Document:

EMPLOYMENT AGREEMENT

                                  
                                       EXHIBIT 10.109

EMPLOYMENT AGREEMENT                  

           THIS EMPLOYMENT AGREEMENT is made this 30th day of June, 1997, 

by and between Central Maine Power Company, a Maine corporation with its 

principal place of business in Augusta, Maine (hereinafter referred to as the 

"Company"), and RAYMOND W. HEPPER of Readfield, Maine (hereinafter 

referred to as the "Executive").

           WHEREAS, the Company recognizes that the Executive is a valued 

employee because of his knowledge of the Company's affairs and his experience and 

leadership capabilities, and desires to encourage his continued employment with 

the Company to assure itself of the continuing advantage of that knowledge, 

experience and leadership for the benefit of customers and shareholders, 

particularly during a period of transition in various aspects of the Company's 

business and in the event of a Change of Control of the Company; and

           WHEREAS, the Executive desires to serve in the employ of the Company on 

a full-time basis for a period provided in this Employment Agreement (hereinafter 

referred to as the "Agreement") on the terms and conditions hereinafter set forth; 

and

           WHEREAS, to these ends the Company desires to provide the Executive 

with certain payments and benefits in the event of the termination of his 

employment in certain circumstances; and

           WHEREAS, the Company and the Executive wish to set forth the terms and 

conditions under which such employment and payments and benefits will occur.

           NOW, THEREFORE, in consideration of the continued offer of employment 

by the Company and the continued acceptance of employment by the Executive, and 

the mutual promises and covenants contained herein, the Company and the 

Executive hereby agree as follows:

           1.  Term of Agreement.  a.  Term.  The term of this Agreement shall begin 

on June 1, 1997 (hereinafter referred to as the "Effective Date") and shall expire on 

May 31, 2000; provided, however, that if a Change of Control occurs during the 

period commencing June 1, 1999 and ending May 31, 2000, this Agreement shall be 

extended and shall thereafter expire 365 days after the date of said Change of 

Control (the "Extended Expiration Date").

           b.  Expiration.  Notwithstanding anything to the contrary in this Section 1, 

except as to vested benefits, this Agreement and all obligations of the Company 

hereunder shall terminate on the earliest to occur of (i) the date of the Executive's 

death, (ii) thirty (30) days after the Company gives notice to the Executive that the 

Company is terminating the Executive's employment for reason of Total Disability 

or Cause; or (iii) May 31, 2000 (or the Extended Expiration Date specified in Section 

1.a above, if applicable, if a Change of Control occurs during the year prior to May 

31, 2000.)

           2.  Definitions.  The following terms shall have the meanings set forth 

below:

           "Affiliate" means a person that directly or indirectly through one or more 

intermediaries controls, is controlled by, or is under common control with the 

Company.

           "Board" means the Board of Directors of the Company.

           "Cause" means any of the following events or occurrences:

           (i)    Any act of material dishonesty taken by, or committed at the request of, 

                   the Executive.

           (ii)   Any illegal or unethical conduct which would impair the Executive's 

                   ability to perform his duties under this Agreement or would impair the 

                   business reputation of the Company.

           (iii)  Conviction of a felony.

           (iv)   The continued failure of the Executive to perform his responsibilities

                   and duties under this Agreement in a satisfactory manner, after 

                   demand for performance has been delivered in writing to the Executive 

                   specifying the manner in which the Company believes that the 

                   Executive is not performing.

           "Change of Control" means the occurrence of any of the following events:

           (i)   Any "person," as such term is used in Sections 13(d) and 14(d) of the 

                  Securities Exchange Act of 1934, as amended (the "Exchange Act") 

                  (other than the Company or any Affiliate or any trustee or other 

                  fiduciary holding securities under an employee benefit plan of the 

                  Company or any Affiliate), is or becomes the beneficial owner, as defined 

                  in Rule 13d-3 under the Exchange Act, directly or indirectly, of stock of 

                  the Company representing thirty percent (30%) or more of the combined 

                  voting power of the Company's then outstanding stock eligible to vote.

