Document:

Exhibit
10.2

 

EMPLOYMENT AGREEMENT FOR

SCOTT B. CONNER

 

July 1, 2004

 

	
  RE:

  	
  Offer of Employment

  
	
   

  	
  Scott B. Conner

  

 

Dear Scott:

 

I am delighted to confirm our offer of the Corporate-based position, Vice President Strategic Planning and Corporate
Development. In this challenging role, you will
report to the Chief Executive Officer, Stephen Bershad, where you will be
responsible for leading the strategic direction of the company, identifying and
implementing potential acquisitions, providing a leading role in investor
relations and coordinating all company wide marketing activities.  Axsys will consider your start date to be
Monday July 19, 2004.  The purpose of this letter is to confirm the
terms of our employment offer.

 

Your base salary will be $15,416.67 
(Gross) per month, which is payable bi-weekly. You will also be eligible
for a target bonus of 50% of your annual base salary. The attainment of this bonus will be based on EBAIT
performance of the company and successfully achieving certain mutually agreed objectives.  I do want to point out that for the 2004
calendar year, your participation in this bonus plan will be on a pro rata
basis.

 

In terms of benefits, you will be eligible to participate in a full
range of Axsys Technologies benefit programs, including the Executive
Supplemental Plan which provide medical, dental, life and disability insurance,
30 days from your date of hire. You may also participate in the Company’s
retirement savings plan (401K) through Fidelity Investments after six months
from your date of hire.  If you choose
to join this plan, Axsys will match, dollar for dollar, the first 3% of your
eligible compensation. After that, Axsys matches the next 2% of your eligible
compensation at fifty cents on the dollar. You will be entitled to three weeks
of paid vacation per calendar year.  I
will be glad to review all of the terms of our benefit offerings with you at
your convenience.

 

We will recommend that you be awarded an Incentive Stock Option grant
of 45,000 post-split shares of Axsys common stock, contingent upon approval by
the Axsys Board of Directors. The option price will be determined by the market
price of the stock at 4:00 P.M. on your date of hire. The Axsys ISO plan vests
in equal installments at the rate of 20% per year, and would be fully vested
after five (5) years of consecutive employment.

 

In terms of your relocation to the Connecticut area, Axsys is prepared
to assist you financially with all actual expenses associated with your move,
not including real estate commissions, up to an expected maximum of $25,000 and
will “gross up” the tax liability on actual imputed income.

 

Finally, as you and Steve have discussed, we will put together a
severance protection agreement shortly after your start with the company, in
the event that a “change in control” occurs with Axsys. The Change of Control
agreement would be in addition to a severance protection agreement, which will
provide for continuation of your salary for 6 months or until you find other
employment, which ever is shorter, in the event of your termination by us for
reasons other than cause.

 

This offer of employment is contingent upon the following:

 

•                  Your acceptance
of the terms of this letter by signing and returning one copy of the letter to
us by July 6, 2004; and

•                  You’re signing
the “Employment Matters” agreement (See attached, Exhibit A). This letter
covers such matters as proprietary information and confidentiality. If you have
any questions about the material covered in Exhibit A, please do not hesitate
to contact me.

 

It should be understood that this letter merely confirms our
understanding and does not constitute an employee contract (i.e., either one of
us can terminate employment at will, with or without cause). Further, this
offer of employment supersedes any prior or subsequent oral representation that
might be made. Finally, if you have any questions about the

 

1

 

terms covered herein, please contact me immediately.

 

In conclusion, on behalf of the entire Axsys management team, we truly
look forward to working with you as we continue to grow our exciting business.
In this regard, I am confident that your contributions will have a very
positive impact on Axsys Technologies as we reach for new heights.

 

Please sign and date this
letter indicating that you understand and accept the terms covered herein, and
send it to me as soon as possible.

 

Sincerely,

 

	
  /s/  Lynn M. Kerley

  	
   

  
	
  Lynn M. Kerley

  
	
  Corporate Human Resources Manager

  

 

	
  cc:

  	
  Stephen Bershad

  
	
   

  	
  David Almeida

  

 

	
  Understood and Accepted:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
  Scott B. Conner

  	
  Date

  

 

2Exhibit 10.3.7

 

AMENDMENT NUMBER SEVEN

TO THE

FIRSTBANK PROFIT SHARING AND EMPLOYEE STOCK OWNERSHIP PLAN

 

WHEREAS,
FirstBank has changed its name to AccessBank; and

 

WHEREAS,
Section 1.3.1(b] of the FirstBank Profit Sharing and Employee Stock Ownership
Plan (the “Plan”) provides that the Company may amend the Plan.

