THIS EMPLOYMENT AGREEMENT (the "Agreement") entered into as of October 25, 2004, by and
between Northeast Utilities Service Company, a Connecticut corporation (”NUSCO”), with its principal office in
Berlin, Connecticut, and Lawrence E. De Simone, a resident of Allentown, Pennsylvania ("Executive").
WHEREAS, the parties intend that Executive be employed as President – Competitive Group of
Northeast Utilities ("NU") and hold senior executive positions with certain of the subsidiaries of NU (NU and the
Affiliates, as such term is defined in Section 6.1(a), of NU being referred to collectively herein as the
"Company"), and both parties desire to enter into an agreement to reflect Executive's expected contribution to the
Company’s business in Executive’s capacities and to provide for Executive’s employment by the Company, upon
the terms and conditions set forth herein.
NOW, THEREFORE, the parties hereto, intending to be legally bound, hereby agree as follows:
1. Employment . The Company hereby agrees to employ Executive, and Executive hereby accepts such
employment and agrees to perform Executive’s duties and responsibilities, in accordance with the terms,
conditions and provisions hereinafter set forth.
1.1. Employment Term . The term of Executive's employment under this Agreement shall
commence as of October 25, 2004 (the "Effective Date") and shall continue until December 31, 2006, unless
sooner terminated in accordance with Section 5 or Section 6 hereof, and shall automatically renew for periods of
one year unless one party gives written notice to the other, at least six months prior to December 31, 2006 or at
least six months prior to the end of any one-year renewal period, that the Agreement shall not be further
extended. The period commencing as of the Effective Date and ending on the date on which the term of
Executive's employment under the Agreement shall terminate is hereinafter referred to as the "Employment Term".