           (ii)  The stockholders of the Company approve a merger or consolidation of 

                  the Company with any other corporation, other than a merger or 

                  consolidation which would result in the voting stock of the Company 

                  outstanding immediately prior thereto continuing to represent (either by 

                  remaining outstanding or by being converted into voting securities of the 

                  surviving entity) more than fifty percent (50%) of the combined voting 

                  power of the outstanding voting stock of the Company or such surviving 

                  entity immediately after such merger or consolidation; provided, 

                  however, that a merger or consolidation effected to implement a 

                  recapitalization of the Company (or similar transaction) in which no 

                  "person" (as hereinabove defined) acquires more than thirty percent 

                  (30%) of the combined voting power of the Company's then outstanding 

                  securities shall not constitute a Change of Control of the Company.

           (iii)  The stockholders of the Company approve a plan of complete liquidation 

                   of the Company or an agreement for the sale, lease, exchange or other 

                   disposition by the Company of all or substantially all of the Company's 

                   assets (or any transaction having a similar effect).

           "Constructive Discharge" means, so long as no Change of Control has 

occurred, any reduction in the Executive's annual base salary in effect as of the

Effective Date of this Agreement, or as the same may be increased from time to

time, other than any across-the-board base salary reduction for a group or all of the

executive officers of the Company, and also means, on or after a Change of Control,

           (i)   any reduction in the Executive's annual base salary in effect as of the

                  Effective Date of this Agreement, or as the same may be increased from 

                  time to time;

           (ii)  a substantial reduction in the nature or scope of the Executive's

                  responsibilities, duties or authority from those described in Section 3.c of 

                  this Agreement;

           (iii) a material adverse change in the Executive's title or position; or

           (iv)  relocation of the Executive's place of employment from the Company's

                  principal executive offices to a place more than twenty-five (25) miles 

                  from Augusta, Maine without the Executive's consent.

           "Severance Benefits" means the benefits set forth in Section 5.a or 5.c of this 

Agreement.

           "Total Disability" means the complete and permanent inability of the 

Executive to perform all of his duties under this Agreement on a full-time basis for 

a period of at least six (6) consecutive months, as determined upon the basis of such 

evidence, which may include independent medical reports and data.

           3.  Employment.  a.  Position.  The Company hereby agrees to continue its 

employment of the Executive in the capacity of General Counsel, and the Executive 

hereby agrees to remain in the employ of the Company for the period beginning on 

the Effective Date and ending on the date on which the Executive's employment is 

terminated in accordance with this Agreement (the "Employment Period").  This 

Agreement shall not restrict in any way the right of the Company to terminate the 

Executive's employment at whatever time and for whatever reason it deems 

appropriate, nor shall it limit the right of the Executive to terminate employment at 

any time for whatever reason he deems appropriate.

           b.  Performance.   The Executive agrees that during the Employment Period 

he shall devote substantially all his business attention and time to the business and 

affairs of the Company, and use his best efforts to perform faithfully and efficiently 

the duties and responsibilities of the Executive under this Agreement.  It is 

expressly understood that (i) the Executive may devote a reasonable amount of time 

to such industry associations and charitable and civic endeavors as shall not 

materially interfere with the services that the Executive is required to render under 

this Agreement, and (ii) the Executive may serve as a member of one or more 

boards of directors of companies that are not affiliated with the Company and do 

not compete with the Company or any of its Affiliates.

           c.  Job Duties.  The following listing of job duties shall represent the 

Executive's primary responsibilities.  Such responsibilities may be expanded and, so 

long as no Change of Control has occurred, may be decreased as the business needs 

of the Company require.  The Executive's primary job responsibilities shall include, 

but not be limited to, the supervision and coordination of all legal matters handled 

by the General Counsel's in-house staff and adjunct outside counsel and the 

representation of the Company in legal matters in regulatory and judicial forums.

           4.  Compensation and Benefits.  a.  During the Employment Period, the 

Executive shall be compensated as follows:

           (i)   Salary.  The Executive shall receive an annual base salary, the amount 

                  of which shall be reviewed regularly and determined from time to time, 

                  but which shall not be less than $128,500.00.  His salary shall be 

                  payable in accordance with Company payroll practices.

           (ii)  Participation in Executive Plans.  He shall be entitled to participate in 

                  any and all plans and programs maintained by the Company from time 

                  to time to provide benefits for its executives, including without limitation 

                  any short-term or long-term incentive plan or program, in accordance 

                  with the terms and conditions of any such plan or program or the 

                  administrative guidelines relating thereto, as may be amended from 

                  time to time.

