**MMC      Energy, Inc.**

**26      Broadway, Suite **
**960**

**New      York, New York 10004**

| 1. | Your                last day of employment with the Company was December                18, 2007. You and the Company agree that your duties as Chief Executive                Officer ceased upon the Board of Directors of the Company removing                you                from such position on December 9, 2007, and that after December 18,                2007,                you no longer served as an officer of the Company, or any of its                subsidiaries, divisions, joint ventures or other affiliates. Moreover,                you                hereby confirm your resignations from any and all of your positions                as a                director of the Company, and any of its subsidiaries, divisions,                joint                ventures or other affiliates, effective as of the Payment Date (as                defined                in Paragraph 2 below), and                agree that (a) you shall take such further actions as requested by                the                Company to effectuate the foregoing, and (b) such resignation was                not                because of a disagreement with the Company on any matter relating                to the                Company’s operations, policies or                practices. |
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| 2. | (a)                In consideration of your obligations set forth in this Agreement,                including, but not limited to your consent to the General Release                set                forth in paragraph 8 below, the Company hereby agrees to pay you                (i) One                Million One Hundred Thousand dollars ($1,100,000)** **(gross)                and (ii) Twenty One Thousand, Seven Hundred Sixty-Two dollars ($21,762)                (gross), less all applicable federal, state and local withholding                taxes                and deductions (collectively, the "Severance Payment"), which amount                shall                be paid in a lump sum, pursuant to wire transfer instructions designated                by you, no later than five (5) business days following the Effective                Date                of this Agreement (as defined in paragraph 13 below) (the "Payment                Date"). |
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|   | (b)                  In further consideration of your obligations set forth in this                  Agreement,                  in the event that you elect to receive continuation coverage in                  the                  Company's medical plan pursuant to the provisions of the Consolidated                  Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA"),                  the                  Company agrees to pay for the cost of such continuation coverage                  for                  eighteen (18) months. COBRA continuation coverage shall in all                  respects be                  subject to the requirements, conditions and limitations of COBRA                  and of                  the medical plan of the Company, which may be amended from time                  to time.                  You have notified the Company of your intention to elect COBRA                  continuation coverage and will sign such paperwork as is necessaryto                  effectuate same. |
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| 3. | You                acknowledge that the Severance Payment is in lieu of and in full                satisfaction of any amounts that might otherwise be payable under                any                contract, plan, policy or practice, past or present, of the Company,                or                any of its subsidiaries and affiliates, including but not limited                to your                employment agreement of May 2006 (the "Employment Agreement"). You                shall                not be eligible to receive benefits under any employee benefit plans                or                compensation arrangements of the Company, or any of its subsidiaries                or                affiliates, subsequent to December 18, 2007, with the exception of                (a)                your right to elect COBRA continuation coverage, and (b) any vested                benefits you may have in the Company's 401(k) plan as of December                18, 2007                (together with any accrued earnings in                the 401(k) plan to                date). For the avoidance of doubt, the Severance Payment shall not                count                towards your 401(k) contributions. |
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| 4. | In                consideration of the premises and covenants set forth herein, and                for                other good and valuable consideration, the receipt and sufficiency                of                which are hereby acknowledged, you hereby assign, convey, or otherwise                transfer to the Company, all rights, title, and interest in any and                all                Intellectual Property Rights, acquired, obtained, created or maintained                in                connection with your employment by or association with the Company,                including, without limitation, Intellectual Property Rights obtained                or                created prior to formation of the Company and subsequently used by                the                Company. For the purpose of this Agreement, "Intellectual Property                Rights"                means: (1) any U.S. or foreign patents, utility models and industrial                designs, and applications (whether provisional or otherwise) therefor                of                all countries of the world (including any and all divisions, requests                for                continued reexamination, continued prosecution applications,                continuations-in-part, reissues, and re-examinations thereof); (2)                any                copyrights and copyrighted works of any country, whether registered                or                unregistered, including website content: (3) any U.S. or foreign                trademarks, whether registered or unregistered, maskworks, trade                dress,                trade names, business names, service marks, brands, marks slogans,                Internet domain names, including but not limited to the names MMC                Energy,                Inc. and MMC Energy, LLC, as well as                other uses specifically directed to the use of the name MMC                Energy (and all variations thereof), and the Internet domain names                www.mmcenergy.com                and www.mmcnorthamerica.com,                icons, and logos, and registrations and applications therefor, including                all common law rights and all goodwill associated with any of the                foregoing; (4) any protectible or proprietary interest, whether registered                or unregistered in know-how, trade secrets, database rights, invention                disclosures and applications, software (including source and object                code),                operating manufacturing procedures, designs, specifications and the                like;                (5) any protectible or proprietary interest in any similar intangible                asset of a technical, scientific or creative nature; and (6) any                protectible or proprietary interests in or to any documents or other                tangible media containing any of the foregoing. Upon the Company's                request, you agree that you shall assist the Company or anyone it                designates in filing patent, trademark or copyright applications                worldwide                relating to the Intellectual Property Rights. You are delivering                herewith                executed transfer documentation to cause the transfer to the Company,                as                of the Effective Date, of the domains www.mmcenergy.com                and www.mmcnorthamerica.com                and you further agree that you shall execute all papers and take                all other                actions necessary and advisable, in the Company's opinion, to file                and                prosecute such applications and to transfer to the Company all Internet                domain names including but not limited to www.mmcenergy.com                and www.mmcnorthamerica.com.                