014
    	
 
    	
 
    	
By:
    	
/s/   Kenneth Hartwick
    
	
 
    	
 
    	
Name:  Kenneth Hartwick
    
	
 
    	
 
    	
Title:  Interim CEO
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BARRY   E. WELCH
    
	
 
    	
 
    
	
 
    	
 
    
	
Date:
    	
September   22, 2014
    	
 
    	
 
    	
/s/   Barry E. Welch
    

 

12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00235-of-00352.parquet"}]]