 

NOW THEREFORE,
the Company hereby amends the Plan by the adoption of following amendments:

 

1.                   The
name of the Plan is amended to read the “AccessBank Profit-Sharing and Employee
Stock Ownership Plan,” effective June
1, 2004.

 

2.                   Any inconsistent
provisions of the Plan shall be read consistent with this amendment.

 

IN WITNESS
WHEREOF, the undersigned officers being duly authorized by the Board of
Directors of AccessBank and Access Anytime Bancorp, Inc., hereby approve and
adopt this Amendment as of the date first set forth below.

 

 

	
   

  	
  ACCESSBANK

  
	
   

  	
  By:

  	
     /s/   Don
  K. Padgett

  	
   

  
	
   

  	
  Title:

  	
  President

  	
   

  
	
   

  	
  Date:

  	
  06-25-04

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ACCESS
  ANYTIME BANCORP, INC.

  
	
   

  	
  BY:

  	
     /s/   N.R.
  Corzine

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  	
   

  
	
   

  	
  Date:

  	
  06-25-04Exhibit 10.6.4

 

EXTENSION

OF

EMPLOYMENT AGREEMENT

 

EXTENSION AGREEMENT, this 30th day of July 2004, by and between ACCESSBANK
(Bank) formerly known as FIRSTBANK, a federally chartered stock savings bank
and ACCESS
ANYTIME BANCORP, INC.
(Company) and Kenneth J.
Huey, Jr. (Officer).

 

The Officer is Executive Vice President and a
Director of the Bank and has been duly elected to these positions. Also, the
Officer is Chief Financial Officer and a Director of the Company and has been
duly elected to these positions.

 

The Bank/Company desires to amend the term of
a previous EMPLOYMENT AGREEMENT EXTENSION by and between the Officer and the
Bank/Company dated the 23th
day of August 2001, to be effective from August 1, 2004 and shall
continue for a period of one year through August 1. 2005. with a salary at
a rate of not less than $145.000 per annum. All other terms and conditions
remain the same.

 

	
  ACCESSBANK

  	
  Access Anytime BanCorp, Inc.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Robert Chad Lydick

  	
   

  	
  By:

  	
  /s/ Norman R. Corzine

  	
   

  
	
   

  	
  Robert “Chad” Lydick, Chairman

  	
   

  	
  Norman R. Corzine, Chairman

  
	
   

  	
  Board of Directors

  	
   

  	
  Board of Directors

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  OFFICER

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/  Kenneth J. Huey, Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  Kenneth J. Huey, Jr.Exhibit 10.1

 

INDEMNIFICATION AGREEMENT

 

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made and entered
March 10, 2004 (the “Effective Date”), by and between Five Star Quality
Care, Inc., a Maryland Corporation (the “Company”), and Evrett W. Benton (“Indemnitee”).

 

WHEREAS Indemnitee currently serves as an officer of the Company and
may, in connection therewith, be subjected to claims, suits or proceedings
arising from such service; and

 

WHEREAS, as an inducement to Indemnitee to continue to serve as such officer, the Company has agreed to
indemnify and to advance expenses and costs incurred by Indemnitee in
connection with any such claims, suits or proceedings, to the fullest extent
permitted by law as hereinafter provided; and

 

NOW, THEREFORE, in consideration of the premises and the covenants
contained herein, the Company and Indemnitee do hereby covenant and agree as
follows:

 

Section 1.                                            Definitions.  For purposes of this Agreement:

 

