Document:

Exhibit 10.1

 

September 15, 2008

 

VIA TELECOPY

 

Orleans Homebuilders, Inc.

One Greenwood Square

3333 Street Road

Bensalem, Pennsylvania 19020

Attention: Garry P. Herdler,
EVP & CFO

 

Re:                             Amended
and Restated Revolving Credit Loan Agreement dated as of January 24, 2006
by and among Greenwood Financial, Inc. (“Master Borrower”), the entities
identified on Schedule “A” attached hereto (together with the Master Borrower,
the “Borrowers”), Orleans Homebuilders, Inc. (the “Guarantor”, and
together with the Borrowers, the “Obligors”), the Lenders that are parties
hereto (the “Lenders”), and Wachovia Bank, National Association, as Agent for
the Lenders (“Agent”), and amended by a First Amendment to Amended and Restated
Revolving Credit Loan Agreement dated as of November 1, 2006, a Second
Amendment to Amended and Restated Revolving Credit Loan Agreement executed as
of February 7, 2007, a Third Amendment to Amended and Restated Revolving
Credit Loan Agreement executed as of May 8, 2007, a Fourth Amendment to
Amended and Restated Revolving Credit Loan Agreement executed as of September 6,
2007, and a Fifth Amendment to Amended and Restated Revolving Credit Loan
Agreement executed  as of December 21,
2007 (as so amended, the “Agreement”).

 

Dear Mr. Herdler:

 

Please refer to the
Agreement.  Please also refer to that
certain letter dated May 9, 2008 from the undersigned to you (the “Waiver
Letter”). Capitalized terms not otherwise defined herein shall have the
meanings ascribed to such terms in the Agreement or the Waiver Letter, as the
case may be. This letter shall be referred to as the Extension Letter.

 

1.             Amendment to Waiver Letter.
Section 2 of the Waiver Letter is amended and restated in its entirety as
follows:

 

Section 2.              Limited
Waiver.  Subject to the terms and conditions
set forth herein, the Agent and the Lenders waive compliance with the Subject
Covenants, and non-compliance with the Subject Covenants shall not constitute
an Event of Default, at all times from the period from and including January 1,
2008 through and excluding the earlier of (a) the date of the occurrence
of any other Event of Default (that is, any Event of Default caused by or
resulting from something other than the above stated non- compliance with one
or more of the Subject Covenants) under the Agreement or under any of the other
Loan Documents; and (b) September 30, 2008 (such period being the “Waiver
Period”); provided that if (i) Guarantor’s Consolidated Tangible Net Worth
is on any date during the Waiver Period less than $90,000,000, or (ii) as
of the last day of any Fiscal Quarter during the Waiver Period, Guarantor’s
Leverage Ratio exceeds 5.25 to 1.00, the Waiver Period shall end as of such
date.  If the actual reserve allowance
taken

 

 

by the Guarantor, as reported in the Guarantor’s filed March 31,
2008 10-Q Statement, is less than $43,500,000, or if the reserve is adjusted
because of legislation or otherwise during the Waiver Period,  then: (x) the Consolidated Tangible Net
Worth covenant set forth in clause (i) above shall be increased on a
dollar-for-dollar basis to account for the difference between $43,500,000 and
the actual reserve allowance amount and (y) the Leverage Ratio covenant
set forth in clause (ii) above shall be decreased by .01 for each $348,000
decrease in the reserve allowance below $43,500,000 (the “Limited Waiver”). At
the end of the Waiver Period, the Limited Waiver shall terminate and the non-   compliance with the Subject Covenants shall,
effective as of the end of the Waiver Period, constitute Events of Default under
Article IX under the Agreement without further notice or an opportunity to
cure.  Section 8.5 [Ownership of
Land] of the Agreement shall not be applicable or tested during the Waiver
Period.

 

2.                                       Reaffirmation. Except as
amended by the foregoing section, all terms and provisions of the Waiver Letter
are hereby reaffirmed, ratified and confirmed.

