Document:

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                                                                   EXHIBIT 10.21

                     BOSTON PRIVATE FINANCIAL HOLDINGS, INC.
                   SUPPLEMENTAL EXECUTIVE RETIREMENT AGREEMENT

     This Agreement, made this 1st day of May, 2001, by and between Boston
Private Financial Holdings, Inc. (hereinafter referred to as the "Company") and
Timothy L. Vaill (hereinafter referred to as the "Executive");

                                   WITNESSETH:

WHEREAS, Executive currently occupies a position of key significance with the
Company, and the Company desires to encourage Executive to remain with the
Company and to continue Executive's contributions to the Company's growth;

NOW, THEREFORE, for and in consideration of the mutual covenants herein
contained, the Company and Executive agree as follows:

1.   NORMAL RETIREMENT BENEFIT.

     (a) AMOUNT OF NORMAL RETIREMENT BENEFIT. Upon Termination of Employment on
     or after the Normal Retirement Age (defined as age 65) for any reason other
     than death, and subject to Paragraph 3 of this Agreement, the Company shall
     pay to the Executive an annual benefit in accordance with the following
     formula:

     1.167% times "Years of Service" (not to exceed 15) times "Final Average
     Pay"

     "Year of Service" means each calendar year in which Executive is credited
     with 1000 or more hours of service with the Company or with any subsidiary
     that together with the Company would be treated as a single employer within
     the meaning of Sections 414(b), (c), (m) or (o) of the Code. "Hours of
     service" shall have the same meaning as in the Boston Private Bank and
     Trust Company 401(k) Plan. Years of Service shall not exceed 15.

     "Final Average Pay" means the average of the Executive's base salary from
     the Company(or from any subsidiary that together with the Company would be
     treated as a single employer within the meaning of Sections 414(b), (c),
     (m) or (o) of the Code) for the three consecutive calendar year period
     ending with the year immediately preceding the year in which the
     Executive's Termination of Employment occurs.

     "Termination of Employment" for purposes of this Agreement means
     termination of employment with the Company and any subsidiary that,
     together with the Company, would be treated as a single employer within the
     meaning of Sections 414(b), (c), (m) or (o) of the Code.

     (b) PAYMENT OF NORMAL RETIREMENT BENEFIT. The Company shall pay the annual
     normal retirement benefit to the Executive in 12 equal monthly installments
     payable on the first day of each month commencing with the month following
     the Executive's

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     Termination of Employment. The benefit shall be paid each month up to and
     including the month in which the Executive dies.

2. TERMINATION BENEFIT.

     (a) AMOUNT OF TERMINATION BENEFIT. Upon Termination of Employment prior to
     Normal Retirement Age for any reason other than death, and subject to
     Paragraph 3 of this Agreement, the Company shall pay to the Executive an
     amount equal to the vested portion of the Normal Retirement Benefit in
     accordance with the following schedule:

           Age at Termination                  Vested Percentage of
             of Employment                   Normal Retirement Benefit

            Younger than 61                                0%
                   61                                     20%
                   62                                     40%
                   63                                     60%
                   64                                     80%

     (b) PAYMENT OF TERMINATION BENEFIT. The Company shall pay the annual
     termination benefit to the Executive in 12 equal monthly installments
     payable on the first day of each month commencing with the month following
     the Executive's Termination of Employment. The benefit shall be paid each
     month up to and including the month in which the Executive dies.

3. TERMINATION FOR CAUSE. In the event the Executive's Termination of Employment
is "for cause" then no benefit shall be payable to the Executive or to his
surviving spouse under this Agreement, "For cause" means the Executive is
wilfully engaging in misconduct which is demonstrably and materially injurious
to the Company or its subsidiaries. However, no act, or failure to act, by
Executive shall be considered wilful unless done, or omitted to be done, by
Executive not in good faith and without reasonable belief that Executive's
action or omission was in the best interest of the Company.

