Document:

Exhibit 10.37

 

CHANGE IN CONTROL
SEVERANCE AGREEMENT

 

THIS CHANGE IN CONTROL
SEVERANCE AGREEMENT (the “Agreement”) is entered into as of August 15,
2008, by and among Noble Environmental Power, LLC, a Delaware limited liability
company (“Noble”) and Neil P. Dyment  (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
or her 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 or her 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 or her
duties as an employee of Noble or in the course of his or her 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 or her 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; 

 

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(2) the sale or transfer of all or
substantially all of the assets of Noble to another 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)           “Good Reason” shall mean the
occurrence of either of the following:  (1) a
material and adverse reduction, after the Change in Control, in the nature or
scope of the authority or title held by the Executive, or duties assigned to
the Executive, immediately prior to the Change in Control; or (2) the
relocation of Executive’s principal place of employment, after the Change in
Control, more than fifty (50) miles from its location on the effective date of
this Agreement.

 

Notwithstanding anything in the foregoing to
the contrary, Executive may terminate his or her 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.

 

(e)           “Noble Company” shall mean
Noble or any direct or indirect subsidiary of Noble.

 

2.             Effectiveness
of Agreement; Term.

 

(a)           The term of this Agreement shall
commence on the date that Noble completes a Qualified IPO, and shall end on the
first anniversary of a Change in Control. 
For purposes of this Section 2, a “Qualified IPO” shall have the
meaning ascribed to such term in the Fifth Amended and Restated Limited
Liability Company Operating Agreement, dated as of August 15, 2008, of Noble
Environmental Power, LLC, as amended from time to time (the “Fifth Amended
and Restated LLC Agreement”).

 

(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.

 

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3.             Severance
Benefits.  In the event Noble terminates the
Executive without Cause, or the Executive terminates his or her 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
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 or her obligations under this Agreement, Noble will provide Executive
with the following payments:

 

(i)            A cash amount equal to six (6) months
of the Executive’s annual base salary 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 six (6) month
period following the date of Executive’s termination of employment (the “Salary
Continuation”).

 

(ii)           Reimbursement (or direct payment to
the carrier) for six (6) months following the Executive’s termination of
employment (the “Continuation Period”), for a portion of the premium
costs incurred by Executive (and his or her 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:  (1) any portion of the Salary
Continuation 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; (2) the Executive shall not be entitled
to any Salary Continuation unless the Executive’s termination of employment
constitutes a “separation from service” within the meaning of Treasury
Regulation Section 1.409A-1(h); and (3) each payment of 

 

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Salary Continuation is intended to constitute
a separate payment from each other payment of Salary Continuation 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 or
her acceptance of such offer of employment. 
For the purposes of this Section 4(b), the Executive shall notify
Noble of his or her 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 or her 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 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 and 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 or her employment for Cause; (B) he or she resigns without
Good Reason; or (C) he or she dies or his or her employment terminates due
to Disability.  For purposes of this
Agreement, “Disability” shall refer to Executive’s physical or mental
disability preventing him or her from carrying out substantially all of his or
her duties as an executive of Noble 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.

 

6.             Exclusive
Remedy.  The parties agree that, except as set forth
in Section 3, or under the terms of any severance arrangement between the
Company and the Executive, as may be established from time to time, or as
determined by the terms of any employee benefit plan in which the Executive was
participating as of his or her termination of employment, or in the Fifth 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, Executive will not be entitled to receive any compensation or benefits
after termination of his or her 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 

 

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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
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 or she will not, at
any time during his or her employment with Noble or thereafter, directly,
indirectly or otherwise, use, disseminate, disclose or publish, or use for his
or her 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 or she 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 

 

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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 or her
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 that has been or is hereafter made public through no act or
omission of the Executive in violation of this Agreement or any other
confidentiality obligation or duty owed to Noble or the Noble Companies and
through no act or omission of any other person which, to the knowledge of the
Executive, has any legally binding confidentiality obligation or duty to Noble
or the Noble Companies; (3) disclosing information and documents to his or
her attorney or tax adviser for the purpose of securing legal or tax advice; (4) disclosing
the post-employment restrictions in this Agreement in confidence to any
potential new employer; or (5) retaining, at any time, his or her personal
correspondence, personal rolodex and documents related to his or her 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 13(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 

 

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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 or her
attorney-in-fact to execute on his or her 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.

 

10.           Non-Competition
and Non-Solicitation.

 

(a)           While Executive is employed by Noble,
and for a period of six (6) 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, 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 for a period of twelve (12) months following Executive’s termination
of employment for whatever reason (the “Non-Solicitation 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; provided that in no event
shall this 

 

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Section 10(b)(4) prohibit Executive
from engaging the services of well-established accounting, legal, consulting or
financial services firms.