 

3.                                       Release.  Each of the Obligors, on behalf of itself and any
person or entity claiming by, under or through it, hereby unconditionally
remises, releases and forever discharges the Agent and the Lenders, and their
respective past and present officers, directors, shareholders, agents, parent
corporation, members, subsidiaries, affiliates, trustees, administrators,
attorneys, predecessors, and successors and assigns, of and from any and all
manner of actions, causes of action, suits, debts, dues, accounts, claims,
counterclaims, crossclaims, defenses and/or demands whatsoever, including
claims for contribution and/or indemnity, whether now known or unknown, past or
present, asserted or unasserted, contingent or liquidated, at law or in equity,
or resulting from any assignment, if any, which any of the Obligors ever had,
now have, or may have against the Agent or the Lenders, for or by reason of any
cause, matter or thing whatsoever, arising from the beginning of time to the
date of execution of this Extension Letter relating to or arising from the
Agreement, the Loan Documents, and the lending or any other banking
relationship between any of the Obligors and the Agent and the Lenders.

 

3                                          No
Impairment.  Nothing
contained in this Extension Letter shall serve as a waiver of any right of the
Agent or the Lenders, a waiver or cure of any defaults under the Agreement of
the other Loan Documents, a modification or novation of the Obligations or the
documentation therefor, or an agreement or commitment by the Agent or the
Lenders to extend or otherwise modify the Obligations.

 

4.                                       Miscellaneous.

 

a.             Headings. 
The headings and underscoring of articles, sections and clauses have
been included herein for convenience only and shall not be considered in
interpreting this Extension Letter.

 

b.             Governing Law. 
This Extension Letter shall be construed in accordance with and governed
by the internal laws of the Commonwealth of Pennsylvania.

 

c.             Integration. 
This Extension Letter constitutes the sole agreement of the parties with
respect to the subject matter hereof and thereof and supersedes all oral
negotiations and prior writings with respect to the subject matter hereof and
thereof.

 

2

 

d.             Severability of Provisions.  Any provision of this Extension Letter that
is held to be inoperative, unenforceable, void or invalid in any jurisdiction
shall, as to that jurisdiction, be ineffective, unenforceable, void or invalid
without affecting the remaining provisions in that jurisdiction or the
operation, enforceability or validity of that provision in any other
jurisdiction, and to this end the provisions of this Waiver Letter are declared
to be severable.

 

e.             No Third-Party Beneficiaries.  Notwithstanding anything to the contrary
contained herein, no provision of this Extension Letter is intended to benefit
any party other than the signatories hereto nor shall any such provision be
enforceable by any other party.

 

f.              Counterparts. 
This Extension Letter may be executed in any number of counterparts and
by the different parties on separate counterparts and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute one and the same Extension Letter.

 

[Signature
Pages Follow]

 

3

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
  Wachovia Bank, National
  Association

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nathan R. Rantala

  
	
   

  	
   

  	
  Nathan R. Rantala

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCEPTED AND AGREED TO:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Master Borrower:

  	
  Greenwood
  Financial, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence J. Dugan

  
	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Corporate Borrowers:

  	
  OHB Homes, Inc.

  
	
   

  	
  Orleans Corporation

  
	
   

  	
  Orleans Corporation of New
  Jersey

  
	
   

  	
  Orleans Construction Corp.

  
	
   

  	
  Parker &
  Lancaster Corporation

  
	
   

  	
  Parker & Orleans
  Homebuilders, Inc.

  
	
   

  	
  Sharp Road
  Farms, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence J. Dugan

  
	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
  Vice President

  

 

[Borrowers’
signatures continued on the following page]

 

4

 

Limited Liability Company

Borrowers:

 

	
   

  	
  Masterpiece Homes, LLC

  
	
   

  	
  OPCNC, LLC

  
	
   

  	
  Orleans at Bordentown, LLC

  
	
   

  	
  Orleans at Cooks Bridge,
  LLC

  
	
   

  	
  Orleans at Covington
  Manor, LLC

  
	
   

  	
  Orleans at Crofton Chase,
  LLC

  
	
   

  	
  Orleans at East Greenwich,
  LLC

  
	
   

  	
  Orleans at Elk Township,
  LLC

  
	
   

  	
  Orleans at Evesham, LLC

  
	
   

  	
  Orleans at Hamilton, LLC

  
	
   

  	
  Orleans at Harrison, LLC

  
	
   

  	
  Orleans at Hidden Creek,
  LLC

  
	
   

  	
  Orleans at Jennings Mill,
  LLC

  
	