You represent and warrant that you: (1) have the power and authority                to                assign, convey or otherwise transfer full and complete ownership                of such                Intellectual Property Rights to the Company, in accordance with this                Agreement; and (2) have no obligations to any third party (whether                by law                or by contract) that could in any way prohibit or limit you from                assigning, conveying or otherwise transferring full and complete                ownership                to the Intellectual Property Rights, provided                that,                to your knowledge, another entity currently uses the MMC Energy name                in                Europe (see http://www.mmcenergy-europe.com/ ), and you represent                that you                have no rights in connection with that entity’s use of the name MMC Energy                and therefore cannot assign or convey any such rights in connection                with                that entity’s use of the name MMC                Energy. |
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| 5. | All                documents (electronic, paper or otherwise), records (electronic,                paper or                otherwise), materials, software, equipment, and other physical property,                and all copies of the foregoing, whether or not otherwise containing                Confidential Information (as defined in Section 12 of the Employment                Agreement), that have come into your possession or been produced                by you in                connection with your employment (“Property”), have been and remain the                sole property of the Company or its subsidiaries or affiliates, as                applicable. You agree that you have returned all such Property to                the                Company (or, to the extent that you have not, that you immediately                will do                so). Without limitation, pursuant to the foregoing paragraph you                shall                return any and all of the Company's computer back-up tapes and other                storage devices (e.g., disk drives, flash drives, CD-Roms, DVD's,                computer                disks, etc.) within two business days after execution of this Agreement                and shall not retain in your possession any copies, duplicates,                reproduction or excerpts of the same. Notwithstanding the foregoing,                the                Company acknowledges that (i) you may retain the Dell laptop computer                currently in your possession and the Dell desktop computer currently                in                your possession, and (ii) the Company agrees to send to you, and                you may                retain, any hard copies and electronic files in its possession relating                to                Newmarket Power Company and MMC Energy Fund, provided                that                the Company reserves the right to retain in its sole discretion any                copies                of the same. |
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| 6. | You                agree to keep the terms of this Agreement confidential and not to                disclose                the Agreement or the terms thereof to any person, except (a) to your                immediate family (including Joseph Hearne) and as may be required                for                obtaining legal or tax advice; (b) for the filing of income tax returns                or                required financial disclosures; (c) to a prospective employer from                whom                you are seeking subsequent employment; or (d) as may be required                by law or                in any proceeding to enforce this Agreement. In the case of any disclosure                to immediate family or a legal or tax advisor, you shall require                any                person receiving such information to maintain its confidentiality.                You                acknowledge that the Company is a reporting company under the Securities                Exchange Act of 1934 and will be required to make disclosure of the                terms                of this Agreement and/or file this agreement as an exhibit to its                public                filings. |
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| 7. | You                agree not to make, or knowingly cause to be made, any statement or                communication, written or oral, with the intention of (a) disparaging                or                otherwise impugning the business or management of the Company or                any of                its subsidiaries or affiliates, or any of their respective officers,                directors, agents, counsel, representatives or employees, or (b)                interfering with, impairing or disrupting the normal operations of                the                Company or any of its subsidiaries or affiliates. The Company agrees                that                it will not knowingly permit its senior officers and directors to                make, or                knowingly cause to be made, any statement or communication, written                or                oral, with the intention of disparaging or otherwise impugning you,                your                business or your reputation and the Company shall advise its senior                officers and directors of this                obligation. |