4. DEATH BENEFITS.

     (a) DEATH AFTER TERMINATION OF EMPLOYMENT. If the Executive is married on
     the date of his Termination of Employment, and is married to the same
     individual on the date of his death, then the Company shall pay the
     Executive's surviving spouse monthly payments equal to 75% of the monthly
     benefit, if any, which was being paid to the Executive prior to his death.
     This survivor benefit shall be paid each month commencing with the month
     following the Executive's death and continue up to and including the month
     in which the surviving spouse dies. If the Executive is not married on the
     date of his Termination of Employment, or if the Executive is not married
     to the same individual on the date of his death, then no survivor benefits
     shall be paid under this Paragraph 4(a).

     (b) DEATH DURING EMPLOYMENT. If the Executive dies while in the active
     employment of the Company, or any subsidiary that together with the Company
     would be treated as a single employer within the meaning of Sections
     414(b), (c), (m) or (o) of the Code, and

                                       2
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     the Executive is married on his date of death, then the Company shall pay
     the Executive's surviving spouse monthly payments equal to 75% of the
     monthly benefit that would have been payable to the Executive under
     Paragraph 1(a) of this Agreement had he attained age 65 and retired on his
     date of death (using Years of Service accrued as of the date of death).
     This survivor benefit shall be paid each month commencing with the month
     following the Executive's death and continue up to and including the month
     in which the surviving spouse dies, If the Executive is not married on the
     date of his death, then no survivor benefits shall be paid under this
     Paragraph 4(b).

5. MISCELLANEOUS.

     (a) PAYMENT OF BENEFITS FROM GENERAL ASSETS: UNSECURED CREDITOR STATUS. All
     benefits payable under this Agreement shall be paid from the general assets
     of the Company. The Company shall not be required to set aside any funds to
     discharge its obligations hereunder, but the Company may set aside such
     funds if it chooses to do so. Any setting aside of amounts, or acquisition
     of any insurance policy or any other asset, by the Company with which to
     discharge its obligations hereunder in trust or otherwise, shall not be
     deemed to create any beneficial ownership interest in the Executive or the
     Executive's Beneficiary, and legal and equitable title to any funds so set
     aside shall remain in the Company. The rights of the Participant and his
     beneficiary under this Agreement shall be no greater than the rights of a
     general unsecured creditor of the Company. Nothing contained in this
     Agreement shall constitute a guaranty by the Company or any other person or
     entity that the assets of the Company will be sufficient to pay any
     benefits hereunder.

     (b) NO ENLARGEMENT OF EMPLOYEE RIGHTS. It is distinctly understood and
     agreed that nothing contained in this Agreement shall in any way obligate
     the Company to retain the Executive in its employment for any period of
     time nor in any way affect the Company's right to change at any tithe the
     Executive's future rate of salary, the methods or conditions for payment
     thereof, or any other aspect of his employment.

     (c) SPENDTHRIFT PROVISION. No interest of the Executive or his beneficiary
     under this Agreement shall be subject in any manner to sale, transfer,
     assignment, pledge, attachment, garnishment, or other alienation or
     encumbrance of any kind; nor may such interest or right to receive a
     benefit payment be taken, either voluntarily or involuntarily for the
     satisfaction of the debts of, or other obligations or claims against, such
     person, including claims for alimony, support, separate maintenance and
     claims in bankruptcy proceedings.

     (d) FACILITY OF PAYMENT. If a benefit is payable under this Agreement to a
     minor, to a person declared incapacitated, or to a person incapable of
     handling the disposition of his or her property, the Company may pay such
     benefit to the guardian, legal representative or person having the care or
     custody of such minor, incapacitated person or incapable person. The
     Company may require proof of incapacity, minority or guardianship as it may
     deem appropriate prior to distribution of the benefit. Such distribution
     shall completely discharge the Company from ail liability with respect to
     such benefit.

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     (e) CORPORATE SUCCESSORS. This Agreement shall not be automatically
     terminated by a transfer or sale of assets of the Company or by the merger
     or consolidation of the Company into or with any other entity.

     (f) TAX WITHHOLDING AND REPORTING. The Company shall have the right to
     deduct any required withholding taxes from any payment made under this
     Agreement.

