Document:

EXHIBIT 10(b)

September 22, 2006

Kurt A. Tornquist

28 Fort Hill
Street

Fort Fairfield, ME 04742

Dear Kurt:

The following is a
summary of your various benefits pursuant to your separation of employment with
Maine Public Service effective September 25, 2006.

Severance
Pay:  You will receive
three weeks of pay at your current base wage for each year of continuous
service with the company, a partial year of service shall be prorated.  You have 14.25 years of service with the
company, so you will receive 42.75 weeks of pay, which is $98,653.74 (gross) less
normal withholdings.  Your severance will
be paid in twenty-one (21) equal installments on a bi-weekly basis beginning
with the period ending October 8, 2006.

Medical:  Your coverage under the company’s medical
plan ceases effective with your separation of employment at the end of the
workday on September 25, 2006.  However,
in accordance with federal law under “COBRA”, you are eligible for eighteen
(18) months of coverage.  The company
will continue to make the regular employer contribution amount plus the company’s
share of the 2% administrative fee for up to three months of this COBRA
coverage for you and your family.  Should
you elect COBRA, your share of the premium for the first three months will be
$301.83 per month.  Anthem BCBS will send
you a monthly invoice, please send the invoice and your check payable to MPS to
Ruth Barnes.  Information on COBRA and
COBRA election forms are enclosed.

Your COBRA Election Forms
must be returned within 60 days of this letter for your coverage to
continue.  Please mail to:

Maine & Maritimes
Corporation

Ruth Barnes

P. O. Box 789

Presque Isle, ME
04769-0789

Vacation
Pay:  Payment for your 247
hours of accrued vacation in the amount of $14,250.02 (gross) will be paid to
you on October 12, 2006.

Final
Paycheck:  Your final paycheck
for the week ending through October 1, 2006, will be processed and paid to you
on October 12, 2006.

 

Health
Care Reimbursement Account: 
You will have 30 days after September 25, 2006, to submit any claims for
expenses incurred during the plan year, prior to and including your separation of
employment date, for reimbursement.  Or,
if you wish, you can elect to continue participation in the plan on an
after-tax basis via COBRA at 102% of your current cost.  An election form is enclosed and must also be
returned to Ruth Barnes.

Accidental Death &
Dismemberment Insurance: 
Your Company provided Group AD&D coverage ceases upon the separation
of your employment.

Group Term Life Insurance:  Your Group Term Life Insurance coverage under
our Prudential Group Plan terminates with your employment.  However, you have the right to either port or
convert your policy to an individual life insurance policy if desired.  If you wish to exercise your conversion
privilege, you must make written application for an individual policy and pay
the first premium on it within 31 days after the cessation of your
insurance.  Conversion forms and
information on portability and conversion are enclosed.  Any questions regarding this should be
directed to:

Prudential Financial

Group Conversions

290 West Mt. Pleasant
Avenue

Mail Stop NJ-11-01-03

Livingston, NJ 07039-2729

Telephone:
877-889-2070

Disability Insurance:  Your short-term and long-term disability
insurance ceases upon your separation of employment; however, you may convert
your long term disability insurance to an individual policy if you wish.  Conversion forms have been included for your
convenience. Any questions regarding this should be directed to:

The Prudential Insurance
Company of America

P. O. Box 8769

Philadelphia, PA
19101-8769

Telephone:  1-800-842-1718

Voluntary Accidental Death and
Dismemberment Insurance: Your coverage in force ceases upon
your separation of employment. You may convert this coverage to an individual
policy. Application and premium must be made within 31 days of the separation
date.  The amount of insurance cannot be
more than the amount in force prior to the separation of employment. Conversion
forms have been included for your convenience.

Retirement Savings Plan:  Contributions to your Retirement Savings
Account with Bank of America will cease upon your separation of employment.
Whereas your account balance exceeds $1,000, you have the following options:

 2
 

 

1.               You
may choose to receive payment of your vested account balance in the form of a lump
sum distribution as soon as practicable after your separation of employment. If
you receive a lump sum distribution and don’t roll it into another plan, such
as an IRA or a new employer’s sponsored plan, you will have to pay tax in
addition to a 10% penalty on the distribution.