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| 8. | (a)                You, your heirs, successors, and assigns, hereby knowingly and voluntarily                remise, release and forever discharge the Company and its subsidiaries                and                affiliates, together with all of their respective current and former                officers, directors, partners, shareholders, employees, representatives,                attorneys, agents, and each of their predecessors, successors and                assigns,                and any and all employee pension or welfare benefits plans of the                Company,                including current and former trustees and administrators of these                plans,                and each of their predecessors, successors and assigns (collectively,                the                "Releasees"), from any and all debts, demands, actions, causes of                actions,                accounts, covenants, contracts, agreements, claims, damages, omissions,                promises, and any and all claims and liabilities whatsoever, of every                name                and nature, known or unknown, suspected or unsuspected, both in law                and                equity (“Claims”), which you ever had, now have, or may hereafter claim to                have against the Releasees by reason of any matter, cause or thing                whatsoever arising from the beginning of time to the time you sign                this                Agreement (the "General Release"). This General Release of Claims                shall                apply to any Claim of any type, including, without limitation, any                and all                Claims of any type that you may have arising under the common law,                under                Title VII of the Civil Rights Act of 1964, the Civil Rights Act of                1991,                the Age Discrimination in Employment Act of 1967, the Older Workers                Benefit Protection Act, the Americans With Disabilities Act of 1990,                the                Family and Medical Leave Act of 1993, the Employee Retirement Income                Security Act of 1974, the Sarbanes-Oxley Act of 2002, the Equal Pay                Act,                the Rehabilitation Act of 1973, the New York State and City Human                Rights                laws, and the New York Labor Law, each as amended, and any other                federal,                state or local statutes, regulations, ordinances or common law,                or under any policy, agreement, contract, understanding or promise,                written or oral, formal or informal, between any of the Releasees                and you,                including but not limited to the Employment Agreement, and shall                further                apply, without limitation, to any and all Claims in connection with,                related to or arising out of your employment, or the termination                of your                employment, with the Company, and all Claims for alleged tortious,                defamatory or fraudulent conduct; provided,                however,                that nothing contained in this Agreement shall (i) impair any vested                benefits you may have in the Company's 401(k) plan as of December                18, 2007                (together with any accrued earnings in the 401(k) plan to                date);                or                (ii) be construed to prohibit you from bringing appropriate proceedings                to                enforce this Agreement. You hereby represent and warrant that you                have not                filed or caused to be filed any complaints, charges or lawsuits against                the Company or any of the Releasees, and that no such complaints,                charges                or lawsuits are pending. By signing this General Release, you further                represent that you will not be entitled to any personal recovery                in any                action or proceeding that may be commenced on your behalf arising                out of                the matters released hereby.  |
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|   | (b)                    The Company, on behalf of itself and its subsidiaries, hereby                    knowingly                    and voluntarily remises, releases and forever discharges you,                    your heirs,                    successors and assigns, from any and all Claims, which it ever                    had, now                    has, or may hereafter claim to have against you by reason of                    any matter,                    cause or thing whatsoever arising from the beginning of time                    to the time                    you sign this Agreement, including, without limitation, any and                    all Claims                    of any type that it may have arising under any federal, state                    or local                    statutes, regulations, ordinances or common law, or under any                    policy,                    agreement, contract, understanding or promise, written or oral,                    formal or                    informal, between the Company or any of its subsidiaries and                    you, and                    shall further apply, without limitation, to any and all Claims                    in                    connection with, related to or arising out of your employment,                    or the                    termination of your employment, with the Company, and                    all Claims for alleged tortious or defamatory conduct;                    provided,                    however,                    that nothing contained in this Agreement (i) shall release you                    from any                    Claims for fraud, theft, embezzlement or intentional breach of                    fiduciary                    duty, or contribution action(s) in connection with any such Claims,                    whether brought by the Company or any other entity or person;                    or (ii) be                    construed to prohibit the Company from bringing appropriate proceedings                    to                    enforce this Agreement. The Company acknowledges that it has                    no present                    intention to bring any Claims against you, including any Claims                    of the                    nature described in clause (i) above. |
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| 9. | You                hereby represent and warrant that, with the exception of Louis Zehil                of                McGuireWoods LLP, former attorneys for the Company, you do not have                knowledge of any illegal actions or omissions by any current or former                officer, director, employee, agent, attorney, consultant or representative                of the Company (including yourself) through the date of the execution                of                this Agreement that were (individually or collectively) in any way                knowingly or intentionally improper, harmful or detrimental to the                Company, its business and/or its shareholders, including, without                limitation, violations of any laws, regulations or accounting policies                or                principles, the taking of unreasonable tax positions, or the furnishing                of                inaccurate statements, invoices or other reports to any person or                entity. |