 

11.           Non-Disparagement. 
The Executive agrees, while he or she 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.           Injunctive
Relief.  Executive acknowledges that a breach of the
covenants contained in Sections 8 through 11 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 11, 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.

 

13.           General
Provisions.

 

(a)           Interaction With Other Severance
Arrangements.  This Agreement, to the extent that it is in
effect, and not any other severance arrangement between the Company and the
Executive, as may be established from time to time, 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
and the Health Care Continuation) pursuant to this Agreement, Executive shall
not be entitled to receive any payments under any other severance arrangement
between the Company and the Executive, as may be established from time to time.

 

(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:

 

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If to Noble:

 

Noble Environmental Power, LLC

8 Railroad Avenue, Suite 8

Essex, Connecticut 06426

Attention: Chief Financial Officer

WITH A COPY TO:

General Counsel

 

If to Executive:

 

Neil P. Dyment

PO Box 309

Warner, New Hampshire 03278

 

(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 or her obligations under this Agreement are
  personal in nature and, without the consent of Noble, he or she may not
  assign, transfer, or delegate this Agreement or any rights or obligations
  hereunder, provided, that
  upon Executive’s death, Executive may assign his or her rights hereunder to
  Executive’s estate or heirs.

  

 

(d)           Complete and Final Agreement. 
Executive agrees that this Agreement reflects the complete agreement
between Noble and Executive, and that there are no written or oral
understandings, promises or agreements related to this Agreement except those
contained herein.  This Agreement constitutes
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 intend that
no extrinsic evidence whatsoever may be introduced in any judicial,
administrative or other legal proceeding to vary the terms of this 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 

 

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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 or she has had
adequate opportunity to consult with legal or other counsel of his or her
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 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 

 

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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 11 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)           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 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.

 

11

 

[Signature page follows]

 

12

 

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

 

 

	
   

  	
   

  	
  NOBLE
  ENVIRONMENTAL POWER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Walter Q. Howard

  
	
   

  	
   

  	
   

  	
  Name: Walter Q. Howard

  
	
   

  	
   

  	
   

  	
  Title:   President and CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witnessed:

  	
  /s/ Linda D. Dyment

  	
   

  	
  /s/ Neil P. Dyment

  
	
  Name:

  	
  Linda D. Dyment

  	
   

  	
  Neil P. Dyment

  
						

 

13Exhibit
10.38

 

CHANGE IN CONTROL
SEVERANCE AGREEMENT

 

THIS CHANGE IN CONTROL
SEVERANCE AGREEMENT (the “Agreement”) is entered into as of August 15,
2008, by and among Noble Environmental Power, LLC, a Delaware limited liability
company (“Noble”) and Robert L. Fricchione  (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
or her 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 or her 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 or her
duties as an employee of Noble or in the course of his or her 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 or her 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;

 

1

 

(2) the sale or transfer of all or
substantially all of the assets of Noble to another 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)                                 “Good Reason” shall mean the
occurrence of either of the following:  (1) a
material and adverse reduction, after the Change in Control, in the nature or
scope of the authority or title held by the Executive, or duties assigned to
the Executive, immediately prior to the Change in Control; or (2) the
relocation of Executive’s principal place of employment, after the Change in
Control, more than fifty (50) miles from its location on the effective date of
this Agreement.

 

Notwithstanding anything in the foregoing to
the contrary, Executive may terminate his or her 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.

 

(e)                                  “Noble Company” shall mean
Noble or any direct or indirect subsidiary of Noble.

 

2.                                       Effectiveness
of Agreement; Term.

 

(a)                                  The term of this Agreement shall
commence on the date that Noble completes a Qualified IPO, and shall end on the
first anniversary of a Change in Control. 
For purposes of this Section 2, a “Qualified IPO” shall have the
meaning ascribed to such term in the Fifth Amended and Restated Limited
Liability Company Operating Agreement, dated as of August 15, 2008, of
Noble Environmental Power, LLC, as amended from time to time (the “Fifth
Amended and Restated LLC Agreement”).

 

(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.

 

2

 

3.                                       Severance
Benefits.  In the event Noble terminates the
Executive without Cause, or the Executive terminates his or her 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
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 or her obligations under this Agreement, Noble will provide Executive
with the following payments:

 

(i)                                    A cash amount equal to six (6) months
of the Executive’s annual base salary 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 six (6) month
period following the date of Executive’s termination of employment (the “Salary
Continuation”).