2.               You may leave your
funds in the Company’s Plan and continue to direct the investment of your
vested account balance until 60 days after the end of the plan year in which
you attain age 65. If you do not select an earlier date, your account will be
distributed in a lump sum or in installments, if you have so elected, when you
attain age 65.

Enclosed is a Special Tax
Notice for your review.  A distribution
package will be sent to you from the Bank of America.  If you have any questions, please contact:

Vivian Sawyer

Bank of America

100 Middle Street, 3rd Floor

Portland, ME 04101

(207) 874-5622

Defined Benefit Pension Plan:  Upon your separation of
employment you will have met the Years of Vesting Service under the Company’s
pension plan for a non-forfeitable benefit. A statement of benefits will be
provided by Bank of America as soon as feasible following your separation of
employment.

Expenses:  If you have any expenses you have not yet
reported, please complete the expense report that is included with this package
within the next ten days.  Send the
completed form to Ruth Barnes for processing.

We encourage you to
contact the Presque Isle Career Center at 66 Spruce Street in Presque Isle,
telephone number (207) 760-6300.  This is
a free outplacement service including resume writing, career development, job
search assistance and education assistance. The Maine Career Center
website also has job search information along with a number of links to
internet job sites; address is www.mainecareercenter.com.  Additionally, the Company will provide you
notice of any internal positions that become available for the next twelve
months.

If you have any
questions, please don’t hesitate to contact me.  Best wishes in your future endeavors.

	
  Sincerely,

  
	
   

  
	
  /s/ Mark M. Hovey

  	
   

  
	
  Mark M. Hovey

  
	
  Vice President,
  Human Resources

  
	
  and
  Organizational Development

  
	
   

  
	
  Enclosures

  

 

 3

RELEASE

The undersigned employee hereby agrees:

1.             As
consideration for this Release, I will receive three (3) weeks of pay at my
current salary for each year of my prior service with the Company as severance
pay, less all appropriate federal, state and local taxes, Social Security and
FICA withholdings, together with the benefits described in Paragraph 2 (the “Settlement
Amount”).  A partial year of service
shall be pro-rated.  The Settlement
Amount represents additional compensation which I acknowledge to be in excess
of accrued vacation and regular compensation earned to date.  I understand that I will receive the
Settlement Amount as part of the Company’s regular payroll cycle, and not in a
lump sum.  I understand that I was not
already entitled to receive the Settlement Amount, that I am required to sign
this Release in order to obtain the Settlement Amount, and that the Settlement
Amount constitutes consideration for this Release.

2.             The
Company will continue to make the regular employer contribution towards my
medical insurance under COBRA plus the Company’s share of the 2% administrative
fee either through payroll deduction or reimbursement directly to the provider
if I provide evidence of payment.  Such
payments will be made until I have secured alternative coverage through a new
employer but not more than three months. 
All other employer sponsored programs shall terminate as of my
termination date.

3.             For
myself and my heirs, representatives, successors and assigns, I hereby release
and discharge Maine & Maritimes Corporation and all of its affiliates,
subsidiaries, officers, shareholders, directors, agents, attorneys, employees,
successors, and assigns (collectively the “Company”), from any and all actions,
claims or demands for damages, costs, contribution, indemnification, or any
other thing whatsoever, on account of, or in any way arising out of my
employment with the Company at any time prior to the date hereof.  This Release covers both claims that I know about
and claims that I may not know about as of the date of this Release.

4.             I
expressly and voluntarily waive and release any and all rights or claims
arising out of my employment or termination from employment at the Company,
including but not limited to (a) any and all claims of discrimination on
account of age, race, gender, religion, physical or mental disability, (b) any
claim of sexual harassment, (c) any claim of retaliation for exercising rights
under state or federal law, (d) any claim of wrongful discharge, termination,
demotion, or discrimination, (e) any claim of physical injury or emotional
distress, or (f) any claims to further or future employment, whether based upon
the Maine Workers’ Compensation Act, the Maine Human Rights Act, the Americans
With Disabilities Act, the Civil Rights Act of 1991, the Age Discrimination in
Employment Act, the Employee Retirement Income Security Act (“ERISA”) the
Federal Family & Medical Leave Act, the Maine Family Medical Leave Act, the
Maine or Federal Fair Labor Standards Act, or any other federal, state, or
local law relating to employment or discrimination.