           (iii)  Participation in Salaried Employee Plans.  The Executive shall be 

                   entitled to participate in any and all plans and programs maintained by 

                   the Company from time to time to provide benefits for its salaried 

                   employees generally, including without limitation any savings and 

                   investment, stock purchase or group medical, dental, life, accident or 

                   disability insurance plan or program, subject to all eligibility 

                   requirements of general applicability, to the extent that executives are 

                   not excluded from participation therein under the terms thereof or 

                   under the terms of any executive plan or program or any approval or 

                   adoption thereof.  

           (iv)  Other Fringe Benefits.  The Executive shall be entitled to all fringe 

                   benefits generally provided by the Company at any time to its full-time 

                   salaried employees, including without limitation paid vacation, holidays 

                   and sick leave but excluding severance pay, in accordance with 

                   generally applicable Company policies with respect to such benefits.

           b.  Retention Bonus.  If the Executive is actively employed by the Company 

on the earlier to occur of (i) the date of the sale of the Transmission and 

Distribution Business Unit, or (ii) May 31, 2000, the Executive shall be entitled to 

receive a lump sum cash payment of one-half (1/2) of the Executive's annual base 

salary then in effect, which shall be paid within fifteen (15) working days after the 

applicable date specified in subsection (i) or (ii) above.  If the Executive's 

employment is terminated for any reason whatsoever prior to the earlier of such 

dates, he shall not be entitled to receive the retention bonus described herein, 

although he may be entitled to receive Severance Benefits as provided in Section 5 

below.

           c.  Withholding.  All compensation payable under this Section 4 shall be 

subject to normal payroll deductions for withholding income taxes, social security 

taxes and the like.

           5.  Severance Benefits.  a.  Change of Control.  If, on or after a Change of 

Control, the Executive's employment with the Company is terminated during the 

Employment Period by the Company and/or any successor for any reason other than 

death, Total Disability or Cause, or by the Executive within twelve (12) calendar 

months of a Constructive Discharge, Severance Benefits shall be provided as 

follows:

           (i)   The Company shall pay the Executive, in one lump sum cash payment,

                  within sixty (60) days following the date of termination of employment 

                  as defined in Section 6 below, an amount equal to 2.0 times the 

                  Executive's then-current base salary.

           (ii)  The Company shall provide the Executive with so-called COBRA medical

                  continuation coverage paid by the Company for a period up to eighteen 

                  (18) months, or until the Executive obtains coverage under another 

                  group medical plan with another employer, whichever occurs first.

           (iii) The Company shall pay a fee to an independent outplacement firm

                 selected by the Executive for outplacement services in an amount

                 equal to the actual fee for such services up to a total of $10,000.

           b.  Parachute Provision.  Notwithstanding the provisions of Section 5.a 

hereof, if, in the opinion of tax counsel selected by the Company's independent 

auditors, 

           (i)   the Severance Benefits set forth in said Section 5.a and any payments or 

                  benefits otherwise payable to the Executive would constitute "parachute 

                  payments" within the meaning of Section 280G(b)(2) of the Internal 

                  Revenue Code of 1986, as amended (the "Code") (said Severance Benefits 

                  and other payments or benefits being hereinafter collectively referred to 

                  as "Total Payments"), and

           (ii)  the aggregate present value of the Total Payments would exceed 2.99

                  times the Executive's base amount, as defined in Section 280G(b)(3) of 

                  the Code,

then, such portion of the Severance Benefits described in Section 5.a hereof as, in 

the opinion of said tax counsel, constitute "parachute payments" shall be reduced as 

directed by tax counsel so that the aggregate present value of the Total Payments is 

equal to 2.99 times the Executive's base amount.  The tax counsel selected pursuant 

to this Section 5.b may consult with tax counsel for the Executive, but shall have 

complete, sole and final discretion to determine which Severance Benefits shall be 

reduced and the amounts of the required reductions.  For purposes of this Section 

5.b, the Executive's base amount and the value of the Total Payments shall be 

determined by the Company's independent auditors in accordance with the 

principles of Section 280G of the Code and based upon the advice of tax counsel 

selected thereby.