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| 10. | You                agree to cooperate fully with the Company and its subsidiaries and                affiliates concerning reasonable requests for information about the                business of the Company or its subsidiaries or affiliates or your                involvement and participation therein, and any information required                to be                disclosed in the Company’s public filings; the defense or prosecution of                any claims or actions now in existence or which may be brought in                the                future against or on behalf of the Company or its subsidiaries or                affiliates which relate to events or occurrences that transpired                while you                were employed by the Company; and in connection with any investigation                or                review by any federal, state or local regulatory, quasi-regulatory                or                self-governing authority (including, without limitation, the Securities                and Exchange Commission) as any such investigation or review relates                to                events or occurrences relating to business matters or other work-related                issues that transpired while you were employed by the Company, including                but not limited to (i) the potential FERC filing against the CAISO                in                regards to the Company's ability to provide spinning reserve services,                including providing a sworn affidavit as to your direct involvement                in                this matter, following up with Company's FERC counsel and, if required,                testifying at FERC; and (ii) the Company's obligations pursuant to                subpoenas issued in the action captioned Securities                and Exchange Commission v. Zehil,                et al., 07 Civ 1439 (LAP). Your full cooperation shall include, but                not be                limited to, being available to meet and speak with officers or employees                of the Company and/or its counsel at reasonable times and locations,                executing accurate and truthful documents and taking such other actions                as                may reasonably be requested by the Company and/or its counsel to                effectuate the foregoing. The Company shall notify you in writing                as                promptly as practicable and at least ten (10) business days prior                to the                requested date of your consultation or providing documentation (or,                if                such notice is not possible under the circumstances, with as much                prior                notice as is possible). A copy of any such notification shall be                sent to                Chadbourne & Parke LLP, attention of Edward P. Smith, 30 Rockefeller                Plaza, New York, NY 10112. The Company further agrees to reimburse                you for                any reasonable, out-of-pocket travel, hotel and meal expenses incurred                in                connection with your performance of obligations pursuant to this                paragraph                for which you have obtained prior, written approval from the Company;                provided                that                if                you have submitted a request for prior, written approval to the Company                and the Company has not responded to such request, your obligations                under                this paragraph 10 relating to such reimbursement request will not                be                required to be performed unless and until you receive a response                from the                Company. In the event that you provide your services for a total                of more                than fifteen (15) days, the Company shall pay you for your services                for                each additional day in excess of fifteen (15) days an amount equal                to the                daily equivalent of your $225,000 *per                annum*                base salary in effect on your last day of employment, provided                that                you notify the Company in writing at such time as you believe that                you                have provided in excess of fifteen (15) days, and not to incur any                additional time unless (i) approved in writing by the Company, or                (ii) if                compelled to by legal/administrative                process. |
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| 11. | Nothing                in this Agreement is intended to or shall preclude you from providing                truthful testimony on any non-privileged subject matter in response                to a                valid subpoena, court order, regulatory request or other judicial,                administrative or legal process or otherwise as required by law,                in which                event you shall notify the Company in writing as promptly as practicable                after receiving any such request of the anticipated testimony and                at least                ten (10) business days prior to providing such testimony (or, if                such                notice is not possible under the circumstances, with as much prior                notice                as is possible) so that the Company may seek a protective order or                other                appropriate remedy, and you agree to cooperate with the Company in                any                effort the Company undertakes to obtain a protective order or other                remedy. If such a protective order or other remedy is not obtained,                or the                Company waives compliance with this Agreement, you shall furnish                only that                portion of such subject matter that is legally required and shall                exercise                all reasonable efforts to obtain reliable assurance that confidential                treatment will be accorded to the subject matter to be                disclosed. |
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| 12. | The                Company has advised you to consult with an attorney (including tax                counsel) of your choosing prior to signing this Agreement, and you                have                availed yourself of such right. You understand and agree that you                have the                right and have been given the opportunity to review this Agreement                and,                specifically, the General Release in paragraph 8 above, with an attorney,                and in this regard you have consulted with Chadbourne & Parke LLP in                connection with your signature of this Agreement. You also understand                and                agree that the Company is under no obligation to offer you this Agreement                and that you are under no obligation to consent to the General Release.                You acknowledge and agree that the payment offered by the Company                and set                forth in paragraph 2 above and other consideration set forth in this                Agreement is sufficient consideration to require you to abide with                your                obligations under this Agreement, including but not limited to the                General                Release. You represent that you have read this Agreement, including                the                General Release set forth in paragraph 8, and understand its terms                and                that you enter into this Agreement freely, voluntarily, and without                coercion. The Company acknowledges and agrees that the resolution                of the                matters under the Employment Agreement and your obligations set forth                in                this Agreement are sufficient consideration to require the Company                to                abide by its obligations under this                Agreement. |