   

  	
  Orleans at Lambertville,
  LLC

  
	
   

  	
  Orleans at Lyons Gate, LLC

  
	
   

  	
  Orleans at Mansfield, LLC

  
	
   

  	
  Orleans at Maple Glen, LLC

  
	
   

  	
  Orleans at Meadow Glen,
  LLC

  
	
   

  	
  Orleans at Millstone, LLC

  
	
   

  	
  Orleans at Millstone River
  Preserve, LLC

  
	
   

  	
  Orleans at Moorestown, LLC

  
	
   

  	
  Orleans at Tabernacle, LLC

  
	
   

  	
  Orleans at Upper Freehold,
  LLC

  
	
   

  	
  Orleans at Wallkill, LLC
  (f/k/a Kabro of Middletown, LLC)

  
	
   

  	
  Orleans at Westampton
  Woods, LLC

  
	
   

  	
  Orleans at Woolwich, LLC

  
	
   

  	
  Orleans Arizona Realty,
  LLC (f/k/a Orleans at King Ranch, LLC)

  
	
   

  	
  Orleans DK, LLC

  
	
   

  	
  Parker Lancaster,
  Tidewater, LLC

  
	
   

  	
  Wheatley Meadows
  Associates, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Lawrence J. Dugan

  
	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
  Vice President

  

 

[Borrowers’
signatures continued on the following page]

 

5

 

	
  Limited Partnership

  	
   

  
	
  Borrowers:

  	
  Brookshire Estates, L.P.
  (f/k/a Orleans at Brookshire Estates, L.P.)

  
	
   

  	
  Orleans at Falls, LP

  
	
   

  	
  Orleans at Limerick, LP

  
	
   

  	
  Orleans at Lower Salford,
  LP

  
	
   

  	
  Orleans at Thornbury, LP

  
	
   

  	
  Orleans at Upper Saucon,
  L.P.

  
	
   

  	
  Orleans at Upper Uwchlan,
  LP

  
	
   

  	
  Orleans at West Bradford,
  LP

  
	
   

  	
  Orleans at West Vincent,
  LP

  
	
   

  	
  Orleans at Windsor Square,
  LP

  
	
   

  	
  Orleans at Wrightstown, LP

  
	
   

  	
  Stock Grange, LP

  
	
   

  	
  By:

  	
  OHI PA GP, LLC, sole
  General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Lawrence J. Dugan

  
	
   

  	
   

  	
   

  	
  Lawrence J. Dugan

  
	
   

  	
   

  	
   

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  Orleans RHIL, LP

  
	
   

  	
  Realen Homes, L.P.

  
	
   

  	
  By:

  	
  RHGP, LLC, sole General
  Partner

  
	
   

  	
   

  	
  By:

  	
  Orleans
  Homebuilders, Inc.,

  
	
   

  	
   

  	
   

  	
  Authorized Member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Garry P. Herdler

  
	
   

  	
   

  	
   

  	
   

  	
  Garry P. Herdler,
  Executive

  
	
   

  	
   

  	
   

  	
   

  	
  Vice President &

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  
	
  Guarantor:

  	
  Orleans
  Homebuilders, Inc., a Delaware corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Garry P. Herdler

  
	
   

  	
   

  	
  Garry P. Herdler,
  Executive

  
	
   

  	
   

  	
  Vice President &

  
	
   

  	
   

  	
  Chief Financial Officer

  
						

 

6

 

	
   

  	
  LENDER SIGNATURE PAGE TO

  
	
   

  	
  EXTENSION LETTER WITH
  GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS
  MASTER BORROWER,

  
	
   

  	
  DATED AS OF SEPTEMBER
  15, 2008:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK,

  
	
   

  	
  NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Nathan R. Rantala

  
	
   

  	
   

  	
  Nathan R. Rantala,
  Director

  

 

7

 

	
   

  	
  LENDER SIGNATURE PAGE TO

  
	
   

  	
  EXTENSION LETTER WITH
  GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS
  MASTER BORROWER,

  
	
   

  	
  DATED AS OF SEPTEMBER
  15, 2008:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean Finnegan

  
	
   

  	
   

  	
  Name: Sean Finnegan

  
	
   

  	
   

  	
  Title:  SVP

  

 

8

 

	
   

  	
  LENDER SIGNATURE PAGE TO

  
	
   

  	
  EXTENSION LETTER WITH
  GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS
  MASTER BORROWER,

  
	
   

  	
  DATED AS OF SEPTEMBER
  15, 2008:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ernest J. Kociban

  
	
   

  	
   

  	
  Name: Ernest J. Kociban

  
	
   

  	
   

  	
  Title:SR. V.P.