     (g) CLAIMS. In the event the Executive or a beneficiary makes a claim for
     benefits under this Agreement, and such claim is denied (in whole or in
     part), the claimant shall receive notice from the Company, in writing,
     setting forth the specific reasons for denial, with specific reference to
     applicable provisions of this Agreement. Such notice shall be provided
     within ninety (90) days of the date the claim for benefits is received by
     the Company, unless special circumstances require an extension of time for
     processing the claim, in which event notification of the extension shall be
     provided to the claimant prior to the expiration of the initial 90 day
     period. The extension notification shall indicate the special circumstances
     requiring the extension of time and the date by which the Company expects
     to render its decision. Any such extension shall not exceed 90 days. Any
     disagreements about such interpretations and construction may be appealed
     in writing by the claimant within sixty (60) days to the Company. The
     Company shall respond to such appeal within sixty (60) days, with a notice
     in writing fully disclosing its decision and its reasons, unless special
     circumstances require an extension of time for reviewing the claim, in
     which event notification of the extension shall be provided to the claimant
     prior to the expiration of the initial sixty (60) day period. Any such
     extension shall be provided to the claimant prior to the commencement of
     the extension. Any such extension shall not exceed 60 days. No member of
     the Board of Directors, or any committee thereof, shall be liable to any
     individual or entity for any action taken hereunder, except those actions
     undertaken with lack of good faith.

     (h) APPLICABLE LAW. This Agreement shall be construed and administered
     under the laws of the Commonwealth of Massachusetts. In the event any
     provision of this Agreement shall be held illegal or invalid for any
     reason, such illegality or invalidity shall not affect the remaining
     provisions of the Agreement, and the Agreement shall be interpreted and
     enforced as if such illegal and invalid provisions had never been set
     forth.

     This Agreement shall be unfunded and maintained primarily for the purpose
     of providing deferred compensation for a select group of management or
     highly compensated employees within the meaning of Sections 210(2),
     301(a)(3) and 401(a)(1) of the employee Retirement Income Security Act of
     1974, as amended ("ERISA").

6. AMENDMENT AND TERMINATION. This Agreement may be amended only by written
agreement of the Executive and the Company. This Agreement shall terminate when
all benefit payable hereunder, if any, have been paid.

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
and year first written above.

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EXECUTIVE

/s/ TIMOTHY L. VAILL
----------------------------------
Timothy L. Vaill

BOSTON PRIVATE FINANCIAL HOLDINGS, INC.

By: /s/ WALTER M. PRESSEY
    ------------------------------

Title: President

                                       5<PAGE>

EXHIBIT 4.9

                                 RESTATEMENT OF
                                GSI LUMONICS INC.

               1995 STOCK OPTION PLAN FOR EMPLOYEES AND DIRECTORS

--------------------------------------------------------------------------------

1.   Purpose
     -------

     GSI Lumonics Inc. 1995 Stock Option Plan for Employees and Directors (the
     "Plan") is intended to retain, and reward highly qualified employees
     (including contract employees), consultants and directors who will be
     motivated to contribute to the success of GSI Lumonics Inc. and its
     subsidiaries (the "Company") and encouraged to purchase Common Shares of
     the Company (the "Common Shares"). The Plan shall come into force effective
     September 29th, 1995.

2.   Number of Common Shares to be Offered
     -------------------------------------

     Stock options granted under the Plan ("Options" or "Option") shall be for
     the purchase of Common Shares, without nominal or par value, of the Company
     ("Option Shares" or "Option Share"). The maximum number of Common Shares
     that will be reserved for issuance and issued under this Plan shall not
     exceed 4,906,000 shares. The following restrictions shall also apply to
     this Plan as well as all other plans or stock option agreements to which
     the Company may be a party:

          (i)  the aggregate number of Option Shares reserved for issuance
               pursuant to options granted to Insiders shall not exceed ten
               percent (10%) of the Outstanding Issue;

          (ii) Insiders shall not be issued, within any one year period, a
               number of Option Shares which exceeds ten percent (10%) of the
               Outstanding Issue;

          (iii)no Insider together with such Insider's Associates shall be
               issued, within any one year period, a number of Option Shares
               which exceeds five percent (5%) of the Outstanding Issue; and

          (iv) the number of Option Shares reserved for issuance pursuant to
               options to any one participant shall not exceed five percent (5%)
               of the Outstanding Issue.