(a)                                  “Change
in Control” means a change in control of the Company occurring after the
Effective Date of a nature that would be required to be reported in response to
Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar
item on any similar schedule or form) promulgated under the Securities
Exchange Act of 1934, as amended (the “Act”), whether or not the Company is
then subject to such reporting requirement; provided, however, that, without
limitation, such a Change in Control shall be deemed to have occurred if after
the Effective Date (i) any “person” (as such term is used in Sections 13(d) and
14(d) of the Act) is or becomes the “beneficial owner” (as defined in Rule
13d-3 under the Act), directly or indirectly, of securities of the Company
representing 10% or more of
the combined voting power in the election of directors of the Company’s then
outstanding securities without the prior approval of at least two-thirds of the
members of the Board of Directors in office immediately prior to such person
attaining such percentage interest; (ii) there occurs a proxy contest, or the
Company is a party to a merger, consolidation, sale of assets, plan of
liquidation or other reorganization not approved by at least two-thirds of the
members of the Board of Directors then in office, as a consequence of which
members of the Board of Directors in office immediately prior to such
transaction or event constitute less than a majority of the Board of Directors
thereafter; or (iii) during any period of two consecutive years, other than as
a result of an event described in clause (a)(ii) of this Section 1,
individuals who at the beginning of such period constituted the Board of
Directors (including for this purpose any new director whose election or
nomination for election by the Company’s stockholders was approved by a vote of
at least two-thirds of the directors then still in office who were directors at
the beginning of such period) cease for any reason to constitute at least a
majority of the Board of Directors.

 

(b)                                 “Corporate
Status” means the status of a person who is or was a director, trustee, officer
or agent of the Company.

 

(c)                                  “Disinterested
Director” means a director of the Company who is not and was not a party to the
Proceeding in respect of which indemnification is sought by Indemnitee.

 

 

(d)                                 “Expenses”
means all expenses, including, but not limited to, all reasonable attorneys’
fees, retainers, court costs, transcript costs, fees of experts, witness fees,
travel expenses, duplicating costs, printing and binding costs, telephone
charges, postage, delivery service fees, and all other disbursements or
expenses of the types customarily incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating, or being or
preparing to be a witness in a Proceeding.

 

(e)                                  “Independent
Counsel” means a law firm, or a member of a law firm, that is retained by
Indemnitee and is not serving as counsel to the Company.

 

(f)                                    “Proceeding”
means any threatened, pending or completed action, suit, arbitration, alternate
dispute resolution mechanism, investigation, administrative hearing or any
other proceeding, whether civil, criminal, administrative or investigative
(including on appeal), except one initiated by an Indemnitee pursuant to Section 9.

 

Section 2.                                            Indemnification
- General.  The Company shall
indemnify, and advance Expenses to, Indemnitee (a) as provided in this
Agreement and (b) otherwise to the fullest extent permitted by Maryland law in
effect on the date hereof and as amended from time to time; provided, however,
that no change in Maryland law shall have the effect of reducing the benefits
available to Indemnitee hereunder based on Maryland law as in effect on the
date hereof.  The rights of Indemnitee
provided in this Section 2 shall include, without limitation, the
rights set forth in the other sections of this Agreement, including any
additional indemnification permitted by Section 2-418(g) of the Maryland
General Corporation Law (“MGCL”).

 

Section 3.                                            Proceedings
Other Than Proceedings by or in the Right of the Company.  Indemnitee shall be entitled to the rights
of indemnification provided in this Section 3 if, by reason of his
Corporate Status, he is, or is threatened to be, made a party to any
threatened, pending, or completed Proceeding, other than a Proceeding by or in
the right of the Company.  Pursuant to
this Section 3, Indemnitee shall be indemnified against all
judgments, penalties, fines and amounts paid in settlement and all Expenses
incurred by him or on his behalf in connection with a Proceeding by reason of
Indemnitee’s Corporate Status unless it is established that (i) the act or
omission of Indemnitee was material to the matter giving rise to the Proceeding
and (a) was committed in bad faith or (b) was the result of active and
deliberate dishonesty, (ii) Indemnitee actually received an improper personal
benefit in money, property or services, or (iii) in the case of any criminal
Proceeding, Indemnitee had reasonable cause to believe that his conduct was
unlawful.