  

 

9

 

	
   

  	
  LENDER SIGNATURE PAGE TO

  
	
   

  	
  EXTENSION LETTER WITH
  GREENWOOD

  
	
   

  	
  FINANCIAL, INC. AS
  MASTER BORROWER,

  
	
   

  	
  DATED AS OF SEPTEMBER
  15, 2008:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MANUFACTURERS AND TRADERS TRUST

  
	
   

  	
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bernard T. Shields

  
	
   

  	
   

  	
  Name: Bernard T. Shields

  
	
   

  	
   

  	
  Title:  Vice President

  

 

10

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NATIONAL CITY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

11

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FIRSTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Eric Paul

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Eric Paul

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

12

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GUARANTY BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Linda Garcia

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Linda Garcia

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  

 

13

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CITIZENS BANK OF PENNSYLVANIA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Bruce G. Shearer

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Bruce G. Shearer

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

14

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMMERCE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Robert E. Delancy

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Robert E. Delancy

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

15

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SUNTRUST BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Lauren P. Carrigan

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Lauren P. Carrigan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

16

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  REGIONS BANK, successor by merger to

  
	
   

  	
   

  	
  Amsouth Bank

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Daniel Mcclurkin

  
	
   

  	
   

  	
   

  	
  Name:

  	
  DANIEL MCCLURKIN

  
	
   

  	
   

  	
   

  	
  Title:

  	
  ASSISTANT VICE PRESIDENT

  

 

17

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FRANKLIN BANK, SSB

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Virgil J. Haplea

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Virgil J. Haplea

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Executive Vice President

  

 

18

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMERICA BANK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ David J. Campbell 

  
	
   

  	
   

  	
   

  	
  Name:

  	
  DAVID J. CAMPBELL 

  
	
   

  	
   

  	
   

  	
  Title:

  	
  SENIOR VICE PRESIDENT

  

 

19

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  COMPASS BANK, an Alabama Banking
  Corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Johanna Duke Paley

  
	
   

  	
   

  	
   

  	
  Name:

  	
  JOHANNA DUKE PALEY

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Senior Vice President

  

 

20

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  

 

21

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LaSALLE BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Sean Finnegan

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Sean Finnegan

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Sr. Vice President

  

 

22

 

	
   

  	
   

  	
  LENDER SIGNATURE PAGE TO

  EXTENSION LETTER WITH GREENWOOD

  FINANCIAL, INC. AS MASTER BORROWER,

  DATED AS OF SEPTEMBER 15, 2008:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DEUTSCHE BANK TRUST COMPANY 

  
	
   

  	
   

  	
  AMERICAS

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Keith C. Braun

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Keith C. Braun

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Dusan Lazarov

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Dusan Lazarov

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

23

 

Schedule A 
-  Schedule of Borrowers

 

	
  Master:

  	
   

  	
  Greenwood
  Financial, Inc.

  
	
   

  	
   

  	
   

  
	
  Corporate:

  	
   

  	
   

  
	
   

  	
   

  	
  Masterpiece Homes, Inc.

  
	
   

  	
   

  	
  OHB Homes, Inc.

  
	
   

  	
   

  	
  Orleans Corporation

  
	
   

  	
   

  	
  Orleans Corporation of New
  Jersey

  
	
   

  	
   

  	
  Orleans Construction Corp.

  
	
   

  	
   

  	
  Parker & Lancaster
  Corporation

  
	
   

  	
   

  	
  Parker & Orleans
  Homebuilders, Inc.

  
	
   

  	
   

  	
  Sharp Road Farms, Inc.