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| 13. | You                acknowledge and represent that you have been given at least twenty-one                (21) days during which to review and consider the provisions of this                Agreement and, specifically, the General Release set forth in paragraph                8                above, although you may sign and return it sooner if you so desire.                You                further acknowledge and represent that you have been advised by the                Company that you have the right to revoke this Agreement for a period                of                seven (7) days after signing it. You acknowledge and agree that,                if you                wish to revoke this Agreement, you must do so in a writing, signed                by you                and received by the Company no later than 5:00 p.m. Eastern Time                on the                seventh (7th) day of the revocation period. If no such revocation                occurs,                the General Release and this Agreement shall become effective on                the                eighth (8th) day following your execution of this Agreement (the                “Effective Date”). You further acknowledge and agree that, in the event                that you revoke this Agreement, it shall have no force or effect,                and you                shall have no right to receive any of the payments or benefits provided                for hereunder. |
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| 14. | The                Company confirms and you acknowledge that you were granted options                to                purchase shares of the Company ("Options") pursuant to the Company's                2006                Stock Option Plan, as amended or restated from time to time (the                "Option                Plan"), and that this Agreement is not intended to enlarge, reduce,                modify                or otherwise alter any and all rights and/or obligations you may                have with                respect to the exercise of such Options in accordance with the terms                and                conditions of the Option Plan. The Company further confirms that                your                separation of employment shall be treated like a termination for                "Good                Reason" for purposes of Section 9(d)(iv)(B) of the Employment Agreement.                To the extent permitted by law and applicable regulations, on the                third                month anniversary of the Payment Date, the Company shall cause to                be                removed the restrictive transfer legend on the following shares held                by                you: MMC Energy, Inc., Certificate #671, 25,000 shares; MMC Energy,                Inc.,                Certificate #585, 24,291 shares; MMC Energy, Inc., Certificate #640,                461,534 shares. |
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| 15. | It                is the desire and intent of the parties that the provisions of this                Agreement shall be enforced to the fullest extent permissible under                the                laws and public policies applied in each jurisdiction in which enforcement                is sought. In the event that any one or more of the provisions of                this                Agreement shall be held to be invalid, illegal or unenforceable,                the                validity, legality and enforceability of the remaining provisions                shall                not in any way be affected or impaired thereby. Moreover, if any                one or                more of the provisions contained in this Agreement shall be held                to be                excessively broad as to duration, scope, activity or subject, such                provisions shall be construed by limiting or reducing them so as                to be                enforceable to the maximum extent compatible with applicable                law. |
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| 16. | No                waiver by either party of any breach by the other party of any condition                or provision of this Agreement to be performed by such other party                shall                be deemed a waiver of any other provision or condition at the time                or at                any prior or subsequent time. This Agreement and the provisions contained                in it shall not be construed or interpreted for or against either                party                because that party drafted or caused that party's legal representative                to                draft any of its provisions. |
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| 17. | You                and the Company shall enter into the Indemnity Agreement in the form                attached as Exhibit A hereto, provided                that                the amount of directors and officers liability coverage for you shall                not                be less than $5,000,000. |
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| 18. | The                terms described in this Agreement set forth the entire agreement                and                understanding of the parties and supersede all prior agreements,                arrangements and understandings, written or oral, between the parties,                including but not limited to the Employment Agreement, provided,                however, that                Sections 9(d)(iv)(B) (Termination of Service; Accelerated Vesting),                12                (Confidential Information), 13 (Non-Competition And Non-Solicitation),                14                (Dispute Resolution), 15 (Notice), 16 (Personal Guaranty) and 17                (Miscellaneous) of the Employment Agreement shall not be superseded                but                rather shall remain in full force and effect as if restated                herein.** **You                acknowledge and agree that you are not relying on any representations                or                promises by any representative of the Company concerning the meaning                or                any aspect of this Agreement. This Agreement may not be altered or                modified other than in writing signed by you and an authorized                representative of the Company, and shall be governed by and construed                and                enforced in accordance with the laws of New York, without reference                to its                choice of law rules. |
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| 19. | The                Company’s offer to you of this Agreement is not, and shall not be                construed as, any admission                of liability or of any improper conduct on the part of the Company                or any of the Releasees, all of which the Company specifically                denies. |
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| 20. | This                Agreement may be executed in counterparts, each of which shall be                deemed                an original but all of which together shall constitute one and the                same                instrument. |
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|         | Very                truly yours,MMC                Energy, Inc.                                                                                              |
|    |                                                                                                                                                    |    |
|         | /s/              Denis              Gagnon                    |
|         | By:              Denis Gagnon                                                                                                                                |
|         | Title:              Chief Financial Officer                                                                                                                  |

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