 

Section 4.                                            Proceedings
by or in the Right of the Company.  Indemnitee
shall be entitled to the rights of indemnification provided in this Section 4
if, by reason of his Corporate Status, he is, or is threatened to be, made a
party to any threatened, pending or completed Proceeding brought by or in the
right of the Company to procure a judgment in its favor.  Pursuant to this Section 4,
Indemnitee shall be indemnified against all amounts paid in settlement and all
Expenses incurred by him or on his behalf in connection with such Proceeding
unless it is established that (i) the act or omission of Indemnitee was
material to the matter giving rise to such a Proceeding and (a) was committed
in bad faith or (b) was the result of active and 

 

2

 

deliberate dishonesty or (ii) Indemnitee actually received an improper
personal benefit in money, property or services.

 

Section 5.                                            Indemnification
for Expenses of a Party Who is Partly Successful.  Without limitation on Section 3 and Section 4,
if Indemnitee is not wholly successful in any Proceeding covered by this
Agreement, but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall
indemnify Indemnitee under this Section 5 for all Expenses incurred
by him or on his behalf in connection with each successfully resolved claim,
issue or matter, allocated on a reasonable and proportionate basis.  For purposes of this Section and
without limitation, the termination of any claim, issue or matter in such a
Proceeding by dismissal, with or without prejudice, shall be deemed to be a
successful result as to such claim, issue or matter.

 

Section 6.                                            Advance
of Expenses.  The Company shall
advance all Expenses incurred by or on behalf of Indemnitee in connection with
any Proceeding to which Indemnitee is, or is threatened to be, made a party or
a witness, within ten days after the receipt by the Company of a statement or
statements from Indemnitee requesting such advance or advances from time to
time, whether prior to or after final disposition of such Proceeding.  Such statement or statements shall
reasonably evidence the Expenses incurred by Indemnitee and shall include or be
preceded or accompanied by a written affirmation by Indemnitee of Indemnitee’s
good faith belief that the standard of conduct necessary for indemnification by
the Company as authorized by law and by this Agreement has been met and a
written undertaking by or on behalf of Indemnitee, in substantially the form
attached hereto as Exhibit A or in such form as may be required under
applicable law as in effect at the time of the execution thereof, to reimburse
the portion of any Expenses advanced to Indemnitee relating to claims, issues
or matters in the Proceeding as to which it shall ultimately be established
that the standard of conduct has not been met and which have not been
successfully resolved as described in Section 5.  To the extent that Expenses advanced to
Indemnitee do not relate to a specific claim, issue or matter in the Proceeding,
such Expenses shall be allocated on a reasonable and proportionate basis.  The undertaking required by this Section 6
shall be an unlimited general obligation by or on behalf of Indemnitee and
shall be accepted without reference to Indemnitee’s financial ability to repay
such advanced Expenses and without any requirement to post security therefor.

 

Section 7.                                            Procedure
for Determination of Entitlement to Indemnification.

 

(a)                                  To
obtain indemnification under this Agreement, Indemnitee shall submit to the Company
a written request, including such documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine
whether and to what extent Indemnitee is entitled to indemnification.  The Secretary of the Company shall, promptly
upon receipt of such a request for indemnification, advise the Board of
Directors in writing that Indemnitee has requested indemnification.

 

(b)                                 Upon
written request by Indemnitee for indemnification pursuant to the first
sentence of Section 7(a) hereof, a determination, if required by
applicable law, with respect to Indemnitee’s entitlement thereto shall promptly
be made in the specific case: (i) if a Change in Control shall have occurred,
by Independent Counsel in a written opinion to the Board of 

 

3

 

Directors, a
copy of which shall be delivered to Indemnitee; or (ii) if a Change of Control
shall not have occurred or if after a Change of Control Indemnitee shall so
request, (A) by the Board of Directors (or a duly authorized committee thereof)
by a majority vote of a quorum consisting of Disinterested Directors (as herein
defined), or (B) if a quorum of the Board of Directors consisting of
Disinterested Directors is not obtainable or, even if obtainable, such quorum
of Disinterested Directors so directs, by Independent Counsel in a written
opinion to the Board of Directors, a copy of which shall be delivered to
Indemnitee, or (C) if so directed by a majority of the members of the Board of
Directors, by the stockholders of the Company; and, if it is so determined that
Indemnitee is entitled to indemnification, payment to Indemnitee shall be made
within ten days after such determination. 
Indemnitee shall cooperate with the person, persons or entity making
such determination with respect to Indemnitee’s entitlement to indemnification,
including providing to such person, persons or entity upon reasonable advance
request any documentation or information which is not privileged or otherwise
protected from disclosure and which is reasonably available to Indemnitee and
reasonably necessary to such determination. 
Any Expenses incurred by Indemnitee in so cooperating with the person,
persons or entity making such determination shall be borne by the Company
(irrespective of the determination as to Indemnitee’s entitlement to
indemnification) and the Company shall indemnify and hold Indemnitee harmless
therefrom.