           c.  No Change of Control.  If no Change of Control has occurred, and the 

Executive's employment with the Company is terminated during the Employment 

Period either (i) by the Company for any reason other than death, Total Disability 

or Cause, or (ii) by the Executive within six (6) calendar months of a Constructive 

Discharge, the Company shall pay the Executive, in one lump sum payment within 

sixty (60) days following the date of termination of employment as defined in 

Section 6 below, an amount equal to one (1) times the Executive's annual base 

salary in effect on the date immediately preceding the date of termination, or 

preceding the date of a Constructive Discharge attributable to a base salary 

reduction if applicable.

           6.  Date of Termination.  For purposes of this Agreement, the date of 

termination of the Executive's employment shall be the date notice is given to the 

Executive by the Company and/or any successor or, in the case of a Constructive 

Discharge, the date set forth in a written notice given to the Company by the 

Executive, provided that the Executive gives such notice within twelve (12) 

calendar months of the Constructive Discharge in the case of a Change of Control, 

and within six (6) calendar months of the Constructive Discharge in other cases, 

and specifies therein the event constituting the Constructive Discharge.

           7.  Taxes.  a.  Gross-Up Amount.  In the event that any portion of the 

Severance Benefits provided in Section 5 is subject to tax under Code § 4999, or any 

successor provision thereto (the "Excise Tax"), the Company shall pay to the 

Executive an additional amount (the "Gross-Up Amount") which, after payment of 

all federal and State income taxes thereon (assuming the Executive is at the 

highest marginal federal and applicable State income tax rate in effect on the date 

of payment of the Gross-Up Amount) and payment of any Excise Tax on the Gross-

Up Amount, is equal to the Excise Tax payable by the Executive on such portion of 

the Severance Benefits.  Any Gross-Up Amount payable hereunder shall be paid by 

the Company coincident with the payment of the Severance Benefits described in 

Section 5.a of this Agreement.

           b.  Tax Withholding.  All amounts payable to the Executive under this 

Agreement shall be subject to applicable withholding of income, wage and other

taxes.

           8.  Non-Competition, Confidentiality and Cooperation.  a.  The 

Executive agrees that:

           (i)   During the Employment Period and for one (1) year after the termination

                  of the Executive's employment with the Company for any reason other 

                  than a Change of Control, the Executive shall not serve as a director, 

                  officer, employee, partner or consultant or in any other capacity in any 

                  business that is a competitor of the Company, or solicit Company 

                  employees for employment or other participation in any such business, 

                  or take any other action intended to advance the interests of such 

                  business; provided, however, that this Section 8.a.(i) shall not apply after 

                  the termination of the Executive's employment if the Executive 

                  voluntarily terminates employment and is not eligible to receive a

                  Severance Benefit under Section 5.c. above.

           (ii)  During and after the Executive's employment with the Company, he

                  shall not divulge or appropriate to his own use or the use of others any 

                  secret, proprietary or confidential information or knowledge pertaining 

                  to the business of the Company, or any of its Affiliates, obtained during 

                  his employment with the Company.

           (iii)  During the Employment Period, he shall support the Company's

                  interests and efforts in all regulatory, administrative, judicial or other 

                  proceedings affecting the Company and, after the termination of his

                  employment with the Company, he shall use best efforts to comply with 

                  all reasonable requests of the Company that he cooperate with the 

                  Company, whether by giving testimony or otherwise, in regulatory, 

                  administrative, judicial or other proceedings affecting the Company 

                  except any proceeding in which he may be in a position adverse to that of 

                  the Company.  After the termination of employment, the Company shall 

                  reimburse the Executive for his reasonable expenses and his time, at a 

                  reasonable rate to be determined, for the Executive's cooperation with 

                  the Company in any such proceeding.

           (iv)  The term "Company" as used in this Section 8 shall include Central

                  Maine Power Company, any Affiliate of Central Maine Power Company 

                  (determined as of the date of termination), any successor to the business 

                  or operations of Central Maine Power and any business entity spun-off, 

                  divested, or distributed to shareholders which shall continue the 

                  operations of Central Maine Power Company.