 

 

5.             I
agree that I will not commence any lawsuit against the Company in violation of
this Release.  If I violate this covenant
not to sue, I will pay all costs and expenses of defending against my lawsuit
that the Company or any person associated with the Company may incur,
including, but not limited to, reasonable attorneys’ fees.

6.             I
have been advised of my right to a period of at least twenty-one (21) days in
which to consider this Release before signing, have been advised in writing of
my right to consult an attorney before executing this Release, and understand
that I have a period of seven (7) days following the execution of this Release
in which to revoke by a written revocation any provisions relating to age
discrimination claims, including claims under the Age Discrimination in
Employment Act, or any other claims which I may have under any other federal,
state or local law relating to employment or discrimination.  I understand the terms of this Release,
including any terms specifically relating to age discrimination claims as well
as any other claims arising under any other federal, state or local law
relating to employment or discrimination, and understand that the seven (7) day
revocation period shall commence on the date of execution and that this Release
shall become valid and enforceable on the 8th day following execution.

7.             I
have signed this Release freely and voluntarily, and I have not been threatened
or coerced into signing this Release.  If
I have signed this Release less than 21 days after it was furnished to me, I
have done so for my own personal reasons and with the understanding that I
could have taken the full 21 days to consider this agreement.

	
   

  	
   

  	
   

  	
   

  
	
  Kurt A. Tornquist

  	
   

  	
  9/27/06

  	
   

  
	
  Employee Name (print)

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Kurt A. Tornquist

  	
   

  	
   

  	
   

  
	
  Employee Signature

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Sherri Jordan

  	
   

  	
   

  	
   

  
	
  Witness Name (print)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  /s/ Sherri Jordan

  	
   

  	
   

  	
   

  
	
  Witness Signature

  	
   

  	
   

  	
   

  

 

 2EXHIBIT
10(c)

PERSONAL AND
CONFIDENTIAL

October 16, 2006

Michael I. Williams

Interim COO, SVP,
CFO, and Asst. Secretary

Dear Mike;

Thank you for all
of your hard work and patience during this transition period at Maine &
Maritimes Corporation.  We believe that
the ongoing actions to stabilize costs and reassess revenue streams will open
up opportunities for improving the financial and operational performance of the
company, and we look forward to you playing a vital role in MAM’s success.

As a way to recognize
your contributions, we wish to provide additional incentive to you to
contribute to MAM’s stabilization and future success. This letter agreement
provides that, in the event that you remain continuously employed with MAM, any
successor to MAM’s business by purchase of substantially all of its assets or
at least 51% of the voting equity of MAM, or any affiliate of MAM, through and
including November 1, 2007 (“Retention Date”), you will be entitled to a
retention bonus of not less than $25,000 (the “Bonus”).  The Bonus paid pursuant to this Agreement
will not affect your eligibility for future merit salary increases or promotion
based on performance.

Payment of the
retention bonus less all appropriate payroll withholdings will occur within
seven days from the Retention Date.  In the event the above named employee
is involuntarily terminated for cause or voluntarily terminates his/her
employment prior to the retention date, no bonus will be paid.  In the
event the above named employee is terminated without cause i.e. due to a change
in control or work force reduction, the bonus shall be pro-rated accordingly.

 As you can appreciate, an additional and
material condition to your being entitled to the Bonus is your keeping the
terms of this letter strictly confidential, and the execution of the attached
form of release.  If you have satisfied
these conditions of the Program as of the Retention Date, the Bonus payment
will be added to your salary payment the month after the Retention Date.

You hereby acknowledge and agree that this Agreement is not intended to
affect or alter your “at will” status, and that this Agreement does not confer
any right to continued employment with MAM or otherwise interfere with its
existing right (i) to terminate your employment with or without cause, or (ii)
to increase or decrease your compensation (other than the amount of the Bonus).

 

I am available to answer any questions you may have about this
Agreement.  Thank you again for all of
your contributions to the continuing success of MAM.

Please sign the counterpart copy of this letter to
acknowledge your understanding of and agreement with the terms of this letter.

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Nathan Grass

  	
   

  
	
   

  	
  Nathan Grass

  
	
   

  	
  Interim
  President and CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and
  agreed:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Michael I.
  Williams

  	
   

  	
   

  
	
  Michael I.
  Williams

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  10/25/06

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]