  
	
   

  	
   

  	
   

  
	
  Limited Liability
  Companies:

  	
   

  	
   

  
	
   

  	
   

  	
  OPCNC,
  LLC

  
	
   

  	
   

  	
  Orleans
  at Bordentown, LLC

  
	
   

  	
   

  	
  Orleans
  at Cooks Bridge, LLC

  
	
   

  	
   

  	
  Orleans
  at Covington Manor, LLC

  
	
   

  	
   

  	
  Orleans
  at Crofton Chase, LLC

  
	
   

  	
   

  	
  Orleans
  at East Greenwich, LLC

  
	
   

  	
   

  	
  Orleans
  at Elk Township, LLC

  
	
   

  	
   

  	
  Orleans
  at Evesham, LLC

  
	
   

  	
   

  	
  Orleans
  at Hamilton, LLC

  
	
   

  	
   

  	
  Orleans
  at Harrison, LLC

  
	
   

  	
   

  	
  Orleans
  at Hidden Creek, LLC

  
	
   

  	
   

  	
  Orleans
  at Jennings Mill, LLC

  
	
   

  	
   

  	
  Orleans
  at Lambertville, LLC

  
	
   

  	
   

  	
  Orleans
  at Lyons Gate, LLC

  
	
   

  	
   

  	
  Orleans
  at Mansfield, LLC

  
	
   

  	
   

  	
  Orleans
  at Maple Glen, LLC

  
	
   

  	
   

  	
  Orleans
  at Meadow Glen, LLC

  
	
   

  	
   

  	
  Orleans
  at Millstone, LLC

  
	
   

  	
   

  	
  Orleans
  at Millstone River Preserve, LLC

  
	
   

  	
   

  	
  Orleans
  at Moorestown, LLC

  
	
   

  	
   

  	
  Orleans
  at Tabernacle, LLC

  
	
   

  	
   

  	
  Orleans
  at Upper Freehold, LLC

  
	
   

  	
   

  	
  Orleans
  at Wallkill, LLC (f/k/a Kabro of Middletown, LLC)

  

 

(Schedule of Borrowers continued on the following
page)

 

24

 

	
   

  	
   

  	
  Orleans
  at Westampton Woods, LLC

  
	
   

  	
   

  	
  Orleans
  at Woolwich, LLC

  
	
   

  	
   

  	
  Orleans
  Arizona Realty, LLC (f/k/a Orleans at King Ranch, LLC)

  
	
   

  	
   

  	
  Orleans
  DK, LLC

  
	
   

  	
   

  	
  Parker
  Lancaster, Tidewater, LLC

  
	
   

  	
   

  	
  Wheatley
  Meadows Associates, LLC

  
	
   

  	
   

  	
   

  
	
  Limited Partnerships:

  	
   

  	
   

  
	
   

  	
   

  	
  Brookshire
  Estates, L.P.(f/k/a Orleans at Brookshire Estates, L.P.)

  
	
   

  	
   

  	
  Orleans
  at Falls, LP

  
	
   

  	
   

  	
  Orleans
  at Limerick, LP

  
	
   

  	
   

  	
  Orleans
  at Lower Salford, LP

  
	
   

  	
   

  	
  Orleans
  RHIL, LP

  
	
   

  	
   

  	
  Orleans
  at Thornbury, LP

  
	
   

  	
   

  	
  Orleans
  at Upper Saucon, L.P.

  
	
   

  	
   

  	
  Orleans
  at Upper Uwchlan, LP

  
	
   

  	
   

  	
  Orleans
  at West Bradford, LP

  
	
   

  	
   

  	
  Orleans
  at West Vincent, LP

  
	
   

  	
   

  	
  Orleans
  at Windsor Square, LP

  
	
   

  	
   

  	
  Orleans
  at Wrightstown, LP

  
	
   

  	
   

  	
  Realen
  Homes, L.P.

  
	
   

  	
   

  	
  Stock
  Grange, LP

  

 

25Exhibit 10.1

 

 

AMENDED AND
RESTATED EMPLOYMENT AGREEMENT

 

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the “Agreement”) entered into as of September 17,
2008, is between Lipid Sciences, Inc., a Delaware corporation (the “Company”), and Jo-Ann Maltais, Ph.D. (“Executive”), who agree as follows.  The Company and Executive are hereinafter
collectively referred to as the “Parties,”
and may individually be referred to as a “Party.”