For the purpose of this Plan:

     "Associate" has the meaning assigned by the Securities Act (Ontario), as
amended from time to time:

     "Insider" means:

          (i)  an insider of the Company as defined by the Securities Act
               (Ontario) as amended from time to time, other than a person who
               falls within such definition solely by virtue of being a director
               or senior officer of a subsidiary of the Company; and

          (ii) an Associate of any person who is an insider by virtue of Clause
               (i) of this definition; and

     "Outstanding Issue" means the number of Common Shares of the Company that
     are outstanding immediately prior to any issuance of Options under this
     Plan or any issuance of Option Shares, as the case may be, excluding Option
     Shares issued pursuant to the Plan during the preceding one year period.

     Upon the expiration, surrender or termination, in whole or in part, of an
     unexercised Option, the Option Shares subject to such unexercised Option
     shall be available for other Options to be granted from time to time.

<PAGE>

3.   Administration
     --------------

     The Plan shall be administered by the Compensation Committee of the Board
of Directors of the Company (the "Committee") who shall be appointed by and
serve at the pleasure of the Board of Directors (the "Board"). The Committee
shall have full power and authority, subject to the terms of the Plan, to grant
Options on behalf of the Company; to designate the individuals who are to be
granted Options (the "Optionees" or "Optionee"); to set the date of grant, the
number of Option Shares to be granted pursuant to each Option; and the other
terms and conditions of the Options; and otherwise to interpret and construe the
terms of the Plan. Any determination by the Committee shall be final and
conclusive unless otherwise determined by the Board and, in any such event, such
determination of the Board shall be final and conclusive. The day-to-day
administration of the Plan may be delegated to such officers and employees of
the Company as the Committee in its sole discretion shall determine.

4.   Terms and Conditions of Options
     -------------------------------

     (a)  Individuals Eligible to Receive Options. The individuals eligible to
          receive Options shall be confined to such employees (including
          contract employees) and consultants (who are engaged to provide
          ongoing bona fide consulting services for the Company, spend a
          significant amount of their time and attention on the affairs and
          business of the Company, and have a relationship with the Company that
          will permit them to be knowledgeable in respect of the business
          affairs of the Company) and directors of the Company as shall be
          determined from time to time by the Committee. In making such
          determination, the Committee shall consider the duties and
          responsibilities of the individual, his or her present and potential
          contribution to the success of the Company, and such other factors as
          the Committee shall deem relevant in accomplishing the purposes of the
          Plan. Participation in the Plan shall be entirely voluntary and any
          decision by any individual not to participate shall not affect such
          individual's employment with the Company.

     (b)  Grant of Options. From time to time the Committee or the Board of
          Directors shall grant Options on behalf of the Company under the Plan.

     (c)  Option Price. The purchase price ("Option Price") for an Option Share
          shall be the Market Price per Common Share as at the date of grant.
          "Market Price" per Common Share at any date shall be the closing price
          of the Common Shares on The Toronto Stock Exchange (the "Exchange")
          (or if the Common Shares are not then listed or posted for trading on
          the Exchange, on such stock exchange in Canada on which such shares
          are listed and posted for trading as may be selected for such purpose
          by the Committee) on the trading date immediately preceding the date
          of grant. In the event that the Common Shares are not listed and
          posted for trading on any stock exchange in Canada, the market price
          shall be the last trading price of the Common Shares on National
          Association of Securities Dealers Quotations Systems ("NASDAQ") on the
          trading day immediately preceding the date of grant. In the event that
          the Common Shares are not trading on NASDAQ, the market price shall be
          determined by the Committee in its sole discretion.

