Exhibit 10.4

 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT

 

      THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT (the "Amendment") amends the
Employment Agreement (the "Agreement") entered into as of January 31, 2005, by
and between Pennichuck Corporation (the "Corporation"), a New Hampshire
corporation with principal offices at 25 Manchester St., Merrimack, New
Hampshire and Michael C.J. Fallon ("Executive"), of 11 Main St., Hancock, New
Hampshire.

 

      WHEREAS, the Corporation and Executive desire to amend the Agreement in
accordance with the terms and conditions hereinafter set forth;

 

      NOW, THEREFORE, in consideration of the mutual covenants herein contained,
the continued employment of the Executive, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Corporation and Executive hereby amend the Agreement as follows:

   

      1.    Term. Section 3.1 of the Agreement is hereby amended by adding the
following text to the end of the Section:

       

"Notwithstanding the foregoing, in the event there is a "Change of Control" (as
that term is defined in Section 7.4 below), the Term of this Agreement will
automatically be extended to 2 years, beginning on the day on which the Change
of Control occurs. Thereafter, this Agreement will be extended only by vote of
the Board of Directors as described above."

       

      2.    Good Reason. Section 7.3 of the Agreement is replaced in its
entirety with the following provision:

         

"7.3.    For purposes hereof, "Good Reason" means (i) the assignment to the
Executive of duties or responsibilities inconsistent with the position and
office held by the Executive immediately prior to such assignment; (ii) the
substantial reduction in or loss of authority and responsibility, which
authority and responsibility the Executive was empowered with immediately prior
to such reduction or loss; or (iii) the requirement that the Executive be
assigned to or based at, without his consent, any office or location other than
one within a 30-mile radius of the Corporation's Merrimack, New Hampshire
office."

       

      3.    Change of Control. Section 7.4(iv) of the Agreement is hereby
amended by deleting the following text:

         

"; provided however, that the sale, whether voluntary or pursuant to the
exercise of the power of eminent domain, of one or more of the Corporation's
water utility subsidiaries, or the related assets thereof, arising from or
related to the ongoing municipalization efforts of the City of Nashua and/or
affected New Hampshire

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municipalities, shall not constitute the occurrence of a Change of Control under
this Agreement"

       

      5.    Ratification. Except as provided herein, the Agreement shall remain
in full force and effect.

     

      THIS FIRST AMENDMENT TO EMPLOYMENT AGREEMENT is executed as of the 18th
Day of August, 2006 by:

     

WITNESS

 

CORPORATION:

   

Pennichuck Corporation

     

/s/

By:

/s/ Hannah M. McCarthy

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Print Name

 

Hannah M. McCarthy, CEO

     

WITNESS

 

EXECUTIVE:

     

/s/

 

/s/ Michael C.J. Fallon

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--------------------------------------------------------------------------------

Print Name

 

Michael C.J. Fallon

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