 

RECITALS

 

WHEREAS, the Company and Executive previously entered
into an Employment Agreement, dated as of August 25, 2000 (the “Existing Employment Agreement”), which
governs the terms and conditions of Executive’s compensation and employment
relationship with the Company, and Executive has been employed continuously
since then; and

 

WHEREAS, the Parties wish to revise and amend the
Existing Employment Agreement and to have this Agreement replace and supersede
in its entirety the Existing Employment Agreement.

 

NOW, THEREFORE, for good and sufficient consideration,
the Parties agree as follows:

 

AGREEMENT

 

1.                                       Employment.

 

1.1                                 The
Company will continue to employ Executive, and Executive hereby accepts such
continued employment by the Company, upon the terms and conditions set forth in
this Agreement, commencing effective as of August 25, 2008 except as
otherwise provided herein (the “Effective
Date”), and continuing until August 24, 2009 (the “Initial Term”); provided, however, that
immediately prior to the expiration of the Initial Term, and on each
anniversary thereafter (the date immediately prior to expiration of the Initial
Term and each subsequent anniversary, a “Renewal
Date”), the term of Executive’s employment under this Agreement will
be extended automatically until the following subsequent anniversary unless
either party elects not to renew this Agreement by serving notice of such
intention not to renew on the other party at least ninety days prior to the
expiration of a Renewal Date (the period commencing on the Effective Date and
ending on expiration of the Initial Term or such later date to which the term
of the Employee’s employment under this Agreement will have been extended, the “Term”).

 

1.2                                 Executive
will continue to serve as Vice President Scientific Affairs.  Executive will report to the President/CEO.

 

 

1.3                                 Executive
will do and perform all services, acts or things necessary or advisable to
manage and conduct the Scientific Affairs of the Company, provided, however,
that at all times during her employment Executive will be subject to the
direction of the President/CEO. 
Executive’s duties will include, but not be limited to, participation in
the creation and management of (1) the overall strategy of the Company’s
product development plan, (2) it’s clinical application platforms, (3) the
external product development process with outside vendors, (4) the Company’s
training programs, as well as the preparation of the annual budget for her
department, and assist in the Company’s areas of new business development,
regulatory affairs and clinical programs.

 

1.4                                 Unless
the Parties otherwise agree in writing, prior to Executive’s termination in
accordance with this Agreement, Executive will perform the services she is
required to perform in accordance with the terms of this Agreement, reporting
to the Company’s offices and the President/CEO.

 

2.                                       Loyal
and Conscientious Performance; Noncompetition.

 

2.1                                 During
her employment by the Company, Executive will devote her full business
employment, interest, abilities and productive time to the proper and efficient
performance of her duties under this Agreement. 
Executive may not be employed by another company or receive compensation
for employment from any other sources.

 

2.2                                 During
her employment by the Company, Executive may not engage in competition with the
Company, either directly or indirectly, in any manner or capacity, as adviser,
principal, agent, partner, officer, director, employee, member of any
association or otherwise, in any phase of the business of developing,
manufacturing and marketing of products that are in the same field of use or
which otherwise directly compete with the products or proposed products of the
Company.

 

3.                                       Compensation
of Executive.

 

3.1                                 Effective
as of January 1, 2008, the Company will pay Executive a base salary of Two
Hundred Thousand Eight Hundred Dollars ($200,800) per year (the “Base Salary”), payable in accordance with
the Company’s payroll practices as are in effect from time to time.  The Base Salary will be prorated for any
partial year of employment on the basis of a 365-day fiscal year.

 

3.2                                 Executive’s
Base Salary may be changed from time to time by mutual agreement of Executive,
the CEO and Board of Directors.

 

3.3                                 All
of Executive’s compensation is subject to customary withholding taxes and any
other employment taxes as are commonly required to be collected or withheld by
the Company.

 

3.4                                 Executive
will, in the discretion of the Board and in accordance with Company policy, be
entitled to participate in benefits under any employee benefit plan or
arrangement made available by the Company now or in the future to its
executives and key management employees.

 

2

 

3.5                                 Executive’s
performance will be reviewed by the CEO on a periodic basis (not less than once
each fiscal year).  The CEO with approval
of the Board may, in their sole discretion, award bonuses to Executive as will
be appropriate or desirable based on Executive’s performance.

