Document:

Exhibit 10(am)

 

THE BANK OF NEW YORK

NEW YORK’S FIRST BANK - FOUNDED 1784 BY
ALEXANDER HAMILTON

 

	
   

  	
  ONE WALL STREET, NEW YORK, N.Y. 10286

  
	
   

  	
   

  
	
   

  	
  October 1, 2003

  

 

Maine Public Service Company

209 State Street

Presque Isle, Maine 04769-1209

Attn:                    Mr.
Kurt A. Tomquist

Senior Vice President,

Chief Financial Officer and Treasurer

 

Re: Line of Credit

 

Ladies and Gentlemen:

 

 

The Bank of New York (the “Bank”) is pleased to confirm that it holds
available to Maine Public Service Company (the “Borrower”) a $3,000,000 line of
credit. This letter sets forth the understanding between the Bank and the
Borrower regarding the line of credit.

 

The line of credit shall be held available by the Bank until
March 29, 2004, unless cancelled earlier as provided in the last sentence of
this paragraph. During the period the line of credit is held available, the
Borrower may request the Bank to make advances to the Borrower in an aggregate
principal amount not to exceed $3,000,000 outstanding at any one time. The line
of credit may be cancelled by either party at any time for any reason.

 

The making of any advance under the line of credit is in the Bank’s
sole and absolute discretion and is subject to the Bank’s satisfaction with the
condition (financial and otherwise), business, prospects, properties, assets,
management, ownership and operations of the Borrower, and the purpose of each
advance. In furtherance of the foregoing, the Borrower shall furnish or cause
to be furnished to the Bank such information regarding the Borrower as the Bank
may request from time to time.

 

Advances under the line of credit shall be evidenced by a master
promissory note dated the date hereof and shall bear interest and be payable as
provided therein.

 

As long as the line of credit is held available, the Borrower shall pay
to the Bank an administrative fee equal to 0.50% per annum (calculated on the
basis of a 360 day year for the actual number of days elapsed) of the
unutilized amount of the line of credit, payable quarterly in arrears on the
last day of each calendar quarter.

 

Prior to the making of any advances under the line of credit, the Bank
shall have received the enclosed copy of this letter, the master promissory
note referred to above, a legal opinion from counsel to the Borrower in the
form of the exhibit attached hereto, and such other instruments, certificates
and related documents as the Bank shall consider necessary or desirable in
connection

 

 

with the line of credit and the advances to be made under the line of
credit, in each case duly executed by the appropriate persons and in form and
substance satisfactory to the Bank.

 

This letter may not be amended, and compliance with its terms may not
be waived, orally or by course of dealing, but only by a writing signed by an
authorized officer of the Bank.

 

The Borrower agrees to pay all costs and expenses incurred by the Bank
incidental to or in any way relating to enforcement of the Borrower’s
obligations under this letter or the protection of the Bank’s rights in
connection with this letter, including, without limitation, reasonable
attorneys’ fees and expenses, whether or not litigation is commenced.

 

This letter shall be construed and interpreted in accordance with the
laws of the State of New York.

 

The Borrower submits to the jurisdiction of state
and Federal courts located in the City and State of New York in personam and
agrees that all actions and proceedings related directly or indirectly to this
letter shall be litigated only in said courts or courts located elsewhere as
the Bank may elect and that such courts are convenient forums.

 

The
Borrower and the Bank waive the right to trial by jury in any action or
proceeding based upon, arising out of or in any way connected to this letter.

 

Please acknowledge the agreement of the Borrower with the foregoing by
executing both copies of this letter in the space below and returning one copy
together with the duly executed master promissory note to the Bank.

 

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charlotte Sohn Fuiks

  
	
   

  	
  Name:

  	
  Charlotte Sohn Fuiks

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and Agreed to:

  	
   

  
	
   

  	
   

  
	
  MAINE PUBLIC SERVICE COMPANY

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Kurt A. Tornquist

  	
   

  	
   

  
	
  Name:

  	
  Kurt A. Tornquist

  	
   

  	
   

  
	
  Title:

  	
  Senoir VP & CFO

  	
   

  	
   

  
									

 

2Exhibit 10(an)

 

ASSIGNMENT
AND AMENDMENT AGREEMENT

 

 

THIS
ASSIGNMENT AND AMENDMENT AGREEMENT (this “Amendment”)
is entered into as of October 3, 2003 by and between MAINE & MARITIMES CORPORATION
(“MAM”): to wholly
owned subsidiary MAINE PUBLIC SERVICE COMPANY (“MPS”) and JAMES NICHOLAS BAYNE (“Officer”)
(Officer together with MAM and MPS, are collectively referred to as “Parties”
herein).