The provisions of this Section 8 shall survive the expiration or termination of this 

Agreement.  The Executive agrees that the Company shall be entitled to injunctive 

relief to prevent any breach or threatened breach of these provisions.  In the event 

of a failure to comply with part (i), (ii) or (iii) of this Section 8, the Executive agrees 

that the Company shall have no further obligation to pay the Executive any 

Severance Benefits under Section 5.c. of this Agreement.

           9.  No Mitigation.  The Executive shall not be required to mitigate the 

amount of any payment provided for in this Agreement by seeking other 

employment.

           10.  Assignment.  This Agreement and the rights and obligations of the 

Company hereunder shall inure to the benefit of and shall be binding upon the 

successors and assigns of the Company, including without limitation any 

corporation or other entity acquiring all or substantially all of the business or assets 

of the Company whether by operation of law or otherwise.  This Agreement and the 

rights of the Executive hereunder shall not be assignable by the Executive, and any 

assignment by the Executive shall be null and void.

           11.  Arbitration.  Any dispute or controversy arising under or in connection 

with this Agreement shall be settled exclusively by arbitration in Augusta, Maine, 

in accordance with the rules of the American Arbitration Association then in effect.  

The pendency of any such dispute or controversy shall not affect any rights or 

obligations under this Agreement.  Judgment may be entered on the arbitrator's 

award in any court having jurisdiction.

           12.  Waiver; Amendment.  The failure of either party to enforce, or any 

delay in enforcing, any rights under this Agreement shall not be deemed to be a 

waiver of such rights, unless such waiver is an express written waiver which has 

been signed by the waiving party.  Waiver of any one breach shall not be deemed to 

be a waiver of any other breach of the same or any other provision hereof.  This 

Agreement can be amended only by written instrument signed by each party hereto 

and no course of dealing or practice or failure to enforce or delay in enforcing any 

rights hereunder may be claimed to have effected an amendment of this Agreement.

           13.  Singular Contract.  This Agreement is a singular agreement between 

the Executive and the Company, and is not part of a general "plan" or "program" for 

employees as a group.  This Agreement shall, under no circumstances, be deemed to 

be an "employee welfare benefit plan" or an "employee pension benefit plan" as 

defined in the Employee Retirement Income Security Act of 1974 (hereinafter 

referred to as "ERISA").  Notwithstanding, the Company may submit a letter to the 

Department of Labor indicating the possible establishment of a so-called unfunded 

"top hat" plan for the benefit of a select group of management and highly 

compensated employees to avoid the costs and uncertainties which may occur in the 

event of a Department of Labor audit and challenge relative to compliance with any 

allegedly applicable provisions of ERISA.  The Executive specifically acknowledges 

and agrees that the filing of the so-called "top hat" letter notice by the Company 

shall not be construed or interpreted as an admission on the part of the Company 

that this Agreement constitutes an ERISA plan, and the Company hereby 

categorically states, and the Executive hereby agrees, that this Agreement is an ad 

hoc individual contract with the Executive.

           14.  Notices.  Any notice required or permitted to be given under this 

Agreement shall be sufficient if in writing and sent by first-class, registered or 

certified mail or hand-delivered to the Executive at the last residence address he 

has provided to the Company or, in the case of the Company, at its principal 

executive offices to the attention of the Corporate Secretary.

           15.  Titles and Captions.  The section and paragraph titles and captions 

contained herein are for convenience only and shall not be held to explain, modify, 

amplify, or aid in the interpretation, construction or meaning of the provisions of 

this Agreement.

           16.  Miscellaneous.  This Agreement shall be construed and enforced in 

accordance with the laws of the State of Maine.  In the event that any provisions of 

this Agreement shall be held to be invalid, the other provisions hereof shall remain 

in full force and effect.

           17.  Entire Agreement.  The terms of this Agreement are intended by the 

parties to be the final expression of their agreement with respect to the employment 

of the Executive by the Company and may not be contradicted by evidence of any 

prior or contemporaneous oral or written agreement.

           IN WITNESS WHEREOF, the parties hereto have executed this Agreement 

effective as of the date first written above.