 

3.6                                 Executive
is entitled to receive prompt reimbursement of all reasonable expenses incurred
by Executive in performing Company services, including expenses related to
travel, entertainment, parking, and business meetings.  These expenses will be accounted for in
accordance with the policies and procedures established by the Company.

 

4.                                       Termination:
Either party may terminate this Agreement and Executive’s employment without
cause, upon thirty (30) days written notice. 
Upon termination, the Company will be released from any and all
obligations under this Agreement, except in the event the Executive’s employment
is involuntarily terminated by the Company for other than “good cause,” then
Executive will resign from all positions with the Company and be entitled to (i) payment
of her Base Salary accrued up to and including the date of such termination, (ii) payment
of any unreimbursed expenses, and (iii) severance, subject to both
Executive’s execution and delivery of a release in the form then deemed
appropriate by the Company, and, if requested by the Company at the time of the
termination, the Executive’s agreement to provide consulting services during
the Severance Period (as hereinafter defined) for no additional compensation,
of continuation of the Base Salary and benefits, at the rate in effect on the
date of the termination, for a period of nine (9) months commencing on the
date next following the date of the termination (the “Severance Period”).  However, if Executive obtains new full time
employment during such nine (9) month period, any salary paid pursuant to
such arrangement will be offset from amounts due under this Letter
Agreement.  Executive’s obligations under
Paragraph 5 of this Agreement will continue beyond her termination of
employment.

 

5.                                       Confidential
Information; Nonsolicitation.

 

5.1                                 Executive
recognizes that her employment with the Company will involve contact with
information of substantial value to the Company, which is not old and generally
known in the trade, and which gives the Company an advantage over its
competitors who do not know or use it, including but not limited to, techniques,
designs, drawings, processes, inventions, developments, equipment, prototypes,
sales and customer information, and business and financial information relating
to the business, products, practices and techniques of the Company (hereinafter
referred to as “Confidential Information”).  Executive will at all times regard and
preserve as confidential such Confidential Information obtained by Executive
from whatever source and will not, either during her employment with the
Company or thereafter, publish or disclose any part of such Confidential
Information in any manner at any time, or use the same except on behalf of the
Company, without the prior written consent of the Company; provided, however,
that Executive may disclose Confidential Information in the best interest of
the Company with properly executed Company confidentiality or secrecy
agreements with the third party. 
Executive agrees to abide by her continuing obligations under both the
Employee Confidential Information and Inventions Agreement dated August 25,
2000 and the Confidential Disclosure Agreement dated as of July 31, 2000,
between Executive and the Company (the “Confidential
Information Agreements”).

 

3

 

5.2                                 While
employed by the Company and for one (1) year thereafter, in order to
protect the Confidential Information from unauthorized use, Executive may not,
either directly or through others, (i) solicit or attempt to solicit any
employee, consultant or independent contractor of the Company to terminate his
or her relationship with the Company in order to become an employee, consultant
or independent contractor to or for any other person or business entity; or (ii) solicit
or attempt to solicit the business of any customer, vendor or distributor of
the Company which, at the time of termination or one (1) year immediately
prior thereto, was listed on the Company’s customer, vendor or distributor
list.

 

6.                                       Successors.  The Company will require any successor
(whether direct or indirect, by purchase, merger, or consolidation) to all or
substantially all of the business and/or assets of the Company, by agreement in
form and substance reasonably satisfactory to the Executive, to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place.

 

7.                                       Assignment
and Binding Effect.  This Agreement
is binding on and inures to the benefit of Executive and Executive’s heirs,
executors, personal representatives, assigns, administrators and legal
representatives.  Because of the unique
and personal nature of Executive’s duties under this Agreement, neither this
Agreement nor any rights or obligations under this Agreement are assignable by
Executive.  This Agreement is binding on
and inures to the benefit of the Company and its successors, assigns and legal
representatives.

 

8.                                       No
Other Severance Benefits.  Except as
specifically set forth in this Agreement, Executive covenants and agrees that
she will not be entitled to any other form of severance benefits from the
Company, including, without limitation, benefits otherwise payable under the
Company’s regular severance policies, if any, in the event her employment
hereunder ends for any reason and, except with respect to obligations of the
Company expressly provided for herein. 
In consideration for the Company’s payment of the severance benefits set
forth in this Agreement, Executive agrees to execute a Separation and Release
Agreement which waives Executive’s right to file a lawsuit alleging breach of
contract, discrimination and any tort claims.