     (d)  Exercise Period. An Option may be exercised at any time or from time
          to time within such period as the Committee shall determine (the
          "Exercise Period"), but in no event shall such Exercise Period be
          greater than 10 years from the date of grant. The Committee may, but
          shall not be required to, impose such conditions on the exercise of an
          Option as the Committee deems appropriate. Unless otherwise
          specifically approved by the Committee, Options shall vest and be
          exercisable by an Optionee at a rate of twenty-five percent (25%) per
          year on the first, second, third and fourth anniversaries of the Date
          of Grant of such Options. Unless otherwise determined by the
          Committee, all outstanding Options shall immediately vest and become
          exercisable by an Optionee upon a change in control (as determined by
          the Board) of the Company. Notwithstanding the foregoing or anything
          contained herein to the contrary, the Committee may, from time to
          time, in its sole discretion, by written notice to any Optionee, amend
          the vesting schedule of Options discussed herein, including without
          limitation the acceleration of vesting such that some or all of the
          Option Shares become immediately fully vested.

<PAGE>

     (e)  Methods of Payment. Payment for purchase of Option Shares shall be
          made in cash or by certified cheque. Only full shares shall be issued
          under the Plan.

     (f)  Termination of Employment. The following shall apply in the event that
          the employment, board, consultancy or other service position of an
          Optionee is terminated on a date prior to the expiration of the
          Exercise Period ("Termination Date"). For purposes of the Plan, the
          transfer of an Optionee to a different position or office within the
          Company shall not be considered a termination.

          (i)  If the cause of termination is the voluntary retirement or
               dismissal for cause of the Optionee, the Optionee's Option shall
               terminate on the Termination Date. Provided that the Chief
               Executive Officer of the Company may extend such period for up to
               30 days following the Termination Date prior to which date the
               Optionee may exercise all or any part of the Optionee's Option
               that has vested and is exercisable in accordance with the
               provisions of Section 4(d) hereof.

          (ii) If the cause of termination is other than the death, voluntary
               retirement or dismissal for cause of the Optionee, the Optionee's
               Option shall terminate 60 days following the Termination Date
               prior to which date the Optionee may exercise all or any part of
               the Optionee's Option that has vested and is exercisable in
               accordance with the provisions of Section 4(d) hereof. The Chief
               Executive Officer of the Company may extend such period for up to
               an additional 30 days.

          (iii)If the cause of termination is the death of the Optionee, the
               Optionee's Option shall terminate six (6) months following the
               Termination Date prior to which date the legal personal
               representative(s) of the deceased Optionee may exercise such
               portion of the Optionee's Option that has vested and is
               exercisable in accordance with the provisions of Section 4(d)
               hereof.

          Notwithstanding the foregoing provisions of this paragraph (f), the
          Committee may, in its sole discretion, extend the period for vesting
          and exercise of an Option after the Termination Date to a date which
          shall not be later than the earlier of (A) in respect of an employee
          Optionee (including executive officers), three years after the
          Termination Date, or (B) in respect of a director, contract employee
          or consultant Optionee, one year after the Termination Date.
          Notwithstanding the foreoing provisions of this paragraph (f), in no
          event may an Option be exercised after the expiration of the Exercise
          Period.

     (g)  Transferability. An Option may not be assigned or transferred. Each
          Option will be exercisable during the lifetime of the Optionee only by
          the Optionee. In the event of the death of an Optionee, the legal
          personal representative(s) of the deceased Optionee may exercise,
          within the period set out in Section 4(f)(ii) hereof, such portion of
          the Optionee's Option that would have been exercisable by the Optionee
          on the date of death in accordance with the provisions of Section 4(d)
          hereof.

     (h)  Reorganization and Recapitalization. In the event of any subdivision,
          redivision or change of the Common Shares of the Company at any time
          prior to the expiration of the Exercise Period into a greater number
          of shares, the Company shall deliver at the time of any exercise
          thereafter of the Option hereby granted such additional number of
          shares as would have resulted from such subdivision, redivision or
          change if such exercise of the Option hereby granted had been prior to
          the date of such subdivision, redivision or change.