WITNESS:

_____________________________                   /s/ Raymond W. Hepper      

                                          
                   Raymond W. Hepper

WITNESS:                                         
  CENTRAL MAINE POWER COMPANY

_____________________________                  /s/ David M. Jagger             

                                          
                   By:   David M. Jagger

                                          
                   Chairman of the Board

                                          
                     of DirectorsFIRST AMENDMENT

EXHIBIT 10.109.1

FIRST AMENDMENT

TO THE

EMPLOYMENT AGREEMENT

           This Amendment approved by the Board of Directors and executed as of the 18th day of 

March, 1999, by and between CENTRAL MAINE POWER COMPANY (the "Company") 

and RAYMOND W. HEPPER of Readfield, Maine (the "Executive").

           WHEREAS, the Company and the Executive entered into an Employment Agreement dated June 30, 1997 (the "Employment Agreement); and 

           WHEREAS, the Company and the Executive hereby mutually agree to amend the contract.

            NOW, THEREFORE, the Employment Agreement is hereby amended as follows effective as of the date first above written:

            (1)   Section 1.a. is hereby deleted and shall henceforth provide as follows:
"a.   Term.  The term of this Agreement shall begin on June 1, 1997 (hereinafter referred to as the "Effective Date") and shall expire on May 31, 2000; provided, however, that on May 31, 2000 and on each May 31
thereafter, the term of this Agreement shall automatically be extended for one (1) additional year unless not later than the preceding January 31st, either the Company or the Executive shall have given notice that such party does not wish to extend the term of this Agreement.  If a Change of Control occurs during the original term of this Agreement or any extension, the term of this
Agreement shall be automatically extended for 365 days after the consummation of the Change of Control (the "Extended Expiration Date"), which shall be deemed for this purpose to be a date on which all action necessary to complete a Change of
Control shall have been accomplished, including any regulatory approvals."

            (2)   Section 1.b.(iii) is hereby deleted and shall henceforth provide as follows:

                  "(iii) the normal or Extended Expiration Date as specified in Section a above."

            (3)   Section 5.a.(i) is hereby amended by changing the term "2.0 times" to "1.0 times".

            (4)   Section 5.b. is hereby amended by adding the following sentence at the end of the first sentence thereof:

"Notwithstanding the foregoing, the reduction provided for herein shall be made only if the amount of the reduction in the payments specified in Section 5.a. is less than the excise tax imposed pursuant to Section 4999 of the Code on the portion
of the Total Payments which constitute "excess parachute payments"."

            (5)   Section 7.a. is hereby deleted in its entirety.

            (6)   A new Section 8.b. is hereby added which shall henceforth provide as follows:

"b.  In the event the Executive is entitled to Severance Benefits under Section 5.a. above, the Executive agrees not to compete with the Company (as competition defined in Section a.(i) above) for a period of one (1) year after his termination of
employment, and in consideration for such agreement not to compete and as reasonable compensation therefor, the Company shall pay the Executive one (1) times the Executive's then-current base salary in twelve (12) equal monthly installments payable on the
first day of each calendar month commencing on the first day of the month following termination of employment.  In the event the Executive breaches this provision during the one year payment period, the Company shall cease making additional payments
hereunder."

            (7)   A new Section 18 is hereby added which shall henceforth provide as follows:

"18.   General Release.   The obligations of the Company to make any post-termination payments under this Agreement (including, without limitation, under Sections 4.a., 5.a., 5.c. and 8.b.) are contingent upon the prior
receipt by the Company of a general release reasonably satisfactory to the Company releasing the Company, and all parties connected therewith, from any and all claims and liabilities which the Executive may have against the Company, including any claims
arising out of or in any way connected with the Executive's employment relationship with the Company and its affiliates, and the termination of said employment relationship.  In the event that the Executive (or the Executive's estate, in the event of the
death of the Executive) fails to execute and deliver the general release described above within 60 days of the date of receipt of the release, the Company shall be relieved of all obligations to make any post-termination payments of any kind or nature
under this Agreement."

            (8)   In all other respects, the Employment Agreement will continue in full force and effect.

            IN WITNESS WHEREOF, the parties hereto have executed this Amendment 

effective as of the date first above written.

CENTRAL MAINE POWER COMPANY

By:           /s/ David M. Jagger                         
     /s/Raymond W. Hepper         

            Chairman, Board of Directors                        
Raymond W. Hepper

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00021-of-00352.parquet"}]]