 

9.                                       Notices.  All notices or demands of any kind required
or permitted to be given by the Company or Executive under this Agreement will
be given in writing and will be personally delivered (and receipted for) or
mailed by certified mail, return receipt requested, postage prepaid.

 

10.                                 Choice
of Law.  This Agreement will be
construed and interpreted in accordance with the laws of the State of
California, without regard to the conflict of laws provision thereof.

 

11.                                 Integration.  This Agreement and the Confidential
Information Agreements contain the complete, final and exclusive agreement of
the Parties relating to the subject matter of this Agreement and the Confidential
Information Agreements, respectively, and supersede all prior oral and written
employment agreements or arrangements between the Parties, including without
limitation, the Existing Employment Agreement, except with respect to the
obligations relating to the Confidential Information Agreements.

 

4

 

12.                                 Amendment.  This Agreement may not be amended or modified
except by a written agreement signed by Executive and the Company.

 

13.                                 Waiver.  No term, covenant or condition of this
Agreement or any breach thereof will be deemed waived, except with the written
consent of the Party against whom the wavier in claimed, and any waiver or any
such term, covenant, condition or breach will not be deemed to be a waiver of
any preceding or succeeding breach of the same or any other term, covenant,
condition or breach.

 

14.                                 Severability.  The finding by a court of competent
jurisdiction of the unenforceability, invalidity or illegality of any provision
of this Agreement will not render any other provision of this Agreement
unenforceable, invalid or illegal.  Such
court will have the authority to modify or replace the invalid or unenforceable
term or provision with a valid and enforceable term or provision which most
accurately represents the parties’ intention with respect to the invalid or
unenforceable term or provision.

 

15.                                 Interpretation;
Construction.  The headings set forth
in this Agreement are for convenience of reference only and will not be used in
interpreting this Agreement.  Executive
has been encouraged, and has consulted with, her own independent counsel and
tax advisors with respect to the terms of this Agreement.  The Parties acknowledge that each Party and
its counsel has reviewed and revised, or had an opportunity to review and
revise, this Agreement, and the normal rule of construction to the effect
that any ambiguities are to be resolved against the drafting party will not be
employed in the interpretation of this Agreement.

 

16.                                 Representations
and Warranties.  Executive represents
and warrants that, to the best of Executive’s knowledge, she is not restricted
or prohibited, contractually or otherwise, from entering into and performing
each of the terms and covenants contained in this Agreement, and that her
execution and performance of this Agreement will not violate or breach any
other agreements between Executive and any other person or entity.

 

17.                                 Counterparts.  This Agreement may be executed in two
counterparts, each of which will be deemed an original, all of which together
will contribute one and the same instrument.

 

18.                                 Arbitration.  If any dispute arises regarding the
application, interpretation, or enforcement of this Agreement, including fraud
in the inducement, the dispute will be resolved by final and binding
arbitration before one arbitrator at the Judicial Arbitration and Mediation
Service in Pleasanton, California.  The
decision of the arbitrator will be written, will state the essential findings
and conclusions on which the award is based, and will be final and may not be
appealed by either of the Parties.  Each
party will have a reasonable opportunity to conduct adequate discovery and
Executive will not be required to bear any type of expense that Executive would
not be required to bear if Executive were bringing a lawsuit in place of
arbitration.

 

19.                                 Attorneys’
Fees and Costs.  The prevailing party
in any dispute arising out of this Agreement, will be entitled to reimbursement
by the losing party of all of its or her attorneys’ fees and costs including,
but not limited to, arbitrator’s fees and expert’s fees.

 

5

 

IN WITNESS WHEREOF, the
Parties have executed this Agreement as of the date first above written.

 

	
  COMPANY:

  	
  LIPID
  SCIENCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ S. Lewis
  Meyer, Ph.D.

  
	
   

  	
   

  	
  S. Lewis Meyer,
  Ph.D.

  
	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EXECUTIVE:

  	
  By:

  	
  /s/ Jo-Ann B.
  Maltais, Ph.D.

  
	
   

  	
   

  	
  Jo-Ann B.
  Maltais, Ph.D.

  

 

6

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