 

(ii)                                 Reimbursement (or direct payment to
the carrier) for six (6) months following the Executive’s termination of
employment (the “Continuation Period”), for a portion of the premium
costs incurred by Executive (and his or her 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:  (1) any portion of the Salary
Continuation 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; (2) the Executive shall not be entitled
to any Salary Continuation unless the Executive’s termination of employment
constitutes a “separation from service” within the meaning of Treasury
Regulation Section 1.409A-1(h); and (3) each payment of

 

3

 

Salary Continuation is intended to constitute
a separate payment from each other payment of Salary Continuation 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 or her acceptance of such
offer of employment.  For the purposes of
this Section 4(b), the Executive shall notify Noble of his or her
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 or her
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 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 and 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 or her employment for Cause; (B) he or she resigns without
Good Reason; or (C) he or she dies or his or her employment terminates due
to Disability.  For purposes of this
Agreement, “Disability” shall refer to Executive’s physical or mental
disability preventing him or her from carrying out substantially all of his or
her duties as an executive of Noble 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.

 

6.                                       Exclusive
Remedy.  The parties agree that, except as set forth
in Section 3, or under the terms of any severance arrangement between the
Company and the Executive, as may be established from time to time, or as
determined by the terms of any employee benefit plan in which the Executive was
participating as of his or her termination of employment, or in the Fifth 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, Executive will not be entitled to receive any compensation or benefits
after termination of his or her 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

 

4

 

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
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 or she will not, at
any time during his or her employment with Noble or thereafter, directly,
indirectly or otherwise, use, disseminate, disclose or publish, or use for his
or her 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 or she 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

 

5

 

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 or her
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 that has been or is hereafter made public through no act or
omission of the Executive in violation of this Agreement or any other
confidentiality obligation or duty owed to Noble or the Noble Companies and
through no act or omission of any other person which, to the knowledge of the
Executive, has any legally binding confidentiality obligation or duty to Noble
or the Noble Companies; (3) disclosing information and documents to his or
her attorney or tax adviser for the purpose of securing legal or tax advice; (4) disclosing
the post-employment restrictions in this Agreement in confidence to any
potential new employer; or (5) retaining, at any time, his or her personal
correspondence, personal rolodex and documents related to his or her 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 13(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

 

6

 

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 or her
attorney-in-fact to execute on his or her 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.

 

10.           Non-Competition and Non-Solicitation.

 

(a)           While Executive is employed by Noble, and for a period
of six (6) 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, 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 for a
period of twelve (12) months following Executive’s termination of employment
for whatever reason (the “Non-Solicitation 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; provided that in no event
shall this

 

7

 

Section 10(b)(4) prohibit Executive
from engaging the services of well-established accounting, legal, consulting or
financial services firms.

 

11.                                 Non-Disparagement. 
The Executive agrees, while he or she 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.                                 Injunctive
Relief.  Executive acknowledges that a breach of the
covenants contained in Sections 8 through 11 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 11, 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.

 

13.                                 General
Provisions.

 

(a)                                  Interaction With Other Severance
Arrangements.  This Agreement, to the extent that it is in
effect, and not any other severance arrangement between the Company and the
Executive, as may be established from time to time, 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
and the Health Care Continuation) pursuant to this Agreement, Executive shall
not be entitled to receive any payments under any other severance arrangement
between the Company and the Executive, as may be established from time to time.

 

(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:

 

8

 

If to Noble:

 

Noble Environmental Power, LLC

8 Railroad Avenue, Suite 8

Essex, Connecticut 06426

Attention: Chief Financial Officer

WITH A COPY TO:

General Counsel

 

If to Executive:

 

Robert L. Fricchione

38 Twinbrook Circle

Longmeadow, Massachusetts 01106

 

(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 or her obligations
under this Agreement are personal in nature and, without the consent of Noble,
he or she may not assign, transfer, or delegate this Agreement or any rights or
obligations hereunder, provided,
that upon Executive’s death, Executive may assign his or her rights hereunder
to Executive’s estate or heirs.

 

(d)                                 Complete and Final Agreement. 
Executive agrees that this Agreement reflects the complete agreement
between Noble and Executive, and that there are no written or oral
understandings, promises or agreements related to this Agreement except those
contained herein.  This Agreement constitutes
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 intend that
no extrinsic evidence whatsoever may be introduced in any judicial,
administrative or other legal proceeding to vary the terms of this 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

 

9

 

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 or she has had
adequate opportunity to consult with legal or other counsel of his or her
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 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

 

10

 

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 11 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)                                  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 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.

 

11

 

[Signature page follows]

 

12

 

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

 

 

	
   

  	
   

  	
  NOBLE ENVIRONMENTAL POWER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Walter Q. Howard

  
	
   

  	
   

  	
   

  	
  Name: Walter Q. Howard

  
	
   

  	
   

  	
   

  	
  Title:   President and
  CEO

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witnessed:

  	
  /s/ Rachel Panzica

  	
   

  	
  /s/ Robert L. Fricchione

  
	
  Name:

  	
  Rachel Panzica

  	
   

  	
  Robert L. Fricchione

  
						

 

13

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