 

Section 8.                                            Presumptions
and Effect of Certain Proceedings.

 

(a)                                  In
making a determination with respect to entitlement to indemnification
hereunder, the person or persons or entity making such determination shall
presume that Indemnitee is entitled to indemnification under this Agreement if
Indemnitee has submitted a request for indemnification in accordance with Section 7(a)
of this Agreement, and the Company shall have the burden of proof to overcome
that presumption in connection with the making of any determination contrary to
that presumption.

 

(b)                                 The
termination of any Proceeding by judgment, order, settlement, conviction, a
plea of nolo  contendere or its equivalent, or an entry of an
order of probation prior to judgment, does not create a presumption that
Indemnitee did not meet the requisite standard of conduct described herein for
indemnification.

 

Section 9.                                            Remedies
of Indemnitee.

 

(a)                                  If
(i) a determination is made pursuant to Section 7 that Indemnitee
is not entitled to indemnification under this Agreement, (ii) advance of
Expenses is not timely made pursuant to Section 6, (iii) no determination
of entitlement to indemnification shall have been made pursuant to Section 7(b)
within 30 days after receipt
by the Company of the request for indemnification, (iv) payment of
indemnification is not made pursuant to Section 5 within ten days
after receipt by the Company of a written request therefor, or (v) payment of
indemnification is not made within ten days after a determination has been made
that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to
an adjudication in an appropriate court of the State of Maryland, or in any
other court of competent jurisdiction, of his entitlement to such
indemnification or advance of Expenses. 
Alternatively, Indemnitee, at his option, may seek an award in
arbitration to be conducted by a single arbitrator pursuant to the commercial 

 

4

 

Arbitration
Rules of the American Arbitration Association. 
Indemnitee shall commence such proceeding seeking an adjudication or an
award in arbitration within 180 days following the date on which Indemnitee
first has the right to commence such proceeding pursuant to this Section 9(a);
provided, however, that the foregoing clause shall not apply in
respect of a proceeding brought by Indemnitee to enforce his rights under Section 5.

 

(b)                                 In
any judicial proceeding or arbitration commenced pursuant to this Section 9,
the Company shall have the burden of proving that Indemnitee is not entitled to
indemnification or advance of Expenses, as the case may be.

 

(c)                                  If
a determination shall have been made pursuant to Section 7(b) that
Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to
this Section 9, absent a misstatement by Indemnitee of a material
fact, or an omission of a material fact necessary to make Indemnitee’s
statement not materially misleading, in connection with the request for
indemnification.

 

(d)                                 In
the event that Indemnitee, pursuant to this Section 9, seeks a
judicial adjudication of or an award in arbitration to enforce his rights
under, or to recover damages for breach of, this Agreement, Indemnitee shall be
entitled to recover from the Company, and shall be indemnified by the Company
for, any and all Expenses incurred by him in such judicial adjudication or
arbitration.  If it shall be determined
in such judicial adjudication or arbitration that Indemnitee is entitled to
receive part but not all of the indemnification or advance of Expenses sought,
the Expenses incurred by Indemnitee in connection with such judicial
adjudication or arbitration shall be appropriately prorated.

 

Section 10.                                      Defense of the
Underlying Proceeding.

 

(a)                                  Indemnitee
shall notify the Company promptly upon being served with or receiving any
summons, citation, subpoena, complaint, indictment, information, notice,
request or other document relating to any Proceeding which may result in the
right to indemnification or the advance of Expenses hereunder; provided,
however, that the failure to give any such notice shall not disqualify
Indemnitee from the right, or otherwise affect in any manner any right of
Indemnitee, to indemnification or the advance of Expenses under this Agreement
unless the Company’s ability to defend in such Proceeding or to obtain proceeds
under any insurance policy is materially and adversely prejudiced thereby, and
then only to the extent the Company is thereby actually so prejudiced.

