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| 1. | PURPOSE.  The      purpose of this Plan is to align more closely the interests of the      non-employee directors (“Outside Directors”) of Maine & Maritimes      Corporation (“Company”) with the interests of the Company’s      shareholders.  Under the Plan, each Outside Director is to      receive a quarterly grant of Company stock, as part of his or her director      compensation for the precedingquarter. |
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| 2. | DEFINITIONS.  As      used in this Plan, the following capitalized words and phrases shall have      meanings specified, unless the context clearly indicates that a different      meaning is intended: |
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|   | (a) | “Board”      shall mean the Board of Directors of the  Company. |
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|   | (b) | “Company”      shall mean Maine & MaritimesCorporation. |
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|   | (c) | “Director”      or “Outside Director” shall mean a non-employee director of the      Company. |
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|   | (d) | “Plan”      shall mean the Maine & Maritimes Corporation Stock Plan for Outside      Directors. |
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|   | (e) | “Share”      shall mean a share of Common Stock of the  Company. |
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| 3. | QUARTERLY      GRANT OF SHARES.  As of the last day of March, June, September      and December of each year (each such date being a “grant date”), and      without further action by the Board or the shareholders, each Outside      Director shall receive a grant of 75 Shares having a value as determined      below.  Provided, however, that a person who became an Outside      Director after the first business day of the relevant quarter, or whose      service as an Outside Director terminated (due to retirement, resignation,      removal, employment by the Company, or otherwise) before the last business      day of the quarter, shall receive a reduced number of Shares, based on the      number of calendar days in office as an Outside Director divided by the      total number of calendar days in the quarter.  The Company shall      issue certificates for the granted Shares to each relevant Director within      30 days after the grant date. |
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| 4. | DETERMINATION      OF VALUE OF SHARES.  For purposes of the Plan, the per share      value of the Shares shall be determined as of the close of business on the      grant date and shall be deemed equal to the closing price of the Common      Stock on that date, as last reported on the American Stock Exchange or      such other national securities exchange on which the Common Stock is then      principally listed or admitted totrading. |
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| 5. | VESTING      AND TRANSFER OF SHARES.  Shares shall be deemed earned and fully      vested upon receipt.  Certificates for Shares may bear an      appropriate legend noting transfer restrictions, if any, under applicable      securities laws.  Transfer of the Shares may require compliance      with preclearance policies of the Company, or other applicable procedures      regarding transfer. |
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| 6. | SHARES      SUBJECT TO THE PLAN.  The total number of shares of Common Stock      available for delivery under the Plan shall be up to, but not exceeding,      20,000 shares of common stock of the Company, par value $7.00 per      share. |
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| 7. | TAX      WITHHOLDINGS.  The receipt of Shares will constitute income to      the Director under applicable income tax laws.  The Company may,      without limitation, offset other cash payments to the Director in order to      satisfy applicable withholding requirements in respect of each grant of      Shares. |
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| 8. | CONTINUED      SERVICE AS A DIRECTOR.  Neither the Plan nor any grant of Shares      shall limit or otherwise affect the right of the Board or the shareholders      to terminate the service of aDirector. |
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| 9. | INTERPRETATION,      AMENDMENT, AND TERMINATION.  The Board shall have authority to      interpret the Plan, and all such interpretations shall be binding on the      Company, the Directors, and the shareholders.  The Board shall      have authority to amend the Plan or terminate the Plan at any      time.  Except as the Board may otherwise determine, the Plan      shall terminate upon consummation of any merger in which the Company is      not the surviving corporation or upon consummation of a sale of all assets      of the Company. |
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| 10. | GOVERNING      LAW.  The Plan shall be governed by and construed in accordance      with the laws of the State ofMaine. |
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