          In the event of any consolidation or change of the Common Shares of
          the Company at any time prior to the expiration of the Exercise Period
          into a lesser number of shares, the number of shares deliverable by
          the Company on any exercise thereafter of the Option hereby granted
          shall be reduced to such number of shares as would have resulted from
          such consolidation or change if such exercise of the Option hereby
          granted had been prior to the date of such consolidation or change.

<PAGE>

5.   Amendment and Discontinuance
     ----------------------------

     The Committee shall have the right to amend or modify this Plan or to
terminate this Plan at any time without notice provided that an Optionee's
rights are not thereby materially adversely affected and subject to any
approvals required under the applicable rules of any stock exchange upon which
the Common Shares of the Company are or may be listed.

6.   Employment Non-Contractual
     --------------------------

     Nothing in this option shall be construed as conferring upon the Optionee
any right to continue in the service of the Company or any subsidiary of the
Company.

7.   Rights as a Shareholder
     -----------------------

     The Optionee shall not have any rights as a shareholder with respect to any
     Option Shares issuable upon exercise of this Option until this Option has
     been validly exercised and the purchase price for such Option Share has
     been paid in full.

8.   Nontransferability
     ------------------

     The Optionee's rights under this option are not assignable or transferable
by the Optionee during the Optionee's lifetime and are exercisable during the
Optionee's lifetime only by the Optionee.

9.   Corporate Action
     ----------------

     Nothing contained herein shall be construed so as to prevent the Company or
any subsidiary of the Company from taking corporate action which is deemed by
the Company or the subsidiary to be appropriate or in its best interest, whether
or not such action would have an adverse effect on the Option.

10.  Government Regulation
     ---------------------

     The Company's obligation to issue and deliver Common Shares under this
Option is subject to:

     (a)  the satisfaction of all requirements under applicable securities law
          in respect thereof and obtaining all regulatory approvals as the
          Company shall determine to be necessary or advisable in connection
          with the authorization, issuance or sale thereof, including
          shareholder approval, if required;

     (b)  the admission of such Common Shares to listing on any stock exchange
          on which Common Shares may then be listed; and

     (c)  the receipt from the Optionee of such representations, agreements and
          undertakings as to future dealings in such Common Shares as the
          Company determines to be necessary or advisable in order to safeguard
          against the violation of the securities law of any jurisdiction.

     In this connection, the Company shall take all reasonable steps to obtain
such approvals and registrations as may be necessary for the issuance of such
Common Shares in compliance with applicable securities law and for the listing
of such Common Shares on any stock exchange on which such Common Shares are then
listed.

11.  Approvals
     ---------

     This Plan shall be subject to acceptance by The Toronto Stock Exchange (the
"Exchange") in compliance with all conditions imposed by the Exchange. Any
Options granted prior to such acceptance shall be conditional upon such
acceptance being given and any conditions complied with and no such Options may
be exercised unless such acceptance is given and such conditions are complied
with.

<PAGE>

12.  Governing Law
     -------------

     This Plan and any Options granted hereunder shall be governed by and
interpreted in accordance with the laws of the Province of Ontario.

13.  Additional Information for Quebec Residents
     -------------------------------------------

     The following information will be provided to Individuals Eligible to
Receive Options who are residents of the Province of Quebec at the time that
they are granted Options pursuant to the Plan:

     (a)  There is no minimum sum to be collected under the Plan and the Company
          proposes to use the proceeds of the Plan for general corporate
          purposes;

     (b)  No changes have occurred among the senior executives of the Company
          since the last annual meeting of shareholders other than as disclosed
          in a Schedule that will be attached;

     (c)  There has been no transfer of the securities of the Company that
          resulted in a material change in control of the Company since the last
          meeting of shareholders of the Company other than as disclosed in a
          Schedule that will be attached;

     (d)  All other material facts in respect of the Company or the securities
          offered under the Plan that are necessary to enable an informed
          decision have been made public; and

     (e)  A copy of the most recent audited financial statements of the Company
          will be attached.

                                            GSI LUMONICS INC.

                                            By:
                                                 -------------------------------
                                                     Authorized Officer

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