 

(b)                                 Subject
to the provisions of the last sentence of this Section 10(b) and of
Section 10(c) below, the Company shall have the right to defend
Indemnitee in any Proceeding which may give rise to indemnification hereunder; provided,
however, that the Company shall notify Indemnitee of any such decision
to defend within 15 calendar days following receipt of notice of any such
Proceeding under Section 10(a) above.  The Company shall not, without the prior written consent of
Indemnitee, which shall not be unreasonably withheld or delayed, consent to the
entry of any judgment against Indemnitee or enter into any settlement or
compromise which (i) includes an admission of fault of Indemnitee or (ii) does
not include, as an unconditional term thereof, the full release of Indemnitee
from all liability in respect of such Proceeding, which 

 

5

 

release shall
be in form and substance reasonably satisfactory to Indemnitee.  This Section 10(b) shall not
apply to a Proceeding brought by Indemnitee under Section 9 above
or Section 14.

 

(c)                                  Notwithstanding
the provisions of Section 10(b), if in a Proceeding to which
Indemnitee is a party by reason of Indemnitee’s Corporate Status, (i)
Indemnitee reasonably concludes, based upon an opinion of counsel approved by
the Company, which approval shall not be unreasonably withheld, that he may
have separate defenses or counterclaims to assert with respect to any issue
which may not be consistent with other defendants in such Proceeding, (ii)
Indemnitee reasonably concludes, based upon an opinion of counsel approved by
the Company, which approval shall not be unreasonably withheld, that an actual
or apparent conflict of interest or potential conflict of interest exists
between Indemnitee and the Company, or (iii) the Company fails to assume the
defense of such Proceeding in a timely manner, Indemnitee shall be entitled to
be represented by separate legal counsel of Indemnitee’s choice, subject to the
prior approval of the Company, which shall not be unreasonably withheld, at the
expense of the Company.  In addition, if
the Company fails to comply with any of its obligations under this Agreement or
in the event that the Company or any other person takes any action to declare
this Agreement void or unenforceable, or institutes any Proceeding to deny or
to recover from Indemnitee the benefits intended to be provided to Indemnitee
hereunder, Indemnitee shall have the right to retain counsel of Indemnitee’s
choice, subject to the prior approval of the Company, which shall not be
unreasonably withheld, at the expense of the Company (subject to Section 9(d)),
to represent Indemnitee in connection with any such matter.

 

Section 11.                                      Non-Exclusivity;
Survival of Rights.

 

(a)                                  The
rights of indemnification and advance of Expenses as provided by this Agreement
shall not be deemed exclusive of any other rights to which Indemnitee may at
any time be entitled under applicable law, the Articles of Incorporation or
Bylaws of the Company, any agreement or a resolution of the stockholders
entitled to vote generally in the election of directors or of the Board of
Directors, or otherwise.  No amendment,
alteration or repeal of this Agreement or of any provision hereof shall limit
or restrict any right of Indemnitee under this Agreement in respect of any
action taken or omitted by such Indemnitee in his Corporate Status prior to
such amendment, alteration or repeal.

 

(b)                                 In
the event of any payment under this Agreement, the Company shall be subrogated
to the extent of such payment to all of the rights of recovery of Indemnitee,
who shall execute all papers required and take all action necessary to secure
such rights, including execution of such documents as are necessary to enable
the Company to bring suit to enforce such rights.

 

(c)                                  The
Company shall not be liable under this Agreement to make any payment of amounts
otherwise indemnifiable hereunder if and to the extent that Indemnitee has
otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

 

Section 12.                                      Duration of
Agreement; Binding Effect.

 

(a)                                  This
Agreement shall continue until and terminate ten years after the date that
Indemnitee shall have ceased to serve as a director, trustee, officer,
employee, or agent of the 

 

6

 

Company or of
any other corporation, partnership, joint venture, trust, employee benefit plan
or other enterprise which Indemnitee served at the request of the Company; provided,
however, that the rights of Indemnitee hereunder shall continue until
the final termination of any Proceeding then pending in respect of which
Indemnitee is granted rights of indemnification or advance of Expenses
hereunder and of any proceeding commenced by Indemnitee pursuant to Section 9
relating thereto.