 

Recitals

 

MPS and Officer entered into that certain Employment Continuity
Agreement dated July 25, 2002, and made effective June 1, 2002 (the
“Continuity Agreement”), pursuant to which MPS, among other things, granted to
Officer certain rights following termination of Officer’s employment with MPS
upon certain specified circumstances.

 

On June 30, 2003 MPS reorganized into a holding company structure
pursuant to which MPS became a wholly owned subsidiary of MAM. In connection
with this reorganization, Officer became the President and Chief Executive
Officer of MAM under the employ of MAM.

 

MPS now desires to assign, convey and transfer to MAM all of its rights
and obligations under the Continuity Agreement, and MAM is willing to assume
all of MPS’s rights and obligations under the Continuity Agreement; and the
Parties desire to amend certain provisions contained in the Continuity
Agreement on the terms set forth herein.

 

Now, therefore, the Parties agree as follows:

 

AGREEMENT

 

1. For good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged by the Parties, MPS does hereby assign to MAM, as of
the date hereof, all of MPS’s right, title and interest in, to and under the
Continuity Agreement. By execution hereof, MAM hereby assumes and agrees to
discharge, perform and observe in due course all of the rights, obligations and
terms therein contained whether arising before or after the date of this
Amendment.

 

2. The Continuity Agreement, by this reference, is fully incorporated
into this Amendment. Except as set forth in this Amendment, capitalized terms
used but not defined in this Amendment shall have the meanings ascribed to them
in the Continuity Agreement.

 

3. The text of the first paragraph of the Continuity Agreement which
states: “This Agreement made as of this 25th day of July, 2002, but
effective June 1, 2002, by and between MAINE PUBLIC SERVICE COMPANY, a
Maine corporation with its principal place of business in Presque Isle, Maine
(the “Company” and James Nicholas Bayne of Presque Isle, Maine, (“Officer”).”
Is deleted and replaced with the following:

 

 

 

“This Agreement made as of this 25th day of July, 2002, but
effective June 1, 2002, by and between MAINE & MARITIMES CORPORATION,
a Maine corporation with its principal place of business in Presque Isle, Maine
(the “Company” and James Nicholas Bayne of Presque Isle, Maine, (“Officer”).

 

4. Accordingly, all references in the Continuity Agreement to the
“Company” shall be deemed to be references to MAM.

 

5. The Continuity Agreement is further amended by inserting the
following text at the beginning of the first paragraph of Section 5 of the
Continuity Agreement (just before the text: ““Change in Control Event.”
Each of the following events shall constitute a “Change in Control Event” for
the purposes of this Agreement:”):

 

“For the purpose of this definition (“Change in Control Even”) only, the term
“Company,” first defined above, shall also be defined to include Maine Public
Service Company in addition to its parent, Maine & Maritimes Corporation.”

 

6. The Continuity Agreement as amended hereby (the “Amended Continuity
Agreement”) is and shall continue to be in full force and effect and is hereby
in all respects ratified and confirmed.

 

7. The Amended Continuity Agreement constitutes the entire agreement
between the Parties with respect to the subject matter hereof and supersedes
all prior agreements, promises, letter agreements, proposals, representations,
understandings and negotiations, whether or not reduced to writing, among and
between the parties respecting the subject matter hereof.

 

8. This Amendment shall become effective as of the date first written
above upon the execution hereof by each of the Parties.

 

9. The validity of this Amendment, the construction and enforcement of
its terms, and the interpretation of the rights and duties of the Parties
hereunder shall be governed by the laws of the State of Maine, excluding the
choice of law principles of that State.

 

10. This Amendment may be executed in multiple counterparts, each of
which shall be deemed an original, but all of which shall constitute one and
the same instrument.

 

 

(remainder of page intentionally left blank)

 

 

IN WITNESS WHEREOF, the Parties have caused this Assignment and
Amendment Agreement to be executed by their duly authorized officers as of the
date and year first above written.

 

 

	
   

  	
  MAINE PUBLIC SERVICE COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Nathan L. Grass

  	
   

  
	
   

  	
   

  	
  Name: Nathan L.
  Grass

  
	
   

  	
   

  	
  Title: Director,
  and Chairperson, Performance and

  Compensation Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MAINE & MARITIMES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Nathan L. Grass

  	
   

  
	
   

  	
   

  	
  Name: Nathan L.
  Grass

  
	
   

  	
   

  	
  Title: Director, and
  Chairperson, Performance and

  Compensation Committee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OFFICER

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    /s/ James Nicholas Bayne

  	
   

  
	
   

  	
  Name: 
  James Nicholas Bayne

  
	
   

  	
  Title: 
  President and Chief Executive Officer,

  Maine & Maritimes Corporation

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