 

(b)                                 The
indemnification and advance of Expenses provided by, or granted pursuant to,
this Agreement shall be binding upon and be enforceable by the parties hereto
and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or
substantially all of the business or assets of the Company), shall continue as
to an Indemnitee who has ceased to be a director, trustee, officer, employee or
agent of the Company or of any other corporation, partnership, joint venture,
trust, employee benefit plan or other enterprise which such person is or was
serving at the written request of the Company, and shall inure to the benefit
of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives.

 

(c)                                  The
Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a
substantial part, of the business and/or assets of the Company, by written
agreement in form and substance satisfactory to Indemnitee, expressly to assume
and agree to perform this Agreement in the same manner and to the same extent
that the Company would be required to perform if no such succession had taken
place.

 

Section 13.                                      Severability.  If any provision or provisions of this
Agreement shall be held to be invalid, illegal or unenforceable for any reason
whatsoever: (a) the validity, legality and enforceability of the remaining
provisions of this Agreement (including, without limitation, each portion of
any section of this Agreement containing any such provision held to be
invalid, illegal or unenforceable that is not itself invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby; and (b) to
the fullest extent possible, the provisions of this Agreement (including,
without limitation, each portion of any section of this Agreement
containing any such provision held to be invalid, illegal or unenforceable,
that is not itself invalid, illegal or unenforceable) shall be construed so as
to give effect to the intent manifested thereby.

 

Section 14.                                      Limitation and
Exception to Right of Indemnification or Advance of Expenses.  Notwithstanding any other provision of this
Agreement, (a) any indemnification or advance of Expenses to which Indemnitee
is otherwise entitled under the terms of this Agreement shall be made only to
the extent such indemnification or advance of Expenses does not conflict with
applicable Maryland law and (b) Indemnitee shall not be entitled to
indemnification or advance of Expenses under this Agreement with respect to any
Proceeding brought by Indemnitee, unless (i) the Proceeding is brought to
enforce indemnification under this Agreement or otherwise or (ii) the Company’s
Bylaws, as amended, the Articles of Incorporation, a resolution of the
stockholders entitled to vote generally in the election of directors or of the
Board of Directors or an agreement approved by the Board of Directors to which
the Company is a party expressly provide otherwise.

 

7

 

Section 15.                                      Counterparts.  This Agreement may be executed in one or
more counterparts, each of which shall for all purposes be deemed to be an
original but all of which together shall constitute one and the same
Agreement.  One such counterpart signed
by the party against whom enforceability is sought shall be sufficient to
evidence the existence of this Agreement.

 

Section 16.                                      Headings.  The headings of the paragraphs of this
Agreement are inserted for convenience only and shall not be deemed to
constitute part of this Agreement or to affect the construction thereof.

 

Section 17.                                      Modification
and Waiver.  No supplement,
modification or amendment of this Agreement shall be binding unless executed in
writing by both of the parties hereto. 
No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not
similar) nor shall such waiver constitute a continuing waiver.

 

Section 18.                                      Notices.  Any notice, report or other communication
required or permitted to be given hereunder shall be in writing unless some
other method of giving such notice, report or other communication is accepted
by the party to whom it is given, and shall be given by being delivered at the
following addresses to the parties hereto:

 

(a)                                  If
to Indemnitee, to:  The address set
forth on the signature page hereto.

 

(b)                                 If
to the Company to:

 

Five Star Quality Care, Inc.

400 Centre Street

Newton, Massachusetts 02458

Attn:  Secretary

 

or to such other address as may have been furnished to Indemnitee by
the Company or to the Company by Indemnitee, as the case may be.

 

Section 19.                                      Governing Law.  The parties agree that this Agreement shall
be governed by, and construed and enforced in accordance with, the laws of the
State of Maryland, without regard to its conflicts of laws rules.

 

 

[SIGNATURE PAGE FOLLOWS]

 

8

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on
the day and year first above written.

 

	
  ATTEST:

  	
   

  	
  FIVE STAR QUALITY CARE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Jennifer B. Clark

  	
   

  	
  By:

  	
  /s/ Bruce J. Mackey Jr.

  	
  (SEAL)

  
	
   

  	
   

  	
  Name:

  	
  Bruce J. Mackey Jr.

  
	
   

  	
   

  	
  Title:

  	
  Treasurer, Chief Financial Officer and

  
	
   

  	
   

  	
   

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WITNESS:

  	
   

  	
  INDEMNITEE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Judith A. Stapleton

  	
   

  	
  /s/ Evrett W. Benton

  	
   

  
	
   

  	
   

  	
  Name:  Evrett W. Benton

  
	
   

  	
   

  	
  Address: [address omitted]

  
						

 

9

 

EXHIBIT A

 

FORM OF UNDERTAKING TO REPAY EXPENSES ADVANCED

 

The Board of Directors of Five Star Quality Care, Inc.

 

Re:  Undertaking to Repay
Expenses Advanced

 

Ladies and Gentlemen:

 

This undertaking is being provided pursuant to that certain
Indemnification Agreement dated
                          ,
2004, by and between Five Star Quality Care, Inc. (the “Company”) and the
undersigned Indemnitee (the “Indemnification Agreement”), pursuant to which I
am entitled to advance of expenses in connection with [Description of Proceeding]
(the “Proceeding”).

 

Terms used herein and not otherwise defined shall have the meanings
specified in the Indemnification Agreement.

 

I am subject to the Proceeding by reason of my Corporate Status or by
reason of alleged actions or omissions by me in such capacity.  I hereby affirm that at all times, insofar
as I was involved as [a director]  [an officer] of the Company,
in any of the facts or events giving rise to the Proceeding, I (1) acted in
good faith and honestly, (2) did not receive any improper personal benefit in
money, property or services and (3) in the case of any criminal proceeding, had
no reasonable cause to believe that any act or omission by me was unlawful.

 

In consideration of the advance of expenses by the Company for
reasonable attorney’s fees and related expenses incurred by me in connection
with the Proceeding (the “Advanced Expenses”), I hereby agree that if, in
connection with the Proceeding, it is established that (1) an act or omission
by me was material to the matter giving rise to the Proceeding and (a) was committed
in bad faith or (b) was the result of active and deliberate dishonesty or (2) I
actually received an improper personal benefit in money, property or services
or (3) in the case of any criminal proceeding, I had reasonable cause to
believe that the act or omission was unlawful, then I shall promptly reimburse
the portion of the Advanced Expenses relating to the claims, issues or matters
in the Proceeding as to which the foregoing findings have been established and
which have not been successfully resolved as described in Section 5
of the Indemnification Agreement.  To
the extent that Advanced Expenses do not relate to a specific claim, issue or
matter in the Proceeding, I agree that such Expenses shall be allocated on a
reasonable and proportionate basis.

 

IN WITNESS WHEREOF, I have executed this
Affirmation and Undertaking on this        
day of
                                        ,
200    .

 

 

WITNESS:

 

	
   

  	
   

  	
   

  	
   

  	
  (SEAL)

  

 

 

Schedule to
Exhibit 10.1

 

The following individuals
are parties to Indemnification Agreements with the Company which are
substantially identical in all material respects to the representative
Indemnification Agreement filed herewith and are dated as of the respective
dates listed below.  The other Indemnification Agreements are omitted
pursuant to Instruction 2 to Item 601 of Regulation S-K.

 

	
  Name of Signatory

  	
   

  	
  Date

  
	
  Evrett W. Benton

  	
   

  	
  March 10, 2004

  
	
  Rosemary Esposito, R.N.

  	
   

  	
  March 10, 2004

  
	
  Bruce M. Gans, M.D.

  	
   

  	
  March 10, 2004

  
	
  Barbara D. Gilmore

  	
   

  	
  March 10, 2004

  
	
  Maryann Hughes

  	
   

  	
  March 10, 2004

  
	
  Arthur G. Koumantzelis

  	
   

  	
  March 10, 2004

  
	
  Bruce J. Mackey Jr.

  	
   

  	
  March 10, 2004

  
	
  Gerard M. Martin

  	
   

  	
  March 10, 2004

  
	
  Barry M. Portnoy

  	
   

  	
  March 10, 2004

  
	
  William J. Sheehan

  	
   

  	
  May 7, 2004

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